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Actuary: Edgewater Fire pension remains overfunded; board approves valuation and 7% return assumption
Summary
The board approved the actuary's valuation, which shows the plan is over 100% funded after strong investment returns; trustees adopted a 7% net investment return assumption and scheduled an updated experience study for September.
At the June 9 Edgewater Firefighters Pension Board meeting, the plan actuary presented the annual valuation and recommended the board adopt the existing 7% net‑of‑fees investment return assumption for the coming year and long term. The actuary reported a 29% net return for the fiscal year ending 09/30/2024 and a four‑year smoothed return of more than 10%, contributing to an overfunded status.
"The year ending was over 29% net of fees," the actuary said, adding that the plan’s four‑year smoothing produced an outsized result and that the plan still retains margin to absorb future downside risks.
Board discussion noted the city’s normal cost requirement rounded to about 20% of payroll (the actuary said the city’s required contribution edged from 19.9% to about 19.6%). After discussion, the board moved to approve the valuation report as presented and voted to adopt the 7% investment return assumption.
The actuary also recommended updating the experience study (including mortality assumptions) and requested to return in September to present recommendations for the 2025 valuation. The board motioned and approved the actuary’s attendance at the September meeting and the update of the experience study.
The board’s actions at the meeting were procedural approvals: the valuation report was approved, the 7% return assumption was declared for the next year, and a motion to update the experience study and have the actuary present in September was approved.
