County finance details $1.5M end‑of‑year transfer to pension fund; officials urge steady annual contributions
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Summary
Finance staff told the council the county put additional FY25 savings into the pension to raise funded ratio to about 73% and recommended predictable annual contributions and continued monitoring of actuarial assumptions.
Deputy finance director Charles Schmeickel told the County Council during a July 15 work session that the county recorded an end‑of‑year transfer into its pension fund to improve the plan’s funded ratio and to show a consistent funding commitment to the actuary.
Schmeickel summarized the plan’s finances: “we have a total pension liability of a $137,000,000. We have an asset of a $101,000,000, and that gets us to the 73% funded,” he said. He described the pension as a long‑term obligation affected by investment returns, employee contributions and employer contributions, and urged steady contributions to reach a commonly used 80% funded goal.
What happened: Finance staff reported that, after reviewing audited balances and year‑end savings across departments, the administration used available FY25 savings (salary and operating underspends, rebates and similar items) and transferred approximately $1.5 million into the pension account before June 30, 2025. Finance characterized the transaction as a lawful budget transfer under the county charter and said the move was intended to be prudent for solvency and to improve actuarial assumptions.
Why it matters: The county’s pension plan is a material long‑term liability. Schmeickel and other finance staff said improving the funded ratio demonstrates a good‑faith commitment to retirees and to markets, and reduces the likelihood that actuarial assumptions will be adjusted downward because of a history of under‑funding.
Questions from council and answers - Timing and magnitude: Finance said the transfer was possible because some FY25 budgeted amounts were not spent and because the county had sufficient fund balance; staff emphasized conservative estimates when calculating available savings. - One‑time vs. recurring: Schmeickel said the transfer is a prudent step but not a permanent policy change; administration and finance suggested making similar end‑of‑year assessments in future years when savings exist, and stressed that a holistic approach (regular contributions, possible policy setting, and monitoring investment returns) would be preferable to repeated one‑off transfers. - OPEB interplay: Finance said other post‑employment benefits (OPEB) were well funded (about 120% per recent actuarial work) and that the county deliberately paused new OPEB deposits in recent years to prioritize pension funding.
Next steps: Finance will provide a follow‑up actuarial update when available and will supply the council the detailed actuarial reports and funding history. The administration said it will consider whether a formal funding policy (statutory or administrative) should be recommended in future budget cycles.
