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Actuarial valuation shows modest improvement in Geneva fire pension funded ratio; police fund still lags
Summary
Foster & Foster presented the 05/01/2025 actuarial valuation: the fire plan's funded ratio rose to about 67.3% and unfunded liability fell to ~$10.9M; the police plan improved slightly to ~59.6% but carries an unrecognized deferred loss (~$569,000), and recommended city contribution for police and fire will increase modestly in 2026.
Geneva — Actuarial updates presented Monday showed modest improvements for the city’s fire pension and smaller improvements for the police pension, but both plans continue to carry unfunded liabilities.
Jason Franken of Foster & Foster explained the 05/01/2025 valuation process and results. For the fire plan: liabilities increased to roughly $33.4 million (accrued benefits and interest), but smoothed asset values rose and the unfunded actuarial accrued liability declined to about $10.9 million; the funded ratio increased from 64.3% to about 67.3%. Foster & Foster recommended the city's contribution for the fire plan rise from about $1.367 million to approximately $1.420 million (an increase of roughly $54,000).
On the police side, liabilities and payroll changes led to a slightly higher unfunded liability (about $24 million reported in the presentation) and the funded ratio rose from ~58.1% to ~59.6%. The police plan carries an unrecognized deferred investment loss (~$569,000) that will be recognized over the next several years and will act as a headwind to next year’s valuation.
Franken explained actuarial smoothing (recognizing investment gains and losses over a five-year period) and how the consolidated investment trust structure means the city’s funds are managed at the state level. Several aldermen asked clarifying questions about market value vs. actuarial value and whether Geneva’s funding levels align with peer communities; Franken said Geneva’s ratios are around the mid-range of comparable plans.
No formal action was required the night of the presentation; council thanked the consultant and directed staff to retain the report for budgeting and planning.
