Actuarial review: Columbia police and fire pensions 55% funded; employer contribution rates recalculated for FY2026

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…