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HomeMy WebLinkAbout2013 Retiree Health Ins. Trust Agendas & Minutes rk City of Elgin Retiree Health Insurance Trust Agenda First Floor Conference Room, South Wing Scheduled Meeting 9:00 a.m. February 4, 2013 A. Call to Order B. Roll Call C. Approval of Minutes D. Reports 1. Investments; December 31, 2012 2. 201 Unaudited Results E. Miscellaneous Items F. Executive Session rG. Adjournment CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND MINUTES FEBRUARY 4, 2013 The City of Elgin Retiree Health Insurance Trust Fund board meeting was called to order at 9:00 a.m. by Colleen Lavery in City Hall Conference Room One. The roll call was answered by Lori Grocke,Colleen Lavery and Dennis Ahrens.Gail Cohen and Martin Gregory were absent. Approval of Minutes Dennis Ahrens made a motion, seconded by Lori Grocke,to approve the minutes of November 5, 2012. The vote was unanimous. Financial Reports Colleen Lavery discussed the unaudited results of the fund for 2012. The yearend appreciation on equities held in the fund was $215,000 and earned dividends and interest income totaled $75,000. Total contributions from the General, Water, Sewer and Golf funds of$1,617,000 covered the cost of insurance premiums paid.The fund realized an increase in net assets of $328,000. The 2013 General fund includes a transfer of$500,000 to the Retiree Health Insurance fund and projects the same contribution for each year in the 2014 -2017 financial plan. The Water, Sewer and Golf funds will continue to fund the actuarially assessed contribution attributable to their employees on an annual basis. Premiums for 2013 are going up 8%which is estimated to be an increase of$325,559. Dennis opened the discussion to the new health care requirements under the Patient Protection and Affordable Care Act. Gail Cohen will be asked to elaborate on the specific changes that effect overall costs at the next meeting. At the direction of the board, an additional $250,000 was moved out of the Harris bank account to PMA to be invested. At December 31, 2012, the fund has four certificates of deposit in increments of$250,000 invested through PMA. Colleen discussed redistributing monies to rebalance the fund. She suggested the fund contact Marquette or PMA to discuss managing the funds in an effort to net larger returns on its fixed income assets. Dennis Ahrens made a motion, seconded by Lori Grocke,to approve Colleen Lavery contacting PMA and Marquette to inquire about fund management. The vote was unanimous. Miscellaneous Items No miscellaneous items were discussed. r ., d. r There being no further business, a motion was made by Colleen Lavery, seconded by Lori Grocke,to adjourn the meeting. The vote was unanimous. The meeting was adjourned at 9:25 a.m. Respectfully submitted, ' , L its/ /epi -b/3 Colleen Lavery 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 5, 2013, regularly scheduled meeting of the Retiree Health Insurance Trust is cancelled. The next meeting is scheduled for November 4, 2013, at 9:00 A.M. DATED: July 29, 2013 CITY OF ELGIN By Colleen Lavery Retiree Health Insurance Trust President City of Elgin Retiree Health Insurance Trust Agenda First Floor Conference Room, South Wing Scheduled Meeting 9:00 a.m. November 4, 2013 A. Call to Order B. Roll Call C. Approval of Minutes D. Reports 1. Investments: September 30, 2013 2. Health Insurance Premium Increase 3. Proposed Funding for 2014 E. Miscellaneous Items 1. Approval of the 2014 Meeting Schedule 2. 2014 Election F. Executive Session G. Adjournment r a 7 ' CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND MINUTES NOVEMBER 4, 2013 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 Lori Grocke, Colleen Lavery and Dennis Ahrens, Gail Cohen, and Martin Gregory. Approval of Minutes Dennis Ahrens made a motion, seconded by Lori Grocke, to approve the minutes of May 6, 2013. The vote was unanimous. Reports Financial Reports Colleen Lavery discussed the investment reports dated September 30, 2013. The stock market is doing fairly well. This is reflected in the report from BMO Harris. Marquette and Associates is predicting a"correction" in the domestic stock market in the first quarter of 2014. This means the fund's investments could take a hit. Colleen noted that, if needed, the investment policy can be altered to move some of the investments from the domestic to another asset class, like international. Dennis asked about moving a higher percentage of funds into the international equity fund, since it seems to be doing well. Colleen will check with Marquette for their opinion on the subject. Marty asked how long the board has into the first quarter before the funds will need redistribution? Colleen estimates before the February 2014 meeting. Colleen put a question of changing the investment policy or leaving it the same to the Board. Martin Gregory made a motion to leave the investment policy as it currently stands, and wait until next year to review it; seconded by Lori Grocke. The vote was unanimous. Premium Increase Colleen reported that health insurance premiums, citywide, are projected to increase 21-29% in 2014. This increase includes the 3.25% direct rate increase within the Affordable Care Act. Proposed Funding for 2014 The City's 2014 budget will propose increasing funding for the insurance fund from the general fund to $1 million. The other funds will contribute $1.2 million. The monies will be moved to the insurance fund in April or May 2014. r - � h Miscellaneous Items Approval of the 2014 Meeting Schedule The 2014 meeting schedule was proposed as follows: February 3, 2014 May 5, 2014 August 4, 2014 November 3, 2014 A motion was made by Dennis Ahrens, seconded by Colleen Lavery, to approve the 2014 meeting schedule. The vote was unanimous. 2014 Election The board seat currently held by Dennis Ahrens will be up for election in 2014. Mary Maskel- Szymonik, Finance Department Secretary, will be mailing out nomination forms by November 8, 2014. Anyone wishing to run for the seat must have their nomination form in to Colleen Lavery by December 15, 2013. Ballots will then be mailed. All ballots must be to Colleen Lavery by January 15, 2014. The winner will be announced after all votes have been received and tallied. No Executive Session was called. There being no further business, a motion was made by Dennis Ahrens, seconded by Gail Cohen, to adjourn the meeting. The vote was unanimous. The meeting was adjourned at 9:21 a.m. Respectfully submitted, t/ • % / 4 - C/A/ Colleen Lavery Chief Financial Officer Date Approved r