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Actuaries recommend $2.1M contribution to Effingham police and fire pensions, propose 15‑year payoff for $15.9M unfunded liability

Effingham City Council · August 19, 2025
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Summary

Lauterbach & Amen presented valuations showing a recommended 2026 contribution of about $2.1 million for the city's police and fire pension funds, driven by earlier retirements and a modest inflation assumption change; staff said the plan targets payoff of about $15.9 million in unfunded liability over 15 years.

An actuarial representative from Lauterbach & Amen on Monday reviewed the city’s combined police and fire pension valuations and recommended a total contribution of about $2,100,000 for the year — roughly $1,000,000 for the fire fund and $1,100,000 for police — reflecting an overall year‑over‑year increase near 10%.

The firm said the valuation purposefully increased two core assumptions: a slight reduction in average retirement age (based on recent experience) and a modest bump in the long‑term…

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