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Actuary: St. Louis County retirement plan about 68% funded on 7.25% basis
Summary
The board’s actuary told trustees the plan was roughly 68% funded as of Jan. 1, 2026 on a 7.25% discount rate and showed how measurement differences (ABO vs. PBO, smoothing) can produce higher appearing funded ratios in alternate presentations.
The board’s actuarial adviser told trustees that, "as of 01/01/2026, the Saint Louis County plan is funded at about 68%," using a 7.25% interest assumption.
Paul, the actuary, walked the board through comparisons with other Missouri public plans and emphasized that published funded ratios reflect differing measurement bases. He said some plans report market-value or GASB measures while others report actuarial-smoothed figures, and those methodological choices account for much of the variation. "If you had used a 10% interest rate, your plan would be much better funded than it is currently," he said.
Board members asked for clarity on the disparity between the figure Paul provided and a separate chart that showed roughly an 81% funded level. Paul explained the distinction between accumulated benefit obligation (ABO) and projected benefit obligation (PBO), and how smoothing and timing differences can shift apparent funded status. He summarized that ABO-type measures exclude future projected pay and therefore can appear higher than PBO-based funded ratios.
Trustees agreed to bring the topic back in October or November after other plans publish 2026 numbers so the board can present more contemporaneous, apples-to-apples comparisons when responding to county council questions.
Why it matters: Pension funded status influences long-term contribution planning and any board discussion of cost-of-living adjustments (COLAs). The actuary’s 68% estimate, and the board’s commitment to revisit the analysis with updated market and actuarial inputs, sets the timetable for any near-term benefit policy talks.
