HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 5.3a_02/08/2016
VILLAGE OF TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2015
ANNUAL EMPLOYER CONTRIBUTION FOR THEFISCALYEAR ENDING SEPTEMBER30, 2017
TABLE OF CONTENTS
SectionTitlePage
A
1.Discussion of Valuation Results1
2.Chapter Revenue4
B
Valuation Results
1.Summary of Valuation Results5
2.Actuarial Value of Benefits and Assets8
3.Derivation of Employer NormalCost11
4.Liquidation of Unfunded Actuarial
Accrued Liability14
5.Actuarial Gains and Losses16
6.Actual Compared to Expected Decrements 19
7.Recent History of UAAL and Funded Ratio20
8.Actuarial Assumptions and Cost Method21
9.Glossary of Terms24
C
Pension Fund Information
1.Statement of Plan Assets at Market Value–Combined27
2.Statement of Plan Assets at Market Valueby Group28
3.Reconciliation of Plan Assets-Combined30
4.ReconciliationofPlanAssets by Group31
5.Reconciliation of DROP Accounts33
6.Development of Actuarial Value of Assets34
D
Financial Accounting Information
1.FASB No. 3536
2.GASB No. 6737
E
Miscellaneous Information
1.Reconciliation of Membership Data43
2.Statistical Data44
3.Age and Service Distributions 46
F
Summary of Plan Provisions48
SECTION A
DISCUSSION OF VALUATION RESULTS
1
DISCUSSION OF VALUATION RESULTS
Comparison of Required Employer Contributions
A comparison of the required employer contribution developed in this and the last actuarial
valuation is shown below.
For FYEFor FYEIncrease
9/30/20179/30/2016 *(Decrease)
Police Officers $37,585$54,315(16,730)
% of Payroll8.75%10.95%(2.20)%
Firefighters165,74160,162105,579
% of Payroll11.23%4.14%7.09%
Total Required Contribution203,326114,47788,849
% of Payroll10.67%5.88%4.79%
*From Actuarial Impact Statements dated February 12, 2015 and June 28, 2015, combined.
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 hasalsobeen
computed under theassumption that theamount to be received from the State on behalf of police officers is
$0 in 2016 and 2017,and on behalf of firefighters is $155,040 in 2016 and 2017. If thepaymentsfrom the
State fall below the expected payments, then the employermust raise its contribution by the difference.If
the payments from the State for firefighters are above the expected payments, then the employer may reduce
its contribution by the difference. In addition, for the firefighters, estimated State Reserve balances of
$263,136 in2016 and $141,003in 2017 are assumed tobe used towardssatisfaction of the required
employer contribution.
The actual employer and State contributions forpolice officers forthe year ending September 30,
2015were $80,782and $0, respectively, for a total of $80,782, or 19.66% of payroll based on a payroll
amount of$410,897. The required contribution was 19.66% of payroll.
The actual employer and State contributions forfirefighters forthe year ending September 30, 2015
were $335,771and $70,455,respectively, for a total of $406,226, or 31.38% of payroll based on a payroll
amount of$1,294,416. The required contribution was 31.15% of payroll.
2
Changes in Benefit Provisions
The resultsasof October 1, 2014reflect Ordinance No. 1-15 (adopted March 12, 2015) and
Ordinance No. 15-15 (adopted August 13, 2015), as summarized on the next page.
Changes under Ordinance No. 1-15:
Payments for unused leave earned after October 1, 2013 for firefighters and October 1, 2014 for
police officers areexcluded from pensionable salary.
Effective October 1, 2013 for firefighters and October 1, 2014 for police officers, overtime hours
arelimited to 300 hours per year.
The Actuarial Impact Statement dated February 12, 2015measured the financial effect of this Ordinance.
Changes under Ordinance No. 15-15:
The benefit multiplier for current active members ischanged to a flat 3% prospectively.
The benefit multiplier for future new members ischanged to 2% for the first ten years of service
and 2.5% thereafter.
The vesting period ischanged to ten years for future new members.
The employee contribution rate isincreased from 5% to 5.5% for the fiscal year ending
September 30, 2017 and to 6% thereafter. The employee contribution rate would revert back to
5% if theVillage opts out of participation in Chapter 175.
The optional sell back of vacation and sick leave isallowed upon entering the DROP. For sick
leave, 25% of the available balance could be sold back for members with less than ten years of
service and 50%of the available balance could be sold back for members with at least ten years
of service. The maximum accrual of sick leave is 1,600 hours. For vacation leave, 100% of the
available balance could be sold back, with a maximum accrual of 320 hours.
The Village ispermitted to use all annual Chapter 175 revenue as a credit toward the Required
Employer Contribution.
The Village ispermitted to apply the Chapter 175 reserve of $545,142to reduce the Required
Employer Contributions for the fiscal years ending September 30, 2016through September 30,
2018, as determined by the Village.
The interest rate credited to DROP accounts continues to be the same as the net Pension Plan rate
of return; however, the rate credited cannot be less than 0% nor greater than 7.5%.
The Actuarial Impact Statement dated June 28, 2015 measured the financial effect of this Ordinance.
Change in Actuarial Assumptions and Methods
There have been no changes in actuarial assumptions and methods since the last valuation.
Actuarial Experience
Overall experience since the last valuation has been favorable resulting in an actuarial gainof
$436,175.The gainis primarilydue tosalary increases much less than expected and the forfeiture of
accrued benefits for one plan participant.Thenetactuarial gainhas caused the required contribution to
decrease by 2.24% of covered payroll.
3
Funded Ratio
The funded ratio is96.4% this year compared to 92.0%(after plan amendment)last valuation.The
funded ratio is equal to the actuarial value ofassets divided by the actuarial accrued liability.
Variability of Future Contribution Rates
The Actuarial Cost Method used to determine the contribution is intended to produce contribution
rates which are generally level. Even so, when experience differsfrom 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 rate would be
expected to return to the current level, but this does not always happen.
The MarketValue of Assets is less thanthe ActuarialValue of Assets by $360,861as of the
valuation date (see Section C). This difference will be gradually recognized over the next severalyears in
the absence of offsetting gains. If Market Value had been the basis for the valuation, the funded ratio
would have been93.1%and the Village contribution rate would have been approximately 12.5% instead
of 10.67%.
Conclusion
The remainder of this Report includes detailed actuarial valuation results, financial information,
miscellaneous information and statistics, and a summary of plan provisions.
4
CHAPTER REVENUE
Increments in Chapter revenue over that received in 1998 must first be used to fund the cost of
compliance with minimum benefits. As of the valuation date, all minimum requirements have been met.
Actuarial Confirmation of the Use of State Chapter Money
Police *FireTotal
1.Base Amount Previous Plan Year$0$70,455$70,455
2.Amount Received for Previous Plan Year0189,010189,010
3.Benefit Improvements Made in Previous Plan Year000
4.Excess Funds for Previous Plan Year: (2) - (1) - (3)0118,555118,555
5.Accumulated Excess at Beginning of Previous Year333,315426,587759,902
6.Prior Excess Used in Previous Plan Year000
7.Accumulated Excess as of Valuation Date
(Available for Benefit Improvements): (4) + (5) - (6)333,315545,142878,457
8.Base Amount This Plan Year070,45570,455
*Under Ordinance No. 18-12, the Plan was closed to police officers hired on or after February 1, 2013
and 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 andis 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 contributionfor the fiscal year ending September 30,
2015; however, in no event may the employer take credit for more than the actual amount of Chapter
revenue received.
SECTION B
VALUATION RESULTS
5
SUMMARY OF VALUATION RESULTS
As of October 1
20152014 *
COVERED GROUP
A. Number Included in the Valuation
1. Active Members2323
2. Inactive Members88
B. Covered Annual Payroll (Reported Payroll with Salary Scale)$1,848,765$1,891,179
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits14,773,86514,483,811
D. Actuarial Present Value of Projected Normal Costs3,825,7084,107,639
E. Actuarial Accrued Liability (AAL): C - D10,948,15710,376,172
F. Actuarial Value of Assets10,557,9669,550,823
G. Unfunded Actuarial Accrued Liability (UAAL): E - F390,191825,349
CURRENT ANNUAL COST
H. Annual Payment Needed to Amortize UAAL48,62185,281
As % of B2.63%4.51%
I. Annual Employer Normal Cost414,723409,592
As % of B22.43%21.66%
J. Adjustment for Frequency of Payment18,19519,433
As % of B0.99%1.02%
K. Required Employer Contrib: H + I + J481,539514,306
As % of B26.05%27.19%
L. Expected Covered Payroll for Contribution Year1,905,5271,946,980
M. Required Employer Contrib for Contribution Year499,369532,653
As % of L26.21%27.36%
N. Estimated State Premium Tax Refund155,040155,040**
As % of L8.14%7.96%
O. Use of Chapter 175 Reserve (Fire Only)141,003263,136***
As % of L7.40%13.52%
P. Balance Required from Employer: M - N - O203,326114,477
As % of L10.67%5.88%
Q. Year to which Contributions Apply
1. Plan Year Ending9/30/20179/30/2016
2. Employer Fiscal Year Ending9/30/20179/30/2016
3. Assumed Date(s) of Employer Contribs.MonthlyMonthly
* From Actuarial Impact Statements dated February 12, 2015 and June 28, 2015, combined.
