Firefighters Pension Board

Niles Firefighters' Pension Fund Eoard of Trustees Meeting 8360 Dempster Niles, lt 60714 October 31, 2019 The meeting was called to order at 8:30 a.m. by President Byron Tull. Trustees Present: Byron Tull, Bob Greiner, Marimel Lim, Rich Teper, and Jim Grammas. Officials Present: John Falduto and Ed Lavin from Sawyer Falduto Asset Management, LLC, lnvestment Advisor to the Fund; Attorney Carolyn Clifford, Ottosen Britzi Trinette Gardner, Lauterbach & Amen; and Rich Scipione, Pension Fund Clerk Public Comment: No public comment. Approval of Minutes: On a motion by Greiner, seconded by Grammas, the minutes from the August 29, 2019 quarterly meeting were approved by a unanimous voice vote. Byron reviewed the closed meeting minutes as required semi-annually. The minutes reviewed were: November 30, 2002 February 4, 2009 December 15, 2004 September 28, 2009 February 9, 2005 october 15, 2009 February 26, 2005 February 8, 2010 April 11, 2006 April 7, 2010 Decembe17,2006 September 7, 2010 January 8, 2008 August 26,2015 On a motion by Greiner, seconded by Grammas, to keep the listed meeting minutes closed for another six months: AYES: Greiner, Tull, Lim, Teper, and Grammas NAYS: None ABSENT: None Motion carried. 7  Niles Firefighters' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, lL 60714 october 31, 2019 Financia! and Treasurer's Report: Trinette Gardner from Lauterbach and Amen reviewed the Statement of Net Position as of September 30, 2019. The total assets as of September 30,2019 were 534,622,169.61 and total liabilities of S5,406.00.00. The net position held in trust for pension benefits is S34,616,763.61. Trinette presented the monthly financial statements. The Fund paid checks numbered 30190-30199, record from August 1, 2019 through September 26, 2019, for a total of SLO6,4I2.34. A motion was made by Tull, seconded by Greiner, to approve the financial report including payment of the bills and disbursements as presented. Upon a call of the roll: AYES: Greiner, Tull, Grammas, Teper, and Lim NAYS: None ABSENT: None Motion carried. Lauterbach and Amen filed the annual DOI statement prior to the due date. A motion was made by Tull, seconded by Grammas, to approve the Department of lnsurance Annual Statement as presented. Upon a call of the roll: AYES: Greiner, Tull, Lim, Teper, and Grammas NAYS: None ABSENT: None Motion carried. Trinette Gardner presented the final copy of the actuarial valuation. The draft actuarial results that were presented at the last pension meeting have been finalized and are tied to the Village of Niles audit. on a motion by Tull, seconded by Grammas, to accept the May 1, 2018 through April 30, 2019 actuarial report. Upon a callofthe roll: AYES: Greiner, Tull, Lim, Teper, Grammas NAYS: None ABSENT: None Motion carried. There were no changes in the Statement of Changes in Plan Assets/Audit results. 2  Niles Firefighters' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, l[ 50714 October 31, 2019 lnvestment Advisor's Report: John Falduto from sawyer Falduto presented the Fund's september 30,2019 "Quarterly lnvestment Report." The 2019 third quarterly ending market value was S34,598,088, with an investment return of 5380,577. The total account return for the third quarter was 1.11% versus the benchmark of 1.28/o. The equity rate of return for the third quarter was 0.51% versus the blended benchmark of 0.60%. The fixed income rate of return was 2.33% versus the benchmark of 2.39%. Our current portfolio allocation as ofSeptember 30,2019: Equities at 63.2%, Fixed lncome at 35.2%, and Cash Equivalent at 0.7%. There are no pending changes to the lnvestment Policy and/or Asset Allocation Parameters. This item will be included on the Agenda in the future. On a motion by Tull, seconded by Greiner, to accept the lnvestment Report ending September 30, 2019. Upon a call of the roll: AYES: Greiner, Tull, Lim, Teper, and Grammas NAYS: None ABSENT: None Motion carried. Byron Tull asked about the trade notice that was executed by the previous lnvestment Manager, Capital Gains. lt was determined that the Brownstone Group made the error, executing the trade for Niles instead of another fund. John Falduto confirmed that Capital Gains transferred all known funds to Sawyer Falduto when they became our investment advisor. There were no funds transferred out of the pension fund and we received a canceltrade notice. Old Business: Byron reviewed the status of annual affidavits of eligibility. All