Punta Gorda trustees adopt new actuarial assumptions, keep 7% investment return

Trustees of the Punta Gorda police pension board voted to adopt multiple actuarial assumption changes recommended in a five‑year experience study and to keep the plan—s investment return assumption at 7 percent. The board approved the changes for use in the Oct. 1, 2025 valuation report after a motion and a voice vote at the meeting.

The move switches the plan—s funding method from a frozen entry‑age approach to the entry‑age normal actuarial cost method, aligns several demographic and payroll assumptions with recent experience and state guidance, and keeps the board—s long‑term investment return at 7 percent. The actuary told trustees the combined effect of the recommended assumption changes would raise the city—s annual pension cost by about $158,000 under the sample valuation presented.

Patrick (actuary, Foster & Foster) led the presentation. He described the entry‑age normal method as the standard many other plans now use and said it smooths funding volatility by amortizing gains and losses over a longer, fixed period rather than over the plan—s changing average future working lifetime. "So the total sum total is a $158,000, is how much the city's cost would go up," Patrick said while summarizing the package of recommended changes.

Why it matters: the funding method determines how actuarial…