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HomeMy WebLinkAbout2019 Elgin Fire Pension Fund Board Agendas & Minutes Elgin Fire Pension Fund Tuesday January 16, 2019 Agenda 10:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes December 4, 2018 Treasurer Report: • Marquette • COLAs for 2019 • Collins/Radja invoice Ja.-Feb.-Mar. 2019 $950.00 Secretary Report: Client Manager • g change Memo Old Business: • Villarreal Decision and Order • Mark Schneider request for Reciprocity agreement with Elgin FF New Business: • Lt. Medic Robert Bedard retirement effective March 11, 2019. His is 58yrs old with 30yrs. service. He is entitled to 75% retirement • Capt. Hollis Miller retirement effective Feb. 28, 2019. His is 63yrs old with 40yrs. service. He is entitled to 75% retirement • Retired FF Gary Shales passed away 1/4/19. Left no dependents. Retired 1/12/1991. FF/Driver @ Station #3. • Retired -6- new FFs were hired on 1/11/2019. Jorge Ochoa 30 Megan Kilgore 21 Evan Rhule 25 Nathan Yucuis 30 Jake Karles 29 Krzysztof, Ziemanczyk 30 ELGIN FIRE PENSION FUND MINUTES January 16, 2019 Meeting was called to order at 10:30 am by D. Olkowski. Roll Call: Present: A. Bialek, M. Przybylski, S. Knight, D. Olkowski, D. Nawrocki Absent: Council: Cary Collins, David Mejia Guest: M. Piotrowski, A. Malone Minutes Minutes of the December 4, 2018 meeting were reviewed. A motion was made by S. Knight, seconded by D. Olkowski. Carried. Treasurer Report Report started with a brief review of a Market Environment report given by M. Pitrowski. The end of 2018 was very volatile. This ended with a Government shutdown by President Trump. Slowing economic momentum, valuations peaking and rising geopolitical tensions caused the market to be very volatile. This caused the worst year for a moderate stock portfolio of-6.0%. This lead to a review of our Fund. Total Fund Composite was @ $83 million, which was a-4.6% drop for the year. Real Estate was the only Fund showing an increase of 7.9% for the year. Non-US. Equities had the biggest loss, although all the other Funds were in the red, too. Rebalancing would take place shortly to reflect Policy Benchmark. Going forward M. Pitrowski "'' stated that a performance of 7.0% for 2019 would be a challenge but, reasonable. A suggested was put forward to move some money the Real Estate, (Principal), Fund. D. Nawrocki did not necessarily like the Real Estate Fund, but moving some money to it would not be out of the question. M. Pitrowski state that the Principal Fund was completely liquid now and we could move money out at a later date if needed. A motion was made by D. Olkowski, seconded by M. Przybylski, to move money to the Principal account and rebalance at the same time. This carried. Discussion proceeded to an Asset Allocation Study provided within the report. The current Portfolio was compared to -5- different possible suggestions. This centered on portfolio A and B with the difference being Global Tactical Asset Allocation (GTTA). No managers were presented dealing with GTTA. A motion was made by A. Bialek to have Marquette do an search covering GTTA Managers, seconded by S. Knight. Carried. This would be provided at the next Board meeting. COLAs for the 2019 year were reviewed. Motion was made to accept them as presented by A. Bialek, seconded by D. Nawrocki. Carried. An invoice was received from Collins and Radja for January 1st through March 31, 2019 of $950.00. A motion to approve was made by D. Olkowski, seconded by M. Przybylski. Carried. rA motion was made to approve the Treasurer Report by D. Olkowski, seconded by S. Knight. Carried. - 1 - Secretary Report Notice was given to the Board members that there would be a change in our Client representative at L&A. Steve Earnhardt is moving to a different position within the company and rk Dawn Ratkovich would be his replacement. He will be training her and at our next Board meeting, they both will be there for introduction. Old Business Mike Villarreal Disability Decision and Order was presented for review and signing. FF Schneider final reciprocity payment still pending. New Business Retired FF