Daily Herald Article on Police Pension Funds Doesn’t Tell the Full Story
On Wednesday, February 7, the Daily Herald published a story regarding shortfalls to the Police Pension funds based on 2016 data collected.
In an effort to tell a story, the Herald did not provide readers with important factual data. First and foremost, not every municipality follows the same fiscal year. Elk Grove Village’s fiscal year runs from May 1 to April 30 – meaning that the data they used in the article touting 2016 returns did not capture the investment growth from May 1 to December 31. By contrast, communities that were touted such as Naperville, Rosemont, Elgin, Hoffman Estates, and Hanover Park all have fiscal years that end December 31.
If the Daily Herald had compared the Elk Grove Police Pension fund on a calendar year basis (January 1 through December 31), the Police Pension Fund would have been comparable among the top earners with a rate of return at 7.5% in 2016 and 13.5% in 2017.
For the past ten years, the Police Pension Fund’s average rate of return has been 7.4%.
Another important fact missing is that the State of Illinois allows the public safety pension funds to make their own independent decisions separately from the Village. Due to legislation passed by the Illinois Legislature after 9/11, the State provides that the majority of members on pension fund boards are selected at the discretion of the Police or Fire membership, and not by the Village.
Any further questions, please contact the Mayor’s Office at 847-357-4030.
- Mayor Craig B. Johnson