Loading...
HomeMy WebLinkAbout2017 Elgin Fire Pension Fund Agendas & Minutes Elgin Fire Fighters Pension Fund Please be advised that the meeting scheduled will be changed due to unavailability of enough Bard members to have a Quorum. Elgin Fire Fighters Pension Fund Board Previously scheduled for Tuesday, January 10, 2107 has been rescheduled for: Tuesday, January 24, 2017 at 09:30am 1st floor Conference room South Wing Anthony Bialek Secretary Elgin Firefighter's Pension Board ELGIN FIRE PENSION FUND MINUTES January 24, 2017 Meeting was called to order at 9:30 am by D. Olkowski. r Roll Call: Present: J. Nowicki, A. Bialek, R. Tripoli, D. Nawrocki, D. Olkowski Absent: Council: Guest: M. Pitrowski, B. Yucius Minutes Minutes of the Oct. 25, 2016 meeting were reviewed and a motion to accept was made by R. Tripoli, seconded by J. Nowicki. Carried. First part of the meeting centered on electing a President and Secretary. Dave Olkowski was nominated by A. Bialek for President. No other nominations. A motion was made to appoint D. Olkowski as President was made by R. Tripoli, seconded by A. Bialek. Carried. Anthony Bialek was nominated to continue as Secretary, by R. Tripoli. No other nominations. A motion was made to appoint A. Bialek to continue as Secretary, seconded by D. Olkowski. Carried. With the retirement from the Pension Board of J. Henrici, Debra Nawrocki was appointed by the Mayor to fill his position. All felt this was appropriate as she is also the Treasurer of the Pension Fund. rTreasurer Report M. Pitrowski started off the meeting with a review of 2016. Noting that Mesirow was still on alert we proceed to page 2 of the report. The Board went over the rebalancing that was done at the end of 2016.All movements were complete that complied us with our Investment Policy and State Statutes concerning percentage allocations. Moving to pages 13 and 14, our yearly performances were reviewed. Noting that the report only showed through October, he stated he would forward a finalized analysis to the Board members. Our Benchmark was not quite reached (6.9%vs 7.4%). This was due in large part to the Fixed Income side of the Fund and Mesirow poor performance. All of the Managers were discussed on their performance. J. Nowicki suggested underweighting International and placing more toward Domestic Stocks. Both pros and cons for this ensued. M. Pitrowski was not concerned with how the Portfolio, at present, was set up and felt we should be fine because of how our Investment Policy is set up to be able to move quickly if needed. It was decide to remain were we are at for the present, keeping Mesirow on alert status. B.Yucius, from MVT, gave an overall Bond Market analysis and what he thought the Feds may do concerning interest rates. Rate increase for 2016 did not happen as expected but this wold probably not be the case in 2017. This will be watched closely as this part of the portfolio had not making the benchmark. A motion was made to accept the Treasurer report as given by A. Bialek, seconded by D. rft Olkowski. Carried. - 1 - The Board proceeded to discuss the Manager search that was presented by M. Pitrowski. -2- . stood out as replacements or additions. Kayne and Systematic seemed to offer the most potential. Core vs Value along with getting a good rate would also be considered with the potential returns. Details were reviewed in their management styles and discussed.This would rbe in line with our Investment Policy review as required by the State. Invoices were presented to the Board. A motion was made to pay the following invoices,by R. Tripoli, seconded by A. Bialek. Carried. Collins and Radja Jan.i, through March 31, 2017 $ 950.00 Mesirow Jan. 1, through March 31, 2017 $14,551.94 A separate invoice for MVT was motioned to approve by A. Bialek, seconded by D. Olkowski. Carried. J. Nowicki recused. MVT Jan. 1,through March 31, 2017 $15,085.00 Unfinished business. Still no request from FF Hartman that resigned, for his contributions. Secretary Report 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 eph No request from FF Hartman for funds who had resigned from the Fire Dept. New Business It was reported that retired member Robert F. Smith passed away on 12/18/16. He left a widow. A motion was made to approve a widow pension for Patti Smith starting on 12/19/16 by R. Tripoli, seconded by D. Olkowski. Carried. Meeting dates for 2017 were approved for the last Tuesday of each month, unless otherwise posted, on a motion by A. Bialek, seconded by J. Nowicki. Carried. The secretary noted that retired member R. Wilkening, had opened an account at a bank and would resume his direct deposit to the new account,thereby eliminating his handling fee. COLA increases were handed out for the members to view. This is by State Statute and no motion was needed. The HELPS program, that was presented and approved in 2016, would start with the January checks. Only-1-person signed up for the program. This would be a cost of$100.00 for the year and billed at the end of 2017. It was reported that FF Carl Decarlo had resigned from the Fire Department, moving on to a different Job. He had only-9-years in the fund and would not qualify for a deferred pension. "" He will request his contributions at a later date. - 2 - Misc. • None. Adjournment A motion was made to adjourn by R. Tripoli, seconded by J. Novicki. Carried 10:15am. Attachments Collins/Radja invoice Filed Mesirow invoice Filed MVT invoice Filed Anthony Bialek, Recording Secretary Date approved r r - 3 - Elgin Fire Pension Fund Tuesday February 28, 2017 Agenda 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, Jan. 24, 2017 meeting Treasurer Report: • Marquette, MVT, L & A reports • Manager Search • Investment Policy review and update > Other investment opportunities. (City Council) C • Mesirow alert > Overdraft fee $17.77 Secretary Report: • FF Jason Marshall request for contribution refund. $5,150.92 • Old Business: • Resigned FF Hartman still no request for funds • Resigned FF Decarlo still no request for funds New Business: • -3- new hired FF applications > Austin Lawrenz age 26yr > Justin Lee 29yr > Kellen Smith 31 yr C Misc.: Adjournment: ELGIN FIRE PENSION FUND MINUTES February 28, 2017 Meeting was called to order at 8:30 am