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PFPB Actuarial Report 10-01-2008 RevisedVILLAGE OF NORTH PALM BEACH FIRE AND POLICE RETIREMENT FUND ACTUARIAL VALUATION REPORT A5 OF OCTOBER 1, 2008 CONTRIBUTIONS APPLICABLE TO THE VILLAGE'S PLANlFISCAL YEAR ENDING SEPTEMBER 30, 2010 (June 3, 2010 Revision) Foster&Foster~,G Actuarial Consultants far Retirement Programs June 3, 2010 Board of Trustees Village of North Palm Beach Fire and Police Retirement Fund c/o Ms. Denise McNeill The Resource Centers, LLC 4360 Northlalce Blvd, Suite 206 Palm Beach Gardens, FL 33410 Re: ViAage of North Palm Beach Fire and Police Retirement Fund Dear Board: We are pleased to present to the Board this revision to the October 1, 2008 report, originally submitted by the prior actuary, of the annual actuarial valuation of the Village of North Palm Beach Fire and Police Retirement Fund. The valuation was performed to determine whether the assets and contributions are sufficient to provide the prescribed benefits and to develop the appropriate funding requirements for the applicable plan year. The valuation has been conducted in accordance with generally accepted actuarial principles and practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial Standards Board, and reflects laws and regulations issued to date pursuant to the provisions of Chapters 112, and 175 and 185, Florida Statutes, as we11 as applicable federal laws and regulations, In our opinion, the assumptions used in this valuation, as adopted by the Board of Trustees, represent reasonable expectations of anticipated plan experience. In conducting the valuation, we have relied on personnel, plan design, and asset information supplied by the Board of Trustees, financial reports prepared by the custodian bank, Salem Trust, and the actuarial assumptions and methods described in the Actuarial Assumptions section of this report. While we cannot verify the accuracy of all this information, the supplied information was reviewed #or consistency and reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the information and believe that it has produced appropriate results. This information, along with any adjustments or modifications, is summarized in various sections of this report. The undersigned is familiar with the immediate and long-term aspects of pension valuations, and meets the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein. All of the sections of this report are considered an integral park of the actuarial opinions. 13420 Parker Commons Bled., Suite 404 • Fort Myers, Florida 33912 • 239-433-5500 • Fax 239-484-0634 • www.foster-foster.com Board of Trustees June 3, 2010 Page Two To our knowledge, no associate of Foster & Faster, Inc. working on valuations of the program has any direct financial interest or indirect material interest in the Village of North Palm Beach, nor does anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the Village of North Palm Beach Fire and Police Retirement Fund. Thus, there is no relationship existing that might affect our capacity to prepare and certify this actuarial report. If there are any questions, concerns, or comments about any of the items contained in this report, please contact me at 239-433-5500. Respectfully submitted, Foster & Fg~ter, Inc. By. ~, ~ ~.,~~ Bradt R. einrichs, FSA, EA, MAAA EnroNed Act ary #08-6901 BRH/mjg Enclosures TABLE OF CONTENTS Section Title Page Introduction a. Summary of Report ~ b. Changes Since Prior Report 3 c. Requirements of Chapter 112, 4 Part VII, Florida Statutes II Valuation lnformation a. Actuarial Assumptions and 9 Funding Methods b. Valuation Notes 11 c. Partial History of Premium 12 Tax Refunds d. Excess State Monies Reserve 13 III Trust Fund 14 IV Member Statistics a. Eligibility for Retirement 17 b. Statistical Data 18 c. Age and