Municipal Employees' Annuity and Benefit Fund of Chicago met May 18.
Here is the minutes provided by the Fund:
Public Comment:
There were no requests to address the Board.
Legislation:
Legislative Update
Mr. Mohler updated the Board on proposed legislation that may affect the Fund. Mr. Mohler specifically addressed the status of Senate Bill 14 and Senate Bill 16.
Trustee Summers and Ms. Flannery arrived.
(The following topics were taken out of order)
Investments:
Market Environment-
Mr. Wesner updated the Board on issues currently affecting the market and the impact on the Fund’s investments.
Monthly Performance Report-
Mr. Wrubel reviewed the performance of the Fund’s investments for the month of April.
First Quarter Performance Report-
Mr. Wrubel reviewed the performance of the Fund’s investments for the first quarter of 2017.
Watchlist-
Mr. Wesner reported that the following managers remain on watch: Keeley, Geneva and FIS.
Liquidity Needs-
Mr. Lopez reported that funds on hand at the Fund were sufficient to pay June benefit payments so no drawdowns are required at this time.
Alternative Asset Classes Discussion-
Staff and the Investment Consultant discussed ideas reagrding the Fund's alternative assets and the potential changes in future allocations.
Other:
2016 Acturial Report Presentation-
Mr. Matt Strom, Mr. Jacob Libauskas and Mr. Dan Reusz of Segal Consulting, the Fund’s Actuarial Consultant, presented the Fund’s 2016 Actuarial Valuation report. Following the report, on the recommendation of staff and Fund Counsel, Trustee McMahon made a motion to accept and file the 2016 Actuarial Report. Seconded by Trustee Johnson.
Carried: Ayes – Trustee Guest, Trustee Johnson, Trustee Keane, Trustee McMahon and Trustee
Summers. Nays – None.
A full copy of the 2016 Actuarial Report, Cover Letter and Presentation slides are on file at the Fund offices and located on the Fund’s website at www.meabf.org.
FOIA Update-
Ms. Ruffolo updated the Board as to requests made under the Illinois Freedom of Information Act.
Legal Update-
The Board moved into closed session at 11:44 a.m. in accordance with 5 ILCS 120/2(c)(11) and (1) to discuss litigation and potential litigation which impacts or involves the Fund and matters of personnel. Motion by Trustee Johnson. Seconded by Trustee McMahon.
Roll Call:
Trustee Guest Aye
Trustee Johnson Aye
Trustee Keane Aye
Trustee McMahon Aye
Trustee Summers Aye
Motion carried.
The Board moved into open session at 12:54 p.m. on a motion by Trustee McMahon. Seconded by Trustee Summers. Carried by a unanimous voice vote.
In open session, and after discussion of the fiduciary duties of Trustees, Trustee McMahon made a motion to direct Fund Counsel to research and prepare possible litigation regarding the need for proper funding of the plan by the City of Chicago, in light of the Supreme Court’s ruling in the In Re Pension Litigation case including the Court’s statement that a direct action might be appropriate were the Fund to be at risk of imminent default or bankruptcy. Counsel to report back to the Board by the conclusion of the Illinois General Assembly’s 2017 Veto Session. Seconded by Trustee Summers.
Carried: Ayes – Trustee Guest, Trustee Johnson, Trustee Keane, Trustee McMahon and Trustee
Summers. Nays – None.
Adjournment:
There being no further business to come before the Board, Trustee McMahon made a motion to adjourn the meeting at 12:57 p.m. Seconded Trustee Summers. Carried: Ayes - Trustee Guest, Trustee Johnson, Trustee Keane, Trustee McMahon and Trustee Summers. Nays-None.
http://www.meabf.org/assets/pdfs/meetings/minutes/2017-05_Web_Minutes.pdf
Alerts Sign-up