Bright Spot For Elmhurst: Fully Funded Pensions In Decade

ELMHURST, IL – Elmhurst has received some good financial news: There's light at the end of the pension tunnel.

For years, towns across the state have struggled with their police and fire pensions. Their pension funds have big gaps between current assets and the total value of promised payouts.

But Elmhurst is doing better than many others.

For instance, Hinsdale and La Grange's police and fire pensions are only about 50 percent or 60 percent funded long-term.

Elmhurst is above 70 percent for both.

On Monday, a City Council committee is reviewing an actuary's report for the local police and fire pension systems.

For both, the actuary projects them to be completely funded by 2036. That's as long as the city continues to make recommended contributions, as it has been doing.

According to the actuary's report, annual total contributions to the funds are expected to drop from $9 million now to $6 million in a decade.

The actuary recommends multimillion-dollar annual contributions even after the funds are fully funded.

"Such excess funding is intended to serve as a cushion against future adverse experience, investment volatility, assumption changes, or other unforeseen events that may negatively affect the Fund's financial position," the actuary's report said.

Nonetheless, the projected contributions would continue to drop to $4.6 million by 2041, half of what they are now.

The pension systems' status is in contrast to Elmhurst's overall budget situation. Last year, the council voted to increase taxes and cut spending.

More cuts will need to be made, officials warn. Left alone, they say, income will rise, but spending will go up even more.