by D. Olkowski. Roll Call: Present: A. Bialek, R. Tripoli, D. Nawrocki, D. Olkowski Absent: J. Nowicki Council: C. Collins Guest: M. Pitrowski. Allison Barrett Minutes Minutes of the Jan. 24, 2017 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 the Review of Mesirow. M. Pitrowski stated that Mesirow had some very large clients that are closing their accounts with them and expected to see others do the same. Performance over the past few years and really under performing in 2016 was the reason. After further discussion and review of our Manager Search, it was decided to close the account with Mesirow and go with Kayne Anderson. A motion was made to do this by R. Tripoli, seconded by A. Bialek. Carried. M. Pitrowski would make the needed contacts and all of the forms and contract to the Treasurer for review. It was felt that 8o Basis points would be appropriate for us due to the fact that the Elgin Police Pension Fund also has an account with them. Discussion then centered on the Fixed portion of the fund. Alternate investment options were discussed, concerning Bonds and possibly Real estate type fund. MVT'performance was the focus as they have been underperforming for quite a while. The Management style has focused on shorter term securities, being more conservative.The Police Pension uses J.P. Morgan, along with MVT and splitting the amount with another firm and or looking more toward Corporate Bonds,was discussed. After an Asset Allocation Study is done, the Investment Policy will be reviewed and updated, including all the movements and other changes discussed. An overdraft penalty noticed was received from Wells Fargo of$17.77. This would be credited on the next Mesirow invoice. A motion was made to accept the Treasurer Report as given, by A. Bialek, seconded by R. Tripoli. Carried. Secretary Report A request for refund of contributions was received from FF Jason Marshall. He resigned from the Fire Department on Jan 27, 2017 and his total amount is $5,239.63. This would be checked by the Treasurer and a check would be mailed to him for that amount, on a motion made by D. Olkowski, seconded by A. Bialek. Carried. Old Business No request from FF Hartman, FF Decarlo for pension fund contributions. - I - New Business -3-Applications to get into the Pension Fund were made by the following newly hired Firefighters. Austin Lawrenz age 26, Justin Lee 29 and Kellen Smith 31. A motion was made to approve the applications by R. Tripoli, seconded by A. Bialek. Carried. A side discussion was held on Kellen Smith. It was reported that he was not a citizen of the United States. Hiring him and admitting him into the Pension fund had been discussed with the Board Attorney. No legal issues hinders him from being a Firefighter or being in the Fund as long as he follows the rules and makes his proper contributions. A. Bialek had discussions with him and he does plan on becoming a citizen. All three are now in the Academy in Romeoville. Questions have arisen with the possible conflict of interest with J. Nowicki being on the Board and employed with MVT. This would be discussed at next meeting in April. Misc. C. Collins discussed Attorney Duda'proposal for a court discussion on how attorney' fees are paid. The proposal would in effect, make the Pension Boards liable to pay a disability applicant' attorney fees if and when the pension was approved. This is still in the court system. Adjournment A motion was made to adjourn by R. Tripoli, seconded by A. Bialek. Carried 9:45am. Attachments None Anthony Bialek, Recording Secretary Date approved _ _ 4 ,... 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 28, 2017 has been Cancelled. The next regular meeting will be April 25, 2017. Anthony Bialek Secretary Elgin Firefighter's Pension Board r Elgin Fire 'Pension Fund Tuesday April 25, 2017 Agenda .. 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, Feb. 28, 2017 meeting Treasurer Report: • Olkowski re-election • Sharpe Report • Marquette, MVT, L & A reports • Kane Anderson addition • Investment Policy review and update • Collins and Radja invoice April, May, June 2017 $950.00 • MVT Invoice for Jan., Feb., March 2017 $15,085.00 • Mesirow Overdraft fee $17.77 returned • Discussion of Fixed income Secretary Report: • IPPAC seminar in the Quad Cities May • L&A agreement renewal for -5- years • Training receipt for D. Nawrocki for first part of required 32hrs of training > $500.00 Old Business: • Resigned FF Hartman still no request for funds • Resigned FF Decarlo still no request for funds New Business: • -1- new Retirement application ➢ Lt. Jim Hicks 28yrs. 2months 70.42% $6575.49 monthly • -1- new FF application ➢ Mark Schneider 35yrs old. Was on Champaign FD and is a medic already. • Retired member, John Williams, overpayment discussion and Order to proceed. Misc.: Adjournment: r r ELGIN FIRE PENSION FUND MINUTES April 25, 2017 Meeting was called to order at 8:3o am by D. Olkowski. Roll Call: Present: A. Bialek, R. Tripoli, D. Nawrocki, D. Olkowski, J. Nowicki Absent: Council: Radja Guest: M. Pitrowski. Bill Yucius Minutes Minutes of the February 28, 2017 meeting were reviewed.A correction was requested by D. Nawrocki,to remove the statement about term limits concerning an appointed member as being of-3-years. Appointed members, made by the Mayor, have ongoing positions until a new mayor is elected or changed by the existing mayor.A motion to accept the minutes with the change was made by R. Tripoli, seconded by D. Olkowski. Carried. J. Nowicki abstained. Jumping ahead in the agenda, D. Olkowski'term as an active firefighter board member would be up on May 1, 2017. His position was open to all active Firefighters. D. Olkowski was still interested in running. The notice was posted in all stations and via e-mail to all active members and to let the Secretary,Anthony Bialek, know if someone else was interested,by April 21, 2017. No one contacted the Secretary so, an elected was not needed. A motion was made by A. Bialek and seconded by R. Tripoli,to accept this result, carried. D. Olkowski term of office on the Board would run from May 1, 2017 through April 3o, 2020. Treasurer Report The Actuary report from T. Sharpe was set up by teleconference. Summarizing the report there were-3- areas of changes which brought improvements to the Fund. First there was a change called the Mortality Improvement Scale. (MP 2015) These will be followed by annual updates which will more accurately reflect the true annual average mortality age. This has resulted in lowering the Scale for 2014, 2015, and 2016, used in this report. There was no unexpected changes in the annual fund investment return. 