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HomeMy WebLinkAbout2016 Elgin Fire Pension Fund Agendas & Minutes Elgin Fire Pension Fund Tuesday January 26, 2016 Agenda r 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, Tuesday, December 1, 2015 • Election of President and Secretary for 2016 Treasurer Report: • Marquette, MVT, L & A reports • Collins / Radja invoice Jan thru Mar. 2016 $925.00 • FMA invoice for Jan. Feb. Mar. 2016 $14,073.52 r • MVT invoice for Jan. Feb. Mar. 2016 $14,830.00 Secretary Report: • COLA increases Old Business: • Widow H. Diekman amount recovered. Proper amount $927.41 vs $1159.27. ( $231.86) recovered • New Business: • Misc.: • Adjournment: r ELGIN FIRE PENSION FUND MINUTES January 26, 2016 Meeting was called to order at 8:3o am by J. Henrici. Roll Call: Present: J. Nowicki,A. Bialek, R.Tripoli, D. Olkowski,J. Henrici Absent: Treasurer: D.Nawrocki Council: W. Freiberg Guest: Mike Pitrowski, B.Yucius Minutes Minutes of the December 1, 2015 meeting were reviewed and a motion to accept was made by J. Nowicki,seconded by R. Tripoli. Carried. Election of Board Officers. Nominations for President and Secretary of the Pension Fund were made by J.Nowicki,to continue with the present officers. J. Henrici for President and A. Bialek for Secretary. There being no further nominations,they were closed. Members voted unanimously for J. Henrici as President and A. Bialek for Secretary.A motion was made to accept the results by J. Nowicki, seconded by D. Olkowski. Carried. Treasurer Report M. Pitrowski started off with a review of 2015. It was a volatile year and all funds within the system did not fair very well. Even though Elgin Fire Pension has done well in comparison to the other DFA funds, our Fund made a very modest 0.5% return. It was pointed out that going back r out to the 5 and 7 year range,we have shown all little over rate of return. The end of the year stock market has dropped quite a bit and has corrected slightly in the beginning of 2016. The Fund did increase a little over 2 million,in 2015,but this does put more of a burden on the City and the Actuary will show this in his report. There is no need to rebalance at this time as our allocations are very close to what they should be. Page 2 of the report itemizes the movements for the 2015 year. Some discussion moved to DFA International and their performance. They have been lagging behind since we have acquired their Fund.A question was brought forward of maybe putting them on notice.At present it was not recommended as this Fund fits to what we were looking to invest in. It was pointed out that the Benchmark being used does not really match what it does with its holdings.Adding another benchmark to compare with may show a more realistic match and will be put into the next report. B.Yucius gave a report on the Bond portion of the fund. We lost @0.67% and it would have been more except that the Fund made back some on Corporate Bonds. Going forward will be difficult, looking for places to maybe gain some interest with going shorter as has been the practice. A motion to accept the reports given by the Marquette and FMA,with the approval of the Treasurer,was made by J. Nowicki, seconded by D. Olkowski. Carried. Unfinished business. rStill no request from FF Hartman that resigned,for his contributions. - 1 - Secretary Report R Invoices received: ebk • Collins /Radja invoice Jan thru Mar. 2016 $925.00 • FMA invoice for Jan. Feb. Mar. 2016 $14,073.52 A motion was made to pay these by A. Bialek, seconded by R. Tripoli. Carries • MVT invoice for Jan. Feb. Mar. 2016 $14,830.00 A motion to pay this invoice was made by D. Olkowski, seconded by R.Tripoli. Carried. J. Nowicki recused. COLA increases were presented for the 2016 year for review. Old Business It was mentioned that the overpayment made to the late Helen Diekman was made whole. $231.86 was returned to the Fund. New Business None Misc. None rk Adjournment A motion was made to adjourn by R.Tripoli, seconded by D. Olkowski. Carried 09:10am. Attachments FF Regan