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HomeMy Public PortalAbout11-08-2021 COW Agenda and PacketCommittee of the Whole Workshop of the President and the Board of Trustees Monday, November 08, 2021 7:00 PM 24401 W. Lockport Street Plainfield, IL 60544 In the Boardroom Agenda A.CALL TO ORDER, ROLL CALL, PLEDGE B.APPROVAL OF THE MINUTES B.1.Approval of the Minutes of the Committee of the Whole Workshop held on October 25, 2021. 10-25-2021 COW Minutes C.PRESIDENTIAL COMMENTS D.TRUSTEES COMMENTS E.PUBLIC COMMENTS (3-5 minutes) F.WORKSHOP F.1.OLD TOWN PROJECT UPDATE Old Town Project Staff Report F.2.YEAR 2021 TAX LEVY Staff will present the Village’s 2021 Tax Levy information as well as drafts of the Fiscal Year 2023 Audit, Tort Immunity and Police Pension Budgets. 11-8-21 Tax Levy Workshop FY 2022-2023 Draft Budget Tort Audit Pension Actuarial Valuation Report - Plainfield Police - 2021 REMINDERS - •November 11 Village Offices Closed for Veterans Day •November 15 Village Board Meeting – 7:00 p.m. •November 16 Plan Commission – 7:00 p.m. •November 22 Next Committee of the Whole Workshop – 7:00 p.m. 1 Committee of the Whole Workshop of the President and the Board of Trustees Page - 2 2 Minutes of the Committee of the Whole Workshop of the President and the Board of Trustees Held on October 25, 2021 In the Boardroom Mayor Argoudelis called the meeting to order at 7:00 p.m. Board Present: Mayor Argoudelis, Trustee Wojowski, Trustee Benton, Trustee Kalkanis, Trustee Larson, and Trustee Ruane. Board absent: Trustee Calkins. Others Present: Traci Pleckham, Interim Village Administrator; Michelle Gibas, Village Clerk; Jon Proulx, Planning Director; Lonnie Spires, Building Official; Dan Schug, Engineer; Derek Wold, Engineer; Allen Persons, Public Works Director; Randy Jessen, Public Improvements Superintendent; Scott Threewitt, Lead Engineer; and, John Konopek, Chief of Police. There were 2 persons in the audience. Trustee Ruane moved to approve the Minutes of the Committee of the Whole Workshop held on October 11, 2021. Second by Trustee Benton. Voice Vote. All in favor, 0 opposed. Motion carried. PRESIDENTIAL COMMENTS No Comments. TRUSTEE COMMENTS Trustee Benton commented about the water improvements at Vintage Harvest. PUBLIC COMMENTS Rick Pach expressed opposition to the 143rd Street East Extension Project. WORKSHOP 1)2021-2022 BUDGET UPDATE Mrs. Traci Pleckham, Interim Village Administrator, gave an update on the current fiscal year budget. Mrs. Pleckham reviewed the general fund revenues including municipal sales tax, local income tax, local use tax, personal property replacement tax, property tax, refuse, permit, MFT, and franchise. Interim Administrator Pleckham also gave an overview of the General Fund expenses, and reviewed the 2020 tax levy and tax rate distributions. 2)2022-2023 DRAFT FISCAL YEAR BUDGET Mr. Randy Jessen and Mr. Scott Threewitt gave a status update on the Village’s current and proposed capital projects. Staff highlighted the 2022 Street Improvement Program., 143rd Street corridor including the 143rd Street East Extension Project, 143rd Street West Extension Project, 143rd Street (Route 30), and 143rd Street/CN Railroad grade separation; Indian Boundary Road Structure Replacement, 127th Street & Plainfield/Naperville Road traffic signal, Renwick Road improvements, Renwick Road pedestrian improvements. Staff also reviewed DCEO Grant projects, IL Route 59 Pedestrian Accommodations, Woodfarm Road, County Line/Route 126, I-55 Interchange Study, and Riverwalk Court Traffic Signal Study. Staff also identified updating the Transportation Plan. Mayor Argoudelis thanked staff and read the reminders. Trustee Ruane moved to adjourn. Second by Trustee Benton. Voice Vote. All in favor, 0 opposed. Motion carried. The meeting adjourned at 8:12 p.m. Michelle Gibas, Village Clerk 3 MEMORANDUM To: Allen Persons – Director of Public Works From: Randall Jessen – Superintendent of Public Improvements Date: November 3, 2021 Re: Old Town – Public Information Meeting Summary Background Findings Staff held three Public Information meetings regarding the proposed improvements for the Old Town project. The dates of the meetings were 6/9/21, 8/4/21 and 10/6/21. The first meeting was at the Village Green Park shelter and the last two were held at the Boy Scout Park shelter on Ottawa Street; generally, from 5-7pm. The first meeting covered the Old Town project, the Illinois Street reconstruction project and the future Rt 59 viaduct landscape project. The second and third were focused on Old Town. In total, there were five alternatives for Lockport Street and three for Eastern Avenue. Over the last few meetings, the alternatives have been reduced to two. The options that were eliminated posed too high of an impact to the trees and parking opportunities from the overall width of the pavement and location of on-street bike lanes. The two that remain essentially occupy the same footprint as the current roadway alignment being about 3’ wider overall than existing. The alternatives for Eastern Avenue have been reduced to two as well and include the addition of curb and gutter along with storm sewer. The main difference is the inclusion of on-street parking or no parking. Traffic calming measures: Currently, all the alternatives include numerous bump outs at the intersections of Lockport and Bartlett, Center, Eastern and Hartong and well as a bump out on Eastern between Lockport and 126 to help slow down traffic. Another concept could shift the parking from north to south on alternating blocks thereby aiding in the reduction of speed along the street. This would also address a few concerns about parking being solely on one side verses the other. A landscaped chicane is being evaluated for Lockport Street near the railroad tracks and Staff is considering a possible future traffic calming project on the east side of the railroad tracks as well. Alternative Comparisons - Statistics Lockport Street Alternative #1 Alternative #5 Trees removed 10 ea 10 ea Total diameter of trees 114 in 114 in Number of parking spaces (37 existing) 42 ea 42 ea Number of utility poles impacted 16 ea 15 ea Number of utility pedestals/handholes 4 ea 3 ea Overall road width edge to edge 32 ft 32 ft Multi-use path, concrete, 8' wide yes no Sidewalk, concrete, 5' wide yes yes 4 Eastern Avenue Alternative #1 Alternative #2 Trees removed 12 ea 12 ea Total diameter of trees 94 in 94 in Number of parking spaces 0 ea 42 ea Number of utility poles impacted 1 ea 10 ea Number of utility pedestals/handholes 7 ea 14 ea Overall road width edge to edge 25 ft 30 ft Multi-use path, concrete, 8' wide no no Sidewalk, concrete, 5' wide yes yes Board Consideration Regarding Design Staff is seeking input from the Mayor and Board regarding the design alternatives for Lockport Street and Eastern Avenue. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MEMORANDUM To: Mayor Argoudelis and the Board of Trustees From: Traci Pleckham – Interim Village Administrator Date: November 3, 2021 Subject: Year 2021 Tax Levy Attached please find the proposed 2021 tax levy calculations. Rather than calculating the tax levy based on maintaining the same levy dollar amount, staff has calculated the 2021 levy by maintaining the 2020 levy rate of .4669. Consistent with past Village Board direction, this levy rate has remained unchanged for the past eight years. Tax levy revenue and rate projections are largely a product of the Village’s overall Equalized Assessed Valuation (EAV). The EAV used in the property tax calculation averages the property owner’s assessed valuation over the past three-year period. Based on preliminary information received from Will and Kendall Counties, the overall estimated EAV has increased by approximately 4.5%. The Village’s official EAV will not be available until the spring of 2022. It is important to point out that the Village approves the annual tax levy based on dollars requested (not rate). Once the official EAV is available, the County Clerk then calculates the tax rate needed to produce the amount of dollars requested by each taxing district. Because of this, staff is using in its calculations a higher overall Equalized Assessed Value (EAV). This higher EAV estimate is to ensure that the Village captures the entire amount of the Village’s EAV, while still maintaining the 2020 levy rate of .4669. The 2021 levy represents a total request of $7,751,000 (or a 6.3% increase in revenues); however the actual dollar amount the Village will receive is anticipated to be less. As a reminder, the information provided is specific only to the Village of Plainfield’s portion of the property tax bills. The Village of Plainfield’s portion of the 2020 tax levy was 5.58%. Or, for every dollar paid in property taxes by Village residents, 5.58 cents is paid to the Village of Plainfield. The Village Board must approve the annual property tax levy ordinance and file in both Will and Kendall Counties prior to the last Tuesday in December. The proposed 2021 tax levy timeline is as follows: • November 15, 2021 Village Board Meeting: Motion to acknowledge the preliminary estimate of the 2021 tax levy in the amount of $7,751,000 • November 25, 2021: Newspaper publication of the Notice of the Public Hearing for