Pension Information
Posted: Tue Sep 21, 2021 8:51 amFrom: Tom Beyna <tbeyna@chipabf.org>
Sent: Monday, September 20, 2021 6:17 PM
To: johnnywo1@aol.com <johnnywo1@aol.com>
Subject: Facts Matter
John,
Please share this information. There is a lot of misleading and inaccurate information being spread among the members.
I understand members are concerned with the sustainability of the Fund, but it is important to understand the factual reasons that got us into this position.
The PABF funded ratio was 70% in 2000. As a result of decades of statutory underfunding, contractual salary increases, and politically driven pension enhancements passed in Springfield, the funding ratio declined to 22% in 2019. (See chart)
Chart, bar chart Description automatically generated ( unable to show on this site)
The PABF annual pension payments have increased 200% over the past 2 decades resulting in an additional $600 million per year in benefit payments. Since 2003, the required City contributions per state statue were $3.9 billion less than the actuarial required contributions. For many years, there was simply more money going out than coming in.
Current trustees are dealing with an underfunding problem that was created many years ago. In fighting this problem, we are holding the City accountable to make their statutorily required payments. In recent years, the Fund intercepted state grant money to collect unpaid contributions and defeated the City in a significant court case to keep them from withholding future contributions.
The current statute requires the City to continue making increased payments bringing PABF’s funded ratio up to 90% by the end of the year 2055. Only now is the funding ratio beginning to slowly improve.
It does not take a forensic audit to know that decades of inadequate contributions from the City is the reason our Fund, along with the other City pension Funds, are severely underfunded. This problem was addressed years ago and a Commission to Strengthen Chicago Pension Funds was formed in 2008 and its findings released in 2010. (See report attached)
The petition to conduct a forensic audit that was presented to the Board is poorly written and contains several false allegations, therefore it cannot be supported. (See attachment for detailed response)
The Board would act if a legitimate reason was raised to conduct a forensic audit. The attorney representing the group even recognized that there was “insufficient specific legal support” and that their reason to conduct a forensic audit is generically because “you as the intended beneficiaries are nervous about getting your benefits”.
The Fund received an extensive FOIA request for investment related materials. The allegation that trustees are withholding documents is false.
Illinois Freedom of Information Act (FOIA) requests are processed by the Fund’s FOIA Officer and attorney.
The Fund is committed and adheres to the transparency laws specifically written and all requests for information are supplied in compliance with FOIA, 5 ILCS 140, et. seq.
Under FOIA, 5 ILCS 140/7(1)(g), exemptions exist to redact financial information that is proprietary. These exemptions exist to protect against competitive harm.
The Fund may be subject to liability if certain information is released without the investment firms consent.
Members should know that there are 4 police trustees on the board that are dependent on receiving a pension in retirement. The police trustees have been working and paying into the pension fund for 20 or 30 plus years, we know the hard work and sacrifices officers make to earn these benefits.
Trustee Mike Lappe was shot in the neck during a domestic incident and suffered catastrophic injuries. He amazingly rehabilitated himself and returned to work. Mike was the real police for 38 years before he was forced to retire at 63 years of age. Mike has experience as a pension trustee representing the active officers for 5 years and the annuitants for 3 years. Mike was successful in recovering over $700,000 from the City through a City ordinance requiring the sales of seized property to be paid to our Fund. Mike’s dedication as a police officer and pension trustee is unmatched.
Lt Mike Stiscak (also President of the Lieutenants Association) and Sgt John Lally were elected to the Board as trustees in September of 2020. As new trustees coming in they were able to take a fresh look at the policies and procedures of the Fund. Lt Stiscak is detailed to the Fund and involved in the daily operations.
The police trustees are dedicated to protecting and improving the health of our Fund, and we would undoubtedly expose and confront any illegal, improper or harmful acts to our Fund.
There are some very serious and outrageous allegations being made without any supporting evidence. It is disgusting to see people financially profit by spreading misleading and false information to the members.
Police officers should know better than to believe any headline or comment you read, please get the facts and to come to a logical conclusion.
Thank you,
Tom
Thomas Beyna
Chicago Police Officer | Board President | Chair Investment Committee
Policemen’s Annuity & Benefit Fund of Chicago
221 N LaSalle | Suite 1626 | Chicago, IL 60601
Office: 312-676-0401
Email: tbeyna@chipabf.org
Notice of Confidentiality
This transmission contains information that may be confidential and that may also be privileged. Unless you are the intended recipient of the message (or authorized to receive it for the intended recipient), you may not copy, forward, or otherwise use it, or disclose its contents to anyone else. If you have received this transmission in error, please notify us immediately and delete it from your system.