** We have updated the amount shown in the June 28, 2015 Actuarial Impact Statement to reflect the State
contribution received for fiscal year ending September 30, 2015.
*** Current Village estimate of use of Chapter 175 Reserve (different from June 28, 2015 Actuarial Impact
Statement).
6
POLICE OFFICERS
SUMMARY OF VALUATION RESULTS
As of October 1
20152014 *
COVERED GROUP
A. Number Included in the Valuation
1. Active Members67
2. Inactive Members44
B. Covered Annual Payroll (Reported Payroll with Salary Scale)$429,707$496,153
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits3,062,9193,186,618
D. Actuarial Present Value of Projected Normal Costs991,4211,180,825
E. Actuarial Accrued Liability (AAL): C - D2,071,4982,005,793
F. Actuarial Value of Assets2,913,4272,688,884
G. Unfunded Actuarial Accrued Liability (UAAL): E - F(841,929)(683,091)
CURRENT ANNUAL COST
H. Annual Payment Needed to Amortize UAAL(80,812)(64,686)
As % of B(18.80)%(13.04)%
I. Annual Employer Normal Cost116,977116,949
As % of B27.22%23.57%
J. Adjustment for Frequency of Payment1,4202,052
As % of B0.33%0.42%
K. Required Employer Contrib: H + I + J37,58554,315
As % of B8.75%10.95%
L. Expected Covered Payroll for Contribution Year429,707496,153
M. Required Employer Contrib for Contribution
Year: % from K x L37,58554,315
As % of L8.75%10.95%
N. Estimated State Premium Tax Refund00
As % of L0.00%0.00%
O. Balance Required from Employer: M - N37,58554,315
As % of L8.75%10.95%
P. Year to which Contributions Apply
1. Plan Year Ending9/30/20179/30/2016
2. Employer Fiscal Year Ending9/30/20179/30/2016
3. Assumed Date(s) of Employer Contribs.MonthlyMonthly
* From Actuarial Impact Statement dated February 12, 2015.
7
FIREFIGHTERS
SUMMARY OF VALUATION RESULTS
As of October 1
20152014 *
COVERED GROUP
A. Number Included in the Valuation
1. Active Members1716
2. Inactive Members44
B. Covered Annual Payroll (Reported Payroll with Salary Scale)$1,419,058$1,395,026
LONG RANGE COST
C. Actuarial Present Value of Projected Benefits11,710,94611,297,193
D. Actuarial Present Value of Projected Normal Costs2,834,2872,926,814
E. Actuarial Accrued Liability (AAL): C - D8,876,6598,370,379
F. Actuarial Value of Assets7,644,5396,861,939
G. Unfunded Actuarial Accrued Liability (UAAL): E - F1,232,1201,508,440
CURRENT ANNUAL COST
H. Annual Payment Needed to Amortize UAAL129,433149,967
As % of B9.12%10.75%
I. Annual Employer Normal Cost297,746292,643
As % of B20.98%20.98%
J. Adjustment for Frequency of Payment16,77517,381
As % of B1.19%1.24%
K. Required Employer Contrib: H + I + J443,954459,991
As % of B31.29%32.97%
L. Expected Covered Payroll for Contribution Year1,475,8201,450,827
M. Required Employer Contrib for Contribution
Year: % from K x L461,784478,338
As % of L31.29%32.97%
N. Allowable Credit for State Revenue in Contribution Year155,040155,040**
As % of L10.51%10.69%
O. Use of Chapter 175 Reserve141,003263,136***
As % of L9.55%18.14%
P. Balance Required from Employer: M - N - O165,74160,162
As % of L11.23%4.14%
Q. Year to which Contributions Apply
1. Plan Year Ending9/30/20179/30/2016
2. Employer Fiscal Year Ending9/30/20179/30/2016
3. Assumed Date(s) of Employer Contribs.MonthlyMonthly
* From Actuarial Impact Statement dated June 28, 2015.
** We have updated the amount shown in the above-noted Actuarial Impact Statement to reflect the State
contribution received for fiscal year ending September 30, 2015.
*** Current Village estimate of use of Chapter 175 Reserve (different from above-noted Actuarial Impact
Statement).
8
ACTUARIAL VALUE OF BENEFITS AND ASSETS
POLICE AND FIRE COMBINED
A.Valuation DateOctober 1, 2015October 1, 2014*
B.Actuarial Present Value of All Projected
Benefits for
1.Active Members
a. Service Retirement Benefits$ 10,608,306$ 10,269,327
b. Vesting Benefits630,148692,451
c. Disability Benefits651,250670,420
d. Preretirement Death Benefits90,74494,655
e. Return of Member Contributions2,826-
f. Total11,983,27411,726,853
2.Inactive Members
a. Service Retirees & Beneficiaries2,209,1432,230,786
b. Disability Retirees--
c. Terminated Vested Members581,448526,172
d. Total2,790,5912,756,958
3. Total for All Members14,773,86514,483,811
C.Actuarial Accrued (Past Service)
Liability under Entry Age Normal10,948,15710,376,172
D.Actuarial Value of Accumulated Plan
Benefits per FASB No. 358,699,1307,843,270
E.Plan Assets
1.Market Value10,197,1059,785,039
2. Actuarial Value10,557,9669,550,823
F. Unfunded Actuarial Accrued Liability: C - E2390,191825,349
G. Actuarial Present Value of Projected
Covered Payroll16,228,13317,469,853
H.Actuarial Present Value of Projected
Member Contributions911,330964,264
*From Actuarial Impact Statements dated February 12, 2015 and June 28, 2015, combined.
9
ACTUARIAL VALUE OF BENEFITS AND ASSETS
POLICE
A.Valuation DateOctober 1, 2015October 1, 2014*
B.Actuarial Present Value of All Projected
Benefits for
1.Active Members
a. Service Retirement Benefits$ 1,937,203$ 2,037,177
b. Vesting Benefits157,853203,389
c. Disability Benefits150,292169,102
d. Preretirement Death Benefits21,49224,390
e. Return of Member Contributions--
f. Total2,266,8402,434,058
2.Inactive Members
a. Service Retirees & Beneficiaries359,163360,637
b. Disability Retirees--
c. Terminated Vested Members436,916391,923
d. Total796,079752,560
3. Total for All Members3,062,9193,186,618
C.Actuarial Accrued (Past Service)
Liability under Entry Age Normal2,071,4982,005,793
D.Actuarial Value of Accumulated Plan
Benefits per FASB No. 351,633,0001,519,010
E.Plan Assets
1.Market Value2,797,3952,733,629
2. Actuarial Value2,913,4272,688,884
F. Unfunded Actuarial Accrued Liability: C - E2(841,929)(683,091)
G. Actuarial Present Value of Projected
Covered Payroll4,142,5865,098,137
H.Actuarial Present Value of Projected
Member Contributions207,129254,907
* From Actuarial Impact Statement dated February 12, 2015.
10
ACTUARIAL VALUE OF BENEFITS AND ASSETS
FIRE
A.Valuation DateOctober 1, 2015October 1, 2014*
B.Actuarial Present Value of All Projected
Benefits for
1.Active Members
a. Service Retirement Benefits$ 8,671,103$ 8,232,150
b. Vesting Benefits472,295489,062
c. Disability Benefits500,958501,318
d. Preretirement Death Benefits69,25270,265
e. Return of Member Contributions2,826-
f. Total9,716,4349,292,795
2.Inactive Members
a. Service Retirees & Beneficiaries1,849,9801,870,149
b. Disability Retirees--
c. Terminated Vested Members144,532134,249
d. Total1,994,5122,004,398
3. Total for All Members11,710,94611,297,193
C.Actuarial Accrued (Past Service)
Liability under Entry Age Normal8,876,6598,370,379
D.Actuarial Value of Accumulated Plan
Benefits per FASB No. 357,066,1306,324,260
E.Plan Assets
1.Market Value7,399,7107,051,410
2. Actuarial Value7,644,5396,861,939
F. Unfunded Actuarial Accrued Liability: C- E21,232,1201,508,440
G. Actuarial Present Value of Projected
Covered Payroll12,085,54712,371,716
H.Actuarial Present Value of Projected
Member Contributions704,201709,357
* From Actuarial Impact Statement dated June 28, 2015.
