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HomeMy WebLinkAbout2010 Elgin Fire Pension Fund Agendas & Minutes Elgin Fire Pension Fund Tuesday, Jan. 26, 2010 Agenda rik 08:30am 2nd floor Conference Room Roll: • Present: • Absent: • Council: • Guests: Minutes: • Dec. 23, 2009 • Election of President and Secretary • Meetings for 2010 (suggested the last Tuesday of each month) Treasurer' Report: • Marquette/Lauterbach and Amen report • Agreement with River Road • Northern Trust investment issue • FMA invoice 1/1/2010 through 3/31/2010 $12,201.76 Secretary report: • W\Retired FF Wilkening check issue. • Greg Benson retirement 73.333% 29 yrs. 4 months Due ???? • Collins' invoice for Jan., Feb., Mar. of 2010 $850.00 • Physical for Disabled FF J. Homuth $800.00 • Roger Fischer Chicago time 10/12/07 to 10/4/08 Unfinished business: • Fortin ??? • New Business: • Security Administrator requirement for IDOI • V. Beard retired position up April Misc: • f Adjournment: ELGIN FIRE PENSION FUND MINUTES January 27, 2010 Meeting was called to order at 8:3o am by V. Beard Roll Call: Present: A. Bialek, J. Nowicki,V. Beard, J. Henrici, Council: G. Steiner Absent: Guest : Mike Piotroski Minutes Minutes of the Dec. 23, 2009 meeting were read and approved on a motion by J. Nowicki, seconded by A. Bialek. Carried. Virgil Beard was nominated to continue as President, until his term runs out in April. He had expressed,to the Board that he would be stepping down from his position because of health concerns. A. Bialek was nominated to continue his role as Secretary. A motion to approve this was made by J. Nowicki, seconded by J. Henrici. Carried. Information on the open position would be sent out to the retired members. Voting would be done during the month of April. A motion was made to hold our meetings the last Tuesday of the month for the 2010 year, by A. Bialek, seconded by J. Nowicki. Carried Treasurer Report rMike Piotroski reviewed the portfolio with us for the 2009 year. did very well,during the last few months, out performing our bench marks. However, caution was how we should proceed as the government stimulus will be ending soon. How the market will react to this and can it sustain itself on its own, is what worries the investment sector. Discussion ensued on what to do with the maturing CDs with the Elgin Credit Union. As the cash would return, it would be used to pay obligations to the fund and not reinvested in CDs at the present. An invoice was received from FMA for Jan. through March 2010 of 12,201.76. A motion was paid to pay this by A. Bialek, Seconded by J. Nowicki. Carried 4 yes, -o- no. The settlement agreement with River Road was discussed and it was motioned to allow the Boards' attorney C. Collins to authorize, on the Boards'behalf,to approve the proposal as presented. This was made by J. Nowicki, seconded by A. Bialek. Carried. A motion was made to accept the Treasurer report and changes to the Investment Policy by J. Nowicki, seconded by A. Bialek. Carried Secretary Report,,, Retired member Rich Wilkening was discussed. He presently does not have a checking account and refuses to get one, do to legal issues with the IRS. His check has been sent to the City for signatures and then sent to the Secretary for him to pick up. Because of this, his checks are not always ready at the end of the month. He has expressed to the Board that he - 1 - prefer to do this instead of having it mailed as this could delay the check further. However, he has become adamant about receiving the check immediately,even inquiring on getting the check before the end of the month. rIt was decided that if he refuses to get a checking account for the direct deposit that all members are required to do. It was decided that the Board would have his check mailed to him and it was motioned to charge him a $20.00 fee to cover the costs of having the check written, signed and mailed each month. This was made by J. Nowicki, seconded by J. Henrici. Carried. An invoice was received,from C. Collins,for the period Jan.through March of 2010, of $850.00. A motion was made to pay this by A. Bialek, seconded by J. Henrici. Carried 4 yes -o-no. An invoice and Dr. report was received on disabled member J. Homuth of$800.00. It was motioned to pay Dr. Stamalos for this service by A. Bialek, seconded by J. Nowicki. Carried 4 yes, -o-no. His physical stated that he remains disabled from firefighting. He was now over the age of 5oyrs and would not be required to get annual physicals. New retiree, Greg Benson, application was discussed. Since he is the first one to use the reciprocity clause and has met all of the requirements of the State to do this,the Board had not received information on what the portion would be for Elgin to pay,compared with the- 2-other departments he had credit with. J. Nowicki made a motion to accept the retirement application of G. Benson but,to table the approved amount until it was known what portion all -3- departments would be paying. This was seconded by A. Bialek. Carried. rA letter of inquiry was received from the Chicago Pension Fund, concerning former member Roger Fischer. A new State Statute allows for former suburban FF members,to apply credit toward Chicago"time". However, it was not known how much it would cost the former member and if he would still be interested after finding out what the cost would be. The information on the members