DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Actuarial Review of the San Antonio Fire & Police Pension Fund As Required by HB2664
SUMMARY:
House Bill 2664 was passed by the 80th legislature of State of Texas and requires employers who sponsor public retirement systems, such as the San Antonio Fire & Police Pension Fund, to retain an independent actuary every five years to review actuarial work products. The legislation requires that the independent actuary provide the governing body of the public retirement system the results of the review as an item posted on the public agenda in the form of an issued report.
BACKGROUND INFORMATION:
In accordance with the legislation passed in 2008 and to comply with all provisions of HB 2664, codified as 801.1012 Texas Government Code (the "Bill"), the City conducted its first actuarial and consulting services review for five years of annual valuations and experience studies of the San Antonio Fire & Police Pension Fund (SAFPPF) from October 1, 2003 through October 1, 2007. The report and recommendations were provided to City Council and were incorporated in subsequent SAFPPF actuarial reports.
The City engaged Gabriel, Roeder, Smith and Company (GRS) in June 2013 to conduct the second actuarial review of the annual valuations and experience studies of the SAFPPF from October 1, 2008 through October 1, 2012. As an independent reviewing actuary, GRS was asked to provide an opinion and recommendations of the actuarial valuations performed by The Segal Company for SAFPPF, and that the actuarial reports from the previous five years fully and fairly discloses the actuarial position of the SAFPPF.
The scope of the review included the following:
* Appropriateness of the assumptions used in determining the actuarial accrued liability, normal costs and funding period
* Appropriateness of the actuarial costs methods used to determine the actu...
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