Peoria Standard

The Peoria Firemen's Pension Fund Board of Trustees met Aug. 22 to review investments.

Here is the meeting's agenda, as provided by the board:

August 22,2016

Peoria, Illinois

PROCEEDINGS OF A REGULAR MEETING

OF THE BOARD OF TRUSTEES OF THE FIREMEN'S PENSION FUND

OF PEORIA, ILLINOIS

A Regular Meeting of the Board of Trustees of the Firemen's Pension Fund of Peoria, Illinois,

was held this date at City Hall, 419 Fulton Street, Room 404, Peoria, Illinois, at 9:30 A.M., with

proper notice having been given, for the purpose of conducting regular Firemen's Pension

Fund business.

ROLL CALL

Roll Call showed the following Board Members present: Ball, Phillips, Trogliq, President

Nieukirk - 4; Absent: Nichting - 1.

Others present: Mr. Tom McShane, First Vice President -Investments, Senior Investment

Management Consultant with Graystone Consulting, a business of Morgan Stanley/Smith

Barney in Chicago; Assistant Corporation Counsel Sonni Williams of the City of Peoria;

Attorney Jim Dobrovolny of Reimer Dobrovolny & Karlson; Chief Deputy City Clerk Stefanie

Rice; Mr. Andy Bischel of Spare, Kaplan Bischel & Associates (SKBA); and Mr. Greg Hosbein

of Segal, Bryant and Hamill.

INVOCATION

President Nieukirk requested a moment of silent prayer or silent reflection in remembrance of

those firefighters who lost their lives while serving their community.

MINUTES

Recommendation to Approve the Minutes of the Regular Board Meeting held on July 25,

2016, as printed.

Trustee Phillips moved to approve the Minutes of the Regular Board Meeting held on July 25,

2016, as printed; seconded by Trustee Troglio.

Approved by viva voce vote.

REQUEST TO MOVE AGENDA ITEM

Trustee Troglio moved to move Item No.3 forward on the agenda to be discussed at this time;

seconded by Trustee Ball.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

PROCEEDINGS - FIREMEN'S PENSION MEETING AUGUST 22,2016

PAGE 2

REGULAR BUSINESS

ITEM NO.3 PRESENTATION by SPARE, KAPLAN, BISCHEL & ASSOCIATES (SKBA),

with Request to Receive and File or Take Other Action.

Mr. Andy Bischel of SKBA distributed two handouts to the Board and provided a presentation

of the firm. He reviewed the company, noting that SKBA had been working with IPPFA clients

since 1998. He said SKBA benchmarked against the Barclays Government Credit Index,

which was of longer duration over other benchmarks. He remarked on the difficulty of

obtaining the 7% actuarial assumption due to the volatility of the markets.

Mr. McShane reviewed the term "duration" noting that it measured the volatility of the portfolio

and guided the management of the portfolio.

Mr. Bischel reviewed SKBA's investments reviewing occurrences in the market during the

second quarter of 2016. He reviewed the portfolio composition and changes, the statement of

changes and the Peoria Firemen's Pension Fund total returns. He stated it was a difficult year

noting that the overall the rate of return environment had not been very high. He reviewed the

Real DGDP vs. Industrial Production Index and key issues for the U.S. economy and financial

market. He reviewed the positives taking place in the markets, noting an increase in

employment growth and the negatives in the market place, identifying the recent energy

recession. Mr. Bischel reviewed all the factors that lead to the reason why the portfolio could

not get out of the 2.0% growth rate.

In response to Mr. McShane's question regarding rate increases, Mr. Bischel said rate

increases appeared to be off the table until November. He said SKBA was not forecasting a

big rate increase.

Mr. Bischel reviewed the US Treasury yield curve, the CPI vs. implied inflation, the yield spread

of corporate bond vs. US Treasury, and fixed income portfolio characteristics and distributions.

He said SKBA perceived inflation to increase in the next year or two.

Mr. Bischel left the meeting at 10:08 A.M.

Trustee Phillips moved to receive and file the Presentation by Spare, Kaplan, Bischel &

Associates (SKBA); seconded by Trustee Ball.

