10-01-2008 Actuarial Valuation Report General Employees Retirement Fund ~1 `S Gabriel Roeder Smith & Company
~J Consultants & Actuaries
VILLAGE OF NORTH PALM BEACH GENERAL RETHtEMENT FUND
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2008
ANNUAL EMPLOYER CONTRIBUTION DETERMINED FOR PLAN YEAR ENDING SEPTEMBER 30, 2010
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R Gabriel Roeder Smith & Company Oue East Broward Blvd. 954.527.1616 phone
Consultants & Actuaries Suite SOS 954.525.0083 fax
Ft. Lauderdale, FL 33301-1872 www.gabrielroeder.com
Apri129, 2009
Board of Trustees of the
Village of North Palm Beach
General Retirement Fund
North Palm Beach, Florida
Dear 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 Report. Actuarial assumptions and the actuarial cost
method are also described herein. Any changes in benefits, assumptions or methods are described in the
first section.
As indicated below, one of the undersigned is a Member of the American Academy of Actuaries (MAAA)
and meets the Qualification Standards of the Academy of Actuaries to render the actuarial opinion herein.
We will be pleased to answer any questions pertaining to the valuation and to meet with you to review this
Report.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
~
By
J teph n Pahnquist, AS MAAA, FCA Duane Howison, FSA
Enrolled Actuary No. 08-01560 Enrolled Actuary No. 08-06169
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Statement by Enrolled Actuary
This actuarial valuation and/or cost determination 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. 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.
Si ature
~-a~-~~ y
Date
08-01560
Enrollment Number
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TABLE OF CONTENTS
Section Title page
A Discussion of Valuation Results 1
B Valuation Results
1. Participant Data 4
2. Annual Required Contribution (ARC) 5
3. Actuarial Value of Benefits & Assets 6
4. Calculation of Employer Normal Cost 7
5. Liquidation of Unfunded Liability 8
6. Actuarial Gains and Losses 10
7. Recent History of Valuation Results 15
8. Recent History of Required and
Actual Contributions 18
9. Actuarial Assumptions and Cost Method 20
10. Glossary of Terms 22
C Pension Fund Information
1. Statement of Assets 25
2. Income and Disbursements 26
3. Actuarial Value of Assets 27
4. Investment Rate of Return 28
D Financial Accounting Information
1. FASB No. 35 29
2. GASB No. 25 30
3. GASB No. 27 32
E Miscellaneous Information
1. Reconciliation of Membership Data 34
2. Age/Service/Salary Distributions 35
F Summary of Plan Provisions 38
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SECTION A
DISCUSSION OF VALUATION RESULTS
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1
DISCUSSION OF VALUATION RESULTS
Comparison of Required 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 9/30/10 For FYE 9/30/09
Based on Based on
10/1/2008 10/1/2007 Increase
Valuation Valuation (Decrease)
Required Employer Contribution $ 734,636 $ 761,943 $ (27,307)
As % of Covered Payroll 23.72 % 22.62 % 1.10
The contribution has been adjusted for interest on the basis that employer contributions are made in
equal payments on a bi-weekly basis. The actual employer contribution during the year ending September
30, 2008 was $876,712 compared to the minimumrequired contribution of $875,126.
Revisions in Benefits
There have been no changes in benefits since the last valuation.
Revisions in Actuarial Assumptions or Methods
There have been no changes in actuarial assumptions or methods since the last valuation. We
recommend that the mortality rates be reduced to take into account mortality improvements.
Actuarial Experience
There was an actuarial gain of $112,703 for the year which means that actual experience was more
favorable than expected. There was a loss due to the recognized asset return of 4.9% versus the expected
8.0%. The estimated return on market value was (11.4)%. There were also experience gains resulting from
more turnover than expected and from lower than expected salary increases. A considerable amount of the
turnover was due to one-time events (position eliminations). The net gain for the year translates into a
decrease in annual employer contributions of 0.45% of covered payroll.
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2
Analysis of Change in Employer Contributions
The components of change in the required contribution are as follows:
Contribution rate last year 22.62
C',hanue in Art~iarial A~smm~tinn (1 M
---°--o- -------'°----------°--r -----
Payment on unfunded liability 1.45
Experience gain/loss (0.45)
Change in administrative expense 0.10
Contribution rate this year 23.72
Funded Ratio
The funded ratio this year is 57.4% compared to 58.9% last year. The ratio is equal to the actuarial
value of assets divided by the actuarial accrued (past service) liability.
Variability of Future Contribution Rates
The Actuarial Cost Method used to determine the required contribution is intended to produce
contribution. rates which are generally level as a percent of payroll. Even so, when experience differs
from the assumptions, as it often does, the employer's contribution rate can vary significantly from year-
to-year.
Smaller plans in particular often see significant year-to-year changes in the employer's
contribution rate. The impact of a single new disability retirement or a single active member death can
move the contribution rate by more than one percent of pay in a very small plan. Normal variability in
the number of retirements or terminations or salary increases or hiring can all cause noticeable shifts in
the contribution rate from one year to the next.
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.
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3
The Actuarial Value of Assets exceeds the Market Value of Assets by $809,491 as of the
valuation date (see Section C). This difference will be gradually recognized over the next five years in
the absence of offsetting gains. In turn, the computed employer contribution rate will increase by
approximately 3.2% of covered payroll over the same period.
Relationshiu to Market Value
If Market Value had been the basis for the valuation, the City contribution rate would have been
26.92%. In the absence of other gains and losses, the City contribution rate should increase to that level
over the next several years. Due to the recent economic downturn, further asset losses have likely
occurred after September 30, 2008. These losses will be reflected in the October 1, 2009 valuation for
the fiscal year ending September 30, 2011.
The remainder of this Report includes detailed actuarial valuation results, information relating to
the pension fund, financial accounting information, miscellaneous employee data and a summary of plan
provisions.
