Antioch finance director proposes 15‑year layered plan to tackle $23M police pension shortfall

Finance director Michael Peterson presented a proposed police pension funding policy intended to address an unfunded liability he reported as $23,000,100 as of May 1, 2025.

Peterson described the proposal as a 15‑year layered funding schedule with a 100% amortization target for each new layer. He said the structure would replace the typical 30‑year refinancing approach that sometimes results in municipalities repeatedly extending obligations. "The purpose of the proposed police pension funding policy is to address the unfunded liability by adopting a 15 year layered funding with 100% amortization target," Peterson said.

He explained the approach creates a moving set of 15‑year amortization layers that are recalculated annually based on actuarial gains or losses. Peterson said the policy would take effect as of 05/01/2025 and that staff plan to return with updated budget impact figures and projections at the March board meeting. He also noted the village had budgeted an extra $100,000 in the 2025 tax levy to address immediate needs.

Trustees asked for clarification about the budget impact and the interplay with a possible sales‑tax change that could generate additional revenue; Peterson said the precise annual dollar impact is unknown because assumptions (investment returns, disability rates, mortality and pay changes) drive actuarial results and the layered approach spreads adjustments over 15 years rather than resetting to a new 30‑year schedule.

No final adoption vote was recorded in the discussion segment; staff advised the board they would return with updated actuarial numbers for final action.