City retirement fund posts 7.4% return; funded ratio steady at 82% in latest actuarial report

Finance staff presented the retirement system’s annual report based on the 2024 actuarial valuation, saying the pension fund remains well managed though its funded ratio is unchanged year‑over‑year.

The presenter told the commission that the plan’s actuarial funding value at fiscal year‑end was about $236.4 million and that market valuations were stronger in April/May; the plan’s recognized investment return was 7.4%, above the plan’s assumed rate of 7.25%. "The City of Fort Pierce Retirement and Benefits System remains in the top percentile of all retirement plans in the country," the presenter said.

Nut graf: The fund’s funded ratio stayed at about 82% on the valuation date. Staff said the plan’s net investment income and contributions produced a net increase in assets; ongoing demographic changes and state mortality factors are increasing required contribution rates for future budgets.

Key figures and implications - Recognized investment return: 7.4% (above the 7.25% actuarial assumption). - Funded ratio: 82% (no change from previous valuation). - Fund market value (reported in May): approximately $253 million. - Net increase in assets for the year: roughly $37.4 million. - Number of retirees: 576 total across plans; annual benefit payments about $17 million; average benefit amounts were reported by plan (general, FPUA, police).

Staff noted actuarial and demographic trends (increased longevity) have pushed required contribution rates for pension funding up. New employer contribution rates were presented for the upcoming budget cycle and will be reflected in the city’s operating plan.

Ending: Commissioners praised the retirement board and investment managers for performance and asked staff to monitor funding progress; discussion included whether future gains could support cost‑of‑living increases for long‑term retirees if the system reaches full funding.