Conclusion
The remainder of this Report includes detailed actuarial valuation results, fmancial information,
miscellaneous information and statistics, and a summary of plan provisions.
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SECTION B
VALUATION RESULTS
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4
PARTICIPANT DATA
October 1, 2008 October 1, 2007
ACTIVE MEMBERS
Number 64 72
Covered Annual Payroll $ 2,977,995 $ 3,238,894
Average Annual Payroll $ 46,531 $ 44,985
Average Age 47.7 47.5
Average Past Service 11.1 11.6
Average Age at Hue 36.6 35.9
RETIREES & BENEFICIARIES & DROP
Number 10 10
Annual Benefits $ 45,694 $ 43,928
Average Annual Benefit $ 4,569 $ 4,393
Average Age 75.7 74.7
DISABILITY RETIREES
Number 0 0
Annual Benefits $ 0 $ 0
Average Annual Benefit $ 0 $ 0
Average Age 0.0 0.0
TERMINATED VESTED MEMBERS
Number 50 49
Annual Benefits $ 324,419 $ 285,492
Average Annual Benefit $ 6,488 $ 5,826
Average Age 50.9 50.5
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ANNUAL REQUIRED CONTRIBUTION (ARC)
A. Valuation Date October 1, 2008 October 1, 2007
B. ARC to Be Paid During
Fiscal Year Ending 9/30/2010 9/30/2009
C. Assumed Date of Employer Contrib. Bi-Weekly Bi-Weekly
D. Annual Payment to Amortize
Unfunded Actuarial Liability $ 224,274 $ 198,890
E. Employer Normal Cost 454,988 505,658
F. ARC if Paid on the Valuation
Date: D+E 679,262 704,548
G. ARC Adjusted for Frequency of
Payments 706,431 732,729
H. ARC as % of Covered Payroll 23.72 % 22.62
I. Assumed Rate of Increase in Covered
Payroll to Contribution Year 4.00 % 4.00
J. Covered Payroll for Contribution Year 3,097,115 3,368,450
K. REC for Contribution Year: H x J 734,636 761,943
L. REC as % of Covered Payroll in
Contribution Year: M - J 23.72 % 22.62
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6
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date October 1, 2008 October 1, 2007
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 10,947,204 $ 12,081,901
b. Vesting Benefits 912,255 1,029,203
c. Disability Benefits - -
d. Preretirement Death Benefits 323,397 345,351
e. Return of Member Contributions 6,727 6,918
£ Total 12,189,583 13,463,373
2. Inactive Members
a. Service Retirees & Beneficiaries 210,514 223,024
b. Disability Retirees - -
c. Terminated Vested Members 1,579,453 1,388,226
d. Total 1,789,967 1,611,250
3. Total for All Members 13,979,550 15,074,623
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25 10,138,981 10,997,783
D. Actuarial Value of Accumulated Plan
Benefits per FASB No. 35 7,331,193 7,946,254
E. Plan Assets
1. Market Value 5,014,956 6,677,782
2. Actuarial Value 5,824,447 6,481,382
F. Actuarial Present Value of Projected
Covered Payroll 26,209,925 27,991,675
G. Actuarial Present Value of Projected
Member Contributions 1,340,355 1,402,075
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CALCULATION OF EMPLOYER NORMAL COST
A. Valuation Date October 1, 2008 October 1, 2007
B. Actuarial Present Value of Projected
Roro~.~~ e ono ccn e i s non ti~~
L L..lltrllLJ iV 1J,//J,??V yl 1?,V /T,VLJ
C. Actuarial Value of Assets 5,824,447 6,481,382
D. Unfunded Actuarial Accrued Liability 2,951,925 2,944,876
E. Actuarial Present Value of Projected
Member Contributions 1,340,355 1,402,075
F. Actuarial Present Value of Projected
Employer Normal Costs: B-C-D-E 3,862,823 4,246,290
G. Actuarial Present Value of Projected
Covered Payroll 26,209,925 27,991,675
H. Employer Normal Cost Rate: F/G 14.74 % 15.17
I. Covered Annual Payroll 2,977,995 3,238,894
J. Employer Normal Cost: H x I 438,956 491,340
K. Assumed Amount of Administrative
Expenses 16,032 14,318
L. Total Employer Normal Cost: J+K 454,988 505,658
M. Employer Normal Cost as % of
Covered Payroll 15.28 % 15.61
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8
LIQUIDATION OF THE UNFUNDED FROZEN ACTUARIAL ACCRUED LIABILITY
A. Derivation of the Current UAAL
1. Last Year's UAAL $ 2,944,876
2. Last Year's Employer Normal Cost 628,515
3. Last Year's Contributions 876,712
4. Interest at the Assumed Rate on:
a. 1 and 2 for one year 285,871
b. 3 from dates paid 30,625
c. a - b 255,246
5. This Year's UAAL Prior to Revision:
1 + 2 - 3 + 4c 2,951,925
6. Change in UAAL Due to Plan Amendments
and/or Changes in Actuarial Assumptions 0
7. This Year's Revised UAAL: 5 + 6 2,951,925
B. UAAL Amortization Period and Payments
Original UAAL Current UAAL
Amortization
Date Period Years
Established (Years) Amount Remaining Amount Payment
10/1/99 30 $ 535,528 21 $ 481,944 $ 38,220
10/1/00 30 1,426,008 22 1,496,607 115,902
10/1/03 30 700,742 25 735,679 53,602
10/1/03 30 (77,576) 25 (81,443) (5,934)
10/1/OS 30 313,729 27 319,138 22,484
Totals 2,951,925 224,274
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9
C. Amortization Schedule
The UFAAL is being amortized as a level percent of payroll over the number of years remaining in the
amortization period. The expected amortization schedule is as follows:
Amortization Schedule
Year Expected UAAL
2008 $ 2,951,925
2009 2,945,863
2010 2,934,400
