PFPB Actuarial Report 10-01-2010VILLAGE OF NORTH PALM BEACH
FIRE AND POLICE RETIREMENT FUND
ACTUARIAL VALUATION REPORT
AS OF OCTOBER 1 � 2010
CONTRIBUTIONS APPLICABLE TO THE VILLAGE'S
PLAN /FISCAL YEAR ENDING SEPTEMBER 30, 2012
Foster&_Fostenc.
Actuaries and Consultants
March 4, 2011
Board of Trustees
Village of North Palm Beach Fire and Police Retirement Fund
c/o Ms. Denise McNeill
The Resource Centers, LLC
4360 Northlake Blvd, Suite 206
Palm Beach Gardens, FL 33410
Re: Village of North Palm Beach
Fire and Police Retirement Fund
Dear Board:
We are pleased to present to the Board this report of the annual actuarial valuation of
the Village of North Palm Beach Fire and Police Retirement Fund. The valuation was
performed to determine whether the assets and contributions are sufficient to provide
the prescribed benefits and to develop the appropriate funding requirements for the
applicable plan year.
The valuation has been conducted in accordance with generally accepted actuarial
principles and practices, including the applicable Actuarial Standards of Practice as
issued by the Actuarial Standards Board, and reflects laws and regulations issued to
date pursuant to the provisions of Chapters 112, 175 and 185, Florida Statutes, as well
as applicable federal laws and regulations. In our opinion, the assumptions used in this
valuation, as adopted by the Board of Trustees, represent reasonable expectations of
anticipated plan experience.
In conducting the valuation, we have relied on personnel, plan design, and asset
information supplied by the Board of Trustees, financial reports prepared by the
custodian bank, Salem Trust, and the actuarial assumptions and methods described in
the Actuarial Assumptions section of this report. While we cannot verify the accuracy of
all this information, the supplied information was reviewed for consistency and
reasonableness. As a result of this review, we have no reason to doubt the substantial
accuracy of the information and believe that it has produced appropriate results. This
information, along with any adjustments or modifications, is summarized in various
sections of this report.
The undersigned is familiar with the immediate and long -term aspects of pension
valuations, and meets the Qualification Standards of the American Academy of
Actuaries necessary to render the actuarial opinions contained herein. All of the
sections of this report are considered an integral part of the actuarial opinions.
13420 Parker Commons Blvd., Suite 104 • Fort Myers, Florida 33912 • 239- 433 -5500 • Fax 239 - 481 -0634 • www.foster- foster.com
Board of Trustees
March 4, 2011
Page Two
To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the
program has any direct financial interest or indirect material interest in the Village of
North Palm Beach, nor does anyone at Foster & Foster, Inc. act as a member of the
Board of Trustees of the Village of North Palm Beach Fire and Police Retirement Fund.
Thus, there is no relationship existing that might affect our capacity to prepare and
certify this actuarial report.
If there are any questions, concerns, or comments about any of the items contained in
this report, please contact me at 239 - 433 -5500.
Respectfully submitted,
Foster & Foster, Inc.
r
Bradley R. Heinrichs, FSA, EA, MAAA
Enrolled Actuary #08 -6901
BRHllsw
Enclosures
Section
III
IV
V
VI
TABLE OF CONTENTS
Title Page
Introduction
a. Summary of Report
1
b. Changes Since Prior Report
3
c. Requirements of Chapter 112,
4
Part VII, Florida Statutes
Valuation Information
a. Actuarial Assumptions and
9
Funding Methods
b. Valuation Notes
11
c. Partial History of Premium
12
Tax Refunds
d. Excess State Monies Reserve
13
Trust Fund
14
Member Statistics
a. Eligibility for Retirement
18
b. Statistical Data
19
c. Age and Service Distribution
20
d. Member Reconciliation
21
Summary of Plan Provisions
22
Governmental Accounting Standards
25
Board Disclosure Information
SECTION I
INTRODUCTION
SUMMARY OF REPORT
The regular annual actuarial valuation of the Village of North Palm Beach Fire and
Police Retirement Fund, performed as of October 1, 2010, has been completed, and the
results are presented in this Report. The contribution amounts developed in this valuation are
applicable to the plan/fiscal year ended September 30, 2012.
