Fire Actuarial Valuation Report 2018F05TER&F05TER
ACttUARIES AND CONSULTANttS
VILLAGE OF OAK BR00K
FIFEFIGHTERS'PENSION FUND
ACTUARIAL VALUATION
AS OFJANUARY l,2018
CONTRIBUTIONS APPLICABLE TO THE
PLAN/FISCAL YEAR ENDING DECEMBER 31,2018
´
雖F05TER&F05TER
March 26,2018
Board of Trustees
Village of Oak Brook
Firefighters' Pension Fund
1200 Oak Brook Road
Oak Brook, IL 60523
Re: Actuarial Valuation Report- Village of Oak Brook Firefighters' Pension Fund
Dear Board:
We are pleased to present to the Board this report of the annual actuarial valuation of the Village of Oak
Brook Firefighters' Pension Fund. The valuation was performed to determine whether the assets and
contributions are sufficient to provide the prescribed benefits and to develop the appropriate funding
requirements for the applicable plan year. Please note that this valuation may not be applicable for any
other purposes.
The valuation has been conducted in accordance with generally accepted actuarial principles and
practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial Standards
Board, and reflects laws and regulations issued to date pursuant to the provisions of Article 4, Illinois
Pension Code, as well as applicable federal laws and regulations. In our opinion, the assumptions used
in this valuation, as adopted by the Board of Trustees, represent reasonable expectations of anticipated
plan experience. Future actuarial measurements may differ significantly from the current
measurements presented in this report for a variety of reasons including: changes in applicable laws,
changes in plan provisions, changes in assumptions, or plan experience differing from expectations.
In conducting the valuation, we have relied on personnel, plan design, and asset information supplied
by the Board, financial reports prepared by the custodian bank and the actuarial assumptions and
methods described in the Actuarial Assumptions section of this report. While we cannot veriff the
accuracy of all this information, the supplied information was reviewed for consistency and
reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the
information and believe that it has produced appropriate results. This information, along with any
adjustments or modifications, is summarized in various sections of this report.
The undersigned is familiar with the immediate and long-term aspects of pension valuations and meets
the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial
opinions contained herein. All of the sections of this report are considered an integral part of the
actuarial opinions.
lE4 Shuman Blvd, Suite 305 Naperville, IL 60563 ' (630) 620-0200 ' Fax (239) 481-0634 ' www.foster-foster.com
ACTUARlES AND CONSULTANTS
By:
To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the program has any
direct financial interest or indirect material interest in the Village of Oak Brook, nor does anyone at
Foster & Foster, Inc. act as a member of the Board of Trustees of the Village of Oak Brook
Firefighters' Pension Fund. Thus, there is no relationship existing that might affect our capacity to
prepare and certify this actuarial report.
If there are any questions, concerns, or comments about any of the items contained in this report, please
contact us at 630-620-0200.
Respectfully submitted,
Foster & Foster, Inc.
JLF/lke
Enclosures
Enrolled Actuary # I 7-6888
TABLE OF CONTENTS
Title
Introduction
a. Summary of Report
b. Changes Since Prior Valuation
c. Comparative Summary of Principal
Valuation Results
Valuation Information
a. Development of Amortization Payment
b. Detailed Actuarial (Gain)/Loss Analysis
c. Reconciliation of Changes in Contribution
Requirement
d. Statutory Minimum Required Contribution
e. Projection of Benefit Payments
f. Actuarial Assumptions and Methods
g. Glossary
Trust Fund
Member Statistics
a. Statistical Data
b. Age and Service Distribution
c. Valuation Participant Reconciliation
Summary of Current Plan
Page
t6
t7
18
l9
21
22
lVV
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTERI4
Section
29
SUMMARY OF REPORT
The regular annual actuarial valuation of the Village of Oak Brook Firefighters' Pension Fund, performed
as of January 1,2018, has been completed and the results are presented in this Report. The contribution
amounts set forth herein are applicable to the plan/fiscal year ended December 3 l, 2018.
The contribution requirements, compared with those set forth in the Janauary 1,2017 actuarial report, are
as follows:
Valuation Date
Applicable to Fiscal Year Ending
Total Recommended Contribution
% ofProjected Annual Payroll
Member Contributions (Est.)
% of Projected Annual Payroll
Village Recommended Contribution
% ofProjected Annual Payroll
1/1/2018
12/31/2018
S2,547,051
82.60/0
291,763
9.5%
2,255,288
73.10/0
1/1/2017
12/31/2017
S2,550,591
87.5%
275,659
9.50/0
2,274,932
7800/0
As you can see, the Total Recommended Contribution shows a decrease when compared to the results
determined in the January l,2Ol7 actuarial valuation report. The decrease is attributable to the change in
actuarial assumptions. Without the change, the plan experienced a loss which would have increased the
contribution along with the natural annual increase due to the payroll growth assumption.
