Submitted By
Steven Drazner, CFO
Reviewed By
LKS
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, 2017, 2018, and 2019 in a Total Amount not to Exceed $27,000 and Authorizing its Execution
End
Overview
Overview
The Village was under contract with the firm Serota and Associates to provide Police and Firefighters' Pension Plan actuarial valuation services for the fiscal years ending December 31, 2015 and 2016. Unlike the Illinois Municipal Retirement Fund which pools together resources from all Illinois municipalities (with some exceptions) and determines the annual Village contributions for eligible non-public safety employees, pursuant to State of IL statute, public safety pensions (i.e. police and fire) are independently managed rather than pooled together and thus, each plan requires an annual actuarial valuation to determine the recommended municipal contribution.
Regardless of whether a pension board retains its own independent actuary (as has been the case with the Village's fire pension), it is usually standard practice for a municipality to engage the services of an actuary to determine the annual recommended amount using agreed upon actuarial assumptions.
Body
Staff Recommendation
Approve the Resolution.
Fiscal Impact
The combined (for both pension valuations) not-to-exceed fees for the 2017, 2018, and 2019 actuarial valuation services are as follow:
2017- $9,000
2018- $9,000
2019- $9,000
This expense has been budgeted and will be paid from the finance external support account #1001.41300.101.530667
Background
A request for proposal was issued to obtain proposals on actuarial services for a three year term. The RFP was distributed directly to firms known to provide this service for municipal pensions as well as posted on the Village website and DemandStar.
A total of seve...
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