Police Pension Board

Niles Police Pension Fund 7000 W. Touhy Avenue, Niles, Illinois 60714 Vincenzo Genualdi Samuel Fucarino Michael Boba Marimel Lim Jim Grammas President Vice President Secretary Assistant Secretary Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OF THE NILES POLICE PENSION FUND WEDNESDAY, OCTOBER 10, 2017 A regular meeting of the Board of Trustees of the Niles Police Pension Fund was held on Wednesday, October 10, 2017 at 1:00 p.m. at the Niles Police Department located at 7000 W. Touhy Avenue, Niles, Illinois for the purpose of conducting regular business. CALL TO ORDER: The meeting was called to order by Trustee Genualdi at 1:07 p.m. ROLL CALL: PRESENT: Trustees Vincenzo Genualdi, Michael Boba, Samuel Fucarino, and Marimel Lim ABSENT: Trustee Jim Grammas ALSO PRESENT: Carolyn Clifford, Ottosen Britz; John Falduto and Tom Sawyer, Sawyer Falduto Asset Management; Steve Earnhardt, Michelle Hawkins, and Isabel Copeland, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There were no public comments. APPROVAL OF MEETING MINUTES: Regular Meeting Minutes – July 12, 2017: The Board reviewed the minutes from the July 12, 2017 regular meeting. A motion was made by Trustee Boba and seconded by Trustee Lim to approve the July 12, 2017 regular meeting minutes as written. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Fucarino NAYS: None ABSENT: Trustee Grammas Semi-Annual Review of Closed Session Meeting Minutes: The Board discussed the closed session minutes and will not release them at this time. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report: The Board reviewed the Monthly Financial Report for the five-month period ending September 30, 2017 as prepared by L&A. As of 09/30/17, the net position held in trust for pension benefits is $31,270,928.08 for a change in position of $743,637.82. The Board 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 Fucarino to accept the Monthly Financial Report as presented. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Fucarino NAYS: None ABSENT: Trustee Grammas Presentation and Approval of Bills: The Board reviewed the Vendor Checks Report for the period 07/01/17 through 09/30/17 for total disbursements of $192,221.10. A motion was made by Trustee Genualdi and seconded by Trustee Lim to approve the disbursements shown on the Vendor Checks Report in the amount of $192,221.10. Motion carried by roll call vote. Niles Police Pension Fund Minutes of Meeting – October 10, 2017 Page 2 of 4 AYES: Trustees Genualdi, Boba, Lim, and Fucarino NAYS: None ABSENT: Trustee Grammas Additional Bills: There were no additional bills presented at this time. INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT: Quarterly Investment Performance Report: Tom Sawyer and John Falduto presented the Quarterly Investment Performance Report for the period ending September 30, 2017. As of 09/30/2017, the third quarter net return is 3.04% versus the third quarter account benchmark of 2.83%. The investment return for the quarter is $939,302 for an ending market value of $31,259,851. The current asset allocation is as follows: Fixed Income at 42.6%, Equities at 57.1% and Cash Equivalents at 0.3%. Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, Credit Rating Report and Transaction Ledger Report with the Board. A motion was made by Trustee Genualdi and seconded by Trustee Fucarino to accept the Quarterly Investment Performance Report as presented. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Fucarino NAYS: None ABSENT: Trustee Grammas Review/Update Investment Policy: The Board reviewed the Investment Policy and determined no changes were needed. COMMUNICATIONS OR REPORTS: Affidavits of Continued Eligibility: The Board noted that all 2017 Affidavits of Continued Eligibility have been received. The originals will be provided to the Board for its records 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: There were no applications for membership or withdrawals from the Fund at this time. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Deceased Surviving Spouse – June Beavers: The Board noted that June Beavers passed away September 6, 2017, and her surviving spouse pension benefits have ceased. Status of Disability Application – Eric Lambrechts: The Board has received an application for disability benefits from Eric Lambrechts. Attorney Clifford informed the Board she is in the process of collecting Eric Lambrechts’ medical records and will schedule the independent medical examinations once all documentation has been received. The Board was provided with a memorandum of possible IME physicians, and it directly Attorney Clifford to work with whichever physicians are first available to schedule IME appointments. President Genualdi will sign and serve the subpoenas to the Village and Niles Police Department for records. A status update will be provided at the next regular meeting. OLD BUSINESS: 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. Niles Police Pension Fund Minutes of Meeting – October 10, 2017 Page 3 of 4 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 regarding his QILDRO. Further updates will be provided as they become available. Code of Conduct – Fund Service Providers: Attorney Clifford provided the Board with a signed memorandum regarding the Code of Conduct for Fund Service Providers. L&A will keep copies of all signed Code of Conduct Agreements submitted by the Fund’s vendors. Status of Village Audit: The Board noted that L&A is waiting on a final copy of the audit to be received. Once received, the Actuarial Valuation will be finalized and submitted to the Village. NEW BUSINESS: Review/Approval of Updated Board Rules and Forms: Attorney Clifford informed the Board that she updated the Board Rules and Forms with the transfer of creditable service form that was errantly missing from the revised set she had previously sent to the Board. No further action is needed. Review/Approve – Actuarial Valuation/Tax Levy Request/Municipal Compliance Report: The Board reviewed the Actuarial Valuation and Municipal Compliance prepared by L&A. Based on data and assumptions, the recommended contribution amount is $3,963,779 which is a $289,675 increase from the prior year contribution. The statutory minimum contribution requirement is $3,128,581. A motion was made by Trustee Boba and seconded by Trustee Fucarino to accept the Actuarial Valuation as prepared and to request a tax levy in the amount of $3,963,779 from the Village of Niles Board of Trustees based on the recommendation of L&A subject to any changes once the final audit is received. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Fucarino NAYS: None ABSENT: Trustee Grammas Tax Levy Request Letter: Attorney Clifford distributed copies of the draft Tax Levy Request letter and discussed revisions with the Board. A final copy will be submitted to the Village Board of Trustees with the Municipal Compliance Report, the Board’s investment policy, and the Actuarial Valuation. Illinois Department of Insurance Annual Statement: L&A informed the Board that a draft of the Illinois Department of Insurance Annual Statement was sent to the Board for review. The final statement will be filed with the Illinois Department of Insurance with the signed Certification Form before the October 31 st deadline. Joint Resolution of Appreciation – Jim Callero: The Board reviewed the Resolution of Appreciation prepared by Attorney Clifford. A motion was made by Trustee Fucarino and seconded by Trustee Genualdi to sign and execute the resolution as presented. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Fucarino NAYS: None ABSENT: Trustee Grammas 2018 Board Meeting Dates: The Board discussed establishing the 2018 Board meeting dates as January 10, April 11, July 11, October 10 at 1:00 p.m. located at the Niles Police Department 7000 W. Touhy Avenue, Niles, Illinois. A motion was made by Trustee Genualdi and seconded by Trustee Lim to establish the 2018 Board meeting dates as stated. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Fucarino NAYS: None ABSENT: Trustee Grammas Niles Police Pension Fund Minutes of Meeting – October 10, 2017 Page 4 of 4 ATTORNEY’S REPORT: Legal Updates: Attorney Clifford discussed the fourth quarter Ottosen Britz Pension Practice Quarterly Insights and highlighted items pertaining to the consolidation of downstate Pension Funds and also discussed Public Act 100-281. CLOSED SESSION, IF NEEDED: There was no closed session needed. ADJOURNMENT: A motion was made by Trustee Genualdi and seconded by Trustee Boba to adjourn the meeting at 2:32 p.m. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Fucarino NAYS: None ABSENT: Trustee Grammas The next regular meeting is scheduled for January 10, 2018 at 1:00 p.m. _______________________________________________ Michael Boba, Board Secretary Minutes prepared by Michelle Hawkins, Pension Services Administrator Minutes approved by the Board of Trustees at its meeting held on January 10, 2018.