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06-17-1996
Otto :i i`+ .c ? _• it '.1". _ ' ? ? : '' _ . f, ,} _s :'1 •, • 1. '°??' _ .° ? ' . : ? l ? r, UZI I,• t I11 t r ?? 11 f r -1 ."f F ? '. F•? ?" "?'. E: 4`` :.': I s . . 'I •'._ ' .. I. .. t?k 0 },? tto 4 Aviv! .f,y .I '{ ?!_ ,.i=,?'k '•+r.?'es[??'{ iEJ}? ??4? '[A _': - y1.\?;'•:y",.?i ii- ..+e-j' i?? "ter .1 y ?e: ;<h:I. ?I .?y' ..f ?'F+?t=` :i;? v ?t? xsj,,.?rc.; ?•a'. •?11 ?Y`.°.•,tri ??r:'?., .F, ?t.. Kj:,-r i•' ,r ,.:.: ,'; ??!! ?, ! t?? ??, ]'d Vqq"i"! 'o` :3;:`t :r, •t" ,?e rH:-'<' :'?' !.4: ;., .... .A,., i.l ?.-t.,?l,•I.. .;,{?_^ i.f ? Y •r i.?s `°1'' ?,3', !' .? 'Y ,tjr?} y.. F "F ?.i."'G?. ?'1 ?'y s-f?a? t? ?- ,n,.-"::: r,? K!_1, 5 !<?'?.i..'r ?,?, _4`.` I t . '.P.? . Nt, s{'C r' i; •tr. s s; . ,;f.,...t y,.?;:.; . i:fc. , s e;. ,yet r ''rl tli':,,' ?! I ?y?yy77..t ..f$i eS9K;',..?, ?'L=,'... ,. ,r,`t s;t.i wl r?r..t .,p ?' •?t. .z; ii%r" s '1?::'t°1;.;1? -•5 -;'t.e -r Mf •?: „+s Y?t' :?i'1: e,? ,??+ ?L? ?.< -?7 ., r. ,?. ? ?,ri'. .c:,e,1 `';3•• ?? 116? ., ;?L,Z .s-, ,c :l:.?° ?+f+_ It>„ °re; ?i• r,'.: ek ?r:?r :; 'j'?'?'• 1:f`tf,l`.;: ensio-soft ea/P . r , ACTION AGENDA' Board of Trustees of the "Employees' Pension Fund June 17, 1996. . ` 1. Call to order 1. 9:10 a.m. ' 2. Approval of Minutes 2. Approved 'as submitted. . of 6/3/96- 3. 'Accept Actuary's Report for •3. Report accepted.. • Erriployees' Pension Plan for plan year beginning 1/11/96 which requires city contribution of at least 6% (est. $2,652,538) of compensation of all employees participating in the plan with the difference between:the Florida Statutes required contribution of - $4,960,244 and the amount contributed by the City being deducted from the existing credit ' balance of the plan (currently ' $4,801;302) 4. Approve expenditure of $6,000 for 4. Approved, Wittner & Company to revise & analyze a RFP for pension administration services; prepare a recommendation to staff & Commission; and coordinate transition & implementation of the E• outsourcing 5. Other Business: 5, None. 6. Adjournment: 6., 9:40 a.m. SUBJECT: Trustees of the Employees' Pension Fund agenda Cover Memorandum item #: Meeting Date: 51 Actuary's Report for the Employees' Pension Plan for the plan year beginning 1/1/9G RECOMMENDATION/MOTION: Accept the Actuary's Report for the Employees' Pension Plan for the plan year beginning 1/1/96 which requires a City contribution of at least 6% (estimated, $2,652,538) of the compensation of all Employees participating in the plan with the difference between the Florida Statutes required contribution of $4,960,244 and the amount contributed by the City being deducted from the existing credit balance of the plan (currently, $4,801,302) © and that the apropriate officials be authorized to execute same. BACKGROUND: Actuary Report: The attached actuarial valuation and report as of January 11 1996 calls for a total required contribution $8,496,961 (page 6). Employees are currently contributing 8% of salary, anticipated to be $3,536,717. The difference to be contributed by the City of $4,960,244 is an increase of $1,218,340'from last year. The increase in the City's required contribution compared to 1995 is primarily due to the changes in plan provisions effective January 1, 1996. Benefits payable under the Plan were increased from 2.5% of average compensation per year of service to 2.75%. The plans experience in 1995 was very favorable, largely due to its investment performance. As a result, the funded status of accumulated plan benefits increased