HomeMy WebLinkAboutDocumentation_Workshop_Tab 01_12/03/2010VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2009
ANNUAL F~-RPLOYER CONTRIBUITON IS DE'I~3RMIN$D BY THIS VALUATION FOR TIC
PLAN YEARS ENDING SBPTTMBE1t 30, 2010 AND SEPTEMBER 30, 2011
~~
GRS
Deoetnber 2, 2009
Board of Trustees
Village of Tequesta Public Safety Ot~cers
Pension Tn>9t Fund
Tequesta, Florida
Dear Board Mexnbets:
We are pleased to ps~esent our October 1, 2009 A,quacial Vahretion Repast for the Plan. The purpose of the
Report is i4 ad forth requited contribution levels, to disclose plan assets sod actuarial liabilities, to cornsneat
on funding ptogias and to provide supporting iofasmation rrgardittg the operation of the Plan. This Report
is also designed to comply with tnquit+emeats of the Stsse.
The valuation 'was paforcned os< the basis of anployce, retiree and 5nancial infanmetiasl anpplied by the
City. Although errs did not audit this information, it was reviewed far rasonebleaeas end ootnpatability to
Pn~ Y'~
The benefits valued are otnlined at the asd of the Report. Acbrarisl asesmaptians and the aottiarial poet
method are also descn'bod herein. Atry changes in benefits, assumption or methods are desoribed is the
first section.
As indicated below, the wdersigaed is a Member of the American Acsxlemy of Actuaries (MAAA) and
meets the Quaiificsation Standards of tlm Acadany of Acdvmies to reader the actuarial opinion bereio.
We will be pleased to answer any questions pertaining to the valuation and to mad with you to r+cview this
Report.
Respectfl,lly submitted.
GABRIEL, ROF.DIBR, 5MTTH AND COMPANY
~ _ ~t ~
Step PaUmquist, MAAA, FCA Duane Sowison, FSA, EA
Enrolled Actuary No. 0&1 S60 Enrolled A+cttrary No. 08169
Statement by EaroUed Achtary
This acgmrial valuation a~lcn coat dcxamination was prepared and completed by me or ~mder my
diroct supervision, ~d I ackaowledge respo~'bility for the results. To the best of my lmowled~ the
results are complete and aaurmte. In my opinion,, the terimques and assrunptions need are reasonab~, meet
the requiremdnts and irneat of Part VII, Chapter 1 I2, nlorida Statutes, and are basod on generally aooeptod
acxnarial principles and pnaaices. That is no benefit err expanse to be pmvidad by the plan and/or paid.
fiom the plans seeds for which liabilities or canrrrut costs have not bem establishod or otherwise taloea i~o
acoormt in the vahuaion. All known events err tn+mds which may require a material increase in p~ coats or
required contribution riles have ban taken into acxam~ in the valuation.
,~~e..~
,p ~-
Date
o:;-~s6o
Enrolhneot Ntunber
GRS
TAHLE OF CONTENTS
A 1. Discussion of Valuation Results 1
2. Chapter Revenue 3
B Valuation Results
1. Sunmc~ary of Valuation Results 4
2. Actuarial Value of Benefits and Assets 7
3. Derivation of Ermpioyex Normal Coat 10
4. Liquidation of Unfirmdod Liability 16
S. Actuarial Gains and Loseos 18
6. Actual Compared to Expecxed Decrerneats 20
7. Actuarial Assumptions and Coat Method- 21
S, Glossary of Terms 23
C Pension Fund Information
1. Sum~rl8ry of Assets 2b
2. Swnmaq+ of Fund's Iaoome and Disbursements 27
3. Allocation of Asaeta Iry Group 28
4. Development of Actuarial Value of Assets 30
I1 Financial Accow4ting Infornrwtio~n
1. FASB No. 3S 32
2. GA.SB No. 2S 33
3. GASB No. 27 3S
E Miscellaneous Information
1. Reconciliation ofMemba~ship Data 38
2. Statistical Data 39
3. Age and Service Distributions 41
F Summary of Plan Pc+ovisiotm 43
~1~
SECTION A
DISCUSSION OF VALUATION RESULTS
GRS
DISCUSSION OF VALUATION RESULTS
The following is a schedule of raluired cormibutions developed in this year's and the previous
actuarial valuations:
For FYE
09/3W10 For FYE
09~3WS9 Ina+eue
Policx Offices S 97,690 S 55,639 42,051
of Payroll 13.03 % 8.24 % 4.79
F~B~ 272,116 141,003 131,113
°y6 of Payroll l 8.96 °~ 10.57 °A 839 9~
Total Required Contribution 369,806 1 %,642 173,164
of Payroll 16.93 °Yo 9.79 °i6 7.14
Tire required employer contribution has been oocrrputed under the assuiaption that the anwunt to be
received from the State on behalf of police officers and firefighters this year will be equal to .the base year
revenue of $103,583. If this year's payment from the State falls below the expcctod payment, then the
employer must raise its o~tribution by the difference. The r+ognirod employer eontn'bution was calculated
under the assumption that payman would be made in equal installments at the end of each month.
R~ Contr[bu~tlon for ~~Year E°d~ 9~p~11
The estimated regained contribution for Police Officers is 5102,950 (17.45°i6 of next year's
expected payroll less allowable State Ravernu). For Firefighters, the estimated r+oquirod corgn'buhari is
5285,745 (23.87% of neat year's expode+d payroll less allowable State Revarue). The -total required
Village contn'bution for the fiscal year ending September 30, 2011 is 5388,695.
The employee oontributioa rate for fir+e#'ighters has bean dacreaaed fi+om 6.lYo to S.0% pwsuant to
Ordinance No. 13-08 that was adopted on October 9, 2008. Our August 1, 2008 Acxvarial Impact Statenrart
showed the effect of this antendmeat.
The following changes have boat made in actuarial assumptions and methods:
1) The assumed mortality rates were changed from the 1983 Group Amaity Mortality Table to the
GRS
RP-2000 Generational Mortality Table.
i
2) A five year asset srtuomhing mdhod is now wed to determine the actuarial value of assets.
Prrwiously, the acxrrar9al value of assets was sat equal to market value.
3) The funding method was changod from the Aggregate Funding Method to the Entry Age Noamal
Funding Method.
The net effax of these clratRgea is a reduction in the required annual contribution equal to 0.92% of
covered payroll. We firrtluor c+ecotrunend that the assumed rate of invesfineflt return be reduced to no more
then 7.50'/o from the c~uretrt rate of 8.0'/a
Overall experie~nee since the last valuation has been unfavorable resulting in an actuadai loss of
51,298,141. The loss is primarily due to a lower than expected investment return. The actuarial loan has
caused the required contribution to increase by 6.496 of cover~od payroll. The requirod cautribution was
further increased by 1.0% of payroll due to an increased level of administrative expenses.
Funded Ratlo
The fimded ratio was 97.1% this year comparod to 109.4% last year. The fimded ratio is equal to
the actuarial value of assets divided by the actuarial aa~red liability.
The Actuarial Coat Method wod to determine the contribution is intended to produce contribution
rates which are garerally Iwel. Even so, when eaperiesice differs fi+am the assurnptione, as it often does,
the employer's contribution can vary significantly 8~+om year-tayeaz.
Over time, if the year-to-year gains and losses offset each other, the contn'butio~n rate would be
expected to redrat to the current level, but this does not always happen.
The Actuarial Vahre of Assets eocceeds the Market Value of Assets by 5936,483 as of the
valuation date (see Soctian C). This diffe~,ce will be gradually recognized over the ne~ct several years in
the absence of offaettirtg gains. ff Market Value bad beers the beau for the valuation, tiro fiulded ratio
would have been 80.0% and the Village contribution rate would have been 21.]4% instead of 16.93%.
The remainder of this Report includes detailed actuarial valuation results, infomratimt relating to the
pension fund, miscellaneous information mud statistics, and a awnmasry of plan provisions.
GRS
CHAPTER REVENUE
lncrane^ots in Chapter revenue over that raxived in 1998 nnist first be used to fiend the cyst of
compliani:e with minimum benefits. pt-ce minimums are rnet, any subsequent additional Chapter revenue
must be used to provide extra benaflts. As of the valuation date, all miniirami i+oquiremeiits have been met.
Thus, any additional revenue must be used to provide extra benefits.
Actauinl Contirmatie® of the U:c of State ClVapter Macy
Pbtice l~fe+e Tots)
1 • Bay Amount Pi~virnis Pfm Year S 33,130 S 68,050 S 101,180
2. Amount Recaved far Previous Plan Year 65,148 136,854 202,002
3. Benefit Improvem~aits Made io Previooa Plan Year 0 Z,40d 2,405
4. Excess Fusid~a for Pntviena Ptm Year. (2) - (1) - (3) 32,018 66,399 88,417
S. Acxumulated Euoaae at Hegiiming of Pmvious Year 186,199 88,147 274,346
6. Prior Excess Used is Previous Plan Year 0 0 0
7. Accumulated Excess as of Valuation Date
(Available for Benefit Improvements): (4) + {5) - (~ 218,217 154,546 372,763
8. Base Amount This Plan Year. (1) + (3) 33,130 70,455 103,585
The Aaunmilated Excess shown in line 7 (if any) is being held in t~-e to pay for additional
benefits. The r+ese.tve is subtracted from Plan assets (see Suction C of this Report). The Base Amount in
line 8 is the maximum amount the employe may take as a c~odit against its required contribution;
however, era iio event may the employer talcs credit for more than the actual amount of Chapter revenue
nxeived.