the Tax levy • December 6, 2021 Village Board Meeting: Public Hearing on the proposed 2021 Tax Levy • December 6, 2021 Village Board Meeting: consideration of the 2021 Tax Levy Ordinance for the Village of Plainfield 26 2020 Equalized Assessed Valuation 1,551,500,615 Estimate of 2021 Equalized Assessed Valuation:1,660,105,658 2020 2020 Extended Recommended Rate Levy Levy Rate Levy Request Produced Percentage Corporate 3,067,413 0.1978 3,096,000 0.1865 39.9432% Police Protection 1,534,477 0.0989 1,645,000 0.0991 21.2231% Immunity 400,970 0.0226 685,000 0.0413 8.8376% IMRF 550,730 0.0354 575,000 0.0346 7.4184% Audit 40,318 0.0026 50,000 0.0030 0.6451% Police Pension 1,700,423 0.1096 1,700,000 0.1024 21.9327% Operating Levy 7,294,331 0.4669 7,751,000 0.4669 100.00% GO Bonds 0 0.0000 0 0.0000 Total Levy 7,294,331 0.4669 7,751,000 0.4669 Increase over 2020 Operating Levy 456,669 Increase over 2020 Total Levy 456,669 VILLAGE OF PLAINFIELD 2021 TAX LEVY WORKSHEET Recommended Levy 11/4/2021 27 Tax Rate % Village of Plainfield 0.4079 0.4297 0.4567 0.4669 0.4669 0.4669 0.4669 0.4669 0.4669 0.4669 5.58% Will County & Forest Preserve 0.6841 0.7244 0.7244 0.8186 0.8410 0.8295 0.8091 0.7881 0.7431 0.7231 8.64% School District 202 4.8618 5.2705 5.8323 6.2265 6.2622 6.2410 5.8941 5.7067 5.5732 5.3421 63.86% Joliet Junior College 525 0.2270 0.2463 0.2768 0.2955 0.3085 0.3065 0.3099 0.2994 0.2924 0.2891 3.46% Plainfield Township Park District 0.1959 0.2126 0.2433 0.2535 0.2742 0.2692 0.2560 0.2541 0.2591 0.2537 3.03% Plainfield Public Library District 0.1573 0.1720 0.1894 0.2013 0.2057 0.2021 0.1939 0.1921 0.1893 0.1825 2.18% Plainfield Fire Protection District 0.8656 0.8872 0.9216 0.9970 1.0122 1.0036 0.9674 0.9650 0.9537 0.9261 11.07% Township and Other 0.1653 0.1804 0.1960 0.2106 0.2125 0.2091 0.1991 0.1952 0.1908 0.1824 2.18% Total Tax Rate 7.5649 8.1231 8.8405 9.4699 9.5832 9.5279 9.0964 8.8675 8.6685 8.3659 100.00% Village of Plainfield - Will County Comparison of Tax Rates per $100 of Assessed Valuation 2012 Levy Rates 2014 Levy Rates 2016 Levy Rates 2011 Levy Rates 2013 Levy Rates 2020 Levy2015 Levy Rates 2010 Levy Rates 2017 Levy Rates 2018 Levy Rates Village of Plainfield 5.58% Will County & Forest Preserve 8.64% School District 202 63.86% Joliet Junior College 525 3.46% Plainfield Township Park District 3.03% Plainfield Public Library District 2.18%Plainfield Fire Protection District 11.07% Township and Other 2.18% 28 Description FY 2019 Actual FY 2020 Actual FY 2021 Actual FY 2022 Adopted Budget FY 2022 Estimated Amount FY 2023 Proposed Budget Fund: 07 - Tort Immunity Fund Property Taxes Property Tax Revenue 491,668 399,426 150,397 350,000 345,000 685,000 Total: Property Taxes $491,668 $399,426 $150,397 $350,000 $345,000 $685,000 Investment Income Interest Income 8,101 8,237 484 1,000 500 300 Total: Investment Income $8,101 $8,237 $484 $1,000 $500 $300 Other Reimbursements $451 $0 $0 $0 $0 $0 $451 $0 $0 $0 $0 $0 Revenues Total $500,220 $407,663 $150,881 $351,000 $345,500 $685,300 Unit: 00 - Non-Departmental Contractual Services Bond-Treasurer 336 336 336 336 336 336 Comm. Umbrella Liability 170,959 157,579 220,751 280,000 349,748 405,000 Workman's Comp. Ins.180,488 189,364 189,914 230,000 240,481 275,000 Total: Contractual Services $351,783 $347,279 $411,001 $510,336 $590,565 $680,336 Expenditures Total $351,783 $347,279 $411,001 $510,336 $590,565 $680,336 Total: Tort Immunity Fund $148,437 $60,384 ($260,120)($159,336)($245,065)$4,964 **Tort Immunity Fund has a 4/30/21 Fund Balance of $242,787 Tort Immunity Fund 2022-2023 Fiscal Year Budget Revenues Expenditures Revenue & Expense Detail MISC - Miscellaneous Total: Miscellaneous $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 FY 2019 Actual FY 2020 Actual FY 2021 Actual FY 2022 Adopted Budget FY 2023 Proposed Budget Tort Immunity Revenue History Property Tax Revenue DRAFT Page 1 11/04/2021 29 Description FY 2019 Actual FY 2020 Actual FY 2021 Actual FY 2022 Adopted Budget FY 2022 Estimated Amount FY 2023 Proposed Budget Fund: 08 - Audit Fund Property Taxes Property Tax Revenue 44,169 36,152 30,373 40,000 40,000 50,000 Total: Property Taxes $44,169 $36,152 $30,373 $40,000 $40,000 $50,000 Investment Income Interest Income 532 513 33 500 100 100 Total: Investment Income $532 $513 $33 $500 $100 $100 Revenues Total $44,701 $36,665 $30,406 $40,500 $40,100 $50,100 Unit: 00 - Non-Departmental Division: 00 - Non-Divisional Contrac - Contractual Services Audit Village 38,085 39,565 40,320 42,000 41,800 45,000 Total: Contractual Services $38,085 $39,565 $40,320 $42,000 $41,800 $45,000 Expenditures Total $38,085 $39,565 $40,320 $42,000 $41,800 $45,000 Total: Audit Fund $6,616 ($2,900)($9,914)($1,500)($1,700)$5,100 **Audit Fund has a 4/30/21 Fund Balance of $9,779 Audit Fund 2022-2023 Fiscal Year Budget Revenues Expenditures Revenue & Expense Detail $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 FY 2019 Actual FY 2020 Actual FY 2021 Actual FY 2022 Adopted Budget FY 2023 Proposed Budget Audit Fund Revenue History Property Tax Revenue DRAFT Page 2 11/04/2021 30 Description FY 2019 Actual FY 2020 Actual FY 2021 Actual FY 2022 Adopted Budget FY 2022 Estimated Amount FY 2023 Proposed Budget Fund: 10 - Police Pension Fund Investment Income Interest Income 1,219,956 1,012,050 890,572 625,000 600,000 625,000 Realized Gain/Loss 339,712 765,702 580,856 300,000 300,000 300,000 Unrealized Gain/Loss 235,710 (1,129,771)7,324,489 200,000 200,000 200,000 Total: Investment Income $1,795,378 $647,981 $8,795,917 $1,125,000 $1,100,000 $1,125,000 MISC - Miscellaneous Other Receipts 200 0 226 0 0 0 Employee Contributions 555,362 580,065 655,092 650,000 670,000 695,000 Employer Contributions 1,402,475 1,297,308 1,577,460 1,700,000 1,700,000 1,700,000 Total: Miscellaneous $1,958,037 $1,877,373 $2,232,778 $2,350,000 $2,370,000 $2,395,000 Revenues Total $3,753,415 $2,525,354 $11,028,695 $3,475,000 $3,470,000 $3,520,000 Police Pension Fund 2022-2023 Fiscal Year Budget Revenues Revenue & Expense Detail $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 FY 2019 Actual FY 2020 Actual FY 2021 Actual FY 2022 Adopted Budget FY 2023 Proposed Budget Police Pension Contribution History Employee Contributions Employer Contributions DRAFT Page 3 11/04/2021 31 Description FY 2019 Actual FY 2020 Actual FY 2021 Actual FY 2022 Adopted Budget FY 2022 Estimated Amount FY 2023 Proposed Budget Police Pension Fund 2022-2023 Fiscal Year Budget Revenue & Expense Detail Unit: 00 - Non-Departmental Division: 00 - Non-Divisional Salaries and Wages Pension Payments 510,423 640,262 811,860 950,000 930,000 1,100,000 Total: Salaries & Wages $510,423 $640,262 $811,860 $950,000 $930,000 $1,100,000 Benefits Travel/Training 7,153 6,765 (341)5,000 3,000 5,000 Total: Benefits $7,153 $6,765 ($341)$5,000 $3,000 $5,000 Supplies and Commodities Office Supplies/Postage 0 123 0 500 500 500 Dues & Subscriptions 6,421 7,111 8,213 7,500 8,500 8,500 Total: Supplies & Commodities $6,421 $7,234 $8,213 $8,000 $9,000 $9,000 Contractual Services Contractual Services 36,143 29,146 35,946 35,000 35,000 35,000 Total: Contractual Services $36,143 $29,146 $35,946 $35,000 $35,000 $35,000 Other Investment Expense 106,456 115,940 134,947 120,000 130,000 130,000 Total: OTHER - Other $106,456 $115,940 $134,947 $120,000 $130,000 $130,000 Total: Non-Divisional $666,596 $799,347 $990,625 $1,118,000 $1,107,000 $1,279,000 Expenditures Total $666,596 $799,347 $990,625 $1,118,000 $1,107,000 $1,279,000 Total: Police Pension Fund $3,086,819 $1,726,007 $10,038,070 $2,357,000 $2,363,000 $2,241,000 Expenditures DRAFT Page 4 11/04/2021 32 VILLAGE OF PLAINFIELD POLICE PENSION FUND ACTUARIAL VALUATION AS OF MAY 1, 2021 CONTRIBUTIONS APPLICABLE TO THE PLAN/FISCAL YEAR ENDING APRIL 30, 2023 GASB 67/68 DISCLOSURE INFORMATION AS OF APRIL 30, 2021 33 184 Shuman Blvd, Suite 305 Naperville, IL 60563 ꞏ (630) 620-0200 ꞏ Fax (239) 481-0634 ꞏ www.foster-foster.com August 11, 2021 Ms. Colleen Thornton Village of Plainfield Police Pension Fund Re: Actuarial Valuation Report (including GASB Statements No. 67 and No. 68) – Village of Plainfield Police Pension Fund Dear Ms. Thornton: We are pleased to present to the Village this report of the annual actuarial valuation of the Village of Plainfield Police Pension Fund. Included are the related results for GASB Statements No. 67 and No. 68.The funding valuation was performed to determine whether the assets and contributions are sufficient to provide the prescribed benefits and to develop the appropriate funding requirements for the applicable plan year. The calculation of the liability for GASB results was performed for the purpose of satisfying the requirements of GASB Statements No. 67 and No. 68. Use of the results for other purposes may not be applicable and could produce significantly different results. The valuations have been conducted in accordance with generally accepted actuarial principles and practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial Standards Board, and reflect laws and regulations issued to date pursuant to the provisions of Article 3, Illinois Pension Code, as well as applicable federal laws and regulations. In our opinion, the assumptions used in this valuation, as adopted by the Board of Trustees, represent reasonable expectations