Call to Order: The meeting was called to order at 7 :34 a.m. in the conference room at Glenview Fire Station 6. On roll call the following were:
Present: Board President/Trustee Nick Rusher, Trustee Tom Dvorak, Trustee Paul Detlefs, Trustee/Secretary Mike Sawicki, Doug Oest of Marquette Associates, Keith Karlson of Richard J. Reimer and Associates, LLC and Carol Bjankini, Recording Secretary
Absent: Trustee Mike McPeek, Village Manager Todd Hileman, Chief Financial Officer Rick Kisner
Minutes: Trustee Rusher called for a review of
the minutes of April 21, 2008. Trustee Dvorak motioned to
approve as amended the minutes of April 21, 2008; Trustee
Detlefs seconded and the vote was all ayes, no nays and the
minutes
of April 21, 2008 were accepted.
Financial Reports/Contribution Review: Doug Oest from Marquette Associates distributed the June 30, 2008 Executive Summary and provided an overview. At the close of the quarter, the Pension fund had a market value of $47,274,464. Over the quarter, the portfolio decreased by $1,543,369, of which $573,214 was due to withdrawals, while $970,155 was due to capital depreciation. The total portfolio was 61.9% invested in fixed income, 27.5% invested in domestic equities, 9.0% invested in international equities, and 1.6% invested in cash. The Total Fund returned -2.0% for the quarter, outperforming its policy benchmark, which returned -2.1%. Over the trailing twelve months, the Pension Fund returned -0.8%, outperforming the policy benchmark, which returned -1.9%. Trustee Detlefs motioned to accept the June 30, 2008 Executive Summary; Trustee Sawicki seconded and a roll call was taken and the vote was all ayes, no nays and the motion passed.
After a review of the June 30, 2008 Executive Summary Mr. Oest recommended the Board transfer funds from fixed income over the next six (6) weeks into large capital equity and bring the total equity exposure to approximately 41%. Trustee Detlefs motioned to accept Mr. Oest's recommendation, Trustee Sawicki seconded and a roll call was taken and the vote was all ayes, no nays and the motion passed.
Mr. Oest distributed copies of the Investment Policy Guidelines for the Board to review and sign. Attorney Keith Karlson obtained a copy and stated he would review the policy and advise the Board accordingly.
Mr. Oest will prepare transfer letters for both Trustee Rusher and Chief Financial Officer Rick Kisner's signatures.
Trustee Rusher will setup a procedure with CFO Kisner regarding signatures and processing of the wire transfer letters.
Trustee Sawicki suggested eliminating Glenview State Bank and directly depositing the fire levy funds into the USB Bank money market fund. Mr. Oest recommends this practice as well. Mr. Oest explained directly depositing into USB would not incur charges and the fund would receive additional interest. Mr. Oest also offered his assistance in establishing this practice. Attorney Karlson also stated this practice would eliminate predatory lending because the funds would be directly deposited into a national bank. Trustee Sawicki motioned to work with the Finance Department to close the Glenview State Bank account and have the fire levy directly deposited into USB. Trustee Dvorak seconded and a roll call was taken and the vote was all ayes, no nays and the motion passed.
Trustee Rusher is in receipt and distributed to the Board the Actuarial Valuation Report for the year beginning January 1, 2008 and ending December 31, 2008 which was prepared by Timothy W. Sharpe, In summary, there were no changes with respect to Plan Provisions, Actuarial Methods or Actuarial Assumptions. There were no unexpected changes with respect to the participants included in this actuarial valuation. There were no unexpected changes with respect to the Fund's investments from the prior year. The Village's Tax Levy Requirement has increased from $1,712,540 last year to $1,987,548 this year. Attorney Karlson advised the Board to draft a pension fund tax levy request letter to Village President Cummings. Trustee Rusher will draft and forward the letter recommending the Village of Glenview levy $1,987,548 for the up-coming tax year in order to satisfy the annual requirements of the Glenview Firefighters' Pension fund. Trustee Detlefs was quick to notice the summary results had the Interest for One Year listed in place of the Amortization of Unfunded Accrued Liability / (Surplus). Trustee Rusher will contact Mr. Sharpe for an amended report. Trustee Detlefs motioned to approve as amended the Actuarial Valuation Report for the Year Beginning January 1, 2008 and Ending December 31, 2008, Trustee Sawicki seconded and a roll call was taken and the vote was all ayes, no nays and the motion passed.
Trustee Rusher is in receipt of invoices from INSPE Associates, LTD for services rendered;
Invoice No. 29370 Dr. Collins - John Hutchison in the amount of $1,980.00
Invoice No. 29366 Dr. Jacker - John Hutchison in the amount of $2,228.00
Invoice No. 29482 Dr. Tingle - John Hutchison in the amount of $2,670.00
Invoice No. 29579 Dr. Tingle - Mark Gray in the amount of $1,470.00
Invoice No. 11328 for services rendered from Richard J. Reimer & Associates, LLC in the amount of $911.63.
