Exhibit_A_-_Clearwater_Employees'_Pension_Plan_-_GASB_67-68_Report_-_FYE_9-30-2025.pdf

CITY OF CLEARWATER EMPLOYEES’

PENSION PLAN

GASB STATEMENT NOS. 67 AND 68 ACCOUNTING

AND FINANCIAL REPORTING FOR PENSIONS

SEPTEMBER 30, 2025

December 23, 2025

Board of Trustees City of Clearwater Employees’ Pension Plan Clearwater, Florida

Dear Board Members:

This report provides accounting and financial reporting information that is intended to comply with the Governmental Accounting Standards Board (GASB) Statement Nos. 67 and 68 for the City of Clearwater Employees’ Pension Plan (“Plan”). These calculations have been made on a basis that is consistent with our understanding of these Statements.

GASB Statement Nos. 67 and 68 establish accounting and financial reporting standards for state and local government employers who provide their employees (including former employees) pension benefits through a trust.

Our calculation of the liability associated with the benefits described in this report was performed for the purpose of providing reporting and disclosure information that satisfies the requirements of GASB Statement Nos. 67 and 68. The Net Pension Liability is not an appropriate measure for measuring the sufficiency of plan assets to cover the estimated cost of settling the employer’s benefit obligation. The Net Pension Liability is not an appropriate measure for assessing the need for or amount of future employer contributions. A calculation of the plan’s liability for purposes other than satisfying the requirements of GASB Statement Nos. 67 and 68 may produce significantly different results. This report may be provided to parties other than the Board only in its entirety and only with the permission of the Board. GRS is not responsible for unauthorized use of this report.

This report is based upon information, furnished to us by the City, concerning retirement and ancillary benefits, active members, deferred vested members, retirees and beneficiaries, and financial data. This information was checked for internal consistency, but it was not audited. We are not responsible for the accuracy or completeness of the information provided by the City.

This report complements the actuarial valuation report that was provided to the Board of Trustees and should be considered in conjunction with that report. Please see the actuarial valuation report as of January 1, 2025 for additional discussion of the nature of actuarial calculations and more information related to participant data, economic and demographic assumptions, and benefit provisions.

The findings in this report are based on data through January 1, 2025 and financial information through September 30, 2025. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as 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

Board of Trustees December 23, 2025 Page ii 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. The scope of this report does not include an analysis of the potential range of such future measurements.

This report was prepared using our proprietary valuation model and related software which in our professional judgment has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. We performed tests to ensure that the model reasonably represents that which is intended to be modeled.

To the best of our knowledge, the information contained with this report is accurate and fairly represents the actuarial position of the City of Clearwater Employees’ Pension Plan. All calculations have been made in conformity with generally accepted actuarial principles and practices as well as with the Actuarial Standards of Practice issued by the Actuarial Standards Board, and with applicable statutes.

Peter Strong and Trisha Amrose are members of the American Academy of Actuaries (MAAA) and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.

The signing actuaries are independent of the plan sponsor.

This actuarial valuation and/or cost determination was prepared and completed by us or under our direct supervision, and we acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate. In our opinion, the techniques and assumptions used are reasonable and are based on generally accepted actuarial principles and practices. There is no benefit or expense to be provided by the Plan and/or paid from the Plan’s assets for which liabilities or current costs have not been established or otherwise taken into account in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation.

Respectfully submitted, Gabriel, Roeder, Smith & Company

By By Peter N. Strong, FSA, EA, MAAA, FCA Trisha Amrose, EA, MAAA, FCA Senior Consultant and Actuary Consultant and Actuary

Auditor’s Note – This information is presented in draft form for review by the Plan’s auditor. Please let us know if there are any items that the auditor changes so that we may maintain consistency with the Plan’s financial statements.

TABLE OF CONTENTS

Page

Section A Executive Summary

Executive Summary Discussion

Section B Financial Statements

Statement of Pension Expense Statement of Outflows and Inflows Arising from Current Period Statement of Outflows and Inflows Arising from Current and Prior Periods Summary of Remaining Deferred Outflows and Inflows of Resources Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position

Section C Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Schedule of Net Pension Liability Multiyear Schedule of Contributions Multiyear Notes to Schedule of Contributions Schedule of Investment Returns Multiyear

Section D Notes to Financial Statements

Asset Allocation Sensitivity of Net Pension Liability to the Single Discount Rate Assumption Summary of Population Statistics

Section E Summary of Benefits

Section F Actuarial Cost Method and Actuarial Assumptions

Valuation Methods, Entry Age Normal Actuarial Assumptions, Input to Discount Rates, Mortality Assumptions, and

Experience Studies Miscellaneous and Technical Assumptions

Section G The Single Discount Rate

Section H Glossary of Terms http://www.grsconsulting.com/

SECTION A

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

AS OF SEPTEMBER 30, 2025

Actuarial Valuation Date January 1, 2025 Measurement Date of the Net Pension Liabil ity September 30, 2025 Employer's Fiscal Year Ending Date (Reporting Date) September 30, 2025

