HomeMy WebLinkAboutDocumentation_Regular_Tab 02_08/08/2013 TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Summary of Actions for Quarter ending 06/30/13
1. The regular Board meeting was held on May 6, 2013.
2. Bogdahn (by Tyler Grumbfes) reviewed the 3/31/13 quarterly returns. At the end
of the quarter, the Plan's market value was $8,898,811 and the asset allocation
was Domestic Equity 48.3%, Intemational Equity 10.3%, Fixed Income 37.5%,
and Cash Equivalent 3.9%. The returns for the quarter were:
Quarter Retums:
Total Fund (Gross) 5.85% versus the benchmark at 5.85%.
Total Equity 9.64% versus the benchmark at 9.72%,
Total Domestic Equity 11.10% versus the benchmark at 11.07%
Total Intemational Equity 2.94% versus the benchmark at 3.27%,
Total Fixed Income was 0.43% versus the benchmark at 0.15%
Fiscal Year to date:
Total Fund (Gross) 7.09% versus the benchmark at 6.68%.
Total Equity 11.75% versus the benchmark at 11.03%,
Total Domestic Equity 12.38% versus the benchmark at 11.35°/a
Total International Equity 8.76% versus the benchmark at 9.35%,
Total Fixed Income was 0.57% versus the benchmark at 0.33%
See attached for 06/30/13 returns.
3. At the May meeting, the actuaries, Gabriel Roeder Smith and Company,
presented the actuarial valuation. See attached valuation. `
In summary, the valuation showed the plan was in good actuarial shape. The
funded ratio is 85.8% up from 84.5% last year. This funded ratio is equal to the
actuarial value of assets divided by the actuarial accrued liability.
The actuarial required contribution is 24.92% of payroll ($541,194) for the fiscal
year beginning October 1, 2013. This is an increase of 1.17%, or $4,913.00,
over last year's contribution. This increase is due mostly to the smoothed
investment rate of retum falling below 7.5% as of the end of the fiscal year on
the actuarial value of assets. The actual rate of return was 14.4% Currently, the
market value of assets is $57,622 less than the actuarial value which will be
recognized over the next several years. This is a substantial reduction from the
difference at September 30, 2011, which was over $725,000.
During the fiscal year the plan was closed to police officers hired on or after
February 1, 2013 and future 185 revenue is forfeited beginning with the calendar
year 2014. The Fund is expecting a 185 distribution for the 2013 calendar year.
Page 1 of 2
TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
Summary of Actions for Quarter ending 06/30/13
4. The Board discussed the IRS Determination Letter. This matter has been
pending since January 2009. The IRS has been studying the DROP plans
across the country and is contemplating a determination that these plans are a
defined contribution component of a defined benefit plan. The Board believes
that the DROP plan is a part of defined benefit plan. The IRS position centers
on the market rate of earnings and suggests to maintain the defined benefit
status that the rate be definitely determinable, such as a market rate with a floor
of 0% and a ceiling rate, or a fixed rate of return.
5. The Board reviewed an asset allocation report prepared to discuss fixed income
alternatives in light of the future expected rate of retum for fixed income. The
Board voted to change the asset allocation to:
US Equity 50%
Intemational Equity 15%
US Agg Fixed 30%
Diversified Bonds 5%
At the August meeting, the Board decided to diversify the fixed income and
invest the 5% allocatio� to the Templeton Global Total Retum fund.
6. A future meeting is scheduled for November 4, 2013.
H:\Tequesta PS 1011\Meeting\minutes\Council Mtgs�2013\Teq FF Summary of Actions (Updated) as of 06-30-12.wpd
Page 2 of 2
Asset Allocation
Total Fund
As of June 30. 2013
Asset Allocation By Segment as of Asset Allocation By Segment as of
March 31, 2013 :$8,898,811 June 30, 2013 :$8,917,312
Allocation Allocation
Segments Market Value Allocation Segments Market Value Allocation
■ Domestic Equity 4,298,246 48.3 ■ Domestic Equity 4,361,513 48.9
� International Equity 918,005 10.3 r±r Intemational Equity 911,292 10.2
Ilr Fixed Income 3,335,648 37.5 i Fixed Income 3,223,191 36.1
Cash Equivalent 346,911 3.9 Cash Equivalent 421,315 4.7
� THt
Page 10 � BOGDAHN
� GROUP
Asset Allocation
Total Fund
As of June 30. 2013
Asset Allocation By Manager as of Asset Allocation By Manager as of
March 31, 2013 :$8,898,811 June 30, 2013 :$8,917,312
_;�
..:=�=_ - _
I
Allocation Allocation
Market Value Allocation Market Value Allocation
1! PIMCO Total Return Instl (PTTRX) 3,343,727 37.6 ■ PIMCO Total Return Instl (PTTRX) 3,236,644 36.3
�• Gabelli/GAMCO Value 2,293,713 25.8 �� Gabelli/GAMCO Value 2,326,214 26.1
■ Brown Advisory (BAFGX) 2,185,931 24.6 ■ Brown Advisory (BAFGX) 2,209,084 24.8
Europacific Growth (RERGX) 918,005 10.3 Europacific Growth (RERGX) 911,292 10.2
■ Receipt & Disbursement 69,668 0.8 ■ Receipt & Disbursement 156,814 1.8
■ Rockwood Fixed Income 33,826 0.4 ■ Rockwood Fixed Income 32,599 0.4
Rockwood Equity 24,095 0.3 Rockwood Equity 23,613 0.3
Manning and Napier 21,718 0.2 Manning and Napier 20,756 0.2
Checking Account 8,127 0.1 Checking Account 296 0.0
� THt:
Page 11 � BOGDAHN
GROUP
Comparative Performance
Total Fund (Gross)
As of June 30, 2013
Comparative Performance
QTR FYTD 1 YR 3 YR 5 YR 7 YR Inception Inception
Date
Total Fund (Gross) -0.64 (77) 6.41 (67) 10.41 (77) 11.35 (52) 5.19 (65) 5.64 (37) 6.02 (59) 05/01/2005
� ,. . �:! . ,i. , .. .. . . � '.1 , 11 , . ..���i� t , r�.� r..Rl S 1F "i1; - j�l . ,,. i/{
I.)�tt,�� :-���, ,� U 9rs U i;4 1 3-1 D 11 0 77 ii 18 O�G
�`.I� i��� ����!r: i'ians-Total Fund Median �J 0? 7�1 12 'I'� 11 ;i7 5 43 5 40 6 14
Total Fund (Net) -0.73 6.03 9.98 10.91 4.77 5.18 5.55 05/01/2005
� �� �� Polirv o 3a � n5 �� ��, � � n6 5 �6 5 46 5 6?
Total Equity 0.90 12.78 19.36 17.93 4.86 5.53 5.68 04/01/2005
�,
� � �� � � � � � �� ,� �
Total Domestic Equfty 1.24 (87) 13.77 (52) 20.08 (82) 19.74 (21) 5.51 (85) 5.99 (56) 6.08 (77) 04/01/2005
Total International Equfty -0.73 (41) 7.97 (86) 15.94 (71) 9.59 (63) N/A N/A 5.38 (29) 05/01/2010
Total Fixed Income -3.17 (82) -2.62 (86) -1.81 (97) 2.73 (94) 4.19 (91) 4.91 (80) 4.34 (81) 04/01/2005
Difference 1-3y 1 16 1 d9 -0.30 -0 32 -0 18 -025
IM U.S. Broad Market Fixed Income (SA+CF+MF) Median -2.57 -1.63 1.01 4.45 5.95 5.88 5.30
Returns for periods greater than one year are annualized.
Retums are expressed as percentages. THE
Re[ums prior lo June 2010 do not include cash. � BOGDAHN
Page 18 � GROUP
Comparative Performance
Total Fund (Gross)
As of June 30, 2013
Comparative Performance
Oct-2011 Oct-2010 Oct-2009 Oct-2008 Oct-2007 Oct-2006 Oct-2005
FYTD To To To To To To To
Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006
Total Fund (Gross) 6.41 (67) 15.28 (83) 0.23 (51) 14.58 (2) -1.12 (76) -11.34 (19) 14.82 (41) 4.67 (97)
vi �� ,�� ����„ i � �� � , ,,. � _
� �
,:�. ,�-- ..� � 1, �� � s��� � sj �
Total Fund (Net) 6.03 14.79 -0.09 13.99 -1.39 -11.80 14.24 4.07
�i,i, i� � ,�:�, . �� � , ,� i (I._ i ,,
: 1 �1 3 81
Total Equity 12.76 25.01 -3.81 20.84 -10.99 -21.39 21.99 5.38
� � � , ,� 1(_� ..-1 �
Total Domestic Equfty 13.77 (52) 26.39 (73) -2.00 (81) 19.94 (2) -10.99 (93) -21.39 (60) 21.99 (13) 5.38 (95)
, : ,. , : :: ,:
�
,� � � � . _ ' _ , �
Totallnternational Equity 7.97 (88) 18.57 (14) -12.08 (78) N/A N/A N/A N/A N/A
�SA ta I (q5) 10 4� i3; i H 00 u.d3 ��1.�� 29 97 io�_� ,�_ �_ �'�U�
� 1:���� � �1 66 NIA N/A NlA N/A N/A
� � ,�, Cap Core Equity (MF) Medi��, , �'� � -, , � �>,�! � ,>' 24 '7 1 ft � �
Total Fixed Income -2.62 (86) 4.14 (98) 4.51 (43) 7.12 (95) 9.03 (81) 3.55 (15) 5.93 (13) 3.88 (37)
�olicy
� � � _ _ � , � . :,C; �
IM U.S. Broad Market Fixed Income (SA+CF+MF) Median -1.63 7.90 4.23 10.00 12.40 -1.49 4.89 3.66
Retums for penods grea[er than one year are annualized.
