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HomeMy WebLinkAbout2014 Retiree Health Ins Trust Agendas & Minutes rik City of Elgin Retiree Health Insurance Trust Agenda First Floor Conference Room, South Wing Scheduled Meeting 9:00 a.m. February 3, 2014 A. Call to Order B. Roll Call C. Approval of Minutes D. Reports 1. Investments: December 31, 2013 2. Health Insurance Premium Increase 3. Proposed Funding for 2014 E. Miscellaneous Items 1. 2014 Election Results Discussion F. Executive Session G. Adjournment r Y CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND MINUTES FEBRUARY 3, 2014 The City of Elgin Retiree Health Insurance Trust Fund board meeting was called to order at 9:05 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 Colleen Lavery made a motion, seconded by Lori Grocke, to approve the minutes of November 4, 2013. The vote was unanimous. Reports Financial Reports Colleen Lavery discussed the passage of the 2014 city budget and the impact on the trust fund. The trust fund will receive an additional $500,000 from the general fund this year. The fund will also receive $500,000 from the insurance fund and $180,000 from the enterprise fund. The money will be moved into appropriate trust fund accounts by Lori. The Board needs to decide how to distribute the funds. Colleen will necessary calculations and email results to the Board for approvals. A motion was made by Martin Gregory, seconded by Dennis Ahrens, to approve Colleen performing calculations and emailing the Board with results. The vote was unanimous. Colleen noted that there will be a correction on the next bank statement with regards to the special assessment 19 funds. They were not noted correctly in the December statement. Colleen will be contacting Marquette Associates to discuss the possibility of hiring an advisor for the Fund. Health Insurance Update Gail reported that insurance premiums for 2014 will be 14.75% higher than 2013. This is lower than the anticipated increase of 21-29% noted in November 2013. Gail also discussed the move to Aetna from Blue Cross/Blue Shield for supplemental insurance plans for retirees as a cost saving strategy for both the City and the retirees. r • , f Miscellaneous Items 2014 Election Dennis Ahrens won the 2014 Fund seat election. The results were as follows: Nominee Votes Dennis Ahrens 61 No Vote Cast 2 Write-in 0 A motion was made by Colleen Lavery, seconded by Lori Grocke, to approve the 2014 Board member election. The vote was unanimous. Executive Session No Executive Session was called. There being no further business, a motion was made by Gail Cohen, seconded by Martin Gregory, to adjourn the meeting. The vote was unanimous. The meeting was adjourned at 9:16 a.m. Respectfully submitted, 621%6614— 01" e.dAht /(1/(?, a.2-0 Colleen 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 12, 2014 (Rescheduled from May 5) A. Call to Order B. Roll Call C. Approval of Minutes D. Reports 1. Investments: March 31, 2014 E. Miscellaneous Items 1. Transfer funds to Wells Fargo 2. Engagement of Maquette as Investment Manager F. Executive Session G. Adjournment r 7 CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND MINUTES MAY 12, 2014 The City of Elgin Retiree Health Insurance Trust Fund board meeting was called to order at 9:07 a.m. by Colleen Lavery in City Hall Conference Room One. The roll call was answered by Lori Grocke, Colleen Lavery, Gail Cohen, and Martin Gregory. Dennis Ahrens was absent. Approval of Minutes Gail Cohen made a motion, seconded by Marty Gregory, to approve the minutes of February 3, 2014. The vote was unanimous. Reports Investment Reports A letter was received from BMO Harris earlier this year stating they are no longer willing to work with the Elgin Retiree Health Insurance Trust Fund. Colleen Lavery, at the Board's direction, solicited organizations to take over the investments for the Trust. Wells Fargo was chosen by the Board to hold the assets for the Trust. Marquette & Associates was chosen by the Board to be the investment advisor. Colleen discussed the transfer process. BMO Harris is requesting a resolution from the Board approving the transfer of assets. The city's legal department reviewed the documents from Marquette and Wells Fargo and made minor suggestions to the contract. Colleen Lavery made a request that she be allowed to sign the contracts once they are in place. A motion was made by Marty, seconded by Lori, in which Colleen be allowed to sign all contracts for the asset transfer. The vote was unanimous. Colleen Lavery introduced guest speaker Mike Piotrowski from Marquette & Associates. Mike noted that Marquette is looking forward to the new partnership and he gave a brief overview of Marquette and Associates' history. He supplied the Board with a bound performance report of its current investment plan. Marquette believes the trust is currently well invested, but will be communicating to the Board ways