minutes regular meeting no. 976 april 18, 2012 - FABF
minutes regular meeting no. 976 april 18, 2012 - FABF
minutes regular meeting no. 976 april 18, 2012 - FABF
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MINUTES<br />
REGULAR MEETING NO. <strong>976</strong><br />
APRIL <strong>18</strong>, <strong>2012</strong><br />
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April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong><br />
Agenda<br />
1. Roll Call<br />
2. Administrative Items<br />
A. Approval of Minutes Regular Meeting 975<br />
B. Minimum Formula Annuities<br />
C. Widow’s and Children’s Annuities<br />
D. Refunds<br />
E. Death Benefits<br />
F. Partial Payments<br />
G. Benefit Recalculations<br />
H. Payments Pursuant to Court Order (None)<br />
I. Requests for Permission<br />
i. Guardianship<br />
ii. Reside Out of State (None)<br />
J. Gift Fund (Information Only)<br />
K. Removals<br />
L. Expenditures<br />
M. Executive Director’s Report<br />
i. Monthly Report<br />
ii. <strong>2012</strong> Expenditures to Date (Information Only)<br />
3. Committees<br />
A. Investment – Fabrizio/Shanahan<br />
B. Legal - Martin/Stewart<br />
C. Legislative – Carlson/Fabrizio<br />
4. Board Physician Reviews of Disability Recipients<br />
5. Hearings<br />
A. Occupational Disease Disability (None)<br />
B. Duty Disability<br />
i. Lt Thomas Power, Engine 95 ......................................................................................... 9:00 a.m.<br />
ii. FF/PM David J. Welsh, Engine 127 .............................................................................. 9:30 a.m.
Page 1 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
1. ROLL CALL: President Michael Shanahan, Vice-President Stephanie Neely, Secretary<br />
Anthony Martin, Trustees Amer Ahmad, Wally Carlson and Charles Stewart, III.<br />
TRUSTEES PRESENT LATER: None<br />
TRUSTEES ABSENT: Trustees Dan Fabrizio and Susana Mendoza<br />
OTHERS PRESENT: Fund physician, George Motto, M.D.; Fund Attorneys, Mary Patricia<br />
Burns and Vincent Pinelli; Deputy Comptroller James Raussen; Assistant Treasurer Tim Hicks,<br />
Assistant to the City Clerk, Patrick O’Malley, Executive Director Kenneth Kaczmarz, and Fund<br />
Staff Lori Lund and Kristy Maufas. Chief Investment Officer Michael Moran and Fund Staff<br />
Jaclyn McAllister, Matthew Clark and Tom Kulbida were present for the Administrative Items.<br />
2. ADMINISTRATIVE ITEMS:<br />
A. APPROVAL OF MINUTES OF REGULAR MEETING 975, MARCH 21, <strong>2012</strong>:<br />
On motion of Martin, seconded by Ahmad, the <strong>minutes</strong> of the <strong>regular</strong> <strong>meeting</strong> number 975,<br />
held on March 21, <strong>2012</strong>, were accepted and approved without reading, each member having<br />
been previously furnished with a copy. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
B. MINIMUM FORMULA ANNUITIES:<br />
12321 MICHAEL W. CECICH, Paramedic Field Chief 4-5-5<br />
Born: 01/09/1957 $7,817.13 a month beginning April 11, <strong>2012</strong><br />
Ent. CFD: 06/23/1978 based on 75%<br />
Retired: 04/11/<strong>2012</strong> $117.26 annuity increment, 1.5%, begins<br />
February 1, 2017, last one on<br />
January 1, 2036<br />
COLLECT $73.46 FOR 2011 ERROR IN DEDUCTIONS<br />
REFUND $<strong>18</strong>1.59 FOR 2006 ERRORS IN DEDUCTIONS AND $48,548.54<br />
SPOUSE CONTRIBUTIONS<br />
12<strong>18</strong>7 THOMAS J. HINCKS, Firefighter, Truck 45<br />
Born: 10/16/1951 $5,478.34 a month beginning March 6, <strong>2012</strong><br />
Ent. CFD: 02/01/1983 based on 75%<br />
Retired: 03/06/<strong>2012</strong> $164.35 annuity increment, 3%, begins<br />
April 1, 2013<br />
- 1 -
Page 2 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
MINIMUM FORMULA ANNUITIES:<br />
10394 ROBERT S. HOFF, Fire Commissioner, Headquarters<br />
Born: 04/17/1956 $9,766.50 a month beginning March 3, <strong>2012</strong><br />
Ent. CFD: 02/16/1977 based on 75%<br />
Retired: 03/03/<strong>2012</strong> $146.50 annuity increment, 1.5%, begins<br />
May 1, 2016, last one on<br />
January 1, 2035<br />
COLLECT $159.56 FOR 2003 ERRORS IN DEDUCTIONS<br />
REFUND $23,859.65 FOR 1999-2000 AND 2004-2011 ERRORS IN DEDUCTIONS<br />
10557 KEVIN J. O’BRIEN, Lieutenant, Engine 49<br />
Born: 01/26/1950 $6,379.07 a month beginning March 31, <strong>2012</strong><br />
Ent. CFD: 07/16/1977 based on 75%<br />
Retired: 03/31/<strong>2012</strong> $191.37 annuity increment, 3%, begins<br />
April 1, 2013<br />
13307 KYUNG PANG, Firefighter, Engine 96<br />
Born: 11/09/1961 $4,566.35 a month beginning April 10, <strong>2012</strong><br />
Ent. CFD: 02/17/1987 based on 65%<br />
Retired: 04/10/<strong>2012</strong> $68.50 annuity increment, 1.5%, begins<br />
