City of Peoria Firemen's Pension Fund Board of Trustees met April 24.
Here is the minutes as provided by the board:
Agenda
Rescheduled Regular Meeting of the Board of Trustees of The
Firemen's Pension Fund of Peoria, Illinois
A Rescheduled Regular Meeting of the Board of Trustees of the Firemen's Pension Fund of
Peoria, Illinois, was held this date at City Hall, Room 404,419 Fulton Street, Peoria, Illinois, at
3:00 P.M. with proper notice having been given, for the purpose of conducting regular Firemen's
Pension Fund business.
Roll Call
Roll Call of the following members: Ball, Nichting, Phillips, Troglio (Arrived at 3:15 P.M.),
President Nieukirk - 5. Absent: None.
Others present: Mr. Tom McShane, First Vice President -Investment, Senior Investment
Management Consultant with Greystone Consulting, a business of Morgan Stanley/Smith
Barney in Chicago; Attorney Jim Dobrovolny of Reimer Dobrovolny & Karlson; Chief Deputy City
Clerk Stefanie Rice; and Mr. John Dundas of Hasselberg, Grebe, Snodgrass, Urban and
Wentworth.
Invocation
A moment of silence was held 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 March 27,
2017, as printed.
Trustee Ball moved to defer the approval of the March 27, 2017, Minutes to the May 22, 2017,
Regular Firemen's Pension Fund Board meeting; seconded by Trustee Phillips.
Approved by viva voce vote.
Regular Business
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, Discussion and Review
of the Asset Allocations, and 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 emailed a copy of the Performance Update for the period ending March
31, 2017, to all members of the Board. The Performance Update showed the portfolio value at
$127,403,751. Since its inception, the total portfolio performance returned 6.04% versus the
custom benchmark of 5.82%.
Manager Ending Market Value
iShares S&P 500 Index (Large Cap Fund) $20,934,151
Great Lakes (Large Cap Fund) $15,119,434
Premier (Large Cap Fund) $ 9,351,719
iShares Russell Mid Cap Index (Mid Cap Fund) $ 4,422,389
Kayne Anderson $ 6,824,006
Harbor (International Equity) $19,807,283
iShares MSCI EAFE (International Equity) $ 8,286,645
Segall- Fixed Income $32,780,641
SKBA - Fix Income $ 3,418,281
McDonnell- Fixed Income $ 6,007,847
Insured Cash Sweep Account - PCB $ 451,354
Mr. Tom McShane said the Board terminated Premier and McDonnell at the March Board
meeting. He said his firm sent direction to Premier terminating their services and liquidating the
assets with 50% of the assets to be reallocated to the iShares MSCI EAFE and 50% deposited
into the Peoria Community Bank. He said not all the assets with McDonnell were liquidated, but
were reallocated into Segall.
Mr. McShane reviewed the portfolio allocations as follows:
Target Allocation Asset Allocation
Cash & Cash Equivalent 2.00 .35
Fixed Income 38.00 33.13
Equity 60.00 66.52
Target Allocation Asset Allocation
Cash & Cash Equivalent 2.00 .35
Mid Cap Equity 3.00 3.47
Small Cap Equity 3.00 5.36
Real Estate Equity 3.00 0.00
Emerging Markets 8.00 0.00
International Equity 16.00 22.05
Large Cap Equity 27.00 35.64
Fixed Income 38.00 33.13
Mr. McShane noted that the current allocation for International Equity was slightly under the
combined target allocation for Emerging Markets and Internationals. He said fixed income was
under allocated, which was done by design.
Mr. McShane reviewed the portfolio's returns reporting that the Fund was up 4.28% for the
quarter, slightly above the benchmark of 4.26%. For the last 12 months, he said the Fund was
up 9.10% versus a benchmark of 9.52%. He contributed the Fund's returns to Premier, which
was -5.23% below the benchmark. He continued to review the managers' one-year returns as
follows:
1-Year Return Benchmark
iShares S&P 500 Index 17.18 17.17
Great Lakes 17.87 19.22
Premier 10.53 15.76 iShares Russell 20.71 17.03
KayneAnderson 20.69 26.21
Harbor 8.41 13.13
iShares MSCI EAFE 12.60 11.67
Segall 1.19 0.42
SKBA -0.86 0.54
McDonnell 0.15 0.42
Insured Cash Sweep Account 1.07 0.34
He reported that Harbor, since inception, provided an added value of 7.3% versus the
benchmark of 5.79%, Kayne Anderson provided excess returns since inception of 13.05%
versus the benchmark of 12.42%, and McDonnell was terminated. He said the Board needed to
determine how to invest the proceeds from Premier.