Retums are expressed as percentages. THt
Returns prior to June 2010 do not include cash. � BOGDAHN
Page 20 � GROUP
G� C Gabriel Roeder Smith & Company
,, Consultants & Actuaries
VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2012
ANNUAL EMPLOYER CONTRIBUTION FOR TI� FISCAL YEAR ENDING SEPTEMBER 30; 2014
GRS
��� Gabriel Raeder Smith & Company One East Broward Blvd. 954.527.1616 phone
Consultanu & Actuaries Suite 505 954.525.0083 f�
Ft. Lauderdale, FL 33301-1&04 www.gabnelroeder.com
Apri15, 2013
Board of Trustees
Village of Tequesta Public Safety Officers
Pension Trust Fund
Tequesta, Florida
Dear Board Members:
The results of the October 1, 2012 Actuarial Valuation of the Village of Tequesta Public Safety Officers
Pension Trust Fund are presented in this report.
This report was prepared at the request of the Boazd and is intended for use by the Retirement System and
those designated or approved by the Board. This report may be provided to pafties other than the System
only in its entirety and only with the permission of the Board.
The purpose of the valuation is to measure the System's funding progress, to determine the employer
contribution rate for the fiscal year ending September 30, 2014, and to determine the actuarial information
for Governmental Accounting Standards Board (GASB) Statement No. 25 and No. 27.
This report should not be relied on for any purpose other than the purpose described above.
The frndings in this report are based on data or other information thraugh September 30, 2012. Future
actuarial measurements may differ significantly from the cunent measurements presented in this report
due to such factors as the following: plan experience differing from that anticipated by the economic or
demographic assumptions; changes in economic or demographic assumptions; increases or decreases
expected as part of the natural' operation of the methodology used for these measurements (such as the
end of an amortization period or additional cost or contribution reyuirements based on the plan's funded
status); and changes in plan provisions or applicable law.
The valuation was based upon information furnished by the Village concerning Plan bene�ts, financial
t�rar�sactions, plan provisions and active members, terminated members, retirees and beneficiaries. We
checked for intemal and year-to-year consistency, but did not otherwise audit the data. We are not
responsible for the accuracy or completeness of the information provided by the �illage.
This report was prepared using certain assumptions prescribed by the Board as described in Section B.
The undersigned actuaries are members of the American Acaderny of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained
herein. The signing actuaries are independent of the plan sponsor.
This report has been prepared by actuaries who have substantial experience valuing public employee
retirement systems. To the best of our knowledge the information contai�ed in this report is accurate and
fairly presents the actuarial position of the Retirement F'lan as of the valuation date. All calculations have
been made in conformity with generally accepted actuarial principles and practices, with the Actuarial
Standards of Practice issued by the Actuarial Standards Board and with applicable statutes.
This actuarial valuation and/or cost determination was prepared and coinpieted by me or under my direct
supervision, and I acknowledge responsibility for the resutts. To the best of my knowledge, the results are
comple#e and aceurate. In my opinion, the bechniques and asswnptians used are reasor�abie, meet i3�e
requirements and intent of Part VII, Chapter 112, Florida S#a.tutes, and are based on generally accepted
actuarial principles and practices. There is no benefit or expense to be provided by the plan and/ar paid
from the plan's assets for which liabitities or current costs have not been established or otherwise taken into
account in the valuation. All known events or trends which may require a material increase in plan costs or
re�uirer� contribution rates have been taken ento account in the valuation.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
�
By ` By � � -
Je . Amrose, MA.AA Melissa R. Algayer, MAAA
rolled Actuary No. 11-b599 Enrolled Actuary No. 11-5467
Gabriel Roeder Smith & Company
TABLE OF CONTENTS
SecNon Title Pa�e
A 1. Discussion of Valuation Results 1
2. Chapter Revenue 3
B Valuation Results
1. Summary of Valuation Results 4
2. Actuarial Value of Benefits and Assets 7
3. Derivation of Employer Normal Cost 10
4. Liquidation of Unfunded Actuarial
Accrued Liability 13
5. Actuarial Gains and Losses 15
6. Actual Compared to Expected Decrements 18
7. Actuarial Assumptions and Cost Method 19
8. Glossary of Terms 22
C Pension Fund Information
1. Sta.tement of Plan Assets at Market Va1ue 25
2. Reconciliation of Plan Assets 26
3. Allocation of Assets by Group 27
4. Reconciliation of DROP Accounts 29
5. 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 Information
1. Reconciliation of Membership Data 38
2. Statistical Data 39
3. Age and Service Distributions 41
F Summary of Plan Provisions 43
GRS
SECTION A
DISCUSSION OF VALUATION RESULTS
GRS
1
DISCUSSION OF VALUATION RESULTS
Comuarison of Repuired Emnlover ContribuHons
A comparison of the required employer contribution developed in this and the last actuarial
valuarion is shown below.
For FYE For FYE Increase
9/30/2014 9/30/2013 ecrease
Police Officers $ 159,783 $ 179,595 (19,812)
% of Payroll 21.47 % 20.12 % 1.35 %
Firefighters 381,411 356,686 24,725
% of Payroll 26.72 % 26.12 % 0.60 %
Total Required Contnbution 541,194 536,281 4,913
% of Payroll 24.92 % 23.75 % 1.17 %
The required employer contribution has been adjusted for interest on the basis that payments are
made in equal installments at the end of each month. The required employer contribution has aLso been
computed under the assumption that the amount to be received from the State on behalf of police officers
and firefighters in 2013 will be equal to the base year revenue of $103,585 and that the amount to be
received from the State in 2014 will be equal to the firefighters base year revenue of $70,455. If the
payments from the State fall below the expected payments, then the employer must raise its contribution by
the difference.
The actual employer and State contributions for police oi�icers for the year ending September 30,
2012 were $170,534 and $33,130, respectively, for a total of $203,664, or 23.85% of payroll based on a
payroll amount of $853,952. The required contribution was 23.83% of payroll.
The actual employer and State contributions for firefighters for the year ending September 30, 2012
were $335,449 and $70,455, respectively, for a total of $405,904, or 31.35% of payroll based on a payroll
amount of $1,294,672. The required contribution was 31.28% of payroll.
Changes in Benefit Provisions
Under Ordinance No. 18-12, the Plan was closed to police officers hired on or after February 1,
2013 and future Chapter 185 revenue is forfeited beginning with the fiscal year ending September 30, 2014.
GRS
2
ChanEe in Actuarial Assumotions and Methods
There have been no changes in actuarial assumptions and methods since the last valuation.
Actuarial Ezaerience
Overall experience since the last valuation has been unfavorable resulting in an actuarial loss of
$52,296. The loss is primarily due to recognized investment return below the assumed rate of 7.5%. The
investment return was 14.4% based on market value of assets and 3.8% based on actuarial value of assets.
The investment loss was partially offset by gains due to more police officer terminations than expected. The
actuarial loss has caused the required contribution to increase by 0.2% of covered payroll.
Funded RaHo
The funded ratio is 85.8% this year compared to 84.5°/a last valuation. The funded ratio is equal to
the actuarial value of assets divided by the actuarial accrued liability.
Variabilitv of Future Contribution Itates
The Actuarial Cost Method used to detemune 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 the year-to-year gains and losses offset each other, the contribution raxe would be
expected to return to the current level, but this does not always happen.
The Actuarial Value of Assets exceeds the Market Va1ue of Assets by $57,622 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 Va1ue had been the basis for the valuation, the funded ratio would
have been 85.1% and the Village contribution rate would have been approximately 25.2% instead of
24.92%.
Conclusion
The remainder of this Report includes detailed actuarial valuation results, fmancial information,
miscellaneous information and statistics, and a summary of plan provisions.
GRS
3
CHAPTER REVENUE
Increments in Chapter revenue over that received in 1998 must first be used to fund the cost of
compliance with minimum benefits. Once minimwns 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.
Actuarial Confirmation of the Use of 5tate Chapter Money
Police F'ire Total
1. Base Amount Previous Plan Year $ 33,130 $ 70,455 $ 103,585
2. Amount Received for Previous Plan Year 56,466 128,114 184,580
3. Benefrt Improvements Made in Previous Plan Year 0 0 0
4. Excess Funds for Previous Plan Year: (2) -(1) -(3) 23,336 57,659 80,995
5. Accumulated Excess at Beginning of Previous Yeaz 266,932 291,225 558,157
6. Prior Excess Used 'm Previous Plan Year 0 0 0
7. Accumulated Excess as of Valuation Date
(Available for Benefrt Improvements): (4) +(5) -(6) 290,268 348,884 639,152
8. Base Amount This Plan Year: (1) +(3) 33,130 * 70,455 103,585
* Under Ordinance No. 18-12, the Plan was closed to police officers hired on or after February 1, 2013
and future Chapter 185 revenue is forfeited beginning with the fiscal year ending September 30, 2014.
The Accumulated Excess shown in line 7(if any) is being held in reserve to pay for additional
benefits. The reserve is subtracted from Plan assets (see Section C of this Report). The Base 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 credit for more tha.n the actual amount of Chapter revenue
received.
