Page 13 - September Issue

Individual calculations and the urgency of SB777
PENSION NEWS UPDATE
I would like to begin my article by congratulat- ing the FOP Board of Directors on this inaugural issue and new magazine format. I also want to thank President Angelo on his open invitation to be a regular contributor on future pension related issues.
The Pension Fund has received several calls from retirees and officers who are receiving a dis- ability benefit or who have resigned during the last police contracts. Shortly after the ratification of any contracts, the Fund begins to work on recal-
culating pension benefits. Presently, we are doing so for more than one thousand officers. Some members think the people working at the Pension Fund merely have to click on any comput- er and - “Abracadabra” - your calculation is done. Sorry, but each calculation is done on an individual basis in order to be accurate. Just to be clear, those members who retire first are the ones who receive their adjustments first.
My next order of business to address is the dedicated funding issue the mayor and other politicians have proposed in Spring- field, within Senate Bill 777. FOP President Angelo and Recording Secretary Greg Bella have previously written about SB777 and the positive impact it can have on our Fund. Ladies and gentlemen,
something has got to happen in Springfield and happen soon. Please know that I mean it in as positive a way as possible. Right now, our Pension Fund currently sits at a 27-percent funded level, and this is not the best level for any pension to be at. We need the next step of SB777 to be approved. We need the source of that related funding. We need a Chicago Gaming Bill.
Funding is critical for the long-term sustainability of our Fund. The Fund annually distributes more than $300 million of assets to pay for retirement and disability benefits. The city needs to increasedepositstothisFundASAP.
Plus, the stock market downturn that occurred in the later part of August did not help our investments in any way shape or form. We are at the doorstep of a death spiral, pension-wise. Everything being considered, if nothing is done and the political battle over pensions continues to drag on, I can openly say that within the next six to 10 years this Fund may be depleted. You can crunch your own numbers on a pocket calculator. These are basic math calculations and the numbers don’t lie.
I’ve been in the fight of looking out for all of our member’s retirement and pension interests. I look forward to staying in the ring to fight for you for years to come. And I look forward to keep- ing you all informed. d
MICHAEL K. LAPPE PENSION TRUSTEE
CHICAGO LODGE 7 ■ SEPTEMBER 2015 13