Membership as of Actuarial Valuation Date Number of

- Retirees and Beneficiaries 1,523

- Inactive, Nonretired Members 91

- Active Members 1,572

- Total 3,186 Covered Payroll 119,421,912$

Net Pension Liability Total Pension Liabil ity 1,257,951,215$ Plan Fiduciary Net Position 1,430,505,499 Net Pension Liabil ity (172,554,284)$ Plan Fiduciary Net Position as a Percentage of Total Pension Liabil ity 113.72% Net Pension Liabil ity as a Percentage of Covered Payroll (144.49)%

Development of the Single Discount Rate Single Discount Rate 6.50% Long-Term Expected Rate of Investment Return 6.50% Long-Term Municipal Bond Rate* 4.90% Last year ending September 30 in the 2025 to 2124 projection period for which projected benefit payments are fully funded 2124

Total Pension Expense (5,301,425)$

Deferred Outflows and Deferred Inflows of Resources by Source to be recognized in Future Pension Expenses Deferred Outflows of Resources Deferred Inflows of Resources

Difference between expected and actual experience 20,845,545$ 63,529$ Changes in assumptions 19,660,069 - Net difference between projected and actual earnings on pension plan investments 57,817,700 144,566,623 Total 98,323,314$ 144,630,152$

*Source: Bond Buyer 20-Bond GO Index as of September 25, 2025. The “20-Bond GO Index” is based on 20 general obligation municipal bonds maturing in 20 years with mixed quality. In describing this index, the Bond Buyer website notes that the bonds’ average credit quality is roughly equivalent to Moody’s Investors Service’s Aa2 rating and Standard & Poor’s Corp.’s AA.

DISCUSSION

Accounting Standard

For pension plans that are administered through trusts or equivalent arrangements, Governmental Accounting Standards Board (GASB) Statement No. 67 establishes standards of financial reporting for pension plans and specifies the required approach for measuring the pension liability. Similarly, GASB Statement No. 68 establishes standards for state and local government employers (as well as non-employer contributing entities) to account for and disclose the net pension liability, pension expense, and other information associated with providing retirement benefits to their employees (and former employees) on their basic financial statements.

The following discussion provides a summary of the information that is required to be disclosed under these accounting standards. A number of these disclosure items are provided in this report. However, certain information, such as notes regarding accounting policies and investments, is not included in this report and the retirement system and/or plan sponsor will be responsible for preparing and disclosing that information to comply with these accounting standards.

Financial Statements

GASB Statement No. 68 requires state or local governments to recognize the net pension liability and the pension expense on their financial statements. The net pension liability is the difference between the total pension liability and the plan’s fiduciary net position. In traditional actuarial terms, this is analogous to the accrued liability less the market value of assets (not the smoothed actuarial value of assets that is often encountered in actuarial valuations performed to determine the employer’s contribution requirement).

The pension expense recognized each fiscal year is equal to the change in the net pension liability from the beginning of the year to the end of the year, not including the impact of employer contributions, adjusted for deferred recognition of the liability and investment experience.

Pension plans are also required to present two financial statements – a statement of fiduciary net position and a statement of changes in fiduciary net position – in accordance with GASB Statement No. 67. The statement of fiduciary net position presents the assets and liabilities of the pension plan at the end of the pension plan’s reporting period. The statement of changes in fiduciary net position presents the additions, such as contributions and investment income, and deductions, such as benefit payments and expenses, and net increase or decrease in the fiduciary net position.

Notes to Financial Statements

GASB Statement No. 68 requires the notes of the employer’s financial statements to disclose the total pension expense, the pension plan’s liabilities and assets, and deferred outflows and inflows of resources related to pensions.

GASB Statement Nos. 67 and 68 require the notes of the financial statements for the employers and pension plans to include certain additional information. The list of disclosure items should include:

• a description of benefits provided by the plan;

• the type of employees and number of members covered by the pension plan;

• a description of the plan’s funding policy, which includes member and employer contribution requirements;

• the pension plan’s investment policies;

• the pension plan’s fiduciary net position, net pension liability, and the pension plan’s fiduciary net position as a percentage of the total pension liability;

• the net pension liability using a discount rate that is 1% higher and 1% lower than used to calculate the total pension liability and net pension liability for financial reporting purposes;

• significant assumptions and methods used to calculate the total pension liability;

• inputs to the discount rates;

• certain information about mortality assumptions and the dates of experience studies; and

• annual money-weighted rate of return.

Required Supplementary Information

GASB Statement No. 67 requires a 10-year fiscal history of:

• sources of changes in the net pension liability;

• information about the components of the net pension liability and related ratios, including the pension plan’s fiduciary net position as a percentage of the total pension liability, and the net pension liability as a percent of covered payroll; and

• comparison of the actual employer contributions to the actuarially determined contributions based on the plan’s funding policy.

Timing of the Valuation

An actuarial valuation to determine the total pension liability is required to be performed at least every two years. The net pension liability and pension expense should be measured as of the pension plan’s fiscal year end (measurement date) on a date that is within the employer’s prior fiscal year. If the actuarial valuation used to determine the total pension liability is not calculated as of the measurement date, the total pension liability is required to be rolled forward from the actuarial valuation date to the measurement date.