Mr. McShane provided an overview of the markets for the first quarter of 2017. He reported that
the S&P was up 17%, the DOW Jones was up 19%, the Small Cap Russell 2000 was up 26%,
the MSCI EAFE was up 12%, and the MSCI Emerging Markets were up 17.7%. He reviewed
the returns for the Barclays Intermediate Government Credit noting the Fund used that index for
the fixed income allocation.
Trustee Troglio arrived at 3:15 p.m.
Mr. McShane reviewed the 2017 earnings per share (EPS) impact and how raising or lowering
the corporate tax rate would affect it. He said the current EPS for the S&P 500 was $131.70.
He said the markets were based on corporate earnings and that the earnings were looking
good.
Discussionswere held regarding additional investment opportunities, and whether there was an
industry that would be more opportunistic in order to get a higher rate of return.
Mr. McShane said the small cap and large cap stocks would be the beneficiaries and would
have more leverage should the economy pick up. He noted that the portfolio was currently
overweight in domestic investments. He said the markets were based on corporate earnings
and he said earnings have perked up.
In response to Trustee Nichting, Mr. McShane said he would provide additional information
regardingTelecomm in light of the effect of a 15% corporate tax. He also stated that utilities
would increase when interest rates dropped. He said the Investment Team was looking into
investing into mutual funds, which would be similar to equity and paid a high yield with less risk.
Trustee Ball moved to receive and file the Performance Update Report as of March 31, 2017;
seconded by Trustee Phillips.
Approved by viva voce vote.
Item No.2 Report from Fire Marshal Charles Lauss of Pension Fund Contributions,
which were made by payroll deductions during the MONTH of MARCH
2017, 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 When Deducted Amount
Feb. 21, 2017 - Mar. 5, 2017 March 15, 2017 $ 68,977.24
Mar. 6, 2017 - Mar. 20, 2017 March 30, 2017 68,920.46
TOTAL $137,897.70
Trustee Nichting moved to concur and place on file the Fire Marshal's Report for March 2017;
seconded by Trustee Phillips.
Approved by viva voce vote.
Item No.3 Request to Approve the following Bills:
Pensions for April 2017 (dated April 30, 2017). $1,064,867.44
Graystone Consulting (Investment Advisory Fee for 1/1/17 to 3/31/17) $24,488.83
INSPE Associates, LTD 4,560.00
Lauterbach & Amen, LLP for the month of March 2017 3,245.00
Reimer Dobrovolny & Karlson LLC 1,532.40
Sikich (Professional Services through March 31, 2017). 1,000.00
LifeStatus360, LLC (Service from 9/26/16 -1/31/17). 129.75
SUB-TOTAL FOR APRIL $1,099,823.02
*SKBA Capital Mgmt - January 1, 2017, through March 31, 2017 1,692.76
GRAND TOTAL FOR APRIL $1,101,515.78
"No check should be processed for this amount. This amount is to be automatically deducted from the account.
In response to Trustee Phillips question regarding the bill for INSPE Associates, Trustee Ball
said INSPE was used for the Angela Allen disability case. She said the Board generally utilized
Woodlake, but due to the nature of the disability, INSPE had a wider variety of doctors. She
said the bill tendered was just for one doctor.
In response to Trustee Phillips regarding Life Status 360, Trustee Ball said this was the final bill
and that the contract had expired in September 2016. She said the Fund had to pay for half the
year for the months it took to decide whether to keep the company. She said this would be the
last billing from Life Status 360.
Discussionswere held regarding the performance of Life Status 360, and it was determined that
the company should be notified. Trustee Phillips said other Boards had inquired of their service
and he expressed a concern to them about their performance
Trustee Nichting moved to approve the bills for April, in the amount of $1,101,515.78; seconded
by Trustee Phillips.
Approved by roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None.
Item No.4 Application for Regular Retirement Pension for Fire Captain
Terry Westhafer to become effective May 1, 2017, (last day paid by the
City was April 30, 2017) based on 66.46% of his Annual Salary of $98,533.66
(which includes longevity). Pension to be paid in the amount of $5,457.12
beginning the month of May and for every month thereafter with a
recommendation for the Board to Approve.
A replacement calculation sheet was distributed to the Board by the Board Secretary Trustee
Ball. She said there was a one day difference in the calculation, which created a slight change
in the numbers.
