HomeMy Public PortalAbout11-28-2022 COW Agenda and PacketCommittee of the Whole Workshop of the President and the Board of
Trustees
Monday, November 28, 2022
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
November 14, 2022.
11-14-2022 COW Minutes
C.PRESIDENTIAL COMMENTS
D.TRUSTEES COMMENTS
E.PUBLIC COMMENTS (3-5 minutes)
F.WORKSHOP
F.1.Staff will continue discussions with the Board regarding the 2022 Tax Levy.
11-14-22 Workshop 2022 Tax Levy
11-22-22 Rate Reduction Examples
REMINDERS -
•December 5 Village Board Meeting – 7:00 p.m.
•December 6 Plan Commission – 7:00 p.m.
•December 8 Historic Preservation Commission – 7:00 p.m.
•December 12 Next Committee of the Whole Workshop – 7:00 p.m.
1
Minutes of the Committee of the Whole Workshop of the President
and the Board of Trustees
Held on November 14, 2022
In the Boardroom
Mayor Argoudelis called the meeting to order at 7:00 p.m. Board Present: Mayor Argoudelis,
Trustee Ruane, Trustee Wojowski, and Trustee Benton. Board absent: Trustee Kalkanis, Trustee
Larson, and Trustee Calkins. Others Present: Joshua Blakemore, Village Administrator; Michelle
Gibas, Village Clerk; Derek Wold, Engineer; Scott Threewitt, Public Works Director; Randy Jessen,
Public Improvements Superintendent; Tom Topor, Lead Engineer; Jon Proulx, Planning Director; Traci
Pleckham, Management Services Director; and Robert Miller, Chief of Police. There were 0 persons in
the audience.
Trustee Ruane moved to approve the Minutes of the Committee of the Whole Workshop held on
October 24, 2022 and Minutes of the Joint Village Board and Plan Commission Meeting held on
November 1, 2022. Second by Trustee Wojowski. Voice Vote. All in favor, 0 opposed. Motion
carried.
PRESIDENTIAL COMMENTS
Mayor Argoudelis:
Offered condolences to the friends and family of Paul Fay.
Offered condolences to the friends and family of Jim Sobkoviak.
TRUSTEE COMMENTS
Trustee Benton:
Offered condolences to the friends and family of Paul Fay.
Commented on the Allen Force event.
Trustee Ruane:
Offered condolences to the friends and family of Paul Fay.
Congratulated Harry Benton.
Trustee Wojowski:
Offered condolences to the friends and family of Paul Fay.
Congratulated Harry Benton.
PUBLIC COMMENTS
No Comments.
WORKSHOP
1) 2023-2024 DRAFT FISCAL YEAR BUDGET UPDATE
Village Staff gave a presentation highlighting current and proposed Capital Projects including
Illinois Street Improvements; 2022 MFT & Non-MFT Street Improvement Program; pavement
condition index study; 2023 MFT & Non-MFT Street Improvement Program; Old Town
improvements; 143rd Street corridor; 127th Street and Naperville/Plainfield Road; I-55
interchange projects; Lockport Street Bypass feasibility; 2023 Lockport Street refresh;
Renwick Road improvements; Indian Boundary Road structure replacement; Persons Parkway;
Depot Drive; Wood Farm Road; street/sidewalk maintenance program; update the ROW and
permitting process; Transportation and Mobility Plan; FY 24 projects and beyond.
2
Village of Plainfield
Committee of the Whole Meeting Minutes – November 14, 2022
Page 2
2) YEAR 2022 TAX LEVY
Traci Pleckham gave a presentation regarding the 2022 Tax Levy. Director Pleckham reviewed
the General Fund; rates and extension history; 2022 tax rate distributions; overall tax bill;
residential EAV history; Industrial Tax diversification; and 2022 preliminary estimate of
$8,279,000. Director Pleckham then reviewed the Audit Fund, Tort Immunity Fund, and Police
Pension Funds. Director Pleckham reviewed several different tax bill scenarios. Director
Pleckham noted that additional tax levy discussions are scheduled for the November 28, 2022
Committee of the Whole Workshop.
Trustee Benton, Trustee Wojowski, and Trustee Ruane indicated a preference to lower the tax
rate. Trustee Benton suggested looking to cannabis and gaming as additional revenue resources.
Mayor Argoudelis encouraged a conservative approach to lowering the levy.
Mayor Argoudelis thanked staff and read the reminders.
Trustee Wojowski moved to adjourn. Second by Trustee Ruane. Voice Vote. All in favor, 0
opposed. Motion carried.
The meeting adjourned at 8:56 p.m.
Michelle Gibas, Village Clerk
3
MEMORANDUM
To: Mayor Argoudelis and the Board of Trustees
From: Traci Pleckham – Assistant Village Administrator/Management Services Director
CC: Joshua Blakemore – Village Administrator
Date: November 10, 2022
Subject: Year 2022 Tax Levy
The preliminary 2022 tax levy estimate approved at the November 7th Board Meeting represents
a maximum total request of $8,279,000 (or a 10% revenue increase); however, the actual dollar
amount the Village would receive is anticipated to be less. This higher 10% equalized assessed
value (EAV) estimate is to ensure that the Village captures the entire amount of the EAV, should
the Board decide to maintain the 2021 levy rate of .4669.
Staff has included levy calculation scenarios to help guide the 2022 Tax Levy Workshop
discussion. To summarize, the first scenario represents the Village’s approved preliminary
estimate (a 10% EAV increase from 2021 while maintaining the 2021 Village tax levy rate of
0.4669). The second scenario represents an estimated 8% EAV increase, while maintaining the
2021 tax levy rate of .04669. Finally, the third scenario represents an estimated 8% increase in
EAV along with a 5% reduction in the 2021 tax levy rate.
Also included for the Board’s review are the proposed fiscal year 2024 budgets for the Audit,
Tort Immunity, and Police Pension Funds, as well as the Police Pension actuarial report. As noted
in these documents, both the Tort Immunity and Police Pension Funds will require increased
levy contributions for the 2024 fiscal year.
