2016 Police Annual ReportVILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
HOUSE BILL 5088 - MUNICIPAL COMPLIANCE REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2016
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, 2016
1)
$59,609,081 $56,503,331
$59,527,770 $56,384,952
2)
$648,700
$4,172,600
$2,673,256
3)
$4,159,400
$2,315,803
$2,673,256
$2,223,057Statutory Municipal Contribution
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 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 police officers and from other sources:
Municipal Contributions
(a) Pay all Pensions and Other Obligations
(b) Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance
Recommended Municipal Contribution
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:
Private Actuary- Lauterbach & Amen, LLP
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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, 2016
4)
$3,418,114 $186,333
Assumed Investment Return
Actual Investment Return
5) The total number of active employees who are financially contributing to the fund:
6)
$3,000,835
$42,580
$217,610
Totals $3,261,025
Net Income Received from Investment of Assets
Illinois Department of Insurance
Private Actuary- Lauterbach & Amen, LLP
Number of Active Members
(i) Regular Retirement Pension
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
N/A 6.75%
7.00%7.00%
6.07%0.33%
63
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
43
1
4
48
(ii) Disability Pension
(iii) Survivors and Child Benefits
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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, 2016
7) The funded ratio of the fund:
8)
Unfunded Liability:
$26,129,360
$28,305,083
9)
Please see Notes Page attached.
President Date
Secretary Date
Investment Policy - See Attached.
PrecedingCurrent
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.
Fiscal Year Fiscal Year
70.32%70.29%
68.60%67.58%
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.
CERTIFICATION OF MUNICIPAL POLICE
PENSION FUND COMPLIANCE REPORT
Illinois Department of Insurance
Private Actuary- Lauterbach & Amen, LLP
Illinois Department of Insurance
Private Actuary- Lauterbach & Amen, LLP
Adopted this ___________ day of __________, 2017
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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, 2016
INDEX OF ASSUMPTIONS
1)
2)
Estimated Receipts - All Other Sources
3)
(b) 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.
Total Net Position - as Reported at Market Value 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 4.7% 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.
(a) Pay all Pensions and Other Obligations - Total Deductions as Reported in the Audited
Financial Statements for the Year Ended December 31, 2016, plus a 25% Increase, Rounded to
the Nearest $100.
Illinois Department of Insurance - No December 31, 2016 Actuarial Valuation available at
the time of this report.
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.
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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, 2016
INDEX OF ASSUMPTIONS - Continued
4)
Assumed Investment Return
5)
6)
(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 - Preceding Fiscal Year Interest Rate Assumption as
Reported in the December 31, 2015 Actuarial Valuation. No December 31, 2016 Actuarial
Valuation 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, 2016 and 2015 Actuarial Valuations.
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.
Number of Active Members - Illinois Department of Insurance Annual Statement for December
31, 2016 - Schedule P.
(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, ILLINOIS
POLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2016
INDEX OF ASSUMPTIONS - Continued
7) The funded ratio of the fund:
8) Unfunded Liability:
Illinois Department of Insurance - Preceding Fiscal Year Net Present Assets as a percentage
of Total Assets as Reported in the December 31, 2015 Actuarial Valuation. No December
31, 2016 Actuarial Valuation 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, 2016 and
December 31, 2015 Actuarial Valuations.
Illinois Department of Insurance - Deferred Asset (Unfunded Accrued Liability) - No
December 31, 2016 Actuarial Valuation available at the time of this report.
Private Actuary - Deferred Asset (Unfunded Accrued Liability) as Reported by Lauterbach
& Amen, LLP in the December 31, 2016 Actuarial Valuation.
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