Service Distribution 19 d. Member Reconciliation 2Q V Summary of Plan Provisions 21 Vt Governmental Accounting Standards 24 Board Disclosure Information 1 SUMMARY OF REPORT The regular annual actuarial valuation of the Village of North Palm Beach Fire and Police Retirement Fund, performed as of October 1, 2008, has been completed, and the results are presented in this Report. The contribution amounts developed in this valuatian are applicable to the ptanlfiscal year ended September 30, 2010. The contribution requirements, compared with amounts developed in the October 1, 2008 (after plan changes) and in the October 1, 2007, actuarial valuations prepared by Gabriel Roeder Smith & Company (GRS), are as follows: GRS GRS Valuation Date 10/1/2007 1011/2008 10/1/2008 Applicable PIanll=iscal Yr. End 9/30/2009 9/30/2010 9/30/2010 Total Required Contribution % of Total Annual Payroll 24.53% 25.08% 25.73% Member Contributions of Total Annual Payroll 2.00% 2.00% 2.00% Village and State Required Contribution 728,729 780,850 of Total Annual Payroll 22.53% 23.08% 23.73% State Contribution (1) 221,372 221,372 221,372 of Total Annual Payroll 6.84% 6.64% 6.58°/a Balance from Village (1} 507,357 559,478 of Total Annual Payroll 15.69% 16.54% 17.15% (1) State Contribution shown is the amount received during the year ending December 31, 2009. The Village may use up to $230,696 in State Contributians for determining its minimum fiunding requirements. For budgeting purposes, the required Sponsor Contribution (Village and State) is 23.73% of Pensionable Earnings for the fiscal year ending September 30, 2010. The precise Village requirement is the applicable Sponsor percentage, less actual Sta#e Contributians (up to the maximum $230,696). 2 As can be seen, the Total Required Contribution has just slightly increased from the original valuation when expressed as a percentage of Total Annual Payroll. This increase is a result of the change made to the Actuarial Value of Assets. Please see the following page for more information regarding this revision. The balance of this Report presents additional details of the actuarial valuation and the general operation of the Fund. The undersigned would be pleased to meet with the Board to discuss the Report and answer any questions concerning its contents. Respectfully submitted, FOSTER & FOSTER, INC. Bradle inrichs, FSA, EA By: D ug s H. oze 3 Plan Changes. Since .Prior Valuation. Ordinance 2008-18 was passed and effective November 13, 2008, which provides for the following changes to the Plan: 1} Normal Retirement Date was changed from age 55 to the earlier of age 55 or age 52 with 25 years of service. 2) One-year waiting period far eligibility was eliminated. 3) Minimum Chapter 175!185 benefit accrual rate was met. The multiplier is 2.5% #or the first 24 years of service, 0% for the service between 24 and 30 years and 2.0% for each year in excess of 30 years. Previously, it was 2.5% for all years of service, up to a maximum of 60% of Average f=inal Compensation. 4} Lump sum optional form of payment was eliminated. Per the actuarial impact statement and calculations provided by the prior actuary, these provisions are fully funded by the use of the Chapter 1751185 Excess State Monies as of September 30, 2008 in the amount of $627,925 and additional State monies in the amount of $92,496. Actuarial Assum tionlMethod Chan es Since Prior Valuation There were no changes made to the actuarial assumptions or methods since the prior valuation, other than the following: 1) Custodial expenses paid to Salem Trust are considered investment related and, therefore, are not included in the calculation of the Administrative Expenses for funding purposes. The prior actuary assumed they were Administrative. 