GRS
sECTtoN B
VALUATION RESULTS
GRS
SUMMARY OF VALUATION RESULTS
As o[ Oetober 1
2009 ~#13er 2009 B~6x 2007
COVERED GROUP
A. Number Includcd in the Valuation
1. Active Members 31 31 29
2. Inactive Members 2 2 1
B. Covered Annual Payroll S 2,184,690 S 2,184,690 S 1,931,871
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits 9,932,973 9,389,509 7,710,989
D. Actuarial Vahu of Assets 5,298,959 4,365,580 4,080,609
E. Actuarial Preaeat Value of Future Contr.
l . Total C - D 4,634,014 5,073,929 3,630,380
2. Portion Assigned to Unfunded Actuarial
Actuarial Acxnied Liability (UFAAL) 159,546 0 0
3. Portion Assigned to Future Normal Coats 4,474,468 5,023,929 3,630,380
CURRENT ANNUAL COST
F. Aaaual Payment Needed to Amortsae UFAAL 18,047 0 0
As % of B 0.69 % -- °Yo ---
G. Annual Employer Normal Cost 439,350 473,401 274,952
As % of B 20.11 'i6 21.67 % 1433
H. Interest on F + G from Valuation Date to
~~~~ ~$) _ 18,994 19,789 11,493
Ae % of B 0.87 % 0.91 % 0.59 %
I. Required Employer Contnbs: F + G + H 473,391 493,190 28b.445
As °Ye of B 21.67 % 22.8? % 14.83
J. Estimated State Premium Tax Refund 103,588 103,885 101,180
As °Ye of B 4.74 % 4.74 % 8.24
K. Balance Required fmm Fanplc~yer: I - J 369,806 389,605 185,265
As % of B 16.93 °i6 17.83 % 9.59
L. Year to which Contn`butio~ns Apply
1. Plan Year Ending 9/30/10 9/30V10 9/30/08
2. Employer Fiscal Year Fading 9/30/10 9/30/10 9l30~08
3. Assumed Date(s) of F~nptoya Contribs. Monthly Monthly Monthly
M. Required Employer Contribution for Fiscal
Year Fading 9/30/11 and 9/30/09 388,b95 409,398 19b,b42
As % of'10-'11 Payroll 17.11 % 18.02 °/b 9.79 %
GRS
POLICE oFFICERs
SUMMARY OF VALUATION RESULTS
As of October i
2009.E 2009 2007
coVla~n GROUP
A. Number Included in the Valuation
1 • ~~ M~~ 12 12 10
2. Inactivc Members 1 1 0
B. Covered Annual Paymll S 749,835 S 749,835 $ 649,084
LONG RANGE COST
C. Actuarial Prrseat Vahie of Projected Benefits 2,652,333 2,505,405 2,046,541
D. Actuarial Value of Assets 1,333,906 1,084,023 979,278
E. Actuarial Present Value of Future Contr~'b.
1. Total C - D 1,318,427 1,421,382 1,067,263
2. Portion Assigned to Unfunded Actuarial
Accnied Liability (UFAAL) (346,507) 0 0
3. Prntion Asuigaed to Fudu~e Normal Coats 1,664,934 1,421,382 1,067,263
CURRENT ANNUM. COST
F. Annual Payment Needed to Amortize UFAAL (32,678) 0 0
As % of B (4.36) - --
G. Annual Employ+a Normal Coat 158,249 121,550 81,946
As % of B 21.10 % 16.21 % 12.62 °Yo
H. Interest on F + G fromd Vahiation Datc to
~~~~ ~~s) 5,,249 5,081 3,425
As % of B 0.70 % 0.68 % 0.S3
I. Requittd F.mploy~cr Cantnbs: F + G + H 130,820 126,631 85,371
As % of B 17.45 % 16.89 % 13.1 S %
J. Estimated State Premium Tau Refimd 33,130 33,130 33,130
As % of B 4.42 % 4.42 % 5.10
K. Balance Required from Employer: I - J 97,690 93,501 52,241
As % of B 13.03 % 12.47 % 8.05 %
L. Year to which Contributions Apply
1 • Plan Year Ending 9x30/10 9/30/10 9/30/08
2. Employer Fiscal Year Ending 9/30/10 9/30/10 9/30/08
3. Aastm~ed Date(s) of l~ployer Contribs. Monthly Montlily Monthly
M. Roquirod Employer Contn`bution for Fiscal
Year Ending 9/3W11 and 9/30/09 102,950 98,583 55,639
As % of'IO-'l 1 Payroll 13.20 % 12.64 °/s 8.24 °G
GRS
FIREFIGHTERS
SUMMARY OF VALUATION RESULTS
As of Octobesr 1
ioo9 ioo9 2on~
COVERED GROUP
A. Number Included in the Valuation
1. Active Members 19 19 19
2 Inactive Manbers 1 1 1
B. Covered Annual Paymll S 1,434,855 S 1,434,855 S 1,282,787
LONG RANGE COST
C. Actuarial Present Value of Pnsjected Benefits 7,280,640 6,884,104 8,664,448
D. Actuarial Value of Assets 3,965,053 3,281,557 3,101,331
E. Actuarial Present Value of Future Contrib.
1. Total C - D 3,315,587 3,602,847 2,563,117
2. Portion Assigned do Unfunded Actuarial
Accrued ~~tY (U~) 506,053 0 0
3. Portion Assigned to Future Novas! Costs 2,809,534 3,602,547 2,563,117
CURRENT ANNUAL COST
F• Annual Payment Needed to Amortize UFAAL 47,725 0 0
As % of B 3.33 % - °/i -
G. Annual Employer Normal Cost 281,101 381,851 193,006
As % of B 19.59'/0 24.52 % 15.05
I~. Inta+est on F + G from Valuation Date to
Contribution Date(s) 13,745 14,708 8,068
As % of B 0.96 % 1.03 % 0.63 o/i
I. Required Employer Contribs: F + (, + II 342,571 366,559 201,0')4
As 9~6 of B 23.87 % 25.55 % 15.67 °,6
J. Estimatiod State Premium Tao Refund 70,455 70,455 68,050
As % of B 4.91 ~6 4.91 % 5.30
IC Balance Required item Employer: i - J 272,116 296,104 133,024
As % of B 18.96 °/i 20.64 % 10.37 94
L, Year to which Contributions Apply
1. Plan Year Ending 9130/10 9/30/10 9/30/08
2. Employer Fiscal Year Ending 9/30/10 9130/10 9/30V08
3. Assumed Date(s) of Employer Contrihs. Monthly Monthly Monthly
M. Required Employer Contribution for Fiscal
Year Ending 9/30/l 1 and 9130/09 285,745 310,818 141,003
As%of'lU-'11 Payroll 19.15'i6 20.83 °X° 10.57 °Yo
GRS
ACTUARIAL VALUE OF BENF,.lFYTS AND ASSETS
POLICE AND FIRE COMBINED - AFT38R CHANGES
A Valuation Date Octobor 1, 2009
B. Actuarial Present Value of All projected
Benefits for
1. Active Members
a. Seavicx Retiromeat Benefits S 8,479,131
b. Venting Benefits 579,443
a Disability Benefits 656,399
d. pr+entu+cmeat DeaKth Benefits 95,567
e- I2eturu of Member Coutributione 14,171
f. Total 9,824,711
2. Inactive Members
a. Service Retiroes 8t Beneficiaries -
b. Disability Retirees -
c. Terminated Vested Members 108.262
d Total 108,262
3. Total for All Members 9,932,973
C. Actuarial Accrued (past Service)
Liability per GASB No. 2S 5,458,505
D. Actuarial Value of Accr:mulated Plan
BeneBta per FASB No. 3S 3,837,864
E. Plan Assds
1. Market Value 4,3b2,476
2. Actuarial Value ~ 5,298,959
F. Unfunded Actuarial Accrued Liability: C - E2 159,546
G. Actuarial Pnaent Value of Projected
Covered Payroll 20,446,518
H. Actuarial Present Value of Projected
Member Contributions 1,022,326
GRS
ACTUARIAL, VALUE OF BENEFITS AND ASSETS
POLICE -AFTER CNANG&4
A. Valuation Dote prober 1, 20pg
B. Actuarial Praent Value of All Projocted
Bmtetrts for
Z. Active Manbers
a Service Retirement Benefits $2,203,711
b. Vesting Benefits 169,735
c. Disability Benefits 214,373
d. Prec+etinmseat Death Benefits 31,604
e. Return of Member Contributions 6,336
f. Total 2,625,759
2. Inactive Members
a. Service Retirees ~ Beneficiaries -
b. Disability Retirees
c. Terminated Vested Members 26574
d. Total 26,574
3. Total for All Members 2,652,333
C. Actuarial Accrued {Peat Service)
Liability per GASB No. 25 987,399
D. Ach~srial Value of Accumulated Plea
Ba~efits pea FASB No. 35 679,800
E. Plan Assets
1. Market Value 1,0$4,023
2. Actuarial Value 1,333,906
F. Unfunded Actuarial Accrued Liability: C - E2 (346
G. Actuarial Present Value of Projected
Cov+ared Payroll 7,290,043
H. Aduarial Present Value of Projected
Member Contributions 364,502
GRS
ACTUARIAL VALUE OF BENEFITS AND ASSETS
FIRE - A>~TER CHANGES
A. Valuation Date October 1, 2009
B. Actuarial Present Value of All Projectai
Benefits for
1. Active Members
a. Service Retirmient Benefits S 6,275,420
b. Vesting Benefits 409,708
c. Disability Benefits 442,026
