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McAlester council accepts pension funding and GASB reports showing near 100% funding
Summary
City pension consultant reported the retirement plan is roughly fully funded; council accepted actuarial funding and GASB financial statements and approved continuing contributions.
McAlester — The city council voted to accept the actuarial funding report (as of 07/01/2025) and the Governmental Accounting Standards Board (GASB) financial statements (as of 06/30/2025) for the McAlester defined-benefit retirement plan and trust.
In a presentation to the council, Bruce Nordstrom, the pension plan actuary, told council members, “In a nutshell, the news is very good.” He said the plan is essentially fully funded, reporting funding measures of about 97.4% on one basis and 101.3% on another.
The actuarial report shows roughly $15 million in market-value assets, a smoothed funding value of about $14.4 million and liabilities near $14.7 million. Nordstrom said participant count is falling, and the plan has been frozen for 12 years. He noted the city’s minimum annual contribution dropped from about $414,000 last year to $355,000 for the current year and that contributions are expected to fall further next year after the final amortization of an older funding basis.
Why it matters: GASB accounting rules require governments to project pension obligations across the life of the plan and can force a lower discount rate if assets are insufficient; that change can raise reported liabilities. Nordstrom warned that a significant market setback could push the plan out of fully funded status and said continued contributions provide a cushion.
Councilor Gilmore moved to accept the reports; Councilor Boatwright seconded. The motion carried on roll call.
Council discussion included questions about how low contributions could go in a tight budget year; Nordstrom said, “If you wanted to cut it all the way to bare bones, it could go down to as low as 15 or 20,000,” but recommended keeping contributions nearer $200,000 for a few years to preserve the funded status. He explained that every 100 basis points of a lower discount rate would raise the liability roughly 9%, increasing the city’s reported pension liability and potentially affecting bond ratings.
The council accepted the reports and recorded the motion as carried. The actuary and staff said they would provide supporting documents to address a later question about a plan amendment raised by a member of the public.
