Romeoville police, fire pensions OK

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Updated: August 4, 2011 4:20PM

ROMEOVILLE — Trustees learned that police and fire pensions in the village are on firm footing and well on their way to state-mandated funding levels.

Finance Director Kirk Openchowski recently presented the 2010 Police and Fire pension compliance report to trustees.

The village’s police pension fund, which shrank 11 percent in 2009, rebounded in 2010, earning 18.3 percent for the fund, said Openchowski. For the year ending April 30, the fund had a total of just more than $20 million in assets, and was valued at just over $21 million in November.

“The fund regained everything it lost,” said Openchowski.

The pension fund for village fire personnel has total assets of just more than $3.4 million for the year ending on April 30 and with a current value of just more than $3.9 million as of November 2010.

The fire pension fund experienced a 13.5 percent return on investments in 2010 compared to returns of only 4.7 percent the previous year.

Under Illinois state law, all police and fire pensions will have to be 90 percent funded by the year 2040.

According to a state actuary, Romeoville’s police pension fund stands at 59.23 percent funding level, an increase of 6 percent over the prior year. Unfunded pension obligations for the police portion of the pension were just more than $14 million. The fire pension sits at 82.5 percent funding level with unfunded liabilities of $742,699.

Openchowski said that the village finance department calculates the annual levy each year to stay current with pension funding as well as setting its sights on meeting the funding at the mandated state level by the 2040 deadline.

Mayor John Noak noted that compared to other municipalities the village’s standing with its pension funding was on firm footing with a clear plan toward maintaining payment into the funds to be at the 90 percent funding level in 30 years.

He noted that Romeoville has done a better job of meeting its pension obligations than the state of Illinois while meeting state mandated funding levels for municipal pensions.

“I love how the state [of Illinois] actually makes us spend more money when they can’t pay their own pensions,” said Noak.

New health care option

In other business, trustees approved an agreement with Ameriflex, a company that will manage a flex spending account option for village employee health care. Under the new option, employees will be able to make pre-tax deductions from their paychecks for use on medical expenses, as well as child care expenses.

Village Administrator Steve Gulden said that employees would be eligible to spend up to $2,500 for deductibles and other recurring medical expenses as well as up to $5,000 for child care during each calendar year.

“It’s an excellent tax savings opportunity,” Noak said.

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