Police Pension Board

DEKALB POLICE PENSION FUND Board of Trustees AGENDA October 19, 2018 10:00AM DeKalb Police Conference Room 700 W. Lincoln Hwy, DeKalb, IL 60115 1. Call to Order. CLOSED SESSIONS MUST BE TAPED! Post agenda 48 hours prior! 2. Roll Call. 3. Approval of Minutes of July 27, 2018. 4. Public Comment. 5. Treasurer’s Report. 6. Old business. 7. Bills for Payment. a) Consulting fee Wall and Associates 10/2/18 $10,403.92 for 3rd quarter 2018. b) Lauterbach and Amen #29731 7/30/18 $700 for year-end work papers; #29923 8/20/18 $790 for July, 2018; #29565 7/23/18 $1,040 for 2017 affidavits of continued eligibility (all under 30274 8/30/18); #30459 9/20/18 $790 for August, 2018. c) IPPFA 2019 annual dues 9/5/18 $795. d) City of DeKalb FY17 Audit 7/30/18 $4,590.00 (30271 8/7/18). e) IPPFA annual dues $795 f) IPPFA Conference October, 2018 and 2019 reservations: Mott expenses $471.19; Kayes expenses $416.30; Boldt expenses $195.31. 8. Applications for Membership a) Phillip Nicholson September 4, 2018. 9. Requests for Benefits a) Sergeant Tom Petit DOR: 1/1/19. 10. New Business a) Approval of 2017 Municipal Compliance Report. b) Kayes and Mott attend IPPFA Conference in Wisconsin October 2-4. c) Mario Nonnenmann pending purchase of two years military service for $42,003.17.  d) Discontinue Lauterbach and Amen program of Affidavits of Continuing Eligibility in favor of Beneficiary Death Auditing Service. Adjournment. Next meeting January 18, 2019. 2019 meeting dates: January 18, April 19, July 26 (note this is 4th Friday of the month), and October 18.  MINUTES CITY OF DEKALB DeKalb Police Pension Fund July 27th, 2018 @ 10:00 am The DeKalb Police Pension Fund held a meeting on July 27th, 2018 10:00 am at the DeKalb Police Department, 700 W. Lincoln Highway, DeKalb, IL President Jim Kayes called the meeting to order at 10:04 am A. ROLL CALL Vice President Paul Mott called the roll and the following members of the DeKalb Police Pension Fund were present: Jim Kayes, Paul Mott, Joyce Stupegia and Joshua Boldt. Not present: Molly Talkington. Also present were: Dave Wall and City of Dekalb Analyst Aaron Stevens. B. APPROVAL OF THE AGENDA – ADDITIONS / DELETIONS • Agenda approved on voice vote by Secretary Mott. 4 ayes. C. PUBLIC PARTICIPATION • None D. APPROVAL OF MINUTES • Minutes from the DeKalb Police Pension Fund Meeting on April 20th, 2018 were approved by voice vote. 4 ayes. (Jim Kayes, Joyce Stupegia, Paul Mott, Joshua Boldt) E. OLD BUSINESS • None F. TREASURE’S REPORT • Dave Wall provided quarterly report on fund performance for the second quarter of 2018 ending on June 30th, 2018. Wall advised that the fund is well within our investment policy and state guidelines. G. NEW BUSINESS  • BILLS FOR PAYMENT o Motion by Paul Mott to pay bills listed on agenda of July 27th, 2018. Second by Joshua Boldt. Roll call vote by Secretary Mott. Yes, votes from Joshua Boldt, Paul Mott, Joyce Stupegia and Jim Kayes. Secretary Mott declared the motion passed. • APPLICATIONS FOR MEMBERSHIP o Application for pension membership of the following: ▪ Tyler Scott, DOH:05-29-18 ▪ Elise Dusek, DOH:05-21-18 ▪ Max Paul, DOH:05-14-18 o Motion to approve by Paul Mott, second by Joshua Boldt. Roll call vote by Secretary Mott. Yes votes from Joshua Boldt, Joyce Stupegia, Paul Mott and Jim Kayes. Secretary Mott declared the motion passed. • Election of Board Officers o Secretary Mott called for the board nominations to the following positions. President-Jim Kayes, Vice President-Joshua Boldt, Secretary-Paul Mott, Assistant Secretary-Molly Talkington, Member-Joyce Stupegia. Nominations approved with voice vote by Secretary Mott. 4 ayes. H. REQUEST FOR BENEFITS o Sergeant Tom Petit, DOR: 01-01-19 o The vote was tabled until the October meeting. I. ADJOURNMENT • Motion by Paul Mott to adjourn. Second by Joshua Boldt. Voice vote on motion. 4 ayes. Secretary Mott declared motion passed and meeting adjourned. __________________________________________ Paul Mott Vice President __________________________________________ Jim Kayes President *******Minutes approved by DeKalb Police Pension Fund on October 19th, 2018.  