GRS
SECTION B
VALUATION RESULTS
GRS
4
SUMMARY OF VALUATION RESULTS
As of October 1
2011 2011
COVERID GROUP
A. Number Included in the Valuation
1. Active Members 27 30
2. Inactive Members 6 4
B. Covered Annual Payroll $ 2,116,667 $ 2,171,363
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits 13,299,349 12,724,230
D. Actuarial Value of Assets 7,371,147 6,526,370
E. Actuarial Present Vatue of Future Contnb.
1. Total C- D 5,928,202 6,197,860
2. Portion Assigned to Unfunded Actuarial
Actuarial Accrued Liability (iJFAAL) 1,224,113 1,194,189
3. Portion Assigned to Future Normal Costs 4,704,089 5,003,671
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize iJFAAL 114,960 109,611
As % of B 5.43 % 5.05 %
G. Annual Employer Normal Cost 456,898 482,326
As % of B 21.59 % 22.21 %
H. Adjustment for Frequency of Payment 22,457 23,248
As % of B 1.06 % 1.07 %
I. Required Employer Contnb: F+ G+ H 594,315 615,185
As % of B 28.08 % 28.33 %
J. Covered Payroll for Contnbution Year 2,171,561 2,171,363
K. Required Employer Contnb for Contnbution
Year 611,649 615,185
As % of J 28.17 % 28.33 %
L. Estimated State Premium Tax Refund 70,455 103,585
As % of J 3.24 % 4.77 %
M. Balance Required from Employer: K- L 541,194 511,600
As % of J 24.92 % 23.56 %
N. Year to wluch Contnbutions Apply
1. Plan Year Ending 9/30/2014 9/30/2012
2. Employer Fiscal Year Ending 9/30/2014 9/30/2012
3. Assumed Date(s) of Employer Contnbs. Monthly Monthly
O. Required Employer Contnbution for Fiscal
Yeaz Ending 9/30/2013 N/A 536,281
As % of 2012-2013 Payroll N/A 23.75 %
GRS
5
POLICE OFFICERS
SUMMARY OF VALUATION RESULTS
As of October 1
2012 2011
COVERED GROUP
A Nuxnber Included in the Valuation
1. Active Members 10 13
2. Inactive Members 3 1
B. Covered Annual Payroll $ 744,314 $ 858,342
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits 3,574,608 3,661,185
D. Actuarial Value of Assets 2,079,888 1,772,107
E. Actuarial Present Value of Future Contnb.
1. Total C- D 1,494,720 1,889,078
2. Portion Assigned to Unfunded Actuarial
Accrued Liability (UFAAI�) (192,651) (86,130)
3. Portion Assigned to Future Normal Costs 1,687,371 1,975,208
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL (19,433) (9,398)
As % of B (2.61) % (1.09) %
G. Annual Employer Normal Cost 173,178 206,197
As % of B 23.27 % 24.02 %
H. Adjustment for Frequency of Payment 6,038 7,729
As % of B 0.81 % 0.90 %
I. Required Employer Contnb: F+ G+ H 159,783 204,528
As % of B 21.47 % 23.83 %
J. Covered Payroll for Conmbution Year 744,314 858,342
K. Required Employer Contnb for Contnbution
Year: % from I x J 159,783 204,528
As % of J 21.47 % 23.83 %
L. Estimated State Premium Tax Refund 0 33,130
As % of J 0.00 % 3.86 %
M. Balance Required from Employer: K- L 159,783 171,398
As % of J 21.47 % 19.97 %
N. Year to which Contnbutions Apply
1. Plan Year Ending 9/30/2014 9/30/2012
2. Employer Fiscal Year Ending 9/30/2014 9/30/2012
3. Assumed Date(s) of Employer Contnbs. Monthly Monthly
O. Required Employer Contnbution for Fiscal
Year Ending 9/30/2013 N/A 179,595
As % of 2012-2013 Payroll N/A 20.12 %
GRS
6
FIREFIGHTERS
SUMMARY OF VALUATION RESULTS
As of October 1
2012 2011
COVERID GROUP
A. Number Included in the Valuation
1. Active Members 17 17
2. Inactive Members 3 3
B. Covered Annual Payroll $ 1,372,353 $ 1,313,021
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits 9,724,741 9,063,045
D. Actuarial Value of Assets 5,291,259 4,754,263
E. Actuarial Present Value of Future Contnb.
1. Total C- D 4,433,482 4,308,782
2. Portion Assigned to Unfunded Actuarial
Accrued Liability (iJAAL) 1,416,764 1,280,319
3. Portion Assigned to Future Normal Costs 3,016,718 3,028,463
CURRINT ANNUAL COST
F. Annual Payment Needed to Amortize iTFAAL 134,393 119,009
As % of B 9.79 % 9.06 %
G. Annual Employer Normal Cost 283,720 276,129
As % of B 20.67 % 21.03 %
H. Adjustment for Frequency of Payment 16,419 15,519
As % of B 1.20 % 1.18 %
I. Required Employer Contnb: F+ G+ H 434,532 410,657
As % of B 31.66 % 31.28 %
J. Covered Payroll for Contnbution Year 1,427,247 1,313,021
K. Required Employer Contnb for Contnbution
Year: % from I x J 451,866 410,657
As % of J 31.66 % 31.28 %
L. Estixnated State Premium Tax Refund 70,455 70,455
As % of J 4.94 % 5.37 %
M. Balance Required from Employer: K- L 381,411 340,202
As % of J 26.72 % 25.91 %
N. Year to which Contnbutions Apply
1. Plan Year Ending 9/30/2014 9/30/2012
2. Employer Fiscal Year Ending 9/30/2014 9/30/2012
3. Assumed Date(s) of Employer Contnbs. Monthly Monthly
O. Required Employer Contnbution for Fiscal
Year Ending 9/30/2013 N/A _ 356,686
As % of 2012-2013 Payroll N/A 26.12 %
GRS
�
ACTUARIAL VALUE OF BENEFITS AND ASSETS
POLICE AND FIRE COMBINED
A. Valuation Date October 1, 2012 October 1, 2011
B. Actuarial Present Value of All Projected
Benefrts for
1. Active Members
a. Service Retirement Benefits $ 9,913,580 $ 9,691,425
b. Vestmg Benefits 759,757 749,144
c. Disab�lity Benefrts 727,374 738,686
d. Preretirement Death Benefits 106,106 103,925
e. RetwYl of Member Contnbutions 2,626 7,071
f. Total 11,509,443 11,290,251
2. Inactive Members
a. Service Retirees & Beneficiaries 1,285,051 1,294,751
b. Disabilrty Retirees - -
c. Terminated Vested Members 504,855 139,228
d. Total 1,789,906 1,433,979
3. Total for All Members 13,299,349 12,724,230
C. Actuarial Accrued (Past Service)
Liab�l.y per GASB No. 25 8,595,260 7,720,559
D. Actuarial Vahxe of Acc�nut�ted Plan
Benefrts per FASB No. 35
1. Based on Plan's Interest Rate 6,388,099 5,701,607
2. Based on FRS Interest Ra.te 6,160,785 5,496,550
E. Plan Assets
1. Market Value 7,313,525 5,776,745
2. Actuarial Vahxe 7,371,147 6,526,370
F. Unfunded Actuarial Accrued Liab�7ity: C- E2 1,224,113 1,194,189
G. Actuarial Present Value of Projected
Covered Payroll 19,941,284 20,939,654
H. Actuarial Present Value of Projected
Member Contnbutions 997,064 1,046,983
GRS
8
ACTUARIAL VALUE OF BENEFITS AND ASSETS
POLICE
A. Valuation Date October 1, 2012 October 1, 2011
B. Actuarial Present Value of All Projected
Benefrts for
1. Active Members
a. Service Retirement Benef�s $ 2,669,022 $ 3,077,489
b. Vesting Benefrts 253,115 250,115
c. Disabi7ity Benefits 227,491 257,119
d. Preretffement Death Benefits 33,936 36,812
e. Return of Member Contnbutions 2,035 4,649
£ Total 3,185,599 3,626,184
2. Inactive Members
a. Service Retirees & Beneficiaries - -
b. Disabilily Retfrees - -
c. Terminated Vested Members 389,009 35,001
d Total 389,009 35,001
3. Total for AllMembers 3,574,608 3,661,185
C. Actuarial Accrued (Past Service)
Liabi7'rty per GASB No. 25 1,887,23'7 1,685,977
D. Actuarial Value of Accumula.ted Plan
Benefrts per FASB No. 35
1. Based on Plan's Interest Rate 1,311,311 1,175,244
2. Based on FRS Interest Rate 1,260,274 1,129,183
E. Plan Assets
1. Market Value 2,040,245 1,550,035
2. Actuarial Value 2,079,888 1,772,107
F. Unfunded Actuarial Accrued Liab�7ity: C- E2 (192,651) (86,130)
G. Actuarial Present Value of Projected
Covered Payroll 7,099,644 8,064,043
H. Actuarial Present Value of Projected
Member Contnbutions 354,982 403,202
GRS
9
ACTUARiAL VALUE OF BENEFITS AND ASSETS
FIRE
A. Valuation Date October 1, 2012 October 1, 2011
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefrts $ 7,244,558 $ 6,613,936
b. Vesting Benefrts 506,642 499,029
c. Disabilrty Benefrts 499,883 481,567
d. Preretirement Death Benefits 72,170 67,113
e. Return of Member Contributions 591 2,422
f. Total 8,323,844 7,664,06Z
2. Inactive Members
