Actuary reports Floyd County's sheriff retirement plans are about 72% and 52% funded; council hears annual overview

Elaine Bademont of Gelser Investment Management presented the annual actuarial and investment overview for the sheriff's retirement and benefit plans required under state law.

Bademont said the retirement plan covered merit officers and the sheriff, reported roughly $21 million in assets, and showed an asset allocation of about 67% equities, 29% fixed income and 3.8% cash. The actuary's assumed rate of return was stated as 6.25%; investment returns for 2024 were reported in the presentation at about +10% for the larger plan and roughly +8.46% for the smaller benefit plan. The covered payroll for participants was approximately $3.8 million.

According to the presentation, the main retirement plan had a funded ratio of about 72% (market value basis) with an unfunded liability near $7.9 million; the smaller benefit plan is approximately 52% funded on the same measure. The actuarially determined employer contribution for the year was presented as about $1.3 million, with the county paying about $1.34 million (slightly above the minimum).

Bademont reviewed plan details required by statute (including participant counts, vesting rules and contribution rates) and explained actuarial smoothing and the effect of a one-time line-of-duty disability event on the smaller benefit plan's funded status. Council members asked clarifying questions about the assumed return, funding targets (the presentation cited 80% as a common benchmark), and how investment gains are smoothed across years.

Presenters and council members agreed the county has generally funded the plans at or above the actuarially determined minimums over the reported period and asked staff to continue considering pension funding levels in future budgets. No action was required; the item was an annual informational presentation required by recent state reporting requirements.