Cook County, Illinois General Obligation Refunding Bonds slide image

Cook County, Illinois General Obligation Refunding Bonds

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 Status 1 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% 1. 2. of coo • FY 2022 contribution of $324.2 million No legal challenges to supplemental funding have been filed to date 600 400 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 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. 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 16 65% 60% 55% 50%
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