of anticipated plan experience. Future actuarial measurements may differ significantly from the current measurements presented in this report for a variety of reasons including: changes in applicable laws, changes in plan provisions, changes in assumptions, or plan experience differing from expectations. Due to the limited scope of the valuations, we did not perform an analysis of the potential range of such future measurements. The funding percentages and unfunded accrued liability as measured based on the actuarial value of assets will differ from similar measures based on the market value of assets. These measures, as provided, are appropriate for determining the adequacy of future contributions, but may not be appropriate for the purpose of settling a portion or all of its liabilities. In conducting the valuations, we have relied on personnel, plan design, and asset information supplied by the Village, financial reports prepared by the custodian bank and the actuarial assumptions and methods described in the Actuarial Assumptions section of this report. While we cannot verify the accuracy of all this information, the supplied information was reviewed for consistency and reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the information and believe that it has produced appropriate results. This information, along with any adjustments or modifications, is summarized in various sections of this report. 34 The total pension liability, net pension liability, and certain sensitivity information shown in the GASB results are based on an actuarial valuation performed as of the valuation date. In performing the analysis, we used third-party software to model (calculate) the underlying liabilities and costs. These results are reviewed in the aggregate and for individual sample lives. The output from the software is either used directly or input into internally developed models to generate the costs. All internally developed models are reviewed as part of the process. As a result of this review, we believe that the models have produced reasonable results. We do not believe there are any material inconsistencies among assumptions or unreasonable output produced due to the aggregation of assumptions. The undersigned are familiar with the immediate and long-term aspects of pension valuations and meet the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein. All of the sections of this report are considered an integral part of the actuarial opinions. To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the program has any direct financial interest or indirect material interest in the Village of Plainfield, nor does anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the Village of Plainfield Police Pension Fund. Thus, there is no relationship existing that might affect our capacity to prepare and certify this actuarial report. If there are any questions, concerns, or comments about any of the items contained in this report, please contact us at 630-620-0200. Respectfully submitted, Foster & Foster, Inc. By: ______________________________ Jason L. Franken, FSA, EA, MAAA By: ______________________________ Heidi E. Andorfer, FSA, EA, MAAA JLF/lke Enclosures 35 TABLE OF CONTENTS Section Title Page I Introduction a. Summary of Report 5 b. Changes Since Prior Valuation 6 c. Comparative Summary of Principal Valuation Results 7 II Valuation Information a. Development of Amortization Payment 12 b. Detailed Actuarial (Gain)/Loss Analysis 13 c. Reconciliation of Changes in Contribution Requirement 14 d. Statutory Minimum Required Contribution 15 e. Projection of Benefit Payments 16 f. Actuarial Assumptions and Methods 17 g. Glossary 20 h. Discussion of Risk 21 III Trust Fund 24 IV Member Statistics a. Statistical Data 28 b. Age and Service Distribution 29 c. Valuation Participant Reconciliation 30 V Summary of Current Plan 31 VI Governmental Accounting Standards Board Statements No. 67 and No. 68 Disclosure Information 34 36 SUMMARY OF REPORT The regular annual actuarial valuation of the Village of Plainfield Police Pension Fund, performed as of May 1, 2021, has been completed and the results are presented in this Report. The contribution amounts set forth herein are applicable to the plan/fiscal year ended April 30, 2023. The contribution requirements, compared with those set forth in the May 1, 2020 actuarial report, are as follows: Valuation Date 5/1/2021 5/1/2020 Applicable to Fiscal Year Ending 4/30/2023 4/30/2022 Total Recommended Contribution $2,245,503 $2,293,067 % of Projected Annual Payroll 37.3% 37.7% Member Contributions (Est.) (596,762) (602,949) % of Projected Annual Payroll (9.9%) (9.9%) Village Recommended Contribution 1,648,741 1,690,118 % of Projected Annual Payroll 27.4% 27.8% As you can see, the Total Recommended Contribution shows a decrease when compared to the results determined in the May 1, 2020 actuarial valuation report. The decrease is attributable to favorable experience realized by the plan. The decrease was offset in part by the natural increase in the amortization payment due to the payroll growth assumption. Plan experience was favorable overall on the basis of the plan's actuarial assumptions. Sources of favorable experience included an investment return of 8.58% (Actuarial Asset Basis) which exceeded the 6.75% assumption and an average salary increase of 3.75% which fell short of the 4.66% assumption. These gains were offset in part by a loss associated with more retirements than expected. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 5 37 CHANGES SINCE PRIOR VALUATION Plan Changes Since Prior Valuation There were no plan changes since the prior valuation. Actuarial Assumption/Method Changes Since Prior Valuation There were no assumption or method changes since the prior valuation. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 6 38 COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS 5/1/2021 5/1/2020 A. Participant Data Number Included Actives 57 59 Service Retirees 10 8 Beneficiaries 0 0 Disability Retirees 2 2 Terminated Vested 6 3 Total 75 72 Total Annual Payroll $6,021,819 $6,084,253 Payroll Under Assumed Ret. Age 6,021,819 6,084,253 Annual Rate of Payments to: Service Retirees 760,314 594,159 Beneficiaries 0 0 Disability Retirees 96,830 96,830 Terminated Vested 132,298 22,163 B. Assets Actuarial Value 42,819,902 38,112,155 Market Value 46,429,245 36,391,179 C. Liabilities Present Value of Benefits Actives Retirement Benefits 41,987,271 42,673,184 Disability Benefits 3,229,281 3,276,826 Death Benefits 422,571 427,203 Vested Benefits 3,010,700 3,128,231 Service Retirees 13,131,245 10,128,676 Beneficiaries 0 0 Disability Retirees 1,741,107 1,722,064 Terminated Vested 1,780,608 238,995 Total 65,302,783 61,595,179 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 7 39 C. Liabilities - (Continued)5/1/2021 5/1/2020 Present Value of Future Salaries 57,549,719 58,223,010 Present Value of Future Member Contributions 5,703,177 5,769,900 Normal Cost (Retirement)1,028,795 1,046,765 Normal Cost (Disability)177,058 178,592 Normal Cost (Death)20,225 19,753 Normal Cost (Vesting)144,111 141,012 Total Normal Cost 1,370,189 1,386,122 Present Value of Future Normal Costs 12,038,394 12,207,416 Accrued Liability (Retirement)32,707,045 33,213,116 Accrued Liability (Disability)1,591,901 1,650,587 Accrued Liability (Death)236,435 247,083 Accrued Liability (Vesting)2,076,048 2,187,242 Accrued Liability (Inactives) 16,652,960 12,089,735 Total Actuarial Accrued Liability 53,264,389 49,387,763 Unfunded Actuarial Accrued Liability (UAAL) 10,444,487 11,275,608 Funded Ratio (AVA / AL) 80.4% 77.2% Village of Plainfield Police Pension Fund FOSTER & FOSTER | 8 40 5/1/2021 5/1/2020 D. Actuarial Present Value of Accrued Benefits Vested Accrued Benefits Inactives 16,652,960 12,089,735 Actives 10,781,608 10,699,144 Member Contributions 6,801,338 6,929,305 Total 34,235,906 29,718,184 Non-vested Accrued Benefits 2,227,328 2,119,592 Total Present Value Accrued Benefits 36,463,234 31,837,776 Funded Ratio (MVA / PVAB)127.3%114.3% Increase (Decrease) in Present Value of Accrued Benefits Attributable to: Plan Amendments 0 Assumption Changes 0 Plan Experience 3,315,668 Benefits Paid (811,860) Interest 2,121,650 Other 0 Total 4,625,458 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 9 41 Valuation Date 5/1/2021 5/1/2020 Applicable to Fiscal Year Ending 4/30/2023 4/30/2022 E. Pension Cost Normal Cost ¹ $1,462,677 $1,479,685 % of Total Annual Payroll ¹ 24.3 24.3 Administrative Expenses ¹ 46,777 46,057 % of Total Annual Payroll ¹ 0.8 0.8 Payment Required to Amortize Unfunded Actuarial Accrued Liability over 20 years (as of 5/1/2021) ¹ 736,049 767,325 % of Total Annual Payroll ¹ 12.2 12.6 Total Recommended Contribution 2,245,503 2,293,067 % of Total Annual Payroll ¹ 37.3 37.7 Expected Member Contributions ¹ (596,762) (602,949) % of Total Annual Payroll ¹ (9.9) (9.9) Expected Village Contribution 1,648,741 1,690,118 % of Total Annual Payroll ¹ 27.4 27.8 F. Past Contributions Plan Years Ending: 4/30/2021 Total Recommended Contribution 2,235,429 Village Requirement 1,580,337 Actual Contributions Made: Members (excluding buyback)655,092 Village 1,577,686 Total 2,232,778 G. Net Actuarial (Gain)/Loss (841,930) ¹ Contributions developed as of 5/1/2021 displayed above have been adjusted to account for assumed interest. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 10 42 H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability as of: Projected Unfunded Year Accrued Liability 2021 10,444,487 2022 10,413,441 2023 10,354,538 2028 9,536,774 2032 8,031,525 2037 4,568,388 2041 0 I. (i) 5 Year Comparison of Actual and Assumed Salary Increases Actual Assumed Year Ended 4/30/2021 3.75% 4.66% Year Ended 4/30/2020 3.56% 4.35% Year Ended 4/30/2019 3.14% 4.38% (ii) 5 Year Comparison of Investment Return on Actuarial Value Actual MVA Actual AVA Assumed Year Ended 4/30/2021 23.36% 8.58% 6.75% Year Ended 4/30/2020 1.51% 4.45% 6.75% Year Ended 4/30/2019 5.23% 5.26% 6.75% Village of Plainfield Police Pension Fund FOSTER & FOSTER | 11 43 DEVELOPMENT OF MAY 1, 2021 AMORTIZATION PAYMENT (1) Unfunded Actuarial Accrued Liability as of May 1, 2020 $11,275,608 (2) Sponsor Normal Cost developed as of May 1, 2020 783,173 (3) Expected administrative expenses for the year ended April 30, 2021 43,145 (4) Expected interest on (1), (2) and (3) 815,424 (5) Sponsor contributions to the System during the year ended April 30, 2021 1,577,686 (6) Expected interest on (5) 53,247 (7) Expected Unfunded Actuarial Accrued Liability as of April 30, 2021, (1)+(2)+(3)+(4)-(5)-(6) 11,286,417 (8) Change to UAAL due to Benefits/Assumption Change 0 (9) Change to UAAL due to Actuarial (Gain)/Loss (841,930) (10) Unfunded Accrued Liability as of May 1, 2021 10,444,487 (11) UAAL Subject to Amortization (100% AAL less Actuarial Assets) 10,444,487 Date Years 5/1/2021 Amortization Established Remaining Amount Amount 5/1/2021 20 10,444,487 689,507 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 12 44 (1) Unfunded Actuarial Accrued Liability (UAAL) as of May 1, 2020 $11,275,608 (2) Expected UAAL as of May 1, 2021 11,286,417 (3) Summary of Actuarial (Gain)/Loss, by component: Investment Return (Actuarial Asset Basis)(711,600) Salary Increases (322,665) Active Decrements 134,406 Inactive Mortality 45,461 Other 12,468 Change in UAAL due to (Gain)/Loss (841,930) Change to UAAL due to Benefits/Assumption Change 0 (4) Actual UAAL as of May 1, 2021 $10,444,487 DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS Village of Plainfield Police Pension Fund FOSTER & FOSTER | 13 45 (1) Contribution Determined as of May 1, 2020 1,690,118$ (2) Summary of Contribution Impact by component: Change in Normal Cost (17,008) Change in Assumed Administrative Expense 720 Investment Return (Actuarial Asset Basis)(50,148) Salary Increases (22,739) New Entrants 4,026 Active Decrements 9,472 Inactive Mortality 3,204 Contributions (More) or Less than Recommended 193 Increase in Amortization Payment Due to Payroll Growth Assumption 26,856 Change in Expected Member Contributions 6,187 Benefits/Assumption Change - Other (2,140) Total Change in Contribution (41,377) (3) Contribution Determined as of May 1, 2021 $1,648,741 RECONCILIATION OF CHANGES IN CONTRIBUTION REQUIREMENT Village of Plainfield Police Pension Fund FOSTER & FOSTER | 14 46 Valuation Date 5/1/2021 5/1/2020 Applicable to Fiscal Year Ending 4/30/2023 4/30/2022 Actuarial Accrued Liability (PUC)48,708,894 44,556,776 Actuarial Value of Assets 42,819,902 38,112,155 Unfunded Actuarial Accrued Liability (UAAL)5,888,992 6,444,621 UAAL Subject to Amortization 1,018,103 1,988,943 Normal Cost ¹ $1,895,041 $1,900,325 % of Total Annual Payroll ¹31.5 31.2 Administrative Expenses ¹ 46,777 46,057 % of Total Annual Payroll ¹0.8 0.8 Payment Required to Amortize Unfunded Actuarial Accrued Liability over 19 years (as of 5/1/2021) ¹ 74,481 140,166 % of Total Annual Payroll ¹1.2 2.3 Total Required Contribution 2,016,299 2,086,548 % of Total Annual Payroll ¹33.5 34.3 Expected Member Contributions ¹ (596,762)(602,949) % of Total Annual Payroll ¹(9.9)(9.9) Expected Village Contribution 1,419,537 1,483,599 % of Total Annual Payroll ¹23.6 24.4 Assumptions and Methods: Actuarial Cost Method Projected Unit Credit Amortization Method 90% Funding by 2040 All other assumptions and methods are as described in the Actuarial Assumptions and Methods section. ¹ Contributions developed as of 5/1/2021 displayed above have been adjusted to account for assumed interest. STATUTORY MINIMUM REQUIRED CONTRIBUTION Contribution requirements shown on this page are calculated according to statutory minimum funding requirements of the Illinois Pension Code. We do not believe this method is sufficient to fund future benefits; as such, we recommend funding according to the contributions developed in Section E of this report. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 15 47 PROJECTION OF BENEFIT PAYMENTS Payments for Payments for Total Year Current Actives Current Inactives Payments 2021 112,998 866,274 979,272 2022 234,800 889,592 1,124,392 2023 389,714 910,876 1,300,590 2024 570,553 932,133 1,502,686 2025 769,050 953,248 1,722,298 2026 981,326 1,028,710 2,010,036 2027 1,206,822 1,103,765 2,310,587 2028 1,495,390 1,145,071 2,640,461 2029 1,777,961 1,183,124 2,961,085 2030 2,094,993 1,202,886 3,297,879 2031 2,402,763 1,229,625 3,632,388 2032 2,739,000 1,256,939 3,995,939 2033 3,134,179 1,276,555 4,410,734 2034 3,495,613 1,294,647 4,790,260 2035 3,859,291 1,311,101 5,170,392 2036 4,201,428 1,325,875 5,527,303 2037 4,533,798 1,338,968 5,872,766 2038 4,860,625 1,373,006 6,233,631 2039 5,138,724 1,384,285 6,523,009 2040 5,407,955 1,393,935 6,801,890 2041 5,679,811 1,401,884 7,081,695 2042 5,977,812 1,407,995 7,385,807 2043 6,262,697 1,412,062 7,674,759 2044 6,498,294 1,413,785 7,912,079 2045 6,766,834 1,412,778 8,179,612 2046 6,995,872 1,408,606 8,404,478 2047 7,232,801 1,400,818 8,633,619 2048 7,497,932 1,388,942 8,886,874 2049 7,752,654 1,372,512 9,125,166 2050 8,060,878 1,351,075 9,411,953 2051 8,279,983 1,324,187 9,604,170 2052 8,443,033 1,291,478 9,734,511 2053 8,576,254 1,252,688 9,828,942 2054 8,682,013 1,207,732 9,889,745 2055 8,762,499 1,156,703 9,919,202 2056 8,816,848 1,099,896 9,916,744 2057 8,843,331 1,037,797 9,881,128 2058 8,839,710 971,228 9,810,938 2059 8,803,347 901,261 9,704,608 2060 8,733,494 829,149 9,562,643 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 16 48 ACTUARIAL ASSUMPTIONS AND METHODS Interest Rate 6.75% per year compounded annually, net of investment related expenses. We will continue to monitor this assumption in light of the target asset allocation of the trust and the expected long- term return by asset class. Mortality Rate Active Lives: PubS-2010 Employee mortality, projected 5 years past the valuation date with Scale MP-2020. 10% of active deaths are assumed to be in the line of duty. Inactive Lives: PubS-2010 Healthy Retiree mortality, projected 5 years past the valuation date with Scale MP-2020. Beneficiaries: PubS-2010 Survivor mortality, projected 5 years past the valuation date with Scale MP-2020. Disabled Lives: PubS-2010 Disabled mortality, projected 5 years past the valuation date with Scale MP-2020. The mortality assumptions sufficiently accommodate anticipated future mortality improvements. Retirement Age See table later in this section. This is based on a 2017 experience study performed for the State of Illinois Department of Insurance. Disability Rate See table later in this section. 60% of the disabilities are assumed to be in the line of duty. This is based on a 2017 experience study performed for the State of Illinois Department of Insurance. Termination Rate See table later in this section. This is based on a 2017 experience study performed for the State of Illinois Department of Insurance. Inflation 2.50%. Cost-of-Living Adjustment Tier 1: 3.00% per year after age 55. Those that retire prior to age 55 receive an increase of 1/12 of 3.00% for each full month since benefit commencement upon reaching age 55. Tier 2: 1.25% per year after the later of attainment of age 60 or first anniversary of retirement. