Actuary recommends $3.87 million in employer contributions for Belvidere police and fire pensions

Anthony Gavilis of Lauterbach & Amman presented the city’s actuarial valuation for the police and fire pension funds at the Sept. 22 Committee of the Whole meeting and recommended employer contributions of $1,655,053 for the fire fund and $2,219,261 for the police fund.

“On the fireside, 1 new hire, 1 retirement, 1 termination... and on the police, 3 newly hired members with 2 retirements, 6 terminations,” Gavilis said as he reviewed demographic changes that affected contribution calculations. He reported funded ratios of roughly 62% for the fire fund and about 64% for the police fund as of the April 30, 2025 fiscal year end and showed plan asset values of about $22.8 million (fire) and $32.7 million (police).

Gavilis explained the firm’s long‑term return assumption (6.75%) and said an alternative contribution method that follows Illinois statute would place the city on a 90% funding target by 2040; his recommended contribution targets full funding on a similar long‑term frame. When asked by Ald. Peterson whether the state requires 90%, Gavilis confirmed: “The current statutory requirement is to be at 90% funding by the year 2040.”

The presentation included reconciliation of last year’s contribution to this year’s figure, discussion of assumption changes from an experience study, and an 80‑year GASB solvency outlook showing benefit payments covered under the firm’s projection if the city continues recommended contributions. The committee did not take a levy or contribution vote at the meeting; the actuarial recommendations will inform the city’s budgeting and levy process in the coming weeks.