minutes regular meeting no. 976 april 18, 2012 - FABF

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MINUTES 

REGULAR MEETING NO. 976 

APRIL 18, 2012 

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April 18, 2012 

Regular Meeting No. 976 

Agenda 

1. Roll Call 

2. Administrative Items 

A. Approval of Minutes Regular Meeting 975 

B. Minimum Formula Annuities 

C. Widow’s and Children’s Annuities 

D. Refunds 

E. Death Benefits 

F. Partial Payments 

G. Benefit Recalculations 

H. Payments Pursuant to Court Order (None) 

I. Requests for Permission 

i. Guardianship 

ii. Reside Out of State (None) 

J. Gift Fund (Information Only) 

K. Removals 

L. Expenditures 

M. Executive Director’s Report 

i. Monthly Report 

ii. 2012 Expenditures to Date (Information Only) 

3. Committees 

A. Investment – Fabrizio/Shanahan 

B. Legal - Martin/Stewart 

C. Legislative – Carlson/Fabrizio 

4. Board Physician Reviews of Disability Recipients 

5. Hearings 

A. Occupational Disease Disability (None) 

B. Duty Disability 

i. Lt Thomas Power, Engine 95 ......................................................................................... 9:00 a.m. 

ii. FF/PM David J. Welsh, Engine 127 .............................................................................. 9:30 a.m.

Page 1 Firemen's Annuity & Benefit Fund of Chicago, April 18, 2012 

Regular Meeting No. 976 Minutes 

1. ROLL CALL: President Michael Shanahan, Vice-President Stephanie Neely, Secretary 

Anthony Martin, Trustees Amer Ahmad, Wally Carlson and Charles Stewart, III. 

TRUSTEES PRESENT LATER: None 

TRUSTEES ABSENT: Trustees Dan Fabrizio and Susana Mendoza 

OTHERS PRESENT: Fund physician, George Motto, M.D.; Fund Attorneys, Mary Patricia 

Burns and Vincent Pinelli; Deputy Comptroller James Raussen; Assistant Treasurer Tim Hicks, 

Assistant to the City Clerk, Patrick O’Malley, Executive Director Kenneth Kaczmarz, and Fund 

Staff Lori Lund and Kristy Maufas. Chief Investment Officer Michael Moran and Fund Staff 

Jaclyn McAllister, Matthew Clark and Tom Kulbida were present for the Administrative Items. 

2. ADMINISTRATIVE ITEMS: 

A. APPROVAL OF MINUTES OF REGULAR MEETING 975, MARCH 21, 2012: 

On motion of Martin, seconded by Ahmad, the minutes of the regular meeting number 975, 

held on March 21, 2012, were accepted and approved without reading, each member having 

been previously furnished with a copy. The vote was: 

Yeas: Ahmad, Carlson, Martin, Neely, Shanahan, Stewart 

Nays: None 

B. MINIMUM FORMULA ANNUITIES: 

12321 MICHAEL W. CECICH, Paramedic Field Chief 4-5-5 

Born: 01/09/1957 $7,817.13 a month beginning April 11, 2012 

Ent. CFD: 06/23/1978 based on 75% 

Retired: 04/11/2012 $117.26 annuity increment, 1.5%, begins 

February 1, 2017, last one on 

January 1, 2036 

COLLECT $73.46 FOR 2011 ERROR IN DEDUCTIONS 

REFUND $181.59 FOR 2006 ERRORS IN DEDUCTIONS AND $48,548.54 

SPOUSE CONTRIBUTIONS 

12187 THOMAS J. HINCKS, Firefighter, Truck 45 

Born: 10/16/1951 $5,478.34 a month beginning March 6, 2012 


Retired: 03/06/2012 $164.35 annuity increment, 3%, begins 

April 1, 2013 

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MINIMUM FORMULA ANNUITIES: 