The contribution requirements, compared with amounts developed in the October 1,
2009, actuarial valuation (as revised July 15, 2010), are as follows:
Valuation Date
10/1/2009
10/1/2010
Applicable Plan /Fiscal Yr. End
9/30/2011
9/30/2012
Total Required Contribution
% of Total Annual Payroll
26.21%
28.28%
Member Contributions
% of Total Annual Payroll
2.00%
2.00%
Village and State Required Contribution
% of Total Annual Payroll
24.21%
26.28%
State Contribution (1)
230,696
230,696
% of Total Annual Payroll
6.25%
6.25%
Balance from Village (1)
% of Total Annual Payroll
17.96%
20.03%
(1) The Village may use up to $230,696 in State Contributions for determining its
minimum funding requirements. For budgeting purposes, the required Sponsor
Contribution (Village and State) is 26.28% of Pensionable Earnings for the fiscal
year ending September 30, 2012. The precise Village requirement for the year is
this amount, less actual State Contributions (up to the maximum $230,696).
Additionally, please note that there is a Village receivable contribution of
$10,473.91 required for the fiscal year ending September 30, 2010.
As can be seen, the Total Required Contribution has increased when expressed as a
percentage of Total Annual Payroll. This increase is a result of net unfavorable actuarial
experience during the past year, relative to the Plan's actuarial assumptions. The
primary components of unfavorable experience included a 5.7% investment return
(Actuarial Asset basis), falling short of the 8.0% assumption, average increases in
Pensionable Compensation that exceeded the assumption by more than 6 %, and lower
than expected employee turnover.
Effective with valuation dates after October 1, 2009, the Florida Division of
Retirement will no longer accept valuations utilizing the Plan's prior mortality assumption.
Accordingly, the mortality assumption has been changed from the 1983 Group Annuity
Mortality basis to the RP2000, Combined Healthy basis. The funding impact associated
with this assumption change is responsible for approximately 75% of the increase in the
funding rate shown on page 1.
The balance of this Report presents additional details of the actuarial valuation
and the general operation of the Fund. The undersigned would be pleased to meet with
the Board to discuss the Report and answer any questions concerning its contents.
By:
Respectfully submitted,
FOSTER & FOSTER, INC.
Bradley R. Heinrichs, FSA, EA, MAAA
Douglas H. Lozen
2
N
Plan Changes Since Prior Valuation
There have been no changes in benefits since the prior valuation.
Actuarial Assumption /Method Changes Since Prior Valuation
In conjunction with this valuation of the Plan, the mortality assumption has been
changed from rates set forth in the 1983 Group Annuity Mortality Table to those
in the RP 2000 Combined Healthy Table. Details of the impact of this change
are presented in the body of this report, beginning on page 4.
