Loading...
HomeMy WebLinkAbout2007 Retiree Health City of Elgin Retiree Health Insurance Trust Agenda City Hall Conference Room 1, South Wing, Main Floor Regular Meeting 9:00 a.m. December 18, 2007 A. Call to Order B. Roll Call—Introduction of Members C. Approval of Meeting Schedule D. Discussion of GASB 43 and GASB 45 E. Review Actuarial Study F. Review of Board Responsibilities and Trust G. Nomination of Trust Officers 1. President 2. Vice President 3. Secretary 4. Assistant Secretary H. Discussion of Trust Asset Custodian I. Discussion of Asset Manager J. Audit Requirements K. Executive Session L. Adjournment City of Elgin Retiree Health Insurance Trust Fund Board Meeting December 18,2007 The first Trust Fund Board meeting was called to order by Board member James Nowicki at 9:12 a.m. in City Hall conference room one. Present: Board Members Martin Gregory, Dennis Ahrens, Colleen Lavery, James Nowicki and Gail Cohen. Summary of Election Results Board member James Nowicki read the final count of the votes for the two year and four year terms. The results are: 2 Year Term Nominee # of Votes Dennis Ahrens 44 Craig Eadler 1 Robert Christ 1 4 Year Term Nominee # of Votes Robert Christ 21 Martin Gregory 24 Scott Erickson 1 rak Approval of Next Year's Meeting Schedule Board member James Nowicki read a list of suggested dates for the upcoming year's meetings. These dates are: February 11, 2008; May 12, 2008; August 11, 2008;November 10, 2008 and February 9, 2009. All meetings will be held at 9:00 AM in City Hall Conference Room One. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. Discussion of GASB 43 and GASB 45 Board member Colleen Lavery explained the purposes of GASB 43 and GASB 45 to the board and how it affects the Retiree Heath Insurance Trust. • GASB 45 —directs the fund to determine the cost of insurance over a 30 year period and to expense this over 30 years on the City's financial statements. • GASB 43 —Allows the City to put the money into a trust and account for it in separate fund, like a pension fund, to invest the money in an effort to lessen the City's post retirement liabilities on its General Fund. City of Elgin Retiree Heath Insurance Trust Fund Board Meeting December 18, 2007 Page 2 emilk Reviewed Actuarial Study Board members Colleen Lavery and James Nowicki discussed the actuarial study with the board. Subjects that were discussed: implicit versus explicit benefits, unfunded versus funded contributions and assumptions. Actuarial study is required to be done every two (2)years or sooner in the case of a special event, as in an early retirement buyout. Review of Board Responsibilities and Trust Board member James Nowicki reviewed the responsibilities and duties of the Trust Board. This is found in sections 5.1 and 6.1 of the Trust Agreement. An emphasis was made that the Trust Board will only manage the funds. The Trust Board will have no insurance or benefit making duties. Nominations of Trust Officers For Fund President: Colleen Lavery nominated James Nowicki. Gail Cohen 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery, Nowicki, and Cohen. Nays: None. For Fund Vice President: Gail Cohen nominated Colleen Lavery. James Nowicki 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. For Fund Secretary: James Nowicki nominated Gail Cohen. Colleen Lavery 2❑d the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens,Lavery,Nowicki, and Cohen. Nays: None. For Fund Assistant Secretary: Dennis Ahrens nominated Martin Gregory. Colleen Lavery 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens,Lavery,Nowicki, and Cohen. Nays: None. r City of Elgin Retiree Heath Insurance Trust Fund Board Meeting December 18, 2007 Page 3 Discussion of Trust Asset Custodian Fund President James Nowicki discussed the need of a trust custodian. This trust will be set up at a local bank to separate funds from other City business. Will be seeking bids from local banks. Trust Custodian will be chosen at the next Trust Board meeting. Discussion of Asset Manager Fund President James Nowicki discussed future asset manager needs. When the monies in the fund become more substantial the Trust Board may choose to hire an Asset Manager. The Trust Board will need to develop an investment policy and a funding policy at future meetings. Audit Requirements Board President James Nowicki and Vice President Colleen Lavery discussed audit requirements for the Trust Fund. - Executive Session No executive session called Adjournment Board President made a motion, seconded by Fund Secretary Gail Cohen, to adjourn. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery, Nowicki, and Cohen. Nays:None. The meeting adjourned at 10:05 a.m.i P-4, I May 12, 2008 Jam- ' owicki, Tru Fund President Date Approved r C 0 PY ro, City of Elgin Retiree Health Insurance Trust Fund Board Meeting December 18,2007 The first Trust Fund Board meeting was called to order by Board member James Nowicki at 9:12 a.m. in City Hall conference room one. Present: Board Members Martin Gregory, Dennis Ahrens, Colleen Lavery, James Nowicki and Gail Cohen. Summary of Election Results Board member James Nowicki read the final count of the votes for the two year d four year terms. The results are: 6 o,` ` ,' � � C C`IS�� Lk cl 2 Year Term Nominee # of Votes / C�ennis Ahren � 44 Craig Eadler 1 O Robert Christ 1 \ O Dig ) 17/ `j 4 Year Term Nominee # of Votes I Robert � : 21 5 artin Gregory 24 • -ric son 1 1? ,o 11 • Approval of Next Year's Meeting Schedule lD 6 i , 3 ( .7 — 7/1),- 54b Board member James Nowicki read a list of suggested dates for the upcoming year's meetings. These dates are: February 11, 2008; May 12, 2008; August 11, 2008; November 10, 2008 and February 9, 2009. All meetings will be held at 9:00 AM in City Hall Conference Room One. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays:None. Discussion of GASB 43 and GASB 45 Board member Colleen Lavery explained the purposes of GASB 43 and GASB 45 to the board and how it affects the Retiree Heath Insurance Trust. • GASB 45 —directs the fund to determine the cost of insurance over a 30 year period and to expense this over 30 years on the City's financial statements. • GASB 43 —Allows the City to put the money into a trust and account for it in separate fund, like a pension fund, to invest the money in an effort to lessen the City's post retirement liabilities on its General Fund. r City of Elgin Retiree Heath Insurance Trust Fund Board Meeting December 18, 2007 Page 2 Reviewed Actuarial Study Board members Colleen Lavery and James Nowicki discussed the actuarial study with the board. Subjects that were discussed: implicit versus explicit benefits, unfunded versus funded contributions and assumptions. Actuarial study is required to be done every two (2)years or sooner in the case of a special event, as in an early retirement buyout. Review of Board Responsibilities and Trust Board member James Nowicki reviewed the responsibilities and duties of the Trust Board. This is found in sections 5.1 and 6.1 of the Trust Agreement. An emphasis was made that the Trust Board will only manage the funds. The Trust Board will have no insurance or benefit making duties. Nominations of Trust Officers For Fund President: Colleen Lavery nominated James Nowicki. Gail Cohen 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays:None. For Fund Vice President: Gail Cohen nominated Colleen Lavery. James Nowicki 2"d the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. For Fund Secretary: James Nowicki nominated Gail Cohen. Colleen Lavery 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. For Fund Assistant Secretary: Dennis Ahrens nominated Martin Gregory. Colleen Lavery 2"d the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. r • City of Elgin Retiree Heath Insurance Trust Fund Board Meeting December 18, 2007 Page 3 rDiscussion of Trust Asset Custodian Fund President James Nowicki discussed the need of a trust custodian. This trust will be set up at a local bank to separate funds from other City business. Will be seeking bids from local banks. Trust Custodian will be chosen at the next Trust Board meeting. Discussion of Asset Manager Fund President James Nowicki discussed future asset manager needs. When the monies in the fund become more substantial the Trust Board may choose to hire an Asset Manager. The Trust Board will need to develop an investment policy and a funding policy at future meetings. Audit Requirements Board President James Nowicki and Vice President Colleen Lavery discussed audit requirements for the Trust Fund. Executive Session No executive session called Adjournment Board President made a motion, seconded by Fund Secretary Gail Cohen, to adjourn. Upon a roll call vote: Yeas: Board members Gregory,Ahrens, Lavery,Nowicki,and Cohen. Nays:None. The meeting adjourned at 10:05 a.m. ( I May 12, 2008 Jam- owicki, Tru and President Date Approved r City of Elgin Retiree Health Insurance Trust Agenda NOTICE OF CANCELLATION OF MEETING NOTICE IS HEREBY GIVEN that the February 11, 2008, regularly scheduled meeting of the Retiree Health Insurance Trust is cancelled. The next meeting is scheduled for May 12, 2008 at 9:00 A.M. DATED: February 8, 2008 CITY OF ELGIN By James R. Nowicki Retiree Health Insurance Trust President