Pension

Pension Services

Navigating the Illinois pension code can be difficult. L&A takes pride in the fact that we’ve been working to help police and fire pension fund trustees understand the code for over two decades. We recognize the importance of a Board’s responsibility and the challenge it presents to accomplish these tasks in conjunction with the daily responsibilities of life outside of the pension world.

L&A recognizes the sacrifices made by our clients’ members, who are entitled to a pension benefit that is calculated accurately and remitted timely. Our dedicated staff is available to work directly with your pensioners; our firm treats your members with the respect they deserve.

The entire L&A Pension team possesses unparalleled knowledge of the complex public pension industries. We are the premier go-to resource for public pension administration in the state of Illinois. Our firm’s growth is directly tied to the satisfaction of our clients. Our clients return year after year because of our specialty expertise and the exceptional service we provide.

Accounting Compilation Services

Our Accounting Services involve more than balancing a check book. Beyond providing bookkeeping, financial and regulatory reporting services, L&A works to support each client and be a reference point as they navigate the pension world. Our extensive knowledge and experience working with hundreds of different Article 3 and Article 4 pension funds allows us to definitively recommend best practices and provide timely compliance along with financial reporting. This ensures a client’s pension fund remains informed, and, most importantly, runs efficiently.

  • Posting cash receipts and disbursements journal entries
  • Monthly reconciliation of all bank accounts
  • Accounting for investment transactions including amortization of discount and premium
  • Posting the general ledger
  • Posting cash receipts and disbursements journal entries
  • Monthly reconciliation of all bank accounts
  • Accounting for investment transactions including amortization of discount and premium
  • Posting the general ledger
  • Recording of vendor and benefit checks
  • Maintenance of contributions by member
  • Maintenance of vendor and benefit payment history
  • Preparation of monthly financial statements
  • Recording of vendor and benefit checks
  • Maintenance of contributions by member
  • Maintenance of vendor and benefit payment history
  • Preparation of monthly financial statements

ACCOUNTING COMPILATION SERVICES PROVIDED

Pension Benefits Administration
Services

Our Pension Benefits Administration goes far beyond simply cutting checks. Trustees of pension boards which engage a local accountant or a bank to issue pension payments must still shoulder most of the work and responsibility behind those payments.  L&A takes that work off your plate: from calculating each pension benefit and service transfer to processing contribution refunds and tax filings, and from answering each member’s and trustee’s pension question to ensuring compliance with state and federal agencies.

L&A provides benefits administration for hundreds of the Illinois Article 3 and Article 4 pension funds, supporting over 15,000 active members and 14,000 pensioners.  Our firm respects and appreciates the extreme sacrifices that public safety officers make, and we recognize the importance of pension benefits to their lives.  We pride ourselves in the personalized service we provide to each Trustee and to each member.

Our expert Pension Benefits Team has helped establish L&A’s role as the recognized authority in Article 3 and Article 4 pension benefits administration, giving our clients the peace of mind that their members receive the attention and respect they deserve.

  • Tier 1 and Tier 2 pension benefit calculations and disbursements (via ACH or physical check)
  • Maintaining pensioner member files
  • Remittance of deductions (federal tax, insurance, Child Support, QILDRO, etc.)
  • Calculation of and remittance of contribution refunds
  • Calculation of taxability of pension benefits and contribution refunds
  • Pension benefit calculations and disbursements (via ACH or physical check)
  • Maintain pensioner member files
  • Remittance of deductions (federal tax, insurance, Child Support, Quildro, etc.)
  • Calculation of and remittance of contribution refunds
  • Calculation of taxability of pension benefits and contribution refunds
  • Processing of QILDRO’s
  • Calculations of transfers of and purchases of creditable service
  • Remittance of board-approved vendor payments
  • IRS reporting, including generation of and filing of forms 1099R, 1099MISC, 1096, and 945
  • Processing of QILDRO’s
  • Calculations of transfers of and purchases of creditable service
  • Remittance of board-approved vendor payments
  • IRS reporting, including generation of and filing of forms 1099R,1099MISC, 1099NEC, 1096 and 945

PENSION BENEFITS ADMINISTRATION SERVICES PROVIDED

Professional Services Administration (PSA)

Our Professional Services Administration doesn’t stop when your board meeting is over.  Our PSAs handle the administrative noise - agendas, board packets, meeting minutes, trustee elections, trustee training and conference registration, active member files, affidavits of eligibility – and give you back the time to focus on theother responsibilities and commitments in your life. 

