With goal of full funding, new payment model for fire pension explored by Finance Committee 

September 17, 2026 - 21:54

The village board's finance committee on Sept. 3 supported a new structure for fire and police pension funding. The move is intended to put the retirement system on a path toward full funding over time.

Under the proposal, the village would shift how it calculates its annual contribution. Instead of relying on a fixed formula that has left the fund short of its long term target, the new model ties payments more closely to the fund's actual investment returns and projected obligations. Supporters say this approach gives officials a clearer picture of what is owed each year and reduces the chance of sudden spikes in cost.

Committee members raised questions about how the change would affect the village budget in the near term. Staff noted that early payments under the new model could be higher than in past years, but that the increase would stabilize once the fund reaches a healthier ratio. They also pointed out that delaying action would likely cost more later.

The full board is expected to review the recommendation at its next meeting. If approved, the new payment structure would take effect at the start of the next fiscal year. Officials say the goal is not only to meet state requirements but to ensure that promised benefits are available when firefighters and officers retire.