Laborers' & Retirement Board Employees' Annuity Benefit Fund of Chicago Board of Trustees met May 23.
Here is the minutes provided by the Board:
Report of Meeting No. 985 held on May 23, 2017, starting at 1:03 p.m. at the office of the Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago (“Fund” or “LABF”).
The following notes attendance:
Board Members: Victor Roa – President (Union Appointed Member)
Erin Keane – Vice President (City Comptroller, City of Chicago)
Michael LoVerde – Secretary (Active Employee Elected Member)
Carol Hamburger – Trustee (Managing Deputy Comptroller, City of Chicago)
Kurt Summers, Jr. – Trustee (City Treasurer, City of Chicago) entered at 1:49pm
James Capasso, Jr. – Trustee (Annuitant Elected Member)
James Joiner – Trustee (Active Employee Elected Member)
Staff & Consultants: Graham Grady – Taft Stettinius & Hollister LLP, Fund’s Counsel
Cary Donham – Taft Stettinius & Hollister LLP, Fund’s Counsel
Dr. Terence Sullivan – Fund’s Physician
James Wesner – Marquette Associates, Investment Consultant
Kweku Obed – Marquette Associates, Investment Consultant
Neil Capps – Marquette Associates, Client Analyst
Alex Rivera – Gabriel, Roeder, Smith & Company, Actuary
Ryan Gundersen – Gabriel, Roeder, Smith & Company, Actuary
Michael Walsh – Executive Director and Chief Investment Officer
Peggy Grabowski – Comptroller
John Carroll – Compliance Administrator
Sheila Jones – Administrative Coordinator
Nadia Oumata – Manager of Accounting and Investments
Nicole Evangelista – Payment Services Coordinator
Irene Velazquez – Payment Services Assistant
Absent: Carole Brown – Trustee (Chief Financial Officer, City of Chicago)
Observers: None
President Roa determined that a quorum was present after Trustee LoVerde took attendance.
Public Participation
None
Approval Of Minutes From Previous Meetings
It was moved by Trustee LoVerde, seconded by Trustee Capasso, that the regular minutes of Meeting No. 984 held on April 18, 2017 be approved as submitted.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger and Capasso.
Against -- None.
Abstain -- Trustee Joiner
It was moved by Trustee LoVerde, seconded by Trustee Hamburger, that the minutes of executive sessions 1 and 2 of Meeting No. 984 held on April 18, 2017 be approved as submitted.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger and Capasso.
Against -- None.
Abstain --Trustee Joiner
Schedule A – Applications For Refunds
1. Refund of Contributions Due to Separation from Service
It was moved by Trustee Capasso, seconded by Trustee Hamburger, that Refunds of Contributions Due to Separation from Service be approved and ordered paid.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Schedule B – Applications For Annuities
1. Employee Annuities
It was moved by Trustee LoVerde, seconded by Trustee Joiner, that applications presented for Employee Annuities be approved and ordered paid.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
2. Spouse and Child Annuities
It was moved by Trustee LoVerde, seconded by Trustee Capasso, that applications presented for Spouse and Child Annuities be approved and ordered paid.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Schedule C – Adjustment Refunds To New Annuitants
It was moved by Trustee LoVerde, seconded by Trustee Joiner, that Adjustment Refunds to New Annuitants be approved and ordered paid.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Schedule D – Applications For Duty Disability Benefits
This item was taken out of order. It was moved by Trustee LoVerde, seconded by Trustee Joiner, that the applications for Duty Disability Benefits be approved and ordered paid.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Schedule E – Applications For Ordinary Disability Benefits
It was moved by Trustee Joiner, seconded by Trustee LoVerde, that the applications for Ordinary Disability Benefits be approved and ordered paid.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Schedule F – Extension Of Duty Disability Benefits
It was moved by Trustee Joiner, seconded by Trustee Capasso, that the applications for Extension of Duty Disability Benefits, be approved and ordered paid.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Schedule G – Extension Of Ordinary Disability Benefits
It was moved by Trustee Joiner, seconded by Trustee Keane, that the applications for Extension of Ordinary Disability Benefits be approved and ordered paid.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Schedule H – Payment Of Uncashed Checks Of Deceased Members
It was moved by Trustee LoVerde, seconded by Trustee Capasso, 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 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 and Joiner.
Against -- None.
