Firefighters Pension Board

Niles Firefighters' Pension Fund Eoard of Trustees Meeting 8360 Dempster Niles, ll. 60714 November 2, 2020 The meeting was called to order at 8:30 a.m. by President Byron Tull. Trustees Present: Byron Tull, Bob Greiner, Marimel Lim, and Rich Teper. Absent was Jim Grammas Officials Present: iohn Falduto and Tom Sawyer from Sawyer Falduto Asset Management, LLC, lnvestment Advisor to the Fund; Attorney Carolyn Clifford, Ottosen DiNolfo; Trinette Gardner, Lauterbach & Amen; Kent Oliven, Treasurer to the Fund; and Rich Scipione, Pension Fund Clerk Public Comment: No public comment. Approval of Minutes: On a motion by Tull, seconded by Teper, to approve the minutes from the August 19, 2020 quarterly meeting . Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. On a motion by Tull, seconded by Griener, to approve the following meeting minute: special meeting minutes from the August 3f, 2O2O; closed meeting minutes from August 31, 2020; special meeting minutes from September 27, 2O2O; special meeting minutes from September 30, 2O2O; and the closed meeting minutes from September 30, 2020. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. 1  Niles FirefighteB' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, lL 60714 November 2, 2020 Financial and Treasure/s Report: Trinette Gardner from Lauterbach and Amen reviewed the Statement of Net Position as of September 30, 2020. The total assets as of September 30,2O2O were $38,764,982.52 and total liabilities of S5,505.0O. The net position held in trust for pension benefits is 538,759,476.29. Trinette presented the monthly financial statements. The Fund paid checks numbered 30190-30199, record from August 1, 2020 through September 25, 2020, for a total of S f06,412.34. A motion was made byTull, seconded byTeper, to approve the September 30, 2020 financial report. Upon a call of the roll: AYES: Greiner, Tull, Teper, and Lim NAYS: None ABSENT: Grammas Motion carried. A motion was made by Tull, seconded by Greiner, to approve the payment of the bills and disbursements of checks numbered 30316-30330 and 50044 in the amount of 5125,535.41. Upon a call ofthe roll: AYES: Greiner, Tull, Teper, and Lim NAYS: None ABSENT: Grammas Motion carried. Lauterbach and Amen filed the annual DOI statement prior to the due date. A motion was made by Tull, seconded by Teper, to approve the Department of lnsurance Annual Statement as presented. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. The Board tabled the FY 2020 Statement of Changes in Plan Assets/Audit Results until the next quarterly meeting awaitang final Village of Niles Audit Results. 2  Niles Firefighters' Pension Fund Board of Trustees Meeting 8350 Dempster Niles, lL 60714 November 2, 2020 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 Greiner, to accept the May 1, 2019 throu8h April 30, 2020 actuarial report pending any changes from the Village of Niles Audit. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. lnvestment Advisor's Report: John Falduto from Sawyer Falduto presented the Fund's September 30,2O2O "Quarterly lnvestment Report." The 2020 third quarterly ending market value was 538,751,305, with an investment return of $2,008,465. The total account return for the third quarter was 5.45% versus the benchmark of 5.15%. The equity rate of return for the third quarter was 8.33% versus the blended benchmarkot 7.7t%. The fixed income rate of return was 0.79% versus the benchmark of 0.85%. Our current portfolio allocation as ofSeptember 30,2020: Equities at 53.5%, Fixed lncome at 35.7%, and Cash Equivalent at 0.7%. There are no pending changes to the lnvestment Policy and/or Asset Allocation Parameters. On a motion by Tull, seconded by Greiner, to accept the Investment Report ending September 30, 2020. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. Old Business: Carolyn sent out and presented the Niles fire pension rules, regulation, and the updated forms. All Board members have had ample to time to review the material. 3  Niles Firerighterc' Pension Fund Board of Trustees Meetint 8360 Dempster Niles, lL 60714 November 2, 2020 On a motion byTull, seconded by Teper, to approve the updated Board rules and regulations as presented in Resolution 202GO2. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. Byron stated that we were able to collect the benefit overpayment due to the Fund from Gerald Wagne/s death. The Board collected 5336.22 from Gerald Wagne/s sister in law and from Gerald Wagne/s ex- wife. 