HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 04_02/01/2010VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2009
ANNUAL EMPLOYER CONTRIDUTION IS DETERMIl3l?D BY THIS VALUATION FOR THE
PLAN YEARS ENDING SEPTEMBER 30, 2010 AND SEPTEMBER 30, 2011
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GRS
December 2, 2009
Board of Trustees
Village of Tequesta Public Safety Officers
Pension Trust Fund
Tequesta, Florida
Dear Board Members:
We are pleased to present our October 1, 2009 Actuarial Valuation Report for the Plan. The purpose of the
Report is to set forth required comribution levels, to disclose plan assets and actuarial liabilities, to comment
on funding progress and to provide supporting information regarding the operation of the Plan. This Report
is also designed to comply with requirements of the State.
The valuation was performed on the basis of employer, retiree and financial information supplied by the
City. Although we did not audit this information, it was reviewed for reasonableness and comparability to
prior years.
The benefits valued are outlinrd at the end of the Report. Actuarial assuaaptians and the actuarial cost
method are also described herein. Any changes in benefits, assutnptior~ or methods are described in the
fast section.
As indicated below, the undersigned is a Member of the Arneiican Academy of Actuaries (MAAA) and
meets the Qualification Stamlarrls of the Academy of Actuaries to r the actuarial opinion Mein.
We will be pleased to answer any questions pertaining to thr valuation and to meet with you to review this
Report.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
Step Pahnquist, A MAAA, FCA Duane Howison, FSA, EA
Enrolled Actuary No. 08-1560 Enrolled Actuary No. 08-6169
Statement by Enrolled Actuary
This actuarial valuation and/or cost determination was prepancd and completed by me or under my
direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the
results are complete and accurate. In my opinion, the techniques ark assurmptions used are reasonable, meet
the requir+~ments and intent of Part VII, Chapter l 12, Florida Statutes, and are based on ger~ally 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 tnateaial ir~ease in plea costs or
required corrtribution rates have been taken into account in the valuation
~a.- ~ %~a..9
Date
08;~ 560
Enrollment Number
GRS
TABLE OF CONTENTS
~ ~ ~e
A 1. Discussion of Valuation Results 1
2. Chapter Revenue 3
B Valuation Results
1. Sumrrra,ry of Valuation Results 4
2. Actuarial Value of Benefits and Assets 7
3. Derivation of Employer Normal Cost 10
4. Liquidation of Unfiurded Liability 16
5. Actuarial Gains and Losses 18
6. Actual Compared to Expected Decrements 20
7. Actuarial Assumptions and Cost Method 21
8. Glossary of fierms 23
C Pension Fund Information
1. Srurunary of Assets 26
2. Summary of Fund's Income and Disbursements 27
3. Allocation of Assets by Group 28
4. Development of Actuarial Value of Assets 30
D Financial Accounting Information
1. FASB No. 35 32
2. GASB No. 25 33
3. GASB No. 27 35
E Miscellaneous Infornation
1. Reconciliation of Membership Data 38
2. Statistical Data 39
3. Age and Service Distributions 41
F Summary of Plan Provisions 43
~~
SECTION A
DISCUSSION OF VALUATION RESULTS
GRS
DISCUSSION OF VALUATION RESULTS
f R 1 er tri ns
The following is a schedule of required contributions developed in this year's anti the previous
actuarial valuations:
For FYE
04/30/10 )For FYE
09/3x/09 Increase
ease
Police Officers $ 97,690 $ 55,639 42,051
of Payroll 13.03 % 8.24 % 4.79 %
Firefighters 272,116 141,003 131,113
°!o of Payroll 18.96 % 10.57 % 8.39
Total Required Contn'butian 369,806 196,642 173,164
of Payton 16.93 % 9.79 % 7.14 %
The required employer contribution has been com~ted under the assumption that the amount to be
received from the State on behalf of police officers and firefighters this year will be equal to the base year
revenue of $103,585. If this year's payment from the State falls below the expected payment, then the
employer must raise its contribution by the difference. The required employer contribution was calculated
under the assumption that payment would be made in equal installments at the end of each morrth.
lgeanired Contribut~n Mgr Ffscal Year ndipQ 9/30/2011
The estimated required contribution for Police Officers is $102,950 (17.45% of next year's
expected payroll less allowable State Revenue). For Firefighters, the estimated required contribution is
$285,745 (23.87°/a of next year's expected payroll less allowable State Revenue). The total tequir~l
Village contribution for the fiscal year ending September 30, 2011 is $388,695.
Chances in Benefit Provisions
The employce contribution rate for firefighters has been decreased from 6.1% to SA% pursuant to
Ordinance Nn. 13-08 that was adopted on October 9, 2008. Our August 1, 2008 Actuarial Impact Statement
showed the effect of this amendment.
('ha_~e *~ Ach:a_risl Assarnnr_gons and Methods
The following changes have been made in actuarial assumptions and methods:
1) The assumed mortality rates were changed from the 1983 Getup Annuity Mortality Table to the
GR5
RP- 2000 Generational Mortality Table.
z
2) A five year asset smoothing method is now used to determine the actuarial value of assets.
Previously, the actuarial value of assets was set equal to market value.
3) The fiurding method was changed from the Aggregate Funding Method to the Entry Age Normal
Funding Method.
The net effete of these changes is a reduction in the required annual contribution equal to 0.92°!0 of
covered payroll. We further recommend that the assumed rate of investment return be reduced to no more
than 7.50'/o from the current rate of 8.0%.
A~,arial Exoerie,~
Overall experience since the last valuation has been unfavorable resulting in an actuarial loss of
$1,298,141. The loss is primarily due to a lower than expected investment return. The actuarial loss has
caused the required contribution to increase by 6.4% of covered payroA. The required contribution was
further increased by 1.0% of payroll due to an increased level of ~lministrative expernes.
~~~~
The funded ratio was 97.1% this year compared to 109.4% Iast year. The funded ratio is equal to
the actuarial value of assets divided by the actuarial accrued liability.
Variability of lFu,~~Contribation Rates
The Actuarial Cost Method used to determine the contribution is intended to produce contribution
rates which are generally Level. Even so, when experience differs from the assumptions, as it often does,
the employer's contribution can vary significantly from year-to-year.
Over time, if tht year-to-year gains and losses offset each other, the contribution rate would be
expected to return to the current level, but this does nat always happen.
The Actuarial Value of Assets exceeds the Market Value of Assets by $936,483 as of the
valuation date (see Section C). This difference will be gradually recognized over the next several years in
the absence of offsetting gains. If Market Value had been the basis for the valuation, the fiutded ratio
would have been 80.0% and the Village contribution rate would have been 21.14% instead of 16.93%.
The remainder of this Report includes detailed actuarial valuation results, infomsation relating to the
pension fund, miscellaneous information and statistics, and a surrttnary ofplan provisions.
GRS
3
CHAP'T'ER REVENUE
Increments in Chapter revenue over that received in 1998 must first be used to fund the cost of
compliance with minimum benefits. Once minimums are met, any subsequent additional Chapter revenue
must be used to provide extra benefits. As of the valuation date, all minimum requirements have been met.
Thus, any additional revenue must be used to provide extra benefits.