from 131% in 1995 to 140% in 1996 in spate of the increase in benefits. Investment Returns: The Employee Pension Plan had a return of over 23% in 1995. Since the City uses a smoothing approach to asset valuation, the difference between the actual return of 23% and the assumed rate of 7% is spread over 5 years. Based upon this method, our actuarial return for 1995 was 9.14% and $22,000,000 of existing investments are not recognized in determining the 1996 funding requirement. This means that over the next four years, one--fourth of this $22,000,000 will be recognized each year in Reviewed by: Originating Department: Costs: Commission Action: Legal N/A Finance ? Approved Budget -,k-j 1__Y Total ? Approved w/Conditions Purchasing IA User Department: ? Denied Risk Mgmt. NIA Current Fiscal Year ? Continued to: Is NIA Funding Source: ACM ? Capital '? C_,. Improvement; Other Advertised: ? Operating: Date: O Attachments: _ Clthar: C5 Paper: 1996 Actuary's Report Submitted by: ? Not Required Appropriation Code Pagos 7 and ? of Callan Report Affected Parties: ? Notified ? None City Manager ? Not Required 10 Printed on recycled paper F?.a s1..i ??}.: ='3f,1•s;t-;y;h'.':'y S?":1 ",xl',?..yrr ?.'ai. .. .»..F... ._... . . ., -'r: -4' •" .•I .. ,. I !"°-aiddition to the.Plan's ordinary investment return. If this $22,000,000 .-were included in determining'.the'1996 funding requirement, it-would reduce the city's funding.requirement from $4,960,000 to $2,202,000. _QZLedj&_. Balance:.. Having a credit balance is not a normal occurrence in a pension plan. The. pension,fund credit balance.was first established in 1991 when actual contributions were in excess of those determined to be required. 'Excess' contributions occur when the Florida Statute required contribution is less ?'• -than the plan required contribution. The credit balance continued to it :increase in 1992 and 1993. In 1994 and 1995, due to increased contribution requirements, approximately $250,000 and $1.2 million, respectively was " deducted from the credit balance. The current pension fund credit balance is approximately,$4,801,302. Interest earnings on the credit balance are added to the balance 'each year. The history of.the amount of the credit balance is as follows: 1/1/91 $865,313 1/1/92 925,885 1/1/93 31,865,373 1/1%94 4,894,904 1/1/95 5,304,094 1/1/96 4,801,302 . ¦ . ACTUARY'S REPORT FOR THE CITY OF CLEARWA'rER E*MPLOYEE S' PENSION PLAN AS OI:.JANUARY I, 1996 I,I.'g.;'! :[: . l'i ' ' " ' , 1i • • , ? t' + r' 7,. ". i ? ? : .t [. ,i'c -43: .1 ?".4' , L. 3' ? 1 ? ' .. ? r ? • ` i. ? , r.l ty?'{ ? .e'? ?f. c}.? .. j ? ''yl 1 .r ftr,' n:?. . "{+ • • i`S i ' a-? '??? r ?} r{ ?!`1 ?1' ?` ?1' • ? : '.4?,.f, " ? . ,r t. - .. , :i - ? :Y '? • ' ' . ?Il, . ?" ,.d > t . „ ', 1?i?'? J Y .?1 ; Si ??'?i .' ' e ,tl .. . f : j 1( , . 1 s .t .. ':I S . r ' ?t1 1?' •i?yi??,?`?u?`^Eii` V?; ? ?1 ? .. s 6 '. r . . ' ' I ' ' ` , ,I ?'>•..j, ?,? '1_,41,5• •'i" I-?'! : i SF . .• ". 4'?•'. ? " • 7 ?, t r ¢ r ?:?} , 4 ' ? '.C t ? . . ? ? ' ` ? • r \ ? ' ? i ? ? . . `S i %1 ;. t S, i. . t K . ?'. p 11. .} / ' ''! :ti tf'.'jr.. •[. fii •3s ,LS SI.L "?'1 •' t ri\,:< ? li' •. ?r r' ] r t?S ? .. ' S. .. ?,. `. IT, ' :'?S. j.. .i 1 .. .('' ,?}' ? itf??' L[ aV`(. .,'1 ? :'i, °i 4'•' • , t t: }: ,r. 'd S. 1 '? >S r5' 'f :y r-(r r 1,1 i i dr ,l .I. 1 ;' '? ??\ _' f? - '? ' J ? l^ „i: fr/•: ,f. i . .. i .S. tl i . - r 1 ? ? ? ? ' r . , . ., 'a .. 7f ?- y. ?.• . .?L.'!.'?.5 l.•• f, 'r. r. ?1?- i il • ?' ... r tt .. . . y :,: /S y t. Sri.,,•2 i•.t• 'f r /:v, ?w'?'r p?? ?