2013 Police Annual ReportVILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
HOUSE BILL 5088 - MUNICIPAL COMPLIANCE REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 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, 2013
1)
Total Net Assets $52,540,449 $48,507,002
Market Value $52,540,449 $48,507,002
2)
Estimated Receipts - Employee Contributions $601,300
Estimated Receipts - All Other Sources
Investment Earnings $3,677,800
Municipal Contributions $2,256,676
3)
(a) Pay all Pensions and Other Obligations $3,296,900
(b) Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance $2,041,473
Recommended Municipal Contribution $2,256,676
Statutory Municipal Contribution $1,971,725
The estimated receipts during the next succeeding fiscal year from deductions from the salaries
of firefighters and from other sources:
Private Actuary - Lauterbach & Amen, LLP
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:
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 net assets of the fund and their current market value of those assets:
Current Preceding
Fiscal Year Fiscal Year
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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, 2013
4)
Net Income Received from Investment of Assets $5,647,018 $3,313,729
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 $2,270,489
(ii) Disability Pension $89,528
(iii) Survivors and Child Benefits $98,534
Totals $2,458,55139
2
11.18%7.13%
64
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
Number of Disbursed
35
2
Fiscal Year Fiscal Year
6.75%6.75%
7.00%7.00%
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
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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, 2013
7)The funded ratio of the fund:
Illinois Department of Insurance
Private Actuary- Lauterbach & Amen, LLP
8)
Unfunded Liability:
Illinois Department of Insurance $21,991,033
Private Actuary - Lauterbach & Amen, LLP $24,553,328
9)
Investment Policy - See Attached.
Please see Notes Page attached.
President Date
Secretary Date
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.
Adopted this ___________ day of __________, 2014
CERTIFICATION OF MUNICIPAL FIREFIGHTERS'
Current Preceding
Fiscal Year Fiscal Year
70.47%70.59%
67.67%68.59%
The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded
liability:
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.
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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, 2013
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:
Total Net Assets -as Reported in the Audited Financial Statements for the Years Ended
December 31, 2013 and 2012.
Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements
for the Year Ended December 31, 2013 plus 5.81% Increase (Actuarial Salary Increase
Assumption) Rounded to the Nearest $100.
Investment Earnings - Net Assets as Reported in the Audited Financial Statements for the
Year Ended December 31, 2013, times 7% (Actuarial Investment Return Assumption)
Rounded to the Nearest $100.
Municipal Contributions - Recommended Tax Levy Requirement as Reported by
Lauterbach & Amen, LLP, Actuarial Valuation for the Year Ended December 31, 2013.
Illinois Department of Insurance - Suggested Amount of Tax Levy as Reported in the
December 31, 2013 Actuarial Valuation.
Private Actuary
Recommended Amount of Tax Levy as Reported by Lauterbach & Amen,LLP in the
December 31, 2013 Actuarial Valuation.
Statutorily Required Amount of Tax Levy as Reported by Lauterbach & Amen,LLP in
the December 31, 2013 Actuarial Valuation.
(a)Pay all Pensions and Other Obligations - Total Deductions as Reported in the Audited
Financial Statements for the Year Ended Buffalo Grove, plus a 25%Increase,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, 2013
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 as Reported in the December 31, 2013 and 2012 Actuarial Valuations.
Private Actuary -Current and Preceding Fiscal Year Interest Rate Assumption as Reported
in the Lauterbach & Amen, LLP, December 31, 2013 and 2012 Actuarial Valuations.
Actual Investment Return -Net Income Received from Investments as Reported Above as a
Percentage of the Average of the Beginning and End of Year Net Assets as Reported in the
Audited Financial Statements for the Fiscal Years Ended December 31, 2013, 2012 and 2011.
Number of Active Members -Illinois Department of Insurance Annual Statement for December
31, 2013 - Schedule P.
(i)Regular Retirement Pension -Illinois Department of Insurance Annual Statement for
December 31,2013 -Schedule P for Number of Participants and Expense page 1 for Total
Amount Disbursed.
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,
2013 and 2012.
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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, 2013
INDEX OF ASSUMPTIONS - Continued
7)The funded ratio of the fund:
8)Unfunded Liability:
Private Actuary -Deferred Asset (Unfunded Accrued Liability)as Reported by Lauterbach
& Amen, LLP in the December 31, 2013 Actuarial Valuation.
Illinois Department of Insurance -Deferred Asset (Unfunded Accrued Liability)as Reported
in the December 31, 2013 Actuarial Valuation.
Illinois Department of Insurance -Current and Preceding Fiscal Year Actuarial Value of
Assets as a percentage of Actuarial Liability as Reported in the December 31,2013 and
2012 Actuarial Valuations.
Private Actuary -Current and Preceding Fiscal Year Actuarial Value of Assets as a
percentage of Actuarial Liability as Reported in the Lauterbach &Amen,LLP,December
31, 2013 and December 31, 2012 Actuarial Valuations.