affidavits of eligibility have been received by Lauterbach and Amen and were given to the Fund. The Village of Niles Finance Committee would like to postpone a joint discussion about the actuarial valuations and assumptions until early 2020. Carolyn has requested dates from the committee in a letter addressed to the committee chair. carolyn is continuing to work on the Niles fire pension rules, regulation, and the updated forms' she has asked to table the item until next meeting- 3  Itliles Firefighters' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, lL 60714 october 31, 2019 Carolyn advised that Tier 2 combined creditable service language was not included in the new bill. She advised there are possible changes coming in the future. Carolyn reviewed an update on Brian Collins disability pension application. She is still waiting on information from the Village and Fire Department to be included in the information sent to the lME. Once all information are received, IME'5 can be scheduled. The Board reviewed recommended IME physicians from a memo prepared by Carolyn. The options are Dr. Samo and Dr. Williamson-Link (occupational doctors), and Dr. Hutchinson, Dr. Levin and Dr. Lorenz as the orthopedic specialist options. carolyn will proceed with the first available options. New Business: Carolyn Clifford from Ottosen Britz presented the 2020 tax levy recommendation letter that will be sent to the Village. The Board requests the Village of Niles levy the recommended actuarial amount of 54,369,738 reflecting the Village of Niles preferred 7.0% investment rate of return assumptlon. On a motion by Tull, seconded by Grammas, to approve the Tax Levy Request from the Niles Firefighters' Pension Fund for 2020 of 54,369,738 and send the letter to the Village of Niles. Upon a call of the roll: AYES: Greiner, Tull, Lim, Teper, and Grammas NAYS: None ABSENT: None Motion carried. Trinette presented the Municipal Compliance Report for the fiscal year ended April 30, 2019. lt was noted that the recommended and statutory minimum municipal contributlons in the report will reflect the actuarial valuation results using the Village's preferred 7% investment return assumption. On a motion by Tull, seconded by Grammas, to approve and adopt the Municipal compliance Report. Upon a call of the roll: AYES: Greiner, Tull, Lim, Teper, and Grammas NAYS: None ABSENT: None Motion carried. yolanda Hansen has requested a disability pension application. Carolyn will start the process. This is ongoing and Bob Greiner will keep the Board informed. 4  Niles Firefighters' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, lL 60714 octob€r 31, 2019 Consideration of and Action upon Applicants for Admission: Two new firefighters, Jake Rusnac and Darrion Roszkowiak, joined the Niles Fire Department on October 74,2OL9. They have applied for membership into the Niles Firefighters' Pension Fund. Jake and Darrion have successfully completed their medical assessment. This application is for the Tier 2 pension fund membership. On a motion by Tull, seconded by Greiner, to approve Jake Rusnac and Darrion Roszkowiak membership into the Fund. Upon a call ofthe roll: AYES: Greiner, Tull, Grammas, Teper, and Lim NAYS: None ABSENT: None Motion carried- Training: Carolyn distributed and reviewed training material for the Board. Training included an article from Ottosen Britz Pension Quarterly lnsights (Fourth Quarter 2019), a presentation on funding between two different cities, a presentation on Firefighter Cancer and the Elusive Concept of Causation for Disability Benefits, and information regarding the 27th Annual NIAFPD Conference' The Board has designated two hours of training for this meeting and associated training material. Closed Meeting: There was no closed session. Schedule 2020 Meetings: The Board reviewed the proposed 2020 schedule: February 3, May 12, August 19, and November 2 at 8:30 a.m. at Niles Fire Department Station 2. On a motion by Tull, seconded by Grammas, to approve the 2O2O regular meeting schedule, the motion was approved by a unanimous voice vote. The meeting was adjourned at 9:52 a.m. on a motion by Greiner, seconded by Tull, and approved upon a unanimous vote voice. Respectfully submitted, 5  Niles Firefighters' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, lL 60714 October 31, 2019 Bob Greiner, Secretary Minutes approved by the Board ofTrustees at its meeting on February 3, 2020. Minutes prepored by Rich Scipione, Pension Clerkto the Fund 6