Police Pension Minutes
North Aurora Police Pension
Board of Trustees
Regular Board Meeting
Minutes of the meeting – January 15, 2019
The meeting was called to order at 5:00pm, by Robyn Stecklein. Roll call was conducted and members present were as follows: Robyn Stecklein, Brad Brown and Mary Licar. Steve VanLoan and Mark Swoboda were absent. MB Financial representatives, Frank Fanelli and Spencer Klein were present as well as Board Attorney Charles Atwell and Finance Director/Treasurer Bill Hannah.
Audience Comments
None
Approval of Minutes
A motion was made to approve the minutes of the Regular Board Meeting dated October 16, 2018 by Mary; motion seconded by Brad. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar– yes. Motion passes.
Presentation and Acceptance of Treasurer’s Report and Approval of Bills Presented and Paid
Bill Hannah presented summary and detailed financial reports for the Pension Fund with all activity in the accounts through December 31, 2019 including expenses paid. Total market value of all investments held at MB Financial and Old Second is $17,193,803.96. Bill provided comparison statements showing quarter to quarter; reflecting a -5.7% decrease in market value. Treasurer Hannah also reviewed bills paid during the quarter. A motion was made to approve the Treasurer’s Report by Brown; seconded by Licar. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes. Motion passes.
Presentation and Acceptance of Investment Report
Frank Fanelli presented the Performance Report as of December 31, 2018. The report indicated that as of December 31, 2018 the ending market value of the portfolio with accrued income was $17,160,221. MB Financial discussed the negative performance during the quarter. Year-to-date the fund is down 3.57% versus the blended index benchmark of -3.62%. Equities were down 13.10 for the quarter which drove the overall decrease in performance for the portfolio during that time. Spencer discussed the activity and transactions made during the quarter with the Board. Goal is based on 50% equity securities, 45% fixed income securities and 5% alternative strategies and the current portfolio at 46.53% equity, 46.58% fixed income and 6.90% alternative strategies. The total earnings fiscal year to date (calendar year) equaled ($617,444)
A motion was made to accept the Investment Report by Brown; seconded by Licar. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes. Motion passes.
New Business
1. Discussion and Approval Pension Payment Increases for 2019. – Bill Hannah presented schedule of new monthly pension payments as of January 2019 for current retirees and beneficiaries. Beginning in January, 2019 the new gross monthly total for pension payments will be $73,249.08. Hannah noted that a deferred pensioner, Randy Johnson, will be eligible in September, 2019 to begin receiving a pension. A motion was made to accept the pension increase report by Brown, seconded by Licar. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes. Motion passes.
2. Approval of Affirmation of Investment Portfolio Targets for the Investment Manager. Given the recent declines in equities during the past quarter the Board decided to table this and move it to old business at the upcoming April 17, 2019 meeting.
Audience Comments
None
Other
Hannah mentioned that he is doing research on the new law allowing new hire police officers that meet certain eligibility requirements to opt into a defined contribution plan in lieu of Article 3 benefits. Hannah also mentioned that the 2018 tax levy was approved by the Village Board and included $1,167,000 for police pension based on the June 1, 2018 actuarial results and valuation from Foster and Foster which recommend a Village contribution of $1,166,171.
The board’s next meeting will be Wednesday, April 17, 2019 at 5:30 pm at the North Aurora Village Hall
A motion was made to adjourn the meeting by Licar; seconded by Brown. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes. Motion passes.
Meeting adjourned at 5:35pm.
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Robyn Stecklein – President
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Brad Brown – Secretary
