Police Pension Board

Niles Police Pension Fund 7000 W. Touhy Avenue, Niles, Illinois 60714 Vincenzo Genualdi Samuel Fucarino Michael Boba James Callero Marimel Lim President Vice President Secretary Trustee Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OF THE NILES POLICE PENSION FUND WEDNESDAY, APRIL 5, 2017 A regular meeting of the Board of Trustees of the Niles Police Pension Fund was held on Wednesday, April 5, 2017 at 1:00 p.m. at the Niles Police Department located at 7000 Touhy Avenue, Niles, Illinois for the purpose of conducting regular business. CALL TO ORDER: The meeting was called to order by Trustee Genualdi at 1:00 p.m. PRESENT: Trustees Vincenzo Genualdi, Michael Boba, James Callero, and Marimel Lim ABSENT: Trustee Samuel Fucarino ALSO PRESENT: Carolyn Clifford, Ottosen Britz; John Falduto and Tom Sawyer, Sawyer Falduto Asset Management; Steve Earnhardt, Michelle Hawkins, and Robina Amato, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There were no public comments. APPROVAL OF MEETING MINUTES: Regular Meeting Minutes – January 11, 2017: The Board reviewed the minutes from the January 11, 2017 regular meeting. A motion was made by Trustee Callero and seconded by Trustee Lim to approve the January 11, 2017 regular meeting minutes as written. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino Six-Month Review of Closed Session Meeting Minutes: The Board discussed the closed session meeting minutes. A motion was made by Trustee Genualdi and seconded by Trustee Boba to not release the closed session minutes at this time with further discussion being held at the next scheduled meeting. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino ACCOUNTANT’S REPORT: Monthly Financial Report: The Board reviewed the Monthly Financial Report for the eleven-month period ending March 31, 2017 as prepared by L&A. As of 03/31/17, the net position held in trust for pension benefits is $29,687,795.68 for a change in position of $1,602,455.07. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal. A motion was made by Trustee Genualdi and seconded by Trustee Callero to accept the Monthly Financial Report as presented. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino Presentation and Approval of Bills: The Board reviewed the Vendor Checks Report for the period 01/01/17 through 03/31/17 for total disbursements of $178,946.62. A motion was made by Trustee Genualdi and Niles Police Pension Fund Minutes of Meeting – April 5, 2017 Page 2 of 4 seconded by Trustee Boba to approve the disbursements shown on the Vendor Checks Report in the amount of $178,946.62. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino Additional Bills, if any – Illinois Department of Insurance Compliance Fee: The Board noted that the Illinois Department of Insurance Compliance Fee invoice will be issued and payment is due by June 30 th. A motion was made by Trustee Genualdi and seconded by Trustee Callero to approve payment of the IDOI Compliance Fee, upon receipt of the invoice, in an amount not to exceed $8,000. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino Approval of Annual Secretarial Services Fee – Helen Boba: The Board discussed the annual secretarial services fee for Helen Boba. A motion was made by Trustee Genauldi and seconded by Trustee Lim to approve payment of the annual secretarial services fee for Helen Boba in the amount of $1,100. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino INVESTMENT REPORT: Sawyer Falduto Asset Management Portfolio Review: John Falduto and Tom Sawyer presented the Quarterly Investment Performance Report for the period ending March 31, 2017. As of 03/31/2017, the first quarter net return is 3.67% versus the first quarter account benchmark of 3.29%. The investment return for the quarter is $1,075,142 for an ending market value of $29,670,247. The current asset allocation is as follows: Fixed Income at 42.5%, Equities at 57.2% and Cash Equivalents at 0.4%. Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, Credit Rating Report and Transaction Ledger Report with the Board. Mr. Sawyer also noted that the American Beacon International Fund was replaced with Goldman Sachs International in March. A motion was made by Trustee Callero and seconded by Trustee Boba to accept the Quarterly Investment Performance Report as presented. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino Review/Update Investment Policy: The Board reviewed the Investment Policy and determined no changes are needed at this time. Annual Evaluation of Investment Advisor – Sawyer Falduto Asset Management: Attorney Clifford reviewed with the Board and Investment Manager the Annual Investment Professional Review and Oversight Checklist. Sawyer Falduto provided the Board with the firm’s Annual Evaluation documentation that will be placed in the Board’s files. COMMUNICATIONS OR REPORTS: Statements of Economic Interest: The Board was reminded that the Statements of Economic Interest are due by May 1st. Affidavits of Continued Eligibility: The Board noted that L&A will be mailing Affidavits of Continued Eligibility to all pensioners with the June payroll cycle. It was noted that no disabled police officers are Niles Police Pension Fund Minutes of Meeting – April 5, 2017 Page 3 of 4 under the age of 50 and thus no annual independent medical examinations will be required. A status update will be provided at the next scheduled meeting. TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and upcoming training opportunities. Trustees were reminded to submit any certificates of completion to L&A for recordkeeping. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Application for Membership – Kristine Koch: The Board reviewed the Application for Membership submitted by Kristine Koch. Ms. Koch was hired on September 29, 2016 as a Tier II participant. Application for Membership – Carlos Jimenez-Very: The Board reviewed the Application for Membership submitted by Carlos Jimenez-Very. Mr. Jimenez-Very was hired on September 29, 2016 as a Tier II participant. A motion was made by Trustee Genualdi and seconded by Trustee Boba to accept Kristine Koch and Carlos Jimenez-Very into the Niles Police Pension Fund effective September 29, 2016, as Tier II participants. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Application for Disability Benefits – Joseph Paglia – Status and Appointment of IME Physicians: Attorney Clifford informed the Board that Mr. Paglia’s medical documentation has been received, and three IME physicians have been recommended to the Board in a memo that was sent to the Board in advance of the meeting. A motion was made by Trustee Genualdi and seconded by Trustee Lim to approve the three recommended IME physicians, Dr. Samo, Dr. Stamelos and Dr. Meis. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino OLD BUSINESS: Board Rules and Forms Updates – Final Set: Attorney Clifford advised the Board that the Rules and Forms have been updated and final copies were sent to the Board for review. Status of Agreement with Lauterbach & Amen for PSA/Portal Services: The Board noted that the engagement letter with Lauterbach & Amen for PSA and Portal Services is currently being revised. An update will be provided at the next scheduled meeting. NEW BUSINESS: Status of QILDRO – Thomas Davis: Trustee Genualdi informed the Board that no response has been received to date from Mr. Davis or his legal counsel. An update will be provided at the next regular meeting. Harris Bank Signature Card Update: The Board noted that the Harris Bank Signature Card and Treasurer’s Resolution were updated to reflect the new Village of Niles Treasurer. No further action is needed Certify Board Elections Results – Retired Member Position: L&A conducted an election for the Retired Member position on the Niles Police Pension Fund Board of Trustees. Samuel Fucarino ran unopposed and was reelected by acclamation for a two-year term expiring April 30, 2019. A motion was made by Trustee Genualdi and seconded by Trustee Boba to certify the Retired Member election results. Motion carried by roll call vote. Niles Police Pension Fund Minutes of Meeting – April 5, 2017 Page 4 of 4 AYES: Trustees Genualdi, Boba, Callero, and Lim NAYS: None ABSENT: Trustee Fucarino ATTORNEY’S REPORT: Legal Updates: Attorney Clifford discussed with the Board the consolidation of Article 3 & 4 Pension Funds which the Illinois Municipal League has made as its legislative priority this year. She shared a copy of a white paper on the issue that she received from the Illinois Professional Firefighters’ Association. CLOSED SESSION: There was no closed session needed. ADJOURNMENT: A motion was made by Trustee Callero and seconded by Trustee Boba to adjourn the meeting at 2:34 p.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for July 12, 2017 at 1:00 p.m. _______________________________________________ Michael Boba, Board Secretary Minutes prepared by Michelle Hawkins, Pension Services Administrator