Police Pension Minutes
North Aurora Police Pension
Board of Trustees
Regular Board Meeting
Minutes of the meeting – October 20, 2020
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, Steve Van Loan and Mark Swoboda. Fifth Third representatives Bob Thompson and Bruce Heiniken as well as Board Attorney Charles Atwell 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 July 21, 2020 by Steve; motion seconded by Mark. A roll call vote was taken: Stecklein – yes; Swoboda – yes; VanLoan – 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, 2020 including expenses paid. Total market value of all investments held at MB Financial and Old Second is $21,589,134.08 (excluding accrued income). Bill povided comparison statements showing quarter to quarter change. The quarter ended September 30, 2020 was a 6.6% increase over the prior quarter amount of $20,248,218.89. Treasurer Hannah also reviewed bills paid during the quarter. A motion was made to approve the Treasurer’s Report by Steve; seconded by Mark. Stecklein – yes; Swoboda – yes; VanLoan – yes. Motion passes 3-0.
Presentation and Acceptance of Investment Report
Representatives from Fifth Third discussed the most recent quarterly report as of September 30, 2020. The report indicated that as of September 30, 2020 the ending market value of the portfolio was $21,391,699.99 excluding accrued income of $73,021. Calendar year-to-date the fund was up 3.4%. The current portfolio was allocated at 48.39% equities, 45.65% fixed income, 2.00% real assets and 3.95% cash and equivalents. During the meeting it was announced that Bob Thompson would be leaving and Bruce Heiniken would be taking over the relationship role.
A motion was made to approve the Investment Report by Mark; seconded by Steve. A roll call vote was taken: Stecklein – yes; Swoboda – yes; VanLoan – yes. Motion passes 3-0
New Business
Approval of Police Pension Application for James McGrath
The application by new officer James McGrath for the pension fund was discussed. A motion was made to approve the application by Steve; motion seconded by Mark. A roll call vote was taken: Stecklein – yes; Swoboda – yes; VanLoan – yes. Motion passes 3-0.
Discussion and Approval of 6/1/2020 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 $1,348,024 to $1,429,357 for the upcoming tax levy year. No new assumption changes were made but changes to Tier 2 benefits as a result of Public Act 101-0610 were incorporated. The funded ratio was 59.4% at the end of the year (59.6% prior to the implementation of Tier 2 assumptions). Salary increases during the year were 4.44% versus the assumption of 4.58%. The annual money-weighted rate of return was 6.24% versus the assumption of 6.5%. There were minimal changes in plan membership during the year as active members stayed at 29, beneficiaries stayed at 13 and inactive members entitled to benefits but not yet receiving them decreased by one to 2. The total actuarial accrued liabilities were $33,414,177 and the actuarial value of assets was $19,860,276 (market value $19,476,564). Hannah also indicated the financial statements of the Police Pension Fund were audited by Lauterbach and Amen. A motion was made by Mark and seconded by Steve to accept the valuation as presented and recommend a tax levy for police pension to the Village Board in the amount of $1,429,357. A roll call vote was taken: Stecklein – yes; Swoboda– yes; VanLoan – yes. Motion passes 3-0.
Discussion and Approval of Meeting Dates
A motion was made by Steve and seconded by Mark for the following 2021 meeting dates:
January 19th at 5:00 pm
April 20th at 5:00 pm
July 20th at 5:00 pm
October 19th at 5:00 pm
A roll call vote was taken: Stecklein – yes; Swoboda – yes; VanLoan – yes. Motion passes 3-0.
Audience Comments
None.
Other
None.
Adjourn
A motion was made to adjourn the meeting at 5:45 by Mark; seconded by Steve. A roll call vote was taken: Stecklein – yes; Swoboda – yes; VanLoan – yes. Motion passes 3-0.