K
Comparative Summary of Principal Valuation Results
new prior prior
assumption assumption assumption
10/1/2010 10/1/2010 10/1/2009
A. Participant Data
Number Included
Actives
52
52
52
Service Retirees
8
8
6
Beneficiaries
0
0
0
Terminated Vested
10
10
11
Disability Retirees
1
1
1
Total
71
71
70
Total Annual Payroll
3,922,596
3,922,596
3,488,338
Payroll Under Assumed Ret. Age
3,690,332
3,690,332
3,488,338
Annual Rate of Payments to:
0
0
0
Service Retirees
172,126
172,126
126,123
Beneficiaries
0
0
0
Terminated Vested
162,008
162,008
206,873
Disability Retirees
38,585
38,585
38,585
B. Assets
Actuarial Value 11,240,540 11,240,540 10,650,648
Market Value 10,651,237 10,651,237 9,979,357
C. Liabilities
Present Value of Benefits
Active Members
Retirement Benefits
11,922,240
11,494,841
9,830,139
Disability Benefits
1,120,646
1,087,567
990,229
Death Benefits
119,435
187,955
164,877
Vested Benefits
779,252
752,978
630,864
Refund of Contributions
39,477
39,459
43,952
Service Retirees
3,307,814
3,272,022
3,409,487
Beneficiaries
0
0
0
Terminated Vested
1,886,941
1,816,189
2,147,790
Disability Retirees
548,291
547,765
557,901
Excess State Monies Reserve
23,894
23,894
0
Total
19,747,990
19,222,670
17,775,239
C. Liabilities - (Continued)
Present Value of Future Salaries
Present Value of Future
Normal Costs (Aggregate Basis)
Present Value of Future
Normal Costs (Entry Age Basis)
Normal Cost (Aggregate, Level Percent)
Present Value of Future
Member Contributions
Actuarial Accrued Liability (Aggregate Basis)
Actuarial Accrued Liability (Entry Age Basis)
Unfunded Actuarial Accrued
Liability (UAAL)
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
I nactives
Actives
Member Contributions
Total
Non - vested Accrued Benefits
Total Present Value Accrued
Benefits
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments
Assumption Changes
New Accrued Benefits
Benefits Paid
Interest
Other
Total:
new
prior
prior
assumption
assumption
assumption
10/1/2010
1011/2010
10/1/2009
33,473,103
33,370,146
30,485,079
8,507,450
7,982,130
7,124,591
5,602,138
5,425,209
5,118, 946
937,927
882,726
815,251
669,462
667,403
609,702
11,240,540
11,240, 540
10,650,648
14,121,958
13,773, 567
12,656,293
0
0
0
5,743,046
5,635,976
6,115,178
4,588,773
4,447,152
3,577,156
395,049
395,049
320,579
10,726,868
10,478,177
10,012,913
989,994
964,521
970,715
11,716,862
11,442,698
10,983,628
0
0
274,164
0
0
553,993
0
(936,167)
0
841,244
0
0
274,164
459,070
Valuation Date
Applicable to the Fiscal Year Ending
E. Pension Cost
Normal Cost (with interest)
% of Total Annual Payroll*
Administrative Expense (with interest)
% of Total Annual Payroll*
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 0 years
(as of 10/1110)
% of Total Annual Payroll*
Total Required Contribution
% of Total Annual Payroll*
Expected Member Contributions
% of Total Annual Payroll*
Expected Village & State Contrib.
% of Total Annual Payroll*
F. Past Contributions
Plan Years Ending:
Total Required Contribution
Village and State Requirement
Actual Contributions Made:
Members
Village
State
Total
G. Actuarial Gain (Loss) NIA
L
new prior prior
assumption assumption assumption
10/1/2010 10/1/2010 10/1/2009
9/30/2012 9/30/2012 9/30/2011
26.43 24.88 24.31
1.85 1.85 1.90
0.00 0.00 0.00
28.28 26.73 26.21
2.00 2.00 2.00
26.28 24.73 24.21
9/30/2010
958,577
884,067
77,472
653,372
230,696 **
961,540
* Contributions developed as of 10/1/10 are expressed as a percentage of Payroll Under
