HomeMy WebLinkAboutPension General_Documentation_Tab 02_05/07/2007Betty Laur
rom: Betty -Laur [blaur@tequesta.org]
nt: Wednesday, March 07, 2007 9:38 AM
Palmquist, Steve (Ftlaud)
Cc: Lori McWilliams; JoAnn Forsythe
Subject: RE: Tequesta General Employee Pension -Presentation
Steve, due to the estimated cost you stated, the pension board will need to approve the
amount. We will place this on the agenda for the next meeting, which is May 7, and if
approved will contact you to make the presentation after that. Thanks. Betty
-----Original Message-----
From: Palmquist, Steve (Ftlaud)
[mailto:steve.palmquist@gabrielroeder.com]
Sent: Monday, March 05, 2007 7:30 AM
To: Betty Laur
Subject: RE: Tequesta General Employee Pension - Presentation
I can attend the 4/12/07 Council meeting. I estimate time charges of
$1,000 to $1,200.
Circular 230 Notice: Pursuant to regulations issued by the IRS, to the
extent this communication (or any attachment) concerns tax matters, it
is not intended or written to be used, and cannot be used, for the
purpose of (i) avoiding tax-related penalties under the Internal Revenue
Code or (ii) marketing or recommending to another party any tax-related
matter addressed within. Each taxpayer should seek advice based on the
individual's circumstances from an independent tax advisor.
Stephen Palmquist, ASA, MAAA, FCA, EA
Gabriel, Roeder, Smith & Company
301 East Las Olas Blvd.
Suite 200
Fort Lauderdale, FL 33301
Telephone: 954-527-1616 Fax: 954-525-0083
steve.palmquist@gabrielroeder.com
The above communication shall not be construed to provide tax advice or
legal advice unless it contains one of the following phrases, or
substantially equivalent language: "This communication is intended to
provide tax advice" or "This communication is intended to provide legal
advice."
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-----Original Message-----
From: Betty Laur [mailto:blaur@tequesta.orgJ
ent: Wednesday, February 21, 2007 11:18 AM
Palmquist, Steve (Ftlaud)
c: JoAnn Forsythe; Lori McWilliams
Subject: Tequesta General Employee Pension - Presentation
Steve, a few minutes ago I sent you the following email:
Steve: At the February 5, 2007 quarterly meeting, the General
ployees
~nsion Board voted to recommend to the Village Council paying interest
n
employee contributions at 3~ when an employee is leaving the Village
before
they are vested. Will you be able to present this to the Village
Council on
behalf of the board on March 8 at the regular Village Council meeting?
The
meeting is at 7 p.m. here in the new Village Hall. Please let me know.
Thanks, Betty
I should have asked if you could make the presentation at the
Village
Council's April meeting, not March. The April meeting date is April 12
at 7
p.m. Please let me know. Betty
•
•
2
~~T.~
•
': 'G`i-- ~ 307. Easr Las Olas Slvd.
~~i ,~ ~ „~~., ~ Suire 200
Ft. Lauderdale, 1~L 33301-2254
January 19, 2007
Ms. JoAnne Forsythe
Finance Director
Village of Tequesta
345 Tequesta Drive
Tequesta, Florida 33469
Re: Proposed changes to General Employees Pension Plan
Dear JoAnne:
954.527.1676 phone
954.525.0083 fax
www.gabrielroeder.com
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Pursuant to the request of the General Employees Pension Board, we have prepared the
enclosed Supplemental Actuarial Valuation Report. This Report shows the actuarial impact of
• providing interest on employee contributions using rates that range from 1 % to 5%. Below is a
brief summary of the results:
10/1/05 Interest rate on Employee Contributions
Valuation 1.00% 2.00% 3.00% 4.00% 5.C0°~
ARC for Fiscal year
ending 9/30/2007 $ 92,042 92,042 92,156 92,156 92,270 92,270
ARC as % of Covered Payroll in
Contribution Year: 8.06 8.06 8.07 8.07 8.08 8.~8 °~o
ARC means the annual required contribution by the Village.
Please refer to the enclosed report for details regarding the above results.
We welcome your questions and ~~ornrnents.
Sincerely yours,
~ r:
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• ., Stepher~ Paimquist, AAA
Senor Consultant and Actuary
J ~F'/rb
Enclosures
• SUPPLEMENTAL ACTUARIAL VALUATION REPORT
Plan
Village of Tequesta General Employees Pension Trust Fund
Valuation Date
October 1, 2005
Date of Report
January 19, 2007
Report Requested by
Pension Board
Prepared by
J. Stephen Palmquist
Group Valued
All active employees
Plan Provisions Being Considered for Change
• Present Provision Before Change
1) No interest on employee contributions
Proposed Chances
1) Interest would be applied to employee contributions at a rate between 1 % and 5%.
Participants Affected
All active General Employees
Actuarial Assumptions and Methods
Same as October 1, 2005 Actuarial Valuation Report with no exceptions.
Some of the key assumptions/methods are:
Investment return - 8.0% per year
Salary increase - 6.0% per year
Cost Method -Aggregate
•
•
Amortization Period for Any Increase in Actuarial Accrued Liability
NA
Summary of Data Used in Report
NA
Actuarial Impact of Proposal(s)
See attached page(s).
