2012 Police Annual ReportVILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
HOUSE BILL 5088 - MUNICIPAL COMPLIANCE REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2012
L a uter ba ch & A men, L LP
CERTIFI ED PUBLI C ACCOUNTANTS
2 7W 457 WARRENVILLE ROAD • WARRENVI LLE, ILLIN OIS 60555 -3902
PHON E (630) 393-1483 / FAX (630) 393-2516
October 7, 2013
Members of the Pension Board of Trustees
Buffalo Grove Police Pension Fund
Buffalo Grove, IL
Enclosed please find a copy of your Municipal Compliance Report for the Buffalo Grove Police
Pension Fund for the year ended December 31, 2012. We have prepared the report with the most
recent information available at our office. Should you have more current information, or notice
any inaccuracies, we are prepared to make any necessary revisions and return them to you.
The President and Secretary of the Pension Fund are required to sign the report on page 3. If not
already included with the enclosed report, please also include a copy of the Pension Fund’s most
recent investment policy.
The signed House Bill 5088 - Municipal Compliance Report must be provided to the
Municipality before the tax levy is filed on the last Tuesday in December.
If you have any questions regarding this report please contact me at (630) 393-1483.
Respectfully submitted,
LAUTERBACH & AMEN, LLP
VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2012
1)
Total Assets $48,533,454 $44,510,364
Market Value $48,533,454 $44,510,364
2)
Estimated Receipts - Employee Contributions $619,700
Estimated Receipts - All Other Sources
Investment Earnings $3,397,300
Municipal Contributions $2,359,777
3)
(a) Pay all Pensions and Other Obligations $2,695,500
(b) Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance $N/A
Recommended Municipal Contribution $2,359,777
Statutory Municipal Contribution $1,891,576
The estimated receipts during the next succeeding fiscal year from deductions from the salaries of police
officers and from other sources:
Private Actuary- Lauterbach & Amen, LLP
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 amount required during the next succeeding fiscal year to (a)pay all pensions and other
obligations provided in Article 3 of the Illinois Pension Code,and (b)to meet the annual requirements of
the fund as provided in Sections 3-125 and 3-127:
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VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE 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 $3,303,507 $1,914,433
Assumed Investment Return
Illinois Department of Insurance
Private Actuary- Lauterbach & Amen, LLP
Actual Investment Return
5)The total number of active employees who are financially contributing to the fund:
Number of Active Members
6)
(i) Regular Retirement Pension $1,996,634
(ii) Disability Pension $89,528
(iii) Survivors and Child Benefits $28,309
Totals $2,114,471
Preceding
Number of Disbursed
32
Fiscal Year Fiscal Year
N/A 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
7.10%4.45%
66
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
7.00%7.00%
36
2
2
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VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2012
7)The funded ratio of the fund:
Illinois Department of Insurance
Private Actuary- Lauterbach & Amen, LLP
8)
Unfunded Liability:
Illinois Department of Insurance $N/A
Private Actuary- Lauterbach & Amen, LLP $22,524,865
9)
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 POLICE
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 §3-143 of the Illinois Pension Code 40 ILCS 5/3-143,that the preceding
report is true and accurate.
N/A N/A
68.59%62.02%
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
POLICE 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)
(b) Annual Requirement of the Fund as Determined by:
Municipal Contributions -Recommended Tax Levy Requirement as Reported by Lauterbach &
Amen, LLP, Actuarial Valuation for the Year Ended December 31, 2012.
(a)Pay all Pensions and Other Obligations -Total Deductions as Reported in the Audited Financial
Statements for the Year Ended December 31, 2012, plus a 25% Increase, Rounded to the Nearest $100.
Illinois Department of Insurance -No December 31,2012 Actuarial Valuation available at the time
of this report.
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 Lauterbach &Amen,LLP in the
December 31, 2012 Actuarial Valuation.
Statutorily Required Amount of Tax Levy as Reported by Lauterbach &Amen,LLP 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%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
POLICE 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 and Preceding Fiscal Year Interest Rate Assumption -
No December 31, 2012 or 2011 Actuarial Valuations available at the time of this report.
Private Actuary -Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the
Lauterbach & Amen, LLP, December 31, 2012 and 2011 Actuarial Valuations.
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.
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VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE 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)-No December 31,
2012 Actuarial Valuation available at the time of this report.
Illinois Department of Insurance -Current and Preceding Fiscal Year Net Present Assets -No
December 31, 2012 or 2011 Actuarial Valuations available at the time of this report.
Private Actuary -Current and Preceding Fiscal Year Net Present Assets as a percentage of Total
Assets as Reported in the Lauterbach &Amen,LLP,December 31,2012 and December 31,2011
Actuarial Valuations.
Private Actuary -Deferred Asset (Unfunded Accrued Liability)as Reported by Lauterbach &
Amen, LLP in the December 31, 2012 Actuarial Valuation.
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