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Actuary recommends $1.57 million contribution to Warrenville police pension to reach 100% funding by 2040
Summary
An actuary told the Warrenville City Council that a $1,565,945 contribution is the firm's recommended annual payment to bring the police pension to 100% funded status by 2040; the plan was about 74% funded as of 04/30/2025, with roughly $31.9 million in assets.
Anthony Gudvilis, an actuary with Lauterbach and Amen, presented the police pension funding and actuarial reports to the City of Warrenville on Dec. 1, saying, “We have the recommended contribution for the year at $1,565,945.” He said that recommendation is designed to bring the fund to 100% funding by 2040.
Gudvilis told the council the pension plan’s funded ratio was about 74% as of the April 30, 2025 fiscal-year end and that plan assets were approximately $31,900,000. He described changes made after the firm’s recent experience study — including modest increases to the inflation and pay-increase assumptions — and detailed how those assumption changes and demographic shifts contributed to the higher recommended contribution.
Council members pressed for clarification about differences between the firm’s recommendation and the state’s alternative funding path. Gudvilis said the firm’s recommendation aims for 100% funding by 2040 while the state’s guidance would move a plan to about 90% by the same year. He noted a small difference in the expected return assumption (the firm uses 6.75%; the state uses 6.8%) and explained that several demographic and economic assumption changes contributed to the reconciliation between last year’s contribution and this year’s figure.
On investment performance, Gudvilis said the plan returned about 9.45% in the year under review. He explained the city uses an actuarial value of assets that smooths gains and losses over five years to reduce contribution volatility: “It actually smooths the investment gains and losses over a 5 year period,” he said.
Aldermen and staff asked for further detail on the makeup of inactive members (not broken out on the presentation), retirement-eligible officers (four noted of 31 active officers), and the projection of short-term benefit payments. Gudvilis said the full actuarial report contains a more detailed breakdown and offered to follow up with staff for any items not shown in the slide deck.
The presentation concluded with staff and the firm agreeing to provide additional detail on member types and the longer actuarial schedules in the full report. The council did not take formal action on the recommendation at the meeting; the presentation was accepted and opened to questions.