Gary Shales passed away on 1/4/2019 leaving no dependents. Capt. Hollis Miller' request for retirement pension was received to begin on February 28, 2019. He qualifies for a 75%% pension with 40yrs active service. This comes to $8,439.01 monthly amount. A second request for retirement pension was received from Lt. Medic Robert Bedard, to begin on March 11, 2019. He qualifies for a 75%% pension with 30yrs. active service. This comes to 7,003.48 monthly amount. These were reviewed by the Treasurer, D. Nawrocki. A motion to approve both these requests were made by D. Olkowski, seconded by S. Knight. Carried. -6- New FF applications to the retirement fund were received by the following persons. Age Jorge Ochoa 30 Motion was made to accept the -6- requests Megan Kilgore 21 by S. Knight, seconded by M. Przybylski. Carried. Evan Rhule 25 Nathan Yucuis 30 Jake Karles 29 Krzysztof Ziemanczyk 30 Misc. C. Collins announced that Scott Brandt had just retired from the DOI. He had been with them for many years and has been able to help with many issues concerning pension questions. A question concerning Reciprocity was discussed. It was of the opinion of the Board' Attorney that if someone worked passed the -30- year time frame, the extra 1`)/0 would not be stopped nor any refunds be given if someone stayed with the same dept. for the -30- years and had reciprocity from another Fire Dept. This would be similar to someone working past -30- years and not getting any more that 75% pension. Adjournment - 2 - A motion was made to adjourn by D. Olkowski, seconded by D. Nawrocki. Carried 11:35 am. Attachments rft, Collins and Radja invoice Filed Anthony Bialek, Recording Secretary Date approved r r - 3 - Elgin Fire Pension Fund Tuesday April 17, 2019 Agenda .. 10:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes 2018 January 16, 2019 • Dawn Ratkovich from L&A Treasurer Report: • Marquette • Actuary report • Wells Fargo-Principal Account • Kathleen Bono (Court Recorder report on Villarreal) $ 431 .15 '' • Kayne Anderson Rudnick Oct. 2019 through Dec. 2019 $16,320.34 • BMO invoice Oct. 2019 through Dec. 2019 $ 7,087.81 • CS McKee invoice period ending 12/31/2018 $ 8,248.27 • Collins Invoice for April, May, June 2019 $ 950.00 • C.S. Mckee, ending 3-31-2019 $ 8,036.21 Secretary Report: • New DO Annual report requirements ➢ Nominated Beneficiary ➢ Rank position rule for members. From the last -5- years. • Example with Elgin Firefighters • Rank, longevity, medic, mechanic, driver, steps, (I through VI) • Annual Report request from L&A to file prior to April 23. Old Business: 0, • Mark Schneider request for Reciprocity agreement with Elgin FF • Progress on scanning files • Reciprocity DOI statement New Business: #00, • New FF Thomas Sigmund. 25yrs old. Tier II. Start 4-10-2019 • Assistant Chief Bryan McMahan retirement. 4-6-2019 (1St day). ➢ 30 yrs. -2- months 56 yrs. old ➢ 75% of salary for pension $9,770.05 monthly Misc. r ELGIN FIRE PENSION FUND MINUTES April 17, 2019 401, Meeting was called to order at 10:30 am by D. Olkowski. Roll Call: Present: A. Bialek, M. Przybylski, S. Knight, D. Olkowski, D. Nawrocki Absent: Council: Cary Collins Guest: M. Piotrowski- Marquette Allison Barrett, Dawn Ratkovitch-L&A Kevin Cavanaugh- Actuary L&A Minutes Minutes of the January 16, 2019 meeting were reviewed. A motion was made by S. Knight, seconded by m. Przybylski. Carried. Dawn Ratkovitch was introduced as our new Client Representative from L&A. Treasurer Report M. Pitrowski started with a review of a change in the Marquette Ownership. Marquette will remain 100% employee owned. The Market still has a Brexit and Global issues affecting performance, but positive growth is expected for 2019. The 2020 election process will be the major issue in the future. One Manager is still under alert, Harding Loevner, but has improved some at the end of 2018. The beginning of the year has seen a significant increase in the Total Fund Composite, being over $89 million. (pg. 2, 4). Even Fixed Income has shown a positive increase for the First Quarter. DFA was the only Fund under performing and will be watched. (pg. 