10394 ROBERT S. HOFF, Fire Commissioner, Headquarters 




May 1, 2016, last one on 


COLLECT $159.56 FOR 2003 ERRORS IN DEDUCTIONS 

REFUND $23,859.65 FOR 1999-2000 AND 2004-2011 ERRORS IN DEDUCTIONS 

10557 KEVIN J. O’BRIEN, Lieutenant, Engine 49 



Retired: 03/31/2012 $191.37 annuity increment, 3%, begins 

April 1, 2013 

13307 KYUNG PANG, Firefighter, Engine 96 

Born: 11/09/1961 $4,566.35 a month beginning April 10, 2012 



December 1, 2021, last one on 


REFUND $28,681.83 SPOUSE CONTRIBUTIONS 

On motion of Martin, second by Carlson, and by unanimous vote, the foregoing applications 

for minimum formula annuities accompanied by staff accountant's letters as to amounts and 

all necessary records were approved and granted to those applicants under provisions of the 

Code in the amounts and under the terms set forth. The vote was: 


Nays: None 

C. WIDOW’S AND CHILDREN’S ANNUITIES: 

6827 JOYCE M. BOIN, widow of Anthony R. Boin, retired since June 6, 1994 


Ent. CFD: 05/02/1955 

Deceased: 03/25/2012 

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WIDOW’S AND CHILDREN’S ANNUITIES: 

7722 LAVON FARRELL BY MARY THERESE LEE, widow of Harry P. Farrell, retired 

since February 4, 1987 


Ent. CFD: 03/18/1958 


10013 MARGIE ELAYNE HOWARD, widow of Raymond A. Howard, retired since 

February 27, 1999 

Born: 12/15/1938 $2,383.07 a month beginning February 17, 2012 

Ent. CFD: 08/06/1962 


9089 DANA PANOZZO, widow of Fioravante E. Panozzo, retired since January 26, 2002 


Ent. CFD: 08/16/1966 


6165 HELENA K. WILLS, widow of Clarence R. Wills, retired since September 4, 1984 


Ent. CFD: 06/16/1952 


On motion of Martin, second by Stewart, and by unanimous vote, the foregoing applications 

for widows' and childrens' annuities accompanied by staff accountant's letters as to amounts 

and all necessary records were approved and granted to those applicants under provisions of 

the Code in the amounts and under the terms set forth. The vote was: 


Nays: None 

D. REFUND OF CONTRIBUTIONS: 

16236 SHERIDA M. ALLEN, Paramedic, Ambulance 29 

Born: 08/04/1972 $46,520.77 Refund of Contributions 


Resigned: 03/18/2012 

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REFUND OF CONTRIBUTIONS: 

15179 DAVID A. BLANCO, Paramedic In Charge, Ambulance 45 

Born: 09/30/1971 $28,866.18 Refund of Contributions 

Ent. CFD: 11/01/1996 

Discharged: 11/06/2002 

On motion of Martin, second by Neely and by unanimous vote, the foregoing refund of 

contributions were granted under provisions of the Code in the amounts and under the terms 

set forth. The vote was: 


Nays: None 

E. DEATH BENEFITS: 

6827 ANTHONY R. BOIN, retired since June 6, 1994 

Born: 06/06/1931 $6,000.00 to Joyce Boin, widow 

Ent. CFD: 05/02/1955 


8379 PHILLIP J. CENTA, retired since December 31, 2000 

Born: 03/28/1931 $6,000.00 1/3 each to Kathy Kelter, James 

Ent. CFD: 05/16/1962 W. Centa and Tom Centa, children 


7722 HARRY P. FARRELL retired since February 4, 1987 

Born: 04/22/1933 $1,650.00 to the Chicago Firemen’s Association 

Ent. CFD: 03/18/1958 Credit Union 

Deceased: 03/04/2012 $4,350.00 to Lavon Farrell, widow by 

Mary Therese Lee, POA 

9241 LEO T. GLEASON, retired since January 31, 2004 

Born: 01/31/1941 $6,000.00 to Kimberly Lesauskis, daughter 

Ent. CFD: 02/01/1967 


10013 RAYMOND A. HOWARD, retired since February 27, 1999 

Born: 12/15/1938 $6,000.00 to Margie Elayne Howard, widow 

Ent. CFD: 08/06/1962 


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DEATH BENEFITS: 

9815 JERRY D. LEBEAU, retired since April 19, 1995 

Born: 06/28/1933 $6,000.00 to Bruce Lebeau, son 

Ent. CFD: 04/16/1970 

Deceased: 08/14/2011 

6049 ROBERT J. QUAYLE, retired since March 27, 1988 

Born: 03/22/1922 $6,000.00 $1,500.00 to Pamela Quayle Trust 

Ent. CFD: 10/16/1951 (other beneficiaries granted in prior meeting) 

Deceased: 08/13/2011 

9023 ROBERT A. ROKICKI, retired since November 29, 1993 

Born: 11/29/1923 $6,000.00 1/3 each to Robert J. Rokicki 

Ent. CFD: 05/01/1966 Michael H. Rokicki, and David J. 

