* The Illinois Municipal League continues its push for public safety pension fund consolidation…
Illinois has more than 650 separate downstate municipal public safety pension funds. According to the IML, the math adds up to more than 10 million residents paying the bill for 40,000 pension participants. […]
“We are trying to resolve the issue of poor returns, not-great management, and create a system that can sustain these funds.” [said Brad Cole, IML executive director.]
There are 1,298 municipalities in Illinois, Cole said. Those with populations of 5,000 and larger are required to have pension funds if they have police and fire departments. […]
Unfunded pension liabilities are an ongoing concern for many cities, including Moline. Cole said Moline’s fire pension fund is only 33% funded, and the police pension fund is 44% funded.
* Coincidentally, the Illinois Auditor General just released its audit of the Department of Insurance. Part of the probe looked at whether Insurance is complying with a state law to examine each of those same public safety pension funds every three years. The Auditor General went back to 2004, meaning that in the audit period, Insurance should have examined each of those funds four different times.
Here’s what the Auditor General Found…
* 2 public safety pension funds were examined three times in 14 years (one examination missed)
* 230 funds were examined two times (two missed)
* 383 funds were examined once (three missed)
* 1 fund was never examined (four missed)
* 36 funds were currently under examination (17 missed one to two examinations, 18 missed two, 1 missed three)
In response, the Department of Insurance said it was seeking legislation to shift to an audit of the funds every five years, instead of three.