9). The pending transition on Wells Fargo transferring all of their Institutional Pension Holdings to Principal, was discussed. There is expected to be some issues concerning the changes being made. A search of possible Custodial Firms to replace Wells Fargo will be presented at the next meeting. A motion was made to accept the report, as given by M. Pitrowski of Marquette, by D. Olkowski, seconded by D. Nawrocki. Carried. Kevin Cavanaugh, our new Actuary from L&A, was introduced. A comprehensive review of the 2018 Pension Fund was presented. Our Fund was compared with all of the funds that L&A represent as they have over -300- Fire and Police pension funds. The percent funding for the Elgin Firefighter Fund has decreased from 51.24% to 48.89%. This is due to a range of issues including: -A number of Tier I retirements r -2 New Disability Pensions -poor Market performance toward the end of 2018 - 1 - The pending Firefighter Contract was also taken into effect. Since there has not been a settlement of a contract, an assumption was made to include increases and back pay when one does occur, for Active Firefighters and former members that would be due pension adjustments. Benefits would be expected to increase by 55% over the next -5- years and 95 to 100% over the " next -10 years. A question was asked how the Tier II pension would affect this percentage. The affect would be slight, as Tier II members retire. A greater affect would be when Tier I members come off the pension roles. The Mortality rates showed that Firefighters live long longer now, as compared to older generation Firefighters, due to better personal protective equipment. 88.7 years on average. Pg.12 was discussed in detail. After reviewing the individual items, the final recommendation was made to levy $8,353,732.00 for the fund. D. Nawrocki noted that the Levy recommendation is made in 2019 but actually paid in 2020. Pg. 21 provided the recommended contribution. A motion was made by S. Knight, seconded by M. Przybylski, to recommend the Levy of $8,353.372. 00 as presented. Carried. Detailed copy of the report was filed with the Secretary. The following invoices were presented: KAR Oct. 2018 through Dec. 2018 $16,320.34 Kathleen Bono (Court Recorder report on Villarreal) $ 431.15 BMO Oct. 2019 through Dec. 2018 $ 7,087.81 CS McKee period ending 12/31/18 $ 8,248.27 rCS McKee period ending 3/31/19 $ 8,036.21 Collins and Radja April, May, June 2019 $ 950.00 DOI annual Fee for 2019 $ 8,000.00 A motion was made to approve these by A. Bialek, seconded by M. Przybylski. Carried. Secretary Report New DOI annual report requirements were discussed. A recommendation from L&A to be submit the 2018 Annual report, prior to April 23, would allow the changes to be delayed until 2020, for the 2019 reported year. This was agreed to. Old Business FF Schneider final reciprocity payment still pending. Scanning of Active FF files is complete and will be uploaded shortly. The Reciprocity question was discussed. One member requested information on this but did not formally present the request to the Board at this time. The Secretary will inform all of the members that have requested Reciprocity, -7-, individually and discuss their options. rIt was decided to table the Asset Allocation study that was reviewed last meeting, to a future date. - 2 - New Business Assistant Chief Bryan McMahan' request for retirement pension was received to begin on April 6, 2019. He qualifies for a 75%% pension with 30yrs 2 months active service. This comes to $9,770.05 monthly amount. A motion to approve this request was made by D. Olkowski, seconded by S. Knight. Carried. New FF applicant, to the Pension fund, was received by Thomas Sigmund. He is 25yrs. old and a Tier II. Motion was made by D. Olkowski, seconded by S. Knight to approve his request. Carried. Misc. Reminder that the IPPAC seminar will be held in Rock Island on May 14, 15, 16th. Other seminars covering the required training also are provided in September, October and December. Adjournment A motion was made to adjourn by D. Olkowski, seconded by D. Nawrocki. Carried 11:45 am. Attachments