Police Pension Packet 2008 05-13-08 Yorkville Police Pension Fund Board
804 Game Farm Road
Yorkville, Il 60560
(630) 553-4340
5:OOPM on May 13, 2008
Police Department Conference Room
A;3 &
Attachments:
Meeting Minutes for Feb 26, 2008
Monthly Treasurer's Report as of April 30, 2008
Annual Treasurer's Report for Fiscal Year May 1 , 2007 to April 30, 2008
Fiscal Year 2008-2009 Budget
IMRF Transfers to the Police Pension Fund Memo dated 4/18/08
Tax Issues relating to Early Distribution — Draft Procedures and Samples
------------------------------------------------------------------------------------------------------ ---------------------------
Meeting Call to Order:
Roll Call :
Previous Meeting Minutes: Feb 26, 2008 Corrections/Approval
Note: Transfer of Funds to MVT was increased from $,40Ae M $50,000 due to excess cash on hand.
$ N7 000
Communications :
Monthly Treasurer's Report: as of 4/30/2008
Motion to Approve:
Annual Treasurer's Report for Fiscal Year May 1, 2007 to April 30, 2008
Motion to Approve:
Real Estate Tax Levy checks
Aug 14, 2007 $12,505 .93 Sept 115 2007 $66,927.84
Nov. 13, 2007: $152,551 .62 Nov. 27, 2007: $31 .712.23
Jan. 08, 2008: $10,806. 12 Jan 22, 2008: 640 47
Total Levy Amount: $275, 144.21
Fiscal Year 2008-09 Budget
Bills for Payment:
MVT management fees: 4/1/08 to 6/30/08
From Schwab #3137-9036 $ 3069.00
Cary Collins: Attorney $ 600.00
Tiim Sharp: $ 1,300.00
Bill Powell: Bookkeeper $ 600.00
Total Bills $ 5,569.00
Motion to Approve:
Investments:
Progress Reports from Mitchell, Vaught, and Taylor
Money transfers from YNB to Charles Schwab & Co
Pay to: Charles Schwab & Co.
Mail to: Institutional Client Service Group
P. O. Box 628290
Orlando, F132862-9906
Unfinished Business:
Tax Issues relating to Early Distribution — Draft Procedures and Samples
IMRF Transfers to the Police Pension Fund Memo dated 2/26/08
Employee Service Date Resolution
Officer Pleckham to review personnel files
New Business:
Contract Award for Fiscal 2007-08 IDOI Filing
Andrew Houghton request for return of contributions
Creditable Service Buyback request for John F. Hunter
Letter from Attorney Richard Slocum regarding the pension of Terry Klingel
Deputy Treasurer Duites
Review of fiscal year 2007-08 Actuarial Valuation Report
Additional Business:
Use of IML's Historical Pension Data Tables
Pending Legislation: House Bills 1223 , 4603, 5158, 5197, 5692
2008 Meeting Dates: Tuesdays 2/12, 5/13, 8/12, 11/18 @ 5PM
Adjournment: Motion to Approve:
2008 Meeting Dates: Tuesdays 2/12, 5/13, 8/12, 11/18 @ 5PM file: Police%genda\agendaMay 13 2008.doe
Yorkville Police Pension Fund Board
804 Game Farm Road
Yorkville, I1 60560
(630) 553-4340
5:30PM on Feb 26, 2008
Police Department Conference Room
Meeting Minutes Approved: ! c 3I c; 1
Attachments:
Treasurer's Report as of Jan 31, 2008
Northern Trust Company collateralization letter dated Nov 13, 2007
Memo to Glen Calvert for adjusted service date.
Memo to Mitchell Vaught, and Taylor stating net fund assets over $2.5 million
IMRF Transfers to the Police Pension Fund Memo dated 2/26/08
Tax Issues relating to Early Distribution — Draft Procedure and Samples
----------------------------------------------------------------------------------------------------------------------------------
Meeting Call to Order: The meeting was called to order at 5 :48PM.
Roll Call: Present Officer Pleckham, Retiree Greg Sibenaller, Larry Debord, Attorney Cary Collins, William Powell,
and Susan Mika
Previous Meeting Minutes : The Nov 13, 2007 meeting minutes were reviewed.
A motion was made by Mr. Sibenaller (2"d Mr. Debord) to approve the minutes. Ayes — 3, Nays - 0
Communications: There were no additional communications.
Treasurer's Report: The Treasurer' s report dated Jan 31 , 2008 was submitted indicating the following funds:
YNB Cash: 87,510. 74
Schwab Cash: 92565233
Fixed Securities: 2, 186,608.51
Equities: 205,372. 13
Total Balance: 25572, 143 . 71
A motion was made by Mr. Debord (2'd Mr. Sibenaller) to accept the Jan 31 , 2008 Treasurer' s Report as
submitted. Ayes: 3 Nays: 0
A motion was made by Mr. Debord (2"d Mr. Sibenaller) keep a minimum balance of $40,000.00 in the
YNB checking account. Ayes — 3 , Nays — 0
A motion was made by Mr. Debord (2 d Officer Pleckham) to transfer $47,000. 00 to the Schwab account
3137-9036. Ayes: 3 Nays: 0
Bills for Payment:
MVT management fees: 1/1/08 to 3/31/08
From Schwab 43137-9036 $ 2,973 .00
Attorney Collins: $ 600.00
Bill Powell: $ 450.00
Total Bills $ 4023 .00
Motion to Approve: A motion was made by Mr. Debord (2nd Officer Pleckham) to approve the bills for payment.