application Filed FF Subleski application Filed Anthony Bialek, Recording Secretary Date approved r - 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, February 23, 2016, has been cancelled. Next regular meeting will be held on Tuesday, March 29, 2016. Anthony Bialek Secretary rik Elgin Firefighter's Pension Board r ►- 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, March 29, 2016 has been Cancelled. The next regular meeting will be April 26, 2016. Anthony Bialek Secretary Elgin Firefighter's Pension Board r Elgin Fire Pension Fund Tuesday April 26, 2016 Agenda r08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, Tuesday, January 26, 2016 Treasurer Report: • Sharpe Actuarial report • Marquette, MVT, L & A reports • Mesirow/FMA discussion • 1St Mesirow invoice April 1, 2016 through June 30, 2016 $12,967.16 • Collins invoice Apr., May, June 2016 $925.00 Secretary Report: • Retired member Richard Lundy passed away 4/9/16 (retired 8-26-1989) 77yr old • Widow Pension for Lindy Lundy • Retired member William Misner passed away 4/15/16 (retired 1-28-89) No dependent. • Security Administrator • Retired FF Board position Rick Tripoli unopposed. Old Business: • New Business: • R.L. Newby retirement 5/8/2016 (1St day) Driver/FF/Medic 30yrs. 8mo. > 75% of salary ($89,970.14) $67,477.60 $5,623.13 monthly • Reciprocity question rik • Insurance/Tax question "Helps" (see handout) • IPPAC conference in Rock Island May 18th-20th Misc.: • ELGIN FIRE PENSION FUND MINUTES April 26, 2016 Meeting was called to order at 8:3o am by J. Henrici. Roll Call: Present: J. Nowicki,A. Bialek, R. Tripoli, D. Olkowski, Absent: J. Henrici Treasurer: D. Nawrocki Council: W. Freiberg Guest: Mike Piotrowski, B. Yocius Minutes Minutes of the January 26, 2016 meeting were reviewed and a motion to accept was made by R. Tripoli, seconded by D. Olkowski. Carried. Treasurer Report The meeting started off with a review of the Actuary report from Mr. Sharpe. An outline was sent to each member and attached.A motion to approve the report was tabled until next meeting. Council would check to see if one was required. M. Piotrowski presented the first quarter results. Skipping to page 13, the Board members were directed to the 3month performance. Overall the fund was down 1.1%but some of the funds were actually up. The new one Harding Loevner Emerging Market was up 6.6%. The Fixed income side showed an improvement, as reported by B.Yucius, of 1.8%. Rate changes by the Fed would be the indicator as to where the Market was going. Moving the Duration would be watched elm closely. Mesirow'acquisition of FMA was noted and a motion was made to authorize the letter to Mesirow documenting the change, to be signed by the Secretary and Treasurer, was made by A. Bialek, Seconded by R. Tripoli. Carried. There is no need to rebalance at this time as our allocations are very close to what they should be. Page 2 of the report itemizes the movements for the 2015 year. A motion was made to accept the report from Marquette and MVT by R. Tripoli, seconded by D. Olkowski. Carried. J. Nowicki, recused. -2- Invoices were received and a motion to pay the following were approved by R. Tripoli, seconded by D. Olkowski. Carried. Mesirow invoice Apr. May, June 2016 $12,967.16 Collins invoice Apr. May,June 2016 925.00 Unfinished business. Still no request from FF Hartman that resigned, for his contributions. r - 1 - Secretary Report Retired pension member Richard Lundy passed away on 4/9/16. A motion was made to approve a Widow Pension for Linda Lundy,wife,by R. Tripoli, seconded by D. Olkowski. Carried. "` Widow pension to begin on 4/10/16 Retired pension member William Misner passed away on 4/15/2016. He left no dependents. Security Administrator letter from the IDOI was presented. This is an update request from them. A motion was made to appoint A. Bialek to continue in this role for the Elgin Fire Pension, by R. Tripoli, seconded by D. Olkowski. Carried. Old Business None New Business An application for retirement was received from R.L. Newby to begin on 5/8/2016 (ist day). He has 3oyrs 8mo.And would receive a 75% pension of$89,970.14 ($5,623.13) monthly. A motion was made to accept his application by R. Tripoli, seconded by A. Bialek. Carried. Reminder of the IPPAC Convention in Rock Island on May 18, 19, 20.A motion was made to approve the cost for anyone wishing on the Board to attend by R. Tripoli, seconded by D. Olkowski. Carried. The secretary brought up a question to L&A about reciprocity.What would happen to a FF who took reciprocity from another town,but then ended up working a full 30 years with the department he went to? IDOI responded with an answer, which was handed out to the members. This was filed in each FF'file that had taken reciprocity. Misc. None Adjournment A motion was made to adjourn by R. Tripoli, seconded by D. Olkowski. Carried o9:35am. Attachments Reciprocity letter Filed Collins invoice Filed Mesirow invoice Filed Actuary report Filed Anthony Bialek, Recording Secretary Date approved rik - 2 - Elgin Fire Pension Fund Tuesday July 26, 2016 Agenda 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, Tuesday April 26, 2016 Treasurer Report: • Marquette, MVT, L & A reports • VENDOR INVOICE PAYMENT PROGRAM • Mesirow (MVT) invoices April 1 thru June 30, 2016 $15,050.00 July 1 thru August 30, 2016 $15,174.00 • IPPAC Annual membership 500.00 • Collins/Radja invoice July thru Sept. 925.00 Secretary Report: • FF contract settled. -7- members to receive pension increases and back pay amounts, based on new final salaries. This will be reviewed by D. Nawrocki and L & A, before presenting to the Board. • ULLICO Insurance for Board. Old Business: • Insurance/Tax question "Helps" (see handout) New Business: • Widow Shirley McLean passed away on 6/16/16. No dependents. • Retired Lt. FF Steve Berry passed away on 7/13/16. 63 yrs. Old. On pension for -8- years. • Widow pension for Linda Berry. • Richard Wilkening check request Misc.: • Arline irnmpnt• ELGIN FIRE PENSION FUND MINUTES July 26, 2016 Meeting was called to order at 8:3o am by J. Henrici. rk Roll Call: Present: J. Nowicki,A. Bialek, R. Tripoli, D. Olkowski, J. Henrici Absent: Treasurer: D. Nawrocki Council: W. Freiberg Guest: Mike Piotrowski, B.Yocius Minutes Minutes of the April 26, 2016 meeting were reviewed and a motion to accept was made by R. Tripoli, seconded by D. Olkowski with one correction.Amount for new Retired member R. Newby was adjusted to show correct amount. Carried. Treasurer Report M. Piotrowski started off with a review of the 2nd quarter. We are up over $70 million after the Market come back from the Brexit.The process of leaving the European Union will most likely take -2-years to complete and we will have to see what happens along the way. Many of the funds under performed, because of this occurrence, especially Emerging Markets. However, the Fixed Income portion showed a positive increase. Mesirow'purchase of FMA was discussed. M. Piotrowski explained that most all of the personnel From FMA was kept on with Mesirow and their job functions remained the same. He expects a smooth transition to continue but, they are on alert status to see if their performance improves. Style Drift was discussed, as shown on pg21 of the report, showing the characteristics of the fund, over the last 5 years. The smaller the circle the farther back in time the report goes. This portion of the report, shows all of the funds. The discussion shifted to B. Yocius and the fixed income portion of the fund. Interest rates had moved and some Bond purchases were made on a longer duration to capture this. Negative interest rates were discussed and why anyone would purchase them as they would show a negative earning.This would be a possibility as when rates went back up, an increase would be had by switching to a longer duration rate. A motion was made to accept the T-Report as given by R. Tripoli, seconded by D. Olkowski. Carried. Second and third Quarter invoices were presented from MVT. The Second Quarter one had been missed for payment.A motion to pay the following were approved by R. Tripoli, seconded by D. Olkowski. Carried.J. Nowicki recused. 