The total pension liability shown in this report is based on an actuarial valuation performed as of January 1, 2025 and a measurement date of September 30, 2025. The actuarial valuation of the liabilities was determined as of January 1, 2025 (based on the actuarial valuation results as reported in the January 1, 2025 actuarial valuation report dated May 7, 2025) and rolled forward to the September 30, 2025 measurement date.

Single Discount Rate

Projected benefit payments are required to be discounted to their actuarial present values using a Single Discount Rate that reflects (1) a long-term expected rate of return on pension plan investments (to the extent that the plan’s fiduciary net position is projected to be sufficient to pay benefits) and (2) tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met).

For the purpose of this valuation, the expected rate of return on pension plan investments is 6.50%; the municipal bond rate is 4.90% (based on the weekly rate closest to but not later than the measurement date of the Bond Buyer “20-Bond GO Index,” which is an index of 20 general obligation municipal bonds maturing in 20 years with an average credit quality roughly equivalent to Moody’s Investors Service’s Aa2 rating and Standard & Poor’s Corp.’s AA); and the resulting Single Discount Rate is 6.50%.

SECTION B

FINANCIAL STATEMENTS

Auditor’s Note – This information is presented in draft form for review by the Plan’s auditor.

Please let us know if there are any items that the auditor changes so that we may maintain consistency with the Plan’s financial statements.

PENSION EXPENSE UNDER GASB STATEMENT NO. 68

FISCAL YEAR ENDED SEPTEMBER 30, 2025

Pension Expense

1. Service Cost 25,580,465$

2. Interest on the Total Pension Liabil ity 77,187,235

3. Current-Period Benefit Changes 0

4. Employee Contributions (made negative for addition here) (11,031,155)

5. Projected Earnings on Plan Investments (made negative for addition here) (86,054,299)

6. Pension Plan Administrative Expense 339,119

7. Other Changes in Plan Fiduciary Net Position 0

8. Recognition of Outflow (Inflow) of Resources due to Liabil ities 11,415,590

9. Recognition of Outflow (Inflow) of Resources due to Assets (22,738,380)

10. Total Pension Expense (5,301,425)$

STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT REPORTING PERIOD

A. Outflows (Inflows) of Resources due to Liabilities

1. Difference between expected and actual experience of the Total Pension Liabil ity (gains) or losses 4,723,408$

2. Assumption Changes (gains) or losses 23,278,564$

3. Recognition period for Liabil ities: Average of the expected remaining service l ives of all members (active and inactive) {in years} 4.7

4. Outflow (Inflow) of Resources to be recognized in the current pension expense for the Difference between expected and actual experience of the Total Pension Liabil ity 1,004,980$

5. Outflow (Inflow) of Resources to be recognized in the current pension expense for Assumption Changes 4,952,886$

6. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Liabil ities 5,957,866$

7. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for the difference between expected and actual experience of the Total Pension Liabil ity 3,718,428$

8. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for Assumption Changes 18,325,678$

9. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Liabil ities 22,044,106$

B. Outflows (Inflows) of Resources due to Assets

1. Net difference between projected and actual earnings on pension plan investments (gains) or losses (42,315,199)$

2. Recognition period for Assets {in years} 5.0

3. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Assets (8,463,040)$

4. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Assets (33,852,159)$

STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT AND PRIOR REPORTING PERIODS

A. Outflows and Inflows of Resources due to Liabilities and Assets to be recognized in Current Pension Expense

Outflows Inflows Net Outflows of Resources of Resources of Resources

1. Due to Liabilities 14,755,007$ 3,339,417$ 11,415,590$

2. Due to Assets 57,817,698 80,556,078 (22,738,380)

3. Total 72,572,705$ 83,895,495$ (11,322,790)$

B. Outflows and Inflows of Resources by Source to be recognized in Current Pension Expense

Outflows Inflows Net Outflows of Resources of Resources of Resources

1. Differences between expected and actual experience 8,473,040$ 70,587$ 8,402,453$

2. Assumption Changes 6,281,967 3,268,830 3,013,137

3. Net Difference between projected and actual earnings on pension plan investments 57,817,698 80,556,078 (22,738,380)

4. Total 72,572,705$ 83,895,495$ (11,322,790)$

C. Deferred Outflows and Deferred Inflows of Resources by Source to be recognized in Future Pension Expenses

Deferred Outflows Deferred Inflows Net Deferred Outflows of Resources of Resources of Resources

1. Differences between expected and actual experience 20,845,545$ 63,529$ 20,782,016$

2. Assumption Changes 19,660,069 - 19,660,069

3. Net Difference between projected and actual earnings on pension plan investments 57,817,700 144,566,623 (86,748,923)

4. Total 98,323,314$ 144,630,152$ (46,306,838)$

D. Deferred Outflows and Deferred Inflows of Resources by Year to be recognized in Future Pension Expenses

Year Ending Net Deferred Outflows September 30 of Resources

2026 23,435,313$ 2027 (36,187,602) 2028 (29,262,018) 2029 (4,292,531) 2030 -

Thereafter - Total (46,306,838)$

SUMMARY OF REMAINING DEFERRED

OUTFLOWS AND INFLOWS OF RESOURCES

Date Recognition Original Years Remaining Amount

Recognized in Established Source Period (years) Amount Remaining Amount Current Expense