Assumed Retirement Age at 10/1/10 of $3,690,332
** "Frozen" pursuant to Chapters 175 and 185, Florida Statutes.
H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability
as of:
Projected Unfunded
Year Accrued Liability
NIA - Aggregate Actuarial Cost Method
I. (i) 3 Year Comparison of Actual and Assumed Increases in Pensionable Compensation
Actual
Year Ended 9/30/2010 12.7%
Year Ended 9/30/2009 3.5%
Year Ended 9/30/2008 4.7%
(ii) 3 Year Comparison of Investment Return on Actuarial Value
Year Ended
Year Ended
Year Ended
(iii) Average Annual Payroll Growth
(a) Payroll as of:
(b) Total Increase
(c) Number of Years
(d) Average Annual Rate
9130/2010
9/30/2009
9/30/2008
Actual
5.7%
6.3%
4.3%
10/1/2010
10/1/2000
Assumed
6.0%
6.0%
6.0%
Assumed
8.0%
8.0%
8.0%
$3,922,596
1,493,357
162.7%
10.00
10.1%
li`r
Statement by Enrolled Actuary
This actuarial valuation 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, and in my opinion, the techniques and assumptions
used are reasonable and meet the requirements and intent of Park VII, Chapter 112, Florida
Statutes. 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.
L '
i
Bradley R. Heinrichs, FSA, EA, MAAA
Enrolled Actuary #08 -6901
A copy of this Report is to be furnished to the Division of Retirement within 60 days
of receipt from the actuary at the following address:
Patricia Shoemaker
Municipal Police and Fire
Pension Trust Funds
Division of Retirement
Post Office Box 3010
Tallahassee, FL 32315 -3010
Mr. Keith Brinkman
Division of Retirement
Bureau of Local Retirement Systems
P. O. Box 9000
Tallahassee, FL 32315 -9000
E
SECTION II
VALUATION INFORMATION
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
Mortality Rate
Interest Rate
Retirement Rates
Disability Rate
Termination Rate
Salary Increases
Post Retirement COLA
Payroll Growth
Administrative Expenses
Assumptions
Current: RP2000, Combined Healthy Mortality
Table. Disabled Members set forward 5 years.
Prior: 1983 Group Annuity Mortality Table.
Disabled Members set forward 5 years.
8% per year compounded annually,
net of investment related expenses.
The assumed rate of retirement is 5.0% for each
year of eligibility for early retirement.
Below are the rates assumed once the
Member has attained normal retirement
eligibility.
Number of Years
After First Eligibility
For Normal Retirement
0
1
2
3
4
5+
Annual Rate of
Retirement
60%
40%
40%
40%
40%
100%
See table on the following page. 75% of
disabilities are assumed to be service- incurred.
See table on the following page.
6.0% per year until the assumed
retirement age.
3% per year.
NIA.
Average of actual administrative expenses
over the previous two years.
0
10
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
(continued)
Funding Method
Aggregate Actuarial Cost Method
% Becoming Disabled
% Terminating
Acme
Durinq the Year
During the Year
20
0.14%
9.00%
25
0.15%
8.55%
30
0.18%
7.50%
35
0.23%
5.70%
40
0.30%
3.90%
45
0.51%
2.40%
50
1.00%
1.20%
55
1.55%
0.45%
60
0.00%
0.30%
Funding Method
Aggregate Actuarial Cost Method
I
VALUATION NOTES
Total Annual Payroll is the projected annual rate of pay as of the valuation date of all covered
members.
Present Value of Benefits is the single sum value on the valuation date of all future
benefits to be paid to current Members, Retirees, Beneficiaries, Disability Retirees
and Vested Terminations.
Normal Current Year's Cost Rate is determined in the aggregate as the ratio of (a) and (b)
as follows:
(a) The present value of benefits for all Plan participants, less the actuarial
value of assets.
(b) The present value of future compensation over the anticipated number of
years of participation, determined as of the valuation date.
The Normal Cost dollar requirement is the ratio of (a) and (b), multiplied by the Total Annual
Payroll as of the valuation date.
Aggregate Actuarial Cost Method (Level Percent of Compensation) is the method used to
determine required contributions under the Plan. The use of this method involves the
systematic funding of the Normal Cost (described above).
Total Required Contribution is equal to the Normal Cost plus an adjustment for interest
according to the timing of sponsor contributions during the year.