a. Service Retirees & Beneficiaries 1,285,051 1,294,751
b. Disab�ity Retaees - -
c. Terminated Vested Members 115,846 104,227
d Total 1,400,897 1,398,978
3. Total for All Members 9,724,741 9,063,045
C. Actuarial Accrued (Past Service)
Liab�7ity per GASB No. 25 6,708,023 6,034,582
D. Actuarial Value of Accumulated Plan
Benefrts per FASB No. 35
1. Based on Plan's Interest Rate 5,076,788 4,526,363
2. Based on FRS Interest Rate 4,900,511 4,367,367
E. Plan Assets
1. Market Va1ue 5,273,280 4,226,710
2. Actuarial Value 5,291,259 4,754,263
F. Unfunded Actuarial Accrued Liability: C- E2 1,416,764 1,280,319
G. Actuarial Present Vahze of Projected
Covered Payroll 12,841,640 12,875,611
H. Actuarial Present Value of Projected
Member Contnbutions 642,082 643,781
GRS
10
ENTRY AGE CALCULATION OF EMPLOYER NORMAL COST
TOTAL
A Valuation Date October 1, 2012 October 1, 2011
B. Norma.l Cost for
1. Service Retirement Benefrts $ 421,004 $ 441,743
2. Vesting Benefrts 42,878 42,507
3. Disability Benefrts 50,978 52,446
4. Preretirement Death Benefrts 7,144 7,223
5. Return of Member Contnbutions 3,275 3,263
6. Total for Future Benefrts 525,279 547,182
7. Assumed Amount for Administrative
E�cpenses 37,453 43,712
8. Total Normal Cost 562,732 590,894
C. Expected Mexnber Contrbution 105,834 108,568
D Employer Normal Cost: B8-C 456,898 482,326
E. Employer Normal Cost as % of
Covered Payroll 21.59 % 22.21 %
GRS
11
ENTRY AGE CALCULATION OF EMPLOYER NORMAL COST
POLICE
A Valuation Date October 1, 2012 October 1, 2011
B. Norn�al Cost for
1. Service Retirement Benefits $ 155,467 $ 187,336
2. Vesting Benefrts 12,346 13,339
3. Disability Benefits 20,066 23,110
4. Preretaement Death Benefits 2,780 3,147
5. Return of Member Contnbutions 1,009 1,094
6. Total for Future Benefrts 191,668 228,026
7. Assumed Amount for Adininistrative
E�enses 18,726 21,088
8. Total Normal Cost 210,394 249,114
C. E�ected Member Contnbution 37,216 42,917
D Employer Normal Cost: B8-C 173,178 206,197
E. Employer Normal Cost as % of
Covered Payroll 23.27 % 24.02 %
GRS
12
ENTRY AGE CALCULATION OF EMPLOYER NORMAL COST
FIRE
A Valuation Date October 1, 2012 October 1, 2011
B. Norma l Cost for
1. Service Retffement Benefrts $ 265,537 $ 254,407
2. Vesting Benefrts 30,532 29,168
3. Disabiliry Benefrts 30,912 29,336
4. Preretirement Death Benefrts 4,364 4,076
5. Return of Member Contnbutions 2,266 2,169
6. Total for Fut�e Benefits 333,611 319,156
7. Assumed Amount for Adrninistrative
Expenses 18,727 22,624
8. Tota.l Normal Cost 352,338 341,780
C. E�ected Member Contnbution 68,618 65,651
D Employer Normal Cost: B8-C 283,720 276,129
E. Employer Normal Cost as % of
Covered Payroll 20.67 % 21.U3 %
GRS
R
13
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY — POLICE
A. UAAL Amortization Period and Pa ents
Ori 'nal UAAL Current UAAL
Amortization
Date Period Years
Established 5ource (Yeais) Amount Remaining Amount Payment
10/1/2009 Initial Unfunded 20 $ (346,507) 17 $ (322,719) $ (31,822)
10/1/2011 Experience Loss 20 125,425 19 121,467 11,346
10/1/2011 Assumption Change 20 123,535 19 119,637 11,175
10/1/2012 Experience Gain 20 (111,036) 2p (111,036) (10,132)
$ (208,583) $ (192,651) $ (19,433)
B. Amortization Schedule
The UAAL is being amortized as a level dollar amount over the number of years remaining in the
amortizarion period. The expected amortization schedule is as follows:
Amorti7ation Schedule
Year Ezpected UAAL
2012 $ (192,651)
2013 (186,209)
2014 (179,284)
2015 (171,840)
2016 (163,837)
2017 (155,234)
2022 (101,519)
2027 (24,404)
2032 0
GRS
14
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY — FIREFIGHTERS
A. UAAL Amortization Period and Payments
Original UAAL Current UAAL
Amortization
Date Period Years
Established Source (Years) Amount Remaining Amount Payment
10/1/2009 Inrtial Unfunded 20 $ 506,053 17 $ 463,752 $ 45,728
10/1/2011 E�cperience Loss 20 415,047 19 407,062 38,022
10/1/2011 Assumption Change 20 390,124 19 382,618 35,739
10/1/2012 E�erience Loss 20 163,332 2p 163,332 14,904
$ 1,474,556 $ 1,416,764 $ 134,393
B. Amortization Schedule
The UAAL is being amortized as a level dollar amount over the number of years remaining in the
amortizaxion period. The expected amortiza.tion schedule is as follows:
Amorti7ation Schedule
Year Ezpected UAAL
2012 $ 1,416,764
2013 1,378,556
2014 1,337,475
2015 1,293,314
2016 1,245,840
2017 1,194,805
2022 876,145
2027 418,666
2032 0
GRS
15
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employrnent turnover, investment income, expenses,
salary increases, and other factors have been based on long range trends and expectations. Actual
experience can vary from these expectations. The variance is mea.sured by the gain and loss for the period
involved. If significant long term experience reveals consistent deviation from what has been expected and
that deviation is expected to continue, the assumptions should be modified. The net actuarial gain (loss) for
the past year is computed as follows:
Derivation of the Current UAAL - Police
1. Last Yeaz's UAAI, $ (86,130)
2. Last Year's Employer Normal Cost 206,197
3. Last Year's Contnbutions 203,664
4. Interest at the Assumed Rate on:
a. 1 and 2 for one year 9,005
b. 3 from dates paid 7,023
c. a - b 1,982
5. This Year's E�ected U�eAI,:
1 + 2 - 3 + 4c (81,615)
6. This Year's Actual UAAI, (Before any
changes in benefits and assumptions) (192,651)
7. Net Actuarial Gain (Loss): (5) -(6) 111,036
8. Gain (Loss) due to investments (82,194)
9. Gain (Loss) due to other sources 193,230
GRS
16
Derivatiou of the Current UAAL - Fire
1. Last Year's UAAL $ 1,280,319
2. Last Year's Employer Normal Cost 276,129
3. Last Year's Contnbutions 405,904
4. Interest at the Assumed Rate on:
a. 1 and 2 for one year 116,734
b. 3 from dates paid 13,846
c. a - b 102,888
5. This Year's E�ected UAAI,:
1+ 2- 3+ 4c 1,253,432
6. This Year's Actual UAAL (Before any
changes in benefits and assumptions) 1,416,764
7. Net Actuarial Gain (Loss): (5) - (6) (163,332)
8. Gain (Loss) due to investrnents (198,892)
9. Gain (Loss) due to other sources 35,560
The fund eamings and salary increase assumptions have considerable impact on the cost of the Plan
so it is important that they are in line with the actual experience. The following table on the next page
shows the actual fund earnings and salary increase rates compared to the assumed ra.tes for the last few
years:
GRS
17
Investment Return Salary Increases
Actual Actual
Year Ending 9/30 Police Fire Assumed Police Fre Assumed
1994 (0.1) % (0.1) % 8.0 NA % 13.3 % 6.0 %
1995 21.6 21.6 8.0 NA 14.1 6.0
1996 129 12.9 8.0 NA 8.1 6.0
1997 22.2 22.2 8.0 NA 4.8 6.0
1998 12.2 12.2 8.0 NA 15.8 6.0
1999 13.2 13.2 8.0 3.4 8.7 6.0
2000 18.7 18.7 8.0 15.4 10.3 6.0
2001 (10.7) (10.7) 8.0 19.6 18.6 6.0
2002 (3.7) (3.7) 8.0 13.9 7.9 6.0
2003* 6.0 6.0 8.0 11.6 7.2 6.0
2004 8.1 8.1 8.0 11.5 10.2 6.0
2005 5.6 5.6 8.0 5.9 9.6 6.0
2006 3.7 3.7 8.0 8.7 8.6 6.0
2007 13.5 13.5 8.0 7.6 4.4 6.0
2008 4.0 4.0 8.0 10.5 8.2 6.0
2009 2.8 2.6 8.0 4.6 3.4 6.0
2010 4.2 4.0 8.0 11.8 10.7 6.0
2011 2.6 2.6 8.0 (2.8) (3.1) 6.0
2012 3.7 3.8 7.5 10.4 4.5 6.0
Averages 7.1 7.1 8.0 9.3 8.6 6.0
* Starting Public Safety (Police & Fire Only)
The actual investment retum rates shown above are based on the actuarial value of assets. The actual salary
increase rates shown above aze the increases received by those active members who were included in the
actuarial valuation both at the beginning and the end of each period.
