Article 3 Police Pension Funds
Article 4 Firefighters’ Pension Funds
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Presented by
Allison R. Barrett, Partner
Lauterbach & Amen, LLP
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Pension Benefits Administration
Calculation of Benefits (tab 1)
Service Purchases (tab 1)
IRS Reporting (tab 2)
Contributions (tab 3)
 QILDROs (tab 3)
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Pension Benefits Administration
 Calculation of Benefits - COMPONENTS
 Benefit is a percentage of salary

Retirement: percentage is determined by length of creditable service

Disability: percentage is fixed, regardless of length of service
 Salary = “Pensionable Salary” (see IDOI webpage)

Includes - base salary attached to rank, longevity

Excludes – clothing or car allowances, spikes

??? – Holiday pay, overtime
 Creditable Service

“Give to Get” theory

Excludes some unpaid leaves of absence

Felony conviction
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Pension Benefits Administration
Calculation of Benefits – CALCULATOR
 IDOI web page

Requires input of components

Exceptions

Dependent benefits for Fire (Duty or Occupational Disease
Disability)

Conversions
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Pension Benefits Administration
Calculation of Benefits – THINGS TO KNOW
 Tier 1 versus Tier 2

Member FIRST HIRED by a pension fund under this article
after 01/01/11 = Tier 2

Subsequent slides reference Tier 1
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Q: TRUE or FALSE?
You must be 50 years old and must have
completed 20 years of active service to be
eligible for a retirement pension
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Pension Benefits Administration
A: False
 Police
 8 – 19 years of service
 Age 60
Fire
 10-19 years of service
 Age 60
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Q: TRUE or FALSE?
A line of duty disability pension is
granted at 65% of pensionable salary
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Pension Benefits Administration
A: False
 GREATER OF
 65%, or
 The retirement amount the member is eligible for at time of
disability (max 75%)
 REMEMBER
 First 65% is tax-free; anything above 65% is taxable
 Fire: Additional benefit paid for dependent

Benefit paid directly to member but

Report on IDOI report under dependent
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Pension Benefits Administration
Calculation of Benefits – THINGS TO KNOW
 Nonduty Disability Pension

50% of pensionable salary

Taxable
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Pension Benefits Administration
Calculation of Benefits – THINGS TO KNOW
 Initial Increases


Retirement

Effective: Later of month after turn 55 or month after retired for one year

Amount: (1/12) of (3% of original benefit) times (# of full months
between retirement date and effective date of initial increase)
Disability

Effective: January 1st after reach age 60

Amount: (3% of original benefit) times (# of full years between disability
date and effective date of initial increase)
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Pension Benefits Administration
Calculation of Benefits – THINGS TO KNOW
 Subsequent Increases (COLAs)


Retirement

Effective: Every January 1st after the initial increase has been received

Amount: 3% compounded
Disability

Effective: Every January 1st after the initial increase has been received

Amount: 3% of original benefit
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Pension Benefits Administration
Calculation of Benefits – THINGS TO KNOW
 COLAs

Spousal – NONE!

Dependents for Fire

Duty or Occupational Disease Disability

3% compounded

Every January, regardless of age of pensioner
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Pension Benefits Administration
 Calculation of Benefits – THINGS TO KNOW
 Survivor benefits


Eligible Spouse

Police – married at time pension began

Fire – married at least one year prior to death
Dependent Child(ren)

Under age 18

Legally handicapped (mentally or physically) – for life

Dependent Parent(s)

Estate

if pension withdrawn is less than contributions made
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Pension Benefits Administration
Calculation of Benefits – THINGS TO KNOW
 Minimum Gross Benefit

Police - $1,000 (01/01/01)

Fire - $1,159.27 (07/01/08)
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Pension Benefits Administration
 Calculation of Benefits – CONVERSIONS
 “Disability Pension Option”

Requirements

Age 50

20 years of service (active or active+disability)

Initial benefit should be calculated using statute in effect at time of
disability

SALARY???? - if at least 20 years of active service, use salary at time
of conversion

Calculator not available - ask IDOI for assistance

Consider taxability (gross may be more but net may be less)
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Q: TRUE or FALSE?
Pension benefits should be paid monthly
at any time during the month
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Pension Benefits Administration
A: False
 Department of Insurance written opinion
 Fiduciary responsibility not to prepay benefits
 Should be paid on last business day of month for the
month (August benefits paid 08/31)
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Pension Benefits Administration
Service Purchase – Disability Buy Back
 Up to 3 years of disability time
 Must pay contributions that would have been withheld