December 1, 2021, last one on<br />
January 1, 2040<br />
REFUND $28,681.83 SPOUSE CONTRIBUTIONS<br />
On motion of Martin, second by Carlson, and by unanimous vote, the foregoing applications<br />
for minimum formula annuities accompanied by staff accountant's letters as to amounts and<br />
all necessary records were approved and granted to those applicants under provisions of the<br />
Code in the amounts and under the terms set forth. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
C. WIDOW’S AND CHILDREN’S ANNUITIES:<br />
6827 JOYCE M. BOIN, widow of Anthony R. Boin, retired since June 6, 1994<br />
Born: 06/06/1931 $3,038.38 a month beginning March 26, <strong>2012</strong><br />
Ent. CFD: 05/02/1955<br />
Deceased: 03/25/<strong>2012</strong><br />
- 2 -
Page 3 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
WIDOW’S AND CHILDREN’S ANNUITIES:<br />
7722 LAVON FARRELL BY MARY THERESE LEE, widow of Harry P. Farrell, retired<br />
since February 4, 1987<br />
Born: 04/22/1933 $1,495.94 a month beginning March 5, <strong>2012</strong><br />
Ent. CFD: 03/<strong>18</strong>/1958<br />
Deceased: 03/04/<strong>2012</strong><br />
10013 MARGIE ELAYNE HOWARD, widow of Raymond A. Howard, retired since<br />
February 27, 1999<br />
Born: 12/15/1938 $2,383.07 a month beginning February 17, <strong>2012</strong><br />
Ent. CFD: 08/06/1962<br />
Deceased: 02/16/<strong>2012</strong><br />
9089 DANA PANOZZO, widow of Fioravante E. Pa<strong>no</strong>zzo, retired since January 26, 2002<br />
Born: 01/26/1939 $2,629.48 a month beginning March 9, <strong>2012</strong><br />
Ent. CFD: 08/16/1966<br />
Deceased: 03/08/<strong>2012</strong><br />
6165 HELENA K. WILLS, widow of Clarence R. Wills, retired since September 4, 1984<br />
Born: 08/31/1921 $2,096.67 a month beginning March 14, <strong>2012</strong><br />
Ent. CFD: 06/16/1952<br />
Deceased: 03/13/<strong>2012</strong><br />
On motion of Martin, second by Stewart, and by unanimous vote, the foregoing applications<br />
for widows' and childrens' annuities accompanied by staff accountant's letters as to amounts<br />
and all necessary records were approved and granted to those applicants under provisions of<br />
the Code in the amounts and under the terms set forth. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
D. REFUND OF CONTRIBUTIONS:<br />
16236 SHERIDA M. ALLEN, Paramedic, Ambulance 29<br />
Born: 08/04/1972 $46,520.77 Refund of Contributions<br />
Ent. CFD: 03/<strong>18</strong>/2002<br />
Resigned: 03/<strong>18</strong>/<strong>2012</strong><br />
- 3 -
Page 4 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
REFUND OF CONTRIBUTIONS:<br />
15179 DAVID A. BLANCO, Paramedic In Charge, Ambulance 45<br />
Born: 09/30/1971 $28,866.<strong>18</strong> Refund of Contributions<br />
Ent. CFD: 11/01/1996<br />
Discharged: 11/06/2002<br />
On motion of Martin, second by Neely and by unanimous vote, the foregoing refund of<br />
contributions were granted under provisions of the Code in the amounts and under the terms<br />
set forth. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
E. DEATH BENEFITS:<br />
6827 ANTHONY R. BOIN, retired since June 6, 1994<br />
Born: 06/06/1931 $6,000.00 to Joyce Boin, widow<br />
Ent. CFD: 05/02/1955<br />
Deceased: 03/25/<strong>2012</strong><br />
8379 PHILLIP J. CENTA, retired since December 31, 2000<br />
Born: 03/28/1931 $6,000.00 1/3 each to Kathy Kelter, James<br />
Ent. CFD: 05/16/1962 W. Centa and Tom Centa, children<br />
Deceased: 01/22/<strong>2012</strong><br />
7722 HARRY P. FARRELL retired since February 4, 1987<br />
Born: 04/22/1933 $1,650.00 to the Chicago Firemen’s Association<br />
Ent. CFD: 03/<strong>18</strong>/1958 Credit Union<br />
Deceased: 03/04/<strong>2012</strong> $4,350.00 to Lavon Farrell, widow by<br />
Mary Therese Lee, POA<br />
9241 LEO T. GLEASON, retired since January 31, 2004<br />
Born: 01/31/1941 $6,000.00 to Kimberly Lesauskis, daughter<br />
Ent. CFD: 02/01/1967<br />
Deceased: 02/20/<strong>2012</strong><br />
10013 RAYMOND A. HOWARD, retired since February 27, 1999<br />
Born: 12/15/1938 $6,000.00 to Margie Elayne Howard, widow<br />
Ent. CFD: 08/06/1962<br />
Deceased: 02/16/<strong>2012</strong><br />
- 4 -
Page 5 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
DEATH BENEFITS:<br />
9815 JERRY D. LEBEAU, retired since April 19, 1995<br />
Born: 06/28/1933 $6,000.00 to Bruce Lebeau, son<br />
Ent. CFD: 04/16/1970<br />
Deceased: 08/14/2011<br />
6049 ROBERT J. QUAYLE, retired since March 27, 1988<br />
Born: 03/22/1922 $6,000.00 $1,500.00 to Pamela Quayle Trust<br />
Ent. CFD: 10/16/1951 (other beneficiaries granted in prior <strong>meeting</strong>)<br />
Deceased: 08/13/2011<br />