9/30/2021 Liability Experience 5.0 166,476$ 1.0 33,296$ 33,296$ 9/30/2022 Investment Experience 5.0 289,088,492 2.0 115,635,398 57,817,698 9/30/2022 Assumption Changes 4.9 6,156,036 1.9 2,387,034 1,256,334 9/30/2023 Liability Experience 4.8 17,713,076 2.8 10,332,628 3,690,224 9/30/2024 Assumption Change 4.8 349,185 3.8 276,438 72,747 9/30/2024 Liability Experience 4.8 17,973,793 3.8 14,229,253 3,744,540 9/30/2025 Assumption Changes 4.7 23,278,564 4.7 23,278,564 4,952,886 9/30/2025 Liability Experience 4.7 4,723,408 4.7 4,723,408 1,004,980

SUBTOTAL: 359,449,030 170,896,019 72,572,705

9/30/2021 Investment Experience 5.0 (158,205,723) 1.0 (31,641,143) (31,641,143) 9/30/2021 Assumption Changes 5.0 (16,344,158) 1.0 (3,268,830) (3,268,830) 9/30/2022 Liability Experience 4.9 (345,877) 1.9 (134,116) (70,587) 9/30/2023 Investment Experience 5.0 (53,206,105) 3.0 (31,923,663) (10,641,221) 9/30/2024 Investment Experience 5.0 (149,053,370) 4.0 (119,242,696) (29,810,674) 9/30/2025 Investment Experience 5.0 (42,315,199) 5.0 (42,315,199) (8,463,040)

SUBTOTAL: (419,470,432) (228,525,647) (83,895,495)

GRAND TOTAL: (60,021,402) (57,629,628) (11,322,790)

Deferred Outflows of Resources

Deferred Inflows of Resources

STATEMENT OF FIDUCIARY NET POSITION

AS OF SEPTEMBER 30, 2025

Assets

Cash and Deposits 26,250,422$

Receivables Accounts Receivable - Sale of Investments 1,707,345$ Accrued Interest and Other Dividends 4,413,811 Contributions - Accounts Receivable - Other 39,016

Total Receivables 6,160,172$

Investments Fixed Income 367,566,294$ Domestic Equities 680,374,535 International Equities 138,422,075 Real Estate 109,339,915 Other/Alternatives 106,804,917

Total Investments 1,402,507,736$

Total Assets 1,434,918,330$

Liabilities

Payables Accounts Payable - Purchase of Investments 2,870,617$ Accrued Expenses 830,435 Accounts Payable - Other 711,779

Total Liabilities 4,412,831$

Net Position Restricted for Pensions 1,430,505,499$

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FOR YEAR ENDED SEPTEMBER 30, 2025

Additions

Contributions Employer 15,211,192$ Employee 11,031,155 State 12,000

Total Contributions 26,254,347$

Investment Income Net Appreciation in Fair Value of Investments 112,867,710$ Interest, Dividends and Other Income 23,273,471 Less Investment Expense (7,771,683)

Net Investment Income 128,369,498$

Other -$ Total Additions 154,623,845$

Deductions

Benefit Payments 67,899,736$ Refunds of Employee Contributions 1,568,089 Pension Plan Administrative Expense 339,119 Other -

Total Deductions 69,806,944$

Net Increase in Net Position 84,816,901$

Net Position Restricted for Pensions Beginning of Year 1,345,688,598$ End of Year 1,430,505,499$

SECTION C

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

Fiscal year ending September 30, 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016

Total Pension Liability Service Cost 25,580,465$ 22,781,423$ 19,874,939$ 18,718,516$ 18,412,162$ 16,934,015$ 15,240,018$ 15,065,668$ 14,770,113$ 15,173,452$ Interest on the Total Pension Liabil ity 77,187,235 73,902,449 70,094,980 68,447,973 68,636,343 66,061,748 65,042,520 62,567,359 61,053,620 58,867,669 Benefit Changes - - 11,732,652 - - 6,428,217 - - - - Difference between Expected and Actual Experience 4,723,408 17,973,793 17,713,076 (345,877) 166,476 5,473,272 (6,533,554) 6,780,611 (8,071,653) 6,832,090 Assumption Changes 23,278,564 349,185 - 6,156,036 (16,344,158) 11,877,993 25,495,302 - 381,755 (4,748,597) Benefit Payments (67,899,736) (63,804,511) (61,062,860) (57,321,813) (56,274,207) (50,966,931) (49,687,426) (46,860,103) (44,490,793) (42,069,828) Refunds (1,568,089) (1,269,107) (1,354,890) (1,772,430) (1,222,375) (1,177,456) (1,017,365) (892,181) (1,366,008) (1,060,187) Net Change in Total Pension Liability 61,301,847 49,933,232 56,997,897 33,882,405 13,374,241 54,630,858 48,539,495 36,661,354 22,277,034 32,994,599