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 17 49 Salary Increases See table below. This is based on a 2017 experience study performed for the State of Illinois Department of Insurance. Marital Status 80% of Members are assumed to be married. Spouse’s Age Males are assumed to be three years older than females. Funding Method Entry Age Normal Cost Method. Actuarial Asset Method Investment gains and losses are smoothed over a 5-year period. In the first year, 20% of the gain or loss is recognized. In the second year 40%, in the third year 60%, in the fourth year 80%, and in the fifth year 100% of the gain or loss is recognized. The actuarial investment gain or loss is defined as the actual return on investments minus the actuarial assumed investment return. Actuarial Assets shall not be less than 80% nor greater than 120% of the Market Value of Assets. Funding Policy Amortization Method The UAAL is amortized according to a Level Percentage of Payroll method over a period ending in 2041. The initial amortization amount is 100% of the Accrued Liability less the Actuarial Value of Assets. Payroll Growth 3.50% per year. Administrative Expenses Expenses paid out of the fund other than investment-related expenses are assumed to be equal to those paid in the previous year. Salary Scale Service Rate 0 11.00% 1 10.75% 28.75% 38.50% 47.00% 56.25% 65.25% 74.25% 8 - 16 4.00% 17 - 32 3.75% 32+ 3.50% Village of Plainfield Police Pension Fund FOSTER & FOSTER | 18 50 Decrement Tables % Terminating % Becoming Disabled % Retiring % Retiring During the Year During the Year During the Year (Tier 1) During the Year (Tier 2) Age Rate Age Rate Age Rate Age Rate 20 14.00% 20 0.000% 50 - 51 15% 50 - 54 5% 25 10.40% 25 0.030% 52 - 54 20%55 40% 30 5.60% 30 0.140% 55 - 64 25% 56 - 64 25% 35 3.10% 35 0.260% 65 - 69 40% 65 - 69 40% 40 1.90% 40 0.420% 70+ 100% 70+ 100% 45 1.50% 45 0.590% 50 1.50% 50 0.710% 56+ 0.00% 55 0.900% 60 1.150% Village of Plainfield Police Pension Fund FOSTER & FOSTER | 19 51 GLOSSARY Total Annual Payroll is the projected annual rate of pay for the fiscal year following the valuation date of all covered members. Present Value of Benefits is the single sum value on the valuation date of all future benefits to be paid to current Members, Retirees, Beneficiaries, Disability Retirees and Vested Terminations. Normal (Current Year's) Cost is the current year's cost for benefits yet to be funded. Unfunded Accrued Liability is a liability which arises when a pension plan is initially established or improved and such establishment or improvement is applicable to all years of past service. Total Recommended Contribution is equal to the Normal Cost plus an amount sufficient to amortize the Unfunded Accrued Liability over a period ending in 2041. The recommended amount is adjusted for interest according to the timing of contributions during the year. Entry Age Normal Cost Method - Under this method, the normal cost is the sum of the individual normal costs for all active participants. For an active participant, the normal cost is the participant’s normal cost accrual rate, multiplied by the participant’s current compensation. (a) The normal cost accrual rate equals: (i) the present value of future benefits for the participant, determined as of the participant’s entry age, divided by (ii) the present value of the compensation expected to be paid to the participant for each year of the participant’s anticipated future service, determined as of the participant’s entry age. (b) In calculating the present value of future compensation, the salary scale is applied both retrospectively and prospectively to estimate compensation in years prior to and subsequent to the valuation year based on the compensation used for the valuation. (c) The accrued liability is the sum of the individual accrued liabilities for all participants and beneficiaries. A participant’s accrued liability equals the present value, at the participant’s attained age, of future benefits less the present value at the participant’s attained age of the individual normal costs payable in the future. A beneficiary’s accrued liability equals the present value, at the beneficiary’s attained age, of future benefits. The unfunded accrued liability equals the total accrued liability less the actuarial value of assets. (d) Under this method, the entry age used for each active participant is the participant’s age at the time he or she would have commenced participation if the plan had always been in existence under current terms, or the age as of which he or she first earns service credits for purposes of benefit accrual under the current terms of the plan. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 20 52 DISCUSSION OF RISK ASOP No. 51, Assessment and Disclosure of Risk Associated with Measuring Pension Obligations and Determining Pension Plan Contributions, states that the actuary should identify risks that, in the actuary’s professional judgment, may reasonably be anticipated to significantly affect the plan’s future financial condition. Throughout this report, actuarial results are determined under various assumption scenarios. These results are based on the premise that all future plan experience will align with the plan’s actuarial assumptions; however, there is no guarantee that actual plan experience will align with the plan’s assumptions. It is possible that actual plan experience will differ from anticipated experience in an unfavorable manner that will negatively impact the plan’s funded position. Below are examples of ways in which plan experience can deviate from assumptions and the potential impact of that deviation. Typically, this results in an actuarial gain or loss representing the current-year financial impact on the plan’s unfunded liability of the experience differing from assumptions; this gain or loss is amortized over a period of time determined by the plan’s amortization method. When assumptions are selected that adequately reflect plan experience, gains and losses typically offset one another in the long term, resulting in a relatively low impact on the plan’s contribution requirements associated with plan experience. When assumptions are too optimistic, losses can accumulate over time and the plan’s amortization payment could potentially grow to an unmanageable level.  Investment Return: When the rate of return on the Actuarial Value of Assets falls short of the assumption, this produces a loss representing assumed investment earnings that were not realized. Further, it is unlikely that the plan will experience a scenario that matches the assumed return in each year as capital markets can be volatile from year to year. Therefore, contribution amounts can vary in the future.  Salary Increases: When a plan participant experiences a salary increase that was greater than assumed, this produces a loss representing the cost of an increase in anticipated plan benefits for the participant as compared to the previous year. The total gain or loss associated with salary increases for the plan is the sum of salary gains and losses for all active participants.  Payroll Growth: The plan’s payroll growth assumption, if one is used, causes a predictable annual increase in the plan’s amortization payment in order to produce an amortization payment that remains constant as a percentage of payroll if all assumptions are realized. If payroll does not increase according to the plan’s payroll growth assumption, the plan’s amortization payment can increase significantly as a percentage of payroll even if all assumptions other than the payroll growth assumption are realized.  Demographic Assumptions: Actuarial results take into account various potential events that could happen to a plan participant, such as retirement, termination, disability, and death. Each of these potential events is assigned a liability based on the likelihood of the event and the financial consequence of the event for the plan. Accordingly, actuarial liabilities reflect a blend of financial consequences associated with various possible outcomes (such as retirement at one of various possible ages). Once the outcome is known (e.g. the participant retires) the liability is adjusted to reflect the known outcome. This adjustment produces a gain or loss depending on whether the outcome was more or less favorable than other outcomes that could have occurred. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 21 53  Contribution Risk: This risk results from the potential that actual employer contributions may deviate from actuarially determined contributions, which are determined in accordance with the Board’s funding policy. The funding policy is intended to result in contribution requirements that if paid when due, will result in a reasonable expectation that assets will accumulate to be sufficient to pay plan benefits when due. Contribution deficits, particularly large deficits and those that occur repeatedly, increase future contribution requirements and put the plan at risk for not being able to pay plan benefits when due. Impact of Plan Maturity on Risk For newer pension plans, most of the participants and associated liabilities are related to active members who have not yet reached retirement age. As pension plans continue in operation and active members reach retirement ages, liabilities begin to shift from being primarily related to active members to being shared amongst active and retired members. Plan maturity is a measure of the extent to which this shift has occurred. It is important to understand that plan maturity can have an impact on risk tolerance and the overall risk characteristics of the plan. For example, plans with a large amount of retired liability do not have as long of a time horizon to recover from losses (such as losses on investments due to lower than expected investment returns) as plans where the majority of the liability is attributable to active members. For this reason, less tolerance for investment risk may be warranted for highly mature plans with a substantial inactive liability. Similarly, mature plans paying substantial retirement benefits resulting in a small positive or net negative cash flow can be more sensitive to near term investment volatility, particularly if the size of the fund is shrinking, which can result in less assets being available for investment in the market. To assist with determining the maturity of the plan, we have provided some relevant metrics in the table following titled “Plan Maturity Measures and Other Risk Metrics”. Highlights of this information are discussed below:  The Support Ratio, determined as the ratio of active to inactive members, has decreased from 550.0% on May 1, 2018 to 316.7% on May 1, 2021, indicating that the plan has been maturing.  