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Actuary: Atlantic Beach pension plans mostly well funded but subject to small contribution increases
Summary
An actuary told trustees May 28 the general employee pension shows a smoothed funded ratio of 92.9% (market-value above 100%), while the police plan’s smoothed ratio fell into the high-70s after mortality and salary changes; boards accepted the valuation reports and kept a 6.25% return assumption.
Nicholas, the boards’ actuary, presented the 10/01/2025 valuation reports to trustees on May 28 and recommended the boards accept the reports and continue the current long-term return assumption of 6.25%.
For the General Employees plan Nicholas said the smoothed funded ratio is 92.9% (unchanged year-over-year on the actuarial basis used). He said a mandatory change to the mortality assumption (to mirror the state FRS table) and an actuarial experience loss modestly raised the contribution requirement; market-value metrics were stronger (Nicholas said market-value funding would be above 100% on the same date). Nicholas described the mechanics: asset-smoothing recognized part of 2025 gains now and will recognize additional gains next year, and he flagged a $120,000 finance allocation line that increased from prior-year levels and is factored into contribution calculations.
On the Police Officers plan Nicholas reported a larger year-over-year funding effect: higher salary increases and two additional active participants drove up projected accruals, producing a smoothed funded ratio in the high 70s under the new assumptions (the market-value ratio was reported as higher, in the mid-80s). He said components of the increase included a net actuarial loss (driven by salary experience) and the same mortality-table change used in the general valuation.
Trustees discussed timing of payments, a prior overpayment case that remains under administrative review, and whether prepayments and state-payment timing had affected 2025 results. Trustees moved and voted to accept and file the actuarial valuation reports; the motion passed. Nicholas said he expects the funded ratios to recover toward 100% over the next several years as smoothed gains are recognized provided markets remain favorable.
Outcome: Trustees accepted and filed the valuation reports, retained the 6.25% return assumption, and asked staff for follow-up detail on the finance allocation and the outstanding overpayment issue.
