HomeMy WebLinkAbout01/28/2020 FFPB MinutesI
MOUNT PROSPECT FIREFIGHTERS
A ON FUND
"Mkno"I's po"'m, co 1 112 E. Northwest Highway
--- -------------- AR
PENSI
Mount Prospect, Illinois 60056-3232
Brian Larnbel
Fire Chief IP
MINUTES OF A REGULAR MEETING OF THE
MOUNT PROSPECT FIREFIGHTERS" PENSION FUND
BOARD OF TRUSTEES
JANUARY 28, 2020
A regular meeting of the Mount Prospect Firefighters' Pension Fund Board of Trustees was held
on Tuesday, January 28, 2020 at 8:30 a.m. at the Mount Prospect Fire Station located at 112 East
Northwest Highway, Mount Prospect, Illinois 60056, pursuant to notice.
CALL TO ORDER: Trustee Lambel called the meeting to order at 8:32 a.m.
ROLL CALL:
PRESENT: Trustees Brian Lambel, Joe Knoll, Sam Baas, Joe Vena and Amit Thakkar
(arrived at 8:46 a.m.
ABSENT: None
ALSO PRESENT: Attorneys David Mejia and Cary Collins (arrived at 8:47 a.m. , Collins &
Radja; Mary Nye, AndCo Consulting; Allison Barrett and Alex Michael,
Lauterbach & Amen, LLP (L&A); Deputy Director of Finance Lynn Jarog,
Village of Mount Prospect
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MEETING MINUTES: July 23, 2019 Regular Meeting: The Board reviewed
the July 23, 2019 regular meeting minutes. A motion was made by Trustee Knoll and seconded by
Trustee Baas to approve the July 23, 2019 regular meeting minutes as written. Motion carried
unanimously by voice vote.
Semi -Annual Review of Closed Session Meeting Minutes: The Board reviewed the closed session
meeting minutes from March 18, 2014 and will not release them at this time due to pending
matters.
INVESTMENT REPORT — ANDCO CONSULTING: Investment Performance Report: Mary
Nye presented the Investment Performance Report and discussed the long-term market value of
the Fund, along with the risk -reward analysis and current and projected market conditions. Ms.
Nye presented the Investment Performance Report for the period ending December 31, 2019. As
of December 31, 2019, the market value of the portfolio is $70,607,584 and the return on
investment is $3,59,$,14+6 for the quarter. The portfolio composition is 39.6% in domestic equities,
10.2% in international equities, 35.3% in domestic fixed income, 9.1% in real estate, 5.2% in
emerging equity and 0.5% 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.
Mount Prospect Firefighters' Pension Fund
Meeting Minutes — January 28, 2020
Page 2 of 5
All questions were answered by Ms. Nye. A motion was made by Trustee Thakkar and seconded
by Trustee Lambel to accept the Investment Performance Report as presented. Motion carried
unanimously by voice vote.
Potential Sales or Purchases of Securities: Ms. Jarog noted that the Village will need $ 1,000,000
in cash to cover pension expenses. Ms. Nye recommended transferring $500,000 from the
Vanguard Windsor 11 account and $500,000 from the Vanguard US growth account in order to
cover pension expenses. A motion was made by Trustee Lamble and seconded by Trustee Vena to
accept Ms. Nye's recommendations. Motion carried by roll call vote.
AYES: Trustees Lambel, Knoll,, Baas, Vena and Thakkar
NAYS: None
ABSENT: None
Review/Update Investment .Policy Statement: The Board discussed the Investment Policy and no
changes are required at this time.
COMMUNICATIONS & REPORTS: Statements of*Economic Interest: The Board noted that
the List of Filers must be submitted to the County by The Village by February 1, 2020. Statements
of Economic Interest will be sent to all registered filers who will need to respond by the deadline
of May 1, 2020.
Affidavits of Continued Eligibility: The Board noted that L mailed Affidavits of Continued
Eligibility to all pensioners with the December payroll cycle and a due date of January 10, 2020.
