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Home My WebLink AboutR-2025-142 LAGERS Changes to Include Public Safety EmployeesRESOLUTION NO. R-2025-142 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 2nd day of September, 2025. /s/ Kathleen L. Rose Mayor Kathleen L. Rose ATTEST: /s/ Sarah Wagner Sarah Wagner, Deputy City Clerk GRS 800.521.0498 I P:248.799.9000 I www.grsconsulting.com 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: 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 Current General Normal Cost Rate 11.20% Casualty Rate 0.50 Prior Service Cost Rate1 4.80 Total Employer Contribution Rate 16.50% Alternate Plan Remaining General Subdepartments | New Public Safety Subdepartment 11.80% 11.50% 0.50 0.50 5.50 4.00 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). One Towne Square | Suite 800 | Southfield, Michigan 48076-3723 Ms. Mya Bernskoetter June 30, 2025 E-Mail Page 2 Section B — Additional Details Present Plan General Benefit Provisions Current General Member Statistics Number Active 35 Payroll $2,963,793 Average Pay 84,680 Accumulated Contributions (Actives) 990 Number Deferred 23 Actuarial Accrued Liabilities (AAL) Active AAL $6,290,958 Deferred AAL 1 190 051 Total AAL $7,481,009 Actuarial Value of Assets Members Deposit Fund (MDF) $990 Employer Accumulation Fund (EAF)1 6,321,455 Total Assets $6,322,445 Funded Ratio 84.5% Unfunded Actuarial Accrued Liability (UAAL) $1,158,564 Computed Employer Contribution Rate Normal Cost Rate 11.20% Casualty Rate 0.50 Prior Service Cost Rate 4.80 Total Employer Contribution Rate 16.50% Estimated First Year Employer Contribution Dollars $489,026 Alternate Plan General Benefit Provisions Remaining General Subdepartments Number Active 25 Payroll $2,322,934 Average Pay 92,477 Accumulated Contributions (Actives) 990 Number Deferred 23 Actuarial Accrued Liabilities (AAL) Active AAL $5,512,859 Deferred AAL 1,190,051 Total AAL $6,702,910 Actuarial Value of Assets Members Deposit Fund (MDF) $990 Employer Accumulation Fund (EAF)1 5,663,858 Total Assets $5,664,848 Funded Ratio 84.5% Unfunded Actuarial Accrued Liability (UAAL) $1,038,062 Computed Employer Contribution Rate Normal Cost Rate 11.80% Casualty Rate 0.50 Prior Service Cost Rate 5.50 Total Employer Contribution Rate 17.80% Estimated First Year Employer Contribution Dollars $411,524 Alternate Plan Public Safety Benefit Provisions New Public Safety Subdepartment Number Active 10 Payroll $651,859 Average Pay 65,186 Accumulated Contributions (Actives) - Number Deferred 0 Actuarial Accrued Liabilities (AAL) Active AAL $778,099 Deferred AAL 0 Total AAL $778,099 Actuarial Value of Assets Members Deposit Fund (MDF) $0 Employer Accumulation Fund (EAF)1 $657,597 Total Assets $657,597 Funded Ratio 84.5% Unfunded Actuarial Accrued Liability (UAAL) $120,502 Computed Employer Contribution Rate Normal Cost Rate 9.20% Casualty Rate 0.50 Prior Service Cost Rate 2.30 Total Employer Contribution Rate 12.00% Estimated First Year Employer Contribution Dollars $78,223 Alternate Plan General Benefit Provisions New Public Safety Subdepartment Number Active 10 Payroll $651,859 Average Pay 65,186 Accumulated Contributions (Actives) - Number Deferred 0 Actuarial Accrued Liabilities (AAL) Active AAL $924,799 Deferred AAL 0 Total AAL $924,799 Increase AAL- Public Safety Provisions and Assumptions $146,700 Actuarial Value of Assets Members Deposit Fund (MDF) $0 Employer Accumulation Fund (EAF)1 $657,597 Total Assets $657,597 Funded Ratio 71.1% Unfunded Actuarial Accrued Liability (UAAL) $267,202 Computed Employer Contribution Rate Normal Cost Rate 11.50% Casualty Rate 0.50 Prior Service Cost Rate 4.00 Total Employer Contribution Rate 16.00% Estimated First Year Employer Contribution Dollars $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. GRS 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. Valuation Date 2025 Estimated Projected Payroll $2,311,934 Present Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $381,469 Estimated Difference Between AAL and AVA $1,038,062 Alternate Plan Estimated Employer Contribution As a % of Payroll 17.80% Annual Dollars $411,524 Estimated Difference Between AAL and AVA $1,038,063 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $30,055 Estimated Difference Between AAL and AVA $0 Valuation Date 2026 Estimated Projected Payroll $2,375,512 Present Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $391,959 