The Police Pension Fund VILLAGE OF LOMBARD 235 EAST WILSON AVE. LOMBARD, IL 60148 MINUTES OF THE REGULAR MEETING APRIL 17, 2017 A regular meeting of the Lombard Police Pension Fund Board of Trustees was held on Monday, April 17, 2017 at 1:30 pm in the Chief s Conference Room located at 235 E. Wilson Avenue, Lombard, IL 60148, pursuant to notice. CALL TO ORDER: President Shafer called the meeting to order at 1:31 pm. ROLL CALL: PRESENT: ABSENT: ALSO PRESENT: President Richard Shafer, Vice President Jerry Peterson, Secretary Benny Ranallo, Assistant Secretary Tom Wirsing, and Trustee Karen Koenig Board Attorney Charles Atwell, Atwell & Atwell; John Falduto and Tom Sawyer, Sawyer Falduto Asset Management; Jessica Nawracaj, Village of Lombard; Stefanie Bravo and Casey Heeley, Lauterbach & Amen (L&A); Francis Vivo, Andrew Siegler, and Michael Harris, Lombard Police Department PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: The Board reviewed the minutes from the January 9, 2017 regular meeting. A motion was made by Trustee Koenig and seconded by Trustee Peterson to approve the January 9, 2017 regular meeting minutes, as written. Motion carried by roll call vote. ACCOUNTANT S REPORT LAUTERBACH & AMEN, LLP: Monthly Financial Report: The Board was presented with the Monthly Financial Report for the three month period ending March 31, 2017. As of March 31, 2017, the net position held in trust for pension benefits is $62,340,756.48 with a change in position of $1,036,868.64. The Board reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal. Quarterly Disbursement Summary: The Board reviewed the Quarterly Disbursement Summary for payroll and vendor disbursements paid in the first quarter from January 1, 2017 through March 31, 2017, totaling $1,253,443.39. Presentation and Approval of Bills: The Board reviewed the Vendor Checks Report for the period January 1, 2017 through March 31, 2017, for a total disbursement of $216,524.21. A motion was made by Trustee Peterson and seconded by Trustee Ranallo to accept the March 31, 2017 Monthly Financial Report, to approve the first quarter Quarterly Disbursement Summary in the amount of $1,253,443.39, and the Vendor Checks Report in the amount of $216,524.21. Motion carried by roll call vote.
Page 2 of 5 Additional Bills, if any Illinois Department of Insurance Compliance Fee: The Board noted that the Illinois Department of Insurance Compliance Fee invoice will be issued and payment is due by June 30, 2017. A motion was made by Trustee Wirsing and seconded by Trustee Ranallo to approve payment of the IDOI Compliance Fee, upon receipt. Motion carried by roll call vote. INVESTMENT REPORT SAWYER FALDUTO ASSET MANAGEMENT: Quarterly Investment Performance Report: Mr. Falduto presented the Quarterly Investment Performance Report for the period ending March 31, 2017. As of March 31, 2017, the quarter-to-date total net return is 3.19% for an investment return of $1,948,300 and an ending market value of $62,131,073. The current asset allocation is as follows: Fixed Income at 52.8%, Equities at 47.2% and Cash Equivalents at 0.0%. Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, and Transaction Ledger Report with the Board. A motion was made by Trustee Wirsing and seconded by Trustee Koenig to accept the Quarterly Investment Performance Report ending March 31, 2017 as presented by Sawyer Falduto Asset Management. Motion carried by roll call vote. Review/Update Investment Policy: There were no updates made to the Investment Policy at this time. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Applications for Membership Andrew J. Boccassini, Adam H. Bruce, and Jeffrey K. Calhoun: The Board was presented with the L&A New Hire Forms for Andrew J. Boccassini, Adam H. Bruce, and Jeffrey K. Calhoun. Mr. Boccassini, Mr. Bruce, and Mr. Calhoun s date of hire was September 29, 2016, all as Tier II participants. A motion was made by Trustee Ranallo and seconded by Trustee Peterson to accept Andrew J. Boccassini, Adam H. Bruce, and Jeffrey K. Calhoun effective their date of hire and as Tier II participants, into the Lombard Police Pension Fund. Motion carried by roll call vote. Resignation from Fund Alexander Robles: The Board noted that Alexander Robles resigned from the Lombard Police Department on March 13, 2017. He has been provided the necessary contribution refund application and no response has been received at this time. A motion was made by Trustee Wirsing and seconded by Trustee Peterson to table this item until the contribution refund application is received. Motion carried by roll call vote. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Disability Application Status Officer Terry Olson: Attorney Atwell informed the Board that he has received medical records from Mr. Olson s Attorney, however, Mr. Atwell is seeking additional information. A subpoena of medical records will be submitted. Further updates will be provided to the Board as they become available. A motion was made by Trustee Wirsing and seconded by Trustee Ranallo to subpoena the current medical records for Mr. Olson to indicate whether or not he is at MMI. Motion carried by roll call vote.
