PFPB Actuarial Report 10-01-2008GRS Gabriel Roomer Smith & Company
Consultants & Actuaries
VILLAGE OF NORTH PALM BEACH FIRE AND POLICE RETIREMENT FUND
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2008
ANN[JAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION FOR THE
PLAN YEAR ENDING SEPTEMBER 34, 2414
~~
GRS
June 19, 2009
Board of Trustees of the
Village of North Palm Beach
Fire and Police Retirement Fund
North Palm Beach, Florida
Re: Village of North Palm Beach Fire and Police Retirement Fund
Actuarial Valuation Report as of October 1, 2008
Board Members:
We are pleased to present our October 1, 2008 Actuarial Valuation Report for the Plan. The purpose of the
Report is to set forth required contribution levels, to disclose plan assets and actuarial liabilities, to comment on
funding progress and to provide supporting information regarding the operation of the Plan. This Report is also
designed to comply with requirements of the State.
The valuation was performed on the basis of employee, retiree and financial information supplied by the City.
Although we did not audit this information, it was reviewed for reasonableness and comparability to prior
years.
The benefits valued are outlined at the end of the Repart. Actuarial assumptions and the actuarial cost method
are also described herein. Any changes in benefits, assumptions or methods are described in the first section.
We wil! be pleased to answer any questions pertaining to the valuation and to meet with you to review this
Report.
The undersigned is a member of the American Academy of Actuaries and meets Qualif cation Standards of the
Academy of Actuaries to render the actuarial opinion herein.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
T r
By
Stephen Pahnquist, ASA, FCA
Enrolled Actuary No. 08-1560
By
~~~~~
Duane Howison, FSA
Enrolled Actuary No. 08-61b9
GRS
Statement by Enrolled Actuary
This actuarial valuation and/or cost determination was prepared and completed by me or under my
direct supervision, and 1 acknowledge responsibility for the results. To the best of my knowledge, the
results are complete and accurate. In my opinion, the techniques and assumptions used are reasonable, meet
the requirements and intent of Part VII, Chapter 112, Florida Statutes, and are based on generally accepted
actuarial principles and practices. There is no benefit or expense to be provided by the plan and/or paid
from the plan's assets for which liabilities or current costs have not been established or otherwise taken into
account in the valuation. All known events or trends which may require a material increase in plan costs or
required contribution rates have been taken into account in the valuation.
Signature
L --~9- ,2.c)D
Date
48-1564
Enrollment Number
TABLE OF CONTENTS
Section Title Page
A Discussion of Valuation Results
1. Discussion of Valuation Results 1
2. Chapter Revenue 4
B Valuation Results
1. Participant Data 5
2. Annual Required Contribution 6
3. Actuarial Value of Benefits and Assets 7
4. Calculation of Employer Normal Cost 8
5. Actuarial Gains and Losses 9
6. Recent History of Valuation Results 14
7. Recent History of Contributions l 7
$. Actuarial Assumptions and Cost Method 19
9. Glossary of Terms 21
C Pension Fund Information
I . Summary of Assets 22
2. Pension Fund Income and Disbursements 23
3. Actuarial Value of Assets 24
4. Investment Rate of Return 26
D Financial Accounting Information
1. FASB No. 35 27
2. GASB No. 25 28
3. GASB No. 27 30
E Miscellaneous Information
1. Reconciliation of Membership Data 32
2. Active Participant Distribution 33
3. Inactive Participant Distribution 34
F Summary of Plan Provisions 35
~~
SECTION A
DISCUSSION OF VALUATION RESULTS
GRS
DISCUSSION OF VALUATION RESULTS
Comparison of Reauired Employer Contributions
A comparison of the required employer contribution developed in this year's and last year's actuarial
valuations is as follows:
For FYE 9130110 For FYE 9130109
Based on Based on
10/1!2008 1a/1n.aa~ I~-crease
Valuation Valuation (Decrease)
Required Employer/State Contribution $ 784,$50 $ 72$,729 $ 52,121
As % of Covered Payroll 23 A8 % 22.53 % 0.55
Allowable Credit for State Contribution $ 230,696 $ 138,200 $ 92,496
As % of Covered Payroll 6.82 % 4.27 % 2.55
Required Employer Contribution $ 550,154 $ 590,529 $ (40,375}
As % of Covered Payroll 16.26 % 18.26 % {2.00)
The employer contribution has been adjusted for interest on the basis that employer contributions
are made in equal payments at the end of each quarter.
The required employer contribution has been computed under the assumption that the amount to be
received from the State on behalf of members this year will be equal to the last payment. if this year's
payment from the State falls below the estimated amount, then the employer must raise its contribution by
the difference.
The actual employer and State contributions during the year ending September 30, 2008 were
$577,5$4 and $321,142, respectively. Only $138,200 of the State revenue in 2007 was permitted to be
used as a credit against the City contribution.
GRS
Revisions in Benefits
Ordinance 2008-18 was gassed and effective November 13, 2008, providing the following:
2
- Changed the normal retirement date from age 55 to the earlier of age 55 or age 52 with 25 years of
service.
- Eliminated the one-year waiting period for eligibility.
- Provided the minimum Chapter 1751185 benefit of 2% multiplier for all years of service. The new
m~iltiplier is 2.5% far the first 24 years of service, 0.0% for the service between 24 and 30 years and
2.0% for each year in excess of 30.
- Eliminated the lump sum optional farm of payment.
These provisions are fully funded by the use of the Chapter 1751185 reserve in the amount of
$627,925 and additional Chapter 1751185 revenue in the amount of $92,412.
Revisions in Actuarial Assamptions or Methods
Beginning with this valuation, the Actuarial Value of Assets is determined using a 5-year
smoothing of the Actual compared to the Expected Asset Value {based on Market Value). The method
recognizes 20% of the difference between the Actual and Expected Asset Value, and so on until a fu115-
year period is reached. The method used prior to this year was a 5-year smoothing of the capital
appreciation for the year. This change was necessary to comply with Actuarial Standards of Practice
Number 44.
The change resulted in an increase in the required employer contribution of $2,128. We
recommend a reduction in the assumed rate of investment return and mortality rates.
Actuarial Experience
There was a net actuarial gain of $158,069 far the year which means that actual experience was
more favorable than expected. The gain is due to lower salary increases and mare terminations than
expected. These gains were partially offset by lower investment return than the assumed rate of 8A%.
The net actuarial gain for the year translates into a decrease in annual employer contributions of
0.64% of covered payroll.
