Police Pension Board

Niles Police Pension Fund 7000 W. Touhy Avenue, Niles, Illinois 60714 Michael Boba Samuel Fucarino Danielle Helma Marimel Lim James Grammas President Vice President Secretary Asst. Secretary Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OF THE NILES POLICE PENSION FUND JULY 11, 2018 A regular meeting of the Board of Trustees of the Niles Police Pension Fund was held on Wednesday, July 11, 2018 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 Lim at 1:06 p.m. ROLL CALL: PRESENT: Trustees Michael Boba (arrived at 1:19 p.m.), Jim Grammas, Danielle Helma, and Marimel Lim ABSENT: Trustee Samuel Fucarino ALSO PRESENT: Attorney Carolyn Clifford, Ottosen Britz (arrived at 1:12 p.m).; Tom Sawyer, Sawyer Falduto Asset Management; Michelle Hawkins, Trinette Gardner, and Jessica Fain, Lauterbach & Amen, LLP (L&A) A motion was made by Trustee Grammas and seconded by Trustee Helma to appoint Trustee Lim as President pro tempore. Motion carried unanimously by voice vote. PUBLIC COMMENT: There were no public comments. APPROVAL OF MEETING MINUTES: April 11, 2018 Regular Meeting, April 11, 2018 Special Meeting, and April 11, 2018 Closed Session Meeting Minutes: The Board reviewed the minutes from the April 11, 2018 regular meeting, April 11, 2018 special meeting and April 11, 2018 closed session meeting. A motion was made by Trustee Lim and seconded by Trustee Grammas to approve the April 11, 2018 regular meeting, April 11, 2018 special meeting, and April 11, 2018 closed session meeting minutes as written. Motion carried unanimously by voice vote. Attorney Clifford joined the meeting at 1:12 p.m. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report: The Board reviewed the Monthly Financial Report for the two-month period ending June 30, 2018 as prepared by L&A. As of 06/30/2018, the net position held in trust for pension benefits is $32,420,675.76 for a change in position of ($76,933.23). The Board reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal. A motion was made by Trustee Lim and seconded by Trustee Grammas to accept the Monthly Financial Report as presented. Motion carried unanimously by voice vote. Presentation and Approval of Bills and Additional Bills: The Board reviewed the Vendor Check Report for the period 04/01/2018 through 06/30/2018 for total disbursements of $190,032.46 and the lodging reimbursement submitted by Trustee Boba for the 2018 IPPFA MidAmerican Pension Conference in the amount of $751.41. A motion was made by Trustee Lim and seconded by Trustee Grammas to approve the disbursements shown on the Vendor Check Report in the amount of $190,032.46 and the additional invoice as presented. Motion carried by roll call vote. Niles Police Pension Fund Minutes of Meeting – July 11, 2018 Page 2 of 4 AYES: Trustees Helma, Lim, and Grammas NAYS: None ABSENT: Trustees Boba and Fucarino Trustee Boba joined the meeting at 1:19 p.m. INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT: Quarterly Investment Performance Report: Tom Sawyer presented the Quarterly Investment Performance Report for the period ending June 30, 2018. As of 06/30/2018, the net return for the quarter is 1.72% versus the second quarter account benchmark of 1.76%. The investment return for the quarter is $567,551 for an ending market value of $32,408,201. The current asset allocation is as follows: Fixed Income at 43.0%, Equities at 56.4% and Cash Equivalents at 0.6%. Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, Credit Rating Report and Transaction Ledger Report with the Board. He noted that the Homestead Small Company Stock Fund was replaced with the Goldman Sachs Small Cap Fund, and the Hennessy Focus Fund was replaced with Victory Sycamore Fund. A motion was made by Trustee Boba and seconded by Trustee Helma to accept the Quarterly Investment Performance Report as presented. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino 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 L&A mailed Affidavits of Continued Eligibility to all pensioners with the June payroll and a due date of July 31st. A status update will be provided at the next scheduled meeting. Active Member File Maintenance: The Board noted that L&A will prepare Active Member File Maintenance letters for distribution to all active members requesting any additional pension file documents as required by the IDOI. 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: Applications for Membership – Roy Brines & Michael Dati: The Board reviewed the Applications for Membership submitted by Roy Brines and Michael Dati. A motion was made by Trustee Lim and seconded by Trustee Boba to accept Roy Brines and Michael Dati into the Niles Police Pension Fund, effective 04/02/2018 as Tier II participants. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Disability Benefits – Eric Lambrechts: The Board reviewed the line of duty disability benefit calculation for Eric Lambrechts prepared by L&A. Sergeant Lambrechts had an entry date of 09/08/1992, disability date of 02/02/2018, effective date of pension of 02/03/2018, 50 years of age at date of disability, 25 years of creditable service, applicable salary of $118,861.06, applicable pension percentage of 65%, amount of originally granted monthly pension of $6,438.31, and amount of originally granted annual pension of $77,259.72. A motion Niles Police Pension Fund Minutes of Meeting – July 11, 2018 Page 3 of 4 was made by Trustee Lim and seconded by Trustee Grammas to approve Eric Lambrechts’ line of duty disability benefit as calculated by L&A and to approve his retroactive payment in the amount of $4,788.90. Motion carried by roll call vote. AYES: Trustees Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino ABSTAIN: Trustee Helma Approve Findings and Decision – Eric Lambrechts: Attorney Clifford provided the Board with the Findings and Decision for Eric Lambrechts’ line of duty disability. A motion was made by Trustee Lim and seconded by Trustee Boba to approve the Findings and Decision for Eric Lambrechts’ prepared by Ottosen Britz. Motion carried by roll call vote. AYES: Trustees Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino ABSTAIN: Trustee Helma Deferred Pension Benefit – Vincenzo Genualdi: The Board noted that L&A is in the process of creating a benefit calculation for Vincenzo Genualdi. An update will be provided at the next scheduled meeting. OLD BUSINESS: Review of Possible Refund for Overpaid Fees – Cetera: The Board received a response from Cetera that it did not have the Fund’s assets in custody during the time Capital Gains served as the Fund’s investment advisor. However, Tom Sawyer determined that the transfer of the Fund’s assets came from a different broker/dealer, Securities America. The Board discussed whether it should pursue an inquiry with American Securities regarding possible overpaid fees. Attorney Clifford will draft a letter to American Securities requesting a review of the account, after consulting with the Niles Firefighters’ Pension Fund, as well. Further discussion will be held at the next scheduled meeting. Certify Board Election Results – Active Member Positions: L&A conducted an election for the two Active Member positions on the Niles Police Pension Fund Board of Trustees. The Board noted that 40 ballots were received and 40 ballots were counted. The Active Member election results are as follows: 37 votes for Michael Boba, 33 votes for Danielle Helma and 10 votes for Anthony Scipione. Michael Boba and Danielle Helma were elected as the Active Members on the Board of Trustees for two-year terms expiring April 30, 2020. A motion was made by Trustee Lim and seconded by Trustee Grammas to certify the election results. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino NEW BUSINESS: Board Officer Elections – President, Vice President, Secretary, & Assistant Secretary: The Board discussed Board officer elections and nominated the following slate of officers: Michael Boba as President, Samuel Fucarino as Vice President, Danielle Helma as Secretary, and Marimel Lim as Assistant Secretary. A motion was made by Trustee Lim and seconded by Trustee Boba to elect the slate of officers as stated. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino BMO Harris Bank Schwab Account Signature Cards Updates and Resolution Update: L&A provided the Board with the necessary forms to update the signers on the BMO Harris Bank account with the current Board members and municipal representative. A motion was made by Trustee Lim and seconded by Trustee Niles Police Pension Fund Minutes of Meeting - July I l, 2018 Page 4 of 4 Grammas to approve Resolution 18-l designating Trustees Boba and Helma and Treasurer Maftynowicz as signers on all accounts for the Niles Police Pension Fund. Motion carried by ro11 call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Revieu, Prelintinary Actuarial l/aluation; The Board reviewed the preliminary actuarial valuation prepared by L&A. The Board discussed lowering the investment assumption rate of return from '7.25%. Furtlrer discussion will be held at the next scheduled meeting before the actuarial valuation is finalized. Security Adninistrator Designee; The Board discussed the IDOI Security Adrninistrator. A motion was made by Trustee Lirn and seconded by Trustee Gratnlnas to designate Trustee Boba as the Niles Police Pension Fund IDOI Security Administrator. Motion carried unanimously by voice vote. FOIA Officer and OMA Desigtee;The Board noted that Trustee Boba will retnain as the FOIA Officer and OMA Designee for the Fund. IDOI Annual Statement:The Board noted that tlie IDOI Annual Statement is in process and tlre updated interrogatories required by tlie IDOI effective June 1,2018 were presented to the Board for review. The final report will be sent to the Board for review upon completion. ATTORNEY'S REPORT: Legal Updqtes: Attorney Clifford discussed the third quarler Ottosen Britz Pension Practice Quarterly Insights and liighlighted items pertaining to the intercept process. CLOSED SESSION,IF NEEDED: There was no closed session needed. ADJOURNMENT: A motion was made by Trustee Lim and seconded by Trustee Boba to adjourn the meeting at 2:41 p.m. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Litn, and Grammas NAYS: None ABSENT: Trustee Fucarino next regular is scheduled for October 10, 2018 at 1:00 p.m. Trustee Date A by Board Minutes prepared by Michelle Hav,kins, Pension Services A&ninistrator, Lauterbaclt & Amen, LLP