Staff will present additional information at the workshop and is seeking Board discussion and
direction to finalize the tax levy process. As a reminder, 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. Below are the next steps for the proposed 2022 tax levy:
• November 24, 2022: Newspaper publication of the Notice of the Public Hearing for the
Tax levy
• December 5, 2022 Village Board Meeting: Public Hearing on the proposed 2022 Tax
Levy
• December 5, 2022 Village Board Meeting: consideration of the 2022 Tax Levy Ordinance
for the Village of Plainfield
4
2021 Levy
Extension
2022 Levy:
10% EAV increase
& 2021 rate Difference
Corporate 2,860,064 3,094,000 233,936
Police Protection 1,647,841 1,785,000 137,159
Immunity 686,196 825,000 138,804
IMRF 575,132 575,000 (132)
Audit 51,445 50,000 (1,445)
Police Pension 1,701,147 1,950,000 248,853
Total Levy 7,521,825$ 8,279,000$ 757,175$
2021 Levy
Extension
2022 Levy:
8% EAV increase
& 2021 rate Difference
Corporate 2,860,064 2,939,000 78,936
Police Protection 1,647,841 1,785,000 137,159
Immunity 686,196 825,000 138,804
IMRF 575,132 575,000 (132)
Audit 51,445 50,000 (1,445)
Police Pension 1,701,147 1,950,000 248,853
Total Levy 7,521,825$ 8,124,000$ 602,175$
2021 Levy
Extension
2022 Levy:
8% EAV increase
& 5% rate
reduction Difference
Corporate 2,860,064 2,534,000 (326,064)
Police Protection 1,647,841 1,785,000 137,159
Immunity 686,196 825,000 138,804
IMRF 575,132 575,000 (132)
Audit 51,445 50,000 (1,445)
Police Pension 1,701,147 1,950,000 248,853
Total Levy 7,521,825$ 7,719,000$ 197,175$
2022 Tax Levy Preliminary Estimate
2022 Levy: 8% EAV increase/.4669 rate
2022 Levy: 8% EAV increase/5% rate reduction
11/14/22 Workshop discussion 11/10/2022
5
Description
FY 2020
Actual
FY 2021
Actual
FY 2022
Actual
FY 2023
Adopted
Budget
FY 2023
Estimated
Amount
FY 2024
Proposed
Budget
Fund: 08 - Audit Fund
Property Taxes
Property Tax Revenue 36,152 30,373 40,353 50,000 51,023 50,000
Total: Property Taxes $36,152 $30,373 $40,353 $50,000 $51,023 $50,000
Investment Income
Interest Income 513 33 0 100 0 0
Total: Investment Income $513 $33 $0 $100 $0 $0
Revenues Total $36,665 $30,406 $40,353 $50,100 $51,023 $50,000
Unit: 00 - Non-Departmental
Division: 00 - Non-Divisional
Contrac - Contractual Services
Audit Village 39,565 40,320 42,550 45,000 44,000 47,000
Total: Contractual Services $39,565 $40,320 $42,550 $45,000 $44,000 $47,000
Expenditures Total $39,565 $40,320 $42,550 $45,000 $44,000 $47,000
Total: Audit Fund ($2,900)($9,914)($2,197)$5,100 $7,023 $3,000
**Audit Fund has a 4/30/22 Fund Balance of $7,582
Audit Fund
Revenue & Expense Detail
2023-2024 Fiscal Year Budget
Revenues
Expenditures
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
FY 2020
Actual
FY 2021
Actual
FY 2022
Actual
FY 2023
AdoptedBudget
FY 2024
ProposedBudget
Audit Fund Revenue History
Property TaxRevenue
DRAFT 11/10/2022
6
Description
FY 2020
Actual
FY 2021
Actual
FY 2022
Actual
FY 2023
Adopted
Budget
FY 2023
Estimated
Amount
FY 2024
Proposed
Budget
Fund: 07 - Tort Immunity Fund
Property Taxes
Property Tax Revenue 399,426 150,397 349,689 685,000 678,000 825,000
Total: Property Taxes $399,426 $150,397 $349,689 $685,000 $678,000 $825,000
Investment Income
Interest Income 8,237 484 0 300 0 0
Total: Investment Income $8,237 $484 $0 $300 $0 $0
Other Reimbursements $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
Transfers
Transfer from General 0 0 0 300,000 300,000 0
Total: Transfers $0 $0 $0 $300,000 $300,000 $0
Revenues Total $407,663 $150,881 $349,689 $985,300 $978,000 $825,000
Unit: 00 - Non-Departmental
Contractual Services
Bond-Treasurer 336 336 336 336 336 336
Comm. Umbrella Liability 157,579 220,751 352,420 437,500 436,500 525,000
Workman's Comp. Ins.189,364 189,914 240,481 315,000 311,000 360,000
Total: Contractual Services $347,279 $411,001 $593,237 $752,836 $747,836 $885,336
Expenditures Total $347,279 $411,001 $593,237 $752,836 $747,836 $885,336
Total: Tort Immunity Fund $60,384 ($260,120)($243,548)$232,464 $230,164 ($60,336)
**Tort Immunity Fund has a 4/30/22 Fund Balance of ($761)
Expenditures
Tort Immunity Fund
Revenue & Expense Detail
2023-2024 Fiscal Year Budget
Revenues
MISC - Miscellaneous
Total: Miscellaneous
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
FY 2020
Actual
FY 2021
Actual
FY 2022
Actual
FY 2023
Adopted
Budget
FY 2024
Proposed
Budget
Tort Immunity Revenue History
Property Tax Revenue
DRAFT 11/10/2022
7
Description
FY 2020
Actual
FY 2021
Actual
FY 2022
Actual
FY 2023
Adopted
Budget
FY 2023
Estimated
Amount
FY 2024
Proposed
Budget
Fund: 10 - Police Pension Fund
Investment Income
Interest Income 1,012,050 890,572 1,945,058 625,000 650,000 650,000
Realized Gain/Loss 765,702 580,856 365,528 300,000 300,000 300,000
Unrealized Gain/Loss (1,129,771)7,324,489 (5,853,280)200,000 200,000 200,000
Total: Investment Income $647,981 $8,795,917 ($3,542,694)$1,125,000 $1,150,000 $1,150,000
MISC - Miscellaneous
Other Receipts 0 226 50 0 0 0
Employee Contributions 580,065 655,092 1,090,656 695,000 775,000 695,000
Employer Contributions 1,297,308 1,577,460 1,697,212 1,700,000 1,700,000 1,950,000
Total: Miscellaneous $1,877,373 $2,232,778 $2,787,918 $2,395,000 $2,475,000 $2,645,000
Revenues Total $2,525,354 $11,028,695 ($754,776)$3,520,000 $3,625,000 $3,795,000
Police Pension Fund
Revenue & Expense Detail
2023-2024 Fiscal Year Budget
Revenues
