Actuary: frozen fire and police plans largely in pay; smoothing of 2022 losses will raise recommended contributions

The board heard an actuarial review of the fire & police and supplemental pension systems that emphasized both plans are largely closed to new entrants and heavily weighted toward retirees.

The actuary explained key terms used in the valuation and said the plans have very few active participants ("We're down to 8 active participants," he said). He presented a market‑value reconciliation showing assets of roughly $195 million and liabilities near $282 million in the exhibits, yielding funded percentages shown in the materials (exhibits showed funded status in the high‑60s to mid‑70s depending on valuation method and date).

Because the plans use a five‑year smoothing of market gains and losses, the actuary said the large investment loss in 2022 has not been fully recognized and will raise the actuarially determined contribution (ADC) in the next several years. "You assume the unfunded liability is gonna amortize over 13 years," the actuary said, describing the current amortization schedule. The actuary added the recommended combined contribution for 2023 is about $8.4 million and projected it could level out near $11 million toward the end of the amortization period.

The presentation described the discount rate used in projections (7.25%) and noted the plan's long‑term structure means benefit payouts are predictable because most participants are already in pay status. Board members asked clarifying questions about mortality tables, smoothing timing and whether the smoothing increases the city's required contribution; the actuary confirmed those answers and offered to provide appendix details for separate plan schedules.

The meeting closed following Q&A.