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Home My WebLink About2012 Retiree Health City of Elgin Retiree Health Insurance Trust Agenda First Floor Conference Room, South Wing Scheduled Meeting 9:00 a.m. February 6, 2012 A. Call to Order B. Roll Call C. Approval of Minutes D. Reports 1. Bank 2. Actuarial Study E. Miscellaneous Items 1. Board Trustee Election F. Executive Session G. Adjournment r CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND MINUTES FEBRUARY 6. 2012 The City of Elgin Retiree Health Insurance Trust Fund board meeting was called to order at 9:04 a.m. by Colleen Lavery in City Hall Conference Room One. The roll call was answered by Gail Cohen. Martin Gregory. Lori Grocke, Dennis Ahrens. and Colleen Lavery. Approval of Minutes Martin Gregory made a motion, seconded by Dennis Ahrens, to approve the minutes of November 7. 2011. The vote was unanimous. Financial Reports Colleen I,avery reviewed the bank statements from I larris Bank for the period of October 1, 2011. through December 31, 2011. The Fund moved $750,000 to PMA for investment. The fund is currently making .2% interest. PMA is looking for opportunities that could make .5% interest. Colleen will email the opportunities to the Board members as they arrive. Colleen noted the statement does not reflect the principal payment made by the City for 2012. The fund had to hook an unrealized loss of$98,000. $135,000 was moved from the General Fund to cover this loss. An additional $100,000 has budgeted for 2012. Lori Grocke made a motion, seconded by Dennis Ahrens, to accept the fourth quarter, 2011. bank statements. The vote was unanimous. Colleen I,avery reviewed the 2011 actuarial report. The assumptions have not changed. though the market is lower than expected. Interest rates are expected to stay the same until at least the year 2014. Miscellaneous Items Colleen Lavery discussed the Board election results. Martin Gregory was elected for another 4- year term to the Board with 81 votes. Results are available for inspections in the Finance Department during regular business hours. Colleen Lavery presented an invoice for$2,802 from Mesirow Financial for the 2012 Trust Fiduciary Liability Policy. Gail Cohen made a motion to pay the invoice, seconded by Lori Grocke. The vote was unanimous. r There being no further business, a motion was made by Colleen Lavery, seconded by Gail Cohen, to adjourn the meeting. The vote was unanimous. The meeting was adjourned at 9:21 a.m. Respectfully submitted, .41Pi C olleen Lavery Chief Financial Officer Date Approved r City of Elgin Retiree Health Insurance Trust Agenda First Floor Conference Room, South Wing Scheduled Meeting 9:00 a.m. May 7, 2012 A. Call to Order B. Roll Call C. Approval of Minutes D. Reports 1. Year End Results 2. Actuarial Study 3. Investment in certificates of deposit E. Miscellaneous Items F. Executive Session r G. Adjournment r CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND MINUTES MAY 7, 2012 The City of Elgin Retiree Health Insurance Trust Fund board meeting was called to order at 9:03 a.m. by Colleen Lavery in City Hall Conference Room One. The roll call was answered by Gail Cohen, Martin Gregory, Lori Grocke, Dennis Ahrens, and Colleen Lavery. Approval of Minutes Dennis Ahrens made a motion, seconded by Gail Cohen, to approve the minutes of February 6, 2012. The vote was unanimous. Financial Reports Colleen Lavery reviewed the year end statements for the year of 2011. A transfer of$135,000 was completed from the general fund to the retiree health insurance fund. The fund is currently funding actual expenses as required before GASB 43. Dennis asked about the city's auditor's reaction to the funding of the retiree health insurance trust. Colleen stated that they do not make judgmental comments about funds. The fund balance is the same as last year and the city will continue to maintain this. Colleen Lavery discussed the actuarial report. The fund is underfunded by less than 53%. Marty Gregory asked if the city was considering putting the retirees on a separate health insurance plan