VILLAGE OF BENSENVILLE, ILLINOIS Notes to the Financial Statements December 31, 2012
NOTE 4 – OTHER INFORMATION – Continued EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued Annual Pension Cost and Net Pension Obligation – Continued The Village’s actuarial assumptions and related information for each plan is as follows: IMRF
Police Pension
11.62% 4.50%
31.19% 9.91%
Actuarial Valuation Date
12/31/2012
12/31/2011
Actuarial Cost Method
Entry Age Normal
Entry Age Normal
Amortization Method
Level % of Projected Payroll Open Basis
Level % of Projected Payroll Closed Basis
30 Years
29 Years
5-Year Smoothed Market
Market
7.50% Compounded Annually
7.50% Compounded Annually
.4 to 10.0%
5.50%
Inflation Rate Included
4.00%
3.00%
Cost-of-Living Adjustments
3.00%
3.00%
Contribution Rates Employer Employee
Remaining Amortization Period Asset Valuation Method
Actuarial Assumptions Investment Rate of Return
Projected Salary Increases
60