Total Pension Liability - Beginning 1,196,649,368 1,146,716,136 1,089,718,239 1,055,835,834 1,042,461,593 987,830,735 939,291,240 902,629,886 880,352,852 847,358,253 Total Pension Liability - Ending (a) 1,257,951,215$ 1,196,649,368$ 1,146,716,136$ 1,089,718,239$ 1,055,835,834$ 1,042,461,593$ 987,830,735$ 939,291,240$ 902,629,886$ 880,352,852$

Plan Fiduciary Net Position Contributions - Employer 15,211,192$ 14,203,472$ 12,659,053$ 11,912,374$ 11,917,353$ 10,364,100$ 10,901,645$ 10,650,462$ 11,898,912$ 13,178,874$ Contributions - Employer (from State) 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 Contributions - Non-Employer Contributing Entity - - - - - - - - - - Contributions - Employee 11,031,155 9,721,164 8,941,002 8,591,715 8,013,951 7,925,645 7,326,649 7,127,965 7,004,943 6,706,567 Net Investment Income 128,369,498 223,353,546 122,246,393 (204,174,834) 231,147,434 102,588,458 53,143,676 93,775,837 102,287,929 88,498,386 Benefit Payments (67,899,736) (63,804,511) (61,062,860) (57,321,813) (56,274,207) (50,966,931) (49,687,426) (46,860,103) (44,490,793) (42,069,828) Refunds (1,568,089) (1,269,107) (1,354,890) (1,772,430) (1,222,375) (1,177,456) (1,017,365) (892,181) (1,366,008) (1,060,187) Administrative Expense (339,119) (352,172) (355,225) (322,664) (340,629) (288,079) (335,282) (343,115) (295,301) (297,984) Other - - - - - - - - - - Net Change in Plan Fiduciary Net Position 84,816,901 181,864,392 81,085,473 (243,075,652) 193,253,527 68,457,737 20,343,897 63,470,865 75,051,682 64,967,828 Plan Fiduciary Net Position - Beginning 1,345,688,598 1,163,824,206 1,082,738,733 1,325,814,385 1,132,560,858 1,064,103,121 1,043,759,224 980,288,359 905,236,677 840,268,849 Plan Fiduciary Net Position - Ending (b) 1,430,505,499$ 1,345,688,598$ 1,163,824,206$ 1,082,738,733$ 1,325,814,385$ 1,132,560,858$ 1,064,103,121$ 1,043,759,224$ 980,288,359$ 905,236,677$

Net Pension Liability - Beginning (149,039,230) (17,108,070) 6,979,506 (269,978,551) (90,099,265) (76,272,386) (104,467,984) (77,658,473) (24,883,825) 7,089,404 Net Pension Liability - Ending (a) - (b) (172,554,284) (149,039,230) (17,108,070) 6,979,506 (269,978,551) (90,099,265) (76,272,386) (104,467,984) (77,658,473) (24,883,825) Plan Fiduciary Net Position as a Percentage of Total Pension Liability 113.72 % 112.45 % 101.49 % 99.36 % 125.57 % 108.64 % 107.72 % 111.12 % 108.60 % 102.83 % Covered Payroll 119,421,912$ 110,571,974$ 101,349,015$ 97,193,423$ 90,810,283$ 89,845,375$ 82,998,580$ 80,852,451$ 79,558,524$ 76,942,048$ Net Pension Liability as a Percentage of Covered Payroll (144.49)% (134.79)% (16.88)% 7.18 % (297.30)% (100.28)% (91.90)% (129.21)% (97.61)% (32.34)%

SCHEDULE OF THE NET PENSION LIABILITY

Plan Fiduciary Total Net Position Net Pension Liability

FY Ending Pension Plan Fiduciary Net Pension as a % of Total Covered as a % of September 30, Liability Net Position Liability Pension Liability Payroll Covered Payroll

2016 880,352,852$ 905,236,677$ (24,883,825)$ 102.83% 76,942,048$ (32.34)% 2017 902,629,886 980,288,359 (77,658,473) 108.60% 79,558,524 (97.61)% 2018 939,291,240 1,043,759,224 (104,467,984) 111.12% 80,852,451 (129.21)% 2019 987,830,735 1,064,103,121 (76,272,386) 107.72% 82,998,580 (91.90)% 2020 1,042,461,593 1,132,560,858 (90,099,265) 108.64% 89,845,375 (100.28)% 2021 1,055,835,834 1,325,814,385 (269,978,551) 125.57% 90,810,283 (297.30)% 2022 1,089,718,239 1,082,738,733 6,979,506 99.36% 97,193,423 7.18% 2023 1,146,716,136 1,163,824,206 (17,108,070) 101.49% 101,349,015 (16.88)% 2024 1,196,649,368 1,345,688,598 (149,039,230) 112.45% 110,571,974 (134.79)% 2025 1,257,951,215 1,430,505,499 (172,554,284) 113.72% 119,421,912 (144.49)%

SCHEDULE OF CONTRIBUTIONS

Actuarially Contribution Actual Contribution FY Ending Determined Actual Deficiency Covered as a % of

