Actuarial Valuation Report as of July 1, 2000
Section 1 - Introduction
We are pleased to provide our formal annual Actuarial Valuation Report as of July 1, 1999, covering the City of Champaign Police Pension Fund. This report provides, among other things, the minimum annual contribution requirements, of the Plan, for the Plan Year commencing July 1, 1999 and ending on June 30, 1999 (which directly affects the City's tax levy in the 1999-2000 fiscal year that is collected and deposited into the Pension Trust in fiscal 2000-2001). This valuation was based on the Plan as outlined in Section 6 of this report, on the Plan participant statistics as provided by the City of Champaign (i.e., Plan Sponsor), and on the actuarial cost method and the set of actuarial assumptions as described in Section 5 of the report.
Further, Chapter 40, Act 5, Article 3 of the Illinois Compiled Statutes requires an actuarial
balance sheet (i.e., actuarial valuation) be prepared by an "Enrolled Actuary" in order to
determine the annual tax levy to meet the annual actuarial requirements of the Pension Fund. The undersigned Principals of Watson Wyatt Worldwide have the following qualifications:
- Denise Patterson is a Fellow of the Society of Actuaries, a Member of the American Academy of Actuaries, and an Enrolled Actuary with over twenty-four years of responsible experience in actuarial and pension consulting field.
- Paul Adamczyk is an Enrolled Actuary and a Member of the American Academy of
Actuaries. Furthermore, Mr. Adamczyk has had over twenty-three years of responsible experience in the actuarial and pension consulting field.
It is our understanding, in accordance with the Illinois Compiled Statutes, that the undersigned Principals more than satisfy the minimum requirements as set forth in the referenced Pension Code as recently amended. In addition, it is also our understanding that the Pension Code only requires that an "Enrolled Actuary" perform the required annual actuarial valuation - and does not mandate that the Illinois Department of Insurance's annual actuarial valuation of the Pension Fund be controlling or that the Department of Insurance accept or approve another "Enrolled Actuary's" actuarial valuation of the Pension Fund.
Watson Wyatt & Company
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Chicago, Illinois 60606-3308
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