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Boards set expected rate of return: general and police at 7.6%, fire at 7%
Summary
Following the actuarys recommendation, trustees voted to set the expected rate of return (an annual disclosure required by state law) to 7.6% for the general and police plans and 7% for the firefighter plan; motions passed by roll-call votes.
Trustees debated and then voted on a required annual disclosure setting the expected rate of return used for reporting purposes. Investment consultant and actuary recommended rates consistent with the plans' assumed discount rates.
For the general employees and police plans, the boards adopted an expected rate of return of 7.6% "for this year, next year, and the long term thereafter," following consultant recommendation and an observation that matching the expected rate disclosure to the actuarial assumption avoids questions from state reviewers.
For the firefighters plan, trustees adopted an expected rate of return of 7.0% to match the assumption used by the City of Jacksonville plan after the interlocal agreement. Roll-call votes recorded yes votes by trustees present for all three boards.
Staff and consultants noted the exercise is an annual required disclosure and does not by itself change actuarial contribution calculations; however, the actuarial valuation and related assumption changes adopted by the boards will affect contributions.