Approved by viva voce vote.

REQUEST TO MOVE AGENDA ITEM

Trustee Troglio moved to move Item No.2 forward on the agenda to be discussed at this time;

seconded by Trustee Ball.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

PROCEEDINGS- FIREMEN'S PENSION MEETING AUGUST 22,2016

PAGE 3

ITEM NO.2 PRESENTATION by SEGAL, BRYANT AND HAMILL, with Request to

Receive and File or Take Other Action.

Mr. Gregory Hosbein of Segal, Bryant and Hamill provided a presentation noting that the

manager's focus was to locate securities within the mandate wherein the Board chose the

benchmark. He said Segal tried to ensure the Fund's portfolio was well positioned in order to

prevent surprises. He said Segal provided positive returns on an absolute and relative basis.

Mr. Hosbein said Segal was an intermediate government credit manager wherein the portfolio

returned approximately 4.0%. He said the firm had a consistent team, process and philosophy.

He said the portfolio had no bond longer than 10 years, which was less volatile when rates

increased. He reviewed the manager's top ten holdings, which were high quality well-known

names. He said the overall bond market had been good and that the riskiest assets were

doing the best. He reviewed the impact of the ECB Corporate Bond Purchase Program and

Treasury Yield Curves.

Mr. Hosbein reviewed the four factors that affected interest rates: federal policy, decreased

supply of government debt, U.S. rates attractive on a global basis, and historical precedence.

He noted that Federal policy was going to remain conducive to keeping rates low. He reviewed

the 10-yeargovernment rates noting that U.S. rates were attractive on a global basis. He

reviewed the long-term U.S. Treasury Yields reporting that long-term interest rates stayed low

for two decades.

Mr. Hosbein left the meeting at 10:52A.M.

Trustee Phillips moved to receive and file the Presentation by Segal, Bryant and Hamill;

seconded by Trustee Ball.

Approved by viva voce vote.

Mr. McShane said the Fund's portfolio included three investment managers who invested in

bonds: Segal, McDonnell and SKBA. He said McDonnell and Segal had shorter durations

than SKBA and he noted that SKBA was used as a hedge. He remarked that it would be good

if the portfolio returned 3-4% as opposed to a negative return. He recommended no changes

in the allocations at this time.

Discussionswere held regarding the need of two bond managers. It was noted that McDonnell

held approximately $6 million. Mr. McShane said the goal for the fixed income manager was to

meet or exceed the benchmark plus fees, which was approximately 20 basis points. He said

McDonnell, since inception, have met or exceeded the benchmark; however, was off

approximately 7 basis points. He noted that SKBA was slightly off their target as well. He

reported that Segal was on task.

Discussionswere held about the managers the Fund hired and whether it would be prudent to

pare down to two managers, noting that no one was being fired but rather it was a smart move

for the Fund to save money on manager fees.

Mr. McShane recommended the Board review McDonnell, SKBA and Segal at the September

Firemen's Pension meeting.

PROCEEDINGS- FIREMEN'S PENSION MEETING AUGUST 22,2016

PAGE 4

ITEM NO. 1 MONTHLY PORTFOLIO PERFORMANCE REVIEW by TOM McSHANE

GRAYSTONE CONSULTING (A business of Morgan/Stanley Smith-Barney),

and Discussion Regarding Recommendations, Possible Action Regarding

the Firemen's Pension Fund Portfolio Performance, and Discussion and

Review of the Asset Allocations, Review of the Open Orders with the S&P

500 Exchange Traded Fund (ETF), with Request to Receive and File

Reports or Take Other Action.

Mr. McShane previously mailed a copy of the Performance Update for the period ending July

31, 2016, to all members of the Board. The Performance Update showed the portfolio value at

$124,971,564. Since its inception, the total portfolio performance returned 6.31% versus the

custom benchmark of 5.74%.