•° `i - :,'• ''r:, ,r.. 'a'. .i .'r fi'.a-r :'?; ( . ' :-? '?t.ir i ?'F ' f' ?ti' ?' m • - • , ` . . . . . r ,.lrLr a. :f?f.r}? `t ?ij ?f' r'S. ri , 'f` ? t'd ' : 'i lr ? , ` r .. ?„?. d ? {r r r ? ' ,,rr55 F .t} t?h+? ' ' r O 9F ? l Atli , d Y . y S i t? c . L ? ?1 > ' y , y , r, / F. . . .r:1i F, ? l S F£ : 1 tR i., W "wsvl +. N .,.s 4?e r urve r'., .c' }; ?f. ir >Ir4rrM'f ryrtJg! uLeY: X:??l.?a,r t.. WH.v: r?'iPF: „,l: .. it .gf Y.,.. .•If`.. F ! 1, r_!.3?l iri'• ) 7{.+Y: S.s ?.l +3! 1.. }.r..h'`f?.r•i ?'r 'S' t s.;'•?r.?7S:Si7.e :l rY, .t'?vr .m+.r.., r.-.. 4>......i,..r.... • ACTUARY'S 'REPORT FOR THE ' CITY ; OF CLEARWATER , EMPLOYEES' PENSION PLAN . ' r As of '?Ianuary, Z, 1996 ,.? to determine'annual contribution for the Plan Year: 01/01/96 -.12/31/96 . to be paid in the Fiscal,- year.. .10/01/96 - 09/30/97 imp r •.,.++`h .. -,i•t}, .:1 ."., ?.•{•?.e .'F'S', 1.4 .. ,. w.. ...., .. .a .•., ,.. . '.f .. r -i , i -?. .i. •" .. . Coopers & Lybrand LLP. 101 East Kennedy Boulevard telephone (813) 229.0221 Coo erS a professional services firm Suite 1500 ' .-. Tamps, Florida 33602.6194 lacslmilo (613) 229.0639 UyErand Human Aaacuma Advisory May 24, 1996 City of Clearwater . P.O. Box 4748 Clearwater; FL 33518-4748 t Ladies and Gentlemen: r { +? This report presents the results bf the January 1, 1996 actuarial valuation of the city of Clearwater Employees' Pension Plan. It has been prepared primarily to present to management the contribution requirements for 1996 and also the current status of funding of accumulated plan benefits. Section IV of this report includes the plan's Projected Benefit Obligation as required by the Government Accounting Standards Board (GASB) Statement No. 5. Our calculations were based on financial data and employee data furnished by the City of Clearwater. The valuation was based upon generally accepted actuarial methods, and we performed such tests as we -considered necessary to assure the accuracy of the results. To our knowledge there are no benefits or expenses to be provided by the plan for which a liability or current cost was not established. We certify that the amounts presented in the accompanying report have been appropriately determined according to the actuarial assumptions stated herein. Statement by Enrolled Actuary This actuarial valuation is complete and accurate and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of. Part VII, Chapter 112, Florida Statutes. There is no benefit or expense to be provided ,.? by the plan and/or paid from the plan's assets for which liabilities or current costs have not been established or otherwise provided for 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. t9 4 ? Respectfully submitted, •` Stee hen Metz Associate. of the Society of'Actuaries Enrolled Actuary Number 96-4342 E Mark K. Knecht Associate of the Society of Actuaries t? Enrolled Actuary Number 96-5471 L Coopers b Lybrand L L P. is a member of Coopers 8 Lybrand International, a flm,tea kib4iity association incorporated in Switzerland. e?7ey?; j;.s. ,t ," .f r,? .. ?.?y ,. 1.5:`,. ? .f z;izYt?f. }S, t?. .-{t_ •.1,?? 'r E.? .r. ?;S y. , F? .6. ,.r ,ie ?it.• ? 1?•v n: , i 'f , .t. :, i E' • .?.' ' i `1 eF.' i -.. • 1'.1` ., 3i`?"'1` "!•• 'i .I.? ? sir ?'F'?s? i•'ef7.° '.< 'd' .?' ?.y1 f• ?: .a. ?'f• 4 i ' S', if. 'J 'il? ii ?3 hj'f ef?"?i 9 ` k ? . . , ` t 1 i f k s . , :i .. , i'l, ?•. 1 ."'l i, f? r•k j.' .:. ' •1' :}, F i -? , i l r by "'rs .?!• ,I1 .'l. •t. ?i" ri , .