Woodstock Firefighter’s Pension
Board of Trustees
A regular meeting of the Woodstock Firefighter’s Pension Board of Trustees was called to order on Tuesday April 8th,
2014 at 10:01 a.m. at Fire Station #1, 435 E. Judd St, Woodstock, Illinois.
Board members present were President Mike Hill, Secretary Matt Hedges, Treasurer John Kunzie, Trustees Bob
Kristensen, Dick Menzel and Lloyd Shaw, Attorney Tom Zanck. A quorum was present.
Absent: None.
Also present were: Tom Quinn and Kevin Noonan of American Community Wealth Management; James Ritchie of
Lauterbach and Amen.
Public Comment None.
Minutes
The board reviewed the minutes from the regular meeting February 18th, 2014.
Vote Motion # 1: Approve February 18th, 2014 minutes as presented.
AYENAYABSTAIN-
Hill
Kristensen (2)
PASSED
Shaw (1)
Hedges
Menzel
The board tabled approval of the January 14, 2014 minutes.
Vote Motion #2: Table approval of January 14th, 2014 Special Meeting Minutes
AYENAYABSTAIN-
Hill
Hedges
Kristensen (2)
Shaw
PASSED
Menzel (1)
Communication
Secretary Hedges presented correspondence received; The renewal had come in for the Sureity Bond from Frisbie and
Lohmeyer. Secretary Hedges is to confirm that the coverage is adequate and up to date.
Bill Report
Secretary Hedges presented the bill report:
A.
B.
C.
D.
Lauterbach and Amen
Zanck, Coen, Wright & Saladin, P.C.
Frisbie & Lohmeyer Insurance
Total
$425
$212.50
$1,461.00
$2,098.50
Roll Call Vote Motion #3: Accept the bill report and pay the bills.
AYENAYABSTAIN-
Hedges
Kristensen (2)
PASSED
Shaw
Menzel (1)
Roll Call Vote Motion #4: Authorize Secretary Hedges to pay monthly fee to Lauterbach and Amen, LLC automatically
upon receipt, discuss fee with board should it increase above $425/ month.
PASSED
AYENAYABSTAIN-
Hedges
Kristensen
Shaw (1)
Menzel (2)
Investment Advisor’s Report
The floor was turned over to Tom Quinn and Kevin Noonan of American Community Wealth Management (ACWM).
Mr. Quinn gave a summary of all accounts. He noted that the fund is just under $5 Million at which point the Board may
invest in individual securities while remaining under 35% threashold of equities. Mr. Quinn recommended that the board
maintain their position until such time that the equity piece of the fund is around $2 Million.
Mr. Quinn discussed the LAMP fund and noted that the performance report for the first quarter reflected a poor quarter for
the market in general. He recommended that the board stay the course and maintain their position.
Mr. Quinn discussed the investment fees paid by the fund for investment services from ACWM, LAMP and Capstone. He
noted that the fees were inclusive of any investment costs or trade fees and that they also included ACWM’s share of the
fee. The fees presented were as follows: LAMP 1.1%; Capstone 1.2%. He noted that the fund is entitled to a fee
reduction soon as it will be reaching a benchmark, ACWM will follow up once that happens.
President Hill asked if the fee is charged on the balance of the fund at that time. Mr. Quinn explained that the fee is
calculated by taking the average market day balance of the account for the quarter and multiplying it by the fee as a
percentage (1.1 or 1.2%) and dividing it by 4. President Hill followed up asking what was ACWM’s percentage. Mr.
Quinn answered that they receive approximately 70 basis points of the fee collected.
Mr. Noonan presented a chart detailing market performance of fixed income investments over the last 20 years and
offered to discuss it with the board should they have any interest. He said it was merely educational.