Manager Ending Market Value

iShares S&P 500 Index (Large Cap Fund)

Great Lakes (Large Cap Fund)

Premier (Large Cap Fund)

iShares Russell Mid Cap Index (Mid Cap Fund)

Kayne Anderson

Harbor (International Equity)

iShares MSCI EAFE (International Equity)

Segall- Fixed Income

SKBA - Fix Income

McDonnell - Fixed Income

Insured Cash Sweep Account - PCB

$17,985,502

$13,457,163

$ 9,580,272

$ 3,968,701

$56,040,563

$18,731,140

$ 7,651,910

$33,273,658

$ 3,543,018

$ 6,109,750

$ 4,629,887

Mr. McShane reported that as of July 2016, the Fund had an average annualized return of

6.31% versus the custom benchmark of 5.74%. He reported that the Fund began in 2003 with

a beginning market value of $76 million, paid net contributions of -$33.7 million (payments to

retirees, disabilities and survivor benefits), paid fees and expenses of $2.1 million, received

income from dividends and interest of $35.7 million, and had unrealized and realized gains and

losses in the amount of $49 million, all of which provided an ending market value of $124,972

million. He said the decisions the Board made provided an additional $11 million to the

portfolio. Mr. McShane reviewed the risk/return analysis since January 2003 noting that the

portfolio had less risk with a return of 6.3%. He said the portfolio received a greater return with

less risk.

Mr. McShane reviewed the Fund's performance reporting a year-to-date return of 4.27% versus

the benchmark of 6.19%, almost 1.9% differential. He said the differential came from the

underperformance of Premier, which the Board had addressed. He reported that the other

cause of the underperformance was due to eliminating real estate investment trusts from the

portfolio, which was up 18% year-to-date. He said the emerging markets were up 11% year-todate,

in which the Fund no longer holds an interest. He stated that the Board reinvested

money from emerging markets into international managers that had emerging market

exposure.

Mr. McShane reviewed a chart showing asset class returns from 2006 to date, which showed a

10-year annualized return with a 1O-yearvolatility. He remarked that it was currently a low

interest rate environment, noting that paid dividends performed well. He reviewed REITs

PROCEEDINGS- FIREMEN'S PENSION MEETING AUGUST 22, 2016

PAGE 5

between 2006 to date noting it had a 1O-yearannualized return of 5.2% with a volatility of

18.5%. He advised not investing in REITs while the volatility was high.

President Nieukirk noted that portfolio nearly recouped its losses from the year before with the

market volatility.

Trustee Phillips moved to receive and file the Performance Update Report as of July 31,2016;

seconded by Trustee Troglio.

Approved by viva voce vote.

ITEM NO.4 REQUEST by the Senior Investment Management Consultant Tom

McShane with Graystone Consulting to CLOSE an OLD ACCOUNT with

WELLS FARGO BANK.

Mr. McShane said his firm was working on closing an old account with Wells Fargo Bank. He

said any residual funds should be wired to the receiving institution. He said Wells Fargo had

been unresponsive to their inquiries. He said staff contacted the local Wells Fargo branch

office for assistance in this matter.

Trustee Phillips moved to defer this item to the September 27,2016, Firemen's Pension Fund

Meeting; seconded by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

ITEM NO.5 Report from Fire Marshal Charles Lauss of Pension Fund Contributions,

which were made by payroll deductions during the MONTH of JULY 2016,

from the active members of the Peoria Fire Department and which checks

were turned in to the City Treasurer's Office by Director of

Finance/Comptroller, with Recommendation to Concur and Receive and

File.

Payroll Period

June 21, 2016 - July 5, 2016

July 6,2016 - July 20,2016

When Deducted

July 15, 2016

July 31, 2016

Amount

$ 69,034.98

$ 69.955.48

$138,990.46

Trustee Troglio moved to concur and place on file the Fire Marshal'SReport for July 2016;

seconded by Trustee Phillips.

Approved by viva voce vote.