Deceased: 03/16/2012 Rokicki, children 

6739 DONALD J. ROUSSEAU, retired since June 1, 1982 

Born: 06/01/1919 $6,000.00 to Nancy Swinehart, daughter 

Ent. CFD: 10/19/1954 


6165 CLARENCE R. WILLS, retired since September 4, 1984 

Born: 08/31/1921 $6,000.00 to Helena K. Wills, widow 

Ent. CFD: 06/16/1952 


On motion of Martin, second by Ahmad, and by unanimous vote, the foregoing ordinary death 

benefits were granted under provisions of the Code in the amounts and under the terms set 

forth. The vote was: 


Nays: None 

F. PARTIAL PAYMENTS: 

4718 MARION A. ARNOLD, widow, deceased March 2, 2012; $64.52 to 

Patrick J. Arnold, son 

6827 ANTHONY R. BOIN, retired, deceased March 25, 2012; $4,900.60 to 

Joyce Boin, widow 

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PARTIAL PAYMENTS: 

5034 RUTH M. BURKE, widow, deceased February 11, 2012; $512.93 (1/2 each) to 

William Burke and Eileen Kronenberger, co-executors 

and children 

3147 HELEN BUSH, widow, deceased March 6, 2012; $193.55 to 

Kevin Bush, Trustee and son 

7415 MARCELLA M. CASEY, widow, deceased February 15, 2012; $517.24 to 

Patrick J. Casey, executor and son 

8379 PHILLIP J. CENTA, retired, deceased January 22, 2012; $3,886.43 to 

Kathy Kelter, daughter 

7722 HARRY P. FARRELL retired, deceased March 4, 2012; $386.05 to 

Lavon Farrell, widow by Mary Therese Lee, POA 

5582 EFFIE M. GALLAGHER, widow, deceased March 8, 2012; $258.06 to 

Thomas P. Gallagher, son 

9241 LEO T. GLEASON, retired, deceased February 20, 2012; $4,370.19 to 

Kelly McNamara, daughter 

7791 RICHARD HOPKINS, retired, deceased December 26, 2011; $2,648.95 to 

James Hopkins, co-executor 

10013 RAYMOND A. HOWARD, retired, deceased February 16, 2012; $2,629.59 to 

Margie Elayne Howard, widow 

4830 EDNA K. KERKSTRA, widow, deceased March 8, 2012; $372.29 to 

Linda J. Gonderman, daughter 

7592 ALICE J. MCGIVNEY, widow, deceased January 24, 2012; $1,196.68 to 

Patrick McGivney, executor and son 

6230 THERESA MYSLINSKI, widow, deceased February 6, 2012; $319.74 (1/2 each) to 

Carl Myslinski and Michael Myslinski, co-executor’s and 

children 

3650 VIRGINIA M. OSTRAND, widow, deceased September 16, 2011; $533.33 to 

Gerald M. Ostrand, executor and son 

9089 FIORAVANTE E. PANOZZO, retired, deceased March 8, 2012; $1,357.15 to 

Dana Panozzo, widow 

7539 PEARL J. TEFFT, widow, deceased March 18, 2012; $580.65 to 

James Tefft, son 

6165 CLARENCE R. WILLS, retired, deceased March 13, 2012; $1,758.49 to 

Helena K. Wills, widow 

The foregoing pro rata payments on account of the death of annuitants, pensioners and 

beneficiaries on motion of Martin, second by Carlson, were granted under the provisions of 

the Code in the amounts and under the terms set forth. The vote was: 


Nays: None 

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G. BENEFIT RECALCULATIONS: 

i. CHILD SUPPORT: 

11123 ROBERT J. PENTEK, Duty Disability since February 12, 1997. Amended Notice to 

Withhold Income for Child Support 07 D 221 entered March 12, 2012 reduces monthly 

withholding for child support to $1,115.00 to be paid to the State Disbursement Unit on 

behalf of minor children Emmalee and Jack. Order terminates June 30, 2020. 

