HomeMy WebLinkAbout05-01-23 Meeting MinutesGalesburg Fire Pension Fund Board of Trustees Meeting
City Hall,Erickson Conference Room
55 West Tompkins Street,Galesburg,Illinois
May 1,2023
10:30 a.m.
Call to order by President John Seitz at 10:33 a.m.
Present:Kelli Bennewitz,John Cratty,Matt Lewis,Brad Nolden,and John Seitz.Others Present:
Alex Courtney,Joe Brignall,and Gloria Osborn.
Gloria Osborn,City Treasurer,explained to the Board the new section of the Financial Policies
regarding the pension funds,which was approved November 2022:
After the review and confirmation from the external audit firm that excess General Fund
unassigned fund balance will result for the audited fiscal year.The Director of Finance and
Information Systems,upon approval by the City Manager,shall annually transfer any General
Fund unreserved unassigned fund balance in excess of the required fund balance amount
reserve to the following liabilities and/or funds in the following order:
1.Police and fire public safety pension funds.If during the most recent completed fiscal
year,the police and fire pension funds were not fully funded to the annual pension
funds’actuarial firm’s recommended contribution amount,the difference between the
recommended contribution and provided contribution will be submitted to the public
safety pension funds.If the excess amount of unassigned fund balance is not sufficient
to fulfill the full requirement of the actuarial recommended contribution for both public
safety pension funds,the excess funds will be divided equally and submitted to each of
the pension funds or if applicable,only up to a pension fund’s recommended actuarial
amount with the remaining amount being provided to the other pension fund and only
up to the actuarial firm’s recommended contribution amount for that pension fund.
She noted that Pension Funding Policies section revision is to be more general but still specific
enough to inform the reader of the document that the City Council is recognizing the need to
meet the State statute required funding level at the required time period.Osborn stated that
since FY 2020,the pension funds were budgeted at the state minimum level.The reason for
this funding level at the time was due to the unknown of how the pandemic would affect the
City ’s finances.
Secretary Bennewitz announced that John Cratty had been elected as the retired firefighter
representative.
Kelli Bennewitz moved,seconded by Matt Lewis,to approve the following slate of officers:
John Seitz --President
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Matt Lewis --Vice President
Kelli Bennewitz --Secretary
The motion passed.
Ian Irvine,Lauterbach &Amen,LLP,presented the Fire Pension Fund Report for the contribution
year ending December 31,2023,for funding purposes,and for the fiscal year ending December
31,2022,for financial statement reporting.Highlights included:
●Recommended contribution is $3,635,959,an increase of 11.48%or $374,479
●50.41%funded
●Two members were hired during the year,which increased the recommended
contribution by approximately $13,000.
●Three members retired during the year which increased the recommended contribution
by approximately $27,900.
●There were four retirees who passed away during the year,three of whom had an
eligible surviving spouse.
●There was one surviving spouse who passed away during the year.
●There were 60 inactive members who continued to collect benefits This decreased the
Recommended Contribution by approximately$19,600.
●Benefit payments are anticipated to increase 13%in the next five years and 28%in the
next 10 years.
●The Rate of Return on Investments on a fair value of assets for the fund was
approximately 13.79%net of administrative expense.The expected rate of return on
investments is 6.75%.
●The Fair Value of Assets ($24.6 million)is less than the Actuarial Accrued Liability for
inactive members ($46.1 million).
●The ratio of benefit payments to the Fair Value of Assets is 14.31%,compared to an
Expected Rate of Return on Investments of 6.75%.
Kelli Bennewitz reported that she has talked with the City Manager about having Lauterbach &
Amen,LLP attend and present at a work session in the near future.She will let Ian know when
something can be scheduled.
Alex Courtney presented a financial statement for the fund ending March 31,2023.Total assets
are $25,057,164 and total liabilities are $38,077.The net position-restricted pension benefits is
$25,019,087.He also provided a transaction report for the period January -March 2023.
Brad Nolden moved,seconded by Matt Lewis,to approve the minutes from the February 6,
2023,meeting.The motion carried.
New Business
Next Meeting date --August 7,2023
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Matt Lewis moved,seconded by John Cratty,to approve the retirement of Steven K.Selliers
from pension fund as of March 3,3023.The motion carried.
Kelli Bennewitz moved,seconded by Matt Lewis,to approve the admission of new firefighters
Bumphrey,Brackett,Saathoff,Hanson,and Holmberg.The motion carried.
Public Comment –None.
There being no further business,the meeting adjourned at 11:42 a.m.
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John Seitz,President Kelli R.Bennewitz,Secretary
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