Ayes — 3, Nays — 0
Investments:
Progress Reports from Mitchell, Vaught, and Taylor: The Feb 12, 2008 Quarterly report from Mitchell, Vaught,
and Taylor Inc. was reviewed. A motion was made by Mr. Debord (2°d Mr. Sibenaller) to accept the report
as submitted. Ayes — 3, Nays — 0
Money transfers from YNB to Charles Schwab & Co
Pay to: Charles Schwab & Co.
Mail to: Institutional Client Service Group
P. O. Box 628290
Orlando, Fl 32862-9906
Unfinished Business:
Glen Calvert: Service date calculation: Attorney Collins stated that he had talked with Scott Brandt of
IDOI and it was agreed to adjust Glen Calvert's service date as indicated in Attorney Collins' letter.
Service date adjustments due to Creditable IMRF buybacks or Creditable Service buybacks will be
reflected in future IDOI annual reports.
Officer Pleckham to review personnel files: Officer Pleckham stated that the review was in progress.
New Business:
Revised asset allocation based on net fund balance exceeding $2. 5 million (Letter attached): Now that
the balance has exceeded $2,500,000.00 equity investments may be increased up to 45%.
IMRF Transfers to the Police Pension Fund Memo dated 2/26/08 (Memo attached): A draft memo that reflects
IMRF and Service buybacks was discussed. It will be revised and resubmitted at the next meeting.
Tax Issues relating to Early Distribution — Draft Procedure and Samples (Memos attached): Draft documentation
for Early Distributions of Pension Funds was reviewed. Mr. Powell and Attorney Collins will revised the
documents and incorporate them into the Pension Board Rules and Procedures. It was also mentioned that 1099-
Mise forms should be issued.
Additional Business:
Fiscal Analysis of Illinois Pensions: No discussion.
Adjournment: Motion to Approve: A motion was made by Mr. Sibenaller (2"d Officer Pleckham) to
adjourn. Ayes — 3, Nays - 0
2008 Meeting Dates: Tuesdays 2/12, 5/13, 8/12, 11/18 @ 5PM file: Police\agenda lminutes Feb 262008.doc
United City of Yorkville
Z) ¢ 800 Game Frame Road -
Yorkville, Illinois 60560
M. �` — ` Baas Phone 630-553-1887
I William Powell
h =
Fax: 630-553-7575 Treasurer
4.E
Treasurer' s Report
(As of April 30, 2008)
Dollars Percent
Cash: YNB 49,449.37
Schwab 12, 179. 15
Total Cash: $ 61,628. 52 2.4%
Schwab:
Fixed Securities: 1 ,8522587.09 70.9%
Bonds: 20,656.72 0. 8%
Equities: 67766690 25 .9%
Total Assets: $ 25612,538. 50
2006 Tax Levy Estimate (paid in 2007) $275,000.00
Actual Payments: 8/14/07 12,505 .93
9/11/07 66,927. 84
11/13/07 152,551 .62
11/27/07 31 ,712.23
1/08/08 M806. 12
1/22/08 640.47
Total YTD 275, 144.21
Estimated monthly deposits: $ 13,000.00
Estimated monthly retiree payments: $ 9344.00
William Powell
Treasurer
United City of Yorkville File: T Report 043008.doe
United City of Yorkville
4 800 Game Farm Road
Yorkville Illinois 60560
Phone : 630-553-4350
Fax: 630-553 -7575 May 13, 2008
rty�i William Powell
Treasurer
To: Police Pension Board
City Council
United City of Yorkville
Subject: Annual Police Pension Fund Activity for Fiscal Year May 1 , 2007 to April 30, 2008
(As required by Illinois State Statue 40 ILCS 5/3 - 141)
Fiscal 2006-07 Fiscal 2007-2008 Fiscal 2008-09
_Actual Estimated Actual 4/30 Estimate
Balance as of May 1 : 1 ,5831046.69 N/A 2, 156, 872. 18 2,6121538. 50
Contributions:
Employees: 159,927.49 200,000.00 182,597.35 19000.00
IMRF Transfers 46, 172.00 0.00 0.00 0.00
Tax Levy: 2481987.74 275,000.00 275, 14421 300,000.00
Investment Income: 130 12821 150,000. 00 152,262.27 180,000,00
Total Contributions: 4551087.23 475,000.00 457,741 . 56 490,000.00
Expenses Paid: S Win, A y 1 ® vo , c.
