At the Nov. 14 meeting of the Oklahoma City Employee Retirement System, the plan’s actuary presented the results of the most recent actuarial valuation, reporting that the plan’s smoothed actuarial return was 5.53% for the measurement period versus the plan’s 7% actuarial assumption, and that this recognition, together with volatile payroll, will increase the city’s required contribution for fiscal 2026.

Louise (the actuary) told trustees that the plan uses a smoothed funding value rather than market value to phase in gains and losses over four years. She said calendar‑year 2023 produced a net market value rate of return of 10.23%, but because gains and losses are recognized gradually “we recognize 25% per year” of those differences and the resulting smoothed return reported for funding purposes was 5.53% against a 7% actuarial bogey.

Louise also introduced the Low Default Risk Obligation Measure (LDRAM), a new disclosure required by actuarial standards of practice. She said the LDRAM measures liabilities using Treasury yields and therefore “the value of liabilities goes up” under that measure; she emphasized the LDRAM is included only in the actuarial report and does not appear on the city’s financial statements.

On funding status, Louise reported the plan’s funding percent across a 20‑year history and said the plan’s funded ratio has “far exceed[ed] that” of many peers, citing national survey averages in the mid‑70s. Trustee comments summarized staff’s view that the funded percent moved from about 1.001 to .98 and that the city contribution will increase in FY2026.

Jason (investment staff) presented monthly and quarterly investment results through September and described subsequent market moves in October and November. Jason said the portfolio captured strong one‑year returns across asset classes and outlined October rebalancing activity. The board received the monthly and quarterly investment reports by motion and approved them.

The actuary and staff recommended monitoring the funding trajectory as current investment performance for late 2024 is finalized and staff begins budgeting for the FY2026 city contribution. Trustees had no further questions and the board proceeded to other agenda items.