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ChatGPTClaudePerplexityStoryline · 14 events · Jul 15, 2020 – Aug 19, 2026
Amarillo firefighters' pension fund: contributions, valuations and the 2024 benefit vote
Quick answers
- What is the latest on Firefighters' pension fund?
- Aug 19, 2026: Board approves the latest actuarial valuation. After tabling it in July, the board approved the actuarial valuation presented by Rudd and Wisdom, which it had retained in January 2026 at $32,000 for the valuation while planning to look at other firms. Read the event
- How far back does this record of Firefighters' pension fund go?
- To Jul 15, 2020: Firefighters vote 191-5 for contribution increases recommended with the 2019 valuation. The storyline has 14 dated events in all. Read the event
The Amarillo Firemen's Relief and Retirement Fund is the firefighters' pension plan under the Texas Local Fire Fighters Retirement Act, funded by contributions from firefighters and the City of Amarillo and overseen by a seven-member board that includes the Mayor or a designee and the City's Chief Financial Officer. In 2020 members voted 191-5 for contribution increases, and the December 31, 2019 valuation put the plan's amortization period at 38.1 years with half-point increases from both firefighters and the City in 2021 and 2022. By the December 31, 2023 valuation the period was 5.5 years. The board had a City-paid actuarial audit and a state-required investment practices evaluation done in 2023, lowered its return assumption to 7.35% in 2024, added private debt and private infrastructure managers, and sent a benefit multiplier increase and an ad hoc cost-of-living adjustment to members, who approved them in December 2024. Market value rose from about $194 million at the end of 2019 to about $275 million in July 2026.
A storyline groups dated events in order. It is a chronology, not an argument; it does not say why anything happened. All storylines
- Debt & financing
- Public safety
- Budget & taxes
- Audits & oversight
- Contracts & procurement
- Leadership & governance
- Votes & elections
- Courts & law
· Origin
Firefighters vote 191-5 for contribution increases recommended with the 2019 valuation
In June 2020 the board voted to take the actuarial valuation to the membership for a vote on incremental increases. Meetings were held at each fire station; of 269 eligible members, 196 voted, 191 for "Proposed Plan 1" and 5 for the present plan. The board accepted the canvass on July 15, 2020.[1][2]
- ✓ Verified
On June 17, 2020 the board voted unanimously "to take the Actuarial Valuation to the membership and vote on the incremental increases," and planned to canvass votes on contribution rate changes in July. [1]
- ✓ Verified
Of 269 members eligible to vote, 196 voted: 191 for Proposed Plan 1 and 5 for the present plan. The board approved the canvass unanimously. [2]
- Votes for
- 191
- Votes against
- 5
- ✓ Verified
The City's finance staff reported the fund's total market value at $193,593,028.87 on December 31, 2019, with 75.42% in stock, 17.72% in bonds and 6.86% in cash. Monthly reports through 2026 noted that employee and employer contributions were made on time and at the correct percentages. [3]
- Market value
- $193,593,029
· Starting point
2019 valuation puts the amortization period at 38.1 years with higher contributions from both sides
The fund's actuaries, Rudd and Wisdom, presented the December 31, 2019 valuation and their study of the rate-of-return assumption. They said the amortization period decreased to 38.1 years with a 0.5% increase in the contribution rate by both the firefighters and the City effective January 1, 2021 and January 1, 2022. The board approved the valuation unanimously.[4]
- ✓ Verified
Rudd and Wisdom, Inc. (fund actuaries): The actuaries explained that the amortization period decreased to 38.1 years with the 0.5% increase of the contribution rate by both the firefighters and the City effective January 1, 2021 and January 1, 2022. [4]
- Amortization years
- 38.1
- ✓ Verified
The minutes do not record the contribution rates before or after the increases or the funded ratio in the 2019 valuation. [4]
- ✓ Verified
The Texas Pension Review Board's plan data, undated as displayed in October 2026, lists a fixed employee contribution rate of 14.00% and an employer rate of 20.82%. [5]
- Employee rate
- 14%
- Employer rate
- 20.82%
· Related development
Board approves the December 31, 2021 valuation
