FINANCIAL ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
title
Review the Public Safety Pension Funds Actuarial Valuations
body
DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The purpose of this memorandum is to provide the Financial Advisory Board with an overview of the City's 2018 public safety pension actuarial valuations calculated by the City's actuarial consultant, Foster and Foster. The valuation report outlines the City's assumptions, plan assets, benefit projections, pension liabilities, and current funding levels. The reports also provides the required pension contributions based upon the methodologies and assumptions used by the City.
DISCUSSION:
Findings
Contribution Levels
The City's overall contribution level projections for 2019 are seeing an overall decrease of $41,508 or 0.26%. The Firefighter pension increased by $43,716 or 0.49% and the Police pension decreased by $85,224 or 1.20%.
City Contributions
1/1/2017
1/1/2018
Change
Firefighter Pension Fund
8,896,264
8,939,980
0.49%
Police Pension Fund
7,129,194
7,043,970
(1.20%)
TOTALS
16,025,458
15,983,950
(0.26%)
The 2018 valuation reports provide a positive change in course from the City's historical pension funding requirements. Over the last 15 years the City has seen total pension requirements increase from $5.2 million in 2005 to a projected $15.9 million in 2019, at an average annual increase of 8.7%, which has significantly outpaced inflation and growth of other City expenditures. A more focused look will show that from 2015 to 2018, pension requirements grew by $6.4 million, a 66.4% increase in a 3-year timeframe. The recent performance combined with City Council actions have helped to mitigate the unsustainable growth that has placed pressure on the City's recent annual budgets.
Funding Levels
CAFR Reporting
Overall, the City's pension funding practices have led the City to have the highest funding percentag...
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