ITEM NO.6 Request to Approve the following BILLS:

July 2016 (Approve the Ratification of the Following Payments Previously Made)

Pensions for July 2016 (dated July 31, 2016) $1,026,522.36

Segall Bryant & Hamill ···............... 14,112.04

Foster & Foster - Prepare GASB 67/68 Disclosures ...... ....... 3,000.00

PROCEEDINGS- FIREMEN'S PENSION MEETING AUGUST 22, 2016

PAGE 6

Sikich - Audit of Financial Statements for Year Ended 12131/15........ 3,000.00

2016 IPPFA MidAmerican Pension Conference - 5 Trustees............ 1,675.00

SUBTOTAL FOR JULY 2016................................................... $1,048,309.40

SKBA Capital Management, LLC - Mgmt Fee 1/4/16 through 6/30/16 ..

Premier Asset Management, LLC - Quarterly Mgmt Fee as of 6/30/16.

Kayne Anderson Rudnick - Mgmt Fee for 7/1116 to 9/30/16 ..

1,745.94*

12,302.23*

11,962.00*

GRAND TOTAL FOR JULY 2016 . $1,074,319.57

August 2016 (Approve Payments for the Following)

Pensions for August 2016 (dated August 31,2016) $1,025,173.19

Reimer Dobrovolny & Karlson, LLC 10,467.32

Foster & Foster - January 1, 2016 Fire Actuarial Valuation and Report... 7,880.00

Lauterbach & Amen, LLP - Preparation ofthe 001 report for FY2015..... 4,085.00

Lauterbach & Amen, LLP - Professional Services for July 2016............ 3,155.00

Lauterbach & Amen, LLP - Professional Services for June 2016........... 3,155.00

Woodlake Medical Mgmt, Inc. -IME Parkmon................ 2,514.50

Sikich - Final Bill on Audit of FinancialStatementfor YearEnded12/31/15 1,000.00

Woodlake Medical Mgmt, Inc. - IME Brooks...................................... 390.00

Woodlake Medical Mgmt., Inc. - IME Brooks.... .......... ...... ........ ......... 390.00

Woodlake Medical Mgmt., Inc. - IME Brooks..................................... 380.00

FedEx to Reimer Dobrovolny & Karlson............................................ 39.38

SUBTOTAL FOR AUGUST 2016 $1,058,629.39

Great Lakes Advisors - Mgmt Fee 4/1/16 through 6/30/16................. 16,289.57*

GRAND TOTAL FOR AUGUST 2016.......................................... $1,074,918.96

GRAND TOTAL FOR JULY AND AUGUST $2,149,238.53

*No check should be processed for this amount. This amount is to be automatically deducted from the account.

Trustee Ball recommended approving this item in two parts with the July bills needing to be

ratified due to payment in July and the August bills needing approval for payment for August.

Trustee Troglio inquired about the Woodlake bills, and Trustee Ball confirmed that the three

IME bills for Brooks were for three separate doctor appointments.

Trustee Phillips moved to ratify the July bills for the grand total amount of 1,074,319.57;

seconded by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

Trustee Phillips moved to approve the August bills in the grand total amount of $1,074,918.96;

seconded by Trustee Troglio.

Approved by roll call vote.

PROCEEDINGS - FIREMEN'S PENSION MEETING AUGUST 22,2016

PAGE 7

Yeas:

Nays:

ITEM NO.7

Ball, Phillips, Troglio, President Nieukirk - 4;

None.

REQUEST to APPROVE the REMOVAL from the PENSION ROLLS of NEAL

LEE MCCADDON due to his Death on August 6, 2016, and to make --

payment to the Neal Lee McCaddon Estate in the Amount of $966.28 for 6

days of August 2016. Recommendation: Receive and File the Death

Certificate and to Approve the Payment of $966.28 for 6 days of August

2016.

Trustee Phillips moved to approve the removal from the pension rolls of Neal Lee McCaddon

due to his death on August 6, 2016, and to make payment to the Neal Lee McCaddon Estate in

the amount of $966.28 for 6 days of August 2016 and to receive and file the death certificate;

seconded by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

ITEM NO.8 REQUEST to ACCEPT the APPLICATION for a WIDOW'S PENSION

BENEFIT for DOLORES MCCADDON, She Being the Widow of Neal Lee

McCaddon, with Benefits Commencing August 7,2016, with her Benefit to

be Based on 100% of his Monthly Pension Benefit of $4,831.39 Per Month;

Therefore Benefit for 24 days of August to be Paid in the amount of

$3,865.10.

