Police Pension Minutes
North Aurora Police Pension
Board of Trustees
Regular Board Meeting
Minutes of the meeting – October 24, 2019
The meeting was called to order at 5:01pm, by Robyn Stecklein. Roll call was conducted and members present were as follows: Robyn Stecklein, Mary Licar, Brad Brown and Mark Swoboda. Steve VanLoan was absent. Fifth Third representatives Robert Thompson and Patrick Swaney were also present along with 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 July 16, 2019 by Mark; motion seconded by Mary. A roll call vote was taken: Stecklein – yes; Swoboda– yes; Licar – yes. Motion passes 3-0.
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 September 30, 2019 including expenses paid. Total market value of all investments held at MB Financial and Old Second is $19,234,387.97. Bill provided comparison statements showing quarter tDiscussion and approval of 6/1/2019 Police Pension Actuarial Valuation and Recommended Tax Levy. quarter; reflecting a 0.8% decrease over the last quarter. Treasurer Hannah also reviewed bills paid during the quarter. A motion was made to approve the Treasurer’s Report by Mark; seconded by Mary. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda– yes; Licar – yes. Motion passes 4-0.
Presentation and Acceptance of Investment Report
Representatives from Fifth Third discussed the most recent quarterly report as of September 30, 2019. The report indicated that as of September 30, 2019 the ending market value of the portfolio was $18,906,413 excluding accrued income of $70,471. Year-to-date the fund is up 11.6%. During the presentation the Board asked questions regarding asset allocations and the drifting of the portfolio positions. The current portfolio was allocated at 49.8% equities, 45.70% fixed income, 1.54% real assets and 2.96% cash and equivalents.
A motion was made to approve the Investment Report Mark; seconded by Brad. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda– yes; Licar – yes. Motion passes 4-0.
New Business
1. Discussion and approval of 6/1/2019 Police Pension Actuarial Valuation and Recommended Tax Levy. Finance Director Hannah presented the actuarial valuation which was done by Foster and Foster. The recommended Village contribution increased from $1,166,171 to $1,348,024 for the upcoming tax levy year. This was partially due to the implementation of new mortality rates to reflect the PubS-2010 tables which increased the accrued liabilities of the valuation. The funded ratio was 59.9% at the end of the year (61.8% prior to the implementation of new assumptions. Salary increases during the year were 4.86% versus the assumption of 4.82%. The annual money-weighted rate of return was 2.99% versus the assumption of 6.5%. There were no changes in plan membership during the year as active members numbered at 29, beneficiaries numbered at 13 and inactive members entitled to benefits but not yet receiving them numbered at 3. The total actuarial accrued liabilities were $31,669,254 and the actuarial value of assets was $18,967,556 (market value $18,349,111). Hannah also indicated the financial statements of the Police Pension Fund were audited by Lauterbach and Amen. A motion was made by Mary and seconded by Mark to accept the valuation as presented and recommend a tax levy for police pension to the Village Board in the amount of $1,348,024. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda– yes; Licar – yes. Motion passes 4-0.
2. Meeting dates for 2020. A recommendation wasmade to only set a meeting date for January 21, 2020 and set the rest of the dates at a future meeting. A motion was made by Mark and seconded by Brad to approve meeting date for January 2020. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda– yes; Licar – yes. Motion passes 4-0.
Audience Comments
None.
Other
None.
Adjourn
A motion was made to adjourn the meeting at 5:45 by Mark; seconded by Brad. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda– yes; Licar – yes. Motion passes 4-0.