KAR Oct. 2018 through Dec. 2018 Filed Kathleen Bono (Court Recorder report on Villarreal) Filed BMO Oct. 2019 through Dec. 2018 Filed CS McKee period ending 12/31/18 Filed CS McKee period ending 3/31/19 Filed Collins and Radja April, May, June 2019 Filed DOI annual Fee for 2019 Filed Actuary Report for 2018 Filed Anthony Bialek, Recording Secretary Date approved r - 3 - • Elgin Fire Pension Fund Tuesday July 10, 2019 Agenda 10:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes April 17, 2019 Treasurer Report: • Marquette • Kayne Anderson Rudnick as of March 31 ,20199 $15,087.48 • BMO as of March 31 , 2019 $ 6,898.42 • Collins and Radja invoice July, August, Sept. 2019 $ 950.00 • Postage for year. $ 33.00 """ • V. Beard Floral for Wake $ 64.25 ➢ Vandevoorde, Yearman • DOI assessment 2019 pre-approved $ 8,000.00 • Wells Fargo update • HB 5088 Report to the City Council Secretary Report: • Retired Board position A. Bialek 4/1/2019 through 3-31-2022. • Clerk new assignment (invoices) • 2018 approved by DOI • Annual physicals for disabled members ➢ Tim Buelow ➢ Ben Rinenbach Old Business: • Mark Schneider request for Reciprocity agreement with Elgin FF r • Asset Allocation tabled • Reciprocity and members sent out New Business: • Death of Retired member Virgil Beard 4/20/2019. No beneficiary. • • Death of Widow Phyllis Farmer 5/14/2019 • -3- new FF Pension Applications • Bryan Bathauer • r ➢ Eugene Galinovskiy > Phillip Preskenis • -2- Firefighters resigned. Refund request pending ➢ Steve Shaulis 8months ➢ Anthony Herrera 5yr 6m Misc. r r ELGIN FIRE PENSION FUND MINUTES July 10, 2019 rMeeting was called to order at 10:30 am by D. Olkowski. Roll Call: Present: A. Bialek, D. Olkowski, D. Nawrocki Absent: M. Przybylski, S. Knight, Council: Cary Collins Guest: M. Piotrowski- Marquette Minutes Minutes of the April 17, 2019 meeting were reviewed. A motion was made by D. Olkowski, seconded by D. Nawrocki to accept the minutes. Carried. Treasurer Report M. Pitrowski invited all Board members to the Oct. 4th Symposium, at their office. Moving to the Quarterly report started with a very good earnings report for our investment. The Fund is in compliance and has had a Market value of over $93 million. The stock Market continues to do well. The country is not near a recession, at present, and opinion is that it will continue to do well for the rest of the year. The Feds have made remarks that there would probably not be any interest rate hikes for the rest of the year. Going forward into 2020 is the big question mark with it being an election year and the Trade issues that are ongoing. Harding was the only one on alert at present. Bonds are doing well. A question was posed on how Corporate Bonds do compared to Government Bonds. Although more risky, they have a better return. Page -4-, covering the -10- year history was discussed, pointing out a $43 million increase of the fund. Pg. -9- YTD was reviewed. The Fund is on a 12.9% rate of return, exceeding the 7% annual goal, which is much better than the -4.7% for 2018. Cary mentioned that there is a proposal to combine funds, but there were also many items being proposed to add changes in all of the pensions. Nothing put forward for vote as of yet. Custody Fee Analysis was discussed concerning Wells Fargo. It was recommended that we go with US Bank. Marquette has a good working relationship with them, as with the other Financial Firms, but they are the lowest cost and The City of Elgin has a working relationship with US Bank already. A motion was made to go with US Bank, pending the review by the Police Pension Board going with them, also. This was made By A. Bialek, seconded by D. Nawrocki. Carried. HB 5088 was reviewed and a motion was made by D. Olkowski, seconded by D. Nawrocki, to approve and present to City Council. Carried. rReallocation of some of the cash reserves was discussed. It was decided to move $550,000.00 into the Real estate Fund on a motion by D. Nawrocki, seconded by D. Olkowski. Carried. - 1 - The following invoices were presented: KAR Jan. 2019 through March 2019 $15,087.48 BMO Jan. 2019 through March 