9023 ROBERT A. ROKICKI, retired since November 29, 1993<br />
Born: 11/29/1923 $6,000.00 1/3 each to Robert J. Rokicki<br />
Ent. CFD: 05/01/1966 Michael H. Rokicki, and David J.<br />
Deceased: 03/16/<strong>2012</strong> Rokicki, children<br />
6739 DONALD J. ROUSSEAU, retired since June 1, 1982<br />
Born: 06/01/1919 $6,000.00 to Nancy Swinehart, daughter<br />
Ent. CFD: 10/19/1954<br />
Deceased: 02/13/<strong>2012</strong><br />
6165 CLARENCE R. WILLS, retired since September 4, 1984<br />
Born: 08/31/1921 $6,000.00 to Helena K. Wills, widow<br />
Ent. CFD: 06/16/1952<br />
Deceased: 03/13/<strong>2012</strong><br />
On motion of Martin, second by Ahmad, and by unanimous vote, the foregoing ordinary death<br />
benefits were granted under provisions of the Code in the amounts and under the terms set<br />
forth. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
F. PARTIAL PAYMENTS:<br />
47<strong>18</strong> MARION A. ARNOLD, widow, deceased March 2, <strong>2012</strong>; $64.52 to<br />
Patrick J. Ar<strong>no</strong>ld, son<br />
6827 ANTHONY R. BOIN, retired, deceased March 25, <strong>2012</strong>; $4,900.60 to<br />
Joyce Boin, widow<br />
- 5 -
Page 6 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
PARTIAL PAYMENTS:<br />
5034 RUTH M. BURKE, widow, deceased February 11, <strong>2012</strong>; $512.93 (1/2 each) to<br />
William Burke and Eileen Kronenberger, co-executors<br />
and children<br />
3147 HELEN BUSH, widow, deceased March 6, <strong>2012</strong>; $193.55 to<br />
Kevin Bush, Trustee and son<br />
7415 MARCELLA M. CASEY, widow, deceased February 15, <strong>2012</strong>; $517.24 to<br />
Patrick J. Casey, executor and son<br />
8379 PHILLIP J. CENTA, retired, deceased January 22, <strong>2012</strong>; $3,886.43 to<br />
Kathy Kelter, daughter<br />
7722 HARRY P. FARRELL retired, deceased March 4, <strong>2012</strong>; $386.05 to<br />
Lavon Farrell, widow by Mary Therese Lee, POA<br />
5582 EFFIE M. GALLAGHER, widow, deceased March 8, <strong>2012</strong>; $258.06 to<br />
Thomas P. Gallagher, son<br />
9241 LEO T. GLEASON, retired, deceased February 20, <strong>2012</strong>; $4,370.19 to<br />
Kelly McNamara, daughter<br />
7791 RICHARD HOPKINS, retired, deceased December 26, 2011; $2,648.95 to<br />
James Hopkins, co-executor<br />
10013 RAYMOND A. HOWARD, retired, deceased February 16, <strong>2012</strong>; $2,629.59 to<br />
Margie Elayne Howard, widow<br />
4830 EDNA K. KERKSTRA, widow, deceased March 8, <strong>2012</strong>; $372.29 to<br />
Linda J. Gonderman, daughter<br />
7592 ALICE J. MCGIVNEY, widow, deceased January 24, <strong>2012</strong>; $1,196.68 to<br />
Patrick McGivney, executor and son<br />
6230 THERESA MYSLINSKI, widow, deceased February 6, <strong>2012</strong>; $319.74 (1/2 each) to<br />
Carl Myslinski and Michael Myslinski, co-executor’s and<br />
children<br />
3650 VIRGINIA M. OSTRAND, widow, deceased September 16, 2011; $533.33 to<br />
Gerald M. Ostrand, executor and son<br />
9089 FIORAVANTE E. PANOZZO, retired, deceased March 8, <strong>2012</strong>; $1,357.15 to<br />
Dana Pa<strong>no</strong>zzo, widow<br />
7539 PEARL J. TEFFT, widow, deceased March <strong>18</strong>, <strong>2012</strong>; $580.65 to<br />
James Tefft, son<br />
6165 CLARENCE R. WILLS, retired, deceased March 13, <strong>2012</strong>; $1,758.49 to<br />
Helena K. Wills, widow<br />
The foregoing pro rata payments on account of the death of annuitants, pensioners and<br />
beneficiaries on motion of Martin, second by Carlson, were granted under the provisions of<br />
the Code in the amounts and under the terms set forth. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
- 6 -
Page 7 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
G. BENEFIT RECALCULATIONS:<br />
i. CHILD SUPPORT:<br />
11123 ROBERT J. PENTEK, Duty Disability since February 12, 1997. Amended Notice to<br />
Withhold Income for Child Support 07 D 221 entered March 12, <strong>2012</strong> reduces monthly<br />
withholding for child support to $1,115.00 to be paid to the State Disbursement Unit on<br />
behalf of mi<strong>no</strong>r children Emmalee and Jack. Order terminates June 30, 2020.<br />
On motion of Martin, second by Stewart, and by unanimous vote, the foregoing Benefit<br />
Recalculation was approved. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
H. PAYMENTS PURSUANT TO COURT ORDER: (NONE)<br />
I. REQUESTS FOR PERMISSION:<br />
i. GUARDIANSHIP:<br />
10092 JAMES M. DOYLE BY BONITA L. DOYLE, wife. Retired since November 4, 2007.<br />
Power of Attorney and Doctor’s letter on file.<br />
4932 ANN FOLEY BY KEITH P. FOLEY, son. Widow’s Annuity since April 3, 1984.<br />
Power of Attorney and Doctor’s letter on file.<br />
