Laborers' & Retirement Board Employees' Annuity Benefit Fund of Chicago Board of Trustees met June 19.
Here is the minutes provided by the Board:
Report of Meeting No. 998 held on June 19, 2018, starting at 1:07 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)
Carole Brown – Trustee (Chief Financial Officer, City of Chicago)
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, via telephone
Dr. Terence Sullivan – Fund’s Physician
Robert S. Molaro – Robert S. Molaro and Associates, Legislative Liaison
James Wesner – Marquette Associates, Fund’s Investment Consultant
Kweku Obed – Marquette Associates, Fund’s Investment Consultant
Neil Capps – Marquette Associates, Fund’s Investment Consultant
Jeremy Zirin – Marquette Associates, Fund’s Investment Consultant
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
Tina Rhoten – Benefits Manager
Paul Rzeszutko – Assistant Benefits Manager
Nicole Evangelista – Payment Services Coordinator
Irene Velazquez – Payment Services Assistant
Absent: Kurt Summers, Jr. – Trustee (City Treasurer, City of Chicago)
Observers: Jabari Porter, City of Chicago Treasurer’s Office
Jeffrey Johnson, Municipal Employees’ Annuity and Benefit Fund of Chicago
President Roa determined that a quorum was present after Secretary 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. 997 held on May 22, 2018 be approved as submitted.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner.
Against -- None.
It was moved by Trustee LoVerde, seconded by Trustee Capasso, that the minutes of Executive Sessions 1, 2 and 3 of Meeting No. 997 held on May 22, 2018 be approved as submitted.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner.
Against -- None.
SCHEDULE A – APPLICATIONS FOR REFUNDS
1. Refund of Contributions Due to Separation from Service[is this correct votes? Some confusion]
It was moved by Trustee Hamburger, seconded by Trustee LoVerde, 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.
SCHEDULE B – APPLICATIONS FOR ANNUITIES
1. Employee Annuities
It was moved by Trustee Hamburger, seconded by Trustee Joiner, 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 Capasso, seconded by Trustee Hamburger, 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 LoVerde, seconded by Trustee Joiner, 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 Brown, 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, Brown and Joiner.
Against -- None.
SCHEDULE E – APPLICATIONS FOR ORDINARY DISABILITY BENEFITS
It was moved by Trustee Capasso, 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, Brown and Joiner.
Against -- None.
SCHEDULE F – EXTENSION OF DUTY DISABILITY BENEFITS
It was moved by Trustee LoVerde, seconded by Trustee Joiner 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 LoVerde, 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 Capasso, seconded by Trustee LoVerde, that the applications for 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 Joiner, seconded by Trustee LoVerde, that Administrative Expenses be approved and ordered paid.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner.
Against -- None.
PRESENTATION BY ROBERT S. MOLARO & ASSOCIATES
Robert Molaro of Robert S. Molaro & Associates provided the Board with a legislative update. He reviewed the State’s budget deal as well as summarized certain bills that have been introduced in Springfield and gave an update on the status of the bills. See attached memos.
INVESTMENTS REPORT
Market Tracker
Mr. Obed reviewed May 2018 market performance.
May 31, 2018 Preliminary Performance Report
Mr. Wesner reviewed the Fund’s May 31, 2018 Preliminary Performance Report.
Open-Ended Core Real Estate Fund RFP
This topic was discussed in executive session
EXECUTIVE SESSION NO. 1
At 1:44 p.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 Brown seconded the motion.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner.
Against -- None.
At 2:22 p.m., Trustee Hamburger 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.
No action was taken. Trustees instructed Fund staff and Marquette to proceed in setting up the presentations as discussed.
LEGAL REPORT
Underwood Litigation
This topic was taken out of order and discussed in executive session.
EXECUTIVE SESSION NO. 2
At 2:32 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 Joiner seconded the motion.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner.
Against -- None.
At 2:46 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, Brown and Joiner.
Against -- None.
No action was taken.
ADMINISTRATIVE REPORT
Annual Funding Resolution
Mr. Walsh discussed the events that led up to the final version of the Funding Resolution for the year 2018, which was approved in 2017, and then reviewed the draft of the current Funding Resolution for the year 2019. The Trustees suggested some further clarifications to the Funding Resolution for the year 2019.
It was moved by Trustee LoVerde, seconded by Trustee Capasso, to approve the 2019 Funding Resolution subject to there being no objections to the revised version which would be circulated to the Board for review prior to submission.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner.
Against -- None.
Proposed Payee Agent Process Review
Mr. Carroll discussed proposed changes to the procedure for paying a nursing home on behalf of a member when that member (1) cannot manage his or her own finances, (2) has no designated Power of Attorney or legal guardian, and (3) has nobody else providing care to him or her. Mr. Carroll explained that the new procedure was designed to mimic the “Petition in Lieu [of guardian]” process and includes written assurance from the nursing home that it will take on the responsibility of completing the necessary forms and informing the Fund immediately of the member’s death or any other relevant changes associated with the status of the member’s condition or care.
The Board gave direction to Fund staff to proceed with the new procedure.
Miscellaneous
2018 Trustee Election - Mr. Walsh informed the Board of the upcoming election for an active member Trustee representative. Mr. Walsh reported that this election would to be conducted as a walk-in election, unless the Board directed staff otherwise, and that more information regarding the election would be presented at the July 24th board meeting.
Harassment Training - Mr. Walsh reported that the harassment training for LABF Staff and LABF Trustees has been postponed and that he would inform Trustees of the new date once finalized.
Marquette Investment Symposium – Mr. Walsh reminded Trustees that the Marquette Investors Symposium will be held on September 28, 2018.
LEGAL REPORT
Fraud Matter
This topic was discussed in executive session.
EXECUTIVE SESSION NO. 3
At 3:08 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 Hamburger seconded the motion.
Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner.
Against -- None.
At 3:30 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, Hamburger, Capasso, Brown and Joiner.
Against -- None.
The Trustees took no action but directed Fund staff and Fund Counsel to proceed with negotiations.
Appeal of Denied Benefits
This topic was discussed in executive session.
EXECUTIVE SESSION NO. 4
At 3:30 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 3:35 p.m., Trustee LoVerde made a motion, seconded by Trustee Brown, 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 3:35 p.m., Trustee Hamburger made a motion to adjourn the meeting. Trustee Keane seconded the motion.
http://www.labfchicago.org/assets/1/33/June_19_2018_LABF_Reg_minutes_Final_with_Attachments.pdf
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