Submitted By
Steve Drazner, CFO
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Approving a Professional Services Agreement for Police and Firefighters’ Pension Plan Actuarial Services with Lauterbach & Amen, LLP for Fiscal Years Ending December 31, 2023, 2024, and 2025 for a Total Amount Not to Exceed $37,020, Authorizing its Execution and Waiving the Bid Process for the Agreement
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Overview
Overview
The Village has contracted with Lauterbach & Amen, LLP to provide Police and Firefighters’ Pension Plan actuarial valuations for the last six fiscal years, the most recent of which ended December 31, 2022. Although downstate public safety pension investments have been consolidated at the State level, actuarial calculations are still required to determine an annual levy amount for the Village’s contribution to the plans.
Lauterbach & Amen already provides each pension plan with bookkeeping/accounting services and having the same firm perform the actuarial valuations creates a great deal of synergy and efficiency. Staff, therefore, recommends foregoing the typical RFP process and engagement with Lauterbach & Amen for another three-year term.
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Recommendation
Recommendation
Adopt the Resolution.
Background
Lauterbach & Amen, LLP is currently the external accounting firm used by the Village’s Police and Fire Pension Boards. In addition, the firm has been performing the Village’s engagements for public safety pension actuarial valuations and OPEB services. The last contract was for a three-year term covering the fiscal years ending December 31, 2020, 2021, and 2022.
The firm has provided the Village with consistent high-quality services, and CFO Drazner recommends remaining with Lauterbach & Amen for another three-year term. The combined proposed fees for 2023, 2024, and 2025 for actuarial valuation services total $37,020 compared to $29,400 under the prior contract equating to an approximate 26% increase. Along with inflation, the primary reason for the increase is due to new actuarial standards requiring additional calculations which were not in place when the last contract was executed.
The proposed fees by year are:
2023 $11,860
2024 $12,340
2025 $12,820
Total $37,020
Fiscal Impact
Annual expenditures range from $11,860 (FY23) to $12,820 (FY25). This will be appropriated in Finance external support 1001.41300.101.530667
DEI Impact
N/A
Alternatives
Reject the recommendation and request staff go through the RFP process
Previous Board Action
RES 20-187
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A