3420 MARY HAJEK BY DOLORES P. MOELLER, step-daughter. Widow’s Annuity since<br />
August 31, 1989. Power of Attorney and Doctor’s letter on file.<br />
4864 ALTA C. KING BY MARY E. KING, daughter. Widow’s Annuity since February 23,<br />
2003. Power of Attorney and Doctor’s letter on file.<br />
8589 MARY LONGINO BY DENEILLE MCMAHON, daughter. Widow’s Annuity since<br />
January 6, 2003. Power of Attorney and Doctor’s letter on file.<br />
8674 APOLONIA MACYAUSKI BY MARIE LUGAR, daughter. Widow’s Annuity since<br />
March 22, 2001. Power of Attorney and Doctor’s letter on file.<br />
5838 IRVING J. MATONIK BY EVA K HURT, niece. Retired since August 27, 1983.<br />
Power of Attorney and Doctor’s letter on file.<br />
7452 GEORGE G. MEEK BY FERYLE A. COOPER, friend. Retired since November 14,<br />
1988. Power of Attorney and Doctor’s letter on file.<br />
10033 THOMAS E. MINTLE BY FRANCES MINTLE, wife. Retired since June 24, 1999.<br />
Power of Attorney and Doctor’s letter on file.<br />
3665 NESSIE C. MUELLER BY DIANE B. CACCITOLO, daughter. Widow’s Annuity since<br />
February 14, 1992. Power of Attorney and Doctor’s letter on file.<br />
- 7 -
Page 8 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
REQUESTS FOR PERMISSION:<br />
GUARDIANSHIP:<br />
11363 BRIAN E. MURPHY BY CAROL M. MURPHY, wife. Retired since November 3,<br />
2009. Power of Attorney and Doctor’s letter on file.<br />
4866 NORBERT A. REVELSKI BY FLAVIA A. MURRAY, friend. Retired since August 22,<br />
1982. Power of Attorney and Doctor’s letter on file.<br />
6740 JESSIE A. RZESZUTKO BY NORMAN M. RZESZUTKO, son. Widow’s Annuity since<br />
October 10, 1998. Power of Attorney and Doctor’s letter on file.<br />
8479 MARGARET J. ZACHARSKI BY ELLEN PRUS daughter. Widow’s Annuity since<br />
December 23, 1974. Power of Attorney and Doctor’s letter on file.<br />
3837 WINIFRED A. ZURIS BY RICHARD P. ZURIS, son. Widow’s annuity since October<br />
21, 1984. Power of Attorney and Doctor’s letter on file.<br />
The Secretary presented request for permission to receive, receipt for, endorse and cash<br />
monthly annuity payments on behalf of the foregoing annuitants, as they are <strong>no</strong> longer able to<br />
do so personally. Physician's statements confirming disability, Letters of Guardianship or<br />
Powers of Attorney accompanied the requests. On motion of Martin to grant guardianship,<br />
second by Neely, and by unanimous vote, guardianship and conservatorship proceedings were<br />
waived under provisions of Illi<strong>no</strong>is Compiled Statutes, 40 ILCS 5/6-213. The Secretary was<br />
directed to forward the monthly annuity checks to the guardian-in-fact until further action of<br />
the Board. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
ii. RESIDE OUT OF STATE: (NONE)<br />
J. GIFT FUND: (INFORMATION ONLY)<br />
(See Gift Fund Addendum)<br />
K. REMOVALS: The following changes in the rolls of annuitants and beneficiaries<br />
since the last <strong>regular</strong> <strong>meeting</strong> were directed to be recorded:<br />
Kenneth H. Aniolowski Annuity Died April 04, <strong>2012</strong><br />
Anthony R. Boin Annuity Died March 25, <strong>2012</strong><br />
Charles F. Dougherty Annuity Died March 27, <strong>2012</strong><br />
William E. Dust Annuity Died March <strong>18</strong>, <strong>2012</strong><br />
Donald R. Gemskie Annuity Died April 15, <strong>2012</strong><br />
Raymond M. Herrmann Annuity Died March 10, <strong>2012</strong><br />
Robert A. Rokicki Annuity Died March 16, <strong>2012</strong><br />
Norman W. Schmaltz Annuity Died March 03, <strong>2012</strong><br />
- 8 -
Page 9 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
REMOVALS:<br />
Patricia Falardeau Widow’s Annuity Died April 02, <strong>2012</strong><br />
Effie M. Gallagher Widow’s Annuity Died March 08, <strong>2012</strong><br />
Charlotte C. Lorig Widow’s Annuity Died March <strong>18</strong>, <strong>2012</strong><br />
Evelyn Rasmussen Widow’s Annuity Died March 25, <strong>2012</strong><br />
Rita Sirota Widow’s Annuity Died March 25, <strong>2012</strong><br />
Pearl J. Tefft Widow’s Annuity Died March <strong>18</strong>, <strong>2012</strong><br />
Katherine L. Webster Widow’s Annuity Died April 02, <strong>2012</strong><br />
Mary Lou Zallis Widow’s Annuity Died April 05, <strong>2012</strong><br />
Allen F. Bollin, Jr. Duty Disability Died April 07, <strong>2012</strong><br />
Gregory S. Fox Duty Disability Retired March 02, <strong>2012</strong><br />
Samuel L. Price Duty Disability Retired March 12, <strong>2012</strong><br />
John Henry Kowalczyk Occupational Disease Disability Retired March 02, <strong>2012</strong><br />
