Title
title
Review and Discussion of the Firefighters’ and Police Pension Funds Actuarial Reports in Preparation for the Fiscal Year 2027 Budget and Property Tax Levy
..end
Introduction
overview
The Finance Committee will review the Firefighters’ and Police Pension Funds actuarial reports at its October 1, 2026 meeting. Todd Schroeder, Partner at Lauterbach & Amen, will present the actuarial findings and contribution recommendations and answer questions. The discussion will inform the Village’s FY2027 budget, property tax levy, and ongoing pension funding planning.
end
body
Recommended Action
This item is for presentation and discussion only. No formal action is requested.
Prior Board Action
On September 3, 2026, the Finance Committee reviewed Stifel’s analysis of the Firefighters’ Pension Fund and the Village’s broader pension funding framework, including contribution timing, revenue reprogramming, and potential impacts on the property tax levy and capital financing. The Committee provided direction for further analysis, including refinement of Scenario 5, while retaining 100% funding by 2040 as the planning benchmark. The Police Pension Fund actuarial report was pending at that time. Staff will evaluate funding options within the context of the Village’s overall operating and capital needs as part of FY2027 budget development. No final financing strategy has been adopted by the Village Board.
Background
Lauterbach & Amen prepared funding and GASB 67/68 actuarial valuations for both pension funds as of January 1, 2026, using data as of December 31, 2025. The reports are dated September 23, 2026. The funding valuations establish recommended employer contributions; the GASB reports support financial statement reporting for the year ended December 31, 2025.
On an actuarial asset basis, the Firefighters’ Pension Fund’s funded ratio increased from 47.93% to 49.72%, with unfunded actuarial accrued liability of $74,472,182. The Police Pension Fund’s funded ratio increased from 59.78% to 60.88%, with unfunded actuarial accrued liability of $84,207,533 (funding reports, page 8).
The actuary will explain changes in contributions, investment and demographic experience, and the funding methods used. The recommended contribution methods target 100% funding over 15 years for Firefighters and 16 years for Police, with five-year asset smoothing and a 10% corridor (Firefighters funding report, page 30; Police funding report, page 29).
Timing Considerations
The October 1 discussion will inform development of the FY2027 budget and the 2026 property tax levy. Staff will incorporate the actuarial recommendations into budget and levy planning, guided by the Village Board’s goal of achieving 100% pension funding by 2040.
Financial Impact
This report-only item does not authorize expenditures or establish a levy. Page 8 of each funding report presents the following recommended contributions:
|
Pension fund |
Prior valuation |
Current valuation |
Increase |
|
Firefighters |
$7,474,204 |
$7,778,704 |
$304,500 |
|
Police |
$8,276,706 |
$8,621,459 |
$344,753 |
|
Combined |
$15,750,910 |
$16,400,163 |
$649,253 |
The combined increase is approximately 4.12%. These are valuation-to-valuation comparisons, not confirmed increases to the adopted budget or levy. Final funding amounts and revenue sources remain subject to budget review and Board action.
Operations Impact
Finance staff has incorporated the actuarial recommendations and subsequent policy direction into budget development and financial planning. No additional staffing or operational changes are requested with this item.
DEI Impact
No direct DEI impact is identified for this report-only item. The affordability of any associated revenue decisions and their effects on residents will be considered during the broader budget and levy process.
Community Input
Community members may provide input through the public meeting process.
Staff Recommendation
Staff recommends receiving and discussing the reports and providing feedback for future budget and levy recommendations.
Advantages:
• This action supports informed pension funding decisions during budget preparation.
Disadvantages:
• Contribution timing and any requested follow-up analysis will still need to be resolved before final funding decisions.
Alternatives
The Finance Committee can request additional actuarial analysis or defer the discussion.
Advantages:
• This action allows further review of assumptions or funding options.
Disadvantages:
• This action reduces the time available to incorporate feedback into FY2027 budget and levy planning.
Anticipated Future Actions
Staff will incorporate the actuarial recommendations and Committee feedback into future Village Board consideration of pension funding, the FY2027 budget, and the 2026 property tax levy. Any necessary funding approvals will be presented separately.
Prepared By: Louis Hall-Makarewicz, Deputy Chief Financial Officer
Reviewed By: Kevin Bueso, Chief Financial Officer
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Oak Park Firefighters’ Pension Fund - Funding Actuarial Valuation as of January 1, 2026
2. Oak Park Police Pension Fund - Funding Actuarial Valuation as of January 1, 2026
3. Oak Park Firefighters’ Pension Fund - GASB 67/68 Actuarial Valuation as of January 1, 2026
4. Oak Park Police Pension Fund - GASB 67/68 Actuarial Valuation as of January 1, 2026
5. Presentation