Estimated Difference Between AAL and AVA $978,222 Alternate Plan Estimated Employer Contribution As a % of Payroll 17.80% Annual Dollars $422,841 Estimated Difference Between AAL and AVA $978,222 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $30,882 Estimated Difference Between AAL and AVA - Valuation Date 2027 Estimated Projected Payroll $2,440,839 Present Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $402,738 Estimated Difference Between AAL and AVA $910,548 Alternate Plan Estimated Employer Contribution As a % of Payroll 17.80% Annual Dollars $434,469 Estimated Difference Between AAL and AVA $910,548 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $31,731 Estimated Difference Between AAL and AVA - Valuation Date 2028 Estimated Projected Payroll $2,507,962 Present Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $413,814 Estimated Difference Between AAL and AVA $834,393 Alternate Plan Estimated Employer Contribution As a % of Payroll 17.80% Annual Dollars $446,417 Estimated Difference Between AAL and AVA $834,393 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $32,603 Estimated Difference Between AAL and AVA - Valuation Date 2029 Estimated Projected Payroll $2,576,931 Present Plan Estimated Employer Contribution As a % of Payroll 15.10% Annual Dollars $389,117 Estimated Difference Between AAL and AVA $749,059 Alternate Plan Estimated Employer Contribution As a % of Payroll 16.40% Annual Dollars $422,617 Estimated Difference Between AAL and AVA $749,059 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $33, 500 Estimated Difference Between AAL and AVA - Valuation Date 2030 Estimated Projected Payroll $2,647,797 Present Plan Estimated Employer Contribution As a % of Payroll 15.20% Annual Dollars $402,465 Estimated Difference Between AAL and AVA $697,952 Alternate Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $436,887 Estimated Difference Between AAL and AVA $697,952 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $34,422 Estimated Difference Between AAL and AVA - Valuation Date 2031 Estimated Projected Payroll $2,720,611 Present Plan Estimated Employer Contribution As a % of Payroll 14.60% Annual Dollars $397,209 Estimated Difference Between AAL and AVA $637,468 Alternate Plan Estimated Employer Contribution As a % of Payroll 15.90% Annual Dollars $432,577 Estimated Difference Between AAL and AVA $637,468 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $35,368 Estimated Difference Between AAL and AVA - Valuation Date 2032 Estimated Projected Payroll $2,795,428 Present Plan Estimated Employer Contribution As a % of Payroll 14.50% Annual Dollars $405,337 Estimated Difference Between AAL and AVA $587,636 Alternate Plan Estimated Employer Contribution As a % of Payroll 15.80% Annual Dollars $441,678 Estimated Difference Between AAL and AVA $587,636 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $36,341 Estimated Difference Between AAL and AVA - Valuation Date 2033 Estimated Projected Payroll $2,872,302 Present Plan Estimated Employer Contribution As a % of Payroll 14.30% Annual Dollars $410,739 Estimated Difference Between AAL and AVA $524,194 Alternate Plan Estimated Employer Contribution As a % of Payroll 15.60% Annual Dollars $448,079 Estimated Difference Between AAL and AVA $534,194 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $37,340 Estimated Difference Between AAL and AVA - Valuation Date 2034 Estimated Projected Payroll $2,951,290 Present Plan Estimated Employer Contribution As a % of Payroll 14.50% Annual Dollars $427,937 Estimated Difference Between AAL and AVA $481,597 Alternate Plan Estimated Employer Contribution As a % of Payroll 15.80% Annual Dollars $466,304 Estimated Difference Between AAL and AVA $481,597 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars $38,367 Estimated Difference Between AAL and AVA - New Public Safety Subdepartment 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. Valuation Date 2025 Estimated Projected Payroll $651,859 Present Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $107,557 Estimated Difference Between AAL and AVA $120,502 Alternate Plan Estimated Employer Contribution As a % of Payroll 16.00% Annual Dollars $104,297 Estimated Difference Between AAL and AVA $267,202 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars ($3,260) Estimated Difference Between AAL and AVA $146,700 Valuation Date 2026 