2} The method for determining the Actuarial Value of Assets was changed to comply with Actuarial Standards of Practice {ASOP) Number 44. Previously, the method used was a 5~year smoothing of the capital appreciation. in order to avoid a bias per the ASOP, the Actuaria! Value of Assets has been set equal #o the Market Value as of October 1, 2008. The new method going forward will be a 5-year smoothing of the difference between the Actual and Expected Market Value of Assets. The original October 1, 2008 valuation included a smaA bias due to not resetting the Actuarial Value equal to Market Value prior to implementing the new smoothing technique. Please note that the October 1, 2008 funding results summarized throughout this report, both the original and the revision, include all plan changes effective November 13, 2008. 4 C+umparative Summary of Principal Valuation Results GRS GRS 10111200$ 10/1/2008 10/1/2007 A. Participant Data Number Included 50 50 46 Actives Service Retirees 4 4 3 Beneficiaries Terminated Vested 0 12 0 12 0 11 Disability Retirees 1 1 1 Total 67 67 61 Total Annual Payroll 3,364,295 3,253,109 3,110,081 Payroll Under Assumed Ret. Age 3,364,295 3,253,109 3,110,081 Annual Rate of Payments to: Service Retirees 81,218 81,218 18,163 Beneficiaries Terminated Vested 0 219,198 0 219,199 0 193,799 Disability Retirees 38,585 38,585 37,940 B. Assets Actuarial Value 10,045,838 10,376,733 9,673,520 Market Value 10,045,838 10,045,837 10,849,494 C. i_iabilities Present Value of Benefits Active Members Retirement Benefits 9,736,103 9,431,846 9,616,784 Disability Benefits 933,306 925,570 1,054,966 Death Benefits 150,694 158,039 195,193 Vested Benefits 582,271 701,681 519,154 Refund of Contributions 37,524 34,783 29,854 Service Retirees 2,420,686 2,492,730 1,302,543 Beneficiaries Terminated Vested 0 2,128,414 0 2,085,718 0 '!,739,314 Disability Retirees 567,717 571,977 571,818 Excess State Monies Reserve 0 0 444,983 Total 16,556,715 16,402,144 15,474,609 5 GRS 10/1/2008 10!112008 C. Liabilities - (Continued) GRS 10!112007 Present Value of Future Salaries 28,895,259 27,889,878 27,027,461 Present Value of Future Normal Costs (Aggregate Basis) 6,510,877 6,025,411 5,801,089 Present Value of Future Normal Costs {Entry Age Basis) 4,952,283 4,682,808 4,193,064 Normal Cost {Aggregate, Level Percent) 758,066 702,811 667,538 Present Value of Future Member Contributions 577,905 557,798 540,549 Actuarial Accrued Liability {Aggregate Basis) 10,045,838 10,376,733 9,673,520 Actuarial Accrued Liability (Entry Age Basis) 11,604,432 11,719,336 10,838,562 Unfunded Actuarial Accrued 0 0 0 Liability (UAAL) D. Actuarial Present Value of Accrued Benefits Vested Accrued Benefits Inactir-es 5,116,817 5,150,425 3,613,675 Actives 3,812,561 4,453,395 4,453,429 ntributions C b M 429 283 283,429 302,658 er o em , Total 9,212,807 9,887,249 8,369,762 crued Benefits d A # N 865 941 205,844 762,157 c e on-yes , Total Present Value Accrued 10,154,672 10,093,093 9,131,919 Benefits Increase {Decrease) in Present Value of Accrued Benefits Attributable to: Plan Amendments 0 511,421 0 Assumption Changes 0 0 649 337 New Accrued Benefits 0 , 663) (594 Benefits Paid 0 , 767 706 Interest Other {Change in Actuary) 61,579 , 0 Total: 61, 579 961,174 6 GRS GRS Valuation Date 10/1/2008 10/1/2008 10/112007 Fiscal Year Ending th bl t li 9/30/2010 9/30/2010 9!3012009 e e o ca App E. Pension Cost Normal Cost (with interest) % of Total Annual Payroll* 23.43 22.57 22.42 Administrative Expense (with interest) of Total Annual Payroli* 2.30 2.51 2.11 Payment Required to Amortize Unfunded Actuarial Accrued Liability over 0 years (as ofi 1011108) of Total Annual Payroll* 0.00 0.00 0.00 Total Required Contribution % of Total Annual Payroll* 25.73 25.08 24.53 Expected Member Contributians of Tatal Annual Payroli* 2.00 2.00 2.00 Expected Village & State Contrib. of Total Annual