Pension News - FABF

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DAN FABRIZIO receive payments for the full amount of the actuarial required contributions. Unfortunately, since the Fund’s beginning in 1931, according to Mayor Daley’s Commission to Strengthen Chicago <strong>Pension</strong> Funds, the city of Chicago has failed to pay the actuarial required contribution. It was found that inadequate contributions by the employer accounted for the entire defi cit. The shame of it is, the taxpayers are being charged 8% interest on the unfunded defi cit, causing the defi cit to grow and grow. It is this unfunded defi cit that is the primary cause for the pension crisis. According to the National Institute on Retirement Security (“NIRS”), pension plans are effi cient in their use of capital. Historically, earnings on investments have made up the bulk of public pension receipts. Nationally, over the past fi fteen years, about 68% of pension revenues came from investment earnings, 21% from the employer payments and 11% came from employee contributions. Another way to explain this is the employer contributes approximately 21 cents for every dollar of total pension fund receipts. NIRS also found that prefunded plans have the advantage that investment earnings pay for the bulk of all earned benefi ts paid. This means that taxpayers get a better bang for its tax dollar contribution to a public pension plan if that fund is well funded. Unfortunately, the Firemen’s Plan was never adequately funded on an actuarial basis, which will cost taxpayers millions. What if the Firemen’s pension plan had been properly funded? The Firemen’s pension plan’s long-term investment performance has consistently ranked as one of the nation’s top tier plans, earning an average compounded return of 9.2% over the last twenty seven years. These investment earnings are what have kept this pension plan still going all these years. Think of the savings that could have been earned by the Fund had we been provided with better funding. There would be no pension crisis. During our February meeting, a proposal to require the Fund to divest (sell) portfolio holdings was made. Given the Fund’s successful long term track record as a strong, profi table investor, the idea of selling holdings for a reason other than an investment reason did not seem to be a prudent policy for the Board to adopt, nor did it seem to be in the best fi nancial interest of the Fund or the City’s taxpayers to establish such a precedent. Recently, the state of Illinois has been engaged in ongoing discussions to correct its pension underfunding problem. Unfortunately, it appears that the city does not want to engage in similar, meaningful discussions. It seems as though the city would rather have fi refi ghters reduce their benefi ts and pay more. You could never increase your contributions and reduce benefi ts enough to cover the city obligations to pay off the debt racked up on the “pension credit card.” The Chicago fi refi ghters are always open to fair negotiations and discussing pension funding solutions. We are not opposed to shared pain; we have no problem with contributing our fair share, in a constitutional manner, to correct the problem of underfunding that Mayor Emanuel has inherited. But let us also explore new pension revenue sources such as casino revenues, a fi nancial transaction surcharge or accessing historically low interest rates from the capital markets before asking fi refi ghters to pay more or proposing unconstitutional cuts to earned benefi ts. We as fi refi ghters believe everyone, private and public, should have a right to a fair, secure retirement. We do not believe the individuals or messengers who are trying to blame the entire problem of underfunding on fi refi ghters as the right way to resolve this issue. Fraternally, Dan Fabrizio REQUIRED DISCLAIMER The information set forth herein is believed to be reliable but is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation of the Firemen’s Annuity & Benefi t Fund of Chicago, the Retirement Board (the “Board”) or any member of the Board. The information and expressions of opinion contained herein are subject to change without notice. All expressions of opinion, whether or not expressly so stated, are intended merely as such and not as representations of fact. Financial information contained in this newsletter is as of a certain date, is unaudited and should not be relied on. 8