Funded Ratio
The funded ratio this year is 88.5% compared to 85.2% last year. The funded ratio is equal to the
actuarial value of assets divided by the actuarial accrued (past service) liability
~~
.Anal sis of Chan a in Em to er Contxibutions
The caanponents of change in the required contribution are as follows:
Contributian rate last year 18.26
Experience gainlloss (0.64)
Change in administrative expense 0.68
Change in benefits (1.83)
Change in asset method 0.06
Change in State revenue (0,27}
Contribution rate this year 16.26
The remainder of this Report includes detailed actuarial valuation results, pension fund 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. Once minimums are met, any subsequent additional Chapter revenue
must be used to provide extra benefits.
The valuation reflects Ordinance 2008-18, providing that the following remaining minimum
required benefits have been met:
• Allow retirement at age 52 with 25 years of service,
• Eliminate one year waiting period before Plan entry, and
• Provide a minimum accrued benefit equal to 2% of AFC multiplied by years of service.
Actuarial Confirmation of the Use of State Chapte r Money
1. Base Amount Previous Plan Year $ 138,200
2. Amount Received for Previous Plan Year 321,142
3. Benefit Improvements Made in Previous Plan Year 0
4. Excess Funds for Previous Plan Year: (2) - {1) - {3) 182,942
5. Accumulated Excess at Beginning of Previous Year 444,983
5. Prior Excess Used in Previous Plan Year 0
7. Accumulated Excess as of Valuation Date, Before Changes
(Avar~able for Benefit Improvements}: (4} + {5} - {6) 627,925
8. Base Amount This Plan Year (2009): (1} + (3) 138,200
9. Base Amount After Ordinance 230,696
The Accumulated Excess shown in line 7 was used to pay for additional benefits under Ordinance
2008-18. The Base Amount in line 9 is the maximum amount the employer may take as a credit against its
required contribution in 2010.
GRS
SECTION B
VALUATION RESULTS
GRS
PARTICIPANT DATA as of OCTOBER 1
2008 After 2008 Before 2007
ACTIVE MEMBERS
Number 50 43 46
Covered Annual Payroll $ 3,253,109 $ 2,922,616 $ 3,110,081
Average Annual Payroll $ 65,(?62 $ 67,968 $ 67,610
Average Age 39.4 39.6 39.9
Average Past Service 7.0 8.2 9.0
Average Age at Hire 32.4 31.5 30.9
RETIREES & BENEFICIARIES & DROP
Number 4 4 3
Annual Benefits $ 81,218 $ 81,218 $ 18,163
Average Annual Benefit $ 20,305 $ 20,305 $ 6,054
Average Age 70.3 70.3 72.9
DISABILITY RETIREES
Number 1 1 1
Annual Benefits $ 38,585 $ 38,585 $ 37,940
Average Annual Benefit $ 38,585 $ 38,585 $ 37,940
Average Age 55.3 55.3 54.3
TERMINATED VESTED MEMBERS
Number 12 12 11
Annual Benefits $ 219,199 $ 219,199 $ 193,799
Average Annual Benefit $ 18,267 $ 18,267 $ 17,618
Average Age 51.4 51.4 50.8
GRS
ANNUAL REQUIRED CONTRIBUTION (ARC)
A. Valuation Date 2048 2008 2008 2007
After Benefat c~ After Benefat Before
Asset Method Changes Changes
Changes
B. ARC to Be Paid During
Fiscal Year Ending 9/30/2010 9/30/2010 9/30/2010 9/30/2009
C. Assumed Date of Employer Contrib. Quarterly Quarterly Quarterly Quarterly
D. Annual Payment to Amortize
Unfunded Actuarial Liability $ - $ - $ - $ -
E. Employer Normal Cost 716,032 714,080 629,336 668,I77
F. ARC if Faid on the Valuation
Date: D+E 716,032 714,080 629,336 668,177
G. ARC Adjusted for Frequency of
Payments 750,788 748,741 659,884 700,610
H. ARC as % of Covered Payroll 23A8% 23.02% 22.58% 22.53%
i. Assumed Rate of Increase in Covered
Payroll to Contribution Year 4.00% 4.00% 4.00% 4.00%
J. Covered Payroll for Contribution Year 3,383,233 3,383,233 3,039,520 3,234,484
K. ARC for Contribution Year: H x J 780,850 778,820 686,324 728,729
L. Estimate of State Revenue in
Contribution Year 230,696 230,696 138,200 138,200
M. Required Employer Contribution (REC)
in Contribution Year 550,154 548,124 548,124 590,529
N. REC as % of Covered Payroll in
Contribution Year: M - J 16.26% 16.20% 18.03% 18.26%
GRS
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date 2008 2008 2008 200?
After Benefit After Benefit Before
& Asset Changes Changes
Method
Changes
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $9,431,646 $9,431,646 $8,285,418 $9,616,784
b. Vesting Benefits 701,b81 70I,681 538,941 519,154
c. Disability Benefits 925,570 925,570 984,359 1,054,966
d. Preretirernent Death Benefits 158,039 158,039 180,385 195,193
e. Return of Member Contributions 34,783 34,783 29,925 29,854
f. Total 11,251,719 11,251,719 10,019,028 11,415,951
2. Inactive Members
a. Service Retirees & Beneficiaries 2,492,730 2,492,730 2,492,730 1,302,543
b. Disability Retirees 571,977 571,977 571,977 571,818
c. Terminated Vested Members 2,085,718 2.085.718 2,085,718 _1,739,314
d. Total 5,150,425 5,150,425 5,150,425 3,613,675
3. Total for All Members 16,402,144 16,402,144 15,169,453 15,029,626
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25 11,719,336 11,719,336 11,200,982 10,836,562
D. Actuarial Value of Accumulated Plan
Benefits per FASB No. 35 10,093,093 10,093,093 9,581,672 9,131,919
E. Plan Assets
i. Market Value 10,045,837 10,(145,837 9,417,912 10,404,511
2. Actuarial Value 10,376,733 10,394,233 9,766,308 9,228,537
F. Actuarial Present Value of Projected