September 30, Contribution Contribution (Excess) Payroll Covered Payroll

2016 8,767,703$ 13,190,874$ (4,423,171)$ 76,942,048$ 17.14% 2017 8,944,103 11,910,912 (2,966,809) 79,558,524 14.97% 2018 8,659,427 10,662,462 (2,003,035) 80,852,451 13.19% 2019 8,813,297 10,913,645 (2,100,348) 82,998,580 13.15% 2020 9,720,956 10,376,100 (655,144) 89,845,375 11.55% 2021 11,534,013 11,929,353 (395,340) 90,810,283 13.14% 2022 11,412,994 11,924,374 (511,380) 97,193,423 12.27% 2023 12,799,094 12,671,053 * 128,041 * 101,349,015 12.50% 2024 13,550,484 14,215,472 (664,988) 110,571,974 12.86% 2025 16,244,745 15,223,192 * 1,021,553 * 119,421,912 12.75%

* A portion of the Plan's Credit Balance was applied to meet the remainder of the actuarially determined contribution for the fiscal years ending September 30, 2023 and September 30, 2025.

NOTES TO SCHEDULE OF CONTRIBUTIONS

Valuation Date: January 1, 2024 Notes Actuarially determined contributions are calculated as of January 1, which is nine months prior to the beginning of the fiscal year in which contributions are reported.

Methods and Assumptions Used to Determine Contribution Rates:

Actuarial Cost Method Entry Age Normal Amortization Method Level Dollar, Closed Remaining Amortization Period 25 years (longest remaining period); 10 years (single equivalent period) Asset Valuation Method 5-year smoothed market; 20% corridor Inflation 2.40% Salary Increases 3.50% to 9.00%, depending on employment classification and service, including inflation.

Investment Rate of Return 6.50% Retirement Age Experience-based table of rates that are specific to the employment classification and type of eligibil ity condition.

Mortality Hazardous Duty Employees: PUB-2010 Headcount Weighted Safety Healthy Employee Mortality Table (for pre-retirement mortality) and the PUB-2010 Headcount Weighted Safety Healthy Retiree Mortality Table (for post-retirement mortality), with separate rates for males and females and ages set forward one year, with mortality improvements projected to all future years after 2010 using Scale MP-2018. For males, the base mortality rates for both pre-retirement and post-retirement mortality are based on the Below Median Healthy tables. These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) in their July 1, 2023 valuation, as mandated by Chapter 112.63, Florida Statutes.

Nonhazardous Duty Employees: PUB-2010 Headcount Weighted General Below-Median Employee Mortality Table (for pre-retirement mortality) and the PUB-2010 Headcount Weighted General Below-Median Healthy Retiree Mortality Table (for postretirement mortality), with separate rates for males and females and mortality improvements projected to all future years after 2010 using Scale MP-2018. For males, the base mortality rates are set back one year. These are the same rates currently in use for Regular (other than K- 12 School Instructional Personnel) members of the Florida Retirement System (FRS) in their July 1, 2023 valuation, as mandated by Chapter 112.63, Florida Statutes.

NOTES TO SCHEDULE OF CONTRIBUTIONS (CONTINUED)

Other Information:

Notes Since the prior valuation as of January 1, 2023, the assumed rates of salary increase, retirement, withdrawal, and disabil ity were revised based on a 5‐year experience study performed for the Plan. Please see the Actuarial Assumptions and Cost Method subsection of the January 1, 2024 Actuarial Valuation Report, dated May 6, 2024, as well as the Experience Investigation for the Five Years Ended December 31, 2022, dated September 29, 2023, for additional information on the revised assumptions. The new assumptions were adopted by the Pension Board for initial use in the January 1, 2024 Actuarial Valuation Report.

SCHEDULE OF INVESTMENT RETURNS

FY Ending September 30, 2016 10.63 % 2017 11.28 % 2018 9.69 % 2019 5.11 % 2020 9.73 % 2021 20.61 % 2022 (15.65)% 2023 11.47 % 2024 19.35 % 2025 9.74 %

* Annual money-weighted rate of return, net of investment expenses, as provided by the Investment Consultant.

Annual Return*

SECTION D

NOTES TO FINANCIAL STATEMENTS

Long-Term Expected Return on Plan Assets

The assumed rate of investment return was adopted by the Plan’s trustees after considering input from the plan’s investment consultant and actuary. Additional information about the assumed rate of investment return is included in our actuarial valuation report as of January 1, 2025 and the January 1, 2018 – December 31, 2022 five-year experience study. The assumed rate of investment return falls within a reasonable range of the long-term expected rate of return.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. For each major asset class that is included in the pension plan’s target asset allocation as of September 30, 2025, these best estimates are summarized in the following table:

ASSET ALLOCATION

Asset Class

Core Fixed Income 28% 2.20% 0.62% Global Equity 5% 4.80% 0.24% U.S. Large Cap Equities 26% 5.55% 1.44% U.S. Mid Cap Equities 7% 5.30% 0.37% U.S. Small Cap Equities 6% 4.80% 0.29% International Equities 10% 5.05% 0.51% Emerging Markets Equities 3% 4.80% 0.14% Private Real Estate and REITS 15% 6.80% 1.02% Total 100% 4.63% Expected Inflation (Per Investment Consultant) 2.20% Total Expected Return 6.83%

Allocation-Weighted Long-Term Expected Real Rate of ReturnTarget Allocation

Long-Term Expected Real Rate of Return

The figures in the above table were based on information supplied by the Investment Consultant.

