Roselle board accepts actuarial valuations for police and firefighters; police contribution recommended to rise

The Village of Roselle on June 23 accepted actuarial valuation reports for both the police and firefighters pension funds, after Foster & Foster presented year‑end funding results that showed a decline in the police fund’s funded status and modest improvement in the fire fund.

The valuations, presented by actuary Heidi Andorfer of Foster & Foster, showed the police fund’s funded ratio at about 61.3% with an unfunded accrued liability of roughly $22.6 million and an increase in the village’s recommended contribution of about $267,000 year over year. Andorfer said smoothing of prior investment losses and a payroll‑growth assumption contributed to the increase. “We do smooth assets, gains, and losses over a 5‑year time frame,” Andorfer said, explaining why market and smoothed values differ.

Nut graf: The police and fire pension valuations determine Roselle’s recommended annual contributions and inform budget planning. The board’s acceptance of the reports means the actuarial figures will be used for 2026 budgeting and reflect both recent investment experience and demographic assumptions that could change with statewide analyses.

On the police side, Foster & Foster noted a 5.23% actual return on assets during the valuation period, short of the 7% assumption, and flagged possible statewide changes to Tier 2 benefits that could raise liabilities if adopted. The report identifies a total normal cost for the police active group near $770,000 and describes a planned rolling amortization of unfunded liabilities (moving from a fixed‑end date method to a 15‑year reamortization schedule).

The fire fund showed favorable experience: the funded ratio rose to about 73.1%, with an unfunded liability near $4.7 million and a smaller year‑over‑year contribution increase (about $19,600). Foster & Foster attributed the fire fund gains to higher inactive mortality experience, fewer retirements than expected and one disability case that produced a net gain.

Finance Director Tom Dahl noted the village consistently contributes at or above the recommended amounts, a practice the actuary and auditor said supports improving funded status. Trustee questions focused on whether the village is “doing alright” financially for pension obligations; Andorfer and staff responded that consistent funding and contributions at or above recommendations are the primary indicators of healthy management.

The board moved to accept the actuarial valuation reports as presented by Foster & Foster; the roll call recorded unanimous approval.