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Jacksonville Beach pension boards adopt valuations; actuary warns lower return assumption will raise contributions
Summary
Trustees adopted actuarial valuation reports for the General, Police and Firefighters plans and set required rate-of-return disclosures; the actuary recommended a modest reduction in the long-term assumed investment return, which would increase liabilities and raise employer contribution needs.
Trustees for Jacksonville Beach's three pension funds voted to adopt actuarial valuation reports that become invoices to plan sponsors for the fiscal year beginning Oct. 1, 2025. The boards also set the annual required disclosure rate of return (General 7.5%, Police 7.5%, Firefighters 6.5%) as part of a legislature-mandated declaration exercise.
Brad, the actuary who presented the valuations and the five-year experience study, told trustees the plans had strong, investment-driven gains for the year and that funded ratios improved markedly. He said a modest change in the long-term assumed rate of return would materially increase liabilities. "We're recommending that you reduce the long-term assumed rate of return," he said, explaining that even a one-quarter- to one-half-point change increases the present value of future benefits and therefore raises required contributions.
The actuary walked trustees through sensitivity tables and scenario projections: because the plans use smoothing for asset recognition, strong trailing returns had not yet been fully recognized in the smoothed valuations and assumption changes would change contribution timing. Trustees discussed the budgetary impact; staff noted earlier presentation details showing funded-ratio increases and the role of higher-than-expected salary growth in driving contribution projections.
Votes to adopt the valuation reports and the required disclosure rates were moved, seconded and approved by the respective boards. Administrators said the adopted valuations will be used to produce employer invoices for the fiscal year beginning Oct. 1, 2025.
Why it matters: The assumed investment return is a core actuarial input; lowering that assumption increases measured liabilities and typically raises employer contribution requirements. The trustees approved the immediate step of adopting valuations and completing the statutorily required disclosure, while further assumption adoptions tied to future budget cycles will follow the boards' formal rule-making process.
What trustees may see next: higher contribution invoices reflecting the adopted valuations and additional actuarial reports at the next valuation cycle that may reflect any further assumption changes.