GRS
18
Actual (A) Compared to Ezpected (� Decrements
Police Officers
Number
Added Service & Active
During DROP Disability Terminations Members
Year Year Retirement Retirement Death Vested Other Totals 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 0 0 0 0 0 0 0 0 12
9/30/2011 1 0 0 0 0 0 0 0 0 0 0 0 13
9/30/2012 0 3 0 0 0 0 0 0 2 1 3 0 10
9/30/2013 0 0 0 0
7 Yr Totals * 10 12 0 0 0 0 0 0 3 9 12 0
Actual (A) Compared to Ezpected (� Decrements
Firefighters
Number
Added Service & Active
During DROP Disability Terminations Members
Year Yesr Retirement Retirement Death Vested Other Totals End of
Ended A E A E A E A E A A A E Year
9/30/2006 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 1 19
9/30/2010 0 1 1 0 0 0 0 0 0 0 0 1 18
9/30/2011 0 1 1 0 0 0 0 0 0 0 0 1 17
9/30/2012 0 0 0 0 0 0 0 0 0 0 0 1 17
9/30/2013 0 0 0 0
7 Yr Totals * 4 3 2 0 0 0 0 0 0 1 1 7
* T otals aze through current P lan Year only
GRS
19
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuallon Methods
Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered
before and after the valuation date were determined using an Individual Entry-Age Actuarial Cost
Method having the following characteristics:
(i) the annual normal cost for each individual active member, payable from the date of
employment to the date of retirement, is sufficient to accumulate the value of the member's
benefit at the time of retirement;
(ii) each annual normal cost 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.
Financing of Unfunded Actuarial Accrued Liabilities - Unfunded Actuarial Accrued Liabilities (full
funding credit if assets exceed liabilities) were amortized by level (principal & interest combined) dollar
contriburions over 20 years.
Actuarial Value of Assets - The Actuarial Value of Assets phase in the difference between the expected
actuarial value and actual market value of assets at the rate of 20% per year. The Actuarial Va1ue of
Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80%
of the Market Value of plan assets and whose upper limit is 120% of the Market Va1ue of plan assets.
During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will
tend to be less than Market Value. During periods when investment performance is less than assumed
rate, Actuarial Value of Assets will tend to be greater than Market Value.
Valuation Assumptions
The actuarial assumptions used in the valuation are shown in this Section.
Economic Assumptions
The investment return rate assumed in the valuations is 7.5% per year, compounded annually (net after
investxnent expenses).
The Wage Inflation Rate assumed in this valuation was 3.0% per year. The Wage Inflation Rate is
defined to be the portion of total pay increases for an individual that are due to macroeconomic forces
including productivity, price inflation, and labor market conditions. The wage inflation rate does not
include pay changes related to individual merit and seniority effects.
The Pay increase assumption is 6% per year up to the assumed retirexnent age.
Demographic Assumptions
The mortality table was the RP-2000 Combined Healthy Participant Mortaliry Tables for males and
females. The provision for future mortality improvements is being made by using Scale AA after 2000 as
shown on the next page.
GRS
20
Sample Probability of Future Life
Attained Dying Nezt Year Ezpectancy (years)
Ages (in 2012) Men Women Men Women
50 0.17 % 0.14 % 34.08 35.52
55 0.29 0.25 28.96 30.57
60 0.56 0.48 24.04 25.79
65 1.08 0.91 19.45 21.31
70 1.85 1.58 15.28 17.20
75 3.19 2.55 11.53 13.48
80 5.71 4.22 8.35 10.19
This assumption is used to measure the probabilities of each benefit payment being made after retirement
(50% of deaths are assumed to be service related). For disabled retirees, the regulaz 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 same mortality ta.ble 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 of separation from active membership are shown on the table below.
Rates of disabiliry among active members are shown on the table below (75% of disabilities were
assumed to be service related).
Employment
A e Terminallon Rates Disabili Rates
20 6.0% 0.14%
25 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 1.00
55 0.3 1.55
60 0.2 ---
GRS
21
Miscellaneous and Technical AssumpNons
Administrative & Investment The investment retum assumption is intended to be the return net of
Expenses investment expenses. Annual administrative expenses are assumed to
be equal to expenses for the previous year. Assumed administrative
expenses are added to the Normal Cost.
Benefit Service Exact fractional service is used to determine the amount of benefit
payable.
Decrement Operation Disability and mortality decrements operate during retirement
eligibility.
Decrement Timing Decrements of all types are assumed to occur at the beginning of the
year.
Eligibiliry Testing Eligibility for benefits is determined based upon the age nearest
birthday and service nearest whole year on the date the decrement is
assumed to occur.
Forfeitures For vested separations from service, it is assumed that 0% of inembers
separating will withdraw their contributions and forfeit an employer
financed benefit. It was further assumed that the liability at
termination is the greater of the vested deferred benefit (if any) or the
member's accumulated contributions.
Incidence of Contributions Employer contributions are assumed to be made at the end of each
month. Member contributions are assumed to be received
continuously throughout the year based upon the computed percent of
payroll shown in this report, and the actual payroll payable at the time
contributions are made.
Marriage Assumption 100% of males and 100% of females are assumed to be married for
purposes of death-in-service benefits. Male spouses are assumed to be
three years older than female spouses for active member valuation
purposes.
Normal Form of Benefat A ten-year certain and life benefit is the normal form of benefit.
Pay Increase Timing Beginning of fiscal year. This is equivalent to assuming that reported
pays represent amounts paid to members during the year ended on the
valuation date.
Service CreditAccruals It is assumed that members accrue one year of service credit per year.
GRS
22
GLOSSARY OF TERMS
Actuarial Accrued Liability The difference between the Actuaxial Present Value of Future Benefits,
(AAL) and the Actuarial Present Value of Future Normal Costs.
Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities,
such as: mortality, withdra.wal, disablement, and retirement; future
increases in salary; future rates of investment earnings; future investment
and administrative expenses; characteristics of inembers not specified in
the data, such as marital status; characteristics of future members; future
elections made by members; and other items.
Actuarial Cost Method A procedure for allocating the Actuarial Present Va1ue of Future Benefits
between the Actuarial Present Value of Future Nom�a1 Costs and the
Actuarial Accrued Liability.
Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and based
on a given set of Actuarial Assumptions.
Actuarial Present Value The amount of funds required to provide a payment or series of payrnents
(APi� in the future. It is determined by discounting the future payments with an
assumed interest rate and with the assumed probability each payxnent will
be made.
Actuarial Present Va[ue of The Actuarial Present Value of amounts which are expected to be paid at
Future Benefits (APVFB) various future times to active members, retired members, beneficiaries
receiving benefits, and inactive, nonretired members entitled to either a
refund or a future retirement benefit. Expressed 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 determination, as of a valua.tion date, of the Normal Cost, Actuarial
Accrued Liability, Actuarial Value of Assets, and related Actuarial
Present Values for a plan. An Actuarial Valuation for a governmental
retirement system typically also includes calculations of items needed for
compliance with GASB No. 25, such as the Funded Ratio and the Annual
Required Contribution (ARC).
Actuarial Value ofAssets 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 volarility of
calculated results, such as the funded ratio and the actuarially required
contribution (ARC).
GRS
23
Amortization Method A method for determining the Amortization Payment. The most common
methods 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 increasing payments, whose Actuarial Present Va1ue is
equal to the UAAL. Under the Level Percentage of Pay method, the
stream of payments increases at the rate at which total covered payroll of
all active members is assumed to increase.
Amortization Payment Tha.t portion of the plan contribution or ARC which is designed to pay
interest on and to amortize the Unfunded Actuarial Accrued Liability.
Amorlization 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
GASB No. 25. The ARC consists of the Employer Normal Cost and
Amortization Payment.
Closed Amortization Period A specific number of years that is reduced by one each year, and declines
to zero with the passage of time. For example if the amortization period is
initially set at 30 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
equa.l to the Normal Cost less expected member contriburions.
Equivalent Single For plans that do not establish separate amortization bases (separate
Amortization Period components of the UAAL), this is the same as the Amortization Period.
For plans that do establish separate amortization bases, this is the period
over which the UAAL would be axnortized if all amortization bases were
combined upon the current UAAL payment.
Experience GainlLoss A measure of the difference between actual experience and that expected
based upon a set of Actuarial Assumptions, during the period between two
actuarial valuations. To the extent that actual experience differs from that
assumed, Unfunded Actuarial Accrued Liabilities emerge which may be
larger or smaller than projected. Gains are due to favorable experience,
e.g., the assets earn more than projected, salaries do not increase as fast as
assumed, members retire later than assumed, etc. Favorable experience
means actual results produce actuarial liabilities not as large as projected
by the actuarial assumptions. On the other hand, losses are the result of
unfavorable experience, i.e., actual results tha.t produce Unfunded
Actuarial Accrued Liabilities which are lazger than projected.
GRS
24
Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued
Liability.
GASB Governmental Accounting Standards Board.
GASB No. 25 and These are the governmental accounting standards that set the accounting
GASB No. 27 rules for public retirement systems and the employers that sponsor or
contribute to them. Statement No. 27 sets the accounting rules for the
employers that sponsor or contribute to public retirement systems, while
Statement No. 25 sets the rules for the systems themselves.
Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current
plan year.
Open Amortization Period An open amortizarion period is one which is used to deternune the
Amortizarion Payment but which does not change over time. In other
words, if the initial period is set as 30 years, the same 30-year period is
used in determining the Amortizarion Period each year. In theory, if an
Open Amortization Period is used to amortize the Unfunded 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
Liability Value of Assets.
Valuation Date The date as of which the Actuarial Present Value of Future Benefits are
deternuned. The benefits expected to be paid in the future are discounted
to this date.
