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Police Actuarial Valuation Report 2022Village of Oak Brook Police Pension Fund December 31, 2022 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, 2022 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, 2022 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 05/5/2023 Matthew Branding, FSA, EA, CERA Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Actuarial Certification 4 | P a g e John Toweson, ASA Plan fiduciary net position as a percent of the total pension liability 55.50% 75.33% Net Pension Liability The components of the net pension liability at December 31 Total pension liability 72,486,028 66,163,676 $$ Plan fiduciary net position (40,227,392)(49,838,078) Net pension liability 32,258,636 16,325,598 $$ Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Summary 12/31/2022 12/31/2021 $$ 794,601 4,160,860 Pension Expense for the Fiscal Year Ended December 31 Active plan members Inactive plan members entitled to but not yet receiving benefits Inactive plan members and beneficiaries currently receiving benefits Plan Membership The total pension liability was determined based on the plan membership as of December 31 Investment rate of return, including inflation, and net of investment expense Salary increases, including inflation Inflation Actuarial Assumptions The total pension liability was determined using the following actuarial assumptions 41 47 10 2.50% 2022 Total members 98 2.50% 2021 44 8 40 92 Graded 6.75% 3.75% 6.75% 5 | P a g e Assets 12/31/2022 Securities lending cash collateral 0 0 Total cash 4,440,900 417,236 $$ Receivables: Contributions 0 0 $ Due from broker for investments sold 0 0 Investment income 0 95,738 Other 399,527 3,443 Total receivables 399,527 99,181 $$ Investments: Cash and deposits 4,440,900 417,236 $$ Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Statement of Fiduciary Net Position $ 12/31/2021 Money Market Mutual Funds $$ 0 2,353,939 Fixed Income 0 12,927,322 Stock Equities 0 0 Mutual Funds 34,071,371 0 Illinois Police Pension Investment Fund 0 35,389,570 Total investments Total assets Liabilities Payables: Investment management fees Due to broker for investments purchased Collateral payable for securities lending Other Total liabilities Net position restricted for pensions 35,389,570 40,229,997 0 0 0 2,605 2,605 0 40,227,392 49,352,632 49,869,049 0 0 30,971 30,971 49,838,078 $ $ $ $ $$ $ $ $ $ 6 | P a g e Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 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 lendingSecurities lending income Less securities lending expense Net income from securities lending Net investment income Other Total additions DeductionsBenefit 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 12/31/2022 12/31/2021 2,052,526 396,203 0 2,448,729 (8,340,710) 0 (419,288) (57,747) (8,340,710) 0 (5,891,981) 0 (7,863,675) 0 2,133,229 572,232 0 2,705,461 4,940,818 825,760 (86,181) 5,680,397 0 0 0 5,680,397 0 8,385,858 (9,610,686) 44,446 3,674,259 0 3,718,705 49,838,078 40,227,392 44,837,122 49,838,078 3,384,902 0 3,332,676 52,226 5,000,956 $ $ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $ $ $$ 7 | P a g e Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 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 12/31/2022 931,194 4,404,897 0 2,598,147 2,062,373 (3,674,259) 66,163,676 72,486,028 6,322,352 2,052,526 396,203 0 (8,340,710) (3,674,259) (44,446) 0 (9,610,686) 55.50% 49,838,078 40,227,392 32,258,636 925,403 4,277,324 0 220,178 (35,250) (3,332,676) 2,054,979 64,108,697 66,163,676 12/31/2021 2,133,229 572,232 0 5,680,397 (3,332,676) (52,226) 0 5,000,956 44,837,122 49,838,078 16,325,598 75.33% 12/31/2020 869,540 4,215,181 0 (698,928) (324,515) (3,060,323) 1,000,955 63,107,742 64,108,697 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) 2,635,125 60,472,616 63,107,741 (2,904,890) 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% $ $ $ $$ $$$ $$ 750.03% $ $ 386.70% $ $ $ $ $ $$ $$ $ $$ $$ 4,300,995 $3,932,044 461.15%557.58% 4,221,825 $4,179,054 657.37% 3,849,863 $ 58.15% 25,307,972 $ 35,164,644 $ 37,779,816 (2,615,172)$ 0 (54,667) (2,531,903) (2,385,632) 0 410,316 1,946,714 $ 60,472,616 $ 58,193,184 2,279,432 (2,531,903) (182,060) 199,802 0 3,902,722 890,871 $ 12/31/2018 8 | P a g e Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Schedule of Changes in Net Pension Liability and Related Ratios Total pension liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of member contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - member Contributions - nonemployer contributing member Net investment income Benefit payments, including refunds of member contributions Administrative expenses Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Net pension liability as percentage of covered- employee payroll 12/31/2017 12/31/2016 12/31/2015 833,296 3,650,633 0 (347,589) 1,964,218 (2,315,047) 3,785,511 54,407,673 58,193,184 1,748,025 386,727 0 4,461,837 (2,315,047) (35,776) 0 4,245,766 33,534,050 37,779,816 20,413,368 64.92% 800,389 3,563,145 0 (856,825) 96,439 (2,364,839) 1,238,309 53,169,364 54,407,673 1,527,927 383,238 0 2,176,018 (2,364,839) (39,522) 0 1,682,822 31,851,228 33,534,050 20,873,623 61.63% 816,276 3,338,238 0 (48,037) 1,597,133 (2,346,686) 3,356,924 49,812,440 53,169,364 1,336,683 358,499 0 (429,965) (2,346,686) (38,647) 0 (1,120,116) 32,971,344 31,851,228 21,318,136 59.91% $$$ $$$ $ $ $ $$ $$ $$ 3,892,216 $3,829,224 $ 524.47%545.11% $$$ 3,735,548 $ 570.68% 9 | P a g e Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Pension Expense Service cost Interest on total pension liability Projected earnings on pension plan investments Changes of benefit terms Employee contributions Pension plan administrative expense Other changes Current period recognition of deferred outflows/(inflows) of resources Differences between Expected & Actual Experience in measurement of the Total Pension Liability Changes of assumptions Differences between Projected & Actual Earnings on Pension Plan Investments Total 931,194 12/31/2022 4,404,897 (3,321,209) 0 (396,203) 44,446 0 619,620 1,613,339 4,160,860 264,776 12/31/2021 925,403 4,277,324 245,143 0 (572,232) 30,472 (1,160,160) 0 52,226 (3,003,575) 794,601 $ $ $ Fiscal year ending $ $ $ 10 | P a g e Differences between expected and actual experience in measurement of the total pension liability for fiscal year ending: Initial Balance Initial Amortization Period Annual Recognition 12/31/2022 Balance December 31, 2022 2,598,147 519,629 2,078,518 $$$5.0 December 31, 2021 220,178 44,036 132,106 $$$5.0 December 31, 2020 (698,928)(139,786) (279,570)$$$5.0 December 31, 2019 778,897 155,779 155,781 $$$5.0 December 31, 2018 199,802 39,962 0 $$$5.0 2,086,835 619,620 $$ Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Changes in assumptions for fiscal year ending: Initial Balance Initial Amortization Period Annual Recognition 12/31/2022 Balance December 31, 2022 2,062,373 412,475 1,649,898 $$$5.0 December 31, 2021 (35,250)(7,050) (21,150)$$$5.0 December 31, 2020 (324,515)(64,903) (129,806)$$$5.0 December 31, 2019 (196,672)(39,334) (39,336)$$$5.0 December 31, 2018 (182,060)(36,412) 0 $$$5.0 1,459,606 264,776 $$ Differences between projected and actual earnings on pension plan investments for fiscal year ending: Initial Balance Initial Amortization Period Annual Recognition 12/31/2022 Balance December 31, 2022 11,661,919 2,332,384 9,329,535 $$$5.0 December 31, 2021 (2,676,822)(535,364) (1,606,094)$$$5.0 December 31, 2020 (1,673,637)(334,727) (669,456)$$$5.0 December 31, 2019 (4,172,787)(834,557) (834,559)$$$5.0 December 31, 2018 4,928,023 985,603 0 $$$5.0 6,219,426 1,613,339 $$ 11 | P a g e Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Net difference between projected and actual earnings on pension plan investments Changes of Assumptions Differences between expected and actual experience Deferred Outflows of Resources Deferred Inflows of Resources 2,366,405 1,649,898 9,329,535 (279,570) (190,292) (3,110,109) 13,345,838 (3,579,971)$ $ $ $$ $ $ $ The balances as of December 31, 2022 of the deferred outflows/(inflows) of resources will be recognized in pension expense for the fiscal year ending December 31. Thereafter $ 1,508,580 $ 2,226,694 $ 2,766,106 $ 3,264,487 $ 0 $ 0 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 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, 2022 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, 2022 Rate of Return Asset class Target allocation Long-term expected real rate of return 0.0% 0.00% 0.00% 0.0% 0.0% 0.00% 0.0% 0.00% 100.0% 4.20% 0.00% 0.0% 100.0% Money Market Mutual Funds Fixed Income Stock Equities Mutual Funds Illinois Police Officers' Pension Investment Fund Cash Total Long-term expected rate of return is 6.75%. Money-weighted rate of return is -16.97%. 