Staff reports shortfall in Chapter 175 offset from City of Jacksonville under interlocal agreement

Pension staff told trustees they received a letter identifying a shortfall in Chapter 175 offset payments that, under a prior interlocal agreement, the City of Jacksonville agreed to provide to offset the Jacksonville Beach plan’s required contribution. Staff said the shortfall will be reflected in actuarial reports and that city staff expect the matter to be corrected.

According to staff, the interlocal agreement called for Jacksonville to take certain Chapter 175 monies to offset the city’s contribution. Staff said Jacksonville made the offset in the first year, did not in the second year, and had not done so in the current year; the plan’s actuary provided a shortfall calculation in a letter the pension office received the day before the meeting. "We got a letter from Gabrielle Smith yesterday afternoon... here's the amount you're in shortfall," pension staff said.

Staff reported the City of Jacksonville Beach itself made its required contribution for the year (staff referenced an amount in the "700 and something" thousand range), but the interlocal offset from Jacksonville remained outstanding in actuarial reporting. Staff said they expect Jacksonville to make the offset contribution and that the shortfall would be reflected in the actuarial reports being prepared for the fiscal-year filing.

The transcript records no formal board action on the Chapter 175 shortfall at the meeting; staff said the issue was being handled with the city and incorporated into reports for the actuary.