Police Pension Minutes
North Aurora Police Pension
Board of Trustees
Regular Board Meeting
Minutes of the meeting – July 19, 2022
The meeting was called to order at 6:00 pm by Robyn Stecklein. Roll call was conducted and members present were as follows: Robyn Stecklein, Mary Licar, Randall Voss, and Mark Swoboda. Fifth Third Representative Bruce Heniken, Board Attorney Charles Atwell, and Finance Director/Treasurer Jason Paprocki were also present. Board member Ryan Peat arrived at 6:06 pm.
Audience Comments
None
Approval of Minutes
Swoboda made a motion to approve the minutes of the Regular Board Meeting dated April 19, 2022; seconded by Licar. A roll call vote was taken: Swoboda – yes; Voss – yes; Licar – yes; Stecklein – yes. Absent – Peat. Motion passed 4-0.
Licar made a motion to approve the minutes of the board’s disability hearing dated April 20, 2022; seconded by Swoboda. A roll call vote was taken: Swoboda – yes; Voss – yes; Licar – yes; Stecklein – yes. Absent – Peat. Motion passed 4-0.
Swoboda made a motion to approve the minutes of the special board meeting dated May 2, 2022; seconded by Licar. A roll call vote was taken: Swoboda – yes; Voss – yes; Licar – yes; Stecklein – yes. Absent – Peat. Motion passed 4-0.
Presentation and Acceptance of Treasurer’s Report and Approval of Bills Presented and Paid
Jason Paprocki presented summary and detailed financial reports for the Pension Fund with all activity in the accounts through June 30, 2022 including expenses paid. A motion was made to approve the Treasurer’s Report by Swoboda; seconded by Licar. A roll call vote was taken: Swoboda – yes; Voss – yes; Peat – yes; Licar – yes; Stecklein – yes. Motion passed 5-0.
Presentation and Acceptance of Investment Report
Bruce Heniken from Fifth Third presented the most recent quarterly report as of June 30, 2022. The report showed that as of June 30, 2022 the ending market value of the portfolio was $21,893,475.91. Calendar year-to-date the fund is down 13.4%, and it is down 10.7% over the last twelve months. Heniken related that the numbers are down due to an overall economic downturn across all markets. However, when looked at over a longer time span, the fund is doing well at the 3, 5, and 10 year marks due to the strong market conditions that preceded the present downturn. The current portfolio is allocated at 51.6% fixed income, 45.6% equities, 2.0 % real assets, and 0.8% cash and equivalents. Heniken said that there are signs indicating that the economy could officially be in a recession, and that how hard the landing will be is largely dependent on how much the Fed raises interest rates. Also a significant and ongoing factor is the Russian invasion of Ukraine. With so many different variables, Heniken said that it is hard to predict the severity or duration of the economic downturn; however, no significant changes to investment strategy would be made at this time— especially with the impending consolidation of funds. Swoboda made a motion to approve the investment report; seconded by Voss. A roll call vote was taken: Swoboda – yes; Voss – yes; Peat – yes; Licar – yes; Stecklein – yes. Motion passed 5-0.
Heniken said that the North Aurora Police Pension Fund is scheduled to transfer its assets to the IPOPIF on October 3, 2022 and therefore the Fund’s assets will be frozen on September 10, 2022. A discussion was then had regarding how much money should be retained in a cash account to ensure sufficient liquidity for the Fund’s operational expenses. Licar made a motion to retain $400,000.00 in an account for cash management pursuant to consolidation; seconded by Voss. A roll call vote was taken: Swoboda – yes; Voss – yes; Peat – yes; Licar – yes; Stecklein – yes. Motion passed 5-0.
Old Business
IPOPIF Update and Approval of Designation of Signers to IPOPIF
The board was advised that there was no longer litigation that our fund was tied to which would preclude it from the IPOPIF consolidation. In light of this, Swoboda made a motion to remove William Hannah and add Jason Paprocki as an authorized agent / designated signer for the IPOPIF asset transfer process, and to retain Robyn Stecklein in role as well; seconded by Licar. A roll call vote was taken: Swoboda – yes; Voss – yes; Peat – yes; Licar – yes; Stecklein – yes. Motion passed 5-0.
Update on Pending Application for Disability Pension Benefits of Travis Foltz
Attorney Atwell said that there has been no change to the status of this case— records are still being consolidated.
New Business
Appointment of Police Pension Board Officers
The board discussed what roles would be assigned to board members. Stecklein made a motion to appoint individuals to the following roles; seconded by Voss: President – Robyn Stecklein; Vice-President – Mary Licar; Secretary – Mark Swoboda; Assistant Secretary – Ryan Peat. A roll call vote was taken: Swoboda – yes; Voss – yes; Peat – yes; Licar – yes; Stecklein – yes. Motion passed 5-0.
Entry of Board Decision & Order in matter of Mark Shillair Disability
Swoboda made a motion to enter the board’s decision and order in the Mark Shillair disability case and to approve the associated warrant for benefits; seconded by Peat. A roll call vote was taken: Swoboda – yes; Voss – yes; Peat – yes; Licar – yes; Stecklein – yes. Motion passed 5-0.
Future Training Discussion
Stecklein commended new board members Voss and Peat for completing the Certified Trustee training program through the IPPFA. Stecklein reminded other board members that they need to complete required CEUs and she mentioned that the annual IPPFA MidAmerican Pension Conference will be coming up in October. Paprocki added that training is now also available via the IML website.
Adjourn
A motion was made to adjourn the meeting at 6:43 pm by Swoboda; seconded by Licar. A roll call vote was taken: Swoboda – yes; Voss – yes; Peat – yes; Licar – yes; Stecklein – yes. Motion passed 5-0.