Actnarhtl Confrrmation of the Use of State Chapter MoYey
Police Fire Tool
1. Base Amount Previous Plan Year $ 33,130 g 68,050 $ 101,180
2. Amount Received for Previous Pion Yeat 65,148 136,854 202,002
3. Benefit Improvements Made in Previous Plan Year 0 2,445 2,405
4. Excess Funds for Previous Plan Year: (2) - (1} - (3) 32,018 66,399 98,41'1
5. Accumulated Excess at Beginning of Previous Year 1$6,199 88,147 274,346
6. Prior Fa~c~s Uscd in Pmvious Plan Year 0 0 0
7. Accumulated Excess as of Valuation Date
(Available for Benefit ImpROVements): (4) + {5} - (~ 218,217 154,346 3'72,763
8. Base Amount This Plan Year. (1) + {3) 33,134 70,455 103,585
The Accumulated Excess shown in line 7 (if any) is being held in reserve to pay for additional
benefits. The reserve is subtracted :6rorrt Plan assets (soe Section C of this Report}. The Banc Amount in
line 8 is the maximum amount the employer may take as a credit against its required contribution;
however, in no event may the employer take cr+adit for more than the actual amount of Chapter revenue
received.
GRS
SECTION B
VALUATION RESULTS
GRS
4
SUMMARY OF VALUATION RESULTS
As of O~ober 1
1009 4Jter C 1009 Beforo Granges 2007
COVERED GROUP
A. Number Included in the Valuation
1. Active Members 31 31 29
2. Inactive Members 2 2 1
B. Covered Annual Payro11 $ 2,184,690 $ 2,184,690 $ 1,931,871
LONG RANGE COST
C. Actuarial Present Value ofProjected Benefits 9,932,973 9,389,509 7,710,989
D. Actuarial Value of Assets 5,298,959 4,365,580 4,080,609
E. Actuarial Present Value of Future Contrib.
1. Total C - D 4,634,014 5,023,929 3,b30,380
2. Portion Assigned to Unfunded Actuarial
Actuarial Accrued Liability (UFAAL) 159,546 0 0
3. Portion Assigned to Future Normal Costs 4,474,468 5,023,929 3,630,380
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL 15,047 0 0
As % of B 0.69 % - % ---
G. Annual Employer Normal Cost 439,350 473,401 274,952
As % of B 20.1 l % 21.67 % 14.23
H. Interest on F + G from Valuation Date to
Contribution Dates) _ 18,994 t9,789 11,493
As % of B 0.87 % 0.91 % 0.59 %
I. Required Employer Contn~bs: F + G + H 473,391 493,190 28b,445
As % of B 21.67 % 22.57 % 14.$3
J. Estimated State Premium Tax Refund 103,585 103,585 101,180
As % of B 4.74 % 4.74 % 5.24
K. Balance Required from Employer: I - J 369,806 389,605 185,265
As % of B 1 b.93 % 17,83 % 9.59
L. Year to which Contributions Apply
1. Plan Year Ending 4/30/10 9/30/10 9/30/08
2. Employer Fiscal Year Ending 9/30/10 9/30/IO 9/30/08
3. Assumed bate(s) of Employer Contribs. Monthly Monthly Monthly
M. Required Employer Contribution for Fiscal
Year Ending 9/30/11 and 9/30/09 388,b95 409,398 196,b42
As % of'10-'1 l Payroll 17.11 % 18.02 °/a 9.79 °/a
~.T1W
5
LONG RANGE COST
C. Actuarial Present Value 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 Contnb.
1. Total C - D 1,318,427 1,421,382 1,067,263
2. Portion Assigner to Unfimded Actuarial
Accrued Liability (UFAAL} (346,507) 0 0
3. Portion Assigned to Future Normal Costs 1,664,934 1,421,382 1,067,263
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL (32,678) 0 0
As % of B (4.36) -- --
G. Annual Employer Normal Cost 158,249 121,550 81,946
As % of B 21.10 % 16.21 % 12.62
H. Interest on F + G firm Valuation Date to
Contribution Dates} 5,249 5,081 3,425
As % of $ 0.70 % 0.68 % 0.53
I. Required Employer Contribs. F + G + H 130,820 126,631 85,371
As % of B 17.45 % 16.89 % 1315
J. Estimated State Premium Tax Refund 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 9130/10 9/30/10 9130/08
2. Employer Fiscal Year Ending 9/30/10 4/30/10 9/30/08
3. Assumed Date(s) of Employer Contribs. Monthly Monthly Mantbly
M. Required Employer Contribution for Fiscal
Year Ending 9/30/I 1 and 9/30/09 102,950 98,583 55,639
As °/n of'IO-'11 Payroll 13.20 °/i 12.64 % $.24
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6
C. Actuarial Present Value of Projected Benefits
D. Actuarial Value of Assets
E. Actuarial Present Value of Future Contrib.
1. Total C - D
2. Portion Assigned to Unfunded Actuarial
Accrued Liability (UAAL)
3. Portion Assigned to Future Normal Costs 7,280,640
3,965,053
3,315,5$7
506,053
2,809,534 6,884,104
3,281,557
3,602,547
4
3,602,547 5,664,448
3,101,331
2,563,117
0
2,563,117
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL 47,725 0 0
As % of B 3.33 % --- % --
G. Annual Employer Normal Cost 281,101 351,851 193,006
As % of $ 19.59 % 24.52 % 15.05
H. Interest on F + G from Valuation Date to
Contn'bution Date(s) 13,745 14,708 8,068
As % of B 0.96 % i .03 % 0.63 %
I. Required Employer Contribs: F + G + H 342,571 366,559 201,0?4
As % of B 23.$7 % 25.55 % 15.67 %
J. Estimated State Premium Tax Refund 70,455 70,455 68,050
As % of $ 4.91 % 4.91 % 5.30 %
K. Balance Required from Employer: t - J 272,116 296,104 133,024
As % of B 18.96 % 20.64 % 10.37 %
L. Year to which Contributions Apply
l . Plan Year Ending 9/30/10 9/30/10 9/30/08
2. Employer Fiscal Year Ending 9/30/10 9/30/10 9/30V08
3. Assumed Date(s) of Employer Contribs. Marithly Monthly Monthly
M. Required Employer Contribution for Fiscal
Year Ending 9/30/11 and 9130/09 285,745 310,815 141,003
As % of'10-'11 Payroll 1915 % 20.83 °!0 10.57
l.T~
ACTUARIAL VALUE OF BENEFITS AND ASSETS
POLYCE AND FIRE COMBINED -AFTER CHANGES
A. Valuation Date Octobex 1, 2009
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 8,479,131
b. Vestin8 Benefits 579,443
c. Disability Benefits 656,399
d. Preretirement Death Benefits 95,567
e. Return of Member Contributions 14,171
is Total 9,824,711
2. Inactive Members
a. Service Retirees & 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. 25 5,458,505
D. Actuarial Value of Accumulated Plan
Benefits per FASB No. 3S 3,837,864
E. Plan Assets
1. Market Value 4,362,476
2. Actuarial Value ~ 5,298,959
F_ Unfunded Actuarial Accrued Liability: C - E2 159,546
G. Actuarial Present 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 CHANGES
A. Valuation Date October 1, 2009
B. Actuarial Present Value of A!1 Projected
Benefits for
~. Active Members
a. Service Retirement Benefits $ 2,203,711
b. Vesting Benefits 169,?35
c. Disability Benefits 214,373
d. Preretirement 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 26,574
d. Total 26,574
3. Total for All Members 2,652,333
C. Actuarial Accrued {Past Service)
Liability per GASB No. 25 987,399
D. Actuarial Value of Accumulated Plan
Benefits per FASB No. 3S 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 (34b,507)
G. Actuarial Present Value of Projected
