Firemen's Annuity and Benefit Fund of Chicago, Illinois ... - Fabf.org

Additions to Plan Net Assets
$79.0
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
Additions (In Millions) Employer contributions
$44.2
Employer contributions decreased $11.1 million (-12.4%) between 2006’s employer contribution
of $79.0 million and 2005’s employer contribution of $90.1 million. This decrease reflects the
timing of required City of Chicago employer contributions in 2005 corresponds to increased member
contributions received in 2003 due to the new 2003 contract that was settled and retroactive salaries
were paid.
Member contributions increased $8.5 million (23.9%), from $35.7 million in 2005 to $44.2 million
in 2006 as a result of the retroactive salary increase payments made in accordance with the new
contract signed in 2006 between the City of Chicago and Local 2.
Net investment and securities lending income increased. For 2006, the Plan earned $174.4 million
in portfolio income and gains that were derived from strong showings in portfolio equity and fixed
income holdings. Net investment income for 2005 was $112.0 million.
Deductions to Plan Net Assets
Deductions (In Millions)
$26.8
$2.7
$1.6 $2.2
$174.4
$147.6
$0.1
Benefit payments to retirees and plan participants increased $10.5 million (6.4%) between 2005 and
2006 as retroactive adjustments to salaries due to the new 2006 contract agreement increased
corresponding benefits to affected retirees.
Annuitant health care and administrative expenses remained relatively constant between 2006
and 2005.
Refund of contributions increased by $149,259 (10.2%) between 2006’s refunds of $1,619,107 and
2005’s refunds of $1,469,848.
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Member contributions
Net Investment Interest,
Dividends, & Other Other
Net Appreciation in Fair
Value of Investments
Other
Annuitant health care
Benefits
Refunds of contributions
Administrative expenses