Murfreesboro pension committee approves rolling 15-year amortization after actuarial report shows 77% funded ratio

The Murfreesboro City Council Pension Committee on Oct. 15 approved replacing the plan's current amortization schedule that targets full funding in 2041 with a rolling 15-year amortization, after receiving an actuarial valuation that showed the plan is about 77% funded.

Amy Krause, an actuary from AkerSure, presented the annual actuarial valuation and the GASB 68 disclosure, saying the measurement date used for the accounting disclosure was June 30, 2024, and that some of the numbers in the GASB report are therefore a year old. She told the committee the plan's market value of assets was about $195 million and the actuarial value of assets about $193 million, while the present value of promised benefits rose to roughly $281 million; the report's actuarial accrued liability figures were in the low-to-mid $250 millions, leaving an unfunded liability of about $59 million and a funded ratio of roughly 77%.

Krause said normal cost for the coming year is about $3.6 million, roughly 9.69% of the grandfathered group's payroll, and that the plan continues to be a grandfathered closed group (no employees hired after June 30, 2010 may enter this plan). She told the committee that payroll…