The new funds, signed into law by Gov.
The significantly larger fund should increase investment returns by allowing access to a wider range of investment options, officials said. It should also help alleviate residents' property tax hikes, which otherwise pay for the pension funds' rising costs.
"That was the hope of the state legislature in doing this,"
Within that larger state fund, Pavlicek said the village will continue to have its own
"We expect both of those numbers to increase," Drazner said. "In 2018, we had a bad December [for investments]. This year, we had a pretty good year with the stock market, so I would expect everything to increase."
Drazner said the larger pot of money at the state level should be a benefit to all municipalities who are contributing.
"We're talking about billions instead of just millions," Drazner said. "We can assume the rate of return is going to go up."
A state task force earlier this year issued a report concluding that "each day the funds remain separate, they collectively forfeit
The report estimates the larger pension funds could collect additional investment returns of
Pavlicek said the village expects to transition its funds to the new state-run organization by either the 2022 or 2023 fiscal year.
"In our 2021 budget, we think things will continue as we've done them in the past," Pavlicek said. "Usually, the state agency in charge will issue rules and regulations and they will give us all kinds of deadlines. This is going to be a huge transfer of funds with a lot of paperwork for people to be moving these quantities of money."
With the state taking over the pension funds, Pavlicek said
"I think the state did an excellent job to make sure everybody who is currently in a pension is protected," Pavlicek said.
Pavlicek said the change does not affect the state mandate for municipalities to reach a 90 percent pension funding level by 2040, adding
Local municipalities have until
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