GRS
SECTION C
PENSION FUND INFORMATION
GRS
zs
STATEMENT OF PLAN AS5ETS AT MARKF.T VALUE
September 30
Item 2012 2011
A. Cash and Cash Equivalents (Operating Cash) $ - $ -
B. Receivables:
1. Member Contnbutions $ 1,931 $ 1,731
2. Employer Contnbutions - 7,298
3. State Conmbutions 31,597 31,018
4. Investment Income and Other Receivables 18,032 26,331
5. Total Receivables $ 51,560 $ 66,378
C. Investments
1. Short Term Investments $ 612,626 $ 383,550
2. Domestic Equities 3,455,564 2,683,479
3. International Equities 930,138 732,008
4. Domestic Fixed Income 3,091,512 2,861,504
5. Intemational Fixed Income - -
6. Real Estate - -
7. Other Investments - -
8. Totallnvestments $ 8,089,840 $ 6,660,541
D. Liabilities
1. Prepaid Contnbution $ (37,834) $ (103,585)
2. Accounts Payable (35,259) (21,541)
3. Other - Lump Sum Benefit Payable - (212,037)
4. Total Liabilities $ (73,093) $ (337,163)
E. Total Market Value of Assets Available for Benefrts $ 8,068,30'7 $ 6,389
F. Reserves
1. State Contnbution Reserve $ (639,152) $ (558,157)
2. DROP Accounts (115,630) (54,854)
3. Total Reserves $ (754,782) $ (613,011)
G. Total Market Value Net of Reserves $ 7,313,525 $ 5,776,745
F. Allocation of Investments
1. Short Term Investments 7.6% 5.7%
2. Domestic Equities 42.7% 40.3%
3. International Equities 11.5% 11.0%
4. Domestic Filced Income 38.2% 43.0%
5. International Fixed Income 0.0% 0.0%
6. Real Estate 0.0% 0.0%
7. Other Investrnents 0.0% 0.0%
8. TotalInvestments 100.0% 100.0%
GRS
26
RECONCILIATTON OF PLAN A5SETS
September 30
Item 2012 2011
A. Market Value of Assets at Beg�ning of Year $ 6,389,756 $ 6,100,278
B. Revenues and Expenditures
1. Contnbutions
a. Employee Contnbutions $ 107,432 $ 106,582
b. Employer Contnbutions 505,983 355,532
c. State Contrbutions 184,580 183,320
d. Other Income 5,322 -
e. Total $ 803,317 $ 645,434
2. Investment Income
a. Interest, Dividends, and Other Income $ 150,940 $ 268,845
b. Net Realized and Unrealized Gains/(Losses) 877,382 (296,463)
c. Investment Expenses (60,809) (55,899)
d. Net Investment Income $ 967,513 $ (83,517)
3. Benefrts and Refunds
a. Refunds $ - $ -
b. Regular Monthly Benefits (54,826) (16,690)
c. Lump Sum Distnbutions - (212,037)
d. Total $ (54,826) $ (228,727)
4. Administrative and Miscellaneous E�enses $ (37,453) $ (43,712)
5. Transfers $ - $ -
C. Market Value of Assets at End of Year $ 8,068,307 $ 6,389,756
D. Reserves
1. State Conmbution Reserve $ (639,152) $ (558,157)
2. DROP Accounts (115,630) (54,854)
3. Total Reserves $ (754,782) $ (613,011)
E. Final Market Value of Assets at End of Year $ 7,313,525 $ 5,776,745
GRS
27
ALLOCATION OF ASSETS BY GROUP - SEPTEMBER 30, 2012
POLICE FIRE TOTAL
Market Value on 9/30/2011 $ 1,816,967 $ 4,572,789 $ 6,389,756
Percent of Total 28.4 % 71.6 % 100.0 %
Inco me
Contnbutions
Members 42,698 64,734 107,432
Employer 170,534 335,449 505,983
State 56,466 128,114 184,580
Investment Earnings
Interest & Dividends 43,142 107,798 150,940
Realized Gain (Loss) 68,801 167,885 236,686
Unrealized Gain (Loss) 177,473 463,223 640,696
Total 289,416 738,906 1,028,322
Other Income 2,154 3,168 5,322
Total Income 561,268 1,270,371 1,831,639
F.gpenses
Monthly Benefrts - 54,826 54,826
Refunds and Lump Sums - - -
Administrative E�enses 18,726 18,727 37,453
Investment Expenses 28,996 31,813 60,809
Total Expenses 47,722 105,366 153,088
Market Value on 9/30/2012 2,330,513 5,737,794 8,068,307
Less State Contribution Reserve 290,268 348,884 639,152
Less DROP account balances - 115,630 115,630
�nal Market Value 2,040,245 5,273,280 7,313,525
Percent of Total 27.9 % 72.1 % 100.0 %
GRS
28
ALLOCATION OF ASSETS BY GROUP - SEPTEMBER 30, 2011
POLICE FIRE TOTAL
Market Value on 9/30/2010 $ 1,685,024 $ 4,415,254 $ 6,100,278
Percent of Total 27.6 % 72.4 % 100.0 %
Income
Contnbutions
Members 38,967 67,615 106,582
Employer * 102,971 252,561 355,532
State 54,983 128,337 183,320
Investment Eamings
Interest & Dividends 74,177 194,668 268,845
Net Realized and Unrealized Gain (Loss) ** (91,436) (205,027) (296,463)
Total (17,259) (10,359) (27,618)
Other Income - - -
TotalIncome 179,662 438,154 617,816
Egpenses
Monthly Benefrts - 16,690 16,690
Refunds and Lump Sums - 212,037 212,037
Admmistrative Eacpenses 21,088 22,624 43,712
Investment E�enses 26,631 29,268 55,899
Total E�enses 47,719 280,619 328,338
Market Value on 9/30/2011 1,816,967 4,572,789 6,389,756
Less State Contribution Reserve 266,932 291,225 558,157
Less DROP account balances - 54,854 54,854
Final Market Value 1,550,035 4,226,710 5,776,745
Percent of Total 26.8 % 73.2 % 100.0 %
* Includes interest on 2010 funding deficiency of $105 and $223 for Police and Fire, respectively.
** Breakdown of realized and unrealized gains and losses as of 2011 not provided
GRS
29
RECONCILIATION OF DROP ACCOUNTS
Year Balance at
Ended Beginning Balance at
9/30 of Year Credits Interest Distributions End of Year
2010 $ - $ 8,214 $ 495 $ - $ 8,709
2011 8,709 49,722 (3,577) - 54,854
2012 54,854 49,656 11,120 - 115,630
GRS
4 J DEVELOPMENT OF ACTUARIAL VALUE OF ASSETS -- POLICE
�
Valuation Date - September 30, 2012 2011 2012 2013 2014 2015 2016
A Actuarial Value of Assets Beginning of Year $ 1,813,345 $ 2,039,039
B. Market Value End of Year 1,816,967 2,330,513
C. Market Va1ue Beginning of Year 1,685,024 1,816,967
D. Non-Investment/Administrative Net Cash Flow 175,833 250,972
E. In�estment lncome
El. Actual Market Tota1: B-C-D (43,890) 262,574
E2. Assutned Rate of Return 8.00% 7.50% 7.50% 7.50% 7.50% 7.50%
E3. Assumed Amount of Return 152,101 162,339
E4. Amount Subject to Phase-In: El—E3 (195,991) 100,235
F. Phase-In Recognition of Investment Income
Fl . Current Year: 0.20 x E4 (39,198) 20,047
F2. First Prior Year 11,704 (39,198) 20,047
F3. Second Prior Year (25,642) 11,704 (39,198) 20,047
F4. ThirdPriorYear (49,104) (25,642) 11,704 (39,198) 20,047
F5. FourthPriorYear - (49,105) (25,642) 11,704 (39,198) 20,047
F6. Total Phase-Ins (102,240) (82,194) (33,089) (7,447) (19,151) 20,047
G. Actuarial Value of Assets End of Year
Gl. PreliminaryActuarial Va1ue ofAssets $ 2,039,039 $ 2,370,156
G2. Upper Corridor Limit: 120%*B 2,180,360 2,796,616
G3. L,flwer Corridor Limit: 80%*B 1,453,574 1,864,410
G4. Funding Value End of Year 2,039,039 2,370,156
G5. Less: State Contribution Reserve 266,932 290,268