d. Preretitamernt Death Benefits 63,963
e. Raturn of Member Contributions 7,835
f. Total 7,198,952
2. loactive Members
a. Service Rati~oes ~ BeneSciaries -
b. Disability Retiroes -
c. Terminated Vested Members 81.688
d. Total 8],688
3. Total for All Membem 7,280,640
C. Actuarial Accrued (Past Service)
Liability p~ GASH No. 25 4,471,106
D. Actuarial Value of Aavmulatcd Plan
Benefits per FAS$ No. 3S 3,158,064
E. Plan Assets
1. Marloet Vahu 3,278,453
2. Actuarial Value 3,965,053
F. Unfunded Actuarial Accnud Lisbility. G F.2 506,053
G. Actuarial Present Value of Prajeded
Covered Payroll 13,156,475
H. Actuarial Present Value of Projected
Member Contributions 657,824
to
HoTg cROUrs coManv»
DERIVATION OF EMPLOYER NORMAL COST • AGGREGATE METHOD
As ~ O ctober 1
MA9 28A7
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Rditaneat Benefits S 7,925,672 S 6,436,761
b. Vesting Benefits 540,237 458,255
c. Disability Benefits 621,113 565,962
d• P~+eretirea~t Death Benefits 188,385 172,949
e. Return of Member Contn'butions 14,320 13,747
f. Other _ _
8• T«~ 9,289,727 7,647,674
2. Inactive Members
a. Service R,etitnes 8t Benefits - -
b. Disability Retirees - -
c. Terminated Vested Members 99,782 63,31 S
d. Total 99,782 63,31 S
3. Total for All Members 9,389,509 7,710,989
B. Actuarial Value of Assets 4,362,476 4,080,609
C. Unfunded Frozen Actuarial Accnud
L,iaiblity (UFAAL)
D. Acctuarial Present Vahu of Pr+njected
Member Contn'butions 1,018,181 1,090,166
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 4,008,852 2,540,214
F. Actuarial Present Yahye of Projected
Covered Payro)1 20,363,613 19,005,438
G. Employer Normal Cost Rate; 100 x E/F NIA N/A
H. Annual Payroll of Active Members 2,184,690 1,931,871
L Assumod Amount of Administrative
Expen~ 41,376 ]7,025
]. Employer Narmal Cost: (G x H3 + I 473,688 274,,952
~~
rOLICE OFFICER5
DERIVATION OF EMPLOYER NORMAL COST - AGGREGATE METHOD
As of O ctober 1
?M9 ZOA7
A. Actuarial Prosent Value of Projected
Benefits for
1. Active Members
a. Service Retireo~eat 8aiefits ~ 2,053,240 S 1,690,493
b. Vestiag Benefits 156,587 117,419
c. Disability Benefits 202,659 180,269
d. Fraetirem~ant Death Benefits 62,082 54,053
e. Return of Member Contributions 6,474 4,307
f. Other
g. Total 2,481,042 2,046,541
2. Inactive Members
a. Service Rdireaa dt Benefits - -
b. Disability Retirees - -
c. Terminated Vested Members _24,363 -
d. Total 24,363 -
3. Total for All Members 2,505,405 2,046,541
B. Actuarial Value of Assets 1,084,023 979,278
C. Unfimded Frozen Actuarial Aaxeced
Liaiblity (UFAAL) - -
D. Actuarial Present Value of Projected
Member Contributions 362,924 3]4,386
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C • D 1,058,458 752,877
F. Actuarial Present Vshie of Projected
Covered Payroll 7,258,472 6,287,728
G. Employer Nornoal Cost Rate: 100 x FJF 14.58 °~6 11.97 76
H. Annual Payroll of Active Members 749,835 649,0&4
i. Aswated Atmmmt of Adminiattative
Expataes 12,224 4,251
J. F~nployer Norval Cost: (G x H) + I 121,550 81,946
GRS
12
FIREFIGHTERS
DERIVATION OF EMPLOYER NORMAL COST -AGGREGATE METHOD
As of October 1
Ztl®9 2109
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a Servicx Rdirerueent Benefits S 5,872,432 S 4,746,268
b. Vesting Benefits 383,650 340,836
c. Disability Benefits 4I $,454 385,693
d. Prerdirement Death Benefits 126,303 118,896
e. Return of Member Contributions 7,846 9,440
f. Older _ _
S~ T~ 6,808,685 5,601,133
Z. Inactive Members
a ServiceRetirees ABenefits - -
b. Disability Retirees _
c. Terminated Vested Members 75.419 63,315
d Total 75,419 63,31 S
3. 'Total for All Meanbers 6,884,104 5,664,448
B. Actuarial Value ofAssets 3,278,453 3,101,331
C. UnRmded Frozen Actuarial Accttied
Lisiblity ([]FAAL) - -
D. Actuarial Present Value of Projected
Member Contnbutio~ns 655,257 775,780
E. Actuarial Present Value of Projected
Employs Normal Costs: A3 - B - C - D 2,950,394 1,787,337
F. A~ria1 Present Value of Projected
~~ Faytoll 13,I05,141 12,717,710
G. F~aployer Normal Cost Rats: 100 x E/F 22.51 9~5 14.05 °yb
H. Annual Payroll of Active Members 1,434,855 1,282,787
L Assumed Amount of Administrative
Expenses 29,152 12.774
J. ErrBrloyer Normal Cost: (G x H) + 1 352,138 193,006
GRS
13
ENTRY AGE CALCULATION OF EMPIAYER NORMAL
COST -TOTAL
A. Valuation Date October 1, 2009
B. Normal Cost for
1. Service Reti~+enment Benefrta 3 411,51 S
2. Venting Benefits 34,789
3. Disability Benefits 50,341
4. Pneretinement Death Benefits 7,2$8
5. Retwn of Meanba~ Contributions 3,276
6. Total fair Futurt Benefits 507,209
7. Aasnmed Amauat for Adminiatrativ+e
F.ytpenses 41,31b
8. Total Normal Cost 548,585
C. Expectod Member Contribution 109,235
D. Employer Normal Coat: B8-C 439,350
E. Employer Normal Cost as % of
Coverod Payroll 20.11
GRS
14
ENTRY AGE CALCULATION OF EMPLOYER NORMAL
COST -POLICE
A. Vah~ation Date October 1, 2009
B. Normal Cost for
1. Service Retirement Benefits S 151,024
2. Vesting Benefits 9,377
3. Disability Heoafits 19,382
4. Prentic+emeat Death Benefits 2,767
S. Return of Member Co~ributions 967
6. Total for Future Benefits 183,517
7. Assumed Amotaat for Administrative
~ I 24
8. Total Normal Cost 195,741
C. Expected Member Contn'bution 37,492
D.13mployrr Normal Cost: B8-C 158,249
E. Employer Normal Cost as % of
Coveted Payroll 21.10
GRS
1S
ENTRY AGE CALCULATION OF EMPLOYER NORMAL
C03T -FIRE
A. Valuation Date October 1, 2009
B. Normal Cost for
1. Service Retirement Bencfits S 260,491
2. Vesting Benefits 25,412
3. Disability Hene6ts 30,959
4. Prex+etir Death Benefits 4,521
5. Retnrn of Member Contributions 2,309
6. Total far Futiue Benefits 323,692
?. Assumed Amount for Administrative
Expenses 29,152
8. Total Normal Coat 352,844
C. Expected Member Contnbution 71,743
D. Employer Normal Coat: B8~ 281,101
E. Employer Normal Coat as % of
Covered Paymll 19.59
GRS
16
LIQUIDATION OF TAE UNFUNDED ACTUARIAL ACCRUED LIABILITY -POLICE
UAAL Auortization period and pa enb
Ori UAAI, Current U~,
Date
EshbHsbed Mortlzatbn
period
(Year:)
Amorust
Years
Remaitiiag
Amo~t
Piysent
10/1/09 20 (346,50?) 20 (346,507) 32 b78
S (346,507) t (346,507) S (32,678
B. ation itedule
The UAAL is being amortized as a level dollar amount over the number of years ranaining in the
amortization period The exported atnortizstion schedule is as follows:
Amorttrition Schedule
Year E~eeted UAAL
2009 s (346,507)
2010 (338,933)
2011 (330,755)
20]2 (321,923)
2013 (312,385)
2014 (302,083)
2019 (236,814)
2024 (140,912)
2029 -
2034 -
2039 -
GRS
17
LIQUIDATION OR THE UNFUNDED ACTUARIAL ACCRUED LIABII.TI'Y -FIREFIGHTERS
UAAL AmortizaNoa Period sad Ps eats
UAAL Carneat UAAL
Date
Ertsbltshed Amortlxatloa
Period
(Yeah)
Amonat
Years
Remataia=
A®ooat
Pay®eat
10/1/09 20 506,053 20 506,053 47,725
S 506,053 S 506,053 S 4?,725
B. ~ortlz.tioe 3cThed~~le
The UAAL is bein8 amortized as a level dollar amount over she somber of yaws remaining in the
amotization period. The expectod amatizetioa schedule is as follows:
Aaordutlna Schelde