former time (1 yr) and contribution,was given to Allison at Lauterbach and Amen,to do for an estimate. This is a one time only issue and no other former firefighters had applied by the deadline. This was tabled until next month Unfinished business. An appeal letter was received from C. Collins office concerning C. Fortin. Mr. Fortin was denied a"bystanders report" as filed by his attorney. They did ask for an extension of time to file another brief,which was approved. C. Collins would report back to the Board at the next meeting in Feb. 2010. New Business The new State rule governing access to pension records was discussed. A Security Administrator was to be named by the Board to authorize access on processing our funds annual reports and financial information. A. Bialek was nominated by J. Nowicki and seconded by J. Henrici,to take on this responsibility. This carried 4 yes,-o-no. He would then proceed to authorize the firm of Lauterbach and Amen, specifically Nathan Baskil of the r4 firm,to have access to the information that they have had previously. Misc - 2 - J. Nowicki stated that the Actuary that the city hires each year to formulate what the cost would be toward the Pension fund, would start earlier, to reflect the improved returns and changes for 2009 encompassed. It could be ready by April or May of this year. Adjournment A motion was made to adjourn by J. Nowicki, seconded by A. Bialek. Carried. 09:35a Attachments Collins bills (filed) Homuth bill and report(filed) FMA invoice (filed) ( , 3/36/0 Anthony Bialek, Recording Secretary Date approved r - 3 - Elgin Fire Fighters Pension Fund Please be advised that the regularly scheduled meeting of the Elgin Fire Fighters Pension Fund Board previously scheduled for Tuesday, February 23, has been cancelled. The next regular meeting will be held on March 30, 2010 at 08:30am in the 1st Floor Conference Room "A". Anthony Bialek Secretary Elgin Firefighter's Pension Board r Elgin Fire Pension Fund Tuesday, Mar. 30, 2010 Agenda r•. 08:30am 1st floor Conference Room Roll: • Present: • Absent: • Council: • Guests: Minutes: • Jan. 27, 2010 Treasurer' Report: • Marquette/Lauterbach and Amen report • C/D issue with Elgin Employees Credit Union • New City Finance Director Colleen Lavery • Trust safe keeping services Secretary report: • Collins invoice for April, May, June 2010 $850.00 • Marquette invoice March, April, May 2010 $6500.00 Unfinished business: • Fortin appeal • Roger Fischer Chicago time • V. Beard retired position election Greg Benson and Rick Tripoli interested • River Road issue New Business: • IDOI audit of fund • Disability conversion of James Sanders (was $3588.57 to $5012.43) Disability 10/28/88 23y lm Top Capt. (56.17%) age now 72 Misc: • Adjournment: ERIN FIRE PENSION FUND MINUTES March 30, 2010 A,,., Meeting was called to order at 8:3o am by V. Beard Roll Call: Present: A. Bialek, J. Nowicki, V. Beard, J. Henrici, G. Steiner Council: C. Collins Absent: Guest : Mike Piotroski, Colleen Lavery Minutes Minutes of the Jan. 26, 2010 meeting were read and approved on a motion by G. Steiner, seconded by J. Henrici. Carried. Colleen Lavery was introduced as the soon to take the office of Elgin City Finance Director. She will then be taking the office of Treasurer of the Elgin Fire Pension Fund per State Statute. Treasurer Report Mike Piotroski reviewed the portfolio with us for the beginning of the 2010 year. We out performed our bench marks except for the Hartford. However,there was no concern at the moment, considering the run up in the market so far this year. However,we should be cautious as the market was due to level off and employment figures were not improving for the year. Rebalancing is still ongoing as directed. The month of March would be forwarded to the Board as soon as they were in. '" The custody issue was discussed concerning Amcor and the possibility that they would be sold or taken over by the Federal Gov. It was recommended that we move our holdings to a new Custodian. Mike Piotroski recommended-2-institutions Bank One and Wells Fargo. Both were very reputable and the PD Fund already has Wells Fargo. They were asked that if we went with them,would they lower there rate and they agreed that if we did, we would be charge 3BPS as compared to 4BPS from Bank One. A motion was made to accept this offer and transfer the holdings to Wells Fargo,by J. Nowicki, seconded by G. Steiner. Carried. Cary Collins suggested that he look into the possibility of combining more funds to see if we could get an even lower rate. He would get back to the Board members at a later date. Discussion ensued on what to do with the maturing CDs with the Elgin Credit Union. It was realized that only one signature was needed to withdraw the maturing CD. This was corrected by directing the Elgin Credit Union to require -2- signatures. This could be complicated however, if only one person was available to sign. An amended motion was made to require -2-signatures for all transactions requiring payment of invoices, one of which must be the Treasurer. All other transactions concerning the movement of holdings from existing accounts to another existing account, can be done with the Boards authorization and direction of the Treasurer. A motion was made to accept the Treasurer report by J. Nowicki, seconded by A. Bialek. Carried - 1 - Secretary Report Two invoices were received, one from C. Collins,for