Covered Payroll 27,889,878 27,889,878 25,912,978 27,027,461
G. Actuarial Present Value of Projected
Member Contributions 557,798 557,798 518,260 540,549
~~
CALCULATION OF EMPLOYER NORMAL COST
A. Valuation Date 2008 2008 2008 2007
After Benefat ~Ifter Benefit Before
& Asset Changes Changes
Method
Changes
B. Actuarial Present Value of Projected
Benefits $16,402,144 $ i 6,402,144 $15,169,453 $15,029,626
C. Actuarial Value of Assets 10,376,733 10,394,233 9,766,308 9,228,537
D. Unfunded Actuarial Accrued Liability 0 0 0 0
E. Actuarial Present Value of Projected
Member Contributions 557,798 557,798 518,260 540,549
F. Actuarial Present Value of Projected
Employer Normal Costs: B-C-D-E 5,467,613 5,450,113 4,884,885 5,260,540
G. Actuarial Present Value of Projected
Covered Payroll 27,889,878 27,884,878 25,912,978 27,027,461
H. Employer Normal Cost Rate: FIG 14.60% 19.54% 18.85% 19.46%
I. Covered Annual Payroll 3,253,109 3,253,109 2,922,616 3,110,081
J. Employer Normal Cost: H x I 637,609 635,657 550,913 605,222
K. Assumed Amount of Administrative
Expenses 78,423 78,423 78,423 62,955
L. Total Employer Normal Gost: J+K 716,032 714,080 629,336 668,177
M. Employer Normal Cost as % of
Covered Payroll 22.01% 2195% 21.53% 21.48%
GRS
ACTUARIAL GAINS AND LOSSES
r~
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 has been computed as follows:
A. Empbyer Normal Cost as a Percent of Covered Pay
1. Last Valuation
2. Current Valuation
3. Difference: 1 - 2
B. Actuarial Present Value of Projected Covered Pay
C. Net Actuarial Gain (Loss): A3 x B
D. Gam (Loss) Due to Investments
E. Gain (Loss) from Other Sources
19.46
18.85
0.61
$ 25,912,978
158,064
(376,717)
534,786
Net actuarial gains in previous years have been as follows:
Year Ended Change in Employer
Normal Cost Rate
Gain Loss
9/30/89 1.53 % $ 220,709
9/30/90 {0.27} (40,469)
9/30/91 0.96 156,905
9/30/92 {0.48) (91,506)
9/30/93 1.88 297,196
9/30194 2.28 357,766
9130195 1.1 I 179,910
9130196 (1.79} {236,969}
4/30/97 3.27 44{1,982
4/30/98 (2.87} {417,330)
9/30/99 4.60 584,057
9/30/00 1.09 155,044
9130101 (2.57} (338,945)
9130102 {7.70) (1,284,021)
9130103 {1.51) (297,859)
9130104 {3.70) (785,221)
9130105 3.56 703,235
9130/06 {3.13) (734,276)
9130/07 2.56 691,9()3
9!30108 0, 61 158,069
~~
~a
$1
$0
($1}
~$2) i. -
9~~'~q~gnq~q~q~q 9~~~9~~~q~q~q~q~q~q~q~q~q~ggq~~~q~~~q~a~q`~~'q~~~q~~~q~~6g1~~~~~~
Plan Year End
~ Gain or Loss T Cumulative
$2
$1
$0
($i}
($2)
Change in Employer Normal Cost Rate
0
$2
Actuarial Gain (+) or Loss (-} ($Mill)
12%
8%
4%
0%
-4%
-8%
-i 2%
12 /o
g%
4%
0%
-4%
-8%
-12%
q~~q q~q~ 9~q, 9~q~q~q~ q~q~ q~q~ q~q~ 9~q~ 9~q~ q~qq q~~~ q~~, 9~~~9~~~ ~~~~ q~~~ q~~~ 9~~~ q~~~
Plan Year End
~ NormalCost Rate ~ Cumulative
GRS
11
The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan so it is
important that they are in line with the actual experience. The following table shows the actual fund earnings and
salary increase rates compared to the assumed rates for the last few years:
Year Endii
9/30/1985
9/30/1986
9/30/1987
9/30/1988
9/34/1989
9/30/1990
9/30/1991
9/30/1992
9/30/1993
9/30/1994
9/30/1995
9/30/1996
9/3a~1997
9/30/1998
9/30/1999
9/30/2000
9/30/2001
9/30/2002
9/30/2003
9/30/2004
Investment Return
Actual Assumed
17.8 % 7.0
24.9 7.0
13.3 7.0
2.3 7.0
20.1 7.a
(0.5) 7.0
23.6 7.0
12.2 7.0
9.4 7.0
7.2 7.0
10.6 7.0
8.3 8.0
16.1 8.0
10.7 8.0
12.6 8.0
11.6 8.0
7.4 8.0
1.8 8.0
3.9 8.0
2.8 8.0
Salary Increases
Actual Assumed
1.4 % 6.0
13.9 6.0
109 6.0
4.3 6.0
8.7 6.a
5.3 6.0
8.9 6.0
9.0 6.0
0.7 6.0
1.2 6.0
9/30/2005 3.3 8.0
9/30/2006 5.0 8.0
9/30/2007 9.1 8.0
9/30/2008 4.3 8.0
Averages 9.7 % --- 6.5
The actual investment return rates shown above are based on the actuarial value of assets. The actual salary increase
rates shown above are the increases received by those active members who were included in the actuarial valuations
both at the beginning and the end of each year.
6.4 6.0
10.2 6.0
(5.4) 6.0
18.6 6.0
(5.5} 6.0
9.2 6.0
8.7 6.0
15.5 6.0
7.1 6.0
14.0 6.0
(7.1) 6.0
11.2 6.0
9.8 6.0
4.8 6.0
GRS
12
History of Inves~nent Return
Based on Actuarial Value of Assets
3 V%
25%
20%
15°/a
10%
5%
0%
-5%
-10%
\q'~' \~~ \~^ 1`b~' 1q'g \°~O \ef~ \g'},1°f^s \~4~ \~h \ol~O \~i^ \g~ \eiq \Od \~~ \O~' \p~i \pD~ \ah \~~ \a^ \~~
g ~ q ~ ~ ~ ~ ~ ~ ~ q ~ q ~ ~ g 9 g ~ ~ ~ ~ ~ ~
Plan Year End
t Actual -t Assumed
30%
25%
20%
15%
10%
S%
0%
-5°/a
-10%
History of Salary Increases
20%
15%
10%
5%
0%
-5%
20%
15%
10%
5°/a
0%
-5%
-10%
-10%
~ q q ~ ~ q ~ ~ ~ ~ ~ q g q g ~ ~ q A ~ ~ a ~ ~
Plan Year End Compared to Previous Year
f Actual t Assumed
GRS
13
Actuai (A) Compared to Expec#ed (E} Decrements
Among Active Employees
Number
Added Retirement
During Service Terminations Active
Year Year & D ROP Disability Death Vested Other To tals End of
Ended A E A E A E A E A A A E Year
9/30/2002 6 2 4 1 4 4 4 4 1 1 2 1 31
9/30/2003 8 2 0 1 4 0 0 0 1 1 2 1 37
9/30/2004 4 3 0 1 4 0 0 0 4 3 3 1 38
9130120(}5 8 6 0 3 0 0 0 0 1 5 6 1 40
9/30/2006 9 5 2 3 0 0 0 0 0 3 3 1 44
9/30/2047 7 S 1 3 4 4 0 0 0 4 4 2 46
9/30/2048 11 7 2 3 0 o a 0 1 4 5 2 s0
9/30/2049 5 4 0 2
7 Yr Totals* 53 23 S 12 0 4 0 4 4 21 20 7
*Totals are through current plan year only.