12
PARTIAL HISTORY OF PREMIUM TAX REFUNDS
Received During
Increase from
Fiscal Year
Amount
Previous Year
1989
52,866.00
%
1990
49,647.00
-6.1%
1991
54,960.00
10.7%
1992
51,832.00
-5.7%
1993
49,897.00
-3.7%
1994
54,214.00
8.7%
1995
58,926.00
8.7%
1996
55,501.00
-5.8%
1997
76,514.00
37.9%
1998
92,462.12
20.8%
1999
80,911.74
-12.5%
2000
78,246.11
-3.3%
2001
108,200.87
38.3%
2002
134,408.43
24.2%
2003
159,943.14
19.0%
2004
203,317.14
27.1%
2005
209,222.36
2.9%
2006
233,640.77
11.7%
2007
325,961.92
39.5%
2008
321,142.12
-1.5%
2009
221,372.40
-31.1%
2010
254,590.16
15.0%
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13
SECTION III
TRUSTFUND
Village of North Palm Beach
Fire and Police Retirement Fund
BALANCE SHEET
September 30, 2010
ASSETS
Cash and Cash Equivalents:
Checking Account
Prepaid Expenses
Money Market
Pending Trades Receivable
Pending Trades Payable
Cash
Total Cash and Equivalents
Receivable:
Member Contributions in Transit
Village Contributions
Member Buy -Back Contributions
State Contributions
Accrued Income
Total Receivable
Investments:
U S GovttGovt Sponsored /Agency
Corporate & Foreign Bonds /CMOs /REMICs
Corporate Stocks /REITs
Municipal Obligations
Mutual Funds:
Equity
Total Investments
TOTAL ASSETS
LIABILITIES AND NET ASSETS
Liabilities:
Payable:
Unpaid Investment Expenses
Unpaid Administrative Expenses
Total Liabilities
Net Assets:
Active and Retired Members' Equity
Total Net Assets
TOTAL LIABILITIES AND NET ASSETS
COST VALUE
456,661.20
1,625.55
736,449.52
54,000.00
(54,101.56)
40.00
1,194, 674.71
2,642.95
10,473.91
109.70
50, 356.69
45, 029.25
108,612.50
1,462,270.44
1,914,159.10
5,757,058.23
160,529.20
14,091.00
9,308,107.97
10,611,395.18
17,831.66
3,441.39
21,273.05
10,590,122.13
10,590,122.13
10,611,395.18
14
IJ►1_1N:/0r %1IL1i:I
456,661.20
1,625.55
736,449.52
54,000.00
(54,101.56)
40.00
1,194,674.71
2,642.95
10,473.91
109.70
50,356.69
45,029.25
108,612.50
1,537,233.51
2,106,707.80
5,523,686.43
176,971.60
24,623.50
9,369,222.84
10,672,510.05
17,831.66
3,441.39
21,273.05
10,651,237.00
10,651,237.00
10,672,510.05
Village of North Palm Beach
Fire and Police Retirement Fund
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
September 30, 2010
Market Value Basis
INCOME
Contributions:
Member
Buy -Back
Village
State
Total Contributions
Earnings from Investments
Interest & Dividends
Net Realized Gain (Loss)
Unrealized Gain (Loss)
Total Earnings and Investment Gains
EXPENSES
Administrative Expenses:
Investment Related*
Other
Total Expenses
Distributions to Members:
Benefit Payments
Lump Sum Retiree Distributions
Termination Payments
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year
*Investment Related expenses include investment advisory,
custodial and performance monitoring fees.
