Minutes - 03/21/2013 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
March 21. 2013
UNOFFICIAL UNTIL APPROVED AS WRITTEN X
OR AS AMENDED BY BOARD OF TRUSTEES OF THE
POLICE PENSION FUND ON April 25, 2013
1. CALL TO ORDER:
The Special Meeting of the Board of Trustees of the Oak Brook Police Pension Fund was called
to order on March 21, 2013 by President Vel Torlo at 6:13 p.m. in the West Wing Conference
Room of the Butler Government Center, 1200 Oak Brook Road, Oak Brook, Illinois.
2. ROLL CALL:
The roll was called with the following persons
PRESENT: President Val Torlo, Vice President Alan Feldman, Secretary Edward Caspers,
Trustee Hitesh Patel, Trustee Ben Kadolph
ABSENT: None
IN ATTENDANCE: Finance Director Sharon Dangles, Todd Schroeder of Lauterbach and Amen,
Pension Clerk Rose Kane
3. PUBLIC COMMENTS: None presented.
4. APPROVAL OF MINUTES:
a. Approval of Regular Meeting Minutes of January 30, 2013
Motion by Trustee Kadolph, seconded by Trustee Patel, to approve the Minutes of the
January 30, 2013 Regular Board Meeting, as written. VOICE VOTE: Motion carried.
5. PENDING BUSINESS:
a. Discussion and Recommendations regarding 2013 Actuarial Assumptions
Todd Schroeder referred to page 4 of his report and stated that final salary figures are now
included. He stated that $865,000 was last year's contribution and that the contribution pattern is
set up to increase at 4 %. He discussed the new mortality table, which results in about 15% more
in benefits than previously assumed, about a $170,000 increase in contributions. He added that
they are seeing retirements being a little more steady and termination rates are lower because
people are more likely to reach retirement than leave. Finance Director Dangles explained the
difference in pay increases being due to going to an 84 -hour pay period and retroactive pay and
Mr. Schroeder stated that this was a one -time event as far as the retroactive pay. He then
discussed the $977,000 figure on page 5. He explained that using the old mortality table, the
contribution would be approximately $170,000 less. Discussion ensued regarding comparisons
with the fire pension actuarial assumptions and using the RP2000 table, which blends police
officers and firefighters. It was suggested to include in the presentation to the Village Board an
explanation of reasons for the contribution increase and why to use this table. Mr. Schroeder
affirmed that the table previously used was the 1984 mortality table. Finance Director Dangles
explained that the difference in what the Pension Fund Board recommended and what the Village
Board authorized last year was based on going from projected unit to entry age normal and from
90% funding to 100% funding. Mr. Schroeder stated that the Department of Insurance has
completely revamped their assumptions which has contributed to the momentum of change. He
explained that entry age normal calculation entails calculating anticipated increases when the
individual is hired through their career. Discussion ensued regarding the report to present to the
Village Board and current pension legislation. Mr. Schroeder discussed that the changes concern
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes — March 21, 2013 Page 1 of 2
a 2% increase in an individual's contribution and also regarding COLAs. He explained about
Tier II employees and unfunded liabilities and that the liability in this report is based on current
employees.
Motion by Trustee Patel, seconded by Trustee Kadolph, to recommend the actuarial report
as recommended by Lauterbach & Amen and Todd Schroeder with amendments to the
language to reflect the mortality table changes as well as the percentage salary increase
changes and communicate the conservative nature of the proposal.
Finance Director Dangles affirmed that this will be on Village Board agenda for April 23, 2013.
ROLL CALL:
Ayes: 5 — Vice President Feldman, Secretary Caspers, Trustee Patel, Trustee Kadolph,
President Torlo
Nays: 0 — None
Absent: 0 — None. Motion carried.
6. INFORMATION AND UPDATES:
Discussion regarding next meeting and consensus to hold it on April 25'" at 6:00 p.m.
7. ADJOURNMENT:
Motion by Secretary Caspers, seconded by Vice President Feldman, to adjourn the Board of
Trustees of the Police Pension Fund meeting at approximately 7:04 p.m. VOICE VOTE: Motion
carried.
ATTEST:
Edward J. Caspers /s/
Edward J. Caspers, Secretary
Board of Trustees of the Police Pension Fund
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes — March 21, 2013 Page 2 of 2