Contribution Refunds 2202. 66 3688 . 57
Supplies: 0.00 100.00 13 . 75 100.00
Legal Fees: 1,200.00 3,600. 00 3000.00 2400. 00
Accounting /Minutes 860.00 17200.00 1692. 50 1800.00
Audit Fees: 0.00 2,000.00 3000.00 2200. 00
IDOI Filing Fees: 0.00 1 ,200.00 1000.00 2000. 00
Actuarial Fees: 0.00 1 ,500.00 1300. 00 1500.00
Investment Fees: 9104.00 .10,000.00 11 ,352. 00 15,000.00
IDOI Compliance Fees 225 .95 250.00 316. 60 400.00
Retirement Payments 0. 00 140 000.00 110 000.00 112 128 .00
Total Expenses 11 ,389.95 159,850.00 1541337. 51 41 216. 5 1411 z i b .T7
Fiscal Year End Balance: 2, 156,872. 18 2,6223022. 18 2,612,538. 50 2,961 ,321 . 93
Submitted by:
William Powell: United City of Yorkville Treasurer
Approved:
L. Debord: President D. Pleckham: Secretary
neat t3, fit; Rs AitteA 4 =o
Annual pension stmt F07-08.doc
United City of Yorkville
Police Pension Fund
Budget: Fiscal 2007-08 Actuals / Fiscal 08-09 Budget
Fiscal 04-06 Fiscal 05-06 Fiscal 06-07 Fiscal 07-08 Fiscal 08-09
Budget Item as of 04/30/05 as of 04/30/06 as of 04/30/08
Revenue Budget Actual Budget Actual Budget Actual Budget Actual Budget
Beginning Balance N/A 796339.38 N/A 1129794.33 N/A 1574459.32 N/A 22138,331 . 19 22612,538.50
Ending Balance N/A 17129,794.33 N/A 11574,459.32 N/A 21138,331 . 19 N/A 216122538.50
Tax Levy 207000.00 206231 .47 231686 231123.76 250000 248987.74 275000 2753144.21 3001000.00
Member Contributions 103000.00 121781 .25 128000 128761 .21 150000 1543442.45 2002000.00 1823597.35 190,000.00
IMRF 2006 Member Transfers 0 0 01 78874.39 0 46172 0 0 0
Expenditures
Supplies 100.00 0 100.00 0 100.00 0 100 13.75 100
Attorney Fees 2000.00 2000.00 2000.00 2000.00 2000.00 1200 3600 3000 2400
Accounting Fees / Minutes 800.00 1290.00 1200.00 1580 2500.00 860 1200 1692.5 1800
Audit Fees 0.00 385.00 1000.00 1001 . 15 1000.00 01 2000 3000 2200
IDOI Filling Fees 2500.00 0 1200 1000 2000
Actuarial Fees 1500.00 1300.00 1500.00 0 1500.00 D 1500 1300 1500
Investment Fees MVT 2972 5000.00 8266 10000 11 ,352.00 15,000.00
Pension Seminars 500.00 0.00 0.00 0 0.00 0.00 0 0 0 ► 0 a v e
Contribution Refunds 0.00 0.00 0.00 0 0.00 0.00 0 22,662.66 3688.57
Retirement Benefits 0.00 0.00 0.00 0 0.00 0.00 120,000.00 110,000.00 1125128.00
Disability Benefits 0.00 0.00 0.00 0 0.00 0.00 0 0 0
Spousal Benefits 0.00 0.00 0.00 0 0.00 0.001 0 0 0
Dependant Benefits 0.00 0.00 0.00 0 0.00 0.00 0 0 0
IDOI Annual Compliance Fee 103.57 103.57 120.00 159.26 150 225.95 250 316.60 400
Total Expenditures 5003.57 5078.571 5920.001 7712.41 14750.00 10551 .951 139850.00 154337.51 141216.57 iy A Lib .57
prepared by: William Powell
Approved: 5w i 3 1 G e
police/b u d g etf08-0 9.x l s
e ms tchell ,
Vaught 53 West Jackson Boulevard
Suite 905
_ Tavl o r Inc . Chicago, IL 60604
312-922-1717 (phone)
Investment Advisors 312-922-1772 (fax)
April 2, 2008
Statement for Second Quarter 2008
For Services Rendered
Yorkville Police Pension Fund
Attn: Larry DeBord
800 Game Farm Road
Yorkville, IL 60560
Investment Management Fees
Second Quarter 2008 April 1, 2008 through June 30, 2008
March 31 , 2008 Portfolio Value $ 2,569,814
First $2 million @ 0.50% $ 2 500
Next $3 million @ 0.40% $ 569
Total Fee for Second Quarter, 2008 $ 3,069
Account #3137-9036 at Charles Schwab & Co., Inc. has been charged $3,069. Charles Schwab & Co.,
Inc., as custodian, makes no independent verification of the calculation of the billing amount, which
is the client's responsibility.
Law Offices of Cary J. Collins, P. C. Invoice
2200 West Higgins Road Suite 155
Hoffman Estates, IL 60169 Date Invoice #
Telephone 847-519-0010 Fax 847-519-0016 3/14/2008 3716
Bill To
Yorkville Police Pension Board
Atten: Chief Harold Martin
804 Game Farm Road
Yorkville IL 60560
Terms
Due on receipt
Description Amount
Quarterly retainer for the months of: 600.00
APRIL, MAY AND JUNE, 2008
Total $600.00
Please make checks payable to the LAW OFFICES OF CARY J. COLLINS
Payments/Credits $0.00
Balance Due $600.00
Timothy W. Sharpe
Actuary
1816 Allen Drive
Geneva, Illinois 60134
(630) 262-0600
Fax (630) 262-0699
March 13, 2008
Chief Harold Martin
City of Yorkville Police
804 Game Farm Road
Yorkville, IL 60560
Re: Invoice for Services Rendered During December through March
Completion of May 1 , 2007 Actuarial Valuation for
the City of Yorkville Police Pension Fund;
Completion of Benefit Statements for Police Officers 1 3
Police Pension Accounting Services Log for Fiscal 2005-2006
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Agenda, Meeting Mintu s
Employee contributions, YNB Bank, Merrill Lynch data entry
Subject: Procedure for Early Distributions from the Police Pension Fund
A. proce d_ u=e:
The United City leave their funds in the
°fYorkville Police Pension Plan is a "Defined Benefit Plan
lan, or withdraw their
will issue a
Whenoffijan, transfer them tot another qualifiedp may
pension p decides to withdraw their contributons IRIS Form 4972 may
contributions. If they pension dollazs, be ordered
Form W�P will also be needed. Forms may (Note:
form 1099 R. As a total distribution of thee' p 1 -800-829-3676.
also apply Withholding IW-41 v or by calling _
from the IRS website at www. of and 2 should
forms found on the Gabon w h he IRSI Form 1099eR copies B,cannot
r quested
file formal documentation February
2nd IRS assistance may
be furnished to he 1 recipient
at Feb uary 438.
for completing specific information
Form 1099 R will be filled out according to the officer' s sp
taxable and nontaxable contributions, etc. When of their
E such as age, disability,department a letter will be written inform w 4P
c " decides to leave the dep pension plan. A form
Annuity Payments" will also be
taxable and nontaxable contributions to p
'°Withholdings Certificate for Pension end that the recipient
seek advice fr'° a t'
a check withdrawing Ins funds from the p
enclosed. The letter will recomm
consultant before requesting
plan.
