Heidi Berry, an actuary from GRS, presented the results of the Sept. 30, 2024, actuarial valuation for the City of Columbia’s police and fire pension systems and described how the results set employer contribution rates for the fiscal year ending Sept. 30, 2026.

The valuation showed total plan assets and liabilities that left a combined unfunded liability of about $156 million and a combined funded ratio near 55 percent; the actuarial funding value of assets was about $189 million and the market value was about $204 million as of Sept. 30, 2024. Berry said the plan recognized unusually strong investment performance in 2024 — a market return of roughly 22.5 percent, or about $37.6 million — and that the valuation smooths gains and losses over four years.

Why this matters: The actuarial numbers determine the city’s required employer contribution and influence budgeting decisions. Council members pressed staff about whether the plan is making progress toward a sustainable funded level and whether recent changes to actuarial assumptions affect trend interpretation.

Key results and context
- Active membership and payroll: Berry reported 136 active police members with total payroll of about $11.6 million (≈ +16.5% year over year) and 168 active fire members with total payroll of about $13.61 million (≈ +17.5%).
- Retirees/beneficiaries: The valuation counted about 203 police retirees/beneficiaries receiving roughly $6.8 million annually and about 181 fire retirees/beneficiaries receiving roughly $9.5 million annually.
- Asset valuation and smoothing: Because of volatile markets, the actuarial valuation uses a four‑year smoothing method. Berry said the plan’s market gains in 2024 produced a recognized gain of about $4.7 million in this valuation after smoothing; $15.4 million of gains remain to be recognized in future years.
- Employer contribution rates: For the group Berry presented a total normal cost (before subtracting employee contributions) of 19.93%, employee contributions reduced the normal cost by a weighted 4.07 percentage points, and the resulting normal cost plus an amortized unfunded liability produced a final employer contribution figure Berry gave as 46.57% (the presentation then showed a separate total for fire of 60.56%). Berry and staff explained those percentages are applied to payroll; because payroll rose substantially, the percentage can fall while the dollar amount of employer contribution rises.
- Liabilities and amortization: Total accrued liabilities were reported just under $345 million; the unfunded liability was about $156 million, and the valuation uses a 27‑year amortization schedule for the unfunded portion. Berry and staff described that amortization as the mechanism that drives how quickly the unfunded piece declines and noted the plan is effectively in the early years of that schedule.

Questions and discussion
Council members repeatedly pressed for context. Jackie Sample voiced concern that long‑term funded ratios have trended downward over the last decade and said she was "deeply concerned" about a roughly 50–55% funding level. Berry and city staff clarified that the funded ratio rose modestly from the Sept. 30, 2023 valuation (police up about 1 percentage point, fire up about 2 points) and that changes in actuarial assumptions (for example a lowered investment return assumption adopted after an experience study) produce step changes in funded ratio that complicate long‑term trend lines.

Jim McDonald and Matthew Zhu (city staff facilitators during the presentation) emphasized that the city has paid the contributions recommended by the actuary each year. McDonald said the city and pension board are "committed to keep on this timetable" and that the intent is not to reset the amortization clock to a longer period at the next review, barring drastic change. Staff also noted that in prior years the pension drew on investment assets to pay benefits, but under the current contribution schedule net cash flow from contributions has improved; in 2023 the plan withdrew about $1.7 million from investments, in 2024 about $700,000, and in the current year staff expected no withdrawal.

Investment managers Mark Shagowski and David Sears (UBS) described the pension’s asset allocation (domestic large cap, small/mid cap, developed international, fixed income, and a growing alternatives sleeve that includes private credit and real estate), noted the board’s investment policy and manager due diligence, and said that negotiated fee levels were about 0.38% overall.

What was decided or directed
There were no formal votes at this session. Staff stated their intent to adhere to the current amortization schedule and to continue following actuarial recommendations for annual employer contributions; the council asked staff to continue reporting the valuation results and to address remaining questions during the budget process.

Next steps
Berry said the actuarial valuations are performed every year; the next five‑year experience study will be performed on a standard schedule (staff noted the next full experience study period will include 2021–2025 and be reviewed in 2027). City staff will incorporate the valuation numbers into the FY2026 budget work and provide follow‑up responses on specific trend tables requested by council members.

Ending: The presentation closed with council discussion about funding priorities and timing; members asked staff for additional clarifications and indicated they would return to pension funding during the upcoming budget deliberations.