THE CITY OF DEKALB, ILLINOIS POLICE PENSION FUND PUBLIC ACT 95-0950 MUNICIPAL COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017 September 28, 2018 Members of the Pension Board of Trustees Dekalb Police Pension Fund Dekalb, Illinois Enclosed please find a copy of your Municipal Compliance Report for the Dekalb Police Pension Fund for the fiscal year ended December 31, 2017. We have prepared the report with the most recent information available at our office. Should you have more current information, or notice any inaccuracies, we are prepared to make any necessary revisions and return them to you. The President and Secretary of the Pension Fund are required to sign the report on page 3. If not already included with the enclosed report, please also include a copy of the Pension Fund’s most recent investment policy. The signed Public Act 95-0950 - Municipal Compliance Report must be provided to the Municipality before the tax levy is filed on the last Tuesday in December. We are sending the report via email to promote an environmentally-friendly work atmosphere. If you have any questions regarding this report, please contact your Client Manager or PSA. Respectfully submitted, LAUTERBACH & AMEN, LLP The Pension Board certifies to the City Council of the City of Dekalb, Illinois on the condition of the Pension Fund at the end of its most recently completed fiscal year the following information: 1) The total cash and investments, including accrued interest, of the fund at market value and the total net position of the Pension Fund: Current Preceding Fiscal Year Fiscal Year Total Cash and Investments (including accrued interest) $35,214,836 $29,529,690 Total Net Position $35,206,228 $28,699,935 2) The estimated receipts during the next succeeding fiscal year from deductions from the salaries of police officers and from other sources: Estimated Receipts - Employee Contributions $602,000 Estimated Receipts - All Other Sources Investment Earnings $2,465,000 Municipal Contributions $3,079,438 3) The estimated amount required during the next succeeding fiscal year to (a) pay all pensions and other obligations provided in Article 3 of the Illinois Pension Code, and (b) to meet the annual requirements of the fund as provided in Sections 3-125 and 3-127: (a) Pay all Pensions and Other Obligations $4,094,900 (b) Annual Requirement of the Fund as Determined by: Illinois Department of Insurance $3,197,068 Private Actuary - Foster & Foster Recommended Municipal Contribution $3,079,438  Statutory Municipal Contribution $2,742,390 4) The total net income received from investment of assets along with the assumed investment return and actual investment return received by the fund during its most recently completed fiscal year compared to the total net income, assumed investment return, and actual investment return received during the preceding fiscal year: Current Preceding Fiscal Year Fiscal Year Net Income Received from Investment of Assets $4,291,762 $17,314 7.00% 7.50% 13.26% 0.06% Assumed Investment Return Illinois Department of Insurance 6.50% 6.75% Private Actuary - Foster & Foster Actual Investment Return 5) The total number of active employees who are financially contributing to the fund: Number of Active Members 64 6) The total amount that was disbursed in benefits during the fiscal year, including the number of and total amount disbursed to (i) annuitants in receipt of a regular retirement pension, (ii) recipients being paid a disability pension, and (iii) survivors and children in receipt of benefits: Total Amount  (i) Regular Retirement Pension Number of Disbursed (ii) Disability Pension 42 $2,727,051 (iii) Survivors and Child Benefits 2 $101,488 Totals 8 $240,685 7) The funded ratio of the fund: 52 Current $3,069,224 Preceding Fiscal Year Fiscal Year Illinois Department of Insurance Private Actuary - Foster & 47.12% 48.77% Foster 48.71% 50.00% 8) The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded liability: Unfunded Liability: Illinois Department of Insurance $39,007,335 Private Actuary - Foster & Foster $36,716,091 The accrued liability is the actuarial present value of the portion of the projected benefits that has been accrued as of the valuation date based upon the actuarial valuation method and the actuarial assumptions employed in the valuation. The unfunded accrued liability is the excess of the accrued liability over the actuarial value of assets. 