3rd quarter July thru Sept. 30, 2016 $15,175.00 2nd quarter April thru June 30, 2016 $15,050.00 -2-Additional invoices were received and a motion to pay IPPAC plus Collins and Radja was made by R. Tripoli, seconded by D. Olkowski. Carried as follows. - 1 - C&lins and Radja 3rd quarter retainer July,August, September 2016 $925.00 • IPPAC Annual membership July 1, 2016 to June 30, 2017 500.00 Unfinished business. Still no request from FF Hartman that resigned,for his contributions. HELPS Insurance suggestion was tabled until next meeting. Secretary to get an estimate on costs for the program. Secretary Report The FF Contract was settled and approved by the City council.This would affect -7- retired members as their base salary used for computations would increase. A soon as the final amounts are established through Finance, Lauterbach and Amen will compute the back amounts each are to receive and their increase going forward. This will be reviewed by the Treasurer, D. Nawrocki and presented to the Board for approval. Retired pension widow Shirley McLean passed away on 6/16/2016. No dependents. Retired member Steve Berry passed away on 7/13/2016. He left a widow, Linda Berry.A motion to approve a Widow Pension for was made by R. Tripoli, seconded by D. Olkowski. Carried. Her pension amount will be $2566.89 for the month of July and continuing at $6631.14 monthly, with no increases thereafter. Old Business None New Business A notice from ULLICO was received concerning the insurance we carry covering Board Members. Our policy needs to be continued however, it was mentioned that they are going to be sold. M. Piotrowski would get the information to the Treasurer, D. Nawrocki for review. September 1 is the date the policy is up for renewal. A request was received, from retired member R.Wilkening, to stop his direct deposit and have a check mailed to him,until further notice. C. Collins was contacted and he stated that a pensioner had the right to request this. He did state that a signed written request should be received from the person requesting this. Discussion ensued about charging a fee to any pension member that requests this, to cover the cost of printing a check,vs direct deposit, and having it mailed to the City for signatures and then being mailed out again.A$50.00 fee was approved on a motion by J. Nowicki, seconded by A. Bialek,to start this process and any other member that would not this option. Carried. This will take affect with his August check. R. Wilkening, was informed,that this process of receiving a check,will take a few days and do not expect to receive your amount at the beginning re of the month. -2 - IJauterbach and Amen have this option, as other departments have a few pension members requesting this.This amount can be deducted right off the persons' pension amount.They were sent a copy of the signed request. Misc. None Adjournment A motion was made to adjourn by R.Tripoli, seconded by D. Olkowski. Carried o9:35am. Attachments Collins and Radja invoice Filed 2 MVT invoices Filed IPPAC invoice Filed Anthony Bialek, Recording Secretary Date approved r - 3 - Elgin Fire Pension Fund Tuesday Aug. 30, 2016 Agenda •- 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, Tuesday July 26, 2016 Treasurer Report: • Marquette, MVT, L & A reports Secretary Report: • FF contract settled. -7- members to receive pension increases. Original New Back pay J. Tobin $85,979.19 $88,535.99 $4,659.97 A. Spann 85,979.19 88,535.99 $2,960.93 D. Ackmann 85,979.19 88,535.99 $3,138.37 J. Dzadon 83,156.32 85,704.81 $2,346.68 R. Newby 89,970.14 97,189.42 $1 ,702.95 C. Ramirez 101 ,119.46 109,196.40 $5,860.52 K. Nelson 121 ,927.26 125,383.44 $3,810.48 R. Covert 121,927.26 125,383.44 $4,698.37 These will take effect in September. • New State Law regulating restrictions on expense reimbursements. Old Business: • Insurance/Tax question "Helps" (see handout) Estimated cost: 51 eligible (Widows and those solely on Medicare are not eligible). 