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Record of Proceedings

Committee of the Whole Meeting - June 9, 2026: Police Pension Fund Actuarial Valuation Review

Village Board & Commissions — Tuesday, June 9, 2026
BodyOswego, Illinois
SessionVillage Board & Commissions
DateTuesday, June 9, 2026
StatusFILED
Video Record
0:00 / 37:38

Transcript — Verbatim
0:00

All right, welcome to our committee of the whole.

0:02

Roll call, please.

0:04

President Coffin.

0:05

Here.

0:06

Trustee Cooper.

0:07

Here.

0:07

Trustee Hughes.

0:08

Here.

0:08

Trustee Koenig.

0:10

Here.

0:10

Trustee Novi.

0:11

Here.

0:12

Trustee Torres.

0:14

Here.

0:14

Trustee McCarthy and Lang absent.

0:16

Trustee McCarthy Lang would like to attend electronically this evening.

0:21

She has submitted the necessary documents to the village clerk.

0:24

So I'll accept a motion to approve trustee Karen McCarthy Lang to electronically attend the June 9th of 2026.

0:30

Committee of the whole meeting.

0:32

So moved.

0:33

Roll call, please.

0:35

Trustee Cooper.

0:36

Yes.

0:36

Trustee Torres.

0:37

Yes.

0:38

Trustee Novi.

0:39

Yes.

0:39

Trustee Conay.

0:40

Yes.

0:41

Trustee Hughes.

0:42

Yes.

0:44

Karen, can you hear us?

0:46

Yes, I can.

0:47

Thank you.

0:48

Alrighty.

0:49

First up, we're going to open the public forum.

0:51

If there's anyone wishing to address the public and the board, please feel free to come forward now.

1:04

Seeing nobody, we will close the public forum and we're going to move on to new business.

1:08

And under new business, we have item F1.

1:10

Andrea.

1:13

Annually, there are several actuarial reports that are required to be produced for the village.

1:32

Welcome.

1:34

All right, thank you.

1:35

Appreciate uh everyone listening in tonight to this uh riveting, exciting uh study of the actuarial reporting for the police pension fund.

1:44

Um as Andrea mentioned, we do a few different reports.

1:46

The primary focus of tonight's discussion is gonna be on the actual funding report, specifically for the police pension fund.

1:53

Um so without further ado, we'll get started with this year's results.

1:58

So in front of you, you should see uh page two of my presentation, which will show you the key result for this year's valuation.

2:04

So if you're gonna listen to me say one number all night tonight, um it would be the following one, which is the recommended contribution uh for this upcoming year from the village to the police pension fund is two million five hundred and eight thousand two hundred and seven dollars.

2:17

Uh year over year, uh it's a pretty significant increase in that recommended amount uh to the tune of about two hundred and twenty-five thousand dollars, or about a nine point eight five percent year over year increase.

2:28

So in a given year, we generally expect the contribution to go up by roughly three to four percent.

2:32

Um so I'll get into those factors in just a moment that led to the bigger increase this year.

2:37

You can see a few of the key metrics that are used in the development of that contribution shown on this page, notably your fair value of assets, that's your asset value in the police pension fund as of December 31, 2025, and the amount of 61,507,754.

2:54

Moving a few lines down there, you can find your unfunded liability.

2:57

Uh it's basically just the difference between the accrued liability and the actual value of assets.

3:02

And that's one way to think about that is that's how much it would take to get the fund to be fully funded if you were to, you know, fully funded overnight.

3:09

Um so it's about 15.7 million dollars uh that you kind of that gap to clear to get to 100% funded.

3:16

That translates to your funded percent this year on an actuarial value basis uh at 78.07% funded.

3:24

The average police pension fund in the state of Illinois uh sits at about 64% funded.

3:29

Um so you guys are a little bit ahead of the state average in Illinois.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability█████████████████████████████████████████████76%
Procedural███████12%
Technology and Innovation█████8%
Miscellaneous██4%
Summary of Proceedings

Committee of the Whole Meeting Summary - June 9, 2026

The Oswego Village Committee of the Whole met on June 9, 2026, at 6:00 PM. The primary agenda item was a presentation and discussion of the annual actuarial valuation of the Police Pension Fund, led by the village's actuary from Watterbach & Eamon. The meeting also included a closed session for legal and personnel matters.