Yeu Eipa~ted UAAL
2009 S 506,053
2010 494,998
2011 483,055
2012 470,157
2013 456,226
2014 441,181
2019 345,858
2024 205,796
2029
2034
2039
GRS
18
ACTUARIAL GAINS AND LOSSES
When the actual plan experience differs fra~m the actuarial assumptions, as acp~srial gain or lass ig
the result. The net actuarial gain (loss} since the last valuation is computed as follows:
A. Normal Cost Rate pollee Fire
1. Lest Valuation 1 ].97 °i6 14.03 %
2. This Valuation 14.58 22.51
3• Change (2.61) (8.46)
$. Present Vslue of Projected Payroll 57,258,472 S 13, l OS,141
C. Actuarial Gain (Cosa): A3 x B (189,446) (1,108,695)
The fund earnings and salary increase assutn~ptions have oonsidaabk impact on the coat of the Plan
so it is important that they are in line with the actual experience. The fallowing table an the next page
shows the actual fund earnings and salary incra~se rates compared to rho assuaned rates for the last few
Y~~
GRS
19
$aVry Increua
Irrve~e nt Retarn A etaat
Year En 9/30 Attstal Aasa~ed Po1ia lFh+~ Asnmsed
1994 (0.1) °Yo 8.0 % NA % 13.3 % 6.0 %
1995 21.6 8.0 NA 14.1 6.0
1996 12.9 8.0 NA 8.1 6.0
1997 22.2 8.0 NA 4,8 6.0
1998 12.2 8.0 NA 15.8 6.0
1999 13.2 8.0 3.4 8.7 6.0
2000 18.7 8.0 15.4 10.3 6.0
2001 (10.7) 8.0 19.6 18.6 6.0
2002 (3.7) 8.0 13.9 7.9 6.0
2003* 6.0 8.0 11.6 72 6.0
2004 8.1 $.0 11.5 10.2 6.0
2005 5.6 8.0 5.9 9.6 6.0
2006 3.7 8.0 8.7 8.6 6.0
2007 13S 8.0 7.6 4.4 b.0
2008 (12.0) 8.0 10.5 8.2 6.0
2009 (1.2) 8.0 4.b 3.4 6.0
Avers=es b.4 s:.0 10.1 4.S 6~0
• Starting Public Safety (Police & Fire t7iily)
The actual im+eatrnent return rates shaven above are basod ~ the actuarial value of assets. The actual salary
incc+ease rates shown above are the iact+eases receivod by those active rrnmbers who were included in the
actuarial valuation both at the beginning and the end of each period.
GRS
20
Actaa! (A) Compared to Lipecttd (E) Decreme~
PoHoe O1Heen
Number
Added Ser~-iee & ~~
DuriaB DROP DlabWty Termiuatiou Members
Year Ye ar Retle+emeat Rdlr emeat Deate Voted Other To bls Sad of
Forded A E A E A E A E A A A E Year
9/3002006 4 3 0 0 0 0 0 0 0 3 3 0 13
9/308007 1 4 0 0 0 0 0 0 0 4 4 0 10
9/308008 3 1 0 0 0 0 0 0 1 0 1 0 i2
9/30V2009 1 1 0 0 0 0 0 0 0 1 1 0 12
9!30/20!0 0 0 0 0
4 Yr Totals * 9 9 0 0 0 0 0 0 1 8 9 0
Totals are through cun+ent Plan Year only
Actual (A) Compared tb Eapaded (L~ Decremeub
Number
Adde d Servloe di Ave
Durin g DROP DbabWt7 Tertaiaadotis Meobere
Year Ye ar Retitmeat ReW~teat Dean Voted Outer To tab Ead s!
Ended A E A E A E A L A A A E Year
9/308006 t 0 0 0 0 0 0 0 0 0 0 1 17
9/308007 3 1 0 0 d 0 0 0 0 1 1 1 19
9/308008 0 0 0 0 0 0 0 0 0 0 0 1 19
9/308009 0 0 0 0 0 0 0 0 0 0 0 1 19
9r308dio a o 0 o i
4 Yr Totals ~ 4 1 0 0 0 0 0 0 0 1 l 4
'` Totals are through cumnt Flan Year only
GRS
21
ACTUARIAL ASSUMPTIONS AND COST METHOD
Yaluatlon Methods
actuarial Cost AletJ6od .Normal cost and the allocation of benefit values between svvice renderod
before and after tha valuation Clete wars deterarinod using an Indlvidaal Es~A~ AcdsarLl Cat
Method having the following characteristics;
(i) the annual nornnat cyst far each individual alive axmber, payable fi+om the date of
employment to the date of retirement, is sufficient to accimmiste fire vahte of the member's
befit at the time of retirement;
(ii) each annual normal cyst is a constant per~tagt of the member's year by Year pmjeeted
covered pay.
Actuarial gaina/(losses), as they occur, reduce (increase) the Unfunded Actuarial Aoerued Liability.
Firiaucisg of U saunas[ saw LiabJHs~s - Unfimdod Aduatial Aocntied Liabilities (frill
funding cxedit if assns exceed liabilities) were amortized by level (principal 8t inter+est combined) dollar
contn'butions over 20 years,
acdrarial Value of asses -The Actuarial Value of Assets phase in t>ye difference between the expected
actuarial value amd actual market value of assets ~ the rata of 2096 pet year. The Actuarial Vah~e of
Assets will be further adju:tad to the extent meoessary to fall within the oorridoa' whose lower limit is 8096
of the Market Value of plan assets and whose upper limit is 12096 of the M~a9cet Vahie of plain assets.
Iaaing periods what invesbmeant performance exceeds the assumed rage„ Actuarial Valuer of Assets will
tc~d to be less than Marloat Value. Outing periods when inv paformm~ce is less then assuased
rata, Acxuarial Vahie of Asseb will tend to be greater than Marloet Value.
Valuatloa Aaumptiom
TJ~e aetuarW assuayptious use in the valuation are shown in this Sation.
Economic Assumptlom
T/re inweadrrert rebrrer r+ost assumed in the valuations is 8.09'e per year, eompouaded annually (net after
investment expenses).
Tka Wage InJlaNon Rate assumed in this valuation was 4.0% per year. The Wage Inflation Rate u
defined to be the portion of tAtal pay increases for an individuat that are due to macroeconomic forces
~~g P~uctivity, price i~sti[on, and labor marloet conditions. The wage inflation rate dots not
include psy cheag~es related to individual merit and seniority effects.
The Pqy imcnease assiuapelox ie 6% per year up to the assumed retirerrLent age.
Demographic Assumpdom
Tlu anortatiq+ table was the 1tP -2000 Generational Mortality Table for males and females as shown on
the next page.
GRS
22
5aapk
Attained
!e: ~n 20®9) Ptrobattilih- of
_ ,_Dyi Nat Ye~ur
Mm Wsmen 1Fatnre Life
E=PednDCy 6r~ar's)
ea Waxen
SO 0.18 % O. I4 % 33.81 3537
55 030 0.25 2$.70 30.42
60 OS8 0.48 23.79 2S.b5
b5 1.12 0.93 19.22 21.18
?0 I94 1.b0 15.08 17.07
7S 333 2.b1 11.38 1337
80 5.88 4.16 8.25 1025
This assemnption is steed to nteaeure the probabilities of each benefit Payment being medo sft~er cam.
For disabled t+etirees, the regular mortality tables are set forward S Yeats in ague to reflect impait+ed
longevity. For active members, the probabilities of dying before cetirociaat vvet+e based vPoa the same
mortality table as members dying after tttiranent.
R~ of nalr~au act tat applicable as aU participants are assumed to retire upon c+eecbing normal
rttirem~eat date. Probability of early cetiremmt is S% for each year eligible.
Rates ojseparatroa fi,vrw actt~e Nresttbrrabip are shown on the table below.
Rates oj~aabi114v among acxive members are shown on the table below.
~Y~~
Terntinatlon Rates
Dish Bates
20 6.0°/s 0.14°ib
25 5.7 0.15
30 5.0 0.18
3S 3.$ 0.23
40 2.6 0.30
45 1.6 OS1
50 0.8 1.00
SS 0.3 I .SS
60 02 ---
GRS
23
GLOSSARY OF TLRMS
Actuaraa/ Accrued llabllhy The difference between the Actuarial Present Value of Future Benefits,
(AAL) and the Actuarial Present Value of Future Normal Costs.
Acbrarial Asswwpaloa8 ~ about fuhu,e plea racpaierxe that affect crosts ar liabilities,
aucb as: mortality, withdrawal, disablement, sad retitamrt; future
increases is salaryr, future rates of investosatt eamioga; future iavratm~t
and administrative mcpenses; characteristics of members not apxified is
the data, such as marital status; characteristics of fndu+o members; future
elections made by members; and odkr items.