On motion of Martin, second by Stewart, and by unanimous vote, the foregoing Benefit 

Recalculation was approved. The vote was: 


Nays: None 

H. PAYMENTS PURSUANT TO COURT ORDER: (NONE) 

I. REQUESTS FOR PERMISSION: 

i. GUARDIANSHIP: 

10092 JAMES M. DOYLE BY BONITA L. DOYLE, wife. Retired since November 4, 2007. 

Power of Attorney and Doctor’s letter on file. 

4932 ANN FOLEY BY KEITH P. FOLEY, son. Widow’s Annuity since April 3, 1984. 


3420 MARY HAJEK BY DOLORES P. MOELLER, step-daughter. Widow’s Annuity since 

August 31, 1989. Power of Attorney and Doctor’s letter on file. 

4864 ALTA C. KING BY MARY E. KING, daughter. Widow’s Annuity since February 23, 

2003. Power of Attorney and Doctor’s letter on file. 

8589 MARY LONGINO BY DENEILLE MCMAHON, daughter. Widow’s Annuity since 

January 6, 2003. Power of Attorney and Doctor’s letter on file. 

8674 APOLONIA MACYAUSKI BY MARIE LUGAR, daughter. Widow’s Annuity since 

March 22, 2001. Power of Attorney and Doctor’s letter on file. 

5838 IRVING J. MATONIK BY EVA K HURT, niece. Retired since August 27, 1983. 


7452 GEORGE G. MEEK BY FERYLE A. COOPER, friend. Retired since November 14, 


10033 THOMAS E. MINTLE BY FRANCES MINTLE, wife. Retired since June 24, 1999. 


3665 NESSIE C. MUELLER BY DIANE B. CACCITOLO, daughter. Widow’s Annuity since 

February 14, 1992. Power of Attorney and Doctor’s letter on file. 

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REQUESTS FOR PERMISSION: 

GUARDIANSHIP: 

11363 BRIAN E. MURPHY BY CAROL M. MURPHY, wife. Retired since November 3, 


4866 NORBERT A. REVELSKI BY FLAVIA A. MURRAY, friend. Retired since August 22, 


6740 JESSIE A. RZESZUTKO BY NORMAN M. RZESZUTKO, son. Widow’s Annuity since 

October 10, 1998. Power of Attorney and Doctor’s letter on file. 

8479 MARGARET J. ZACHARSKI BY ELLEN PRUS daughter. Widow’s Annuity since 

December 23, 1974. Power of Attorney and Doctor’s letter on file. 

3837 WINIFRED A. ZURIS BY RICHARD P. ZURIS, son. Widow’s annuity since October 

21, 1984. Power of Attorney and Doctor’s letter on file. 

The Secretary presented request for permission to receive, receipt for, endorse and cash 

monthly annuity payments on behalf of the foregoing annuitants, as they are no longer able to 

do so personally. Physician's statements confirming disability, Letters of Guardianship or 

Powers of Attorney accompanied the requests. On motion of Martin to grant guardianship, 

second by Neely, and by unanimous vote, guardianship and conservatorship proceedings were 

waived under provisions of Illinois Compiled Statutes, 40 ILCS 5/6-213. The Secretary was 

directed to forward the monthly annuity checks to the guardian-in-fact until further action of 

the Board. The vote was: 


Nays: None 

ii. RESIDE OUT OF STATE: (NONE) 

J. GIFT FUND: (INFORMATION ONLY) 

(See Gift Fund Addendum) 

K. REMOVALS: The following changes in the rolls of annuitants and beneficiaries 

since the last regular meeting were directed to be recorded: 

Kenneth H. Aniolowski Annuity Died April 04, 2012 

Anthony R. Boin Annuity Died March 25, 2012 

Charles F. Dougherty Annuity Died March 27, 2012 

William E. Dust Annuity Died March 18, 2012 

Donald R. Gemskie Annuity Died April 15, 2012 

Raymond M. Herrmann Annuity Died March 10, 2012 

Robert A. Rokicki Annuity Died March 16, 2012 

Norman W. Schmaltz Annuity Died March 03, 2012 

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REMOVALS: 