6.78%for 2016. There was no unexpected changes in the average salary increase even with the back pay of the COLAs due to contract ratification. All of these allowed for only a slight increase in the City's Tax Levy$6,167,330 (2016)to $6,268,458 (2017). This helped to increase the percent funded from 45.6%to 47.5%. A question was asked about the Age and Service Distribution of the report. A large portion of the active roles includes many members that can retire because they have over 20+ years of service. Does leaving earlier and receiving a pension longer cost more than leaving later at a higher rate of pension. According to the analysis it does not affect the fund dramatically. It is basically a "wash"in cost. A detailed copy of the Report is filed with the Secretary and will be used for the Municipal Compliance Report, as required by Public Act 95-95o. - 1 - The addition of Kane Anderson and removal of Mesirow was completed. This would be noted in the Appendix of the Investment Policy to the State. Mesirow Overdraft fee was returned and deposited. ($17.77) An invoice for Collins and Radja for April, May, and June of 2017 was received for $950.00. A motion to approve was made by A. Bialek, seconded by R. Tripoli. Carried. A motion was made to approve the invoice from MVT of$15,085.00 for Jan., Feb., and March of 2017 by R. Tripoli, seconded by D. Olkowski. Carried. Nowicki recused. As requested, the discussion of the fixed income portion of Marquette report would be moved to the end of the meeting. The 1st Quarter Fund Report was given by M. Pitrowski. This was started with stating that the termination of Mesirow and addition of Kane Anderson was complete. Lower fees would be received because the EPD also uses them as one of their Managers. Total Fund Composite was up to $76.3 million. The Market was doing well so far, in 2017 with a total YTD composite of 4.5%.Although US Equities underperformed slightly, Non US Equites performed very well. How the Market does depends on overseas issues, such as the election in France and Brexit, along with the Feds and what they do to the interest rate. Adding a Real Estate component to the Portfolio is a way of diversifying the Fund. J. Nowicki remarked that he was not against this but noted that funds are not always immediately available. The Fund has other liquid investments that provide for immediate access to cash if needed. Going to a BBB rating in Corporate Bonds would be another way of adding value and income to the Fund. REITs rwere discussed briefly but are generally not liked. Portfolio options were discussed as referenced on pg. 1 in Exhibit II. Various options were presented with projected earnings potential for each option. The Equity portion of any fund is where you will get the highest returns. Investments in Fixed Income markets move more slowly and do not have a high rate of return. Annualized-10-yr. rate of returns were shown. A Motion was made to approve the Treasurer's report and discussion by A. Bialek, seconded by R.Tripoli. Carried. Secretary Report Lauterbach and Amen agreement for the next-5-years was submitted for review. D. Nawrocki stated that the increases were very minimal over the term of the contract and that they have improved greatly since the addition of our new account representative, Steve Earnhardt. A motion was made to accept the contract as presented annually, for the -5-year period, By J. Nowicki, seconded by D. Olkowski. Carried. Training receipt from D. Nawrocki was received for new Trustee training as required by the State, for $500.00. This will be done on-line and will include all of the training hours needed for A motion was made to reimburse D. Nawrocki by R. Tripoli, seconded by D. Olkowski. Carried. The Secretary reminded everyone about the IPPAC Seminar coming up at the end of the Month, (fliii4 in the Quad City area. Old Business - 2 - Still no request from FF Hartman, FF Decarlo for pension fund contributions. The Secretary has reminded them that their contributions are still there for their request. °'' New Business -1-Application was received to get into the Pension Fund. Mark Schneider was hired on 4-14-17. He is -35-years old and had been a former member of the Champaign Fire Dept. He will be a Tier I participant and has agreed to make the necessary contributions as required by State Statute.A motion was made to accept him into the Pension Fund by A. Bialek, seconded by D. Olkowski. Carried. -1-New Retirement application was received from Lt. Jim Hicks. He retired on 4/2/17 with 28 years and 2 months of service equaling a 70.42% pension of salary being $6,575.49 monthly. This was reviewed by the Treasurer as submitted to Lauterbach and Amen for calculation. A motion was made to approve the pension by A. Bialek, seconded by D. Olkowski. Carried. Discussion centered on an error made in pension calculation of Retired member John Williams. His initial pension was approved for 21 yrs. 1 month back in 2005. This was a Deferred Pension because he was not 50 years of age at the time. An error was made by the accounting firm, KNOX Accounting, calculating him at 22years 1 month credit. This firm was replace in 2006 by Lauterbach and Amen and the error was not caught when the information was transferred over. When he became 50 years old and started to collect his regular pension, he was actually receiving 2.5% more than he should have been. This continued through March of 2017 and was caught by the City Auditors when questioning his amount. Mr. Radja,the Pension Attorney for the Board, stated we had every right to put his pension payment to the proper amount but, because it was more than-3-years before it was caught, we could not make the pensioner repay the amount. However,this was tabled until next meeting. After much discussion it was motioned to put Retired member J. Williams's pension back