Retirement Commission Agenda and Backup

PHONE: 860-442-0553
FIFTEEN ROPE FERRY ROAD
www waterfordetorg
WATERFORD, CT 06385-2886
RETIREMENT COMMISSION
SPECIAL MEETING AGENDA
WEDNESDAY DECEMBER17,2025 5:00P.M. ApPLEBY RM
1. Establishment of quorum and call to order by Temporary Chair.
2. Election of Commission Chair for 2025-26.
3. Public Comment
4. Consideration of and action on minutes of the September 23, 2025, meeting.
5. Consideration of and action on the proposed FY27 Retirement Commission budget.
6. New Business
7. Adjournment
encl: RC Minutes, 9/23/25
2025 PERS Valuation Report
Proposed FY27 Retirement Commission Budget
WHY 21 9390 S202
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WATRATORD, CT PRIS 2RRG
Retirement Commission Meeting Minutes—Sept. 23, 2025
Members Present: Susan Driscoll (RTM); James Dimmock (Police Comm); Nancy Natwick (Fire Services);
Paul Goldstein (RTM; 5:50pm}
Members Absent: Craig Merriman (BoE}; Mike Rocchetti (BoF); Rob Brule (BoS)
1. Call to order: Consensus to proceed with public comment and presentation while awaiting delayed arrival of member for
quorum, Chair called the meeting to order at 5:50 p.m.
2. Public comment: None.
3. Presentation: Devon Francis of Fiducient Advisors gave an overview of the Aug. 31 Flash Report and fielded questions from
members. Despite some volatility in the stock market in response to geopolitical activity, the experts are not currently
forecasting a recession but, she noted, they’re also not expecting growth to continue at such a strong level. Our investments
have dedicated exposure in both small and large capital funds, with a 65/35 mix in fixed and variable returns, but at this time
small capital funds a proving a good investment. Francis also noted that Fiducient’s plan for the July $1.38 million OPEB
contribution was to invest it in three stages between July and October, with the to-be-invested funds held in safe interest-
earning money market funds. She noted that the return expectations in the report were muted, but not pessimistic, adding
that they know the relatively strong 10-year market performance won't last forever due to circumstances beyond our
control. But, she added, our investments are doing well overall and we continue to meet our targeted returns.
4. Previous minutes: Motion by Dimmack, second by Goldstein, to approve the January 21, 2025, minutes as presented.
Voice vote: Yes 3. No O Abstain 1 (Natwick} Motion passed.
5. Consideration of Principal's 4** quarter status reports: Chair relayed Finance Director’s comments that the reports showed
no issues with the detailing of the ins and outs of the two pension fund accounts; no questions from members.
6. New business: Chair noted that the state’s recent reforms to MERS, including increased COLAs for benefits, deferred
retirement incentives, and the creation of a hybrid MERS 2.0 for new hires that will include the existing defined benefit plan
and a new defined contribution account will no doubt have an impact, but we are awaiting specific guidance from the OSC’s
Retirement Services Division, Members were asked to remind their groups that Retirement Commission appointments for
the new term must be done between Dec. 1 and Dec. 31.
7. Adjournment: Motion by Dimmock; second by Goldstein to adjourn at 6:35 p.m. Voice vote: Unanimous.
Submitted by
Susan Driscoll, Retirement Commission Chair
enci: Fiducient Flash Report-Aug 31,2025

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BUDGET FUNCTION
The Retirement Commission is charged with the management of the retirement program for
the Town. This budget represents the Commission's estimate of the employer cost required
to fund our two retirement plans on an actuarially sound basis. These costs include our
current-year contributions required by the state and certain health benefits, as well as, annual
contributions to the two trust funds established by the RTM to address the Town’s unfunded
pension liability.
Fiducient Advisors manages the Investment of the trust fund contributions and provides
quarterly performance reviews — which to date, show that return targets are consistently
met. Our actuarial firm, USI Consulting Group, provides biennial valuations of each trust’s
accrued unfunded pension liability, which must be reported on all Town financial
statements and calculated following guidelines issued by the Government Accounting
Standards Board (GASB). The firm also provides the annual required contribution needed
to cover current-year costs and chip away at the unfunded pension liability.
BUDGET SUMMARY
The proposed FY2027 budget of $8,301,874 represents a 15.30% increase over FY2026.
31930 HEART/HYPERTENSION BENEFITS
The Town is currently paying benefits to two individuals (one widow of a former police officer and one
widow of a former firefighter) in accordance with Judgments of the workers’ compensation commission
based upon Connecticut State Statute. In addition, the Town pays for treatment medications for several
active police officers. A cost of living adjustment (COLA) is provided annually in October based on
information provided by USI Consulting Group.
51940 PENSION CONTRIBUTIONS
All general employees, police, and firefighters are covered by the Municipal Employees
Retirement System (MERS), the State-administered plan. Employees who retired prior to
the Town joining the MERS are covered by the Town-administered Public Employees
Retirement System (PERS) defined benefit pension plan. This line item reflects the
employer contributions required for both plans.