April, May,June of 2010, $850.00, and a second from Marquette and Assoc. for March April, May, $6500.00.A motion was made to rpay this by J. Nowicki, seconded by J. Henrici. Carried 5 yes -0- no. An invoice and Dr. report was received on disabled member J. Homuth of$800.00. It was motioned to pay Dr. Stamalos for this service by A. Bialek, seconded by J. Nowicki. Carried 4 yes, -o-no. His physical stated that he remains disabled from firefighting. He was now over the age of 5oyrs and would not be required to get annual physicals. New retiree, Greg Benson, application amounts are as follows: Elgin: $ 6619.25 Aurora: 373.64 St. Charles: 222.34 Unfinished business. A 3rd appeal letter was received from C. Collins office concerning C. Fortin. Again they asked for an extension of time to file another brief, which was approved. This would take place during the Month of April. No response from Roger Fischer on his Chicago Time. Election for the retired FF position would be held in April. New Business It was reported that the IDOI would be auditing the Fire Fund shortly. It has been over 12 years since the last one. All required documents requested have been sent to them and the auditor will be here in approximately-6-weeks. A notarized request was received from Disabled FF James Sanders to convert his disability pension to a regular retired pension, as allowed by State Statute. He was receiving $3588.57 monthly and would go to $5012.43 monthly. This is based on what his rank is receiving as of the date of the request taking affect 3/1/2010. His rank was top Capt. with 23 yrs and 1 month of service. (56.17%) Misc A question was asked of C. Collins as to the status of a retired firefighter that remarries after he has retired. Referring to the Statute covering this, as firefighter has to be married for-1- year before the wife would be entitled to receive a widow pension. C. Collins informed the Board members that all of the Pension plans in the State of Illinois, were under attack by members of the Legislature. He would be attending meetings, over the next few days, covering many issues, including one involving the Illinois Constitution. He would get back to the Board by next meeting with information. - 2 - e Adjournment A motion was made to adjourn by J. Henrici, seconded by J. Nowicki. Carried. o9:35a r Attachments Collins bills (filed) Marquette bill (filed) Anthony Bialek, Recording Secretary Date approved X Anthony Bialek Elgin Fire Pension Secretary r - 3 - Elgin Fire Pension Fund Tuesday, Apr. 27, 2010 Agenda r.. 08:30am 1st floor Conference Room Roll: • Present: • Absent: • Council: • Guests: Minutes: • Mar. 30, 2010 Treasurer' Report: • Marquette/Lauterbach and Amen report Secretary report: • Collins invoice for Fortin appeals $1312.50 • Northern Trust invoice $3270.63 • FMA invoice $13,348.40 Jan., Feb., Mar., 2010 emb • Pension Seminar in Peoria Unfinished business: • Fortin appeal • Roger Fischer Chicago time • Retired FF position election results • IDOI audit of fund New Business: • Pension fund changes Misc: • Adjournment: ELGIN FIRE PENSION FUND MINUTES April 27, 2010 Meeting was called to order at 8:30 am by V. Beard Roll Call: Present: A. Bialek,J. Nowicki,V. Beard,J. Henrici, G. Steiner Council: Absent: Guest : Ray Capro (Marquette) Minutes Minutes of the March 30, 2010 meeting were read and approved on a motion by G. Steiner, seconded by J. Nowicki. Carried. Treasurer Report Ray Capro reviewed the portfolio with us for the ist quarter. We increased our value by $1,016,673. Rebalancing was the topic of discussion. We need to rebalance as our percentages are not corresponding to State Statute. We are presently @51 1/2% in fixed and 48% in equities,with the remainder in cash. Discussion ensued on where to redistribute the money as we could move some into another form of investment as a C/D for example. So the rebalancing decision would be delayed until the May 25th meeting. A question was then raised on the Internationally Managed account. It was showing a-0.1% and it should be showing a positive figure. This then led to a question on the ranking of our fund, as compared with other plans. These issues would be taken back to Marquette for a flolk resolution. Wells Fargo should have all the transactions complete from the move from Amcor by the end of April. A motion was made to accept the Treasurer report by J. Nowicki, seconded by G. Steiner. Carried Secretary Report Three invoices were received, one from C. Collins, for the continuing Fortin Appeals,of $1312.50 the second from Northern Trust, for $3270.63, and the third from FMA for Jan. Feb., and Mar. of 2010.A motion was made to pay this by J. Henrici. seconded by J. Nowicki,Carried. 