Presentation By Gabriel, Roeder, Smith & Company
Alex Rivera and Ryan Gundersen, of Gabriel, Roeder, Smith & Company, reviewed a summary of the 2016 actuarial valuation. See attached documents.
Investments Report
Marquette Associates Onboarding
Mr. Walsh re-introduced the investment consultant team from Marquette Associates: James Wesner, Kweku Obed and Neil Capps. Mr. Wesner updated the Trustees on the transition timeline. Mr. Obed presented a market update.
April 30, 2017 Preliminary Performance Report
Mr. Walsh reviewed the April 30, 2017 Preliminary Performance Report prepared by NEPC.
1st Quarter Market Report and Performance
Mr. Walsh reviewed the 1st quarter Market Report prepared by NEPC.
4th Quarter Private Equity, Debt and Real Estate Reports
Mr. Walsh reviewed the 4th quarter private equity, private debt and private real estate reports that were prepared by NEPC.
Follow-up on MWDBE Policies
Mr. Walsh presented two additional reports requested by the Board at the previous Board meeting which outlined in further detail the Fund’s spending in 2016 with MWDBE service providers and vendors as well as the diversity of the Fund’s employees. Trustee Hamburger referenced a link on the City of Chicago’s website which lists MWDBE companies for the Fund’s consideration. Trustee Summers recommended that the Fund begin requesting ownership and senior staff diversity information from its vendors. The Trustees suggested additional actions staff can consider to increase the use of MWDBE service providers and vendors.
Administrative Report
Cash Needs
Mr. Walsh reviewed the year-to-date cash needs of the Fund as well as the upcoming estimated cash needs.
Disability Service Rule
Mr. Walsh gave a brief update on the progress of this matter.
Legislative Matters
Mr. Walsh updated the Board on the status of Senate Bill 14 which passed both the House and Senate and Senate Bill 16 which passed in the Senate recently. Mr. Walsh also discussed House Bill 4027 and House Bill 4045.
Member Beneficiary Matter
Mr. Carroll reviewed the details of the Mathew Zwiesler matter which pertained to a beneficiary designation form that Mr. Zwiesler signed and submitted to MEABF during the period his pension deductions were being directed to MEABF. Mr. Donham referred to a memo he prepared and gave his recommendation that beneficiary forms filed with another pension fund, such as the one filed by Mr. Zwiesler with the MEABF, be considered invalid for LABF purposes. The Board agreed with Mr. Donham’s recommendation and determined that the beneficiary form that the LABF had from MEABF for Mr. Zweissler was invalid. The Board directed staff to contact the family of Mr. Zwiesler to discuss the next steps in the process.
Illinois Department of Public Health (Vital Records Data)
Mr. Walsh informed the Board that due to a new law that allows the LABF access to vital records of deceased Illinois residents, the LABF has been able to identify several of its deceased members of whom the Fund had no record of death. Mr. Walsh informed the Board that he will give an update on this matter at a future Board meeting.
Miscellaneous
Annual Signature Verification Form - This item was taken out of order. Mr. Walsh gave a brief update on the annual Signature Verification Form project.
Executive Session No. 1
At 3:06 p.m., Trustee LoVerde requested an executive session under 5 ILCS 120/2(c)(11) to discuss current or potential litigation of the Fund. Trustee Hamburger seconded the motion.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Summers, Hamburger, Capasso and Joiner.
Against -- None.
At 3:19 p.m., Trustee LoVerde made a motion, seconded by Trustee Hamburger, that the executive session be adjourned and that the Board return to open session.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Summers, Hamburger, Capasso and Joiner.
Against -- None.
It was moved by Trustee LoVerde, seconded by Trustee Hamburger, to send a letter to the Cook County State’s Attorney’s Office advising them of the Fund’s suspicion that fraudulent actions were committed against the Fund.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Summers, Hamburger, Capasso and Joiner.
Against -- None.
Legal Report
Coveliers Litigation
Mr. Donham reported that he had filed a brief on May 10th and that the plaintiff had 35 days from May 10th to file a response.
Carmichael Litigation
Mr. Donham reported that there was no ruling in the summary judgment hearing for the Carmichael matter.
Adjournment
With no further business, at 3:21 p.m., Trustee LoVerde made a motion to adjourn the meeting. Trustee Summers seconded the motion.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Summers, Hamburger, Capasso and Joiner.
Against -- None.
http://www.labfchicago.org/assets/1/33/May_23_2017_LABF_Reg_minutes_Final_with_Attachments.pdf
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