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Police and fire pension boards brief council; police fund now near retiree-only status
Summary
Trustees and actuaries presented the annual reports for the police and fire pension plans; the police plan now largely serves retirees and the fire plan reported asset growth and increased state distributions.
Trustees and consultants for the City of Venice police and fire pension plans presented annual reports at the council meeting, describing plan status, funding assumptions and next steps for retirees and the city.
Police Pension: Kevin McGrath, chairman of the police pension board, said the plan is in a strong funding position largely because of intentional city contributions and favorable investment returns. Actuary Doug Lozen of Foster & Foster reported the police plan has only one active member and a high average monthly benefit (about $4,500). The board and actuary said the investment return assumption is 6.75 percent net of fees, and that the plan has deferred net gains that will phase in under actuarial smoothing. McGrath said the last retiree-benefit increase was in 2017; trustees will evaluate cost and options and would bring recommendations if they choose to seek a change.
Fire Pension: Foster & Foster plan administrator Chrissy Stoker and consulting actuary reported the fire plan increased assets during the fiscal year, with strong investment returns and a rise in state distributions (about $45,431 more in fiscal-year state monies than the prior year). The plan had nine active contributing members at the September 30 valuation date and over 44 service retirees. Stoker said the board is studying the impact of lowering the investment-return assumption by 25 and 50 basis points and estimating the effect on the city's contribution.
Council members asked procedural and compliance questions about trustee training, the frequency of benefit increases and how any retiree-cost proposals would be developed. Trustees and staff said any recommendation on benefit adjustments would come to the council only after actuarial analysis and a board vote.