5 yes-0- no. The details for the Peoria seminar have been taken care of. A motion was made to pay the necessary expenses for the seminar by J. Nowicki, seconded by G. Steiner. Carried. Unfinished business. Nothing on the Fortin appeal however, it was mentioned that he may have applied to come rback to the FD. The secretary would check with HR. F No response from Roger Fischer on his Chicago Time. - 1 - , Ballots for the position of Retired member on the Board were sent out and waiting until the end of the month for tallying. New Business It was reported that the State Legislature was working with the AFFI on changes to the Fire Pension Statute but nothing firm was resolved yet. Misc A question was posed on the Lauterbach and Amen report concerning J. Henrici. The Secretary would check into that by next meeting. Adjournment A motion was made to adjourn by J. Henrici, seconded by J. Nowicki. Carried. o9:35a Attachments Collins bills(filed) FMA bill (filed) Northern Trust bill (filed) d-Le,i1 5-/25"/(0 Anthony Bialek, Recording Secretary Date approved r - 2 - Elgin Fire Pension Fund Tuesday, May 25, 2010 Agenda 08:30am 1st floor Conference Room Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes of the Apr. 27, 2010 • Election of retired FF R. Tripoli to the board 27 Tripoli 14 Benson • Election of new President of the Board Treasurer' Report: • New Treasurer Colleen Lavery • Actuarial report from Mr. Sharpe • Marquette/Lauterbach and Amen report Rebalancing issue (such as other short term CDs) Question on -.1% ON Internally Managed Fund (pg 12) Rankings? (Pg 9-10) • Secretary report: • Ill. State Compliance Fee $8,000.00 • New check writing availability from Lauterbach and Amen • V. Zierk retirement • Pension Seminar in Peoria Unfinished business: • Fortin appeal • Roger Fischer Chicago time • IDOI audit of fund • Pension fund changes (tabled to fall session) • J. Henrici question on contributions New Business: • Misc: • Adjournment: • ELGIN FIRE PENSION FUND MINUTES May 25, 2010 Meeting was called to order at 8:30 am by V. Beard Roll Call: Present: A. Bialek, J. Nowicki, R. Tripoli, G. Steiner Council: C. Collins Absent: J. Henrici Guest : Mike Pietroski (Marquette) Minutes Minutes of the Apr. 27, 2010 meeting were read and approved on a motion by G. Steiner, seconded by J. Nowicki. Carried. Treasurer Report New Finance Director, Colleen Lavery,of the City of Elgin,was introduced to the Board members. The position,by state statute, also makes her Treasurer of the Elgin Fire Pension Board. M. Pietroski, from Marquette, presented the financial Flash report,to the Board. Fund performance was reviewed first and the Internally managed fund was discussed at length. Because it is in the middle of a quarterly report, the performance was not showing a true reading, especially since it is almost-1-month old. However, it was changed to reflect a 0% instead of a negative, after some internal adjustment to show the CD accruals. rAs the CDs matured, it was recommended that they be turned over to the Northern Trust fund. C. Collins questioned if that all the holdings were permissible and M. Pietroski assured the Board that they were. Next the Board was told that the Hartford was not performing well and it was recommended that they be put on alert status. This was agreed to. Rebalancing was discussed,taking into consideration the market, so far in 2010. After discussing this in detail it was motioned to rebalance the percentages as follows, in the internally managed account. Short Term Govt. Fixed from 10% to 5% Intermediate Govt Fixed from 40%to 45% Stable Value from 5%to 1o% It was also recommended that the Fund move $1,000,000.00 from the Vanguard Fund to Northern,to keep in compliance with the Statute of 45% Mutual and 55% Fixed. A motion was made to approve these by A. Bialek, seconded by G. Steiner. Carried. Along with this, Marquette and Assoc. would be asked to bring back some example of managers that we may employ to manage our Internally Managed Fund. A revised Investment Policy would come out to cover the changes. A motion was made to accept the Treasurer report by J. Nowicki, seconded by G. Steiner. Carried. - 1 - • Secretary Report Election results were reviewed by the Board members. R. Tripoli received 27 votes and G. ro- Benson received 14 votes. A motion was made to close the election and approve the winner, Rick Tripoli,to fill the position of Retired Board member,by G. Steiner,seconded by J. Nowicki. Carried. The compliance Fee statement was received from IDOL for $8000.00.A motion was made to pay this by A. Bialek, seconded by R. Tripoli. Carried. ayes -o- nay. A retirement application was received from Lt. FF Paramedic V. Zierk. She had 24 yrs,3 months with the Fire Department. Her monthly benefit would be $4887.46 at the rate of 60.63% of ending salary.A motion was made to accept her application by A. Bialek, seconded by R. Tripoli. Carried. The details for the Peoria seminar have been taken care of. A motion was made to pay the necessary expenses for the seminar by J. Nowicki, seconded by G. Steiner. Carried. Unfinished business. Nothing on the Fortin appeal. Actuarial Report from Mr. Sharpe would be given next month. elk No response from Roger Fischer on his Chicago Time. Nothing changed concerning Article IV pension changes and probably would not be until the Fall 2010 session. IDOI Auditor has not arrived yet. J. Henrici question on contributions pending. New Business A motion was made by G. Steiner, seconded by A. Bialek,to nominate J. Henrici,to fill the position of President of the Fire Pension Board, replacing retiring member V. Beard. Carried. There being no other nominations, a motion was made to elect J. Henrici as President of the Fire Pension Board, by G. Steiner,seconded by R.Tripoli. Carried 4 yes-0- nays. Board Fiduciary Insurance was discussed as covered at the Pension seminar in Peoria. The secretary was directed to contact representatives from Ullico Insurance Agency,to make a presentation at the next Board meeting. C. Lavery would check on what amount the City of Elgin covers the Pension