Antonio Randolph Child’s Annuity Age <strong>18</strong> on April 20, <strong>2012</strong><br />
On motion of Martin, seconded by Neely, the foregoing removals were accepted. The vote<br />
was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
L. EXPENDITURES:<br />
i. INVOICES PAID - BUDGETED OPERATING EXPENSES REQUIRING<br />
IMMEDIATE PAYMENT: (INFORMATION ONLY)<br />
(See Expenditure Addendum)<br />
ii. INVOICES PRESENTED FOR PAYMENT - BUDGETED OPERATING<br />
EXPENSES:<br />
(To include Burke, Burns & Pinelli, Ltd, March, <strong>2012</strong> bill in the<br />
amount of $15,414.25)<br />
(See Expenditure Addendum)<br />
On motion of Martin, seconded by Carlson, to pay the foregoing invoices presented for<br />
payment of budgeted operating expenses. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
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Page 10 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
EXPENDITURES:<br />
iii. SECRETARY’S STATEMENT OF MONTHLY OPERATING EXPENSES:<br />
The following monthly expenditures for the next succeeding month for which invoices have<br />
<strong>no</strong>t been received as of this date and the exact amounts <strong>no</strong>t yet determined, are due and<br />
payable prior to the next month’s Board <strong>meeting</strong> and will be paid upon receipt of the<br />
respective invoices:<br />
Rent<br />
Electric<br />
Telephone<br />
Postage for Benefit Checks<br />
Petty Cash - $700<br />
Brinks<br />
On motion of Martin, seconded by Stewart, to pay the bills. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
iv. REQUEST FOR EXPENDITURES: (NONE)<br />
v. REQUEST FOR TRUSTEE TRAVEL:<br />
Request for approval for Trustee attendance at the Illi<strong>no</strong>is Professional Firefighters<br />
Association <strong>2012</strong> Spring Pension Seminar to be held Friday, April 27, <strong>2012</strong> in Addison,<br />
Illi<strong>no</strong>is.<br />
On motion of Martin, seconded by Carlson to approve the foregoing request for trustee travel.<br />
The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
vi. PHONE POLL:<br />
On motion of Martin, second by Fabrizio to authorize Gabriel Roeder Smith to review the<br />
Fund’s actuarial reports and provide a response to the City of Chicago Budget/Finance<br />
Office’s questions concerning an analysis they are conducting. The cost <strong>no</strong>t to exceed<br />
$500.00. The vote was:<br />
Yeas: Martin, Fabrizio, Carlson, Neely, Mendoza, Shanahan, Stewart, Ahmad<br />
Nays: None<br />
On motion of Martin, seconded by Neely to spread the foregoing phone poll upon the record.<br />
The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
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Page 11 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
M. EXECUTIVE DIRECTOR’S REPORT:<br />
i. MONTHLY REPORT:<br />
The Board requested that a sub-committee be formed to include Fund staff and trustees<br />
Martin, Neely and Ahmad to review lease options.<br />
ii. <strong>2012</strong> EXPENDITURES TO DATE: (INFORMATION ONLY)<br />
On motion of Martin, second by Ahmad to spread the Executive Director’s Report upon the<br />
record. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
3. LEGAL STATUS:<br />
On motion of Carlson, second by Ahmad to spread the Legal Status Report upon the record.<br />
The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
4. COMMITTEE REPORT/S:<br />
A. INVESTMENT COMMITTEE – FABRIZIO/SHANAHAN:<br />
INVESTMENT COMMITTEE MINUTES<br />
April 16, <strong>2012</strong><br />
The Investment Committee of the Firemen’s Annuity and Benefit Fund of Chicago held its<br />
monthly <strong>meeting</strong> on April 16, <strong>2012</strong>. Present at the <strong>meeting</strong> were Investment Chairman Dan<br />
Fabrizio, Investment Co-Chairman Mike Shanahan and Trustees Anthony Martin, Walter<br />
Carlson and Charles Stewart. Also present were Assistant to the City Clerk Patrick O’Malley,<br />
Assistant Treasurer Tim Hicks, Investment Consultant Matt Shirilla, Fund Attorney Mary Pat<br />
Burns and Fund staff Mike Moran, Ken Kaczmarz and Jaclyn McAllister.<br />
Northern Trust Performance Flash at March 31, <strong>2012</strong><br />
The Committee examined the monthly performance report as of March 31, <strong>2012</strong>. The Fund<br />
rose 1.5 % in March while the S&P 500 returned 3.3%. The Fund has gained 10.9% during<br />
<strong>2012</strong> while the S&P 500 is up 12.6%. Total Fund performance for the five year time period<br />
continued to exceed all equity benchmarks.<br />
Strong relative performance for the trailing one year was <strong>no</strong>ted of managers Delaware,<br />
Chicago Equity, Adams Street and Pomona.<br />
