Laborers' & Retirement Board Employees' Annuity Benefit Fund of Chicago Board of Trustees met March 20.
Here is the minutes provided by the Board:
Public Participation:
None.
Approval Of Minutes From Previous Meetings:
It was moved by Trustee LoVerde, seconded by Trustee Joiner, that the regular minutes of Meeting No. 994 held on February 20, 2018 be approved as submitted.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner. Against -- None.
It was moved by Trustee Hamburger, seconded by Trustee LoVerde, that the minutes of Executive Sessions 1, 2 and 3 of Meeting No. 994 held on February 20, 2018 be approved as submitted.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner. Against -- None.
Schedule A – Applications For Refunds:
1. Refund of Contributions Due to Separation from Service
It was moved by Trustee LoVerde, seconded by Trustee Hamburger, that the applications presented for Refunds of Contributions Due to Separation from Service be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against – None.
2. Miscellaneous Refunds
It was moved by Trustee Hamburger, seconded by Trustee LoVerde, that the applications presented for Miscellaneous Refunds be approved and ordered paid.
Roll-call: For – Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Schedule B – Applications For Annuities:
1. Employee Annuities
It was moved by Trustee Joiner, seconded by Trustee Capasso, that the applications for Employee Annuities be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
2. Spouse and Child Annuities
It was moved by Trustee LoVerde, seconded by Trustee Capasso, that the applications for Spouse and Child Annuities be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Schedule C – Adjustment Refunds To New Annuitants:
It was moved by Trustee Joiner, seconded by Trustee Capasso, that the Adjustment Refunds to New Annuitants be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Schedule D – Applications For Duty Disability Benefits:
It was moved by Trustee LoVerde, seconded by Trustee Capasso that the applications for Duty Disability Benefits be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Schedule E – Applications For Ordinary Disability Benefits:
It was moved by Trustee Joiner, seconded by Trustee Keane, that the applications for Ordinary Disability Benefits be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Schedule F – Extension Of Duty Disability Benefits:
It was moved by Trustee Brown, seconded by Trustee LoVerde that the applications for Extension of Duty Disability Benefits, be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Schedule G – Extension Of Ordinary Disability Benefits:
It was moved by Trustee Capasso, seconded by Trustee Joiner, that the applications for Extension of Ordinary Disability Benefits be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Schedule H – Payment Of Uncashed Checks Of Deceased Members:
It was moved by Trustee Brown, seconded by Trustee LoVerde, that the applications for Payment of Uncashed Checks of Deceased Members be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Schedule I – Payment Of Expenses:
It was moved by Trustee LoVerde, seconded by Trustee Joiner, that Administrative and Investment Invoices be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Analysis Of Experience Study:
Gabriel Roeder Smith and Company (“GRS”) Presentation-
Mr. Rivera and Mr. Gundersen reviewed a revised version of the Experience Study that incorporated the results of the asset class mapping review requested by the Board at the Special Meeting on March 7, 2018 and discussed GRS’s recommendations which remained unchanged from the Special Meeting (see attached documents). The Board discussed the acceptable range of investment return assumptions and settled on the 7.25% assumption, which was determined to be within the acceptable range. The Board also agreed that the LABF should undergo an Experience Study again in three years (for the purposes of the December 31, 2020 valuation) so as to have the opportunity to refine any assumptions, if necessary, prior to the onset of actuarial-based funding beginning in payment year 2023.
It was moved by Trustee LoVerde, seconded by Trustee Hamburger, to implement the new assumptions as discussed, which included an assumed rate of return of 7.25% and the remaining economic and demographic assumptions as outlined in the presentation.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Investments Report:
Market Tracker-
Mr. Wrubel reviewed market performance for the month of February 2018.
February 28, 2018 Preliminary Performance Report-
Mr. Wrubel reviewed the February 28, 2018 Preliminary Performance Report.
RFP Discussions-
These topics were discussed in executive session.
Executive Session No. 1:
At 9:50 a.m., Trustee LoVerde requested an executive session under 5 ILCS 120/2(c)(7) to discuss the sale or purchase of securities, investments or investment contracts. Trustee Joiner seconded the motion.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
At 9:56 a.m., Trustee LoVerde made a motion, seconded by Trustee Capasso, that the executive session be adjourned and that the Board return to open session.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
It was moved by Trustee LoVerde, seconded by Trustee Brown, to invest $10 million in Levine Leichtman Capital Partners VI, L.P, subject to contract negotiation.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
It was moved by Trustee LoVerde, seconded by Trustee Joiner, to invest $15 million in Palladium Equity Partners V, LLC, subject to contract negotiation.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
It was moved by Trustee LoVerde, seconded by Trustee Brown, to invest 5% of LABF’s portfolio in Lazard Asset Management’s Global Low Volatility Equity strategy, subject to contract negotiation.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
It was moved by Trustee LoVerde, seconded by Trustee Hamburger, to issue an RFP for Hedged Credit manager services.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
It was moved by Trustee LoVerde, seconded by Trustee Brown, to issue an RFP Open-Ended Core Real Estate manager services.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
Trustee Hamburger requested that the Board members be reminded of the quiet periods related to the outstanding RFPs.
Administrative Report:
Legislative Matters
This topic was not specifically discussed in the meeting.
Miscellaneous-
Mr. Walsh reminded that Board that the due date for the annual funding request had changed as a result of PA 100- 0023 to July 1, 2018 and therefore must be finalized by the Board no later than the June 2018 Board Meeting. He stated that the topic will be on the agenda for the Board meeting scheduled for Tuesday, May 22, 2018. Mr. Walsh also informed the Board that Fund Counsel had made several attempts since last November to arrange for a meeting with City Corporation Counsel’s Office regarding pension contributions for City of Chicago employees receiving duty disability benefits from LABF, but that no such meeting had yet taken place.
Statements of Economic Interests – Mr. Carroll reminded the Board that the Economic Interest filings are due May 1, 2018 and informed them that they would be receiving an email from the County Clerk regarding the Statements of Economic Interests later in the week.
Legal Report:
Johnson Litigation-
Mr. Donham gave a status report on the Johnson litigation and noted that Mr. Krislov had filed a motion to recoup attorney fees associated with this matter.
Underwood Litigation-
This topic was discussed in executive session.
Executive Session No. 2:
At 10:09 p.m., Trustee LoVerde requested an executive session under 5 ILCS 120/2(c)(11) to discuss current or potential litigation involving the Fund. Trustee Capasso seconded the motion.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
At 10:18 a.m., Trustee LoVerde made a motion, seconded by Trustee Joiner, that the executive session be adjourned and that the Board return to open session.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
The Trustees took no action.
Adjournment:
With no further business, at 10:18 a.m., Trustee LoVerde made a motion to adjourn the meeting. Trustee Joiner seconded the motion.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner. Against -- None.
http://www.labfchicago.org/assets/1/33/March_20_2018_LABF_Reg_minutes_Final_with_Attachments.pdf
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