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HomeMy WebLinkAbout07/24/2018 FFPB MinutesMOUNT PROSPECT FIREFIGHTERS' PENSION FUND r,„ja ilojmaxvl 112 E. Northwest Highway t Mount Prospect, Illinois 60056-3232 IMM X Brian Lannbel Fire Chief , MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES JULY 24, 2018 A regular meeting of the Board of Trustees of the Mount Prospect Firefighters' Pension Fund was held on Tuesday, July 24, 2018 at 8:30 am 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 8:02 am. ROLL CALL: PRESENT: Trustees Brian Lambel, Joe Knoll, Sam Baas, and Joe Vena ABSENT: Trustee Dave Erb ALSO PRESENT: Mary Nye and Howard Pohl, AndCo Consulting; Cary Collins, Collins & Radja; Barbara Utterback, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: April 24, 2018 Regular Meeting Minutes: The Board reviewed the minutes from the April 24, 2018 regular meeting. A motion was made by Trustee Vena and seconded by Trustee Lambel to approve the April 24, 2018 regular meeting minutes as written. Motion carried unanimously by voice vote. TREASURER'S REPORT: Quarterly Financial Report: The Board reviewed the Quarterly Financial Report that was prepared by Treasurer Erb for the quarter ending June 30, 2018. The total market value of the fund as of 6/30/18 is $66,244,713 with an unrealized loss of ($445,082). The report also included an income statement, a summary of all investment activity, a Summary of Disbursements, and a detailed schedule of investment holdings for the quarter. The Board questioned a line item on the Disbursements Summary regarding a payment to Thomas Hoskinson in the amount of $190. Clarification will be requested from Treasurer Erb. A motion was made by Trustee Baas and seconded by Trustee Vena to approve the financial report prepared by Treasurer Erb, with the exception of the payment issued to Thomas Hoskinson, pending additional information and clarification. An update will be provided at the next meeting. Motion carried by roll call vote. AYES: Trustees Baas, Lambel, Knoll and Vena NAYS: None ABSENT: Trustee Erb Presentation and Approval of Bills: The Board reviewed the Schedule of Disbursements Report prepared by Treasurer Erb for the period April 1, 2018 through June 30, 2018, for a total Mount Prospect Firefighters' Pension Fund Meeting Minutes — July 24, 2018 Page 2 of 4 disbursement of $48,403.26. A motion was made by Trustee Knoll and seconded by Trustee Lambel to approve the Schedule of Disbursements Report in the amount of $48,403.26 with the exception of the $190 payment to Thomas Hoskinson, pending further information and clarification from Treasurer Erb. Motion carried by roll call vote. AYES: Trustees Baas, Lambel, Knoll and Vena NAYS: None ABSENT: Trustee Erb Additional Bills: There were no additional bills presented at this time. INVESTMENT REPORT — ANDCO CONSULTING: Quarterly 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 Quarterly Investment Report for the period ending June 30, 2018. As of June 30, 2018, the market value of the portfolio is $65,988,884 and the quarter return of the portfolio is 1.0% with a return on investment of $651,274 for the quarter. The portfolio composition is 41.4% in domestic equities; 9.9% in international equities; 34.6% in total fixed income; 8.9% in real estate; 0.1% in cash; and 5.1 % in total emerging markets. Current and comparative fund performance were reviewed, along with investment fees. All questions were answered by Mary Nye and Howard Pohl. Upcoming cash needs for benefit payments were discussed. Trustee Erb had informed Mary Nye that $1 million would need to be liquidated from the equity portfolio and moved to cash. Ms. Nye proposed to rebalance the equity portfolio as follows: Move $250,000 from the Vanguard Morgan Growth fund to cash; move $250,000 from the AF Growth fund to cash; and move $500,000 from the T Rowe Price fund to cash. A motion was made by Trustee Knoll and seconded by Trustee Lambel to accept the proposed rebalancing as provided by AndCo. Motion carried by roll call vote. AYES: Trustees Baas, Lambel, Knoll and Vena NAYS: None ABSENT: Trustee Erb A motion was made by Trustee Baas and seconded by Trustee Knoll to accept the Quarterly Investment Report as presented. Motion carried unanimously by voice vote. Review/Update Investment Policy Statement: There were no recommended changes to the Investment Policy at this time. COMMUNICATIONS AND REPORTS: Active Member File Maintenance: The Board noted that L&A has prepared Active Member File Maintenance letters for distribution to all active members requesting any additional pension file documents, as required by the IDOI. An update will be provided at the next meeting. A motion was made by Trustee Knoll and seconded by Trustee Lambel to accept the report. Motion carried by voice vote. APPLICATIONS FOR MEMBERSHIPIWITHDRAWALS FROM THE PENSION FUND: Application for Membership — Timothy Cassidy: The Board reviewed the Application for Membership submitted by Timothy Cassidy with a date of hire of April 30, 2018, as a Tier I participant. Mount Prospect Firefighters' Pension Fund Meeting Minutes — July 24, 2018 Page 3 of 4 Application for Membership — Kenneth Winger: The Board reviewed the Application for Membership submitted by Kenneth Winger with a date of hire of 7/2/18, as a Tier II participant. A motion was made by Trustee Lambel and seconded by Trustee Vena to accept both Timothy Cassidy and Ken Winger into the Mount Prospect Firefighters' Pension Fund. Motion carried unanimously by voice vote Withdrawal from Fund: Trustee Lambel stated that Firefighter Nick Kelm resigned and is no longer an active participant. His last day worked was July 12, 2018. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Review/Approve Regular Retirement Benefits — James Ingebrigtsen: James Ingebrigtsen retires with 20 years 7 months of creditable service with an effective date of pension of 6/2/18. His retirement benefit was calculated at 51.46% of his pensionable salary of $105,533 resulting in a monthly pension of $4,525.46 and an annual benefit of $54,305.49. A motion was made by Trustee Knoll and seconded by Trustee Lambrel to approve the retirement benefit for James Ingebrigtsen as prepared by Trustee Erb as presented, pending receipt of the required signed pension form: Application for Retirement Benefits. Motion carried by roll call vote. AYES: Trustees Baas, Lambel, Knoll and Vena NAYS: None ABSENT: Trustee Erb OLD BUSINESS: Deceased Pensioner — Thomas Reynolds/Approval of Surviving Spouse Benefits Susan Reynolds: The Board noted that Thomas Reynolds passed away on March 26, 2018, and he has a qualifying surviving spouse, Susan Reynolds. A motion was made by Trustee Knoll and seconded by Trustee Lambrel to approve the surviving spouse annual benefit of $63,824.28 to Susan Reynolds, as calculated by the Village of Mount Prospect. There will be no further increases to her benefit, as required by statute. Motion carried by roll call vote. AYES: Trustees Baas, Lambel, Knoll and Vena NAYS: None ABSENT: Trustee Erb Review/Possible Action - Amended Board Rules and Regulations: The Board reviewed the proposed amendment to the Board Rules and Regulations prepared by Collins & Radja. A motion was made by Trustee Lambrel and seconded by Trustee Knoll to approve the amendment to the Rules and Regulations, adding the requirement to submit an Application for Retirement Benefits form prior to retirement. Motion carried by roll call vote. AYES: Trustees Baas, Lambel, Knoll and Vena NAYS: None ABSENT: Trustee Erb Discussion/Possible Action — Chicago Clearing Company: The Board noted that Chicago Clearing is a firm that monitors class action lawsuits and distributes any funds recovered from settled claims to the Pension Fund, less a fee. Further discussion and possible action was tabled to the next meeting. Mount Prospect Firefighters' Pension Fund Meeting Minutes — July 24, 2018 Page 4 of 4 Appointed Member Term Expiration: The Board was provided with a memo from the Mayor of Mount Prospect appointing Chief Brian Lambel to the Pension Fund for a three-year term expiring April 2021. NEW BUSINESS: Review/Approve — Actuarial Valuation: The Board stated that the actuarial report has not yet been received. This item was tabled until the next meeting. IDOIAnnual Statement: The Board was presented with the updated interrogatories required by the IDOI effective June 1, 2018, which will be required for the 12/31/18 filing. The final report for the 12/31/17 year was filed prior to the June 30, 2018 deadline. TRUSTEE TRAINING UPDATE: The Board reviewed the Trustee Training Summary and was reminded to send all training certificates to L&A for recordkeeping. Trustee training opportunities with IPPAC, IPPFA and IPFA were presented to the Trustees. ATTORNEY'S REPORT: Disability Status update Tony Nlinarcik: Attorney Collins stated that the disability hearing will be held today. An update will be provided at the next meeting. Attorney Collins stated that his office is in the process of finalizing the appointments with the three physicians regarding the new disability application received from Firefighter Scott Skindingsrude. An update will be provided at the next meeting. Annual Independent Medical Examination — Eric Mertes and Torrie Takoy: Attorney Collins reported that these annual examinations will be scheduled in the near future. An update will be provided at the next meeting. The Board discussed previous closed session meeting minutes and determined that there are no closed session meeting minutes to release at this time. CLOSED SESSION, IF NEEDED: There were no items to discuss in closed session. A motion was made by Trustee Lambel and seconded by Trustee Vena to accept the attorney's report. Motion carried by voice vote. ADJOURNMENT: A motion was made by Trustee Vena and seconded by Trustee Lambel to adjourn the meeting at 9:23 am. Motion carried unanimously by voice vote. The next regular meeting is scheduled for October 23"d, 2018 at 8:30 am. at 112 East Northwest Highway, Mount Prospect, Illinois. Secretary Date A pB 61_s�P I'll oil, I ) aa ­11111d y poard Iroved by Minutes prepared by Barb Utterback, Pension Services Administrator, Lauterbach & Amen, LLP