Chicago City Wire

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.

Board Members:

I am transmitting herewith the minutes for the meeting of the Retirement Board which was held on June 19, 2018. The minutes are comprised of the following:

• Public Participation

• Approval of Minutes from Prior Meetings

• Schedule A: Applications for Refunds

1. Refund of Contributions Due to Separation from Service 2. Miscellaneous Refunds

• Schedule B: Applications for Annuities

1. Employee Annuities 2. Spouse and Child Annuities

• Schedule C: Adjustment Refunds to New Annuitants

• Schedule D: Applications for Duty Disability Benefits

• Schedule E: Applications for Ordinary Disability Benefits

• Schedule F: Applications for Extension of Duty Disability Benefits

• Schedule G: Applications for Extension of Ordinary Disability Benefits

• Schedule H: Payment of Uncashed Checks of Deceased Members

• Schedule I: Payment of Administrative Expenses

• Robert S. Molaro & Associates Presentation

• Investments Report

• Executive Session No. 1

• Executive Session No. 2

• Administrative Report

• Legal Report

• Executive Session No. 3

• Executive Session No. 4

• Adjournment

All the foregoing matters were checked upon receipt in the office of the Retirement Board and were found to be hereinafter set forth.

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. (see attached).

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.

Roll-call: For -- Trustees Roa, Keane, LoVerde, Hamburger, Capasso, Brown and Joiner.

Against -- None.

http://www.labfchicago.org/assets/1/33/June_19_2018_LABF_Reg_minutes_Final_with_Attachments_Redacted.pdf