Public Comments & Testimony

  • No members of the public addressed the board during the public forum.

Discussion Items

  • Police Pension Fund Actuarial Valuation (F.1): Andrea introduced the item. The actuary presented the annual funding report for the Police Pension Fund as of December 31, 2025.
    • Recommended Contribution: The recommended village contribution for the upcoming year is $2,508,207, a 9.85% increase (approximately $225,000) from the prior year. This is higher than the typical 3-4% annual increase.
    • Funded Status: The fund is 78.07% funded on an actuarial value basis (down slightly from 78.41%), which is above the state average of ~64%. The unfunded liability is $15.7 million. The amortization period is 13.29 years to full funding.
    • Reasons for Increase: The primary driver was actuarial experience/demographic changes ($103,664 increase), including six new hires, one retirement, one disability, and three terminations. Salary increases were higher than expected ($48,000 increase). Investment returns were 17.44% ($9.1 million), exceeding the 6.5% assumption, which provided a $7,233 reduction.
    • Tier 2 Benefit Enhancement Discussion: The actuary discussed Senate Bill 1937, which proposes enhancing Tier 2 benefits and extending the statutory funding deadline to 90% funded by 2055. Trustee Kevin asked about impacts. The actuary stated that if the bill passes, the village should not adopt the extended funding ramp but instead maintain its current, more aggressive 15-year layered amortization to 100% funding. The actuary compared the extended ramp to paying only interest on a credit card, which would increase total cost. The current policy keeps the village ahead of state minimums.
    • Asset Smoothing: The actuarial value of assets ($55.8 million) is lower than fair value ($61.5 million) due to a five-year smoothing of investment gains. This provides a buffer against future poor returns.
    • Solvency Test: The GASB insolvency test shows the fund can pay all future benefits for current members in full.
    • Risk Metrics: The fund is in a healthy position with assets ($61.5M) exceeding inactive liability ($43.3M). Benefit payments are only 3.71% of assets, well below the expected 6.5% return.
    • Future Staffing: The valuation is based on current 57 active members and does not anticipate future hiring, though the actuary noted separate analyses could be run.

Key Outcomes

  • No formal votes were taken on the pension presentation; it was for informational purposes only.
  • The board unanimously approved (7-0) Trustee Karen McCarthy Lang's request to attend electronically.
  • The board moved into closed session for pending litigation, personnel, collective bargaining, and property matters (approved via roll call, all yes).

Meeting Transcript

All right, welcome to our committee of the whole. Roll call, please. President Coffin. Here. Trustee Cooper. Here. Trustee Hughes. Here. Trustee Koenig. Here. Trustee Novi. Here. Trustee Torres. Here. Trustee McCarthy and Lang absent. Trustee McCarthy Lang would like to attend electronically this evening. She has submitted the necessary documents to the village clerk. So I'll accept a motion to approve trustee Karen McCarthy Lang to electronically attend the June 9th of 2026. Committee of the whole meeting. So moved. Roll call, please. Trustee Cooper. Yes. Trustee Torres. Yes. Trustee Novi. Yes. Trustee Conay. Yes. Trustee Hughes. Yes. Karen, can you hear us? Yes, I can. Thank you. Alrighty. First up, we're going to open the public forum. If there's anyone wishing to address the public and the board, please feel free to come forward now. Seeing nobody, we will close the public forum and we're going to move on to new business. And under new business, we have item F1. Andrea. Annually, there are several actuarial reports that are required to be produced for the village. Welcome. All right, thank you. Appreciate uh everyone listening in tonight to this uh riveting, exciting uh study of the actuarial reporting for the police pension fund. Um as Andrea mentioned, we do a few different reports. The primary focus of tonight's discussion is gonna be on the actual funding report, specifically for the police pension fund. Um so without further ado, we'll get started with this year's results. So in front of you, you should see uh page two of my presentation, which will show you the key result for this year's valuation. So if you're gonna listen to me say one number all night tonight, um it would be the following one, which is the recommended contribution uh for this upcoming year from the village to the police pension fund is two million five hundred and eight thousand two hundred and seven dollars. Uh year over year, uh it's a pretty significant increase in that recommended amount uh to the tune of about two hundred and twenty-five thousand dollars, or about a nine point eight five percent year over year increase.

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