to the proper amount beginning with his April 2017 check, by A. Bialek, seconded by D. Olkowski. Carried. The correct amount starting in April 2017 is $3961.02. It was noted that he has a QILDRO in his file from a former Spouse. She will continue to get the same amount and increases as stated in the QILDRO order. The Board attorney will take care of notifying Mr. Williams and his former spouse Keri Williams of the reason for the action. At this point,J. Nowicki and B. Yucius excused themselves from the meeting. The Fixed income portion of the Fund was discussed centering on MVT and their performance. It was recommended that the Fund should diversify its Fixed Income Holdings by using two managers that would complement one another. The members present were not happy with how MVT has been performing with the Fixed Income holdings. Most of the Bonds were of short duration and this has been the intent hoping for a Fed change in rates. J.P. Morgan is used by the EPD but the fund Fire Pension does not meet their requirements for new accounts. The EPD was grandfathered. Exhibit III of the report presented a Fixed Income Intermediate Search and was reviewed by the °1 members present. Each manager has different styles. Each managers performance, the impact on our fund and portfolio styles discussed earlier,were talked about at length. - 3 - It was decided to invite-3- managers, from the list, BMO, Mesirow, and C.S. McKee for interviews at the next Board meeting. M. Pitrowski would make the contacts for review,limiting each to about 20 minutes. Discussion turned toward Real Estate holding. Even Commodities were discussed but they were way too volatile to get into. There was only one that met the requirements the State Statute, at present concerning Real Estate and all thought this was a good idea. A motion was made by R. Tripoli to move 5% into the Real Estate Fund. Seconded by D. Olkowski. Carried. Misc. None Adjournment A motion was made to adjourn by R. Tripoli, seconded by A. Bialek. Carried ii:ooam. Attachments MVT Invoice Filed Collins and Radja Invoice Filed Williams new Pension rate and info filed in his personal file Anthony Bialek, Recording Secretary Date approved r r - 4 - Elgin Fire Pension Fund Tuesday May 30, 2017 Agenda 08:30am r City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, May 30, 2017 meeting Treasurer Report: • Marquette, L & A reports • Principal entry Queue • BMO review Secretary Report: • HB 5088 Municipal Compliance Report Old Business: • Resigned FF Hartman still no request for funds (filed) • Resigned FF Decarlo still no request for funds (filed) New Business: • Death of retired member Harley Olson 6/2/17 > Approval of Widow Pension for Darlene Olson 6/3/17 Misc.: Adjournment: r ELGIN FIRE PENSION FUND MINUTES May 3o, 2017 Meeting was called to order at 9:00 am by D. Olkowski. Roll Call: Present: A. Bialek, R. Tripoli, D. Nawrocki, D. Olkowski, J. Nowicki Absent: Council: Collins Guest: M. Piotrowski Presenters: Mesirow: Peter Hegel Andrew Pataky BMO Danila Mardarovici Kevin Gergits C.S. McKee Eugene Natali Jack White Presentations The Board started off the meeting, of the -3-firms in attendance,to facilitate the presenters. Each firm presented an overview of their company's investment style, performance and how they would best compliment the Elgin Fire Pension Fund. Each firm was limited to -20- minutes. Under consideration was the Fixed Income portion of the Fire Pension Fund. Complete presentation packets were handed out and filed with the Secretary. J. Nowicki remained for the presentations for listening purposes only. Minutes Minutes of the April 25, 2017 meeting were reviewed. A correction was requested by J. Nowicki, to only include him in portions of the meeting that he was in attendance for. A motion was made to accept the minutes as corrected, by R. Tripoli, seconded by D. Olkowski. Carried Treasurer Report Marquette's Flash report was presented by M. Pitrowski. Portions of the fund are doing very well so far this year with a total composite of 5.8%YTD, compared to our benchmark of 5.4%.Areas lagging slightly are Fixed Income and US Equities. The entry queue required by Principal Global was discussed. Investment into the fund is on hold but was not communicated to Marquette or the Board at the time of the approval. Movement of capital into the holding should take place shortly. M. Pitrowski will inform the Board of the status. -2- Invoices were submitted for approval. A motion was made to pay the listed amounts by R. Tripoli, seconded by A. Bialek. Carried Marquette June through August 3o, 2017 $10,000.00 State Compliance Fee for 2017 8,000.00 rh A motion was made to approve the report as presented by M. Pitrowski from Marquette,by A. Bialek, seconded by R. Tripoli. Carried. - 1 - Secretary Report Retired member John Williams was sent a letter about his pension amount. He still has not responded to the Board Attorney. His phone number has been disconnected. The Secretary will continue to try to get in touch with him. Discussion centered on the overpayment made to him. The Board approved reducing his pension to the correct amount effective with the April 2017 pension payment. It was decided, after discussion the issue with C. Collins, board attorney, that we could recoup the amount by using the annual COLAs to offset the overpayment, until payed back, not to include interest. This would not start until January 2018. This was approved on a motion by J. Nowicki, seconded by D. Olkowski. Carried. Old Business Still no request from FF Hartman, FF Decarlo for pension fund contributions. New Business Discussion of the presentations commenced. J. Nowicki excused himself from the decision. R. Tripoli left after the discussion and made his recommendation prior to leaving. Fees were as follows; Mesirow 2obps BMO 21bps McKee 24bps All three did well and discussion centered on their fees and any differences they had in investment style. It was decided to choose two firms that would complement each other. McKee and BMO were the firms that were chosen. M. Pitrowski to see if C.S. McKee would lower their fees from the 24bps. The Board Attorney was directed to review the contracts for approval. A motion was made to invest one half each of the Fixed