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Home My WebLink About04/25/2017 FFPB MinutesMOUNT PROSPECT FIREFIGHTERS" PENSION FUND 112 E. Northwest Highway "a fir Mount Prospect, Illinois 60056-3232 VIM Brian Lambel VV Fire ChiefIa" MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES TUESDAY, APRIL 25, 2017 A regular meeting of the Board of Trustees of the Mount Prospect Firefighters' Pension Fund was held on Tuesday, April 25, 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 8:33 a.m. ROLL CALL: PRESENT: Trustees Brian Lambel, Joe Knoll, Dave Erb, and Joe Vena ABSENT: Trustee Sam Baas ALSO PRESENT: Mary Nye and Howard Pohl, AndCo Consulting; Cary Collins, Collins & Raja; Stacie Woodill, Lauterbach & Amen, LLP (1,&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: ,January 24,2017 Regular Meeting Minutes: The minutes of the January 24, 2017 regular meeting were reviewed by the Board. A notion was made by Trustee Erb and seconded by Trustee Knoll to approve the January 24, 2017 regular meeting minutes as written. Motion carried unanimously by voice vote. TREASURER'S REPORT: Quarterly Financial Report: The Board reviewed the Financial Statement prepared by Treasurer Erb for the quarter ending March 31, 2017. The total market value of the fund as of 03/31/2017 is $61,481,703 with an unrealized loss of $14,186. 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 Knoll and seconded by Trustee Vena to accept the financial report for the period ending 03/31/2017, as prepared by Trustee Erb. Motion carried unanimously by voice vote.. Presentation and 4 proval of Bills: The Board was presented with the Vendor Disbursements Report for the period January 1, 2017 through March 31, 2017, for a total disbursement of $34,992.21. A motion was made by Trustee Lambel and seconded by Trustee Vena to approve the Vendor Disbursements Report as presented. Motion carried by roll call vote. AYES: Trustees Lambel, Knoll, Erb and Vena NAYS: None ABSENT: Trustee Baas Mount Prospect Firefighters' Pension Fund Meeting Minutes — April 25, 2017 Page 2 of 4 Additional Bills, if any: The Board noted that the Illinois Department of Insurance Compliance Fee invoice will be issued and payment is due by June 30th. A motion was made by Trustee Lambel and seconded by Trustee Erb to approve payment of the IDOI Compliance Fee in an amount not to exceed $8,000.00, upon receipt of the invoice and the Lauterbach & Amen Invoice in the amount of $1,515.00 for professional services rendered for March 2017. Motion carried by roll call vote. AYES: Trustees Lambel, Knoll, Erb and Vena NAYS: None ABSENT: Trustee Baas Cary Collins arrived at the meeting at 8:45 a.m. INVESTMENT REPORT: Mary Nye and Howard Pohl from AndCo Consulting presented the Quarterly Investment Report. Howard Pohl discussed the current and projected market conditions. Mary Nye presented the Investment Report for the period ending March 31, 2017. As of 03/31/2017, the market value of the portfolio is $60,362,545 and the return on investment is $2,922,548 for the quarter. The portfolio composition is 42.3% in domestic equities, 12.6% in international equities, 33.4% in domestic fixed income, 5.0% in real estate, 6.7% 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, comparative performance and investment fees. All questions were answered by Mary Nye and Howard Pohl. A motion was made by Trustee Knoll and seconded by Trustee Erb to accept the Quarterly Investment Report as presented. Motion carried unanimously by voice vote. Ms. Nye informed the Board that their Fixed Income portfolio is below the state statute required minimum of 35%. A motion was made by Trustee Knoll and seconded by Trustee Lambel to transfer $500,000 from American Funds EuroPacific Growth, $250,000 from Vanguard Windsor II and $250,000 from Vanguard Morgan Growth and transfer $500,000 into Galliard Fixed Income and $500,000 into Seagall Bryant Fixed income in order to meet the state statute's minimum fixed income percentage of 35%. Motion carried by roll call vote. AYES: Trustees Lambel, Knoll, Erb and Vena NAYS: None ABSENT: Trustee Baas Mr. Erb and Mr. Collins discussed the written agreement with AndCo Consulting and requested a new written agreement with AndCo Consulting to reflect a name change only from Boghdan Group to AndCo Consulting with an expiration date of June 30, 2019. The Board and AndCo discussed an increase in fee for AndCo Consulting. Mr. Pohl and Ms. Nye left the meeting so the Board could discuss this matter. A motion was made by Trustee Erb and seconded by Trustee Knoll to execute a new contract, pending agreement of legal review, to approve an increase in the annual fee to AndCo Consulting from $36,000 to $42,000, effective July 1, 2017 for the balance of the agreement, with no other changes to the terms and conditions. Motion carried by roll call vote. AYES: Trustees Lambel, Knoll, Erb and Vena NAYS: None ABSENT: Trustee Baas Review/Update Investment Policy Statement: There were no recommended changes to the Investment Policy at this time. COMMUNICATIONS AND REPORTS: Status of Affidavits of Eligibility: Lauterbach & Amen presented the Board with the completed 2017 Affidavits of Continued Eligibility for recordkeeping. Mount Prospect Firefighters' Pension Fund Meeting Minutes — April 25, 2017 Page 3 of 4 Statements of Economic Interest: The Board was reminded that the