Trustee Phillips moved to approve the Application for Regular Retirement Pension for Terry
Westhafer to become effective May 1, 2017, (last day paid by the City April 30, 2017) based on
66.46% of his annual salary of $98,533.66 (which includes longevity). Pension to be paid in the
amount of $5,457.12 for every month thereafter; seconded by Trustee Troglio.
Approved by roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None.
Item No.5 Application for Regular Retirement Pension for Fire Captain
Fritz Schoenbein to become effective April 26, 2017, (last day paid by
the City was April 25, 2017,) based on 70% of his Annual Salary of
$98,533.66 (which includes longevity). Upon commencement of Payment of
his Pension an initial payment to be made for five (5) days of April to be
paid in the Amount of $957.97 with $5,747.80 for each month thereafter with
a recommendation for the Board to Approve.
Trustee Phillips moved to approve the Application for Regular Retirement Pension for Fire
Captain Fritz Schoenbein to become effective April 26,2017, (last day paid by the City was April
25, 2017) based on 70% of his Annual Salary of $98,533.66 (which includes longevity). Upon
commencement of payment of his pension, an initial payment to be made for five (5) days of
April to be paid in the amount of $957.97 with $5,747.80 for each month thereafter; seconded by
Trustee Troglio.
Approved by roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None.
Item No.6 Application for Regular Retirement Pension for Fire Captain
Mark Connor to become effective June 29, 2020, (last day worked April
20, 2017) based on 64.7917% of his Annual Salary of $98,533.66 (which
includes longevity). Upon Commencement of Payment of his Pension an
initial payment will be made for two (2) days in June 2020 to be paid in the
Amount of $354.68 with $5,320.14 for every month thereafter with a
recommendation for the Board to Approve.
Trustee Phillips moved to approve the Application for Regular Retirement Pension for Fire
Captain Mark Connor to become effective June 29, 2020, (last day worked April 20, 2017)
based on 64.7917% of his annual salary of $98,533.66 (which includes longevity). Upon
commencement of payment of his pension, an initial payment will be made for two (2) days in
June 2020 to be paid in the amount of $354.68 with $5,320.14 for every month thereafter;
seconded by Trustee Troglio.
It was noted that a pay increase or paycheck will not be received by the Applicant until he
reached the age of 50.
Approved by roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None.
Item No.7 Application for Regular Retirement Pension for Fire Captain
John Lawrence Smith to become effective July 1,2017, (last day
worked April 11, 2017) based on 72.5% of his Annual Salary of $98,533.66
(which includes longevity). Pension to be paid in the amount of $5,953.08
beginning in July 2017 for every month thereafter with a recommendation
for the Board to Approve.
Trustee Troglio stated that Fire Captain John Smith retired April 11, 2017, but would not receive
a pension until July 2017, noting he was not yet 50 years of age.
Trustee Troglio moved to approve the Application for Regular Retirement Pension for Fire
Captain John Lawrence Smith to become effective July 1, 2017, (last day worked April 11,
2017) based on 72.5% of his Annual Salary of $98,533.66 (which includes longevity). Pension
to be paid in the amount of $5,953.08 beginning in July 2017 for every month thereafter;
seconded by Trustee Phillips.
Approved by roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None.
Item No.8 Request for Removal from Pension Rolls of Roberta Kohtz, due
to her Death on March 24, 2017. Recommendation to Pay the Sum of
$1,677.54 for 24 days of March 2017 to the Estate of Roberta Kohtz and to
Receive and File the Death Certificate Upon Its Receipt.
Trustee Ball moved for the removal from the pension rolls of Roberta Kohtz, due to her death on
March 24,2017, with the recommendation to pay the sum of $1,677.54 for 24 days of March
2017 to the Estate of Roberta Kohtz and to receive and file the death certificate upon receipt;
seconded by Trustee Troglio.
Approved by roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None.
Item No. 9 Monthly Financial Reports from Lauterbach & Amen, Llp for the
Month of March 2017, 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 March 2017, 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; seconded by Trustee Phillips.
Approved by roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None.
Item No. 10 Receipts and Disbursements Reports for Peoria Community
Bank and Harris Bank from Patrick Nichting, Treasurer, for the Month of
March 2017, with Recommendation to Receive and File.
Trustee Ball 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 March
2017; seconded by Trustee Phillips.
Approved by viva voce vote.
Item No. 11 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 roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None
Item No. 12 Discussions Regarding a Qualified Illinois Domestic Relations
Order and Consent for an Issuance for Rollanda McCoy,
Previously Married to Firefighter James McCoy, with a Request to Receive
and File or Other Action Deemed Appropriate.