)
This budget line increased by 3.61% for FY2027 due to an anticipated increase in the MERS
contribution.
To date, the state has not released the FY2027 MERS employer contribution rates, so the
FY2026 rates were used to estimate projected costs. Payroll was estimated based on 25-26
projected payroll using staffing levels as of November 2025.
The proposed budget includes a MERS administrative assessment fee of $130 per member.
The 2026-27 administrative fee of $99,970 is based on 370 active participants and 376
retirees.
The PES pian currently has 6 active participants. Effective FY24, the RTM approved a
change in benefit allowing for a minimum pension of $6,000 annually and offered a one-
time $5,000 bonus. An annual increase fined to the CPI-U was approved with a cap of 5%
per year.
The most recent Actuarial Valuation Report determined that our PERS unfunded pension
liability was $258,340 as of July 1, 2025. The next valuation will be determined as of July 1,
2027,
4
51945 RETIREE HEALTH BENEFITS ( a
This budget line is down 15.67%. The Town currently has 13 retirees who receive post-retirement
healthcare benefits. in addition, another 30 employees in the Over-65 classification receive post-
employment healthcare benefits. The current GGA contract allows for a buy-out of accrued sick-
time hours in excess of 1,400 per year for deposit into a Health Retirement Account to be used by
the employee for medical costs incurred following retirement.
The cost of the third-party administration of the HRA has been included Jn this line item. The
annual cost of this excess, s ick-time accrual is included in the respective employee’s department
budget.
51949 OTHER POST EMPLOYMENT BENEFITS (OPEB)
in addition to retirement, death and disability benefits, the Town is required to fund other post-
employment benefits (OPEB) such as healthcare. GASB Statement 45 requires that OPEB costs be
recognized in the year earned (when employee is working) rather than when paid (during retirement). In
addition, the Town must record a fiability (implicit rate subsidy) for retirees that remain on the Town's
plan at their own cost. The cost of similar benefits for these employees would be greater if the retiree
was not part of the group, so GASB requires the recording of the liability for the difference.
The proposed OPEB budget for Fiscal Year 2027 contains an increase of 75.61%.

As of the July 1, 2024, OPEB valuation, the Town's unfunded accrued fiability if $20,902,949. The
Actuarially Determined Employer Contribution (ADEC) for FY2027 is $2,818,488. If fully funded, this
contribution would be allocated between the FY2027 Retirement Commission and Insurance budgets as
follows:
Trust Contribution (10116-51949) 2,4,33,112
Retiree Health Benefits (10116-51945) 355,104
Over 65 - fully insured (10112-52251) 30,272
2,818,488

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Pension
ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Executive Summary
duty 4, 2025. “July 12023
Number of members
Active employees 0 9
Terminated vested members 0 0
Retired, disabled and beneficiaries 6 6
Total 6 6
Covered employee payroll N/A N/A
Average plan salary N/A N/A
Actuarial present value of future benefits 746,381 717,948
Actuarial accrued liability 746,381 717,948
Plan assets
Market value af assets 494,695 509,200
Actuarial value of assets 488,041 554,662
Unfunded accrued liability 258,340 163,286
Funded ratio 65.4% 77.3%
Actuartally determined employer contribution (ADEC}
Fiscal year ending 2027: 2025
ADEC 38,396 22,450
Fiscal year ending 2028 2026
ADEC 38,396 22,450
USICG.COM

