Police Pension Fund Packet 2006 12-12-06 YORKVILLE POLICE PENSION FUND BOARD
804 Game Farm Road
Yorkville, IL 60560
(630) 553-4340
AGENDA
5:00 p.m. on Tuesday, December 12, 2006
Police Department Conference Room
Meeting Call to Order:
Roll Call:
Previous Meeting Minutes: Corrections/Approval:
November 14, 2005
August 8, 2006
Communications:
Treasurer's Report:
Employee Contributions as of October 31, 2006
Bills for Payment:
Quarterly Portfolio Review
Unfinished Business:
Status of IDOI Fiscal Year 2005 filing
Status of Actuarial Study by Tim Sharp
Pension Application for Kolowksi, Goldsmith, and Bledsoe
New Business:
Discussion of Employment for Minute Taker
2007 Meeting Dates: 2/13, 5/8, 8/14, 11/13 and times
Preapproval of Transfer of Funds from Old Second Bank to Mitchel, Vought, and Taylor
Additional Business:
Adjournment:
Next Meeting:
United City of Yorkville
800 Game Frame Road
Yorkville,Illinois 60560
EST. -� 1835 Phone 630-553-1887 William Powell
Fax: 630-553-7575 Treasurer
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Treasurer's Report
(As of Nov 31, 2006)
Dollars Percent
Cash: YNB 304,000.71
Schwab 23 184.89
Total Cash: $ 327,185.60 16.4 %
Schwab:
Fixed Securities: 1,497,502.86 75.0 %
Equities: 171,167.98 8.6 %
Total Assets: $ 1,995,856.44
Emvlovee Contributions YTD: $ 90,025.58
2006 Tax Levy: $ 250,000.00
kl"dOL-- � ell
William Powell
Treasurer
United City of Yorkville File:T Report 113106.doc
Police Pension Contributions
2001(1) 2002 2003 2004 2005 2006 2007
IDOI 0 198017 207006 259540 288729 NA NA
COY Budget 0 184453 207000 231686 250000 275000
COY Actual 58320 117713 183411 206231 231124
Acummulated
IDOI 0 198017 405023 664563 953292
Budget 0 0 184453 391453 623139 953292 953292
Actual 58320 176033 359444 565675 796799
Short Fall -58320 21984 45579 98888 156493
(1) figures not known
file: police pension contrib's.xls 11/7/2006
W. Powell
YORKVILLE POLICE PENSION FUND
VALUATION BALANCE SHEET
12/01/2006 04:30:44
SHOWING ASSETS AND LIABILITIES OF THE FUND IN
ACCORDANCE WITH ACTUARIAL RESERVE REQUIREMENTS
AS OF APRIL 30, 2006
NET PRESENT ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,623,576
DEFERRED ASSET (UNFUNDED ACCRUED LIABILITY) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,423,089
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,046,665
LIABILITIES
RESERVES FOR ANNUITIES AND BENEFITS IN FORCE
PRESENT VALUE OF -
SERVICE RETIREMENT ANNUITIES. . . . . . . . . . 0 INDIVIDUALS $ 0
DISABILITY ANNUITIES. . . . . . . . . . . . . . . . . . 0 INDIVIDUALS 0
WIDOWS AND PARENTS ANNUITIES. . . . . . . . . . . 0 INDIVIDUALS 0
CHILDRENS ANNUITIES. . . . . . . . . . . . . . . . . . . . 0 INDIVIDUALS 0
DEFERRED ANNUITIES. . . . . . . . . . . . . . . . . . . . . 0 INDIVIDUALS 0
HANDICAPPED ANNUITIES. . . . . . . . . . . . . . . . . . 0 INDIVIDUALS 0
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0
ACCRUED LIABILITIES FOR ACTIVE PARTICIPANTS. . . . . . . . . . . . . 24 INDIVIDUALS $ 5,046,665
SURPLUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
TOTAL LIABILITIES AND SURPLUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,046,665
THIS REPORT IS PROVIDED TO YOU AS PART OF THE PUBLIC PENSION DIVISION
ADVISORY SERVICES UNDER SECTION 1A-106 OF THE ILLINOIS PENSION CODE.