Special Risks Involved With the Proposal That the Plan Has Not Been Exposed to Previously
None
Other Cost Considerations
None
Possible Conflicts With IRS Qualification Rules
None
J. S phen almquist, ASA, AAA, FCA
Enrolled Actuary 05-1560
•
• • •
ANNUAL REQUIRED CONTRIBUTION (ARC)
I A. Valuation Date
B. ARC to Be Paid During
Fiscal Year Ending
C. Assumed Date of Employer Contrib.
D. Annual Payment to Amortize
Unfunded Actuarial Liability
E. Employer Normal Cost
F. ARC if Paid on the Valuation Date
D+E
G. ARC Adjusted for Frequency of
Payments
H. ARC as % of Covered Payroll
I. Covered Payroll for Contribution Year
J. ARC for Contribution Year: H x I
K. ARC as % of Covered Payroll in
Contribution Year: J _ I
October 1, 2005 I October 1, 2005 I October 1, 2005 I October 1, 2005 I October 1, 2005 I October 1, 2005 I)
Valuation 1.00% EE Contr. 2.00% EE Contr. 3.00% EE Contr. 4.00% EE Contr. 5.00% EE Contr.
9/30/2007
Monthly
$ 0 $
84,961
84,961
88, 512
8.06
1,141,961
92,042
8.06
9/30/2007
Monthly
0 $
84,961
84,961
88,512
8.06
1,141,961
92,042
8.06
9/30/2007
Monthly
0 $
85,071
85,071
88,627
8.07
1,141,961
92,156
8.07
9/30/2007
Monthly
0 $
85,071
85,071
88,627
8.07
1,141,961
92,156
8.07
9/30/2007
Monthly
0 $
85,181
85,181
88, 741
8.08
1,141,961
92,270
8.08
9/30/2007
Monthly
0
85,181
85,181
88, 741
8.08
1,141,961
92,270
8.08
• •
•
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date October 1, 2005 October 1, 2005 October 1, 2005 October 1, 2005 October 1, 2005 October 1, 2005
Valuation 1.00% EE Contr. 2.00% EE Contr. 3.00% EE Contr. 4.00% EE Contr. 5.00% EE Contr.
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 1,535,255 $ 1,535,255 $ 1,535,255 $ 1,535,255 $ 1,535,255 $ 1,535,255
b. Vesting Benefits 42,024 42,326 42,678 43,072 43,534 44,071
c. Disability Benefits 248,383 248,383 248,383 248,383 248,383 248,383
d. Preretirement Death Benefits 40,636 40,636 40,636 40,636 40,637 40,644
e. Return of Member Contributions 19,270 19,444 19,620 19,798 19,979 20,167
f. Total 1,885,568 1,886,044 1,886,572 1,887,144 1,887,788 1,888,520
2. Inactive Members
a. Service Retirees & Beneficiaries - - - - - -
b. Disability Retirees - - - - - -
c. Terminated Vested Members - - - - - -
d. Total - - - - - -
3. Total for All Members 1,885,568 1,886,044 1,886,572 1,887,144 1,887,788 1,888,520
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25 429,242 429,264 429,257 429,305 429,300 429,352
D. Plan Assets
1. Market Value 602,280 602,280 602,280 602,280 602,280 602,280
2. Actuarial Value 602,280 602,280 602,280 602,280 602,280 602,280
E. Actuarial Present Value of Projected
Covered Payroll 11,340,206 11,340,206 11,340,206 11,340,206 11,340,206 11,340,206
F. Actuarial Present Value of Projected
Member Contributions 567,010 567,010 567,010 567,010 567,010 567,010
• • •
CALCULATION OF EMPLOYER NORMAL COST
A. Valuation Date October 1, 2005 October 1, 2005 October 1, 2005 October 1, 2005 October 1, 2005 October 1, 2005
Valuation 1.00% EE Contr. 2.00% EE Contr. 3.00% EE Contr. 4.00% EE Contr. 5.00% EE Contr.
B. Actuarial Present Value of Projected
Benefits $ 1,885,568 $ 1,886,044 $ 1,886,572 $ 1,887,144 $ 1,887,788 $ 1,888,520
C. Actuarial Value of Assets 602,280 602,280 602,280 602,280 602,280 602,280
D. Unfunded Actuarial Accrued Liability 0 0 0 0 0 0
E. Actuarial Present Value of Projected
Member Contributions 567,010 567,010 567,010 567,010 567,010 567,010
F. Actuarial Present Value of Projected
Employer Normal Costs: B-C-D-E 716,278 716,754 717,282 717,854 718,498 719,230
G. Actuarial Present Value of Projected
Covered Payroll 11,340,206 11,340,206 11,340,206 11,340,206 11,340,206 11,340,206
H. Employer Normal Cost Rate: FIG 6.32 % 6.32 % 6.33 % 6.33 % 6.34 % 6.34
I. Covered Annual Payroll 1,098,039 1,098,039 1,098,039 1,098,039 1,098,039 1,098,039
J. Employer Normal Cost: H x I 69,396 69,396 69,506 69,506 69,616 69,616
K. Assumed Amount of Administrative
Expenses 15,565 15,565 15,565 15,565 15,565 15,565
L. Total Employer Normal Cost: J+K 84,961 84,961 85,071 85,071 85,181 85,181
M. Employer Normal Cost as % of
Covered Payroll 7.74 % 7.74 % 7.75 % 7.75 % 7.76 % 7.76
• •
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