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
FY 2020 ActualFY 2021 ActualFY 2022 Actual FY 2023
Adopted
Budget
FY 2024
Proposed
Budget
Police Pension Contribution History
Employee Contributions
Employer Contributions
DRAFT 11/10/2022
8
Description
FY 2020
Actual
FY 2021
Actual
FY 2022
Actual
FY 2023
Adopted
Budget
FY 2023
Estimated
Amount
FY 2024
Proposed
Budget
Police Pension Fund
Revenue & Expense Detail
2023-2024 Fiscal Year Budget
Unit: 00 - Non-Departmental
Division: 00 - Non-Divisional
Salaries and Wages
Pension Payments 640,262 811,860 936,000 1,100,000 1,175,000 1,250,000
Total: Salaries & Wages $640,262 $811,860 $936,000 $1,100,000 $1,175,000 $1,250,000
Benefits
Travel/Training 6,765 (341)2,185 5,000 3,000 5,000
Total: Benefits $6,765 ($341)$2,185 $5,000 $3,000 $5,000
Supplies and Commodities
Office Supplies/Postage 123 0 0 500 500 500
Dues & Subscriptions 7,111 8,213 8,074 8,500 8,500 8,500
Total: Supplies & Commodities $7,234 $8,213 $8,074 $9,000 $9,000 $9,000
Contractual Services
Contractual Services 29,146 35,946 44,311 35,000 40,000 40,000
Total: Contractual Services $29,146 $35,946 $44,311 $35,000 $40,000 $40,000
Other
Investment Expense 115,940 134,947 152,481 130,000 140,000 150,000
Total: OTHER - Other $115,940 $134,947 $152,481 $130,000 $140,000 $150,000
Total: Non-Divisional $799,347 $990,625 $1,143,051 $1,279,000 $1,367,000 $1,454,000
Expenditures Total $799,347 $990,625 $1,143,051 $1,279,000 $1,367,000 $1,454,000
Total: Police Pension Fund $1,726,007 $10,038,070 ($1,897,827)$2,241,000 $2,258,000 $2,341,000
Expenditures
DRAFT 11/10/2022
9
10
Levy
Year
Village of
Plainfield
Will County
& Forest
Preserve
School
District 202
Joliet
Junior
College 525
Plainfield
Township
Park
District
Plainfield
Public
Library
District
Plainfield
Fire
Protection
District
Township
and Other
Total Tax
Rate
Total Taxable
Equalized
Assessed Value
2010 0.4079 0.6841 4.8618 0.2270 0.1959 0.1573 0.8656 0.1653 7.5649 1,318,896,845
2011 0.4297 0.7244 5.2705 0.2463 0.2126 0.1720 0.8872 0.1804 8.1231 1,244,982,885
2012 0.4567 0.7244 5.8323 0.2768 0.2433 0.1894 0.9216 0.1960 8.8405 1,178,610,057
2013 0.4669 0.8186 6.2265 0.2955 0.2535 0.2013 0.9970 0.2106 9.4699 1,149,746,660
2014 0.4669 0.8410 6.2622 0.3085 0.2742 0.2057 1.0122 0.2125 9.5832 1,173,327,609
2015 0.4669 0.8295 6.2410 0.3065 0.2692 0.2021 1.0036 0.2091 9.5279 1,211,918,620
2016 0.4669 0.8091 5.8941 0.3099 0.2560 0.1939 0.9674 0.1991 9.0964 1,282,556,687
2017 0.4669 0.7881 5.7067 0.2994 0.2541 0.1921 0.9650 0.1952 8.8675 1,331,313,906
2018 0.4669 0.7431 5.5732 0.2924 0.2591 0.1893 0.9537 0.1908 8.6685 1,390,180,402
2019 0.4669 0.7304 5.4425 0.2938 0.2554 0.1848 0.9339 0.1859 8.4936 1,465,066,425
2020 0.4669 0.7231 5.3421 0.2891 0.2537 0.1825 0.9261 0.1824 8.3659 1,551,500,615
2021 0.4669 0.7100 5.2250 0.2848 0.2526 0.1821 0.9302 0.1812 8.2328 1,611,013,888
Comparison of Tax Rates per $100 of Assessed Valuation
Village of Plainfield - Will County
11
VILLAGE OF PLAINFIELD
POLICE PENSION FUND
ACTUARIAL VALUATION
AS OF MAY 1, 2022
CONTRIBUTIONS APPLICABLE TO THE
PLAN/FISCAL YEAR ENDING APRIL 30, 2024
GASB 67/68 DISCLOSURE INFORMATION
AS OF APRIL 30, 2022
12
184 Shuman Blvd, Suite 305 Naperville, IL 60563 · (630) 620-0200 · Fax (239) 481-0634 · www.foster-foster.com
August 12, 2022
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.
13
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
14
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
15
SUMMARY OF REPORT
The regular annual actuarial valuation of the Village of Plainfield Police Pension Fund, performed as of
May 1, 2022, 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, 2024.
The contribution requirements, compared with those set forth in the May 1, 2021 actuarial report, are as
follows:
Valuation Date 5/1/2022 5/1/2021
Applicable to Fiscal Year Ending 4/30/2024 4/30/2023
Total Recommended Contribution $2,573,401 $2,245,503
% of Projected Annual Payroll 39.1% 37.3%
Member Contributions (Est.) (651,403) (596,762)
% of Projected Annual Payroll (9.9%) (9.9%)
Village Recommended Contribution 1,921,998 1,648,741
% of Projected Annual Payroll 29.2% 27.4%
As you can see, the Total Recommended Contribution shows an increase when compared to the results
determined in the May 1, 2021 actuarial valuation report. The increase is primarily attributable to
assumption changes and an increase normal cost resulting from an increase in the number of active
employees.
Plan experience was unfavorable overall on the basis of the plan's actuarial assumptions. Sources of
unfavorable experience included an investment return of 5.87% (Actuarial Asset Basis) which fell short
of the 6.75% assumption and less turnover than expected. These losses were offset in part by a gain
associated with an average salary increase of 3.38% which fell short of the 4.79% assumption.
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 5 16
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
Based on the results of the 2022 experience study performed for the Illinois Police Officers’ Pension
Investment Fund, the following assumption changes were made:
• Updated mortality, retirement, disability, and termination rate tables.
• Updated assumed salary increase rates.
• Reduced assumed payroll growth rate from 3.50% to 3.25%.
There were no method changes since the prior valuation.