2011 2,917,002
2012 2,893,094
2013 2,862,050
2018 2,574,048
2023 1,978,446
2028 912,654
2033 72,265
2035 -
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10
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment turnover, investment income, expenses,
..i,.,.., ra ,,,i,o.- ~ ,.,-,.,.., ~..,~.o ~.oo~ ~..,~oa ,.-o~a~ ra o,.,-,.,;~r., n,.ti,,,i
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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. Employer Normal Cost as a
Percentage of Covered Payroll
1. Last Valuation 15.17
2. Current Valuation 14.74
3. Difference: 1 - 2 0.43
B. Actuarial Present Value of $ 26,209,925
Projected Covered Payroll
C. Net Actuarial Gain (Loss): A3 x B 112,703
D. Gain (Loss) Due to Investments (183,682)
E. Gain (Loss) from Other Sources 296,384
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11
Net actuarial gains in previous years have been as follows:
Change in Employer
Year Ended Normal Cost Rate Gain (Loss)
9/30/89 1.27 % $ 247,650
9/30/90 (0.99) (208,184)
9/30/91 1.89 449,984
9/30/92 0.46 116,603
9/30/93 0.85 220,810
9/30/94 (0.25) (72,092)
9/30/95 0.75 218,857
9/30/96 0.62 119,415
9/30/97 1.09 23 8,623
9/30/98 0.63 143,651
9/30/99 1.14 266,397
9/30/00 0.42 98,421
9/30/01 0.99 266,154
9/30/02 (2.05) (526,865)
9/30/03 (2.01) (566,552)
9/30/04 (4.74) (1,665,087)
9/30/05 0.06 17,103
9/30/06 1.24 403,362
9/30/07 1.34 375,088
9/30/08 0.43 112,703
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12
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 table shows the actual fund earnings
and salary increase rates compared to the assumed rates for the last few years:
Year Investment Return Salary Increases
Ending Actual Assumed Actual Assumed
9/30/1985 13.8 % 7.0 % 5.3 % 6.0
9/30/1986 27.2 7.0 12.8 6.0
9/30/1987 16.4 7.0 8.6 6.0
9/30/1988 (6.3) 7.0 6.8 6.0
9/30/1989 19.4 7.0 5.2 6.0
9/30/1990 (0.6) 7.0 10.4 6.0
9/30/1991 19.7 7.0 5.0 6.0
9/30/1992 11.8 7.0 7.7 6.0
9/30/1993 9.7 7.0 0.8 6.0
9/30/1994 6.0 7.0 5.9 6.0
9/30/1995 8.7 7.0 4.6 6.0
9/30/1996 9.3 8.0 4.4 6.0
9/30/1997 11.5 8.0 4.3 6.0
9/30/1998 10.9 8.0 4.3 6.0
9/30/1999 13.2 8.0 2.8 6.0
9/30/2000 12.7 8.5 10.3 5.5
9/30/2001 7.9 8.5 3.4 5.5
9/30/2002 2.5 8.5 6.8 5.5
9/30/2003 1.6 8.5 7.2 5.5
9/30/2004 8.6 8.5 23.9 5.5
9/30/2005 8.7 8.5 (2.9) 5.5
9/30/2006 8.1 8.0 8.5 5.5
9/30/2007 9.0 8.0 8.0 5.5
9/30/2008 4.9 8.0 4.0 5.5
Averages 9.6 % --- 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.
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Actual (A) Compared to Expected (E) Decrements
Among Active Employees
Number
Added Service & Active
During DROP Disability Terminations Members
Year Year Retirement Retirement Death Vested Other Totals End of
Ended A E A E A E A E A A A E Year
9/30/2003 7 3 0 7 0 0 0 0 2 1 3 3 92
9/30/2004 10 8 5 8 0 0 0 0 1 2 3 3 94
9/30/2005 12 22 10 7 0 0 0 0 9 3 12 3 84
9/30/2006 15 9 0 2 0 0 1 0 4 4 8 2 90
9/30/2007 3 21 2 4 0 0 0 0 8 11 19 4 72
9/30/2008 6 14 6 3 0 0 0 0 7 1 8 2 64
9/30/2009 2 0 0 2
6 Yr Totals * 53 77 23 31 0 0 1 0 31 22 53 17
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15
RECIIVT HIS TORY OF VALUATION RNA LILTS
Number of Covered Actuarial bn to er Normal Cost
Valuation Members Annual Value % of
Date Active Inactive Pa oll of Assets UFAAL Amount Pa oll
10/1/RR 71 37 ~ 1.473.422 R 1.743.234 R 0 ~ 17F_109 12.0
10/1/89 83 37 1,715,049 2,105,292 0 184,804 10.8
10/1/90 79 37 1,848,726 2,134,052 0 232,938 12.6
10/1/91 86 34 2,022,569 2,531,076 0 219,669 10.9
10/1/92 87 35 2,153,587 2,645,252 0 216,069 10.0
10/1/93 91 35 2,241,595 3,018,716 0 205,294 9.2
10/1/94 96 35 2,471,296 3,209,342 0 258,406 10.5
10/1/95 93 35 2,451,309 3,471,658 0 245,007 10.0
10/1/96 80 39 2,251,610 3,805,073 0 229,496 10.2
10/1/97 79 40 2,380,024 4,301,968 0 214,402 9.0
10/1/98 79 42 2,435,518 4,574,342 0 204,401 8.4
10/1/99 83 46 2,532,741 5,179,781 535,528 247,653 9.8
10/1/00 84 45 2,761,773 5,732,329 1,891,134 285,337 10.3
10/1/Ol 93 45 3,127,313 6,312,447 1,899,439 297,452 9.5
10/1/02 88 49 3,076,493 6,193,676 1,900,967 359,426 11.7
10/1/03 92 48 3,443,843 6,759,012 2,555,216 451,615 13.1
10/1/04 94 48 4,275,981 6,578,832 2,618,609 760,337 17.8
10/1/OS 84 55 3,220,258 3,817,605 2,956,402 596,120 18.5
10/1/06 90 56 3,680,960 5,283,023 2,970,967 628,515 17.1
10/1/07 72 59 3,238,894 6,481,382 2,944,876 505,658 15.6
10/1/08 64 60 2,977,995 5,824,447 2,951,925 454,988 15.3
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18
RECINT FIISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
End of Year To Rep_uired Contribution
Which Actual
Valuation
Valuation Contribution
Applies % of
Amount Pa roll
10/1/88 9/30/89 $ 183,611 12.46 % $ 184,000
10/1/89 9/30/90 192,677 11.23 195,000
10/1/90 9/30/91 242,868 13.14 245,000
10/1/91 9/30/92 229,034 11.42 230,000
10/ 1/92 9/30/93 225,280 10.46 226,000
10/1/93 9/30/94 214,046 9.55 223,000
10/1/94 9/30/95 269,422 10.90 270,000
10/1/95 9/30/96 259,751 10.65 260,000
10/1/96 9/30/97 240,637 10.69 245,169
10/1/97 9/30/98 224,810 9.45 250,721