To date, seven affidavits remain outstanding. L&A will mail second request affidavits to the
outstanding pensioners and status updates will be provided to the Board as they become available.
2020 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for
reimbursement decreased to $0.575 per mile effective January 1, 2020.
APPLICATIONS FOR MEMBERSHIPIWITHDRAWALS FROM THE PENSION FUND:
The Board reviewed the Applications for Membership submitted by Bryan Blowers and Mitchell
Winkelmann. A motion was made by Trustee Thakkar and seconded by Trustee Knoll to accept
Bryan Blowers and Mitchell Winkelmann into the Mount Prospect Firefighters' Pension Fund
effective August 19, 2019, as Tier 11 participants. Motoin carried unanimously by voice vote.
APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Deceased Pensioner —
Ray YounglApj)roval of Surviving Spouse Benefits — Siv Young: The Board noted that Ray Young
passed away on March 23, 2019. The Board reviewed the surviving spouse benefit calculation for
Siv Young with an effective date of March 24, 2019 for amonthly benefit of $4,435.10 with no
additional increases. A motion was made by Trustee Lambel and seconded by Trustee Baas to
approve the surviving spouse benefit of Siv Young as calculated by the Village of Mount Prospect.
Motion carried by roll call vote.
Mount Prospect Firefighters' Pension Fund
Meeting Minutes — January 28, 2020
Page 3 of 5
AYES: Trustees Lambel, Knoll, Baas, Vena and Thakkar
NAYS: None
ABSENT: None
Application for Retirement — Pat Clarke: The Board reviewed the regular retirement bene -fit
calculation for Pat Clarke prepared by the Village of Mount Prospect. Firefighter Clarke had an
entry date of June 12, 1989, retirement date of June 20, 2019, effective date of pension of June 21,
2019, 51 years of age at date of retirement, 30 years of creditable service, applicable salary of
$108,372.60, applicable pension percentage of 75%, amount of originally granted monthly pension
of $6,773.29 and amount of originally granted annual pension of $81,279.45. A motion was made
by Trustee Thakkar and seconded by Trustee Vena to approve Pat Clarke's regular retirement
benefit calculated by the Village of Mount Prospect. Motion carried by roll call vote.
AYES: Trustees Lamb 1, Knoll, Baas, Vena and Thakkar
NAYS: None
ABSENT: None
The Board reviewed the application for retirement submitted by David Miller. A motion was
made by Trustee Thakkar and seconded by Trustee Knoll to accept Mr. Miller's application
subject to clarification of his date of retirement and final salary calculations. Motion carried
unanimously by voice vote.
OLD BUSINESS: ReviewlAdopt — Municipal Compliance Report: The Board reviewed the
Municipal Compliance Report prepared by L&A. A motion was made by Trustee Thakkar and
seconded by Trustee Vena to adopt the MCR as prepared and to authorize signatures by the Board
President and Secretary. Motion carried unanimously by voice vote.
Review/Approve — Actuarial Valuation & Tax Levy Request: The Board discussed the finalized
Actuarial Valuation prepared by Nyhart. Based on data and assumptions, the recommended
municipal contribution is $3,488,379 and the statutory minimum contribution amount is
$2,794,804. A motion was made by Trustee Thakkar and seconded by Trustee Vena to accept the
Actuarial Valuation as prepared and to request a tax levy in the amount of $3,488,379 from the
Village of Mount Prospect based on the recommended stated in the Actuarial Valuation prepared
by Nyhart. Motion carried by roll call vote.
AYES: Trustees Lambel, Knoll, Baas, Vena and Thakkar
NAYS: None
ABSENT: None
NEW BUSINESS: Discussion/.Possible Action — L&A Engagement Letter: The Board discussed
this with the agenda item below.
DiscussionlPossible Action — Engagement of L&A for Accounting and Benefit Services.- Mrs.
