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Fire Actuarial Valuation Report 2021Village of Oak Brook Firefighters' Pension Fund December 31, 2021 GASB Nos. 67 & 68 Report Actuarial Certification 3 Summary 5 Statement of Fiduciary Net Position 6 Statement of Changes in Fiduciary Net Position 7 Schedule of Changes in Net Pension Liability and Related Ratios 8 Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Table of Contents Pension Expense 10 Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions 11 13Rate of Return Discount Rate and Net Pension Liability Sensitivity Actuarial Assumptions for Total Pension Liability Schedule of Contributions Actuarial Assumptions for Actuarially Determined Contributions 14 16 15 17 Plan Provisions 19 2 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Actuarial Certification This report is prepared in accordance with our understanding of GASB Nos. 67 & 68 for the purpose of disclosing pension plans in financial statements. Determinations for purposes other than meeting these requirements may be significantly different from the results contained in this report. The information presented in this report is based on: • the actuarial assumptions included in this report; • the plan provisions; • participant information furnished to us by the Plan Administrator; • asset information furnished to us by the Plan Trustee. We have reviewed the provided data for reasonableness when compared to prior information provided, but have not audited the data. Where relevant data may be missing, we may have made assumptions we believe are reasonable for the purpose of the measurement. We are not aware of any significant issues with and have relied on the data provided. Any errors in the data provided may result in a different result than those provided in this report. The interest rate, other economic assumptions, and demographic assumptions have been selected by the plan sponsor with our recommendations. The assumptions used, in our opinion, are reasonable and represent a reasonable expectation of future experience under the plan. All calculations have been made in accordance with generally accepted actuarial principles and practice. A summary of any assumptions not included in this report, the plan provisions and the participant information is included in the Actuarial Valuation Report for funding purposes. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: • plan experience differing from that anticipated by the economic or demographic assumptions; • changes in economic or demographic assumptions; • increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and • changes in plan provisions or applicable law. We did not perform an analysis of the potential range of future measurements due to the limited scope of our engagement. In preparing the results, Nyhart used Proval valuation software developed by Winklevoss Technologies, LLC. This software is widely used for the purpose of performing pension valuations. We coded the plan provisions, assumptions, methods, and participant data summarized in this report, and reviewed the liability and cost outputs for reasonableness. We are not aware of any material weaknesses or limitations in the software, and have determined it is appropriate for performing this valuation. 3 | P a g e The undersigned are compliant with the continuing education requirements of the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States. To our knowledge there have been no significant events prior to the current year's measurement date or as of the date of this report which could materially affect the results contained herein. Neither Nyhart nor any of its employees have any relationships with the plan or plan sponsor which could impair or appear to impair the objectivity of this report. Nyhart 04/19/2022 Jennifer Turk, FSA, EA, MAAAHeath W. Merlak, FSA, EA, MAAA Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Actuarial Certification 4 | P a g e Plan fiduciary net position as a percent of the total pension liability 66.23% 64.31% Net Pension Liability The components of the net pension liability at December 31 Total pension liability 57,099,837 53,675,156 $$ Plan fiduciary net position (37,817,311)(34,520,040) Net pension liability 19,282,526 19,155,116 $$ Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Summary 12/31/2021 12/31/2020 $$ 752,181 924,697 Pension Expense for the Fiscal Year Ended December 31 Active plan members Inactive plan members entitled to but not yet receiving benefits Inactive plan members and beneficiaries currently receiving benefits Plan