Gabriel, Roeder, Smith & Company does not provide investment advice.

Single Discount Rate

A Single Discount Rate of 6.50% was used to measure the total pension liability. This Single Discount Rate was based on the expected rate of return on pension plan investments of 6.50%.

The projection of cash flows used to determine this Single Discount Rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Regarding the sensitivity of the net pension liability to changes in the Single Discount Rate, the following presents the plan’s net pension liability, calculated using a Single Discount Rate of 6.50%, as well as what the plan’s net pension liability would be if it were calculated using a Single Discount Rate that is one percent lower or one percent higher:

SENSITIVITY OF NET PENSION LIABILITY

TO THE SINGLE DISCOUNT RATE ASSUMPTION

Current Single Discount

1% Decrease Rate Assumption 1% Increase 5.50% 6.50% 7.50%

($12,161,623) ($172,554,284) ($304,823,048)

SUMMARY OF POPULATION STATISTICS

(AS OF JANUARY 1, 2025)

Inactive Plan Members or Beneficiaries Currently Receiving Benefits 1,523 Inactive Plan Members Entitled to But Not Yet Receiving Benefits 91 Active Plan Members 1,572 Total Plan Members 3,186

SECTION E

SUMMARY OF BENEFITS

SUMMARY OF BENEFITS

A. Ordinances

The Plan was established under the Code of Ordinances for the City of Clearwater, Florida, Chapter 2, Article V, Division 3 and was most recently amended under Ordinance No. 9620-22 passed and adopted on November 17, 2022. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes (F.S.) and the Internal Revenue Code.

B. Effective Date

Restated Plan Effective Date: January 1, 2013 (previous restated Plan Effective Date was January 1, 1996).

C. Plan Year

January 1 through December 31.

D. Type of Plan

Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer plan.

E. Eligibility Requirements

All full-time permanent employees of the City are required to participate and become participants on their date of hire.

F. Grandfathered Members

Members who are eligible for normal retirement as of January 1, 2013 are grandfathered in the plan provisions in effect before Ordinance No. 8333-12.

G. Credited Service

Credited Service is measured as the total number of years and fractional parts of years from the date of employment to the date of termination or retirement. No service is credited for any periods of employment for which a participant received a refund of their contributions.

H. Compensation

The total compensation for services rendered to the City reportable on the participant’s W- 2 form, plus all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions or salary reductions, but excluding any lump sum payments of unused vacation and sick leave, pay for off-duty employment, and clothing, car or meal allowances.

Effective January 1, 2013: For non-grandfathered hazardous duty members, the amount of overtime included in Compensation is limited to 300 hours per year; For non-grandfathered non-hazardous duty members, Compensation excludes overtime and additional pay above the base rate of pay.

I. Average Monthly Compensation (AMC)

One-twelfth of the average of Compensation during the highest 5 years out of the last 10 years preceding termination or retirement.

J. Normal Retirement

Eligibility: For Non-Hazardous Duty Employment

A participant hired before January 1, 2013 may retire on the first day of the month coincident with or next following the earliest of:

(1) age 55 with 20 years of Credited Service, or

(2) 30 years of Credited Service regardless of age, or

(3) age 65 with 10 years of Credited Service.

A participant hired on or after January 1, 2013 may retire on the first day of the month coincident with or next following the earliest of:

(1) age 60 with 25 years of Credited Service, or

(2) age 65 with 5 years of Credited Service

For Hazardous Duty Employment-Police Officers and Firefighters

A participant may retire on the first day of the month coincident with or next following the earlier of:

(1) age 55 with 10 years of Credited Service, or

(2) 20 years of Credited Service regardless of age.

Benefit: 2.75% of AMC multiplied by years of Credited Service.

For Non-Hazardous Duty participants hired on or after January 1, 2013, 2.00% of AMC multiplied by years of Credited Service through September 30, 2022 plus 2.50% of AMC multiplied by years of Credited Service after September 30, 2022.

Normal Form of Benefit: For Non-Hazardous Duty Employment (Non-Grandfathered)

A monthly annuity is paid for the life of the participant.

For Hazardous Duty Employment-Police Officers and Firefighters (and Grandfathered Non-Hazardous Duty Employment)

A monthly annuity is paid for the life of the participant. After the participant’s death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available.

COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively.

K. Early Retirement

Eligibility: Police Officers and Firefighters may elect to retire earlier than the Normal

Retirement Eligibility upon the attainment of age 50 with 10 years of Credited Service.

Benefit: The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early Retirement date precedes age 55.

of Benefit: A monthly annuity is paid for the life of the participant. After the participant’s death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters

L. Delayed Retirement

Same as Normal Retirement taking into account Compensation earned and service credited until the date of actual retirement.

M. Service Connected Disability

Eligibility: Any participant who becomes totally and permanently disabled due to an illness or injury contracted in the line of duty and is deemed to be unable to perform useful and efficient service to the City is immediately eligible for a disability benefit.

