Police Actuarial Valuation Report 2021Village of Oak Brook Police 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 Police 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 Police 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 Police 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 75.33% 69.94%
Net Pension Liability
The components of the net pension liability at December 31
Total pension liability 66,163,676 64,108,697 $$
Plan fiduciary net position (49,838,078)(44,837,122)
Net pension liability 16,325,598 19,271,575 $$
Village of Oak Brook Police Pension Fund
GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021
Summary
12/31/2021 12/31/2020
$$ 1,301,118 794,601 Pension Expense for the Fiscal Year Ended December 31
Active plan members
Inactive plan members entitled to but not yet receiving benefits
Inactive plan members and beneficiaries currently receiving benefits
Plan Membership
The total pension liability was determined based on the plan membership as
of December 31
Investment rate of return, including inflation, and net of investment expense
Salary increases, including inflation
Inflation
Actuarial Assumptions
The total pension liability was determined using the following actuarial
assumptions
40
44
8
2.50%
2021
Total members 92
2.50%
2020
42
6
41
89
3.75%
6.75%
3.75%
6.75%
5 | P a g e
Assets 12/31/2021
Securities lending cash collateral 0 0
Total cash 417,236 247,761 $$
Receivables:
Contributions 0 0 $
Due from broker for investments sold 0 0
Investment income 95,738 96,196
Other 3,443 3,231
Total receivables 99,181 99,427 $$
Investments:
Cash and deposits 417,236 247,761 $$
Village of Oak Brook Police 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 $$ 2,353,939 2,611,554
Fixed Income 12,927,322 11,236,744
Stock Equities 0 0
Mutual Funds 30,664,984 34,071,371
Total investments
Total assets
Liabilities
Payables:
Investment management fees
Due to broker for investments purchased
Collateral payable for securities lending
Other
Total liabilities
Net position restricted for pensions
49,352,632
49,869,049
0
0
0
30,971
30,971
0
49,838,078
44,513,282
44,860,470
0
0
23,348
23,348
44,837,122
$
$
$
$
$$
$
$
$
$
6 | P a g e
Village of Oak Brook Police 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
2,133,229
572,232
0
2,705,461
5,680,397
0
825,760
(86,181)
5,680,397
0
8,385,858
0
4,940,818
0
1,803,644
521,151
0
2,324,795
3,382,858
1,120,874
(76,329)
4,427,403
0
0
0
4,427,403
0
6,752,198
5,000,956
52,226
3,332,676
0
3,384,902
44,837,122
49,838,078
41,183,345
44,837,122
3,098,421
0
3,060,323
38,098
3,653,777
$
$
$
$
$
$
$
$
$
$$
$
$
$
$
$
$
$
$
$
$$
7 | P a g e
Village of Oak Brook Police 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
925,403
4,277,324
0
220,178
(35,250)
(3,332,676)
64,108,697
66,163,676
2,054,979
2,133,229
572,232
0
5,680,397
(3,332,676)
(52,226)
0
5,000,956
75.33%
44,837,122
49,838,078
16,325,598
869,540
4,215,181
0
(698,928)
(324,515)
(3,060,323)
1,000,955
63,107,742
64,108,697
12/31/2020
1,803,644
521,151
0
4,427,403
(3,060,323)
(38,098)
0
3,653,777
41,183,345
44,837,122
19,271,575
69.94%
12/31/2019
852,541
4,041,408
63,841
778,897
(196,672)
(2,904,890)
2,635,125
60,472,616
63,107,741
2,057,112
378,699
0
6,529,172
(2,904,890)
(41,392)
0
6,018,701
35,164,644
41,183,345
21,924,396
65.26%
12/31/2018
890,871
3,902,722
0
199,802
(182,060)
2,279,432
58,193,184
60,472,616
(2,531,903)
1,946,714
410,316
0
(2,385,632)
(2,531,903)
(54,667)
0
(2,615,172)
37,779,816
35,164,644
25,307,972
58.15%
$
$
$
$$
$$$
$$
386.70%
$
$
461.15%
$
$
$
$
$
$$
$$
$
$$
$$
4,221,825 $3,849,863
557.58%657.37%
4,179,054 $3,932,044
524.47%
3,892,216 $
64.92%
20,413,368 $
37,779,816 $
33,534,050
4,245,766 $
0
(35,776)
(2,315,047)
4,461,837
0
386,727
1,748,025 $
58,193,184 $
54,407,673
3,785,511
(2,315,047)
1,964,218
(347,589)
0
3,650,633
833,296 $
12/31/2017
8 | P a g e
Village of Oak Brook Police Pension Fund
GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021
Schedule of Changes in Net Pension Liability and Related Ratios
Total pension liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of member contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Plan fiduciary net position
Contributions - employer
Contributions - member
Contributions - nonemployer contributing member
Net investment income
Benefit payments, including refunds of member contributions
Administrative expenses
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net pension liability - ending (a) - (b)
Plan fiduciary net position as a percentage of the total
pension liability
Covered-employee payroll
Net pension liability as percentage of covered-
employee payroll
12/31/2016 12/31/2015
800,389
3,563,145
0
(856,825)
96,439
(2,364,839)
1,238,309
53,169,364
54,407,673
1,527,927
383,238
0
2,176,018
(2,364,839)
(39,522)
0
1,682,822
31,851,228
33,534,050
$20,873,623
61.63%
816,276
3,338,238
0
(48,037)
1,597,133
(2,346,686)
3,356,924
49,812,440
53,169,364
1,336,683
358,499
0
(429,965)
(2,346,686)
(38,647)
0
(1,120,116)
32,971,344
31,851,228
$21,318,136
59.91%
$$
$$
$
$
$
$
$
$
3,829,224 $3,735,548 $
545.11%570.68%
$$
9 | P a g e
Village of Oak Brook Police 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
925,403
12/31/2021
4,277,324
(3,003,575)
0
(572,232)
52,226
0
30,472
(1,160,160)
794,601
245,143
12/31/2020
869,540
4,215,181