Income portion of the Fund, closing the MVT account, with C.S. McKee and BMO, pending review and approval of the Board Attorney, C. Collins. This was made by D. Olkowski, seconded by D. Nawrocki. Carried. It is noted that J. Nowicki and R. Tripoli were absent for the vote. Misc. None Adjournment A motion was made to adjourn by D. Olkowski, seconded by A. Bialek. Carried 11:2oam. Attachments Compliance fee Filed Marquette invoice Filed C - 2 - Anthony Bialek, Recording Secretary Date approved r r - 3 - Elgin Fire Pension Fund Tuesday June 27, 2017 Agenda 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: • Minutes: • Minutes, May 30, 2017 meeting Treasurer Report: • Marquette, L & A reports • Principal entry Queue • BMO review Secretary Report: • HB 5088 Municipal Compliance Report Old Business: • Resigned FF Hartman still no request for funds (filed) • Resigned FF Decarlo still no request for funds (filed) New Business: • Death of retired member Harley Olson 6/2/17 > Approval of Widow Pension for Darlene Olson 6/3/17. Continues at what Harley was receiving but no increases. $4,420.94 Misc.: Adjournment: ELGIN FIRE PENSION FUND MINUTES June 27, 2017 Meeting was called to order at 08:30 A.M. By D. Olkowski. Roll Call: Present: D. Olkowski, R.Tripoli, D.Nawrocki,J.Nowicki Absent: T. Bialek Counsel: C. Collins Guest: M. Piotrowski Minutes The Minutes of May 30 2017 Meeting were reviewed; Motion made by J. Nowicki, 2"d D.Nawrocki to accept Minutes. Motion carried. D. Olkowski opened the meeting by a statement regarding the on-going. process to improve the performance of the fixed income management yield,and said the candidates reviewed were highly qualified. Treasurer Report The treasurers report opened with M. Piotrowski stating the Fund is continuing to show gains; the month of May 2017 had good returns. Assets currently listed 77.7 Million. The Property tax installments will yield approx. 2.2 Million which will show the Fund near 80 Million. YTD returns show 7.3 %yield. Non-U.S. Equities are strongest performers right now. Financial Report: D. Nawrocki reported the Tax disbursement due July 14`h is Estimated to be upwards of $500,000. The Kayne Andersen Funds are up 12% currently. Fixed Income: The C.S. McKee Agreement has been completed,account has been opened and waiting to fund it. At this time the B.M.O.Agreement has not been executed. The Board has been advised to review the B.M.O agreement terms,the history of B.M.O participation in Downstate Firefighter and Police Pension Funds,and to offer a counter proposal for agreement .After lengthy discussion it has been determined to table until the July 2017 Meeting,any further movement of some fixed income funds,to further evaluate the Board's options. The Board will review the Investment Policy next meeting. D. Nawrocki reported the Funding Ratio is a Year behind;the fund does show the current year is positive. Old Business: No request for refunds from Hartman,or Decarlo . Still no contact with J. Williams,regarding his situation. New Business: The recent passing of Retiree Harley Olson,the Board approved the Widow's pension of 4,420.90 rmonthly to Mrs. Harley Olson. Motion J. Nowicki, 2" R. Tripoli, motion carried. Adjournment Motion made to adjourn,0925 am . Carried. Respectfully Submitted: R.Tripoli;Acting Recording Secretary Date Approved: C C r Elgin Fire Pension Fund Tuesday July 25, 2017 Agenda ^ 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, June 27, 2017 meeting Treasurer Report: • Marquette, L & A reports • Principal entry Queue • BMO review • IPPAC annual membership invoice July 2017 to June 30, 2018 $500.00 • Collins/Radja quarterly invoice July, Aug., Sept., 2017 $950.00 Secretary Report: • HB 5088 Municipal Compliance Report • New FF Mark Schneider Reciprocity letter • Renewal application for Board insurance • Tim Bowen on Liability insurance Old Business: • Resigned FF Hartman still no request for funds (filed) • Resigned FF Decarlo still no request for funds (filed) New Business: • Disability application from FF Rinenbach. (Back injury) • -3- new FF applications Start 7/14/17 > Michael Manka > Jamie Roehrig r > Kevin Witt Misc.: j :wewuinofpy ELGIN FIRE PENSION FUND MINUTES July 25, 2017 Meeting was called to order at 9:oo am by D. Olkowski. Roll Call: Present: A. Bialek, R. Tripoli, D. Nawrocki, J. Nowicki Absent: D. Olkowski Council: Guest: M. Piotrowski, B.Yucius, Tim Bowen, Hartwell Minutes Minutes of the June 27, 2017 meeting were reviewed as recorded by R. Tripoli. A motion was A. Bialek, seconded by D. Nawrocki. Carried Treasurer Report B.Yucius started off the T-Report with a short review of MVT. Unfortunately, this would be his last review for us as we have terminated their relationship with the Fund, as of July 31st, because of poor performance over the past few years. He will be missed as he has always been very informative and up front with the Pension Board. The Fund is well positioned for the next two managers. M. Pitrowski continued with a Quarterly review of how the Fund is doing so far this year. The 2nd Quarter shows the Fund at slightly over $80 million. Cash was a little higher due to money coming in from the State but, this will be used for paying benefits. Because the Economy and Market are doing very well,the Equity portion of the fund is doing very well so far this year. This is improving the Annualized track record and is expected to continue. Of note, Kane Anderson had a 6.2% return for the short time we have had them. Still no word on Principal Investment. We are the next one to be acquired by them but, we are on hold as they have stopped taking new money into their holdings. This is unusual but, this is a common practice of theirs as they tend to be conservative and do not take in new investors unless they can actually do well with the invested new money. Should be hearing from them shortly. A question was concerning moving into Growth vs Value Holdings. This is watched constantly but, was not recommended at this time. P21 of the financial report was reviewed covering this. The Board Attorney had made all of the changes and recommendations to BMO and they had accepted them. A motion was made to accept the contract with BMO by A. Bialek, seconded by D. Nawrocki. Carried. J. Nowicki