HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 02_05/05/08Gabriel Roeder Smith & Company Onet :,sr hr~,~~~ar~l 131~J. `>>-~. ~? %~ ~ ~~ 1 ~~ ~~~~~~~~~'
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May 1, 2008
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, 2007 Actuarial Valuation Report for the Plan. The
purpose of the Report is to set forth required contribution 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 employee, 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 outlined at the end of the Report. Actuarial assumptions and the actuarial
cost method are also described herein. Any changes in benefits, assumptions or methods are
described in the first section.
We will be pleased to answer any questions pertaining to the valuation and to meet with you to
review this Report.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
I `
Step en Palmquist, A A, MAAA, FCA
Enrolled Actuary No. 08-1560
~.C(~-~ ,
Duane Howison, FSA, EA
Enrolled Actuary No. 08-6169
Statement by Enrolled Actuary
This actuarial valuation and/or cost determination was prepared 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 and
assumptions used are reasonable, meet the requirements and intent of Part VII, Chapter 112,
Florida Statutes, and are based on generally 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 material increase in plan costs or
required contribution rates have been taken into account in the valuation.
Signature
Date
08-1560
Enrollment Number
GRS
TABLE OF CONTENTS
Section Title Page
A 1. Discussion of Valuation Results 1
2. Chapter Revenue 3
B Valuation Results
1. Summary of Valuation Results 4
2. Derivation of Employer Normal Cost 7
3. Actuarial Gains and Losses 10
4. Actual Compared to Expected Decrements 11
5. Actuarial Assumptions and Cost Method 12
6. Glossary of Terms 13
C Pension Fund Information
1. Summary of Assets 14
2. Summary of Fund's Income and Disbursements 15
3. Allocation of Assets by Group 16
p Financial Accounting Information
1. FASB No. 35 18
2. GASB No. 25 19
3. GASB No. 27 21
E Miscellaneous Information
1. Reconciliation of Membership Data 24
2. Statistical Data 25
3. Age and Service Distributions 27
F Summary of Plan Provisions 29
GRS
SECTION A
DISCUSSION OF VALUATION RESULTS
GRS
1
DISCUSSION OF VALUATION RESULTS
Comparison of Required Employer Contributions
The following is a schedule of required contributions developed in this year's and the
previous actuarial valuations:
For FYE
09/30/08 For FYE
09/30/07 Increase
(Decrease)
Police Officers $ 52,241 $ 78,113 (25,872)
of Payroll 8.05 % 11.70 % (3.65)
Firefighters 133,024 103,936 29,088
of Payroll 10.37 % 9.91 % 0.46
Total Required Contribution 185,265 182,049 3,216
of Payroll 9.59 % 10.61 % (1.02)
The required employer contribution has been computed 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 $101,180. 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 month.
Required Contribution for Next Fiscal Year
The required contribution for Police Officers is $55,639 (13.15% of next year's expected
payroll less allowable State Revenue). For Firefighters, the required contribution is $141,003
(15.67% of next year's expected payroll less allowable State Revenue). The total required
Village contribution for the fiscal year ending September 30, 2009 is $196,642.
Changes in Benefits
There have been no changes in benefits since the last valuation.
Change in Actuarial Assumptions and Methods
There have been no such changes since the last valuation.
GRS
Actuarial Experience
2
Overall experience since the last valuation has been favorable resulting in an actuarial
gain of $255,080. The gain is due to a greater than expected investment return and more
terminations than expected. The actuarial gain has caused the required contribution to be
reduced by 1.3% of covered payroll.
The remainder of this Report includes detailed actuarial valuation results, information
relating to the pension fund, 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 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.
Actuarial Confirmation of the Use of State Chapter Money
Police Fire Total
1. Base Amount Previous Plan Year $ 33,130 $ 68,050 $ 101,180
2. Amount Received for Previous Plan Year 73,932 136,052 209,984
3. Benefit Improvements Made in Previous Plan Year 0 0 0
4. Excess Funds for Previous Plan Year: (2) - (1) - (3) 40,802 68,002 108,804
5. Accumulated Excess at Beginning of Previous Year 107,956 48,938 156,894
6. Prior Excess Used in Previous Plan Year 0 0 0
7. Accumulated Excess as of Valuation Date
(Available for Benefit Improvements): (4) + (5) - (6) 148,758 116,940 265,698
8. Base Amount This Plan Year: (1) + (3) 33,130 68,050 101,180
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 than the
actual amount of Chapter revenue received.