G6. Less: DROP Account - -
G7. Funding Value End of Year 1,772,107 2,079,888
H. Difference between Market & Actuarial Value $ (222,072) $ (39,643)
I. Actuarial Rate ofReturn 2.6% 3.7%
J. Market Value Rate of Return -2.5% 13.5%
K Ratio ofActuarial Value ofAssets to Market Value 112.2% 101.7%
w
0
^ DEVELOPMENT OF ACTUARIAL VALUE OF AS5ETS -- FIREFIGHTERS
�� )
� Valuation Date - Se tember 30, 2012 2011 2012 2013 2014 2015 2016
A. Actuarial Value of Assets Beginning of Year $ 4,774,374 $ 5,100,342
B. Market Value End of Year 4,572,789 5,737,794
C. Market Value Beginning of Year 4,415,254 4,572,789
D. Non-Investment/Administrative Net Cash Flow 197,162 454,744
E. Investment Income
E1. Actual Market Total: B-C-D (39,627) 710,261
E2. Assumed Rate of Ret�un 8.00% 7.50% 7.50% 7.50% 7.50% 7.50%
E3. AssumedAmountofReturn 389,836 399,579
E4. Amount Subject to Phase-In: E1—E3 (429,463) 310,682
F. Phase-In Recognition of Investment Income
Fl. Current Year: 0.20 x E4 (85,893) 62,136
F2. First Prior Year 30,691 (85,893) 62,136
F3. SecondPriorYeaz (70,229) 30,691 (85,893) 62,136
F4. Third Prior Year (135,599) (70,229) 30,691 (85,893) 62,136
F5. FourthPriorYeaz - (135,597) (70,229) 30,691 (85,893) 62,136
F6. Total Phase-Ins (261,030) (198,892) (63,295) 6,934 (23,757) 62,136
G. Actuarial Value of Assets End of Year
G1. Preliminary Actuarial Va1ue of Assets $ 5,100,342 $ 5,755,773
G2. Upper Corridor Limit: 120%*B 5,487,347 6,885,353
G3. Lower Conidor Limit: 80%*B 3,658,231 4,590,235
G4. Funding Value End of Year 5,100,342 5,755,773
G5. Less: State Contribution Reserve 291,225 348,884
G6. Less: DROP Accounts 54,854 115,630
G7. Funding Value End of Year 4,754,263 5,291,259
H. Difference between Market & Actuarial Value $ (527,553) $ (17,979)
I. Actuarial Rate of Return 2.6% 3.8%
J. Market Value Rate ofReturn -0.9% 14.8%
K Ratio ofActuarial Value ofAssets to Market Value 111.5% 100.3%
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�
SECTION D
FINANCIAL ACCOUNTING INFORMATION
GRS
32
FASB NO. 35 INFORMATION
Police Fire Total Total
A Valuation Date 10/1/2012 10/1/2012 10/1/2012 10/1/2011
B. Actuarial Present Value of Accumulated
Plan Benefrts
1. Vested Benefits
a. Members Currently Receiving Payments $ - $ 1,285,051 $ 1,285,051 $ 1,294,751
b. Terminated Vested Members 389,009 115,846 504,855 139,228
c. Other Members 646,387 3,617,783 4,264,170 3,942,460
d. Total 1,035,396 5,018,680 6,054,076 5,376,439
2. Non-Vested Benefrts 275,915 58,108 334,023 325,168
3. Total Actuarial Present Value of Accumulated
P1anBenefits:ld+2 1,311,311 5,076,788 6,388,099 5,701,607
4. Accumulated Contn�butions of Active Members 208,143 627,760 835,903 790,184
C. Changes in the Actuarial Present Value of
Accumulated Plan Benefrts
1. Total Value at Begff►nmg of Period 1,175,244 4,526,363 5,701,607 3,837,864
2. Increase (Decrease) During the Period
Attnbutable to:
a. Plan Amendment - - - -
b. Change m Actuarial Assumprions - - - 395,935
c. Latest Member Data, Benefrts Accumulated
and Decrease m the Discount Period 136,067 654,907 790,974 1,696,535
d. Benefits Paid - (104,482) (104,482) (228,727)
e. Net Increase 136,067 550,425 686,492 1,863,743
3. Total Value at End of Period 1,311,311 5,076,788 6,388,099 5,701,607
D. Actuarial Present Value of Accumulated Plan
Benefrts Usmg FRS Interest Rate (7.75%)
a. Vested 996,088 4,848,748 5,844,836 5,190,899
b. Non-Vested 264,186 51,763 315,949 305,651
c. Total 1,260,274 4,900,511 6,160,785 5,496,550
E. Market Value of Assets 2,040,245 5,273,280 7,313,525 5,776,745
F. Funded Ratio Using FRS Interest Rate (7.75%) 161.9% 107.6% 118.7% 105.1%
G. Actuarial Assumptions - See page entitled
Actuarial Assumptions and Methods
GRS
SCHEDULE OF FUNDING PROGRESS
(GASB Statement No. 25)
4J
�
Actuarial Accrued
Actuarial Value Liability (AAL) Unfunded AAL UAAL As % of
Actuarial of Assets - Enhy Age (UAAI,) Funded Ratio Covered Payroll Covered Payroll
Valuation Date (a) (b) (b — a) (a/b) c b-a /c
10/1/98 $ 934,659 $ 532,439 $(402,220) 175.5% $ 967,853 (41.6)%
10/1/00 1,683,867 834,839 (849,028) 201.7 1,203,923 (70.5)
10/1/02 1,875,657 1,428,869 (446,788) 131.3 2,132,437 (21.0)
10/1/03* 1,966,148 1,610,963 (355,185) 122.0 1,339,667 (26.5)
10/1/OS 2,782,953 2,598,331 (184,622) 107.1 1,650,403 (11.2)
10/1/07 4,080,609 3,730,247 (350,362) 109.4 1,931,871 (18.1)
10/1/09 5,298,959 5,458,505 159,546 97.1 2,184,690 7.3
10/1/11 6,526,370 7,720,559 1,194,189 84.5 2,171,363 55.0
10/1/12 7,371,147 8,595,260 1,224,113 85.8 2,116,667 57.8
* Start Public Safety Plan only.
w
w
34
SCHEDULE OF EMPLOYER AND STATE OF FLORIDA CONTRIBUTIONS
(GASB Statement No. 2�
Fiscal Year Ended Annual Required Actual Percentage
Se tember 30 Contribution Contributions Contributed
1994 $ 55,503 $ 55,751 100.5%
1995 71,957 91,120 126.6
1996 92,343 100,118 108.4
1997 104,853 134,048 127.8
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* 100.0
2002 99,223 127,736* 128.7
2003 152,976 154,338* 100.9
2004 195,964 195,964* 100.0
2005 203,833 245,816* 120.6
2006 272,363 277,213* 101.8
2007 283,229 302,345* 106.7
2008 288,850 318,669* 110.3
2009 300,227 328,203* 109.3
2010 489,668** 489,668* 100.0
2011 458,789** 459,117* 100.1
2012 608,470** 609,568* 100.2
* Excludes State revenue in excess of baseline amount plus adjustments.
** This is the required contribution axnount deterniined as a percentage of actual payroll for the
fiscal year.
GRS
35
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT NO. 27)
POLICE OFFICERS
Employer FYE September 30 2013 2012 2011
A. Annual Required Contnbution (ARC)* $ 212,725 � $ 203,497 $ 135,996
B. Interest on Net Pension Obligation (NPO) (9,935) (10,312) (11,368)
C. Adjustment to ARC (14,931) (15,496) (16,090)
D. Annual Pension Cost (APC) (A+B-C) 217,721 208,681 140,718
E. Contributions made - 203,664 136,101
F. NPO at beg�niug of year (132,471) (137,488) (142,105)
G. Increase (decrease)in NPO (D-E) - 5,017 4,617
H. NPO at end of year (F+G) - (132,471) (137,488)
* Includes expected State contnbution
1 This amount is an estimate.
THREE YEAR TREND INFORMATION
Fiscal Annual Pension Actual Percentage of Net Pension
Year Endin Cost APC Contnbution APC Conmbuted Obli tion
9/30/2010 $ 141,183 $ 136,512 96.7 % $ (142,105)
9/30/2011 140, 718 136,101 96.7 (137,488)