Acxxarlal Coat Method A prx4dure for allocating the Actuarial Pn~ent Value of Future Bene&ta
between t~ Actuarial Present Vahie of Future Normal. Costs. and the
Actuarial Accrued Liability.
Acararlal EgwTHrle.~t Of equal Acxusrial Present Value, detamin~ed m of a given date and based
on a given set of Actuarial Assumptions.
AcarrerhsT Pnaeat Yabre The amour of foods required to provide a payma~t or series of payments
(Aph in the future. it is detamiaed by disoouating the ftdut~e payments with an
assumed interest rate and with the aastimsed gr+obability sash payment will
be made.
Actuaraa/ Phseut Valree of The Actuaria< Present Vah~e of amount which are expected to be paid at
Frttkn Bcae,/idr (APVFB) various future times to alive members, retired members, beneficiaries
i~acxiving beae8ts, and inactive, aonr+etir~ed meimbera entitled to either a
refund or a iiswre retirement benefit. Facpreesed another way, it is the
value that would have to be invested on the valuation data so that the
amount invested plus invmtaonent earnings would provide sutficieot assets
to pay all projected benefits and axpectses when due.
Actuorlal Valuation 'The determination, as of a valuation date, of the Normal Coat, Actuarial
Aocnted Liability, Acwarial Value of Assets, and related Actuarial
Present Velars for a plan. An Actuarial Valuation for a 'overnmental
retirement syatean typically also includes ~ulafions of items needed far
oomplisace with GASB No. 25, sucdi as the Funded Ratio sad tht Atmual
Required t:ontn'bution (ARCS.
Acwarial Ya/we ojAaaao: The value of the assds sa of a given date, used by the actuary fns
valuation purposes. This may be the market or ~ vahte of plan assds
or a smoothed value in order to redone the year-to-year volatility of
calculated results, soh as the funded ratio sad the actuarially required
contribution (ARC).
GRS
2a
.larortiz~fan MctlYod A mdhod far determining the Amatiz~ion Payment. The most common
methods used are level dollar and feud pa+cem~ of payroll. Under the
Level Dollar nretled, the Aa~tizati~on Payment is one of a streams of
payments, all equal, whose Actuarial Prcaent Vahu is equal to the UAAL.
Under the Level P of Pay madad, the Am~oatization Payment ~
one of a stream of rig paymermr, whose Adnarial Presort Value is
equal to the UAAL. Under the Lend PeroaUage of Pay method, the
atmam of payments irrcr+esse:s st the rate ~ which toW oov~ar~ed payroll of
all active members is assumed to inci+eese.
Aae~ P~aymut That portion of the plan eoem~rttion ar ARC which is designed to pay
interest on and to arnatiae the Llnfiaoded Aduariat Aecn~ed Liability.
AaaordzaaFoa Per1o! The period used in calculating the Amortization Payment.
~+~ ~1+ Thu employer's periodic required cotYn'bewions. encpreesed as s dollar
CantnTbrrlJosr (ARC) amount ar a percentage of covered plan oompeoas3ion, determined uada~
GASB No. 2S. The ARC corrsists of the F.mployex No~tmal Cost and
Amortization Payment.
Closed .l~eortitrdoK Period A speafic n<mnbar of years that is reduced by one each y+ar, and decline~a
W zero with the passage of time, For eagle if the amotti~tion period is
initially eel at 30 years, it is 29 years at the end of o~ year, 28 years ~ the
sad of two years, etc.
Eiarploy~er 1Vonwal Coat The portion of the Normal Cost to be paid by the employer. This is
equal to the Normal Cost leas eacpected member oo~ntn'butions.
~!'x~e>u Si~Js Far plains that do not eatabliah sedate aneortiz~ion bases (separate
man Per~tod ooampone~ts of the UAAL~, this v the same as the Amortization Period
For plans that do establish separate amortization bases, this is the period
over which the UAAL would be anwrtized if all amortization besea wex+e
combinexi upon the current UAAL payment.
EYpcrkRCC Gairdloaa A m~une of the difference between actual experi®a and that expecoed
based upon a set of Actuarial Asruunpaons, during the period beawem tvm
actuarid valuations. To the e~te:lt that sctnal eagaerience diffiers from drat
aasimied, UnRroded Actuarial Auxiud Iaaibulities esoergei which may be
largo or smager then projexxed. Gains are due to fawrabk eaperimeel
ag., the aeaexs eam more then prnjaxacl, salaries do not ina~eaae as feat as
assumed, members retire: later than etc. Fav~orabk experieooe
mea»a actual r+esulta produce achaarial liabilities not es large as prajextod
by the acburrial assumptions. 4n die other hand, losses ar+e the result of
unfavorable earpariencx, i.e., actual rexults that pe+odua Unfiuided
Actuarial Accrued Liabilities which are larger then projectexl.
~~
zs
Fuirded Rollo The ratio of the Actuarial Value of Assets to the Acxuarial Axnied
Liability.
t;ASB Goverruttetdtal Accounting Standards Board.
GASB Na ZS aedd These are the ~veeameatal acting standards that set the aooamtiog
GASaNa 2y rules for public rdireodari systems and the employers that sponsor ar
oona-'bute w them. Statement IYo. 27 sets the acoo~udting rules for the
~ploY~ ~ ~ contribute to public raeireo~aort systans, while
Statemeddt No. 25 sets the rotas for the systems themedves.
Norutal Coat The annual cost assigaod, under the Actuarial Coat Method, to the curradt
P~ y'e'~•
Dpen Aiwortitetion Period An open amortization period is one which is used to detertmna the
A- Payment but which does mt change over time. 1n other
words, if the initial period is set as 30 years, the same 30-year period is
used in deteraniairdg the Aaooztizatien Period each year 1fn theory, if sn
Open Arnottizstion Period is used to amorti~oe tide Unfiwded Actuarial
A~ocrdded Liability. the UAAL will aa~ner oamplately disappear, but grill
became smaller each year, either ss a dolLir amount or in ralatio® to
covered payroll.
UxJunded Aeb/a-!ol Accrued The diffareaee between the Actuarial Accrued Liability and Actuarial
~dih' Value of Assets.
Val~rotioa Dinars The date as of which the Actuarial Pnofent Value of Fhtddr+a Beae6ts are
ddermirded. The benefits e~apacted to be paid in the f~tdre are dixordnted
to this date.
GRS
SECTION C
PENSION FUND INFORMATION
GRS
26
SUMMARY OF ASSETS
9/30/Z909 9/30/2008
Cash and Securities -Market Value
Cash S 2,647 S -
Money Market Funds 283,250 361,878
T~~7+ and ~cY ids ~ Notes 8SS,149 1,193,030
~ ~~ 795,993 470,792
~~~ Stocl~ 2,754,735 2,187,326
Pooled Equity Funds _ -
PooledBond Funds _
Other Securities _ _
T~ 4,691,774 4,213,02b
Receivables and Accn~als
Member Ccotn`bution 4,790 _
Employs Contribution 58,013 84,483
~ ~ ~~~ 16,742 17,064