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 6 17
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
New Assump Old Assump
5/1/2022 5/1/2022 5/1/2021
A. Participant Data
Number Included
Actives 62 62 57
Service Retirees 11 11 10
Beneficiaries 0 0 0
Disability Retirees 2 2 2
Terminated Vested 8 8 6
Total 83 83 75
Total Annual Payroll $6,573,191 $6,573,191 $6,021,819
Payroll Under Assumed Ret. Age 6,573,191 6,573,191 6,021,819
Annual Rate of Payments to:
Service Retirees 856,411 856,411 760,314
Beneficiaries 0 0 0
Disability Retirees 96,830 96,830 96,830
Terminated Vested 132,298 132,298 132,298
B. Assets
Actuarial Value 47,185,634 47,185,634 42,819,902
Market Value 44,531,420 44,531,420 46,429,245
C. Liabilities
Present Value of Benefits
Actives
Retirement Benefits 48,116,056 46,191,761 41,987,271
Disability Benefits 3,336,351 3,502,965 3,229,281
Death Benefits 418,375 440,468 422,571
Vested Benefits 2,316,578 2,719,295 3,010,700
Service Retirees 14,092,051 14,211,548 13,131,245
Beneficiaries 0 0 0
Disability Retirees 1,776,609 1,763,611 1,741,107
Terminated Vested 1,992,389 1,963,020 1,780,608
Total 72,048,409 70,792,668 65,302,783
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 7 18
New Assump Old Assump
C. Liabilities - (Continued)5/1/2022 5/1/2022 5/1/2021
Present Value of Future Salaries 61,979,843 62,253,408 57,549,719
Present Value of Future
Member Contributions 6,142,202 6,169,313 5,703,177
Normal Cost (Retirement)1,234,917 1,113,087 1,028,795
Normal Cost (Disability)195,975 196,934 177,058
Normal Cost (Death)20,572 21,757 20,225
Normal Cost (Vesting)125,745 141,652 144,111
Total Normal Cost 1,577,209 1,473,430 1,370,189
Present Value of Future
Normal Costs 13,715,953 12,810,545 12,038,394
Accrued Liability (Retirement)37,214,050 36,314,619 32,707,045
Accrued Liability (Disability)1,561,451 1,703,682 1,591,901
Accrued Liability (Death)215,618 226,614 236,435
Accrued Liability (Vesting)1,480,288 1,799,029 2,076,048
Accrued Liability (Inactives) 17,861,049 17,938,179 16,652,960
Total Actuarial Accrued Liability 58,332,456 57,982,123 53,264,389
Unfunded Actuarial Accrued
Liability (UAAL)11,146,822 10,796,489 10,444,487
Funded Ratio (AVA / AL)80.9%81.4%80.4%
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 8 19
New Assump Old Assump
5/1/2022 5/1/2022 5/1/2021
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactives 17,861,049 17,938,179 16,652,960
Actives 13,030,453 12,441,320 10,781,608
Member Contributions 7,619,099 7,619,099 6,801,338
Total 38,510,601 37,998,598 34,235,906
Non-vested Accrued Benefits 2,254,453 2,110,076 2,227,328
Total Present Value Accrued Benefits 40,765,054 40,108,674 36,463,234
Funded Ratio (MVA / PVAB)109.2%111.0%127.3%
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments 0 0
Assumption Changes 656,380 0
Plan Experience 0 2,151,762
Benefits Paid 0 (936,000)
Interest 0 2,429,678
Other 0 0
Total 656,380 3,645,440
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 9 20
New Assump Old Assump
Valuation Date 5/1/2022 5/1/2022 5/1/2021
Applicable to Fiscal Year Ending 4/30/2024 4/30/2024 4/30/2023
E. Pension Cost
Normal Cost ¹ $1,683,671 $1,572,887 $1,462,677
% of Total Annual Payroll ¹25.6 23.9 24.3
Administrative Expenses ¹ 58,253 58,253 46,777
% of Total Annual Payroll ¹0.9 0.9 0.8
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 19 years
(as of 5/1/2022) ¹ 831,477 789,833 736,049
% of Total Annual Payroll ¹12.6 12.0 12.2
Total Recommended Contribution 2,573,401 2,420,973 2,245,503
% of Total Annual Payroll ¹39.1 36.8 37.3
Expected Member Contributions ¹ (651,403)(651,403)(596,762)
% of Total Annual Payroll ¹(9.9)(9.9)(9.9)
Expected Village Contribution 1,921,998 1,769,570 1,648,741
% of Total Annual Payroll ¹29.2 26.9 27.4
F. Past Contributions
Plan Years Ending:4/30/2022
Total Recommended Contribution 2,304,771
Village Requirement 1,690,118
Actual Contributions Made:
Members (excluding buyback)614,653
Village 1,697,262
Total 2,311,915
G. Net Actuarial (Gain)/Loss 530,613
¹ Contributions developed as of 5/1/2022 displayed above have been adjusted to
account for assumed interest.
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 10 21
H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability as of:
Projected Unfunded
Year Accrued Liability
2022 11,146,822
2023 11,067,756
2024 10,956,330
2028 10,122,148
2033 7,906,026
2037 4,791,621
2041 0
I. (i) 5 Year Comparison of Actual and Assumed Salary Increases
Actual Assumed
Year Ended 4/30/2022 3.38%4.79%
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 4/30/2022 -7.81%5.87%6.75%
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 22
DEVELOPMENT OF MAY 1, 2022 AMORTIZATION PAYMENT
(1)Unfunded Actuarial Accrued Liability as of May 1, 2021 $10,444,487
(2)Sponsor Normal Cost developed as of May 1, 2021 773,427
(3)Expected administrative expenses for the year ended April 30, 2022 43,819
(4)Expected interest on (1), (2) and (3)758,688
(5)Sponsor contributions to the System during the year ended April 30, 2022 1,697,262
(6)Expected interest on (5)57,283
(7)Expected Unfunded Actuarial Accrued Liability as of
April 30, 2022, (1)+(2)+(3)+(4)-(5)-(6)10,265,876
(8)Change to UAAL due to Assumption Change 350,333
(9)Change to UAAL due to Actuarial (Gain)/Loss 530,613
(10)Unfunded Accrued Liability as of May 1, 2022 11,146,822
(11)UAAL Subject to Amortization (100% AAL less Actuarial Assets)11,146,822
Date Years 5/1/2022 Amortization
Established Remaining Amount Amount
5/1/2022 19 11,146,822 778,901
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 12 23
(1)Unfunded Actuarial Accrued Liability (UAAL) as of May 1, 2021 $10,444,487
(2)Expected UAAL as of May 1, 2022 10,265,876
(3)Summary of Actuarial (Gain)/Loss, by component:
Investment Return (Actuarial Asset Basis)382,620
Salary Increases (471,634)
Active Decrements 138,032
Inactive Mortality 57,543
Other 424,052
Change in UAAL due to (Gain)/Loss 530,613
Change to UAAL due to Assumption Change 350,333
(4)Actual UAAL as of May 1, 2022 $11,146,822
DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 13 24
(1)Contribution Determined as of May 1, 2021 1,648,741$
(2)Summary of Contribution Impact by component:
Change in Normal Cost 110,210
Change in Assumed Administrative Expense 11,476
Investment Return (Actuarial Asset Basis)27,991
Salary Increases (34,503)
New Entrants 3,530
Active Decrements 10,098
Inactive Mortality 4,210
Contributions (More) or Less than Recommended (540)
Increase in Amortization Payment Due to Payroll Growth Assumption 25,762
Change in Expected Member Contributions (54,641)
Assumption Change 152,428
Other 17,236
Total Change in Contribution 273,257
(3)Contribution Determined as of May 1, 2022 $1,921,998
RECONCILIATION OF CHANGES IN CONTRIBUTION REQUIREMENT
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 14 25
New Assump Old Assump
Valuation Date 5/1/2022 5/1/2022 5/1/2021
Applicable to Fiscal Year Ending 4/30/2024 4/30/2024 4/30/2023
Actuarial Accrued Liability (PUC)53,827,632 52,915,619 48,708,894
Actuarial Value of Assets 47,185,634 47,185,634 42,819,902