9/30/2012 208,681 203,664 97.6 132,471
GRS
36
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMINT NO. 2'n
FIREFIGHTERS
Employer FYE September 30 2013 2012 2011
A Annual Required Contnbution (ARC)* $ 427,141 � $ 404,973 $ 322,793
B. Interest on Net Pension Obligation (NPO) (10,')00) (11,004) (12,105)
C. Adjustment to ARC (15,550) (15,992) (16,920)
D. Annual Pension Cost (APC) (A+B-C) 431,991 409,961 327,608
E. Contnbutions made - 405,904 323,016
F. NPO at beginning of year (142,665) (146,722) (151,314)
G. Increase (decrease) in NPO (D-E) - 4,057 4,592
H. NPO at end of year (F+G) - (142,665) (146,722)
* Includes e�ected State contnbution
1 This amount is an estimate.
THREE YEAR TREND INFORMATION
Fiscal Annual Pension Actual Percentage of Net Pension
Yeaz Endin Cost APC Contnbution APC Contributed Obli tion
9/30/2010 $ 358,129 $ 353,156 98.6 % $ (151,314)
9/30/2011 327,608 323,016 98.6 (146,722)
9/30/2012 409,961 405,904 99.0 142,665
GRS
37
REQUIRED SUPPLEMENTARY INFORMATION
GASB Statement No. 25 and No. 27
The information presented in the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated. Additional information as of the latest actuarial
valuation:
Valuation date October 1, 2012
Contribution Rates
Employer (and Sta.te) 21.47% Police, 31.66%
Fire
Plan members 5.00% Police
5.00% Fu'e
Actuarial Cost Method Entry Age Normal
Amortization Method Closed, level dollar
Remaining amortization period 20
Asset Valuation Method Five year smoothing
Actuarial Assumptions
Investment rate of returu 7.5%
Projected salary increases 6.0%
Includes inflarion and other general increa,ses at 3.0%
Cost of Living adjustments Not Applicable
GRS
SECTION E
MISCELLANEOUS INFORMATION
GRS
38
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� U
39
STATISTICAL DATA
POLICE OFFICERS
10/1/2007 10/1/2009 10/1/2011 10/1/2012
Active Members
Number 10 12 13 10
Tota1 Annual Payroll $ 649,084 $ 749,835 $ 858,342 $ 744,314
Average Annual Sa1ary 64,908 62,486 66,026 74,431
Other Averages
Current Age 39.6 39.0 39.9 40.1
Age at Employxnent 35.5 34.4 33.6 33.0
Past Service 4.1 4.6 6.2 7.1
Service Retirees and Beneficiaries
Number 0 0 0 0
Total Annual Benefit $ --- $ --- $ --- $ ---
Average Monthly Benefit --- --- --- ---
Disability Retirees
Number 0 0 0 0
Total Annual Benefit $ --- $ --- $ --- $ ---
Average Monthly Benefit --- --- --- ---
Terminated Members With Vested Benefits
Number 0 1 1 3
Total Annual Benefit $ --- $ 9,360 $ 9,360 $ 46,632
Average Monthly Benefit --- 780 780 1,295
GRS
40
STATISTICAL DATA
FIREFIGHTERS
10/1/2007 10/1/2009 10/1/2011 10/1/2012
Active Members
Number 19 19 17 17
Total Annual Payroll $ 1,282,787 $ 1,434,855 $ 1,313,021 $ 1,372,353
Average Annual Salary 67,515 75,518 77,237 80,727
Other Averages
Current Age 36.7 36.7 38.9 39.9
Age at Employment 29.2 29.3 28.3 28.3
Past Service 7.5 9.4 10.6 11.6
Service Retirees and Beneficiaries
Number 0 0 2 2
Total Annual Benefit $ --- $ --- $ 103,293 $ 103,293
Average Monthly Benefit --- --- 4,304 4,304
Disability Retirees
Number 0 0 0 0
Total Annual Benefit $ --- $ --- $ --- $ ---
Average Monthly Benefit --- --- --- ---
Terminated Members With Vested Benefits
Nuxnber 1 1 1 1
Tota1 Annual Benefit $ 16,971 $ 16,971 $ 16,971 $ 17,524
Average Monthly Benefit 1,414 1,414 1,414 1,460
GRS
41
ACTIVE PARTICIPANT DISTRIBUTION
Years of S ervice to Valuation Date
e Grou 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25 + Totals
20-24 NO. 0 0 0 0 0 0 0 0 0 0 0
TOT PAY 0 0 0 0 0 0 0 0 0 0 0
AVG PAY 0 0 0 0 0 0 0 0 0 0 0
25-29 NO. 0 0 0 0 2 2 0 0 0 0 4
TOT PAY 0 0 0 0 140,963 123,676 0 0 0 0 264,639
AVG PAY 0 0 0 0 70,482 61,838 0 0 0 0 66,160
30-34 NO. 0 0 0 0 0 3 1 0 0 0 4
TOT PAY 0 0 0 0 0 181,245 78,299 0 0 0 259,544
AVG PAY 0 0 0 0 0 60,415 78,299 0 0 0 64,886
35-39 NO. 0 0 0 0 0 3 4 0 0 0 7
TOT PAY 0 0 0 0 0 202,008 278,754 0 0 0 480,762
AVG PAY 0 0 0 0 0 67,336 69,689 0 0 0 68,680
40-44 NO. 0 0 0 1 0 0 2 1 0 0 4
TOT PAY 0 0 0 49,970 0 0 151,405 95,824 0 0 297,199
AVG PAY 0 0 0 49,970 0 0 75,703 95,824 0 0 74,300
45-49 NO. 0 0 0 0 0 0 1 2 0 0 3
TOT PAY 0 0 0 0 0 0 84,443 208,421 0 0 292,864
AVG PAY 0 0 0 0 0 0 84,443 104,211 0 0 97,621
50-54 NO. 0 0 0 0 0 2 1 0 0 0 3
TOT PAY 0 0 0 0 0 137,021 91,470 0 0 0 228,491
AVG PAY 0 0 0 0 0 68,511 91,470 0 0 0 76,164
55-59 NO. 0 0 0 0 1 0 0 1 0 0 2
TOT PAY 0 0 0 0 93,271 0 0 80,086 0 0 173,357
AVG PAY 0 0 0 0 93,271 0 0 80,086 0 0 86,679
60-64 NO. 0 0 0 0 0 0 0 0 0 0 0
TOT PAY 0 0 0 0 0 0 0 0 0 0 0
AVG PAY 0 0 0 0 � 0 0 0 0 0 0
TOT NO. 0 0 0 1 3 10 9 4 0 0 27
TOT AMT 0 0 0 49,970 234,234 643,950 684,371 384,331 0 0 1,996,856
AVG AMT 0 0 0 49,970 78,078 64,395 76,041 96,083 0 0 73,958
GRS
42
INACTIVE PARTICIPANT DISTRIBUTION
Terminated Vested Disabled Retired Beneficiaries
Total Total Total Total
Age Number Benefits Number Benefits Ntunber Benefits Number Benefits
Under 20 0 0 0 0 0 0 0 0
20 - 24 0 0 0 0 0 0 0 0
25 - 29 0 0 0 0 0 0 0 0
30 - 34 0 0 0 0 0 0 0 0
35 - 39 1 9,360 0 0 0 0 0 0
40 - 44 0 0 0 0 0 0 0 0
45 - 49 1 17,524 0 0 0 0 0 0
50 - 54 2 37,272 0 0 0 0 0 0
55 - 59 0 0 0 0 2 103,293 0 0
60 - 64 0 0 0 0 0 0 0 0
65 - 69 0 0 0 0 0 0 0 0
70 - 74 0 0 0 0 0 0 0 0
75 - 79 0 0 0 0 0 0 0 0
80 - 84 0 0 0 0 0 0 0 0
85 - 89 0 0 0 0 0 0 0 0
90 - 94 0 0 0 0 0 0 0 0
95 - 99 0 0 0 0 0 0 0 0
100 & Ove� 0 0 0 0 0 0 0 0
Tota1 4 64,156 0 0 2 103,293 0 0
Ave. Age 47 - 57 -
GRS
SECTION F
SUMMARY OF PLAN PROVISION5
GRS
43
SUMMARY OF PLAN PROVISIONS
A. Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida, Cha.pter 2,
Article III, Division 1, Section 2-61 (b), and was most recently restated under Ordinance No. 18-12
passed and adopted on January 10, 2013. The Plan is also governed by certain provisions of Chapter
175, Florida Statutes, Part VII, Cha.pter 112, Florida Statutes and the Internal Revenue Code.
B. EffecNve Date
Not currently available
C. Plan Year
October 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time police officers hired before February 1, 2013 and all full-time 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 service is credited for any periods of employment for
which the member received a refund of their contributions.
G. Compensation
Tota1 cash remuneration for services rendered as a police officer or firefighter.
H. Average Final Compensation (AFC)
The average of Compensation over the highest 5 years during the last 10 years of Credited Service;
does not include 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 6 years of Credited Service, or
(2) age 52 and 25 years of Credited Service.
Benefit: 3.0% of AFC multiplied by the first 6 years of Credited Service, plus
3.5% of AFC multiplied by the next 4 years of Credited Service, plus
GRS
44
4.0% of AFC mulriplied by the next 5 years of Credited Service, plus
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
3.0% of AFC mulriplied by all years of Credited Service over 25
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 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.
J. Early Retirement
Eligibility: A member may elect to retire earlier tha.n the Normal Retirement Eligibility upon
attainment of age 50 and 6 years of Credited Service.
Benefit: The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early
Retirement date precedes the Normal Retirement date.
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 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 Retirement taldng into account compensation earned and service credited until the
date of actual retirement.
L. Service Connected Disability
Eligibility: Any member who becomes totally and permanently disabled and unable to render
useful and efficient service to the Village as a result from an act occurring in the
performance of service for the Village is immediately eligible for a disability benefit.
Benefit: The accrued Normal Retirement Benefit taldng into account 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
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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.
M. Non-Service Connected Disability
Eligibility: Any member who becomes totally and permanently disabled and unable to render
useful and efficient service to the Village is immediately eligible for a disability
benefit.
Benefit: The accrued Normal Retirement Benefit taking into account compensation eamed and
service credited as of the date af disability with a minimum benefit 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 ma�um
of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
N. Death in the Line of Duty
Eligibility: Members aze 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
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.
O. Other Pre-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 actuarial equivalent of the member's accrued Normal
Retirement Benefit taking into account compensation earned and service credited as of
the date of death.
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46
Normal Form
of Benefit: Payable for the life of the beneficiary.
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.
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 accumulated contributions.
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
Q. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are
the Life Annuity oprion or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options.
R Vested Termination
Eligibility: A member has earned a non-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
terniination. Benefit begins on the member's Normal Retirement date. Alternatively,
members can elect a reduced Early Retirement benefit any time after age 50.
Normal Form
of Benefit: 10 Years Certain and Life thereafter; other options are also available.
COLA: None
Supplemental
Benefit: Once in pay stalus, 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.
Members terniinating employment with less than 6 years of Credited Service will receive a refund of
their own accumulated contributions.
S. Refunds
Eligibility: All members ternvnating employment with less than 6 years of Credited Service are
eligible. Optionally, vested members (those with 6 or more years of Credited Service)
may elect a refund in lieu of the vested benefits otherwise due.
Benefit: Refund of the member's contributions.
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47
T. Member Contributions
5% 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 Increases
Not Applicable
W.13 Check
Not Applicable
X. Deferred Retirement OpHon Plan
Eligibility: Plan members who have met one of the following criteria are eligible for the DROP:
(1) age 55 and 6 years of Credited Service, or
(2) age 52 and 25 years of Credited Service.
Members must make a written election to participate in the DROP before the 27th year
of employrnent.
Benefit: The member's Credited Service and AFC are frozen upon entry into the DROP.
The monthly retirement benefit as described under Nomial Retirement is calculated
based upon the frozen Credited Service and AFC.
Maximum
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 ea.ch year with
investment earnings or losses at the same rate earned by the pension fund less any
administrative expenses.
Normal Form
of Benefit: Lump Sum; other options aze also available.
COLA: None
Y. Other Ancillary Benefits
There are no ancillary retirement type benefits not required by statutes but which might be deemed a
Village of Tequesta Public Safety Officers' Pension Trust Fund liability if continued beyond the
availability of funding by the current funding source.
Z. Changes from Previous Valuation
Under Ordinance No. 18-12, the Plan was closed to police officers hired on or after February 1, 2013
and future Chapter 185 revenue is forfeited beginning with the fiscal year ending September 30, 2014.
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