Unfavorable plan experience resulted from fewer inactive deaths than expected, COLA timing in the
valuation software and the increase in the mortality assumption to project mortality to the valuation date.
This was partially offset by a gain due to no active retirements and disabilities.
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER 5
The balance ofthis Report presents additional details ofthe actuarial valuation and the general operation
of the Fund. The undersigned would be pleased to meet with the Board of Trustees to discuss the Report
and answer any pending questions concerning its contents.
Respectfully submitted,
FOSTER & FOSTER,INC.
Jason L. Franken, FSA, EA, MAAA
Village of Oak Brook Firefighters' Pension Fund FOSTER & FOSTER 6
CHANGES SINCE PRIOR VALUATION
Plan Changes Since Prior Valuation
- There have been no Plan changes since the prior valuation.
Actuarial AssumptionA4ethod Changes Since Prior Valuation
- The following assumptions have been changed since the prior valuation:
o The retirement rates and termination rates were updated to reflect more current experience as
determined in an experience study performed by the Illinois Department of Insurance in2017.
The retirement rates were further modified to allow for 100% retirement by age 65 given fire
department experience.
- . The salary scale was updated based on an experience study performed by the lllinois Department
oflnsurance in2017.
- There have been no method changes since the prior valuation'
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER17
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION FESULTS
A. Participant Data
Number Included
Actives
Service Retirees
Beneficiaries
Disability Retirees
Terminated Vested
Total
Total Annual Payroll
Payroll Under Assumed Ret. Age
Annual Rate of Payments to:
Service Retirees
Beneficiaries
Disability Retirees
Terminated Vested
B. Assets
Actuarial Value
Market Value
C. Liabilities
Present Value of Benefits
Actives
Retirement Benefits
Disability Benefits
Death Benefits
Vested Benefits
Service Retirees
Beneficiaries
Disability Retirees
Terminated Vested
Total
Ncw Assump
1/1/2018
85
S3,085,809
3,085,809
1,725,295
326,631
641,778
6,966
27,283,666
28,096,804
20,479,525
3,135,084
527,508
752,185
24,728,031
2,843,065
8,544,362
39,039
61,048,799
01d Assump
1/1/2018
85
S3,085,809
3,085,809
1,725,295
326,631
641,778
6,966
27,283,666
28,096,804
1/1/2017
87
S2,915,488
2,915,488
1,675,044
291,179
654,2320
25,992,592
24,995,420
20,683,236
3,062,843
522,507
795,027
24,563,301
2,642,009
8,636,050
31.856
60,936,829
22,447,732
3,148,545
534,920
792,785
24,728,031
2,843,065
8,544,362
39,039
63,078,479
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER18
C. Liabilities - (Continued)
Present Value of Future Salaries
Present Value of Future
Member Contributions
Normal Cost (Retirement)
Normal Cost (Disability)
Normal Cost (Death)
Normal Cost (Vesting)
Total Normal Cost
Present Value of Future
Normal Costs
Accrued Liability (Retirement)
Accrued Liability (Disability)
Accrued Liability (Death)
Accrued Liability (Vesting)
Accrued Liability (Inactives)
Total Actuarial Accrued Liability
Unfunded Actuarial Accrued
Liability (UAAL)
Funded Ratio (AVA / AL)
Ncw Assump
1/1/2018
32,109,931
3,035,994
652,193
202,700
36,162
42,139
933,194
8,804,017
14,178,784
1,269,441
207,142
434,918
36.154,497
52,244,782
24,961,116
52.2%
01d Assump
1/1/2018
32,942,963
3,114,757
746,171
201,999
36,245
45,450
1,029,865
9,943,247
15,095,019
1,237,598
204,458
443,660
36.154.497
53,135,232
25,851,566
51.30/0
1/1/2017
32,784,772
3,099,800
706,068
191,727
34,636
47.342
979,773
9,992,595
13,321,393
1,131,891
185,765
431,969
35.873.216
50,944,234
24,951,642
51.00/0
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTER19