Barrett presented an overview of the Accounting and Benefits Administration Services offered by
L&A. A motion was made by Trustee Thakkar and seconded by Trustee Knoll to engage L&A for
PSA, Accounting and Benefits Administration in the annual amounts as follows: $39,845 for the
year ended December 31, 2020; $41,945 for the year ended December 31, 2021; and $42,990 for
the year ended December 31, 2022. Motion carried by roll call vote.
Mount Prospect Firefighters' Pension Fund
Meeting Minutes — January 28, 2020
Page 4 of 5
AYES, Trustees Lambel, Knoll, Baas, Vena and Thakkar
NAYS: None
ABSENT: None
Approve Annual Cost of Living Adjustments (COLAs) for Pensioners.- The Board reviewed the
2020 Cost of Living Adjustments (see attached) calculated by the Village. A motion was made by
Trustee Thakkar and seconded by Trustee Knoll to approve the 2020 Cost of Living Adjustments
as required by statue and calculated by the Village. Motion carried by roll call vote.
AYES: Trustees Lambel, Knoll, Baas, Vena and Thakkar
NAYS.- None
ABSENT: None
Review Trustee Term Expirations and Election Procedures: The Board noted that the active
member term currently held by Trustee Knoll is expiring in April 2020. L&A will conduct an
election on behalf of the Pension Fund for one of the two active member Trustee positions. The
Board also noted that the appointed Trustee position held by Trustee Thakkar is expiring in April
2020 and he desires to remain on the Board. The Board will contact the Village and seek
reappointment of Trustee Thakkar to the Board.
IDOI Annual Statement: The Board noted that the ID01 Annual Statement is in process and the
final report will be sent to the Board for review upon completion.
TRUSTEE TRAINING UPDATE: The Board reviewed the Trustee Training Summary and
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: There were no
trustee training registrations or reimbursable expenses presented for approval.
TREASURER'S REPORT: Quarterly Financial Report: The Board reviewed the Quarterly
Financial Report for the three-month period ending December 31, 2019 prepared by Trustee
Thakkar. The total market value of the fund as of December 31, 2019 is $71,151,977 with an
unrealized gain of $758,421. The Board also reviewed the income statement, a summary of all
investment activity, a summary of disbursements and a detailed schedule of investment holdings
for the quarter. A motion was made by Trustee Lambel and seconded by Trustee Vena to accept
the Quarterly Financial Report as presented. Motion carried unanimously by voice vote.
Presentation and Approval ofBills: The Board reviewed the Vendor Disbursements Report for
the period October 1, 2019 through December 31, 2019 for total disbursements of $31,426.94. A
motion was made by Trustee Knoll and seconded by Trustee Baas to approve the disbursements
on the Vendor Disbursements Report in the amount of $31,426.94. Motion carried by roll call
vote.
AYES: Trustees Lambel, Knoll, Baas, Vena and Thakkar
NAYS: None
ABSENT: None
Mount Prospect Firefighters' Pension Fund
Meeting Minutes — January 28, 2020
Page 5 of 5
Additional Bills, if any: There were no additional bills presented for approval.
Trustee Thakkar left the meeting at 10:55 a.m.
ATTORNEY'S REPORT — COLLINS & RADJA: Legal Updates: Attorney Collins provide
legislative updates pertaining to Article 4 Pension Funds; including recent court cases an
decisions, as well as general pension matters. I
Annual Independent Medical Examinations — Eric Mertes and Torrie Takoy: The Board noted that
Eric Mertes and Torrie Takoy attended their independent medical examinations and it was
determined that they both remain disabled at this time.
The Board noted that Jim East attended his independent medical examination and it was
determined that he remains disabled at this time.
'I DI D1 11,51111i,1111111
ADJOURNMENT: A motion was made by Trustee Knoll and seconded by Trustee Vena to
adjourn the meeting at 10:00 a.m. Motion carried unanimously by voice vote.
The next regular meeting is scheduled for April 28, 2020 at 8:30 a.m.
Board President or Secretary
Minutes approved by the Board of Trustees on
Minutes prepared by Alex Michael, Pension Services Administrator, Lauterbach & Amen, LLP