The Accrued Liability Ratio, determined as the ratio of the Inactive Accrued Liability, which is the liability associated with members who are no longer employed but are due a benefit from the plan, to the Total Accrued Liability, is 31.3%. With a plan of this maturity, losses due to lower than expected investment returns or demographic factors can be made up over a longer time horizon than would be needed for a more mature plan.  The Funded Ratio, determined as the ratio of the Actuarial Value of Assets to the Total Accrued Liability, has increased from 75.1% on May 1, 2018 to 80.4% on May 1, 2021, due mainly to the transition of actuarial services and favorable plan experience.  The Net Cash Flow Ratio, determined as the ratio of the Net Cash Flow (contributions minus benefit payments and administrative expenses) to the Market Value of Assets, decreased from 4.3% on May 1, 2018 to 3.0% on May 1, 2021. The current Net Cash Flow Ratio of 3.0% indicates that contributions are generally in excess of the plan's benefit payments and administrative expenses. It is important to note that the actuary has identified the risks above as the most significant risks based on the characteristics of the plan and the nature of the project, however, it is not an exhaustive list of potential risks that could be considered. Additional advanced modeling, as well as the identification of additional risks, can be provided at the request of the audience addressed on page 2 of this report. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 22 54 PLAN MATURITY MEASURES AND OTHER RISK METRICS 5/1/2021 5/1/2020 5/1/2019 5/1/2018 Support Ratio Total Actives 57 59 57 55 Total Inactives 18 13 11 10 Actives / Inactives 316.7% 453.8% 518.2% 550.0% Asset Volatility Ratio Market Value of Assets (MVA) 46,429,245 36,391,179 34,665,171 31,578,352 Total Annual Payroll 6,021,819 6,084,253 5,827,563 5,525,220 MVA / Total Annual Payroll 771.0% 598.1% 594.8% 571.5% Accrued Liability (AL) Ratio Inactive Accrued Liability 16,652,960 12,089,735 8,698,914 8,354,902 Total Accrued Liability 53,264,389 49,387,763 44,466,277 42,886,699 Inactive AL / Total AL 31.3% 24.5% 19.6% 19.5% Funded Ratio Actuarial Value of Assets (AVA)42,819,902 38,112,155 35,321,046 32,192,657 Total Accrued Liability 53,264,389 49,387,763 44,466,277 42,886,699 AVA / Total Accrued Liability 80.4% 77.2% 79.4% 75.1% Net Cash Flow Ratio Net Cash Flow ¹1,377,099 1,193,966 1,397,895 1,351,804 Market Value of Assets (MVA) 46,429,245 36,391,179 34,665,171 31,578,352 Ratio 3.0%3.3%4.0%4.3% ¹ Determined as total contributions minus benefit payments and administrative expenses. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 23 55 STATEMENT OF FIDUCIARY NET POSITION April 30, 2021 ASSETS MARKET VALUE Cash and Cash Equivalents: Certificates of Deposit 1,826,695 Cash and Short-Term Investments 168,971 Total Cash and Equivalents 1,995,666 Receivables: Accrued Past Due Interest 115,220 Total Receivable 115,220 Investments: Municipal Obligations 2,776,494 Corporate Bonds 148,437 U.S. Gov't and Agency Obligations 15,236,311 Mutual Funds 26,158,662 Total Investments 44,319,904 Total Assets 46,430,790 LIABILITIES Liabilities: Payable: Accounts Payable 1,545 Total Liabilities 1,545 Net Assets: Active and Retired Members' Equity 46,429,245 NET POSITION RESTRICTED FOR PENSIONS 46,429,245 TOTAL LIABILITIES AND NET ASSETS 46,430,790 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 24 56 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED April 30, 2021 Market Value Basis ADDITIONS Contributions: Member 655,092 Village 1,577,686 Total Contributions 2,232,778 Investment Income: Net Increase in Fair Value of Investments 7,905,345 Interest & Dividends 890,572 Less Investment Expense ¹ (134,947) Net Investment Income 8,660,970 Total Additions 10,893,748 DEDUCTIONS Distributions to Members: Benefit Payments 811,860 Total Distributions 811,860 Administrative Expenses 43,819 Total Deductions 855,679 Net Increase in Net Position 10,038,069 NET POSITION RESTRICTED FOR PENSIONS Beginning of the Year 36,391,179 Adjustment to beginning of year (3) End of the Year 46,429,245 ¹ Investment Related expenses include investment advisory, custodial and performance monitoring fees. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 25 57 Market Value of Assets, 4/30/2021 46,429,245 (Gains)/Losses Not Yet Recognized (3,609,343) Actuarial Value of Assets, 4/30/2021 42,819,902 4/30/2021 Limited Actuarial Assets:42,819,902 Market Value of Assets, 4/30/2020 36,391,176 Contributions Less Benefit Payments & Administrative Expenses 1,377,099 Expected Investment Earnings¹2,502,881 Actual Net Investment Earnings 8,660,970 2021 Actuarial Investment Gain/(Loss)6,158,089 ¹ Expected Investment Earnings = 6.75% x (36,391,176 + 0.5 x 1,377,099) Plan Year Ending Gain/(Loss) 2021 2022 2023 2024 2025 4/30/2018 (61,588) (12,318)0000 4/30/2019 (489,796) (195,918) (97,959) 0 0 0 4/30/2020 (1,848,153) (1,108,892) (739,261) (369,631) 0 0 4/30/2021 6,158,089 4,926,471 3,694,853 2,463,236 1,231,618 0 Total 3,609,343 2,857,633 2,093,605 1,231,618 0 (A) 4/30/2020 Actuarial Assets:38,112,155 (I) Net Investment Income: 1. Interest and Dividends 890,572 2. Realized Gains (Losses) 0 3. Change in Actuarial Value 2,575,023 4. Investment Expenses (134,947) Total 3,330,648 (B) 4/30/2021 Actuarial Assets:42,819,902 Actuarial Asset Rate of Return = (2 x I) / (A + B - I):8.58% Market Value of Assets Rate of Return:23.36% Actuarial Gain/(Loss) due to Investment Return (Actuarial Asset Basis)711,600 Amounts Not Yet Recognized by Valuation Year Development of Investment Gain/Loss Development of Actuarial Value of Assets ACTUARIAL ASSET VALUATION April 30, 2021 Gains/(Losses) Not Yet Recognized Development of Asset Returns Village of Plainfield Police Pension Fund FOSTER & FOSTER | 26 58 CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS April 30, 2021 Actuarial Asset Basis INCOME Contributions: Member 655,092 Village 1,577,686 Total Contributions 2,232,778 Earnings from Investments Interest & Dividends 890,572 Change in Actuarial Value 2,575,023 Total Earnings and Investment Gains 3,465,595 EXPENSES Administrative Expenses: Investment Related¹ 134,947 Other 43,819 Total Administrative Expenses 178,766 Distributions to Members: Benefit Payments 811,860 Total Distributions 811,860 Change in Net Assets for the Year 4,707,747 Net Assets Beginning of the Year 38,112,155 Net Assets End of the Year² 42,819,902 ¹ Investment Related expenses include investment advisory, custodial and performance monitoring fees. ² Net Assets may be limited for actuarial consideration. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 27 59 STATISTICAL DATA ¹ 5/1/2021 5/1/2020 5/1/2019 5/1/2018 Actives - Tier 1 Number 44 47 49 N/A Average Current Age 44.5 44.2 43.6 N/A Average Age at Employment 26.0 25.8 26.3 N/A Average Past Service 18.5 18.4 17.3 N/A Average Annual Salary $111,943 $109,408 $106,550 N/A Actives - Tier 2 Number 13 12 8 N/A Average Current Age 28.1 27.5 27.4 N/A Average Age at Employment 24.6 24.9 24.9 N/A Average Past Service 3.5 2.6 2.5 N/A Average Annual Salary $84,334 $78,508 $75,828 N/A Service Retirees Number 10866 Average Current Age 61.0 61.1 62.8 N/A Average Annual Benefit $76,031 $74,270 $68,577 $65,715 Beneficiaries Number 0011 Average Current Age N/A N/A 82.3 N/A Average Annual Benefit N/A N/A $13,578 $13,578 Disability Retirees Number 2222 Average Current Age 47.5 46.5 45.5 N/A Average Annual Benefit $48,415 $48,415 $48,415 $48,415 Terminated Vested Number 6321 Average Current Age 41.5 43.0 50.2 N/A Average Annual Benefit ²$44,099 $22,163 $22,163 $22,163 ¹ Foster & Foster does not have enough historical data to include complete data prior to 5/1/2019. We will add historical data going forward. ² Average Annual Benefit for Terminated Vested members reflects the benefit for members entitled to a future annual benefit from the plan. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 28 60 AGE AND SERVICE DISTRIBUTION PAST SERVICE AGE 012345-910-14 15-19 20-24 25-29 30+ Total 15 - 19 000000 000000 20 - 24 000000 000000 25 - 29 141301 0000010 30 - 34 000003 000003 35 - 39 100000 6300010 40 - 44 000000 2820012 45 - 49 000000 3272014 50 - 54 000000 031116 55 - 59 000000 000101 60 - 64 000000 000101 65+000000 000000 Total 24130411 16 10 5 1 57 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 29 61 VALUATION PARTICIPANT RECONCILIATION 1. Active lives a. Number in prior valuation 5/1/2020 59 b. Terminations i. Vested (partial or full) with deferred benefits (3) ii. Non-vested or full lump sum distribution received 0 iii. Transferred service to other fund 0 c. Deaths i. Beneficiary receiving benefits 0 ii. No future benefits payable 0 d. Disabled 0 e. Retired (2) f. Continuing participants 54 g. New entrants 3 h. Total active life participants in valuation 57 2. Non-Active lives (including beneficiaries receiving benefits) Service Retirees, Vested Receiving Receiving Receiving Death Disability Vested Benefits Benefits Benefits Deferred Total a. Number prior valuation 8 0 2 3 13 Retired 200 0 2 Vested Deferred 000 3 3 Death, With Survivor 000 0 0 Death, No Survivor 000 0 0 Disabled 000 0 0 Refund of Contributions 000 0 0 Rehires 000 0 0 Expired Annuities 000 0 0 Data Corrections 000 0 0 Hired/Termed in Same Year 000 0 0 b. Number current valuation 10 0 2 6 18 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 30 62 SUMMARY OF CURRENT PLAN Article 3 Pension Fund The Plan is established and administered as prescribed by “Article 3. Police Pension Fund – Municipalities 500,000 and Under” of the Illinois Pension Code. Plan Administration The Plan is a single employer defined benefit pension plan administered by a Board of Trustees comprised of: a.) Two members appointed by the Municipality, b.) Two active Members of the Police Department elected by the Membership, and c.) One retired Member of the Police Department elected by the Membership. Credited Service Complete years of service as a sworn police officer employed by the Municipality. Normal Retirement Date Tier 1: Age 50 and 20 years of Credited Service. Tier 2: Age 55 with 10 years of Credited Service. Benefit Tier 1: 50% of annual salary attached to rank on last day of service plus 2.50% of annual salary for each year of service over 20 years, up to a maximum of 75% of salary. The minimum monthly benefit is $1,000 per month. Tier 2: 2.50% per year of service times the average salary for the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest prior to retirement times the number of years of service, up to a maximum of 75% of average salary. The minimum monthly benefit is $1,000 per month. For Tier 2 participants, the salary is capped at a rate of $106,800 as of 2011, indexed annually at a rate of CPI-U, but not to exceed 3.00%. Form of Benefit Tier 1: For married retirees, an annuity payable for the life of the Member; upon the death of the member, 100% of the Member’s benefit payable to the spouse until death. For unmarried retirees, the normal form is a Single Life Annuity. Tier 2: Same as above, but with 66 2/3% of benefit continued to spouse. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 31 63 Early Retirement Date Tier 1: Age 60 and 8 years of Credited Service. Tier 2: Age 50 with 10 years of Credited Service. Benefit Tier 1: Normal Retirement benefit with no minimum. Tier 2: Normal Retirement benefit, reduced 6.00% each year before age 55, with no minimum benefit. Form of Benefit Same as Normal Retirement Disability Benefit Eligibility Total and permanent as determined by the Board of Trustees. Benefit Amount A maximum of: a.) 65% of salary attached to the rank held by Member on last day of service, and; b.) The monthly retirement pension that the Member is entitled to receive if he or she retired immediately. For non-service connected disabilities, a benefit of 50% of salary attached to rank held by Member on last day of service. Cost-of-Living Adjustment Tier 1: Retirees: An annual increase equal to 3.00% per year after age 55. Those that retire prior to age 55 receive an increase of 1/12 of 3.00% for each full month since benefit commencement upon reaching age 55. Disabled Retirees: An annual increase equal to 3.00% per year of the original benefit amount beginning at age 60. Those that become disabled prior to age 60 receive an increase of 3.00% of the original benefit amount for each year since benefit commencement upon reaching age 60. Tier 2: An annual increase each January 1 equal to 3.00% per year or one-half of the annual unadjusted percentage increase in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the original pension after the attainment of age 60 or first anniversary of pension start date whichever is later. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 32 64 Pre-Retirement Death Benefit Service Incurred 100% of salary attached to rank held by Member on last day of service. Non-Service Incurred A maximum of: a.) 54% of salary attached to the rank held by Member on last day of service, and; b.) The monthly retirement pension earned by the deceased Member at the time of death, regardless of whether death occurs before or after age 50. For non-service deaths with less than 10 years of service, a re- fund of member contributions is provided. Vesting (Termination) Vesting Service Requirement Tier 1: 8 years. Tier 2: 10 years. Non-Vested Benefit Refund of Member Contributions. Vested Benefit Either the termination benefit, payable upon reaching age 60 (55 for Tier 2), provided contributions are not withdrawn, or a refund of member contributions. The termination benefit is 2.50% of annual salary held in the year prior to termination (8-year final average salary for Tier 2) times creditable service. Contributions Employee 9.91% of Salary. Municipality Remaining amount necessary for payment of Normal (current year’s) Cost and amortization of the accrued past service liability. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 33 65 GASB 67/68 SUMMARY Valuation Date 5/1/2021 5/1/2020 Measurement Date 4/30/2021 4/30/2020 Plan Membership: Inactives Currently Receiving Benefits 12 10 Inactives Not Yet Receiving Benefits 6 3 Active Plan Members 57 59 Total 75 72 Covered Payroll $ 6,021,819 $ 6,084,253 Net Pension Liability Total Pension Liability $ 52,346,796 $ 48,434,412 Plan Fiduciary Net Position 46,429,245 36,391,176 Net Pension Liability $ 5,917,551 $ 12,043,236 Plan Fiduciary Net Position As a Percentage of Total Pension Liability 88.70% 75.13% Net Pension Liability As a Percentage of Covered Payroll 98.27% 197.94% Total Pension Expense $ 639,392 $ 2,362,642 Development of Single Discount Rate Single Discount Rate 6.75% 6.75% Long-Term Expected Rate of Return 6.75% 6.75% High-quality Municipal Bond Rate 1.83% 2.85% Number of Years Future Benefit Payments Are Expected to be Paid 99 99 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 34 66 GASB 67/68 SCHEDULE OF CHANGES IN NET PENSION LIABILITY PLAN AND VILLAGE REPORTING GASB 68 Reporting Period Ending 04/30/2021 04/30/2020 Measurement Date 04/30/2021 04/30/2020 Total Pension Liability Service Cost 1,438,196 1,452,555 Interest 3,339,001 3,011,884 Changes of Benefit Terms - 118,430 Differences Between Expected and Actual Experience (52,953) 1,003,729 Changes of Assumptions - - Benefit Payments, Including Refunds of Employee Contributions (811,860) (640,262) Net Change in Total Pension Liability 3,912,384 4,946,336 Total Pension Liability - Beginning 48,434,412 43,488,076 Total Pension Liability - Ending (a) 52,346,796$ 48,434,412$ Plan Fiduciary Net Position Contributions - Employer 1,577,686 1,297,308 Contributions - Employee 655,092 580,065 Net Investment Income 8,660,970 532,039 Benefit Payments, Including Refunds of Employee Contributions (811,860) (640,262) Administrative Expense (43,819) (43,145) Net Change in Plan Fiduciary Net Position 10,038,069 1,726,005 Plan Fiduciary Net Position - Beginning 36,391,179 34,665,171 Adjustment to beginning of year (3) - Plan Fiduciary Net Position - Ending (b)46,429,245$ 36,391,176$ Net Pension Liability - Ending (a) - (b)5,917,551$ 12,043,236$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 88.70% 75.13% Covered Payroll 6,021,819$ 6,084,253$ Net Pension Liability as a Percentage of Covered Payroll 98.27% 197.94% Village of Plainfield Police Pension Fund FOSTER & FOSTER | 35 67 GASB 68 STATEMENT OF CHANGES IN NET PENSION LIABILITY VILLAGE REPORTING Sensitivity of Net Pension Liability to changes in the Discount Rate: Pension Plan Fiduciary Net Position Detailed information about the Pension Plan's Fiduciary Net Position is available in a separately issued Plan financial report. Total Pension Liability Plan Fiduciary Net Position Net Pension Liability (a)(b)(a)-(b) Balances at April 30, 2020 $ 48,434,412 $ 36,391,179 $ 12,043,233 Adjustment to beginning of year - (3) 3 Changes for a Year: Service Cost 1,438,196 - 1,438,196 Interest 3,339,001 - 3,339,001 Differences Between Expected and Actual Experience (52,953) - (52,953) Changes of Assumptions - - - Changes of Benefit Terms - - - Contributions - Employer - 1,577,686 (1,577,686) Contributions - Employee - 655,092 (655,092) Net Investment Income - 8,660,970 (8,660,970) Benefit Payments, Including Refunds of Employee Contributions (811,860) (811,860) - Administrative Expense - (43,819) 43,819 Net Changes 3,912,384 10,038,069 (6,125,685) Balances at April 30, 2021 $ 52,346,796 $ 46,429,245 $ 5,917,551 Increase (Decrease) 1% Decrease Current Discount Rate 1% Increase 5.75% 6.75% 7.75% Sponsor's Net Pension Liability 15,614,873$ 5,917,551$ (1,819,437)$ Village of Plainfield Police Pension Fund FOSTER & FOSTER | 36 68 GASB 68 PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS YEAR-END APRIL 30, 2021 For the year ended April 30, 2021, the Sponsor will recognize a pension expense of $639,392. On April 30, 2021, the Sponsor reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between actual and expected experience 780,675 3,533,594 Changes of assumptions 1,021,567 0 Net difference between projected and actual earnings on pension plan investments 0 3,609,345 Total $1,802,242 $7,142,939 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year-ended April 30: 2022 ($1,179,418) 2023 ($1,183,418) 2024 ($976,316) 2025 ($1,584,140) 2026 ($258,581) Thereafter ($158,824) Village of Plainfield Police Pension Fund FOSTER & FOSTER | 37 69 GASB 68 COMPONENTS