Payroll 23.73 23.08 22.53 F. Past Contributions Plan Years Ending: 9/30/2008 I~ Total Required Contribution 777,591 Village and State Requirement 715,784 Actual Contributions Made: Members 61,807 Village .577,584 State 321,142 Total 960,533 G. Actuarial Gain {Loss) NIA * Contributions developed as of 1011108 are exp ressed as a percentage of projected annual payroll at 1011108 of $3,364,295 7 H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liabiiity as of: Projected Unfiunded Year Accrued Liabiii NIA -Aggregate Actuarial Cost Method I. (i) 3 Year Comparison of Actual and Assumed Increases in Pensionable Compensation Actual Assumed Year Ended 9/30/2008 4.7% 6.0% Year Ended 9/30/2007 9.8% 6.0% Year Ended 9/30/2006 11.2% 6.0% (ii) 3 Year Comparison of Investment Return on Actuarial Value Actual Assumed. Year Ended 9130/2008 0.7% - $.0°/° Year Ended 9/30/2007 9.1 % 8.0% Year Ended 9/30/2006 5.0% 8.0% r (iii} AWerage Annual Payroll Growth - i I i (a} Payroll as of: 10!112008 $3,364,295 ~ ~ 10/1/1998 1,552,984 (b) Total Increase 116.6% ~~ (c) Number of Years 10.00 (d) Average Annual Rate 8.0% 8 Statement by Enrolled Actuary This actuarial valuation was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and in#ent of Part VII, Chapter 112, Florida Statutes. There is no benefit or expense to be provided by the plan andlor 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 regoired contribution rates have been taken into accourit in the valuation. A copy of this Report is to be furnished to the Division of Retirement within 60 days of receipt from the actuary at the following address: Patricia Shoemaker Municipal Police and Fire Pension Trust Funds Division of Retirement Post Office Box 3010 Tallahassee, FL 32315-3010 Mr. Keith Brinkman Division of Retirement Bureau of Local Retirement Systems P. O. Box 9000 Tallahassee, FL 323'15-9000 SECTION II VALUATION INFORMATION 9 ACTUARIAL ASSUMPTIONS AND FUNDING METHODS Assumptions Mortality Rate 1983 Group Annuity Mortality Table. Disabled members set forward 5 years. Interest Rate 8% per year compounded annually, net of investment related expenses. Retirement Rates The assumed rate of retirement is 5.0% for each year of eligibility for early retirement. Below are the Fates assumed once the member has attained normal retirement eligibility. Number of Years After First Eligibility Annual Rate of For Normal Retirement Retirement 0 60% 1 4D°i° 2 40% 3 4D% 4 40% 5+ 1D0% Disability Rate See table on the following page. 75% of disabilities are assumed to be service-incurred. Termination Rate See table on the following page. Salary Increases 6.0% per year until the assumed retirement age. Post Retirement COLA 3% per year. Payroll Growth NIA, Administrative Expenses Average of actual administrative expenses over the previous two years. 10 ACTUARIAL ASSUMPTIONS AND FUNDING METHODS (continued) % Becoming Disabled % Terminating A_ge During the Year Duringthe Year ZO 0.14% 9.00% 25 0.15% 8.55°/a j 30 0.18% 7.50% 35 0.23% 5.70% 40 0.30°/a 3.9Q% 45 0.51 % 2,40% 50 1.00% 1.20% 55 1.55% 0.45% ~ ~ ~ 60 0.00% 0.30% Fundin Method Aggregate Actuarial Cost Method ,F 11 VALUATION NOTE Total Annual Pa roll is the projected annual rate of pay for the fiscal year preceding the valuation date of all covered members. Present Value of Benefts is the single sum value on the valuation date of ali future benefits to be paid to current Members, Retirees, Beneficiaries, Disability Retirees and Vested Terminations. Narmal Current Year's Cost Rate is determined in the aggregate as the ratio of (a} and (b} as fiollows: (a} The present value of benefits far all Plan participants, Tess the actuarial value of assets. (b) The present value of future compensation over the anticipated number of years of participation, determined as of the valuation date. The Narmal