11
ENTRY AGE CALCULATION OF EMPLOYER NORMAL COST TOTAL
A.Valuation DateOctober 1, 2015October 1, 2014*
B.Normal Cost for
1.Service Retirement Benefits$368,010$374,007
2.Vesting Benefits39,94541,288
3.Disability Benefits42,16642,295
4.Preretirement Death Benefits5,7325,825
5.Return of Member Contributions3,1463,138
6.Total for Future Benefits458,999466,553
7.Assumed Amount for Administrative
Expenses55,25737,598
8.Total Normal Cost514,256504,151
C.Expected Member Contribution99,53394,559
D.Employer Normal Cost: B8-C414,723409,592
E.Employer Normal Cost as % of
Covered Payroll22.43%21.66%
*From Actuarial Impact Statements dated February 12, 2015 and June 28, 2015, combined.
12
ENTRY AGE CALCULATION OF EMPLOYER NORMAL COST POLICE
A.Valuation DateOctober 1, 2015October 1, 2014*
B.Normal Cost for
1.Service Retirement Benefits$89,698$99,047
2.Vesting Benefits7,9129,770
3.Disability Benefits10,77811,866
4.Preretirement Death Benefits1,4921,654
5.Return of Member Contributions615743
6.Total for Future Benefits110,495123,080
7.Assumed Amount for Administrative
Expenses27,96718,677
8.Total Normal Cost138,462141,757
C.Expected Member Contribution21,48524,808
D.Employer Normal Cost: B8-C116,977116,949
E.Employer Normal Cost as % of
Covered Payroll27.22%23.57%
* From Actuarial Impact Statement dated February 12, 2015.
13
ENTRY AGE CALCULATION OF EMPLOYER NORMAL COST FIRE
A.Valuation DateOctober 1, 2015October 1, 2014*
B.Normal Cost for
1.Service Retirement Benefits$278,312$274,960
2.Vesting Benefits32,03331,518
3.Disability Benefits31,38830,429
4.Preretirement Death Benefits4,2404,171
5.Return of Member Contributions2,5312,395
6.Total for Future Benefits348,504343,473
7.Assumed Amount for Administrative
Expenses27,29018,921
8.Total Normal Cost375,794362,394
C.Expected Member Contribution78,04869,751
D.Employer Normal Cost: B8-C297,746292,643
E.Employer Normal Cost as % of
Covered Payroll20.98%20.98%
* From Actuarial Impact Statement dated June 28, 2015.
14
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY–POLICE
A. UAAL Amortization Period and Payments
Original UAALCurrent UAAL
Amortization
DatePeriodYears
EstablishedSource(Years)AmountRemainingAmountPayment
10/1/2009Initial Unfunded20$(346,507)14$(199,510)$(21,862)
10/1/2011Experience Loss20125,4251678,5407,992
10/1/2011Assumption Change20123,5351677,3587,872
10/1/2012Experience Gain20(111,036)17(73,121)(7,210)
10/1/2013Experience Gain20(131,632)18(107,315)(10,285)
10/1/2014Experience Gain20(415,852)19(402,789)(37,623)
10/1/2014Amendment20(33,090)19(32,051)(2,994)
(183,041)(183,041)(16,702)
10/1/2015Experience Gain2020
$(972,198)$(841,929)$(80,812)
B. Amortization Schedule
The UAAL is being amortized as a level dollar amountover thenumber of years remaining in the
amortization period. The expected amortization schedule is as follows:
Amortization Schedule
YearExpected UAAL
2015$(841,929)
2016(818,202)
2017(792,694)
2018(765,273)
2019(735,795)
2020(704,107)
2025(506,245)
2030(245,690)
20350
15
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY–FIREFIGHTERS
A. UAAL Amortization Period and Payments
Original UAALCurrent UAAL
Amortization
DatePeriodYears
EstablishedSource(Years)AmountRemainingAmountPayment
10/1/2009Initial Unfunded2014
$506,053$434,974$47,664
10/1/2011Experience Loss20415,04716388,43839,527
10/1/2011Assumption Change20390,12416365,11337,154
10/1/2012Experience Loss20163,33217156,96315,477
10/1/2013Experience Gain20(146,619)18(142,024)(13,612)
10/1/2014Experience Gain20(3,585)19(3,557)(332)
10/1/2014Amendment20287,63219285,34726,653
(253,134)(253,134)(23,098)
10/1/2015Experience Gain2020
$1,358,850$1,232,120$129,433
B. Amortization Schedule
The UAAL is being amortized as a level dollar amountover the number of years remaining in the
amortization period. The expected amortization schedule is as follows:
Amortization Schedule
YearExpected UAAL
2015$1,232,120
20161,185,389
20171,135,153
20181,081,149
20191,023,094
2020960,686
2025571,007
203062,811
20350
16
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment turnover, investment income, expenses,
salary increases, and other factors have been based on long range trends and expectations. Actual
experience can vary from these expectations. The variance is measured by the gain and loss for the period
involved. If significant long term experience reveals consistent deviation from what has been expected and
that deviation is expected to continue, the assumptions should be modified. The net actuarial gain (loss) for
the past year is computed as follows:
Derivation of the Current UAAL - Police
1.Last Year's UAAL *$(683,091)
2.Last Year's Employer Normal Cost148,322
#
3.Last Year's Contributions80,782
4. Interest at the Assumed Rate on:
a.1 and 2 for one year(40,108)
b.3 from dates paid3,229
c. a - b(43,337)
5.This Year's Expected UAAL:
1 + 2 - 3 + 4c(658,888)
6.This Year's Actual UAAL (Before any
changes in benefits and assumptions)(841,929)
7.Net Actuarial Gain (Loss): (5) - (6)183,041
8. Gain (Loss) due to investments(46,784)
9. Gain (Loss) due to other sources229,825
*From Actuarial Impact Statement dated February 12, 2015.
17
Derivation of the Current UAAL - Fire
1.Last Year's UAAL *$1,508,440
2.Last Year's Employer Normal Cost266,028
#
3.Last Year's Contributions406,226
4. Interest at the Assumed Rate on:
a.1 and 2 for one year133,085
b.3 from dates paid16,073
c. a - b117,012
5.This Year's Expected UAAL:
1 + 2 - 3 + 4c1,485,254
6.This Year's Actual UAAL (Before any
changes in benefits and assumptions)1,232,120
7.Net Actuarial Gain (Loss): (5) - (6)253,134
8. Gain (Loss) due to investments(79,853)
9. Gain (Loss) due to other sources332,987
*From Actuarial Impact Statement dated June 28, 2015.
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 tableon the next page
shows the actual fund earnings and salary increase rates compared to the assumed rates for the last few
years:
18
Salary Increases
Investment Return
Actual
Actual
Year Ending 9/30
PoliceFireAssumedPoliceFireAssumed
1994(0.1)%(0.1)8.0 % NA%13.3%6.0 %
%
199521.621.68.0 NA14.16.0
199612.912.98.0 NA8.16.0
199722.222.28.0 NA4.86.0
199812.212.28.0 NA15.86.0
199913.213.28.0 3.48.76.0
200018.718.78.0 15.410.36.0
2001(10.7)(10.7)8.0 19.618.66.0
2002(3.7)(3.7)8.0 13.97.96.0
2003*6.06.08.0 11.67.26.0
20048.18.18.0 11.510.26.0
20055.65.68.0 5.99.66.0
20063.73.78.0 8.78.66.0
200713.513.58.0 7.64.46.0
20084.04.08.0 10.58.26.0
20092.82.68.0 4.63.46.0
20104.24.08.0 11.810.76.0
20112.62.68.0 (2.8)(3.1)6.0
20123.73.87.5 10.44.56.0
20136.67.07.5 (4.2)1.06.0
20147.78.37.5 7.27.36.0
20156.06.57.5 (4.9)(2.1)6.0
Averages7.07.17.9 7.57.76.0
*Starting Public Safety (Police & FireOnly)
The actual investment return rates shown above are based on the actuarial value of assets. The
smoothing of assets began in the fiscal year ending September 30, 2008.