OF PENSION EXPENSE YEAR-END APRIL 30, 2021 Net Pension Liability Deferred Inflows Deferred Outflows Pension Expense Beginning Balance $ 12,043,233 $ 4,956,290 $ 4,802,984 Total Pension Liability Factors: Service Cost 1,438,196 - - 1,438,196 Interest 3,339,001 - - 3,339,001 Changes in Benefit Terms - - - - Differences Between Expected and Actual Experience With Regard to Economic or D emographic Assumptions (52,953) 52,953 - - Current Year Amortization - (783,775) (111,525) (672,250) Changes in Assumptions About Future Economic or Demographic Factors or Other Inputs - - - - Current Year Amortization - - (476,366) 476,366 Benefit Payments, Including Refunds of Employee Contributions (811,860) - - - Net Change 3,912,384 (730,822) (587,891) 4,581,313 Plan Fiduciary Net Position: Contributions - Employer 1,577,686 - - - Contributions - Employee 655,092 - - (655,092) Projected Net Investment Income 2,502,881 - - (2,502,881) Difference Between Projected and Actual Earnings on Pension Plan Investments 6,158,089 6,158,089 - - Current Year Amortization - (1,307,675) (479,908) (827,767) Benefit Payments, Including Refunds of Employee Contributions (811,860) - - - Administrative Expenses (43,819) - - 43,819 Net Change 10,038,069 4,850,414 (479,908) (3,941,921) Adjustment to beginning of year (3) - - - Ending Balance $ 5,917,551 $ 9,075,882 $ 3,735,185 $ 639,392 Village of Plainfield Police Pension Fund FOSTER & FOSTER | 38 70 GASB 68 AMORTIZATION SCHEDULE – EXPERIENCE Year Base Established Differences Between Expected and Actual Experience Recognition Period (Years)2021 2022 2023 2024 2025 Thereafter 2021 (52,953)$ 9 (5,881)$ (5,884)$ (5,884)$ (5,884)$ (5,884)$ (23,536)$ 2020 1,003,729$ 9 111,525$ 111,525$ 111,525$ 111,525$ 111,525$ 334,575$ 2019 (4,863,845)$ 9 (540,427)$ (540,427)$ (540,427)$ (540,427)$ (540,427)$ (1,080,854)$ Prior Years (1,236,969)$ N/A (237,467)$ (138,170)$ (105,790)$ -$ -$ -$ Net Increase (Decrease) in Pension Expense (672,250) (572,956) (540,576) (434,786) (434,786) (769,815) Increase (Decrease) in Pension Expense Arising from the Recognition of the Effects of Differences between Expected and Actual Experience Village of Plainfield Police Pension Fund FOSTER & FOSTER | 39 71 GASB 68 AMORTIZATION SCHEDULE – CHANGES OF ASSUMPTIONS Year Base Established Effects of Changes in Assumptions Recognition Period (Years)2021 2022 2023 2024 2025 Thereafter 2019 1,585,849$ 9 176,205$ 176,205$ 176,205$ 176,205$ 176,205$ 352,410$ Prior Years 1,884,653$ N/A 300,161$ (30,955)$ (55,019)$ 144,252$ (93,941)$ -$ Net Increase (Decrease) in Pension Expense 476,366$ 145,250$ 121,186$ 320,457$ 82,264$ 352,410$ Increase (Decrease) in Pension Expense Arising from the Recognition of the Effects of Changes of Assumptions Village of Plainfield Police Pension Fund FOSTER & FOSTER | 40 72 GASB 68 AMORTIZATION SCHEDULE – INVESTMENTS Year Base Established Differences Between Projected and Actual Earnings Recognition Period (Years)2021 2022 2023 2024 2025 Thereafter 2021 (6,158,089)$ 5 (1,231,617)$ (1,231,618)$ (1,231,618)$ (1,231,618)$ (1,231,618)$ -$ 2020 1,848,153$ 5 369,631$ 369,631$ 369,631$ 369,631$ -$ -$ 2019 489,796$ 5 97,959$ 97,959$ 97,959$ -$ -$ -$ 2018 61,588$ 5 12,318$ 12,316$ -$ -$ -$ -$ 2017 (380,294)$ 5 (76,058)$ -$ -$ -$ -$ -$ Net Increase (Decrease) in Pension Expense (827,767)$ (751,712)$ (764,028)$ (861,987)$ (1,231,618)$ -$ Increase (Decrease) in Pension Expense Arising from the Recognition of the Differences Between Projected and Actual Earnings on Pension Plan Investments Village of Plainfield Police Pension Fund FOSTER & FOSTER | 41 73 GASB 67/68 SCHEDULE OF CONTRIBUTIONS The following assumptions were used to determine the Actuarially Determined Contribution for the plan year ending April 30, 2021: Calculation Timing The Actuarially Determined Contribution is calculated using a May 1, 2019 valuation date. Interest Rate 6.75% Mortality Rate Active Lives: PubS-2010 Employee mortality, projected 5 years past the valuation date with Scale MP-2018. 10% of active deaths are assumed to be in the line of duty. Inactive Lives: PubS-2010 Healthy Retiree mortality, projected 5 years past the valuation date with Scale MP-2018. Beneficiaries: PubS-2010 Survivor mortality, projected 5 years past the valuation date with Scale MP-2018. Disabled Lives: PubS-2010 Disabled mortality, projected 5 years past the valuation date with Scale MP-2018. Assumptions All other assumptions and methods used for determining the Actuarially Determined Contribution can be found in the May 1, 2019 Actuarial Valuation Report for the Village of Plainfield Police Pension Fund prepared by Foster & Foster Actuaries and Consultants. Plan Year-End Actuarially Determined C ontribution Contributions in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered Payroll Contributions as a Percentage of Covered Payroll 04/30/2021 1,580,337 1,577,686 2,651 6,021,819 26.20% 04/30/2020 1,274,674 1,297,308 (22,634) 6,084,253 21.32% Village of Plainfield Police Pension Fund FOSTER & FOSTER | 42 74 GASB 67 SCHEDULE OF INVESTMENT RETURNS For the year ended April 30, 2021, the annual money-weighted return on Pension Plan investments, net of pension plan investment expense, was 23.12 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Plan Year-End Annual Money-Weighted Rate of Return Net of Investment Expense 04/30/2021 23.12% 04/30/2020 1.49% Village of Plainfield Police Pension Fund FOSTER & FOSTER | 43 75 GASB 67/68 ASSUMPTIONS – GASB PENSION LIABILITY AND PENSION EXPENSE The GASB 67/GASB 68 Pension Liability as of April 30, 2021 and GASB 68 Pension Expense were determined as follows: Valuation Date May 1, 2021 Measurement Date April 30, 2021 GASB 68 Expense Measurement Period May 1, 2020 - April 30, 2021 Reporting Period May 1, 2020 - April 30, 2021 Discount Rate 6.75% Inflation 2.50% Salary Increases Service-based rates Other Assumptions A summary of complete assumptions can be found in the accompanying Actuarial Valuation as of May 1, 2021 for the Village of Plainfield Police Pension Fund prepared by Foster & Foster Actuaries and Consultants. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 44 76 GASB 67/68 NOTES TO THE FINANCIAL STATEMENTS Support for Long-Term Expected Rate of Return The Long-Term Expected Rate of Return on Pension Plan investments can be determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of Pension Plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the Long-Term Expected Rate of Return by weighting the expected future real rates of return by target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the Pension Plan’s target asset allocation adopted as of April 30, 2021, as provided by Sawyer Falduto Asset Management, LLC, are summarized in the following table: Concentrations The Plan did not hold investments in any one organization that represent 5 percent or more of the Pension Plan’s fiduciary net position. Discount Rate The Discount Rate used to measure the Total Pension Liability was 6.75 percent. The projection of cash flows used to determine the Discount Rate assumed that Plan Member contributions will be made at the current contribution rate and that Sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the Member rate. Based on those assumptions, the Pension Plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the Long-Term Expected Rate of Return on Pension Plan investments (6.75 percent) was applied to all periods of projected benefit payments to determine the Total Pension Liability. For the purpose of this valuation, the expected rate of return on pension plan investments is 6.75 percent. The municipal bond rate is 1.83 percent (based on the daily rate closest to, but not later than the measurement date of the S&P Municipal Bond 20 Year High Grade Rate Index). The resulting single discount rate is 6.75 percent. Asset Class Target Allocation Long Term Expected Real Rate of Return¹ Large Cap Domestic Equity 35.00%5.70% Small Cap Domestic Equity 11.70%7.50% International Equity 8.30%7.00% Fixed Income 45.00%1.30% Total 100.00% ¹ Please note that the implied long-term expected return of the total portfolio provided by the investment advisor would suggest that the Discount Rate is not supported. We will continue to monitor this in light of longer time horizons and the impact of Consolidation. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 45 77 GASB 67/68 SUMMARY OF CURRENT PLAN Article 3 Pension Fund The Plan is established and administered as prescribed by “Article 3. Police Pension Fund – Municipalities 500,000 and Under” of the Illinois Pension Code. Plan Administration The Plan is a single employer defined benefit pension plan administered by a Board of Trustees comprised of: a.) Two members appointed by the Municipality, b.) Two active members of the Police Department elected by the Membership. c.) One retired member of the Police Department elected by the Membership. Benefits Provided The Plan provides retirement, termination, disability and death benefits. A summary of the benefit provisions can be found in the accompanying Actuarial Valuation as of May 1, 2021 for the Village of Plainfield Police Pension Fund prepared by Foster & Foster Actuaries and Consultants. Village of Plainfield Police Pension Fund FOSTER & FOSTER | 46 78