Punta Gorda pension board approves actuarial valuation, keeps 7% return assumption

The Punta Gorda Police Pension Board on Dec. 11 approved its annual actuarial valuation and voted to declare a 7% assumed investment return for the coming year.

The valuation shows plan liabilities increased after the department’s headcount rose (from 36 to 43 non‑DROP officers) and because of recent salary increases. The presenter told trustees the plan’s actuarial asset and liability reconciliation produced an unfunded actuarial accrued liability of about $5.3 million and a funding requirement that includes a roughly $665,000 annual amortization payment; the report otherwise reflects roughly $27 million in market assets and an approximately $3 million investment gain in the period under review.

Board members were told the plan’s ‘‘true’’ funded ratio moved from about 87.9% under the prior measurement to about 83.8% on the current 10/01/2025 snapshot, a decline the actuary attributed mainly to higher payrolls rather than investment losses. Trustees approved the valuation by voice vote and then voted separately to declare a 7% expected return for valuation and budgeting purposes.

Why it matters: the valuation determines the city’s required contribution, the amortization amount to pay down any unfunded balance, and the financial picture used when trustees and staff discuss contribution policy and investment posture.

The board will publish the final valuation and supporting materials to members and file required reports with the state after the trustee approvals. Next procedural steps include any follow‑up actuarial adjustments if the city provides additional payroll or pay‑out information requested by the actuary.