recused. The revised Investment Policy was then reviewed. A few items were changed to reflect the new holdings. A question was brought up about accepting Triple `B' (BBB) grade Corporate Bonds. M. Pitrowski explained that this allows the investor to gain quite a bit in value to the holding and restricting them to 'A' or better reduces this advantage. Their track record shows that they have been doing well with this however, this is a change from the conservative approach that the Fire Pension Fund has followed over the past many years. It was pointed out on pg. 20 that a section on Permissible investments was included in the policy. A change was made on page 22 to leave the minimum percent at 35% in the Fixed Income portion of the Fund. - 1 - A motion was made to accept the changes to the Investment Policy by A. Bialek, seconded by D. Nawrocki. Carried. Vote tally: R. Tripoli,A. Bialek, D. Nawrocki, YES. J. Nowicki, NO. (Concerning the "BBB" allowance for Corp. Bonds.) Two invoices were received: IPPAC Annual Membership from July 2017 through June 30, 2018. $500.00 Collins/Radja quarterly retainer. Jul, August, September 2017 $950.00 A motion was made to pay both of these by A. Bialek, seconded by D. Nawrocki. Carried Secretary Report The Secretary was directed to send new FF Mark Schneider, a letter informing him that he still needs to settle his Reciprocity agreement with his former department pension fund. He has requested reciprocity and has started the required 1% extra taken out of his check as required by State Pension Statute. However, he has not paid back his former Fire Department Pension Fund the required amount yet. This was done on a motion from J. Nowicki, seconded by R. Tripoli. Carried. HB 5088, Municipal Compliance Report, was approved on a motion by R. Tripoli, seconded by A. Bialek,to be sent to the City Council as required. Carried. Tim Bowen the Broker from Mesirow Insurance Services was on hand to explain and discuss Fiduciary Liability Insurance and the-2- companies that offer it. After going over the differences with the Board members on coverage between the ULLICO and EUCLID, it was recommended that we continue with ULLICO as they provided the best coverage. A motion was made to continue with ULLICO by J. Nowicki, seconded by A. Bialek for the annual fee of$5,105.00. Term of coverage is from Sept. 1, 2017 through August 30, 2018. Carried. Reminder that the IPPAC Seminar will be held in Schaumburg on September 21st and 22nd. This will satisfy the -16- hrs. of annual training required by Statute. Old Business Still no request from FF Hartman, FF Decarlo for pension fund contributions. New Business -3- New FFs were hired on 7/14/17. A motion was made to approve them into the Pension Fund by J. Nowicki, seconded by A. Bialek. Carried. The following members are: Jamie Roehrig Kevin Witt Michael Manta Misc. None Adjournment A motion was made to adjourn by J. Nowicki, seconded by A. Bialek. Carried 9:45am. Attachments - 2 - IPPAC Annual membership fee Filed Collins and Radja Invoice Filed Anthony Bialek, Recording Secretary Date approved - 3 - Elgin Fire Pension Fund Tuesday Sep. 26, 2017 Agenda 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, July 25, 2017 meeting Treasurer Report: • Marquette, L & A reports • Principal entry Queue • MVT revised invoice $5,065.00 • Kane Anderson invoice for 4/3/17 through 6/30/17 $15,185.00 • Pension seminar invoice for Knight, Bialek, and Olkowski r Secretary Report: • Pension seminar highlights • Resignation of Board member Jim Nowicki Old Business: • Resigned FF Hartman still no request for funds (filed) • Resigned FF Decarlo still no request for funds (filed) • Tim Bowen on Fiduciary Liability insurance • Disability application from FF Rinenbach. (Back injury) (pending) New Business: • Retirement of Paul Hurley 26yrs 6mo. 66.46% $6,205.86monthly • Death of Edna Kruger (No dependents) 8/21/17 • Death of Ken Henryson (9/6/17) • Widow retirement for Carol Henryson 9/7/17 • -1- new Firefighter application ➢ Greg Kramer • Steve Knight new Pension Board member • FF Mark Schneider rescind of Reciprocity request. • _ rMisc.: Adjournment: r r ELGIN FIRE PENSION FUND MINUTES _ Sep.26 , 2017 Meeting was called to order at 8:3o am by D. Olkowski. r Roll Call: Present: A. Bialek, R. Tripoli, D. Nawrocki, D. Olkowski Absent: S. Knight Council: C. Collins Guest: M. Piotrowski Minutes Minutes of the July 25, 2017 meeting were reviewed. A motion was made by D. Nawrocki, seconded by D. Olkowski. Carried. Treasurer Report M. Pitrowski went over the brief report of the Fund. Doing very well still with YTD of 10.8% overall. This is due to the continued performance of the Economy. The hurricanes in Texas and Florida may slow it down slightly,but no major problems are foreseen. M. Pitrowski continued with a discussion on the"Principal" investment we had approved. We are still on the waiting list to start with the investment. The company is very conservative and wants to put the money to work when we are accepted into their Firm. M. Pitrowski informed the Board he had met with them last week and we should expect to be included before the end of the year. The company is doing well, averaging 9 to 9.5%YTD. None of their properties had rreceived any major damage from the recent Hurricanes, which would require any insurance claims. For now,the money is still invested in other accounts and not just sitting in cash. A motion was made to accept the report, as given by M. Pitrowski, by R. Tripoli, seconded by A. Bialek. Carried. Two invoices were received: Kane Anderson for April through June 2017 $15,185.00 MVT revised invoice 5,065.00 A motion was made to pay both of these by R. Tripoli, seconded by A. Bialek. Carried An invoice was received from IPPAC for the-2- day seminar held on Sept. 21 and 22. S. Knight, A. Bialek and D. Olkowski attended. Invoice was for $900.00. A motion was made to pay this by R. Tripoli, seconded by D. Nawrocki. Carried. Secretary Report The Secretary reviewed some highlights of the Seminar with the members. Fiduciary Liability Insurance policy was discussed by C. Collins. He was working on trying to get the policy cost reduced. At present, costs are governed n=more on funding levels instead of rclaims. A