The board approved the 2021 actuarial valuation presented by Rudd and Wisdom. The Texas Comptroller's pension data for that valuation lists an actuarial funded ratio of 111.31%, a market funded ratio of 94.78%, an amortization period of 6 years and a 7.50% assumed return.[6][7]
- ✓ Verified
For the valuation effective December 31, 2021, the Comptroller's data lists an actuarial value of assets of $262,228,770, a market value of $219,849,119, an actuarial funded ratio of 111.31%, a market funded ratio of 94.78%, an amortization period of 6 years and an unfunded liability of $12,112,114. [7]
- Actuarial funded ratio
- 111.31%
- Market funded ratio
- 94.78%
- Amortization years
- 6
· Related development
City-paid actuarial audit finds the 2021 valuation reasonable
In April 2023 the board took up a contract for an actuarial audit; no board approval was needed because the City of Amarillo covered the $25,000 cost. Gallagher Benefit Services reported in August that it could reasonably replicate the principal results and that the December 31, 2021 valuation results were reasonable, with recommendations to strengthen documentation of assumptions and methods. The board approved the audit unanimously.[8][9]
Arthur J. Gallagher & Co. (Gallagher Benefit Services)
- ✓ Verified
The April 19, 2023 minutes record that no board approval was needed for the actuarial audit contract because the City of Amarillo would cover its $25,000 cost. [8]
- Audit cost
- $25,000
- ✓ Verified
Gallagher Benefit Services (actuarial auditor): Gallagher said its actuarial audit "was able to reasonably replicate the principal results" and that it believes the December 31, 2021 valuation results "are reasonable," and made recommendations to strengthen documentation of the actuarial assumptions and methods. [9]
· Related development
Board approves the state-required investment practices evaluation and later a formal response
In May 2023 the board had Wells Fargo Advisors, its investment counselor, complete the Texas Pension Review Board Investment Practices and Performance Evaluation. The board approved the evaluation on August 16, 2023 and a formal response to it on September 20, 2023.[10][9][11]
- ✓ Verified
The board approved having Wells Fargo Advisors complete the Texas Pension Review Board Investment Practices and Performance Evaluation on May 17, 2023, approved the evaluation on August 16, 2023 and approved a formal response to it on September 20, 2023, each unanimously. The minutes do not summarize the evaluation's findings. [10][9][11]
· Related development
Board shifts part of the portfolio into private debt
After its investment counselor recommended adding private debt in an asset allocation study, the board heard presentations from CION Ares (January 2024) and Blue Owl (February 2024) and on March 20, 2024 approved a rebalance of the allocation to fixed income and private debt. Both managers' returns were reported to the board from mid-2024.[12][13][14][15]
· Related development
Board lowers the investment return assumption from 7.5% to 7.35%
Rudd and Wisdom presented the 2024 Review of Experience and Assumptions Report and recommended changes in assumptions for the December 31, 2023 valuation. The board accepted them unanimously, except that it adopted an investment return assumption of 7.35%, down from the 7.5% used before.[16]
- ✓ Verified
The board voted to accept the actuaries' recommended assumptions "except to adopt an investment return assumption of 7.35%, a reduction from the 7.5% that was used in the prior actuarial valuation." [16]
- Return assumption
- 7.35%
· Peak
2023 valuation shows a 5.5-year amortization period
The actuaries said the main change from the prior valuation was the lower 7.35% return assumption and that the fund "continues to be in a very well-funded position with an amortization period of 5.5 years." The board approved the December 31, 2023 valuation unanimously.[17]
- ✓ Verified
Rudd and Wisdom, Inc. (fund actuaries): The actuaries said the fund "continues to be in a very well-funded position with an amortization period of 5.5 years." [17]
- Amortization years
- 5.5
- ✓ Verified
Reported amortization periods: 38.1 years in the December 31, 2019 valuation (with the 2021-2022 contribution increases), 6 years in the December 31, 2021 valuation (Comptroller data) and 5.5 years in the December 31, 2023 valuation. The minutes read do not attribute the change to specific causes. [4][7][17]
· Related development
Board sends a benefit multiplier increase and an ad hoc COLA to a member ballot
