Police Pension Minutes
North Aurora Police Pension
Board of Trustees
Regular Board Meeting
Minutes of the meeting – April 17, 2019
The meeting was called to order at 5:26pm, by Robyn Stecklein. Roll call was conducted and members present were as follows: Robyn Stecklein, Brad Brown and Mark Swoboda. Steve VanLoan and Mary Licar were absent. Fifth Third representatives, Frank Fanelli, Robert Thompson and Spencer Klein were present as well as Board Attorney Charles Atwell and Finance Director/Treasurer Bill Hannah and Anise Hesson.
Audience Comments
None
Approval of Minutes
A motion was made to approve the minutes of the Regular Board Meeting dated January 15, 2019 by Mark; motion seconded by Brad. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda– 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 March 31, 2019 including expenses paid. Total market value of all investments held at MB Financial and Old Second is $18,479,921.07. Bill provided comparison statements showing quarter to quarter; reflecting a 7.5% increase in market value over the last quarter. Treasurer Hannah also reviewed bills paid during the quarter and also informed the Board that the Village recently passed a budget amendment to contribute an extra $120,000 in employer contributions to the Police Pension Fund for the 18-19 fiscal year. A motion was made to approve the Treasurer’s Report by Brad; seconded by Mark. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda – yes. Motion passes.
Presentation and Acceptance of Investment Report
Frank Fanelli presented the Performance Report as of March 31, 2018. The report indicated that as of March 31, 2018 the ending market value of the portfolio with accrued income was $18,461,570. Year-to-date the fund is up 7.58% versus the blended index benchmark of 7.60%. Equities were up 13.19 for the quarter which drove an overall increase 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 49.01% equity, 45.43% fixed income and 5.56% alternative strategies. The total earnings fiscal year to date (calendar year) equaled $1,307,799. During the meeting Robert Thompson indicated that some investment strategy changes may be considered in the future with the conversion to Fifth Third’s team, and that custody would be switching over to Fifth Third’s DTC at the end of May.
A motion was made to accept the Investment Report by Brown; seconded by Swoboda. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda – yes. Motion passes.
New Business
1. Approval of Retirement Pension Application for Randy Johnson – Bill provided a pension application for Randy Johnson effective September 1, 2019 including the pension calculations. Based on his 18 years of creditable service and ending salary of $65,782 his initial annual benefit will be $29,601.9 ($2,466.83 monthly) with his first increase coming on September 1, 2020. A motion was made to approve the pension calculations for Randy Johnson per the calculations provided Board and attached to the minutes of the meeting by Swoboda, seconded by Brad. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda – yes. Motion passes.
Audience Comments
None
Other
Frank Fanelli announced that he would be leaving Fifth Third.
Bill Hannah briefly discussed new legislation providing for a defined contribution plan for certain eligible participants that are hired in the future.
The board’s next meeting will be Tuesday, July 16, 2019 at 5:00 pm at the Village Hall Large Conference Room.
A motion was made to adjourn the meeting by Brown; seconded by Stecklein. A roll call vote was taken: Stecklein – yes; Brown – yes; Swoboda – yes. Motion passes.
Meeting adjourned at 6:28pm.
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Robyn Stecklein – President
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Brad Brown – Secretary