Board members. A new check writing proposal was put forward by Lauterbach and Amen,to pay out to vendors on a timelier basis. The Board agreed that this would be a good idea but did not want to be the ones implementing it. When the system was up and running at the firm,we would have the system applied to us. - 2 - • Misc None Adjournment A motion was made to adjourn by J. Nowicki, seconded by A. Bialek. Carried. io:05a Attachments Compliance fee (filed) Zierk application (filed) 6-1?Vio Anthony Bialek, Recording Secretary Date approved - 3 - Elgin Fire Pension Fund Tuesday, June 29, 2010 Agenda enk08:30am 1St floor Mayors conference room Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes of the May 25, 2010 Treasurer' Report: • Fiduciary Liability insurance. • Marquette report Secretary report: • Fortin appeal Brief invoice $7300.00 • Plaque for former board President V. Beard $65.00 • Collins quarterly retainer $850.00 July,Aug., Sep. 2010 • Marquette invoice for Jun., Jul., Aug. $6500.00 • IPPAC invoice for pension seminar $299.00 • Tripoli and Bialek room rate for pension seminar $217.00ea. • J. Nowicki invoice for ethics training and stay $315.64 Unfinished business: • Fortin appeal • Roger Fischer Chicago time • IDOI audit of fund • Pension fund changes (tabled to fall session) • J. Henrici question on contributions • New check writing availability from Lauterbach and Amen • New Business: • Credit Union issue • Death of retired FF Tom Wolf and approval of Bev Wolf Widow pension • New Deferred Retirement application. Rudy Horist 24yrs 6months 61.042% Misc: • Adjournment: ELGIN FIRE PENSION FUND MINUTES June 29, 2010 Meeting was called to order at 8:30 am by J. Henrici Roll Call: Present: A. Bialek, J. Nowicki, R. Tripoli, G. Steiner, J. Nowicki Council: Absent: Guest : Mike Pietroski (Marquette) T. Bowen (Meserow) C. Smith (Elgin Employees Credit Union) Minutes Minutes of the May 25, 2010 meeting were read and approved on a motion by R Tripoli, seconded by G. Steiner. Carried. Treasurer Report C. Smith,with the Elgin Employees Credit Union,was present to discuss the letter received by the Pension Board, covering the financial issues that the Credit Union has. Our concern was the investment of the CDs that the Board made previously and the overall financial condition of the Credit Union. He assured the Board members that the issues the State of Illinois cited were already being addressed. As far as the internal policies were concerned, at the Credit Union,these were reviewed and changes would be made to reflect the concerns of the State of Illinois. The Treasurer of the Board would be kept informed on the progress that the Credit Union is making over the next few months. rM. Pietroski,from Marquette, presented a financial Flash report,to the Board. Fund performance was reviewed first and a search presentation was handed out on a possible Manager for the internally managed funds. It would be reviewed by the members and brought up at next meeting. A copy would be given to C. Collins along with the fee schedule. A motion was made to accept the abbreviated report by J. Nowicki, seconded by G. Steiner. Carried. Next the Board was given a presentation from Meserow Ins. on Fiduciary Liability coverage. Details of the policy were discussed. It was generally agreed that the Board would look into purchasing a policy as soon as the Treasurer sends some needed items, application, most recent audit,to Mesrow to come up with cost quote. This would be discussed at the next meeting. Secretary Report The following invoices were approved for payment on a motion by G. Steiner, seconded by A. Bialek. Carried 5 yes, 0 no. Fortin appeal invoice $7300.00(c. Collins) Plaque for V. Beard 65.00(A. Bialek) Collins quarterly retainer 850.009 (Jul,,Aug. Sept.) rMarquette quarter fee 6500.00 (Jun.,Jul.,Aug.) IPPAC Seminar 299.00 Tripoli, Bialek Peoria seminar 217.00ea - 1 - J.Nowicki Ethics training seminar 315.64 Northern Trust 3304.93 (Apr, May, Jun) Unfinished business. Fortin appeal. The Board was informed that C. Fortin had passed a physical,with the City of Elgin and that he would be assigned to an Academy as of the 18th of August. As of yet,there was no response from Mr. Fortin and the Appeal process was still in progress. Actuarial Report from Mr. Sharpe would be presented at the August meeting. Still no response from Roger Fischer on his Chicago Time. Nothing changed concerning Article IV pension changes and probably would not be until the Fall 2010 session. IDOI Auditor has not arrived yet. New check writing account would be reviewed and set up in July or August, New Business The Secretary reported the death of retired FF T. Wolf on 6/22/10.A motion was made to approve a widow pension for Beverly Wolf as of 6/23/10 per Art. IV Statute, in the amount of $5630.04,by A. Bialek, seconded by R. Tripoli. Carried. rAn application for a deferred retired was received from FF R. Horist. He would be retiring as of 6/27/10,last day,with the first day on retirement being 6/28/10. This is a deferred retirement as he is only 46+ yrs of age and would not start to receive benefits until he reaches the age of 50. His time on the job was 24Yrs and 5 months, equaling 61.04% pension totaling $6558.33 monthly.A motion was made to approve this request by G. Steiner, seconded by R. Tripoli. Carried. Misc None Adjournment A motion was made to adjourn by J. Nowicki, seconded by A. Bialek. Carried. 