FPUA retirement fund valuation falls to about 80%; assumed return below target, actuary recommends adjustments

The Fort Pierce Utilities Authority heard its annual retirement system actuarial presentation on July 7, which showed the pension plan's funded ratio declined to about 79.7% (rounded to 80%) on the 9/30/2025 valuation and that the plan's recognized investment return was 5.75%, below the plan's assumed 7.25% rate of return.

Kate Stevens, introduced by staff as director of gas and electric systems and the presenter for the retirement report, said the system is a defined-benefit plan established under chapter 13 of the city charter and described recent actuarial assumption changes — principally mortality assumptions — that reduced the funded ratio. "We were 80% funded based off our valuation of assets," Stevens said, and she noted the actuarial recognized return of 5.75% was less than the 7.25% target. Stevens explained the plan uses a four-year smoothing method to moderate year-to-year market swings and reported that the market value at one recent report date rose to about $279,000,000 (an earlier funding value cited as $263,000,000 at 9/30/2025).

Stevens also described contribution changes reflected in the valuation, saying employer contributions rose by a reported 0.22 (points). She said no benefit changes were adopted in the 2025 report and reminded the board that cost-of-living adjustments (COLA) cannot be provided under section 13-43 until the retirement system's funding gains exceed the statutory threshold described in the report.

Board members asked how current returns compared to previous years and about the impact of 2022 market losses and other factors; Stevens noted smoothing and multi-year market performance affect the recognized return and that past market gains/ losses influence the four-year average used by the actuary.

The presentation was for information; no board action on plan changes or COLA was taken at the meeting. Stevens directed trustees to the full actuarial report posted on fua.com for additional details.