Actuary recommends glide-path toward 7% investment assumption; board adopts experience-study for next valuation

The board agreed to adopt an actuarial experience-study scenario during its September 2025 meeting after a detailed presentation by actuary Doug Wilson. The adopted approach will be reflected in the October 1, 2025 valuation.

Wilson explained the rationale for revisiting assumptions and recommended a glide path from the plan’s current 7.3% toward a 7.0% long-term investment return assumption rather than a single-step drop. He described an Option 8/8A scenario that blends salary-scale and mortality changes with an interim 7.25% assumption for the next valuation. "If you go all the way to 7% at the same time, you would be asking the city for an extra 3.2% of payroll," Wilson said while explaining the tradeoffs trustees face between realism and near-term budget impacts.

Wilson also highlighted a mortality update tied to broader public-sector tables that he said increases liabilities by roughly 1.6% of payroll; he proposed blending recently higher realized salary increases with prior assumptions rather than adopting the full recent experience, limiting the immediate budget shock. Trustees discussed smaller incremental steps (for example, 7.3% to 7.25% as an initial glide-path move) and the conversion of basis points to payroll impact (Wilson said about 10 basis points equates to roughly 1% of payroll in the example he gave).

After trustees discussed options with the actuary and their consultant, a motion to adopt the experience-study option (to be implemented in the 10/01/2025 valuation) was moved, seconded and passed by voice vote. The transcript records the voice approval but does not include individual roll-call tallies for that vote. The board directed the actuary to reflect the adopted assumptions in the upcoming valuation and report back to trustees.