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Bel Air pensions show strong funding: civilian plan 86.8% funded, sworn plan 102.4%
Summary
The town’s actuary reported investment returns that improved funded ratios: the civilian pension was 86.8% funded as of June 30, 2025, while the sworn plan exceeded full funding at 102.4%; trustees will complete experience studies and consider long‑term assumptions and COLA options.
Town staff briefed the board on actuarial results for the town’s two pension plans for the year ending June 30, 2025, reporting strong investment returns and healthy funded ratios.
The actuary reported a market value return of 9.8% and an actuarial return of 8.1% for the civilian plan; the plan’s funded ratio stood at 86.8% as of June 30, 2025. Staff said the actuarial value uses five‑year smoothing. “That is really spectacular,” one commissioner said in response.
For the sworn (police) plan, market value return was 9.6% and the actuarial return 7.8%; the sworn plan’s funded ratio rose to 102.4%, putting it above fully funded. Staff and trustees are conducting full experience studies (about every five years) to review assumptions — including salary growth, investment return, and mortality — and will report results to the trustees in May.
Staff cautioned that reducing assumed investment returns increases plan costs and that adding a cost‑of‑living adjustment (COLA) would be expensive; trustees said they will study the costs and implications before changing contributions or benefits.
No immediate changes to employee contribution rates were proposed; trustees earlier decided not to change sworn plan employee contributions while the plan is more than fully funded.
