The Retirement Board reviewed the 2013 actuarial valuations on May 7, 2014.  The actuarial valuations, prepared by Buck Consultants, LLC, provide a snapshot of the funds’ financial condition and a projection of the future funding trajectory.  As detailed in the reports, in 2013 investment returns of over 15% increased the Cook County Fund’s funded status to 56.6% (from 53.5% in 2012) and extended the fund’s projected solvency date to 2038 (from 2034 in 2012).  

As of December 31, 2013, the Cook County Fund’s assets were valued at $8.4 billion on an actuarial basis with liabilities of $14.8 billion, resulting in an unfunded liability of $6.4 billion.  The actuary estimates that the statutory employer contribution represents only 31% of the actuarially required amount, a shortfall of $439 million.  Retiree health benefits account for $1.4 billion of the total liabilities.  The Forest Preserve District Fund’s assets were valued at $182.6 million with liabilities of $306.9 million, resulting in an unfunded liability of $124.3 million.  Relative to the 2012 valuation, the funded status increased to 59.5% from 56.7% and the projected solvency date was extended to 2038 from 2031. 

The 2013 valuations reflect revised assumptions regarding salary increases, retirement, mortality, terminations, and inflation that were adopted by the Retirement Board following an experience study of 2009-2012 data.  Taken together, the assumption changes produced no material difference in the valuations. 

Fair value returns above 15% brought the funds to peak market valuation and led to the funds’ strengthened financial position in 2013.  On an accounting basis, the Cook County Fund was valued at $8.9 billion and the Forest Preserve District Fund was valued at $199.7 million as of December 31, 2013.

To view the 2013 actuarial valuations, please visit our Financial Reports page.