COMPLETE POLICE AND FIRE PENSION FUND MANAGEMENT
The mission of your police or fire department comes first. When you have to deal with responsibilities unrelated to your mission of keeping the community safe, you run the risk of failure. Use your time wisely by letting Sikich’s accountants take certain functions, such as pension fund accounting, out of your hands. Sikich’s Police and Fire Pension Fund Accounting and Consulting Services team provides customized services as needed for your fund. Sikich’s services include:
- Accounting, including monthly reconciliation, recording of investment activity, revenue and expenses, and contribution documentation.
- Pensioner payments, including calculations, scheduling, distribution, tax planning, and more.
- Vendor payments, including payment processing and check register preparation.
- Reporting and audit assistance, including financial statement preparation and presentation, tax preparation, and more.
While our experienced team focuses on the above services, we have specialized experts who can provide other services upon request.
PENSION FUND ACCOUNTING AND CONSULTING SERVICES
Accounting
- Monthly reconciliation of all bank and investment accounts.
- Record investment activity for the investment accounts of the Pension Fund.
- Record revenue and expenses of the Pension Fund.
- Maintain detailed documentation for member contributions to the Pension Fund including tracking member status as Tier 1 or Tier 2 members.
Pensioner Payments
- Calculate the annual pension benefits in accordance with Illinois Compiled Statutes (ILCS) or any other state statutes for the service and disability pensioners of the Pension Fund.
- Prepare the schedule of annual payments for approval by the Pension Fund Board.
- Calculate the pension benefit for any new pensioners or other required changes based on ILCS.
- Maintain and track future increases for pensioners.
- Prepare letters to be mailed to pensioners to communicate benefit changes.
- Determine the taxability of pension benefits.
- For each pensioner, maintain the benefit calculations, tax documentation and “safe harbor” calculations.
- Process monthly pension benefit payments to the pensioners.
- Process pensioner withholdings.
- Process QILDROs as required by the Fund.
- Prepare and send monthly benefit payment registers to the Pension Fund.
- Process member contributions refunds as requested by the Pension Fund.
- Assist with and calculate creditable service options.
Reporting & Audit Assistance
- Prepare the compiled financial statements summarizing all financial activity of the Pension Fund on a quarterly basis.
- Present the compiled financial statements to the Pension Fund during regularly scheduled board meetings.
- Prepare annual 1099-Rs for pensioners and 1099-Misc for vendors and related tax forms.
- Prepare and electronically file the Annual Statement for the Department of Insurance.
- Prepare workpapers for the Pension Fund auditors.
- Prepare annual municipal compliance report.
Vendor Payments
- Process vendor payments.
- Prepare check register (warrant) for approval by the Pension Fund Board.