New Assump 01d Assump
1/1/2018 1/1/2018 1/1/2017
D.Actuarial Prcscnt Valuc ofAccrucd Bcncflts
Vcstcd Accnlcd Bcnerlts
_ Inactives 36,154,497 36,154,497 35,873,216
Activcs 6,544,996 6,740,662 5,961,444
Mcmbcr Contributions 2,960.571 2.960.571 2.665.094
__ Tota1 45,660,064 45,855,730 44,499,754
Non―vcstcd Accrued Beneflts 428,069 547,931 442,484
Total Prcscnt Valuc Accrucd Bcncflts 46,088,133 46,403,661 44,942,238
Fundcd Ratio(MVA/PVAB) 61.0% 60.5% 55.6%
_ Increasc(Dccrease)in Prcscnt Valuc of
Accrued Bencflts Attributable to:
Plan Amendmcnts 0 0
- Assumption Changcs (315,528) 0
New Accrucd Benerlts 0 1,323,500
Beneflts Paid O (2,695,712)
― Interest 0 2,833,635
0ther 0 0
TOtal (315,528) 1,461,423
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTER110
Valuation Date
Applicable to Fiscal Year Ending
E. Pension Cost
Normal Cost (with interest)
% of Total Annual Payroll '
Administrative Expenses (with interest)
% of Total Annual Payroll '
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 23 years
(as of lll12018, with interest)
% of Total Annual Payroll '
Total Recommended Contribution
% of Total Annual Payroll '
Expected Member Contributions
% of Total Annual Payroll '
Expected Village Contribution
% of Total Annual Payroll '
F. Past Contributions
Plan Years Ending:
Total Recommended Contribution
Village Requirement
Actual Contributions Made:
Members (excluding buyback)
Village
Total
G. Net Actuarial (Gain)/Loss
Ncw Assump
1/1/2018
12/31/2018
$963,045
31.2
41,852
1.4
1,542,154
50.0
2,547,051
82.6
291,763
9.5
2,255,288
73.1
12/31/2017
2,570,409
2,274,932
295,477
2、080,231
2,375,708
634,139
01d Assump
1/1/2018
12/31/2018
Sl,062,809
34.4
41,852
1.4
1,597,167
51.8
2,701,828
87.6
291,763
9.5
2,410,065
78.1
1/1/2017
12/31/2017
Sl,011,114
34.7
41,865
1.4
1,497,612
51.4
2,550,591
87.5
275,659
9.5
2,274,932
78.0
t Contributions developed as of 11112018 are expressed as a percentage of total
annual payroll at lll12018 of $3,085,809.
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTER111
H.Schedule IHustrating thc Amortization ofthe Total Unfundcd Actuarial Accrued Liability as ot
ProJected l」nfunded
Ycar Accrucd LiabiHty
2018 24,961,116
2019 24,992,104
2020 24,973,383
2025 23,948,570
2031 19,777,653
2036 12,500,903
2041 0
1.(i)3 Ycar Comparison of Actual and Assumcd Salary lncrcases
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
12/31/2017
12/31/2016
12/31/2015
12/31/2017
12/31/2016
12/31/2015
Actual
5.840/0
1.32%
3.46%
Assumed
6.21%
4.250/0
4.250/0
Assumed
(ii) 3 Year Comparison of Investment Return on Actuarial Value
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER112
STATEMENT BY ENROLLED ACTUARY
This actuarial valuation was prepared and completed by me or under my direct supervision, and I
acknowledge responsibility for the results. To the best of my knowledge, the results are complete and ac-
curate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements
and intent of the Illinois Pension Code and adhere to the Actuarial Standards of Practice. There is no ben-
efit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities or current
costs have not been established or otherwise taken into account in the valuation. All known events or
trends which may require a material increase in plan costs or recommended contribution rates have been
taken into account in the valuation.n -o f-a/ ]^",^.\ Y"t-P-\-1-
f'o*t f- f"*t..,, PSn, gn, fr4nAn
Enrolled Actuary # I 7-6888
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTER113
DEVELOPMENT OF JANUARY I,2OI8 AMORTIZATION PAYMENT
(1) Unfunded Actuarial Accrued Liability as of January 1,2017
(2) Sponsor Normal Cost developed as of January 1,2017
(3) Expected administrative expenses for the year ended December 31,2017
(4) Expected interest on (l), (2) and (3)