Membership The total pension liability was determined based on the plan membership as of December 31 Investment rate of return, including inflation, and net of investment expense Salary increases, including inflation Inflation Actuarial Assumptions The total pension liability was determined using the following actuarial assumptions 29 48 4 2.25% 2021 Total members 81 2.50% 2020 48 5 31 84 4.00% - 12.50% 6.75% 3.75% 6.75% 5 | P a g e Assets 12/31/2021 Securities lending cash collateral 0 0 Total cash 15,397 15,000 $$ Receivables: Contributions 0 0 $ Due from broker for investments sold 0 0 Investment income 73,061 67,392 Other 1,544 1,494 Total receivables 74,605 68,886 $$ Investments: Cash and deposits 15,397 15,000 $$ Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Statement of Fiduciary Net Position $ 12/31/2020 Money Market Mutual Funds $$ 1,091,913 775,634 Fixed Income 13,724,359 12,727,959 Stock Equities 0 0 Mutual Funds 20,950,664 22,919,192 Total investments Total assets Liabilities Payables: Investment management fees Due to broker for investments purchased Collateral payable for securities lending Other Total liabilities Net position restricted for pensions 37,735,464 37,825,466 0 0 0 8,155 8,155 0 37,817,311 34,454,257 34,538,143 0 0 18,103 18,103 34,520,040 $ $ $ $ $$ $ $ $ $ 6 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Statement of Changes in Fiduciary Net Position Additions Contributions: Employer Member Nonemployer contributing entity Total contributions Investment income: Net increase in fair value of investments Interest and dividends Less investment expense, other than from securities lending Net income other than from securities lending Securities lending income Less securities lending expense Net income from securities lending Net investment income Other Total additions Deductions Benefit payments, including refunds of member contributions Administrative expense Other Total deductions Net increase in net position Net position restricted for pensions Beginning of year End of year 12/31/2021 12/31/2020 2,173,496 332,919 0 2,506,415 4,041,581 0 1,689,472 (74,200) 4,041,581 0 6,547,996 0 2,426,309 0 1,834,554 317,505 0 2,152,059 3,816,997 804,297 (62,098) 4,559,196 0 0 0 4,559,196 0 6,711,255 3,297,271 62,320 3,188,405 0 3,250,725 34,520,040 37,817,311 30,896,236 34,520,040 3,087,451 0 3,043,861 43,590 3,623,804 $ $ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $ $ $$ 7 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Schedule of Changes in Net Pension Liability and Related Ratios Total pension liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of member contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - member Contributions - nonemployer contributing member Net investment income Benefit payments, including refunds of member contributions Administrative expenses Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Net pension liability as percentage of covered- employee payroll 12/31/2021 808,944 3,570,068 0 (41,604) 2,275,678 (3,188,405) 53,675,156 57,099,837 3,424,681 2,173,496 332,919 0 4,041,581 (3,188,405) (62,320) 0 3,297,271 66.23% 34,520,040 37,817,311 19,282,526 818,358 3,489,011 0 327,007 (307,978) (3,043,861) 1,282,537 52,392,619 53,675,156 12/31/2020 1,834,554 317,505 0 4,559,196 (3,043,861) (43,590) 0 3,623,804 30,896,236 34,520,040 19,155,116 64.31% 12/31/2019 807,975 3,420,108 64,337 (139,992) (175,274) (2,889,667) 1,087,487 51,305,132 52,392,619 2,150,924 308,176 0 4,971,532 (2,889,667) (45,898) 0 4,495,067 26,401,169 30,896,236 21,496,383 58.97% 12/31/2018 786,115 3,347,278 0 (96,554) (156,879) 1,123,922 50,181,210 51,305,132 (2,756,038) 2,064,689 300,087 0 (1,255,489) (2,756,038) (45,569) 0 (1,692,320) 28,093,489 26,401,169 24,903,963 51.46% $ $ $ $$ $$$ $$ 648.26% $ $ 591.18% $ $ $ $ $ $$ $$ $ $$ $$ 2,974,486 $3,187,983 676.11%781.18% 3,240,175 $3,179,407 715.78% 3,085,809 $ 55.98% 22,087,721 $ 28,093,489 $ 24,995,420 3,098,069 $ 0 (41,034) (2,695,712) 3,459,107 0 295,477 2,080,231 $ 50,181,210 $ 49,274,222 906,988 (2,695,712) 300,225 (768,292) 0 3,287,875 782,892 $ 12/31/2017 8 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Schedule of Changes in Net Pension Liability and Related Ratios Total pension liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of member contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - member Contributions - nonemployer contributing member Net investment income Benefit payments, including refunds of member contributions Administrative expenses Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Net pension