GRS
SECTION B
VALUATION RESULTS
GRS
SUMMARY OF VALUATION RESULTS
As of October 1
2007 2005
COVERED GROUP
A. Number Included in the Valuation
1. Active Members 29 28
2. Inactive Members 1 1
B. Covered Annual Payroll $ 1,931,871 $ 1,650,403
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits 7,710,989 6,451,560
D. Actuarial Value of Assets 4,080,609 2,782,953
E. Actuarial Present Value of Future Contrib.
1. Total C - D 3,630,380 3,668,607
2. Portion Assigned to Unfunded Frozen
Actuarial Accrued Liability (UFAAL) 0 0
3. Portion Assigned to Future Normal Costs 3,630,380 3,668,607
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL 0 0
As % of B --- ---
G. Annual Employer Normal Cost 274,952 261,435
As % of B 14.23 % 15.84
H. Interest on F + G from Valuation Date to
Contribution Date(s) 11,493 10,928
As % of B 0.59 % 0.66
I. Required Employer Contribs: F + G + H 286,445 272,363
As % of B 14.83 % 16.50
J. Estimated State Premium Tax Refund 101,180 101,180
As % of B 5.24 % 6.13
K. Balance Required from Employer: I - J 185,265 171,183
As % of B 9.59 % 10.37
L. Year to which Contributions Apply
1. Plan Year Ending 9/30/08 9/30/06
2. Employer Fiscal Year Ending 9/30/08 9/30/06
3. Assumed Date(s) of Employer Contribs. Monthly Monthly
M. Required Employer Contribution for Fiscal
Year Ending 9/30/09 and 9/30107 196,642 182,049
As % of '08-'09 Payroll 9.79 % 10.61
GRS
POLICE OFFICERS
SUMMARY OF VALUATION RESULTS
As of October 1
2007 2005
COVERED GROUP
A. Number Included in the Valuation
1. Active Members 10 12
2. Inactive Members 0 0
B. Covered Annual Payroll $ 649,084 $ 642,045
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits 2,046,541 2,064,278
D. Actuarial Value of Assets 979,278 577,878
E. Actuarial Present Value of Future Contrib.
1. Total C - D 1,067,263 1,486,400
2. Portion Assigned to Unfunded Frozen
Actuarial Accrued Liability (UFAAL) 0 0
3. Portion Assigned to Future Normal Costs 1,067,263 1,486,400
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL 0 0
As % of B --- ---
G. Annual Employer Normal Cost 81,946 102,677
As % of B 12.62 % 15.99
H. Interest on F + G from Valuation Date to
Contribution Date(s) 3,425 4,292
As % of B 0.53 % 0.67
I. Required Employer Contribs: F + G + H 85,371 106,969
As % of B 13.15 % 16.66
J. Estimated State Premium Tax Refund 33,130 33,130
As % of B 5.10 % 5.16
K. Balance Required from Employer: I - J 52,241 73,839
As % of B 8.05 % 11.50
L. Year to which Contributions Apply
1. Plan Year Ending 9/30/08 9/30/06
2. Employer Fiscal Year Ending 9/30/08 9/30/06
3. Assumed Date(s) of Employer Contribs. Monthly Monthly
M. Required Employer Contribution for Fiscal
Year Ending 9/30/09 and 9/30/07 55,639 78,113
As % of '08-'09 Payroll 8.24 % 11.70
GRS
FIREFIGHTERS
SUMMARY OF VALUATION RESULTS
As of October 1
2007 2005
COVERED GROUP
A. Number Included in the Valuation
1. Active Members 19 16
2. Inactive Members 1 1
B. Covered Annual Payroll $ 1,282,787 $ 1,008,358
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits 5,664,448 4,387,282
D. Actuarial Value of Assets 3,101,331 2,205,075
E. Actuarial Present Value of Future Contrib.
1. Total C - D 2,563,117 2,182,207
2. Portion Assigned to Unfunded Frozen
Actuarial Accrued Liability (UFAAL) 0 0
3. Portion Assigned to Future Normal Costs 2,563,117 2,182,207
CURRENT ANNUAL COST
F. Annual Payment Needed to Amortize UFAAL 0 0
As % of B --- ---
G. Annual Employer Normal Cost 193,006 158,758
As % of B 15.05 % 15.74
H. Interest on F + G from Valuation Date to
Contribution Date(s) 8,068 6,636
As % of B 0.63 % 0.66
I. Required Employer Contribs: F + G + H 201,074 165,394
As % of B 15.67 % 16.40
J. Estimated State Premium Tax Refund 68,050 68,050
As % of B 5.30 % 6.75
K. Balance Required from Employer: I - J 133,024 97,344
As % of B 10.37 % 9.65
L. Year to which Contributions Apply
1. Plan Year Ending 9/30/08 9/30/06