9:35a Attachments Invoices: Fortin, Plaque, Collins, Marquette, IPPAC, Tripoli, Bialek, Nowicki, Northern trust. (filed) /( Anthony Bialek, Recording Secretary Date approved - 2 - ,.. Elgin Fire Fighters Pension Fund Please be advised that the regularly scheduled meeting of the Elgin Fire Fighters Pension Fund Board previously scheduled for Tuesday, July 27, 2010 has been cancelled. Next regular meeting will be held on August 31, 2010 Anthony Bialek Secretary "'' Elgin Firefighter's Pension Board Elgin Fire Pension Fund Tuesday, July 27, 2010 Agenda 08:30am 1St floor conference room "A" Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes of the June 29, 2010 Treasurer' Report: • Marquette report Secretary report: • Retirees Picnic on Sunday Sept. 19th (see flier) • Fortin restart Unfinished business: • Fortin appeal • Roger Fischer Chicago time • IDOI audit of fund • Pension fund changes (tabled to fall session) • J. Henrici question on contributions New check writing availability from Lauterbach and Amen • Fiduciary Liability insurance. • Credit Union issue New Business: • Misc: • Adjournment: • ELGIN FIRE PENSION FUND MINUTES August 31, 2010 Meeting was called to order at 8:30 am by J. Henrici Roll Call: Present: A. Bialek, J. Nowicki, R. Tripoli, G. Steiner, FT. Nowicki Council: tom??? Absent: Guest : Mike Pietroski (Marquette) Minutes Minutes of the June 29, 2010 meeting were read and approved on a motion by R. Tripoli, seconded by J.Nowicki.. Carried. Treasurer Report C. Smith,with the Elgin Employees Credit Union,was present to discuss the letter received by the Pension Board, covering the financial issues that the Credit Union has. Our concern was the investment of the CDs that the Board made previously and the overall financial condition of the Credit Union. He assured the Board members that the issues the State of Illinois cited were already being addressed. As far as the internal policies were concerned, at the Credit Union,these were reviewed and changes would be made to reflect the concerns of the State of Illinois. The Treasurer of the Board would be kept informed on the progress that the Credit Union is making over the next few months. rM. Pietroski,from Marquette, presented a financial report to the Board. Fund performance was reviewed. The Stock Market has been very erratic, over the past few months,but we do show a positive YTD composite. The Hartford Capital continues to underperform and they will remain on the Alert status. The main concern was the "soft recovery"that they financial world is concerned about. It was stated that the US needs to show-2-good GDP quarters in a row to encourage growth with the economy. A recommendation to rebalance $1.2mil from the Northern Trust to the / This was motioned to approve by J. Nowicki, seconded by R. Tripoli. Carried. An explanation of the pros and cons of hiring an investment manager to manage the Fixed Accounts,was reviewed. The funds that can be invested in are fairly limited and Mortgage based holdings are sometimes used to increase returns.After some discussion it was decided to table any decision until next meeting. J. Nowicki requested that information on how the Police Pension fund does as they have had a Fixed Manager for some time. Mi. Pietroski would present an analysis at the next meeting. Mr. Sharpe was contacted via phone at the beginning of the meeting but had responded back at the conclusion of the Treasurer report. A motion was made to accept the treasurer, as provided by M. Pietroski, by J. Nowicki, seconded by G. Steiner. Carried. - 1 - e Secretary Report The following invoices were approved for payment on a motion by G. Steiner, seconded by A. Bialek. Carried 5 yes, 0 no. FMA invoice April, May,June $13,818.13 IPPAC annual membership 7/2010-6/30/2011 $ 500.00 Lauterbach and Amen (annual report) $ 1800.00 A reminder that the Retirees and Firefighter picnic is on Sep. 19th. It was noted that Cherif Fortin had started the Academy on Aug. 16, 2010. Colleen would check on the status of the Credit Union' condition. Unfinished business. Fortin appeal is still under review at this time. Still no response from Roger Fischer on his Chicago Time. Nothing changed concerning Article IV pension changes and probably would not be until the Fall 2010 session. IDOI Auditor will be arriving to review the Police Pension and it is expected that Fire will be next. rNew check writing account has been incorporated. Fiduciary Liability Insurance was discussed and it was decided to go with Ullico and start at the $1 million coverage for pension board members. The annual rate would be for $4,703.00.A motion was made to have the Treasurer contact them and start our policy. This was made by J. Nowicki, seconded by R. Tripoli. Carried. New Business None Misc None Adjournment A motion was made to adjourn by J. Nowicki, seconded by A. Bialek. Carried. 