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, 2022 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 42,208,042 32,258,636 24,141,166 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, 2022 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 2,097,159 44,633 2,052,526 2022 1,708,330 1,527,927 180,403 2016 2021 2020 2019 2018 2017 2015 2014 2013 0 366,201 0 0 0 213,550 225,849 33,982 2,133,229 1,803,644 2,057,112 1,946,714 1,748,025 1,336,683 1,259,824 1,171,537 2,133,229 2,169,845 2,057,112 1,946,714 1,748,025 1,550,233 1,485,673 1,205,519 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,221,825 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 48.62%51.05%45.87%53.43%50.02% 45.65%40.90%36.81%35.01%32.13% 15 | P a g e Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Actuarial Assumptions for Total Pension Liability The total pension liability as of December 31, 2022 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 Crossover N/A Inflation 2.50% Annual Pay Increases 3.50% to 11.00%, varying by service Measurement Date December 31, 2022 Ad-hoc Cost-of-Living Increases 3.0% (1.25% for those hired on or after January 1, 2011) Mortality Rates Healthy (pre-commencement)Pub-2010 Public Safety Employee Mortality Table with 1.15 adjustment for males, with generational improvement scale MP-2021 applied from 2010 Healthy (post-commencement)Pub-2010 Public Safety Employee Mortality Tab with 1.15 adjustment for males, with generational improvement scale MP-2021 applied from 2010 For survivors, Pub-2010 Public Safety Survivor Mortality Table with 1.15 adjustment for females, with generational improvement scale MP-2021 applied from 2010 Disabled Pub-2010 Disabled Retiree Mortality Table with 1.08 adjustment for males, with generational improvement scale MP-2021 applied from 2010 All other assumptions As described in the assumptions section of the actuarial determined contribution Experience Study All other assumptions are described in the Illinois Police Officers' Pension Investment Fund Actuarial Experience Study dated Mrch 4, 2022 reflecting experience for the years 2017- 2020. 16 | P a g e Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 Actuarial Assumptions for Actuarially Determined Contributions Actuarial Cost Method Amortization Method Asset Method Interest Rates Inflation Annual Pay Increases Ad-hoc Cost-of-living Increases Mortality Rates Healthy Disabled Retirement Rates Entry Age Method Closed level percentage of payroll amortization of 100% of the Unfunded Actuarial Accrued Liability using a 2.75% payroll growth assumption over the period ending on December 31, 2040 (19-year amortization in 2022) 5 year smoothing of asset gains and losses 6.75%, net of investment and administrative expenses 2.50% 3.75% 3.0% (1.25% for those hired after 1/1/2011) RP-2014 Mortality Table with blue collar adjustment, projected generationally with scale MP-2021 from 2013 115% of RP-2014 Mortality Table with blue collar adjustment, projected generationally with scale MP-2021 from 2013 10% of deaths are assumed to be service related 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, 2022 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 Expense Load Funding Policy 80% of participants are assumed to be married with female spouses 3 years younger. Equal to the administrative expenses paid in the prior year. Statutory minimum contribution, with additional funding at the discretion of the Village. 18 | P a g e Village of Oak Brook Police Pension Fund GASB Nos. 67 & 68 Report as of Fiscal Year Ending December 31, 2022 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, 2022 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, 2022 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