OPES
ACTUARIAL VALUATION REPOAT
TOWN OF WATERFORD OPEB PLAN
Executive Summary
duly, 2024 | tuly.1, 2022
Number of members
Active members 414 368
Retired members and dependents 168 179
Total 582 547
Covered employee payrall 31,264,486 29,029,526
Average plan salary 75,518 78,885
Actuarial present value of future benefits 36,779,727 32,284,998
Actuarial accrued liability 34,097,347 30,074,765
Plan assets
Market value of assets 13,311,529 8,465,847
Actuarial value of assets 13,194,398 8,206,097
Unfunded accrued liability 20,902,949 20,868,668
Funded ratio 38.7% 30.6%
Actuarially determined employer contribution (ADEC)
Fiscal year ending 2026 2024
ADEC 2,804,332 2,505,310
Fiscal year ending 2027 2025
ADEC 2,818,488 2,516,833
USICG.COM

Srarx of
Cownecricur RetireMENT SERVICES Drvis10Nn
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave.
Harcford, CT 06106
RETIREMENT SERVICES
Divison
January 31, 2025
Ms. Christy Gregg
Director of HR
Waterford Fire Department
15 Rope Ferry Road
Waterford, CT 06385
cgregg@waterfordct.org
RE: Waterford Fire-152-F
Dear Ms. Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 30;2026 fiscal year.
¢ Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 8.38%
Unfunded Accrued Liability 15.74%
Total 24.12%
« “There is no. annual amortization payment for prior Service.
* The CMERS administrative charge is'$2,860. This charge is based on $130 per active and retired member, Our most
recent files show 15 active members and 7 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 24.12% at its
January 16, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptrolier’s website at httys://www.osc.ct.gov/rbsd/reports/index.tinml.
if you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565.
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
EO GLE
John Herrington, Director
Retirement Services Division

State of
CONNECTICUT Retirement Services Division
OFFICE oft: STATE COMPTROLLER
165 Capitol Ave.
Hartford, CT 06106
ReTIREMENY SERVICES
Division
January 31, 2025
Ms. Christy Gregg
Director of HR
Waterford Public Schools
15 Rope Ferry Road
Waterford, CT 06385
egregg@waterfordct.org
RE: Waterford Police 152-P
Dear Ms. Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025, The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 302026 fiscal year.
* Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 8.38%
Unfunded Accrued Liability 15.74%
Total 24.12%
* There is to annual amortization payment for prior service:
* The CMERS administrative charge is $13,520. This charge is based on $130 per active and retired member. Our most
recent files show $2 active members and 52 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 24.12% at its
January 16, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptroller’s website at hitps://www.ose.ct gov/rbsd/reports‘index him.
If you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565.
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
me)
John Herrington, Director
Retirement Services Division

Srare of
1
Connecticut RETIREMENT SERVICES Division
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave.
Hartford, CT 06106
RETIREMENT SERVICES
Division
January 31, 2025
Ms. Christy Gregg
Director of HR
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
egrege@waterfordct.org
RE: Waterford Gen Gov Admin 152-T
Dear Ms. Gregg:
The purpose of this etter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025, The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 30,2026 fiscal year.
¢ Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 5.60%
Unfunded Accrued Liability LL i%
Total 16.71%
* There is no annual amortization payment for prior service.
« The CMERS administrative charge is-$6,890, This charge is based on $130 per active and retired member. Our most
recent files show 20 active members and 33 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 16.71% at its
January {6, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptroller's website at https://www.ose ct sovirhsd/reports/index html.
If you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565.
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
LS
Jofin Herrington, Director
Retirement Services Division

Srare of te ;
Mi Vv)
ConnNECTICUT TIREMENT SERVICES Division
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave.
Hartford, CT 06106
RETIREMENT SERVICES
Division
January 31, 2025
Ms. Christy Gregg,
Director of HR
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
cgregg@waterfordct.org,
RE: Waterford:Town 152-W
Dear Ms, Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) far the fiscal year beginning July 1, 2025. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July t, 2025 to June 30, 2026 fiscal year,
° Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 5.60%
Unfunded Accrued Liability 11.11%
Total 16.71%
¢ «There is no annual amortization payment for prior service.
« The CMERS administrative charge is $11,180. This charge is based on $130 per active and retired member. Our most
recent files show 40 active members and 46 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 16.71% at its
January 16, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptroler’s website at hitns:/www.ose.0l govirbsd/reports/index hem),
If you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565. :
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
"Sa 9
John Herrington, Director
Retirement Services Division