Benefit: For Non-Hazardous Duty Employment

Participant’s accrued Normal Retirement Benefit taking into account

Compensation earned and service credited until the date of disability.

Benefit is guaranteed to be no less than 42% of the participant’s AMC (66 2/3% of the participant’s AMC if grandfathered). Disability benefits, when combined with Worker’s Compensation benefits, cannot exceed and will be limited to 100% of the participant’s AMC on the date of disability.

For Hazardous Duty Employment-Police Officers and Firefighters

Participant’s accrued Normal Retirement Benefit taking into account

Compensation earned and service credited until the date of disability.

Benefit is guaranteed to be no less than 66 2/3% of the participant’s AMC.

Disability benefits, when combined with Worker’s Compensation benefits, cannot exceed and will be limited to 100% of the participant’s AMC on the date of disability.

a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters

N. Non-Service Connected Disability

Eligibility: Any Hazardous Duty participant who has 10 or more years of Credited

Service or Non-Hazardous Duty participant who has 5 or more years of Credited Service, becomes totally and permanently disabled, and is deemed to be unable to perform useful and efficient service to the City is immediately eligible for a disability benefit.

Benefit: Participant’s accrued Normal Retirement Benefit taking into account

Compensation earned and service credited until the date of disability.

Disability benefits, when combined with Worker’s Compensation benefits, cannot exceed and will be limited to 100% of the participant’s AMC on the date of disability.

a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters

O. Death in the Line of Duty

Eligibility: Any participant whose employment is terminated by reason of death in the line of duty is eligible for survivor benefits.

Benefit: Beneficiary will be paid the participant’s accrued benefit based upon

Credited Service and AMC as of the date of death. Benefit is guaranteed to be no less than 66 2/3% of the participant’s AMC.

of Benefit: 100% of the participant’s accrued benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters.

grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters

In lieu of the benefits described above, the participant’s beneficiary can elect to receive a refund of participant’s accumulated contributions with interest.

P. Other Pre-Retirement Death

Eligibility: Any Hazardous Duty participant who dies with 10 or more years of Credited Service or Non-Hazardous Duty participant who dies with 5 or more years of Credited Service is eligible for survivor benefits.

Benefit: Beneficiary will be paid the participant’s accrued benefit based upon

Credited Service and AMC as of the date of death.

Normal Form of Benefit: 100% of the participant’s accrued benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters.

grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters

In lieu of the benefits described above, a participant’s beneficiary can elect to receive a refund of the participant’s accumulated contributions with interest. Accumulated contributions, plus interest, will be refunded for all Hazardous Duty participants with less than 10 years of Credited Service or Non-Hazardous Duty participants with less than 5 years of Credited Service.

Q. Post-Retirement Death

Benefit determined by the form of benefit elected upon retirement.

R. Optional Forms

In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are a Single Life Annuity, a 10 Year Certain and Life Annuity, or the 50%, 66 2/3% (for police officers and firefighters), 75% or 100% Joint and Survivor options. Members may also elect a partial lump sum equal to 10%, 20%, or 30% of the value of the normal retirement benefit with the remaining monthly retirement benefit reduced accordingly.

S. Vested Termination

Eligibility: A participant has earned a non-forfeitable right to Plan benefits after the completion of 10 years of Credited Service for Hazardous Duty or 5 years of Credited Service for Non-Hazardous Duty provided employee contributions are not refunded.

Vesting is determined in accordance with the following tables.

Hazardous Duty Members

Years of Credited Service

% of Normal Retirement

Benefits Less Than 10 10 or more

0% 100%

Non-Hazardous Duty Members

Years of Credited

% of Normal Retirement

Benefits Less Than 5 5 or more

0% 100%

Benefit: The participant’s accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the member’s Normal Retirement date.

Alternatively, police officers and firefighters may elect to receive an actuarially reduced Early Retirement Benefit any time after age 50.

a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters

Hazardous Duty participants with less than 10 years of Credited Service and Nonhazardous Duty participants with less than 5 years of Credited Service will receive a refund of their own accumulated contributions with interest.

T. Refunds

Eligibility: All Hazardous Duty members terminating employment with less than 10 years of Credited Service and Nonhazardous Duty members terminating employment with less than 5 years of Credited Service are eligible.

Optionally, vested members may elect a refund in lieu of the vested benefits otherwise due.

Benefit: Refund of the member’s contributions with 5% simple interest paid in a single lump sum.

U. Member Contributions

8% of Compensation for Non-Hazardous Duty participants.

10% of Compensation for Hazardous Duty participants (8% of Compensation if grandfathered).

V. Employer Contributions

Each plan year, the Employer must contribute a minimum of 7% of the Compensation of all employees participating in the plan, plus any additional amount determined by the actuary needed to fund the plan properly according to State laws.

W. Cost of Living Increases

1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. For Police Officers and Firefighters, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers and Firefighters employed by the City on or after January 1, 2020 and October 1, 2022, respectively.

X. 13th Check

Not Applicable

Y. Deferred…