Liquidity and Financial Overview of Cook County
Retirement Fund Overview
The County is fully committed to making supplemental contributions to its Retirement Fund
☐
Employees' and Officers' Annuity and Benefit Fund of Cook
County (the "Retirement Fund") established under Illinois
Pension Code (the “Code”), is a separate legal entity from
the County
The Code currently limits County and employee contributions
to the Retirement Fund based on a percentage of payroll;
contributions are not determined on an actuarial basis
•
County contributions generally derived from property tax
("Pension Levy")
Funded Ratio of the Retirement Fund has been relatively
stable over the past 5 years at 64-67%
■ County has made supplemental contributions to the
Retirement Fund starting in 2016 to independently shore-up
funding²
•
Funded by increase in Home Rule Sales Tax from 0.75%
to 1.75%
Actuarial
Retirement Fund Status1
Pension
Pension & OPEB
$16.9 billion
$19.1 billion
Accrued Liability
Actuarial Value
of Assets
$11.0 billion
$12.8 billion
$6.0 billion
$6.3 billion
64.8%
67.2%
7.5%
UAAL
Funded Ratio
Investment Rate
Assumed
Current
Statutory
Contribution
($mm)
800
Pension Levy = 1.54x Employee
Contribution 2 years prior
Historical Retirement Fund Contributions¹
Statutory
Supplemental
-Funded Ratio (RHS)
70%
•
FY 2022 contribution of $324.2 million
.
No legal challenges to supplemental funding have been
filed to date
600
65%
60%
55%
50%
400
Under current statutes and actuarial assumptions,
Retirement Fund expected to deplete its assets by 2054
absent action; projection assumes no further supplemental
contributions
200
0
2012
2014
2016
2018
2020
1.
Source: Retirement Fund ACFR for the fiscal year ended December 31, 2021 and the Actuarial Valuations of the Retirement Fund as of December 31, 2021. See also Appendix B to
Preliminary Official Statement dated August 3, 2022. Amounts rounded.
2.
See Appendix B to Preliminary Official Statement dated August 3, 2022 for information on supplemental contributions to Retirement Fund not included in this projection.
CO
16View entire presentation