Starr of
CONNECTICUT RETIREMENT SERVICES Division
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave,
Hartford, CT 06106
RETIREMENT SERVICES
Division
January 31, 2025
Ms. Christy Gregg
Director of HR
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
cgregg@waterfordct.org
RE: Waterford Local'1303_152-B
Dear Ms. Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 30, 2026 fiscal year.
e Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 5.60%
Unfunded Accrued Liability HLU%
Tota! 16,71%:
© There is no annual amortization payment for prior service.
* The CMERS administrative charge is $19,630. This charge is based on $130 per active and retired member, Our most
recent files show 69 active members and 82 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 16.71% at its
January t6, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptrolier’s website at https:/’www.osc,ct.gov/rbsd/reports‘index, tml.
If you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565.
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
S29
John Herrington, Director
Retirement Services Division

Stave of
RETIREMENT SERVICES Division
CONNECTICUT. OFFICE ofthe STATE COMPTROLLER
; 165 Capitol Ave.
RETIREMENT SERVICES Hartford, CT 06106
Diviston
January 31, 2025
Ms. Christy Gregg
Director of HR
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
cgregg@waterfordct.org
RE: Waterford Cust & Main Asst 152-E
Dear Ms. Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 30, 2026 fiscal year.
* Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 5.60%
Unfunded Accrued Liability WL11%
Total AG.7\%
© ©There is no.annual amortization: payment for prior service.
* The CMERS administrative charge is $8,450, This charge is based on $130 per active and retired member. Our most
recent files show 32 active members and 33 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 16.71% at its
January 16, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptroller's website at htrps://www.ose.ct. zov/rbed/repons/index hunt.
If you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565,
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
“ Oye
John Herrington, Director
Retirement Services Division

Stare of
Connecricur RETIREMENT SERVICES DivistON
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave.
Hartford, CT 06106
RETIREMENT SERVICES
Division
January 31, 2025
Ms. Christy Gregg
Director of HR
Waterford.Public Schools
15 Rope Ferry Road
Waterford, CT 06385
egregg@waterfordct.org
RE: Waterford Paraprofessionals 152-N
Dear Ms. Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025, The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 30, 2026 fiscal year,
* Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 5,60%
Unfunded Accrued Liability UL.11%
Total 16.71%
© =There is no annual amortization payment for prior service.
* The CMERS administrative charge is $17,290. This charge is based on $130 per active and retired member. Our most
recent files show 87 active members and 46 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 16.71% at its
January 16, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptroller’s website at hitps://www.osc.ct. govirbsd/reports/index html.
If you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565,
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
"S29
John Herrington, Director
Retirement Services Division

Srare of
Connecticut Retirement Services Diviston
os OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave,
RETIREMENT SERVICES Hartford, CT 06106
Division
January 31, 2025
Ms, Christy Gregg
Director of HR
Waterford Public Schools
15 Rope Ferry Road
Waterford, CT 06385
cgrega@waterfordct.org
RE: Waterford Café RI0224 152-L
Dear Ms. Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 30, 2026 fiscal year.
* Monthly contribution payments, as a percentage of payroll, will be as follows:
Norma! Cost 5.60%
Unfunded Accrued Liability L11%
Total 16.71%
¢ .There is no annual amortization payment for prior service.
« The CMERS administrative charge is $4,810.-This charge is based on $130 per active and retired member. Our most
recent files show 16 active members and 21 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 16.71% at its
January 16, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptroller's website at httpss/www.osc.ct.gov/rbsd/reports/index Atm.
Tf you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565.
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
S22
John Herrington, Director
Retirement Services Division

