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Trustees authorize up-to-$3,000 COLA study modeled on New Smyrna; hear market update
Summary
Trustees voted to authorize an actuarial study (not to exceed $3,000) to model a potential cost-of-living adjustment for future retirees similar to New Smyrna Beach’s plan; the board also received an investment performance update reporting plan market value rose to about $18.7M.
Trustees on June 9 voted to authorize an actuarial study to model a cost-of-living adjustment (COLA) for future retirees similar to the New Smyrna Beach structure, with the study budget capped at $3,000.
During trustees’ reports, a trustee asked how the board could assess the cost of mirroring the New Smyrna Beach COLA and whether the board could protect itself if city contribution requirements increased. The actuary said the work would begin with an actuarial study and recommended running longer-term cost projections after updated assumptions are in place. "I could run that and deliver it this summer," the actuary said, noting the study cost likely would not exceed $3,000.
The motion to authorize the COLA study was made, seconded and approved on a roll call. Trustees discussed limiting exposure by using the study as an educational tool and by running 20-year projections once new assumptions and the experience study are complete.
Investment update The board also received a market update from the investment advisor, who reported that the plan’s market value had increased from roughly $17.6 million (March 31 book) to about $18.7 million as of the meeting; fiscal-year-to-date returns were noted at roughly 5%, and the advisor reviewed performance across U.S. large-cap, small-cap, international equity, bond and real estate allocations.
Other actions Trustees approved the consent agenda and approved actual expenses for the fiscal year, with staff noting the actual expenses were about $96,000 compared with a prior proposed budget of $148,500. Staff also reminded trustees that Form 1 financial disclosures are due July 1 and said a contract restatement remains pending with the city attorney.
What happens next The actuary will perform the authorized COLA modeling study and present results to the trustees; the board also expects the actuary to deliver the experience study and future cost projections for trustees’ consideration.