(5) Sponsor contributions to the System during the year ended December 31,2017
(6) Expected interest on (5)
(7) Expected Unfunded Actuarial Accrued Liability as of
December 31, 2017, (l)+(2)+(3)+(4)-(5)-(6)
(8) Change to UAAL due to Assumption Change
(9) Change to UAAL due to Actuarial (Gain)/Loss
(10) Unfunded Accrued Liability as of January 1,2018
(l l) UAAL Subject to Amortization (100% AAL less Actuarial Assets)
Years
Remainine
23
1/1/2018
Amount
24,961,116
S24,951,642
704,114
40,567
1,668,943
2,080,231
67,608
25,217,427
(890,450)
634,139
24,961,116
24,961,116
Amortization
Amount
l,494,352
I)ate
Establishcd
1/1/2018
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTER114
DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS
(l) Unfunded Actuarial Accrued Liability (UAAL) as of January 1,2017
Expected UAAL as of January 1,2018
Summary of Actuarial (Gain)/Loss, by component:
lnvestment Retum (Actuarial Asset Basis)
Salary Increases
Active Decrements
lnactive Mortality
COLA Timing
Other
Change in UAAL due to (Gain)/Loss
Assumption Changes
(4) Actual UAAL as of January 1,2018
s24,951,642
25,277,427
26,167
(12,419)
( I 38,074)
346,895
172,304
239.266
634,139
(890.4s0)
$24,961,116
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTERI I5
RECONCILIATION OF CHANGES IN CONTRIBUTION REQUIREMENT
Contribution Determined as of January 1,2017
Summary of Contribution Impact by component:
Change in Normal Cost
Change in Assumed Administrative Expense
Investment Retum (Actuarial Asset Basis)
Salary Increases
New Entrants
Active Decrements
Inactive Mortality
Data Corrections
Contributions (More) or Less than Recommended
Increase in Amortization Payment Due to Payroll Growth Assumption
Change in Expected Member Contributions
Assumption Change
Other
Total Change in Contribution
Contribution Determined as of January I , 201 8
$2,274,932
s51 ,695
( l3)
1,617
(767)
(8,531)
21,432
12,035
48,672
(16, t04)
(154,777)
25,097
(19,644)
$2,255,288
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER] I6
STATUTORY MINIMUM REQUIRED CONTRIBUTION
Contribution requirements shown on this page are calculated according to statutory
minimum funding requirements of the Illinois Pension Code. We do not believe this
method is sufficient to fund future benefits; as such, we recommend funding according
to the contributions developed in Section E of this report.
Valuation Date
Applicable to Fiscal Year Ending
Actuarial Accrued Liability (PUC)
Actuarial Value of Assets
Unfunded Actuarial Accrued Liability (UAAL)
UAAL Subject to Amortization
Normal Cost (with interest)
% of Total Annual Payroll '
Administrative Expenses (with interest)
% of Total Annual Payroll '
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 23 years
(as of I/l/2018, with interest)
% of Total Annual Payroll '
Total Required Contribution
% of Total Annual Payroll '
Expected Member Contributions
% of Total Annual Payroll'
Expected Village Contribution
% of Total Annual Payroll '
Assumptions and Methods:
Actuarial Cost Method
Amortization Method
Ncw Assump
1/1/2018
12/31/2018
$51,743,130
27.283。666
24,459,464
19,285,151
981,842
31.8
41,852
1.4
1,191,480
38.6
2,215,174
71.8
291,763
9.5
1,923,411
62.3
Pr●eCted unit Credit
900/。Funding by 2040
01d Assump
1/1/2018
12/31/2018
S53,030,554
27,283.666
25,746,888
20,443,833
1,069,730
34.7
41,852
1.4
1,263,066
40.9
2,374,648
77.0
291,763
9.5
2,082,885
67.5
1/1/2017
12ノ 31/2017
S50,802,645
25,992,592
24,810,053
19,729,789
1,039,644
35。741,865
1.4
1,184,193
40.6
2,265,702
77.7
275,659
9.5
1,990,043
68.2
All other assumptions and methods are as described in the Actuarial Assumptions and Methods section.
I Contributions developed as of llll20l8 are expressed as a percentage of total
annual payroll at 1lll20l8 of $3,085,809.
