Agenda Item:
title
Review of the Village of Glencoe Police and Fire Pension Actuarial Reports that Support the Tax Levy for the Year Beginning January 1, 2026 and ending December 31, 2026
memo
Staff Contact: Nikki Larson, Deputy Village Manager/Chief Financial Officer, Margaret Schwarz, Assistant Chief Financial Officer
Purpose and Actions Requested: Staff requests review and discussion by the Finance Committee of the Village of Glencoe Police and Fire Pension Actuarial Reports that support the tax levy for the year beginning January 1, 2026 and ending December 31, 2026
Budget Impact: Budgeted
Strategic Priority Addressed: Workplace of Excellence, Economic Vitality
body
BACKGROUND AND ANALYSIS
The Village of Glencoe engages with Foster & Foster Actuaries and Consultants, a private actuarial firm, to conduct an annual analysis of the Village's Police and Fire Pension Funds to determine the annual required contribution into each fund. A summary of their analysis follows.
Police Pension Fund
The Police Pension Fund report reflects an ending actuarial value of assets in the fund of $48.0 million, which is an increase over last year's ending balance of $45.5 million, an increase of approximately $2.6 million. It should be noted that the market value of the fund increased from $45.0 million to $52.0 million, an increase of approximately $7.1 million. The reason these two are different is because market value reflects the market price for the investment portfolio at a single point in time (i.e. December 31) and the actuarial value of assets recognizes gains and losses in market value over a five-year period. This means that the $3.4 million gain will be incorporated into the actuarial value of assets over the next five years, smoothing any sharp increases in the levy requirement over that time. The increase in market value is largely attributable to market conditions at the end of Calendar Year 2026, with an investment return that outperformed the benchmark. In...
Click here for full text