%.. ri.l. j'%.. - C'? ' F'' t1J:.? `.. '.?G' r1 t., , f • I i' ? S. ' I : . ,r •:A' .;} iii,, ?; '; ?,,ij, .r' j`•` ffr; >' Est . • ' F • r• ., ? ??' , „ ,. • ' ' y i FF.F,.'?';"1, :'( ?!1.?? •';. ? •. 4I-"'1? . lip !'` F I• il ' 5 ?I' i.?r? ?'! ? " I. ,. , , f , ' - . . • ' 1 ? t ? ? Ye -F p? ? E'?i. 'T, '?r'• .G Ai JY itiT+?a t.f?d7.Q??i?l'?'''.S,Y?"e}`.YFk?13f.45frxrrk?.. a,'.iw.:3.1 :, '•?' .:(???4.,..7n?AftYYI a,.H+'u.h<re/e4/'.w. t'"n,i i.. •i•i?•.... .???r..{"':i t:. `e',y'.'Y r,°,, ?: "5'rs?eS° ..I ... .?P?Y..:.. , } tTi k-Yt'+'ri;-{:!'!t {A i.11rt y )r?•?...?]•. ..l', `°?..r.'I?:?l?'stt?1..6",?rl"'f`.eh.?.,- r....," ' i C0NTEN'TS 'Paces ' SECTION I SUMMARY 1-7 SECTION II FUNDING -8-12 SECTION III AS ETS S 13-16 'SECTION IV ACCOUNTING 17-19 SECTION, V' CENSUS DATA .20-22 SECTION VI ASSUMPTIONS AND METHODS 23-24 SECTION VII SUKMARY OF PLAN 'PROVISIONS 25-26 '- SECTION VIII COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS 27-31 i 1 e k F' : I CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I -__SUMMARY A. Actuary's Comments This report presents the highlights of the January 1, 1996 actuarial valuation prepared to determine the contribution requirements for the 1996.-97 fiscal year. Since the last actuarial valuation of the plan of January 1, 1995, there have been no changes in the actuarial assumptions and methods. There have been several changes in the plan provisions, including: • Benefits have been increased from 2.501 of average compensation per year of service to 2,75% for employees retiring after January 1, 1996; • Line of service disability benefits have been reduced from' 75V of average compensation to 66.671; o Additional disability benefits of 15V of compensation are no longer provided to disabled employees who have dependent children; • Employee contributions.have been increased from a minimum of 6,01 of pay to 8.0%; r Employees receive simple interest of 5t on contribution refunds; and a Employee contributions are made on a pre-tax basis. For a detailed description of the plan provisions, please see Section VII and for ' a detailed description of the actuarial assumptions and methods, please see Section VI of this report. Eat The minimum required City contribution for the 1996 plan year is $4,960,244 (excluding the credit balance) compared to $3,741,904 for 1995. As a percentage of payroll, this represents an increase from 9.041 to 11.22%. It is difficult to compare the contribution requirements for these two years due to the number of factors that are involved, including the increase in plan benefits, the increase in ' employee contributions, the plan's excellent investment performance for 1995 (which is not fully reflected due to the asset averaging technique being used), increases in plan expenses, and normal changes that occur from year to year in employee compensation, retirement and turnover rates, etc. The city's minimum required contribution for 1996 would be 9.30% of payroll (excluding the credit balance) if the changes in plan benefits described above had not been made. This is a slight increase from the 1994 rate of 9.04k of payroll. If the,plan expenses for 1995 had not increased compared to 1994,' the City's contribution would have decreased as a percentage of payroll. overall plan experience in 1995 was favorable (except the expenses) and would be extremely favorable if the full market value of assets was used. i&d 1 I, I3 9 1.5 ?o CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I - SUMMARY (continued) The City's minimum required contribution to.meet Florida statutes (excluding the credit balance) is much