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER117
PRO」ECTION OF BENEFIT PAYMENTS
Year
Payments for
Current Actives
Payments for
Current Inactives
Total
Payments
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
90,121
169,797
247,086
350,690
434,685
525,150
621,061
750,717
864,202
999,849
1,140,347
1,296,354
1,453,067
1,625,488
1,797,118
1,965,671
2,118,025
2,307,973
2,460,678
2,622,613
2,758,913
2,911,047
3,051,559
3,171,792
3,301,436
3,446,730
3,553,415
3,653,614
3,776,022
3,852,927
3,921,411
3,976,475
4,020,212
4,051,713
4,074,521
4,087,127
4,085,397
4,072,565
4,051,271
4,014,479
2,664,415
2,695,268
2,728,464
2,757,926
2,795,820
2,825,202
2,850,691
2,877,884
2,883,138
2,880,926
2,870,599
2,851,433
2,822,967
2,784,824
2,736,644
2,678,288
2,609,857
2,551,821
2,465,741
2,371,193
2,268,840
2,166,233
2,051,552
1,932,295
1,809,827
1,685,667
1,561,113
1,437,256
1,315,186
1,195,882
1,080,504
970,126
865,475
767,247
675,908
591,651
514,587
444,612
381,451
325,140
2,754,536
2,865,065
2,975,550
3,108,616
3,230,505
3,350,352
3,471,752
3,628,601
3,747,340
3,880,775
4,010,946
4,147,787
4,276,034
4,410,312
4,533,762
4,643,959
4,727,882
4,859,794
4,926,419
4,993,806
5,027,753
5,077,280
5,103,111
5,104,087
5,111,263
5,132,397
5,114,528
5,090,870
5,091,208
5,048,809
5,001,915
4,946,601
4,885,687
4,818,960
4,750,429
4,678,778
4,599,984
4,517,177
4,432,722
4,339,619
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER118
《
ACTUARIAL ASSUMPTIONS AND METHODS
Mortality Rate Healthy Lives:
RP-2000 Combined Healthy Mortality with a blue collar
adjustment, projected with Scale BB to the valuation
date.
Disabled Lives:
RP-2000 Disabled Retiree Mortality, projected with
Scale BB to the valuation date.
The mortality assumptions suffi ciently accommodate
future mortality improvements.
Interest Rate 6.50% per year compounded annually, net of investment
related expenses. This assumption is supported by the
results of a study performed in 2013.
Retirement Age See table on following page. This is based on an
experience study perform ed in 2017 , modified to include
100% retirement at age 65.
Disability Rate See table on following page.85%o of the disabilities are
assumed to be in the line of duty. This is based on an
experience study performed in 2012.
Termination Rate See table on following page. This is based on an
experience study performed in 2017.
Salary Increases See table on following page. This is based on an
experience study performed in 2017.
Inflation 2.50%.
Payroll Growth 3.25% per year.
Cost-of-Living Adjustment Tier l: 3.00% per year after age 55. Those that retire
prior to age 55 receive an increase of lll2 of3.00% for
each full month since benefit commencement upon
reaching age 55.
Tier 2: 1.25o/o per year after the later of attainment of age
60 or first anniversary of retirement.
Administrative Expenses Expenses paid out of the fund other than
investment-related expenses are assumed to be equal to
those paid in the previous year.
Marital Status 85% of Members are assumed to be married.
Spouse's Age Males are assumed to be three years older than females.
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTERI I9
Funding Method
Actuarial Asset Method
Funding Policy Amortization Method
Entry Age Normal Actuarial Cost Method.
Investment gains and losses are smoothed over a 5-year
period.
The UAAL is amortized according to a Level Percentage
of Payroll method over a period ending in 2040. The
initial amortization amount is 100% of the Accrued
Liability less the Actuarial Value of Assets.
Decrement Tables
%Tcminating
Durmg the Year
Agc Rate
20 700%
25 580%
30 350%
35 1750/0
40 1 10%
45 100%
50 100%
55+ 0.00%
%Bccoming DIsablcd
D血 g the Ycar
Agc Rate
20 01000/。
25 01000/。
30 0.200%
35 0.3500/0
40 0500%
45 0650%
50 1.000%
55 1500%
6C1 3.ll10%
%Retiing
Durhg thc Year(Tbrl)
Agc Ratc
5Cl-51 100/。
52-23 12%
54-55 15%
56-59 20°/。
al‐62 25%
63-64 330/。
65+ 100%
%Rcttthg
Durhg thc Ycar(Tbr2)
Agc Ratc
50卜 54 30/0
55 30%
5659 20%
6ι 62 25%
63‐64 330/。
65+ 1∞0/。
Sahry ScaL
Sentc Ratc
0 12.50%
1 1200%
2 10K10%
3 8.50%
4 7.50%
5 6.000/0
6 4.50%
7-26 4.000/。
27‐30 3.75%
31+ 3.50%
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTER120
GLOSSARY
Total Annual Payroll is the projected annual rate of pay for the fiscal year following the valuation date of
all covered members.
Present Value of Benefits is the single sum value on the valuation date of all future benefits to be paid to
current Members, Retirees, Beneficiaries, Disability Retirees and Vested Terminations.
Normal (Current Year's) Cost is the current year's cost for benefits yet to be funded.
Unfunded Accrued Liability is a liability which arises when a pension plan is initially established or
improved and such establishment or improvement is applicable to all years of past service.
Total Recommended Contribution is equal to the Normal Cost plus an amount sufficient to amortize the
Unfunded Accrued Liability over a period ending in 2040. The recommended amount is adjusted for
interest according to the timing of contributions during the year.