Covered Payroll 7,290,043
H. Actuarial Present Value of Projected
Member Contributions 364,502
~~
ACTUARIAL VALUE OF BENEFITS AND ASSETS
FIRE - AFTER CHANGES
A. Valuation Date Cktober 1, 2009
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 6,275,420
b. Vesting Benefits 409,708
c. Disability Benefits 442,026
d. Preretirement Death Benefits 63,963
e. Return of Member Contributions 7,835
f. Total 7,198,952
2. Inactive Members
a. Service Retirees & Beneficiaries -
b. Disability Retirees -
c. Terminated Vested Members 81.688
d. Total 81,688
3. Total for All Members 7,280,640
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25 4,471,106
D. Actuarial Value of Accumulated Plan
Benefits per FAS$ No. 35 3,158,064
E. Plan Assets
1. Market Value 3,278,453
2. Actuarial Value 3,965,053
F. Unfunded Actuarial Accrued Liability: G E2 506,053
G. Actuarial Present Value of Projected
Covered Payroll 13,156,475
H. Actuarial Present Value of Projected
Member Contributions 657,824
~.[~
to
soTg GROUPS cOMSitNED
DERIVATION OF EMPLOYER NORMAL COST -AGGREGATE METHOD
As of October I
2009 2007
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 7,925,672 $ 6,436,761
b. Vesting Benefits 540,237 458,255
c. Disability Benefits 621,113 565,962
d. Pneretirement Death Benefits 188,385 172,949
e. Return of Member Contributions 14,320 13,747
f. Other _ _
& T~ 9,289,727 7,647,674
2, Inactive Members
a. Service Retirees 8t Benefits - _
b. Disability Retirees _ _
c. Terminated Vested Members 99,782 63,315
d. Total 99,782 63,315
3. Total for All Members 9,389,509 7,710,989
B. Actuarial Value of Assets 4,362,476 4,080,609
C. Unfunded Frown Actuarial Accreted
I.iaiblity (UFAAL} _
D. Actuarial Present Value of Projected
Member Contributions 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 Value of Projected
Covered Payroll 20,363,b13 19,005,438
G. Employer Normal Cost Rate: 100 x E/F N/A N/A
H. Annual Payroll of Active Members 2,184,690 1,931,871
I. Assumed Amotutt of Administrative
Expenses 41,376 17,025
J. Employer Normal Cost: (G x H} + I 473,688 274,952
~~
POLICE OFFICERS
DERIVATION OF EMPLOYER NORMAL COST -AGGREGATE METHOD
As of October 1
ZIi09 Z(107
A. Actuarial Present Value of Projected
Benefits far
1. Active Members
a, Service Retirement Benefits ~ 2,053,240 S 1,690,493
b. Vesting Benefits 156,587 117,419
c. Disability Benefits 202,659 180,2b9
d. Freretirement Death Benefits 62,082 54,053
e. Return of Member Contributions 6,474 4,307
f. C)ther
g. Total 2,481,042 2,046,541
2. Inactive Members
a. Service Retirees ~ 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. Unfunded Frozen Actuarial Accrued
Liaiblity (UFAAL} _ _
D. Actuarial Present Value of Projected
Member Contributions 362,924 314,386
E. Actuarial Present Value of Projected
>;mmployer Normal Costs: A3 - B - C • D 1,058,45$ 752,877
F. Actuarial Present Value of Projected
Covered Payroll 7,258,472 6,281,?28
G. Employer Normal Cost Rate: 100 x E/F 14.5$ % 1197 Qlo
H. Annual Payroll of Active Members 749,835 649,0$4
I. Assumed Amount of Administrative
Expenses 12,22A 4,251
J. Employer Norntal Cost: (G x ~ + 1 121,550 81,946
~i47
l2
DERIVATION OF EMPLOYER NORMAL COST -AGGREGATE METHOD
As of October 1
---.__- 2009 21107
A. Actuarial Pnysent Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 5,872,432 $ 4,746,268
b. Vesting Benefits 383,650 340,836
c. Disability Benefits 418,454 385,693
d. Preretirement Death Benefits 126,303 1 18,896
e. Return of Member Contributions 7,846 9,440
f. Other _ _
g. Total b,808,685 5,601,133
2. Inactive Members
a. Service Retirees Bt Benefits .. -
b. Disability Retirees _
c. Terminated Vested Members 75,419 63,315
d. IoW 75,419 63,315
3. Total for All Members 6,884,104 5,664,448
B. Actuarial Value ofAssets 3,278,453 3,101,331
C. Unfunded Frozen Actuarial Accrued
Liaiblity {UFAAL) _
D. Actuarial Present Value ofFrojected
Member Contributions 655,257 775,780
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 2,950,394 1,787,337
F. Actuarial Present Value of Projected
Covered Payroll 13,105,141 12,717,710
G. Employer Normal Cost Rater 1()<} x E/F 22.51 % 14.OS
H. Annual Payroll of Active Members 1,434,855 1,282,787
I. Assumed Amount of Administrative
Expenses 29,152 12,774
J. Employer Noxrnal Cost: (G x H) + I 352,138 193,006
V~
13
ENTRY AGE CALCULATION OF EMPLOYER NORMAL
COST -- TOTAL
A. Valuation Date ~ October 1, 2009
B. Normal Cost for
1. Service Retirement Benefits $ 411,515
2. Vesting Benefits 34,789
3. Disability Benefits 50,341
4. Preretirement Death Benefits 7,288
5. Return of Member Contributions 3,276
6. Total for Future Benefits 507,209
7. Assumed Amount for administrative
Expenses 41,376
8. Total Normal Cost 548,585
C. Expected Member Contribution ~ 109,235
D. Employer Normal Cast: B8~ ~ 439,350
E. Employer Normal Cost as % of
Covered. Payroll 20.11
~1~
14
ENTRY AGE CALCULATION OF EMPLOYER NORMAL
COST -POLICE
A. Valuation Date ~ October 1, 2009
B. Normal Cost for
1. Service Retit+etnent Benefits $ 151,024
2. Vesting Benefits 9,377
3. Disability Benefits 19,382
4. Preretirement Death Benefits 2,767
5. Retain of Member Contributions 967
6. Total for Future Benefits 183,517
7. Assumed Amount for Administrative
Expenses 12,224
8. Total Normal Cost 195,741
C. Expected Member Contribution ~ 37,492
D. Employer Normal Cost: B8-C i 158,249
E. Employer Normal Cost as % of
Covered Payroll 21.10
~1~
15
ENTRY AGE CALCULATION OF EMPLOYER NORMAL
COST -FIRE
A. Valuation Date ~ October 1, 2009
B. Normal Cost for
1. Service Retirement Benefits $ 260,491
2. Vesting Benefits 25,412
3. Disability Benefits 30,959
4. Preretirement Death Benefits 4,521
5. Return of Member Contributions 2,309
b. Total for Future Benefits 323,692
T. Assumed Amount for Administrative
Expenses 29,152
8. Total Normal Cost 352,844
C. Expected Member Contnbution ~ 71,743
D, Employer Normal Cost: B8-C ~ 281,101
E. Employer Normal Cost as % of
Covered Payroll 19.59
lJ~ -
lb
LIQUIDATION OF THE UN~`UNDED ACTUARIAL ACCRUED LIABII.ITY -POLICE
B. Amorbizatio chedule
The UAAL is being amortized as a level dollar amount over the number of years retn~aining in the
amortization period. The expectod amortization schedule is as follows;
Amortization Sehedale
Year Expected UAAL
2009 ~ (346,507)
2010 (338,933)
2011 (33Q755)
2012 (321,923)
2013 (312,385)
2014 {302,083)
2019 (236,814)
2024 (140,912)
2029 -
2034 -
2039 -
147
17
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABII.ITY -FIREFIGHTERS
