Burr Ridge Pensions Go In Costlier Direction

BURR RIDGE, IL — Burr Ridge may be doing a lot better than many Illinois towns with its police pension finances. But the trends are heading in a more expensive direction for the village, with taxpayers chipping in hundreds of thousands more each year.

The Burr Ridge taxpayers' contributions to the police pension account have more than doubled in eight years, rising by $2 million, to $3.4 million, according to state Department of Insurance records.

The pension fund's average annual benefit rose to $70,932 in 2019, up from $55,945 eight years before, the state records show. That's an increase of 27 percent. Under state law, all public pension systems must grant 3 percent compounded raises every year for recipients. If the average Burr Ridge police pension had risen with rate of inflation, it would be $62,136 today, or an 11 percent increase.

The state's figures show fewer people are paying into the police pension fund and more people are receiving benefits. In 2019, the police department had 47 officers contributing to the pension fund, down from 52 eight years earlier. At the same time, the number of pension recipients rose to 60 in 2019, up from 52 eight years earlier. As of 2019, the village had 13 more pension recipients than active officers.

This week, the Village Board approved Mayor Gary Grasso's proposal to create an ad hoc committee to deal with police pensions.

According to village documents, the fund is relatively stable and the village always sets aside sufficient money for its pension obligations. But its pension costs are expected to increase, crowding out spending for village services.

Trustee Al Paveza told his colleagues that he had reservations about paying beyond what the state recommends each year.

"As long as we're paying what the state requires us to pay, I have mixed emotions about paying more when money is tight and so many other villages are buried underwater and haven't been making their payments," Paveza said.

The mayor replied that he respected Paveza's opinion, but said "information is power."

"We have always been responsible and paid what the actuaries at the state level have told us to pay," Grasso said. "We know we have been falling behind like many other villages have through no fault of our own."

Grasso said it was important for the village to explore its alternatives and then let the board decide what to do.