2019 $ 6,898.42 -Postage for 2019 year $ 33.00 -V. Beard Floral arrangement for Wake $ 64.25 (Reimbursed to A. Bialek) DOI annual Fee for 2019 $ 8,000.00 Collins and Radja July, Aug. Sept. 2019 $ 950.00 Liability Insurance with ULICO 9/1/2019 to 9/1/2020 $ 5,303.00 (Discussed under Misc.) A motion was made to approve these by D. Olkowski, seconded by D. Nawrocki Carried. A motion was made to accept the report, as given by M. Pitrowski of Marquette, by D. Olkowski, seconded by D. Nawrocki. Carried Secretary Report The 2018 Annual report has been approved by the DOI. Retired Board member position was held at the end of April. Only one retired member was interested, Anthony Bialek. A motion was made to accept him for the term of May 1, 2019 through April 30, 2020. Carried. Annual physicals for Ben Rinenbach and Tim Buelow were reviewed. Both were certified as continuing to be disabled. Physician fees were discussed by Cary Collins, as going up but, not rreceived yet. A motion was made to accept the reports and pay the Physician fee for both when they come in, by A. Bialek, seconded by D. Olkowski. Carried. Presently there are -3- disabled members under -50- years of age, which requires them to have a physical each year. Villarreal did not actually start his disability until April of 2019 so, he will be getting his first one in 2020, along with the other -2-. Old Business FF Schneider final reciprocity payment still pending. The Secretary met with all the members that have requested Reciprocity and their options if they decide to request to drop from the program. None have expressed to do this at present. Asset Allocation study tabled to a future date. Resigned members Herrera and Sigmund still awaiting their refunds. New Business -2- Retired members had passed away, neither leaving any dependents. Retired FF Virgil Beard 4/20/2019 Widow Phyllis Farmer 5/14/2019 - 2 - The City would be hiring -4- new Firefighters and their applications would be reviewed at the next meeting. Misc. r ULICO Liability Insurance quote, for the Board members, was received and discussed. Secretary A. Bialek requested direction from the Board on destruction of disability records. According to the Archive Office with the State If Illinois, disabled member records on proceedings can be destroyed after -3- years from the final proceedings except the final Decision and Order... The Secretary had been keeping them until the member actually became deceased. After discussing this and with recommendation from Cary Collins, it was decided to keep the records of any disabled member under -50- years of age. A disabled member over -50- would have his records purged after -3- years. However, the final Decision and Order, along with the -3- certifying Dr. reports would continue to be kept. Adjournment A motion was made to adjourn by D. Olkowski, seconded by D. Nawrocki. Carried 11:45 am. Attachments Approved invoices as approved above, filed. Anthony Bialek, Recording Secretary Date approved r - 3 - Elgin Fire Pension Fund Wednesday Oct. 16, 2019 Agenda 10:30am City of Elgin Conference Room 'A' Roll: • Present: • Absent: • Council: • Guests: Minutes: • Minutes July 10, 2019 Treasurer Report: • Marquette report • Collins and Radja invoice for Oct. Nov. Dec. 2019 $ 950.00 • Tim Buelow physical invoice $ 1,000.00 • Ben Rinenbach physical invoice $ 1,210.00 • Kane Anderson invoice as of 6-30-19 $16,006.14 • CS. McKee invoice as of 6-30-019 $8,203.31 r • CS. McKee invoice as of 9-30-2019 $8,669.52 * • BMO April through June 2019 $ 7,050.67 • IPPAC Annual membership $ 500.00 > July 1 , 2019 to June 30, 2020 • Legislative update Secretary Report: • Application for a Disability Pension from B/C Terry Bruce received > On hold • Meeting dates for 2020, 10:30a > Jan. 15 > Apr. 15 ➢ July. 15 ➢ Oct. 21 • Cy Mikleson on W/C only Old Business: r • Mark Schneider request for Reciprocity agreement with Elgin FF • Asset Allocation tabled New Business: • -5- new FF Pension Applications > Bryan Bathauer age 29 ➢ Eugene Galinovskiy age 30 > Phillip Preskenis age 31 > Ryan Brown age 36 > Damian Carbone age 33 • Resignation of FF