Using salary at time of disability

Interest – 6% compounded from each missed pay date to
repayment date
 Must return to active service for a period of time equal to
the time being purchased
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Pension Benefits Administration
Service Purchase – Military Service (after hired)
 Can purchase up to 5 years (if hired before 07/01/73, no limit)
 Must pay full contributions due as if remained active
employee

Employer pays difference between full wages and military wages

Employer can withhold full contributions, partial contributions, or no
contributions
 NO INTEREST!
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Pension Benefits Administration
Service Purchase – Military Service (before hired)
 Can purchase up to 24 months
 Must pay full amount of new unfunded liability

Use salary at date of hire

Employee AND Employer contributions, using “Percent of Total Normal
Costs” from tax levy

Interest
 Reserve time?
 Document procedures in your Rules & Regs!!!
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Pension Benefits Administration
Service Purchase – PORTABILITY (police only)
 Article 3 to Article 3
 “Moves” service time
 Must have at least 2 years of service with Prior Fund

Unless left due to lay-off

Unless left prior to 08/17/97
 Must transfer 100% of service time
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Pension Benefits Administration
Service Purchase – PORTABILITY (continued)
 3 calculations
1.
Repay contribution refund, plus 6% interest (Prior Fund does)
2.
Prior Fund sends to Current Fund (Prior Fund does)
3.

A. Employee contributions

B. Interest calculation – 6% from date of each payroll deduction to date of
transfer (THIS IS NOT THE SAME INTEREST CALC AS #1 ABOVE!)

C. Match of A and B
True Cost calculation (by certified actuary) (Current Fund does)
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Pension Benefits Administration
 Service Purchase – PORTABILITY (continued)
 If True Cost is greater than amount from Prior Fund


Option #1

Officer pays difference to Current Fund (within 5 years)

Receives credit for 100% of Prior Fund service
Option #2

Officer pays nothing to Current Fund

Receives partial credit (amount from Prior Fund divided by Total True Cost)
 If True Cost is less than amount from Prior Fund, Current Fund keeps
difference
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Pension Benefits Administration
 Service Purchase – PORTABILITY (example)
 Option #1 – example

Prior Fund service time 4 years, 2 months, 18 days

Prior Fund sends $63,800

True Cost is $145,000

Balance due to Current Fund from officer

$145,000 – $63,800 = $81,200

Lump sum or installments (within 5 years)
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Pension Benefits Administration
 Service Purchase – PORTABILITY (example)
 Option #2 – example

Prior Fund service time 4 years, 2 months, 18 days (= 50.6 months)

Prior Fund sends $63,800

True Cost is $145,000

63,800 / 145,000 = .44

.44 x 50.6 months = 22.27 months

Additional service granted of 1 year, 10 months, 8 days

No additional cost to officer
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Pension Benefits Administration
 Service Purchase – RECIPROCITY (fire only)
 Article 4
 “Combines” service time – does not “move”
 Must have at least 1 year of service with Prior Fund(s)
 Must have at least 3 years of service with Final Fund
 Must be 50 years old and have at least 20 years of service between
funds
 If hired after 07/01/04, must notify funds of intent within 21 months
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Pension Benefits Administration
 Service Purchase – RECIPROCITY – cost to member
 3 calculations
1.
2.
3.
Repay contribution refund (to all Prior Funds)

Plus 6% interest

10 years to repay
Additional 1% contribution (to all Prior Funds)

6% interest

Lump sum / installments
Additional 1% contribution (to Current Funds)

6% interest prior to “Declaration Date”

Employer withholds additional 1% from paycheck as of “Declaration Date”
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Pension Benefits Administration
 Service Purchase – Reciprocity – PENSION BENEFIT
 Retirement

Prior Fund(s)


1/12 of 2.5% of final monthly salary for each month of service in that fund(s)
Final Fund

Calculate benefit as if ALL service was with this fund, using salary of this fund

Subtract amount(s) paid by prior fund(s)
 Mutliple 1099R forms
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Pension Benefits Administration
 Service Purchase – Reciprocity – PENSION BENEFIT
 Nonduty Disability, Duty Disability

