2017 Fire Annual ReportDECEMBER 31, 2017
THE VILLAGE OF BUFFALO GROVE,
ILLINOIS
FIREFIGHTERS' PENSION FUND
PUBLIC ACT 95-0950
MUNICIPAL COMPLIANCE REPORT
FOR THE FISCAL YEAR ENDED
August 10, 2018
Members of the Pension Board of Trustees
Buffalo Grove Firefighters' Pension Fund
Buffalo Grove, Illinois
Enclosed please find a copy of your Municipal Compliance Report for the Buffalo Grove Firefighters'
Pension Fund for the fiscal year ended December 31, 2017. 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 Public Act 95-0950 - Municipal Compliance Report must be provided to the Municipality
before the tax levy is filed on the last Tuesday in December. We are sending the report via email to
promote an environmentally-friendly work atmosphere.
If you have any questions regarding this report, please contact your Client Manager or PSA.
Respectfully submitted,
LAUTERBACH & AMEN, LLP
1)
Current Preceding
Fiscal Year Fiscal Year
Total Cash and Investments (including accrued interest) $61,590,749 $54,156,957
Total Net Position $61,562,470 $54,178,445
2)
Estimated Receipts - Employee Contributions $549,800
Estimated Receipts - All Other Sources
Investment Earnings $4,311,400
Municipal Contributions $1,859,212
3)
Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance N/A
Private Actuary - Lauterbach & Amen, LLP
Recommended Municipal Contribution $1,859,212
Statutory Municipal Contribution $1,482,234
THE VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2017
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, including accrued interest, of the fund at market value and the total net
position of the Pension Fund:
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:
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THE VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2017
4)
Current Preceding
Fiscal Year Fiscal Year
Net Income Received from Investment of Assets $7,601,179 $3,415,513
Assumed Investment Return
Illinois Department of Insurance N/A 6.75%
Private Actuary - Lauterbach & Amen, LLP 7.00% 7.00%
Actual Investment Return 13.13% 6.54%
5)
Illinois Department of Insurance N/A
Private Actuary - Lauterbach & Amen, LLP N/A
6)
Number of Active Members 56
7)
Total Amount
Number of Disbursed
(i) Regular Retirement Pension 30 $2,239,531
(ii) Disability Pension 4 $220,604
(iii) Survivors and Child Benefits 3 $75,689
Totals 37 $2,535,823
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:
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
The increase in employer pension contributions that results from the implementation of the provisions of
P.A. 93-0689:
The total number of active employees who are financially contributing to the fund:
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THE VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2017
8)
Current Preceding
Fiscal Year Fiscal Year
Illinois Department of Insurance N/A 78.05%
Private Actuary - Lauterbach & Amen, LLP 78.51% 76.74%
9)
Unfunded Liability:
Illinois Department of Insurance N/A
Private Actuary - Lauterbach & Amen, LLP $16,364,908
10)
Investment Policy - See Attached.
The funded ratio of the fund:
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.
Please see Notes Page attached.
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.
Adopted this ___________ day of __________, 2018
President __________________________________________________ Date ___________________
Secretary __________________________________________________ Date ___________________
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THE VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2017
1)
2)
3)
INDEX OF ASSUMPTIONS
Total Cash and Investments - as Reported at Market Value in the Audited Financial Statements for the Years
Ended December 31, 2017 and 2016.
Total Net Position - as Reported in the Audited Financial Statements for the Years Ended December 31,
2017 and 2016.
Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements for the Year
Ended December 31, 2017 plus 5.69% Increase (Actuarial Salary Increase Assumption) Rounded to the
Nearest $100.
Estimated Receipts - All Other Sources:
Investment Earnings - Cash and Investments as Reported in the Audited Financial Statements for the Year
Ended December 31, 2017, times 7% (Actuarial Investment Return Assumption) Rounded to the Nearest
$100.
Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance - No December 31, 2017 Actuarial Valuation available at the time of this
report.
Private Actuary - Lauterbach & Amen, LLP:
Recommended Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in the December 31, 2017
Actuarial Valuation.
Statutorily Required Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in the December 31,
2017 Actuarial Valuation.
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THE VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2017
4)
5)
6)
7) (i) Regular Retirement Pension - Illinois Department of Insurance Annual Statement for December 31, 2017
- Schedule P for Number of Participants and Expense page 1 for Total Amount Disbursed.
(ii) Disability Pension - Same as above.
(iii) Survivors and Child Benefits - Same as above.
INDEX OF ASSUMPTIONS - Continued
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, 2017 and 2016.
Assumed Investment Return:
Illinois Department of Insurance - Preceding Fiscal Year Interest Rate Assumption as Reported in the
December 31, 2016 Actuarial Valuation. No December 31, 2017 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, 2017 and 2016 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
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, 2017 -
Schedule P.
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THE VILLAGE OF BUFFALO GROVE, ILLINOIS
FIREFIGHTERS' PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2017
8)
9)
INDEX OF ASSUMPTIONS - Continued
The funded ratio of the fund:
Illinois Department of Insurance - Preceding Fiscal Year Net Present Assets as a percentage of Total Assets
as Reported in the December 31, 2016 Actuarial Valuation. No December 31, 2017 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, 2017 and December 31, 2016 Actuarial
Valuations.
Unfunded Liability:
Illinois Department of Insurance - Deferred Asset (Unfunded Accrued Liability) - No December 31, 2017
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, 2017 Actuarial Valuation.
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