Submitted By: Alicia Gaither
Presentation By: Janice Mitchell
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Department: Finance
FORMAL TITLE:
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Ordinance 2026-9 to adopt recommended changes to actuarial assumptions and methods for the City of Ocala General Employees' Pension Plan, as outlined in the 2014-2024 Experience Study
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
NA
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BACKGROUND:
The Board of Trustees commissioned an actuarial experience study to evaluate the demographic and economic assumptions used in the annual valuations of the General Employees' Pension Plan. The study reviewed plan experience for the period October 1, 2014 through September 30, 2024, and recommends updates to ensure the assumptions accurately reflect recent actuarial experience and comply with current actuarial standards of practice.
These changes aim to produce stable, predictable costs, ensuring that the plan's funding requirements are based on the most accurate, up-to-date data available.
FINDINGS AND CONCLUSIONS:
Adoption of these recommendations will result in adjustments to the required City contribution, unfunded actuarial accrued liability (UAAL), and the plan's funded ratio.
The following changes are recommended for adoption, effective with the October 1, 2025, actuarial valuation:
1. Entry Age Normal Cost Allocation
* Spread normal costs over the whole career of each member (from date of hire).
* Impact: Slight decrease in required City contribution
2. Investment Return Assumption
* Lower the assumed investment return from 6.60 to 6.50 percent per year
* Impact: Increase in required city contribution.
3. Salary Increase Assumption
* Increase assumed rates to better match observed experience.
* Impact: Increase in required City contribution.
4. Mortality Rates
* Adopt updated mortality tables as mandated by Florida law, reflecting recent changes in the Florida Retirement System.
* Impact: Decrease in required City contribution.
5. Retirement Rates
* Adju...
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