Entry Aee Normal Cost Method - Under this method, the normal cost is the sum of the individual normal
costs for all active participants. For an active participant, the normal cost is the participant's normal cost
accrual rate, multiplied by the participant's current compensation.
(a) The normal cost accrual rate equals:
(i) the present value of future benefits for the participant, determined as of the
participant's entry age, divided by
(ii) the present value of the compensation expected to be paid to the participant for each
year of the participant's anticipated future service, determined as of the participant's
entry age.
(b) In calculating the present value of future compensation, the salary scale is applied both
retrospectively and prospectively to estimate compensation in years prior to and subsequent to the
valuation year based on the compensation used for the valuation.
(c) The accrued liability is the sum of the individual accrued liabilities for all participants and
beneficiaries. A participant's accrued liability equals the present value, at the participant's
attained age, of future benefits less the present value at the participant's attained age of the
individual normal costs payable in the future. A beneficiary's accrued liability equals the present
value, at the beneficiary's attained age, of future benefits. The unfunded accrued liability equals
the total accrued liability less the actuarial value of assets-
(d) Under this method, the entry age used for each active participant is the participant's age at the
time he or she would have commenced participation if the plan had always been in existence
under current terms, or the age as of which he or she first eams service credits for purposes of
benefit accrual under the current terms ofthe plan.
Village of Oak Brook Firehghters' Pension Fund FOSTER&FOSTERI2I
^‐
STATEMENT OF FIDUCIARY NET POSITION
December 31,2017
ASSETS
Cash and Cash Equivalents:
Money Market
Cash
Total Cash and Equivalents
Receivables:
Prepaids
Accrued Past Due Interest
Total Receivable
Investments:
Fixed Income
Mutual Funds
Total Investments
Total Assets
LIABILITIES
Liabilities:
Payable:
Expenses
Total Liabilities
Net Assets:
Active and Retired Members'Equity
NET POSITION RESTRICTED FOR PENSIONS
TOTAL LIABILITIES AND NET ASSETS
MARKET VALUE
524,061
819,966
1,344,027
9,882,149
16,808,482
26,690,631
28,109,712
12,908
12,908
28,096,804
28,096,804
28,109,712
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTER122
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED December 31,2017
Market Value Basis
ADDITIONS
Contributions:
Member
Village
Total Contributions
Investment Income:
Net Increase in Fair Value of Investments
Interest & Dividends
Less Investment Expense I
Net Investment Income
Total Additions
DEDUCTIONS
Distributions to Members:
Benefit Payments
Refund of Contributions/Transfers
Total Distributions
Administrative Expenses
Total Deductions
Net Increase in Net Position
NET POSITION RESTRICTED FOR PENSIONS
Beginning of the Year
End of the Year
I lnvestment Related expenses include investment advisory,
custodial and performance monitoring fees.
295,477
2,080,231
2,695,772
0
2,375,708
2,292,228
1,220,917
(51,202)
3,461,943
5,837,651
2,695,712
40,555
2,736,267
3,101,384
24,995,420
28,096,804
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTERI23
ACTUARIAL ASSET VALUATION
December 31,2017
Actuarial Assets for funding purposes are developed by recognizing the total actuarial investment gain or
loss for each Plan Year over a five year period. In the first year,20Yo of the gain or loss is recognized. In
the second year 40%o, in the third year 60Yo, in the fourth year 80o/o, and in the fifth year 100Yo of the gain or
loss is recognized. The actuarial investment gain or loss is defined as the actual return on investments
minus the actuarial assumed investment return. Actuarial Assets shall not be less than 80% nor greater than
l20Yo of the Market Value of Assets.
