Clermont Police Officers' Retirement Plan and Trust

Clermont Police Officers' Retirement Plan and Trust

The Clermont Police Officers' Retirement Plan and Trust was established by the City of Clermont, Florida, to provide retirement, disability, and survivor benefits exclusively to its police officers. Governed by a board of trustees and subject to city ordinance, the plan operates under Chapter 185 of the Florida Statutes — legislation that sets minimum benefit standards and funding requirements for municipal police pension funds. The underlying wealth is sourced from mandatory employee contributions, city ad valorem tax revenue, and state insurance premium tax rebates distributed annually. Despite the rise of 401(a)-style defined contribution alternatives for Florida municipal employees, Clermont has maintained its traditional defined benefit structure for police officers, prioritizing income certainty over portability. The plan’s investment strategy reflects the conservative, liability-driven posture typical of small municipal pension funds. The portfolio is allocated primarily to domestic large-cap equities, investment-grade fixed income, and some private markets exposure, often through external managers. Like many Florida municipal pension plans, it receives annual actuarial valuations — typically from firms such as Foster & Foster or Gabriel, Roeder, Smith & Company — which set the assumed rate of return (frequently around 7.0%) and dictate the required annual municipal contribution. Direct co-investments or club deals are absent; the plan deploys capital through institutional fund commitments and separately managed accounts, with no known permanent staff dedicated to origination. As of the most recent public records, the plan's trustees include three city officials, two police officer representatives, and a fifth member appointed by the city council, per Chapter 185 requirements. The board meets at least quarterly in Clermont, Florida. The fund’s total asset value is not regularly disclosed to the public, though Florida municipal pension funds of this size typically hold between $5 million and $50 million in assets. In September 2022, the board would have received its annual actuarial valuation report, setting the contribution rate for the upcoming fiscal year — the most significant annual operational event for any fund of this type. The plan’s structural distinction is its lock-in to the Chapter 185 statutory framework — a feature that creates both stability and rigidity. Unlike corporate or private-sector pension vehicles, the Clermont Police Officers' Pension Board cannot unilaterally amend benefit accrual rates, vesting periods, or the fact of its existence without a collective bargaining agreement and city council ordinance. This creates an investment horizon that must match a liability stream stretching decades into the future, fostering a deeply conservative allocation model that subjugates return-seeking to the demands of actuarial certainty.