Independent peer review finds Beaumont fire pension valuation reasonable

A Milliman peer review presented to the Beaumont City Council on Oct. 14 concluded that the Dec. 31, 2024 actuarial valuation prepared for the Beaumont Firemen's Relief and Retirement Fund was reasonable and complied with actuarial standards of practice.

Ryan Falls, an actuary with Milliman, told the council the firm replicated the fund actuaryresults within about $100,000 and found the valuation to be a sound basis for the city's recent funding discussions. "We believe that that most recent evaluation is reasonable based on reasonable assumptions and methods, and the report complies with the actuarial standards of practice," Falls said.

Milliman's review was a required peer review for pension funds of the fund's size; it examined assumptions and methods, experience studies, demographic and economic assumptions and the underlying data and asset values. Falls told council the review suggested several areas for enhancement, including communication clarity in written valuation reports and refinements to assumptions about inflation, salary increases and mortality expectations. Those recommendations were characterized as improvements rather than findings that would change the core valuation.

Council members have recently debated enhanced funding for the fire pension fund; Falls said the peer review validates the valuation results the council and fund used in those discussions. The peer review was described as the third such external review for the fund and is required by the state for funds above a specified asset threshold.

Falls invited follow-up questions and offered to provide more technical detail to the council and staff on request.