Pension Plans go through a thorough evaluation every two years. He stated that
they are in the midst of that now and what that valuation does is look at financial and
demographic information on the first day of the odd number year. He stated that is
January 1, 2025. The next valuation will be January 1, 2027. He stated what this
does is gives them a very good snapshot financially and demographically of the
Plans. He stated that they can look backward and they can project forward. He
stated that it is just a snapshot because they realize just how quickly things will
change. He stated that the Actuary complimented the city because they were in the
Finance Department and they were very very quick in getting information to them
this year so they got this Report out months quicker than they ever had in the past.
He stated that they have a little bit more time to chew over it. He stated that his wife
also works in this business and it is one of her major complaints that they don't get
information in a timely manner. He stated kudos to the Finance Department for really
stepping it up and getting that information out there because this is by far the
earliest they ever gotten this information. He stated just to fill them in on the high
points and the importance of this. He stated part of this information projects what
our pension contribution is going to be over the next two years. He stated that they
have that information now, it may get tweaked a little bit, by September the
administration has to bring forth to Council information as to what that MMO is going
to be for '26 and '27. He stated that it might be one or two changes between now
and then. There are things that the aggregated board has to work on, but they have
the information out and they just need to think about it. He stated one of the other
information they get is to look at the value of our assets. the value of our liabilities
and how well funded we are. He stated that he and Cynthia and Mike, but in terms of
elected officials being the old timers here, remember when the Water Lease deal was
done. He stated that impatience for that was because the Plans were so
underfunded. He stated for instance, in 2013, the Police Fund was about 40 percent
funded. He stated that you are in serious distress if your plan is only 40 percent
funded. He stated between the infusion of funds from the Lease and astute
investment decisions and the magic of the stock market, that Plan on January 1,
2025 was almost 90 percent funded. He stated that is pretty healthy. He stated that
one of the things that they learned in this business is that things can change
tomorrow. He stated by and large 2024 and 2023, the market performed pretty well.
He stated that since January 21st, he thinks it is fair to say that the market, both the
stock market and the bond market are reacting to the chaos and the uncertainty in
unhealthy ways for the Pension Funds. He stated that the Stock Market is down, the
Bond Funds yields are going up. They are under a little bit a pressure now and
hopefully things will smooth out. He stated as he said the next valuation is January
1, 2027. He stated so whatever chaos the got now, they got some time to work
through it and get back the healthy returns. He stated that the Fire Fund was 38
percent funded in 2013 and is now 91.6 percent funded as of January 1, 2025. He
stated that once again the volatility of the market and the chaos in the market has
negatively affected us at the beginning of the year, but they have good Actuaries and
have good investment advisors and the board is inherently a conservative group. He
stated that they are going to make their way through this as best they can to protect
the assets held in trust for the Pensioner/Pensioneers and also make sure the city's
