Shortfall discovered in Island Lake police pension fund
A shortfall has been discovered in Island Lake's police pension fund, village officials have confirmed.
An auditor is looking into the issue and trying to determine how much money is missing, Mayor Charles Amrich said during Thursday's village board meeting.
A resident asked about the pension fund during the meeting's public comment section. The question was prompted by a media report indicating village officials hadn't been putting cash into the fund.
"We are aware that there is a deficit there," said Amrich, whose town has struggled financially in recent years.
Once the auditor determines how much money is missing, officials will work out a payment "to get this squared away," Amrich said.
Island Lake's shortfall isn't unusual. Many suburban pension programs haven't been fully funded as costs have risen.
In some cases, that's led to higher tax bills and reduced municipal services, a 2012 Daily Herald analysis showed.
Much of the increase came from municipal officials planning for large investment returns during years when little to no investment income was seen, the analysis showed.