51 checks per month x 12 months= 612 checks for the year possible. Per schedule, this would cost approximately, $1300.00 year. r • ULLICO Insurance for Board. Cost: $5,032. (Old 4,628.00) New Business: 3 Retirement application for Chief John Fahy. Last official day 10/10/2016. Pension start 10/11/2016 @74.17%. 29y 8m. Monthly pension $10,905.23 r Misc.: • Adjournment: r ELGIN FIRE PENSION FUND MINUTES August 3o, 2016 Meeting was called to order at 8:3o am by J. Henrici. Roll Call: Present: J. Nowicki,A. Bialek, R.Tripoli,J. Henrici Absent: D.Olkowski Treasurer: D. Nawrocki Council: C. Collins Guest: Minutes Minutes of the July 26, 2016 meeting were reviewed and a motion to accept was made by R. Tripoli,seconded by J. Nowicki with one correction. Henrici was shown present at Meeting in July. Treasurer Report D.Nawrocki reviewed the reports from Marquette. Overall the preceding months went very well for investments. @$2 million is expected to be received from Tax levies and it would be, along with maturing items,reinvested. This would be discussed in detail at the next meeting. A motion was made to approve the Treasurer report by J. Nowicki,seconded by R. Tripoli. Carried. Unfinished business. Still no request from FF Hartman that resigned,for his contributions. HELPS Insurance suggestion was discussed. Secretary reported did a study on how much the cost would be for the Pension Fund. Widows and members that are just on Medicare, do not qualify for the program. Cost is based on how many checks are written for the year.At the end of each year, an invoice would be received based on the number of checks sent out.If all the members that are eligible,signed up for the program, it would cost @$1300.00 annually.The program allows participating members to be able to deduct $3000.00 off of their income taxes each year for Health insurance. A motion was made to allow Lauterbach and Amen to set up and run the HELPS program by.A. Bialek,seconded by R.Tripoli. Carried. Lauterbach and Amen will send and agreement letter to set up,contact and operate the program with the Retirees by next meeting,for review. Secretary Report With the approval of the New Firefighter Contract,-8-retired members were due increases and back pay,based on the new salary amounts. Back pay and the new amounts were submitted to Lauterbach and Amen and reviewed by the Treasurer, D. Nawrocki for approval.A motion was made to approve the following increases by A. Bialek, seconded by R.Tripoli. Carried. - 1 - Name Original amount New salary New Pension John Tobin $ 85,979.19 $ 88,535.99 Anthony Spann 85,979.19 88,535.99 Doug Ackmann 85,979.19 88,535.99 Jeff Dzadon 83,156.32 87,783.81 Robert Newby 89,970.14 97,315.00 Carlos Ramirez 101,119.46 106,655.91 Ken Nelson 121,927.26 125,383.44 Randall Covert 121,927.00 125,383.44 This will take effect on the September checks. Old Business Board Liability Insurance, is up for renewal. C. Collins commented on the reliability of the company we are with and made recommendation to stay with them. The cost would be $5,032.00 for Sept. 1, 2016 to August 30, 2017. This is an increase from $4,628.00. Increases are due to rising costs from making payouts,overall, and the problems of the State of Illinois concerning their Debt. A motion was made to accept the coverage from ULLICO and pay the invoice of$5,032.00 by J. Nowicki,seconded by R. Tripoli. Carried. New Business A retirement application was received from Fire Chief John Fahy. His last official day would be 10/10/16. His application was tabled until next meeting, pending the filing out and submitting all of the required paperwork. Misc. C. Collins reminded everyone of the upcoming Pension Seminar in Schaumburg on Oct.4th and 5th. There is also a Pension Seminar put on by the IFFA. A motion was made to pay for whichever seminar that the members could attend,to comply with State Statute,by A Bialek, seconded by R.Tripoli. Carried. C. Collins also,discussed his firms'intentions to continue representing the Elgin Fire Pension fund. The firm is considering expanding some of its