9) The investment policy of the Pension Board under the statutory investment restrictions imposed on the fund. Investment Policy - See Attached. Please see Notes Page attached. CERTIFICATION OF MUNICIPAL POLICE PENSION FUND COMPLIANCE REPORT The Board of Trustees of the Pension Fund, based upon information and belief, and to the best of our knowledge, hereby certify pursuant to §3-143 of the Illinois Pension Code 40 ILCS 5/3-143, that the preceding report is true and accurate. Adopted this ___________ day of __________, 2018 President __________________________________________________ Date ___________________ Secretary __________________________________________________ Date ___________________ INDEX OF ASSUMPTIONS 1) Total Cash and Investments - as Reported at Market Value in the Audited Financial Statements for the Years Ended December 31, 2017 and 2016. Total Net Position - as Reported in the Audited Financial Statements for the Years Ended December 31, 2017 and 2016. 2) Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements for the Year Ended December 31, 2017 plus 4% Increase (Actuarial Salary Increase Assumption) Rounded to the Nearest $100. Estimated Receipts - All Other Sources: Investment Earnings - Cash and Investments as Reported in the Audited Financial Statements for the Year Ended December 31, 2017, times 7% (Actuarial Investment Return Assumption) Rounded to the Nearest $100. Municipal Contributions - Recommended Tax Levy Requirement as Reported by Foster & Foster, Actuarial Valuation for the Year Ended December 31, 2017. 3) (a) Pay all Pensions and Other Obligations - Total Non-Investment Deductions as Reported in the Audited Financial Statements for the Year Ended December 31, 2017, plus a 25% Increase, Rounded to the Nearest $100. (b) Annual Requirement of the Fund as Determined by: Illinois Department of Insurance - Suggested Amount of Tax Levy as Reported in the December 31, 2017 Actuarial Valuation. Private Actuary - Foster & Foster Recommended Amount of Tax Levy as Reported by Foster & Foster in the December 31, 2017 Actuarial Valuation. Statutorily Required Amount of Tax Levy as Reported by Foster & Foster in the December 31, 2017 Actuarial Valuation. INDEX OF ASSUMPTIONS - Continued 4) Net Income Received from Investment of Assets - Investment Income (Loss) net of Investment Expense, as Reported in the Audited Financial Statements for the Years Ended December 31, 2017 and 2016. Assumed Investment Return: Illinois Department of Insurance - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the December 31, 2017 and 2016 Actuarial Valuations. Private Actuary - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the Foster & Foster, December 31, 2017 and 2016 Actuarial Valuations. Actual Investment Return - Net Income Received from Investments as Reported Above as a Percentage of the Average of the Beginning balance of the Cash and Investments and the Ending balance of the Cash and Investments, excluding the fiscal year net investment income, as Reported in the Audited Financial Statements for the Fiscal Years Ended December 31, 2017 and 2016. 5) Number of Active Members - Illinois Department of Insurance Annual Statement for December 31, 2017 - Schedule P. 6) (i) Regular Retirement Pension - Illinois Department of Insurance Annual Statement for December 31, 2017 Schedule P for Number of Participants and Expense page 1 for Total Amount Disbursed. (ii) Disability Pension - Same as above. (iii) Survivors and Child Benefits - Same as above. INDEX OF ASSUMPTIONS - Continued 7) The funded ratio of the fund: Illinois Department of Insurance - Current and Preceding Fiscal Year Actuarial Value of Assets as a percentage of Accrued Liability as Reported in the December 31, 2017 and 2016 Actuarial Valuations. Private Actuary - Current and Preceding Fiscal Year Actuarial Value of Assets as a percentage of Accrued Liability as Reported in the Foster & Foster, December 31, 2017 and 2016 Actuarial Valuations. 8) Unfunded Liability: Illinois Department of Insurance - Deferred Asset (Unfunded Accrued Liability) as Reported in the December 31, 2017 Actuarial Valuation. Private Actuary - Deferred Asset (Unfunded Accrued Liability) as Reported by Foster & Foster in the December 31, 2017 Actuarial Valuation.