2. Employer Fiscal Year Ending 9/30/08 9/30/06
3. Assumed Date(s) of Employer Contribs. Monthly Monthly
M. Required Employer Contribution for Fiscal
Year Ending 9/30/09 and 9/30/07 141,003 103,936
As % of 'O8-'09 Payroll 10.57 % 9.91
GRS
BOTH GROUPS COMBINED
DERIVATION OF EMPLOYER NORMAL COST
As of October 1
2007 2005
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 6,436,761 $ 5,298,731
b. Vesting Benefits 458,255 398,334
c. Disability Benefits 565,962 523,392
d. Preretirement Death Benefits 172,949 162,925
e. Return of Member Contributions 13,747 14,024
f. Other - -
g. Total 7,647,674 6,397,406
2. Inactive Members
a. Service Retirees & Benefits - -
b. Disability Retirees - -
c. Terminated Vested Members 63,315 54,154
d. Total 63,315 54,154
3. Total for All Members 7,710,989 6,451,560
B. Actuarial Value of Assets 4,080,609 2,782,953
C. Unfunded Frozen Actuarial Accrued
Liaiblity (UFAAL) - -
D. Actuarial Present Value of Projected
Member Contributions 1,090,166 1,014,764
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 2,540,214 2,653,843
F. Actuarial Present Value of Projected
Covered Payroll 19,005,438 17,947,819
G. Employer Normal Cost Rate: 100 x E/F N/A N/A
H. Annual Payroll of Active Members 1,931,871 1,650,403
I. Assumed Amount of Administrative
Expenses 17,025 17,733
J. Employer Normal Cost: (G x H) + I 274,952 261,435
GRS
POLICE OFFICERS
DERIVATION OF EMPLOYER NORMAL COST
As of October 1
2007 2005
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 1,690,493 $ 1,667,077
b. Vesting Benefits 117,419 133,716
c. Disability Benefits 180,269 196,749
d. Preretirement Death Benefits 54,053 59,467
e. Return of Member Contributions 4,307 7,269
f. Other _ _
g. Total 2,046,541 2,064,278
2. Inactive Members
a. Service Retirees & Benefits - _
b. Disability Retirees - _
c. Terminated Vested Members - -
d. Total _ _
3. Total for All Members 2,046,541 2,064,278
B. Actuarial Value of Assets g7g,278 577,878
C. Unfunded Frozen Actuarial Accrued
Liaiblity (UFAAL) _ _
D. Actuarial Present Value of Projected
Member Contributions 314,386 363,876
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 752,877 1,122,524
F. Actuarial Present Value of Projected
Covered Payroll 6,287,728 7,277,520
G. Employer Normal Cost Rate: 100 x E/F 11.97 % 15.42
H. Annual Payroll of Active Members 649,084 642,045
I. Assumed Amount of Administrative
Expenses 4,251 3,674
J. Employer Normal Cost: (G x H) + I 81,946 102,677
GRS
FIREFIGHTERS
DERIVATION OF EMPLOYER NORMAL COST
As of October 1
2007 2005
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 4,746,268 $ 3,631,654
b. Vesting Benefits 340,836 264,618
c. Disability Benefits 385,693 326,643
d. Preretirement Death Benefits 118,896 103,458
e. Return of Member Contributions 9,440 6,755
f. Other _ _
g. Total 5,601,133 4,333,128
2. Inactive Members
a. Service Retirees & Benefits - -
b. Disability Retirees -
c. Terminated Vested Members 63,315 54,154
d. Total 63,315 54,154
3. Total for All Members 5,664,448 4,387,282
B. Actuarial Value of Assets 3,101,331 2,205,075
C. Unfunded Frozen Actuarial Accrued
Liaiblity (UFAAL) _ _
D. Actuarial Present Value of Projected
Member Contributions 775,780 650,888
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D 1,787,337 1,531,319
F. Actuarial Present Value of Projected
Covered Payroll 12,717,710 10,670,299
G. Employer Normal Cost Rate: 100 x E/F 14.05 % 14.35
H. Annual Payroll of Active Members 1,282,787 1,008,358
I. Assumed Amount of Administrative
Expenses 12,774 14,059
J. Employer Normal Cost: (G x H) + I 193,006 158,758
GRS
ACTUARIAL GAINS AND LOSSES
10
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 Fire
1. Last Valuation 15.42 % 14.35
2. This Valuation 11.97 14.05
3. Change 3.45 0.30
B. Present Value of Projected Payroll $6,287,728 $12,717,710
C. Actuarial Gain (Loss): A3 x B 216,927 38,153