74,510.49
2,961.90
653,371.84
254,590.16
286,521.34
194,229.34
277,498.22
67,930.66
67,706.11
198,670.26
731,777.06
5,719.38
15
985,434.39
758,248.90
135,636.77
936,166.70
671,879.82
9,979,357.18
10,651,237.00
Village of North Palm Beach
Fire and Police Retirement Fund
ACTUARIAL ASSET VALUATION
September 30, 2010
Actuarial Assets for funding purposes are developed by recognizing the total actuarial
investment gain or loss for each Plan Year over a five year period. In the first year, 20% of
the gain or loss is recognized. In the second year 40 %, in the third year 60 %, in the fourth
year 80 %, and in the fifth year 100% of the gain or loss is recognized. The actuarial
investment gain or loss is defined as the actual return on investments minus the actuarial
assumed investment return.
Gains /Losses Not Yet Recognized
Plan Year Amounts Not Yet Recognized by Valuation Year
Ending Gain /Loss 2010 2011 2012 2013 2014
9/30/2006
0
0
0
0
9/30/2007
0
0
0
0
9/30/2008
0
0
0
0
9/30/2009
(839,114)
(503,469)
(335,646)
(167,823)
9/30/2010
(107,293)
(85,834)
(64,376)
(42,917)
Total
(589,303)
(400,021)
(210,740)
Development of Investment Gain /Loss
Market Value of Assets, 9/30/2009 9,979,357
Contributions Less Benefit Payments & Admin Expenses (18,438)
Expected Investment Earnings on Market Value" 797,611
Actual Net Investment Earnings 690,318
2010 Actuarial Investment Gain /(Loss) (107,293)
"Expected Investment Earnings = 0.08 * (9,979,357 +.5 * - 18,438)
Development
of Actuarial Value of Assets
Market Value of Assets, 9/30/2010
10,651,237
(Gains) /Losses Not Yet Recognized
589,303
Actuarial Value of Assets, 9/30/2010
11,240,540
(A) 9/30/2009 Actuarial Assets:
10,650,648
(1) Net Investment Income:
1. Interest and Dividends
266,521
2, Realized Gains (Losses)
194,229
3. Change in Actuarial Value
195,510
4. Investment Expenses
(67,931)
Total
608,330
(B) 9/30/2010 Actuarial Assets: 11,240,540
Actuarial Asset Rate of Return = 21 /(A +B_1); 5.7%
10/01/10 Limited Actuarial Assets: 11,240,540
(Lesser of Actuarial Assets or 120% of Market Value)
0 0
0 a
0 0
0 0
(21,459) 0
(21,459) 0
16
Village of North Palm Beach
Fire and Police Retirement Fund
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
September 30, 2010
Actuarial Asset Basis
INCOME
Contributions:
Member
Buy -Back
Village
State
Total Contributions
Earnings from Investments
Interest & Dividends _
Net Realized Gain (Loss)
Change in Actuarial Value
Total Earnings and Investment Gains
EXPENSES
Administrative Expenses:
Investment Related*
Other
Total Administrative Expenses
Distributions to Members:
Benefit Payments
Lump Sum Retiree Distributions
Termination Payments
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year **
*Investment Related expenses include investment advisory,
custodial and performance monitoring fees.