~~
Z4
RFlCCFNT HLSTORY OF VALUATION RESULTS
Covered Actuarial FSnpioyer
Val'n Members Annual Value of Normal Cost
Date Active InactirE Pa oll Assets UFAAL Amount % ofPa
10/1188 31 6 $ 906,217 $ 1,094,961 $ 0 $ 112,306 12.4
10/1/89 31 6 969,198 1,413,195 0 105,967 10.9
1011190 31 9 * 1,005,750 1,503,065 0 i 12,554 11.2
10/1191 3i 9 * 1,074,925 1,$18,821 0 114,587 10.7
1011192 35 9 * 1,272,588 1,932,821 0 134,305 10.6
1011193 34 $ * 1,244,783 2,250,243 0 125,213 10.1
10/1/94 29 8 * 1,122,868 2,532,566 0 121,796 10.9
1011/95 28 8 * 1,180,433 2,932,454 0 125,518 10.6
10/1/96 31 9 * 1,417,072 3,316,017 0 159,996 11.3
1011/97 33 9 * 1,385,328 4,039,956 0 113,150 8.2
10/1/98 31 10 * 1,552,984 4,650,015 0 173,847 11.2
10/1199 29 11 * 1,355,684 4,839,840 0 92,638 6.8
10/1/00 30 13 * 1,493,357 5,285,938 0 81,891 5.5
10/1/01 27 16 * 1,517,524 5,718,291 0 124,273 8.2
10/1/02 31 17 * 1,921,532 6,047,007 0 352,003 18.3
10/1/03 37 18 * 2,312,228 6,635,342 0 467,436 20.2
1011/04 38 15 * 2,627,239 6,771,959 0 632,978 24.1
1011105 40 16 * 2,405,634 7,600,134 0 494,929 20.6
1011106 44 17 * 2,798,919 8,312,363 0 656,324 23.5
10/1107 46 15 * 3,110,0$1 9,228,537 0 668,177 21.5
10/1/08 50 17 * 3,253,109 10,376,733 0 716,032 22.0
*This number includes cost-of-living benefits being paid by the pension fund for retirees
whose annuities were purchased during the 1970's.
GRS
15
Recent History of Number of Members
go
~o
60
50
40
30
20
10
0
01~~0~~°~0,000\0~~ootio`~^~o,~a~ogSQ\gbo\~*~oq~o,~go~oooo~o\dti `o^~q`o~q\oyo\obo`o~o`o~
ti ti ti ti ti~ ti ti ti ti '~ ti ti '~ ~ ti 1 ti ti ti ti
Actuarial Valuation Date
^ Active Members ^ Inactive Members
Recent History of Covered Annual Payroll
53.5
53.0
52.5
sz.a
0
5+.5
s+.o
So.S
So.o
~~~ ~~ o,P,o ~ ~o~ ~~~~~~h o~°~01~ ~~e o~~.~p~~'~ O\p'LO~p ~~~o`o~ o~~ae ~~~
Actuarial Valuation Date
GRS
16
Recent History of Employer Normal Cost ($000)
$800
$700
$600
$500
$400
$30D
$200
$100
O\~~ O\~~ O\q0
\~~
\~~
\q~ \~~
\~~ \~~
\~^ \q~
\g~ \00 \O~
\O~
\O~ \O~
\O~ \O~
\O^
\O~
ti 'ti O
O
O
1 1 ti ti O
O
ti ~ ' O
O O
O O O
O
O p
O p
O
p
'
~ 1 ti ti ti ti ti ti ti ti ti 1
~
28%
26%
24%
22%
20%
1$%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Actuarial Valuation Date
~EmployerNC Amount ANC as% ofPayroll
GRS
17
R17CIIVT HLSTORY OF REQUIRID AND ACTUAL CONTRIBUTIONS
Required Contributions
Applies l~npioyer & State F~timated State Net ISnployer Actual Contributions
Val'n to Fiscal % of % of % of
Date Year Fhd Amount P Amount Pa Amount Pa Fin o er State Total
10/1/88 9130189 $117,090 12.92 % $44,728 4.94 % $72,362 7.99 °i° $64,223 $52,866 $117,089
1(1/1/89 9130190 110,481 11,40 52,866 5.45 57,615 5.94 62,349 49,647 111,996
111/1/90 9130191 117,352 11.67 49,647 4.94 67,705 6.73 68,000 54,960 122,96[}
10/1/91 9130192 119,472 11.11 54,960 5.11 64,512 6.00 70,000 51,832 121,832
1011192 9130193 140,031 11.00 51,832 4.07 88,199 6.93 91,109 49,897 141,006
1011193 9130194 130,551 1D.49 49,897 4.01 80,654 6.48 77,009 54,214 131,214
1011/94 9130195 126,988 11.31 54,214 4.83 72,774 6.48 73,000 58,926 131,925
1011195 9/30/96 131,611 11.15 58,926 4.99 72,685 6.16 78,000 55,501 133,501
10/1/96 9/30/97 167,763 11.84 55,501 3.92 112,262 7.92 93,000 76,514 169,514
10/1/97 9/30198 118,643 8.56 74,935 5.40 43,708 3.16 56,672 92,463 149,135
1011/98 9/30199 182,286 11.74 84,883 5.47 97,403 6.27 110,966 79,215 190,181
10/1199 9/30/0D 97,135 7.16 73,907 5.45 23,228 1.71 53,067 73,123 126,190
10/1100 9/3Q/01 85,866 5.75 78,246 5.24 7,620 0.51 25,607 77,227 102,834
1011101 9130102 130,305 8.59 77,227 5.09 53,078 3.50 57,825 88,452 146,277
10/1/02 9130/03 369,089 14.21 134,189 6.98 234,900 12,23 235,339 134,303 369,642
1011102 9/30/04 383,891 19.21 134,184 6.71 249,702 12.50 250,000 138,200 388,200
]011103 9/30/OS 509,800 21.20 134,303 5.58 375,497 15.62 471,864 138,200 610,064
10V1/04 9130106 690,186 25.26 138,200 5.06 551,986 20.20 551,986 138,200 690,186
1011/OS 9130107 539,651 21.57 138,200 5.52 4{11,451 16.05 401,451 138,200 539,651
1011106 9/30/08 715,784 24.59 138,200 4.75 577,584 19.84 577,584 13$,200 715,784
10/1/07 9130109 728,729 22.53 138,200 4.27 590,529 18.26 --- --- --
10/1/08 9/30/1D 780,850 23.08 230,696 6.82 550,154 16.26 --- -- ---
GRS
18
$800
$~oa
$600
$500
$400
$300
$200
$100
$0
Recent History of Required and Actual Contributions ($400}
~~4 ~,oQ~`~ q1~ q~g ~~9 go5cf~~ ~1~ ~,~ q1~ q~p0~,~ ~,~ q\~ q,~ ~,0 ~~4 ~1q~ 1~ ~`~ q,,~0
Fiscal Year End
^RequiredContrihution ^ActualContrihution
19
ACTUARIAL ASSUMPTIONS AND COST METHODS
A. Cost Methods
1. Funding
2. Accumulated Benefit Obligation
B. Investment Earnings
(Including inflation)
C. Salary Increases
(Including inflation}
D. Inflation
E. Retirement Age
F. Form of Payment
G. Turnover Rates
H. Mortality Rates
Aggregate Actuarial Cost Method.