Trustee Phillips moved to accept the Application for a Widow's Pension Benefit for Dolores

McCaddon, she being the widow of Neal Lee McCaddon, with benefits commencing August 7,

2016, with her benefit to be based on 100% of his monthly pension benefit of $4,831.39 per

month; therefore benefit for 24 days of August to be paid in the amount of $3,865.10; seconded

by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

ITEM NO.9 REQUEST to APPROVE and RATIFY the REMOVAL from the PENSION

ROLLS of BRENDA L. BOHM due to her Death on July 14, 2016, and to

make payment to the Brenda L. Bohm Estate in the Amount of $2,366.56

for 14 days of July 2016. Recommendation: Receive and File the Death

Certificate Upon Receipt and to Approve the Payment of $2,366.56 for 14

days of July 2016.

Trustee Phillips moved to approve and ratify the removal from the pension rolls of Brenda L.

Bohm due to her death on July 14, 2016, and to make payment to the Brenda I. Bohm Estate in

the amount of $2,366.56 for 14 days of July 2016 and to receive and file the death certificate

upon receipt; seconded by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

PROCEEDINGS- FIREMEN'S PENSION MEETING AUGUST 22, 2016

PAGE 8

ITEM NO. 10 REQUEST to APPROVE the REMOVAL from the PENSION ROLLS of

MABEL HENEBERRY due to her Death on August 7,2016, and to make

payment to the Mabel Heneberry Estate in the Amount of $614.83 for 7

days of August 2016. Recommendation: Receive and File the Death

Certificate Upon Receipt and to Approve the Payment of $614.83 for 7 days

of August 2016.

Trustee Phillips moved to approve the removal from the pension rolls of Mabel Heneberry due

to her death on August 7,2016, and to make payment to the Mabel Heneberry Estate in the

amount of $614.83 for 7 days of August and to receive and file the death certificate upon

receipt; seconded by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

ITEM NO.11 REQUEST to APPROVE the REMOVAL from the PENSION ROLLS of

CLARENCE E. HOLMES due to his Death on August 16,2016, and to make

payment to the Clarence Holmes Estate in the Amount of $1,483.10 for 16

days of August 2016. Recommendation: Receive and File the Death

Certificate Upon Receipt and to Approve the Payment of $1,483.10 for 16

days of August 2016.

Trustee Phillips moved to approve the removal from the pension rolls of Clarence E. Holmes

due to his death on August 16, 2016, and to make payment to the Clarence Holmes Estate in

the amount of $1,483.10 for 16 days of August 2016 and to receive and file the death

certificate upon receipt; seconded by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Nichting, Phillips, President Nieukirk - 4;

Nays: None.

Trustee Troglio inquired as to the effectiveness of the monitoring service, Small World, in

reporting the recent deaths.

Trustee Ball said Small World reported two out of the four deaths in the last two months.

ITEM NO.12 APPLICATION for REGULAR RETIREMENT PENSION for ROBERT M.

SOLLBERGER to become effective July 16, 2016, (last day paid by the City

July 15, 2016) based on 67.9167% of his Annual Salary of $103,460.34

(which includes longevity). Pension to be paid for the remaining 15 days

of July, in the Amount of $2,927.85 and $5,855.57 for every month

thereafter with a request to receive and file the letter to deduct monthly

insurance premiums from his monthly benefit check at the appropriate

time. Recommendation for the Board to Approve and Ratify Payments

Previously Made.

Regardingthe letter to deduct monthly insurance premiums, Trustee Ball said those would not

be put on the agenda for approval going forward. She said the City's Human Resource

Department handled that aspect of the benefits, noting there were several ways to process that

benefit.