Full benefit paid by Current Fund
 Occupational Disease Disability

Benefit paid by all funds to whom payment has been completed

Each fund pays a prorated share based upon length of service
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Pension Benefits Administration
 Service Purchases – Final Thoughts
 Credit received once all payments made by all parties
 Good record keeping is a must!
 Deductions made from payroll for purchase of service must be AFTER-
TAX (even if regular contributions are pre-tax)
 Update Department of Insurance Report

Status

Hire Date

Length of Service
 COST PROHIBITIVE!!
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Pension Benefits Administration
 HELPS
(“Healthcare Enhancement for Local Public Safety)
 Effective January 2007
 Reduce taxable earnings by $3,000/year
 Insurance premiums

Deducted from pension check

Paid directly to provider
 Do not withhold pre-tax (limits pensioner’s filing options on
their 1040 form)
 DO NOT REFLECT ON 1099R FORM!!!!
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Pension Benefits Administration
Social Security
 Windfall Elimination Provision
 Spousal / widow benefits
 Contact local SSA office
 www.ssa.gov (calculator)
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Pension Benefits Administration
Taxability of Pension Benefits - REPORTING
 New pensions first paid after 12/31/97
 Replaces Safe Harbor Method with “Simplified Method”

Divide total after-tax contributions by the number of months of life expectancy

Number of months provided by one of two IRS tables (marital status)
 Pension Fund responsible for reporting taxability on 1099R form
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Pension Benefits Administration
Taxability of Pension Benefits - REPORTING
 Taxability of pension transfers to spousal pension
 Tax-free pensions should not be reported to the IRS

Killed in the line of duty

65% duty/occupational disease disability

If awarded for cancer (4-110.1) – IS taxable
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Pension Benefits Administration
Taxability of Pension Benefits – TAX FORM #1
 SS-4 – Application for Employer Identification Number


IRS needs to know pension fund is a separate entity from
municipality/district
www.ssa.gov
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Pension Benefits Administration
Taxability of Pension Benefits – TAX FORM #2
 W-4P – Withholding Certificate for Pension or Annuity Payments

Determines the amount of federal tax to withhold from pension check

Marital status / number of exemptions

Cannot request a flat dollar amount!
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Pension Benefits Administration
Taxability of Pension Benefits – TAX FORM #3
 945 – Annual Return of Withheld Federal Income Tax

Pension Fund lists tax liability dates and amounts due

IRS uses to reconcile against tax deposits to determine if paid timely

Due February

945-A may be required
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Pension Benefits Administration
Taxability of Pension Benefits – TAX FORM #4
 1099R

In lieu of W-2

Taxable pension payments

Contribution refunds

Due January 31st to payee; due February 28th to IRS
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Pension Benefits Administration
Taxability of Pension Benefits – TAX FORM #5
 1099MISC

Vendor payments

All legal services

All medical services


All non-incorporated vendors to whom paid at least $600 during the
calendar year
Due January 31st to payee; due February 28th to IRS
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Pension Benefits Administration
Taxability of Pension Benefits – TAX FORM #6
 1096 – Annual Summary and Transmittal of U.S. Information
Returns

“Cover page”

Use with 1099R and 1099MISC forms

Due February 28th to IRS
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Pension Benefits Administration
 Taxability of Pension Benefits – TAX NOTES
 Circular E (Publication 15)

Federal tax withholding tables

Deposit schedule (safest  pay taxes on pay day!)
 EFTPS (www.eftps.gov)
 Tax liabilities

Federal withholding tax – yes

IL withholding tax – no

Other state withholding tax – maybe

Social Security / Medicare – no
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Pension Benefits Administration
 Coalition for Qualified Plan Status
 AFFI / IGFOA / ILFOP / IMTA / IPFA / IPPFA / MAP (IDOI, Lauterbach & Amen)
 To maintain “Qualified Plan” status with IRS

Tax-free pension benefits

Pre-tax contribution deductions / roll-overs

No tax due on interest from investments
 IRS grants “Determination Letter”

5-year cycle

IDOI webpage
 Cost savings

As individual pension fund = $40,000+

As part of Article 3 or Article 4 = $400 (did you contribute?)
 Annual review of IL statutes to ensure compliance with IRS code
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Pension Benefits Administration
Contributions – EMPLOYER PICK-UP PLAN
 Option presented by IRS in mid-1980’s
 Pre-tax contribution deductions (increases net pay)
 Employer Resolution