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.
19
Actual (A) Compared to Expected (E) Decrements
Police Officers
Number
AddedService & Active
DuringDROPDisabilityTerminationsMembers
YearYearRetirementRetirementDeathVestedOtherTotalsEnd of
EndedAEAEAEAEAAAEYear
13
9/30/2006430000000330
10
9/30/2007140000000440
12
9/30/2008310000001010
12
9/30/2009110000000110
12
9/30/2010000000000000
13
9/30/2011100000000000
10
9/30/2012030000002130
9
9/30/2013010000001010
7
9/30/2014001000001010
6
9/30/2015000000000110
9/30/20161000
10 Yr Totals *1013100000510150
Actual (A) Compared to Expected (E) Decrements
Firefighters
Number
AddedService & Active
DuringDROPDisabilityTerminationsMembers
YearYearRetirementRetirementDeathVestedOtherTotalsEnd of
EndedAEAEAEAEAAAEYear
17
9/30/2006100000000001
19
9/30/2007310000000111
19
9/30/2008000000000001
19
9/30/2009000000000001
18
9/30/2010011000000001
17
9/30/2011011000000001
17
9/30/2012000000000001
16
9/30/2013011000000000
16
9/30/2014000000000000
17
9/30/2015100000000000
9/30/20160000
10 Yr Totals *543000000117
* Totals are through current Plan Year only
RECENT HISTORY OF UAAL AND FUNDED RATIO
Actuarial
AccruedUAAL As %
ActuarialActuarial ValueLiability (AAL)UnfundedFundedCoveredof Covered
Valuationof Assets- Entry AgeAAL (UAAL)RatioPayrollPayroll
Date(a)(b)(b) - (a)(a) / (b)(c)(b-a)/(c)
10/1/1998$934,659$532,439$(402,220)175.5%$967,853(41.6)%
10/1/20001,683,867834,839(849,028)201.71,203,923(70.5)
10/1/20021,875,6571,428,869(446,788)131.32,132,437(21.0)
10/1/2003*1,966,1481,610,963(355,185)122.01,339,667(26.5)
10/1/20052,782,9532,598,331(184,622)107.11,650,403(11.2)
10/1/20074,080,6093,730,247(350,362)109.41,931,871(18.1)
10/1/20095,298,9595,458,505159,54697.12,184,6907.3
10/1/20116,526,3707,720,5591,194,18984.52,171,36355.0
10/1/20127,371,1478,595,2601,224,11385.82,116,66757.8
10/1/20138,412,5359,390,071977,53689.61,937,54650.5
10/1/2014**9,550,82310,376,172825,34992.01,891,17943.6
10/1/201510,557,96610,948,157390,19196.41,848,76521.1
* Start Public Safety Plan only
** From Actuarial Impact Statements dated February 12, 2015 and June 28, 2015, combined.
20
21
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuation Methods
Actuarial Cost Method -Normal cost and the allocation of benefit values between service rendered
Individual Entry-Age Actuarial Cost
before and after the valuation date were determined using an
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
contributions over 20years.
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 Value 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 Value 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 usedin the valuation are shown in this Section.
Economic Assumptions
The investment return rateassumed in the valuations is 7.5%per year, compounded annually (net after
investment expenses).
The Wage Inflation Rateassumed 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 assumptionis6% per yearup to the assumed retirement age. To allow for the
inclusion of the lump sum payment of unused leavepay in average final compensationfor firefightersat
DROP entry, projected normal retirement benefits for active firefightershired before October 1, 2010are
increased by the calculated percentage based on each member’s accrued unused leave hours as of
September 30, 2013 (up to the applicable maximum) divided by 10,400 hours (equal to 2,080 hours for
each year in 5-year averaging period).
22
Demographic Assumptions
The mortality tablewas the RP-2000 Combined Healthy Participant Mortality Tables for males and
females. The provision for future mortality improvements is being made by using Scale AA after 2000as
shown on the next page.
SampleProbability of Future Life
AttainedDying Next YearExpectancy (years)
Ages (in 2015)MenWomenMenWomen
500.16%0.13%34.3535.68
550.270.2429.2330.71
600.530.4724.2925.93
651.030.9019.6821.44
701.771.5515.4817.32
753.062.4911.6813.59
805.544.138.4510.28
This assumption is used to measure the probabilities of each benefit payment being made afterretirement
(50% of deaths are assumed to be service related).For disabled retirees, the regular mortality tables are set
forward 5 years in ages to reflect impaired longevity.For active members, the probabilities of dying before
retirement were based upon the same mortality table as members dying after retirement.
The rateof retirementisassumed to be 100% upon reaching normal retirement age. Probability of early
retirement is 5% for each year eligible.
Ratesof separation from active membershipare shown on the table below.
Rates of disability among active membersareshown on the table below(75% of disabilities were
assumed to be service related).
Employment
Termination Rates
AgeDisability Rates
206.0%0.14%
255.70.15
305.00.18
353.80.23
402.60.30
451.60.51
500.81.00
550.31.55
600.2---
23
Miscellaneous and Technical Assumptions
The investment return assumption is intended to be the return net of
Administrative & Investment
investment expenses. Annual administrative expenses are assumed to
Expenses
be equal to expenses for the previous year. Assumed administrative
expenses are added to the Normal Cost.
Exact fractional service is used to determine the amount of benefit
Benefit Service
payable.
Disability and mortality decrements operate during retirement
Decrement Operation
eligibility.
Decrements of all types are assumed to occur at the beginning of the
Decrement Timing
year.
Eligibility for benefits is determined based upon the age nearest
Eligibility Testing
birthday and service nearest whole year on the date the decrement is
assumed to occur.
ForfeituresFor vested separations from service, it is assumed that 0% of members
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.
Employer contributions are assumed to be made at the end of each
Incidence of Contributions
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.
100% of males and 100% of females are assumed to be married for
Marriage Assumption
purposes of death-in-service benefits. Male spouses are assumed to be
three years older than female spouses for active member valuation
purposes.
A ten-year certain and life benefit is the normal form of benefit.
Normal Form of Benefit
Beginning of fiscal year. This is equivalent to assuming that reported
Pay Increase Timing
pays represent amounts paid to members during the yearended on the
valuation date.
It is assumed that members accrue one year of service credit per year.
Service Credit Accruals
24
GLOSSARY OF TERMS
The difference between the Actuarial Present Value of Future Benefits,
Actuarial Accrued Liability
and the Actuarial Present Value of Future Normal Costs.
(AAL)
Actuarial AssumptionsAssumptions about future plan experience that affect costs or liabilities,
such as: mortality, withdrawal, disablement, and retirement; future
increases in salary; future rates of investment earnings; future investment
and administrative expenses; characteristics of members not specified in
the data, such as marital status; characteristics of future members; future
elections made by members; and other items.
A procedure for allocating the Actuarial Present Value of Future Benefits
Actuarial Cost Method
between the Actuarial Present Value of Future Normal Costs and the
Actuarial Accrued Liability.
Of equal Actuarial Present Value, determined as of a given date and based
Actuarial Equivalent
on a given set of Actuarial Assumptions.
The amount of funds required to provide a payment or series of payments
Actuarial Present Value
in the future. It is determined by discounting the future payments with an
(APV)
assumed interest rate and with the assumed probability each payment will
be made.
The Actuarial Present Value of amounts which are expected to be paid at
Actuarial Present Value of
various future times to active members, retired members, beneficiaries
Future Benefits (APVFB)
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.
The determination, as of a valuation date, of the Normal Cost, Actuarial
Actuarial Valuation
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.67.
Actuarial Value of AssetsThe value of the assets as of a given date, used by the actuary for
valuation purposes. This may be the market or fair value of plan assets
or a smoothed value in order to reduce the year-to-year volatility of
calculated results, such as the funded ratio and the actuarially required
contribution (ARC).
25
A method for determining the Amortization Payment. The most common
Amortization Method
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, allequal, 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 Value 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.
That portion of the plan contribution or ARC which is designed to pay
Amortization Payment
interest on and to amortize theUnfunded Actuarial Accrued Liability.
The period used in calculating the Amortization Payment.
Amortization Period
The employer’s periodic required contributions, expressed as a dollar
Annual Required
amount or a percentage of covered plan compensation. The ARC
Contribution (ARC)
consists of the Employer Normal Cost and Amortization Payment.
A specific number of years that is reduced by one each year, and declines
Closed Amortization Period
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.
The portion of the Normal Cost to be paid by the employer. This is
Employer Normal Cost
equal to the Normal Cost less expected member contributions.