Cost dollar requirement is the ratio of (a} and (b}, multiplied by the Total Annual Payroll as of the valuation date. Aqgreaate Actuarial Cast Method (Level Percent of Compensation} is the method used to determine required contributions under the Plan. The use of this methad involves the systematic funding of the Normal Cost (described above}. Total Required Contribution is equal to the Normal Cost plus an adjustment far interest a according to the tinning of sponsor contributions during the year. 12 PARTf~1L HISTaRY O.F PREMIUM TAX REFUNDS Received During increase from Fiscal Year Amount Previous Year 1989 52,$66.00 1990 49,647.00 -6.1 1991 54,960.00 10.7°/a 1992 51,832.00 -5.7% 1993 49,897.00 -3.7% 1994 54,214.00 $.7% 1995 58,926.00 8.7% 1996 55,501.00 -5.8% 1997 76,514.00 37.9% 1998 92,462.12 20.8°/a 1999 80,911.74 -12.5% 2000 78,246.11 -3.3% 2001 108,200.$7 38.3°/a 2002 134,40$.43 24.2% 2003 159,943.14 19.0% 2004 203,317.14 27.1 2pQ5 209,222.36 2-~% 2006 233,640.77 11.7% 2007 325,961.92 39.5°/a 2008 321,142.12 -1.5% 13 1 k O O O O O O O O N ~ O C~ CD r ~i C N r ~ CD ~ Q1 O 00 ~ ~ C O O d ~ dC~ N ~ ~ tr~Y OC? ~ ~ N (U a0 cD C'7 I~ 0 C~7 C l j ~ ~ ~ N [~rl d' ~ d~'1 ~ O '+ . ~ ~ G} a ~• 41 c+) C~ ~ CD M ~ ~ ~ ~ c}• N ~ C~ ~l O h d' C O 0) 01 O C37 C7? ~ fU 7 ~ O O ~ ~ N ~ ~ M N 00 M 0) 07 ~D I~ ~!] ti U7 h ify ti ~ ti 1A ~ a ~ ~ kti r M tCl CD O N 1~ 1~ 1~ 1~ ~ LL d ~- ~ t!a M N +- = Q C d• d O O ~!) CO O CA CD r N ~ ~ r d O r CU N Liz CD N t!7 +~ O 417 M N O Ln OC1 r l(j r O ~~~ l~[3 O ~ 4 Y M ~ N ~ M Q~ ~ ti e r r ti co ~ m cD vi r ~ N N M ~ d' ~ O O L} '~ C ~ LL y,,, O O O O O O O CD aG C7) r M ~ ~ O ~ ~~ a00 ~ CM[) O N r ~ ~ O o O o O a O o O 0 o ti a e~ o ~ ~ ~~''~~ ~'`~~ a ~ ~ N N ~ Cf0 ~ d' r7 d W d ~ 4 d' ~ ' ' CD 41 y N N M O O O ~ {~ C 7 r r X (~ y ~ a7 N a7 N CC) ~ O O d7 flD C7 c~ d' N M C1O CO N ~ M ~ ~' ~ ~ ~ N C D O O +J O ~ ~ ~ ~ CC) O 0 ~' 07 tD to M I~ O O O N ~ + + N _ tfj CO Lf] r d' ~ f~ [h a-- r (D CI Ul "~ N ^ ~ ~ 0(7 CID C10 OC) r 63 In O N ~ ~ v ~ ~ ~ __ N p ~ ~ CV kj7 O O N O7 O7 O CQ O C N O ~ IS O. O~ Q ~ N N <-' N N N O ri' 00 ~ ~ CD N ~ ~f) ~1 QO d• [''7 M O d• to ~ CU O ~ ~ . ` (~ as ~ N ~N (,1 ~ ~ ~ Nd6 r ~ ~ ( j 5 S C °s7 U N ~ ~ p ~C1 ~ CD r d' ~ r N N Ch O I~ ~ M ~ N 00 1. k. 1 N LJJ (~ ~ ~ N qy ~ ~ ` D O ~ O N E N ~ OS ~ CU N ~ N CV O CO ~ r O N ~ N I ~ *' ~ ct N ~ - 1.7. ~ ~ .~ V ~ ~ ~ C~k t 1t Cb 1~ C/) C ~ X ~ (n +`'' Q N d' CV O ' Cld ' 1.(j N lS] O 'ct D7 M QS N ~ •ti ~- ~? ~ ~ ~ n- LL1 ~ N N N ~ rl CD ti ~ r R1 N ~ c ~ ~ U a°. ~cn~°- m ~ ° ~ o Z ~ ~ p O O O O O O O O O O O O O O O O O O O O O O O O ~ Z ~ ~ ~= ~ ~ ~ p~ N ~ y O O O C7 O O d O O O O O ~ NO N ~ ~ ~ ~ ~ N w (~ X ~ ~ ~ ~ ~ N F ~ O d O O O O i"7 k.[) r OQ CO ~ O O O O O O N ~f ~ O N ~ ~ C f•7 C7 M ['~ [+7 M 00 t0 f~ 00 Cp (Q ~~ 01 LTi O d C3] 6? N CD r d 0 ~? N O N N N N N N CD cfl f~ 07 ~ ~ V- ~ CND ~ CND CND ~ ~ a~0 ti OrD 007 OOi ~- ~ O O Cp f r CD c+1 t~ O f~ N I~ M N lf7 ~ •-- ~ a0 O ~OC) ti p ~-~' [G N 7 M ~ Q7 ~ I~ N CO u7 r 0 l~ Da C10 N (D CD l+ r 00 67 CD a0 '~ ~ ~ N CD N O N t7 CD CD ~ 07 ~ ~ ~ ry-. Q ~ ~ aj M N • 00 47 OD ~ f~ C10 d' {` r 00 d ~ O d C ~ ~ ~ U r N M ~ ~ ~` ~ O Q7 O O O O ~ O O O O rn rn o 0 0 o a 0 0 o a r r N N N N N N N N N SECTION 111 TRUST FUND 14 Village of North Palm Beach Fire and Police Retirement Fund BALANCE SHEET September 30, 2008 ASSETS COST VALUE MARKET VALUE Cash and Cash Equivalents: Money Market 922,462.68 922,462.69 Pending Trades Receivable 19,363.46 00 163 229 19,363.46 229,163.00 Cash . , Total Cash and Equivalents 1,170,989.15 1,170,989.15 Receivable: Member Contributions 'tn Transit 1,243.62 1,243.62 City Contributions in Transit 8,077.42 38 109 8,077.42 109.38 Buyback Contributions State Contributions . 