11-25-2025 Council Regular Meeting [56:24-61:24]

The plan was at 70% funded so we had a lot of work to do. The next key statistic is that actuarial assumption rate of six and a quarter percent there's been times when that actuarial assumption rate was higher. But I think based on longevity that we now know so you think about calculate a retiree benefit based on not only their age today or the age they retire but how long are they expected to live. And many times if they're married how long is their spouse expected to live if that's a survivor benefit. Six and a quarter means we have to meet at least six and a quarter percent from a rate of return. That's our charge with the investments that we have. The return as of the end of 2024 for that full calendar year remember this evaluation report is at 1 1 2025 so it's a look back to 2024. Our performance came in at 14.41% and when they do their actuarial smoothing that's at 8% so we are surviving that six and a quarter expectation. The plan assets at the end of 2024 was a little over 10 not quite 10 and a half million dollars. I will tell you that today based on not just county contributions to fund it merit deputies also have a contribution that they provide and also market performance the plans a little over 12 million dollars today. Market's been really good this year if any of you have investments you understand that. And then the next section is just that what kind of contributions came in during that time frame and you can see what the county contribution was last year 2024. We also state requires all service of process fees be deposited into the county sheriff pension plan and you can see what those were in 2024 that's a moving target that's never guaranteed. And then the employee contributions last year and they are contributing one and a half percent. So you can see what the total incoming funds were irregardless of assets or market performance. Active participants for last year was at 27 for 2025 they projected that at 26 that's also again a moving target based on retirements hires things like that. Currently we have 13 retirees receiving benefits and three beneficiaries and that may mean that a retiree has passed away and had a survivor benefit and their spouse is now collecting either a 100% 50% or whatever that choice was. And so you can see what the outflow was for 2024 to those retirees as well as what the outflow is expected to be this year. We don't know until our final payment in December. But the whole object here is many counties have more going out the door than they have coming in the door and that all contributes to the health or negative health of the plan. So Lawrence County is in a good position both from got more money coming in from a cash flow perspective performance is good and they continue to make headway with that funding percentage. Ideally we have some plans that are 100% or more than 100% funded and that's all just cushioned for when we have a negative market year which can happen at any time. All right and then the next page is just that there is a side plan it's separate has a separate plan document. It's also provided under state statute and this is the benefit plan which doesn't pay any benefits to retirees it's basically to survivors. We pay annual insurance premiums from this plan for those life insurance life insurance that covers those merit employees and or a disability payment if someone becomes disabled while in active duty. Same deal basic plan statistics same plan administrator same employer we invest those assets within our trust department in McCready does the annual valuation. That funded percentage is a hundred percent so it's it's right where you want it to be. Actual assumption rate is the same performances the same because quite frankly they're both invested exactly the same and the exact same assets the same mix of stocks to bonds. Plan assets at the end of 2024 was a little not quite $640,000 and when I look tonight before I came here is about 718 so again that's market performance.