For plans that do not establish separate amortization bases (separate
Equivalent Single
components of the UAAL), this is the same as the Amortization Period.
Amortization Period
For plans that do establish separate amortization bases, this is the period
over which the UAAL would be amortized if all amortization bases were
combined upon the current UAAL payment.
A measure of the difference between actual experience and that expected
Experience Gain/Loss
based upon a set ofActuarial 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 that produce Unfunded
Actuarial Accrued Liabilities which are larger than projected.
26
The ratio of the Actuarial Value of Assets to the Actuarial Accrued
Funded Ratio
Liability.
Governmental Accounting Standards Board.
GASB
GASB No. 67andThese are the governmental accounting standards that set the accounting
GASB No. 68rules for public retirement systems and the employers thatsponsor or
contribute to them.Statement No. 68 sets the accounting rules for the
employersthat sponsor or contribute topublic retirement systems, while
Statement No. 67sets the rules for the systems themselves.
The annual cost assigned, under the Actuarial Cost Method, to the current
Normal Cost
plan year.
An open amortization period is one which is used to determine the
Open Amortization Period
Amortization 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 Amortization 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.
The difference between the Actuarial Accrued Liability and Actuarial
Unfunded Actuarial Accrued
Value of Assets.
Liability
The date as of which the Actuarial Present Value of Future Benefits are
Valuation Date
determined. The benefits expected to be paid in the future are discounted
to this date.
SECTION C
PENSION FUND INFORMATION
27
STATEMENT OF PLAN ASSETS AT MARKET VALUE - COMBINED
September 30
Item20152014
A.Cash and Cash Equivalents$169,530$428,724
B.Receivables
1.Member Contributions$2,233$1,969
2.Employer Contributions10,74910,023
3.State Contributions6,570100,617
4.Investment Income and Other Receivables24,7819,627
5.Total Receivables$44,333$122,236
C.Investments
1.Short Term Investments$-$-
2.Domestic Equities7,303,9456,665,718
3.International Equities27,74184,408
4.Domestic Fixed Income4,003,3013,614,981
5.International Fixed Income--
6.Real Estate--
7.Other Investments--
8.Total Investments$11,334,987$10,365,107
D.Liabilities
1.Prepaid Contribution$-$-
2.Accounts Payable(16,425)(24,920)
3.Other - Lump Sum Benefit Payable--
4.Total Liabilities$(16,425)$(24,920)
E.Total Market Value of Assets Available for Benefits$11,532,425$10,891,147
F.Reserves
1.State Contribution Reserve$(878,457)$(759,902)
2.DROP Accounts(456,863)(346,206)
3.Total Reserves$(1,335,320)$(1,106,108)
G.Total Market Value Net of Reserves$10,197,105$9,785,039
H.Allocation of Investments
1.Short Term Investments0.0%0.0%
2.Domestic Equities64.5%64.3%
3.International Equities0.2%0.8%
4.Domestic Fixed Income35.3%34.9%
5.International Fixed Income0.0%0.0%
6.Real Estate0.0%0.0%
7.Other Investments0.0%0.0%
8.Total Investments100.0%100.0%
28
STATEMENT OF PLAN ASSETS AT MARKET VALUE AS OF SEPTEMBER 30, 2015
ItemPOLICEFIRE
TOTAL
A.Cash and Cash Equivalents$46,239$123,291$169,530
B.Receivables
1.Member Contributions$665$1,568$2,233
2.Employer Contributions2,6148,13510,749
3.State Contributions-6,5706,570
4.Investment Income and Other Receivables7,58517,19624,781
5.Total Receivables$10,864$33,469$44,333
C.Investments
1.Short Term Investments$-$-$-
2.Domestic Equities1,985,8285,318,1177,303,945
3.International Equities7,54220,19927,741
4.Domestic Fixed Income1,088,4342,914,8674,003,301
5.International Fixed Income---
6.Real Estate---
7.Other Investments---
8.Total Investments$3,081,804$8,253,183$11,334,987
D.Liabilities
1.Prepaid Contribution$-$-$-
2.Accounts Payable(8,197)(8,228)(16,425)
3.Other - Lump Sum Benefit Payable---
4.Total Liabilities$(8,197)$(8,228)$(16,425)
E.Total Market Value of Assets Available for Benefits$3,130,710$8,401,715$11,532,425
F.Reserves
1.State Contribution Reserve$(333,315)$(545,142)$(878,457)
2.DROP Accounts-(456,863)(456,863)
3.Total Reserves$(333,315)$(1,002,005)$(1,335,320)
G.Total Market Value Net of Reserves$2,797,395$7,399,710$10,197,105
H.Allocation of Investments
1.Short Term Investments0.0%0.0%0.0%
2.Domestic Equities64.5%64.5%64.5%
3.International Equities0.2%0.2%0.2%
4.Domestic Fixed Income35.3%35.3%35.3%
5.International Fixed Income0.0%0.0%0.0%
6.Real Estate0.0%0.0%0.0%
7.Other Investments0.0%0.0%0.0%
8.Total Investments100.0%100.0%100.0%
29
STATEMENT OF PLAN ASSETS AT MARKET VALUE AS OF SEPTEMBER 30, 2014
ItemPOLICEFIRE
TOTAL
A.Cash and Cash Equivalents$122,846$305,878$428,724
B.Receivables
1.Member Contributions$476$1,493$1,969
2.Employer Contributions2,0467,97710,023
3.State Contributions-100,617100,617
4.Investment Income and Other Receivables3,2416,3869,627
5.Total Receivables$5,763$116,473$122,236
C.Investments
1.Short Term Investments$-$-$-
2.Domestic Equities1,896,5834,769,1356,665,718
3.International Equities24,01660,39284,408
4.Domestic Fixed Income1,028,5632,586,4183,614,981
5.International Fixed Income---
6.Real Estate---
7.Other Investments---
8.Total Investments$2,949,162$7,415,945$10,365,107
D.Liabilities
1.Prepaid Contribution$-$-$-
2.Accounts Payable(10,827)(14,093)(24,920)
3.Other - Lump Sum Benefit Payable---
4.Total Liabilities$(10,827)$(14,093)$(24,920)
E.Total Market Value of Assets Available for Benefits$3,066,944$7,824,203$10,891,147
F.Reserves
1.State Contribution Reserve$(333,315)$(426,587)$(759,902)
2.DROP Accounts-(346,206)(346,206)
3.Total Reserves$(333,315)$(772,793)$(1,106,108)
G.Total Market Value Net of Reserves$2,733,629$7,051,410$9,785,039
H.Allocation of Investments
1.Short Term Investments0.0%0.0%0.0%
2.Domestic Equities64.3%64.3%64.3%
3.International Equities0.8%0.8%0.8%
4.Domestic Fixed Income34.9%34.9%34.9%
5.International Fixed Income0.0%0.0%0.0%
6.Real Estate0.0%0.0%0.0%
7.Other Investments0.0%0.0%0.0%
8.Total Investments100.0%100.0%100.0%
30
RECONCILIATION OF PLAN ASSETS - COMBINED
September 30
Item20152014
A.Market Value of Assets at Beginning of Year$10,891,147$9,593,657
B.Revenues and Expenditures
1.Contributions
a.Employee Contributions$85,266$91,691
b.Employer Contributions416,553462,816
c.State Contributions189,010100,617
d.Total$690,829$655,124
2.Investment Income
a.Interest, Dividends, and Other Income$386,796$180,551
b.Net Realized Gains/(Losses)(4,832)91,475
c.Net Unrealized Gains/(Losses)(231,564)556,723
d.Investment Expenses(52,469)(41,744)
e.Net Investment Income$97,931$787,005
3.Benefits and Refunds
a.Refunds$-$(43,331)
b.Regular Monthly Benefits(92,225)(63,710)
c.Lump Sum Distributions--
d.Total$(92,225)$(107,041)
4.Administrative and Miscellaneous Expenses$(55,257)$(37,598)
5.Transfers$-$-