Accrued Benefit Method
8% per year, compounded annually; net rate
after investment related expenses.
6% per year up to the assumed retirement age.
4% per year.
See Table below for retirement rates.
It is assumed retiring participants will choose a
benefit in the form of an annuity that includes a 3%
COLA.
See Table below.
1983 Group Annuity Mortality Table for males and
females with 5 year set forward for disabled
participants.
I. Disability
1. Rates
2. Percent Service Connected
J. Asset Value
K. Administrative Expenses
L. Increase in Covered Payroll
M. Pos# Retirement Benefit Increase
N. Changes Since Last Valuation
See Table below.
NA
Difference between actual and expected return
recognized over five years. Last year, Market Value
less unrecognized capital appreciation, where capital
appreciation is recognized at the rate of 20% per
year, was used.
Expenses paid out of the fund other than investment
related expenses are assumed to be equal to the
average of actual expenses over the previous two
years.
NA
3% per year.
See Asset Value.
GRS
20
Annual Rate of
A e Turnover Disability
25 8.6% 0.15%
30 7.S 0.18
35 S.7 0.23
40 3.9 0.30
45 2.4 0.51
50 1.2 1.00
55 --- ---
Annual Rate of Retirement
For each year eligible for
early retirement 5%
For year when normal
retirement date is attained
60
For each of four years after
normal retirement date
For fifth year after normal 40
retirement
100
~~
21
GLOSSARY OF TERMS
Actuarial Present Value is the value of an amount or series of amounts payable at various times,
determined as of the valuation date by the application of the set of actuarial assumptions.
Actuarial Assumutions are assumptions as to the occurrence of future events affecting pension costs.
The previous page outlines the Actuarial Assumptions utilized in this valuation.
Actuarial Cost Method is a procedure for determining the Actuarial Present Value of pension plan
benefits and for developing an actuarially equivalent allocation of such value to time periods, usually in the
form of a Normal Cost and Actuarial Accrued Liability.
A~Qresate Actuarial Cast Method is a method under which the excess of the Actuarial Present Value of
Projected Benefits of the group included in the valuation, over the sum of the Actuarial Value of Assets
and the Actuarial Present Value of Future Member Contributions (if any) is allocated as a level percentage
of earnings of the group between the valuation date and the assumed retirement age. This allocation is
performed for the group as a whole, not as a sum of individual allocations. The portion of this Actuarial
Present Value allocated to a specific year is called the Emaloyer Normal Cost. Under this method,
actuarial gains (losses) reduce {increase} future Normal Costs.
~~
SECTION C
PENSION FUND INFORMATION
~~
22
SUMMARY OF ASSETS
9/30/2008 9/30/2007
Cash and Securities -Market Value
Cash $ 229,163 $ 191,916
Money Market Funds 922,463 601,746
Treasury and Agency Bands & Notes 1,857,760 2,287,479
Corporate Bonds 1,245,758 864,456
Common Stocks 5,509,154 6,599,258
Pooled Equity Funds - -
Pooled Bond Funds - -
Other Securities - -
Total 9,764,298 10,544,855
Receivables and Accruals
State Contribution 321,142 325,962
Member Contribution - -
Employer Contribution - -
Interest and Dividends 57,120 50,154
Pending Trades 19,363 -
Other 9,430 -
Total 407,OS5 376,1 lb
Payables
Reserve for Excess State Funds* - 444,983
Employer Pre-paid Contribution 114,209 62,827
Refunds - -
Expenses - -
Other Accounts Payable 11,307 8,650
Total 125,51 b 516,460
Net Assets -Market Value 10,045,837 10,404,511
*Reserve of $627,925 was used for benefit improvements.
GRS
23
PENSION FUND INCOME AND DISBURSEMENTS
Year Ending Year Ending
9r~onoos gr~onoa7
Market Value at Beginning o#'Period $ 10,849,494 $ 9,450,468
Income
Member Contributions 61,807 62,952
State Contrbutions 321,142 325,962
Employer Carrtributians 577,584 40],451
Other Contributions 0 0
Interest and Dividends 349,646 296,061
Realized and Unrealized Gains {Losses) __ X1,388,397) 846,979
Total Investment Income (1,038,751) 1,143,040
Total Income (78,218) 1,933,405
Dis bu~se me nts
Monthly Benefit Payments 56,974 385,105
Lump Sum Distributions 526,007 0
Refund of Contnbutions 11,6$2 13,360
Investment Related Expenses 59,1$3 50,662
Other Administrative Expenses 71,593 85,252
Insurance Prenrniums 0 0
Other Expenses 0 0
Total Disbursements 725,439 534,379
Net Increase During Period (803,657} 1,399,026
Market Value at End of Pe riod 10,045,837 10,849,494
Less: State Contribution Reserve* 0 444,983
Final Market Value 10,045,837 10,404,511
`Reserve of $627,925 was used for benefit improvements.
~~
24
ACTUARIAL VALUE OF ASSETS -NEW METHOD
Year Endin Se tember 30
2008 2409 2010 2011 2012
A. Beginning of Year Assets
L Market Value* $10,849,494 $10,045,837
2. Actuarial Value* 9,673,520 10,376,733
B. Net of Contributions
Less Disbursements 294,277
C. Actual Net Investment
Earnings (1,097,934)
D. Expected Investment
Earnings 785,653
E. Excess of Actual Over
Expected Investment
Earnings: C - D (1,883,587)
F. Recognition of Excess
Eaznings Over 5 Years
1, From This Year (376,717) 0 0 0 0
2. From One Year Ago 0 (376,717) 0 0 0
3. From Two Yeazs Ago 0 0 (376,717) 0 0
4. From Three Years Ago 0 0 0 (376,717) 0
5. From Four Yeazs Ago 0 0 4 0 (376,717)
b. Total (376,717} (376,717) {376,717} (376,717) (376,717)
G. End of Yeaz Assets
1. Market Value 10,045,837
2. Actuarial Value:
A2 + B + D + F6 10,376,733
3. Adjusted Actuarial Value
Within 80% to 120%
Of Market Value 10,376,733
4. Less: State Contribution 0
Reserve**
5. Final Actuarial Value 10,376,733
*Before subtracting State Contribution Reserve.