SCOTT J. BRANDT
STATISTICAL SERVICES, PUBLIC PENSION DIVISION
ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
DIVISION OF INSURANCE
FUND NO: 3335 BID NO: 20060402
YORKVILLE POLICE PENSION FUND
ACTUARIALLY DETERMINED TAX LEVY
12/01/2006 04:30:44
ACTUARIALLY DETERMINED AMOUNT TO PROVIDE THE EMPLOYER
NORMAL COST BASED ON THE ANNUAL PAYROLL OF ACTIVE
PARTICIPANTS AS OF APRIL 30, 2006. $ 195,877
PERCENT OF EMPLOYER NORMAL COSTS TO TOTAL ANNUAL
SALARIES OF $ 1,296,753 IS 15.100%.
PERCENT OF TOTAL NORMAL COSTS TO TOTAL ANNUAL
SALARIES OF $ 1,296,753 IS 25.010*.
AMOUNT NECESSARY TO AMORTIZE THE UNFUNDED ACCRUED
LIABILITY OF $ 3,423,089 AS DETERMINED
BY THE STATE OF ILLINOIS DEPARTMENT OF FINANCIAL AND
PROFESSIONAL REGULATION OVER THE REMAINING 36.0000
YEARS AS CONTEMPLATED BY SECTION 3-127 OF THE ILLINOIS
PENSION CODE. 122,148
CREDIT FOR SURPLUS 0
TOTAL SUGGESTED AMOUNT OF TAX LEVY TO ARRIVE AT
THE ANNUAL REQUIREMENTS OF THE FUND AS CONTEMPLATED
BY SECTION 3-125 OF THE ILLINOIS PENSION CODE. *$ 318,025
*THE ABOVE FIGURE IS THE SUGGESTED AMOUNT WHICH SHOULD BE OBTAINED BY
THE FUND FROM THE MUNICIPALITY EXCLUSIVE OF ANY OTHER ITEMS OF INCOME,
SUCH AS, INTEREST ON INVESTMENTS, CONTRIBUTIONS FROM PARTICIPANTS, ETC.
THESE ITEMS HAVE ALREADY BEEN TAKEN INTO CONSIDERATION IN ARRIVING AT
THIS AMOUNT.
ACTUARIAL INFORMATION
FUNDING METHOD USED ENTRY AGE NORMAL COST
AMORTIZATION METHOD USED LEVEL PERCENTAGE OF PAYROLL
IN ACCORDANCE WITH SEC 3-127
OF THE IL PENSION CODE.
INTEREST RATE ASSUMPTION 7.0t
MORTALITY RATE ASSUMPTION 1971 GROUP ANNUITY
DECREMENT ASSUMPTION OTHER THAN MORTALITY EXPERIENCE TABLES
SALARY PROGRESSION ASSUMPTION 5.5%
STATUS OF SOCIAL SECURITY IN ASSUMPTION NONE
THE ATTAINED AGE AT TIME OF DISABILITY OR RETIREMENT, SEX, ANNUAL
SALARY OR PENSION, AND COMPLETED YEARS OF SERVICE OF EACH INDIVIDUAL
PARTICIPANT AS OF THE DATE OF THE VALUATION BALANCE SHEET IS USED IN
CALCULATING THE LIABILITIES OF THE FUND. THE ACTUARIAL ASSUMPTIONS
USED IN DETERMINING THE ABOVE AMOUNTS ARE BASED ON ALL OF THE ARTICLE
3 FUNDS IN THE STATE OF ILLINOIS IN AGGREGATE, NOT ON EACH FUND
INDIVIDUALLY. THE FUND SPECIFIC INFORMATION USED IN THE PRODUCTION OF
THIS DOCUMENT WAS PROVIDED TO THE ILLINOIS DEPARTMENT OF FINANCIAL AND
PROFESSIONAL REGULATION BY YOUR PENSION FUND BOARD OF TRUSTEES THROUGH
THE FUND'S ANNUAL STATEMENT FILING.
FUND NO: 3335 BID NO: 20060402
YORKVILLE POLICE PENSION FUND
ACTUARIALLY DETERMINED TAX LEVY
12/01/2006 04:30:44
ACTUARIALLY DETERMINED AMOUNT TO PROVIDE THE EMPLOYER
NORMAL COST BASED ON THE ANNUAL PAYROLL OF ACTIVE
PARTICIPANTS AS OF APRIL 30, 2006. $ 195,877
PERCENT OF EMPLOYER NORMAL COSTS TO TOTAL ANNUAL
SALARIES OF $ 1,296,753 IS 15.100°%.