Gains/(Losses) Not Yet Recognized
Plan Year
Ending Gain/(Loss)2018 2019
Amounts Not Yet Recognized by Valuation Year
2020 2021 2022
(90,649)
(735,222)
159,842
1,479,167
813,138
Development of Investment Gain/Loss
Market Value of Assets,l2l3l12016
Contributions Less Benefit Payments & Administrative Expenses
Expected Investment Eamings I
Actual Net Investment Eamings
2018 Actuarial Investment Gain/(Loss)
I Expected Investment Earnings : 6.50% x (24,995,420 + 0.5 x -360,559)
Development of Actuarial Value of Assets
Market Value of Assets,l2l3ll20l7
(Gains)/Losses Not Yet Recognized
Actuarial Value of Assets, l2l3ll20l7
(A) l2l3l12016 Actuarial Assets:
(l) Net lnvestment lncome:
1. Interest and Dividends
2. Realized Gains (Losses)
3. Change in Actuarial Value
4. Investment Expenses
Total
(B) 1213112017 Actuarial Assets:
Actuarial Asset Rate of Return : (2 x I) / (A + B - I):
Market Value of Assets Rate of Retum:
l2l3l 12017 Limited Actuarial Assets:
Actuarial Gain/(Loss) due to Investment Retum (Actuarial Asset Basis)
12/31/2014
12/31/2015
12/31/2016
12/31/2017
Total
(453,246)
(1,838,054)
266,403
1,848,9590 (367,611)
106,561
1,109,375
848,325
0 0
0 0
53,281 0
739,584 369,792
792,865 369,792
24,995,420
(360,559)
1,612,984
3,461,943
1,848,959
28,096,804
(813,138)
27,283,666
25,992,592
1,220,9170
481,918
(51,202)
1,651,633
27,283,666
6.40%
13.950/0
27,283,666
(26,167)
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER 24
CHANGESIN NET ASSETS AVAILABLE FOR BENEFITS
Decembcr 31,2017
Actuarial Asset Basis
INCOME
Contributions:
Member
Village
Total Contributions
Eamings from Investments
Interest & Dividends
Change in Actuarial Value
Total Eamings and Investment Gains
- Administrative Expenses:
lnvestment Related t
Other
Total Administrative Expenses
Distributions to Members:
Benefit Payments
Refu nd of Contributions/Transfers
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year 2
EXPENSES
295,477
2,080,231
1,220,917
481,918
51,202
40,555
2,695,7120 2,375,708
1,702,835
91,757
2,695,712
1,291,074
25,992,592
27,283,666
t Investment Related expenses include investment advisory,
custodial and performance monitoring fees.
2 Net Assets may be limited for actuarial consideration.
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER125
STATISTICAL DATA
Actives - Tier I
Number
Average Current Age
Average Age at Employment
Average Past Service
Average Annual Salary
Actives - Tier 2
Number
Average Current Age
Average Age at Employment
Average Past Service
Average Annual Salary
Service Retirees
Number
Average Current Age
Average Annual Benefit
Beneficiaries
Number
Average Current Age
Average Annual Benefit
Disability Retirees
Number
Average Current Age
Average Annual Benefit
Terminated Vested
Number
Average Current Age
Average Annual Benefit
4 5
31.0 30.6
SO $0
3 3
33.8 34.8
so S6,966
1/1/2015
27
44.7
29,9
14.8
S92,3775
28.1
27.5
0.6
S64,808
21
68.6
S70,712
18
N/A
S9,796
17
62.5
S43,243
1/1/2016
24
43.3
28.3
15.0
S93,8757
33.1
31.8
1.3
S76,722
22
683
S72,864
15
38.1
S19,379
16
62.8
S44,942
1/1/2017
25
449
294
15.5
S96,9077
29.9
279
20
S70,402
22
67.9
S76,138
15
37.4
S19,412
15
64.3
S43,615
1/1/2018
25
45.9
29.4
16.5
S101,7157
30.9
27.9
3.0
S77,561
22
68.9
S78,423
14
440
S23,331
14
64.2
S45,841
I Average Annual Benefit for Terminated Vested members reflects the benefit for members
entitled to a future annual benefit from the plan. Two terminated vested members for the llll20l8 valuation
are due accumulated contributions only.
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER126
0000000000000AGE AND SERVICE DISTRIBUT10N
PAST SERVICE
2 3 4 5-9 10‐14 15-19 20‐24 25‐29 30+ TOtalAGE
15-19
20‐24
25‐29
30-34
35‐39
40‐44
45-49
50-54
55‐59
60-64
65+
TOtal
00000
00000
0 0 1 1 0
00003
00000
00000
00000
00000
00100
00000
l 1 4 1 4 32
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER1277
VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation llll20l7
b. Terminations
i. Vested (partial or full) with deferred benefits
ii. Non-vested or full lump sum distribution received
iii. Transferred service to other fund
c. Deaths
i. Beneficiary receiving benefits
ii. No future benefits payable
d. Disabled
e. Retired
f. Continuing participants
g. New entrants
h. Total active life participants in valuation
2. Non-Active lives (including beneficiaries receiving benefits)
a. Number prior valuation
Retired
Vested Deferred
Death, With Survivor
Death, No Survivor
Disabled
Refund of Contributions
Rehires
Expired Annuities
Data Corrections
Hired/Termed in Same Year
b. Number current valuation
Service
Retirees,
Vested
Receiving
Benefits
22
0
0
0
0
0
0
0
0
0
0
Receiving
Death
Benefits
l5
Receiving
Disability
Benefits
l5
Vested
Deferred
J
Total
55
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTERI28
SUMMARY OF CURRENT PLAN
Article 4 Pension Fund The Plan is established and administered as prescribed by "Article
4. Firefighters' Pension Fund - Municipalities 500,000 and
Under" of the Illinois Pension Code.