from the employees. Gail Cohen says this has not been discussed. The actuarial report is in draft form and will be available by the next board meeting. If anyone wants to change some of the assumptions in the report, please let Colleen Lavery know. The Retiree Health Insurance Fund moved $750,000 to PMA for longer term investment. The fund is currently making .2% interest. PMA is looking for opportunities that could make .5% interest. Colleen Lavery noted there are no fees involved with this investment. Gail Cohen made a motion, seconded by Lori Grocke, to accept the year end results, draft actuarial study, and PMA investment reports. The vote was unanimous. Miscellaneous Items No miscellaneous items were discussed. There being no further business, a motion was made by Dennis Ahrens, seconded by Marty Gregory, to adjourn the meeting. The vote was unanimous. r` The meeting was adjourned at 9:24 a.m. r Respectfully submitted, de/(r/e t /' 'Colleen Lavery GZC Chief Financial Officer Date Approved r r r City of Elgin Retiree Health Insurance Trust Agenda NOTICE OF CANCELLATION OF MEETING NOTICE IS HEREBY GIVEN that the August 6, 2012, regularly scheduled meeting of the Retiree Health Insurance Trust is cancelled. The next meeting is scheduled for November 5, 2011, at 9:00 A.M. DATED: July 30, 2012 CITY OF ELGIN By Colleen Lavery Retiree Health Insurance Trust President r City of Elgin Retiree Health Insurance Trust Agenda First Floor Conference Room, South Wing Scheduled Meeting 9:00 a.m. November 5, 2012 A. Call to Order B. Roll Call C. Approval of Minutes D. Reports 1. 2012 estimate results 2. 2013 proposed budget 3. General fund contributions E. Miscellaneous Items F. Executive Session G. Adjournment r • CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND MINUTES NOVEMBER 5, 2012 The City of Elgin Retiree Health Insurance Trust Fund board meeting was called to order at 9:10 a.m.by Colleen Lavery in City Hall Conference Room One. The roll call was answered by Gail Cohen, Martin Gregory, Lori Grocke,and Colleen Lavery. Dennis Ahrens was absent. Approval of Minutes Lori Grocke made a motion, seconded by Colleen Lavery, to approve the minutes of May 7, 2012. The vote was unanimous. Financial Reports Colleen Lavery discussed the estimated result of the funds for 2012. The results are similar to the 2011 results. Collections are falling short of premium payments. An additional$150,000 was transferred from the general fund to make up the difference. The 2013 proposed city budget will reflect a need to transfer$500,000 into the fund for the next 5 years to cover the cost of premium payments. The fund is $7 mil underfunded as of 2012. Contributions are not shrinking. In 2011,the investment funds recorded a loss of$90,000 in unrealized market value. As of September,2012, the fund is up$94,000,making back the loss of last year. The fund has $750,000 invested with PMA Financial Network, Inc. in CDs, which are earning very little interest. Colleen put to the board the question of moving money into another fund or hiring an investment manager. Should the board do an R.F.P? She noted the fees could be high due to the small amount of cash the fund has to invest. Lori Grocke suggested seeing if PMA would be willing to handle more funds. The board agreed with the idea. Colleen said she would check with the fund representative at PMA and also talk to Marquette Associates to get a comparison of fees. Marty Gregory made a motion, seconded by Lori Grocke,to approve Colleen Lavery contacting PMA and Marquette to invest more funds. The vote was unanimous. Miscellaneous Items The 2013 board meeting schedule was presented to the Board for approval. Gail Cohen made a motion, seconded by Lori Grocke,to approve the 2013 meeting schedule. The vote was unanimous. r There being no further business,a motion was made by Colleen Lavery;seconded by Marty Gregory,to adjourn the meeting. The vote was unanimous: The meeting was adjourned at 9:20 a.m. Respectfully submitted, eeleitUta/61.(A-rd-- "21 41,2. ) Colleen Lavery Chief Financial Officer Date Approved r r