B. Amortization ScLedule
The UAAL is being amortized as a level dollar amount over the number of years remaining in the
amortization period. The expected amortization schodute is as follows:
AmortiuHon Schedale
Yesr Expected UAAL
2009 $ 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 -
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is
ACTUARIAL GAINS AND LOSSES
When the actual plan experience differs from the actuarial assumptions, an actuarial gain or loss is
the result. The net actuarial gain (loss} since the last valuation is computed as follows:
A. Normal Cost Rate Police
1. Last Valuation 11.97 °~
2. This Valuation 14.58
3. Change (2.61)
$. Present Value of Projected Payro11 $7,258,472
C. Actuarial Gain (Loss): A3 x B (189,446)
Fire
14.05
22.5 i
{8.46)
$13,105,141
(1,108,695}
The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan
so it is important that they are in lint with the actual experience. The following table on the next page
shows the actual fund earnings and salary increase rates compared to the assumed rates for the last few
years:
GRS
19
Salary Increases
Iavestme~ Return A ctual
Year En 9/30 Actual Assumed Police Flre Assumed
1994 (0.1) % $.0 % NA % 13.3 % 6.0 %
1995 21.6 8.d NA 14.1 6.0
1996 12.9 8.0 NA 8.1 6.d
1997 22.2 8.0 NA 4.8 6A
1998 12.2 8.0 NA 15.8 6.0
1999 13.2 8.0 3.4 8.7 6.0
20UU 18.7 8.0 15.4 10,3 6A
2001 (10.7) 8.0 19.6 18.6 6.0
2002 (3.7) 8.0 13.9 1.9 6.0
2003* 6.0 8.0 11.6 7.2 6.0
2004 8.1 8.0 11,5 10.2 6.0
2005 5.6 8.d 5.9 9.6 6.0
2006 3.7 8.0 8.7 8.6 6.d
2007 I3.5 8.0 7.6 4.4 6.0
2008 (12.0) 8.0 10.5 8.2 6.0
2009 (1.2) 8.0 4.6 3.4 6.0
Averages 6.4 8.0 10.1 9S 6.0
F Starting Public Safety (Police & Fire cjnly)
The actual investmerrt return rates shown above are based on the actuarial valuc of assets. The actual salary
increase rafts shown above are the increases received by those active members who were included in the
actuarial valuation bath at the beginning and the end of each period.
GRS
20
Actual {A) Compared to Ezpected (E) Decremems
Police Offlcetx
Number
Added Service & Active
Dnrin6 DROP Disability Termmnations Members
Year Year Retirement Retirement Death Vented Other To tals End of
Ended A E A E A E A E A A A E Year
9/30/2006 4 3 0 0 0 0 0 0 0 3 3 0 13
9/30/2007 1 4 0 0 0 0 0 0 0 4 4 0 10
9/30/2008 3 1 0 0 0 0 0 0 1 0 1 0 12
9/30/2009 1 1 0 0 0 0 0 0 0 1 1 0 12
9/30/2010 0 0 0 0
4 Yr Totals * 4 9 0 0 0 0 0 0 1 8 4 0
* Totals are through current Plan Year only
Actual (A) Compared to Expected (E) Decrements
Firefighters
Number
Added Service & Active
Durin= DROP Disabilitp Terminations Members
Year Year Retireuumt Retirement Deadt Vested Other To tals End of
Ended A E A E A E A E A A A E Year
9/30/2046 1 0 0 0 0 0 0 0 0 0 0 1 17
9/30/2007 3 1 0 0 0 0 0 0 0 1 1 1 19
9/30/2008 0 0 0 0 0 0 0 0 0 0 0 1 19
9!30/2009 0 0 0 0 0 0 0 0 0 0 0 I 19
9l30~2410 0 0 0 0 1
4 Yr Totals * 4 1 0 0 0 0 0 0 0 1 1 4
* Totals are through current Plan Year only
~~
21
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuation Methods
Actuarial Cost Method -Normal cost and the allocation of benefit values between service rendered
before and after the valuation date were detemnined using an Individual End-Age Actuarial Caatt
Method having the following characteristics.
(i) the annual norrnat cost for each individual active member, payable from the date of
employment to the date of retirement, is sufficient to accuumlate the vahte of the member's
benefit at the time of retirement;
(ii) each annual normal cast is a constant percentage of the member's year by year projected
covered pay.
Actuarial gains/(losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability.
Fina~tetug of Unfunded Actuarial Accrued I.tabllities -Unfunded Actuarial Accived Liabilities (full
funding credit if assets exceed liabilities) were amortized by level (principal 8t interest combined) dollar
contributions aver 20 years.
Actuarial Value of Assets -The Actuarial Value of Assets phase in the differencx between the expected
actuarial value a~ actual market value of assets at the rate of 20% per year. The Actuarial Vahn• of
Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is $M/o
of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan asses.
During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will
tend to be less than Market Value. During periods whey investment performance is less than assumed
rate, Actuarial Value of Assets will tend to be greater than Market Value.
Valuation Asanmptiana
The actuarial assrrn~ptfons used in the valuation are shown in this Section.
Economic Assumptions
The investment return rate assumed in the valuations is 8.0% per year, compounded annually (net after
investment expenses).
The Wage Infladan Rate assumed in this valuation was 4.0% per year. The Wage Inflation Rate is
defined to be the portion of total pay increases for an individual that are due W macroeconomic farces
including productivity, price inflation, and labor market conditions. The wage inflation rate does not
include pay changes related to individual merit a~ seniority effects.
The Pay increase assu~enption is ti% per year up to the assumed retirement age.
Demographic Asanmptians
The mortali{}- table was the RP -2000 Generational Mortality Table far males and females as shown on
the next page.
22
Sample
Attained
~s~in 2009) Probability of
Next Year
Mea Women Fatare LFe
Ex den ears
Men Women
50 0.18 % 0. I4 ~ ., 33.81 ~ 35.37
55 030 0.25 28.74 30.42
d0 0.58 0.48 23.79 25.65
b5 1.12 0.93 19.22 21.18
7p 1.94 1.60 15.08 1'7.07
75 3.33 2.61 11.38 1337
80 5.88 4.16 8.25 1025
This assumption is need to ttteasure the probabilities of each benefit payment being made after retiranent.
For disabled retirees, the regular mortality tables are set forward 5 years in ages to reflect impaired
longevity. For active members, the probabilities of dying before retirement were based upon the saw
mortality table as members dying after retirement.
Rates of retirement are not applicable as all participants are assumed to retire upon reaching normal
retirement date. Probability of early retirement is 5% for each year eligible.
Rates ojseparation fram active membership are shown on the table below.
Rates of disability among active members are shown on the table below.
Emp~yment
Termination Rates
Dim ~~
20 6.0% 0.14%
~ 5.7 0.15
30 5.0 0.18
35 3.8 0.23
40 2.6 0.30
45 1.6 0.51
50 0.8 I.00
55 0.3 I.55
60 02 -..