Unfunded Actuarial Accrued Liability (UAAL)6,641,998 5,729,985 5,888,992
UAAL Subject to Amortization 1,259,235 438,423 1,018,103
Normal Cost ¹ $2,129,500 $2,084,203 $1,895,041
% of Total Annual Payroll ¹32.4 31.7 31.5
Administrative Expenses ¹ 58,253 58,253 46,777
% of Total Annual Payroll ¹0.9 0.9 0.8
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 18 years
(as of 5/1/2022) ¹ 97,676 33,385 74,481
% of Total Annual Payroll ¹1.5 0.5 1.2
Total Required Contribution 2,285,429 2,175,841 2,016,299
% of Total Annual Payroll ¹34.8 33.1 33.5
Expected Member Contributions ¹ (651,403)(651,403)(596,762)
% of Total Annual Payroll ¹(9.9)(9.9)(9.9)
Expected Village Contribution 1,634,026 1,524,438 1,419,537
% of Total Annual Payroll ¹24.9 23.2 23.6
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 5/1/2022 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 26
PROJECTION OF BENEFIT PAYMENTS
Payments for Payments for Total
Year Current Actives Current Inactives Payments
2022 105,384 1,018,823 1,124,207
2023 286,025 971,208 1,257,233
2024 486,370 993,798 1,480,168
2025 700,915 1,016,109 1,717,024
2026 937,000 1,092,636 2,029,636
2027 1,171,529 1,168,607 2,340,136
2028 1,468,262 1,210,591 2,678,853
2029 1,763,771 1,249,174 3,012,945
2030 2,078,179 1,269,274 3,347,453
2031 2,408,517 1,296,173 3,704,690
2032 2,769,297 1,323,507 4,092,804
2033 3,172,301 1,342,995 4,515,296
2034 3,538,435 1,360,847 4,899,282
2035 3,900,763 1,376,980 5,277,743
2036 4,248,083 1,391,377 5,639,460
2037 4,580,523 1,404,067 5,984,590
2038 4,896,682 1,437,713 6,334,395
2039 5,175,992 1,448,589 6,624,581
2040 5,451,141 1,457,817 6,908,958
2041 5,718,995 1,465,306 7,184,301
2042 6,011,997 1,470,888 7,482,885
2043 6,307,758 1,474,316 7,782,074
2044 6,582,768 1,475,240 8,058,008
2045 6,872,554 1,473,231 8,345,785
2046 7,155,030 1,467,810 8,622,840
2047 7,431,850 1,458,509 8,890,359
2048 7,733,697 1,444,809 9,178,506
2049 8,043,332 1,426,270 9,469,602
2050 8,397,364 1,402,504 9,799,868
2051 8,750,307 1,373,193 10,123,500
2052 9,040,666 1,338,142 10,378,808
2053 9,266,966 1,297,245 10,564,211
2054 9,450,729 1,250,552 10,701,281
2055 9,601,821 1,198,315 10,800,136
2056 9,724,872 1,140,878 10,865,750
2057 9,819,796 1,078,709 10,898,505
2058 9,885,022 1,012,621 10,897,643
2059 9,918,448 943,554 10,862,002
2060 9,917,361 872,607 10,789,968
2061 9,878,404 801,033 10,679,437
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 16 27
ACTUARIAL ASSUMPTIONS AND METHODS
Interest Rate 6.75% per year compounded annually, net of investment related
expenses.
Mortality Rate Active Lives:
PubS-2010 Employee mortality, unadjusted, with generational
improvements with most recent projection scale (currently Scale
MP-2021). 10% of active deaths are assumed to be in the line of
duty.
Inactive Lives:
PubS-2010 Healthy Retiree mortality, adjusted by a factor of
1.15 for male retirees and unadjusted for female retirees, with
generational improvements with most recent projection scale
(currently Scale MP-2021).
Beneficiaries:
PubS-2010 Survivor mortality, unadjusted for male beneficiaries
and adjusted by a factor of 1.15 for female beneficiaries, with
generational improvements with most recent projection scale
(currently Scale MP-2021).
Disabled Lives:
PubS-2010 Disabled mortality, adjusted by a factor of 1.08 for
male disabled members and unadjusted for female disabled
members, with generational improvements with most recent
projection scale (currently Scale MP-2021).
The mortality assumptions sufficiently accommodate anticipated
future mortality improvements.
Retirement Age See table at end of this section. This is based on a 2022
experience study performed for the Illinois Police Officers’
Pension Investment Fund.
Disability Rate See table at end of this section. 60% of the disabilities are
assumed to be in the line of duty. This is based on a 2022
experience study performed for the Illinois Police Officers’
Pension Investment Fund.
Termination Rate See table at end of this section. This is based on a 2022
experience study performed for the Illinois Police Officers’
Pension Investment Fund.
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 17 28
Salary Increases See table below. This is based on a 2022 experience study
performed for the Illinois Police Officers’ Pension Investment
Fund.
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.
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 3.25% 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 9.50%
2 8.00%
3 7.50%
4 7.00%
5 6.00%
6 5.00%
7 - 11 4.00%
12 - 29 3.75%
30+3.50%
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 18 29
Decrement Tables
% Terminating % Becoming Disabled % Retiring % Retiring
During the Year During the Year During the Year (Tier 1)During the Year (Tier 2)Salary Scale
Service Rate Age Rate Age Rate Age Rate
0 13.00%20 0.000%50 - 54 20%50 - 54 5%
1 8.00%25 0.029%55 - 62 25%55 40%
2 7.00%30 0.133%63 33%56 - 62 25%
3 6.00%35 0.247%64 40%63 33%
4 5.00%40 0.399%65 - 69 55%64 40%
5 4.50%45 0.561%70+100%65 - 69 55%
6 4.00%50 0.675%70+100%
7 3.50%55 0.855%
8 3.00%60 1.093%
9 2.50%
10 2.25%
11 2.00%
12 1.75%
13 1.50%
14+1.25%
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 19 30
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 31
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.
• 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
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 21 32
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
518.2% on May 1, 2019 to 295.2% on May 1, 2022, indicating that the plan has been rapidly
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 30.6%. 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 79.4% on May 1, 2019 to 80.9% on May 1, 2022, due mainly to
regular village contributions about equal to the recommended amount.
• 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, stayed
approximately the same from May 1, 2019 to May 1, 2022. The current Net Cash Flow Ratio of
4.0% 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 33
PLAN MATURITY MEASURES AND OTHER RISK METRICS
5/1/2022 5/1/2021 5/1/2020 5/1/2019
Support Ratio
Total Actives 62 57 59 57
Total Inactives 21 18 13 11
Actives / Inactives 295.2%316.7%453.8%518.2%
Asset Volatility Ratio
Market Value of Assets (MVA)44,531,420 46,429,245 36,391,179 34,665,171
Total Annual Payroll 6,573,191 6,021,819 6,084,253 5,827,563
MVA / Total Annual Payroll 677.5%771.0%598.1%594.8%
Accrued Liability (AL) Ratio
Inactive Accrued Liability 17,861,049 16,652,960 12,089,735 8,698,914
Total Accrued Liability 58,332,456 53,264,389 49,387,763 44,466,277
Inactive AL / Total AL 30.6%31.3%24.5%19.6%
Funded Ratio
Actuarial Value of Assets (AVA)47,185,634 42,819,902 38,112,155 35,321,046
Total Accrued Liability 58,332,456 53,264,389 49,387,763 44,466,277
AVA / Total Accrued Liability 80.9%80.4%77.2%79.4%
Net Cash Flow Ratio
Net Cash Flow ¹1,797,348 1,377,099 1,193,966 1,397,895
Market Value of Assets (MVA)44,531,420 46,429,245 36,391,179 34,665,171
Ratio 4.0%3.0%3.3%4.0%
¹ Determined as total contributions minus benefit payments and administrative expenses.