The fund earnings 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 shows
the actual fund earnings and salary increase rates compared to the assumed rates for the last few
years
Sala Increases
Investment Return Actual
Year Ending 9/30 Actual Assumed Police Fire Assumed
1994 (0.1) % 8.0 % NA % 13.3 % 6.0
1995 21.6 8.0 NA 14.1 6.0
1996 12.9 8.0 NA 8.1 6.0
1997 22.2 8.0 NA 4.8 6.0
1998 12.2 8.0 NA 15.8 6.0
1999 13.2 8.0 3.4 8.7 6.0
2000 18.7 8.0 15.4 10.3 6.0
2001 (10.7) 8.0 19.6 18.6 6.0
2002 (3.7) 8.0 13.9 7.9 6.0
2003* 6.0 8.0 11.6 7.2 6.0
2004 8.1 8.0 11.5 10.2 6.0
2005 5.6 8.0 5.9 9.6 6.0
2006 3.7 8.0 0.9 8.6 6.0
2007 13.5 8.0 7.6 4.4 6.0
Averages 8.4 8.0 9.8 10.0 6.0
* Starting Public Safety (Police & Fire Only)
The actual investment return rates shown above are based on the actuarial value of assets.
The actual salary increase rates shown above are 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
Actual (A) Compared to Expected (E) Decrements
Police Officers
Number
Added Service & Active
During DROP Disability Terminations Members
Year Year Retirement Retirement Death Vested Other Tot als 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 0 0 0 0
2 Yr Totals * 5 7 0 0 0 0 0 0 0 7 7 0
* Totals are through current Plan Year only
Actual (A) Compared to Expected (E) Decrements
Firefighters
Number
Added Service 8~ Active
During DROP Disability Terminations Members
Year Year Retirement Retirement Death Vested Other Tot als 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 1
2 Yr Totals * 4 1 0 0 0 0 0 0 0 1 1 2
* Totals are through current Plan Year only
GRS
12
ACTUARIAL ASSUMPTIONS AND COST METHOD
A. Cost Method
B. Investment Earnings*
C. Salary Increases*
D. Inflation
E. Retirement Age
F. Turnover Rates
G. Mortality Rates
H. Disability
1. Rates
2. Percent Service Connected
I. Asset Value
J. Administrative Expenses
K. Increase in Covered Payroll
L. Post Retirement Benefit Increase
Including inflation
Aggregate Actuarial Cost Method
8% per year, compounded annually; net rate after
investment related expenses.
6% each year up to the assumed retirement age.
4% per year.
Normal retirement date or, if later, one year after
valuation date. Probability of early retirement is 5% for
each year eligible.
See Table below.
1983 Group Annuity Mortality Tables for males and
females.
See Table below.
75%.
Market Value on the valuation date.
Actual expenses incurred in most recent year.
NA
NA
A e Employment
Termination Rates
Disabilit 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
13
GLOSSARY OF TERMS
Actuarial Present Value is the value of an amount or series of amounts payable at various times,
determined as of the valuation date by the application of the set of actuarial assumptions.
Actuarial Assumptions are assumptions as to the occurrence of future events affecting pension
costs. The previous page outlines the Actuarial Assumptions utilized in this valuation.
Actuarial Cost Method is a procedure for determining the Actuarial Present Value of pension plan
benefits and for developing an actuarially equivalent allocation of such value to time periods, usually
in the form of a Normal Cost and Actuarial Accrued Liability.
Aggreqate Actuarial Cost Method is a method under which the excess of the Actuarial Present
Value of Projected Benefits of the group included in the valuation, over the sum of the Actuarial
Value of Assets, and the Actuarial Present Value of Future Member Contribution (if any) is allocated
as a level percentage of earnings of the group between the valuation date and the assumed
retirement age. This allocation is performed for the group as a whole, not as a sum of individual
allocations. The portion of this Actuarial Present Value allocated to a specific year is called the
Employer Normal Cost. Under this method, actuarial gains (losses) reduce (increase) future
Normal Costs.
