Northlake says his police pension fund is 84% ​​funded

A memorial honoring slain Northlake officers John Nagle and Anthony Perri which stands outside the Northlake Police Department. | Case

Tuesday, August 16, 2022 || By Michel Romain || @maywoodnews

As Illinois municipalities scramble to have their local public safety pension funds nearly fully funded by 2040, as required by a 2011 state law, one suburb in the area is already nearly the.

Northlake officials announced Aug. 5 that the city’s police pension fund reached an 84% funded level as of December 2021. They said the pension fund’s latest actuarial study confirmed the funded level. high of the fund.

This is a marked improvement from about a decade ago. In 2014, the Northlake Police Pension Fund was only 55% funded, city officials explained in a Facebook post.

According to the Better Government Association (BGA) Police and Fire Pension Fund database, Northlake’s pension fund was around 73% funded in 2004. From around 2007, however, pension levels Police pension funding began to decline, falling to about 60% in 2016, when the fund had assets of $18.2 million and liabilities of $30.2 million.

Municipalities across the state have seen their public safety pension funds shrink over the past 20 years, the BGA reported.

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“From 1999 to 2009, funding levels dropped year after year. Starting at 77.3% in 1999, aggregate funding levels bottomed out in 2009 with a funding ratio of 51.1%,” the BGA reported. “In 2016, the overall funding level — the combined average of all Illinois police and fire department funding — was 57.6 percent.”

Declining funding levels statewide prompted state lawmakers to pass a law in 2011 that requires public safety pension funds to be 90% fully funded by 2040. Municipalities that do not meet the target could face heavy financial penalties.

“By exercising fiscal discipline over the past few years, the city has been able to achieve the current high level of funding,” Northlake city officials said in the Facebook post.

In recent years, the city’s contribution to the police pension fund has increased from $1.4 million in 2017 to $1.7 million in 2022. About 90 percent of the money to fund pensions comes from property taxes while the remaining 10% comes from video. gaming revenue, according to the city’s 2022 budget.

The Northlake Firefighters Pension Fund is approximately 80% fully funded. This fund is administered by the Northlake Fire Protection District, which collects its own taxes.

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Dolores W. Simon