**Reserve of $627,925 was used for benefit improvements.
GRS
25
ACTUARIAL VALUE OF ASSETS -OLD METHOD
The Actuarial Value of Assets is equal to the market value less capital appreciation which has not yet
been recognized. Capital appreciation, the total of realized and unrealized gains, is being recognized at
the rate of 20% per year. Recognized and unrecognized capital appreciation for this year's valuation is
developed as follows:
Year
Ending
9130 {1)
Capital
Appreciation Amount of [1)
Recognized
Each Year Amount of (1)
Recognized by
Valuation Date Amount of {1)
Unrecognized ay
Valuation Date
2004 $ 386,491 $ 77,298 $ 386,491 $ 0
2005 398,908 79,782 319,126 79,782
2006 435,882 87,176 261,529 174,353
2007 846,979 169,396 338,792 508,187
2008 (1,388,397) (277,679) (277,679) {1,110,718)
679,863 135,973 1,028,259 (348,396)
Actuarial Value of Assets = (Market Value) - (Unrecognized Capital Appreciation)
_ $ 14,045,837 - $ (348,396)
_ $ 10,394,233
Range from 80% to 120% of Market Value = $ 8,036,670 to $12,055,004
Preliminary Actuarial Value of Assets = $10,394,233
Reserve for Excess State Funds = 0
Final Actuarial Value of Assets = $10,394,233
Investment earnings recognized in the Actuarial Value of Assets are computed as follows:
$ 10,394,233
- 9,673,520
- 960,533
+ 725,439
485,619
- 59,183
426,436
Actuarial Value this year*
Actuarial Value last year*
Contributions during year
Expenses during year
Gross Earnings recognized
Investment related expenses
Net Earnings recognized
* Before reduction for State Contribution Reserve
26
INVESTMENT RATE OF RETURN
The investment rate of return has been calculated as follows:
Basis 1 - Interest, dividends, realized gains {losses) and unrealized appreciation
(depreciation) divided by the weighted average of the market value of the fund
during the year. This figure is normally called the Total Rate of Return.
Basis 2 - Investment earnings recognized in the Actuarial Value of Assets divided by the
weighted average of the Actuarial Value of Assets during the year.
Investment Rate of Return
Year Ended Basis 1 * Basis 2
9130185 17.8 % 17.8
9/30/86 24.9 24.9
9130187 13.3 13.3
9/30/88 2.3 2.3
9130189 20.1 20.1
9130190 (O.S) {0.5}
9/30191 23.6 23.6
9130192 12.2 12.2
9130193 9.7 9.4
9130194 2.1 7.2
9/30195 17.9 10.6
9/30/95 8.6 8.3
9130197 26.4 16.1
9130198 6.0 10.7
9130199 12.1 12.5
9130/00 8.7 11.6
9130/01 {5.6) 7.4
9/30/02 (5.7) 1.8
9130103 16.1 3.9
9/30/04 8.4 2.8
9/30/0S 8.0 3.3
9/30/06 5.4 S.0
9130107 11.4 9.1
9130108 { 10.0) 4.3
Average Compounded Rate of Return
for Number of Years Shown 9.3 % 9.7
Average Compounded Rate of Return
for Last 5 Years 4.5 % 4.9
*Note: Figures prior to 1988 were taken from the previous actuary's report for t 987.
~~
SECTION D
FINANCIAL ACCOUNTING INFORMATION
~~
27
FASB N0.3S INFORMATION
A. Valuation Date October 1, 2008 October 1, 2007
B. Actuarial Present Value of Accumulated
Plan Benefits
1. Vested Benefits
a. Members Currently Receiv~g Payments $ 3,064,707 $ 1,874,361
b. Terminated Vested Members 2,085,718 1,739,314
c. Other Members 4,736,824 4,756,087
d. Total 9,887,249 8,369,762
2. Nan-Vested Benefits 205,844 762,157
3. Total Actuarial Present Value of Accumulated
Plan Benefits: ld + 2 10,093,093 9,131,919
4. Accumulated Contributions of Active Members 283,429 302,658
C. Changes m the Actuarial Present Value of
Accumulated Plan Benefits
1. Total Value at Beginning of Year 9,131,419 $,665,68'7
2. Increase (Decrease) During the Period
Attrbutabk to:
a. Plan Amendment 511,421 0
b. Change in Actuarial Assumptions 0 0
c. Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period 1,044,416 864,b97
d. Benefits Paid (594,663) (398,465)
e. Net Increase 961,174 466,232
3. Total Value at End of Period 10,093,093 9,131,919
D. Market Value of Assets 10,045,837 10,404,511
E. Actuarial Assumptions -See page entitled
Actuarial Assumptions and Methods
28
SCHEDULE OF FUNDING PROGRESS
(GASB Statement No. ZS)
Actuarial
Valuation
Date
Actuarial
Value of
Assets Actuarial
Accrued
Liability
(AAL) -
Entry Age
Unfunded
AAL
{UAAL)
unded
Ratio
overed
Payroll
UAAL As
% of
Covered
Payroll
10/1/1991 $1,818,821 $1,510,461 {$308,360) 120.4 % $1,074,925 (28.7)
10/1/1992 1,932,821 1,816,156 {116,665) 106.4 1,272,588 (9.2)
10/1/1993 2,250,243 2,415,285 {234,958} 111.7 1,244,783 (18.9)
10/1/1994 2,532,566 2,313,914 {218,652} 109.4 1,122,866 (19.5)
10/1/1995 2,932,454 2,974,020 41,566 98.6 1,180,433 3.5
10/1/1996 3,316,017 3,408,675 92,658 97.3 1,417,072 6.5
10/1/1997 4,039,956 3,64b,297 {393,659} 110.8 1,385,328 (28.4)
10/1/1998 4,650,015 4,640,502 (9,513} 100.2 1,552,984 (0.6)
10/1/1999 4,839,840 4,249,937 {589,903) 113.9 1,355,684 (43.5)
10/1/2IX10 5,285,938 4,496,853 {789,085) 117.5 1,493,357 {52.8)
10/1/2001 5,718,291 5,304,774 (413,517} 107.8 2,517,524 (27.2)
10/1/2002 5,963,256 6,565,654 602,398 90.8 1,921,532 31.3
10/1/2003 6,635,342 7,616,168 980,826 87.1 2,312,228 42.4
10/1/2004 6,771,959 8,546,754 1,774,795 79.2 2,627,239 67.6
10/1/2005 7,600,134 8,692,747 1,092,613 87.4 2,405,634 45.4
10/1/2006 8,312,363 10,294,848 1,982,485 80.7 2,798,919 70.8
10/1/2007 9,228,537 10,836,562 1,608,025 85.2 3,110,081 51.7
10/1/2008 10,376,733 12,719,336 1,342,603 88.5 3,253,109 41.3