liability as percentage of covered- employee payroll 12/31/2016 12/31/2015 756,771 3,229,650 0 (569,891) 90,432 (2,645,270) 861,692 48,412,530 49,274,222 1,801,476 273,775 0 1,794,320 (2,645,270) (40,567) 0 1,183,734 23,811,686 24,995,420 $24,278,802 50.73% 746,748 3,040,301 0 163,758 1,474,675 (2,615,406) 2,810,076 45,602,454 48,412,530 1,414,530 269,349 0 (256,565) (2,615,406) (46,350) 0 (1,234,442) 25,046,128 23,811,686 $24,600,844 49.18% $$ $$ $ $ $ $ $ $ 2,918,844 $2,812,001 $ 831.80%874.85% $$ $ 9 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Pension Expense Service cost Interest on total pension liability Projected earnings on pension plan investments Changes of benefit terms Employee contributions Pension plan administrative expense Other changes Current period recognition of deferred outflows/(inflows) of resources Differences between Expected & Actual Experience in measurement of the Total Pension Liability Changes of assumptions Differences between Projected & Actual Earnings on Pension Plan Investments Total 808,944 12/31/2021 3,570,068 (2,304,982) 0 (332,919) 62,320 0 (136,618) (1,218,891) 924,697 476,775 12/31/2020 818,358 3,489,011 (74,057) 0 (317,505) (240,194) (913,096) 0 43,590 (2,053,926) 752,181 $ $ $ Fiscal year ending $ $ $ 10 | P a g e Differences between expected and actual experience in measurement of the total pension liability for fiscal year ending: Initial Balance Initial Amortization Period Annual Recognition 12/31/2021 Balance December 31, 2021 (41,604)(10,401)(31,203)$$$4.0 December 31, 2020 327,007 81,752 163,503 $$$4.0 December 31, 2019 (139,992)(34,998)(34,998)$$$4.0 December 31, 2018 (96,554)(19,311)(19,310)$$$5.0 December 31, 2017 (768,292)(153,660) 0 $$$5.0 77,992 (136,618)$$ Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Changes in assumptions for fiscal year ending: Initial Balance Initial Amortization Period Annual Recognition 12/31/2021 Balance December 31, 2021 2,275,678 568,920 1,706,758 $$$4.0 December 31, 2020 (307,978)(76,995)(153,988)$$$4.0 December 31, 2019 (175,274)(43,819)(43,817)$$$4.0 December 31, 2018 (156,879)(31,376)(31,375)$$$5.0 December 31, 2017 300,225 60,045 0 $$$5.0 1,477,578 476,775 $$ Differences between projected and actual earnings on pension plan investments for fiscal year ending: Initial Balance Initial Amortization Period Annual Recognition 12/31/2021 Balance December 31, 2021 (1,736,599)(347,320)(1,389,279)$$$5.0 December 31, 2020 (2,505,270)(501,054)(1,503,162)$$$5.0 December 31, 2019 (3,205,534)(641,107)(1,282,213)$$$5.0 December 31, 2018 3,137,056 627,411 627,412 $$$5.0 December 31, 2017 (1,784,101)(356,821) 0 $$$5.0 (3,547,242)(1,218,891)$$ 11 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Net difference between projected and actual earnings on pension plan investments Changes of Assumptions Differences between expected and actual experience Deferred Outflows of Resources Deferred Inflows of Resources 163,503 1,706,758 627,412 (85,511) (229,180) (4,174,654) 2,497,673 (4,489,345)$ $ $ $$ $ $ $ The balances as of December 31, 2021 of the deferred outflows/(inflows) of resources will be recognized in pension expense for the fiscal year ending December 31. Thereafter $(428,293) $(926,203) $(289,857) $(347,319) $ 0 $ 0 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12 | P a g e The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2021 are summarized in the following table: Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Rate of Return Asset class Target allocation Long-term expected real rate of return Money Market Mutual Funds 2.0% 0.50% Fixed Income 2.50% 37.0% Stock Equities 0.0% 5.50% Mutual Funds 61.0% 5.50% Cash Total 0.00% 0.0% 100.0% Long-term expected rate of return is 6.75%. Money-weighted rate of return is 11.84%. 13 | P a g e Discount rate The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Professional judgment on future contributions has been applied in those cases where contribution patterns deviate from the actuarially determined rates. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Discount Rate and Net Pension Liability Sensitivity Sensitivity of the net pension liability to changes in the discount rate The following presents the net pension liability, calculated using the discount rate of 6.75%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate: Net pension liability 26,685,496 19,282,526 13,188,513 1% Decrease (5.75%) Current Discount Rate (6.75%) 1% Increase (7.75%) $$$ 14 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Schedule of Contributions Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered-employee payroll Contributions as a percentage of covered-employee payroll Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered-employee payroll Contributions as a percentage of covered-employee payroll 2,173,496 0 2,173,496 2021 1,826,637 1,414,530 412,107 2015 2020 2019 2018 2017 2016 2014 2013 2012 360,077 0 0 0 213,965 127,663 87,885 71,040 1,834,554 2,150,924 2,064,689 2,080,231 1,801,476 1,570,742 1,057,081 1,001,528 2,194,631 2,150,924 2,064,689 2,080,231 2,015,441 1,698,405 1,144,966 1,072,568 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,240,175 3,179,407 3,187,983 3,085,809 2,918,844 2,812,001 2,818,219 2,674,017 2,762,080 2,687,097 67.08%57.70%67.47%66.91%71.27% 64.06%50.19%58.74%38.27%37.27% 15 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Actuarial Assumptions for Total Pension Liability The total pension liability as of December 31, 2021 was determined using the following actuarial assumptions: Actuarial Cost Method Entry Age Method Asset Method Market Value of Assets Interest Rates Discount Rate 6.75% Expected Long Term Rate of Return 6.75% Municipal Bond Rate N/A Inflation 2.25% Annual Pay Increases 4.00% - 12.50% (varies by service) Measurement Date December 31, 2021 Ad-hoc Cost-of-living Increases 3.0% (1.125% for those hired on or after January 1, 2011) Mortality Rates Healthy (pre-commencement)Pub-2010 Public Safety Employee Mortality Table without adjustment, with generational improvement scale MP-2020 applied from 2010 Healthy (post-commencement)Pub-2010 Public Safety Healthy Retiree Mortality Table with 1.081 adjustment for males, with generational improvement scale MP-2020 applied from 2010 The Pub-2010 Public Safety Survivor Mortality Table with 1.098 adjustment for females, with generational improvement scale MP-2020 applied from 2010 is used for survivors Disabled Pub-2010 Disabled Retiree Mortality Table with 1.178 adjustment for males, with generational improvement scale MP-2020 applied from 2013 All other demographic assumptions As described in the assumptions section of the January 1, 2022 funding report Experience Study An actuarial experience study was provided December 1, 2021 to the Department of Insurance reflecting experience for the years 2017 - 2020 from numerous Funds valued by the Department of Insurance, including the Village of Oak Brook. 16 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Actuarial Assumptions for Actuarially Determined Contributions Actuarial Cost Method Entry Age Normal Cost Method Amortization Method Closed level percentage of payroll amortization of 100% of the Unfunded Actuarial Accrued Liability using a 2.50% payroll growth assumption over the period ending on December 31, 2040 (20-year amortization in 2021) Asset Method 5 year smoothing of assets gains and losses Interest Rates 6.75%, net of investment expenses Inflation 2.50% Annual Pay Increases 3.75% Ad-hoc Cost-of-living Increases 3.0% (1.25% for those hired on or after January 1, 2011) Mortality Rates Healthy RP-2014 Mortality Table with a blue collar adjustment, with generational improvement scale MP-2020 applied from 2013 Disabled 115% of the RP-2014 Mortality Table with a blue collar adjustment, with generational improvement scale MP-2020 applied from 2013 20% of service deaths are assumed to be in the line of duty Retirement Rates Recommended rates from the 2017 IDOI experience study: Tier I Tier II Age Rate Age Rate 50-51 10%50-54 3% 52-53 12% 55 30% 54-55 15%56-59 20% 56-59 20%60-62 25% 60-62 25%63-64 33% 63-64 33%65-69 50% 65-69 50%70+100% 70+100% 17 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Actuarial Assumptions for Actuarially Determined Contributions Disability Rates Recommended rates from the 2017 IDOI experience study. Sample rates include: Age Rate 20 0.010% 30 0.068% 40 0.420% 50 0.900% 80% of disabilities are assumed to be in the line of duty. Termination Rates Recommended rates from the 2017 IDOI experience study. Sample rates include: Age Rate 20 5.80% 30 3.50% 40 1.10% 50 1.00% Marital Status and Ages 80% of participants are assumed married with female spouses 3 years younger. Expense Load Equal to the administrative expenses paid in the prior year. 18 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Plan Provisions Eligibility for Participation Firefighters of the Village of Oak Brook Accrual of Benefits For employees hired prior to January 1, 2011, the normal retirement benefit is equal to 50% of the final salary plus 2.5% of any service over 20 years (with a maximum of 30) times the final salary. There is a minimum benefit of $1,159.27 per month. The benefit is paid as a 100% joint and survivor benefit with the spouse, children under 18, or dependent parents of the participant as the survivor. For employees hired on or after January 1, 2011, the normal retirement benefit is equal to 2.5% of the final average salary times benefit service (maximum 30 years). The benefit is paid as a 66.67% joint and survivor benefit with the spouse, children under 18, or dependent parents of the participant as the survivor. Benefits Normal Retirement Eligibility For employees hired prior to January 1, 2011, the normal retirement date is the first day of the month on or after completion of 20 years of service and attainment of age 50. For employees hired on or after January 1, 2011, the normal retirement date is the first day of the month on or after completion of 10 years of service and attainment of age 55. Benefit Unreduced Accrued Benefit payable immediately. Early Retirement Eligibility For employees hired prior to January 1, 2011 and terminating with less than 20 years of service For employees hired on or after January 1, 2011 who has attained age 50 and has 10 years of service. Benefit For those hired prior to January 1, 2011, a reduced Accrued Benefit shall be paid at age 60 based on the schedule below. For those hired on or after January 1, 2011, the Accrued Benefit is reduced by 0.5% for each month prior to age 55. Benefit Service Accrual Percentage Benefit Service Accrual Percentage 10 15.0%15 30.0% 11 17.6%16 33.6% 12 20.4%17 37.4% 13 23.4%18 41.4% 14 26.6%19 45.6% 19 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Plan Provisions Termination Eligibility For employees hired prior to January 1, 2011, age 60 with 8 years of service. For employees hired after or on January 1, 2011, age 55 with 10 years of service. Benefit Accrued benefit. Refund of contributions for employees that do not meet the eligibility criteria above. Disability In The Line of Duty Eligibility For participants who become disabled in the line of duty. Benefit The greater of 65% of the final salary or the accrued benefit Disability Not In The Line of Duty Eligibility For participants who become disabled outside of the line of duty. Benefit 50% of the final salary Death In the Line of Duty Eligibility For participants who die in the line of duty. Benefit The benefit is 100% of final salary paid to the survivor. Death Not In the Line of Duty Eligibility For participants who die outside of the line of duty. Benefit For those hired before January 1, 2011 and greater than 20 years of service, a benefit of 100% of the accrued benefit is paid to the survivor. For those with more than 10 years of service, but less than 20 years of service, a benefit of 50% of the final salary is paid to the survivor. For those hired on or after January 1, 2011, a benefit equal to the greater of 54% of final salary and 66-2/3% of the accrued benefit is paid to the survivor. Compensation Final Salary is the salary attached to the rank held on the last day of service, or one year prior to the last day, whichever is greater. Final Average Salary is the average monthly salary obtained by dividing the total salary of the firefighter during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Salary will not exceed $106,800 adjusted from January 1, 2011 with the lesser of 3% and 100% of the CPI on November 1. 20 | P a g e Village of Oak Brook Firefighters' Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021 Plan Provisions Credited Service For Vesting and Benefit Accrual purposes, pension service credit is based on elapsed time from hire. Employee Contributions 9.455% of Compensation COLA Eligibiity All Participants Benefit For employees hired prior to January 1, 2011 a compound COLA of 3% is granted each year after attainment of age 55 and 1 year of payments For employees hired after or on January 1, 2011 a simple COLA of the lesser of 3% and 50% of the CPI on November 1 is granted each year after attainment of age 60 and 1 year of payments. For disabled employees, a simple COLA is available after attainment of age 60 and 1 year of payments. For employees hired prior to January 1, 2011 the COLA is 3%. For employees hired after or on January 1, 2011, the COLA is the lesser of 3% and 50% of the CPI on November 1. Plan Provisions Not Included We are not aware of any plan provisions not included in the valuation. Adjustments Made for Subsequent Events We are not aware of any event following the measurement date and prior to the date of this report that would materially impact the results of this report. 21 | P a g e