B. SamSam l
Date:
officer John of Yorkville
Subject: stater Fundf Contributions to the United City
Polk
The statement below shows your contributions in the United City of
our resignation date of
or my not be a taxable
Yorkville Police Pension Fund as ° Y ay discuss your options on
Since withdrawal of funds maY>
------ 1 recommended that y °ll request any action.
event rt is strong Y
dispersal of funds with a tax consultant be ore Y required to complete and
our funds You are req if any,
If you chose to withdraw your withholding, f a 20%
ou do not submit form W-
submit the enclosed W-4P form indicating
from the amount of the check. c l TaxDeferred
of the amount Will be automatically withheld Taxed
Contributions Contribution$
$
IMIiF funds transferred: $ 36535 .93
$ 42,516.56
IMgF funds transferred in $
$
2006
Your portion of the IMRF $
transfer:
Transfer of Creditable $ $
Service Funds $
Fiscal Year $
Current Fiscal Year to $
Date $
f Total Contributions:
Please retain this letter for your records.
Treasurer: William Powell
United City of Yorkville
cc: Police Pension Board
Fiance Director
C : Sample Form 1099-R:
In the example below, Officer John, age 35, has resigned from the department. He
has taxable contributions to the plan of $25,000.00 and he is not disabled. After
consulting with a tax advisor he has decided not to have funds withheld for taxes
on Forme W-4P.
C o tC 201 S ea ,U Foal � CORRECTED if checkndl
PAYER'$ nnVttraet AdGess;city, soon. and ZIP.mde t Gauss distabutlop OMB No. 15J -0110 Distributions Florn.
joLkUtLLii Pensione, Annuities,
k $ e2.s c Goe w Retirement or
a t-( 6 A Ate£ lr y�,,,� i(7_ V 7 (6 Profit-Sharing
a Taira leb ;,mount . �v 8 Plans,. IRAs,
Insurance Y ert_ kU6Ll <
F.,s, i099-R Contraots; oto•
2b"I a%nbl9 omoum Total I COPY.B
nat detznnined [I 2lhhlbrdion Report this
PAYEn'S federal idemlficaom NEURE94 S iflaYifnatxrn 3 Caufld gain iincluaed 4 Fedssl I now ax income on your
number number In box 2a) wtlhhefd tedorat tun
OVTL+ ex %1'W ( reium.It this
3g` 3I.0 N13 $ form shows
RM. PIPMt 8 mmmc T .` otaq gOnnu federal income i0ns 8 NH oro5g4xad
30k withheld in
(_l:./l. 3"u 4k1� _ ee ni�iisPoth aPlployerri trl bskel,att2Ch
u' a neloyef, a-scu �tiea
i^ ,araM1Ca prCula:YS this copy to
' $ $ your return,
Street address Cndmliog ns, nn) 7`Distribution IRV a Dana,
4 Q- code(sl Iz\ sM�E This nform ation is
1 l 1 p $ e, tieing turn shed to
City, siaax,.and ZIP ccCe
ills h 1mi ml
Ba Youf PNCenlepe of 8h Tdbi erred:Cori tom Revenue Service.
oe .V-*tt��. :A-.L 6o (,s o dirtrltlutlsn % . $. .. .
ist Year otr!esig, Rath Conine. 1e Stak to lmthimso it S:m�,'PPYers VertErro. 12.State distribution
$
IS
Aracont narnbu (sm tsloicialat . 13 local taxes IneR i. Nacre of bcalliy . i5A cal dls¢ibua!on
Form 1099-n bgnaamem rn.Ne Teax ry - InNVnal geoen.Ie ceiel:z
Cl � Szz r-c'..nti � t'172 k 1a�t ai.s l.. uN. � - S� •4 '� { 5Cn1 �•i�T°,v '�
L pis0 too . ApP � Y '{ t—titC E1� r7n {Ttz�
file: Earlv Withdrawal of Funds Procedure.doc
April 18, 2008
Subject: Transfers to the Police Pension Fund
The tables below show the employees who have transferred dollars and service to the Pension
Fund. Transfer amounts, additional service months, and adjusted service dates are listed.
Creditable Service: IMRF Buybacks:
Total IMRF Service Act Adjusted
Date Pension Taxed Non-Taxed Total Mo' s Mos' Service Service
Name Received Fund $'s Portion Portion Cost Factor Service Credit Date Date
H. Martin 02/02/06 143973 .20 71429.02 7,544. 18 62,236. 00 .24 46 12 1 04/03/79 04/03/78
B . Groesch 02/02/06 16,381 . 17 7,417.38 85963 . 79 27,624. 00 .59 24 15 02/15/84 11/15/82
R. Diedereich 02/02/06 14,393 .08 6, 515 . 55 7,877. 53 12320.00 1 . 17 21 21 01/01/78 04/01/76
G. Calvert 02/02/06 33 , 126.94 14,995 . 88 18, 131 :06 44,630.00 . 74 41 31 07/13/87 2/13/82
31a3 ( c
Creditable Service: Buybacks from Other Pension Funds: '$a0 s e v
Total Act Adjusted
Date Pension Taxed Non-Taxed Total Credited Service Service
Name Received Fund $'s Portion Portion Cost Service Date Date
A. Jeleniewski 04/20/07 46, 172.00 46, 172.00 0. 00 46, 172.00 3yrs, Imo, 02/04/04 12/19/00
16 days
Andrew Jeleniewski Transfer of funds from Chicago Heights: $46, 172.00
Creditable service between 01/12/1998 and 2/28/2001 : 3 years 1 month, 16 days.
