2016 Fire Annual ReportVILLAGE OF BUFFALO GROVE, ILLINOS
FIREFIGHTERS' PENSION FUND
HOUSE BILL 5088 - MUNICIPAL COMPLIANCE REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2016
VILLAGE OF BUFFALO GROVE, ILLINOS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2016
1)
$54,156,957 $50,360,433
$54,178,444 $50,348,164
2)
$544,500
$3,791,000
$1,897,942
3)
$1,585,821
$1,897,942
$1,347,667
The Pension Board certifies to the Board of Trustees of the Village of Buffalo Grove, Illinos on the
condition of the Pension Fund at the end of its most recently completed fiscal year the following
information:
The total cash and investments of the fund and their current market value of those assets:
Current Preceding
Fiscal Year Fiscal Year
Total Cash and Investments
Total Net Position
Estimated Receipts - Employee Contributions
Estimated Receipts - All Other Sources
Investment Earnings
The estimated receipts during the next succeeding fiscal year from deductions from the salaries of
firefighters and from other sources:
Municipal Contributions
Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance
Recommended Municipal Contribution
Statutory Municipal Contribution
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 - Lauterbach & Amen, LLP
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VILLAGE OF BUFFALO GROVE, ILLINOS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2016
4)
$3,415,512 $654,625
5)
$N/A
$N/A
6) The total number of active employees who are financially contributing to the fund:
7)
$1,926,367
$219,627
$79,416
Totals $2,225,410
(iii) Survivors and Child Benefits
Net Income Received from Investment of Assets
Assumed Investment Return
Illinois Department of Insurance
Private Actuary - Lauterbach & Amen, LLP
Actual Investment Return
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
Fiscal Year Fiscal Year
6.75% 6.75%
7.00% 7.00%
2
6.76% 1.32%
The increase in employer pension contributions that results from the implementation of the
provisions of P.A. 93-0689:
55
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
28
4
Illinois Department of Insurance - Actuarial Report
Private Actuary - Lauterbach & Amen, LLP
Number of Active Members
(i) Regular Retirement Pension
(ii) Disability Pension
34
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VILLAGE OF BUFFALO GROVE, ILLINOS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2016
8) The funded ratio of the fund:
9)
$15,608,181
$16,779,519
10)
Please see Notes Page attached.
President Date
Secretary Date
Illinois Department of Insurance
Private Actuary - Lauterbach & Amen, LLP
Unfunded Liability:
CERTIFICATION OF MUNICIPAL FIREFIGHTERS'
Current Preceding
Fiscal Year Fiscal Year
78.05% 76.59%
76.74% 74.04%
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.
Illinois Department of Insurance
Private Actuary - Lauterbach & Amen, LLP
Investment Policy - See Attached.
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.
Adopted this ___________ day of __________, 2017
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VILLAGE OF BUFFALO GROVE, ILLINOS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2016
INDEX OF ASSUMPTIONS
1)
2)
Estimated Receipts - All Other Sources
3) Annual Requirement of the Fund as Determined by:
Total Cash and Investments - as Reported in the Audited Financial Statements for the Years Ended
December 31, 2016 and 2015.
Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements for
the Year Ended December 31, 2016 plus 5.43% Increase (Actuarial Salary Increase Assumption)
Rounded to the Nearest $100.
Investment Earnings - Cash and Investments as Reported in the Audited Financial Statements
for the Year Ended December 31, 2016, 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, 2016.
Illinois Department of Insurance - Suggested Amount of Tax Levy as Reported in the
December 31, 2016 Actuarial Valuation.
Private Actuary
Recommended Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in the
December 31, 2016 Actuarial Valuation.
Statutorily Required Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in
the December 31, 2016 Actuarial Valuation.
Total Net Position - as Reported at Market Value in the Audited Financial Statements for the
Years Ended December 31, 2016 and 2015.
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VILLAGE OF BUFFALO GROVE, ILLINOS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2016
INDEX OF ASSUMPTIONS - Continued
4)
Assumed Investment Return
5)
6)
7)
(ii) Disability Pension - Same as above.
(iii) Survivors and Child Benefits - Same as above.
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,
2016 and 2015.
Illinois Department of Insurance - Current and Preceding Fiscal Year Interest Rate
Assumption as Reported in the December 31, 2016 and 2015 Actuarial Valuations.
Private Actuary - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in
the Lauterbach & Amen, LLP, December 31, 2016 and 2015 Actuarial Valuations.
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.
Number of Active Members - Illinois Department of Insurance Annual Statement for December
31, 2016 - Schedule P.
Actual Investment Return -Net Income Received from Investments as Reported Above as a
Percentage of the Average of the Beginning and Ending Balances of the Fiscal Year Cash
Investments, Excluding Net Investment Income, Gains, and Losses for the Fiscal Year Return
Being calculated, as Reported in the Audited Financial Statements for the Fiscal Years Ended
December 31, 2016, 2015 and 2014.
(i) Regular Retirement Pension - Illinois Department of Insurance Annual Statement for
December 31, 2016 - Schedule P for Number of Participants and Expense page 1 for Total
Amount Disbursed.
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VILLAGE OF BUFFALO GROVE, ILLINOS
FIREFIGHTERS' PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2016
INDEX OF ASSUMPTIONS - Continued
8) The funded ratio of the fund:
9) Unfunded Liability:
Illinois Department of Insurance - Deferred Asset (Unfunded Accrued Liability) as Reported
in the December 31, 2016 Actuarial Valuation.
Private Actuary - Deferred Asset (Unfunded Accrued Liability) as Reported by Lauterbach &
Amen, LLP in the December 31, 2016 Actuarial Valuation.
Illinois Department of Insurance - Current and Preceding Fiscal Year Net Present Assets as a
percentage of Total Assets as Reported in the December 31, 2016 and 2015 Actuarial
Valuations.
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, 2016 and December
31, 2015 Actuarial Valuations.
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