29
SCHEDULE OF CONTRIBUTIONS FROM EMPLOYER
AND THE STATE OF FLORIDA
(GASB Statement No. 25)
Year Ended
September3U Annual Required
Contribution Actual
Contribution Percentage
Contributed
1991 117,352 122,960 104.8
1992 119,472 121,832 102.0
1993 140,03 i 141,006 100.7
1994 130,551 131,214 100.5
1995 126,988 131,926 103.9
1996 131,611 133,501 101.4
1997 167,763 169,514 101.0
1998 118,b43 149,135 125.7
1999 182,286 190,181 104.3
2000 97,135 126,190 129.9
2001 85,866 102,834 119.8
2002 130,305 146,277 112.3
2003 369,089 369,642 100.1
2004 383,891 388,200 101.1
2005 509,800 610,064 119.7
2006 690,186 690,186 100.0
2007 539,651 539,651 100.0
2008 715,784 715,784 100.0
GRS
30
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASH Statement No. 27)
Empbyer FYE September 30
Annual Required Contrbution (ARC)*
Interest on Net Pension Obligation (NPO)
Adjustment to ARC
Annual Pension Cost (APC}
Contributions made
Increase (decrease) in NPO
NPO at beginning of year
NPO at end of year
* Inch~des expected State contribution
** To be determined
2009
$728,729
{14,330)
(20,612)
735,011
**
**
(179,119}
**
2008
$715,784
(14,916)
(22,2sa>
723,118
715,784
7,334
(186,453)
(179,119)
2007
$539,651
(15,567)
(23,701)
547,785
539,651
8,134
(194,587)
(186,453)
THREE YEAR TREND INFORMATION
Fiscal Annual Pension Actual Percentage of Net Pension
Year Endin Cast APC Contribution APC Cor~trbuted Ob ' tion
913012.006 $699,092 $690,18fi 98.7 % $ {194,587)
9/30/2007 547,785 539,651 98.5 {186,453)
9/30/2008 723,118 715,784 99.0 { 179,119}
GRS
31
REQUIRED SUPPLEMENTARY INFORMATION
GASB Statement No. 25 and No. 27
The information presented in the required supplementary schedules was determined as part of
the actuarial valuations at the dates indicated. Additional information as of the Iatest actuarial
valuation:
Valuation date 10/U2008
Contribution Rates:
Employer 23.08%
Plan Members 2.00%
Actuarial Cast Method Aggregate
Amortization Method NA
Remaining amortization period NA
Asset valuation method S-year smoothed market
Actuarial assumptions:
Investment rate of return 8.0%
Projected salary increases 6.0%
Includes inflation and other general increases at 4.0%
Cast of Living adjustments per year 3.0%
GRS
SECTION E
MISCELLANEOUS INFORMATION
GRS
32
RECONCILIATION OF MEMBERSHIP DATA
10/1/2007 10/1/2006
-10/102008 -101102007
A. Active Members
1. Number Included in Last Valuation 46 44
2. New Members Included in Current Valuation 4 7
3. Newly Eligible under Ord. 2008-18 7 n/a
3. Non Vested Employment Terminations (3) {4)
4. Vested Employment Terminations (1) 0
5. Service Retirements (2) {1)
6. Disability Retirements 0 0
7. Deaths 0 0
8. Data Correction (1) 0
9. Number Included in This Valuation 50 46
B. Terminated Vested Members
1. Number Included in Last Valuation 11 12
2. Additions from Active Members 1 0
3. Lump Sum Payments/Refund of Contributions 0 0
4. Payments Commenced 0 0
5. Deaths 0 0
b. Other--Lump Sum Distribution 0 (1)
7. Number Included in This Valuation 12 11
C. Service Retirees, Disability Retirees and BeneSciaries
1. Number Included in Last Valuation* 4 5
2. Additions from Active Members 2 1
3. Additions from Terminated Vested Members 0 0
4. Deaths Resulting in No Further Payments 0 0
5. Deaths Resuhing in New Survivor Benefits 0 0
6. End of Certain Period - No Further Payments 0 0
7. Other -- Lump Sum Distributions - { 1) {2)
8. Number Included in This Valuation 5 4
*This number includes cost-of-living benefits being paid by the pension fund for
retirees whose annuities were purchased during the 1970's.
~~
33
ACTIVE PARTICIPANT D~TRIB[JITON AS OF OCTOBER 1, 2008
Age Years of Service
Group 0-4 5-9 10-14 15-19 20-24 25-29 30 & Up Totals
20-24 2 2
Total Pay 89,902 89,902
Avg Pay 44,951 44,951
25-29 $ $
Total Pay 450,630 450,630
Avg Pay 56,329 56,329
30-34 6 1 7
Total Pay 348,237 48,027 396,264
Avg Pay 58,040 48,027 56,609
35-39 4 3 3 10
Total Pay 204,628 200,071 229,933 634,632
Avg Pay 51,157 66,690 76,644 63,463
40-44 4 2 6
Total Pay 196,762 142,652 339,414
Avg Pay 49,191 71,326 56,569
459 1 3 1 2 7
Total Pay 59,219 2I3,902 74,215 163,053 510,389
Avg Pay 59,219 71,301 74,215 81,527 72,913
50-54 1 1 1 2 5
Total Pay 47,577 63,090 67,199 190,954 368,820
Avg Pay 47,577 63,090 67,199 95,477 73,764
55-59 1 1 1 3
Total Pay 42,344 66,918 109,952 219,214
Avg Pay 42,344 66,918 109,952 73,071
60-64 1 1 2
Total Pay 62,137 72,327 134,464
Avg Pay 62,137 72,327 67,232
65-99
Total Pay
Avg Pay
Total No. 27
Total Pay 1,439,299
Avg Pay 53,307
12 5 1 4 1 SO
796,797 371,347 72,327 354,007 109,952 3,143,729
66,400 74,269 72,327 88,502 109,952 62,875
GRS
34
SCHEDULE OF NON-ACTIVE PARTICIPANTS DATA
AS OF OCTOBER 1, 2008
Te rrninated Retirees &
Vested Disabled Beneficiaries
Annual Annual Annual
Age No. Benefits No. Benefits No. Benefits
Under 45 2 22,391 0 0 0 0
45-49 4 100,000 0 0 0 0
50-54 3 72,949 0 0 0 0
55-59 3 23,859 l 38,585 1 62,452
60-64 0 0 0 0 0 0
6s-69 o a o 0 0 0
70-74 a a o 0 2 13,sss
7s-79 a a o 0 1 s,21 ~
so-s4 a o 0 0 0 0
8s-89 a o 0 0 0 0
90 & Up 0 0 0 0 0 0
Total 12 219,199 1 38,585 4 81,218
Avg Age 56 53 54
Liabil~y 2,085,718 571,477 948,$68
*Not including lump sum benefits paid in annual installments.