Statements of Economic Interest are due by May I" APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM THE PENSION FUND: Applications for Membership — Nicholas Gudmunson: The Board acknowledged receipt of an Application for Membership into the Pension Fund for Nicholas Gudmunson. The sworn in date and date of hire for Mr. Gudmunson is 04/03/2017 as a Tier 2 participant. A motion was made by Trustee Erb -and seconded by Trustee Lambel to accept Nicholas Gudmunson into the Mount Prospect Firefighters' Pension Fund effective 04/03/2017 which is his sworn in date and hire date, as a Tier 2 participant. Motion carried unanimously by voice vote. APPLICATIONS FOR RETIREMENT OR DISABILITY BENEFITS: Status of Annual Medical Examiniations —Jim East, Torrie Takoy and Eric Mertes: Mr. Collins apprised the Board that Torrie Takoy and Eric Mertes remain disabled, subject to future annual independent medical examinations until age 50. No action was necessary. Jim East: Mr. Collins will have an update on Mr. East at the next regularly scheduled meeting. Application for Duty Disability Benefits — Tony Minarcik: The Board reviewed the application for a Duty Disability Benefit for Tony Minarcik. A motion was made by Trustee Erb and seconded by Trustee Knoll to accept the Duty Disability Application for Tony Minarcik. An update will provided at the next regularly scheduled meeting. Motion carried unanimously by voice vote. OLD BUSINESS: Status of Reciprocity — Luke A. Rypkema: Mr. Collins updated the Board that Mr. Rypkema cannot buy back time from Wood Dale Fire Protection District due to having less than the required two years of creditable service. Trustee Erb will contact Mr. Rypkema to discuss reciprocity with Byron Fire Protection District Pension Fund. An update will be provided at the next scheduled meeting. Approval of Final Actuarial Report: An update will be provided at the next scheduled meeting Review and Approval of Tax Levy: An update will be provided at the next scheduled meeting. NEW BUSINESS: Discussion on RFP for Actuary Services: Trustee Erb explained the RFP and hiring process with a committee comprised of members from the Village of Mount Prospect, the Mount Prospect Police Pension Fund and Trustee Lambel from the Mount Prospect Firefighters' Pension Fund to interview and select an Actuary. A motion was made by Trustee Knoll and seconded by Trustee Vena to accept a joint engagement with the Village of Mount Prospect and Mount Prospect Police Pension Fund to engage Nyhart for Actuarial Services for the total annual cost to the Mount Prospect Firefighters' Pension Fund in the amount of $2,000.00. Motion carried unanimously by voice vote. Mr. Erb reviewed Nyhart's Actuarial Valuation Report and noted specific changes and additions throughout the report. Mr. Zurek from Nyhart will attend and present at the next regularly scheduled meeting. Discussion and Possible Amendment to Rules and Regulations: Mr. Collins presented the amended Rules and Regulations which included a new section regarding document retention and Trustee travel expenses. The Board will review the updated Rules and Regulations and will discuss at the next regularly scheduled meeting. Certify Board Election Results —Active Member Position: Lauterbach & Amen conducted an election for one of the Active Member positions on the Mount Prospect Firefighters' Pension Fund Board of Trustees. Mount Prospect Firefighters' Pension Fund Meeting Minutes — April 25, 2017 Page 4 of 4 Joe Knoll ran unopposed and was reelected by acclamation for a three-year term expiring April 30, 2020. A motion was made by Trustee Erb and seconded by Trustee Lambel to certify the Active Member election results. Motion was carried unanimously by voice vote. Board Officer Elections — President and Secretary: The Board discussed the Board Officer positions for election. A motion was made by Trustee Knoll and seconded by Trustee Erb to elect Trustee Lambel as Board President. Motion carried unanimously by voice vote. A motion was made by Trustee Lambel and seconded by Trustee Vena to elect Trustee Knoll as Board Secretary. Motion carried unanimously by voice vote. Trustee Lambel appointed Trustee Vena as the Open Meetings Act (OMA) and Freedom of Information Officer (FOIA) designee. Trustee Vena will complete the OMA and FOIA training online. Trustee Lambel appointed Trustee Erb as Security Administrator for the Mount Prospect Firefighters' Pension Board. A motion was made by Trustee Lambel and seconded by Trustee Knoll to ratify the OMA and FOIA position as well as the Security Administrator position. Motion carried unanimously by voice vote. TRUSTEE TRAINING UPDATE: Mr. Collins noted the IPPAC training opportunity in May 2017. The Board was reminded to send all training certificates to L&A for recordkeeping. ATTORNEY'S REPORT: Cary Collins of Collins & Radja discussed throughout the meeting all matters concerning the Pension Board. CLOSED SESSION: There were no items to discuss in closed session. ADJOURNMENT: A motion was made by Trustee Erb and seconded by Trustee Knoll to adjourn the meeting at 10:21 a.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for Tuesday, July 25, 2017 at 8:30 a.m. at 112 East Northwest Highway, Mount Prospect, Illinois. 7A;- j I Joqvpaired nd Sere Date Approved by Board Minuby Stacie Woodill, Pension Services Administrator, Lauterbach & Amen, LLP