Trustee Rusher motioned to approve payment of the invoices stated,
Trustee Dvorak seconded and a roll call was taken and the vote was all
ayes, no nays and the motion passed.
Applications: The Board is in receipt of an
Application for Disability Pension from John Hutchison dated February 13, 2008.
The Disability Hearing is scheduled to commence at 9:00 AM. Prior to the meeting FF/PM John Hutchison's Attorney, Roddy requested the meeting start an hour earlier. Attorney Roddy thanked the Board for accommodating the early request.
Trustee Sawicki motioned to recess the Pension meeting at 8:02 AM as FF/PM John Hutchison's Disability Hearing will commence. Trustee Dvorak seconded and the vote was all ayes, no nays and the meeting recessed at 8:02 AM.
To begin FF/PM John Hutchison's Disability Hearing a roll call was taken at 8:05 AM. On roll call were: Board President/Trustee Nick Rusher, Trustee Tom Dvorak, Trustee Paul Detlefs and Trustee/Secretary Mike Sawicki. Also present were: Keith Karlson of Richard J. Reimer, and Associates LLC., Carrie Pique, Transcriber for Reimer & Associates, Carol Bjankini, Recording Secretary, FF/PM John Hutchison and Joseph Roddy from the Law Offices of Joseph V. Roddy.
The Board motioned to appoint Keith Karlson Hearing Officer. Attorney Karlson opened the hearing pursuant to Article 4 of the Illinois Pension Code to determine the disability claim of FF/PM John Hutchison. As FF/PM Hutchison was previously send a Notice of Hearing advising him of these proceedings he opted to be represented by counsel. Attorney Karlson then explained in detail the process of the hearing and asked if FF/PM John Hutchison or his Attorney Joseph Roddy had any questions before proceeding. No questions were asked and FF/PM John Hutchison was then duly sworn.
As Attorney Roddy and FF/PM John Hutchison had previously received 14 exhibits prepared on behalf of the Pension Board the Hearing Officer then entered into evidence, in this case Exhibit No. 1 through 14. Attorney Roddy proceeded with a series of questions for FF/PM John Hutchison. FF/PM John Hutchison answered questions beginning from his January 10, 1994 date of hire, throughout his Glenview Fire Department career then focusing on the call received May 5, 2007 in which FF/PM John Hutchison incurred his injury. FF/PM John Hutchison explained when transported to the hospital they took an x-ray to rule out a broken left femur, and found no fracture, it was a soft tissue injury. Three days after the accident he went to an orthopedic specialist who started him on physical therapy which led to work hardening. During work hardening he started losing feeling in his left leg and the physical therapist referred him to one of the partners who in turn referred him to a surgeon in Indianapolis. The surgeon explained to FF/PM Hutchison that the left sciatic nerve was being strangled by scar tissue caused by the hamstring evolution. He also indicated that surgery was necessary to prevent paralysis in the left leg. Approximately six weeks after the surgery FF/PM Hutchison was released to physical therapy. In March 2008 it was determined by the physical therapist, the ergonomist and FF/PM John Hutchison that he had plateaued and his condition is as good as it's going to get.
FF/PM Hutchison explained to the Board his limitations which consist of, but are not limited to: shorter gait on the left side, fatigued within five or six steps when walking up hill or an incline, climbing stairs is difficult, lack of strength, attempting a ladder is painful, slow, and dangerous, everything needs to be pulled back and done at a slow pace.
Hearing Officer Karlson cross examined FF/PM John Hutchison. After a series of questions and answers the Hearing Officer asked FF/PM Hutchison about the three different physicians he was instructed to be examined by at the Boards direction. FF/PM Hutchison responded favorably and stated the three physicians had treated him fairly. Hearing Officer Karlson asked the Board members if they had any questions. Trustee Detlefs was the only member with questions. He inquired if the surgery improved FF/PM Hutchison's situation to some degree. FF/PM Hutchison explained that the surgery stopped his situation from deteriorating. If he didn't have the surgery he probably would have lost all feeling in his left leg. Trustee Detlefs also asked for clarification on the physical therapy. After FF/PM Hutchison answered, Trustee Detlefs had a question for counsel regarding the three doctors and their prognosis. The Hearing Officer explained that the Board will determine what the prognosis from each doctor means.
Hearing Officer Karlson than had a couple of questions for Fire Chief Wayne Globerger regarding FF/PM Hutchison's numbers, establishing his last day of pay and Worker's Compensation. Chief Globerger explained that after discussing with the Village Manager it was decided to keep extending his benefits until the hearing concluded. Once the hearing concluded the Village and Fire Department would make a determination.
Attorney Roddy referenced the 2005 case 362 Illinois Appellate 3rd, 197 Jensen, Raymond Jensen versus East Dundee Fire Protection District. After a brief overview and additional comments regarding FF/PM Hutchison, Attorney Roddy concluded his closing statement. Hearing Officer Karlson suggested the Board motion to adjourn to Executive Session for the purposes of deliberating over the evidence presented. At 8:30 AM Trustee Dvorak motioned to adjourn to Executive Session, Trustee Sawicki seconded and a roll call was taken and the vote was all ayes, no nays and the motion passed.
