The chart below tracks the unfunded liabilities of DeKalb’s Illinois Municipal Retirement Fund (IMRF), police (PD), and fire (FD) pensions.unfunded-pension-liabilities-thru-2020
We expect total pension liabilities will go up with raises, cost of living adjustments, etc. However, the unfunded portions of the liabilities should not. Actuarially determined annual pension contributions are supposed to ensure they don’t rise. Yet you can see by the chart that unfunded liabilities for police and fire climbed steadily for a generation. We’ve now accumulated some $126 million in liability debt. One of the consequences is this year’s contribution total of $9.7 million, which will gobble more than a quarter of the city’s operating budget.
However, the chart also indicates that someone began applying the brakes in 2018. It’s important to explain this so we can support policies that continue the trend to reduce unfunded liabilities.Continue reading Snapshot of DeKalb’s pension trends through 2020