GRS
SECTION C
PENSION FUND INFORMATION
GRS
14
SUMMARY OF ASSETS
9/30/2007 9/30/2006
Cash and Securities -Market Value
Cash $ _ $ _
Money Market Funds 178,963 301,833
Treasury and Agency Bonds & Notes 1,329,612 1,145,078
Corporate Bonds 99,844 59,782
Common Stocks 2,552,616 1,829,494
Pooled Equity Funds _ _
Pooled Bond Funds 107,376 -
Other Securities _ _
Total 4,268,411 3,336,187
Receivables and Accruals
Accounts Receivable - 18,971
State Contribution _ _
Member Contribution 4,157 3,451
Employer Contribution 69,510 10,065
Interest and Dividends 16,097 13,363
Total 89,764 45,850
Payables and Reserves
Accounts Payable 11,868 7,257
State Contribution Reserve 265,698 156,894
Benefits - 804
Refunds _ _
Expenses _ _
Tota I 277, 566 164, 955
Net Assets -Market Value 4,080,609 3,217,082
GRS
15
PENSION FUND INCOME AND DISBURSEMENTS
Year Ending Year Ending
9/30/2007 9/30/2006
Market Value at Beginning of Period $ 3,373,976 $ 2,897,258
Income
Member Contributions 112,131 91,672
State Contributions 209,984 152,413
Employer Contributions 201,165 176,033
Investment Earnings
722
143
88,109
Interest & Dividends
Realized & Unrealized Gain (Loss) ,
379,301 57,684
Total 523,023 145,793
- 691
Other Income _
303
046
1 566,602
Total Income ,
,
Disbursements
Monthly Benefit Payments - _
Lump Sum Distributions
445
23
41,199
Refund of Contributions ,
502
33 33,031
Investment Related Expenses ,
025
17 15,654
Other Administrative Expenses ,
Insurance Premiums
Other
Total Disbursements
73°972
89'884
Net Increase During Period 972,331 476,718
Market Value at End of Period 4,346,307 3,373,976
Less: State Contribution Reserve 265,698 156,894
Final Market Value 4,080,609 3,217,082
GRS
16
ALLOCATION OF ASSETS BY GROUP -SEPTEMBER 30, 2007
POLICE FIRE TOTAL
Market Value on 9130106 $ 825,416 $ 2,548,560 $ 3,373,976
5 %
24 75.5 % 100.0
Percent of Total .
Income
Contributions
226
38 73,905 112,131
Members ,
932
73 136,052 209,984
State ,
250
84 116,915 201,165
Employer , _ _
Other
Investment Earnings
252
36
107,470
143,722
Interest & Dividends
Realized & Unrealized Gain (Loss) ,
95,516 283,785 379,301
768
131 391,255 523,023
Total ,
Other Income
176
328
718,127
1,046,303
Totallncome ,
Expenses
Monthly Benefits
902
12
10,543
23,445
Refunds and Lump Sums ,
251
4 12,774 17,025
Administrative Expenses ,
403
8
25,099 33,502
Investment Expenses ,
Investment Adjustment
556
25
48,416
73,972
Total Expenses ,
Market Value on 9/30107 1,128,036 3,218,271 4,346,307
Less State Contribution Reserve 148,758 116,940 265,698
Final Market Value 979,278 3,101,331 4,080,609
Percent of Total 24.0 % 76.0 % 100.0
GRS
17
ALLOCATION OF ASSETS BY GROUP -SEPTEMBER 30, 2006
POLICE FIRE TOTAL
Market Value on 9/30/05 $ 656,511 $ 2,240,747 * $ 2,897,258
Percent of Total 22.7 % 77.3 % 100.0
Income
Contributions
Members 29,117 62,555 91,672
State 65,700 86,713 152,413
Employer 73,839 102,194 176,033
Other - - -
Investment Earnings
Interest & Dividends 20,589 67,520 88,109
Realized & Unrealized Gain (Loss) 14,048 43,636 57,684
Total 34,637 111,156 145,793
Other Income 160 531 691
Totallncome 203,453 363,149 566,602
Expenses
Monthly Benefits - - -
Refunds and Lump Sums 23,251 17,948 41,199
Administrative Expenses 3,663 11,991 15,654
Investment Expenses 7,634 25,397 33,031
Investment Adjustment - - -
Total Expenses 34,548 55,336 89,884
Market Value on 9/30/06 825,416 2,548,560 3,373,976
Less State Contribution Reserve 107,956 48,938 156,894
Final Market Value 717,460 2,499,622 3,217,082
Percent of Total 22.3 % 77.7 % 100.0
* Beginning Balance changed to match Comprehensive Annual Financial Report
GRS
SECTION D
FINANCIAL ACCOUNTING INFORMATION
GRS
18
FASB NO. 35 INFORMATION
Police Fire Total
A. Actuarial Present Value of Accumulated
Plan Benefits
1. Vested Benefits
a. Members Currently Receiving Payments $ - $ - $
63,315
63,315
b. Terminated Vested Members
416
222
1,868,576
2,090,991
c. Other Members ,
222,416 1,931,891 2,154,306
d. Total
2. Non-Vested Benefits 196,993 133,348 330,342
3. Total Actuarial Present Value of Accumulated
409
419
2,065,239
2,484,648
Plan Benefits: 1 d + 2 ,
4. Accumulated Contributions of Active Members 103,645
407,679
511,324
B. Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1. Total Value at Beginning of Period 294,175 1,299,552 1,593,727
2. Increase (Decrease) During the Period
Attributable to:
a. Plan Amendment 0 _
_ 0
_
b. Change in Actuarial Assumptions
c. Latest Member Data, Benefits Accumulated
387
161
794,178
955,565
and Decrease in the Discount Period ,
(36,153) 28,491 (64,644)
d. Benefits Paid 125,234 765,687 890,921
e. Net Increase
3. Total Value at End of Period 419,409 2,065,239 2,484,648
C. Market Value of Assets 979,278 3,101,331 4,080,609
GRS
Actuarial Value
Actuarial of Assets
Valuation Date (a)
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)
10/1/05 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)
* Start Public Safety Plan only.
