To: Board of County Commissioners
Through: Patrick Hernandez, Director, Human Resources
Prepared By:
prepared
Ben Colussy, Retirement Plan Administrator
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presenter
Presenter: Dana Woolfrey, Chief Actuary, Gabriel, Roeder, Smith & Company (GRS) and Krysti Keisel, Consultant, Gabriel, Roeder, Smith & Company (GRS)
Ben Colussy, Retirement Plan Administrator
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Subject:
title
1:30 PM *Annual Arapahoe County Retirement Plan Update
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Purpose and Request:
recommended action
The purpose of this study session is to provide the Board of County Commissioners with an update on the financial condition of the Arapahoe County Retirement Plan. Representatives from Gabriel, Roeder, Smith & Company (GRS), the Plan’s actuary, will present the January 1, 2026, actuarial valuation and discuss the Plan’s funded status, and long-term funding outlook.
As part of this discussion, the Retirement Board is requesting that the Board of County Commissioners consider increasing the County contribution rate by 0.25% effective for 2027. This increase would raise the County contribution rate from 10.0% to 10.25%, while the employee contribution rate would remain at 9.0%
The recommendation reflects the Retirement Board’s ongoing commitment to improving the Plan’s long-term financial sustainability through a balanced approach that includes prudent funding policies and responsible investment management. While the Retirement Board has discussed a long-term goal of gradually increasing employer contributions to 11.0% by 2030, any future recommendations would be subject to review and approval by future Boards of County Commissioners.
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Alignment with Strategic Plan: Economic Resilience and Stability - Support long-term economic resilience through responsible fiscal and investment strategies.
Background and Discussion: The Arapahoe County Retirement Plan provides eligible employees with a lifetime monthly retirement benefit, making it one of the most valuable components of the County’s total compensation package. Arapahoe County is one of only five Colorado counties that continue to offer a traditional defined benefit pension plan.
Investment performance in 2025 was positive, and the Plan’s five-year return exceeded the actuarial assumed rate of 7.25%. However, the funded ratio declined slightly due to actuarial assumption changes, underscoring the importance of a disciplined funding strategy. Despite this decline, the Plan’s outlook remains among the strongest in more than a decade.
The Retirement Board believes that increasing the County contribution rate by 0.25% in 2027 is a prudent step toward strengthening the Plan’s funded status. Even with this increase, Arapahoe County’s contribution rates would remain among the lowest of Colorado counties offering defined benefit pension plans.
Members of the Retirement Board, the Plan’s actuary, investment consultant, legal counsel, and Retirement Plan Administrator will be available to answer questions.
Alternatives: N/A
Fiscal Impact: Estimated $650,000 - $675,000 in 2027 if the County contribution is increased by .25%.
Alignment with Strategic Implementation Strategies: The attached framework helps Arapahoe County institutionalize values-based, transparent decision-making, documenting how we make decisions and carry out actions to achieve the county’s strategic plan.
Staff Recommendation: N/A
Concurrence: Plan’s Actuary and Plan’s Investment Consultant