Title
Revised Fiscal Year 2016 - 2019 Actuarial Valuation Reports for the City of Gainesville General Employees’ Retirement Plan (B)
Revised City of Gainesville General Employees’ Retirement Plan Actuarial Valuation Reports for Fiscal Years 2016 - 2019 to the Board of Trustees for the General Employees’ Retirement Plan for approval.
Explanation
The General Employees’ Retirement Plan (the Plan) Actuarial Valuation Reports present the financial position of the Plan. The actuarial valuation process evaluates the Plan’s assets and liabilities to calculate the Plan’s funded status, and determines required annual contributions to the Plan, expressed as a percentage of the expected upcoming pensionable payroll of active Plan members.
In 2018, the Florida Division of Retirement (the DoR) rejected the FY 2016 Actuarial Valuation for the City’s General Employees’ Retirement Plan due to the use of an actuarial payroll growth rate assumption that was higher than the Plan’s historical 10-year average payroll growth rate. Subsequently, the DoR also rejected the Plan’s FY 2017 - 2019 Actuarial Valuations for the same reason. The City’s cost in additional employer pension contributions to reduce the payroll growth rate assumptions in the Plan’s FY 2016 - 2019 Actuarial Valuations as required by the DoR was estimated by the Plans’ actuary to be $8,499,340.
Attorney Robert Klausner worked with City staff and Plan actuaries to develop a City Proposal to gradually reduce actuarial payroll growth rate assumptions over several years. Despite the submission of supporting material, and numerous discussions, the DoR ultimately refused all City proposals, and notified the City of Final Agency Action in November 2019. In December 2019, the City petitioned the Florida Department of Management Services, for a formal administrative hearing concerning the DoR’s non-acceptance of FY 2016 - 2019 Actuarial Valuations. The Department of Management Services submitted the City’s petiti...
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