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 23 34
STATEMENT OF FIDUCIARY NET POSITION
April 30, 2022
ASSETS MARKET VALUE
Cash and Cash Equivalents:
Certificates of Deposit 1,461,660
Cash 134,525
Total Cash and Equivalents 1,596,185
Total Receivable 112,667
Investments:
Municipal Obligations 3,407,753
Corporate Bonds 137,094
U.S. Gov't and Agency Obligations 15,142,361
Mutual Funds 24,141,720
Total Investments 42,828,928
Total Assets 44,537,780
LIABILITIES
Liabilities:
Payable:
Accounts Payable 6,360
Total Liabilities 6,360
Net Assets:
Active and Retired Members' Equity 44,531,420
NET POSITION RESTRICTED FOR PENSIONS 44,531,420
TOTAL LIABILITIES AND NET ASSETS 44,537,780
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 24 35
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED April 30, 2022
Market Value Basis
ADDITIONS
Contributions:
Member 614,653
Miscellaneous Member Revenue 476,003
Village 1,697,262
Total Contributions 2,787,918
Investment Income:
Net Increase in Fair Value of Investments (5,487,752)
Interest & Dividends 1,945,059
Less Investment Expense ¹ (152,481)
Net Investment Income (3,695,174)
Total Additions (907,256)
DEDUCTIONS
Distributions to Members:
Benefit Payments 936,000
Total Distributions 936,000
Administrative Expenses 54,570
Total Deductions 990,570
Net Increase in Net Position (1,897,826)
NET POSITION RESTRICTED FOR PENSIONS
Beginning of the Year 46,429,245
Adjustment to beginning of year 1
End of the Year 44,531,420
¹ Investment Related expenses include investment advisory,
custodial and performance monitoring fees.
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 25 36
Market Value of Assets, 4/30/2022 44,531,420
(Gains)/Losses Not Yet Recognized 2,654,214
Actuarial Value of Assets, 4/30/2022 47,185,634
4/30/2022 Limited Actuarial Assets:47,185,634
Market Value of Assets, 4/30/2021 46,429,246
Contributions Less Benefit Payments & Administrative Expenses 1,797,348
Expected Investment Earnings¹3,194,635
Actual Net Investment Earnings (3,695,174)
2022 Actuarial Investment Gain/(Loss)(6,889,809)
¹ Expected Investment Earnings = 6.75% x (46,429,246 + 0.5 x 1,797,348)
Plan Year
Ending Gain/(Loss)2022 2023 2024 2025 2026
4/30/2019 (489,796)(97,959)0 0 0 0
4/30/2020 (1,848,153)(739,261)(369,631)0 0 0
4/30/2021 6,158,089 3,694,853 2,463,236 1,231,618 0 0
4/30/2022 (6,889,809)(5,511,847)(4,133,885)(2,755,924)(1,377,962)0
Total (2,654,214)(2,040,280)(1,524,306)(1,377,962)0
(A) 4/30/2021 Actuarial Assets:42,819,902
(I) Net Investment Income:
1. Interest and Dividends 1,945,059
2. Realized Gains (Losses) 0
3. Change in Actuarial Value 775,806
4. Investment Expenses (152,481)
Total 2,568,384
(B) 4/30/2022 Actuarial Assets:47,185,634
Actuarial Asset Rate of Return = (2 x I) / (A + B - I):5.87%
Market Value of Assets Rate of Return:-7.81%
Actuarial Gain/(Loss) due to Investment Return (Actuarial Asset Basis)(382,620)
Development of Investment Gain/Loss
Development of Actuarial Value of Assets
ACTUARIAL ASSET VALUATION
April 30, 2022
Development of Asset Returns
Gains/(Losses) Not Yet Recognized
Amounts Not Yet Recognized by Valuation Year
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 26 37
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
April 30, 2022
Actuarial Asset Basis
INCOME
Contributions:
Member 614,653
Village 1,697,262
Total Contributions 2,787,918
Earnings from Investments
Interest & Dividends 1,945,059
Change in Actuarial Value 775,806
Total Earnings and Investment Gains 2,720,865
EXPENSES
Administrative Expenses:
Investment Related¹152,481
Other 54,570
Total Administrative Expenses 207,051
Distributions to Members:
Benefit Payments 936,000
Total Distributions 936,000
Change in Net Assets for the Year 4,365,732
Net Assets Beginning of the Year 42,819,902
Net Assets End of the Year²47,185,634
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 38
STATISTICAL DATA
5/1/2022 5/1/2021 5/1/2020 5/1/2019
Actives - Tier 1
Number 43 44 47 49
Average Current Age 45.1 44.5 44.2 43.6
Average Age at Employment 25.5 26.0 25.8 26.3
Average Past Service 19.6 18.5 18.4 17.3
Average Annual Salary $115,010 $111,943 $109,408 $106,550
Actives - Tier 2
Number 19 13 12 8
Average Current Age 29.1 28.1 27.5 27.4
Average Age at Employment 25.9 24.6 24.9 24.9
Average Past Service 3.2 3.5 2.6 2.5
Average Annual Salary $85,671 $84,334 $78,508 $75,828
Service Retirees
Number 11 10 8 6
Average Current Age 62.1 61.0 61.1 62.8
Average Annual Benefit $77,856 $76,031 $74,270 $68,577
Beneficiaries
Number 0 0 0 1
Average Current Age N/A N/A N/A 82.3
Average Annual Benefit N/A N/A N/A $13,578
Disability Retirees
Number 2 2 2 2
Average Current Age 48.5 47.5 46.5 45.5
Average Annual Benefit $48,415 $48,415 $48,415 $48,415
Terminated Vested
Number 8 6 3 2
Average Current Age 42.1 41.5 43.0 50.2
Average Annual Benefit ¹$44,099 $44,099 $22,163 $22,163
¹ 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 39
AGE AND SERVICE DISTRIBUTION
PAST SERVICE
AGE 0 1 2 3 4 5-9 10-14 15-19 20-24 25-29 30+Total
