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Actuaries: police pension funded ratio rises to ~82%; recommended contribution down slightly for FY27
Summary
Actuaries reported the police pension funded ratio increased from 78% to 82% (smoothed), driven by asset gains and turnover; they recommended a modest reduction in the actuarially determined contribution as a percent of payroll for FY27, while noting smoothing and amortization rules that would spread gains/losses over years.
Actuaries Tom Bissetti and Jordan McClain presented the police employees' pension valuation as of July 1, 2025, explaining how the plan's funded ratio and the recommended contribution are calculated. "From our last valuation date to this valuation date, the funded status of the plan increased from 78% to 82%," the actuaries reported during their presentation.
The improvement reflected a strong market‑value return in FY25 (reported as roughly 11.5% on market value and 8.3% on the smoothed actuarial value) and liability gains resulting from turnover and a lower cost of recent retiree COLAs. As a result, the actuaries recommended an actuarially determined contribution for FY27 at about 41.1% of payroll — roughly 2 percentage points lower than the prior year on a percentage basis, although the dollar amount is influenced by payroll growth and new hires.
The presenters explained that the plan smooths asset gains and losses over five years and amortizes unfunded liability changes over a 22‑year schedule. That accounting means a large one‑year market correction would be gradually recognized and could increase contribution requirements over the amortization period.
Council members asked whether a younger age distribution or recent hiring (eight new officers) creates near‑term risk. The actuaries said they monitor age and service distributions and do not see an immediate funding concern, although they flagged the need to watch retirements coming due in the next few years.
Ending: The actuaries said the full valuation report (including estimated dollar contribution) will be provided to staff; council members asked staff to return any additional dollar‑based questions during budget deliberations.