Patricia Falardeau Widow’s Annuity Died April 02, 2012 

Effie M. Gallagher Widow’s Annuity Died March 08, 2012 

Charlotte C. Lorig Widow’s Annuity Died March 18, 2012 

Evelyn Rasmussen Widow’s Annuity Died March 25, 2012 

Rita Sirota Widow’s Annuity Died March 25, 2012 

Pearl J. Tefft Widow’s Annuity Died March 18, 2012 

Katherine L. Webster Widow’s Annuity Died April 02, 2012 

Mary Lou Zallis Widow’s Annuity Died April 05, 2012 

Allen F. Bollin, Jr. Duty Disability Died April 07, 2012 

Gregory S. Fox Duty Disability Retired March 02, 2012 

Samuel L. Price Duty Disability Retired March 12, 2012 

John Henry Kowalczyk Occupational Disease Disability Retired March 02, 2012 

Antonio Randolph Child’s Annuity Age 18 on April 20, 2012 

On motion of Martin, seconded by Neely, the foregoing removals were accepted. The vote 

was: 


Nays: None 

L. EXPENDITURES: 

i. INVOICES PAID - BUDGETED OPERATING EXPENSES REQUIRING 

IMMEDIATE PAYMENT: (INFORMATION ONLY) 

(See Expenditure Addendum) 

ii. INVOICES PRESENTED FOR PAYMENT - BUDGETED OPERATING 

EXPENSES: 

(To include Burke, Burns & Pinelli, Ltd, March, 2012 bill in the 

amount of $15,414.25) 

(See Expenditure Addendum) 

On motion of Martin, seconded by Carlson, to pay the foregoing invoices presented for 

payment of budgeted operating expenses. The vote was: 


Nays: None 

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EXPENDITURES: 

iii. SECRETARY’S STATEMENT OF MONTHLY OPERATING EXPENSES: 

The following monthly expenditures for the next succeeding month for which invoices have 

not been received as of this date and the exact amounts not yet determined, are due and 

payable prior to the next month’s Board meeting and will be paid upon receipt of the 

respective invoices: 

Rent 

Electric 

Telephone 

Postage for Benefit Checks 

Petty Cash - $700 

Brinks 

On motion of Martin, seconded by Stewart, to pay the bills. The vote was: 


Nays: None 

iv. REQUEST FOR EXPENDITURES: (NONE) 

v. REQUEST FOR TRUSTEE TRAVEL: 

Request for approval for Trustee attendance at the Illinois Professional Firefighters 

Association 2012 Spring Pension Seminar to be held Friday, April 27, 2012 in Addison, 

Illinois. 

On motion of Martin, seconded by Carlson to approve the foregoing request for trustee travel. 

The vote was: 


Nays: None 

vi. PHONE POLL: 

On motion of Martin, second by Fabrizio to authorize Gabriel Roeder Smith to review the 

Fund’s actuarial reports and provide a response to the City of Chicago Budget/Finance 

Office’s questions concerning an analysis they are conducting. The cost not to exceed 

$500.00. The vote was: 

Yeas: Martin, Fabrizio, Carlson, Neely, Mendoza, Shanahan, Stewart, Ahmad 

Nays: None 

On motion of Martin, seconded by Neely to spread the foregoing phone poll upon the record. 

The vote was: 


Nays: None 

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M. EXECUTIVE DIRECTOR’S REPORT: 

i. MONTHLY REPORT: 

The Board requested that a sub-committee be formed to include Fund staff and trustees 

Martin, Neely and Ahmad to review lease options. 

ii. 2012 EXPENDITURES TO DATE: (INFORMATION ONLY) 

On motion of Martin, second by Ahmad to spread the Executive Director’s Report upon the 

record. The vote was: 


Nays: None 

3. LEGAL STATUS: 

On motion of Carlson, second by Ahmad to spread the Legal Status Report upon the record. 

