Peoria Standard

City of Peoria Firemen’s Pension Fund Board of Trustees met Aug. 29.

Here are the minutes provided by the board:

A Regular Rescheduled Meeting of the Board of Trustees of the Firemen's Pension Fund of Peoria, Illinois, will be held this date at City Hall, Room 404, Peoria, Illinois at 9:30 A.M. with proper notice having been given, for the purpose of conducting regular Firemen's Pension Fund business.

ROLL CALL

Roll Call showed the following Board members present: Smith, Tarr, Tomblin, President Troglio - 4. Absent: Higgins - 1.

Others present: Jason Franken, Foster & Foster; City Treasurer Stephen Morris; and Chief Deputy City Clerk Trina Bonds.

INVOCATION

A moment of silence was held in remembrance of those Firefighters who have served our community.

MINUTES

Recommendation to Approve the Minutes of the Regular Board Meeting held on July 25, 2022, as printed.

Trustee Smith moved to approve the minutes of the Regular Board Meeting held on July 25, 2022; seconded by President Troglio.

Approved by viva voce vote.

REGULAR BUSINESS

ITEM NO. 1 STATEMENT OF RESULTS from NORTHERN TRUST dated June 2022, with Request to Receive and File.

The Statement of Results from Northern Trust as of June 2022 showed an ending balance of $133,890,855.13 with a net return of-6.17%.

After brief comments, President Troglio moved to receive and file the Statement of Results from Northern Trust; seconded by Trustee Smith.

Approved by viva voce vote.

PRESENTATION FROM FOSTER & FOSTER REGARDING THE ACTUARIAL REPORT

Mr. Jason Franken of Foster & Foster provided a presentation regarding the January 1, 2022, Actuarial Valuation. He said there were no plan changes since the prior valuation. He gave a brief summary of the actuarial assumptions made based on the results of the 2021 experience study performed by the Illinois Firefighters' Pension Investment Fund. He said there were several changes, and he reported those changes led to an increase in the Fund's liabilities and contribution requirements this year, with an approximate $1 .3 million increase in the contributions. He said the asset experience for the year ended December 31 , 2021, was very strong. He remarked the City had been funding based on statutory minimums and he noted the actual contributions were approximately $2 million less than the total recommended, which led to additional unfunded liability.

Mr. Franken reviewed the details of the Comparative Summary of Principal Valuation Results. He reviewed the following two assets: Actuarial Value and Market Value. He said the Actuarial Value was nearly $13 million less the Market Value. He said it was a result of having three strong years of investment performance. He said the unrecognized investment gains would help going forward. He said in 2022, the returns had been significantly negative. He noted almost $5 million in increased liabilities due to assumption changes. He reported the Funded Ratio went up from 48.9% to 50.7% before the assumption change, but it ended up around 50.0% as of 1/1/22, as a result of the liability increase.

Mr. Franken reviewed past contributions of the Fund for plan years ending 12/31/21. He said the total recommended contribution from the City was $14,234,528 versus their actual contribution of $12,328,359, which was nearly $2 million less than recommended. He remarked the City had met their obligation from the State's perspective.

Mr. Franken reviewed the 5 Year Comparison of Investment Return on Actuarial Value. He said the year ended 12/31/21 showed the market return versus the smooth return and then the assumption. He said the assumption had been 6.75% the entire time, but he said the market value this year was at 7.85%. He noted, on a smooth basis, the actual return was at 10.39%.

Mr. Franken reviewed the Statutory Minimum Required Contributions based on the Illinois Pension Code. He noted in 2021 , the contribution was $12,159,887, which was a little lower than the amount contributed by the City. He remarked the Old Assumption was $12,492,816 versus the New Assumption of $13,268,545, as a result of assumption changes. He said on a statutory minimum basis, it was expected for contributions to go up based on the new valuation. He then reviewed the Actuarial Asset Valuation as of 12/31/21 . He remarked the Expected Investment Earnings were $11,197,759 versus the Actual Net Investment Earnings of $13,024,559, which resulted in $1.8 of investment gains. He said over the next four years, there would $1 .5 million in gains recognized. He also mentioned a $12.4 million cushion that would offset the losses that were occurring in 2022. He noted this would keep the contributions from significantly going up in the next valuation.

Discussion was held regarding the information provided regarding actuarial assumptions. The Board decided to add the item on the September Agenda to be received and filed.

ITEM NO. 2 Report from Fire Marshal Shawn Sollberger of Pension Fund Contributions, which were made by payroll deductions during the MONTH of JULY 2022, from the active members of the Peoria Fire Department and which checks were turned in to the City Treasurer's Office by Director of Finance/Comptroller, with Recommendation to Concur and Receive and File.

Trustee Smith moved to concur and place on file the Fire Marshal's Report for July 2022; seconded by Trustee Tomblin.

Approved by viva voce vote.

ITEM NO. 3 Request to APPROVE the following BILLS:

Pensions for August 2022 (dated August 31, 2022) - $1,493,829.91

Foster & Foster - 1/1/22 Pension Valuation - 9,409.00

Reimer Dobrobolny & Labardi PC - Legal Svcs - 3,178.77

INSPE Associates - Dr. Jeffrey Williamson-Link - Gregory Parker - 508.00

SUB-TOTAL FOR AUGUST - $1 ,508,925.68

APPROVE GRAND TOTAL FOR AUGUST - $1,508,925.68

Trustee Smith moved to approve the bills for August 2022, in the amount of $1 ,508,925.68; seconded by Trustee Tomblin.

Approved by roll call vote.

Yeas: Smith, Tarr, Tomblin, President Troglio - 4;

Nays: None.

