2018-05-14 - Firefighter Pension Board - Minutes BUFFALO GROVE FIREFIGHTERS' PENSION FUND
MINUTES OF THE BOARD OF TRUSTEES REGULAR MEETING — May 14, 2018
BUFFALO GROVE VILLAGE HALL EOC
50 RAUPP BOULEVARD, BUFFALO GROVE, ILLINOIS
CALL TO ORDER
Meeting was called to order by President Dan Pasquarella at 8:34 a.m.
ROLL CALL
Upon a call of the roll, the following Board members were present: Thomas Gough, Art
Malinowski, Ed McKee, Dan Pasquarella, and Josh Himmelspach.
Also Present: Carolyn Clifford and Jim Wargo, Ottosen Britz; Steve Earnhardt and Jessica
Fain, Lauterbach and Amen; John Falduto and Dave Harrington, Sawyer Falduto; Scott
Anderson, Chief Mike Baker, Dane Bragg, and Jennifer Maltas, Village of Buffalo Grove; Kim
and Sarah Hauber; Karen Cullotta, Chicago Tribune
PUBLIC COMMENT
No public comment
APPROVAL OF MINUTES
The Board reviewed the minutes from its quarterly meeting held on February 5, 2018. Motion
made to approve the minutes as presented by Dan Pasquarella. Second by Josh Himmelspach.
Upon a voice vote, the minutes were approved.
Six-month review of closed meeting minutes — An inventory of the closed session minutes
continues to be a work in progress by Trustee McKee. Motion made to keep closed meeting
minutes closed by Dan Pasquarella. Second by Ed McKee.
AYES: Himmelspach, Gough, Malinowski, McKee, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Motion carried.
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
$61,591,788. The Fund's ending value on March 31, 2018 was $60,937,583. The total return
on investments, net of fees, for this quarter is -$271,062. Total net account return for the year is
-.51%, net of fees. The account benchmark is -.77%.
John Falduto had no recommended changes to the Board's investment policy at this time
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 April 30, 2018 the employer contributions totaled $244,236.46 with
contributions from the employees totaling $161,043.30, creating a total contribution of
$405,279.76. Net investment income totaled -$358,263.28. Total additions equaled $47,016.48.
Total deductions were $967,029.84, leaving the Fund at$60,642,457.06.
Motion was made by Tom Gough to approve the disbursements as presented and accept the
investment and financial statements. Second by Art Malinowski.
AYES: Himmelspach, Gough, Malinowski, McKee, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Motion carried.
CURRENT APPLICATIONS FOR MEMBERSHIP, DISABILITY, COMBINED CREDITABLE
SERVICE, QILDROS, WITHDRAWAL, OR RETIREMENT.
Refund application of Tony Deram — Former Buffalo Grove firefighter, Tony Deram requested
a refund of his contributions to the Fund. Mr. Deram contributed $10,465.18 during his
employment. Motion made to refund Tony Deram his employee contributions to the Fund by
Josh Himmelspach. Second by Thomas Gough.
AYES: Himmelspach, Gough, Malinowski, McKee, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Motion carried.
New Members Applications -- Phil Schroeder and Andy Wojcik have submitted applications
for membership. Phil Schroeder and Andy Wojcik will be Tier II employees and were hired on
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March 19, 2018. Motion made to approve Phil Schroeder and Andy Wojcik as members of the
Fund by Dan Pasquarella. Second by Josh Himmelspach.
AYES: Himmelspach, Gough, Malinowski, McKee, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Motion carried.
QILDROS -- No QILDROS have been received by the Board this quarter.
Disability applications -- None
OLD BUSINESS
Review of the Findings and Decision in Hauber Surviving Spouse matter — Attorney
Carolyn Clifford provided a draft copy of the written Findings and Decision in the Hauber
Surviving Spouse matter. The Board reviewed the findings at length and made
recommendations for changes. Attorney Clifford will revise the draft as requested by the Board.
Motion by Dan Pasquarella to approve the Findings and Decision in the Hauber surviving
spouse matter as revised. Second by John Himmelspach.
AYES: Himmelspach, Gough, Malinowski, McKee, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Motion carried.
Kim Hauber thanked the Board for awarding her the surviving spouse benefit and read from a
prepared statement that she shared with the Board. She also notified the Board that going
forward, she would be represented by attorney Tom Duda in this matter.
NEW BUSINESS
Review and approval of DOI annual statement — The DOI annual statement is due by June
30t', 2018. Steve Earnhardt will have a draft available soon for review by the Board.
Status of Village Audit — The Village's audit must be completed by the end of June, and will
be made available at the next pension meeting.
Presentation of the Actuarial Valuation — Jessica Fain from Lauterbach and Amen presented
the actuarial valuation and the GASB 67/68 report to the Board. The recommended contribution
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is $1,859,212, which is a decrease of$38,730 from last year's recommended contribution (a 2%
decrease). The funded status of the Fund has improved to 78.51% based on the actuarial value
of assets.
One of the positive actuarial experiences from last year was that the asset return was greeted
than expected, based on the actuarial value of assets. The return on investment on the market
value of assets was 13.9% net of administrative expenses. Over the five years of smoothing, the
return on the actuarial value of assets was 8.3% net of administrative expenses, compared to
the assumption at 7%. The statutory minimum contribution is $1,482,234.
Lauterbach & Amen will prepare the municipal compliance report for approval, and the Board
will make its formal tax levy request to the Board at the next meeting.
Election Results — The active member position currently held by Dan Pasquarella was up for
election. President Pasquarella was the only nominee for the position. Motion made by Ed
McKee to dispense with the formal election and declare Dan Pasquarella the winner of the
election by acclamation for another three-year term to 2021. Second by Josh Himmelspach.
AYES: Himmelspach, Gough, Malinowski, McKee, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Motion carried.
Reorganization of Board-Election of Officers — Thomas Gough made a motion to keep the
Board officers as they are, with Dan Pasquarella as President and Josh Himmelspach as
Secretary. Second by Ed McKee.
AYES: Himmelspach, Gough, Malinowski, McKee, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Motion carried.
BOARD MEMBER TRAINING AND PENSION NEWS/UPDATES
Pension news updates were provided by Carolyn Clifford, as well as potential training
opportunities.
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ADOURNMENT
A motion was made to adjourn the meeting by Dan Pasquarella. The motion was seconded by
Art Malinowski. Upon a voice vote, motion carried. Meeting adjourned.
Respectfully submitted,
Joshua Himmelspach
Buffalo Grove Firefighters' Pension Fund
Minutes approved by the Board of Trustees at its meeting held on August 13th, 2018.
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