The vote was: 


Nays: None 

4. COMMITTEE REPORT/S: 

A. INVESTMENT COMMITTEE – FABRIZIO/SHANAHAN: 

INVESTMENT COMMITTEE MINUTES 

April 16, 2012 

The Investment Committee of the Firemen’s Annuity and Benefit Fund of Chicago held its 

monthly meeting on April 16, 2012. Present at the meeting were Investment Chairman Dan 

Fabrizio, Investment Co-Chairman Mike Shanahan and Trustees Anthony Martin, Walter 

Carlson and Charles Stewart. Also present were Assistant to the City Clerk Patrick O’Malley, 

Assistant Treasurer Tim Hicks, Investment Consultant Matt Shirilla, Fund Attorney Mary Pat 

Burns and Fund staff Mike Moran, Ken Kaczmarz and Jaclyn McAllister. 

Northern Trust Performance Flash at March 31, 2012 

The Committee examined the monthly performance report as of March 31, 2012. The Fund 

rose 1.5 % in March while the S&P 500 returned 3.3%. The Fund has gained 10.9% during 

2012 while the S&P 500 is up 12.6%. Total Fund performance for the five year time period 

continued to exceed all equity benchmarks. 

Strong relative performance for the trailing one year was noted of managers Delaware, 

Chicago Equity, Adams Street and Pomona. 

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COMMITTEE REPORT/S: 

INVESTMENT COMMITTEE: 

Statement of Asset Allocation at April 12, 2012 

The Committee reviewed the Statement of Fund Asset Allocation. The Fund is currently 

valued at $953 million. The Fund continues to be overweight in its domestic equity allocation. 

The Committee was informed that overweight portfolio positions will be used to fund 

upcoming portfolio rebalancing, pay benefit and expense payments and maintain the Fund’s 

liquidity capabilities. 

Mention was made of the Fund’s 22% commitment to MFDBE managers, 30% exposure to all 

emerging managers and 18% allocation to Illinois based investment managers. 

Statement of Cash Needs 

The Committee considered its cash requirements for April 30, 2012 and its stated objective to 

maintain a one month liquidity balance in reserve. 

Given the receipt of property tax payments, no drawdown will be necessary in April. 

Target Brokers Report 

The Target Brokerage report was reviewed by the Committee. For the first quarter of 2012, 

Fund investment managers paid $63 thousand (31.3%) in commissions to seventeen MFDBE 

broker-dealers. Through February 2012, 21.2% of all fixed income transactions were placed 

with two targeted brokers. 

Capital Calls 

The Committee was informed that approximately $9 thousand of net capital calls were paid 

since the March Committee meeting. 

Roadmap 2012 

The Committee was provided with a status update of Roadmap 2012. A motion was made by 

Trustee Martin, seconded by Trustee Stewart, for the Fund’s investment consultant and staff 

to draft requests for proposal (RFPs) for the Committee’s review at the May meeting, for an 

enhanced cash/short-term bond mandate, a foreign currency mandate and a large cap growth 

mandate. The vote was: 

Yeas: Martin, Carlson, Stewart, Fabrizio, Shanahan 

Nays: None 

Watch List Criteria 

The Committee was provided with the Fund’s current watch list criteria language from the 

Fund’s Statement of Investment Policy. Committee members were asked to submit any 

suggested revisions at the May Committee meeting. 

Investment Adviser Analysis 

A motion by was made by Trustee Martin, seconded by Trustee Carlson to go into Executive 

Session. The vote was: 

Yeas: Martin, Carlson, Stewart, Fabrizio, Shanahan 

Nays: None 

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Upon exiting Executive session, a motion was made by Trustee Martin, seconded by Trustee 

Shanahan to adopt asset reallocation Scenario 1. The vote was: 

Ayes: Martin, Carlson, Fabrizio, Shanahan 

Nays: Stewart 

Investment Adviser Presentations 

Mr. Kenneth Johnson and Ms. Kathleen Gaffney of Loomis Sayles provided a brief 

presentation outlining their organization’s capabilities in the international and emerging market 

fixed income areas. Discussion regarding changes to the Fund’s investment guidelines to 

permit greater international investment flexibility followed. 

Messrs. Joseph Carieri and Donald Plotsky of Western Asset provided a brief presentation 

outlining their organization’s capabilities in the international and emerging market fixed income 

areas. Discussion regarding changes to the Fund’s investment guidelines to permit greater 

international investment flexibility followed. 