William Powell
file: IMRF transfers. doc
From: WM E POWELL <wpnkp8l @sbcglobal.net>
To: Molly City (Batterson) <mbatterson @yorkville.il.us>; Denise City(Kasper)
<dkasper @yorkville.il.us>
Cc: Harold City(Martin) <hmartin @yorkville.il.us>; Willaim Powell
<wpnkp8l @sbeglobal.net>; Susan City(Mika) <smika @yorkville.il.us>
Sent: Wednesday, March 19, 2008 11 :58:31 AM
Subject: Police Service Dates
Denise, Molly, I have a printout from Denise and from IDOI and have compared service
dates. ..
I have the following differences needing to be resolved, can you help. ..
IDOI City
Bledsoe: 4/17/06 4/18/06
S. Cernekee 6/24/03 6/23/03
Rob Hart 6/24/03 6/23/03
Jeleniewski 2/16/04 2/04/04
Note: Andy also has a buyback of 3yrs, 1 mo, and 16 day from Ch Heights which will
adjust his date
Others info that needs to be corrected. ..
Schwartzkop£ City shows 8/1/93 correct, IDOI needs to change
Martin: IMRF adjusted to 4/3/78, City needs to change
Groesch: IMRF adjusted to 11/15/82, City needs to change
Calvert: IMRF adjusted to 3/13/80, Both IDOI and City need to change
Diederich: IMRF adjusted to 4/1/76, Both IDOI and City need to change
Sibenaller: 9/15/78
Sorry for all the confusion but once we get this done we should be ok in the future..
Once this is all done I will update Tim Sharpe....
Bill
o
United City of Yorkville
EST. 1836 County Seat of Kendall County William Powell
�_. 800 Game Farm Road
a 1 W ti Treasurer
Yorkville, IL 60560
Phone: 630-553-4350, ext. 6008
/ALE % Fax: 630-553-7575
March 1 , 2008
Mr. Andrew Houghton
Subject: Statement of Contributions to the United City of Yorkville Police Pension Fund
The statement below shows the your contributions in the United City of Yorkville Police
Pension Fund as of your resignation. It is recommended that you discuss your options on
dispersal of fiends with a tax consultant before you request any action.
If you chose to withdraw your funds you are required to complete and submit the enclosed
W-4P form indicating tax withholding, if any, from the amount of the check. If you do not
submit form W-4P, 20% of the amount will be automatically withheld.
Employee Contributions ';
Taxed Tax Deferred
INIRF funds transferred on May 31 , 2002 203259.60 255, 106. 00
EVIRF funds transferred in 2006 36,357. 83 42,516. 56
You have contributed the following amounts:
Your portion of the MRIF transfer: 0.00 0.00
Fiscal Year 006-2007 224.31
Fiscal Year 2007-2008 3464.26
Total Employee Contributions: 0 00 3688.57'
As of Jan 31 , 2008 the value of the United City of Yorkville Police Pension fund was: $ 2,572, 143 . 71
Please retain this letter for your records.
William Powell
Treasurer
United City of Yorkville
0 e. S rl'AA-i .M 144
May 5, 2008
Subject: Deputy Treasurer Duties:
Data Collection and Reports: Responsibility
Treasurer Sr Acct Clk
Monthly:
Collaterialization Verification x
City:
Treasurer's Report x
Police:
Reconciliation of YNB and Schwab accounts x
Quarterly•
Police: X
Employee contribution spreadsheet entry x
Employee contribution letters X
Treasurer' s Report x
Annual
City:
Fiscal Year End Treasurer' s Report x
Police:
Salary Report as of4/30/XX HR
Personnel additions and subtractions for fiscal year HR
Includes Name,
Tax Levy collection dates and amounts X
Preparation of 1009-R's, 1099-Misc, x
Fiscal Year End Treasurer's Reports x
Police Pension Fund Budget x
Retiree Pension Increase HR
IDOI filing and Audit assistance as required x x
Close Fiscal Year's books x
As Re uired•
Elected Official's Bank Signature Approval Sheets x x
Bank issue resolution x x
Prepared by: William Powell
file: Deputy Treasurer Duties.xis
HISTORICAL PENSION DATA
TABLE 1 : Total Municipal Pension LeAes
Levy Total Total "'o Total Total Fire `0 Total Total for % of ToTA Total Fire Police
Year Tax Police Pension Pension Pension Police and Municipal Municipal Pension Pension
Levy (1 ) Pension T .cvv liar. T .cvv Lcvv Fire LCVICS Levy EAV in S I cvv as % Lew as %
Lcvy Police for Fin in S of EAV of EA\�
1998
1999
2000
2001
2002
2003
2004
20"05
2006
200 .