9:45a Attachments Invoices: IPPAC. FMA, and Lauterbach and Amen. (filed) flow A jj 1 V/d Anthony Bialek, Recording Secretary Date approved - 2 _ k Elgin Fire Fighters Pension Fund Please be advised that the regularly scheduled meeting of the Elgin Fire Fighters Pension Fund Board previously scheduled for Tuesday, September 28, 2010 has been cancelled. Next regular meeting will be held on October 26, 2010 Anthony Bialek Secretary ""' Elgin Firefighter's Pension Board Elgin Fire Pension Fund Tuesday, Oct 26, 2010 Agenda 08:30am 2nd floor Conference room South Wing Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes of the Aug. 31, 2010 Treasurer' Report: • Marquette report • Sharpe Actuary report phone in • Representative from FMA • Fixed income Manager??? F Secretary report: • FMA invoice for 10/1 through 12/31/2010 $13,399.00 • Marquette invoice 91/1/10-11/30/10 $6,500.00 • Pension seminar Schaumburg 10/18 and 10/19 Reimburse A. Bialek $100.00 for Tripoli Unfinished business: • Fortin appeal • Roger Fischer Chicago time • IDOI audit • Pension fund changes • Status of Credit Union New Business: • Chief Henrici retirement application. Misc: • ""* Adjournment: ELGIN FIRE PENSION FUND MINUTES October 26, 2010 Meeting was called to order at 8:3o am by J. Henrici Roll Call: Present: A. Bialek,J. Nowicki, G. Steiner,J. Henrici Council: Absent: R.Tripoli Guest : Pat Caprio (Marquette) Minutes Minutes of the August 31, 2010 meeting were read and approved on a motion by J.Nowicki seconded by J.Henrici Carried. Treasurer Report C. Smith,with the Elgin Employees Credit Union,was present to discuss the letter received by the Pension Board, covering the financial issues that the Credit Union has. Our concern was the investment of the CDs that the Board made previously and the overall financial condition of the Credit Union. He assured the Board members that the issues the State of Illinois cited were already being addressed. As far as the internal policies were concerned,at the Credit Union,these were reviewed and changes would be made to reflect the concerns of the State of Illinois. The Treasurer of the Board would be kept informed on the progress that the Credit Union is making over the next few months. Pat Caprio,from Marquette, presented a financial report to the Board. Fund performance was reviewed. The Hartford Capital continues to underperform and they will be put on notice for possible termination. A search for a new firm could begin. It was suggested that the amount could be moved to Vanguard,or another Index type fund. This would be a major shift in philosophy for Marquette and Assoc. and questions arose as to why the shift? Mainly the savings on fees would compensate for the shift. It was suggested that e-mails could be sent to all the members discussing the changes, along with the next report,prior to the next meeting,to save on discussion time. Nothing would be done at this time and tabled until next meeting. The Fund did very well since the last report which is causing a slightly over weighted amount toward the Equity side. A recommendation was made to move $600K into the NTQA Intermediate Govt. Fund to move toward the 55%target for the fixed accounts. This was motioned to approve by J. Nowicki, seconded by G. Steiner. Carried. An explanation of the pros and cons of hiring an investment manager to manage the Fixed Accounts,was tabled until next meeting. Representatives from FMA were on hand to discuss the performance of the fund since they were hired. They have been out performing their benchmark and were very pleased to be one of their clients. A request was made to have e-mailed,the holdings and transactions that take place on a monthly basis,to Treasurer Lavery for dissemination to the other members of the Board. They said that this would be no problem. - 1 - A motion was made to accept the report as given by Marquette by J. Nowicki,seconded by A. Bialek. Carried Mr. Sharpe was contacted via phone and reviewed the actuary report as submitted. Overall, our fund was doing better than most others. The Economy,as with everyone else,was the major drawback. The City of Elgin has kept up their funding and have actually put in more at times. The overall report was discussed in detail and all questions were answered to the satisfaction of the Board members.The main item of concern was the investment rate of return. 8%was the target goal for rate of return and the Fire Pension Fund was not reaching that goal,mainly due to investment returns. The good news was that the fund had a 13.6% return for 2009. The full report was filed with the Secretary and Treasurer. A motion was made to accept the report as give by Mr. Sharpe by J. Nowicki, seconded by A. Bialek. Carried. Secretary Report The following invoices were approved for payment on a motion by J. Nowicki,seconded by G. Steiner. Carried 5 yes, o no. FMA invoice April, May,June $13,399.02 Marquette invoice for Sep.,Oct.Nov. 2010 6,500.00 A.Bialek for reimbursement for IAFF Pension Seminar 100.00 Northern Trust invoice 3,411.79 Cary Collins invoice Oct., Nov., Dec. 2010 650.00 Unfinished business. Fortin appeal is still under review at this time. Nothing changed concerning Article IV pension changes and probably would not be until the fall 2010 session. IDOI Auditor has arrived to review the Fire Pension. New Business Chief J. Henrici submitted his application for retirement and a motion was made to approve it by A. Bialek, seconded by G. Steiner. Carried. 51.04% @$6693.03 monthly. Misc None Adjournment A motion was made to adjourn by J. Nowicki,seconded by A. Bialek. Carried. 1o:ooa Attachments Invoices:filed IPPAC FMA Marquette and Assoc. Northern Trust -2 - A. Bialek An.l.,..7":i / ,./13 A thou ialek, Recording Secretary Date approved v, ,. -3 - Elgin Fire I)e on Fund Tuesday, 11010 Agnnc1a �* 08:_ m C 2°a floor Con' once room South Ming Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes of the Oct. 26, 2010 Treasurer' Report: • Marquette report • Pros/Cons of Fixed income manage, • Marquette invoice for $6500.00 Den. ' . 