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Edgewater pension actuary: city contribution would rise to 53.1% of payroll under new assumptions
Summary
Foster and Foster presented a valuation showing the city’s required contribution at 46.9% now and a projected rise to 53.1% of payroll for 2027–28 driven mainly by recommended assumption changes; the board approved the valuation and adopted a 7.25% long‑term investment assumption.
The Edgewater Police Pension Board approved an actuarial valuation that shows the city’s required contribution rising from 46.9% of payroll to 53.1% for the 2027–28 planning year, Foster and Foster actuary Doug told trustees on June 8.
The valuation dated Oct. 1, 2025, reflects two principal drivers, Doug said: recommended changes to actuarial assumptions and a smaller component from unfavorable experience. "Most of this increase...about 3 quarters of it" is due to the assumption changes, and "1 quarter...is due to an unfavorable experience," he said. The report also shows the plan’s funded status moved from 80.9% a year ago to 80.2% with the new results.
Board members voted to accept the valuation as presented. The board also adopted a formal declaration of long‑term investment returns of 7.25% net of fees for planning and reporting purposes, a figure Doug said the board should use "for the next year, the next several years, and the long term thereafter." Trustees framed the action as part of routine annual "true up" work to align assumptions with recent experience.
Why it matters: an increase in the municipal contribution percentage can affect the city budget and future employer costs for police payroll; trustees said they plan to report the valuation results at the next council meeting and to monitor the budget implications. Doug noted that much depends on broader fiscal conditions and possible state tax changes, which he said are uncertain and depend on whether exemptions or replacement revenues are adopted.
The board recessed routine questions and unanimously approved a motion to accept the valuation. The actuarial firm will provide the formal documentation and the board said it will revisit the funding and budget details ahead of the next fiscal planning cycle.