~11.J
a3
GLOSSARY OF TERMS
Actuarial Accrued Llability The difference between the Actuarial Present Value of Future Benefits,
{AAL) and the Actuarial Present Value of Future Normal Casts.
Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities,
such as: mortality, withdrawal, disablemerrt, and retirement; firiure
increases in salary; future rates of invest ; future investment
and administrative expenses; characteristics of members not specified in
the data, such as marital status; characteristics of future members; future
elections made by members; and other items.
Acwarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits
be;twcen the Actuarial Present Value of Future Normal Costs and the
Actuarial Accrued Liability.
Actuarial Equivalent Qf equal Actuarial Present Value, determined as of a given date and based
on a given set of Actuarial Assumptions.
Acprarial Present Value The amount of fiu~s required to provide a payment or series of payments
fAP~ in the future. It is determined by discounting the future payments with an
assumed interest rate and with the assumed probability each payment will
be made.
Actuarial Present Value of The Actuarial Present Vaha; of amounts which are expected to be paid at
Future Benefits (APVFB) various future times to active members, retired member, beneficiaries
receiving benefits, and inactive, nonretired members entitled to tither a
refund or a future retirement benefit. lrxpre~sed another way, it is the
value that would have to be invested on the valuation date so that the
amount invested plus investment earnings would provide sufficient assets
to pay all projected benefits and expenses when due.
Actuarial Valuation The detenriirtation, as of a valuation date, of the Nornial Cost, Actuarial
Accrued Liability, Actuarial Value of Assets, and related Actuarial
Present Values for a plan. An Actuarial Valuation far a governmental
retirement system typically also includes calculations of items noeded for
compliance with GASB No. 25, such as the Funded Ratio and the Axttaual
Required Contribution (ARC).
Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for
valuation purposes. This may be the market or fair value of plan assets
or a smoothed value in order to reduce the year-to-year volatility of
calculated results, such as the funded ratio and the actuarially required
contribution (ARC).
~~
24
Amortization Method A method for determining the Amortization Payment. The most common
m+cthods used are level dollar and level percentage of payroll. Under the
Level Dollar method, the Amortization Payment is one of a stream of
payments, all equal, whose Actuarial Present Value is equal to the UAAL.
Under the Level Percentage of Pay method, the Amortization Payment is
one of a stream of ~ payments, whose Actuarial present Value is
equal to the UAAL. Under the Level Percentage of Pay method, the
stream of payments irna~ases at the rate at which total coverod payroll of
all active members is assumed to increase.
Amortization Payment 'That portion of the plan contribution or ARC which is designed to pay
interest on and to amortize the Unfut~d Actuarial Accrued Liability.
Amortization Period The period used in calculating the Amortization Payment.
Annual Required The employer's periodic required contributions, expressed as a dollar
Contribution (ARC) amount or a percentage of covered plan compensation, determined under
GA$B No. 25. The ARC consists of the Employes Normal Cost and
Amortization Payment.
Closed Amortization Period A specific number of years that is reduced by one tech year, and declines
to zero with the passage of time. For example if the amortizatioa~ period is
initially set at 3D years, it is 29 years at the end of one year, 28 years at the
end of two years, etc.
Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is
equal to the Normal Cost less exported member contnbutions,
Equivalent Single For plans that do not establish separate amortisation bases (separate
Amortization Period components of the UAAL), this is the same as the Amortization Period
Far plans that do establish separate amorbzatioa bases, this is the period
over which the UAAL would be amortized if all amortization bests were
combined upon the current UAAI, payment.
Experience Gain/Loss A measure of the diffearnee between actual experience aml that eacpectod
based upon a sot of Actuarial Assumptions, during the period between two
actuarial valuations. To the exte~rt that actual experience differs ft+~ that
assumed, Unfunded Actuarial Accrued Liabilities emerge which may be
larger or smalls than projected. Gains are due to favorable experience,
e.g., the assets earn nmre than projected, salaries ~ not increase as fast as
assumed, members retire later than assun~d, etc. Favorable experience
moans actual results produce actuarial liabilities not as large as projected
by the actuarial assumptions. 4n the other hand, losses art the result of
unfavorable experience, i.e., actual results that produce Unfunded
Actuarial Accrued Liabilities which are larger than projected.
GRS
as
Funded Ratlo The ratio of the Actuarial Value of Assets to the Achrarial Ac~uad
Liability.
GASB Governmental Accounting Standards Board
GASB No. ZS and These are the governmental accounting sta~ards that sex the aecourrting
GASB No. 27 rules for public ~+etirement systems and the employers that sponsor or
contn`bute to them. Statement No. 27 sets the accounting rules for the
employers that spanaor or contribute to public retin~rt systems, while
Statement No. 2S sets the rules for the systems themselves.
Normal Cost The annual cost assigned, under the Achrarial Cost Method, to the aur+ent
plan year.
Open ArnaKfzation Period An open amortization period is one which is used to determine the
Amortization Payment but which does not change over time. 1n other
words, if the initial period is set as 30 years, the same 3U-year period is
used in determining the Amortization Period each yeas In theory, if an
Open Amortization Period is used to amortize the Unfiarxled Actuarial
Accrued Liability, the UAAL will never completely disappear, but will
become smaller each year, either as a dollar amount or in relation to
covered payroll.
Unfunded Actuarial Accrued The difference between the Actuarial Accrued Liability and Actuarial
~d~' Value of Assets.
Valuation Date The date as of which the Actuarial Present Value of Future Benefits are
determined. The benefits expected to be paid in the future are discounted
to this date.