10/1/98 9/30/99 214,323 8.80 227,112
10/1/99 9/30/00 292,866 11.56 372,744
10/1/00 9/30/01 415,152 15.03 447,128
10/1/O1 9/30/02 430,411 13.76 467,750
10/1/02 9/30/03 502,855 16.35 503,220
10/1/02 9/30/04 523,127 16.35 524,000
10/1/03 9/30/05 662,237 18.49 662,237
10/1/04 9/30/06 1,007,695 22.66 1,007,695
10/1/OS 9/30/07 866,069 25.86 873,854
10/ 1/06 9/30/08 875,126 22.86 876,712
10/1/07 9/30/09 761,943 22.62 na
10/1/08 9/30/10 734,636 23.72 na
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20
ACTUARIAL ASSUMPTIONS AND COST METHOD
A. Cost Method
1. Funding Frozen Entry Age Actuarial Cost Method.
2. Accumulated Benefit Obligation Accrued Benefit Method
R 7„t.a~r„,A„r R„-,,;,,..~ S2 no/ „ ,,,aP.~ ~ ,~n~,• „Pr ,-~tA ~frP,-
L. L1V 1.rJ L111V11L LU111L11SJ V.V / V ~/er year, VV111pV1.L111AV1A ui'Ll'uull~', 111.E 1LLLV u1LV1
(Including Inflation) investment related expenses. For members hired prior to
September 29, 2005, it is being assumed that each retiree
will elect a lump sum distribution and the interest rate
used to calculate the lump sum will be 5.25%. All other
members are assumed to elect the life annuity option.
C. Salary Increases 5.5% per year up to the assumed retirement age.
(Including Inflation)
D. Inflation 4% per year.
E. Retirement Age See Table below.
F. Turnover Rates See Table below.
G. Mortality Rates 1983 Group Annuity Mortality Tables for males and
females.
H. Disability
1. Rates NA
2. Percent Service Connected NA
I. Asset Value Difference between actual and expected return recognized
over five years.
J. Administrative Expenses 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.
K. Increase in Covered Payroll 4% per year, but limited to average increase over last 10
years (2.03% this year).
L. Post Retirement Benefit Increase 3% for those who retired before 2/1/82. Employees hired
before 10/1/00 may choose to contribute an extra 2%
starting 10/1/00 in order to receive a 3% COLA upon
retirement. This clause is mandatory for employees hired
after 9/30/00.
M. Changes Since Last Valuation None.
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21
Annual Rate of
? -_ m____________ r!__i_!i!~_
tie 1 urnuver L15i1u1111
25 18.8% NA
30 11.2 NA
35 6.3 NA
40 4.8 NA
45 3.4 NA
50 2.4 NA
55 0.5 NA
60 0.0 NA
Annual Rate of Refirement
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 40
For fifth year after
normal retirement
date 100
GRS
22
GLOSSARY OF TERMS
Actuarial Accrued Liability The difference between the Actuarial Present Value of Future Benefits, and the
(AAL) Actuarial Present Value of Future Normal Costs.
Actuarial Assumptions Assumptions 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.
Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits between
the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued
Liability.
Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and based on a
given set of Actuarial Assumptions.
Actuarial Present Value (APi~ The amount of funds required to provide a payment or series of payments in the
future. It is determined by discounting the future payments with an assumed
interest rate and with the assumed probability each payment will be made.
Actuarial Present Value of The Actuarial Present Value of amounts which are expected to be paid at various
Future Benefits (APVFB) future times to active members, retired members, beneficiaries 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.
Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial 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. 25, such as
the Funded Ratio and the Annual Required Contribution (ARC).
Actuarial Value of Assets The 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).
Amortization Method A method for determining the Amortization Payment. The most common 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, all equal,
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.
GRS
23
Amortization Payment That portion of the plan contribution or ARC which is designed to pay interest on
and to amortize the Unfunded Actuarial Accrued Liability.
Amortization Period The period used in calculating the Amortization Payment.
Annual Required Contribution The employer's periodic required contributions, expressed as a dollar amount or
(ARC) a percentage of covered plan compensation, determined under GASB No. 25.
The ARC consists of the Employer Normal Cost and Amortization Payment.
Closed Amortization Period A specific number of years that is reduced by one each year, and declines 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.
Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is equal to the
Normal Cost less expected member contributions.
Equivalent Single Amortization Far plans that do not establish separate amortization bases (separate components
Period of the UAAL), this is the same as the 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.
Experience Gain/Loss A measure of the difference between the normal cost rate from last year and the
normal cost rate from this year.