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Page 12 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
COMMITTEE REPORT/S:<br />
INVESTMENT COMMITTEE:<br />
Statement of Asset Allocation at April 12, <strong>2012</strong><br />
The Committee reviewed the Statement of Fund Asset Allocation. The Fund is currently<br />
valued at $953 million. The Fund continues to be overweight in its domestic equity allocation.<br />
The Committee was informed that overweight portfolio positions will be used to fund<br />
upcoming portfolio rebalancing, pay benefit and expense payments and maintain the Fund’s<br />
liquidity capabilities.<br />
Mention was made of the Fund’s 22% commitment to MFDBE managers, 30% exposure to all<br />
emerging managers and <strong>18</strong>% allocation to Illi<strong>no</strong>is based investment managers.<br />
Statement of Cash Needs<br />
The Committee considered its cash requirements for April 30, <strong>2012</strong> and its stated objective to<br />
maintain a one month liquidity balance in reserve.<br />
Given the receipt of property tax payments, <strong>no</strong> drawdown will be necessary in April.<br />
Target Brokers Report<br />
The Target Brokerage report was reviewed by the Committee. For the first quarter of <strong>2012</strong>,<br />
Fund investment managers paid $63 thousand (31.3%) in commissions to seventeen MFDBE<br />
broker-dealers. Through February <strong>2012</strong>, 21.2% of all fixed income transactions were placed<br />
with two targeted brokers.<br />
Capital Calls<br />
The Committee was informed that approximately $9 thousand of net capital calls were paid<br />
since the March Committee <strong>meeting</strong>.<br />
Roadmap <strong>2012</strong><br />
The Committee was provided with a status update of Roadmap <strong>2012</strong>. A motion was made by<br />
Trustee Martin, seconded by Trustee Stewart, for the Fund’s investment consultant and staff<br />
to draft requests for proposal (RFPs) for the Committee’s review at the May <strong>meeting</strong>, for an<br />
enhanced cash/short-term bond mandate, a foreign currency mandate and a large cap growth<br />
mandate. The vote was:<br />
Yeas: Martin, Carlson, Stewart, Fabrizio, Shanahan<br />
Nays: None<br />
Watch List Criteria<br />
The Committee was provided with the Fund’s current watch list criteria language from the<br />
Fund’s Statement of Investment Policy. Committee members were asked to submit any<br />
suggested revisions at the May Committee <strong>meeting</strong>.<br />
Investment Adviser Analysis<br />
A motion by was made by Trustee Martin, seconded by Trustee Carlson to go into Executive<br />
Session. The vote was:<br />
Yeas: Martin, Carlson, Stewart, Fabrizio, Shanahan<br />
Nays: None<br />
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Page 13 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
COMMITTEE REPORT/S:<br />
INVESTMENT COMMITTEE:<br />
Upon exiting Executive session, a motion was made by Trustee Martin, seconded by Trustee<br />
Shanahan to adopt asset reallocation Scenario 1. The vote was:<br />
Ayes: Martin, Carlson, Fabrizio, Shanahan<br />
Nays: Stewart<br />
Investment Adviser Presentations<br />
Mr. Kenneth Johnson and Ms. Kathleen Gaffney of Loomis Sayles provided a brief<br />
presentation outlining their organization’s capabilities in the international and emerging market<br />
fixed income areas. Discussion regarding changes to the Fund’s investment guidelines to<br />
permit greater international investment flexibility followed.<br />
Messrs. Joseph Carieri and Donald Plotsky of Western Asset provided a brief presentation<br />
outlining their organization’s capabilities in the international and emerging market fixed income<br />
areas. Discussion regarding changes to the Fund’s investment guidelines to permit greater<br />
international investment flexibility followed.<br />
Investment consultant Callan and Fund staff were instructed to prepare draft guidelines to<br />
permit Loomis Sayles and Western Asset greater latitude in investing in international and<br />
emerging market fixed income securities for the Committee to review at its May <strong>meeting</strong>.<br />
Investment Adviser Updates<br />
The Committee was informed that:<br />
all document review for the Adams Street secondary investment has been<br />
finalized and completed;<br />
the Pomona Capital secondary investment has been scheduled to close in May<br />
or June;<br />
Mesirow Associates reports that final resolution of the unwinding of the Capital<br />
Associates investment appears near;<br />
Institutional Investors has named some of the Fund’s investment managers<br />
as “Managers of the Year, 2011.”<br />
