HomeMy WebLinkAboutR-2025-142 LAGERS Changes CommunicationsRESOLUTION NO. R-2026-142
A RESOLUTION PROVIDING FOR PUBLIC INSPECTION OF COST INFORMATION
REGARDING A PROPOSED CHANGE IN RETIREMENT BENEFITS UNDER THE
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM.
WHEREAS, the Board of Aldermen of the City of Riverside, Missouri, has received cost
information from the Missouri Local Government Employees Retirement System ("LAGERS")
concerning the proposed inclusion of the Public Safety employee group in the City's LAGERS
retirement plan;
NOW, THEREFORE, BE IT RESOLVED by the Board of Aldermen of the City of
Riverside, Missouri, as follows:
THAT the Board of Aldermen hereby acknowledges receipt of the cost information
concerning the proposed inclusion of the Public Safety employee group in the City's LAGERS
retirement plan. The Board of Aldermen hereby directs that the cost statement be filed in the office
of the City Clerk for public inspection for a period of not less than forty-five (45) calendar days
from the date of this Resolution, and further directs that such statement be filed with the Joint
Committee on Public Employee Retirement as required by law. Interested parties may view the
cost information at Riverside City Hall during regular business hours. No final action to adopt the
proposed change in benefits shall be taken until the conclusion of the forty-five (45) day public
inspection period
FURTHER THAT the Mayor, the City Administrator, and other appropriate City officials
are hereby authorized to take any and all actions as may be deemed necessary or convenient to
carry out and comply with the intent of this Resolution and to execute and deliver for and on behalf
of the City all certificates, instruments, agreements, and other documents, as may be necessary or
convenient to perform all matters herein authorized.
PASSED AND ADOPTED by.the Board of Aldermen of the City of Riverside, Missouri, the
2°d day of September, .f. 5i-. f
Mayor"Kathleen L. Rose
ATTEST: 3 -A ..
A
Sarah Wagner, Dep Ctg�'
GRS
June 30, 2025 E-Mail
Ms. Mya Bemskoetter
Employer Reporting Analyst
Missouri Local Government
Employees Retirement System
P.O. Box 1665
Jefferson City, Missouri 65102
Re: City of Riverside Public Safety Department Split (#5975)
Dear Mya:
800521.0498 1 P.248.799.9000 1 wvvw.grsconsulting.com
As you requested, we have performed actuarial valuations as of February 28, 2025 for the active and
deferred members reported as Public Safety members and the remaining active and deferred members of
the General department of the City of Riverside.
Section A — Summary of Employer Contribution Rates as a Percent of Payroll
Present Plan_
Alternate Plan
Current
Remaining General
New Public Safety
General
Subdepartments
Subdepartment
Normal Cost Rate
11.20%
11.80000
11.50%
Casualty Rate
0.50
0.50
0.50
Prior Service Cost Rate 1
4.80
5.50
4_00
Total Employer Contribution Rate
16.50%
17.80%
16.00%
Change in Employer Contribution Rate
as a percent of payroll 1.30% (0.50)%
Increase in Actuarial Accrued Liability 1 $0 $146,700
1 The increase in the actuarial accrued liability due to adoption of the alternate plan was amortized
over a 20 year period to compute the increase in the Prior Service Cost Rate.
The Current General and Remaining General Subdepartments results shown above are based upon General
benefit provisions (age 60 and 5 years unreduced retirement eligibility; age 55 and 5 years reduced
retirement eligibility; deferred age equal to 60). The New Public Safety Subdepartment results shown above
are based upon Public Safety benefit provisions (age 55 and 5 years unreduced retirement eligibility; age 50
and 5 years reduced retirement eligibility; deferred age equal to 55).
Ms. Mya Bernskoetter
June 30, 2025 E-Mail
Page 2
Section B — Additional Details
Present Plan
Alternate Plan
Alternate Plan
General
General
PublicSafety
Benefrt Provisions
Benefit Provisions
Benefit Provisions
Remaining General
New Public Safety
New Public Safety
Current General
Subde artments
Subde artment
Subde artment
Member Stati stics
Number Active
35
25 10
10
Payroll
$2,963,793
$2,311,934 $651,859
$651,859
Average Pay
84,680
92,477 65,186
65,186
Accumulated Contributions (Actives)
990
990 -
-
Number Deferred
23
23 0
0
Actuarial Accrued Liabilities (AAL)
Active AAL
$6,290,958
$5,512,859 $778,099
$924,799
Deferred AAL
1 190 051
1,190,051 0
0
$7,481,009
Total AAL
$6,702,910 $778,099
$924,799
IncreaseAAL- Public Safety Provisions and Assumptions
$146,700
Actuarial Value Ass
Members Deposit Fund (MDF)
$990
$990 $0
$0
Employer Accumulation Fund (EAF)
6,321,455
5,663,858 657,597
657,597
Total Assets
$6,322,445
$5,664,848 $657,597
$657,597
Funded Ratio
84.5%
84.5% 84.5%
71.1%
Unfunded Actuarial Accrued Liability (UAAL)
