illinois municipal retirement fund

Pension funds see boost following a couple years of loses in down economy

Herald-Whig Staff Writer

Municipal public safety pension funds, which provide retirement benefits for firefighters and police officers, took a hit as the economy slid during the Great Recession.

Like many other investment funds, double-digit percentage losses were common, and the city of Quincy was no exception.

"A couple years ago, we were losing 10 and 12 percent," Quincy Treasurer Peggy Crim said.

Quincy pension funds have seen a boost in investments returns, although the volatility of the stock market in recent weeks could alter that trend. Both police and fire pension funds made money in the last fiscal year.

The police officer pension fund had $2.723 million in revenue and $2.422 million expenditures at the end of the fiscal year April 30. The fund currently has total assets of $28.458 million.

The firefighter pension fund had revenues of $3.433 million and $3.418 million in expenditures. The fund currently has total assets of $22.615 million.

Between January and April, the pensions earned 5.4 percent. In the previous fiscal year, the funds earned 11 percent.

The state always assumes the funds will earn 7.5 percent through investments.

James McNamee, president of the Illinois Public Pension Fund Association, said improved markets have helped public safety pension funds across the state.

"I think everybody will start seeing improved funding levels," McNamee said, adding the downturn in the economy hurt pension funds statewide.

The pension reform bill approved late last year also allows different investment opportunities that weren't previously available.

"We've got some expanded investment opportunities that will up the returns," McNamee said. "We were under such restrictions that we were missing out on some pieces of the market that had some of the better returns for us.

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