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Page 14 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
COMMITTEE REPORT/S:<br />
INVESTMENT COMMITTEE:<br />
Fund Assets<br />
As of APRIL 12, <strong>2012</strong><br />
Asset Class Dollars Percent<br />
Large Cap Equity $288,663,214 30.2%<br />
Small to Mid Cap Equity $<strong>18</strong>1,784,054 19.0%<br />
Intl & Emerging Equity $204,511,930 21.4%<br />
Core Bonds $50,242,698 5.3%<br />
Core Plus Bonds $64,788,502 6.8%<br />
Opportunistic Bonds $72,092,817 7.6%<br />
Commodities $21,951,081 2.3%<br />
Hedge Funds $0 0.0%<br />
Private Equity $26,628,278 2.9%<br />
Real Estate $27,876,591 3.0%<br />
Cash Equivalents $14,825,044 1.5%<br />
TOTAL FUND $953,364,209 100.0%<br />
There being <strong>no</strong> further business, the Committee adjourned.<br />
[End April 16, <strong>2012</strong> Investment Committee]<br />
On motion of Martin, second by Carlson to accept the Investment Committee’s<br />
recommendations regarding the adoption of Asset Reallocation Scenario 1 and to spread the<br />
report upon the record. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
B. LEGAL COMMITTEE – MARTIN/STEWART:<br />
LEGAL COMMITTEE MINUTES<br />
APRIL 16, <strong>2012</strong><br />
The Legal Committee of the Firemen’s Annuity and Benefit Fund of Chicago held its monthly<br />
<strong>meeting</strong> in the office of the Fund on Monday, April 16, <strong>2012</strong>. Present at the <strong>meeting</strong> were<br />
Chair Anthony Martin, and Trustees Wally Carlson, Dan Fabrizio, Michael Shanahan and<br />
Charles Stewart. Also present were Fund Attorney Mary Pat Burns, Assistant Treasurer Tim<br />
Hicks, Assistant to the City Clerk Patrick O’Malley, and Fund Staff Ken Kaczmarz, Lori Lund,<br />
Tom Kulbida, Michael Moran, Jaclyn McAllister and Matt Clark.<br />
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Page 15 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
COMMITTEE REPORT/S:<br />
LEGAL COMMITTEE:<br />
Fund attorney Mary Pat Burns reviewed the Legal Status Report and advised that there were<br />
<strong>no</strong> updates to report.<br />
The Committee reviewed a proposed policy which would determine how the Fund staff<br />
handles application for Widow’s Annuity benefits when a repayment of spousal contributions<br />
is required pursuant to 6-142 of the Pension Code.<br />
On motion of Carlson, second by Steward to recommend to the full Board the adoption of the<br />
proposed policy as drafted as discussed by the Committee. The vote was:<br />
Yeas: Carlson, Fabrizio, Martin, Shanahan, Steward<br />
Nays: None<br />
A list of the new members recently hired by the City of Chicago pursuant to the Lewis<br />
litigation was distributed for Committee review.<br />
Executive Director Kaczmarz reported that the issues related to Annuitant Healthcare as<br />
discussed by the Board at their March 21, <strong>2012</strong> <strong>meeting</strong> are awaiting the Fund’s Attorneys<br />
response.<br />
The Committee discussed an issue related to the interpretation of the City’s “end of<br />
employment date” and how it relates to the calculation of benefits and determination of<br />
beginning date for benefit purposes. It was recommended that Fund staff and attorneys<br />
continue to review this issues and report to the full Board at the April <strong>18</strong>, <strong>2012</strong> <strong>meeting</strong>.<br />
There being <strong>no</strong> further business to discuss the <strong>meeting</strong> was adjourned.<br />
[End April 16, <strong>2012</strong> Legal Committee]<br />
On motion of Martin, second by Stewart to accept the Legal Committee report and appoint<br />
Burke, Burns and Pinelli to represent the Fund in the Cecich matter. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
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Page 16 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
COMMITTEE REPORT/S:<br />
C. LEGISLATIVE COMMITTEE – CARLSON/FABRIZIO:<br />
LEGISLATIVE COMMITTEE MINUTES<br />
APRIL 16, <strong>2012</strong><br />
The Legislative Committee of the Firemen’s Annuity and Benefit Fund of Chicago held its<br />
monthly <strong>meeting</strong> in the office of the Fund on Monday, April 16, <strong>2012</strong>. Present at the <strong>meeting</strong><br />
were Co-Chairs Walter Carlson and Dan Fabrizio and Trustees; Anthony Martin, Michael<br />
Shanahan and Charles Stewart. Also present were Fund Attorney Mary Pat Burns, Assistant<br />
Treasurer Tim Hicks, Assistant to the City Clerk Patrick O’Malley, and Fund Staff Ken<br />
Kaczmarz, Lori Lund, Tom Kulbida, Michael Moran, Jaclyn McAllister and Matt Clark.<br />
Fund Legislative Liaison, John McCabe was present and provided a report on the following.<br />