motion was made to pay the premium to cover from Sept. 1, 2017 through August 31, 2018, by R. Tripoli, seconded by D. Nawrocki. Carried. - 1 - Old Business Still no request from FF Hartman, FF Decarlo for pension fund contributions. Disability request from Ben Rinenbach is still ongoing. New Business -1- New FF was hired on 9/22/17. A motion was made to approve him into the Pension Fund by R. Tripoli, seconded by A. Bialek. Carried. The following is: Greg Kramer A request for retirement was received from Paul Hurley. He had 26yrs 6 mo. Which will come to a $6,205.86 monthly pension. A motion was made to accept this request by, R. Tripoli, seconded by D. Olkowski. Carried. Pension to start 8/27/2017. The death of Widow Edna Kruger was reported. She passed on 8/21/17 leaving no dependents. The death of Disabled retired member Ken Henryson was reported. He passed on 9/6/17 and left a widow, Carol Plett Henryson. A motion was made to approve a Survivor Widow Pension for her by A. Bialek, seconded by R. Tripoli. Carried. The Secretary reported that Mark Schneider, who had originally requested for Reciprocity, sent a letter to rescind that request,to the Treasurer of the Board. He has since received his refund. r Misc. It was mentioned that there are -8-firefighters that have requested Reciprocity. If by chance, due to time with Elgin, one of these members puts in a whole 3oyrs of service, they would be eligible to receive all of the extra money back that they were required to pay for the reciprocity. Adjournment A motion was made to adjourn by A. Bialek, seconded by D. Olkowski. Carried 9:00am. Attachments Fiduciary Insurance invoice Filed MVT Revised invoice Filed Kane Anderson invoice Filed IPPAC Seminar invoice Filed Anthony Bialek, Recording Secretary Date approved r - 2 - Elgin Fire Pension Fund Tuesday Oct. 31, 2017 Agenda 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, Sep. 26, 2017 meeting Treasurer Report: • Marquette, L & A reports • Principal entry Queue Start 12/1/17 • C.S. McKee invoice period ending 9/30/2017 $4,113.63 • BMO Invoice 8/10/17 to 9/30/17 $2,518.61 • Collins and Radja quarterly retainer $ 950.00 r Secretary Report: • Death of Widow Lynda Genz • Disability application from FF Chris Harris (Shoulder) • Retirement application from FF Tim Hinds ➢ 11/18/2017 1St day 26years 2 months • Retirement application from Anthony Bialek ➢ 11/26/17 1st day 39years 6 months Old Business: • Resigned FF Hartman still no request for funds • Resigned FF Decarlo still no request for funds • Disability application from FF Rinenbach. (Back injury) (pending) New Business: • Clerk contract proposal and discussion Misc.: Adjournment: • • ELGIN FIRE PENSION FUND MINUTES Oct. 31, 2017 Meeting was called to order at 8:30 am by D. Olkowski. �l Roll Call: Present: A. Bialek, R. Tripoli, S. Knight, D. Olkowski Absent: D. Nawrocki Council: Guest: Minutes Minutes of the September 9, 2017 meeting were reviewed. A motion was made by R. Tripoli, seconded by D. Olkowski. Carried. S. Knight abstained. Treasurer Report The Treasurer was not in attendance. The 3rd quarter report from Marquette and the new investment fund from Principal was tabled until the November meeting. Principal to start on Dec. 1St. Three invoices were reviewed and a motion was made to approve payment by R. Tripoli, seconded by D. Olkowski. Carried. Kane Anderson ending 9/30/2017 $4,113.63 BMO 8/10 through 9/30/2017 $2,518.61 Collins and Radja 3rd quarter retainer $ 950.00 Secretary Report The death of widow, Lynda Genz,was reported. She passed away on 10/12/17 and left no dependents. Disability application was received from FF Chris Harris. (Shoulder) A motion to start the process was made by S. Knight, seconded by D. Olkowski. Carried A retirement application was received from FF Tim Hinds. His last day will be on 11/17/17. He will have 26 years 6 months. This will give him 65.63%. His monthly rate will be $5214.08. A motion to approve this request was made by R. Tripoli, seconded by D. Olkowski. Carried A second retirement request was received from Capt.Anthony Bialek. His last day will be 11/25/17. He will have 39 years 5 months. This will give him 75%. His monthly rate will be $8,714.40. A motion to approve this request was made by S. Knight, seconded by R. Tripoli. Carried. Old Business Still no request from FF Hartman, FF Decarlo for pension fund contributions. rDisability request from Ben Rinenbach is still ongoing. - 1 - • New Business The Secretary,A. Bialek,brought up the Secretary/Clerk position proposal for discussion. D. Olkowski brought up to the Executive Board of the FF Union to replace the Clerk position and do it for free or to use L&A to do the work. Also, possibly searching for another company to do the work L&A is doing now. It was noted that a search was done on the last contract review and L&A was awarded a-5- year contract ending in December of 2021. Pros and cons were discussed further but no decision was made. As far as the Board position of A. Bialek, it was noted that his term ends 5/1/18. He is allowed per statute,to continue until then, confirmed with C. Collins. In April of 2018, an election would be held for the Active position. Further discussion would be held at the November meeting. Misc. Adjournment A motion was made to adjourn by R. Tripoli, seconded by S. Knight. Carried 9:25am. Attachments Collins/Radja invoice Filed BMO invoice Filed McKee invoice Filed Anthony Bialek, Recording Secretary Date approved C - 2 - Elgin Fire Pension Fund Tuesday Nov. 28, 2017 Agenda 08:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes, Oct. 31 , 2017 meeting Treasurer Report: • Marquette, L & A reports • 3rd Quarter Portfolio review • Principal investment review • $7.92 BMO overdraft ''Secretary Report: • Meeting schedule for 2018 • -1- Day Pension seminar Dec. 1 , 2017 • Medical invoice from Dr. Stamelos $1300.00 • Meeting schedule for 2018 • Holiday Seminar and party Dec. 1St, 08:30am ➢ 1400 Poplar Creek Dr. Hoffman Estates, IL. (8 hrs. credit) $50.00 ea. Old Business: • Resigned FF Hartman still no request for funds • Resigned FF Decarlo still no request for funds • Disability application from FF Rinenbach. (Back injury) pending • Disability application from FF C. Harris. (Shoulder) pending • Clerk contract proposal r i New Business: • Retirement request from Lt. Leith Rodgers (QILDRO) A12/14/17 (last day) r A 22yrs. 7 months 56.45% A $ monthly • Deferred Retirement request from Lt. Mark Hryniewicz A 2/14/17 (last day) 49 yrs. old A 26yrs. 7 months A $ monthly A • Resignation from the Fire Department Michael Manka > 11/25/17 (last day) less than -1- year on the job. A Will send request refund shortly thereafter • Military Time request from FF Michele Trant Misc.: Adjournment: r r • ELGIN FIRE PENSION FUND MINUTES Nov. 28, 2017 Meeting was called to order at 8:30 am by D. Olkowski. Roll Call: Present: A. Bialek, R. Tripoli, S. Knight, D. Olkowski, D. Nawrocki Absent: Council: C. Collins Guest: M. Pitrowski Minutes Minutes of the Oct. 31, 2017 meeting were reviewed. A motion was made by R. Tripoli, seconded by D. Olkowski. Carried. Mike Pitrowski introduced himself to S. Knight. He said he could set up a time after the meeting, sometime, to go over the relationship that Marquette has had with the Elgin Fire Pension. Treasurer Report M. Pitrowski started off with the "Flash" report for October, in conjunction with the 3rd Quarter report, pointing out that this would be a more up to date explanation as the 3rd quarter had passed already. The Fund is doing very well especially the newer ones the Board approved during the 2017 year. Overall, 14.1% YTD in the total composite has been seen, with the fund at $85,759,305. (pg. 1 and 3). Noted was that the Fixed portion was showing a positive increase for the 3rd Quarter and the Non-US Equities was outperforming their Benchmark. i" The Principal investment was due to be funded Dec.1, 2017, as previously approved. All of the needed paperwork and authorizations would be taken care of by the Treasurer. This would create a slight imbalance in the overall Portfolio, which would be rectified at the end of the 2017 year, with rebalancing. C. Collins discussed other investment products. If regulations could be changed at the State Level to ease up with investment regulations, this could increase investment returns for larger funds, such as ours. Noting is being proposed at the State level yet. On another issue, an overdraft of $7.92 concerning BMO has been rectified by the Treasurer. Secretary Report The meeting schedule was discussed by the Board members for the year 2018. It was decided to keep the meetings at the same time and place, being the last Tuesday of each month at 08:30a to 10:OOa unless otherwise posted per OMA rules. The following dates for 2018 are: Jan. 30 Feb. 27 Mar. 27 Apr. 24 May 29 June 26 July 31 Aug. 28 Sep. 25 Oct. 30 Nov. 27 opik December' meeting would be posted, if needed, as the holidays fall on the last week. Any k changes or cancellations would be posted as required per the OMA. - 1 - _ Reminder that the -1- day Seminar through IPPAC would be held Friday December 1, 2017. S. Knight and R. Tripoli have been registered already but all can attend. A motion was made to approve the fee for the training for any Board member attending was made by, A. Bialek, seconded by D. Olkowski. Carried. elik A medical invoice was received from Dr. Stamelos, concerning the Disability process of B. Rinenbach, of$1300.00. This is one of the -3- Dr. physicals he must attain concerning his request. A motion was made to pay this by A. Bialek, seconded by D. Nawrocki. Carried. Old Business C. Collins discussed how the process was proceeding for the disability requests of B. Rinenbach and C. Harris. Rinenbach' is almost completed and a Hearing date could be set up shortly. C. Harris' was proceeding quickly as some of the needed records have already been provided concerning his condition. C. Decarlo and K. Hartman have not requested their refunds as of yet. The Secretary mentioned that they are contacted via e-mail and phone every other month concerning their options. Neither have made any request or given a time frame as to when they would. The Secretary would check, after today' meeting, with them. The Clerk Contract proposal was discussed. A. Bialek excused himself from the meeting @9:50a and returned per request @10:05. It was decided to table the discussion until the next regular Board meeting. rik New Business A request for retirement was received from Lt. Leith Rodgers. He has 22yrs. and 6 months with the Fire Department. This entitles him to 56.25%. His monthly salary will be $5,252.67 and confirmed with the Treasurer prior to his last day being December 14, 2017. It was noted to the Board that a QILDRO is attached to his pension. A motion was made by R. Tripoli, seconded by D. Olkowski, to approve the request, and the corresponding QILDRO. Original amount of the pension to be confirmed by the Treasure. Motion carried. A Deferred retirement request was received From Lt. Mark Hryniewicz. He has 26yrs. 6 months with the Fire Department. This entitles him to 66.25%. His monthly amount will be $6,186.41 and confirmed with the Treasurer prior to his last day being February 14, 2018. He will be 49yrs old at the time and realizes his checks will not commence until he reaches 50 yrs. of age. A motion was made to approve the request, amount to be confirmed by the Treasurer, by D. Olkowski, seconded by R. Tripoli. Carried. A resignation from the Fire Department was reported to the Board. Mike Manka resigned as of 11/25/17. Having les than -1- yr. in the fund, he would be entitled to a refund only. He will request this as soon as he becomes settled with his new assignment with the Buffalo Grove Fire Dept. rA request for an estimate of the cost to apply Military Time, as allowed by State Statute, was received from FF Michele Trant. All of the needed records have been sent to Lauterbach and - 2 - . Amen and awaiting an answer from them. This is just an estimate request from her and she will decide what to do when she receives it. Misc. A late invoice was received from Kane Anderson covering 7-1-2017 through 9-30-2017 of. A motion to approve this was made by R. Tripoli, seconded by D. Olkowski. $17,174.57. Carried. Adjournment A motion was made to adjourn by R. Tripoli, seconded by S. Knight. Carried 10:25am. Attachments Stamelos invoice Filed Kane invoice Filed Anthony Bialek, Recording Secretary Date approved r r - 3 -