321,142.12 321,142.12 Accrued Income 57,119.68 57,119.68 Total Receivable 387,692.22 387,692.22 Investments: U S Govt & Agencies 1,836,925.40 1,857,760.78 Gorporate Bonds 1,418,945.23 50 133 547 5 1,245,757.80 5,509,154.02 Common Stocks . , , Total Investments 8,803,004.13 8,612,672.60 TOTAL ASSETS 10,361,685.50 14,171,353.97 LIABILITIES AND NET ASSETS Liabilities: Payable: Unpaid Investment Expenses 4,165.31 141 69 7 4,165.31 7,141.69 Unpaid Administrative Expenses Prepaid City Contribution . , 114,208.88 114,208.88 Total Liabilities 125,515.88 125,515.88 Net Assets: Active and Retired Members' Equity 10,236,169.62 10,045,838.09 Total Net Assets 10,230,169.62 10,045,838.09 TOTAL LIAB1LlTIES AND NET ASSETS 10,361,685.50 10,171,353.97 Village of North Palm Beach Fire and Police Retirement Fund CHANGES IN NET ASSETS AVAILABLE FOR BENEFLTS September 30, 2008 Market Value Basis INCOME Contributions: Member 59, 026.06 Buy-Back 2,781.00 City 577,583.88 State 321,142.12 Total Contributions Earnings from Investments ~ ~ i Interest & Dividends 349,646.00 4 # ~ f Net Realized and Unrealized Gain {Loss) (1,388,395.90} Total Earnings and Investment Gains EXPENSES Administrative Expenses: Investment Related` 67,018.00 Other 63,758.00 Total Expenses Distributions to Members: Benefit Payments 56,974.15 Lump Sum Retiree Distributions 526,007.00 Return of Contributions 11,681.92 Total Distributions Change in Net Assets far the Year Net Assets Beginning of the Year Net Assets End of the Year *lnvestment Related expenses include investment advisory, custodial and performance monitoring fees. 15 960,533.06 (1,038,749.90) 130,776.00 594,663.07 {803,655.91) 10, $49,494.00 10,045,838.09 16 Village of North Paim Beach Fire and Police Retirement Fund CHANCES IN NET ASSETS AVALLAB.LE .FOR BENEFITS September 30, 200$ Actuarial Asset Basis INCOME Contributions: Member Buy-Back City State Total Contributions Earnings from 1n~estments Interest & Dividends Change in Actuarial Value Total Earnings and lnr-estment Gains EXPENSES Administrative Expenses: Investment Related* Other Total Administrative Expenses Distributions to Members: Benefit Payments Lump Sum Retiree Distributions Retum of Contributions Total Distributions Change in Net Assets for the Year Net Asse#s Beginning of the Year Net Assets End of the Year** *In~estment Related expenses include investment advisory, custodial and performance monitoring fees. **Net Assets may be limited for actuarial consideration 59,026.08 2,781.00 577,583.$8 321,142.12 349,646.00 (212,421.90) 67,018.00 63,758.00 56,974.15 526,007.00 11,681.92 960,533.06 137,224.10 130,776.00 594,663.07 372,318.09 9,673,520A0 10,045,838.09 SECTION IV MEMBER STATISTICS 17 ELlGlE3ILTY fOR RETIREMENT Members are eligible for Normal Retirement based upon the following criteria: 1) Attained Age 55 2) Attained Age 52 with 25 Years of Credited Service Members are eligible #or Early Retirement based upon the #ohowing criteria: 1) Attained Age 50 As of the date of this valuation, the following list of Members are eligible for: Normal Retirement ' ~ DIKINSON GARY, KENNEDY WILLIAM, MILDWORM KENNETH, ~ SMITH WILLIAM J. SR, WARREN, GEORGE, Earl Retirement MAKE HENRY, MATTING, SALVATORE, VAN DEUSEN SCOTT, 18 STATISTICAL DATA Number Average Current Age Average Age at Employment :~ ,, Average Past Service Average Annual Salary 1 oiv2aa7 1 ail i2oas 46 50 39.9 39.4 30.9 32.4 9.0 7.0 $67,610 $67,2$6 19 AGE AND SERVICE DISTRIBUTtON PAST SERVICE AGE 0 1 2 3 4 5-9 10-14 15-19 20-24 25-29 30+ Total 15-19 0 0 0 0 0 0 0 0 0 0 0 0 20-24 2 0 0 0 0 0 0 0 0 0 0 2 25 - 29 1 0 3 3 1 0 0 0 0 0 0 8 30-34 1 0 1 3 1 1 0 0 0 0 0 7 35 - 39 1 D 2 0 1 3 3 0 D 0 0 10 40-44 3 0 1 0 0 2 0 0 D D D 6 45 - 49 0 0 0 1 0 3 1 0 2 0 0 ~ 50 - 54 1 0 0 ~ 0 1 1 0 2 0 D 5 55-59 1 0 0 0 0 1 0 0 0 0 1 3 60 - 64 0 0 0 0 D 1 0 1 D D 0 2 65* 0 0 D 0 0 0 0 0 D 0 0 0 Total '10 0 7 7 3 12 5 1 4 4 1 50 20 VALUATION PARTICIPANT