Lauterbach and Amen Report
The floor was turned over to Mr. Ritchie of Lauterbach and Amen. Mr. Ritchie gave a summary of the March Financials
and noted that there was still an entry in holding from September in which it appears that one of the employee
contributions had not made it into the pension fund. The board will investigate and work with the District to find out what
happened. Mr. Ritchie also affirmed that L&A is ready for the year end fiscal reporting and took the information for our
auditor.
President Hill confirmed an acceptable format for reporting contributions and transfers.
Open Issues
Review of Investment Advisor Fees, See above” Investment Advisor’s Report”
New Business
President Hill explained to the board that the District had erroneously withheld pension contributions from the annual
vacation pay that was sent to members. Mr. Ritchie confirmed that the vacation pay is not pensionable. The board
discussed how to mitigate the error and agreed to have Secretary Hedges and President Hill create a spreadsheet outlaying
the vacation pay over the last three years for analysis and to provide a recommendation on how to repay the affected
participants. Mr. Ritchie offered for Lauterbach and Amen to do an analysis of payroll and contributions over the life of
the fund to check for accuracy, the board declined the offer.
Roll Call Vote Motion #5: Review payroll regarding unused vacation pay over the last three years.
PASSED
AYENAYABSTAIN-
Kristensen (2)
Hill
Shaw (1)
Menzel
Shaw (1)
Menzel (2)
Hedges
The board voted to table discussion of pension fund services.
Motion #6: Table the discussion on pension fund services.
AYENAYABSTAIN-
Hill
Hedges
Kristensen
PASSED
The board discussed Ms. Serrano-Wurtz’s request for survivor’s benefits. President Hill asked the board to consider the
adoption of hearing rules and forms necessary for processing the request. Board discussed the rules and applications
presented. Attorney Zanck offered that it is common that a hearing officer be appointed by the board to administer the
rules and run the hearing. He suggested that the board consider retaining a separate attorney for that task.
Roll Call Vote Motion #7: Adopt the hearing rules as presented in the memo from Attorney Zanck
AYENAYABSTAIN-
Hedges
Kristensen (2)
Shaw (1)
PASSED
Menzel
Roll Call Vote Motion #8: Adopt the application form as presented for handling pension claims, forms # 14, 16, 23.
PASSED
AYENAYABSTAIN-
Hedges
Kristensen
Shaw (1)
Menzel (2)
The board discussed the date for the hearing and Attorney Zanck offered that the board should wait for a response from
Ms. Serrano-Wurtz with the forms prior to scheduling a hearing. The board accepted the advice, Attorney Zanck will
forward the forms to Mr. Goodloe, Ms. Serrano- Wurtz’s attorney on behalf of the board.
The board held officer elections:
Roll Call Vote Motion #9: Nominate Michael Hill for President
AYENAYABSTAIN-
Hedges
Kristensen (1)
Menzel
Hill
Roll Call Vote Motion #10: Close nominations for President
AYENAYABSTAIN-
Shaw (2)
Hedges
Michael Hill elected President Term expires April 2015
Kristensen (1)
Shaw (2)
Menzel
Shaw
Menzel (1)
Hill
Roll Call Vote Motion #11: Nominate Matthew Hedges for Secretary
AYENAYABSTAIN-
Kristensen (2)
Hedges
Roll Call Vote Motion #12: Close nominations for Secretary
AYENAYABSTAIN-
Matthew Hedges elected Secretary term expires April 2015
Kristensen (2)
Shaw (1)
Menzel
Hedges
Discussion
Secretary Hedges noted that the Lauterbach and Amen engagement letter intiates an actuarial analysis
every year and that the District board is maxed on their tax levy for the pension fund, so it is not beneficial to continue an
annual actuarial. The board agreed and the board decided to suspend the annual actuarial report for this year.
Adjournment There being no further business before the Board, Motion to adjourn by Trustee Kristensen, second by
Trustee Menzel; Meeting adjourned at 12:05 p.m.
Respectfully submitted,
_______________________
Matt Hedges, Secretary
Woodstock Firefighter’s Pension Fund
April 21, 2014