Attorney Jim Dobrovolny said the QILDRO was correct, however, the $50.00 processing fee
was omitted and the QILDRO that was sent needed to be a certified copy. He said, in the
settlement agreement it provided for payment of the QILDRO should Mr. McCoy go on disability.
He said disability payments were not subject to QILDRO and that it would be the responsibility
of Mr. McCoy to ensure the other party was paid according to the agreement.
Discussions were held regarding how to notify the parties that a disability would not be subject
to a QILDRO. It was determined that a copy of the minutes would be sent to the
parties/attorneys involved.
Trustee Ball moved to send Mr. McCoy's attorney a copy of the Board's minutes; seconded by
Trustee Phillips.
Approved by viva voce vote.
Item No. 13 Request for Approval of The Final Decision and Order for a Nonduty
Disability Pension.for Applicant Robert Parkmon.
Trustee Troglio moved to approve the Final Decision and Order for a Non-Duty Disability
Pension for Applicant Robert Parkmon; seconded by Trustee Phillips.
Approved by roll call vote.
Yeas: Ball, Nichting, Phillips, Troglio, President Nieukirk - 5;
Nays: None.
Unfinished Business
Item No. 14 Continued Discussion Regarding the Buyback of Military Time,
with a Request to Receive and File or Other Action Deemed Appropriate.
Trustee Ball requested additional time to draft a policy regarding the buyback of military time.
She said there was a policy in 2005 that said the Fund would not charge interest for military
time. She said since the Board wanted to change the policy, a draft would be brought at the
May Board meeting for review.
Approved by viva voce vote.
Item No. 15 Update Regarding the Affidavits of Eligibility with Request to
Receive and File or Other Action Deemed Appropriate
Chief Deputy City Clerk Stefanie Tarr provided an update on the Affidavits of Eligibility noting
there were three remaining Affidavits waiting to be received. She asked for direction regarding
Joanna Walker and Robert Kneer.
A telephone number was provided for Joanna Walker and it was advised that she should be
contacted by telephone. It was determined that Mr. Kneer was serving prison time in the Illinois
State Penitentiary wherein inmates had access to notary publics. It was advised that a letter
should be sent to Mr. Kneer via certified mail, return receipt requested.
Update Regarding Status of Ipads
Trustee Ball said iPads were ordered for President Nieukirk, Trustee Phillips and Trustee
Troglio. She provided a cost estimate and said once the iPads were received and the flash
drives were received from the Fund's attorney for the Angela Allen case, the documents would
be uploaded on to OneDrive for access by all Trustees. She said the iPads should be available
in about three weeks.
New Business
It was determined that there was no new business to come before the Board of Trustees.
Citizens' Opportunity to Address The Board of Trustees
It was determined that there were no citizens' available to address the Board of Trustees.
Executive Session
Request for a Motion to go into Executive Session to discuss 2(c)(21) for a
Discussion of minutes of meetings lawfully closed under this Act, whether for purposes
of approval by the body of the minutes or semi-annual review of the minutes as
mandated by Section 2.06 AND Any Other Exceptions.
Trustee Troglio moved to go into Executive Session to discuss 2(c)(21) for a discussion of minutes of meetings lawfully closed under this Act, whether for purposes of approval by the body of the minutes or semi-annual review of the minutes as mandated by Section 2.06 and any other exceptions; seconded by Trustee Phillips.
Approved by viva voce vote.
Trustee Troglio moved to go into Executive Session to discuss 2(c)(21) for a discussion of
minutes of meetings lawfully closed under this Act, whether for purposes of approval by the body
of the minutes or semi-annual review of the minutes as mandated by Section 2.06 and any other
exceptions; seconded by Trustee Phillips.
The Board adjourned into Executive Session at 4:19 P.M.
Reconvening of The Board of Trustees
The Board Meeting reconvened at 4:23 P.M.
Roll Call showed the following Board Members physically present: Ball, Nichting, Phillips,
Troglio, President Nieukirk - 5. Absent: None.
Others present: Attorney Jim Dobrovolny of Reimer Dobrovolny & Karlson, and Chief Deputy
City Clerk Stefanie Tarr.
Adjournment
Trustee Troglio moved to adjourn the Regular Firemen's Pension Board Meeting; seconded by
Trustee Phillips.
Approved by viva voce vote.
The meeting adjourned at 4:25 P.M.
http://www.peoriagov.org/content/uploads/2017/01/4-24-17-Rescheduled-Meeting-Fire-Pension-Minutes_1496427123_add.pdf