* *Net Assets may be limited for actuarial consideration
74,510.49
2,961.90
653,371.84
254,590.16
286,521.34
194,229.34
195,510.22
67,930.66
67,706.11
198,670.26
731,777.06
5,719.38
17
985,434.39
676,260.90
135,636.77
936,166.70
589,891.82
10,650,648.18
11,240,540.00
SECTION IV
MEMBER STATISTICS
ELIGIBILTY FOR RETIREMENT
Members are eligible for Normal Retirement based upon the following criteria:
1) Attained Age 55
2) Attained Age 52 with 25 Years of Credited Service
Members are eligible for Early Retirement based upon the following criteria:
1) Attained Age 50
As of the date of this valuation, the following list of Members are eligible for:
Normal Retirement
DIKINSON GARY
KENNEDY WILLIAM
MAKIHENRY
MILDWORM KENNETH
SMITH WILLIAM J. SR
Early Retirement
ARMSTRONGJOHN
MATTINO, SALVATORE
VAN DEUSEN SCOTT
YUNGK JOSEPH
18
19
STATISTICAL DATA
Average Annual Salary $67,610 $67,286 $67,083 $75,435
10/1/2007
10/1/2008
10/1/2009
10/1/2010
Number
46
50
52
52
Average Current Age
39.9
39.4
39.0
39.5
Average Age at Employment
30.9
32.4
32.1
31.6
Average Past Service
9.0
7.0
6.9
7.9
Average Annual Salary $67,610 $67,286 $67,083 $75,435
20
AGE AND SERVICE DISTRIBUTION
PAST SERVICE
AGE
0
1
2
3
4
5 -9
10 -14
15 -19
20 -24
25 -29
30+
Total
15 -19
0
0
0
0
0
0
0
0
0
0
0
0
20 -24
1
3
0
0
0
0
0
0
0
0
0
4
25 -29
0
0
3
0
2
3
0
0
0
0
0
8
30 -34
0
1
1
0
2
4
0
0
0
0
0
8
35-39
0
0
1
0
1
5
2
0
0
0
0
9
40-44
0
0
0
0
1
0
1
1
0
0
0
3
45 -49
0
0
3
0
0
2
3
1
0
2
0
11
50-54
0
0
1
0
0
1
0
1
1
1
0
5
55 -59
0
0
1
0
0
0
0
0
0
0
0
1
60 -64
0
0
0
0
0
2
0
1
0
0
0
3
65+
0
0
0
0
0
0
0
0
0
0
0
0
Total
1
4
10
0
6
17
6
4
1
3
0
52
21
VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation 1011109 52
b.
Terminations
i. Vested (partial or full) with deferred
1
benefits
ii. Non - vested or full lump sum distribution
0
received
Receiving
c.
Deaths
i. Beneficiary receiving benefits
0
Disability
ii. No future benefits payable
0
d.
Disabled
0
e.
Retired
0
f.
Voluntary Withdrawal
0
g.
Continuing participants
51
h.
New entrants
1
i.
Total active life participants in valuation
52
2. Non - Active lives (including beneficiaries receiving benefits)
Service
Retirees,
Vested
Receiving
Receiving
Receiving
Death
Disability
Vested
Benefits
Benefits
Benefits
Deferred
Total
a. Number prior
6
0
1
11
18
valuation
b. In
2
0
0
1
3
c. Out
0
0
0
2
2
d. Number current
8
0
1
10
19
valuation
SECTION V
SUMMARY OF PLAN PROVISIONS
SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 2008 -18)
Eligibility
Credited Service
Salary
Average Final Compensation
Member Contributions
Village and State Contributions
Normal Retirement
Date
Full -time employees who are classified as
Police Officers or Firefighters participate as a
condition of employment.
Total years and fractional parts of years of
employment with the Village as a Police Officer
or Firefighter.
Gross Compensation, excluding bonuses, sick
and vacation pay, but including overtime.
Average Salary for the 5 best years of the 10
years immediately preceding retirement or
termination.
2.0% of Salary.
Remaining amount required in order to pay
current costs and amortize unfunded past
service cost, if any, as provided in Part VII,
Chapter 112, F.S.
Earlier of: 1) age 55, regardless of Credited
Service, or 2) age 52 and 25 years of Credited
Service.
Benefit 2.50% of Average Final Compensation
times
Credited Service, up to 24 years;
Plus
0% of Average Final Compensation
times
Credited Service for each year after 24 years
up to 30 years;
plus
2.0% of Average Final Compensation
times
Credited Service for each year in excess of 30.
Form of Benefit
Ten Year Certain and Life Annuity
(options available).
22
23
Early Retirement
Eligibility
Age 50, regardless of Credited Service.
Benefit Accrued benefit, reduced 3% per year that the
benefit commencement date precedes the
Normal Retirement Date.
Vesting
Schedule
100% after 10 years of Credited Service.