THE FOLLOWING ANNUITIES AND BENEFITS HAVE BEEN GRANTED AUGUST 2012 Minimum Formula Annuity LT ARTERLEE ANDERSON, ENGINE 28 AC CURT W. AUGUSTINE, AMBULANCE 41/SLD FF MICHAEL J. FLYNN, AIR MASK FF MARTIN FORMAN, ENGINE 10 PFC PATRICK M. KELLY, 4-5-6 EMT BC MICHAEL C. MILLER, HQ RELIEF FF THOMAS P. MUSCOLINO, TRUCK 31 EMT LT WILLIAM W. SPEE, ENGINE 54 Duty Disability None Occupational Disability EMT LT ALBERT MICHELON, TRUCK 48 LT PM TIMOTHY L. STOKES, HQ SEPTEMBER 2012 Minimum Formula Annuity FFPM STEPHEN AMELIANOVICH, ENGINE 97 FF GEORGE BUCKO, ENGINE 119 LT JAVIER GONZALEZ, FPB PM JOHN S. LUNZ, AMBULANCE 12 DDC WILLIAM E. MONROE, 6 th DISTRICT FF GERALD E. ROACH, ENGINE 89 BC JESSE SANCHEZ, 6 th DISTRICT FF RAYMOND STANSKI, ENGINE 112 PIC ROBERT A. WILLIAMS, AMBULANCE 19 EMT LT JEFFREY E. XENAKIS, ENGINE 9 Duty Disability FF JOHN G. FERNANDEZ, AIR MASK EMT CAPT KEVIN M. HICKS, ENGINE 129 AC CYNTHIA M. RODRIGUEZ, AMBULANCE 57 PFC JODI WARRICK, 4-4-1-1 Occupational Disability None OCTOBER 2012 Minimum Formula Annuity LT WILLARD J. BURTON, TRUCK 59 LT PATRICK J. CONNORS, ENGINE 117 EMT LT EUGENE GREEN, TRUCK 60 EMT FF ALAN G. HOOD, ENGINE 2 EMT LT KURT JANUS, TRUCK 11 EMT LT WILLIAM S. KENDRICK, ENGINE 120 PM CHRISTINE V. MARCUS, AMBULANCE 17 DDC DANIEL PAYNE, 2-2-6 LT WARREN ROBINSON, ENGINE 121 Duty Disability LT ROBERT C. GALLAPO, ENGINE 63 ENG DAVID PRAZUCH, ENGINE 64 9 OCTOBER 2012 (cont.) Occupational Disability PIC DONALD J. FOX, AMBULANCE 42 NOVEMBER 2012 LT THOMAS S. BANKS, SQUAD 2 AC GEORGE BUCHANAN, AMBULANCE 7 EMT CAPT RANDY CLAY, ENGINE 69 FF WILLIAM J. COLLINS, TRUCK 35 FF THOMAS W. DOLOUGHTY, ENGINE 56 PFC MICHAEL S. DURAND, 4-5-2 BC JOHN W. EDWARDS, 10 th BATTALION FF FREEMAN M. GILBERT, ENGINE 50 FF CHRISTOPHER GOMEZ, TRUCK 33 PFC WILLIAM J. HARTE, 4-5-4 AC OWEN E. KELLY, AMBULANCE 54 PIC ROBERT KING, AMBULANCE 5 EMT BC GEORGE M. KORDA, BATTALION 12 PIC THOMAS J. KRAJECKI, AMBULANCE 14 PIC JOSEPH C. LaMONICA, AMBULANCE 28 EMT FF KENNETH LEE, ENGINE 73 FF GEORGE LINK, ENGINE 99 EMT BC THOMAS J. MAGLIANO, BATTALION 22 FF ORAH MAHON, ENGINE 98 EMT LT TERRENCE W. McSHANE, TRUCK 17 PIC PAUL J. MOTISI, AMBULANCE 33 PFC THOMAS D. MURPHY, 4-5-1 EMT LT JAMES R. O'DONNELL, ENGINE 34 FF MICHAEL PHILLIPS, TRUCK 40 EMT LT DANNY H. ROBERTS, FPB SOUTH AC JOYCE ROBINSON, AMBULANCE 1 EMT LT TIMOTHY H. SCHNEIDER, FPB NORTH PIC MARY E. SCHWARZ, 2 nd DISTRICT RELIEF PIC BRIAN E. SOBECK, AMBULANCE 20 FF NICHOLAS SORRENTINO, ENGINE 57 PIC PENNY SULLIVAN, AREA 3 CAPT PM RONI L. THIELSEN, FPB NORTH FF JOSE C. WILBANKS, ENGINE 89 Duty Disability None Occupational Disability FF PM ARTURO ALVARADO, TRUCK 9 DECEMBER 2012 Minimum Formula Annuity FF JOSEPH L. AGUILAR, ENGINE 54 ENG JAMES M. AGUINAGA, ENGINE 28 LT LARRY W. ANOMAN, TOWER LADDER 34 EMT BC MICHAEL J. BARRETT, 9 th BATTALION EMT BC STEVEN C. BATES, BATTALION 7 EMT LT BRIAN J. BAUER, ENGINE 88 FF PAUL J. BEZAZIAN, ENGINE 94 AC RICHARD W. BIEHL, AMBULANCE 4
Page 1 and 2: Spring 2013 PENSION NEWS PUBLICATIO
Page 3 and 4: FROM THE SECRETARY (cont.) the memb
Page 5 and 6: DECEASED PARTICIPANTS FROM AUGUST 1
Page 7: DECEASED PARTICIPANTS FROM AUGUST 1
Page 11 and 12: THE FOLLOWING ANNUITIES AND BENEFIT
Page 13 and 14: FROM THE RETIRED TRUSTEE WALTER CAR
Page 15 and 16: GIFT FUND DONATIONS AUGUST 2012-FEB
Page 21 and 22: ENDE MENZER WALSH & QUINN WIDOWS' A
Page 23 and 24: SOFTBALL 23

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