15 - 19 0 0 0 0 0 0 0 0 0 0 0 0
20 - 24 0 0 0 0 0 0 0 0 0 0 0 0
25 - 29 3 1 4 1 2 1 0 0 0 0 0 12
30 - 34 2 0 0 0 1 2 0 0 0 0 0 5
35 - 39 1 1 0 0 0 1 2 3 0 0 0 8
40 - 44 0 0 0 0 0 0 2 11 2 0 0 15
45 - 49 0 0 0 0 0 0 2 2 6 3 0 13
50 - 54 0 0 0 0 0 0 0 2 3 2 1 8
55 - 59 0 0 0 0 0 0 0 0 0 1 0 1
60 - 64 0 0 0 0 0 0 0 0 0 0 0 0
65+0 0 0 0 0 0 0 0 0 0 0 0
Total 6 2 4 1 3 4 6 18 11 6 1 62
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 29 40
VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation 5/1/2021 57
b. Terminations
i. Vested (partial or full) with deferred benefits 0
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 (1)
f. Continuing participants 56
g. New entrants 6
h. Total active life participants in valuation 62
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 10 0 2 6 18
Retired 1 0 0 0 1
Vested Deferred 0 0 0 0 0
Death, With Survivor 0 0 0 0 0
Death, No Survivor 0 0 0 0 0
Disabled 0 0 0 0 0
Refund of Contributions 0 0 0 0 0
Rehires 0 0 0 0 0
Expired Annuities 0 0 0 0 0
Data Corrections 0 0 0 1 1
Hired/Termed in Same Year 0 0 0 1 1
b. Number current valuation 11 0 2 8 21
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 30 41
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 42
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 43
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 (4-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 44
GASB 67/68
SUMMARY
Valuation Date 5/1/2022 5/1/2021 Measurement Date 4/30/2022 4/30/2021
Plan Membership: Inactives Currently Receiving Benefits 13 12
Inactives Not Yet Receiving Benefits 8 6 Active Plan Members 62 57 Total 83 75 Covered Payroll $ 6,202,351 $ 6,021,819 Net Pension Liability
Total Pension Liability $ 57,518,915 $ 52,346,796 Plan Fiduciary Net Position 44,531,420 46,429,246 Net Pension Liability $ 12,987,495 $ 5,917,550
Plan Fiduciary Net Position As a Percentage of Total Pension Liability 77.42% 88.70%
Net Pension Liability As a Percentage of Covered Payroll 209.40% 98.27%
Total Pension Expense $ 1,526,061 $ 639,392
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 3.98% 1.83% Number of Years Future Benefit Payments Are Expected to be Paid 99 99
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 34 45
GASB 67/68
SCHEDULE OF CHANGES IN NET PENSION LIABILITY PLAN AND VILLAGE REPORTING
GASB 68 Reporting Period Ending 04/30/2022 04/30/2021
Measurement Date 04/30/2022 04/30/2021
Total Pension Liability
Service Cost 1,416,091 1,438,196
Interest 3,597,405 3,339,001
Changes of Benefit Terms - -
Differences Between Expected and Actual Experience (12,533) (52,953)
Changes of Assumptions 631,153 -
Contributions - Buy Back 476,003 -
Benefit Payments, Including Refunds of Employee Contributions (936,000) (811,860)
Net Change in Total Pension Liability 5,172,119 3,912,384
Total Pension Liability - Beginning 52,346,796 48,434,412
Total Pension Liability - Ending (a) 57,518,915$ 52,346,796$
Plan Fiduciary Net Position
Contributions - Employer 1,697,262 1,577,686
Contributions - Employee 614,653 655,092
Contributions - Buy Back 476,003 -
Net Investment Income (3,695,174) 8,660,971
Benefit Payments, Including Refunds of Employee Contributions (936,000) (811,860)
Administrative Expense (54,570) (43,819)
Net Change in Plan Fiduciary Net Position (1,897,826) 10,038,070
Plan Fiduciary Net Position - Beginning 46,429,245 36,391,176
Adjustment to beginning of year 1 -
Plan Fiduciary Net Position - Ending (b)44,531,420$ 46,429,246$
Net Pension Liability - Ending (a) - (b)12,987,495$ 5,917,550$
Plan Fiduciary Net Position as a Percentage of the Total Pension
Liability 77.42%88.70%
Covered Payroll 6,202,351$ 6,021,819$
Net Pension Liability as a Percentage of Covered Payroll 209.40% 98.27%
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 35 46
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, 2021 $ 52,346,796 $ 46,429,245 $ 5,917,551
Adjustment to beginning of year - 1 (1)
Changes for a Year:
Service Cost 1,416,091 - 1,416,091
Interest 3,597,405 - 3,597,405
Differences Between Expected and Actual Experience (12,533) - (12,533)
Changes of Assumptions 631,153 - 631,153
Changes of Benefit Terms - - -
Contributions - Employer - 1,697,262 (1,697,262)
Contributions - Employee - 614,653 (614,653)
Contributions - Buy Back 476,003 476,003 -
Net Investment Income - (3,695,174) 3,695,174
Benefit Payments, Including Refunds of Employee
Contributions (936,000) (936,000) -
Administrative Expense - (54,570) 54,570
Net Changes 5,172,119 (1,897,826) 7,069,945
Balances at April 30, 2022 $ 57,518,915 $ 44,531,420 $ 12,987,495
Increase (Decrease)
1% Decrease
Current Discount
Rate 1% Increase
5.75% 6.75% 7.75%
Sponsor's Net Pension Liability 23,586,388$ 12,987,495$ 4,553,820$
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 36 47
GASB 68
PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS
YEAR-END APRIL 30, 2022 For the year ended April 30, 2022, the Sponsor will recognize a pension expense of $1,526,061.
