2019-02-07 - Firefighter Pension Board - Minutes BUFFALO GROVE FIREFIGHTERS' PENSION FUND
MINUTES OF THE BOARD OF TRUSTEES REGULAR MEETING
FEBRUARY 7, 2019
BUFFALO GROVE VILLAGE HALL EOC
50 RAUPP BOULEVARD, BUFFALO GROVE, ILLINOIS
CALL TO ORDER
Meeting was called to order by President Dan Pasquarella at 8:33 a.m.
ROLL CALL
Upon a call of the roll, the following Board members were present: Thomas Gough, Art
Malinowski, Dan Pasquarella, and Josh Himmelspach.
Also Present: Carolyn Clifford, Ottosen Britz; Steve Earnhardt and Dawn Ratkovich,
Lauterbach and Amen; John Falduto and Tom Sawyer, Sawyer Falduto; Scott
Anderson, Mike Baker, and William Wagner, Village of Buffalo Grove; Larry Stanley,
Citizen of Buffalo Grove.
PUBLIC COMMENT
No public comment
APPROVAL OF MINUTES
The Board reviewed the minutes from its quarterly meeting held on November 8, 2018.
Motion was made by Dan Pasquarella to approve the minutes. Second by Art
Malinowski. Upon a voice vote, the motion carried.
Motion was made by Dan Pasquarella to keep closed meeting minutes closed. Second
by Art Malinowski. The motion was approved by a roll call vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
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 on the beginning of the fourth quarter of 2018 was $64,033,051. The Fund's
ending value on December 31, 2018 was $58,072,473. The total return on investments,
net of fees, for this quarter is -$5,309,945. Total net account return for the year is -
4.78%. The account benchmark is -3.33%.
John Falduto recommended exposure to corporate bonds in the portfolio between 1-3%.
Tom Gough made a motion to allow Sawyer Falduto to add corporate bonds to the
Fund's portfolio not to exceed 3% of portfolio. Second by Art Malinowski. Motion carried
by roll call vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Dan Pasquarella made a motion to accept the investment report. Second by Tom
Gough. Motion carried by roll call vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
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 fiscal year ending on December 31, 2018, the employer contributions totaled
$1,886,840.48 with contributions from the employees totaling $533,534.19, creating a
total contribution of$2,420,374.67. Net investment income totaled -$2,918,951.91. Total
additions equaled -$498,577.24. Total deductions were at $3,017,071.24, leaving the
Fund at $58,046,821.94.
Motion was made by Josh Himmelspach to approve the bill list and financial statements.
Second by Dan Pasquarella. Motion carried by roll call vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
PSA Services -- Lauterbach and Amen presented a proposal for Pension Service
Administration (PSA) services. The cost of the services is $1100 monthly or $13,200 per
year. Art Malinowski made a motion to add PSA services from Lauterbach and Amen to
our current agreement, to bring the total cost of annual fees to Lauterbach for services to
$29,060 annually. Second by Dan Pasquarella. Motion carried by roll call vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Pension Workshops -- Lauterbach and Amen proposed a pension workshop for the
membership. This would include two different days to accommodate as many people as
possible. The cost for each workshop for 50 people would be $3000. Art Malinowski
made a motion to approve the two pension benefit workshops by Lauterbach and Amen,
not exceed $6,000. Second by Tom Gough. Motion carried by roll call vote:
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AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
CURRENT APPLICATIONS FOR MEMBERSHIP, DISABILITY, COMBINED
CREDITABLE SERVICE, QILDROS, WITHDRAWAL, OR RETIREMENT.
Retirement Applications — There were no retirement applications during the last
quarter.
New Members — Firefighter/Paramedic David Zabilka joined the Buffalo Grove Fire
Department on February 1, 2019. He will be a Tier 2 member. Dan Pasquarella made a
motion to accept David Zabilka as a member of the Fund, pending the receipt of his
application for membership. Second Josh Himmelspach. Motion carried by roll call vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Disability Application —There were no disability applications during the last quarter.
QILDROs— There were no QILDROs that have been received by the Board this quarter.
OLD BUSINESS
Annual affidavits of eligibility — Retiree Larry Sweica has not completed the annual
affidavit of eligibility, after repeated reminders. Dan Pasquarella made a motion to
convert Sweica's monthly pension benefit from direct deposit to a live check to be picked
up at Village Hall after he completes and submits the affidavit. Second by Josh
Himmelspach. Motion carried by a roll call vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Status of Hauber Litigation — Carolyn Clifford reported to the Board that on February 5,
2019, Judge Diane Winter of the Nineteenth Judicial Circuit in Lake County upheld the
Board's decision in the Village of Buffalo Grove v. Board of Trustees of the Buffalo
Grove Firefighters' Pension Fund and Kim Hauber case. She will keep the Board
apprised as to whether the Village appeals the decision to the Second District Appellate
Court.
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NEW BUSINESS
Attorney engagement letter and retainer — Carolyn Clifford presented the 2019
attorney engagement letter and retainer for the Board's review. Motion made by Tom
Gough and second by Dan Pasquarella to approve the retainer of $5,880, to be paid
annually. Motion carried by a roll call vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Village Tax Levy — Scott Anderson reported that the Village Board had approved
requested amount of$1,859,212 for the Fund in the levy for 2018.
Annual COLA approval -- Lauterbach & Amen presented the annual cost of living
increases for the retirees for 2019. Motion made by Art Malinowski and second by Tom
Gough to approve the annual COLA increase as presented. Motion carried by a roll call
vote:
AYES: Himmelspach, Gough, Malinowski, and Pasquarella
NAYS: None
ABSENT: None
ABSTAIN: None
Preparation for DOI Annual Statement, Actuarial Valuation and Audit — Lauterbach
& Amen will begin the processes and no action needed by Board at this time.
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 Dan Pasquarella, seconded by Art
Malinowski. Upon a voice vote, motion carried. Meeting adjourned at 10:45 a.m.
Respectfully submitted,
Joshua Himmelspach
Buffalo Grove Firefighters' Pension Fund
Minutes approved by the Board of Trustees at its meeting held on May 14, 2019.
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