Plan Administration The Plan is administered by a Board of Trustees comprised of:
a) Two members appointed by the Municipality,
b) Two active Members of the Fire Department elected by the
Membership, and
c) One retired Member of the Fire Department elected by the
Membership.
Credited Service Years and fractional parts of years of service (except as noted
below) as a sworn Firefighter employed by the Municipality.
Salary Annual salary, including longevity, attached to firefighter's rank,
as established by the municipality appropriation ordinance,
excluding overtime pay, bonus pay and holiday pay except for the
base 8 hours of the 10 pensionable holidays which is included.
Normal Retirement
Date Tier I : Age 50 and 20 years of Credited Service.
Tier 2: Age 55 and l0 years of Credited Service.
Benefit Tier 1: 50oZ of annual salary attached to rank on last day of
service ptus 2.50% of annual salary for each year of service over
20 years, up to a maximum of 75Yo of salary. The minimum
monthly benefit is S 1,159.27 per month.
Tier 2: 2.50% per year of service times the average salary for the
eight consecutive years prior to retirement times the number of
years of service, up to a maximumof 7SYo of average salary. The
minimum monthly benefit is $1,159.27 per month.
Form of Benefit Tier 1: For married retirees, an annuity payable for the life of the
Member; upon the death of the member, 100% of the Member's
benefit payable to the spouse until death. For unmarried retirees,
the normal form is a Single Life Annuity.
Tier 2: Same as above, but with 66 213% of benefit continued to
spouse.
Village of Oak Brook Firefighters'Pension Fund FOSTER&FOSTER129
Early Retirement
Date
Benefit
Form ofBenefit
Disability Benefit
Eligibility
Benefit Amount
Cost-of-Livins Adiustment
Tier l:Age 60 and l0 years of Credited Service.
Tier 2: Age 50 and l0 years of Credited Service.
Tier 1: I .5% plus 0. I % for each year of service in excess of l0
years, times salary x service (complete years).
Tier 2: Normal Retirement Benefit, reduced 60/o for each year
before age 55, with no minimum benefit.
Same as Normal Retirement
Total and permanent as determined by the Board of Trustees.
Seven years of service required for non-service connected
disability.
A maximum of:
a) 65% of salary attached to the rank held by Member on
last day ofservice, and;
b.) The monthly retirement pension that the Member is
entitled to receive if he or she retired immediately.
For non-service connected disabilities, a benefit of 50% ofsalary
attached to rank held by Member on last day of service.
Tier 1:
Retirees: An annual increase equal to 3.00% per year after age
55. Those that retire prior to age 55 receive an increase of l/12 of
3.00% for each full month since benefit commencement upon
reaching age 55.
Disabled Retirees: An annual increase equal to 3.00% per year of
the original benefit amount beginning at age 60. Those that
become disabled prior to age 60 receive an increase of 3.00% of
the original benefit amount for each year since benefit
commencement upon reaching age 60.
Tier 2: An annual increase each January I equal to 3.0002 per
year or one-half of the annual unadjusted percentage increase in
the consumer price index-u for the l2 months ending with the
September preceding each November l, whichever is less, of the
original pension after the attainment of age 60 or first anniversary
of pension start date whichever is later.
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTERI30
Pre-Retirement Death Benefit
Service Incurred 100% of salary attached to rank held by Member on last day of
service.
Non-Service Incurred A maximum of:
a.) 54% of salary attached to the rank held by Member on last
day ofservice, and;
b.) The monthly retirement pension earned by the deceased
Member at the time of death, regardless of whether death
occurs before or after age 50.
Vesting (Termination)
Vesting Service Requirement 10 years.
Non-Vested Benefit Refund of Member Contributions.
Vested Benefit Either the termination benefit, payable upon reaching age 60 (55
for Tier 2, provided contributions are not withdrawn, or a refund
of member contributions.
Termination Benefit Based on the monthly salary attached to the Member's rank at
separation from service and equals:
Tier 1: I .5% plus 0.1% for each year of service in excess of l0
years, times salary x service (based on complete years).
Tier 2: 2.50% of 8-year final average salary times creditable
service.
Contributions
Employee 9.455% of Salary.
Municipality Remaining amount necessary for payment of Normal (current
year's) Cost and amortization of the accrued past service liability.
Village of Oak Brook Firefighters' Pension Fund FOSTER&FOSTER131