PROCEEDINGS - FIREMEN'S PENSION MEETING AUGUST 22, 2016

PAGE 9

Trustee Philips moved to approve and ratify the Application for Regular Retirement Pension for

Robert Sollberger to become effective July 16, 2016, (last day paid by the City July 15, 2016)

based on 67.9167% of his annual salary of $103,460.34 (which includes longevity). Pension to

be paid for the remaining 15 days of July, in the amount of $2,927.85 and $5,855.57 for every

month thereafter; seconded by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

ITEM NO. 13 MONTHLY FINANCIAL REPORTS from LAUTERBACH & AMEN, LLP for the

Month of JUNE 2016, which Includes the STATEMENT OF PLAN NET

ASSETS, STATEMENT OF CHANGES IN PLAN NET ASSETS, SUMMARY of

CASH AND INVESTMENTS, BALANCE SHEET, REVENUES and REVENUE

REPORT, EXPENSES and EXPENSE REPORT, PAYROLL JOURNAL, and

VENDOR CHECKS REPORT, with Recommendation to Approve.

Trustee Ball moved to approve the monthly financial reports from Lauterbach & Amen, LLP for

the month of June 2016, which includes the State of Plan Net Assets, State of Changes in Plan

Net Assets, Summary of Cash and investments, Balance Sheet, Revenues and Revenue

Report, Expenses and Expense Report, Payroll Journal, and Vendor Checks Report; seconded

by Trustee Phillips.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

ITEM NO. 14 MONTHLY FINANCIAL REPORTS from LAUTERBACH & AMEN, LLP for the

Month of JULY 2016, which Includes the STATEMENT OF PLAN NET

ASSETS, STATEMENT OF CHANGES IN PLAN NET ASSETS, SUMMARY of

CASH AND INVESTMENTS, BALANCE SHEET, REVENUES and REVENUE

REPORT, EXPENSES and EXPENSE REPORT, PAYROLL JOURNAL, and

VENDOR CHECKS REPORT, with Recommendation to Approve.

Trustee Ball moved to approve the monthly financial reports from Lauterbach & Amen, LLP for

the month of July 2016, which includes the State of Plan Net Assets, State of Changes in Plan

Net Assets, Summary of Cash and investments, Balance Sheet, Revenues and Revenue

Report, Expenses and Expense Report, Payroll Journal, and Vendor Checks Report; seconded

by Trustee Phillips.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

PROCEEDINGS- FIREMEN'S PENSION MEETING AUGUST 22, 2016

PAGE 10

ITEM NO. 15 RECEIPTS and DISBURSEMENTS REPORTS for PEORIA COMMUNITY

BANK and HARRIS BANK from Patrick Nichting, Treasurer, for the Month

of AUGUST 2016, with Recommendation to Receive and File.

Trustee Phillips moved to receive and file the receipts and disbursements reports for Peoria

Community Bank and Harris Bank from Patrick Nichting, Treasurer, for the month of August

2016; seconded by Trustee Troglio.

Approved by roll call vote.

Yeas: Ball, Phillips, Troglio, President Nieukirk - 4;

Nays: None.

ITEM NO. 16 REQUEST for APPROVAL of a RESOLUTION Authorizing Trustee Patrick

Nichting the POWER TO INVEST, and Authorize Trustee Nichting to

Maintain a Minimum of $10,000.00 in the HARRIS BANK ACCOUNT.

Trustee Phillips moved to approve a Resolution authorizing Trustee Patrick Nichting the power

to invest, and authorize Trustee Nichting to maintain a minimum of $10,000.00 in the Harris

BankAccount; seconded by Trustee Troglio.

Approved by viva voce vote.

ITEM NO. 17 REQUEST to RECEIVE and FILE the PEORIA FIREMEN'S PENSION FUND

FINANCIAL STATEMENTS and INDEPENDENT AUDITOR'S REPORT from

SIKICH for YEAR ENDED DECEMBER 31,2015.

Trustee Ball remarked that the draft audit was presented to the Board last month. She said this

was the final report and needed to be received and filed.

Trustee Phillips moved to receive and file the Peoria Firemen's Pension Fund Financial

Statements and Independent Auditor's Report from Sikich for year ended December 31, 2015;

seconded by Trustee Troglio.

Approved by viva voce vote.