$1,158,564
$1,038,062 $120,502
$267,202
EmployerComouted Contribution
Normal Cost Rate
11.20%
i : 8C, 9.20%
11.50%
Casualty Rate
0.50
0.50 0.50
0.50
Prior Service Cost Rate
4.80
5L.4 2.30
4M
Total Employer Contribution Rate
16.50%
17.80% 12.00%
16.00%
Estimated First Year Em to erContributionDollars
$489,026
$411524
$78,223
$104,297
1 Assets allocated to each division are estimated.
The Present Plan results (Current General) shown above are based upon General benefit provisions (age 60
and 5 years unreduced retirement eligibility; age 55 and 5 years reduced retirement eligibility; deferred age
equal to 60) and General assumptions.
Please note that the results for the current General department are the same as those reported for the
General department in the February 28, 2025 annual actuarial valuation report for the City of Riverside.
The Alternate Plan results shown in the middle two columns are based upon General benefit provisions and
assumptions but with the General department separated into the requested subdepartments. Adding the
results for the requested subdepartments using General benefit provisions and assumptions may not match
the current General results due to rounding.
The Alternate Plan results shown in the right most column for the New Public Safety Subdepartment are
based upon Public Safety benefit provisions (age 55 and 5 years unreduced retirement eligibility; age 50
and 5 years reduced retirement eligibility; deferred age equal to 55) and Public Safety assumptions.
For members proposed to be covered in the New Public Safety subdepartment, the actuarial accrued
liability increased by $146,700 and is amortized over 20 years based on the funding policy for benefit
changes.
'G RS
Ms. Mya Bernskoetter
June 30, 2025 E-Mail
Page 3
Per LAGERS staff, employer assets were split between the remaining General and new Public Safety
subdepartments so that each subdepartment's funded percent would be the same as the current General
department based upon the General benefit provisions and assumptions as of February 28, 2025. This
would require an accounting transfer based on market value, as of February 28, 2025, of $616,998 of EAF
assets to the Public Safety department with the remainder staying in the General department. Depending
upon actual experience after the valuation date as of February 28, 2025 (e.g., members changing status
after the valuation date), an additional asset transfer may be necessary as of the first annual valuation date
after the election is made to add the new subdepartment.
Section C - Projections
Below are projections needed to comply with Missouri state disclosure requirements (Section 105.665 of
the RSMo) regarding the adoption of LAGERS benefits by a political subdivision.
Remaining General Subdepartments
Under the Present and Alternate Plans, members are valued using General benefit provisions and
assumptions.
Present Plan
_
Estimated Employer
_
Estimated
Estimated
Contribution
Difference
Valuation
Projected
Asa%of
Annual
Between
Date
Payroll
Pryroll
Dollars
AALandAVA
2025
$ 2,311,934
16.50%
$ 381,469
$ 1,038,062
2026
2,375,512
16.503E
391,959
978,222
2027
2,440,839
16.50%
402,738
910,548
2028
2,507,962
16.50%
413,814
834,393
2029
2,576,931
15.10%
389,117
749,059
2030
2,647,797
15.20%
402,465
697,952
2031
2,720,611
14.60-A
397,209
637,468
2032
2,795,428
14.50-A
405,337
587,636
2033
2,872,302
14.3006
410,739
534,194
2034
2,951,290
14.50%
427,937
481,597
Alternate Plan
Estimated Employer
Estimated
Contribution
Difference
Asa%of
Annual
Between
Payroll
Dollars
AALand AVA
17.80%
$411,524
$1,038,062
17.801%
422,941
978,222
17.80%
434,469
910,548
17.80%
446,417
834,393
16.40%
422,617
749,059
16.50%
436,887
697,952
15.901/0
432,577
637,468
15.809E
441,678
587,636
15.609E
448,079
534,194
15.80%
466,304
481,597
New Public Safety Subdepartment
Change due to Proposed Provisions
Estimated Employer
Estimated
Contribution
Difference
Asa%of
Annual
Between
Payroll
Dollars
AALandAVA
1.30'6
$30,055
$0
1.301.E
30,882
-
1.301A
31,731
-
1.30%
32,603
-
1.30,16
33,500
-
1.301A
34,422
-
1.3011A
35,368
-
1.303A
36,341
-
1.3011A
37,340
-
1.301,6
38,367
-
Under the Present Plan, members eligible to be considered Public Safety members are valued using General
plan provisions and assumptions. Under the Alternate Plan, these members are valued using Public Safety
plan provisions and assumptions. The projections below only include members eligible for the Public Safety
subdepartment.