operations. Freiberg had left the firm and taken on different with the SS Administration. J. Henrici mentioned that he would be retiring, as a Board member,by the end of the year. Adjournment A motion was made to adjourn by R.Tripoli,seconded by J. Nowicki. Carried 09:35am. Attachments Radja ULLICO invoice Filed A 2c-l6 Anthony Bialek,Recording Secretary Date approved -2- r 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 27, 2016 has been Cancelled. The next regular meeting will be October 25, 2016. Anthony Bialek Secretary Elgin Firefighter's Pension Board r ELGIN FIRE PENSION FUND MINUTES October 25, 2016 Meeting was called to order at 8:3o am by J. Henrici. Roll Call: Present: J.Nowicki,A. Bialek, R.Tripoli,J. Henrici, D. Olkowski Absent: Treasurer: D. Nawrocki Council: Guest: Paul from Marquette Minutes Minutes of the Aug. 30,2016 meeting were reviewed and a motion to accept was made by R. Tripoli,seconded by J.Nowicki. Treasurer Report D. Nawrocki reviewed the reports with Paul from Marquette. The main focus was setting up a search for a possible replacement for one of the managing firms.This would be done and discussed in detail at the next regular meeting. Bond portion of the fund still sluggish but expect movement once the election process is finished.Which way is still to be determined. Wells Fargo was discussed,concerning all of the news about their dealings with the public.The pension fund is not necessarily affected as the Institutional side of the company is separated from the public.Although the State was pulling a large portion of their holdings with them, it was felt that dealings would remain the same,for now,with Wells Fargo. Rebalancing was also discussed. Once money from the State was received,this would be accomplished,sometime in December,and the Board would be notified when it was complete. Along with this,the Funds Investment Policy would be reviewed and updated in the beginning of the 2017 year. Municipal Compliance report was submitted to the City Council as required. A motion to approve this was made by R.Tripoli,seconded by D. Olkowski. Carried. -3-Invoices were received.All were for October 1, 2016 through December 31, 2016 A motion was made to approve the following by R.Tripoli,seconded by A. Bialek. Carried. Mesirow Financial $14,353.05 Collins and Radja 950.0o The third for MVT of$15,215.00 was motioned to approve by R.Tripoli,seconded by D. Olkowski. Carried. J. Nowicki recused. A motion was made to approve the Treasurer report by J. Nowicki,seconded by R.Tripoli. Carried. Unfinished business. Still no request from FF Hartman that resigned,for his contributions. Secretary Report - 1 - An example of all the records that the Pension Fund was to keep on members,was presented to the Board members. Records of members are updated when info is received and every-2-years, all active members are personally reviewed by the Secretary/Clerk. Old Business No request from FF Hartman for funds who had resigned from the Fire Dept. New Business A retirement application was received from Fire Chief John Fahy. His last official day would be 10/10/16. All records and application for pension were received.A motion was made to accept his application for pension by A. Bialek,seconded by D.Olkowski. Carried.All time and amounts were reviewed by Lauterbach and Amen and acknowledged by D. Nawrocki the Board Treasurer. His amount is as follows: Service time 29 years-8months Percent 74.17% Monthly $10,905.23 Misc. Next IPPAC Seminar is on December 2,2016. A motion was made to approve payment for any member wanting to attend by A. Bialek,seconded by R.Tripoli.Carried. J. Henrici announced,to the Board members,that he would be retiring,as a Board member,by the end of the year. Replacement would be made by the Mayor and discussed at the first meeting 1n 2017. Adjournment A motion was made to adjourn by R.Tripoli,seconded by J. Nowicki.Carried o9:35am. Attachments Collins/Radja invoice Filed Mesirow invoiced Filed MVT invoice Filed 7- 2 -2a(7 Anth., . 4 , , Bialek, Recording Secretary Date approved -2-