Estimated Projected Payroll $669,785 Present Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $110,515 Estimated Difference Between AAL and AVA $113,556 Alternate Plan Estimated Employer Contribution As a % of Payroll 16.00% Annual Dollars $107,166 Estimated Difference Between AAL and AVA $259,299 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars $(3,349) Estimated Difference Between AAL and AVA $145,743 Valuation Date 2027 Estimated Projected Payroll $688,204 Present Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $113,554 Estimated Difference Between AAL and AVA $105,700 Alternate Plan Estimated Employer Contribution As a % of Payroll 16.00% Annual Dollars $110,113 Estimated Difference Between AAL and AVA $250,111 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars $(3,441) Estimated Difference Between AAL and AVA $144,411 Valuation Date 2028 Estimated Projected Payroll $707,130 Present Plan Estimated Employer Contribution As a % of Payroll 16.50% Annual Dollars $116,676 Estimated Difference Between AAL and AVA $96,859 Alternate Plan Estimated Employer Contribution As a % of Payroll 16.00% Annual Dollars $113,141 Estimated Difference Between AAL and AVA $239,527 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars $(3,535) Estimated Difference Between AAL and AVA $142,668 Valuation Date 2029 Estimated Projected Payroll $726,576 Present Plan Estimated Employer Contribution As a % of Payroll 15.10% Annual Dollars $109,713 Estimated Difference Between AAL and AVA $86,953 Alternate Plan Estimated Employer Contribution As a % of Payroll 14.60% Annual Dollars $106,080 Estimated Difference Between AAL and AVA $227,430 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars $(3,633) Estimated Difference Between AAL and AVA $140,477 Valuation Date 2030 Estimated Projected Payroll $746,557 Present Plan Estimated Employer Contribution As a % of Payroll 15.20% Annual Dollars $113477 Estimated Difference Between AAL and AVA $81,201 Alternate Plan Estimated Employer Contribution As a % of Payroll 14.70% Annual Dollars $109,744 Estimated Difference Between AAL and AVA $218,819 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll 1.30% Annual Dollars (3,733) Estimated Difference Between AAL and AVA $137,798 Valuation Date 2031 Estimated Projected Payroll $767,087 Present Plan Estimated Employer Contribution As a % of Payroll 14.60% Annual Dollars $111,955 Estimated Difference Between AAL and AVA $74,000 Alternate Plan Estimated Employer Contribution As a % of Payroll 14.10% Annual Dollars $108,159 Estimated Difference Between AAL and AVA $208,588 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars (3,836) Estimated Difference Between AAL and AVA $134,588 Valuation Date 2032 Estimated Projected Payroll $788,182 Present Plan Estimated Employer Contribution As a % of Payroll 14.50% Annual Dollars $114,286 Estimated Difference Between AAL and AVA $68,215 Alternate Plan Estimated Employer Contribution As a % of Payroll 14.00% Annual Dollars $110,345 Estimated Difference Between AAL and AVA $199,014 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars (3,941) Estimated Difference Between AAL and AVA $130,799 Valuation Date 2033 Estimated Projected Payroll $809,857 Present Plan Estimated Employer Contribution As a % of Payroll 14.30% Annual Dollars $115,810 Estimated Difference Between AAL and AVA $62,011 Alternate Plan Estimated Employer Contribution As a % of Payroll 13.80% Annual Dollars $111,760 Estimated Difference Between AAL and AVA $188,393 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars (4,050) Estimated Difference Between AAL and AVA $126,382 Valuation Date 2034 Estimated Projected Payroll $832,128 Present Plan Estimated Employer Contribution As a % of Payroll 14.50% Annual Dollars $120,659 Estimated Difference Between AAL and AVA $55,906 Alternate Plan Estimated Employer Contribution As a % of Payroll 14.00% Annual Dollars $116,498 Estimated Difference Between AAL and AVA $177,189 Change due to Proposed Provisions Estimated Employer Contribution As a % of Payroll -0.50% Annual Dollars (4,161) Estimated Difference Between AAL and AVA $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 (I) 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. GRS 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 /s/ Mita Drazilov Mita D. Drazilov, ASA, FCA, MAAA MDD:dj cc: Judith Kermans (GRS) Michael Gano (GRS) GRS