Frozen Entry Age Actuarial A method under which the excess of the Actuarial Present Value of Projected
Cost Method Benefits of the group included in the valuation, over the sum of the Actuarial
Value of Assets, the Unfunded Frozen Actuarial Accrued Liability 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 Emnloyer Normal Cost. Under this
method, actuarial gains (losses) reduce (increase) future Normal Costs.
Frozen Actuarial Accrued The portion of the Actuarial Present Value of Projected Benefits which is
Liability separated as of a valuation date and frozen under the Actuarial Cost Method being
used. This separated portion is the sum of an initial Unfunded Actuarial Accrued
Liability and any increments or decrements in the Actuarial Accrued Liability
established subsequently as a result of changes in pension plan benefits, Actuarial
Assumptions or methods.
Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability.
GASB Governmental Accounting Standards Board.
GASB No. 25 and These are the governmental accounting standards that set the accounting rules for
GASB No. 27 public retirement systems and the employers that sponsor or contribute to them.
Statement No. 27 sets the accounting rules for the employers that sponsor or
contribute to public retirement systems, while Statement No. 25 sets the rules for
the systems themselves.
GRS
24
Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current plan
year.
Open Amortization Period An open amortization period is one which is used to determine the 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. Iri theory, if an Open Amortization Period is used to amortize
the Unfunded Actuarial Accrued Liability, the UAAL will never completely
,1.,...~~.. L_.a __.:ii L,....,.v „11 „L _ :aL ,]..11,...
U15[1~.1~1G[ll, UUL Wlll UGGV111G s111tL11G1 GaGll year, elU1G1 Zls CL UVllZll QllloLlnl or lrl
relation to covered payroll.
Unfunded Actuarial Accrued The difference between the Actuarial Accrued Liability and Actuarial Value of
Liability Assets.
Valuation Date The date as of which the Actuarial Present Value of Future Benefits are
determined. The benefits expected to be paid in the future are discounted to this
date.
GRS
SECTION C
PENSION FUND INFORMATION
GRS
25
STATEMENT OF ASSETS
9/30/2008 9/30/2007
~,asn anu ~ecuruies - rvlarxe~ v aiue
Cash and Savings Accounts $ - $ -
Money Market Funds 251,672 119,831
Treasury and Agency Bonds & Notes - -
Corporate Bonds - -
Common & Preferred Stocks - -
PooledEquity Funds 2,434,764 4,302,214
Pooled Bond Funds 2,117,340 2,310,117
Other Securities - -
Total 4,803,776 6,732,162
Receivables and Accruals
State Contribution - -
Member Contribution - -
Employer Contribution - -
Interest and Dividends 406 379
Other 210,774 58,522
Total 211,180 58,901
Payables
Benefits - 113,281
Refunds - -
Expenses - -
Other - -
Total 0 113,281
Net Assets -Market Value 5,014,956 6,677,782
GRS
26
INCOME AND DISBURSEMENTS
Year Ending Year Ending
9/30/2008 9/30/2007
Market Value at Beginning of Period $ 6,677,782 $ 5,273,701
Income
Member Contributions 161,290 171,126
State Contributions N/A N/A
Employer Contributions 876,712 873,854
Other Contributions 0 0
Interest and Dividends 31,451 19,584
Recognized/Unrecognized Gains (Losses) (692,615) 733,250
Total Investment Earnings (661,164) 752,834
Total Income 376,83 8 1,797,814
Disbursements
Monthly Benefit Payments 38,566 43,927
Lump Sum Distributions 1,931,863 296,446
Refund of Contributions 0 0
Investment Related Expenses 48,043 42,488
Other Administrative Expenses 21,192 10,872
Insurance Premiums 0 0
Other Expenses 0 0
Total Disbursements 2,039,664 393,733
Net Increase During Period (1,662,826) 1,404,081
Market Value at End of Period 5,014,956 6,677,782
GRS
27
ACTUARIAL VALUE OF ASSETS
Year Ending September 30
2006 2007 2008 2009 2010
A. Beginning of Year Assets
1. Market Value $ 3,857,737 $ 5,273,701 $ 6,677,782 $ 5,014,956 $ 0
2. Actuarial Value 3,817,605 5,283,023 6,481,382 5,824,447 0
B. Net of Contributions
Less Disbursements* 1,113,238 693,735 (953,619) 0 0
C. Actual Net Investment
Earnings * 302,726 710,346 (709,207) 0 0
D. Expected Investment
Earnings * 349,938 450,391 480,366 0 0
E. Excess of Actual Over
Expected Investment
Earnings: C-D (47,212) 259,955 (1,189,573) 0 0
F. Recognition ofExcess
Earnings Over 5 Years
1. FromThis Year (9,442) 51,991 (237,915) 0 0
2. From One Year Ago 5,079 (9,442) 51,991 (237,915) 0
3. FromTwo Years Ago 6,605 5,079 (9,442) 51,991 (237,915)
4. FromThree Years Ago 0 6,605 5,079 (9,442) 51,991
5. FromFour Years Ago 0 0 6,605 5,079 (9,442)
6. Total 2,242 54,233 (183,682) (190,287) (195,366)
G End of Year Assets
1. Market Value 5,273,701 6,677,782 5,014,956 0 0
2. Actuarial Value:
A2 + B + D + F6 5,283,023 6,481,382 5,824,447 0 0
3. Final Actuarial Value
Within 80% to 120% 5,283,023 6,481,382 5,824,447 0 0
Of Market Value
GRS
28
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
Vl LllG tiGLUQ11Q1 V Q1UG Vl t1J5GLJ UUl lll~' L11G yG[ll.
