Police Pension Minutes
North Aurora Police Pension
Board of Trustees
Regular Board Meeting
Minutes of the meeting – January 18, 2022
The meeting was called to order at 5:00pm, by Robyn Stecklein and was held electronically via Zoom. Roll call was conducted and members present were as follows: Robyn Stecklein, Mark Swoboda and Steve Van Loan. Absent were Greg Manko and Mary Licar. Fifth Third Representative Bruce Heniken, Board Attorney Charles Atwell, Village attorney John Kelly, Village Administrator Steve Bosco, Accounting and Finance Mandy Flatt and Finance Director/Treasurer Bill Hannah were also present.
Audience Comments
None
Approval of Minutes
A motion was made to approve the minutes of the Regular Board Meeting dated October 19, 2021. A motion was made by Steve, seconded by Mark. A roll call vote was taken: Stecklein – yes; Swoboda – yes; Van Loan –yes. Motion passed 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 December 31, 2021 including expenses paid. Total market value of all investments held at MB Financial and Old Second is $26,032,118.32 (excluding accrued income). Bill provided comparison statements showing quarter to quarter change. The quarter ended December 31, 2021 was a 3.0% increase over the prior quarter amount of $25,281,436.12. Treasurer Hannah also reviewed bills paid during the quarter. A motion was made to approve the Treasurer’s Report by Mark; seconded by Steve. A roll call vote was taken: Stecklein – yes; Swoboda – yes; Van Loan –yes; Manko -yes. Motion passed 3-0.
Director Hannah told the Board that he had accepted a new position with the City of St. Charles and that his last day with the Village of North Aurora would be Friday, January 21st. Board members and others present thanked Hannah for all of his work with the North Aurora Police Pension Fund over the years, and wished him well in his new role.
Presentation and Acceptance of Investment Report
Representatives from Fifth Third discussed the most recent quarterly report as of December 31, 2021. The report indicated that as of December 31, 2021 the ending market value of the portfolio was $25,939,664 excluding accrued income. Calendar year-to-date the fund was up 9.1%. The current portfolio was allocated at 46.72% equities, 46.61% fixed income, 2.09% real assets and 4.58% cash and equivalents. Issues regarding the impacts on the portfolio related to inflation, the pandemic, potential rate increases at the fed were discussed. A motion was made to approve the Investment Report by Mark; seconded by Steve. A roll call vote was taken: Stecklein – yes; Swoboda – yes; Van Loan – yes. Motion passed 3-0.
Bruce Heniken provided the board with an up on consolidation of funds with the IPOPIF. The IPOPIF sent a letter along with a description of the process indicating that North Aurora’s investments were scheduled to be transferred to the new custody vendor State Street by March 1, 2022. Bruce indicated that State Street will not be accepting cash as part of that process and that many funds are electing to keep a 3 to 6 month reserve of cash in their local pension account, and have Fifth Third invest the rest of the cash prior to the transfer of funds to the IPOPIF. Finance Director Hannah said he can do an analysis of how much additional cash the pension fund will need to have in the local Old Second bank account prior to June 1 when property taxes are received by the Village and the first Village pension contributions are made. Hannah said he could let Fifth Third know tomorrow morning how much of the $1,187,444 of cash on hand at Fifth Third should be transferred, with the rest to be invested in fixed income. A motion was made to authorize Director Hannah to complete the analysis and let Fifth Third know of the amounts by Steve; seconded by Mark. A roll call vote was taken: Stecklein – yes; Swoboda – yes; Van Loan – yes. Motion passed 3-0.
New Business
Approval of Retirement Application for Benefits from Douglas Kitner
Hannah presented the calculations for Officer Kitner, who is 50 years old, has 25 years of service in Tier One, and had a final pensionable salary of $95,306 which includes stipends currently being paid. His prorated monthly pension for January will be $3,202.48 and his monthly pension starting in February will be $4,963.85. His first increase in his monthly pension will be September 1, 2026. A motion was made to approve Officer Kitner’s calculations by Steve, seconded by Mark. A roll call vote was taken: Stecklein – yes; Swoboda – yes; Van Loan – yes. Motion passed 3-0.
Approval of Monthly Retiree and Survivor Pension Payments Effective January 2022
Hannah presented the schedule of pension increases effective January, 2022. It was noted on the schedule that Al Stuber, who passed away in 2021, was still listed on the schedule instead of surviving spouse. Hannah indicated that the correction should have been made, and will update the schedule accordingly. A motion was made to approve the schedule with the noted correction by Mark, seconded by Steve. A roll call vote was taken: Stecklein – yes; Swoboda – yes; Van Loan – yes. Motion passed 3-0.
Update on Pending Application for Disability Pension Benefits of Mark Shillair
Attorney Atwell indicated that the hearing for Officer Shillair is scheduled to take place on January 26, 2022 at 2:00 p.m. in-person at the Village Hall board room. Charlie will send out the agenda and notice of hearing tomorrow.
Update on Pending Application for Disability Pension Benefits of John Kerlin
Attorney Atwell said that additional records are in the process of being collected, and it is possible a hearing date could be scheduled for March, 2022.
Update on Pending Application for Disability Pension Benefits of Travis Foltz and Village’s Motion to Intervene
Attorney Atwell said the Village, consistent with the other cases, has filed a Motion to Intervene in the Foltz case. Attorney Kelly from the Village presented the Motion and summarized the Village’s position. Attorney Atwell said that the applicant’s attorney has no objection to the motion. A motion was made by Steve seconded by Mark to approve the Village’s Motion to Intervene in the matter. A roll call vote was taken: Stecklein – yes; Swoboda – yes; Van Loan – yes. Motion passed 3-0.
IPOPIF Update and Designation of Signers
Director Hannah provided an update on the receipt of materials from the IPOPIF. An update on the status of the related court case was discussed. Based on the status and timing, no action was recommended to be taken by the Board at this time.
Adjourn
A motion was made to adjourn the meeting at 6:48 by Steve; seconded by Mark. A roll call vote was taken: Stecklein – yes; Swoboda – yes; Van Loan Licar – yes. Motion passed 3-0.
