Laborers' & Retirement Board Employees' Annuity Benefit Fund of Chicago Board of Trustees met June 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. 985 held on May 23, 2017 be approved as submitted.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
It was moved by Trustee LoVerde, seconded by Trustee Capasso, that the minutes of executive session 1 of Meeting No. 985 held on May 23, 2017 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 Joiner, that the 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 Capasso, 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 Joiner, 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
Mr. Donham and Mr. Carroll reviewed some of the specifics related to the refund for Mr. Wilton Sumerlin. 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
It was moved by Trustee Joiner, seconded by Trustee LoVerde, 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 LoVerde, seconded by Trustee Capasso, 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 LoVerde, 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 Capasso, seconded by Trustee LoVerde, 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 Joiner, 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.
Investments Report
Monthly Performance Report Mr. Wesner reviewed the May 31, 2017 Performance Report.
Marquette Associates Transition Update Mr. Obed updated the Trustees on the research capabilities of Marquette Associates and how the research team can assist in strengthening the LABF portfolio. Mr. Obed also noted that the current fee structure of the Fund was competitive compared to the industry average, but noted some improvement in fees was possible.
Index Manager RFP Mr. Wesner suggested the Trustees authorize a search for an index manager capable of providing a variety of index services on both a short and long-term basis, depending on the evolving needs of the LABF.
It was moved by Trustee Hamburger, seconded by Trustee LoVerde, to approve an RFP for Equity and Fixed Income Index Strategy Investment Advisory Services as discussed in the meeting.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Administrative Report
Cash Needs Mr. Walsh reviewed the year-to-date cash needs of the Fund as well as the upcoming estimated cash needs.
2017 Annuitant Member Election Mr. Walsh discussed the 2017 Trustee Election for the Annuitant Member on the Board. After a review of some of the considerations related to the Annuitant Member Election, the Board gave the staff guidance as to the form of election to be held in October, 2017. Mr. Walsh stated that the LABF staff would prepare and present a draft of the Annuitant Member Election Rules at the July Board meeting.
Legislative Matters Mr. Walsh reviewed a memo from the Fund’s Legislative Liaison regarding potential legislation and other activity in Springfield. See attached memo.
Treatment of Independent Contractors Mr. Walsh discussed the hiring of LABF annuitants as independent contractors for entities defined as employers under Article 11 of the Illinois Pension Code. Mr. Walsh also reviewed several sections of the Illinois Pension Code pertaining to such contractual arrangements and the Trustees agreed that this practice is permissible under certain circumstances. Mr. Walsh and the Trustees agreed that the LABF should continue to follow what is outlined in the Statutes regarding these types of arrangements.
The Trustees also briefly discussed the definition of “Employer” in Article 11 of the Illinois Pension Code. The Trustees asked Fund Counsel to review the definition of “Employer” and provide guidance regarding what entities fall under that definition.
Funding Resolution This item was taken out of order. Mr. Walsh presented a draft of the 2018 Funding Resolution for the Trustees to review. The draft included a request for employee and employer contributions from the City of Chicago associated with employees on duty disability during the previous year. The Trustees asked Mr. Walsh to explain the changes in the Resolution to the City Budget Director prior to sending the Resolution.
This vote was taken out of order. It was moved by Trustee Capasso, seconded by Trustee LoVerde, to approve the 2018 Funding Resolution as discussed in the meeting.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Executive Session No. 1
At 2:49 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 Capasso seconded the motion.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
At 2:54 p.m., Trustee LoVerde made a motion, seconded by Trustee Keane, that the executive session be adjourned and that the Board return to open session.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
The Trustees took no action.
Executive Session No. 2
At 2:54 p.m., Trustee Hamburger requested an executive session under 5 ILCS 120/2(c)(1) to discuss personnel or legal counsel matters. Trustee LoVerde seconded the motion.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
At 3:03 p.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 and Joiner.
Against -- None.
It was moved by Trustee Hamburger, seconded by Trustee LoVerde, to approve the budget modifications discussed in executive session.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
Administrative Report Continued
Miscellaneous Mr. Walsh informed the Trustees regarding Marquette Associates’ upcoming client conference.
Legal Report
The legal topics were conducted in executive session.
Executive Session No. 3
At 3:09 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 Joiner seconded the motion.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
At 3:39 p.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 and Joiner.
Against -- None.
Adjournment
With no further business, at 3:39 p.m., Trustee Capasso made a motion to adjourn the meeting. Trustee Joiner seconded the motion.
Roll-call: For-- Trustees Roa, Keane, LoVerde, Hamburger, Capasso and Joiner.
Against -- None.
http://www.labfchicago.org/assets/1/33/June_20_2017_LABF_Reg_minutes_Draft_Final_With_Attachment.pdf
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