Sent: Monday, September 20, 2021 6:17 PM
To: johnnywo1@aol.com <johnnywo1@aol.com>
Subject: Facts Matter
John,
Please share this information. There is a lot of misleading and inaccurate information being spread among the members.
I understand members are concerned with the sustainability of the Fund, but it is important to understand the factual reasons that got us into this position.
The PABF funded ratio was 70% in 2000. As a result of decades of statutory underfunding, contractual salary increases, and politically driven pension enhancements passed in Springfield, the funding ratio declined to 22% in 2019. (See chart)
Chart, bar chart Description automatically generated ( unable to show on this site)
The PABF annual pension payments have increased 200% over the past 2 decades resulting in an additional $600 million per year in benefit payments. Since 2003, the required City contributions per state statue were $3.9 billion less than the actuarial required contributions. For many years, there was simply more money going out than coming in.
Current trustees are dealing with an underfunding problem that was created many years ago. In fighting this problem, we are holding the City accountable to make their statutorily required payments. In recent years, the Fund intercepted state grant money to collect unpaid contributions and defeated the City in a significant court case to keep them from withholding future contributions.
The current statute requires the City to continue making increased payments bringing PABF’s funded ratio up to 90% by the end of the year 2055. Only now is the funding ratio beginning to slowly improve.
It does not take a forensic audit to know that decades of inadequate contributions from the City is the reason our Fund, along with the other City pension Funds, are severely underfunded. This problem was addressed years ago and a Commission to Strengthen Chicago Pension Funds was formed in 2008 and its findings released in 2010. (See report attached)
The petition to conduct a forensic audit that was presented to the Board is poorly written and contains several false allegations, therefore it cannot be supported. (See attachment for detailed response)
The Board would act if a legitimate reason was raised to conduct a forensic audit. The attorney representing the group even recognized that there was “insufficient specific legal support” and that their reason to conduct a forensic audit is generically because “you as the intended beneficiaries are nervous about getting your benefits”.
The Fund received an extensive FOIA request for investment related materials. The allegation that trustees are withholding documents is false.
Illinois Freedom of Information Act (FOIA) requests are processed by the Fund’s FOIA Officer and attorney.
The Fund is committed and adheres to the transparency laws specifically written and all requests for information are supplied in compliance with FOIA, 5 ILCS 140, et. seq.
Under FOIA, 5 ILCS 140/7(1)(g), exemptions exist to redact financial information that is proprietary. These exemptions exist to protect against competitive harm.
The Fund may be subject to liability if certain information is released without the investment firms consent.
Members should know that there are 4 police trustees on the board that are dependent on receiving a pension in retirement. The police trustees have been working and paying into the pension fund for 20 or 30 plus years, we know the hard work and sacrifices officers make to earn these benefits.
Trustee Mike Lappe was shot in the neck during a domestic incident and suffered catastrophic injuries. He amazingly rehabilitated himself and returned to work. Mike was the real police for 38 years before he was forced to retire at 63 years of age. Mike has experience as a pension trustee representing the active officers for 5 years and the annuitants for 3 years. Mike was successful in recovering over $700,000 from the City through a City ordinance requiring the sales of seized property to be paid to our Fund. Mike’s dedication as a police officer and pension trustee is unmatched.
Lt Mike Stiscak (also President of the Lieutenants Association) and Sgt John Lally were elected to the Board as trustees in September of 2020. As new trustees coming in they were able to take a fresh look at the policies and procedures of the Fund. Lt Stiscak is detailed to the Fund and involved in the daily operations.
The police trustees are dedicated to protecting and improving the health of our Fund, and we would undoubtedly expose and confront any illegal, improper or harmful acts to our Fund.
There are some very serious and outrageous allegations being made without any supporting evidence. It is disgusting to see people financially profit by spreading misleading and false information to the members.
Police officers should know better than to believe any headline or comment you read, please get the facts and to come to a logical conclusion.
Thank you,
Tom
Thomas Beyna
Chicago Police Officer | Board President | Chair Investment Committee
Policemen’s Annuity & Benefit Fund of Chicago
221 N LaSalle | Suite 1626 | Chicago, IL 60601
Office: 312-676-0401
Email: tbeyna@chipabf.org
Notice of Confidentiality
This transmission contains information that may be confidential and that may also be privileged. Unless you are the intended recipient of the message (or authorized to receive it for the intended recipient), you may not copy, forward, or otherwise use it, or disclose its contents to anyone else. If you have received this transmission in error, please notify us immediately and delete it from your system.