Punta Gorda pension board approves actuarial valuation, confirms 6.5% assumed return

The City of Punta Gorda General Employees Retirement System board voted to approve the plan’s actuarial valuation and to adopt a 6.5% assumed rate of return for the coming year and long term.

Patrick of Foster & Foster presented the valuation and highlighted that investment returns exceeded expectations for the reporting period. He reported that the plan’s assets rose (approximately $58.9 million on 10/01/2024) and that the plan beat its actuarial return assumption by about $2.0 million for the measurement period. "We expected to earn 3,800,000, and we actually earned 6,000,000. So we beat our assumptions significantly by the tune of 2,000,174," Patrick said during his presentation.

Patrick also noted the funded ratio improved from 88.7% to 91.3% and walked trustees through membership and turnover details that affect long‑term funding (membership grew from roughly 143 active members to 171 due to opt‑ins and new hires). After questions from trustees and brief discussion about report sections, a trustee moved to approve the actuarial valuation; the motion passed by voice vote.

The board then adopted the assumed rate of return at 6.5%, a required element for the state filing. The administrator and consultant were instructed to provide the required confirmation letter to the state specifying the assumed rate used in the valuation.

Why it matters: The actuarial valuation sets the accounting of assets and liabilities, the required funding calculations, and the official assumed investment return used for plan reporting and state compliance. An improved funded ratio and actuarial gains can meaningfully affect employer contribution calculations and funding projections.

The board recorded the approval and directed staff to include the statutory language in the minutes and submit required documentation to the state.