(1 ) Enure lc%,y including ponsion obligations and debt service
Vote: If you do not collect a separate levy for am°'all of these funds, please leave blank and note here
TABLE 2: Total Pension Contribution per Eligible Employee (2)
Levy Year Total Municipal x Police Pension Total I ;mplover "total Municipal 7, Disc pension 'Dotal hrnplover
Police Pension AeLive conhibuLion per Fire Pension Active contiburion per
Contribution Employees Active Police Contribution Employees Active Fire
Ent levee lit lovee
1998
1999
2000
7001
2002
2003
2004
2004
M06
2{J0
(2) i.:se pcusion contribution atnowits listed in CAFR
TABLE 3: Pension Systems Funded Ratios (3)
Uny Year Police Police Police Police Fire Fire Fire Fire Pension
Aettuirial Actuarial Unfiuided Pension Actuarial Acttutrial Unfunded Funded
Value of _�ccnted Pension Funded Value of Accrued Pension RatW
Pension Pension Liability Ratio* Pension Pension Liability
Assets Liability Assets Liability
1999
1999
2000
2001
2002
2003
2004
200?
2006
2007
(3) Utilize data Boot CAFR: R.cquared Supplemcntarr Infoanation — Schedule of Funding Progress
* most recent mmnbcr liotn cohunn cam be used ut 40' paragraph of sample press rctcasc
PROJECTED DATA
TABLE 4: Projected Future Data - IVlimmum of 5 Years (Further if Possible)
Lain Total Toth % Totat Total `%& Total T'otm 90 of Total Total Estimated Estimated
Year Fstimated I?stimated Ivstitnated t:Stimated Fstimated listimates Iistimated I`stimated Fire Police
Tax Lcvy Police Pension Fire Pension for Police 1tlunicipal Municipal Pension Pension
(4) Pension Levy for Pension Levv for and Fire Lcvv EA?- Lcvv as "N Lcvv as 90
Le vv Police Levv Fire Levies in $ of EAV* of EAV*
2005
2009
.010
2011
2012
2013
2014
2015
2016
2017
(4) Entire letg including pension obligations and debt service In addition to °n of VA V, pension levy ns 116 of each payroll can ha aced
n
Actuary
CITY OF YORKVILLE
YORKVILLE POLICE PENSION FUND
Actuarial Valuation Report
For the Year
Beginning May 1, 2007
And Ending April 30, 2008
Timothy W. Sharpe, Actuary, Geneva, IL (630) 262-0600
TABLE OF CONTENTS
Page
Introduction 3
Summary of Results 4
Actuarial Valuation of Assets b
Asset Changes During Prior Year 7
Normal Cost 8
Accrued Liability 9
Tax Levy Requirement 10
Summary of Plan Participants 11
Duration 12
Projected Pension Payments 12
Summary of Plan Provisions 13
Actuarial Method 14
Actuarial Assumptions 15
GASB Statements No. 25 & 27 Disclosure 16
INTRODUCTION
Police-sworn personnel of the City of Yorkville are covered by the Police Pension Plan that is a
defined-benefit, single-employer pension plan. The purpose of this report is to disclose the Tax
Levy Requirement and GASB Statements No. 25 &27 financial information and related actuarial
information for the year beginning May 1,2007, and ending April 30, 2008.
The valuation results reported herein are based on plan provisions in effect as of May 1, 2007,
the employee data furnished by the City,the financial data provided by the Fund's trustee and the
actuarial methods and assumptions described later in this report. I hereby certify that this report
is complete and accurate and fairly presents the actuarial position of the Fund as of April 30,
2007, in accordance with generally accepted actuarial principles and procedures. In my opinion,
the assumptions used are reasonably related to the experience of the Plan and to reasonable
expectations.
Respectfully submitted,
Timothy W. Sharpe,EA, MAAA
Enrolled Actuary No. 05-4384
�j /6'j-
Date
-3-
SUMMARY OF RESULTS
There were no changes with respect to Plan Provisions, Actuarial Methods or Actuarial
Assumptions from the prior year.
There were no unexpected changes with respect to the participants included in this actuarial
valuation (5 new members, 1 termination, 0 retirements, 0 incidents of disability, annual payroll
increase 21 .4%, average salary increase 9.3%). .
There were no unexpected changes with respect to the Fund's investments from the prior year
(annual investment return 7.21 %).
The City's Tax Levy Requirement has increased from $339,660 last year to $381 ,800 this year
(12.4%). The increase in the Tax Levy is due to the increase in the annual payroll. The Percent
Funded has increased from 31 .5% last year to 37.7% this year.
-4-
SUMMARY OF RESULTS (Continued)
For Year Ending
April 30
2008 2007
Tax Levy Requirement $ 381,800 $ 339,660
as of
May 1
2007 2006
City Normal Cost 183,146 154,656
Anticipated Employee Contributions 155,967 128,508
Accrued Liability 5,728,722 5,031,506
Actuarial Value of Assets 2,156,872 1,583,047
Unfunded Accrued Liability/(Surplus) 3,571,850 3,448,459
Amortization of Unfunded 172,017 161,307
Accrued Liability/(Surplus)
Percent Funded 37.7% 31.5%
Annual Payroll $ 1,573,832 $ 1,296,753
TAX LEVY REQUIREMENT
as of April 30
$500
$400
■2008
$300 ❑2007
$200
$100
ba
-5-
ACTUARIAL VALUATION OF ASSETS
as of
May 1
2007 2006
Money Market,NOW, IL Fund $ 146,231 $ 186,634
Government Securities 1,772,980 1,237,825
Mutual Funds 219,120 145,624
Interest Receivable 18,541 12,964
Actuarial Value of Assets $ 22.156.8. 2$ 2 $ LiULM
SUMMARY OF ASSETS
As Of May 1, 2007
10,2%
6.8%
Money Market,NOW,IL Fund
Government Securities
❑ Mutual Funds
82.9%
-6-
ASSET CHANGES DURING PRIOR YEAR
Trust Balance as of May 1, 2006 $ 1,583,047
Contributions
City 248,988
Employee 206,099
Total 455,087
Payments
Benefit Payments 0
Expenses 11,390
Total 11,390
Investment Income 130,128
Trust Balance as of May 1, 2007 $ 2 15 2
Approximate Annual Rate of Return 7.21%
ASSET CHANGES DURING PRIOR YEAR
$2,500
$2,000 Trust Balance as of May 1,2006
w Contributions
m $1,600 Payments
❑Investment Income
F0 $1,000 0 Trust Balance as of May 1,2007
$600
$0
-7-
NORMAL COST
The Normal Cost is the actuarial present value of the portion of the projected benefits that are
expected to accrue during the year based upon the actuarial valuation method and actuarial
assumptions employed in the valuation.