At 8:47 AM Trustee Dvorak motioned to come out of Executive Session, Trustee Sawicki seconded and a roll call was taken and the vote was all ayes, no nays and the motion passed. Hearing Officer Karlson reported a decision was not made as the Board had a couple of questions regarding light duty availability, in doing their fiduciary duty it is important these questions are addressed.
Hearing Officer Karlson explained that a light duty position needs to have existed prior to FF/PM Hutchison's application for benefits; meaning, they can't create a position for him; the position would have to be permanent, that he would never have to do any other job; and he would still have to be a firefighter.
Fire Chief Wayne Globerger was duly sworn and Hearing Officer Karlson proceeded with questions regarding light duty. The Chief testified that the Fire Department does not have a permanent light duty position for FF/PM Hutchison.
At 8:50 AM Trustee Detlefs motioned to move in to Executive Session, Trustee Sawicki seconded and a roll call was taken and the vote was all ayes, no nays and the motion passed.
Hearing Officer Karlson explained to the Board that they need to decide whether or not FF/PM Hutchison has proved, by a preponderance of evidence that he is, in fact, disabled, and then discuss whether or not that disability was occasioned by an act of duty.
At 8:57 AM Trustee Detlefs motioned to come out of Executive Session, Trustee Dvorak seconded and a roll call was taken and the vote was all ayes, no nays and the motion passed.
Hearing Officer Karlson reported that the Board had reached a consensus. Trustee Dvorak motioned to grant FF/PM John Hutchison a line of duty disability benefit to Article 4 of the Illinois Pension Code, Trustee Sawicki seconded and a roll call was taken and the vote was all ayes no nays and the motion passed.
Hearing Officer Karlson explained to FF/PM Hutchison that he would have to write a written opinion an order and send it through the mail; but today, July 17, 2008 will probably be recorded as his last day of pay, and the Pension Board will begin pension benefits tomorrow, July 18, 2008. The Hearing Officer stated that the hearing is now closed.
Additionally, transcripts from this Hearing and Executive Session have been provided to the Pension Board as public records.
The Pension meeting resumed at 9:00 AM as FF/PM John Hutchison's Disability Hearing closed.
Other Business: Revisions were made to the draft Administrative Rules of the Pension Board and distributed at the meeting. Attorney Karlson suggested the Board table the draft Administrative Rules of the Pension Board as he mentioned incorporating the new gift ban act. Trustee Rusher will work with the Attorney's office regarding the updated Administrative Rules of the Pension Board and follow-up at the October 21, 2008 meeting.
Trustee Rusher mentioned the upcoming Illinois Public Pension fund Association (IPPFA) 2008 Midwest Training Conference October 14 - 17, 2008. After a brief discussion Trustee Dvorak motioned the Pension Fund reimburse any FF Pension Board Trustee who attends this seminar. Trustee Rusher seconded and the vote was all ayes, no nays and the motion passed.
Trustee Rusher inquired about the obligation the Board has regarding verification letters to the Pensioners. Attorney Karlson explained that in most cases these letters are prepared and included with their check once a year. Attorney Karlson will draft a verification letter and forward to Trustee Rusher for processing. A return date will be established on the correspondence to the Pensioners and follow up will take place should notification not be returned.
Trustee Rusher is in receipt of a letter with a medical report attached from Attorney Reimer's office regarding FF Mark Gray's Annual Disability Examination and Evaluation. After the Board reviewed the correspondence which indicated Mark Gray remains disabled Trustee Sawicki motioned to continue FF Mark Gray's disability benefits. Trustee Detlefs seconded and the vote was all ayes, no nays and the motion passed.
Trustee Rusher will follow up with Attorney Reimer's office for FF Art Lutherus' Annual Disability Examination and Evaluation paperwork.
Trustee Rusher is in receipt and distributed to the Board a correspondence Village President Kerry Cummings sent Governor Blagojevich regarding HB-5088 - Public Pensions. The letter encourages the Governor to sign HB-5088 into law which would reform Article 3 and Article 4 pension funds. some provisions within HB-5088 will provide State and municipal policymakers, as well as taxpayers, with more concrete information on which to base future pension decisions.
Attorney Karlson mentioned a couple of changes pertaining to HB-5088; in particular a limitation on the duration of professional service contracts have been implemented as investment or consultant services will need to go out to bid every five (5) years. Also, an annual publication and transparency requirement was put into place.
Meeting Dates: The next meeting scheduled for 2008 is:
Tuesday, October 21, 2008
The above meeting is scheduled at 7:30 AM in Glenview Fire Station No. 6 at 1815 Glenview Road, Glenview IL.
Doug Oest adjourned the meeting at 8:00 AM.
Adjournment: Trustee Detlefs motioned to adjourn, Trustee Sawicki seconded and the vote was all ayes, no nays and the meeting adjourned at 10:30 AM.
Respectfully Submitted:Carol Bjankini
Recording Secretary
Glenview Firefighters’ Pension Fund