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HomeMy WebLinkAbout01/27/2015 FPFB Minutes MINUTES OF REGULAR MEETING OF THE BOARD OF TRUSTEES PENSION FUND TUESDAY, JANUARY 27, 2015 A regular meeting of the Board of Trustees of the Pension Fund was held Tuesday, January 27, 2015 at 8:30 am on at 112 East Northwest Highway, Mount Prospect, Illinois, pursuant to notice. CALL TO ORDER: The meeting was called to order by Trustee Malcolm at 8:41am. PRESENT: Trustees Sam Baas, Jim East, Dave Erb and John Malcolm ABSENT: Trustee Joe Knoll ALSO PRESENT: Cary Collins, Collins & Radja; Mary Nye and Howard Pohl, The Bogdahn Group; Sara Williams, Lauterbach & Amen, LLP PUBLIC COMMENT: None APPROVAL OF MEETING MINUTES: The minutes from the regular meeting of October 21, 2014 were reviewed. Representatives from the Bogdhan Group requested an amendment to the minutes pertaining to the Investment Report to reflect that the representatives were not present because they were unaware of the meeting date. A motion was made by Trustee Erb and seconded by Trustee East to approve the minutes, as amended. Motion carried unanimously by voice vote. Semi-Annual Review of Closed Session Minutes: There are no minutes for review at this time. T Quarterly Financial Report: The Board reviewed the Financial Statement prepared by Treasurer Erb for the quarter ending December 31, 2014. The total market value of the fund as of 12/31/14 is $56,539,394. The unrealized gain is $385,945 for the quarter. A list of all vendor disbursements for the quarter was included in the report, totaling $38,291.55. The report also included a summary of all investment activity for the quarter, and a detailed schedule of investment holdings as of 12/31/14. All questions were answered by Trustee Erb. A motion was made by Trustee East and seconded by Trustee Malcolm to accept the financial report for the period ending 12/31/14, as presented by Trustee Erb. Motion carried by unanimous voice vote. Trustee Sam Baas and Cary Collins arrived to the meeting at 8:48am. A motion was made by Trustee Baas and seconded by Trustee East to approve the vendor disbursements for the third quarter in the amount of $38,291.55. Motion carried by roll call vote AYES: Trustees Baas, East, Erb and Malcolm NAYS: None ABSENT: Trustee Knoll INVESTMENT REPORT: Mary Nye and Howard Pohl from the Boghdan Group presented the Quarterly Investment Report. Mary Nye updated the Board as to some internal changes with The Boghdan Group. Howard Pohl discussed the long term market value of the fund, along with the risk- reward analysis, current and projected market conditions. Mary Nye presented the investment report for the period ending December 31, 2014. As of 12/31/2014, the market value of the portfolio is $56,411,757. Investment return is 3.08% for the quarter. The portfolio composition is 54.9% in domestic equities, 6.9% in international equities, 37.9% in domestic fixed income, and 0.3% in cash and Pension Fund Minutes of Meeting January 27, 2015 Page 2 equivalent. Current asset allocations within the equity and fixed income funds were reviewed, as well as individual fund performance, and investment fees. Ms. Nye recommends to the Board the transfer of $2,500,000 from the Vanguard Morgan Growth fund into the Principal Real Estate fund when the call comes to realign assets and get into the asset allocation range. A motion was made by Trustee East and seconded by Trustee Baas to direct Trustee Erb to transfer $2,500,000 from the Vanguard Morgan Growth fund into the Principal Real Estate fund when the call comes during the current quarter. Motion carried by roll call vote. All questions were answered by the representatives from The Bogdahn Group. A motion was made by Trustee East and seconded by Trustee Erb to accept the investment report as presented. Motion carried unanimously by voice vote. COMMUNICATIONS AND REPORTS: Affidavits of Continuing Eligibility: Sara Williams with Lauterbach & Amen reported to the Board that six affidavits remain outstanding. The Board directed L&A to send second request letters to the Pensioners who had not responded. An update of the status of responses will be provided at the next regular meeting. NEW HIRES/APPLICATIONS TO THE PENSION FUND: Kyle Anders New Hire: The Board reviewed the application for membership in the Pension Fund for Kyle Anders. Mr. Anders was hired on January 5, 2015 as a tier two participant with no prior service. A motion was made by Trustee Baas and seconded by Trustee East to accept the application of Kyle Anders, with a hire date of 01/05/2015, as a tier two participant with no prior creditable service. Motion carried unanimously by voice vote RETIREMENT AND DISABILITY APPLICATIONS: Jeff Ricker Mr. Cary Collins presented the Board with the Decision and Order granting Mr. Ricker a line