2012 Fire Annual ReportVILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
HOUSE BILL 5088 - MUNICIPAL COMPLIANCE REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2012
VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2012
1)
Total Assets $40,124,836 $35,575,960
Market Value $40,124,836 $35,575,960
2)
Estimated Receipts - Employee Contributions $533,900
Estimated Receipts - All Other Sources
Investment Earnings $2,808,700
Municipal Contributions $2,174,632
3)
Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance $1,642,849
Recommended Municipal Contribution $2,174,632
Statutory Municipal Contribution $2,013,917
The Pension Board certifies to the Board of Trustees of the Village of Buffalo Grove,Illinois on the condition
of the Pension Fund at the end of its most recently completed fiscal year the following information:
The total assets of the fund and their current market value of those assets:
Current Preceding
Fiscal Year Fiscal Year
The estimated receipts during the next succeeding fiscal year from deductions from the salaries of
firefighters' and from other sources:
The estimated amount necessary during the fiscal year to meet the annual actuarial requirements of the
pension fund as provided in Sections 4-118 and 4-120:
Private Actuary - Timothy W. Sharpe
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VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2012
4)
Net Income Received from Investment of Assets $3,320,342 $545,776
Assumed Investment Return
Illinois Department of Insurance
Private Actuary - Timothy W. Sharpe
Actual Investment Return
5)
Illinois Department of Insurance - Actuarial Report $N/A
$N/A
6)The total number of active employees who are financially contributing to the fund:
Number of Active Members
7)
(i) Regular Retirement Pension $1,083,569
(ii) Disability Pension $70,210
(iii) Survivors and Child Benefits $72,654
Totals $1,226,434
6.75%N/A
The total net income received from investment of assets along with the assumed investment return and
actual investment return received by the fund during its most recently completed fiscal year compared to
the total net income,assumed investment return,and actual investment return received during the
preceding fiscal year:
Current Preceding
7.00%7.00%
Number of Disbursed
21
Fiscal Year Fiscal Year
8.77%1.58%
59
The total amount that was disbursed in benefits during the fiscal year,including the number of and total
amount disbursed to (i)annuitants in receipt of a regular retirement pension,(ii)recipients being paid a
disability pension, and (iii) survivors and children in receipt of benefits:
Total Amount
The increase in employer pension contributions that results from the implementation of the provisions of
P.A. 93-0689:
Private Actuary - Timothy W. Sharpe
25
2
2
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VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2012
8)The funded ratio of the fund:
Illinois Department of Insurance
Private Actuary - Timothy W. Sharpe
9)
Unfunded Liability:
Illinois Department of Insurance $15,428,255
Private Actuary - Timothy W. Sharpe $23,074,952
10)
Investment Policy - See Attached.
Please see Notes Page attached.
President Date
Secretary Date
Current Preceding
Fiscal Year Fiscal Year
The accrued liability is the actuarial present value of the portion of the projected benefits that has been
accrued as of the valuation date based upon the actuarial valuation method and the actuarial assumptions
employed in the valuation.The unfunded accrued liability is the excess of the accrued liability over the
actuarial value of assets.
The investment policy of the Pension Board under the statutory investment restrictions imposed on the
fund.
CERTIFICATION OF MUNICIPAL FIREFIGHTERS'
PENSION FUND COMPLIANCE REPORT
The Board of Trustees of the Pension Fund,based upon information and belief,and to the best of our
knowledge,hereby certify pursuant to §4-134 of the Illinois Pension Code 40 ILCS 5/4-134,that the preceding
report is true and accurate.
72.47%N/A
63.68%63.43%
The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded liability:
Adopted this ___________ day of __________, 2013
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VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2012
INDEX OF ASSUMPTIONS
1)
Market Value - Same as Above.
2)
Estimated Receipts - All Other Sources
3)Annual Requirement of the Fund as Determined by:
Municipal Contributions -Recommended Tax Levy Requirement as Reported by Timothy W.
Sharpe, Actuarial Valuation for the Year Ended December 31, 2012.
Illinois Department of Insurance -Suggested Amount of Tax Levy as Reported in the December 31,
2012 Actuarial Valuation.
Total Assets -as Reported in the Audited Financial Statements for the Years Ended December 31,2012
and 2011.
Private Actuary
Recommended Amount of Tax Levy as Reported by Timothy W.Sharpe in the December 31,
2012 Actuarial Valuation.
Statutorily Required Amount of Tax Levy as Reported by Timothy W.Sharpe in the December
31, 2012 Actuarial Valuation.
Estimated Receipts -Employee Contributions as Reported in the Audited Financial Statements for the
Year Ended December 31,2012 plus 5.5%Increase (Actuarial Salary Increase Assumption)Rounded to
the Nearest $100.
Investment Earnings -Cash and Equivalents and Investments as Reported in the Audited Financial
Statements for the Year Ended December 31,2012,times 7%(Actuarial Investment Return
Assumption) Rounded to the Nearest $100.
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VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2012
INDEX OF ASSUMPTIONS - Continued
4)
Assumed Investment Return
5)
6)
(ii) Disability Pension - Same as above.
(iii) Survivors and Child Benefits - Same as above.
Illinois Department of Insurance -Current Fiscal Year Interest Rate Assumption as Reported in the
December 31,2012 Actuarial Valuation.No December 31,2011 Actuarial Valuation available at
the time of this report.
Private Actuary -Current Interest Rate Assumption as Reported in the Timothy W.Sharpe,
December 31,2012 Actuarial Valuation.Preceding Fiscal Year Interest Rate Assumption as
Reported in the Timonthy W. Sharpe, December 31, 2011 Actuarial Valuation.
Net Income Received from Investment of Assets -Investment Income (Loss)net of Investment Expense,
as Reported in the Audited Financial Statements for the Years Ended December 31, 2012 and 2011.
Actual Investment Return -Net Income Received from Investments as Reported Above as a Percentage
of the Average of the Beginning and End of Year Cash and Cash Equivalents and Investments as
Reported in the Audited Financial Statements for the Fiscal Years Ended December 31,2012,2011 and
2010.
Number of Active Members -Illinois Department of Insurance Annual Statement for December 31,
2012 - Schedule P.
(i)Regular Retirement Pension -Illinois Department of Insurance Annual Statement for December 31,
2012 - Schedule P for Number of Participants and Expense page 1 for Total Amount Disbursed.
Illinois Department of Insurance -Amount of total suggested tax levy to be excluded from the property
tax extension limitation law as contemplated by 35 ILCS 200/18-185.
Private Actuary - No Private Actuarial Valuation amount available at the time of this report.
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VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2012
INDEX OF ASSUMPTIONS - Continued
7)The funded ratio of the fund:
8)Unfunded Liability:
Illinois Department of Insurance -Deferred Asset (Unfunded Accrued Liability)as Reported in the
December 31, 2012 Actuarial Valuation.
Illinois Department of Insurance -Current Fiscal Year Net Present Assets as a percentage of Total
Assets as Reported in the December 31,2012 Actuarial Valuation.No December 31,2011
Actuarial Valuation available at the time of this report.
Private Actuary -Current Fiscal Year Net Present Assets as a percentage of Total Assets as
Reported in the Timothy W.Sharpe,December 31,2012 Actuarial Valuation.Preceding Fiscal
Year Net Present Assets as a percentage of Total Assets as Reported in the Timonthy W.Sharpe,
December 31, 2011 Actuarial Valuation.
Private Actuary -Deferred Asset (Unfunded Accrued Liability)as Reported by Timothy W.Sharpe
in the December 31, 2012 Actuarial Valuation.
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