GRS
SECTION C
PENSION FUND INFOItMATiON
GRS
26
SUMMARY OF ASSETS
9/30/Z009 9/30/218
Cash and. Securities -Market Value
Cash $ 2,647 ~ -
Money Market Funds 283,250 361,878
Treasury and Agency Bonds ~ Notes 855,149 1,193,030
Corporate Bands 795,993 470,792
Common St~ks 2,754,735 2,187,326
Pooled Equity Funds _ _
Pooled Bond Funds _
other Securities _ _
Total 4,691,774 4,213,026
Receivables and Accruals
Member Contribution 4,790 _
Employer Contribution 58,013 84,483
Interest and Dividends 16,742 17,064
Duo from Broker - 14,884
Tam 79,545 116,431
Payables and Reserns
Accounts Payable 11,121 14,329
State Contribution Reserve 372,763 274,346
Benefits _ _
Refunds _ _
Due to broker 24,959 -
T~ 408,843 288,6?5
~ Net Asaeta ~ Market Value _ 4,362,476 4,040,782
61>m pn
GRS
27
PENSION FUND INCOME AND DISBURSEMENTS
Year Ending Year Ending
9/30/2009 9/30/2008
Market Value at of Period $ 4,315,128 $ 4,346 307
Income
Member Contributions 103,134 115,980
State Contributions 202,002 229,173
Employer Contrt3mtions 224,b18 215,084
Investment Earnings
Interest plc Dividends 103,044 111,234
1(teaii~d Gain (Loss) {35,199) {46,226}
Unrealized Gain (Loss} (87,497) (585,709}
Total {19,652) (520,701)
Other Income _ _
'Tots! Income 510,102 39,53b
Disbursements
Monthly BeneSt Payments _ _
Lump Sum Distributions _
Refund of Contributions 12,268 1Q673
Investment Related E~cpenses 36,347 34,161
Other Administrative Expenses 41,376 25,881
Insurance Premiums _ _
Other _ _
Tam Disbursements 89,991 70,715
Net Increase During Period 420,1 i 1 (31,179)
Market Value at End of Period 4,735,239 4,315,128
Less: State Contribution Reserve 372,763 274,346
Final Market Valae 4,362,476 4,040,782
28
ALLOCATION OF ASSETS BY GROUP - SEPTEMBER 30, Z0~9
POLICE FIRE TOTAL
Market Valne en 9/30/48 $ 1,158,135 $ 3,156,993 $ 4,315,128
Percent of Total 26.8 % 73.2 % 100.0 %
Income
Contributions
M~~ 35,452 67,682 103,134
State 65,148 136,854 202,002
Employer 81,539 143,079 224,618
Other _ _ _
Investment Earnings
Interest ~ ~'~~~ 27,941 ?5,103 103,044
Realized Gain (Loss} (9,499) (25,700) (35,199)
unrealized Cain (Cuss) (22,072) (65,425) (87,x97)
Total (3,630) (16,022) (19,652)
Other Income _ _
Tata1 income 178,509 331,593 510,102
Expenses
Monthly Benefits _ _ _
Refunds and Lump Sums 12,268 - 12,268
Administrative Expenses 12,224 29,152 41,376
Investment Expenaes 9,912 26,435 36,347
Investment Adjustment _ _
Total Expenses 34,404 SS,587 89,991
Market Value on 1/34/49 1,302,240 3,432,999 4,735,239
Less State Contribntlon Reserve 218,217 154,546 372,763
Final Market Value 1,0$4,023 3,278,453 4,362,476
Percent of Total 24.8 % 75.2 % 100.0 °td
~~
29
ALLOCATION OF ASSETS BY GROUP - SEPTEMBER 30, 2Q48
POLICE FIRE TOTAL
Market Value on 913(1/Oy $ 1,128,03G $ 3,218,271 $ 4,34G,307
Percent of Total 26.0 °!0 74.4 % 100.0'%
Income
Contributions
M~~ 37,930 78,050 115,480
State 70,571 158,542 229,173
Employer 87,240 127,844 215,0$4
Other _ _ _
Investment Earnings
Interest ~ Dividends 29,528 81,706 111,234
Realized Gain (L,oss) (12,239) (33,987} (46,226}
Unrealized Gain {boss} (156,389} (429,320) (585,709)
Total (139,100} (381,601) (520,701)
Other Income _ _
T~ Income 56,641 (17,105} 39,536
Expenses
Monthly l~nel`its _ _ _
Refunds and bump Sums 10,673 - 10,673
Administrative Expenses 6,821 14,060 25,881
Investment Expenses 9,048- 25,113 34,161
l's-vcstm€~t Adjustment .. _
Total Expenses 26,542 44,173 70,715
Market Valne on 9/30/ 1,158,135 3,156,993 4,315,128
Less State Contirl~~on Reserve 186,199 88,147 274,346
Final Market Value 971,936 3,068,846 4,040,782
Percent of Total 24.1 °/a 75.9 % 100.0
~.[~
~n
Development of Actuarta! Value of Assets - Folice
Ye ar Eudirtg tem ber 30
2(108 2009 2010 ZOl l 2012
A. Hegiaaiag of Year Assets
]. Market Vahre'' $ 1,128,036 $ 1,158,]35 $ $ $
2. Actuarial Value* 1,128,03b 1,354,552
B. Net of Contriiattions
Leis ~~ 178,247 167,647
C. Actual Net Investment
(148,148) (13,542)
D. Expected Invesrtnent
~~ 97,3?3 114,670
E. Excess of Actual Over
Expected Iavestment
Eanniings: C - D (245,52 ]) (128,212)
F. Recognition of Excess
Earnipgs Over 5 Years
1. From This Year (49,104) (25,642) 0 0 0
2. From One Ycar Ago 0 {49,104) (25,642) 0 0
3. From Two Years Ago 0 0 (49,104} (25,642) 0
4. From Three Years Ago 0 0 0 (49,104} (25,642)
5. From Four Years AAo 0 _,~ 0 ~ 0 _ 0 149.104)
6. Total {49,104) (74,746) (74,746) (74,745} (74,746}
G. E~ of Year Assets
1. Maclcet Values 1,158,135 1,302,240
2. Actuarial Vahre:
A2 + B + D + Fb 1,354,552 1,552,123
3. Final Actuariat Value
Within 8090 to 120°h
Of Market Vah~e 1,354,552 1,552,123
4. Leas: State Coraribution Reserve 186,1 ~ 218,2 ] 7
S. Final Actuarial Vafie 1,168,333 1,333,906
•Before State Contnbution Reserve ~ Subtr~ted Out.
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Viw
SECTION D
FINANCIAL ACCOUNTING INFORMATION
<T147
32
FASB NC). 3S INFORMATION
F~ ~ dal
A. Actuarial Present Vahae of Accumulated
Plan Benefice
1. Vested Benefits
a. Members Currently Receiving Payments $ _ 8 _ $ _
b' Terminated Vested M~~ 26,574 81,688 108
242
c. Other Members 450,803 3,0(4,778 ,
3.445
580
d Total 477,377 3,096,446 ,
3,573,842
2. Non-Vested Benefits 202,423 41,598 264,022
3. Total Actuarial Present Value of Accumulated
Plan Benefits: 1d+2 479,800 3,158,064 3,837,864
4. Accumulated Contributions of Active Members 149,023 553,410 702,433
B. Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1. Total Value at Beginning of Period 4 t 9,409 2,065,239 2,484,648
2. Incrcese (Decrease) During the Period
Attributable to:
a. Plan Amendment 0 - 0
b. Change in Actuarial Assumptions 17,230 147,248 164,478
c. 1-steal M+~nber Data, Benefits Accumnlated
and Decrease in the Discount Period 266,102 945,577 1,211,679
d. Benefits Paid (22,941) - {22,941)
e. Net Increase 260,391 1,092,825 1,353,216
3. Total Value at End ofPeriod 679,800 3,158,064 3,837,864
C. Market Value of Assets 1,084,023 3,278,453 4,362,476
GR5
~n
SCHEDULE OF FUNDING PROGRESS
(GASB Statement No. 25}
Actaarial
Aocraed
Actaarla! Actnsris! Vslue
of A Liablilty (AAL)
- EntE')'' Age Unfnndea AAL
(UAAI,j
Faaded Ratio UAAL As % of
Va2lwtt~n Date
(a)
(b}
(b - a)
{alb} Covered Payroll Covered Payton
c c
10/1198 $ 934,659 $ 532,439 $ {402,220) 175.5% $ 967,853 {42.6)ti/o
10/If00 1,683,867 834,839 (849,028) 201.7 1,203,923 (?0.5)
10/1/02 1,875,557 1,428,869 (446,788) 131.3 2,132,437 (21.0)
IO/2/03` 1,966,I48 1,610,953 (355,185) 122.0 1,339,7 (26.5)
10/1/OS 2,782,953 2,598,331 (184,522) IO'7.1 1,650,403 (11.2)
1011/07 4,080,609 3,730,247 (350,362} 109.4 1,931,871 (18.1)
IO<1/09 5,298,959 5,458,505 159,54 97.1 2,184,690 {7.3}
* Start 2'c~tic Safety Plan only.
w
w
34
SCgEDULE OF EMPLOYER AND STATE OF FLORIDA CCENTRIBUTION5
(GASH Sbtement No. 7,.5)
Fiscal Year Ended
mbar 30 Annual Required
Cantribntion Actual
Co~ibutfoffi Page
Conttribnted
1994 $ 55,503 $ 55,751 100.50
1995 71,957 91,120 126.b
1996 92,343 100,118 108.4
1997 104,853 134,04$ 127.8
1998 123,417 172,072 139.4
1999 89,265 188,433* 211.1
2000 89,265 106,355* 119.1
2001 78,035 78,035* 100.4
2002 99,223 127,736* 128.7
2003 152,976 154,338* 100.9
2004 195,964 I95,964* 100.0
2005 203,833 245,816* 120.6
2006 272,363 277,213* 101.8
2047 283,229 302,345* 106.7
2008 288,850 318,669* 110.3
2009 300,227 328,203* 109.3
* Excludes State t+evenue in excess of baseline amount plus adjustments.
