Cocoa Beach pension board accepts actuarial valuation, adopts 7.25% investment assumption and approves consent agenda

The Cocoa Beach Pension Board voted to accept the actuarial valuation prepared by Foster & Foster and adopted an expected investment return of 7.25% net of fees for state reporting. The board also approved a routine consent agenda that included minutes from the Nov. 21, 2024 quarterly meeting, a list of invoices and one retiree.

Doug Rosen, the Foster & Foster actuary, presented the valuation and described the recommended city contribution rates and the drivers behind recent changes. Rosen said the city’s required contribution for the current fiscal year (based on the 10/01/2023 valuation date) remains 11.59% of payroll and that the board should budget roughly 12.1% of payroll for the next fiscal year. He cited above‑assumption salary increases over several years as the primary reason for the projected rise in the city’s percentage obligation. “The city's required contribution for the current fiscal year is... 11.59% of payroll,” Rosen said.

Rosen said favorable investment returns over the last few years — a multi‑year averaging method is used in the valuation — helped offset some of the salary effects and that the plan remains well funded relative to many peer plans. He recommended continuing the current assumptions until the next full experience study (scheduled every five years) and warned that further unusual salary increases could push the city requirement up in the short term.

After Rosen’s presentation the board voted to accept the 10/01/2024 valuation report. The board then made the required state declaration of expected investment return: the board adopted 7.25% net of fees as its return assumption for the “next year, the next several years, and the long term thereafter,” language required for the state filing. A board member moved to accept the declaration and it was seconded and approved by voice vote.

Under informational items Foster & Foster’s memo on the recent federal Social Security/Government Pension provisions was discussed; Foster & Foster and staff noted it does not apply to Cocoa Beach employees because the city participates in Social Security. The board set its next quarterly meeting for May 15 at 3 p.m. and then adjourned.

Votes at a glance - Consent agenda (minutes of 11/21/2024; invoices from Burgess Chambers, Foster and Foster, Sterling Capital, Truist; approval of one retiree): motion and second recorded; approved by voice vote. - Motion to accept the 10/01/2024 actuarial valuation report (Foster & Foster): motion and second recorded; approved by voice vote. - Declaration of returns: motion to adopt 7.25% net‑of‑fees investment return for state filing: motion and second recorded; approved by voice vote.

No roll‑call tallies were recorded in the public transcript; all three motions passed by voice vote with “aye” responses recorded.