2017-05-01 - Firefighter Pension Board - Minutes BUFFALO GROVE FIREFIGHTERS' PENSION FUND
MINUTES OF THE BOARD OF TRUSTEES REGULAR MEETING — May 1, 2017
BUFFALO GROVE VILLAGE HALL EOC
50 RAUPP BOULEVARD, BUFFALO GROVE, ILLINOIS
CALL TO ORDER
Meeting was called to order by President Daniel Pasquarella at 8:33 a.m.
ROLL CALL
Upon a call of the roll, the following Board members were present: Thomas Gough, Art
Malinowski, Ed McKee, and Dan Pasquarella.
Secretary Josh Himmelspach was absent.
Also present: Carolyn Clifford and Jim Wargo, Ottosen Britz; Steve Earnhardt, Lauterbach and
Amen; Todd Schroeder, Lauterbach and Amen; John Falduto, Sawyer Falduto; Scott Anderson,
Village of Buffalo Grove; Chief Mike Baker, Village of Buffalo Grove; Andrew Brown, Village of
Buffalo Grove.
PUBLIC COMMENT
No public comment
APPROVAL OF MINUTES
The Board reviewed the minutes from its quarterly meeting held on February 6, 2017. Motion by
approve the minutes as presented by Tom Gough. Second by Art Malinowski. Upon a voice
vote, the minutes were approved.
The six-month review of closed meeting minutes has begun. Himmelspach and Pasquarella are
working on preparing a comprehensive list of the minutes that are still being held closed.
FINANCIAL/INVESTMENT REPORTS AND PAYMENT OF BILLS
Sawyer Falduto Asset Management investment manager's report -- John Falduto of Sawyer
Falduto reviewed the Fund's quarterly investment report. The Fund's starting value was
$54,154,118. The Fund's ending value on March 31, 2017 was $56,092,599. The total return
on investments, net of fees, for this quarter is $2,151,313. Total net account return for the year
is 3.92%, net of fees. The account benchmark for that same timeframe was 3.53%.
John Falduto provided a comprehensive presentation of the annual investment policy and the
services provided by Sawyer/Falduto, as part of the annual investment professional review. A
copy of the review was placed in the files.
Review of monthly financial statements (Lauterbach and Amen) — Steve Earnhardt from
Lauterbach and Amen reviewed the most recent financial statements of the Fund. For the
month ending on March 31, 2017, the employer contributions totaled $275,960 with
contributions from the employees totaling $119,429, creating a total contribution of $395,390.
Net investment income totaled $2,125,869. Total additions equaled $2,521,260. Total
deductions were at $632,014, leaving the Fund at $56,067,690.
Motion was made by Art Malinowski to approve the disbursements as presented and accept the
investment and financial statements. Second by Dan Pasquarella.
AYES: Pasquarella, Gough, Malinowski, and McKee
NAYS: None
ABSENT: Himmelspach
ABSTAIN: None
Motion Carried
PAYMENT OF BILLS — A motion was made by Art Malinowski to pay the warrant of bills from
the first quarter of 2017, totaling $159,730.24, as well as the DOI compliance fee when it
arrives. Second by Tom Gough.
AYES: Pasquarella, Gough, Malinowski, and McKee
NAYS: None
ABSENT: Himmelspach
ABSTAIN: None
Motion carried.
CURRENT APPLICATIONS FOR MEMBERSHIP, DISABILITY, COMBINED CREDITABLE
SERVICE, QILDROS, WITHDRAWAL, OR RETIREMENT.
Membership Files -- Membership files have been checked for updates. No current updates.
Retirement Applications — Wendell Bills application for retirement has been completed.
Effective 02/6/2017 Wendell Bills will retire from the Buffalo Grove Fire Department with 33
years and 3 months of service. His final salary was $112,652.32 with a pensionable salary of
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$84,489.24 (75% benefit). A motion was made by Art Malinowski to accept the application for
for retirement from Wendell Bills. Second by Dan Pasquarella.
AYES: Pasquarella, Gough, Malinowski, and McKee
NAYS: None
ABSENT: Himmelspach
ABSTAIN: None
Motion carried.
New Members — The acceptance of Dan Downey's application has been tabled until it can be
confirmed that his paperwork has been properly completed.
Chief Baker's combined creditable service -- Chief Baker has formally relinquished his
request for combined creditable service with an email to the Board. A copy of his
correspondence will be kept in his pension file.
QILDROS -- No QILDROS have been received by the Board this quarter.
Disability application update -- No disability updates to report. Discussion was made to try
and keep Board up to date on potential members that may be applying for disability.
OLD BUSINESS
Final revised Board rules and forms received — Email to be sent to Board with finalized rules
and forms.
Reminder on filing of annual statements — Annual statements of economic interest due May
1, 2017.
NEW BUSINESS
Status of DOI annual statement — Draft of DOI annual statement to be dispersed soon by
Lauterbach &Amen who is preparing it. It is due to the DOI by June 30, 2017.
Status of Audit— Draft will be available in 10 days and ready for approval by the Village.
Review of actuarial valuation — Todd Schroeder from Lauterbach & Amen presented the draft
actuarial report to the Board. The recommended Village contribution is $1,897,942, which is an
increase of $35,268 from last year. The Fund's funding status has improved to 76.74%, based
on an actuarial value of assets basis. Mr. Schroeder explained that with the salary increase
being less than expected, as well as asset return being greater than expected, the increase in
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recommended contribution was actually $29,926 less than would have been expected. After the
audit is completed, Mr. Schroeder will finalize the report and the Board will make its
recommendation to the Village for funding at the next meeting.
Annual Investment Professional Review — Discussed earlier during investment report.
Review placed in files.
Fiduciary liability insurance — Premiums increased. A motion was made to approve the
renewal of Liability Insurance by Art Malinowski. Second by Tom Gough.
AYES: Pasquarella, Gough, Malinowski, and McKee
NAYS: None
ABSENT: Himmelspach
ABSTAIN: None
Spring trustee elections — With no other potential candidates nominated, a formal election
was dispensed with and Josh Himmelspach won the active trustee election by acclamation.
Tom Gough was also the only candidate for the retired member position, and the Board also
dispensed with his election and declared him re-elected by acclamation.
BOARD MEMBER TRAINING AND PENSION NEWS/UPDATES
Pension news updates were provided by Carolyn Clifford, as well as potential training
opportunities.
ADOURNMENT
A motion was made to adjourn the meeting by Art Malinowski. The motion was seconded by
Tom Gough. Upon a voice vote, motion carried. Meeting adjourned.
Respectfully submitted,
Daniel Pasquarella
Buffalo Grove Firefighters' Pension Fund
Minutes approved by the Board of Trustees at its meeting held on August 7, 2017
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