of duty disability pension. A motion was made by Trustee Erb and seconded by Trustee East to accept and execute the Decision and Order as prepared by Mr. Collins and authorize signature by the Board. Motion carried by roll call vote. AYES: Trustees Baas, East, Erb and Malcolm NAYS: None ABSENT: Trustee Knoll Tom Willming An appeal is pending in the case of Mr. Willming. At the present time, the Board has found that Mr. Willming is not eligible for a benefit. An update will be provided at the next regular meeting. Pat Flavin Retirement: The Board reviewed the retirement application for Pat Flavin. Mr. Flavin retired effective November 29, 2014 having 25 years and 2 months of creditable service, with a monthly benefit of $5,078.81. A motion was made by Trustee Baas and seconded by Trustee East to award Pat Flavin a regular retirement benefit in the amount of $ 60,945.69 annually, with an effective retirement date of November 29, 2014 having 25 years 2 months of creditable service. Motion carried by roll call vote. AYES: Trustees Baas, East, Erb and Malcolm NAYS: None ABSENT: Trustee Knoll Pension Fund Minutes of Meeting January 27, 2015 Page 3 Mike Werner Retirement: The Board reviewed the retirement application for Mike Werner. Mr. Werner retired effective November 29, 2014 having 28 years and 3 months of creditable service, with a monthly benefit of $6,443.24. A motion was made by Trustee East and seconded by Trustee Baas to award Mike Werner a regular retirement benefit in the amount of $77,318.84 annually, with an effective date of retirement of November 29, 2014, having 28 years and 3 months of creditable service. Motion carried by roll call vote. AYES: Trustees Baas, East, Erb and Malcolm NAYS: None ABSENT: Trustee Knoll Trustee Erb notified the Board that, after filing the Annual Report with the Department of Insurance for fiscal year 2013, discrepancies were found resulting in overpayment and underpayment of pension benefits. Trustee Erb noted that notification letters have been sent to affected pensioners, and the benefit amounts have been adjusted moving forward. Board Attorney, Cary Collins, recommends that the Board do further research regarding the discrepancies prior to repaying any underpayment amounts. An update will be provided at the next regular meeting. OLD BUSINESS: Trustee Training Updates: Sara Williams reminded all Trustees to provide any copies of Trustee Training certificates to Lauterbach & Amen for record keeping. Upcoming Trustee Training opportunities were discussed. NEW BUSINESS: Approve 2015 Cost of Living Adjustments for Pensioners: The Board reviewed and discussed the Annual Benefit Increases effective January 1, 2015. A motion was made by Trustee East and seconded by Trustee Baas to approve the 2015 Cost of Living Adjustments for Pensioners as prepared by Treasurer Dave Erb, copy attached. Motion carried by roll call vote. AYES: Trustees Baas, East, Erb and Malcolm NAYS: None ABSENT: Trustee Knoll Trustee Term Expirations: The Board reviewed the Trustee term expirations. The Trustee term for Trustee Baas (Retired) will expire in April 2015. Trustees Baas is interested in retaining his position, if nominated. Lauterbach & Amen will conduct the Trustee election on behalf of the Pension Fund and an update of election results will be provided at the next regular meeting. Review Proposals for Legal Counsel: The Board will be reaching out to legal firms for service proposals. Review of proposals will be conducted at a later time. ATTORNEY REPORT: Mr. Cary Collins of Collins & Radja reviewed recent court cases ruling and legislation pertaining to pension funds. Any activity will be closely monitored by Mr. Collins and reported to the Board at the next regular meeting. At the July 22, 2014 regular Board meeting, Mr. Collins was asked to review the investment contract as presented by The Bogdahn Group. After review of the investment contract, Mr. Collins found the contract acceptable for signing. A motion was made by Trustee Erb and seconded by Trustee East to execute the investment contract as approved at the July 22, 2014 regular Board meeting. Motion carried by roll call vote. Pension Fund Minutes of Meeting January 27, 2015 Page 4 AYES: Trustees Baas, East, Erb and Malcolm NAYS: None ABSENT: Trustee Knoll CLOSED SESSION: There was no Closed Session needed. ADJOURNMENT: A motion was made by Trustee Erb and seconded by Trustee East to adjourn the meeting at 9:46am. Motion carried unanimously by voice vote. The next regular meeting is scheduled for TUESDAY, APRIL 28, 2015 at 8:30am at 112 East Northwest Highway, Mount Prospect, Illinois. _________________________________________ Date Approved by Board _____________. Joseph Knoll, Board Secretary Minutes prepared by Sara Williams, Pension Services Administrator, Lauterbach & Amen, LLP