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Pension trustees approve valuation, keep declared return at 7.6% as unfunded liability rises to about $8.3 million
Summary
Trustees of the New Smyrna Beach Fire Department Pension Fund approved the 10/01/2024 actuarial valuation, kept the plan's declared rate of return at 7.6% and noted an unfunded actuarial accrued liability near $8.3 million, requiring an annual city payment to amortize the balance.
Trustees at the New Smyrna Beach Fire Department Pension Fund voted Thursday to approve the fund's actuarial valuation and to maintain the plan's disclosed rate of return at 7.6% for the coming year.
The valuation, presented by Patrick of Foster & Foster, showed the market value of plan assets at about $28.0 million and reported a smoothed four-year average return of roughly 6.28%. Patrick told trustees the plan's unfunded actuarial accrued liability had risen to approximately $8.3 million and the funded ratio fell from about 78.8% to 77.5%.
The actuarial presentation explained two recent methodological changes: resetting the actuarial value of assets to market value for a fresh start and moving from a four-year to a five-year smoothing period for gains and losses. Patrick said the valuation also reduced the investment return assumption slightly as part of a multi-year phase toward a lower long-term assumption.
Why it matters: the changes and experience combined mean the city must make a larger annual amortization payment to close the funding gap. Patrick said the approved amortization payment is roughly $912,000 per year, which the consultant represented as coming from the city after accounting for members' 10% contributions and state aid.
Trustees asked for clarification about how the additional payment is calculated. Patrick explained the payment is expressed as a percentage of payroll (about 27.4% of payroll this year) to cover the amortization alongside normal cost contributions.
The board moved and seconded a motion to approve the actuarial valuation and to transmit the valuation for any required state filings; the motion passed on a voice vote. The trustees also voted to keep the plan's disclosed rate of return at 7.6% and discussed phasing it to 7.5% next year, as planned.
The meeting record shows the board approved routine consent items and expense reports later in the session. The summary plan description (SPD) remains on the agenda for a future meeting after staff circulates an updated draft for review.
The board scheduled its next regular quarterly meeting for April 10, 2025, at 4 p.m.