Investment consultant Callan and Fund staff were instructed to prepare draft guidelines to 

permit Loomis Sayles and Western Asset greater latitude in investing in international and 

emerging market fixed income securities for the Committee to review at its May meeting. 

Investment Adviser Updates 

The Committee was informed that: 

all document review for the Adams Street secondary investment has been 

finalized and completed; 

the Pomona Capital secondary investment has been scheduled to close in May 

or June; 

Mesirow Associates reports that final resolution of the unwinding of the Capital 

Associates investment appears near; 

Institutional Investors has named some of the Fund’s investment managers 

as “Managers of the Year, 2011.” 

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Fund Assets 

As of APRIL 12, 2012 

Asset Class Dollars Percent 

Large Cap Equity $288,663,214 30.2% 

Small to Mid Cap Equity $181,784,054 19.0% 

Intl & Emerging Equity $204,511,930 21.4% 

Core Bonds $50,242,698 5.3% 

Core Plus Bonds $64,788,502 6.8% 

Opportunistic Bonds $72,092,817 7.6% 

Commodities $21,951,081 2.3% 

Hedge Funds $0 0.0% 

Private Equity $26,628,278 2.9% 

Real Estate $27,876,591 3.0% 

Cash Equivalents $14,825,044 1.5% 

TOTAL FUND $953,364,209 100.0% 

There being no further business, the Committee adjourned. 

[End April 16, 2012 Investment Committee] 

On motion of Martin, second by Carlson to accept the Investment Committee’s 

recommendations regarding the adoption of Asset Reallocation Scenario 1 and to spread the 

report upon the record. The vote was: 


Nays: None 

B. LEGAL COMMITTEE – MARTIN/STEWART: 

LEGAL COMMITTEE MINUTES 

APRIL 16, 2012 

The Legal Committee of the Firemen’s Annuity and Benefit Fund of Chicago held its monthly 

meeting in the office of the Fund on Monday, April 16, 2012. Present at the meeting were 

Chair Anthony Martin, and Trustees Wally Carlson, Dan Fabrizio, Michael Shanahan and 

Charles Stewart. Also present were Fund Attorney Mary Pat Burns, Assistant Treasurer Tim 

Hicks, Assistant to the City Clerk Patrick O’Malley, and Fund Staff Ken Kaczmarz, Lori Lund, 

Tom Kulbida, Michael Moran, Jaclyn McAllister and Matt Clark. 

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LEGAL COMMITTEE: 

Fund attorney Mary Pat Burns reviewed the Legal Status Report and advised that there were 

no updates to report. 

The Committee reviewed a proposed policy which would determine how the Fund staff 

handles application for Widow’s Annuity benefits when a repayment of spousal contributions 

is required pursuant to 6-142 of the Pension Code. 

On motion of Carlson, second by Steward to recommend to the full Board the adoption of the 

proposed policy as drafted as discussed by the Committee. The vote was: 

Yeas: Carlson, Fabrizio, Martin, Shanahan, Steward 

Nays: None 

A list of the new members recently hired by the City of Chicago pursuant to the Lewis 

litigation was distributed for Committee review. 

Executive Director Kaczmarz reported that the issues related to Annuitant Healthcare as 

discussed by the Board at their March 21, 2012 meeting are awaiting the Fund’s Attorneys 

response. 

The Committee discussed an issue related to the interpretation of the City’s “end of 

employment date” and how it relates to the calculation of benefits and determination of 

beginning date for benefit purposes. It was recommended that Fund staff and attorneys 

continue to review this issues and report to the full Board at the April 18, 2012 meeting. 

There being no further business to discuss the meeting was adjourned. 

[End April 16, 2012 Legal Committee] 

On motion of Martin, second by Stewart to accept the Legal Committee report and appoint 

Burke, Burns and Pinelli to represent the Fund in the Cecich matter. The vote was: 


Nays: None 

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C. LEGISLATIVE COMMITTEE – CARLSON/FABRIZIO: 

LEGISLATIVE COMMITTEE MINUTES 

APRIL 16, 2012 

The Legislative Committee of the Firemen’s Annuity and Benefit Fund of Chicago held its 

monthly meeting in the office of the Fund on Monday, April 16, 2012. Present at the meeting 

were Co-Chairs Walter Carlson and Dan Fabrizio and Trustees; Anthony Martin, Michael 

Shanahan and Charles Stewart. Also present were Fund Attorney Mary Pat Burns, Assistant 

Treasurer Tim Hicks, Assistant to the City Clerk Patrick O’Malley, and Fund Staff Ken 

Kaczmarz, Lori Lund, Tom Kulbida, Michael Moran, Jaclyn McAllister and Matt Clark. 

