HomeMy WebLinkAboutPension General_Documentation_Tab 02_02/05/2007R Gabriel Roeder Smith & Company 301 Ea sr Lns Olas Blvd_ 954..527.1616 phone
Consultants ~ Actuanes Suite 200 954.525.0083 fax
Ft. Lauderdale, 1=I. 33301-2254 www.~;abriclroeder.a~m
January 19
2007 ~~
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Ms. JoAnne Forsythe w
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Finance Director
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Village of Tequesta .
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345 Tequesta Drive ~ v -
Tequesta, Florida 33469 t~
Re: Proposed changes to General Employees Pension Plan
Dear JoAnne:
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% 5.00%
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 8.08
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 comments.
Sincerely yours,
~~ ~~: ~.
~~~
• J. Stephen Palmquist, A
Senior Consultant and Actuary
JSP/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 Changes
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
I
phen almquist, ASA, AAA, FCA
Enrolled Actuary 05-1560
.7
• • •
ANNUAL REQUIRED CONTRIBUTION (ARC)
A. Valuation Date October 1, 2005
Valuation October 1, 2005
1.00% EE Contr. October 1, 2005
2.00% EE Contr. October 1, 2005
3.00% EE Contr. October 1, 2005
4.00% EE Contr. October 1, 2005
5.00 % EE Contr.
B. ARC to Be Paid During
Fiscal Year Ending 9/30/2007 9/30/2007 9/30/2007 9/30/2007 9/30/2007 9/30/2007
C. Assumed Date of Employer Contrib. Monthly Monthly Monthly Monthly Monthly Monthly
D. Annual Payment to Amortize
Unfunded Actuarial Liability $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
E. Employer Normal Cost 84,961 84,961 85,071 85,071 85,181 85,181
F. ARC if Paid on the Valuation Date
D+E 84,961 84,961 85,071 85,071 85,181 85,181
G. ARC Adjusted for Frequency of
Payments 88,512 88,512 88,627 88,627 88,741 88,741
H. ARC as % of Covered Payroll 8.06 % 8.06 % 8.07 % 8.07 % 8.08 % 8.08
I. Covered Payroll for Contribution Year 1,141,961 1,141,961 1,141,961 1,141,961 1,141,961 1,141,961
J. ARC for Contribution Year: H x I 92,042 92,042 92,156 92,156 92,270 92,270
K. ARC as % of Covered Payroll in
Contribution Year: J = I 8.06 % 8.06 % 8.07 % 8.07 % 8.08 % 8.08
• • •
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date October 1, 2005
Valuation October 1, 2005
1.00% EE Contr. October 1, 2005
2.00% EE Contr. October 1, 2005
3.00% EE Contr. October 1, 2005
4.00% EE Contr. October 1, 2005
5.00% EE Contr.
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits
b. Vesting Benefits
c. Disability Benefits
d. Preretirement Death Benefits
e. Return of Member Contributions $ 1,535,255
42,024
248,383
40,636
19,270 $ 1,535,255
42,326
248,383
40,636
19,444 $ 1,535,255
42,678
248,383
40,636
19,620 $ 1,535,255
43,072
248,383
40,636
19
798 $ 1,535,255
43,534
248,383
40,637
19
979 $ 1,535,255
44,071
248,383
40,644
f. Total
1,885,568
1,886,044
1,886,572 ,
1,887,144 ,
1,887,788 20,167
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
2. Actuarial Value
E. Actuarial Present Value of Projected 602,280
602,280 602,280
602,280 602,280
602,280 602,280
602,280 602,280
602,280 602,280
602,280
Covered Payroll
F. Actuarial Present Value of Projected 11,340,206 11,340,206 11,340,206 11,340,206 11,340,206 11,340,206
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: F/G 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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