ITEM NO. 4 REQUEST to APPROVE the REMOVAL from the PENSION ROLLS of TIMOTHY M. KELLY Due to His Death on JULY 30, 2022, and to Make Payments to the Timothy M. Kelly Estate, in the Amount of $0, for July 2022. Recommendation: To RECEIVE and FILE the Death Certificate, and to APPROVE the Payment of $0 for the month of July.

Trustee Tomblin moved to approve the removal from the pension rolls of Timothy M. Kelly due to his death on July 30, 2022, and to make payment to the Timothy M. Kelly Estate, in the amount of $0 for July and to receive and file the Death Certificate; seconded by Trustee Smith.

Approved by roll call vote.

Yeas: Smith, Tarr, Tomblin, President Troglio - 4;

Nays: None.

ITEM NO. 5 REQUEST to ACCEPT the APPLICATION for a WIDOW'S PENSION BENEFIT for SHARON L. KELLY, She being the Widow of TIMOTHY M. KELLY, with Benefits Commencing August 1, 2022, with her Benefit Based on 100% of his monthly benefit of $7,687.69 per month; therefore Benefits for O days of July to be Paid, in the amount of $0 and $7,687.69 for each month thereafter. Recommendation: APPROVE the Payment $0 for July and $7,687.69 for each month thereafter.

Trustee Tomblin moved to accept the Application for a Widow's Pension Benefit for Sharon L. Kelly, she being the widow of Timothy M. Kelly, with benefits commencing August 1, 2022, with her benefit to be based on 100% of his monthly pension benefit of $7,687.69 per month; therefore benefits for July to be paid, in the amount of $0 and $7,687.69 for each month thereafter; seconded by Trustee Smith.

Approved by roll call vote.

Yeas: Tarr, Tomblin, President Troglio -4;

Nays: None.

ITEM NO. 6 APPLICATION for REGULAR RETIREMENT PENSION for FIRE CAPTAIN CHANCE BARLOW to become effective July 25, 2022, (last day paid by the

City July 24, 2022) based on 72.0833% of his Annual Salary of $110,833.42 (which includes longevity). Pension to be paid for the remaining 6 days of July, in the Amount of $1,288.56 and $6,657.70 for every month thereafter with recommendation for the Board to APPROVE.

Trustee Smith moved to approve the Application for Regular Retirement Pension for Fire Captain Chance Barlow to become effective July 25, 2022, (last day paid by the City July 24, 2022) based on 72.0833% of his annual salary of $110,833.42 with pension to be paid for the remaining 6 days of July, in the amount of $1,288.56 and $6,657.70 for every month thereafter; seconded by President Troglio.

Approved by roll call vote.

Yeas: Smith, Tarr, Tomblin, President Troglio - 4;

Nays: None.

ITEM NO. 7 REQUEST to APPROVE the FIRE CONTRIBUTION REFUND from TREVOR

T. LEVY, in the Amount of $18,673.50, to be Paid in a Direct Rollover Distribution Payable to E*TRADE SECURITIES LLC.

Trustee Smith moved to approve the Fire Contribution Refund from Trevor T. Levy, in the Amount of $18,673.50, to be Paid in a Direct Rollover Distribution Payable to E*TRADE SECURITIES LLC; seconded by Trustee Tomblin.

Approved by roll call vote.

Yeas: Smith, Tarr, Tomblin, President Troglio - 4;

Nays: None.

ITEM NO. 8 MONTHLY FINANCIAL REPORT from LAUTERBACH & AMEN, LLP for the Month of JUNE 2022, which Includes the STATEMENT OF PLAN NET ASSETS, STATEMENT OF CHANGES IN PLAN NET ASSETS, SUMMARY of CASH AND INVESTMENTS, BALANCE SHEET, REVENUES and REVENUE REPORT, EXPENSES and EXPENSE REPORT, PAYROLL JOURNAL, and VENDOR CHECKS REPORT, with Recommendation to APPROVE.

Trustee Tomblin moved to approve the monthly financial reports from Lauterbach & Amen, LLP for the month of June 2022, which includes the Statement of Plan Net Assets, Statement of Changes in Plan Net Assets, Summary of Cash and Investments, Balance Sheet, Revenues and Revenue Report, Expenses and Expense Report, Payroll Journal, and Vendor Checks Report; seconded by President Troglio.

Approved by roll call vote.

Yeas: Smith, Tarr, Tomblin, President Troglio - 4;

Nays: None.

ITEM NO. 9 REQUEST for APPROVAL of a RESOLUTION Authorizing City Treasurer Stephen Morris the POWER TO INVEST, and Authorize City Treasurer Morris to Maintain a Minimum of $10,000.00 in the HARRIS BANK ACCOUNT.

Trustee Smith moved to approve a Resolution authorizing City Treasurer Stephen Morris the power to invest and authorize City Treasurer Morris to maintain a minimum of $10,000.00 in the Harris Bank Account; seconded by Trustee Tomblin.

Approved by roll call vote.

Yeas: Smith, Tarr, Tomblin, President Troglio - 4;

Nays: None.

UNFINISHED BUSINESS

City Treasurer Morris gave a brief update to the Board regarding the Cash Account. He reported $6,460,000.00 in Morton Community Bank. He noted a real estate tax contribution of $201 ,000 in August. He reported the recurring $1 .5 million transfer was happening. He said with all the other contributions, the $6.5 million would continue to increase. He said if the City continued to contribute approximately $300,000 per month, the numbers would keep going up.

NEW BUSINESS

There was no new business to discuss.

EXECUTIVE SESSION

It was determined that an Executive Session was not needed at this time. CITIZENS' OPPORTUNITY TO ADDRESS THE BOARD OF TRUSTEES It was determined that there were no citizens to address the Board of Trustees.

ADJOURNMENT

Trustee Tomblin moved to adjourn the Regular Rescheduled Firemen's Pension Board Meeting; seconded by Trustee Smith.