Determination Letter covers Fund
 Irrevocable
 Not required for employer, but if implemented, mandatory
participation by employees
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Pension Benefits Administration
Contributions – Rates
 Police

9.91%

Effective 01/01/01
 Fire

9.455%

Effective 07/01/04

Additional 1% for reciprocity
 Pensionable earnings ONLY
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Pension Benefits Administration
 Contributions – Refunds
 After-tax contributions

Paid directly to member

No taxes withheld
 Pre-tax contributions


Paid directly to member

Must withhold 20% in federal tax

IRS notification of potential penalties / taxes when file 1040
Roll-over to another Qualified Plan

No tax withheld

Payable and sent to Qualified Plan (not member)
 Reflect refund on 1099R
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Pension Benefits Administration
QILDRO
 Qualified Illinois Domestic Relations Order
 Effective 07/01/06
 Only applicable against contribution refund or retirement pension
 3 pieces

All must be filed in court

Have Board Attorney review before implementing

Available on DOI webpage (with reference manual)
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Pension Benefits Administration
QILDRO – Components
 QILDRO Order

Names parties

Allocates benefit as a percentage of the “marital portion” of the pension
 Consent To Issuance form

Required if hired prior to 07/01/99
 Calculation Form

Completed by member, ex-spouse, their attorneys

Can’t be completed until creditable service is done
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Pension Benefits Administration
QILDRO – Taxability
 1099R Reporting

Alternate Payee


List benefit as fully taxable
Member

Gross benefit (Box 1) - no effect

Taxable benefit (Box 2a) – reflect QILDRO paid in this box

Gross less QILDRO (less recovered after-tax contributions)
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Pension Benefits Administration
QILDRO – Cessation
 If Alternate Payee dies
 If Member dies

Not applicable to survivor pension
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Allison R. Barrett
Lauterbach & Amen, LLP
27W457 Warrenville Rd
Warrenville, IL 60555
630.393.1483 / 866.952.6329
abarrett@lauterbachamen.com
www.lauterbachamen.com
Presented by
Nathan J. Gaskill, Partner
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Reporting and Recordkeeping
Financial Reporting (tab 4)
Annual Financial Report/Financial Audit (tab 5)
IDOI Annual Compliance Report (tab 6)
Interim Financial Reporting (tab 7)
 Recordkeeping (tab 9)
 Forms (tab 10)
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Financial Reporting
Elements of Financial Accounting
Investment Terminology
Annual Financial Report/Financial Audit
Annual IDOI Compliance Report/Compliance
Audit
Interim Accounting and Financial Statements
Internal Controls
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Elements of Financial Accounting
 Assets = What is Owned
 Liabilities = What is Owed to Others
 Equity = What is Owed to the Owners
 Pension Equity = Plan Net Assets Held in Trust for Pension
Benefits
 Accounting Equation: Assets – Liabilities = Equity
 Income
 Expense
 Balance Sheet = Statement of Plan Net Assets
 Income Statement = Statement of Changes in Plan Net Assets
 Generally Accepted Accounting Principles (GAAP)
 Governmental Accounting Standards Board (GASB)
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Investment Terminology
 Cost/Cost Basis
 Par Value
 Premium/Discount
 Interest Rate
 Amortization
 Purchase Date/Maturity Date/Call Date
 Book Value
 Market Value
 CUSIP #’s

US Treasury Notes (USTN)
#91282XXXX

US Treasury Bonds (USTB)
#91281XXXX

US Treasury Strips (USTS)
#91283XXXX

Government National Mortgage Association (GNMA)
#362XXXXXX

Federal Home Loan Bank (FHLB)
#3133XXXXX

Federal Home Loan Mortgage Corporation (FHLMC)
#31XXXXXXX

Federal National Mortgage Association (FNMA)
#31XXXXXXX
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Annual Financial Report/Financial Audit
 Audits are conducted by an Independent CPA
 To Render an Opinion on Compliance with Generally Accepted Accounting Principles
 Includes a Review of Internal Controls
 Includes a Review of Employer Contributions (Property Taxes)
 Brings Together Actuarial Information and Financial Reporting
 Employer Contributions Required and Made – Six Year Trend Table (RSI)
 Funded Stats – Six Year Trend Table (RSI)
 Includes Confirmation with Banks/Brokers of all Cash and Investment Balances
 Issuance of a Management Letter to the Pension Board Including:

Recommendation for Improvements in Internal Controls

Information Regarding Recent Changes onPension Issues
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Sample Annual Financial Report (AFR)
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Sample Annual Financial Report (AFR)
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Sample Annual Financial Report (AFR)
Lauterbach & Amen, LLP
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Sample Annual Financial Report (AFR)
Lauterbach & Amen, LLP
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Sample Annual Financial Report (AFR)
Lauterbach & Amen, LLP
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Sample Annual Financial Report (AFR)
Lauterbach & Amen, LLP
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Sample Annual Financial Report (AFR)
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Illinois Department of Insurance (IDOI)
 Annual Compliance Report
 Detailed Report Filed with IDOI Summarizing Transactions
 Detailed Participant and Beneficiary Information
 Is Required to Agree with the Financial Audit
 Is the Basis on Which the Actuarial Report and Funding are Determined
 Compliance Audit
 Conducted by the Department of Insurance
 Determine Compliance with State Statutes
 Review of Benefit Calculations
 Review of Employer Contributions (Property Taxes)
 Review of Employee Contributions
 Review of Salary Structure (Pensionable/Non-Pensionable)
 Review of Minutes
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Annual IDOI Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Interim/Monthly Financial Reporting

Strongest Feature of Internal Control

Detects Errors and Irregularities in a Timely Fashion

Knowledgeable Individual to Review Transactions on a Monthly Basis

Interim/Monthly Financial Services Includes:



Reconciliation of all Bank/Broker Accounts for all Investment Transactions

Posting of all Cash Receipt and Cash Disbursement Transactions

Posting and Maintenance of General Ledger

Issuance of Vendor Checks (upon request)

Posting of Benefit Transactions
Interim/Monthly Financial Statements Includes:

Accountant’s Compilation Report

Statement of Plan Net Assets and Statement of Changes in Plan Net Assets

Schedule of Cash and Investments

Balance Sheet Report

Revenue Report

Expense Report

Schedule of Member Contributions

Schedule of Monthly Benefits

Vendor Check Report
Interim/Monthly Financial Statements are Designed to Assist in the Preparation of the IDOI Annual Compliance Report
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Sample Interim Financial Statements
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Recordkeeping
Reimbursements to Board Members
Minutes
Participant Files
Rules and Regulations
Investment Policy
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Recordkeeping - Reimbursements
Allowable Reimbursements:
 Training, Meals, Mileage
Not-Allowable Reimbursements:
 Services as a Trustee
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Recordkeeping - Minutes
 Attendance and Roll Call
 Public Comment (Required to be Included on Agenda)
 The Employment Date of New Members Accepted into the Fund
 The Termination Date of and Participant, Including Status of Contributions (i.e.
Refund)
 Approval of New Beneficiary Including Date of Retirement, Salary, Benefit Amount
 Annual Board Approval of Benefit Payments and any Pension Increases
 The Annual Actuarial Required Contribution Recommended to the Municipality
 Board Approval of Investment Transactions
 Board Approval of Investment Policy and/or any Changes
 Board Approval of Service or Vendor Contracts
 Attorney, Money Manager, Investment Advisor, Actuary, Accountant, Auditor,
Secretary
 Board Approval of Rules and Regulations and/or any Changes
 Election Results of Trustees and their respective terms
 Appointment/reappointment of “civilian” trustees and their respective terms
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Recordkeeping – Participant Files
 See Example in Program Binder
 Application for Membership
 Birth Certificate
 Marriage License (Dissolution of Marriage, QILDRO)
 Spousal and Dependent(s) Birth Certificate(s)
 Member Contribution Summary
 Application for Retirement Benefits
 Death Certificate
 Other:

DD-214 for Military Service Purchase

Portability / Reciprocity Documentation
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Recordkeeping – Rules and Regulations
 See Example in Program Binder
Lauterbach & Amen, LLP
630.393.1483 * www.lauterbachamen.com
Nathan J. Gaskill, CPA
Lauterbach & Amen, LLP
27W457 Warrenville Rd
Warrenville, IL 60555
630.393.1483 / 866.952.6329
ngaskill@lauterbachamen.com
www.lauterbachamen.com