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Valuations show lower contribution rates; Uniformed plan still less funded and DROP enhancements extended
Summary
Actuarial valuations as of July 1, 2025, show the Non‑Uniformed ADC falling to 12.4% of payroll and the Uniformed ADC to 28.1% for FY2027; the Uniformed Plan remains around 90% on a market basis and committee reviewed recent DROP amendments extending enhancements to non‑firefighters.
Jim Ritchie of Bolton reviewed actuarial valuations for both plans as of July 1, 2025, and presented recommended contributions for the fiscal year ending June 30, 2027. For the Non‑Uniformed Employees Plan, the Actuarially Determined Contribution (ADC) decreased from 13.5% in FY2026 to 12.4% of payroll for FY2027. On a market basis the Non‑Uniformed plan was slightly above 100% funded (total liability $637.7 million; market value of assets $640 million); actuarial‑value assets were lower due to smoothing and the plan has $29.0 million in net deferred investment gains to be recognized over time.
For the Uniformed Employees Plan, the ADC decreased from 29.8% to 28.1% of payroll for FY2027. The Uniformed Plan remained lower on a funded basis—about 90% on a market basis—with a total liability of $575.9 million and market assets of $523 million. Ritchie noted investment returns and other experience (payroll and COLA below assumptions) produced actuarial gains; the Uniformed Plan also recognized $23.0 million in net deferred gains as of July 1, 2025.
The committee reviewed recent plan amendments that extend previously granted DROP enhancements for firefighters to non‑firefighters. The changes increase the maximum DROP exit threshold from 28 to 31 years of service, increase the maximum DROP entry threshold from 27 to 30 years, and redirect 5% of payroll employee contributions during DROP participation into members’ DROP accounts while leaving the remaining 4% going to the trust. The committee also discussed volunteer staffing needs for the Disability Review Board; Erin White must serve on the appeals board and therefore cannot serve on the initial review panel.
The chair noted there were no public comments; the next regular meeting is scheduled for March 10, 2026, at Winchester Hall. With no further business, the committee adjourned at 2:42 PM.