Page 3 of 5 AYES: NAYS: ABSENT: Trustees Wirsing, Koenig, Peterson, Ranallo, and Shafer Disability Application Status Officer Francis Vivo: Attorney Atwell informed the Board that Mr. Vivo is represented by Attorney Thomas Duda who was not able to attend the Board meeting. Mr. Atwell has requested clarification from the applicant s Attorney based on Mr. Vivo s disability application claiming a non-duty disability, but in written correspondence from Mr. Vivo s attorney, Thomas Duda, he stated it was a line of duty disability. Mr. Duda indicated that two depositions from Workers Compensation will be sent to Mr. Atwell which would further identify the situation. Mr. Atwell will communicate the deposition to Village Attorney James Ferolo. The Village has not filed a motion to intervene at this time. Further updates will be provided to the Board as they become available. A motion was made by Trustee Ranallo and seconded by Trustee Wirsing to table this item until an amended disability application is received and further clarification is submitted to the Board. Motion carried by roll call vote. OLD BUSINESS: IDOI Annual Statement: The Board noted that the IDOI Annual Statement is in process and the final report will be sent to the Board for review upon completion. A special meeting will be set at a further date for approval and signature of the Certification Form on the final IDOI Annual Statement. Trustee Training Updates: The Board reviewed the Trustee Training Summary and discussed upcoming training opportunities. L&A will register all Trustees for the 2017 IPPFA Fall Conference once registration is available. NEW BUSINESS: Discussion/Approval of Military Service Purchases Andrew Siegler: The Board noted that Andrew Siegler has asked the Board to freeze the calculations of his military service purchase due to being in the process of refinancing his home. A motion was made by Trustee Wirsing and seconded by Trustee Peterson to freeze the military service purchase calculations until the next scheduled meeting. Motion carried by roll call vote. Discussion/Approval of Military Service Purchases Cynthia Velazquez: The Board noted that Cynthia Velasquez is requesting to transfer 4 months and 25 days of military service of active time and 12 days of reserve time. The Board discussed accepting the 12 days of reserve time for Officer Velasquez. A motion was made by Trustee Ranallo and seconded by Trustee Wirsing to accept the reserve time as active time and approve the transfer of the total active and reserve time for Cynthia Velasquez. Motion carried by roll call vote. Confirmation of Tier Status Charles Brack: The Board was informed that Charles Brack contacted L&A to confirm his tier status. According to the IDOI and L&A, Mr. Brack is a Tier I participant. The Board will confirm Mr. Brack s date of hire. Further updates will be provided at the next
Page 4 of 5 scheduled meeting. A motion was made by Trustee Wirsing and seconded by Trustee Koenig to table the confirmation of tier status for Charles Brack until the next scheduled meeting. Motion carried by roll call vote. Certify Board Election Results Active Member Position: L&A conducted an election for one of the two Active Member positions on the Lombard Police Pension Fund Board of Trustees. The Board noted that 31 ballots were received and 31 ballots were counted. The Active Member election results are as follows: 6 votes for Matthew Bendicsen and 25 votes for Tim Wirsing. Tom Wirsing was elected for a two-year term expiring April 30, 2019. A motion was made by Trustee Peterson and seconded by Trustee Koenig to certify the Election Results as presented. Motion carried by roll call vote. Appointed Member Term Expiration Karen Koenig: The Board noted that Karen Koenig will not seek reappointment to the Board of Trustees and submitted her resignation letter to the Board. The Village has been contacted to have a new Trustee appointed to the Lombard Police Pension Fund Board of Trustees. Further updates will be provided at the next scheduled meeting. A motion was made by Trustee Peterson and seconded by Trustee Ranallo to accept Karen Koenig s resignation from the Lombard Police Pension Fund Board of Trustees. Motion carried by roll call vote. AYES: Trustees Wirsing, Peterson, Ranallo, and Shafer ABSTAIN: Trustee Koenig Discussion/Possible Action IDFPR and Pension Contribution Adjustments Michael Clark: The Board noted that Michael Clark went on military leave and his Village salary was paid and reduced by the amount paid by the military. An incorrect gross base amount was used to compute the pension contribution and only a partial amount was paid into the Fund. The Village recognizes this was an error on their end, as the contribution should have been based on his full salary. A motion was made by Trustee Ranallo and seconded by Trustee Wirsing up to allow Mr. Clark to make payments of $176.89 over a 12 month period without interest for a total amount due of $2,122.68. Motion carried by roll call vote. Review/Possible Adoption of Village s Travel Reimbursement Policy: The Board was informed that the Village s draft Travel Reimbursement Policy is currently under review. Once the Policy is finalized, it will be emailed to the Board for review and possible adoption. Further discussion will be held at the next scheduled meeting. A motion was made by Trustee Wirsing and seconded by Trustee Ranallo to table the adoption of the Village s Travel Reimbursement Policy until the final Policy is received by the Board. Motion carried by roll call vote.
Page 5 of 5 Illinois Department of Insurance Compliance Audit Examination Report: The Board reviewed the Illinois Department of Insurance Compliance Audit Examination Report. A motion was made by Trustee Peterson and seconded by Trustee Koenig to direct Attorney Atwell to prepare and submit a written response to the findings to the IDOI within 14 days of receiving the letter. Motion carried by roll call vote. OTHER BUSINESS: Affidavits of Continued Eligibility: The Board noted that L&A will mail the Affidavits of Continued Eligibility to all pensioners with the June payroll cycle. A status update will be provided at the next scheduled meeting. Statements of Economic Interest: The Board was reminded that the Statements of Economic Interest are due by May 1, 2017. The Board noted that the Board was in receipt of a $50 QILDRO fee for the Chudzinski QILDRO. ATTORNEY S REPORT: Legal Updates: Attorney Atwell discussed various pension cases and pension legislation with the Board. CLOSED SESSION, IF NEEDED: There was no need for closed session at this time. ADJOURNMENT: A motion was made by Trustee Koenig and seconded by Trustee Peterson to adjourn the meeting at 2:44 pm. Motion carried by roll call vote. R. Shafer, President J. Peterson, Vice President B. Ranallo, Secretary T. Wirsing, Assistant Secretary Minutes approved by the Board of Trustees on (date). Minutes prepared by Stefanie Bravo, Pension Services Administrator. ~ The next regular meeting is scheduled for July 17, 2017 at 1:30 pm. ~