Firefighters' Pension Fund Board

MINUTES OF A REGULAR MEETING OF THE WHEATON FIREFIGHTERS’ PENSION FUND BOARD OF TRUSTEES FEBRUARY 19, 2021 A regular meeting of the Wheaton Firefighters’ Pension Fund Board of Trustees was held via video conference on Friday, February 19, 2021 at 1:00 p.m. without a quorum of the public body physically present at the Board regular meeting location because of a disaster declaration related to COVID-19 public health concerns affecting the City of Wheaton. The Wheaton Firefighter’s Pension Fund Board President has determined that an in-person meeting with all participants is not practical, prudent or feasible because of the disaster pursuant to notice. CALL TO ORDER: Trustee Skilondz called the meeting to order at 1:00 p.m. ROLL CALL: PRESENT: Trustees Jason Skilondz, John Cochran, Rick Kammes, Charles Hartman and Michael Savegnago ABSENT: None ALSO PRESENT: Attorney Brian LaBardi, Reimer Dobrovolny & LaBardi PC; Paul Marchese, Marquette Associates; Jennifer Flores and Kelley Murray, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: November 12, 2020 Regular Meeting and December 18, 2020 Special Meeting: The Board reviewed the November 12, 2020 regular meeting and December 18, 2020 special meeting minutes. A motion was made by Trustee Savegnago and seconded by Trustee Cochran to approve the November 12, 2020 regular meeting and December 18, 2020 special meeting minutes as written. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None The Board noted the December 18, 2020 regular meeting minutes had the next meeting date as Friday, February 19, 2021 at 1:00 a.m. and the correct time is 1:00 p.m. The correction will be made. Semi-Annual Review of Closed Session Meeting Minutes: The Board reviewed the closed session meeting minutes and will not release them at this time due to pending matters. A motion was made by Trustee Cochran and seconded by Trustee Savegnago to keep the closed session meeting minutes closed. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None INVESTMENT REPORT – MARQUETTE ASSOCIATES: Executive Summary: Mr. Marchese presented the Executive Summary for the period ending December 31, 2020. Mr. Marchese discussed the market environment, investment manager status report, summary of investment changes, total fund composite and performance by investment managers. As of December 31, 2020, the three-month total net return is 9.9% and the year-to-date total net return is 11.4% for an ending market value of $40,820,228. The current asset allocation is as follows: Fixed Income at 33.5%, U.S. Equity at 33.5%, International Wheaton Firefighters’ Pension Fund Meeting Minutes – February 19, 2021 Page 2 of 4 Equity at 20.4%, Real Estate at 5.8%, Global Tactical Composite at 5.2%, Annuities at 1.5% and Cash at 1.6%. Potential Purchase and/or Sale of Securities, Potential Portfolio and/or Hiring or Termination of Investment Manager: Mr. Marchese informed the Board that CI Financial will acquire Segall Bryant & Hamill by April 30, 2021. A motion was made by Trustee Savegnago and seconded by Trustee Cochran to place CI Financial on alert due to organizational changes. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None A motion was made by Trustee Savegnago and seconded by Trustee Hartman to provide consent to assign the current Segall Bryant & Hamill contract to CI Financial. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None A motion was made by Trustee Cochran and seconded by Trustee Kammes to transfer $100,000 from Vanguard S&P 500 and reallocate to cash on April 1, 2021. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran and Kammes NAYS: None ABSENT: None ABSTAIN: Trustee Hartman A motion was made by Trustee Savegnago and seconded by Trustee Cochran to accept the Executive Summary as presented. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None Review/Update Investment Policy: The Board discussed the Investment Policy and determined that no changes are required at this time. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report: The Board reviewed the Monthly Financial Report for the twelve-month period ending December 31, 2020 prepared by L&A. As of December 31, 2020, the net position held in trust for pension benefits is $41,496,234.25 for a change in position of $4,602,193.44. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal. Presentation and Approval of Bills: The Board reviewed the Vendor Check Report for the period October 1, 2020 through December 31, 2020 for total disbursements of $114,992.05. A motion was made by Trustee Savegnago and seconded by Trustee Cochran to approve the disbursements shown on the Vendor Check Report in the amount of $114,992.05. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None A motion was made by Trustee Savegnago and seconded by Trustee Cochran to accept the Monthly Financial Report as presented. Motion carried by roll call vote. Wheaton Firefighters’ Pension Fund Meeting Minutes – February 19, 2021 Page 3 of 4 AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None Additional Bills, if any: There were no additional bills presented for approval. TRUSTEE TRAINING UPDATES: The Board discussed upcoming training opportunities. Trustees were reminded to submit any certificates of completion to L&A for recordkeeping. Approval of Trustee Training Registration Fees and Reimbursable Expenses: The Board discussed the upcoming 2021 IPPFA Illinois Pension Conference Lincolnshire, Illinois. A motion was made by Trustee Cochran and seconded by Trustee Hartman to approve the registration fees in the amount of $385 each for trustees interested in attending the IPPFA Illinois Pension Conference and to direct L&A to register all five Trustees for the event. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: The Board noted that L&A mailed Affidavits of Continued Eligibility to all pensioners with the December payroll cycle and a due date of January 30, 2021. Second requests were mailed to the 4 outstanding pensioners on February 8, 2021 with a due date of February 22, 2021. If needed, the Board instructed L&A to send third request affidavits via certified mail to all outstanding pensioners on March 1, 2021 and a due date of April 1, 2021 noting that the pensioners’ direct deposit will be suspended and converted to a physical check(s), which can be picked up at the L&A office when the completed affidavit and valid identification is provided. A motion was made by Trustee Cochran and seconded by Trustee Savegnago to authorize L&A to suspend the pensioners’ direct deposit beginning with the April payroll cycle until a completed affidavit is received. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None 2021 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for reimbursement decreased to $0.56 per mile effective January 1, 2021. Statements of Economic Interest: The Board noted that the List of Filers was to be submitted to the County by the City by February 1, 2021. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2021. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND AND/OR RETIREMENT/DISABILITY BENEFITS: The Board noted that Lyle Lake continues to collect workers’ compensation, although his disability benefit has been approved by the Pension Fund. Attorney LaBardi reported that Mr. Lake’s attorney confirmed that a settlement is being finalized for his workers’ compensation case and will notify the Board when the Pension Fund disability benefit should commence. No Board action is needed at this time. Further discussion will be held at the next regular meeting. OLD BUSINESS: There was no old business to discuss. NEW BUSINESS: Approve Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board reviewed the 2021 Cost of Living Adjustments (see attached) calculated by L&A. A motion was made by Wheaton Firefighters’ Pension Fund Meeting Minutes – February 19, 2021 Page 4 of 4 Trustee Cochran and seconded by Trustee Hartman to approve the 2021 Cost of Living Adjustments as required by statute and calculated by L&A. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran and Hartman NAYS: None ABSENT: None ABSTAIN: Trustee Kammes Review Trustee Term Expirations and Election Procedures: The Board noted that the retired member term currently held by Trustee Kammes is expiring in April. Trustee Kammes expressed his interest to remain on the Board if nominated. L&A will conduct an election on behalf of the Pension Fund for the retired member Trustee position. IDOI Annual Statement: The Board noted that the IDOI Annual Statement is in process and the final report will be sent to the Board for review upon completion. Review/Approve – FPIF Vendor Authorization Letter: The Board reviewed the FPIF Vendor Authorization Letter requesting authorization to share data and information from the Wheaton Firefighters’ Pension Fund to the Firefighters’ Pension Investment Fund. Further discussion will be held at the next regular meeting. Investment Board Update: This item was previously under FPIF Vendor Authorization Letter. Discussion/Possible Action – Lauterbach & Amen, LLP Records Inventory and Disposal Services: The Board requested that L&A perform the complimentary on-site consultation, in order for L&A to assess the volume, arrangement and condition of records. Further discussion will be held at the next regular meeting. ATTORNEY’S REPORT – REIMER DOBROVOLNY & LABARDI PC: Legal Updates: The Board reviewed the Legal and Legislative Update quarterly newsletter. Attorney LaBardi discussed recent court cases and decisions, as well as general pension matters with the Board. CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Savegnago and seconded by Trustee Kammes to adjourn the meeting at 2:16 p.m. Motion carried by roll call vote. AYES: Trustees Skilondz, Savegnago, Cochran, Hartman and Kammes NAYS: None ABSENT: None The next regular meeting is scheduled for May 17, 2021 at 9:00 a.m. _______________________________ Board President or Secretary Minutes approved by the Board of Trustees on _______________________ Minutes prepared by Kelley Murray, Pension Services Administrator, Lauterbach & Amen, LLP