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Cobb County pension trustees report funding improvement; funded ratio near 64%
Summary
The Cobb County pension trustees reported on Oct. 14 that the pension plan’s funded ratio has risen to nearly 64% from 61.4% last year and that the plan’s long-term return since inception remains above the board’s assumed 7.25% actuarial target.
Sam Heaton, vice chair of the Cobb County pension board trustees, presented the 2024 annual trustees report to the Board of Commissioners on Oct. 14.
Heaton said the plan’s funded ratio was about 61.4% last year and is now near 64%. The board’s assumed minimum annual return for planning purposes is 7.25%; Heaton said the plan’s since-inception return (1994) is approximately 8.238% and that the trustees consider the long-term trend to be favorable. He explained structural drivers of the plan—plan design, employer and employee contributions, investment performance, and demographic factors such as retiree longevity—and noted the trustees periodically commission experience studies on mortality and other actuarial assumptions.
Heaton thanked the Board of Commissioners for continuing employer contributions that meet actuarial requirements. He also noted that plan design has shifted over time from a traditional formula to a hybrid option for newer hires, and that the proportion of participants in the hybrid plan continues to increase.
No formal action was required of the Board of Commissioners during the presentation; Heaton invited questions and said the trustees would continue to monitor investment performance and actuarial assumptions and report back to the commission.
Key figures presented: funded ratio near 64% (up from 61.4%), assumed minimum return 7.25%, since-inception return ~8.238%.