On April 30, 2022, 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 669,150 2,860,257
Changes of assumptions 1,437,341 0
Net difference between projected and actual earnings on
pension plan investments 2,654,215 0
Total $4,760,706 $2,860,257
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:
2023 $263,279
2024 $470,381
2025 ($137,443)
2026 $1,188,116
2027 ($189,846)
Thereafter $305,962
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 37 48
GASB 68
COMPONENTS OF PENSION EXPENSE
YEAR-END APRIL 30, 2022
Net Pension
Liability
Deferred
Inflows
Deferred
Outflows
Pension
Expense
Beginning Balance $ 5,917,551 $ 9,075,882 $ 3,735,185
Total Pension Liability Factors:
Service Cost 1,416,091 - - 1,416,091
Interest 3,597,405 - - 3,597,405
Changes in Benefit Terms - - - -
Contributions - Buy Back 476,003 476,003
Differences Between Expected and Actual
Experience With Regard to Economic or
Demographic Assumptions (12,533) 12,533 - -
Current Year Amortization - (685,870) (111,525) (574,345)
Changes in Assumptions About Future Economic or
Demographic Factors or Other Inputs 631,153 - 631,153 -
Current Year Amortization - - (215,379) 215,379
Benefit Payments, Including Refunds of Employee
Contributions (936,000) - - -
Net Change 5,172,119 (673,337) 304,249 5,130,533
Plan Fiduciary Net Position:
Contributions - Employer 1,697,262 - - -
Contributions - Employee 614,653 - - (614,653)
Contributions - Buy Back 476,003 (476,003)
Projected Net Investment Income 3,194,635 - - (3,194,635)
Difference Between Projected and Actual Earnings
on Pension Plan Investments (6,889,809) - 6,889,809 -
Current Year Amortization - (1,231,618) (1,857,867) 626,249
Benefit Payments, Including Refunds of Employee
Contributions (936,000) - - -
Administrative Expenses (54,570) - - 54,570
Net Change (1,897,826) (1,231,618) 5,031,942 (3,604,472)
Adjustment to beginning of year 1 - - -
Ending Balance $ 12,987,495 $ 7,170,927 $ 9,071,376 $ 1,526,061
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 38 49
GASB 68
AMORTIZATION SCHEDULE – EXPERIENCE
Year Base
Established
Differences
Between Expected
and Actual
Experience
Recognition
Period (Years)2022 2023 2024 2025 2026 Thereafter
2022 (12,533)$ 9 (1,389)$ (1,393)$ (1,393)$ (1,393)$ (1,393)$ (5,572)$
2021 (52,953)$ 9 (5,884)$ (5,884)$ (5,884)$ (5,884)$ (5,884)$ (17,652)$
2020 1,003,729$ 9 111,525$ 111,525$ 111,525$ 111,525$ 111,525$ 223,050$
2019 (4,863,845)$ 9 (540,427)$ (540,427)$ (540,427)$ (540,427)$ (540,427)$ (540,427)$
Prior Years (1,236,969)$ N/A (138,170)$ (105,790)$ -$ -$ -$ -$
Net Increase (Decrease) in Pension Expense (574,345) (541,969) (436,179) (436,179) (436,179) (340,601)
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 50
GASB 68
AMORTIZATION SCHEDULE – CHANGES OF ASSUMPTIONS
Year Base
Established
Effects of Changes
in Assumptions
Recognition
Period (Years)2022 2023 2024 2025 2026 Thereafter
2022 631,153$ 9 70,129$ 70,128$ 70,128$ 70,128$ 70,128$ 280,512$
2019 1,585,849$ 9 176,205$ 176,205$ 176,205$ 176,205$ 176,205$ 176,205$
Prior Years 1,884,653$ N/A (30,955)$ (55,019)$ 144,252$ (93,941)$ -$ -$
Net Increase (Decrease) in Pension Expense 215,379$ 191,314$ 390,585$ 152,392$ 246,333$ 456,717$
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 51
GASB 68
AMORTIZATION SCHEDULE – INVESTMENTS
Year Base
Established
Differences
Between Projected
and Actual Earnings
Recognition
Period (Years)2022 2023 2024 2025 2026 Thereafter
2022 6,889,809$ 5 1,377,961$ 1,377,962$ 1,377,962$ 1,377,962$ 1,377,962$ -$
2021 (6,158,089)$ 5 (1,231,618)$ (1,231,618)$ (1,231,618)$ (1,231,618)$ -$ -$
2020 1,848,153$ 5 369,631$ 369,631$ 369,631$ -$ -$ -$
2019 489,796$ 5 97,959$ 97,959$ -$ -$ -$ -$
2018 61,588$ 5 12,316$ -$ -$ -$ -$ -$
Net Increase (Decrease) in Pension Expense 626,249$ 613,934$ 515,975$ 146,344$ 1,377,962$ -$
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 52
GASB 67/68
SCHEDULE OF CONTRIBUTIONS
The following assumptions were used to determine the Actuarially Determined Contribution for the plan year ending April 30, 2022:
Calculation Timing The Actuarially Determined Contribution is calculated using a May 1, 2020 valuation date.
Interest Rate 6.75%
Mortality Rate Active Lives: PubS-2010 Employee mortality, projected 5 years past the valuation date with Scale MP-2019. 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-2019.
Beneficiaries: PubS-2010 Survivor mortality, projected 5 years past the valuation date with Scale MP-2019. Disabled Lives:
PubS-2010 Disabled mortality, projected 5 years past the valuation date with Scale MP-2019.
Assumptions All other assumptions and methods used for determining the Actuarially Determined Contribution can be found in the May 1, 2020 Actuarial Valuation Report for the Village of Plainfield Police Pension Fund
prepared by Foster & Foster Actuaries and Consultants.
Plan Year-End
Actuarially
Determined
Contribution
Contributions
in Relation to
the Actuarially
Determined
Contributions
Contribution
Deficiency
(Excess)
Covered
Payroll
Contributions
as a
Percentage of
Covered
Payroll
04/30/2022 1,690,118 1,697,262 (7,144) 6,202,351 27.36%
04/30/2021 1,580,337 1,577,686 2,651 6,021,819 26.20%
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 42 53
GASB 67
SCHEDULE OF INVESTMENT RETURNS
For the year ended April 30, 2022, the annual money-weighted return on Pension Plan investments, net of pension plan investment expense, was -7.70 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
04/30/2022 -7.70%
04/30/2021 23.12%
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 43 54
GASB 67/68
ASSUMPTIONS – GASB PENSION LIABILITY AND PENSION EXPENSE
The GASB 67/GASB 68 Pension Liability as of April 30, 2022 and GASB 68 Pension Expense were determined as follows:
Valuation Date May 1, 2022
Measurement Date April 30, 2022
GASB 68 Expense
Measurement Period May 1, 2021 - April 30, 2022
Reporting Period May 1, 2021 - April 30, 2022
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, 2022 for the Village of Plainfield Police Pension Fund prepared by Foster & Foster Actuaries and
Consultants.
The GASB 67/GASB 68 Total Pension Liability and GASB 68 Pension Expense reflect the following assumption
changes: • Updated mortality, retirement, disability, and termination rate tables. • Updated assumed salary increase rates.
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 44 55
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, 2022, 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 3.98 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% 5.90%
Small Cap Domestic Equity 11.70% 7.70%
International Equity 8.30% 6.80%
Fixed Income 45.00% 1.00%
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 56
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, 2022 for the Village of Plainfield Police Pension Fund prepared by Foster & Foster Actuaries and Consultants.
Village of Plainfield Police Pension Fund FOSTER & FOSTER | 46 57
Current levy
rate
5% rate
reduction
÷ 3 Estimated Taxable Value ÷ 3
-6,000 Homeowners Exemption -6,000
÷ 100 ÷ 100
× 0.4669 Village Property Tax Rate x 0.4436
$438.89 Village Portion of Property
Tax bill $416.98
Difference ($21.91)
Current levy
rate
5% rate
reduction
÷ 3 Estimated Taxable Value ÷ 3
-6,000 Homeowners Exemption -6,000
÷ 100 ÷ 100
× 0.4669 Village Property Tax Rate x 0.4436
$750.15 Village Portion of Property
Tax bill $712.72
Difference ($37.43)
$300,000 Home Value
$500,000 Home Value
11/22/2022
58