271,482
0
(521,151)
(184,930)
(633,336)
0
38,098
(2,753,766)
1,301,118
$
$
$
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 220,178 44,036 176,142 $$$5.0
December 31, 2020 (698,928)(139,786)(419,356)$$$5.0
December 31, 2019 778,897 155,779 311,560 $$$5.0
December 31, 2018 199,802 39,960 39,962 $$$5.0
December 31, 2017 (347,589)(69,517) 0 $$$5.0
108,308 30,472 $$
Village of Oak Brook Police 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 (35,250)(7,050)(28,200)$$$5.0
December 31, 2020 (324,515)(64,903)(194,709)$$$5.0
December 31, 2019 (196,672)(39,334)(78,670)$$$5.0
December 31, 2018 (182,060)(36,412)(36,412)$$$5.0
December 31, 2017 1,964,218 392,842 0 $$$5.0
(337,991) 245,143 $$
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 (2,676,822)(535,364)(2,141,458)$$$5.0
December 31, 2020 (1,673,637)(334,727)(1,004,183)$$$5.0
December 31, 2019 (4,172,787)(834,557)(1,669,116)$$$5.0
December 31, 2018 4,928,023 985,605 985,603 $$$5.0
December 31, 2017 (2,205,581)(441,117) 0 $$$5.0
(3,829,154)(1,160,160)$$
11 | P a g e
Village of Oak Brook Police 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
527,664
0
985,603
(419,356)
(337,991)
(4,814,757)
1,513,267 (5,572,104)$
$
$
$$
$
$
$
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
$(766,753)
$(1,755,908)
$(1,037,794)
$(498,382)
$ 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 Police 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 7.0% 0.50%
Fixed Income 2.50% 28.0%
Stock Equities 0.0% 5.50%
Mutual Funds 65.0% 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 12.77%.
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 Police 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 25,362,708 16,325,598 8,934,997
1% Decrease
(5.75%)
Current Discount
Rate (6.75%)
1% Increase
(7.75%)
$$$
14 | P a g e
Village of Oak Brook Police 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
2,133,229
0
2,133,229
2021
1,550,233
1,336,683
213,550
2015
2020 2019 2018 2017
2016 2014 2013 2012
366,201 0 0 0
180,403 225,849 33,982 (8,343)
1,803,644 2,057,112 1,946,714 1,748,025
1,527,927 1,259,824 1,171,537 977,367
2,169,845 2,057,112 1,946,714 1,748,025
1,708,330 1,485,673 1,205,519 969,024
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4,179,054 3,932,044 3,849,863 3,892,216 3,829,224
3,735,548 3,631,184 3,598,016 3,646,309 3,310,998
51.05%45.87%53.43%50.02%45.65%
40.90%36.81%35.01%32.13%29.52%
15 | P a g e
Village of Oak Brook Police 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 2.50%
Annual Pay Increases 3.75%
Measurement Date December 31, 2021
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-2021 applied from 2013
Disabled 115% of the RP-2014 Mortality Table with a blue collar adjustment, with generational
improvement scale MP-2021 applied from 2013
All other demographic assumptions As described in the assumptions section of the actuarial determined contribution
Experience Study An actuarial experience study was provided October 5, 2017 to the Department of
Insurance reflecting experience for the years 2011 - 2016 from numerous Funds valued by
the Department of Insurance, including the Village of Oak Brook.
16 | P a g e
Village of Oak Brook Police 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 asset gains and losses
Interest Rates 6.75%, net of investment and administrative expenses
Inflation 2.50%
Annual Pay Increases 3.75%
Ad-hoc Cost-of-living Increases 3.0% (1.25% for those hired after 1/1/2011)
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 witha blue collar adjustment, with generational
improvement scale MP-2020 applied from 2013
10% of 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 15%50-54 5%
52-54 20% 55 40%
55-64 25% 56-64 25%
65-69 40% 65-69 40%
70+100% 70+100%
17 | P a g e
Village of Oak Brook Police 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 0.00%
30 0.14%
40 0.42%
50 0.71%
60% 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 10.40%
30 5.60%
40 1.90%
50 1.50%
Marital Status and Ages 80% of participants are assumed to be 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 Police Pension Fund
GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021
Plan Provisions
Eligibility for Participation
Police Officers 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 $1,000 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 the Accrued Benefit of 2.5% of final salary times service shall be paid at age 60.
For those hired on or after January 1, 2011 the Accrued Benefit is reduced by 0.5% for each month prior to age 55.
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.
19 | P a g e
Village of Oak Brook Police Pension Fund
GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2021
Plan Provisions
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 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
provided to the survivor.
For those hired on or after January 1, 2011, a benefit equal to the greater of 54% of final salary and of 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 police officer 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 Police 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 date of hire.
Employee Contributions
9.91% of Compensation
COLA
Eligibility 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 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