to increase diversification in the future. Colleen mentioned that the fund might need assistance with fixed income. Mike says Marquette will make suggestions for the fund utilization as necessary. Colleen& Mike discussed Marquette's work with the police and fire pension funds and hopes that the health insurance trust can be funded in a similar way. There were no actions necessary today. r • Colleen made a motion, seconded by Lori, to accept the report by Marquette. The vote was unanimous. Actuarial Update Colleen reported the fund has a new actuary. The former actuary, Sharp, was no able to continue its relationship with the fund. Goldstein& Associates is now the new actuary. According to their calculations, using GASB 45, the City is looking to put more funds into the trust going forward and to reduce the rate of return assumption from 7.5% to 7.0%. A motion was made by Lori, seconded by Marty, to accept the new actuarial report. The vote was unanimous. Miscellaneous Items No miscellaneous items were discussed Executive Session No Executive Session was called. r There being no further business, a motion was made by Colleen, seconded by Gail, to adjourn the meeting. The vote was unanimous. The meeting was adjourned at 9:45 a.m. Respectfully submitted, ail Cohen Board Secretary Date Approved Human Resources Director r CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND SPECIAL MEETING MINUTES MAY 13, 2014 The City of Elgin Retiree Health Insurance Trust Fund special board meeting was called to order at 4:00 p.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 Resolution Colleen Lavery made a motion, seconded by Lori Grocke, to approve the resolution appointing Wells Fargo Bank, N.A. as custodian of the City of Elgin Retiree Health Insurance Trust. The vote was unanimous. There being no further business, a motion was made by Colleen Lavery, seconded by Lori Grocki, to adjourn the meeting. The vote was unanimous. The meeting was adjourned at 4:05 p.m. Respectfully submitted, r ail Cohen ate pproved Board Secretary Human Resources Director r City of Elgin Retiree Health Insurance Trust Agenda First Floor Conference Room, South Wing Scheduled Meeting 9:00 a.m. August 12, 2014 A. Call to Order B. Roll Call C. Approval of Minutes D. Reports 1. Investments Report with Mike Piotrowski E. Miscellaneous Items 1. Departure of Colleen Lavery F. Executive Session G. Adjournment r / • CITY OF ELGIN RETIREE HEALTH INSURANCE TRUST FUND MINUTES AUGUST 12, 2014 The City of Elgin Retiree Health Insurance Trust Fund board meeting was called to order at 9:10 a.m. by Gail Cohen in City Hall Conference Room One. The roll call was answered by Lori Grocke, Gail Cohen, Martin Gregory and Dennis Ahrens. Colleen Lavery is no longer with the City of Elgin. Approval of Minutes Lori Grocke made a motion, seconded by Gail Cohen,to approve the minutes of May 12, 2014. The vote was unanimous. Gail Cohen made a motion, seconded by Marty Gregory, to approve the special meeting minutes of May 13. The vote was unanimous. Reports Investment Reports Mike Piotrowski from Marquette Associates was a guest at the meeting. He discussed the performance of the fund. Mike went over the allocations and reported that the trust is up 3.6% from earlier this year. The fund had a very strong second quarter. The fund is diversified but Mike believes we can diversify it more. Mike recommended option"B" in the handout he brought, of the five options listed. This option recommends reducing small-cap investments which seem to be over-valued and adding more floating bonds (Bank loans, & publicly traded mutual funds). Gail Cohen inquired if this change will change the fees. Mike indicated it would not. Lori Grocke made a motion, seconded by Marty Gregory, to follow the recommendation of Marquette. The vote was unanimous. Lori Grocke discussed the funds currently at Fifth Third Bank. Lori & Mike will monitor the funds to make sure they are staying within guidelines. PMA has one CD that will mature next December. Lori & Mike will discuss that CD when it matures. Miscellaneous Items Colleen Lavery left the City of Elgin in June, 2014. The hiring process had not started at the date of this meeting. The Board will be informed when a new CFO is hired. r Executive Session No Executive Session was called. There being no further business, a motion was made by Lori Grocki, seconded by Dennis Ahrens, to adjourn the meeting. The vote was unanimous. The meeting was adjourned at 9:50 a.m. Respectfully submitted, ee.7(Ric and Kozal Acting CFO/Director Date Approve r r rik RETIREE HEALTH INSURANCE TRUST BOARD NOTICE OF CANCELLATION OF MEETING NOTICE IS HEREBY GIVEN that the November 3, 2014, regularly scheduled meeting of the Retiree Health Insurance Board of Trustees is cancelled. The next meeting is scheduled for February 2, 2015, at 9 a.m. DATED: October 8, 2014 CITY OF ELGIN By Gail Cohen Retiree Health Insurance Trust Secretary r