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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 xkE 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 0 v 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) r 0 0 v a R L E Tanothy W. Sharpe,Actuary; Geneva, IL(630) 262-0600 E 0 Ui 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