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Actuary: plan remains funded above 100%; modest member and town contribution increases recommended

Town of Indian River Shores Pension Board · January 28, 2026

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Summary

The actuarial valuation showed the pension plan remains over 100% funded; the actuarial recommendation to adopt new mortality tables raised the minimum required contribution modestly, moving estimated member contributions from 5.89% to 6.1% of pay and the town share from about 12.95% to about 13.42%. The board approved the valuation and declared a 6.75% net of fees investment return for planning.

The plan’s actuary, Doug Lowes of Foster & Foster, presented the actuarial valuation and experience-study recommendations and said the pension plan remains over 100% funded on the actuarial basis used in the report.

Lowes explained that the primary driver for the modest increase in the required contribution was adoption of the Florida Retirement System (FRS) mortality tables (mandatory for plans of this type). He summarized the results: the member contribution requirement will increase from 5.89% of pay to 6.1% of pay (estimate reported in the presentation) and the town’s required contribution for fiscal 2026–27 was estimated to increase modestly from around 12.95% to approximately 13.42% of pay (presented as percent estimates in the valuation summary). Lowes emphasized the plan’s funded status and described the plan as "very well funded" but noted the state reviews valuations and that sustained periods above a 100% funded ratio could draw additional attention from state reviewers.

The board voted to approve the actuarial valuation report. Lowes then read the formal declaration language for expected returns; trustees declared an expected investment return of 6.75% net of fees for the planning/declaration exercise and approved that declaration by voice vote.

Trustees also discussed other assumption changes recommended in the experience study (retirement rates, salary increase assumptions) but agreed to table those changes until the next meeting to consider additional staff input from counsel (Bonnie) and to review the implications jointly.

Ending: The approved valuation and declared return will be used for budgeting and reporting; staff and the actuary will bring back the remaining experience-study assumptions for a later vote.