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 and may see movement during the veto session. Carolyn presented that a Tier 2 could possibly defer their pension payment if they retire after 10 years of service and prior to 55 years of aBe. Carolyn presented Brian Collins Decision and Order from his disability hearing. The findings reflect that Brian Collins was granted a line of duty disability. On a motion by Tull, seconded by Greiner, to approve Brian Collins Decision and Order. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. Carolyn also presented Yolanda Hansen's Decision and Order from his disability hearing. The findings reflect that Yolanda Hansen was granted a line of duty disability. On a motion by Tull, seconded by Teper, to approve Yolanda Hansen's Decision and Order. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas 4  Niles Firefighters' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, lt 60714 November 2, 2020 Motion carried. Firefighter Hansen ex-spouse completed and submitted to the Fund a QILDRO regarding Firefighter Hansen line of duty pension. Carolyn advised his attorney by letter that QILDROS do not attach to disability benefits. The QILDRO will be kept on file if Hansen ever converts her disability benefit to a retirement benefit. Byron has requested the Charles Schwab signature sheet from Sawyer and Falduto. Tom Sawyer will send the document to Byron Tull. Bob Greiner presented the final findin8s of the Pension Audit by the State of lllinois. The audit is complete, and all items found in audit have been addressed. Consideration of and Action upon Applicants for Admission and/or Withdrawal from the Fund: Lieutenant Mark Bucher applied for regular retirement on October 1, 2020. He had twenty-five years and six months of creditable service with a total salary of 5L27,823.75. His monthly pension is 56,790.64. Lauterbach & Amen prepared the benefit calculation, which was reviewed by the Board' On a motion by Tull, seconded by Grammas, to approve Mark Buche/s regular retirement pension with a monthly pension of 56,790.64. AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. New Business: carolyn clifford from ottosen DiNolfo presented the 2021 tax levy recommendation letter that will be sent to the Village. The Board requests the Village of Niles levy the recommended actuarial amount of 54,981,958 reflecting the Village of Niles preferred 7.0% investment rate of return assumption. On a motion by Tull, seconded by Greiner, to approve the Tax Levy Request from the Niles FirefiBhters' pension Fund for 2021 of 54,981,958 and send the letter to the Village of Niles. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None 5  Niles Firefighters' Pension Fund Board of Trustees Meeting 8350 Dempster Niles, lL 60714 November 2, 2020 ABSENT: Grammas Motion carried. Trinette presented the Municipal Compliance Report for the fiscal year ended April 30,2020. ltwasnoted that the recommended and statutory minimum municipal contributions 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 Teper, to approve and adopt the Municipal Compliance Report. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: crammas Motion carried. Byron wanted to begin discussions regarding the Village of Niles purchasing pension obligation bonds. Kent stated that he was going to try to educate the Board and the importance of lowering the assumed rate of return. Kent also stated that he was against purchasing pension obligation bonds and believed this was not appropriate for our situation. Training: Carolyn distributed and reviewed training material for the Board including updates on consolidation and other lega I issues. The Boa rd has designated two hou rs of tra ining for th is meeting a nd associated training material. Closed Meeting: There was no closed session Schedule 2020 Meetings: The Board reviewed the proposed 2021 schedule: February 9, May 13, August L7, and November 9 at 8:30 a.m. at Niles Fire Department Station 2. on a motion by Tull, seconded by Grammas, to approve the 2021 regular meeting schedule. upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None 6  Niles Firefighters' Pension Fund Board of Trustees Meeting 8350 Dempster Niles, lL 60714 November 2, 2020 ABSENT: Grammas Motion carried. The meeting was adjourned at 10:12 a.m. on a motion by Tull, seconded by Greiner. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Teper NAYS: None ABSENT: Grammas Motion carried. Respectfully submitted, tner, retary M inutes approved by the Board of Trustees at its meeting on February 78,2027. Minutes prepored by Rich Scipione, Pension Clerk to the Fund 7