Independent peer review finds Beaumont firefighters’ pension valuation reasonable; recommends documentation, assumption tweaks

An independent peer review of the Beaumont Firemen's Relief and Retirement Fund found the plan valuation reasonable and suitable for council decisions, but recommended refinements to assumptions and the fund's written communications.

Ryan Falls, an actuary with Milliman, told council the firm reviewed the pension fund’s December 31, 2024 valuation and was able to replicate the liabilities within about $100,000. "We believe that the most recent evaluation is reasonable based on reasonable assumptions and methods, and the report complies with the actuarial standards of practice," Falls said. He said Milliman’s review is required by the state for funds above a statutory threshold and is intended as a peer review of the fund actuary’s work.

Falls said the firm made suggestions to improve estimating future active benefits and provided a few recommendation items related to inflation, salary increases and life-expectancy assumptions. He also suggested enhancing the fund actuary’s written communications so trustees and municipal decision-makers better understand valuation drivers; Falls emphasized those recommendations did not change the valuation results used in recent funding discussions.

Why it matters: The city recently considered enhancements to funding the fire pension fund. Council members rely on actuarial valuations and peer reviews for long-term budgeting and pension funding decisions. Falls told council the reviewed valuation provided a sound foundation for those decisions.

Follow-up: Falls invited council to pose questions on the peer-review details and said he would provide documentation; council did not record any formal action tied to the presentation.