City officials in Winter Haven, FL, reported positive developments regarding the city's pension plans during a Special Commission Workshop on July 23, 2025. The meeting highlighted improvements in the funding status of the general employee pension plan, which is currently 82.3% funded, a notable increase from the previous year. The unfunded liability for this plan has decreased by $3 million, now standing at approximately $17 million.

Commissioner Mercer, who serves as a liaison to the pension board, noted that the firefighter pension plan is also performing well, with an 84% funding ratio and an unfunded liability of about $88.3 million. Meanwhile, the police pension plan boasts the lowest contribution rate at 15.2% of payroll and is funded at 85.8%, exceeding expectations.

The discussions also touched on the long-term sustainability of these pension plans. Officials acknowledged that while current funding levels are stable, there are concerns about future liabilities as the plans age. The city has closed the general employee pension plan to new members since 2017, transitioning new hires to a defined contribution plan. This shift aims to mitigate future financial risks associated with pension liabilities.

The meeting underscored the importance of ongoing actuarial assessments to monitor the health of the pension funds. Actuaries will continue to evaluate factors such as mortality rates and investment performance to ensure the plans remain viable. City leaders expressed confidence in the current management of the pension funds but recognized the need for vigilance as demographic changes could impact future funding.

As Winter Haven navigates these financial challenges, the city remains committed to maintaining transparency and accountability in managing its pension obligations, ensuring that both current and future retirees are supported.