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Home My WebLink About01/24/2017 FFPB MinutesMOUNT PROSPECT FIREFIGHTERS' PENSION FUND 112 E. Northwest Highways Mount Prospect, Illinois 60056-3232 Brian Lambel Fire Chief ""'' MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES TUESDAY, JANUARY 24, 2017 A regular meeting of the Board of Trustees of the Mount Prospect Firefighters' Pension Fund was held on Tuesday, January 24, 2017 at 8:30 a.m. at the Mount Prospect Fire Station, 112 East Northwest Highway, Mount Prospect, Illinois, pursuant to notice. CALL TO ORDER: The meeting was called to order by Trustee Lambel at 8:32 a.m. PRESENT: Trustees Brian Lambel, Dave Erb, Sam Baas and Joe Vena ABSENT: Trustee Joe Knoll ALSO PRESENT: Mary Nye and Howard Pohl, AndCo Consulting; Cary Collins, Collins & Raja; Stacie Woodill, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: October 24, 2016 Regular Meeting Minutes: The minutes of the October 24, 2016 regular meeting were reviewed by the Board. A motion was made by Trustee Erb and seconded by Trustee Lambel to approve the October 24, 2016 meeting minutes as written. Motion carried unanimously by voice vote. Semi -Annual Review of Closed Session Meeting Minutes: The Board noted there are closed session meeting minutes but will not release them at this time. TREASURER'S REPORT: Quarterly Financial Report: The Board reviewed the Financial Statement prepared by Treasurer Erb for the quarter ending December 31, 2016. The total market value of the fund as of 12/31/2016 is $58,275,552 with an unrealized loss of $205,004. The report also included an income statement, a summary of all investment activity, and a detailed schedule of investment holdings for the quarter. A motion was made by Trustee Lambel and seconded by Trustee Baas to accept the financial report for the period ending 12/31/2016, as prepared by Trustee Erb. Motion carried unanimously by voice vote. Presentation and Approval of Bills: The Board was presented with the Vendor Disbursements Report for the period October 1, 2016 through December 31, 2016, for a total disbursement of $46,279.06. A motion was made by Trustee Lambel and seconded by Trustee Baas to approve the Vendor Disbursements Report as presented. Motion carried by roll call vote. AYES: Trustees Lambel, Baas, Erb and Vena NAYS: None ABSENT: Trustee Knoll Mount Prospect Firefighters' Pension Fund Meeting Minutes — January 24, 2017 Page 2 of 3 INVESTMENT REPORT: Mary Nye and Howard Pohl from AndCo Consulting presented the Quarterly Investment Report. Howard Pohl discussed the long term market value of the fund, along with the risk -reward analysis and current and projected market conditions. Mary Nye presented the Investment Report for the period ending December 31, 2016. As of 12/31/2016, the market value of the portfolio is $57,939,935 and the investment return is $114,419 for the quarter. The portfolio composition is 42.1% in domestic equities, 12.0% in international equities, 34.6% in domestic fixed income, 5.1% in real estate, 6.2% in emerging markets and 0.0% in cash and equivalent. Current asset allocations within the equity and fixed income funds were reviewed, as well as individual fund performance, and investment fees. All questions were answered by Mary Nye and Howard Pohl. A motion was inade by Trustee Lambel and seconded by Trustee Vena to accept the Quarterly Investment Report as presented. Motion carried unanimously by voice vote. A motion was made by Trustee Erb and seconded by Trustee Lambel to transfer $500,000 from T. Rowe Price Mid Cap Growth into cash for operating purposes. Motion carried by roll call vote. AYES: Trustees Lambel, Baas, Erb and Vena NAYS: None ABSENT: Trustee Knoll Investment Policy Statement: There were no recommended changes to the Investment Policy at this time. COMMUNICATIONS AND REPORTS: Status of Affidavits of Eligibility: The Board was informed that there are five outstanding 2016 affidavits. The Board directed L&A to send second requests to the outstanding pensioners. An update will be provided at the next regular meeting. Statements of Economic Interest: The Board noted that the List of Filers must be submitted to the County by the Village by February 1, 2017. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2017. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM THE PENSION FUND: Applications for Membership — Joey V. deLutio and Nicholas Kelm: The Board acknowledged receipt of two Applications for Membership to the Pension Fund for Joey V. deLutio and Nicholas Kelm. The date of hire for Joey V. deLutio is 12/05/2016 and the date of hire for Nicholas Kelm is 01/03/2017, both with Tier 2 status. A motion was made by Trustee Lambel and seconded by Trustee Erb to accept the new members into the Mount Prospect Firefighters' Pension fund. Motion carried unanimously by voice vote. APPLICATIONS FOR RETIREMENT OR DISABILITY BENEFITS: Application for Retirement Benefits — Brendan M. Keady: The Board reviewed the regular retirement benefit calculation for Brendan M. Keady as follows: entry date of 08/18/1986; retirement date of 11/28/2016; effective date of pension of 11/29/2016; 57 years of age; 30 years 3 months of creditable service; applicable salary of $101,696.76; applicable percentage of 75.00%; amount of annual pension of $76,272.57; and originally granted monthly pension of $6,356.05. A motion was made by Trustee Lambe] and seconded by Trustee Baas to approve the regular retirement benefit for Brendan M. Keady as calculated by the Village. Motion carried unanimously by voice vote. Application for Retirement Benefits — Brian R. Halverson: The Board reviewed the regular retirement benefit calculation for Brian R. Halverson as follows: entry date of 10/06/1989; retirement date of 12/22/2016; effective date of pension of 12/23/2016; 50 years of age; 27 years 2 months of creditable service; applicable salary of $101,696.76; applicable percentage of 67.92%; amount of annual pension of $69,069.08; and originally granted monthly pension of $5,755.76. A motion was made by Trustee Lambe] and seconded by Trustee Baas to approve the regular retirement benefit for Brian R. Halverson as calculated by the Village. Motion carried unanimously by voice vote. Mount Prospect Firefighters' Pension Fund Meeting Minutes — January 24, 2017 Page 3 of 3 OLD BUSINESS: Status of Reciprocity — Luke A. Rypkema: The Board discussed the status of Luke Rypkema's reciprocity. Mr. Collins will contact Byron Fire Protection District with questions the Board has regarding Mr. Rypkema's reciprocity. An update will be provided at the next scheduled meeting. Approval of Final Actuarial Report: Trustee Erb will provide the Board with the Tax Levy amount that he is recommending to the Village at a later time. An update will be provided at the next scheduled meeting. Review and Approval of Tax Levy: Trustee Erb will provide the Board with the Tax Levy amount that he is recommending to the Village at a later time. An update will be provided at the next scheduled meeting. NEW BUSINESS: Discussion on RFP for Actuary Services: The Board discussed actuarial services and directed Trustee Erb to request proposals from various actuaries. Further discussion will be held at the next scheduled meeting. Approval of Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board reviewed the 2017 Cost of Living Adjustments (see attached) as calculated by L&A. A motion was made by Trustee Lambel and seconded by Trustee Vena to approve the 2017 Cost of Living Adjustments as required by statute and calculated by L&A. Motion carried unanimously by voice vote. Review Trustee Term Expirations and Election Procedures: The Board noted that the active member term currently held by Trustee Knoll is expiring in April 2017. Trustee Knoll wishes to remain on the Board if nominated. Lauterbach & Amen will conduct an election on behalf of the Pension Fund for the active member Trustee position. TRUSTEE TRAINING UPDATE: The Board was presented with the Trustee Training Summary and discussed upcoming training opportunities. The Board was reminded to send all training certificates to L&A for recordkeeping. ATTORNEY REPORT: Cary Collins of Collins & Radja discussed with the Board that a section pertaining to record retention and Trustee travel should be added to the Board's By -Laws. Mr. Collins apprised the Board that his office has scheduled annual medical examinations for Jim East, Torrie Takoy and Eric Mertes. Board action and updates will be provided at the next scheduled meeting. CLOSED SESSION: There were no items to discuss in closed session. ADJOURNMENT: A motion was made by Trustee Vena and seconded by Trustee Erb to adjourn the meeting at 9:47 a.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for Tuesday, April 25, 2017 at 8:30 a.m. at 112 East Northwest Highway, Mount Prospect, Illinois. Jpll� l rtil l„ B arcl Secretary Date Approved by Board Minutes by Stacie Woodill, Pension Services Administrator, Lauterbach & Amen, LLP