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Actuary: July 1, 2025 valuations show pension ~108% funded but town still faces net contribution
Summary
An actuary told the Retirement Plan Advisory Committee that the towns 07/01/2025 interim valuations show the pension plan is about 108% funded (just under $14 million surplus), yet the town still must make a net annual contribution because of normal cost and a 15-year amortization schedule. The OPEB trust is about 88% funded; the presenter recommended considering using the trust for benefit payments.
An actuary told the Retirement Plan Advisory Committee on Feb. 5 that interim valuations as of July 1, 2025 show the towns pension plan is "overfunded by just under $14,000,000, so it's about a 108% funded," but the town will still need to contribute to the plan in the coming fiscal year.
The presenter, who reviewed the valuation materials distributed to the committee, explained the Actuarially Determined Employer Contribution (ADEC) is made up of two parts: the normal cost (the value of benefits active employees earn in the year) and the past service amortization payment. He said the gross normal cost is roughly $2.5 million, employee contributions are estimated at about $767,000, and the amortization of the surplus (treated like a mortgage) is…
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