Benefit Amount Member will receive the vested portion of his
(her) accrued benefit payable at the otherwise
Early (reduced) or Normal Retirement Date.
Disability
Eligibility
Service Incurred
Non - Service Incurred
Exclusions
Covered from Date of Employment.
10 years of Credited Service.
Disability resulting from use of drugs, illegal
participation in riots, service in military, etc.
Benefit Benefit accrued to date of disability but not
less than 42% of Average Final Compensation
(25% for Non - Service Incurred).
Duration Payable for life (with 120 payments
guaranteed) or until recovery (as determined
by the Board). Optional forms of payment are
available.
Death Benefits
Pre - Retirement (while employed)
Vested Monthly accrued benefit payable to designated
beneficiary for 10 years at otherwise Early
(reduced) or Normal (unreduced) Retirement
Date.
Non - Vested Refund of accumulated contributions.
Death Benefits (continued)
Pre - Retirement (after employment)
Eligibility
Vested terminated Member who has reached
age 50.
Benefit Benefit payable as if Member retired on the
date of death, selected a 50% Joint and
Survivor annuity, and then passed away, with
50% of the benefit then continuing to the
survivor for life.
Post - Retirement
Cost of Living Increases
Board of Trustees
Benefits payable to beneficiary in accordance
with option selected at retirement.
Up to 3% increase or decrease effective each
October 16t in accordance with the Consumer
Price index, applied to all types of benefits.
Two Members shall be Fire employees, and
two shall be Police employees, all elected by
the Village Fire and Police employees. The
other Member, who will be the Chairman of the
Board, must be a resident of the Village and
shall be selected by the Village Council.
24
SECTION VI
GOVERNMENTAL ACCOUNTING STANDARDS
BOARD DISCLOSURE INFORMATION
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26
DISCLOSURE INFORMATION PER STATEMENT NO. 27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
ANNUAL PENSION COSTS AND RELATED INFORMATION
Contribution rates as of 9130110
Village 17.15%
Plan Members 2.00%
Actuarially Determined Contribution 653,371
Contributions made 653,372
Actuarial valuation date 10/1/2008
Actuarial cost method Aggregate
Amortization method NIA
Remaining amortization period NIA
Asset valuation method 5 Year Smooth (Market)
Actuarial assumptions:
Investment rate of return
8.0%
Projected salary increase*
6.0%
* Includes inflation at
4.0%
Post Retirement COLA
3.0%
THREE YEAR TREND INFORMATION
Annual
Percentage
Net
Year
Pension
of APC
Pension
Ending
Cost (APC)
Contributed
Obligation
9/30/2010
663,024
98.54%
(255,334)
9/30/2009
513,638
116.72%
(264,986)
9/30/2008
723,118
98.99%
(179,119)
27
DISCLOSURE INFORMATION PER STATEMENT NO. 27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
DEVELOPMENT OF NET PENSION OBLIGATION (NPO)
This municipal Defined Benefit Plan has been subject to the minimum funding
standards since the adoption of the "Florida Protection of Public Employee
Retirement Benefits Act" (Part VII of Chapter 112, Florida Statutes) in 1980.
Accordingly, the sponsor has funded the actuarially determined required contributions
for all years from October 1, 1987, through the transition date, October 1, 1997.
Thus, the NPO on October 1, 1997, is 0.
The recent development of the Net Pension Obligation is as follows:
9130108
9130109
9130110
Actuarially Determined
Contribution (A)
715,784
507,357
653,371
Interest on NPO
(14,916)
(14,330)
(21,199)
Adjustment to (A)
22,250
20,611
30,852
Annual Pension Cost
723,118
513,638
663,024
Contributions Made
715,784
599,505
653,372
Increase in NPO
7,334
(85,867)
9,652
NPO Beginning of Year
(186,453)
(179,119)
(264,986)
NPO End of Year
(179,119)
(264,986)
(255,334)