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Pension boards decry Naperville referendum

Those who oversee Naperville's police and firefighter pension funds agree changes are necessary to ensure proper payments continue to be made to the fund.

But they're also disappointed with the city's decision to put a pension reform question on the Nov. 2 ballot asking voters if they want state lawmakers to reform the police and fire pension system to reduce the future funding obligation, now that the state has already reformed the system for other public employees.

Those reforms, which some councilmen would like to see implemented for police and firefighters too, include caps on final average salary calculations, reduced cost of living adjustments and increased retirement age.

"That's a leading question. You know by the way the question is worded that you're going to get a 90 to 95 percent approval," said David Senneke, vice president of the police pension fund. "Why not a referendum to decrease drunken driving or to decrease domestic violence or to give out free ice cream?"

Don Bisch, president of the Naperville police pension fund, said he was disappointed the referendum question didn't point out that municipalities last changed the funding formula in 1993 with the help of the state legislature.

Rather than attempt to convince the state to roll back the level of funding municipalities are required to make, Bisch suggested the city work to "extend the mandated date for funding from 2033 to 2049, using a bond sale to fund the pension fund, increasing revenue streams and implementing user fees."

Naperville's required contributions for firefighter pensions increased about $1.4 million, or 42.1 percent over the past two years while its required contribution for police during that time increased about $1.5 million, or 46.8 percent.

The city attributes the increases to investment losses, wage increases and benefit increases mandated by law.

Police and firefighters are on a pension system that provides guaranteed benefits. In Naperville, they contribute slightly less than 10 percent of their salaries to their pension and are eligible for a maximum of 75 percent of their salary if they reach 30 years of service.

At current rates, Senneke said, the city could end up paying as much as $25 million a year to the fund.

"That's a scary number," he said.

"We'll work with you to get it paid, but make no mistake, we won't let you not pay it."