Our PSAs provide qualified, experienced professional support to perform all administrative duties timely and efficiently, and in compliance with the Illinois Statutes and Administrative Code.  

Our PSA service offers a cloud-based portal, giving trustees access to archived and current pension fund records through a website login or via an App on their smart phone or tablet.

  • Preparation of Meeting Agendas and Board Packets
  • Attendance at Board meetings
  • Preparation of Board meeting minutes
  • Maintaining active member files
  • Trustee elections
  • Preparation of Meeting Agendas and Board Packets
  • Attendance at Board meetings
  • Preparation of Board meeting minutes
  • Maintaining active member files
  • Trustee elections
  • Record keeping of Trustee Training
  • Board communication and correspondence
  • Record keeping of important pension fund documents
  • Affidavits of continued eligibility
  • Notary public services

PSA SERVICES PROVIDED

  • Record keeping of Trustee Training
  • Board communication and correspondence
  • Record keeping of important pension fund documents
  • Affidavits of continued eligibility
  • Notary public services

Record Inventory and Disposal

Disasters can render records lost or damaged beyond use.  A State-approved retention schedule provides a registered inventory of records with a confident level of accountability.   L&A has developed a unique records management program, putting the Illinois Local Records Management processes into practice for Police and Fire Pension Boards, Fire Protection Districts, and other Local Boards across the State of Illinois.

By stream lining the Records Inventory and Disposal service, L&A assists our clients with the management, retention and disposal of their local records in a manner fully compliant with the Illinois Local Records Act.

    Non-Pension Fund Clients:

    • Assistance with Illinois records management and retention
    • Document scanning and web-based portals
    • Preparation of meeting agendas, meeting packets and minute taking
    • Assistance in preparing and compiling special reports
    • Assistance with recruitment, hiring and promotion process
    • Employee file maintenance
    • Part-time or temporary administrative support (short-term disability, etc.)
    • Union elections
    • On-site or off-site administrative assistance available
    • Organization and inventory of records
    • Preparation for a Local, State or Federal Audit
    • Convert paper records to electronic format
    • Minimal time requirements from clients
    • Eliminate unnecessary records
    • Disaster preparedness
    • Cost-effective and efficient
    • Outsourced to experts

    RID SERVICES PROVIDED

    Coalition for Qualified Plan Status

    In 2008, the Internal Revenue Service (IRS) raised concerns about whether Illinois Article 3 and Article 4 pension funds were in compliance with federal tax law, and strongly encouraged the funds to obtain Qualified Plan Determination Letters. It is recognition as a Qualified Plan that allows pension funds to maintain certain tax benefits such as:

    To be recognized as a Qualified Plan, the plan document (the Illinois Statutes and Department of Insurance Administrative Code) must incorporate federal tax law changes as they are adopted. The plan document for Illinois Article 3 and Article 4 funds had not kept pace with changes in federal tax law.  As a result, a coalition of interested organizations was formed (including AFFI, IGFOA, ILFOP, IMTA, IPFA, IPPFA and MAP) to work with the Department of Insurance, Ice Miller, LLP (a law firm that represents a number of governmental pension plans) and Lauterbach & Amen, LLP to address compliance issues for the plans as a group. In 2009, the Coalition recognized the success of its goal as the IRS granted a determination letter to both the Article 3 and Article 4 pension plans.

    View the Determination Letters for the Article 3 and Article 4 pension funds.

    Financial update as of June 20, 2020-FINAL

    Pension Forms

    Below are commonly used pension benefit forms. If you are a looking for a form that is not currently listed below, please reach out to our benefits team.

    Forms

    New Benefit Calculation-Information

    Other Member Forms

    © LAUTERBACH & AMEN, LLP 2022