Police Pension Minutes
North Aurora Police Pension
Board of Trustees
Regular Board Meeting
Minutes of the meeting – October 20, 2015
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, Steve VanLoan and Mary Licar. Greg Manko was absent. MB Financial representatives, Terese Krafcheck. Also present were Board Attorney Charles Atwell, Bill Hannah from the Village of North Aurora, Ed MacMillan and Anise Hesson.
Audience Comments
None
Approval of Minutes
A motion was made to approve the minutes of the Regular Board Meeting dated July 21, 2015 by Brad; motion seconded by Steve. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes; VanLoan – yes. Motion passes.
Presentation and Acceptance of Treasurer’s Report
Ed MacMillan presented the Treasurer’s Report. Profit and Loss detail covers activity from July 22, 2015 through October 20, 2015. As of September 30, 2015, Net Income is at $559854.34. A motion was made to approve the Treasurer’s Report by Brad; seconded by Steve. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes; VanLoan – yes. Motion passes.
Presentation and Acceptance of Investment Report
Terese Krafcheck presented the Performance Report as of September 30, 2015. The ending market value of the portfolio was $13,500,713, a slight decrease last quarter. Goal is based on 50% equity securities and 50% fixed income securities; the portfolio is very close to target. All investments are preforming ahead of the benchmark.
Motion was made to accept the Investment Report by Steve; seconded by Brad. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes; VanLoan – yes. Motion passes.
New Business
1. Approval of Retirement Pension Calculations for Randy Voss – Randy Voss is retiring as of October 31, 2015 after 29 years and 10 months of service. The effective date of benfit is October 13, 2015. The initial annual pension benefit is calculated as $57,439.72 = 72.50% of $79,227.20 (annual salary). The prorated benefit for the period of October 13, 2015 to October 31, 2015 is calculation as $2,933.75 = 19 prorated days times $4,786.64 (monthly benefit) divided by 31 days in the month. These calculations were done by using the Illinois Department of Insurance benefit calculator. (See attached for details)
A motion was made by Brad to approve the retirement pension calculations pursuant to the attached schedules for Randy Voss, seconded by Steve. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes; VanLoan – yes. Motion passes.
2. Discussion and Approval of 6/1/15 Police Pension Actuarial Valuation, Disclosures and Recommended Tax Levy – Bill Hannah presented the Actuarial Valuation Report for the Year Beginning June 1, 2015 and Ending May 31, 2016 to the Pension Board. There was a change with respect to Actuarial Assumptions from the prior year to reflect revised expectations with respect to future interest rates, salary increases, mortality rates, disability rates, turnover rates and retirement rates. The Village’s Tax Levy requirement has increased from $596,578 last year to $799,095 this year. The increase is due to the increase in salaries, the investment return was less than assumed and the changes to the assumptions. The Percent Funded has decreased from 65.5% last year to 61.3% this year – also due to the changes in assumptions.
A motion was made to accept the Police Pension Actuarial Valuation and recommend tax levy in the amount of $800,000 for the 2015 tax levy by Brad, seconded by Steve. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes; VanLoan– yes. Motion passes.
3. Approval of Meeting Dates for 2016 – the board has set the following meeting dates for 2016:
a. January 19, 2016
b. April 19, 2016
c. July 19, 2016
d. October 18, 2016
All meetings will be held at the North Aurora Police Department community room at 5pm.
A motion was made to approve the above meeting dates by Brad, seconded by Mary. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes; VanLoan – yes. Motion passes.
Audience Comments
None
The board’s next meeting will be Tuesday, January 19, 2016 at 5pm.
A motion was made to adjorn the meeting by Brad; seconded by Mary. A roll call vote was taken: Stecklein – yes; Brown – yes; Licar – yes; VanLoan – yes. Motion passes.
Meeting adjourned.
Robyn Stecklien – President
Brad Brown – Secretary
