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Rockledge trustees approve actuarial valuation and set expected return at 7.25%
Summary
Trustees approved the annual actuarial valuation as of Oct. 1, 2025, and accepted a declared investment rate of return of 7.25%. The valuation shows a funded ratio of 85.96% and a minimum funding requirement of $967,731 for the Oct. 1, 2026 fiscal year.
The Rockledge General Employees’ Retirement Board on Jan. 30 approved the annual actuarial valuation as of Oct. 1, 2025, and declared a 7.25% assumed rate of return for the plan.
The valuation, presented by actuary Paula Freiman of GRS, shows a minimum funding requirement of $967,731 for the fiscal year beginning Oct. 1, 2026, and places the plan’s funded ratio at 85.96%, down from 90.63% the prior year. "The minimum funding requirement for the October 1, 2026 fiscal year is $967,731," the actuarial report states, and notes the assumed investment rate of return was set at 7.25% (down from 7.35%). The report also shows a market-value investment return of $1,425,327 (13.15% market value) and an actuarial value return of 9.95%. Pay increases in the valuation period averaged 17.1%, compared with the 5.2% salary-increase assumption in the plan's prior assumptions.
Why it matters: the funded ratio and funding requirement determine how much the city and plan sponsors must contribute to meet promised benefits. Trustees said the drop in the funded ratio and the variance between actual pay increases and payroll assumptions are items the board will monitor; the actuary said an experience study cost estimate will be provided at an upcoming meeting and will inform any necessary assumption changes.
Trustee Elon Poole moved to approve the actuarial valuation as presented; Trustee John Cooper seconded the motion and it carried unanimously. Separately, investment consultant Tyler Grumbles of Mariner told the board the assumed 7.25% rate is "manageable and acceptable." Trustee Kimberly Peyton moved to declare and accept a 7.25% expected rate of return for this valuation; Trustee Poole seconded and the motion carried unanimously. Plan Administrator Julie Enright will provide the declared rate to the Division of Retirement.
The valuation also noted that the mortality table assumption was updated in accordance with state requirements and that GRS will provide an ADA-compliant copy of the report. The board did not amend benefits or adopt any new funding policy at this meeting; the actuary will estimate the cost and scope of an experience study for future consideration.
The board scheduled its next quarterly meeting for May 15, 2026, at 10:00 a.m.
