Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pensions topic
No spam. Unsubscribe anytime.
Investment adviser: sheriff's pension plan about 73.6% funded; assets roughly $14.86 million
Summary
Chris Calloway of Baird told the Morgan County Council the sheriff’s pension plan is about 73.6% funded and that plan assets have grown to about $14.86 million; the adviser outlined actuarial funding options and tradeoffs for accelerating unfunded-liability paydown.
At the meeting the sheriff presented the required annual pension report and introduced Chris Calloway of the investment firm Baird, who summarized plan performance and funding options.
Calloway reported the plan is approximately 73.6% funded on an actuarial basis and said the plan’s assets have grown from about $8.7 million to roughly $14.86 million. He explained that the plan’s actuary uses an assumed investment return of 6.5% while actual average returns have been closer to 8.5% in recent periods. Calloway described three actuarial funding approaches — amortizing the unfunded liability over 20, 15 or 10 years — and said increasing annual contributions to accelerate paydown reduces long-term interest costs but raises near-term budgetary needs.
Council members asked whether the county should change its current contribution level; Calloway said the actuary supplies recommended contribution levels for different amortization targets and that the council could choose an accelerated payment strategy if desired.
