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Sarasota police pension board accepts FY2025 actuarial valuation; contribution rate to 38.78% of pay
Summary
At its Jan. 22 meeting the Sarasota Police Officers Pension Planning Board of Trustees accepted the fiscal‑year 2025 actuarial valuation presented by Pete Strong of GRS, recording a required contribution of 38.78% of pay and a 91% funded ratio on a smoothed basis; trustees also affirmed a 6.5% assumed return as required by Florida statute.
Pete Strong, an actuary with GRS, told the Sarasota Police Officers Pension Planning Board of Trustees on Jan. 22 that the fund had “a good year in terms of experience” and that investment returns and payroll growth together drove the required contribution for the next fiscal year to 38.78% of pay, down from 40.28% this year and 44.32% the prior year. Trustees voted to accept the fiscal‑year 2025 actuarial valuation as presented.
Why it matters: the valuation describes the pension’s current financial health and sets the contribution trustees will use for budgeting. Strong said the plan’s funded ratio is 91% on the board’s smoothed (actuarial) basis, and that the market value of assets, if used in place of the smoothed value, would show a funded ratio closer to 97.9%. He told trustees the plan built a cushion as market gains outpaced actuarial expectations, producing approximately $7,000,000 of asset experience gain that helped reduce the unfunded liability.
Key facts from the valuation: the actuary reported a total present value of benefits of $424,800,000 and an actuarial liability of about $367,000,000. Covered payroll rose to $20,660,000 from $19,480,000 the prior year; that increase in payroll means the plan can express the same dollar contribution as a lower percent of pay even when employer dollars rise. Strong also noted demographic variances (for example, 4 retirements versus 10 expected) and small mortality and termination differences that produced modest offsets to asset gains.
Statutory confirmation and disclosures: the board’s legal adviser reminded trustees that, as required under Florida law, the board must confirm the assumed investment return when approving the valuation. Trustees moved to affirm a 6.5% assumed investment rate of return for statutory disclosure and long‑term purposes and recorded the affirmation on the record. Strong explained the board’s GASB 67 disclosure requirements and the related sensitivity exhibits the firm prepares showing plan liabilities and contribution development at 4.5%, 6.5% and 8.5%.
Chapter 185 and member allocations: Strong said Chapter 185 revenue totaled $1,052,000 for the year — the first time the board’s Chapter 185 receipt exceeded $1 million in a year — and described the legislated split that directs a portion of the excess to the plan and a portion to a police officer share plan. He estimated the per‑officer share in the hundreds of dollars range, subject to service‑based allocation rules.
What’s next: the board accepted the valuation and directed staff to post required disclosures as mandated by statute. Trustees were told the formal GASB 67/112664 disclosure is due within 60 days of approving this valuation and will be submitted for posting to the city website and to the state as required.
Quotes and attributions: “We had a good year in terms of experience that the market value of assets did well again for the third year in a row,” Strong said during his presentation. On smoothing and future expectations, Strong said the board has built a cushion and that, “as long as we don't have offsetting losses over the next couple of years, we expect the contribution rate to continue trending down.”
Ending: After discussion on data validation and model checks, trustees moved to accept the valuation and recorded the votes in favor. The board also affirmed the 6.5% assumed return for reporting purposes and instructed staff to complete the statutory disclosures.