ITEM NO. 18 DISCUSSION Regarding the 2016 AFFI PENSION SEMINAR CONFERENCE

October 12 - 13, 2016, with Request to Allow Board Members to Attend

and to Receive Reimbursement for Per Diem, Mileage, and Hotel

Expenses.

Trustee Phillips moved to receive and file and to allow Board members to attend and to receive

reimbursementfor per diem, mileage, and hotel expenses for the 2016 AFFI Pension Seminar;

seconded by Trustee Ball.

Approved by viva voce vote.

PROCEEDINGS- FIREMEN'S PENSION MEETING AUGUST 22, 2016

PAGE 11

UNFINISHED BUSINESS

ITEM NO. 19 STATUS on the DISABILITY APPLICATION OF MICHAEL BROOKS, with

Request to Receive and File.

Attorney Dobrovolny said he was unaware whether the doctors had reviewed the additional

informationthat was sent. He said he would confirm the status and he requested that this item

be deferred to the September meeting.

Trustee Phillips moved to defer this item to the September 26, 2016, Regular Firemen's

Pension Board meeting; second by Trustee Troglio.

Approved by viva voce vote.

ITEM NO. 20 STATUS on the BUYBACK OF FIREFIGHTER CHANCE BARLOW, with

Request to Receive and File.

Trustee Phillips said it was his understanding that Firefighter Barlow was paid in full.

Trustee Ball said she needed documentation that he was paid in full for the file for future

reference, so she would contact him.

Trustee Phillips moved to receive and file the information regarding the buyback of Firefighter

Chance Barlow; seconded by Trustee Troglio.

Approved by viva voce vote.

NEW BUSINESS

IPPFA MidAmerican Pension Conference

Trustee Ball provided an update on the upcoming IPPFA MidAmerican Pension Conference.

She said all Trustees were registered and everyone had hotel reservations. She said she

would forward confirmations.

Disability Hearings

Discussionswere held regarding Disability Hearings and the records used for such hearings.

Trustee Troglio remarked that the law provides that the Applicant only has to get three

independent medical evaluations. He said currently the process was such that it made it

difficult for the Board to review in a timely manner prior to a hearing. He said he would prefer

to have more information after the hearing. He said the burden of proof was on the Applicant

to prove their disability. He said he would like to start with just the IME reports, disability

application,job description and questions provided to the IME doctors. He commented that

additional subpoenas were burdening the Board with its review time. He said he would prefer

to ask for additional information after the public hearing should it be necessary.

Trustee Phillips remarked that it was his opinion that receiving additional information after the

hearing was inappropriate.

Trustee Ball said all the information was provided to Attorney Dobrovolny's office wherein they

prepare the subpoenas for the medical records. She added that all the records received from

subpoenas were forwarded to all three IME doctors prior to the Applicants' appointments.

PROCEEDINGS - FIREMEN'S PENSION MEETING AUGUST 22,2016

PAGE 12

Attorney Dobrovolny said a full and complete file was needed regardless of whether it was

entered into the record. He said the most important documents needed were the Application

for Disability, incident reports, the job description, IME reports, and the letter to doctors with the

questions from the Board. He said the Board would not necessary have to review all the

information unless it requested to do so.

Trustee Phillips and Mr. McShane left the meeting at 11:30 A.M.

Regarding records retention, Trustee Ball said the documents were saved electronically and

placed in the file, but hard copies were available as well. She recommended making one hard

copy for any Trustee who wanted to come to the office to review prior to the public hearing.

It was determined that further discussion regarding this topic would be held at a future meeting.

CITIZENS' OPPORTUNITY TO ADDRESS THE BOARD OF TRUSTEES

It was determined there were no citizens to address the Board of Trustees.

EXECUTIVE SESSION

It was determined that an Executive Session was not needed at this time.

ADJOURNMENT

Trustee Troglio moved to adjourn the Regular Firemen's Pension Board Meeting; seconded by

Trustee Ball.

Approved by viva voce vote.

The meeting adjourned at 11:33 A.M.

Beth Ball, MMC, City Clerk

Trustee and Board Secretary,

Firemen's Pension Fund of Peoria, Illinois

/sr