Greg Kramer and request for refund. $12,965.74 • Resignation of FF Steve Shaulis request for refund $ 4,825.28 • Resignation of FF Thomas Sigmund request for refund. $ 2,516.39 Misc. r ELGIN FIRE PENSION FUND MINUTES Oct 16, 2019 ow Meeting was called to order at 10:30 am by D. Olkowski. Roll Call: Present: A. Bialek, , D. Nawrocki, M. Przybylski, S. Knight Absent: D. Olkowski Council: Cary Collins Guest: M. Piotrowski- Marquette Minutes Minutes of the July 10, 2019 meeting were reviewed. A motion was made by S. Knight seconded by D. Nawrocki to accept the minutes. Carried. Treasurer Report M. Piotrowski invited all Board members to the Oct. 4th Symposium, at their office. The 3rd Quarterly report was reviewed, showing we are doing very well year to date Although Harding/Loevner was on alert, there status will be removed as they have been performing well for the year. It was noted that the money approved to move into Real Estate has not been done yet. One Manager had a great quarter, Kayne Anderson @33.1% for the year so far. We are performing above our Benchmark YTD. Rebalancing will be done toward the end of the year to comply with our Investment Policy. Wells Fargo transfer to US Bank is complete and this will make things go very smoothly, concerning investments, with less paperwork. The biggest unknown, at present, is what will happen in the Legislature. The following invoices were presented: KAR as of 6-30-19 $16,006.14 BMO April thru June 2019 $ 7,050.67 Collins and Radja Oct., Nov., Dec 2019 $ 950.00 Tim Buelow Physical $ 1,000.00 Ben Rinenbach physical $ 1,200.00 CS McKee invoice as of 6-30-2019 $ 8,203.31 CS McKee invoice as of 9-30-2019 $ 8,669.52 IPPAC annual membership July 2019 thru June 2020 $ 500.00 A motion was made to approve these by D. Nawrocki, seconded by A. Bialek. Carried. A motion was made to accept the report, as given by M. Piotrowski of Marquette, by D. Nawrocki, seconded by S. Knight. Carried. Legislative update was discussed by C. Collins and M. Piotrowski. The Veto session was only - r8- days off and there were still many questions as to what the Legislature was going to actually do. C. Collins stated that Madigan has not weighed as of yet. No one seemed to want the State to take over all of the funds. A history of corruption and mismanagement is high on the list of - 1 - reasons. No guidelines have been set up and there is presently -7- bills on the table to be discussed. Devaney has sat on the committee but did not have a vote as to what they recommended. Another item would be the possibility of borrowing from the funds and this has not gone well in the past either. All is dependent on what they will do during the veto session rand Collins will keep us informed. Secretary Report An application for Disability was submitted by Batt. Chief T. Bruce, for hearing loss, but was tabled at this time. The process was discussed By C. Collins. Cy Mikleson has been put on W/C only at present. He has used up all of his PEDA, but has not recovered, needing more surgery. Meeting dates for 2020 were approved on a motion from D. Nawrocki, seconded by A. Bialek. Carried. The Police Pension would follow on the same day. 2020 Jan. 15, Apr. 15, July 15, Oct. 21. Old Business FF Schneider final reciprocity payment still pending. Asset Allocation study tabled to a future date. New Business r -5- new FF were hired and a motion was made to accept them into the Pension Fund by A. Bialek, seconded by S. Knight. Carried. Dates of hire listed by their names. Bryan Bathauer age 29 7/12/2019 Eugene Galinovskiy age 30 7/12/2019 Phillip Preskenis age 31 7/12/2019 Ryan Brown age 36 7/15/2019 Damian Carbone age 33 10/4/2019 Request for refunds for the following resigned FFs were approved by A. Bialek, seconded by D. Nawrocki. Carried. Greg Kramer $12,965.74 Steve Shaulis $ 4,825.28 Thomas Sigmund $ 2,516.39 Misc. None Adjournment A motion was made to adjourn by M. Przybylski, seconded by D. Nawrocki. Carried 11:25 am. - 2 - Attachments Approved invoices as approved above. Filed. Refunds as approved above. Filed r Anthony Bialek, Recording Secretary Date approved r r - 3 -