PERCENT OF TOTAL NORMAL COSTS TO TOTAL ANNUAL
SALARIES OF $ 1,296,753 IS 25.010%.
AMOUNT NECESSARY TO AMORTIZE THE UNFUNDED ACCRUED
LIABILITY OF $ 3,423,089 AS DETERMINED
BY THE STATE OF ILLINOIS DEPARTMENT OF FINANCIAL AND
PROFESSIONAL REGULATION OVER THE REMAINING 36.0000
YEARS AS CONTEMPLATED BY SECTION 3-127 OF THE ILLINOIS
PENSION CODE. 122,148
CREDIT FOR SURPLUS 0
TOTAL SUGGESTED AMOUNT OF TAX LEVY TO ARRIVE AT
THE ANNUAL REQUIREMENTS OF THE FUND AS CONTEMPLATED
BY SECTION 3-125 OF THE ILLINOIS PENSION CODE. *$ 318,025
*THE ABOVE FIGURE IS THE SUGGESTED AMOUNT WHICH SHOULD BE OBTAINED BY
THE FUND FROM THE MUNICIPALITY EXCLUSIVE OF ANY OTHER ITEMS OF INCOME,
SUCH AS, INTEREST ON INVESTMENTS, CONTRIBUTIONS FROM PARTICIPANTS, ETC.
THESE ITEMS HAVE ALREADY BEEN TAKEN INTO CONSIDERATION IN ARRIVING AT
THIS AMOUNT.
ACTUARIAL INFORMATION
FUNDING METHOD USED ENTRY AGE NORMAL COST
AMORTIZATION METHOD USED LEVEL PERCENTAGE OF PAYROLL
IN ACCORDANCE WITH SEC 3-127
OF THE IL PENSION CODE.
INTEREST RATE ASSUMPTION 7.0°%
MORTALITY RATE ASSUMPTION 1971 GROUP ANNUITY
DECREMENT ASSUMPTION OTHER THAN MORTALITY EXPERIENCE TABLES
SALARY PROGRESSION ASSUMPTION 5.5%
STATUS OF SOCIAL SECURITY IN ASSUMPTION NONE
THE ATTAINED AGE AT TIME OF DISABILITY OR RETIREMENT, SEX, ANNUAL
SALARY OR PENSION, AND COMPLETED YEARS OF SERVICE OF EACH INDIVIDUAL
PARTICIPANT AS OF THE DATE OF THE VALUATION BALANCE SHEET IS USED IN
CALCULATING THE LIABILITIES OF THE FUND. THE ACTUARIAL ASSUMPTIONS
USED IN DETERMINING THE ABOVE AMOUNTS ARE BASED ON ALL OF THE ARTICLE
3 FUNDS IN THE STATE OF ILLINOIS IN AGGREGATE, NOT ON EACH FUND
INDIVIDUALLY. THE FUND SPECIFIC INFORMATION USED IN THE PRODUCTION OF
THIS DOCUMENT WAS PROVIDED TO THE ILLINOIS DEPARTMENT OF FINANCIAL AND
PROFESSIONAL REGULATION BY YOUR PENSION FUND BOARD OF TRUSTEES THROUGH
THE FUND'S ANNUAL STATEMENT FILING.
FUND NO: 3335 BID NO: 20060402
From:Tim Sharpe To:Harold Martin Date:12/8/2006 Time:12:17:08 PM Page 1 of 5
DEC x Y zoos
Actuary
To: Harold Martin From : Tim Sharpe
Company : City of Yorkville Police Voice : 630-262-0600
Fax Number : 5531141 Fax Number : 630-262-0699
Subject
Pages including cover page: 5 Time : 12:15:16 PM Date : 12/8/2006
MESSAGE
WinFax PRO Cover Page
From:Tim Sharpe To.Harold Martin Date:12/8/2006 Time.12:17:08 PM Page 2 of 5
FACSIMILE#: (630) 553-1141
Number of pages(including this page): 4
/4 CfU�!