Investment Rate ofReturn*
Year Ended Basis 1** Basis 2
9/30/85 13.8 % 13.8
9/30/86 27.2 27.2
9/30/87 16.4 16.4
9/30/88 (6.3) (6.3)
9/30/89 19.4 19.4
9/30/90 (0.6) (0.6)
9/30/91 19.7 19.7
9/30/92 11.8 11.8
9/30/93 10.0 9.7
9/30/94 (1.5) 6.0
9/30/95 18.6 8.7
9/30/96 12.6 9.3
9/30/97 23.1 11.5
9/30/98 5.6 10.9
9/30/99 13.9 13.2
9/30/00 13.0 12.7
9/30/01 (4.6) 7.9
9/30/02 (6.6) 2.5
9/30/03 10.9 1.6
9/30/04 9.0 8.6
9/30/05 9.0 8.7
9/30/06 6.9 8.1
9/30/07 12.6 9.0
9/30/08 (11.4) 4.9
Average Compounded Rate of Return for
Number of Years Shown 8.8 % 9.6
Average Compounded Rate of Return for
bast 5 Years 4.8 % 7.8
* Figures prior to 1988 were taken from the previous actuary's report for 1987.
Net rate after investment expenses starting in 2004.
GRS
SECTION D
FINANCIAL ACCOUNTING INFORMATION
GRS
29
FASB NO. 35 INFORMATION
A. Valuation Date October 1, 2008 October 1, 2007
B. Actuarial Present Value of Accumulated
Plan Bene_fi_ts
1. Vested Benefits
a. Members Currently Receiving Payments $ 210,514 $ 223,024
b. Terminated Vested Members 1,579,453 1,388,226
c. Other Members 5,069,686 5,709,634
d. Total 6,859,653 7,320,884
2. Non-Vested Benefits 471,540 625,370
3. Total Actuarial Present Value of Accumulated
Plan Benefits: ld + 2 7,331,193 7,946,254
4. Accumulated Contrbutions of Active Members 683,800 696,763
C. Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1. Total Value at Beginning of Year 7,946,254 7,334,152
2. Increase (Decrease) During the Period
Attributable to:
a. Plan Amendment 0 0
b. Change in Actuarial Assumptions 0 0
c. Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period 1,355,368 952,475
d. Benefits Paid (1,970,429) (340,373)
e. Net Increase (615,061) 612,102
3. Total Value at End of Period 7,331,193 7,946,254
D. Market Value of Assets 5,014,956 6,677,782
E. Actuarial Assumptions -See page entitled
Actuarial Assumptions and Methods
GRS
30
SCHEDULE OF FUNDING PROGRESS
(GASB Statement No. 25)
Actuarial UAAL As
Actuarial Actuarial Accrued % of
Valuation Value of Liability (AAL) Unfunded Funded Covered Covered
Date Assets FxitryAge AAL(UAAL) Ratio Payroll Payroll
(a) (b) (b) - (a) (a) / (b) (c) (b - a) / c
10/1/91 $ 2,531,076 ~ 2,716,601 ~ 185,525 93.2 % $ 2,022,569 9.2
10/1/92 2,645,252 3,055,166 409,914 86.6 2,153,587 19.0
10/1/93 3,018,716 3,258,012 239,296 92.7 2,241,595 10.7
10/1/94 3,209,342 3,659,663 450,321 87.7 2,471,296 18.2
10/1/95 3,471,658 4,132,092 660,434 84.0 2,451,309 26.9
10/1/96 3,805,073 4,295,018 489,945 88.6 2,251,610 21.8
10/1/97 4,301,968 4,585,587 283,619 93.8 2,380,024 11.9
10/1/98 4,574,342 4,733,864 159,522 96.6 2,435,518 6.5
10/1/99 5,179,781 5,943,849 764,068 87.1 2,543,984 30.0
10/1/00 5,732,329 7,508,961 1,776,632 76.3 2,761,773 64.3
10/1/O1 6,312,447 8,150,125 1,837,678 77.5 3,127,313 58.8
10/1/02 6,193,676 8,594,442 2,400,766 72.1 3,076,493 78.0
10/1/03 6,759,012 10,404,349 3,645,337 65.0 3,443,843 105.9
10/1/04 6,578,832 12,084,785 5,505,953 54.4 4,275,981 128.8
10/1/OS 3,817,605 9,116,599 5,298,994 41.9 3,220,258 164.6
10/1/06 5,283,023 10,490,332 5,207,309 50.4 3,680,960 141.5
10/1/07 6,481,382 10,997,783 4,516,401 58.9 3,238,894 139.4
10/1/08 5,824,447 10,138,981 4,314,534 57.4 2,977,995 144.9
GRS
31
SCHEDULE OF EMPLOYER CONTRIBUTIONS
(GASB Statement No. 25)
Year Annual
Ended Required Actual Percentage
9/30 Contribution Contribution Contributed
1991 $ 242,868 $ 245,000 100.9
1992 229,034 230,000 100.4
1993 225,280 226,000 100.3
1994 214,046 223,000 104.2
1995 269,422 270,000 100.2
1996 259,751 260,000 100.1
1997 240,637 245,169 101.9
1998 224,810 250,721 111.5
1999 214,323 227,112 106.0
2000 292,866 372,744 127.3
2001 415,152 447,128 107.7
2002 430,411 467,750 108.7
2003 502,855 503,220 100.1
2004 523,127 524,000 100.2
2005 662,237 662,237 100.0
2006 1,007,695 1,007,695 100.0
2007 866,069 873,854 100.9
2008 875,126 876,712 100.2
GRS
32
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT NO. 27)
Employer FYE September 30 2009 2008 2007
Annual Required Contribution (ARC) $ 761,943 $ 875,126 $ 866,069
Interest on Net Pension Obligation (NPO) (13,692) (13,692) (13,473)
Adjustment to ARC (19,295) (18,869) (18,527)
Annual Pension Cost (APC) 767,546 880,303 871,123
Contributions made 876,712 873,854
Increase (decrease) inNPO 3,591 (2,731)
NPO at beginning of year (167,553) (171,144) (168,413)
NPO at end of year (167,553) (171,144)
To be determined
THREE YEAR TREND INFORMATION
Fiscal Annual Pension Actual Percentage of Net Pension
Year Ending Cost (APC) Contribution APC Contributed Obligation
9/30/2006 $ 1,014,362 $ 1,007,695 99.3 % $ (168,413)
9/30/2007 871,123 873,854 100.3 (171,144)
9/30/2008 880,303 876,712 99.6 (167,553)
GRS
33
REQi]IItED SUPPLF,MENTARY INFORMATION
GASB Statement No. 25 and No. 27
The information presented in the required supplementary schedules was determined as part of the actuarial
VdlUAL1Ui15 tLL L11G UQLGJ 1llUllalLGU. L--1UU1L1Ulldl llllUlllltlL1U11 [LS Ul L11G 1dLGJLcLGLU[Llltll VQ1U[LL1Ul1.