Note: Because this Plan uses the Aggregate Actuarial Cost Method for Funding, the Schedule of funding Progress is not required per
GASB No. 25. The Schedule above is included in this Report in case the Plan and/or the Employer believe the information
would be useful to users of their financial statements.
20
SCHEDULE OF EMPLOYER AND STATE OF FLORIDA CONTRIBUTIONS
(GASB Statement No. 25)
Fiscal Year Ended
September 30 Annual Required
Contribution Actual
Contributions Percentage
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
'` Excludes State revenue in excess of baseline amount plus adjustments.
GRS
21
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT NO. 27)
POLICE OFFICERS
Employer FYE September 30 2008 2007 2006
A. Annual Required Contribution (ARC)* $ 85,371 $ 111,243 $ 106,969
B. Interest on Net Pension Obligation (NPO) (7,486) (7,137) (7,281)
C. Adjustment to ARC (10,778) (8,906) (9,086)
D. Annual Pension Cost (APC) (A+B-C) 88,663 113,012 108,774
E. Contributions made - 117,380 106,969
F. NPO at beginning of year (93,577) (89,209) (91,014)
G. Increase (decrease) in NPO (D-E) - (4,368) 1,805
H. NPO at end of year (F+G) - (93,577) (89,209)
Includes expected State contribution
THREE YEAR TREND INFORMATION
Fiscal Annual Pension Actual Percentage of Net Pension
Year Endin Cost APC Contribution APC Contributed Obli ation
9/30/2005 $ 59,912 $ 77,100 128.7 % $ (91,014)
9/30/2006 108,774 106,969 98.3 (89,209)
9/30/2007 113,012 117,380 103.9 93,577
GRS
22
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT NO. 27)
FIREFIGHTERS
Employer FYE September 30 2008 2007 2006
A. Annual Required Contribution (ARC)* $ 201,074 $ 171,986 $ 165,394
B. Interest on Net Pension Obligation (NPO) (13,425) (12,712) (12,649)
C. Adjustment to ARC (17,757) (16,786) (16,701)
D. Annual Pension Cost (APC) (A+B-C) 205,406 176,060 169,446
E. Contributions made - 184,965 170,244
F. NPO at beginning of year (167,810) (158,905) (158,107)
G. Increase (decrease) in NPO (D-E) - (8,905) (798)
H. NPO at end of year (F+G) - (167,810) (158,905)
Includes expected State contribution
THREE YEAR TREND INFORMATION
Fiscal Annual Pension Actual Percentage of Net Pension
Year Endin Cost APC Contribution APC Contributed Obligation
9/30/2005 $ 148,675 $ 168,716 113.5 % $ (158,107)
9/30/2006 169,446 170, 244 100.5 (158, 905)
9/30/2007 176,060 184,965 105.1 167,810
GRS
23
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, 2007
Contribution Rates
Employer (and State) 13.15% Police,
15.67% Fire
Plan members 5.00% Police
6.10% Fire
Actuarial Cost Method Aggregate
Amortization Method NA
Remaining amortization period NA
Asset Valuation Method Market Value
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
GRS
SECTION E
MISCELLANEOUS INFORMATION
GRS
~n
RECONCILIATION OF MEMBERSHIP DATA
A. Active Members 10/1/06 to 1011/05 to
10/1 /07 10/1 /06
1. Number Included in Last Valuation 30 28
2. New Members Included in Current Valuation 4 5
3. Non-Vested Employment Terminations (5) (3)