C.Market Value of Assets at End of Year$11,532,425$10,891,147
D.Reserves
1.State Contribution Reserve$(878,457)$(759,902)
2.DROP Accounts(456,863)(346,206)
3.Total Reserves$(1,335,320)$(1,106,108)
E.Final Market Value of Assets at End of Year$10,197,105$9,785,039
31
RECONCILIATION OF ASSETS BY GROUP - SEPTEMBER 30, 2015
POLICEFIRETOTAL
Market Value on 9/30/2014
$3,066,944$7,824,203$10,891,147
Percent of Total
28.2%71.8%100.0
%
Income
Contributions
Members20,54564,72185,266
Employer80,782335,771416,553
State-189,010189,010
Investment Earnings
Interest, Dividends & Other Income108,004278,792386,796
Realized Gain (Loss) (1,314)(3,518)(4,832)
Unrealized Gain (Loss)(61,170)(170,394)(231,564)
Investment Expenses(24,802)(27,667)(52,469)
Total20,71877,21397,931
Total Income122,045666,715788,760
Disbursements
Monthly Benefits30,31261,91392,225
Refunds and Lump Sums---
Administrative Expenses27,96727,29055,257
Total Disbursements58,27989,203147,482
Market Value on 9/30/2015
3,130,7108,401,71511,532,425
Less State Contribution Reserve
333,315545,142878,457
Less DROP Account Balances
-456,863456,863
Final Market Value
2,797,3957,399,71010,197,105
Percent of Total
27.4%72.6%100.0
%
32
RECONCILIATION OF ASSETS BY GROUP - SEPTEMBER 30, 2014
POLICEFIRETOTAL
Market Value on 9/30/2013
$2,782,754$6,810,903$9,593,657
Percent of Total
29.0%71.0%100.0
%
Income
Contributions
Members25,88865,80391,691
Employer111,164351,652462,816
State-100,617100,617
Investment Earnings
Interest, Dividends & Other Income52,006128,545180,551
Net Realized Gain (Loss)26,02765,44891,475
Unrealized Gain (Loss)161,015395,708556,723
Investment Expenses(19,829)(21,915)(41,744)
Total219,219567,786787,005
Total Income356,2711,085,8581,442,129
Disbursements
Monthly Benefits10,07353,63763,710
Refunds and Lump Sums43,331-43,331
Administrative Expenses18,67718,92137,598
Total Disbursements72,08172,558144,639
Market Value on 9/30/2014
3,066,9447,824,20310,891,147
Less State Contribution Reserve
333,315426,587759,902
Less DROP Account Balances
-346,206346,206
Final Market Value
2,733,6297,051,4109,785,039
Percent of Total
27.9%72.1%100.0
%
33
RECONCILIATION OF DROP ACCOUNTS (FIREFIGHTERS)
Year Balance at
Ended Beginning Balance at
9/30of YearCreditsInterestDistributionsEnd of Year
2010$-$8,214$495$-$8,709
20118,70949,722(3,577)-54,854
201254,85449,65611,120-115,630
2013115,63089,91417,020-222,564
2014222,564102,65020,992-346,206
2015346,20694,37416,283-456,863
DEVELOPMENT OF ACTUARIAL VALUE OF ASSETS --POLICE
Valuation Date - SEPTEMBER 30, 2015201420152016201720182019
A.Actuarial Value of Assets Beginning of Year$2,742,660$3,022,199
B.Market Value End of Year3,066,9443,130,710
C.Market Value Beginning of Year2,782,7543,066,944
D.Non-Investment/Administrative Net Cash Flow64,97143,048
E.Investment Income
E1. Actual Market Total: B-C-D219,21920,718
E2. Assumed Rate of Return7.50%7.50%7.50%7.50%7.50%7.50%
E3. Assumed Amount of Return208,136228,279
E4. Amount Subject to Phase-In: E1–E311,083(207,561)
F.Phase-In Recognition of Investment Income
F1. Current Year: 0.20 x E42,217(41,512)
F2. First Prior Year11,6622,217(41,512)
F3. Second Prior Year20,04711,6622,217(41,512)
F4. Third Prior Year(39,198)20,04711,6622,217(41,512)
F5. Fourth Prior Year11,704(39,198)20,04711,6622,217(41,512)
F6. Total Phase-Ins6,432(46,784)(7,586)(27,633)(39,295)(41,512)
G.Actuarial Value of Assets End of Year
G1. Preliminary Actuarial Value of Assets$3,022,199$3,246,742
G2. Upper Corridor Limit: 120%*B3,680,3333,756,852
G3. Lower Corridor Limit: 80%*B2,453,5552,504,568
G4. Funding Value End of Year3,022,1993,246,742
G5. Less: State Contribution Reserve333,315333,315
G6. Less: DROP Account--
G7. Funding Value End of Year2,688,8842,913,427
H.Difference between Market & Actuarial Value$44,745$(116,032)
I.Actuarial Rate of Return
7.7%6.0%
J.Market Value Rate of Return
7.8%0.7%
K.Ratio of Actuarial Value of Assets to Market Value
98.5%103.7%
34
DEVELOPMENT OF ACTUARIAL VALUE OF ASSETS --FIREFIGHTERS
Valuation Date - SEPTEMBER 30, 2015201420152016201720182019
A.Actuarial Value of Assets Beginning of Year$6,622,179$7,634,732
B.Market Value End of Year7,824,2038,401,715
C.Market Value Beginning of Year6,810,9037,824,203
D.Non-Investment/Administrative Net Cash Flow445,514500,299
E.Investment Income
E1. Actual Market Total: B-C-D567,78677,213
E2. Assumed Rate of Return7.50%7.50%7.50%7.50%7.50%7.50%
E3. Assumed Amount of Return513,370591,366
E4. Amount Subject to Phase-In: E1–E354,416(514,153)
F.Phase-In Recognition of Investment Income
F1. Current Year: 0.20 x E410,883(102,831)
F2. First Prior Year35,85210,883(102,831)
F3. Second Prior Year62,13635,85210,883(102,831)
F4. Third Prior Year(85,893)62,13635,85210,883(102,831)
F5. Fourth Prior Year30,691(85,893)62,13635,85210,883(102,831)
F6. Total Phase-Ins53,669(79,853)6,040(56,096)(91,948)(102,831)
G.Actuarial Value of Assets End of Year
G1. Preliminary Actuarial Value of Assets$7,634,732$8,646,544
G2. Upper Corridor Limit: 120%*B9,389,04410,082,058
G3. Lower Corridor Limit: 80%*B6,259,3626,721,372
G4. Funding Value End of Year7,634,7328,646,544
G5. Less: State Contribution Reserve426,587545,142
G6. Less: DROP Accounts346,206456,863
G7. Funding Value End of Year6,861,9397,644,539
H.Difference between Market & Actuarial Value$189,471$(244,829)
I.Actuarial Rate of Return
8.3%6.5%
J.Market Value Rate of Return
8.1%1.0%
K.Ratio of Actuarial Value of Assets to Market Value
97.6%102.9%
35
SECTION D
FINANCIAL ACCOUNTING INFORMATION
36
FASB NO. 35 INFORMATION
PoliceFireTotalTotal
A.Valuation Date10/1/201510/1/201510/1/201510/1/2014
B.Actuarial Present Value of Accumulated
Plan Benefits
1.Vested Benefits
a.Members Currently Receiving Payments$359,163$1,849,980$2,209,143$2,230,786
b.Terminated Vested Members436,916144,532581,448526,172
c.Other Members836,9215,054,8735,891,7945,030,379
d.Total1,633,0007,049,3858,682,3857,787,337
2.Non-Vested Benefits-16,74516,74555,933
3.Total Actuarial Present Value of Accumulated
Plan Benefits: 1d + 21,633,0007,066,1308,699,1307,843,270
4.Accumulated Contributions of Active Members172,965762,175935,140872,408
C.Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1.Total Value at Beginning of Period1,519,0106,324,2607,843,2707,230,096
2.Increase (Decrease) During the Period
Attributable to:
a.Plan Amendment(7,577)132,221124,644-
b.Change in Actuarial Assumptions----
c.Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period151,879765,936917,815822,865
d.Benefits Paid(30,312)(156,287)(186,599)(209,691)
e.Net Increase113,990741,870855,860613,174
3.Total Value at End of Period1,633,0007,066,1308,699,1307,843,270
D.Market Value of Assets2,797,3957,399,71010,197,1059,785,039
E.Actuarial Assumptions - See page entitled
Actuarial Assumptions and Methods
37
SCHEDULE OF CHANGES IN THE EMPLOYER’S