Stars of
CONNECTICUT RETIREMENT Services Diviston
OFFICE of STATE COMPTROLLER
165 Capicol Ave.
ReriREMENT SERVICES Hartford, CT 06106
Drvision
January 31, 2025
Ms, Christy Gregg
Director of HR.
‘Waterford Public Schools
15 Rope Ferry Road
Waterford, CT 06385
cgrege@waterfordct.org
RE: Waterford Non-union Educ 152-S
Dear Ms. Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 30,'2026 fiseal year.
* Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 3.60%
Unfunded Accrued Liabitity 11.11%
Total 16.71%
¢.” There is.no annual amortization paymient for prior service,
* The CMERS administrative charge is $7,800. This charge is based on $130 per active and retired member. Our most
recent files show 39 active members and 21 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 16.71% at its
January 16, 2025 meeting, A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptroller's website at https://www. ose ct.gow/rbsd/reports/index html.
If you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565.
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
NT LES
John Herrington, Director
Retirement Services Division

Srare of
Conngcricut ReriremenT Serviczs Division
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave,
Hartford, CT 06106
RETIREMENT SERVICES
Division
January 31, 2025
Ms, Christy Gregg
Director of HR
Waterford Public Schools
15 Rope Ferry Road
Waterford, CT 06385
cgregg@waterfordct.org
RE: Water Local RE 161152-H
Dear Ms. Gregg:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2025. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2025 to June 30, 2026 fiscal year,
© Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 5.60%
Unfunded Accrued Liability {1.11%
Total 16.71%
¢ -oThere 4s no annual amortization: payment for prior service.
¢ The CMERS administrative charge is $7,540. This charge is based on $130 per active and retired member. Our most
recent files show 23 active members and 35 retired members.
The Municipal Employees Retirement System Commission approved the above total contribution rate of 16.71% at its
January 16, 2025 meeting. A copy of the June 30, 2024 actuarial valuation report can be found on the Office of the State
Comptroller's website at https://www.osc.ct.gov/tbsd/reports/index.htenl,
If you have any questions regarding the information provided in this letter, please contact Kathryn Balut, a CMERS staff
member, at (860)702-3565.
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
ESP OLE
John Herrington, Director
Retirement Services Division

CONSULTING
GROUP
Town of Waterford Retirement
Plan
Actuarial
Valuation Report
as ot July 1 2025

ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Table of Contents
Ex@ cutive SUMIMALY vi ccccsccrecsecssessssenseceseseseessesescttecsuesaesseesseesesisssicesasseaessessseceesanesesscesssaseesverseresensesan vel
Valuation Results and Highlights...... 2
Purpose of the Valuation ....
Information Available in the Valuation REGOrt 0... ccc ssscsecesterssesssccsestscessssenenssessssecessessceaesatsrsisseessasaeeseses a2
Changes Reflected in the Valuation oo... .cseccsescssessscseserecsesssessesessssssnaseasscssssseescessasseeassessesssessenaucassanssanessatenes 2
Cash Contribution for Fiscal Years Ending 2027 and 2028.......ccccscsssssscssssssssesessesssssssessesseseseaseseccsscensessenesceees 2
Liability Experience During Period Under Review... Saedeeseseeseseeesasencnesencsaneeatsensenevereatesssaceesensenasenecen 2
Asset Experience During Period Under Review .....ccccssccscsseretsscsssssssesesesescensssecussssscsesesesescseecnesvevessusnsesnectvenee 2
Assessment and Measurement Of RISKS.......cccsssesscsesssssesseseresrrssesnesersesseatsesacsecsecaesssecnecntenssetsesneasensesseseeneesees 3
Implications of Contribution Allocation Procedure or Funding POlicy.......ccsccscssessssssesesssssssseseessecessessneessses 5
COrtiFiCAtiON oo. seccesecsssessesesesseennssssecssesssssesecsvsseassceseneeentanscesdansesssanessacendasnessasavaeverotisanensardaeesceesecaeanenaseasanseseeeeuseaes 6
Development of Unfunded Accrued Liability and Funded Ratio.n...cccccccsesessseccssesesscsnsscsnsceescseesessesssesesneenereese 7
Determination of Normal Cost and Actuarially Determined Employer Contribution ....ccccccsescsescsssstessens 9
Actuarially Determined Employer Contribution per Group v.cccccscrsercsescsssessscscsesesesensesssesssevsuseecsvesavscetesseenseanseen 41
Determination of Actuarial Gain/Loss .occcccccsuessscsseseesessnreneesesricsuecuseeneeneceveaneanesecaueaneasesueeneesaesesaesseesseasensnesuss 42
Development of Asset Valles... ccsssssercsescsescsssectsssssssssesseressecsessestversesssereeesssesssapsesusnsvasseacsvscassesereedavacesssiveescaneees 13
Target Allocation and Expected Rate of REtUIT cc cscessensesevenesecenteesersnseeseatecaeessnsasescassuasssenetansaeasenaiearessava 17
Amortization of Unfunded Liability oo cssecssessesssesseneccneensesneassnsceecsarseesssenesarvasssesarasscssansssaneessusseesenessesseners 18
Member Data v.scsssssssssssssssssssessseversssessesveseseessrsssseesvasenssssesenevseesecsvestesesseceesecsecaeasaseatuansesssesseenescesistestvasseseeeeseaneasees 19
Expected Benefit Payments from Trust FUNC... .secscccssesssessscscseesececesnensesessessesssieasesecscaseeeanecsssertsacssseseseaeesess 22
Description of Actuarial Methods ..cccccccseececcseessrsescsesnssasennesenecesseeeecesnsnssesceagiseasieseeneasenereuanesesseansesnsenanss 23
Description of Actuarial Assumptions
Summary of Plan Provisions
Report Prepared By:
Stephen Chykirda : Jonathan Plumb : : :
“Associate Vice Pr sident & ¢ snsulting Actuary
860. 856. 2047.
_ stephen. chyldrda@usic om

