City of Lake Forest City Council Workshop met June 19.
Here is the agenda provided by the Council:
Call to Order And Roll Call 4:00 pm
1. Pension Primer
Presented By: Elizabeth Holleb, Finance Director (847-810-3612)
Background/Discussion: As background for the discussion this evening, Finance Director Elizabeth Holleb will provide a pension primer. The attached presentation (page 3) is an updated version of a presentation given previously, but also provides additional data requested by the City Council Finance Committee in April.
Also attached on page 20, additional background information on the topic of pensions is an April 2017 publication entitled “Understanding Public Pensions – A Guide for Elected Officials” published jointly by the Center for State & Local Government Excellence and AARP.
Council Action: Informational Item
2. Summary of April 30, 2017 Police and Fire Preliminary Actuarial Results
Presented By: Elizabeth Holleb, Finance Director (847-810-3612)
Background/Discussion: Finance Director Elizabeth Holleb will provide the City Council with a summary of the preliminary actuarial results of the police and fire pension funds as of April 30, 2017. The preliminary data will be presented in conformity with the City’s existing Pension Funding Policy (page 36) and use all actuarial assumptions consistent with the April 30, 2016 valuations. This would be considered the baseline valuation from which the alternative scenarios can be presented and compared.
Council Action: Informational Item
3. Alternative Scenarios for April 30, 2017 Actuarial Valuations and Public Safety Pension Funding
Background/Discussion: Jason Franken of Foster & Foster, the City’s independent actuary, will present alternative scenarios for the City Council to consider for the April 30, 2017 actuarial valuations of the police and fire pension funds. As reported at the April 17, 2017 Finance Committee, Mr. Franken has recommended that the City consider the following changes:
1. Adjustment to mortality table
2. Adjustment to salary increase assumption
3. Adjustment to payroll growth assumption
4. Possible adjustment to amortization period (future change to open 15 years)
In addition, Mr. Franken will present the use of percentage of pay vs. level dollar amortization as a means of addressing the unfunded liability. A copy of the presentation can be found on page 39.
Council Action: The City Council is asked to consider whether any changes should be made for the April 30, 2017 actuarial valuations of the police and fire pension funds. Direction would be needed at this time so that the actuary can finalize the reports to meet audit deadlines. If the requested changes necessitate a change in the City’s Pension Funding Policy, the changes would be brought to the City Council for formal approval at its July 17 meeting.
4. Adjournment
http://www.cityoflakeforest.com/assets/1/27/WS_CC_2017_06_191.pdf
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