NET PENSION LIABILITY AND RELATED RATIOS
GASB Statement No. 67
Police Officers
20152014
Fiscal year ending September 30,
Total pension liability
Service Cost$126,703$161,156
Interest213,603169,526
Benefit Changes(39,467)-
Difference between actual & expected experience(391,613)-
Assumption Changes--
Benefit Payments(30,312)(10,073)
Refunds-(43,331)
Net Change in Total Pension Liability
(121,086)277,278
Total Pension Liability - Beginning
2,736,4892,459,211
Total Pension Liability - Ending (a)
$2,615,403$2,736,489
Plan Fiduciary Net Position
Contributions - Employer$80,782$111,164
Contributions - Employer (from State)--
Contributions - Non-Employer Contributing Entity--
Contributions - Member20,54525,888
Net Investment Income20,718219,219
Benefit Payments(30,312)(10,073)
Refunds-(43,331)
Administrative Expense(27,967)(18,677)
Other--
Net Change in Plan Fiduciary Net Position
63,766284,190
Plan Fiduciary Net Position - Beginning
3,066,9442,782,754
Plan Fiduciary Net Position - Ending (b)
$3,130,710$3,066,944
Net Pension Liability - Ending (a) - (b)
(515,307)(330,455)
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
119.70%112.08%
Covered Employee Payroll
$418,699$538,942
Net Pension Liability as a Percentage
of Covered Employee Payroll
(123.07)%(61.32)%
38
SCHEDULE OF CHANGES IN THE EMPLOYER’S
NET PENSION LIABILITY AND RELATED RATIOS
GASB Statement No. 67
Firefighters
Fiscal year ending September 30,20152014
Total pension liability
Service Cost$334,559$312,030
Interest679,400582,897
Benefit Changes318,787-
Difference between actual & expected experience108,010450
Assumption Changes--
Benefit Payments(61,913)(53,637)
Refunds--
Other118,55530,162
Net Change in Total Pension Liability1,497,398871,902
Total Pension Liability - Beginning8,755,0667,883,164
Total Pension Liability - Ending (a)$10,252,464$8,755,066
Plan Fiduciary Net Position
Contributions - Employer$335,771$351,652
Contributions - Employer (from State)189,010100,617
Contributions - Non-Employer Contributing Entity--
Contributions - Member64,72165,803
Net Investment Income77,213567,786
Benefit Payments(61,913)(53,637)
Refunds--
Administrative Expense(27,290)(18,921)
Other--
Net Change in Plan Fiduciary Net Position577,5121,013,300
Plan Fiduciary Net Position - Beginning7,824,2036,810,903
Plan Fiduciary Net Position - Ending (b)$8,401,715$7,824,203
Net Pension Liability - Ending (a) - (b)1,850,749930,863
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability81.95%89.37%
Covered Employee Payroll$1,380,379$1,402,781
Net Pension Liability as a Percentage
of Covered Employee Payroll134.08%66.36%
39
SCHEDULE OF THE EMPLOYER’S NET PENSION LIABILITY
GASB Statement No. 67
Police
TotalPlan Net PositionCoveredNet Pension Liability
FY EndingPensionPlan NetNet Pension as a % of TotalEmployee as a % of Covered
September 30,LiabilityPositionLiabilityPension LiabilityPayrollEmployee Payroll
2014$2,736,489$3,066,944$(330,455)112.08%$538,942(61.32)%
20152,615,4033,130,710(515,307)119.70418,699(123.07)
Fire
TotalPlan Net PositionCoveredNet Pension Liability
FY EndingPensionPlan NetNet Pension as a % of TotalEmployee as a % of Covered
September 30,LiabilityPositionLiabilityPension LiabilityPayrollEmployee Payroll
2014$8,755,066$7,824,203$930,86389.37%$1,402,78166.36%
201510,252,4648,401,7151,850,74981.951,380,379134.08
40
SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
Police
ActuariallyContributionCoveredNet Pension Liability
FY EndingDeterminedActualDeficiencyEmployee as a % of Covered
September 30,ContributionContribution(Excess)PayrollEmployee Payroll
2014$111,164$111,164$-$538,94220.63%
201580,78280,782-418,69919.29
Fire
ActuariallyContributionCoveredNet Pension Liability
FY EndingDeterminedActualDeficiencyEmployee as a % of Covered
September 30,ContributionContribution(Excess)PayrollEmployee Payroll
%
2014$416,665$422,107$(5,442)$1,402,78130.09
2015403,211406,226(3,015)1,380,37929.43
41
NOTES TO SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
Valuation Date:
October 1, 2013
NotesActuariallydeterminedcontributionratesarecalculatedasofOctober1,
whichistwoyear(s)priortotheendofthefiscalyearinwhich
contributions are reported.
Methods and Assumptions Used to Determine Contribution Rates:
Entry Age Normal
Actuarial Cost Method
Level Dollar, Closed
Amortization Method
20 years
Remaining Amortization Period
5-year smoothed market
Asset Valuation Method
3.0%
Inflation
6.0%, including inflation
Salary Increases
7.50%
Investment Rate of Return
100%uponreachingnormalretirementage.Probabilityofearly
Retirement Age
retirement is 5% for each year eligible.
Mortality
RP-2000CombinedHealthyParticipantMortalityTableformalesand
femaleswithmortalityimprovementprojectedtoallfutureyearsusing
Scale AA.
Other Information:
SeeDiscussionofValuationResultsintheOctober1,2013Actuarial
Notes
Valuation Report.
42
SINGLE DISCOUNT RATE
GASB Statement No. 67
A single discount rate of 7.50%was used to measure the total pension liability. This single discount rate
was based on the expected rate of return on pension plan investments of 7.50%. The projection of cash
flows used to determine this single discount rate assumed that plan member contributions will be made at
the current contribution rate and that employer contributions will be made at rates equal to the difference
between the total actuarially determined contribution rates and the member rate. Based on these
assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments (7.50%) was applied toall periods of projected benefit payments to determine
the total pension liability.
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following
presents the plan’s net pension liability, calculated using asingle discount rate of 7.50%, as well as what
the plan’s net pension liability would be if it were calculated using a single discount rate thatis 1-
percentage-point lower or 1-percentage-point higher:
Police
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
Current Single Discount
Rate Assumption
1% Decrease1% Increase
6.50%7.50%8.50%
($169,381)($515,307)($797,737)
Fire
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
Current Single Discount
Rate Assumption
1% Decrease1% Increase
6.50%7.50%8.50%
$3,100,259$1,850,749$804,393
SECTION E
MISCELLANEOUS INFORMATION
43
RECONCILIATION OF MEMBERSHIP DATA
From 10/1/14From 10/1/13
To 10/1/15To 10/1/14
A.Active Members
1.Number Included in Last Valuation2325
2.New Members Included in Current Valuation10
3.Non-Vested Employment Terminations00
4.Vested Employment Terminations0(1)
5.Service and DROP Retirements0(1)
6.Disability Retirements00
7.Deaths00
8.Other - Forfeiture(1)0
9.Number Included in This Valuation2323
B.Terminated Vested Members
1.Number Included in Last Valuation35
2.Additions from Active Members01
3.Lump Sum Payments0(2)
4.Payments Commenced0(1)