Duc from Broloer - 14,884
T°~ 79,545 116,431
Payables and R,esGrves
Account Payable 11,121 14,329
State Contribution Reserve 372,763 274,346
Benefits _ _
Refunds _ _
Due ~ broioct 24,959 -
T~ 408,843 288,675
Net Asreh - Marlctt Value 4,362,47b 4,040,782
GRS
27
PENSION FUND INCOME AND DISBURSEMENTS
Yeu Sadiog Year Eadlat
9/J08009 9/3080®8
Muket Valae at of Period S 4,315,128 S 4,346 307
Incoau
Member ~~~~ 103,134 115,980
State Contnbutions ?A2,002 229,173
Employer Contributions 224,b18 215,084
Investment F.,arningi
Intecat dlt Divideads 103,044 111,234
Realised Gsin (Loss) (35,199) {4b,22b}
Um+eali~od Gaia (Loss} (87,497) (585,709}
Tom {19,652) (520,701)
Other Income - _
Total Income 510,102 39,53b
Disbartemenb
Monthly 13ene5t Payments _ _
Lump Sum Distnbutions
Reihnd of Contributions 12,268 10,673
Investrnent ~~ 36,347 34,161
Other Administrative Expenses 41,37b 25,881
I~osmanoe Praniums
Oth _ -
er
Total Disbursements
89,991 _
70,71 S
Net ~~ ~S Period 420,1 i 1 (31,179)
Maric~et Valae at Ead of Period 4,7'35,239 4,315,128
Las: State Contribation Reserve 372,763 274,34b
Fiaal Market Vslae 4,362,476 4,040,782
~~ ~-
28
ALLOCATION OF ASSL'T3 BY GROUP - 3EPTE1V~F1t 3D, 2809
POLICE F~tE TOTAL
Market Va1se on 9I30/'~08 S 1,158,135 S 3,156,993 t 4,315,128
Percent of Total 25.8 % 73.2 °X. 100.0 %
Income
Coffiibutions
M~~ 35,452 57,582 103,134
State 55, 148 136,854 202,002
~P1oY'~' 81,539 143,079 224,618
Other _ -
lnvestrnent Earnings
1n~t ~ Dividends 27,941 75,103 103,044
Realimd Gain (~} (9,499) (?5,700) (35,199)
Unrealized Gain {Loss) (22,07'2) (55,425) (87,497)
Total (3,630) (15,022) (19,552)
Other Lioome _ _
Totallncome 178,509 331,593 510,102
Monthly Benefits _ _ _
~~ ~ Lump $~ 12,268 - 12,258
~~ 12,224 29,152 41,375
Inveatanent Eapenaea 9,912 25,435 36,347
Inveslnnent Adjustment - - -
Tota1 Expenses 34,404 55,587 89,991
Market ValYe oa 9/3@/i09 1,302,240 3,432,999 4,735,239
Lea Stte ConMbatloi Rwervs 2l 8,217 154,545 372,763
F'laal Market Yalae 1,084,023 3,27$,453 4,352,476
Peraat of Tohl 24.8 °i6 75.2 % 100.0 °~
~~
29
ALLOCATION OF A3SET3 BY GROUP - SBP1~$R 30, 2A8i
POLICE FIRE TOTAL
Market Value on 9/30!07 S 1,128,036 S 3,218,271 a 4,346,307
Percent of Total 26.0 % 74.0 % 100.0 X
IncOWe
Contributions
M~~ 37,930 78,050 115,980
State 70,571 158,602 229,173
~P~Ya 87,240 127,844 215,084
Other - _ _
Inv~nent Earnings
~~ ~ ~'~~~ 29,528 81,?06 111,234
Realized Gain (~) (12,239) (33,987) (46,226)
~~~ Cram (ice) (156,389) (429,320) (585,709)
T°~
Other Income (139,100} (381,601) (520,701)
T~ ~~ 56,641 (17,105) 39,536
Ezpentes
Manr~hly its _ _ -
Refanc~ and Lump suo,s 1a,673 10,673
A,dministcative Expenses 6,821 19,060 25,881
~~~ ~ 9,048- 25,113 34,161
Invcst~nent Adjaatment - - -
T~ ~P~ 26,542 44,173 70,715
Market Valve on 9/30/08 1,158,135 3,156,993 4,315,128
Lea State Centrlbadoa Reserve 186,199 88,147 274,346
Final Market Valve 971,936 3,068,846 4,040,782
Percent of ToW 24.1 °A 75.9 °~O 100.0 %
~n
Development of Actuturittl Y»~ of Atireb -police
Yettr E ber 30
20013 2009 2010 2011
A Beginnim~g of Yar Asset
1. Market Value' S 1,128,03b S 1, L 58,135 S s
2• AcNuiv Value'' 1,128,036 1,354,552
B. Net of Comrib~tdoma
Less Disbursements 178,247- 157,647
C. Actual Net Itrnsement
(148,148) (13,542)
D. Expected Inv+esdnent
~~ 97,33 11a,67o
1? Exceas of AcWs] Over
F.~cneoted Investmaomt
F.aeni~s: C - D {245,52 1) (128,212)
F. RecoBnitioa of Excess
Eamin®s Over S Years
1. Forma TLis Yar (49,104) (25,642) 0
2. From Oae Yea: A8o 0 (49,104) (25,642)
3. From Two Years A8o 0 0 (49,104} (25,6
4. From Tbree Yarn A8o 0 0 0 (49,1(
S. Friom Four Yan Ayto 0 0 0
6. Total ~-
(49,104)
(74,746) -""
(74,746) ~-'
(74,7
G. End of Year Asseb
1.11tirlr~et Vdue~ 1,158,135 1,302,240
2. Actuarial Valua
A2 + B + D + Fb 1,354,552 1,552,123
3. Final Aolwrial Value
whin sox to 120'6
~~~ Va1ne 1,354,552 1,SS2,iZ3
<. Less: State Comdribmion Reserve 186,199 218,2 ] 7
S. Final Acdterial Vshie 1,168,353 1,333,906
•Before State Contribution Reserve is Subtracted Out.
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GRS
SECTION D
FINANCIAL ACCOUNTING IIvFORMATION
GRS
32
FASB N0.3S INFORMATION
A. Actuarial Pr+eamt Velue of Accmosulated
Plan Bearefitg
1. Vested Benefits
a. Members Currently ltexiving Payments a - S - S -
~ Terminated Vested Members 26,574 81,688 108
262
c. Other Members 450,803 3.014,778 ,
3.465,580
d ToW
477,377 '~.^
3,096,466 ~----~--
3,573,842
2. Non-Vested Berrefita 202,423 61,598 264,022
3. Total Actuarial Pt+eeart Value of Axnmulated
Plan Benefits: 1d+2 679,800 3,158,064 3,837,864
4. Accumulated Contributions of Active Members 149,023 SS3,410 702,433
B. Chatrges in the Actuarial Present Value of
Accumulated Plan Benefb
1. Total Value at Beginrdng of period 419,409 2,065,239 2.484,648
2• InQease (Decrease) During the Period
Aun'b+rtable to:
a. Plan Amt 0 _ 0
b' ~°°`~ ~ ~ Assumptions 17,230 147,248 164,478
c. latest Member Data, Benefits AccrmnNated
and Dxrease-in the Discount Period 266,102 945,577 1,211,679
d Bents Paid (22:94_1) - ~ {?Z,9~41)
e. Net Increase 260,391 1,092,825 1,353,216
3. Total Value at F.nd of Period 679,800 3,158,064 3,837,864
C. Market Value of Assets 1,084,023 3,278,453 4,362,476
GRS
SCHEDULE OF FUNDING PROGRESS
(GABS 3fatement No. ZS)
Aetaariai
Actoadd Valoe Aocxaed
I~fablWy (AAL)
Uaf~unded AAL
ActoarW
Valoatbn Date of Asreb
(a) - Eatry Abe .
(b) (UAAL)
(b - a) Fnoded Ratlo
{alb) Covered P
c
10/1198
1011100
10/1/02
]011/03•
10/1/05
10/1/07
10/1/09 S 934,659
1,683,867
1,87S,b57
1,9b6,148
2,782,953
4,080,609
5,29$,959 $ 532,439
834,839
1,428,869
1,610,963
2,598,331
3,730,24?
5,458,505 $ (402,220)
(849,028)
(446,788)
(355,183)
(184,622)
(350,362)
159,546 175.5%
201.7
131.3
122.0
]07.1
109.4
97.1 S 967,
1,203,'
2.132;
1,339,+
1,650,E
1,931,!
2,184,1
* start Public safety Plan ooly.
34
MULE OF EMPLOYER AND STATE OF FIARIDA CONTRIBUTIONS
(GA9B Sbtement Na ?~
~liscu! Year Esdcd
30 Auuwl Required
CoudrbufioH Aetaal
Co~ri~tiu~
Coutrib~ed
1994 S 55,503 S SS,751 100S9ti
1995 71,957 91,120 126.b
I99b 92,343 100,118 108.4
1997 104,853 134,048 127.8
1998 123,4I7 172,0'72 139.4
1999 $9,265 188,433* 211.1
2000 89.265 106,355* 119.1
2001 78,035 78,035* 100.0
2002 99,223 127,736* 128:7
2003 152,97b 154,338* 100.9
2004 195,964 I95,964* 100.0
2005 ?A3,833 245,816* 120.6
2006 272,3b3 277,213* 101.8
2007 283,229 302,345' 106.7
2048 288.850 318,669* 1103
2009 300,227 328,2A3* 109.3
* Excludes State t+tvenue en excess of baseline amount plus adjustmeflts.
