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Actuary: Greenville firefighters pension 44% funded; one-time infusion could cut amortization from 28 to 12 years
Summary
An actuary told the Greenville City Council the Firefighters Retirement Fund had a 44% funded ratio as of 12/31/2024, an unfunded liability of about $23.3 million, and that a $10 million one-time contribution could raise funded status above 65% and shorten the amortization period substantially.
David Sawyer, the actuary with Affinity who presented to the council, said the city's firefighters plan is a defined-benefit pension that pays lifetime monthly benefits and that his valuation on 12/31/2024 found an actuarial value of assets near $18.5 million and an actuarial accrued liability near $41.9 million.
"So you had about $18,500,000," Sawyer said when describing the actuarial value of assets, and he added that "the accrued liability ... was like 41.8, almost $41,900,000," producing an unfunded liability of about $23.3 million and a funded ratio of roughly 44%. Sawyer explained that the plan's amortization period was about 28 years on the last valuation and that an amortization period above 30 years would trigger a statutorily required remedy process between the city and the pension board.
Sawyer walked the council through scenarios showing how funding choices change the projected path. He said a $10 million lump-sum injection, modeled as if deposited on Jan. 1, 2027, would lift the funded ratio above about 65% and shorten the time-to-100%-funded to roughly 12 years. By contrast, recurring but smaller contribution increases would take longer to achieve the same effect; one model tied to the other municipal plan's actuarial-determined contribution would shorten the period to about 20 years.
Council members pressed Sawyer about whether demographic changes or improved market returns could "grow us out" of the problem. Sawyer said demographics and declining payroll relative to retiree liabilities have been major drivers, and that lower assumed investment returns (the valuation assumed 7.25%) plus increased longevity make obligations larger than they were decades ago. He urged caution about relying on market returns to solve long-term structural shortfalls.
The presentation concluded with staff and board follow-up options; Sawyer said the board and city must negotiate if the amortization period exceeds 30 years. No formal council action on benefits or contributions was taken at the meeting.