The actuaries presented the combined effect of special studies the board had requested: an increase to the benefit formula multiplier effectively eliminating the second benefit tier put in place in 2018, a one-year reduction in DROP minimum age and service, and a version of an ad hoc cost-of-living adjustment (COLA) for retirees. The board voted unanimously to put the multiplier increase and the COLA to a member ballot.[18]
- ✓ Verified
The motion, made by a civilian trustee and passed unanimously, was "to go to ballot for a combination of option 1, increase benefit multiplier and option 3, a COLA." The fund's lawyer said the plan document would be updated after the vote and the DROP eligibility language clarified. [18]
· Resolution
Members approve Pension Plan Amendments 1 and 2
City staff reported that Pension Plan Amendments 1 and 2 passed, and the board accepted the results unanimously. In March 2025 staff told the board qualifying retirees should receive the COLA increase the following month. The Pension Review Board's plan data lists a 3.45% benefit multiplier and an ad hoc COLA provided on January 1, 2025.[19][20][5]
- ✓ Verified
"Amendments 1 and 2 all passed," City staff reported; the minutes do not give the vote counts. [19]
- ✓ Verified
On March 19, 2025 City staff told the board qualifying retirees should be receiving the COLA increase the following month. The Pension Review Board's plan data lists "Ad hoc COLA provided on 1/1/2025" and a Tier 1 formula of 3.45% times years of credited service times final average salary. [20][5]
· Related development
Board adds private infrastructure, placing $10 million with J.P. Morgan and $3 million with Brookfield
After presentations by J.P. Morgan and Brookfield in June 2025, the board amended its investment policy to add a 5% allocation to private infrastructure, moved from domestic equities, lowered the equity maximum to 65% with a 60% target, and approved allocations of $10 million to J.P. Morgan and $3 million to Brookfield.[21][22]
· Related development
Fund's 2024 audit notes two significant internal control deficiencies
Presenting the fund's annual financial report for December 31, 2024, CMMS CPAs & Advisors noted two significant deficiencies in internal controls: non-active census data from the City did not match monthly benefit payment records, and a salary contribution report did not align with a participant's pay stub for the pay period ending December 11, 2024. The auditor reported no disagreements with management. The board approved the report unanimously.[22]
- ✓ Verified
CMMS CPAs & Advisors (fund auditor): The auditor noted finding 2025-001 (census data) and 2025-002 (participant contributions), and said that compared to other funds the fund was in a strong position and performing well. [22]
· Related development
Board replaces its international small-cap manager and adds PIMCO for private debt
The board adopted the actuaries' recommended mortality tables and raised the assumed administrative expense from 0.50% to 0.60%. It replaced the Kayne Anderson Rudnick International Small Cap fund, citing underperformance and a manager change, with the American Funds SMALLCAP World Fund, and approved moving about $8.8 million, $4.4 million from each current private debt manager, to the PIMCO Flexible Credit Fund.[23]
- ✓ Verified
To fund the PIMCO allocation, approximately $4.4 million was to be liquidated from each of the current private debt managers to place approximately $8.8 million with PIMCO; both changes passed unanimously. [23]
- Pimco
- $8,800,000
· Context
Board approves the latest actuarial valuation
After tabling it in July, the board approved the actuarial valuation presented by Rudd and Wisdom, which it had retained in January 2026 at $32,000 for the valuation while planning to look at other firms. The minutes do not record the valuation's funded ratio or amortization period. The investment counselor reported the portfolio had beaten the 7.35% assumption over three and ten years.[24][25]
- ✓ Verified
In January 2026 the board approved continuing with Rudd and Wisdom at $32,000 for the upcoming valuation, despite a proposed 6% fee increase to $34,000 in 2027, and planned to explore competitive options. [24]
- Fee
- $32,000
- ✓ Verified
City finance staff reported a total market value of $275,459,326.84 on July 31, 2026. The investment counselor said the portfolio had outperformed the 7.35% actuarial assumption for the three and ten years. [25]
- Market value
- $275,459,327
Related storylines: Amarillo Hospital District: the 1996 indigent care agreement, its investment fund and the 2036 deadline