Darien Pumps More Money Into Cop Pensions

DARIEN, IL – Like many public bodies, Darien is seeing big increases in the amount of money it is contributing to its police pension system.

Next year, its actuary is recommending the city pay $2.5 million into the pension account. The year after that, it is advised to contribute $2.7 million.

In 2017, the city put $1.4 million into the pension system.

That number has generally increased over time for Darien. In 2002, Darien contributed $200,000 to police pensions, according to state Department of Insurance reports.

The increasing amounts are frustrating for Alderman Ted Schauer and others. At Monday's City Council meeting, he said he would fight "tooth and nail" for police in Darien, but noted the dramatic increase in city pension payments.

At the same time, pension reports show that the local system's financial status has declined slightly, he said. Now, the pension account is 58.9 percent funded, reflecting its future obligations. A year before, it was at 59.2 percent.

A few years ago, the number was above 60 percent.

"At what point do we figure out how we are going to make sure we get our pensions funded not only for the city of Darien, but for every city in the state of Illinois?" Schauer asked.

The city's actuary, Jason Franken of Foster & Foster, said the state has taken steps to bolster the future position of local pension systems.

For one, the state has consolidated hundreds of police pension funds, saving money for municipalities.

Also, in 2010, the state created the Tier 2 classification for pension members. Anyone hired after 2010 is set to get significantly lower benefits.

In the long run, Franken said, that will save on Darien's pension costs.

As of last year, Darien had 34 police officers contributing to the police pension fund, which had 30 beneficiaries, according to Franken's annual report.