GRS '
No Text
3S
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASH STATEMENT N0.29)
POLICE OFFICERS
Employer FYE Septeanber 30 2010 2009 2008
A' Annual Required ~~~~ (A~)* S 130,820 S 88,?69 8 85,371
B. Uttaeet on Net Pension Obligation (NPO) (11,742} (10,023) (7,486}
C' Adjustment to ARC (16,413) (14,431) (10,778)
D. Annual Pension Cost (APC) (A+13~} 135,491 93,177 88,663
E. Contributions made. - 114,669 120,370
F. NPO at beginning of year (146,776) (125,284) (93,577)
G. Inct+eaae (dect+ease} in NPO (D-E) - (21,492) (31,707)
H. NPO at end of year (F+G) - (146,776) (125,284)
* Includes expected State contribution
THREE YEAR TItF.ND INFORMATION
Fiscal Affiual Pension Actual Peroentage of Net Pension
Year Endin Cost Contri'butioo APC Cautnbuted 'on
9/30/2007 S 113,012 S 117,380 143.9 9'6 S (93,577)
9/30~1~8 88,663 120,370 135.8 (125,284)
9/30/2009 93,177 114,669 123.1 146,77
36
ANNUAL PENSION COST AND NET PENSION OBLIGATION
{GASB STATEMENT N0.27)
FtRE1F'IGHTERS
Employer FYE Septanber 38 2010 2009 2048
A• Annual ~~ Conttibution (ARC)* S 342,571 S 2] 1,458 S 201,074
B• Interest on Net Pension Obligation (NPO) (12,503) (12,664} (I3,42S)
C. Adjustment to ARC (17,476) (16,751) {17,757)
D, Annual Pension Coat (APC) (A+H-C) 347,544 215,545 205,406
E' Contributions made - 213,534 195,894
F. NPO at beginning of year (156,287) (158,298) (167,810)
G. ]naeeae (deczraae) in NPO (D-E} - 2,011 9,512
H. NPO at end of year (F+(}) ~ - (156,287) (158,298)
* Includes expected State contnbution
THREE YEAR TREND IIVFORMATION
Fiscal Annual Pension Actual Perceata~e of Nd Peasio~e
Year Cost ( Contribution APC C.c~iburod Obli
9/30/2007 $ 176,060 $ 184,965 105.1 °~6 S (167,810)
9/30/2008 205,406 195,894 95.4 (158,298)
9x30/2009 215,545 213,534 99.1 156,28
s
37
REQUIRED SUPPLE118F.NTARY INFORII~ATIDN
GASB Statement Na 2S and Na 27
The information prod in the requirod supplanmtary sclyedules was ddeamined as pert of the
actuarial valuations at the dates indicated. Additional informion sa of the latent actuarial
valuation:
Valuation date October 1, ~g
Contribution Rates
~1o)^Q ~~ State) 17.45% Police, 23.87'/0
Fire
Plan members 5.00'Y0 Police
S.00% Fire
Actuarial Coat Method F.ntcy Age Normal
Amortization Method NA
Remainin8 amortization Period NA
Asset Valuation Method Five year smoothing
Actuarial Assumptions
Investment late of return 8.0'/0
Projected salary inct~eases 6.0?/0
Includes inflation aio~d other geitaal inc at 4 4%
Cost of Living adjuatrtazvts Not Applicable
SECTION E
MISCELLANEOUS INFORMATION
GRS
r~
RECONCI4IATION OF MEMBERSHQ' DATA
A. Aetlve Membay ia-l/rl-8 bu
lQ/Ui09
1. Number Inch~ded in Last Valuation 31
2. New Memberss Included in (~ureat Yeluation 1
3. Non Vented Employment Tenadnstio®a
(1}
4. Vasaed Employment Tdmin~s p
S. Service Retirements p
6. Disability Retiraants p
7. Deaths p
8. Other ~
9. Number i~nduded is This Valuatian 31
B. Terminated Vested Members
1. Number Inch~ded in Last Valuation 2
2. Additions lrom Active Members p
3. Lump Sum Paynxats p
4. Payments Coked p
S. Deaths p
6. Other
7. Number Inch~ded m This Vdwitian ~
C.Servioe Retlrees, DiabiSly Retlrees and Buries
1. Number Included is Last Vaba~ica p
2. Additions $om A,c1Ne Mernbas p
3. A~dditiaas fr+omo Tamed Vested Mdnbears 0
4. Daths Restilting in No F~utlrer Paymenrts 0
S. Daahs Rpulting is New Survivor Benefits 0
6. End of Ce<taiuPeriod - No Puither Payments 0
7. Other
8. Number Included in Thu Valuation Q
39
STATISTICAL DATA
POLICE OFFICF~1tS
1A/1/03 10/lAS lOJllg7 IOVl/09
Active Members
~~
T°~ Antral PBYmll 9
S 424,795 12
S 642,045 10
S 649,084 12
S 749,835
Annual Salary
O 47,199 53,504 64,908 62,4$6
thaA
v~ee~eges
~~ ~ 33.7 36.9 39.6 39.0
~ ~ 1aY~ 31.6 34.0 35.5 34.4
P 2.1 2.9 4.1 4.6
Service Retie+ecs asd BeoeAdarier
Number 0 0 0 0
Tote! Armttal BenaSt S - S --- S - S --
Av~etage Monthly BeaGfit _. - _ _
Diabiifly Redress
Number 0 0 0 0
ToW A~uai Benefit S --- S -. S -- S --
~-vera8e Monthly Benefit - -- - ~.
Terminsl~ed Member With Vested BeneBb
N~~' 0 0 0 1
Total Armual Benefit S -- S -- S - $ 9,360
Average Ma~nthly BeueRt -- _. -- 780
GRS
40
STATLSTICAL DATA
F1R>EFICHT7ERS
l0/l/a3 1Q/1I85 10/1107 20/1109
Adfve Members
Ntunbar 16 16 19 19
Total Anmuil Payroll S 914,872 S 1,008,358 S 1,282,787 S 1,434,855
~ Annnai Salary 57,180 63,022 67,51 S 75,518
vexages
/~ 35.4 36.6 36.7 38.7
Ase at Ea~loyment 29,4 29.8 29.2 29.3
Pam Servicx 6.0 6.8 7.5 9.4
Servke Retirees and BeasAclarks
Nuaober 0 0 0 0
Total Annual Ber-efit S - S --- S - S ---
AverageMonthlyBenefit -_ - - -
DisabilUy Retb~ees
Number 0 0 0 0
Total Annual Hentfit S --- S -- S - S -
Avera~c Monthly Benefit -.. - - _.
Termimtcd Membexs Wttb Vested Beaellb
Number a a 1 1
T~ Annual Benefit S --- S - S 16,971 S 16,971
Average Manthly Benefit - .-- 1,A14 1,414
GRS - _
41
A`~i~+ Am°w Yi.~i i~i.i r+iei ieiei •i i ~ .iiie
we nw ~n irAi ~~ ~~ .i ~
"• ~ A A ~F 00 1 VY
~! + O
n
n i
' A ~
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~ i 0 0 0 0 0 0 O O O O O O 0 0 0 O O O 0 0 0 / O O O
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' M 1
1 ~
I ~
. ;
.
I ~
1
r r 0 0 0 O O O O 0 0 0 0 0 O O O 0 0 0 0 0 0 . 0 0 0
A
i ~
~ O
. M ~
~ ~
~ ~
~ ;
r
~ '
O O O O '
~w oeo eoo e o 000 00o eee ~ oei
n
~ ,
~ N ~
r
~~ i
~ ;
i ~
i ~
i ~
~ t: 0 0 0 b 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ O O O
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h ~
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~ ~ 000 00O 000 000 w. ~1 r•j of .i r~i Awri ~ rr7i
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8
~ ..
~ O O O 0 0 0 M+~ A .Ai C 0 0 0 A=: M n n ~ Y O p A
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.
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w i A n~ Mrwd rw ~ 0M!
00 ~ •+ N M Y V ~ A n
h ~ ~ n
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' •+ +~w~ ~.'.A iai eeo 000 oeo .iii ~ M1we
~'" ww nn nn ~ wo°
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r • ~. O O O O O O O 00 O O D ei N H O O O 0 0 0 ~ N rV M
w w w w
w i q.011 • 00
u ~ Nn
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a.
~ ~~~e ~~~ ~~~ ~~~ Q~~ ~x~ ~~~ ~~~
~~ N~~ N!• ~ O~ ~ M!~ ~ 0~1~ NI. .R OPT 1+~~
MM /t q N b r h
V~yJ
~n
't~pwaca !ir f~otiw tam
acesanas or sox-actsvs vat<~1clfarsa a~~a
Obd.s ~0
20 - 7l
75 - Z!
70 - 3l
!b - 19
f0 - i4
43 - if
so - ss
ss - sf
i0 - 64
i3 - if
70 - 74
75 - 7f
ao - a.
•s - as
fo - f4
fb - f9
100 i 0~-K
Total
Jlara. ~
Liability
---taswiaacad v~std---
Total
Ikmbpr s~mpfits
0 0.
0 0,
0 0,
0 0.
1 f3i0.
1 iif71.
0 p.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0,
0 0.
0 0.
0 0.
0 0.
0 0.
1 2i~l1.
3!
l0aZa9.
-------aiaabi.d- ------
^~aeaar siealita
0 0.
0 0,
0 0.
0 0.
0 0.
0 p,
0 0.
0 0.
0 0.
0 0,
0 0,
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0
0.
'-- -Age i i~svias-----
Total
Nq~bar saoaEita
0 0.
0 0.
0 0,
0 0,
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 6.
0 0.
0 0.
0 0,
0 0.
0 0.
0
0.
.._.-----otb~r ---------
4bta1
mmbar swwfits
0 0.
0 0.
0 O.
0 0.
0 0.
0 0.
0 p,
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0
0.
--------- total---------
1+Ota1
»r ~eaalits
0 0.
0 0.
0 0.
0 0.
1 !lf0.
1 1il71.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0,
0 0.
0 0.
o s_
0 p,
0 0,
0 0,
Z ~i731.
i!
l0ali].
A
N
SF.CITON F
SUMMARY OF PLAN PROVISIONS
GRS
43
SUMMARY OF PLAN PROVLSION3
A. Ordlnanoes
Plan established under the Code of Ordinance: fat the Village of Tequeata, Florida, (~apter 2, Article
Iq Division 1, Section 2~61(b~ and was moat re~xntly amended undcx Ordinance No.10-08 passed
and adopted on ~1une 12, 2008. The Plan is also governed by c•.aetain provisions of Part VQ, Chsplix
112, F14t der .S`tat es ~ ~ y~ R~~ C~
B. Egactlve Date
Not aurently available
C. Plan Yar
October 1 through September 30
D. Type of Plsn
Qualified. governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. 1Eligibltlty Re9alrernenb
All full-tune police officers and firefighters are eligible for membership on the date of emgloyment.
