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Commission hears pension updates: police employer share rises after recent benefit changes; fire and general pensions flagged for adjustment or surplus use
Summary
Staff reported funding ratios of roughly 84.1% for police, 85.2% for fire and 98.1% for general employees; recent commission-approved benefit changes increased the police employer contribution target to about 21.97% and staff said they would return with required ordinances and resolutions tied to pension formula changes.
Brandy (staff member and budget presenter) told the commission the three city pension funds are in materially different positions: the police pension funded ratio is about 84.1%, the fire pension about 85.2% and the general employees pension about 98.1%.
Brandy said an actuary had indicated the employer contribution for police would be 14.81% absent recent board actions, but "the changes that you approved last night" — described as changes to the multiplier and adding certain drop benefits — increase the employer contribution to about 21.97%. Brandy said that is why the employer contribution line item is higher in the FY26 budget; the transcript did not provide a single-dollar total for that increase in a clear format.
For the fire pension, Brandy said the actuarial percentage decreased from 42.67% to 41.26% and that staff is meeting with the actuary to reconcile a calculation they believe may be too high. The city would be required to contribute about $1.3 million to the fire fund as presented; staff also increased the budgeted amount to reflect recently approved benefits (for example, added overtime credit and drop benefits) and noted that employee contribution rates will also increase (described in the workshop as moving from roughly 6.5% to about 7–7.5%).
On the general employees pension, Brandy said the fund is well funded (about 98.1%) and that prior overfunding in FY23 and FY24 allowed staff to reduce the FY26 employer contribution to roughly the required $224,000; some savings were reallocated to a defined-contribution/401-type employer match program to provide up to a 3% match for employees. Brandy said ordinance changes and resolutions will be prepared to implement the pension formula modifications discussed at prior meetings; those items will return to the commission for formal action.