RECONGILlATION 1. Ac#ive lives a. Number in prior valuation 1011107 46 b. Terminations 1 I i i. Vested (partial or full) with deferred benefits ~ ii. Non-vested or full lump sum distribution received c. Deaths 0 i. Beneficiary receiving bene#its No future benefits payable ii 0 . d. Disabled 0 2 e. Retired 1 f. Data Correction ': , g. Continuing participants 39 11 h. New entrants 50 i. Total active life participants in valuation i r-~ 2. Non-Ac#ive lives (including beneficiaries receiving benefits} ~ Service Retirees, Vested Receiving Receiving Receiving Death Disability Vested Benefits Benefits Benefits Deferred Total a. Number prior 3 0 1 11 15 valuation J b. I n 2 0 0 1 3 c. out 1 a 0 ° 1 I' d. Number current 4 0 1 12 17 valuation SECTION V SUMMARY OF PLAN PROVISIONS 21 SUMMARY OF PLAN PROVISIONS (Through Ordinance No. 2008-18} Eli ibili Gredited Service Sala Avers a Final Com ensation Member Contributions Viliaae and State Contributions Normal Retirement FuII-time employees who are classified as Police Officers or Firefighters participate as a condition of employment. Total years and fractional parts of years of employment with the Village as a Police Officer or Firefghter. Gross Compensation, excluding bonuses, sick and Vacation pay, but including overtime. Average Salary far the 5 best years of the 10 years immediately preceding retirement or termination. 2.0% of Salary. Remaining amount required in order to pay current costs and amortize unfunded past service cost, if any, as provided in Part Vli, Chapter 112, F.S. Date Earlier of: 1) age 55, regardless of Credited Service, or 2} age 52 and 25 years of Credited Service. Benefit 2.5Q% of Average Final Compensation times Credited Service, up to 24 years; plus 0% of Average Final Gompensation times Credited Service for each year after 24 years up to 30 years; >t lus 2.0% of Average Final Compensatian times Credited Service for each year in excess of 30. Form of Benefit Ten Year Certain and Life Annuity (options available). 22 Earl Retirement Eligibility Age 50, regardless of Credited Service. Beneft Accrued benefit, reduced 3°1° per year that the benefit commencement date precedes the Normai Retirement Date. ' Vestin Schedule 100% after 10 years of Credited Service. Benefit Amount Member will receive the vested portion of his (her) accrued benefit payable at the o#herwise Early (reduced) or Normal Retirement Date. Disabili Eligibility Service Incurred Non-Service Incurred Covered from Date of Employment. 10 years of Credited Service. Exclusions Disability resulting from use of drugs, illegal participation in riots, service in military, etc. Benei'!t Benefit accrued to date of disability but not less than 42% of Average Finai Compensation (25% for. Non~Service Incurred). Duration Payable for life (with 120 payments guaranteed) or until recovery (as determined by the Board). Optional forms of payment are available. Death Benefits Pre-Retirement (while employed} Vested Monthly accrued benefit payable to designated beneficiary for 10 years at otherwise Early (reduced) or Normal (unreduced) Retirement Date. Non-Vested Refund of accumulated contributions. 23 Death Benefits (continued) Pre-Retirement (after employment) Eligibility Vested terminated member who has reached age 50. Benefit Benefit payable as if member re#ired on the date of death, selected a 50% Joint and S-~rvivor annuity, and then passed away, with 50% of the benefit then continuing to the survivor for life. Post-Retirement Cost of Livin Increases Board of Trustees Benefits payable to beneficiary in accordance with option selected at retirement, Up to 3% increase or decrease effective each October 1ST in accordance with the Consumer Price Index, applied to all types of benefits. Two Members shall be Fire employees, and two shall be Police employees, all