LOSAP trust posts strong fiscal-year return, committee told

Patrick Wing, a presenter at the Length of Service Awards Program committee meeting, told members the LOSAP trust’s market value at the end of the fiscal year was a little north of $25 million and that fiscal-year 2026 produced a return of 15.1%.

"Fiscal year 26, a return of 15.1%, so more than 2 x the assumed rate of return," Wing said, noting the trust’s performance was about 30 basis points behind the policy index but well ahead of the actuary’s 6.5% assumption. He pointed to strong equity returns in Q2 and positive net investment change — just shy of $2 million — as drivers of the increase in market value.

Wing cautioned that contributions and cash flows matter to the funded ratio. Using numbers from the last actuarial valuation, he said a two-year contribution shortfall of roughly $800,000 (about 3% of market value) means the plan would need materially higher investment returns to maintain the funded ratio if contributions do not resume. He called that figure illustrative and said the committee will review recommended rebalancing and reimbursement timing at a future meeting.

The committee voted by voice to accept the Q2 performance report and recommendations during the same meeting; the presenter said staff will return in October with numbers and recommended rebalancing to support any county reimbursements.