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Lost Trust Fund board recommends 80% confidence funding level to council
Summary
The Lost Trust Fund Board told the council it will budget at an 80% actuarial confidence level for FY2025-26 after reviewing analyses from a new actuary; the board also recommended ordinance changes to departmental deductibles and continued monitoring of claims.
The Lost Trust Fund Board reported to the City Council on Aug. 26 that after reviewing a new actuarial analysis it unanimously recommended budgeting at an 80% funding-confidence level for fiscal year 2025-26.
Austin Brooker, vice chair of the Lost Trust Fund Board, summarized the board's deliberations after the city switched actuaries in 2023 from Aon to Oliver Wyman. He said Oliver Wyman's scale showed that maintaining the former 85% confidence level would have required roughly an additional $5 million this year; the board adopted an 80% level as a compromise to strengthen reserves without an immediate large allocation.
The board also discussed and recommended changes to the trust language and city ordinance regarding departmental claim deductibles; those recommendations were subsequently approved by council earlier in the process. Board members reviewed the actuarial study presented by Oliver Wyman and emphasized monitoring assumptions and emerging risks.
Council thanked the board for its work; the board indicated it will return with ongoing recommendations as needed.