Executive Summary
ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Number of members
Active employees 0 0
Terminated vested members 0 0
Retired, disabled and beneficiaries 6 6
Total 6 6
Covered employee payroll N/A N/A
Average plan salary N/A N/A
Actuarial present value of future benefits 746,381 717,948
Actuarial accrued liability 746,381 717,948
Plan assets
Market value of assets 494,695 509,200
Actuarial value of assets 488,041 554,662
Unfunded accrued liability 258,340 163,286
Funded ratio 65.4% 77.3%
Actuarially determined employer contribution (ADEC)
Fiscal year ending 2027 2025
ADEC 38,396 22,450
Fiscal year ending 2028 2026
ADEC 38,396 22,450
USICG.COM 
1

ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Valuation Results and Highlights
Purpose of the Valuation
The purpose of the valuation is to develop the Actuarially Determined Employer Contribution (ADEC).
The ultimate cost of a pension plan is based primarily on the level of benefits promised by the plan. The pension
fund's investment earnings serve to reduce the cost of plan benefits and expenses. Thus,
Ultimate cost = Benefits Paid + Expenses Incurred — Investment-Return — Employee Contributions
The actuarial cost method distributes this ultimate cost over the working lifetime of current plan participants. By
means of this budgeting process, costs are allocated to both past and future years, and a cost is assigned to the
current year. The current year's allocated cost, or normal cost, is the building block upon which the actuarially
determined employer contribution is developed. The July 1, 2025 valuation produces the contributions for the
fiscal years ending 2027 and 2028.
Information Available in the Valuation Report
The Executive Summary is intended to emphasize the notable results of the valuation from the perspective of the
Plan Sponsor. Supporting technical detail is documented in Results of the Valuation, Supporting Exhibits and
Description of Actuarial Methods and Assumptions. A concise summary of the principal provisions of the Plan is
outlined in Summary of Plan Provisions.
Changes Reflected in the Valuation
This valuation reflects a change in the mortality assumption.
Cash Contribution for Fiscal Years Ending 2027 and 2028
The Town cost is: 2027 Fiscal Year 2028 Fiscal Year
General Employees $7,542 $7,542
Policemen 26,408 26,408
Firefighters 4,446 4,446
Total $38,396 $38,396
Liability Experience During Period Under Review
The plan experienced a net actuarial loss on liabilities of $136,109 since the prior valuation.
Asset Experience During Period Under Review
The plan's assets provided the following rates of return during the past two fiscal years:
2024 Fiscal Year 2025 Fiscal Year
Market Value Basis 11.8% 11.6%
Actuarial Value Basis 5.5% 6.6%
The Actuarial Value of assets, rather than the Market Value, is used to determine plan contributions. The
Actuarial Value spreads the asset volatility by recognizing 20% of the difference each year, thereby smoothing
out fluctuations that are inherent in the Market Value.
USICG.COM 
2

ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Assessment and Measurement of Risks
Financial Significance of Plan
It is important to understand the size of the pension plan compared to the size of the sponsor of that plan.
Additional pension contributions may be required at inopportune times for the plan sponsor. In general, a plan
sponsor with assets or revenue that are much larger than the liabilities in its pension plans will be better able to
withstand increases in required pension contributions.
Plan Maturity Measurements
Actuarial accrued liability for members currently in pay status
as a percentage of the total actuarial accrued liability 100.0% 100.0%
* A lower percentage results in greater volatility as the investment return assumption changes.
¢ A higher percentage results in greater demand on cash due to a proportionately higher
percentage of benefits being in pay status.
8 july, 2025:
Duration of benefit payments using an investment rate of return of 6.25% 6.2 years
* A higher duration will occur if the plan's percentage of members in pay status decreases. A plan
with a higher duration will have a liability that is more sensitive to changes in the investment
return assumption.
— july1,2025 July 1, 2023.
Ratio of market value of assets to covered payroll N/A N/A
* A higher ratio is more typical of relatively mature plans with a larger percentage of inactive
members and may cause more potential contribution volatility as pension fund assets fluctuate,
Risks to Assess
Overriding Minimum Contribution
Actuarially determined employer contribution (ADEC} 38,396
Overriding minimum contribution (OMC)* 45,054
Surplus (deficit) - ADEC vs. OMC (6,658)
«A deficit suggests that a plan's current funding policy contribution approach may result in little to
No progress being made towards: (1) reducing the plan's unfunded liability; and (2) increasing the
plan's funded ratio in the near-term.
* As defined in “Public Pension Plan Funding Policy” (Society of Actuaries, 2010).
USICG.COM 
3

ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Estimated Impact of a 5% Reduction in Market Value of Assets
Ending 2028
Increase in actuarially determined employer contribution (ADEC) 735 735
« Plans would generally be subject to a larger amortization payment if the market value of assets
were 5% smaller. As a result, the ADEC would generally be higher for up to 9 years.
Due to the asset smoothing method, the ADEC will additionally increase by the same amount in each of the next
few years. Each of these additional contributions will continue for up to 9 years.
Low-Default-Risk Obligation Measure
— suly1, 2028 |
Low-default-risk obligation measure (LDROM)* 797,939
Total actuarial accrued liability (AAL} for all members** 746,381
Difference between LDROM and AAL 51,558
¢ This exhibit illustrates the impact on the ongoing funding liability if the plan decided to invest
completely in low-default-risk securities.
* The LDROM discount rate is 5.20%. The discount rate used for this purpose is equal to the published Bond Buyer GO 20-
Bond Municipal Index effective as of June 30, 2025. Other than the discount rate, the assumptions and methods are
consistent with those used in the actuarial valuation. The disclosure of the LDROM is for illustrative purposes and does not
necessarily imply that the associated discount rate should be used for funding purposes.
** The discount rate used in the valuation is 6.25%.
Historical Results
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ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Implications of Contribution Allocation Procedure or Funding Policy
| have assessed the impact of the funding policy on the anticipated employer contributions and the plan’s funded
status. The funding policy is described in the Description of Actuarial Methods section of this report.
| have estimated the approximate length of time before the unfunded accrued liability, if any, will become fully
amortized. The period is estimated to be 9 years. Subsequent to the end of this period, the future anticipated
employer contributions will be the corresponding annual normal costs.
1 have assessed whether the funding policy will be sufficient to cover future benefit payments and administrative
expenses. The current funding policy is anticipated to cover these costs indefinitely.
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ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Certification
This report presents the results of the July 1, 2025 Actuarial Valuation for Town of Waterford Retirement Plan
(the Plan) for the purpose of estimating the funded status of the Plan and determining the Actuarially
Determined Employer Contribution (ADEC) for the fiscal years ending June 30, 2027 and June 30, 2028. This
report may not be appropriate for any other purpose.
The valuation has been performed in accordance with generally accepted actuarial principles and practices. It is
intended to comply with all applicable Actuarial Standards of Practice.
| certify that the actuarial assumptions and methods that were selected by me and represent my best estimate
of anticipated actuarial experience under the Plan. The combined effect of the actuarial assumptions and
methods is not expected to contain significant bias, meaning it is not overly optimistic or pessimistic,
In preparing this valuation, | have relied on employee data provided by the Plan Sponsor, and on asset and
contribution information provided by the Trustee. | have audited neither the employee data nor the financial
information, although | have reviewed them for reasonableness,
The results in this valuation report are based on the Plan as summarized in the Summary of Plan Provisions
section of this report and the actuarial assumptions and methods detailed in the Description of Actuarial
Methods and Assumptions section of this report.
Future actuarial measurements may differ significantly from the current measurements presented in this report
due to factors such as, but not limited to, the following: plan experience differing from that anticipated by the
economic or demographic assumptions; changes in economic or demographic assumptions; increases or
decreases expected as part of the natural operation of the methodology used for these measurements (such as
the end of an amortization period or additional cost or contribution requirements based on the Plan’s funded
status); and changes in plan provisions or applicable law. Due to the limited scope of this report, an analysis of
the potential range of such future measurements has not been performed.
{have no relationship with the employer or the Plan that would impair, or appear to impair, my objectivity in
performing the work presented in this report. | am a member of the American Academy of Actuaries and meet
its Qualification Standards to render the actuarial opinion contained herein.
in —TM
Stephen Chykirda, ASA, FCA, MAAA
Enrolled Actuary 23-07517
September 8, 2025
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ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Development of Unfunded Accrued Liability and Funded Ratio
Actuarial accrued liability for inactive members
Retired, disabled and beneficiaries
Terminated vested members
Total
Actuarial accrued liability for active employees
Total actuarial accrued liability
Actuarial value of assets
Unfunded accrued liability
Funded ratio
$746,381 $717,948
0 iy)
746,381 717,948
) )
746,381 717,948
488,041 554,662
258,340 163,286
65.4% 77.3%
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ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Actuarial Accrued Liability vs. Actuarial Value of Assets
$1,200,000
$1,000,000
$300,000
$600,000
$400,000 +
2019 2021 2023 2025
Actuarial Accrued Liabifity (EAN Basis} @ Actuarial Value of Assets
Funded Ratio
90%
80%
70%
60%
50%
40% t t r 1
2019 2021 2023 2025
exgep Market Value exgeeeActuarial Value
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ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Determination of Normal Cost and Actuarially Determined Employer Contribution
Town's normal cost $0 So
Amortization of unfunded accrued liability 36,137 21,128
Contribution before adjustment as of the
valuation date 36,137 21,128
Fiscal year ending 2027 2025
Adjustment for interest and inflation 2,259 1,322
Actuarially determined employer contributian 38,396 22,450
Fiscal year ending 2028 2026
Adjustment for interest and inflation 0 (¢)
Actuarially determined employer contribution 38,396 22,450
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ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Actuarially Determined Employer Contribution
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$o
2024 2025
Past Service Cost
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ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Actuarially Determined Employer Contribution per Group
Town's normal cost $0 $0 $0 $0
Actuarial accrued fiability 146,613 513,360 86,408 746,381
Actuarial value of assets 95,867 335,674 56,500 488,041
Unfunded accrued liability 50,746 177,686 28,908 258,340
Amortization of unfunded accrued liability 7,098 24,855 4,184 36,137
Contribution before adjustment as of the
valuation date 7,098 24,855 4,184 36,137
Fiscal year ending June 30, 2027
Adjustment for interest and inflation 444 1,553 262 2,259
Actuartally determined employer contribution 7,542 26,408 4,446 38,396
Fiscal year ending June 30, 2028
Adjustment for interest and inflation oO Q o o
Actuarially determined employer contribution 7,542 26,408 4,446 38,396
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ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Determination of Actuarial Gain/Loss
The Actuarial Gain/Loss is the difference between the expected unfunded accrued liability and the actual
unfunded accrued liability, without regard to any changes in actuarial methods, actuarial assumptions or plan
provisions. This can also be referred to an Experience Gain/Loss, since it reflects the difference between what
was expected and what was actually experienced.
Expected unfunded accrued liability July 1, 2025
Expected unfunded accrued liability July 1, 2024
Unfunded accrued liability July 1, 2023 $163,286
Gross normal cost July 1, 2023 0
Town and employee contributions for 2023-2024 (27,280)
Interest at 6.25% to July 1, 2024 8,548
Expected unfund