Fund Legislative Liaison, John McCabe was present and provided a report on the following. 

Water Rec Bill 4513 which includes a graduated increase to Employee contributions up to 9% 

and an increase to the Property Tax multiplier from 2.19 to 4.0. AN Arc funding calculation is 

also included but the funding corresponding to the ARC calculation is capped at the amount 

provided by the 4.0 multiplier . Of note in this bill that there was not even a minor benefit 

increase to go along with the increase in contribution. Senate amendments are expected. 

Changes to the Water Reclamation District pension were not included in last year’s HB 512 

House Joint Rule 49 is being sponsored by Speaker Madigan to require a 3/5 majority to 

increase pension benefits 

Mr. Madigan has also been appointed to the House Personnel and Pension Committee. 

The Governor’s Pension Advisory Commission report is due tomorrow April 16, 2012. 

Mr. R. McCabe would keep the Board advised of any developments concerning pension 

legislation affecting the Fund and any other systems. 

There being no further business to discuss the meeting was adjourned. 

[End April 16, 2012 Legislative Committee] 

On motion of Martin, second by Neely to accept the Legislative Committee report. The vote 

was: 


Nays: None 

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5. BOARD PHYSICIAN REVIEWS OF DISABILITY RECIPIENTS: 

(See Re-Examination Addendum) 

On motion of Martin, second by Ahmad to accept the Board Physician’s recommendations for 

reexamination scheduling. The vote was: 


Nays: None 

6. HEARINGS: 

A. OCCUPATIONAL DISEASE DISABILITY APPLICATIONS: (NONE) 

B. DUTY DISABILITY APPLICATIONS: 

The Secretary presented the application for duty disability benefits made to and sworn by: 

11383 THOMAS R. POWER, Lieutenant, Engine 95 

Born: 04/26/1959 


Witnesses: FE Kevin M. Newell, Engine 95 

FF Patrick Ahern, Truck 26 

FF John M. Rizzi, Engine 95 

The application was witnessed in the office of the Fund, and is accompanied by staff 

accountant's letter as to amounts and all necessary records. Applicant had been examined in 

the office of the Fund by the Board's physician. After reviewing the relevant records, a 

hearing having been held and after due deliberation, on motion of Martin, seconded by 

Stewart to grant duty disability benefits. 

By roll call vote, duty disability benefits were granted, pursuant to Illinois Compiled Statutes, 

40 ILCS 5/640 ILCS 5/6-151 and the express findings of the Board, in the amount of 

$6,637.37 a month beginning March 29, 2012, the day of removal from the Fire Department 

payroll and no longer receiving salary. The vote was: 


Nays: None 

Not Present: Fabrizio, Mendoza 

On motion of Martin, second by Neely to schedule a reexamination of Mr. Power’s disability 

status consistent with the Board’s policy. The vote was: 


Nays: None 

Not Present: Fabrizio, Mendoza 

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Page 18 Firemen's Annuity & Benefit Fund of Chicago, April 18, 2012 


HEARINGS: 

DUTY DISABILITY APPLICATIONS: 

15304 DAVID J. WELSH, Firefighter Paramedic (Per Arbitrators Award), Engine 127 


Ent. CFD: 04/16/1997 

Witnesses: Lt. Daniel Nash, Engine 127 

FF James E. Washington, Engine 15 

Nancy A. Bonko, Retired 

No testimony was heard in the foregoing matter. 

On motion of Martin, second by Neely to go into executive session as allowed under 5 ILCS 

120/2 (c) 11. The vote was: 


Nays: None 

Out of executive session, the following motion was heard. 

On motion of Martin, second by Neely to defer the foregoing matter on the recommendation 

of the Fund’s attorney for additional information to be included in the record. The vote was: 


Nays: None 

There being no further business to discuss, the meeting was adjourned. 

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minutes regular meeting no. 976 april 18, 2012 - FABF

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