Jacksonville Beach pension boards adopt 2025 valuations, hire Jones Walker counsel and shift mid‑cap holdings

Jacksonville Beach’s three pension boards met May 26 and approved a package of technical and governance actions that officials said aim to stabilize funding projections and strengthen operational support.

The boards heard an external audit from Purvis Gray & Company, whose audit director, Megan Camp, told trustees the firm issued an unmodified (clean) opinion on the City of Jacksonville Beach and the three pension plan financial statements. “There was an unmodified opinion on the financial statements,” Camp said, and she highlighted that actuarial assumptions and a major real‑estate trust holding are key sensitive estimates in the statements.

Why it matters: the audit frames the numbers the actuary uses to set employer invoices. Auditors reported the general employees plan’s fiduciary net position at about 83.38% of total pension liability and flagged actuarial estimates as a principal source of change year‑to‑year. Camp said total pension liability increased “by approximately $7 million this year,” driven by updated actuarial assumptions.

Actuarial valuations and assumed returns GRS Consulting presented the October 1, 2025 actuarial valuations for the general, police and firefighters’ systems and recommended funding and amortization measures. The actuary explained that recent experience changes and an adopted experience study reduced the assumed return for some valuations and that the plans carry recognized and unrecognized gains under the valuation method.

The boards voted to adopt the October 1, 2025 actuarial valuations and to use the same assumed rates for the short, intermediate and long term: 7.25% for the general and police systems and 6.5% for the firefighters’ system. Brad Armstrong of GRS summarized the funding outlook and told trustees the actuarial approach is intended to smooth contribution volatility; the board accepted the reports and state‑filing steps.

Contracts, procurement and the actuary RFP Trustees debated whether a written multi‑year agreement should be executed with GRS or whether the boards should run a public request‑for‑proposal (RFP). Staff noted the City of Jacksonville Beach adopted a procurement manual in December 2025 that would require an RFP when a continuous contract is expected to exceed $50,000; pension counsel advised the boards are separate legal entities and not strictly bound by the city policy.

After discussion the three boards approved one‑year engagement agreements with GRS Consulting to preserve continuity for the coming fiscal year and directed staff to proceed with an RFP to consider longer‑term arrangements before the next fiscal year.

Change in legal representation Following the departure of long‑time plan attorney Pedro Herrera from his prior firm, the boards heard presentations from Sugarman & Susskind (David Robinson) and from Herrera, who is joining Jones Walker LLP. Trustees asked about backup staffing, response times and fees. Herrera said he and his team will continue to focus on public‑pension work and offered transition staffing and a fee structure he described as flexible.

Each of the three boards voted to assign the existing engagement to Pedro Herrera at Jones Walker and to transfer the plans’ files to him for ongoing representation.

Investment review and manager change The investment consultant presented the half‑year performance review and noted a mid/small‑cap sleeve managed in a mutual fund vehicle by Eaton Vance had materially underperformed over the recent trailing periods and compressed the plan’s relative performance during the quarter. The consultant said recent market moves reversed some of the quarter’s weakness, but Eaton Vance’s trailing 12‑month performance had been poor.

After deliberation trustees voted to terminate the Eaton Vance small/mid‑cap mutual fund sleeve and place the proceeds into an actively managed Vanguard small/mid‑cap vehicle (or comparable passive share class), taking immediate action in the meeting to execute the transfer.

Administrative items, budgets and retirements Trustees approved the pension administrator’s proposed 2027 budgets for all three systems, authorized a revised proof‑of‑life verification process (removing the notary requirement and using a retiree signature plus witness, with periodic notary events encouraged), and approved a series of retirement and vesting applications presented at the meeting.

What’s next Staff will file the adopted actuarial valuations with the state, implement the Eaton Vance to Vanguard manager change through the custodian, launch the actuary RFP process to conclude before the next fiscal year, and execute the engagement letter with Jones Walker for legal services. The boards scheduled the next quarterly meeting for Aug. 25 and asked staff to bring follow‑up items and any materials needed for the RFP and investment manager onboarding.

Representative quotes “There was an unmodified opinion on the financial statements,” Purvis Gray audit director Megan Camp told trustees when presenting the audit. “We’re very comfortable with 7 and 1/4,” the actuary said when framing the valuation assumptions for the general and police plans. “I’ve dedicated my career to this,” Pedro Herrera told trustees as he described his public‑pension practice and transition to Jones Walker. “The last 12 months have been dreadful,” the investment consultant said describing the Eaton Vance sleeve’s recent results.

Ending The boards handled the remaining business — invoices, contract approvals and retirements — and adjourned after approving the meeting minutes and actions described above. The boards directed staff to return with RFP materials, engagement letters and manager onboarding details at upcoming meetings.