2020 Police Annual ReportDECEMBER 31, 2020
THE VILLAGE OF BUFFALO GROVE,
ILLINOIS
POLICE PENSION FUND
PUBLIC ACT 95-0950
MUNICIPAL COMPLIANCE REPORT
FOR THE FISCAL YEAR ENDED
October 14, 2021
Members of the Pension Board of Trustees
Buffalo Grove Police Pension Fund
Buffalo Grove, Illinois
Enclosed please find a copy of your Municipal Compliance Report for the Buffalo Grove Police Pension
Fund for the fiscal year ended December 31, 2020. 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
$84,568,655 $76,959,387
$84,436,047 $76,818,720
2)
$694,800
$5,919,800
$3,394,077
3)
$5,918,000
$3,109,316
$3,394,077
$2,581,068
(b) Annual Requirement of the Fund as Determined by:
Estimated Receipts - All Other Sources
Estimated Receipts - Employee Contributions
Investment Earnings
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:
(a) Pay all Pensions and Other Obligations
THE VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2020
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:
Total Cash and Investments (including accrued interest)
Total Net Position
The estimated receipts during the next succeeding fiscal year from deductions from the salaries of
police officers and from other sources:
Illinois Department of Insurance
Private Actuary - Lauterbach & Amen, LLP
Recommended Municipal Contribution
Statutory Municipal Contribution
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THE VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2020
4)
Current Preceding
Fiscal Year Fiscal Year
$8,490,956 $13,151,798
6.50% 6.50%
7.00% 7.00%
10.51% 18.61%
5)
58
6)
Total Amount
Number of Disbursed
54 $4,320,665
1 $42,580
(iii) Survivors and Child Benefits 6 $309,386
Totals 61 $4,672,631
Net Income Received from Investment of Assets
Assumed 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:
Actual Investment Return
The total number of active employees who are financially contributing to the fund:
Number of Active Members
Illinois Department of Insurance
Private Actuary - Lauterbach & Amen, LLP
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:
(i) Regular Retirement Pension
(ii) Disability Pension
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THE VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2020
7)
Current Preceding
Fiscal Year Fiscal Year
68.62% 66.78%
69.60% 68.50%
8)
$35,761,649
$34,499,569
9) The investment policy of the Pension Board under the statutory investment restrictions imposed on the
fund.
Adopted this ___________ day of __________, 2021
President __________________________________________________ Date ___________________
Secretary __________________________________________________ Date ___________________
The funded ratio of the fund:
Illinois Department of Insurance
Private Actuary - Lauterbach & Amen, LLP
Illinois Department of Insurance
Private Actuary - Lauterbach & Amen, LLP
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.
Investment Policy - See Attached.
CERTIFICATION OF MUNICIPAL POLICE
PENSION FUND COMPLIANCE REPORT
The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded
liability:
Unfunded Liability:
Please see Notes Page attached.
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.
Page 3
1) Total Cash and Investments - as Reported at Market Value in the Audited Financial Statements for the
Years Ended December 31, 2020 and 2019.
Total Net Position - as Reported in the Audited Financial Statementsfor the Years Ended December 31,
2020 and 2019.
2) Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements for the
Year Ended December 31, 2020 plus 3.25% 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, 2020, 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, 2020.
3) (a) Pay all Pensions and Other Obligations - Total Non-Investment Deductions as Reported in the
Audited Financial Statements for the Year Ended December 31, 2020, plus a 25% Increase, Rounded to
the Nearest $100.
(b) Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance - Suggested Amount of Tax Levy as Reported in the December 31,
2020 Actuarial Valuation.
Private Actuary - Lauterbach & Amen, LLP:
Recommended Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in the
December 31, 2020 Actuarial Valuation.
Statutorily Required Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in the
December 31, 2020 Actuarial Valuation.
INDEX OF ASSUMPTIONS
THE VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2020
Page 1
INDEX OF ASSUMPTIONS
THE VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2020
4) 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, 2020 and
2019.
Assumed Investment Return:
Illinois Department of Insurance - Current and Preceding Fiscal Year Interest Rate Assumption as
Reported in the Years Ended December 31, 2020 and 2019 Actuarial Valuations.
Private Actuary - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the
Years Ended December 31, 2020 and 2019 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, 2020 and 2019.
5) Number of Active Members - Illinois Department of Insurance Annual Statement for December 31,
2020 - Schedule P.
6) (i) Regular Retirement Pension - Illinois Department of Insurance Annual Statement for December 31,
2020 - 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.
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INDEX OF ASSUMPTIONS
THE VILLAGE OF BUFFALO GROVE, ILLINOIS
POLICE PENSION FUND
Public Act 95-950 - Municipal Compliance Report
For the Fiscal Year Ending December 31, 2020
7) The funded ratio of the fund:
Illinois Department of Insurance - Current and Preceding Fiscal Year Net Present Assets as a
percentage of Total Assets as Reported in the December 31, 2020 and 2019 Actuarial Valuations.
Private Actuary - Current and Preceding Fiscal Year Net Present Assets as a percentage of Total
Assets as Reported in the December 31, 2020 and 2019 Actuarial Valuations.
8) Unfunded Liability:
Illinois Department of Insurance - Deferred Asset (Unfunded Accrued Liability) as Reported in the
December 31, 2020 Actuarial Valuation.
Private Actuary - Deferred Asset (Unfunded Accrued Liability) as Reported by Lauterbach &
Amen, LLP in the December 31, 2020 Actuarial Valuation.
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