To: Chief Harold Martin
Comments:
Re: Police Pension Fund
Chief:
Attached are the 511106 preliminary actuarial results,the investment performance summary, and
the salary history for the Police Pension Fund. Recall the last actuarial valuation was completed
3 years ago(2003). During the 3 years,the Fund has increased$1M. Salaries increased more
than expected, and there are seven more active members. The Tax Levy has increased
significantly(due to the added positions and the salary increases)and the Percent Funded has
also increased.
Highlights
1. Investment return 2.04%.
2. Annual payroll increase: 64.3%;average increase: 24.8%.
3. New members: 7;Terminations 0;Retirements 0;Incidents of Disability 0.
4. Tax Levy has increased from 231,960 to 339,660 (46.4%).
5. Percent Funded has increased from 15.2%to 31.5%.
As Always,
T. Sharpe
Timothy W. Sharpe,Actuary, Geneva, IL(630) 262-0600
From:Tim Sharpe To:Harold Martin Date:1218!2006 Time.12.17:08 PM Page 3 of 5
December 7,2006
CITY OF YORKVILLE
Actuarial Valuation Results
POLICE 5/1/03 5/1/06
Int: 7.5% Int: 7.5% Int: 7.0% Int: 7.5%
Sal: 5.5% Sal: 5.5% Sal: 5.5% Sal: 5.0%
1. City Normal Cost 90,510 154,656 190,357 135,450
2. Accrued Liability 3,418,034 5,031,506 5,424,388 4,910,544
3. Assets 517,894 1,583,047 1,583,047 1,583,047
4. Unfunded Liability/(Surplus) 2,900,140 3,448,459 3,841,341 3,327,497
5. Amortization of UL 125,267 161,307 169,904 164,563
6. Interest for One Year 16,183 23,697 25,218 22,501
7. Tax Levy Requirement 20 aa2-O-Q 222.2A
(1+5+6)
8. Payroll 789,173 1,296,753 1,296,753 1,296,753
9. Percent Funded(3/2) 15.2% 31.5% 29.2% 32.2%
Timothy W. Sharpe,Actuary, Geneva, IL(630) 262-0600
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IL December 7,2006
CITY OF YORKVILLE
Police Pension Fund
Investment Performance 2003-2006
FYE 03 FYE 04 FYE 05 FYE 0
BOY Assets 58,320 1,129,77
City Contribution 117,713 231,124
Officer Contribution 357,026 202,45
a
Pension Payments 17,075
m
Expenses 680 7,71
Income 2,590 27,39
OY Assets 517,894 1,583,04
N Annual Yield 0.90°: 2.04°i
m
-Year Yield 1.47°i
° (2003-06)
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From:Tim Sharpe To:Harold Martin Date:12/8/2006 Time:12:17:08 PM Page 5 of 5
CITY OF YORKVILLE POLICE PENSION FUND SALARY HISTORY
Name 2003 Salar Increase 2006 Salar
Ackland, Jeffrey A 33,550 43.0% 47,982
Caleert, Glenn A 48,027 17.4% 56,395
Cernekee, Patricia E 34,237 35.8% 46,506
Delaney, David W 40,622 49.3% 60,653
Diederich, Ronald E 54,704 14.5% 62,617
Mott, Stacey L 42,1621 16.1% 48,942
Groesch, Barry L 46,114 17.4% 54,132
Hart, Richard T 50,752 19.5% 60,649
Helfand, Jonathon L 40,622 20.0% 48,732
Hilt, Larry J 51,750 19.9% 62,052
Johnson, Jeffery A 34,237 43.0% 48,942
Klingel, Terry A 41,392 46.5% 60,653
Martin III, Harold O 72,010 26.8% 91,295
Pleckham Jr, Daniel C 41,392 18.3% 48,982
Schwartzkopf, Donald P 62,109 18.1% 73,330
Sibenaller, Gregory A 56,098 13.6% 63,730
Stroup, Samuel J 39,395 24.2% 48,941
Bledsoe, Jacob 40,419
Bozue, Steee M 44,399
Hart, Robbie J 46,506
Jeleniewski, Andy C 45,594
McMahon, Patrick T 44,399
Mikolasek, Raymond P 44,399
Presnak, James R 46,506
Aeerage Increase 24.8%
Timothy W. Shame,Actuary, Geneva, IL(630) 262-0600