Present Plan
Estimated Employer
Estimated
Estimated
Contribution
Difference
Valuation
Projected
Asa%of
Annual
Between
Date
Payroll
Payroll
Dollars
AALand AVA
2025
$ 651,859
16.50%
$ 207,557
$120,502
2026
669,785
16.50%
110,515
113,556
2027
688,204
16.500%
113,554
105,700
2028
707,130
16.50%
116,676
96,859
2029
726,576
15.10%
109,713
86,953
2030
746,557
15.20%
113,477
82,021
2031
767,087
14.609/
111,995
74,000
2032
788,182
14.509E
114,286
68,215
2033
809,857
14.30%
115,810
62,011
2034
832,128
14.509%
120,659
55,906
( GRS
Alternate Plan
Estimated Employer
Estimated
Contribution
Difference
Asa%of
Annual
Between
Payroll
Dollars
AALand AVA
16.00%
$104,297
$ 267,202
16.00%
107,166
259,299
16.00%
110,113
250,111
16.0091
113,142
239,527
14.60%
106,080
227,430
14.70%
109,744
218,819
14.101%
108,259
208,588
14.00%
110,345
299,014
13.80%
121,760
188,393
14.00%
116,498
277,289
Change due to Proposed
Provisions
Estimated Employer
Estimated
Contribution
Difference
Asa%of
Annual
Between
Payroll
Dollars
AALand AVA
-0.50%
($ 3,260)
$146,700
-0.50%
(3,349)
145,743
-0.50%
(3,"1)
144,411
-0.50%
(3,535)
142,668
-0.50%
(3,633)
140,477
-0.50%
(3,733)
137,798
-0.50%
(3,836)
134,588
-0.509E
(3,941)
130,799
-0.50%
(4,050)
126,382
-0.50%
(4,161)
121,283
Ms. Mya Bernskoetter
June 30, 2025 E-Mail
Page 4
Section D — Assumptions and Benefit Provisions
The results shown for each subdepartment only include members reported to LAGERS as of the valuation
date, February 28, 2025. For the Public Safety department split calculations included in this letter, please
note the following:
1) A general active member as of the annual valuation date and identified as an active participant of
the Public Safety subdepartment in the data submission is considered to be an active member in
the Public Safety subdepartment.
2) A general deferred member as of the annual valuation date and identified as a participant of the
Public Safety subdepartment in the data submission is considered to be a deferred member in the
Public Safety subdepartment only if the member is also an active Police or Fire member with this
employer as of the annual valuation date.
The methods and assumptions used in the actuarial valuations were the same as those used in the annual
actuarial valuations as of February 28, 2025. In particular, the assumed rate of investment return was 7.00%
and the assumed rate of payroll growth was 2.75%.
The actuarial valuation results presented on the previous pages are based upon the employer's benefit
provisions as of February 28, 2025. A summary follows:
_Provisions
ER #5975
_
Benefit Program
L-6
Final Average Salary
5 Years
Member Contribution Rate
0%
Retirement Eligibility
Regular
The long-term cost (C) of providing retirement benefits depends only on the benefits (B) that are paid to
participants, the expenses (E) of administering the plan, and the investment return (1) generated on
invested assets: C = B + E — I. For a given level of benefits, the cost of providing those benefits is lowered if
administrative expenses are lowered or investment income is increased.
The long-term costs are financed by a series of employer and member contributions. The series of
contributions is flexible. If more is contributed in early years, less has to be contributed in later years, and
vice -versa. Over time the series of contributions has to have the same value as benefits and expenses. The
actuary determines each year's contribution based on a funding method and a set of actuarial assumptions.
The chosen funding method and assumptions do not affect the long term cost of providing retirement
benefits, but have a strong impact on the series of contributions made to fund the benefits.
This report was prepared using our proprietary valuation model and related software which in our
professional judgment has the capability to provide results that are consistent with the purposes of the
valuation and has no material limitations or known weaknesses. We performed tests to ensure that the model
reasonably represents that which is intended to be modeled.
&G RS
-�-,
Ms. Mya Bernskoetter
June 30, 2025 E-Mail
Page 5
Mita Drazilov is a Member of the American Academy of Actuaries, and meets the Qualification Standards of
the American Academy of Actuaries to render the actuarial opinions contained herein.
Please call if you have any questions.
Sincerely,
Gabriel, Roeder, Smith & Company
Ilk 3/x4.,
Mita D. Drazilov, ASA, FCA, MAAA
MDD:dj
cc: Judith Kermans (GRS)
Michael Gano (GRS)
tlj�G Rs