7010 through Feb. 28, 2011 Secretary report: • Retirement of Lt. Dale Aeschliman. ' service. 75% pension $6,046.50 monthly • Pension fund changes have passed t' ' ''rause • Credit Union Status • Winter Seminar 12/10/2010 FRED -1:30pm followed by x-mas party See flyer • State Audit report findings Unfinished business: • Fortin appeal • IDOI audit New Business: • Retired Disabled F/F R. Wilkening • Dale Aeschliman retirement ' ' '-'(/2010 30yr of service. 75% pension $6,046.50 monthly rMise: ELGIN FIRE PENSION FUND MINUTES December 7, 2010 Meeting was called to order at 8:3o am by J. Nowicki Roll Call: Present: A. Bialek,J. Nowicki, R.Tripoli Treasurer: C. Lavery Council: Absent: J. Henrici, G. Steiner Guest : Mike Pietroski (Marquette) Cecil Smith(Elgin Employees Credit Union) Minutes Minutes of the October 26, 2010 meeting were read and approved on a motion by R.Tripoli, seconded by A. Bialek. Carried. Treasurer Report C. Smith,with the Elgin Employees Credit Union,was present to discuss the ongoing changes at the Credit Union. Everything was proceeding smoothly with the internal changes and the Credit Union had been made an offer to be bought out by Credit One, a national Credit Union institution. This would probably take place in early 2011. This would give our members more possibilities when retiring as they are located in other places throughout the country. They would be taking over some of the debt liabilities that have occurred and the credit union would retain its name.More information would be coming out at a later date. Mike Pietroski presented a financial report to the Board. The new State Statute that was passed by the House and Senate is waiting for the Governor to sign it.This would change some investment strategies that Marquette would advise on, especially concerning Corporate Bonds,when it is signed. So,discussion of using a manager to take on the Fixed income side of the Fund was tabled until the January meeting. The rebalancing has gone through, as approved at last meeting,however,the fjund did very well,in September and another rebalancing was suggested to get the Fund bank near its target allocations.The amounts would depend on how the market and fund does for the remainder of the year. Money would be moved from Vanguard and Hartford into the NTQA Govt. Fund and possibly into FMA. Mike Pietroski would e-mail the members,toward the end of the month of December, on the amounts recommended to transfer. A yes or no response would be returned and kept on file by the Secretary. A motion was Made by J. Nowicki,seconded by R.Tripoli to go with the e-mail recommendation by M Pietroski. Carried. Harford was remaining on alert and DFA was put on alert because of continued under performing with respect to their benchmarks. A motion was made to approve the Treasurer report as given by Marquette,by A. Bialek, seconded by R.Tripoli. Carried - 1 - Secretary Report The following invoices were approved for payment on a motion by R.Tripoli,seconded by A. Bialek. Carried 3 yes, 0 no. Marquette invoice for Dec. 2010,Jan.and Feb. 2011 $6,500.00 Lauterbach and Amen invoice for the Municipal Compliance Report 500.00 A reminder of upcoming winter IPPAC seminar is on Friday, Dec. 10, 2010. Unfinished business. Fortin appeal is still under review at this time. New Business Lt. Firefighter/Medic Dale Aeschliman, submitted his application for retirement and a motion was made to approve it by A. Bialek, seconded by R. Tripoli. His benefit is as follows: Lt. Firefighter/Medic Date of Employment 11/3/1980 Date of retirement 11/28/2010 30 yrs of service 75%regular pension Salary $96,744.00 $6,046.50 Monthly check (complete detailed breakdown in pension file) The State Auditor had completed the exam and a report was submitted to the board for review. Their were-5-recommendations/findings and these were discussed. It was agreed that all of the findings would be followed. A motion was made to approve this reimbursement by J.Nowicki,seconded by A. Bialek. Carried. A letter of response would be made to the IDOI and given to the Treasurer to review. Concerning management findings,it would be researched on the Treasurer signing of all the fund's accounts especially referring to Amcor and Harris banks. Mike Pietroskd would check with the C. Collins on the Fiduciary acknowledgement letter of the investment advisor. Included in the recommendations was a request to record the approved recommendation from the Actuary on the amount that is required to be put into the fund annually by the City of Elgin. A motion was made by A. Bialek, seconded by R.Tripoli to approve the amount of $3,117,165.00 as recommended in the Actuary report received from Mr. Sharpe on 4/25/2010,required by the Elgin Fire Pension Fund to comply with the funding requirements. Misc Retired F/F R.Wilkening situation was discussed. The Board members were advised that their may be a number of outstanding checks that will not be cashed over the nest few months. Adjournment - 2 - 'A motion was made to adjourn by J. Nowicki, seconded by A. Bialek. Carried. io:ooa Attachments Invoices: filed Municipal compliance $500.00 Marquette and Assoc. 6,500.00 Dale Aeschliman retirement info A dlg/ Anthony Bialek, Recording Secretary Date approved - 3 -