Water Rec Bill 4513 which includes a graduated increase to Employee contributions up to 9%<br />
and an increase to the Property Tax multiplier from 2.19 to 4.0. AN Arc funding calculation is<br />
also included but the funding corresponding to the ARC calculation is capped at the amount<br />
provided by the 4.0 multiplier . Of <strong>no</strong>te in this bill that there was <strong>no</strong>t even a mi<strong>no</strong>r benefit<br />
increase to go along with the increase in contribution. Senate amendments are expected.<br />
Changes to the Water Reclamation District pension were <strong>no</strong>t included in last year’s HB 512<br />
House Joint Rule 49 is being sponsored by Speaker Madigan to require a 3/5 majority to<br />
increase pension benefits<br />
Mr. Madigan has also been appointed to the House Personnel and Pension Committee.<br />
The Gover<strong>no</strong>r’s Pension Advisory Commission report is due tomorrow April 16, <strong>2012</strong>.<br />
Mr. R. McCabe would keep the Board advised of any developments concerning pension<br />
legislation affecting the Fund and any other systems.<br />
There being <strong>no</strong> further business to discuss the <strong>meeting</strong> was adjourned.<br />
[End April 16, <strong>2012</strong> Legislative Committee]<br />
On motion of Martin, second by Neely to accept the Legislative Committee report. The vote<br />
was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
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Page 17 Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
5. BOARD PHYSICIAN REVIEWS OF DISABILITY RECIPIENTS:<br />
(See Re-Examination Addendum)<br />
On motion of Martin, second by Ahmad to accept the Board Physician’s recommendations for<br />
reexamination scheduling. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
6. HEARINGS:<br />
A. OCCUPATIONAL DISEASE DISABILITY APPLICATIONS: (NONE)<br />
B. DUTY DISABILITY APPLICATIONS:<br />
The Secretary presented the application for duty disability benefits made to and sworn by:<br />
11383 THOMAS R. POWER, Lieutenant, Engine 95<br />
Born: 04/26/1959<br />
Ent. CFD: 02/<strong>18</strong>/1980<br />
Witnesses: FE Kevin M. Newell, Engine 95<br />
FF Patrick Ahern, Truck 26<br />
FF John M. Rizzi, Engine 95<br />
The application was witnessed in the office of the Fund, and is accompanied by staff<br />
accountant's letter as to amounts and all necessary records. Applicant had been examined in<br />
the office of the Fund by the Board's physician. After reviewing the relevant records, a<br />
hearing having been held and after due deliberation, on motion of Martin, seconded by<br />
Stewart to grant duty disability benefits.<br />
By roll call vote, duty disability benefits were granted, pursuant to Illi<strong>no</strong>is Compiled Statutes,<br />
40 ILCS 5/640 ILCS 5/6-151 and the express findings of the Board, in the amount of<br />
$6,637.37 a month beginning March 29, <strong>2012</strong>, the day of removal from the Fire Department<br />
payroll and <strong>no</strong> longer receiving salary. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
Not Present: Fabrizio, Mendoza<br />
On motion of Martin, second by Neely to schedule a reexamination of Mr. Power’s disability<br />
status consistent with the Board’s policy. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
Not Present: Fabrizio, Mendoza<br />
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Page <strong>18</strong> Firemen's Annuity & Benefit Fund of Chicago, April <strong>18</strong>, <strong>2012</strong><br />
Regular Meeting No. <strong>976</strong> Minutes<br />
HEARINGS:<br />
DUTY DISABILITY APPLICATIONS:<br />
15304 DAVID J. WELSH, Firefighter Paramedic (Per Arbitrators Award), Engine 127<br />
Born: 08/26/1967 $5,872.37 a month beginning March 23, <strong>2012</strong><br />
Ent. CFD: 04/16/1997<br />
Witnesses: Lt. Daniel Nash, Engine 127<br />
FF James E. Washington, Engine 15<br />
Nancy A. Bonko, Retired<br />
No testimony was heard in the foregoing matter.<br />
On motion of Martin, second by Neely to go into executive session as allowed under 5 ILCS<br />
120/2 (c) 11. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
Out of executive session, the following motion was heard.<br />
On motion of Martin, second by Neely to defer the foregoing matter on the recommendation<br />
of the Fund’s attorney for additional information to be included in the record. The vote was:<br />
Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart<br />
Nays: None<br />
There being <strong>no</strong> further business to discuss, the <strong>meeting</strong> was adjourned.<br />
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