elected by the Village Fire and Police employees. The other Member, who will be the Chairman of the Board, must be a resident of the Village and shall be selected by the Village Council. SECTION VI GOVERNMENTAL ACCOUNTING STANDARDS BOARD DISCLOSURE INFORMATION 24 °~~~~~ 9 O 4 O O N ~._~ ~ ocr,N~nN noo~~ra~ ' O ~ O~ ~ ~ ~ ~ rOLA1~N ~I~~CD~ ~ c~ a~ v ~ cn w H ~n~ <-~~~oo ~~ w O ~p OD r M N ~ C {p ~ m Z Q3 O o 0 o a o 0 0 0 m ~- ~ O O Ob tL7 l~ N rQ]ONr ~""' ~ ~, +Y ~ OOI~N1.l7CdCD ~~ ~ ~ N j,V ~ ~'' r[4'd_CDM ~~ ` ~~ ` V OOCfle-rNl~ 0 O C ~ V ~ _ ~ U~ MNNNN ~ ~ ~- + ~ C r C OO OO I- ~ ~ [] U T ~~ . Q ~ ~ ~ ~ ~ U ~~ ~ ~ ~ ~ U ~ ~ ~ ~x N Q op "'' ~3'~ ° c o 0 0 0 "-` ~~'~ ~ ooaomN~ ~~ U O ~ (O ~ M MN t"f~~Nr" ~ O W Z C O 0 0 00 O W N NNNCVtr7d:N ~ ~ ~ M ti ^~~c~ F-~OC c~ v a W ~ ~~ oOODODI~oO RS ~ - ¢ ~ ~ ~ O c rl o rrrrr za ~ ~ ~ ~~ p[~ ~ ^ .L ~- {n -~ ~Z U~ O W U G Z Q 0 ~ W Q ca a~ oC c~ m V ~ F -~ ~ L7 -o ~ } ~ C7 ~Z ~' ~ Z ~~M~~ ~' ~ Q rCOd'O67tS~1` N Z O v~a~oooMOOto ~; W ~ ~ ~L ! ~ J ~J ~ OO N N d' ~ ~ N 4' ~ ~ W N ~ O~ ~ r r r O Ln f~ Ln [ f~~C')M~N r ~ ~ Zp =,~ L ~ ~¢~ ~ OODOhOp c~~ot~rn . c~ w ~~ O . 3 d'tn'~1'NCV 0 U ~ O Q C =~ `~ _ r r r r Q03 0 = ~~ C~ QQ ~~ ~ W ~ ~ ~N N F- ~ O U ~ - ~ J a ~ .«~ W ~ ... W LL ZW O ~ O = N W i~ti'CO ' ~ ~ Qa N Cn rC~4rO1s7C0 ~OO~W OCD ~ ~ W ~ ~ U _ ~ }CO Od ~ Ln 00 1` f4 r ~ ~ O ~ (fl r Op 0O d M 00 ~ z 'a +, O ~ .~. CO 'd' N i~ C~ M ~ -~-~ ~ . O y-. ~ O Q ~ C'n ~ O tS7 d O O ~ W ~~ ~ ?U~Jg ~,~ ~ O ON~~CQ ~ ~fn ~ c ~~ D~ X}MM~ ~C ~ ~~ ~ Q ~ ~~R C OOC00~1~ s0.. O m ¢ O c ~ U (~ O. ti Q a W O. pp ~ C3_ U r ~ ~ M ' Ui M Z N ~ ~ L a ~ L O O ~c n N~ U n. L V O ~ ~ h M O CV MCO~t17~ V O N ~ !.L O a ~ U N~ _ 1S7Mr07M N td W M L ~ O' ~"~ ~ ~ O to 'L y-' _ M N O r ~ NrO1`M ~ O` E-"' --~ ~ ~ lU L N~ i~(O ~fl~MNr Q? Q b ~ N N~ ~ ~ ~ ~ NM(Di~CO ~ O ~ ~ ~ 0000000 Q O O C [ l1 Q ~ Q ~OOI~COCt) W G 4 } liJ ~iNNt~ V Nc V C C N 2 4 - b ~ CA C!] ~ ~ O ~C~li")~'M •~ ~~ O_ O O d O_ r r r r r ~ ~ ~ OOOCJC7 V _ ^ CC ` ~ . ~ ~ 00000 25 D15CLQSURE INFORMATION PER STATEMENT N0.27 OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD ANNUAL PENSION COSTS AND RELATED INFORMATION Contribution rates as of 9130108 Village and State 23.0$% Plan Members 2.00% Actuarially Determined Contribution 715,784 Contributions made 715,784 Actuarial valuation date 10/1/2006 Actuarial cost method Aggregate Amortization method NIA Remaining amortization period NIA Asset valuation method Market Value Actuarial assumptions: Investment rate of return 8.0% Projected salary increase 6.0% ~` Includes inflation at 4.0% Post Retirement COLA 3.0% THREE YEAR TREND INFORMATION Actuarially Percentage Year Determined of APC Ending Contribution Contributed 9/30/2008 7 ~ 5,784 100% 913012007' S39,B51 100% s13a2oos o90, ~ ss 1 oa°i° Net Pension Obligation (179,119) (186,453} (194,587) * Annual Pension Cost from Village and State sources. 26 DISCLOSURE INFORMATION PER STATEMENT NO: 27 OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD DEVELOPMENT OF NET PENSION OBLIGATION (NPO) This municipal Defined Benefit Plan has been subject to the minimum fund`mc standards since the adoption of the "Florida Protection of Public Employee Retirement Benefits Act" {Part VII of Chapter 112, Florida Statutes) in 1980. Accordingly, the sponsor has funded the actuarially determined required contrib for all years from October 1, 1987, through the transition date, October 1, 1997. Thus, the NPO on October 1, 1997, is 0. The recent development of the Net Pension Obligation is as follows: 9130107 9130108 Actuarially Determined Contribution (A) 539,651 715,784 Interest on NPO {15,567) (14,916) Adjustment to (A) 23,701 22,250 Annual Pension Cost 547,785 723,118 Contributions Made 539,851 715,784 Increase in NPO 8,134 7,334 NPO Beginning of Year (194,587) {186,453) NPO End of Year (186,453) (179,119)