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Board adopts 7.4% assumed return, staff addresses earlier retiree payment reductions
Summary
The Palatka Firefighters' Pension Board accepted staff advice adopting a 7.4% assumed rate of return and discussed a previously delayed retiree payment reduction; staff said they will not reclaim past payments and will hold a workshop and have the actuary (Patrick) explain multiplier options at the next meeting.
Trustees voted to accept an actuarial recommendation setting the plan’s assumed rate of return at 7.4% for planning purposes, and discussed a separate issue raised in public comment about retiree payment reductions that were not applied as scheduled.
Foster & Foster (presented by staff) advised the board of updated mortality assumptions and an assumed rate of return of 7.4 percent; staff recommended adopting the advised rate and trustees voted to accept the recommendation. A motion to accept the 7.4% rate was made and the board approved it during the meeting.
In public comment, staff member Miss Scott explained that retirees were surprised by a benefit reduction that should have taken effect in 2023 but had not been applied until recently. Scott said the plan adjusted payments to the lower amount going forward and that “we're not gonna go back and claw any money back.” She said retirees will see an uptick in payments in October when adjustments revert, and trustees agreed to schedule a workshop to explain multiplier options and communicate with members.
Staff and trustees also noted that actuary Patrick will attend the next meeting to explain how different multiplier choices work and that a cover letter and outreach materials will be prepared to inform members of the change and recommend consulting tax and financial advisers before making elections.
The board approved the actuarial assumption and directed staff to hold a workshop, produce member communications, and have Patrick present at the next meeting.