4. Vested Employment Terminations 0 0
5. Service Retirements 0 0
6. Disability Retirements 0 0
7. Deaths 0 0
8. Other 0 0
9. Number Included in This Valuation 29 30
B. Terminated Vested Members
1. Number Included in Last Valuation 1 1
2. Additions from Active Members 0 0
3. Lump Sum Payments 0 0
4. Payments Commenced 0 0
5. Deaths 0 0
6. Other 0 0
7. Number Included in This Valuation 1 1
C. Service Retirees, Disability Retirees and Beneficiaries
1. Number Included in Last Valuation 0 0
2. Additions from Active Members 0 0
3. Additions from Terminated Vested Members 0 0
4. Deaths Resulting in No Further Payments 0 0
5. Deaths Resulting in New Survivor Benefits 0 0
6. End of Certain Period - No Further Payments 0 0
7. Other 0 0
8. Number Included in This Valuation 0 0
N
~A
25
STATISTICAL DATA
POLICE OFFICERS
10/1 /02 10/1 /03 10/1 /05 10/1 /07
Active Members
Number 8 9 12 10
Total Annual Payroll $ 344,328 $ 424,795 $ 642,045 $ 649,084
Average Annual Salary 43,041 47,199 53,504 64,908
Other Averages
Current Age 31.6 33.7 36.9 39.6
Age at Employment 30.2 31.6 34.0 35.5
Past Service 1.4 2.1 2.9 4.1
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 0 0 0
Total Annual Benefit $ --- $ --- $ --- $ ---
Average Monthly Benefit --- --- --- ---
GRS
26
STATISTICAL DATA
FIREFIGHTERS
~~ ~ 10/1/02 ~ 10/1/03 ~ 10/1/05 ~ 10/1/07 ~~
Active Members
Number 18
Total Annual Payroll $ 921,642
Average Annual Salary 51,202
Other Averages
Current Age 36.0
Age at Employment 31.5
Past Service 4.5
Service Retirees and Beneficiaries
Number 0
Total Annual Benefit $ ---
Average Monthly Benefit ---
Disability Retirees
Number 0
Total Annual Benefit $ ---
Average Monthly Benefit ---
Terminated Members With Vested Benefits
Number p
Total Annual Benefit $ ---
Average Monthly Benefit ---
16 16 19
$ 914,872 $ 1,008,358 $ 1,282,787
57,180 63,022 67,515
35.4 36.6 36.7
29.4 29.8 29.2
6.0 6.8 7.5
0 0 0
0 0 0
0 1 1
$ --- $ 16,971 $ 16,971
--- 1,414 1,414
GRS
~i
Tequesta P&F 2007 Active Participant Distribution
Age --------------------------------------------- -Years of Service to Valuation Date-------------------------- Total
Group 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25-29 30-34 35 & Up
20-24 NO. 0. 1. 1. 0. 0. 0. 0. 0. 0. 0. 0. 0. 2.
TOT PAY 0. 41009. 46280. 0. 0. 0. 0. 0. 0. 0. 0. 0. 87289.
AVG PAY 0. 41009. 46280. 0. 0. 0. 0. 0. 0. 0. 0. 0. 43645.
25-29 NO. 1. 1. 1. 0. 0. 1. 0. 0. 0. 0. 0. 0. 4.
TOT PAY 47160. 41009. 52066. 0. 0. 61569. 0. 0. 0. 0. 0. 0. 201804.
AVG PAY 47160. 41009. 52066. 0. 0. 61569. 0. 0. 0. 0. 0. 0. 50451.
30-34 NO. 0. 2. 1. 0. 0. 5. 0. 0. 0. 0. 0. 0. 8.
TOT PAY 0. 101816. 45112. 0. 0. 292502. 0. 0. 0. 0. 0. 0. 439430.
AVG PAY 0. 50908. 45112. 0. 0. 58500. 0. 0. 0. 0. 0. 0. 54929.
35-39 NO. 0. 0. 0. 0. 0. 2. 1. 0. 0. 0. 0. 0. 3.
TOT PAY 0. 0. 0. 0. 0. 121391. 83784. 0. 0. 0. 0. 0. 205175.
AVG PAY 0. 0. 0. 0. 0. 60696. 83784. 0. 0. 0. 0. 0. 68392.
40-44 NO. 0. 0. 0. 0. 0. 1. 2. 0. 0. 0. 0. 0. 3.
TOT PAY 0. 0. 0. 0. 0. 68985. 169352. 0. 0. 0. 0. 0. 238337.