5.Deaths00
6.Other00
7.Number Included in This Valuation33
C.Service Retirees, DROP, Disability Retirees and Beneficiaries
1.Number Included in Last Valuation53
2.Additions from Active Members01
3.Additions from Terminated Vested Members01
4.Deaths Resulting in No Further Payments00
5.Deaths Resulting in New Survivor Benefits00
6.End of Certain Period - No Further Payments00
7.Other 00
8.Number Included in This Valuation55
44
STATISTICAL DATA
POLICE OFFICERS
10/1/201210/1/201310/1/2014 **10/1/2015
Active Participants
Number10976
Total Annual Payroll* $ 744,314 $ 636,834 $ 496,153 $ 429,707
Average Annual Salary74,43170,75970,87971,618
Other Averages
Current Age40.140.039.041.4
Age at Employment33.031.830.431.9
Past Service7.18.28.69.5
Service Retirees and Beneficiaries
Number0022
Total Annual Benefit - - $ 27,708 $ 27,708
Average Monthly Benefit - -1,1551,155
Disability Retirees
Number0000
Total Annual Benefit - - - -
Average Monthly Benefit - ---
Terminated Members with Vested Benefits
Number3422
Total Annual Benefit $ 46,632 $ 59,717 $ 37,272 $ 37,272
Average Monthly Benefit1,2951,2441,5531,553
* Reported payroll with salary scale
** From Actuarial Impact Statement dated February 12, 2015.
45
STATISTICAL DATA
FIREFIGHTERS
10/1/201210/1/201310/1/201410/1/2015
Active Participants
Number17161617
Total Annual Payroll* $ 1,372,353 $ 1,300,712 $ 1,395,026 $ 1,419,058
Average Annual Salary80,72781,29587,18983,474
Other Averages
Current Age39.940.041.041.2
Age at Employment28.327.827.827.8
Past Service11.612.213.213.4
Service Retirees and Beneficiaries
Number2333
Total Annual Benefit $ 103,293 $ 156,287 $ 156,287 $ 156,287
Average Monthly Benefit $ 4,304 4,3414,3414,341
Disability Retirees
Number0000
Total Annual Benefit - - - -
Average Monthly Benefit ----
Terminated Members with Vested Benefits
Number1111
Total Annual Benefit $ 17,524 $ 17,524 $ 17,524 $ 17,524
Average Monthly Benefit1,4601,4601,4601,460
* Reported payroll with salary scale
46
ACTIVE PARTICIPANT DISTRIBUTION
Years of Service to Valuation Date
Age GroupTotals
0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25 +
20-24 NO.00000000000
TOT PAY00000000000
AVG PAY00000000000
25-29 NO.00000000000
TOT PAY00000000000
AVG PAY00000000000
30-34 NO.10000300004
TOT PAY50,1940000206,4340000256,628
AVG PAY50,194000068,811000064,157
35-39 NO.00000330006
TOT PAY00000197,322213,985000411,307
AVG PAY0000065,77471,32800068,551
40-44 NO.00000123006
TOT PAY0000070,906131,275245,32700447,508
AVG PAY0000070,90665,63881,7760074,585
45-49 NO.00000110103
TOT PAY0000054,46385,9930110,6620251,118
AVG PAY0000054,46385,9930110,662083,706
50-54 NO.00000000202
TOT PAY00000000216,5560216,556
AVG PAY00000000108,2780108,278
55-59 NO.00000011002
TOT PAY00000065,31595,68600161,001
AVG PAY00000065,31595,6860080,501
60-64 NO.00000000000
TOT PAY00000000000
AVG PAY00000000000
TOT NO.100008743023
TOT AMT50,1940000529,125496,568341,013327,21801,744,118
AVG AMT50,194000066,14170,93885,253109,073075,831
47
INACTIVE PARTICIPANT DISTRIBUTION
Terminated VestedDisabledRetiredBeneficiaries
TotalTotalTotalTotal
AgeNumberBenefitsNumberBenefitsNumberBenefitsNumberBenefits
Under 2000000000
20 - 2400000000
25 - 2900000000
30 - 3400000000
35 - 3900000000
40 - 4400000000
45 - 49117,524000000
50 - 54121,32400112,08800
55 - 59115,948003122,25100
60 - 640000149,65600
65 - 6900000000
70 - 7400000000
75 - 7900000000
80 - 8400000000
85 - 8900000000
90 - 9400000000
95 - 9900000000
100 & Over00000000
Total354,796005183,99500
Ave. Age530580
SECTION F
SUMMARY OF PLAN PROVISIONS
48
SUMMARY OF PLAN PROVISIONS
A.Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida, Chapter 2,
Article III, Division 1, Section 2-61 (b), and was most recently amended under Ordinance No. 15-15,
passed and adopted on August 13, 2015. The Plan is also governed by certain provisions of Chapter
175, Florida Statutes, Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code
B.Effective Date
Not currently available
C.Plan Year
October 1 through September 30
D.Type of Plan
Qualified, governmentaldefined 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 andall full-timefirefighters 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 refundof their contributions.
G.Compensation
Total cash remuneration for services rendered as a police officer or firefighter.For firefighters and
police officers hired before October1, 2010, overtime hours are limited to 300 hours per year, effective
October 1, 2013 for firefighters and October 1, 2014 for police officers. For firefighters and police
officers hired before October 1, 2010, payments for unused leave earned after October 1, 2013 for
firefighters and October 1, 2014 for police officersareexcluded from pensionable salary.For
firefightershired on or after October 1, 2010, fixed monthly remuneration including regular earnings,
vacation pay and sick pay but excluding lump sum payments, overtime, bonuses, incentives and
longevity.
H.Average Final Compensation (AFC)
The average of Compensation over the highest 5years during the last 10 years of Credited Service.
49
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(10 years of Credited Service for
firefighters hired on or after August 14, 2015), or
(2) age 52 and 25 years of Credited Service.
Benefit:For police officers and firefighters hired before August 14, 2015 (firefighters:
Credited Service only prior to September 1, 2015):
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
4.0% of AFC multiplied 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 multiplied by all years of Credited Service over 25 years
For firefighters hired before August 14, 2015, Credited Service on or after
September 1, 2015:
3.0% of AFC multiplied by years of Credited Service
Forfirefighters hired on or after August 14, 2015:
2.0% of AFC multiplied by the first 10 years of Credited Service
2.5% of AFC multiplied by all years of Credited Service over 10 years
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 than the Normal Retirement Eligibility upon
attainment of age 50 and 6 years of Credited Service(10 years of Credited Service for
firefighters hired on or after August 14, 2015).
Benefit:The Normal Retirement Benefit is reduced by 3.0% for eachyear 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
50
Supplemental
Benefit:All retirees and beneficiaries receiving pension benefits will be paid a supplemental
benefit equal to $20 for each yearof 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 taking into account compensation earned and servicecredited 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 taking 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
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 disabilitybenefit.
Benefit: The accrued Normal Retirement Benefit taking into account compensation earned and
service credited as of the date of 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 maximum
of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
51
N.Death in the Line of Duty
Eligibility:Members are eligible for survivor benefits regardless of Credited Service.
Benefit:The member’s spouse or dependent child will receive the 50% of the member’s AFC
as of the date of death.
Normal Form
of Benefit:Payable for the life of the beneficiary.
COLA:None
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 6or more years of
Credited Service(10 years of Credited Service for firefighters hired on or after August
14, 2015).
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.
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(10 years of Credited
Service for firefighters hired on or after August 14, 2015) 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
theLife Annuity option or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options.
52
R.Vested Termination
Eligibility:A member has earned a non-forfeitable right to Plan benefits after the completion of 6
years of Credited Service(10 years of Credited Service for firefighters hired on or after
August 14, 2015).
Benefit:The benefit is the member’s accrued Normal Retirement Benefit as of the date of
termination.Benefit begins on the member’s Normal Retirement date. Alternatively,
members can elect a reduced Early Retirement benefit any 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 status, 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.
Membersterminating employment with less than 6years of Credited Service(10 years of Credited
Service for firefighters hired on or after August 14, 2015)will receive a refund oftheir own
accumulated contributions.
S. Refunds
Eligibility:All members terminating employment with less than 6 years of Credited Service(10
years of Credited Service for firefighters on or after August 14, 2015) are eligible.
Optionally, vested members (those with 6 or more years of Credited Service–10 years
of Credited Service for firefighters hired on or after August 14, 2015) may elect a
refund in lieu of the vested benefits otherwise due.
Benefit:Refund ofthe member’s contributions.
T. Member Contributions
5% of Compensation for police officers and for firefighters through the fiscal year ending September
30, 2016; 5.5% of Compensation for firefighters beginning in the fiscal year ending September 30,
2017; thereafter, 6% of Compensation for firefighters. Employee contributions for firefighterswould
revert back to 5% of Compensation if the Village opts out of participation in Chapter 175.
U.StateContributions
Chapter 185 Premium Tax Revenue: None.
Chapter 175 Premium Tax Revenue: The Village ispermitted to use all annual Chapter 175 revenue
as a credit toward the Required Employer Contributionandto apply the Chapter 175 reserve of
$545,142to reduce the Required Employer Contributions for the fiscal years ending September 30,
2016through September 30, 2018, as determined by the Village.
V.Employer Contributions
Any additional amount determined by the actuary needed tofund theplan properlyaccording to State
laws.
53
V.Cost of Living Increases
Not Applicable
th
W.13Check
Not Applicable
X.Deferred RetirementOption 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(10 years of Credited Service for
firefighters hired on or after August 14, 2015), 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 employment.
Benefit:The member’s Credited Service and AFC are frozen upon entry into the DROP.The
monthly retirement benefit as described under NormalRetirement is calculatedbased
uponthe frozen Credited Service and AFC.Firefighters have the optional sell back of
vacation and sick leave when entering the DROP.
Maximum
DROP Period:Theearlier of 5 yearsof participation in the DROP or 30 years of employment.
Interest
Credited:The member's DROP account is credited on September 30 of each year with
investment earnings or losses at the same rate earned by the pension fund less any
administrative expenses.The interest rate will not be less than 0% nor greater than
7.5%.
Normal Form
of Benefit:Lump Sum; other options are 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
Changes per Ordinance No. 1-15 and Ordinance No. 15-15 as detailed in Section A of this report.