City Board approves new contribution rates for police and fire pension funds

The Police and Fire Department Retirement Plan Board meeting held on April 3, 2025, focused on critical financial decisions regarding the retirement plans for city employees. The board discussed the approval of contribution rates for police and fire personnel, which are essential for maintaining the sustainability of the retirement fund.

A significant point of discussion was the recommendation from the investment team to establish a discount rate based on the assumed rate. This decision is crucial as it directly impacts the financial health of the retirement plans. The board unanimously approved the motion to accept the proposed contribution rates, which were based on a detailed analysis provided by the consulting firm Chiron.

The meeting also addressed the administrative budget for the fiscal year 2025-2026. The proposed budget reflects a modest increase of approximately 3.6%, amounting to an additional $296,000 compared to the previous year. This budget includes allocations for personnel services, professional services, and non-personnel expenses, with a notable increase in professional services due to anticipated costs for legal and actuarial services.

Board members raised questions regarding the communication of changes to the membership, confirming that updates would be sent electronically to members' work emails, with options for paper communication available upon request. Additionally, the board discussed the variations in contribution rates between police and fire departments, attributing these differences to distinct benefit structures and recent contract negotiations.

Overall, the meeting underscored the board's commitment to ensuring the financial stability of the retirement plans while adapting to changing circumstances and maintaining transparent communication with members. The next steps involve finalizing the budget and continuing to monitor the contributions and benefits as the fiscal year progresses.