Valuation date October 1, 2008
Contribution Rates:
Employer 23.72%
Plan Members 6.00%*
Actuarial Cost Method Frozen Entry Age
Amortization Method Level percent, closed
Remaining amortization period 30
Asset valuation method Difference between
actual return and
expected return
recognized over 5 years.
Actuarial assumptions:
Investment rate of return 8.0% up to retirement,
5.25% thereafter
Projected salary increases 5.5%
Includes inflation and other general increases at 4.0%
Cost-of-living adjustments 3.0% for those retired
before 2/1/82 or who
contribute an extra
2%.
* Except for certain members who have elected not to contribute and for other members
who have elected to contribute only 2% or 4%.
GRS
SECTION E
MISCELLANEOUS INFORMATION
GRS
34
RECONCILIATION OF MEMBERSHIP DATA
From 10/1/07 From 10/1/06
to 10/1/08 to 10/1/07
A. Active Members
1. Number Included in Last Valuation 72 90
,
2. ivew iviemoers inciuaea m Current Valuation 6 3
3. Non-Vested Employment Terminations (1) (5)
4. Vested Employment Terminations (7) (8)
5. Service Retirements (6) (2)
6. Disability Retirements 0 0
7. Deaths 0 0
8. Other 0 (6)
9. Number Included in This Valuation 64 72
B. Terminated Vested Members
1. Number Included m Last Valuation 49 46
2. Additions from Active Members 7 8
3. Lump Sum Payments/Refund of Contributions (6) (5)
4. Payments Commenced 0 0
5. Deaths 0 0
6. Other--Return to Actives 0 0
7. Number Included in This Valuation 50 49
C. Service Retirees, Disability Retirees and Beneficiaries
1. Number Included in Last Valuation 10 10
2. Additions from Active Members 6 2
3. Additions from Terminated Vested Members 0 0
4. Additions from DROP Plan 0 0
4. Deaths Resulting in No Further Payments 0 0
5. Deaths Resulting in New Survivor Benefits 0 0
6. End of Certain Period - No Further Payments 0 0
7. Other -- Lump Sum Distributions (6) (2)
8. Number Included in This Valuation 10 10
GRS
35
NORTH PALM BEACH GENERAL EMPLOYEES -ACTIVE MEMBERS ON 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 No.
Total Pay
AvgPay
25-29 No. 3 3
Total Pay 104,]27 104,127
AvgPay 34,709 34,709
30-34 No. 2 2 4
Total Pay 68,990 88,105 157,095
Avg Pay 34,495 44,053 39,274
35-39 No. 2 4 1 7
Total Pay 123,697 174,979 50,895 349,571
AvgPay 61,849 43,745 50,895 49,939
40-44 No. 2 3 2 2 9
Total Pay 92,799 144,887 74,711 95,182 407,579
AvgPay 46,400 48,296 37,356 47,591 45,287
45-49 No. 4 1 2 2 2 11
Total Pay 149,925 41,406 95,914 79,416 124,114 490,775
AvgPay 37,481 41,406 47,957 39,708 62,057 44,616
50-54 No. 1 2 2 3 4 1 13
Total Pay 68,205 116,450 71,482 123,468 242,842 90,241 712,688
Avg Pay 68,205 58,225 35,741 41,156 60,711 90,241 54,822
55-59 No. 1 7 2 1 1 12
Total Pay 23,395 262,268 66,938 34,233 98,792 485,626
AvgPay 23,395 37,467 33,469 34,233 98,792 40,469
60-64 No. 1 2 1 4
Total Pay 36,701 80,200 39,067 155,968
AvgPay 36,701 40,100 39,067 38,992
65-99 No. 1 1
Total Pay 34,863 34,863
AvgPay 34,863 34,863
Total No. 17 20 9 5 9 3 1 64
Total Pay 702,702 866,889 344,499 219,382 451,673 222,906 90,241 2,898,292
AvgPay 41,335 43,344 38,278 43,876 50,186 74,302 90,241 45,286
GRS
36
NORTH PALM BEACH GENERAL INACTIVE PARTICIPANTS RECEIVING THE COLA
AS OF OCTOBER 1, 2008
1\V LII ees allu
Terminated Vested Disabled Beneficiaries
Annual Annual Annual
Age No. Benefits No. Benefits No. Benefits
Under 45 1 $6,823 0 $0 0 $0
45-49 5 25,910 0 0 0 0
50-54 1 10,078 0 0 0 0
55-59 6 66,921 0 0 1 11,071
60-64 1 2,812 0 0 0 0
65-69 1 640 0 0 2 7,866
70-74 1 442 0 0 0 0
75-79 0 0 0 0 1 2,209
80-84 0 0 0 0 1 1,079
85-89 0 0 0 0 0 0
90&Up 0 0 0 0 0 0
Total 16 $113,626 0 $0 5 $22,225
GRS
37
NORTH PALM BEACH GENERAL INACTIVE PARTICIPANTS NOT RECEIVING THE COLA
AS OF OCTOBER 1, 2008
Retirees and
Terminated Vested Disabled Beneficiaries
Annual Annual Annual
Age No. Benefits No. Benefits No. Benefits
Under 45 6 $24,216 0 $0 0 $0
45-49 15 100,395 0 0 0 0
50-54 6 45,732 0 0 0 0
55-59 6 37,876 0 0 0 0
60-64 1 2,573 0 0 0 0
65-69 0 0 0 0 0 0
70-74 0 0 0 0 1 1,274
75-79 0 0 0 0 1 5,119
80-84 0 0 0 0 1 3,240
85-89 0 0 0 0 2 13,836
90&Up 0 0 0 0 0 0
Total 34 $210,792 0 $0 5 $23,469
GRS
SECTION F
SUD~IlVIARY OF PLAN PROVISIONS
GRS
38
SUIVIMARY OF PLAN PROVISIONS
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. 2008-02 passed and adopted on
January 10, 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
September 1, 1967
C. Plan Year
October 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time, General Employees are eligible for membership on the October 1st following completion
of 12 months of employment.