~~
35
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT N0.27)
POLICE OFFICERS
Employer FYE September 30 2010 2009 2008
A. Annual Required Contribution (ARC)* $ 130,820 $ 88,769 $ 85,371
B. Interest on Net Pension Obligation (NPQ) (11,742} (10,023) (7,486)
C. Adjustment to ARC (16,413} (14,431) (10,778}
D. Annual Ponsinn Cost (APC) (A+B-C} 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. Increase (decrease} 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 TREND INFORMATION
Fiscal Annual Pension Actual Percentage of Net Pension
Year Endin Cost {APG~ Contribution APC Contributed Obli tion
9/3d/2007 $ 113,012 $ 117,380 143.9 % $ (93,577)
9/30/2008 88,663 120,370 135.8 (125,284)
9/30/2009 93,177 114,669 123.1 146,776
~.J~
36
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT N0.2'1')
FIREFIGHTERS
Employer FYE September 30 2010 2009 2008
A. Annual Required Contribution (ARC)* $ 342,571 $ 2] 1,458 $ 201,074
B. Interest on Net Pension Obligation (NPO) (12,503) (12,664} (I3,425)
C. Adjustment to ARC (17,476) (16,751) {17,757)
d. Annual Pension Cost (APC) (A+B-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. Increase (decrease) in NPO (D-E} - 2,011 9,512
H. NPO at end of year (F+G) ~ - (156,2$7) (158,298)
* Includes expected State Contribution
THREE 'YEAH TREND INFORMATION
Fiscal Annual Pension Actual Pervxntage of Nei Pension
Year En ' Cost (APC) Contribution APC Contributed Obli tion
9/30/2007 $ 176,060 $ 184,965 105.1 % $ (1b7,810)
9/30/2008 205,406 195,894 95.4 {158,298)
9/30/2009 215,545 213,534 99.1 156,28
~1~
37
REQUIRED SUPPLEMENTARY INFORMATION
GASB Statement No. 2S and No. Z7
The infonmation presented in the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated. Additional infomntion as of the Latest actuarial
valuation:
Valuation date October 1, 2409
Contribution Rates
Employer (and State} 17.45% Police, 23.87%
Fire
Plan 5.00% Police
5.00% Fire
Actuarial Cost Method Entry Age Normal
Amortization Method NA
Remaining amortization period NA
Asset Valuation Method Five year smoothing
Actuarial Assumptions
Investment rate of return 8.0%
Projected salary increases 6.0%
Includes inflation and other general increases at 4.0%
Cost of Living adjustments Not Applicable
~1W
SECTION E
MISCELLANEOUS INFORMATION
GRS
RECONCILIATION OF MEMBERSHIP DATA
A. Active Members 1t1V1/!)S to lallftl? to
IW1~09 10lI/tt8
1. Number Included in Last Valuation 31 2g
2. New Memb~^s Included in Current Valuation 1 3
3. Non-Vested Far~loyment Terminations { 1) 0
4. Vestal Fanploymerrt Terminations 0 {1)
5. Service Retirts 0 0
6. Iisability Retiremeats 0 0
~. lxat~ a o
s. chher ~ ~
9. Number Included in This Valuation 31 31
B. Terminated Vested Members
l . Number Included in Last Valuation 2 1
2. Additions firm Active Members 0 1
3. Lump Sum Payments p 0
4. Payments Coal 0 0
S. Deaths 0 0
6. Other ~ U
7. Number I~luded in 'This Valuation 2 2
C.Service Retirees, Disability Retirees and Be~iciarfies
1. Numbea Included in Last Valuation 0 0
2. Additions from Active Members p p
3. Ac~iitions from Terminated Vested Members p p
4. D Resulting in No Further Paymemts p ~
5. Deaths Resulting in New Survivor Benefits p p
5. lend of Certain Period - No Furth Paym~ts p p
7. Otls~
8. Number Imcluded in This Valuation 0 0
w
00
39
STATISTICAL DATA
POLICE OFFICERS
10/1/03 14/1/OS 10/1/4'1 10/19
Active Members
~ ~ 12 10 12
T~ ~~ Payroll $ 424,795 $ 442,045 $449,084 $ 749,835
Average Annual ~ffi'Y 47,199 53,504 64,908 62
484
Other Averages ,
~~ ~ 33.7 34.9 39.4 39.0
Age at Fxnployment 31.4 34.0 35.5 34.4
Past ~ 2.1 2.9 4.1 4.6
Service Retirees and Be~ficiatles
Number 0 0 0 0
Total Annual Benefit $ __ $ w $ ~ $
Average Monthly Benefit _- ~ ~ _,,,,
Disab4fty Retirees
Number 0 0 0 0
Total Annual Benefit $ _~ $ _. $ w $ __
Average MonthlyBenefit -- ~- _„_ ~,_
Terminated Members With Vested Beaeftts
Number 0 0 0 1
Total Annual Benefit $ -.- $ -» $ -..- $ 9,340
Average Monthly Benefit --- _..,. ~ 780
~~
40
STATISTICAL 1?ATA
FIREFIi:HTERS
10/1/03 lOf1/05 10/1!07 2Q/1n19
Active Members
IVttmber 16 16 19 19
Total Annual Payroll $ 914,872 $ 1,008,358 $ 1,282,787 $ 1,434,855
Average Anntta! Salary 57,180 63,022 67,515 75,518
Other Averages
(,1~urent Abe 35.4 36.6 36.7 38.'7
Age at Employment 29.4 29.8 29.2 29.3
Past ~~ 6.0 6.8 7.5 9.4
GRS
41
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GRS
SECTION F
SUMMARY OF PLAN PROVISIONS
~~
43
SUMMARY OF PLAN PROVISIONS
A. Ordinances
plan established under the Code of Ordinances far the Village of Tequesta, Florida, Chapter 2, Article
III, Division 1, Section 2.61 (b), and was most recently amended under Ordinance No.10-08 passed
and adopted on June 12, 2tl(18. The Plan is also governed by certain provisions of pact VII, Chapter
112, Flq, fide Statutes and the Internal Revenue Code.
B. Effective Date
Not currently available
C. Plan Year
October 1 through September 3U
D. Type of Ptaa
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time police officers and firefighters are eligible for membership on the date of employment.
F. Credited Service
Service is measured as the total number of years and completed months of a year as a police officer or
firefighter with the Village of Tequesta. No seavice is cxedited for any periods of employment for
which the member received a refund of their contributions.
G. Compensation
Total cash remuneration for services rendered as a police officer or firefighter,
H. Average Final Compensafion (AFC)
The average of Compensation over the highest 5 years during the last 10 years of Credited Service;
does r-ot inchide lump sum payments of unused leave.
