Clearwater pension trustees accept Jan. 1, 2026 actuarial valuation; required contribution rises

Pension trustees on June 15 accepted the City of Clearwater employee pension plan’s Jan. 1, 2026 actuarial valuation, which shows the plan remains well funded but faces near‑term contribution pressure.

Pete Strong, the plan actuary, reported the plan’s market value of assets at roughly $1.44 billion and an actuarial funded ratio above 100% (market‑value funding ratio ~111.7%). Despite that overall strength, the plan experienced an adverse actuarial experience of about $39 million in 2025—driven mainly by larger‑than‑assumed salary increases (an average of ~11.56% vs. an expected 5.74%) particularly for police and fire classifications, and mortality experience differences—which increased the plan’s required contribution to approximately $12.35 million for the coming year.

Strong explained the plan also has a substantial credit balance (reported as roughly $44.2 million) that the city may use to offset required contributions. Trustees discussed funding policy options: the actuarial report indicates the city remains required to fund at least 7% of covered payroll, but the city may use available credits to smooth the near‑term budgetary impact.

Trustees voted to accept the valuation; separate trustee actions that day also approved replacing a small‑cap growth manager (RiverBridge) and hiring a recommended replacement (Dreehouse/Dreas Capital Management, per materials), motions the trustees approved unanimously.

What this means: the plan’s funded status is strong relative to many public plans, but the city faces higher required contributions this year because of unanticipated salary and mortality experience; council and staff will discuss funding options and the budget implications.