Impact Letter re Change in Definition of Actuarial Equivalence - 7-31-2012 Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone
GRS CMISLIIMI-It5,. Actuaries Suite 505 954.525.0083 fax
Ft.Lauderdale,FL 33301-1804 www.gabrielroeder.com
July 31,2012
Ms. Loren Slaydon
Director of Human Resources
Village of North Palm Beach
501 U.S. Highway 1
North Palm Beach, FL 33408
Re: North Palm Beach General Retirement Fund
Actuarial Impact Statement
Dear Loren:
As requested,we are providing an Actuarial Impact Statement for the proposed ordinance that would change
the definition of actuarial equivalence from an 8%interest rate and the 1983 Group Annuity Mortality Table for
males to a 7.5% interest rate and the RP 2000 Combined Healthy Participant Mortality Tables with equal
blending of male and female rates and rates projected with mortality improvements through 2012 using Scale
BB.
In our opinion,this change will have no actuarial impact on the Plan.
Because this change will not have an actuarial impact, it is our opinion that a formal Actuarial Impact
Statement is not required. However, we recommend that you send a copy of this letter and the Ordinance to
the Bureau of Local Retirement Systems before the final public hearing on the Ordinance.
We welcome your questions and comments.
Sincerely yours,
"
. n ._. .... .. 0
J. Stephen Pahnquist, ASA
Senior Consultant and Actuary
JSP/ma