F. Crsdked Service
Service is masurnd as the total munba of years sad comgldoed months of a year as a police officer or
firefighter with the Village of Tequesta. No service is credited for any periods of emplayrneat for
which the member rioceived a refund of their co4tributions.
G. Competwtlon
Total cash rezrruneration for services rendered as a police officxr or firefighter.
H. Average >~lnal Corapensatbn (AFC)
The average of Canopeasation ovrr the highest S years during the last 10 years of C rodited Savioe;
does not include hmop sum payments of unused leave.
L Normalltetlrement
Eligibility: A member may rdire on the firms day of the month coincident with or next following
the earlier oi:
(1) age SS and 6 years of Credited Service, or
(2) age 52 and 25 years of Credited Service.
Benefit: 3.0% of AF+C died by the first b years of Credited Se:vi~ glue
3.S% of AFC multiplied by the nerd 4 years of Cindited Service, ph>s
4.0°ti of AFC multiplied by the next 5 years of C`nodited Service, phis
GRS
44
3.0°~ of AFC nmiltiplied by the next 6 years of Credited Servits~ p~
20'6 of AFC multiplied by the neat 4 years of Credited Service, P~
3.0•.6 of AFC multiplied by all years of Credited Service over 2S
Normal Farm
of Benefit: 10 Years Certain and Life thexesfter; other options are also available.
COLA: None
S~p1~al
Benefit: Au ntinees and benefir~aries raxiving pensiaat benefits grill be paid a supplmoetal
benefit equal to a20 for each year of the miemober's Credited Selviee up to a noaximrtm
of x600. The aupplanental boiefit ceases upoa the later of the death of the retired
member or beneficiary.
J. Early Redremeut
Eligibility: A member may elect to retire earlier than the Normal Retitreme~t Eligibility upoAn
attaitmsrnt of age 50 and 6 years of Credited Service.
Beuef'it: The Normal Retirement BeoeSt is reducod by 3.0°~ for each yar by whieh the Eady-
Ratirenrmrt dam pr+erxdea the Normml Rdirratient date.
Normal Fo~nn
of Benefit: l 0 Years Certain and Life tharaRer, other options are also available.
COLA: None
Supplanmml
Benefit: All refines and beneficiaries recaving pension banefita wr'll be paid a supplememal
benefit equal to S20 for each year of the membet'a C~ndited Service rep ~ a ma~dmrrm
of $600. The supplemental benefit ceases upom the later of the death of the rrtired
member or beneficiary.
K. Delayed Retirement
Same as Normal Retirement fairing into account compensation earned and service crodited uc~fil the
date of actual rdit+eanalt.
L Service Corrected DlsafblUty
~tt~~ Aoy- member who beoornes totally and pamsamtly disabled and unable to render
uset5rl and efficient service to the village as a result fi+om an act ooauring in the
paform~arrce of servicx for the Village is immediately digi6k for a disabiliRy benefit.
l3enefit: The accrued Normal Retirement Benefit talrirtg info account co~ensation eemed gad
servirx credited as of the date of disability with a minimano4 benefit equal to 42yb of
AFC.
Normal Form
of Benefit: 10 Years Certain and Life thereafter.
COLA: None
45
Supplemental
&x~ef t: All n~iaa and bat~cieries reoeiv9gg passion ba~6ts will be paid a st~rpl~l
beodt aloe! to 520 for each year of the manber's Credited Service up to a mexinmum
of 5600. The eaepplementai benefit ceases ~ ~ (~ of the death of the netirod
member or benef'ic~ary.
M. Non-Servla Connected plaabWty
~gi~Y~ Auy member who bow totally and p~eueotly disabled sad unable to rar3ar
useful and efficzeat service do the Village is immediately eligible for a disability
bcsaefit.
Benefit: The accrued Noztrmi Rctit+cmerrt Bmtfit taldog it~o aoootuat oofnpe~iaa earned and
service credited as of the date of disability with a minimum benefit equal Lo 2596 of
AFC.
Normal Form
of Benefit: 10 Ycars Certain and Life tha+eaftar.
COLA: None
3uppl~tal
Benefit: All retirees and beneficiaries reoedving pension bane5ts will be paid a supplenoental
bene5t equal to 5~ for each year of the member's G~+edhod Service up to a maairnum
of 5600. The aupplcmmtal benefit ceases upon the later of the death of the refined
member or bmeficasry.
N. Death In the Ljne of Daty
Eligibility: Members are eligible for survivor bend'its mgardleas of Crodited Service.
Benefit: The member's spouse or dependent child will receive the SO% of the member's AFC
as of the date of death.
Normal Form
of Hauefit: Payable for the lift of the beneficiary.
COLA: None
Supplane~al
Benefit: All retirees and beaeSciaries receiving paiaion benefit: Will be paid a suppleanmtal
beneSt equal m S20 for each year of the member's Creditexl Servicx up to a mtocimiwm
of 5600. The supplesnaatal benefit cexaea upon the later of the death of the refined
member or beneficiary.
O. Outer Pr+e-Retlremeet Desth
Eligibility: Members are eligible for survivor bened'its after the coer>ple~ion of 6 or more; years of
Credited Service.
Benefit: Tire bexteficiary will remeive the; actuarial equivalent of the member's aoctuod Normal
Retirement Heaefrt taking into accoerat compensation e:amed and service credited as of
the date of death.
GRS
46
Normal Form
of Benefit: 10 Years Certain
COLA: None
Supplernntal
Benefit: Ati retir+as and bemefiaariea re~otiving penaim benefits will be paid a suppleoaental
benefit equal to S20 for each year of the me~rber's Credited Savicx up to a ~itnum
of 5600. The supplrmental be>~ef t c~ y~ the later of the de~h of the r~red
member oc beneficiary.
The bencficiaty of a plan nxmbor with less then 6 y~eara of Credited Savioe at the time of death
will receive a r~efimd of the member's aocunmiatad co~ributioas.
P. Post RNtrement peach
Benefit ddermined by the form of benefit elected upon retir+ernent.
Q. Optlonsl Form
fn Lieu of electing the Normal Form of benefit, the optimal farms of benefits available to eli retirees are
the Life Annuity option or the 509ii. 66 2/396, 7596 and 10096 Jomt and Survivor optima.
R YeKed Tetminatbn
Eligibility: A member has earned anon-foefeitable right to Plan benefits after the completion of 6
years of G~edited Sa icc.
Be~ncfit: The barxfit is the member's accrucd Normal Retirement Basefit as of the date of
teramnetion, Benefit begins m the member's Normml Retiram~t date. Altermtivdy,
members can elect a red~xxd Early Retirenxnt benefit soy tune after age S0.
Normal Form
of Benefit: 10 Years Certain and Life tha+eafter, other options aro also available.
COLA: Nme
Benefit: Once m p'aY 4 all retirees and beoefiaaries receiving paoeion benefits will be paid
a supplemental benefit equal to 520 for each year of the raea~ber's Credited Savioe uP
to a mesiaooem of 5600. 'Ilse supplaneatal benefit ceases upon the later of the death of
the rNired mernlx~r ar beneficiary.
Mea-bers t~aminating employment with less than 6 years of Credited Service will roceive a refiuul of
their own soaunulated contributions.
S. Befonda
EuRnlxlitY: A11 s terminating ea~loymeot with less than 6 yeah of Credited Service are
cligibla Optionally. vested ~a (those with 6 or morti yenta of G~noditod 3ervioe)
may clect a r+e6md in liar of the vested bwefits othmwiae due
Baxfit: Refund of the mernbar's oontnbutions.
GRS
4'7
T. Member ConMbntiom
$% Of Compensation
U. E~byer Contribndons
Any additions] anw,nt determined by the actuary needed w fund the plan 1Y according to state
laws.
V. Cost of Living Inerases
Not Applicable
W.13'" Check
Not Applicable
X. Deferred Retlranent Option Plan
Eligibility: Plan members who have nsyt one of the following criteria are eligible for the DROP:
(1) ago SS and 6 years of Ceod~ited Service, or
(2) age S2 std 25 years of Credited Service.
Mcmbens moat make a -wrti~n election to participate in the DROP before the 27th year
of employment.
l3ene5t: Tlrc member's Qrodited Service and AFC at+e froeen upon entry imo the DROP.
The monthly retir+enn!nt bendrt ae deecn'bed under Namml Rdirmmrnt is cakuf~od
based upon the irozea C`tndited Service and AFC.
Maximum
DROP Period: 'The earlier of S years of participation in the DROP or 30 years of employment.
1ate~
Credited: The member's DROP account is redited on SeptembCr 30 of each year with
invastmemt airnings or lasses st the same rate earned by the pension firod less sny
ad~niniatrative .
Nom~el Forra
of l3Gnefit: Lump Sum; other optioos are also available.
COLA: Noce
Y. Otter Ancillary Beneflb
There are m Bacillary retirean:M type bents not required by bet which might be darned a
Village of Tequeata public Safely O~cers' Pension Trust Fund liability- if oontrnued beyond the
availability of fimti>ng by the current fun~diag sours,
Z Changes tlrom Prevlow Vilwtion
The contribution for Fiz+ef ghtera was reduced from 6.1 % to S.0%.
GRS