F. Credited Service
Total Number of years and fractional parts of years of actual service.
G. Compensation
Total compensation for services rendered to the City as a General Employee includes gross salary
including overtime but excluding bonuses or any other non regular payments such as unused sick
leave and vacation pay.
H. Final Average Compensation (FAC)
The average of Compensation during the 5 years within the last 10 years of employment which produces
the highest average.
I. Normal Retirement
Eligibility: A member may retire on the first day of the month coincident with or next following
the earlier of age 60 and 9 years of Credited Service or age 65 (depending on
employee contribution rate).
GRS
39
Benefit: Either 2%, 2.25%, or 2.50% (depending on employee contribution rate) of AME
multiplied by Credited Service up to 20 years plus 1% of AME multiplied by
Credited Service over 20 years.
Normal Form
of Benefit: Life Annuity, with other options available.
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
t.o~ ro inii inn .~,t,,. oto,,, „ r+.-:i.,,,o „ poi poi r,.,,~ ,.ter;
Ul.1Vl 1. 1V/ 1/ VV W11V li1Vl,L LV 1io11L11U ULl. Rll L/I~L1R G/U, R J /U VVJL Vl Llvlllg llllir liaJl.~ 1J
paid annually from the Plan.
J. Early Retirement
Eligibility: Age 55.
Benefit: Calculated in the same manner as Normal Retirement Benefit and payable at Normal
Retirement Date; or payable immediately after reduction by 5% for each year by which
the benefit commencement date precedes the Normal Retirement Date.
Normal Form
of Benefit: Life Annuity, with other options available.
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10/1/00 who elect to contribute an extra 2%, a 3% Cost of Living increase is
paid annually from the Plan.
K. Delayed Retirement
Eligibility: Any time after the Normal Retirement Date.
Benefit: Calculated in the same manner as Normal Retirement Benefit but using the AME and
Credited Service as of the actual retirement date.
Normal Form
of Benefit: Life Annuity, with other options available.
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10/1/00 who elect to contribute an extra 2%, a 3% Cost of Living increase is
paid annually from the Plan.
L. Service Connected Disability
Eligibility: The Plan does not provide for benefits in the event of disability.
Benefit: N/A.
Normal Form: N/A.
GRS
40
COLA: N/A.
M. Non-Service Connected Disability
Eligibility: The Plan does not provide for benefits in the event of disability.
Benefit: N/A.
Normal Form: N/A.
COLA: N/A.
N. Death while employed by the City
Eligibility: Members are eligible for survivor benefits after the completion of 5 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: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10/1/00 who elect to contribute an extra 2%, a 3% Cost of Living increase is
paid annually from the Plan.
O. Other Pre-Retirement Death
Eligibility: Vested terminated members who have reached age 55 and completed 5 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: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10/1/00 who elect to contribute an extra 2%, a 3% Cost of Living increase is paid
annually from the Plan.
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 10 Year Certain and Life 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. A member may elect to receive a lump sum distribution. For those hired
after September 29, 2005, the lump sum will not include the value of the Cost of Living Adjustment.
The Pension Board also reserves the right to pay out beneficiaries with this option when the monthly
benefit amount is less than $100.00.
R. Vested Termination
Eligibility: A member has earned anon-forfeitable right to Plan benefits after the completion of 5
years of Credited Service.
Benefit: The benefit is the Accrued Benefit on the termination date multiplied by the vested
interest. The vested percentage is 50% for those terminating with credited service
between 5 and 7 years, 75% for service between 7 and 9 years and 100% for those
terminating with 9 or more years of credited service. In lieu of the deferred vested
benefit, a member may receive a refund of member contributions.
Normal Form
of Benefit: Life Annuity, with other options available.
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10/1/00 who elect to contribute an extra 2%, a 3% Cost of Living increase is paid
annually from the Plan.
S. Refunds
Return of Accumulated Contributions.
T. Member Contributions
6%, 4%, 2%, or 0% of Earnings as elected by the employee.
U. Employer Contributions
The amount determined by the actuary needed to fund the plan properly according to State laws.
V. Cost of Living Increases
For those retired before February 1, 1982, those hired after 9/30/00, or those hired before 10/1/00 who
elect to contribute an extra 2%, a 3% Cost of Living increase is paid annually from the Plan.
W. Changes from Previous Valuation
None.
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X. 13th Check
Not Applicable.
Y. Deferred Retirement Option Plan
Eligibility: The Plan does not provide for DROP benefits.
Z. Other Ancillary Benefits
There are no ancillary retirement type benefits not required by statutes but which might be deemed a
City of Plantation General Employees' liability if continued beyond the availability of funding by the
current funding source.
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