Rockledge pension board approves actuarial valuation, affirms 7.25% expected return

The Rockledge Fire Employees’ Retirement Board on Jan. 30 approved the annual actuarial valuation for the Fire Employees’ Retirement Plan and affirmed an expected long-term investment return of 7.25%, officials said.

Paula Freiman, the plan actuary from GRS, reviewed the valuation for the year ending Oct. 1, 2025, which included GASB 67/68 disclosure information. The actuary reported a minimum funding requirement of $471,996 for the Oct. 1, 2026 fiscal year, up from $456,575 for the current year, and said state premium tax receipts were estimated at $312,663. "The plan is funded at 82.26% up from 81.36%," the actuary reported, and noted the assumed investment rate of return used in the valuation is 7.25% (down from 7.35%).

The actuary also highlighted recent experience: payroll-related pay increases came in at 12.2%, versus the 5.5% salary increase assumption used in prior calculations, and the mortality table assumption was changed in accordance with state requirements. Freiman said the actuarial firm will provide a cost estimate to prepare a formal experience study and will supply an ADA-compliant version of the report.

Member Mike McCaleb moved to approve the annual actuarial valuation as of Oct. 1, 2025 "as presented." Member Desiree Babbs seconded the motion, which carried unanimously, according to meeting minutes. Later, after discussion of the declared rate, Member McCaleb moved to accept 7.25% as the expected rate of return for the valuation; Member Thomas “Pat” O’Neill seconded and the motion carried unanimously. The Plan Administrator was directed to provide the declared rate to the Division of Retirement.

Why it matters: the declared rate and valuation determine the city’s required annual contribution and affect the plan’s funded-ratio calculations that help set future employer and member funding needs.

The board scheduled its next regular meeting for May 15 at 9:00 a.m. The meeting adjourned at 9:47 a.m.