as of
May 1
2007 2006
Total Normal Cost $ 339,113 $ 283,164
Anticipated Employee Contributions 155,967 128,508
City Normal Cost 183.146 56
Normal Cost Payroll $ 1,573,832 $ 1,296,753
City Normal Cost Rate 11.64% 11.93%
Total Normal Cost Rate 21.55% 21.84%
NORMALCOST
As Of May 1, 2007
540%
CityNorma Employee Contributions
City Normal Cost
46.0%
-8-
ACCRUED 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 actuarial
assumptions employed in the valuation. The Unfunded Accrued Liability is the excess of the
Accrued Liability over the Actuarial Value of Assets.
as of
May 1
Accrued Liability 2007 2006
Active Employees $ 5,728,722 $ 5,031,506
Children Annuities 0 0
Disability Annuities 0
Retirement Annuities 0 0
Surviving Spouse Annuities 0 0
Terminated Vested Annuities 0 0
Total Annuities 0 0
Total Accrued Liability 5,728,722 5,031,506
Actuarial Value of Assets 2,156,872 1,583,047
Unfunded Accrued Liability/(Surplus) $ 571 850 $ 44
Percent Funded 37.7% 31.5%
ACCRUED LIABILITY
As Of May 1, 2007
$T
$6
$6 Total Accrued Liability
o $4 Actuarial Value of Assets
$y Unfunded Accrued Liabilityl(Surplus)
$2
$1
$O
U -9-
TAX LEVY REQUIREMENT
The Tax Levy Requirement is determined as the annual contribution necessary to fund the
normal cost,plus the amount to amortize the unfunded accrued liability as a level percentage of
payroll over a forty(40)year period which commenced in 2007,plus an adjustment for interest.
For Year Ending
April 30
2008 2007
City Normal Cost as of Beginning of Year $ 183,146 $ 154,656
Amortization of Unfunded 172,017 161,307
Accrued Liability/(Surplus)
Interest for One Year 26,637 23,697
Tax Levy Requirement as of End of Year $ 8383 $ 33
TAX LEVY REQUIREMENT
For Fiscal Year Ending April 30, 2008
48.4%
WO ®City Normal Cost
❑Amortization of UAL/(S)
51.6%
_10_
SUMMARY OF PLAN PARTICIPANTS
The actuarial valuation of the Plan is based upon the employee data furnished by the City. The
information provided for Active participants included:
Name
Sex
Date of Birth
Date of Hire
Compensation
Employee Contributions
The information provided for Inactive participants included:
Name
Sex
Date of Birth
Date of Pension Commencement
Monthly Pension Benefit
Form of Payment
Membership 2007 2007 2006 2006
Current Employees
Vested 12 11
Nonvested 16 13
Total 2$ 24
Inactive Participants Annual Benefits Annual Benefits
Children 0 $ 0 0 $ 0
Disabled Employees 0 0 0 0
Retired Employees 0 0 0 0
Surviving Spouses 0 0 0 0
Terminated Vesteds 0 0 0 0
Total Q Q Q Q
Annual Payroll $ 1 ,573,832 $ 1 ,2969753
- 11 -
SUMMARY OF PLAN PARTICIPANTS (Continued)
Age and Service Distribution
Service 0-4 5-9 10-14 15-19 20-24 25-29 30+ Total Salary
Age
20-24 4 4 41,830
25-29 7 1 8 49,215
30-34 1 2 3 56,015
35-39 4 4 62,457
40-44 1 1 2 56,988
45-49 1 1 2 61,810
50-54 1 1 1 1 1 5 71,465
55-59
60+
Total L 3- 4 2 2 1 28 $
Salary 47,474 59,117 64,907 57,863 80,781 65,118
Average Age: 35.5 Average Service: 9.0
DURATION (years) Active Members: 16.6 Retired Members: NA All Members: 16.6
PROJECTED PENSION PAYMENTS
2008 2009 2010 2011 2012
$150,023 $200,746 $200,746 $246,167 $246,167
PROJECTED PENSION PAYMENTS
2008-2012
$300 /
2008
§250
/ 2009
$200 �� 2010
$150 / n 2011
t $100 ■2012
r
$50
$0
-12-
SUMMARY OF PLAN PROVISIONS
The Plan Provisions have not been changed from the prior year.
The City of Yorkville Police Pension Fund was created and is administered as prescribed by
"Article 3 . Police Pension Fund - Municipalities 500,000 and Under" of the Illinois Pension
Code (Illinois Compiled Statutes, 1992, Chapter 40). A brief summary of the plan provisions is
provided below.
Employees attaining the age of (50) or more with (20) or more years of creditable service are
entitled to receive an annual retirement benefit of (2.5%) of final salary for each year of service
up to (30) years, to a maximum of (75%) of such salary.