I. Normal Retirement
Eligibility: A member may retire on the first day of the month coincident with or next following
the earlier of:
(1) age 55 and b years of Credited Service, or
(2) age 52 and 25 years of Credited Service.
Benefit. 3.a°!o of AFC multiplied by the first b years of Credited Service, plus
3.5% of AFC multiplied by the nact 4 years of Credited Service, plus
4.d'~o of AFC multiplied by the next 5 years of Credited Service, phis
GRS
44
3.0% of AFC multiplied by the next 6 years of Credited Service, plus
2.0% of AFC multiplied by the next 4 years of Credited Service, plus
3.M/o of AFC multipliexl by all years of Credited Service ovear 2S
Normal Form
of Benefit: 10 Years Certain and Life thereafter; other options are also available.
COLA: None
Supplemental
Benefit: All retirees and beneficiaries receiving pension befits will be paid a s~plemental
bentfit equal to $20 for each year of the member's Credited Service up to a maximum
of $604. The supplemental benefit ceases upon the later of the oath of the retired
member or beneficiary.
J Early Retirement
Eligibility: A member may elect to retire earlier than the Normal Retitv~nent Eligibility upon
attainment of age 50 and 6 years of Credited Service.
Benefit: The Normal Retirement Benefit is raiuced by 3.0`/o f~ each year by which the Early
Retiremart date precedes the Normal Retirement date.
Nornial Form
of Benefit: l 0 Years Certain and Life thereafter, other options are also available.
COLA: None
Supplemental
Benefit: All retirees and beneficiaries receiving pension benefits will be paid a supplemental
benefit equal to $20 for each year of the member's Credited Service up to a maximum
of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
K. Delayed Retirement
Same as Normal Retiremeit taking into account compensation earned and service credited until the
date of actual retirement.
L. Service Connected Disability
Eligibility: Any member who becomes totally and peivianently disabled and unable to r
useful and efficient service to the Village as a result from an act occurring in the
performance of service for the ViIIage is imrnediatdy eligible for a disability benefit.
Benefit: The accrued Normal Retiranent Benefit taking into accowrt compensation earned and
service credited as of the date of disability with a minimum benefit equal to 42% of
AFC.
Normal Form
of Benefit: 10 Years Certain and Life thereafter.
COLA: None
~~
45
Supplemental
Benefit: All retirees and beneficiaries receiving pension benefits will be paid a supplemental
benefit equal to $20 for each year of the manber's Credited Service up to a maximum
of $600. The supplemental benefit ceases upon the Later of the death of the retired
memi~ea or beneficiary.
M. Non-Service Connected Disability
Eligibility: Any member who becomes totally and petmane~ntly disabled and unable to rider
useful and efficient service to the Village is immediately eligible for a disability
benefit.
Benefit: The acaued Normal Rttirm~ern Beneft taking into ~cottnt condensation earned and
service credited as of the date of disability with a minimum berarfit equal to 25% of
AFC.
Normal Form
of Benefit: 10 Years Certain and Life thereafter.
COLA: None
Supplemental
Benefit: All retirees and beneficiaries receiving pension benefits will be paid a supplemental
benefit equal to $20 for each year of the member's Credited Service up to a maximum
of $6~. The suppl~nental benefit ceases upon the later of the death of the retired
member or beneficiary.
N. Death in the Line of Doty
Eligibility: Members are eligible for survivor benefits regardless of Credited Service.
Benefit: The member's spouse or dependent child will receive the 50% of the member's AFC
as of the date of death.
Normal Form
of Benefit: Payable for the life of the beneficiary.
COLA: None
Supplerrrental
Benefit: All rdirees aml beneficiaries receiving pension benefits will be paid a supplemcetal
benefit equal to $20 for each year of the member's Credited Service up to a maximum
of $600. Thr supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
O. OtherPre-Retirement Death
Eligibility: Members are eligible for survivor benefits after the completion of 6 or more years of
Credited Service.
Benefit: The beneficiary will receive the achiarial equivalent of the member's accrued Normal
Retirement Benefit taking into account compensation earned aad service credited as of
the date of death.
~i47
46
Normal Form
of Benefit: 10 Years Certain
COLA: None
Supplemental
Benefit: Ali rexirees and bceeficiaries receiving pension benefits will be paid a supplemental
benefit equal to $20 for each year of the member's Credited Service up to a maximum
of $600. The supplemental benefit ceases upon the later of the death of the retired
rmermber or beneficiary.
The beneficiary of a plan member with less than 6 years of Credited Service at the time of death
will receive a refund of the member's acxutrnrlated comribttti~s.
P. Post Retirement Death
Benefit determined by the form of benefit electod upon retirement.
Q. Optional Forms
l'n Iieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are
the Life Annuity option or the 50%, 661J3%, 75% and 14(196, Joint and Survivor options.
R Vested Termination
Eiigibiliry: A member has earned anon-forfeitable right to Plan benefits after the completion of 6
years of Credited Service.
Benefit: The benefit is the member's accrued Normal Retirement Benefit as of the date of
termination. Benefit begins on the member's Normal Retirement date. Alternatively,
members can elect a reduced Early Retirement benefit any tune aftex age S0.
Normal Form
of Benefit: 10 Years Certain and Life thereafter; other options are also available.
COLA: Nnne
Supplemental
Benefit: Once in pay status, all retirees and beneficiaries receiving pemiom benefits will be paid
a suppll benefit equal to $20 for each }rear of the rd's Credited Service up
to a maximum of 5600. The supplemental benefit ,ceases upon the later of the death of
the retired memmber or beneficiary.
Members terminating employment with less than 6 years of Credited Service will receive a refund of
their own accumulated contributions.
S Refunds
Eligr~ility: All members terminating employment with less than 6 years of Credited Service are
eligible. ~ionailyv, vested members (those with 6 or more years of Credited Service}
may elect a refiuad in lieu of the vested benefits otherwise due.
Benefit: Refiurd of the member's contributions.
GRS
4'7
T. Member Contribution
S% of Compensation
U. Employer Contributions
Any additional amount determined by the actuary needed to fund the plan properly according to State
laws.
V. Cost of Living Increm~aeg
Not Applicable
W.13"' Check
Not Applicable
X. Deferred Retirement Option Plan
Eligibility: Plan members who have met one of the following criteria are eligible for the DROP:
(1) age SS and 6 years of Credited Service, ~
(2) age 52 and 25 years of Credited Setvice.
Members must make a written election to participate in the i3ROP before the 7th year
of employment.
Benefit: The member's Credited Service and AFC at+e fmzen upon entry into t>u: DROP.
The monthly t~ttiretn~ertt benefit as described under Normal Retiirement is caic~ttated
erased upon the frozen Credited Service and AFC.
Maxirnurn
DROP Period: The earlier of 5 years of participation in the DROP or 30 years of employment.
,interest
Credited: The member's DROP account is credited on September 30 of each year with
investment earnings or lasses at the same rate earned by the pension fund less any
administrative expenses.
Normal Form
of Benefit: Lump Sutra; other options are also available.
COLA: None
Y. Other Ancillary BencBts
There are no ancillary retirement type benefits not required by statattes but which ntight be deemed a
Village of Tequeeta Public Safety Officers' Pension Trust Fund liability if continued beyond the
availability of funding by the current funding source.
Z. Changes from Previous Valuation
The contribution far Firefighters was reduced from 6.1 % to 5 A%.
GRS