Illinois Compiled Statutes 40 ILCS 5/1A-110 – Actuarial statements by pension funds established under Articles other than 3 or 4
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(a) Each pension fund established under an Article of this Code other than Article 3 or 4 shall include as part of its annual statement a complete actuarial statement applicable to the plan year.
The actuarial statement shall be filed with the Division within 9 months after the close of the fiscal year of the pension fund. Any pension fund that fails to file within that time is subject to the penalty provisions of Section 1A-113.
The board of trustees of each pension fund subject to this Section, on behalf of all its participants, shall engage an enrolled actuary who shall be responsible for the preparation of the materials comprising the actuarial statement. The enrolled actuary shall utilize such assumptions and methods as are necessary for the contents of the matters reported in the actuarial statement to be reasonably related to the experience of the plan and to reasonable expectations, and to represent in the aggregate the actuary’s best estimate of anticipated experience under the plan.
The actuarial statement shall include a description of the actuarial assumptions and methods used to determine the actuarial values in the statement and shall disclose the impact of significant changes in the actuarial assumptions and methods, plan provisions, and other pertinent factors on the actuarial position of the plan.
The actuarial statement shall include a statement by the enrolled actuary that to the best of his or her knowledge the actuarial statement is complete and accurate and has been prepared in accordance with generally accepted actuarial principles and practice.
For the purposes of this Section, “enrolled actuary” means an actuary who (1) is a member of the Society of Actuaries or the American Academy of Actuaries and (2) either is enrolled under Subtitle C of Title III of the Employee Retirement Income Security Act of 1974 or was engaged in providing actuarial services to a public retirement plan in Illinois on July 1, 1983.
(b) The actuarial statement referred to in subsection (a) shall include all of the following:
(1) The dates of the plan year and the date of the
The actuarial statement shall be filed with the Division within 9 months after the close of the fiscal year of the pension fund. Any pension fund that fails to file within that time is subject to the penalty provisions of Section 1A-113.
Terms Used In Illinois Compiled Statutes 40 ILCS 5/1A-110
- Accrued liability: means the actuarial present value of future benefit payments and appropriate administrative expenses under a plan, reduced by the actuarial present value of all future normal costs (including any participant contributions) with respect to the participants included in the actuarial valuation of the plan. See Illinois Compiled Statutes 40 ILCS 5/1A-102
- Actuarial present value: means the single amount, as of a given valuation date, that results from applying actuarial assumptions to an amount or series of amounts payable or receivable at various times. See Illinois Compiled Statutes 40 ILCS 5/1A-102
- Actuarial value of assets: means the value assigned by the actuary to the assets of a plan for the purposes of an actuarial valuation. See Illinois Compiled Statutes 40 ILCS 5/1A-102
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Current value: means the fair market value when available; otherwise, the fair value as determined in good faith by a trustee, assuming an orderly liquidation at the time of the determination. See Illinois Compiled Statutes 40 ILCS 5/1A-102
- Division: means the Public Pension Division of the Department of Insurance. See Illinois Compiled Statutes 40 ILCS 5/1A-102
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Normal cost: means that part of the actuarial present value of all future benefit payments and appropriate administrative expenses assigned to the current year under the actuarial valuation method used by the plan (excluding any amortization of the unfunded accrued liability). See Illinois Compiled Statutes 40 ILCS 5/1A-102
- Pension fund: means any public pension fund, annuity and benefit fund, or retirement system established under this Code. See Illinois Compiled Statutes 40 ILCS 5/1A-102
- Plan year: means the calendar or fiscal year on which the records of a given plan are kept. See Illinois Compiled Statutes 40 ILCS 5/1A-102
- Unfunded accrued liability: means the excess of the accrued liability over the actuarial value of the assets of a plan. See Illinois Compiled Statutes 40 ILCS 5/1A-102
The board of trustees of each pension fund subject to this Section, on behalf of all its participants, shall engage an enrolled actuary who shall be responsible for the preparation of the materials comprising the actuarial statement. The enrolled actuary shall utilize such assumptions and methods as are necessary for the contents of the matters reported in the actuarial statement to be reasonably related to the experience of the plan and to reasonable expectations, and to represent in the aggregate the actuary’s best estimate of anticipated experience under the plan.
The actuarial statement shall include a description of the actuarial assumptions and methods used to determine the actuarial values in the statement and shall disclose the impact of significant changes in the actuarial assumptions and methods, plan provisions, and other pertinent factors on the actuarial position of the plan.
The actuarial statement shall include a statement by the enrolled actuary that to the best of his or her knowledge the actuarial statement is complete and accurate and has been prepared in accordance with generally accepted actuarial principles and practice.
For the purposes of this Section, “enrolled actuary” means an actuary who (1) is a member of the Society of Actuaries or the American Academy of Actuaries and (2) either is enrolled under Subtitle C of Title III of the Employee Retirement Income Security Act of 1974 or was engaged in providing actuarial services to a public retirement plan in Illinois on July 1, 1983.
(b) The actuarial statement referred to in subsection (a) shall include all of the following:
(1) The dates of the plan year and the date of the
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actuarial valuation applicable to the plan year for which the actuarial statement is filed.
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(2) The amount of (i) the contributions made by the
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participants, and (ii) all other contributions, including those made by the employer or employers.
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(3) The total estimated amount of the covered
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compensation with respect to active participants for the plan year for which the statement is filed.
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(4) The number of (i) active participants, (ii)
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terminated participants currently eligible for deferred vested pension benefits or the return of contributions made by those participants, and (iii) all other participants and beneficiaries included in the actuarial valuation.
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(5) The following values as of the date of the
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actuarial valuation applicable to the plan year for which the statement is filed:
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(i) The current value of assets accumulated in
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the plan.
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(ii) The unfunded accrued liability. The major
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factors that have resulted in the change in the unfunded accrued liability from the previous year shall be identified. Effects that are individually significant shall be separately identified. As a minimum, the effect of the following shall be shown: plan amendments; changes in actuarial assumptions; experience less (or more) favorable than that assumed; and contributions less (or more) than the normal cost plus interest on the unfunded accrued liability.
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(iii) The amount of accumulated contributions for
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active participants (including interest, if any).
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(iv) The actuarial present value of credited
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projected benefits for vested participants currently receiving benefits, other vested participants, and non-vested participants.
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(6) The actuarial value of assets.
(7) Any other information that is necessary to fully
(7) Any other information that is necessary to fully
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and fairly disclose the actuarial position of the plan and any other information the enrolled actuary may present.
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(8) Any other information regarding the plan that the
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Division may by rule request.
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