GRS
SECTION F
SUMMARY OF PLAN PROVISIONS
~~
35
SUMMARY OF PLAN PROVISIONS
Updated through Ordinance 2005-18
A. Ordinances
Plan established under the Code of Ordinances for the Village of North Palm Beach, Florida, Part
II, Chapter 2, and was most recently amended under Ordinance No. 2008-18 passed and adopted
on November 13, 2008. The Plan is also governed by certain provisions of Part VII, Chapter 112,
Florida Statutes {F.S.} and the Internal Revenue Code.
B. Effective Date
March 1, 1957
C. Plan Year
October 1 through September 30
D. 'I~pe of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time, Fire and Police employees are eligible for membership immediately upon hire
(Previously, members were not eligible until the October 1~` following completion of 12 months of
employment}.
F. Credited Service
Total Number of years and fractional parts of years of actual service.
G. Compensation
Gross salary including overtime but excluding bonuses or any other nonregular payments such as
unused sick leave and vacation pay.
H. Final Average Compeasatio~a (FAC)
The average of Compensation during the 5 years within the last 10 years of employment which
produces the highest average.
L Normal Retirement
Eligibility: Age 55, or the date on which the member attains age 52 and 25 Credited Years of
Service {previously, Age SS only).
~~
36
Benefit: 2.50% of FAC multiplied by Credited Service for the first 24 years of service; 0%
of FAC multiplied by Credited Service for each year after 24 years up to 30 years;
and 2% of FAC multiplied by Credited Service for each year in excess of 30.
(Previously, 2.50% of FAC multiplied by Credited Serivce, to a maximum of 60%
of FAC)
Normal Form
of Benefit: 10 Year Certain and Life, with other options available.
COLA: Up to 3% change effective each October lg` in accordance with the Consumer
Price Index.
J Early Retirement
Eligibility: Age 50
Benefit: Calculated in the same manner as Normal Retirement Benefit and payable at
Normal Retirement Date; or payable immediately after reduction by 3% for each
year by which the benefit commencement date precedes the Normal Retirement
Date.
Normal Form
of Benefit: 10 Year Certain and Life, with other options available.
COLA: Up to 3% change effective each October l~` in accordance with the Consumer Price
Index.
1K. Delayed Retirement
Eligibility: Any time after the Normal Retirement Date.
Benefit: Calculated in the same manner as Normal Retirement Benefit but using the FAC
and Credited Service as of the Normal Retirement Date and increased actuarially
to the actual retirement date.
Normal Fonm
of Benefit: 10 Year Certain and Life, with other options available.
COLA: Up to 3% change effective each October 1~ in accordance with the Consumer
Price Index.
L. Service Connected Disability
Eligibility: A total and permanent disability with no service requirement.
Benefit: Calculated in the same manner as Normal Retirement Benefit except that the FAC
and Credited Service shall be determined as of the member's last date of
employment with the village. In any event the benefit shall be at least 42% of
FAC.
GRS
37
Normal Form: 10 Year Certain and Life, with other options available.
COLA: Up to 3% change effective each October 1~` in accordance with the Consumer Price
Index.
M. Non-Service Connected Disability
Eligibility: 10 Year of Credited Service and a total and permanent disability.
Benefit: Calculated in the same manner as Normal Retirement Benefit except that the FAC
and Credited Service shall be determined as of the member's last date of
employment with the village. In any event the benefit shall be at least 25% of FAC.
Normal Form: 1 Q Year Certain and Life, with other options available.
COLA: Up to 3% change effective each October 15~ in accordance with the Consumer Price
Index.
N. Death while employed by the City (Line of Duty and Noe-Line of Duty)
Eligibility: Members are eligible for survivor benefits after the completion of 10 years of
Credit Service. The benefit will be paid to the member's beneficiary.
Benefit: The survivor benefit payable to the designated beneficiary is the member's vested
accrued Normal Retirement Benefit as of the date of death.
Normal Form
of Benefit: Ten Years Certain.
COLA: Up to 3% change effective each October 1 ~' in accordance with the Consumer Price
Index.
O. Other Pre-Retirement Death
Eligibility: Vested terminated members who have reached age 50 and completed 10 years of
Credited Service.
Benefit: Benefit payable as if member retired on the date of death, selected a 50% Joint &
Survivor annuity, and then passed away, with 50% of the benefit then continuing to
the survivor.
Normal Form
of Benefit: Life of the beneficiary.
COLA: Up to 3% change effective each October 1~` in accordance with the Consumer Price
Index.
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
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Q. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees
are the Life Annuity option or the 50%, 66.67%, 75% or 100% Joint and Survivor options. A Social
Security option is also available for members retiring prior to the time they are eligible for Social
Security retirement benefits.
R Vested Termination
Eligibility: A member has earned anon-forfeitable right to Plan benefits after the completion of
10 years of Credited Service.
Benefit: Calculated in the same manner as Normal Retirement Benefit.
Normal Form
of Benefit: 10 Year Certain and Life, with other options available.
COLA: Up to 3% change effective each October 1~ in accordance with the Consumer Price
Index.
S. Refunds
Return of Accumulated Contributions may be received in lieu of benefits.
T. Member Contributions
2% of earnings.
U. Employer Contributions
The amount determined by the actuary needed to fund the plan properly according to State laws.
V. Cost of Living Increases
Up to 3% change effective each October 1~ in accordance with the Consumer Price Index.
W. Changes from Previous Valuation
The changes since the last Valuation were the following:
(1) The normal retirement date was changed from age 55 to the earlier of age 55 or age 52 with
25 years of service.
{2) The one-year waiting period for eligibility was eliminated.
{3) Benefits were changed to provide the minimum Chapter 175/185 benefit of 2% multiplier
for all years of service. This means that the multiplier would be 2.5% for each of the first
24 years of service, 0% for each year after 24 years and up to 30 years, and 2.0% for each
year in excess of 30 years.
(4) The lump sum optional form of payment was eliminated.
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X. Deferred Retirement Option Plan
Eligibility: The Plan does not provide for DROP benefits.
Y. Other Ancillary Bene#;ts
There are no other ancillary retirement type benefits.
GRS