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Actuary says new state mortality table will raise Edgewater’s pension contribution by about $7,000 a year
Summary
Foster & Foster actuary Doug Wilson told the General Employees Pension Board that a Florida Retirement System–linked mortality assumption adopted by FRS on 07/01/2024 will modestly increase the city’s required annual pension contribution by roughly $7,000 when implemented with the next valuation affecting FY 2026–27.
Doug Wilson, actuary with Foster & Foster, told the General Employees Pension Board on Sept. 15 that a change in the Florida Retirement System’s mortality assumption will have a modest budgetary impact for Edgewater. "It's hardly anything," Wilson said when showing trustees that the change equates to approximately $7,000 a year in required contribution for the city.
Wilson said Florida law requires local public pension plans to mirror the mortality assumptions used by the Florida Retirement System (FRS) and adopt any change within two years. FRS adopted a new mortality table in its 07/01/2024 report, and Foster & Foster recommended linking Edgewater’s assumptions to that table in the next valuation cycle.
To illustrate the change, Wilson walked trustees through sample life‑expectancy figures from the new table. Under the new table, a healthy 65‑year‑old male retiree is expected to live about 21.34 more years, he said, and a 65‑year‑old female retiree’s expectancy was shown in the materials as roughly 23.48 more years. Wilson emphasized these are average assumptions and that small year‑to‑year differences do not predict individual outcomes.
Wilson explained the numeric effect: using the prior assumption, the city’s liability calculations produced the current contribution baseline; adopting the new FRS‑linked table raises the city’s required annual contribution by about $7,000. He noted the change is measured against current contributions (roughly $1,000,000 per year in example discussion) and characterized the increase as a small, ongoing addition rather than a material budget shock.
Trustees asked timing questions. Wilson confirmed the change will be implemented with the next valuation and will affect the city’s 2026–27 budgeting timeline. He also noted that the mortality assumption primarily affects projected retiree payouts over the life of the plan and that the plan’s unfunded liability amortization schedule will influence when the cost is fully reflected.
The board did not take formal action on the assumption during the meeting; Wilson said he will present updated valuation figures at the next scheduled report.