AVG PAY 0. 0. 0. 0. 0. 68985. 84676. 0. 0. 0. 0. 0. 79446.
45-49 NO. 1. 0. 1. 0. 1. 2. 0. 0. 0. 0. 0. 0. 5.
TOT PAY 58460. 0. 53317. 0. 56864. 129953. 0. 0. 0. 0. 0. 0. 298594.
AVG PAY 58460. 0. 53317. 0. 56864. 64977. 0. 0. 0. 0. 0. 0. 59719.
50-54 NO. 0. 1. 0. 0. 0. 0. 3. 0. 0. 0. 0. 0. 4.
TOT PAY 0. 99094. 0. 0. 0. 0. 252796. 0. 0. 0. 0. 0. 351890.
AVG PAY 0. 99094. 0. 0. 0. 0. 84265. 0. 0. 0. 0. 0. 87973.
TOT NO. 2. 5. 4. 0. 1. 11. 6. 0. 0. 0. 0. 0. 29.
TOT AMT 105621. 282928. 196775. 0. 56864. 674400. 505932. 0. 0. 0. 0. 0. 1822520.
AVG AMT 52810. 56586. 49194. 0. 56864. 61309. 84322. 0. 0. 0. 0. 0. 62846.
N
V
~n
Age
Under 20
20 - 24
25 - 29
30 - 34
35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 - 69
70 - 74
75 - 79
80 - 84
85 - 69
90 - 94
95 - 99
100 & Over
Total
Ave. Age
Liability
S C H E D U L E O F N O N- A C T I V E P A R T I C I P A N T S D A T A
Terminated
Vested
Total
Number Benefits
0 0.
0 0.
0 0.
0 0.
0 0.
1 16971.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
1 16971.
40
63315.
Disabled
Total
Number Benefits
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0
0.
Retired
Total
Number Benefits
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0
0.
Number
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Other
Total
Benefits
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0
0.
IV
SECTION F
SUMMARY OF PLAN PROVISIONS
GRS
SUMMARY OF PLAN PROVISIONS
Eligibility
29
All full-time firefighters and police officers hired after December 31, 1995 are eligible for
membership on date of employment.
Compensation
Total cash remuneration.
Average Final Compensation (AFC)
Average of Compensation over the five best years within the last ten years of service;
does not include lump sum payments of unused leave.
Credited Service
Number of years and fractional parts of years of service.
Normal Retirement
Eligibility - Earlier of age 55 with six years of service, or age 52 with 25 years of
service.
Benefit - 3.0% of AFC for each of the first six years
3.5% for each of the next four years
4.0% for each of the next five years
3.0% for each of the next six years
2.0% for each of the next four years of service
3.0% for all years aftertwenty-five years
Form of Benefit -Ten year certain and life annuity, with other options available.
Early Retirement
Eligibility - Age 50 with six years of Credited Service.
Benefit - Accrued pension benefit reduced by 3% for each year early.
Supplemental Benefit
Monthly amount of $20 per year of service, with a maximum of $600.
Deferred Retirement Option Plan (DROP)
Members who continue in employment past normal retirement date may either accrue
larger pensions or freeze their accrued benefit and enter the DROP. Each participant in
the DROP has an account credited with benefits not received and investment earnings.
GRS
30
Service Incurred Death
Eligibility - Death in the line of duty.
Benefit - 50% of AFC payable to spouse (or children) for life.
Non-Service Incurred Death
Eligibility - Six years of Credited Service
Benefit - Spouse receives actuarial equivalent of the accrued pension.
Service Incurred Disability
Eligibility - Continuous and permanent incapacity for rendering useful and efficient
service.
Benefit - Greater of the accrued pension benefit or 42% of AFC.
Non-Service Incurred Disability
Eligibility - Continuous and permanent incapacity for rendering useful and efficient
service.
Benefit - Greater of the accrued pension benefit or 25% of AFC.
Termination Benefits
For a member who is not vested when he terminates, a refund of his accumulated
contributions is payable. For a member who is vested when he terminates, his vested
accrued benefit is payable at his Normal Retirement Date. The vesting schedule is as
follows:
Years of Vested
Credited Service
Under 6 0%
6 or more 100
Contributions
From Members -
From the State
From the Employer -
5% of Compensation for Police Officers, 6.1% for Firefighters
Premium tax refunds received pursuant to Chapters 175 and 185,
Florida Statutes.
The remaining amount necessary to fund the Plan properly
according to the Plan's actuary.
GRS
31
Changes Since Last Valuation:
None.
GRS