Douglas County pension review shows funding gap, steady recovery; board to get May update

Douglas County commissioners received a 25‑year review of the county employees pension Tuesday showing the fund has recovered from earlier lows but remains below full funding.

Laurie, chair of the pension committee, told the board the plan’s funded ratio rose to about 68% by the end of 2023 and that the pension held approximately $458,500,000 in assets at Dec. 31, 2024. She said the county will receive the official 2024 funded‑ratio number from its actuary, HUB, at the May pension committee meeting.

The presentation traced drivers of the fund’s performance over three decades, citing policy changes such as the 1996 implementation of the Rule of 75, cost‑of‑living adjustments in the late 1990s and early 2000s, and employer and employee contribution increases in the mid‑2000s. Laurie said market returns and actuarial assumptions also materially affected the fund’s ratio.

“Contributions and investment earnings increase the pension assets; benefit payments and assumption changes are the outflows,” Laurie said. “We’ll keep a very close eye on it, and if the 7.5% return assumption starts to be out of line with actual experience, we’ll adjust it.”

Commissioners pressed for context about recent performance and next steps. Commissioner Kavanaugh said the presentation was “eye opening” and emphasized that policy choices decades ago — notably the Rule of 75 and COLAs — produced large, long‑term effects on the fund. Commissioner Morgan said the 7.5% actuarial assumption is “a very, very healthy return” and urged caution about relying on that number going forward.

Board members asked for a short, updated briefing at the May 22 pension committee meeting and for a one‑slide update to the full board reflecting market performance since Dec. 31, 2024. Laurie also agreed to post the presentation PDF on the county website after the meeting and to supply additional detail about historical benefit payouts and the number of employees still eligible under the Rule of 75.

Laurie described the state oversight trigger tied to funding: if the plan falls below an 80% funded ratio the pension committee chair must testify before the Nebraska Retirement Systems Committee and explain measures taken to close the gap. “I don’t wanna have to go down there and explain anything that would be making that gap wider,” she said.

The presentation noted that the county has taken steps to improve long‑term viability — including raising contribution rates in prior years and eliminating Rule of 75 treatment for new hires after June 30, 2011 — and that continued monitoring of investment returns and assumptions will guide future adjustments.

Commissioners framed the presentation as an informational checkpoint rather than a change in policy. The pension committee will return with actuarial results in May and board members said they would consider further action only if recommended by the committee and actuary.