Employees with at least (8) years but less than (20) years of credited service may retire at or after
age (60) and receive a reduced benefit of (2.5%) of final salary for each year of service.
Surviving spouses receive the greater of (50%) of final salary or the employee's retirement
benefit.
Employees disabled in the line of duty receive (65%) of final salary.
The monthly pension of a covered employee who retired with (20) or more years of service after
January 1 , 1977, shall be increased annually, following the first anniversary date of retirement
and be paid upon reaching the age of at least (55) years, by (3%) of the originally granted
pension. Beginning with increases granted on or after July 1 , 1993, the second and subsequent
automatic annual increases shall be calculated as (3%) of the amount of the pension payable at
the time of the increase.
Employees are required to contribute (9.91 %) of their base salary to the Police Pension Plan. If
an employee leaves covered employment with less than (20) years of service, accumulated
employee contributions may be refunded without accumulated interest.
- 13-
ACTUARIAL METHODS
The Actuarial Methods used for determining the Tax Levy and GASB Statements No. 25 & 27
financial disclosure have not been changed from the prior year. The Actuarial Method employed
for this valuation is as follows:
EntryAge Normal Cost Method
Under the Entry Age Normal Cost Method the Normal Cost for each participant is computed as
the level percentage of pay which, if paid from the earliest age the participant is eligible to enter
the plan until retirement or termination, will accumulate with interest to sufficiently fund all
benefits under the plan. The Normal Cost for the plan is determined as the sum of the Normal
Costs for all active participants.
The Accrued Liability is the theoretical amount that would have accumulated had annual
contributions equal to the Normal Cost been paid. The Unfunded Accrued Liability is the excess
of the Accrued Liability over the plan's assets. Experience gains or losses adjust the Unfunded
Accrued Liability.
- 14-
ACTUARIAL ASSUMPTIONS
The Actuarial Assumptions used for determining the Tax Levy Requirement and GASB
Statements No. 25 & 27 Disclosure Information are the same and have not been changed from
the prior year. The Actuarial Assumptions employed for this valuation are as follows:
Valuation Date May 1 , 2007
Asset Valuation Method Market Value
Investment Return 7.50%
Salary Scale 5.50%
Mortality 1971 Group Annuity Mortality Table
Withdrawal State of Illinois DOI Experience Rates
Disability State of Illinois DOI Experience Rates
Retirement State of Illinois DOI Experience Rates ( 100% by Age 62)
Marital Status 80% Married, Spouse Same Age
Plan Expenses None
Sample Annual Rates Per 100 Participants
Age Mortali Withdrawal Disability Retirement
20 0.05 6.00 0.07
30 0.81 5. 10 0. 10
40 0. 16 2.85 0.20
50 0.53 0.52 20.00
60 1 .31 0.60 83 .33
62 1 .59 100.00
- 15-
STATEMENTS NO. 25 & 27 DISCLOSURE INFORMATION
The Governmental Accounting Standards Board (GASB) issued Statements No. 25 & 27 that
established generally accepted accounting principles for the annual financial statements for
defined benefit pension plans. The required information is as follows:
Membership in the plan consisted of the following as of:
April 30, 2007 April 30, 2006
Retirees and beneficiaries 0 0
receiving benefits
Terminated plan members entitled 0 0
to but not yet receiving benefits
Active vested plan members 12 11
Active nonvested plan members 16 13
Total 2$ 24
Number of participating employers 1 1
SCHEDULE OF FUNDING PROGRESS
UAALasa
Actuarial Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability (AAL) AAL Funded Covered of Covered
Valuation Assets -Entry Age (UAAL) Ratio Payroll Payroll
Date (a) O (b=a) (a/b) Lcj b-a /c
04/30/03 517,894 3,4185034 2,900, 140 15.2% 789, 173 367.5%
04/30/06 1 ,583,047 5,031 ,506 3 ,448,459 31 .5% 13296,753 265 .9%
04/30/07 251565872 5,728,722 3,5711850 37.7% 1 ,573,832 227.0%
- 16-
GASB STATEMENTS NO. 25 & 27 DISCLOSURE INFORMATION (Continued)
ANNUAL PENSION COST AND NET PENSION OBLIGATION
April 30, 2007 April 30, 2006
Annual required contribution 231 ,960 231 ,960
Interest on net pension obligation 63 0
Adjustment to annual required contribution (32) 0
Annual pension cost 231 ,991 231 ,960
Contributions made 248,988 231 I24
Increase (decrease) in net pension obligation (16,997) 836
Net pension obligation beginning of year 836 0
Net pension obligation end of year (16, 1611 836
THREE-YEAR TREND INFORMATION
Fiscal Annual Percentage Net
Year Pension of APC Pension
Ending Cost (APC) Contributed Obligation
04/30/03 117,713 100.0% 0
04/30/06 2315960 99.6% 836
04/30/07 231 ,991 107.3% (16, 161)
-17-
GASB STATEMENTS NO. 25 & 27 DISCLOSURE INFORMATION (Continued)
FUNDING POLICY AND ANNUAL PENSION COST
Contribution rates:
City 15 .82% 17.82%
Plan members 9.91 % Same
Annual pension cost 231 ,991 231 ,960
Contributions made 248,988 231 , 124
Actuarial valuation date 04/30/2007 04/30/2006
Actuarial cost method Entry age Same
Amortization period Level percentage of pay, closed Same
Remaining amortization period 36 years 37 years
Asset valuation method Market Same
Actuarial assumptions:
Investment rate of return* 7.50% Same
Projected salary increases* 5 .50% Same
*Includes inflation at 3 .00% Same
Cost-of-living adjustments 3 .00% per year Same
18