I. Employee Retirement Plans – Defined Benefit Plans (Continued)

City Council · 2026-04-21 · agenda_item

This notice concerns the City of West Melbourne's Police Officers' Pension Plan, specifically the Deferred Retirement Option Program (DROP). This is a financial and actuarial review, not a construction project. The plan details eligibility, participation limits, and rates of return for members. As of September 30, 2025, the DROP balance was $0. The city's net pension liability was reported as a negative $956,735, with the plan's net position exceeding its total liability by 103.85%. Actuarial assumptions, including inflation, salary increases, and discount rates, were updated as of October 1, 2024. This item is currently under review as part of the city's financial reporting. No construction or direct contracting work is described, but entities involved in financial analysis, actuarial services, and legal counsel related to public employee retirement plans may be interested in this ongoing civic agenda item.

DROP balance

0 $

Total pension liability

24842342 $

Plan fiduciary net position

25799077 $

Sponsor's net pension liability (asset)

956735 $

Plan fiduciary net position as a percentage of total pension liability (asset)

103.85 %

Actuarial valuation date

October 1, 2024

Measurement period end date

September 30, 2025

Inflation

2.50 %

Discount rate

6.35 %

Investment rate of return

6.35 %