larger than the City's budgeted contributions.. While on the surface this appears to be a matter of concern, the situation is much more favorable than it appears. First, the plan's credit balance is currently equal to a''full year's contribution,, meaning that the City could essentially skip one year's funding and still comply with State law (the ordinance, however, requires the City to make contributions even if State law does not). The second, and greater, factor is that due to the asset averaging approach being used .to determine the Plan's funding requirements, much of the outstanding investment 'returns realized in 1995 are not recognized in 'determining the 1996 funding requirement. The actuarial value of assets is $22,000,000 less than the market value. This means that over the next four years one-fourth of this $22,000,000 will be recognized each year in addition to the Plan's ordinary investment returns. If this $22,000,000 were included in determining the 199G funding requirement, it would reduce the requirement from $4,960,000 to $2,202,000 (11.22% of payroll to 4.98t). If the City were to take the total market value of assets into account; its required contribution'would be substantially less than the 7.01k.of payroll budgeted, and the credit balance would be equal to almost two years' funding. The funded status of the plan increased compared to the prior year. The ratio of assets at market value to the actuarial present value of accumulated plan benefits increased from 1311 at January 1, 1995 to 140V at January 1, 1996. 16A qc7 I k ?1 mod, B. Contribution Limits for the Plan Year Ending December 31. 1996 Minimum Recuired Employer Contribution Florida Statutes $ 4,960,244* 6% of payroll $ 2,652,538 The employer contribution is assumed to be made uniformly during the first two quarters of the fiscal year beginning on October 1, 1996. Differences in the investment' return due to contributions actually being made at any. other time will be recognized as an actuarial gain or loss in the following valuation. The minimum required contribution represents.a funding level which will satisfy the minimum funding requirements under Part VII, Chapter 112, Florida Statutes. The plan provisions have been amended to reflect the restated ordinance as of January 1, 1996, Please refer to Section VI and VII of the report for a summary of the actuarial assumptions and plan provisions, respectively. C. Funded Status of Pension Benefit Obligation as of January 1' 1996, Present.Value of Credited Projected Plan Benefits: Vested $197,153,740. Nonvested 19,_685,130 Total 5216.838._87700 Net Assets Available for Benefits 5267,213.161 t r•? { * Before application of the credit balance of $4,801,302. t J t CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION I - SUMMARY-(continued) ,lea D. Compantive,Summary of Principal Valuation Results Actuarial Valuation Prepared as'of: 'Jan 1, 1996 Jan 11 1995 Jan 1,,1994 (a) Partici ant Data p ' Number Included Active Members 1,422 1,394 1,318 r Retirees and Beneficiaries 399 380 355 Terminated Vested Participants 8 8 7 Annual Payroll of Actives $ 44,208,964 $ 41,371,332 $ 38,710,974 Annualized Benefits Retirees and Beneficiaries $ 5,742,148 $ 5,228,578 4,669,279 Terminated Vested Participants $ 72,640 $ 72,640 65,668, (b) Actuarial Reserves la Market Value $267,233,161 $217,777,629 $216,738,770 ,Statement Value $267,213,161 $217,777,829 $216,738,770 Actuarial Value $244,744,488 $225,482,726 $213,014,474 (c) Liabilities Present Value of Expected Benefits: Active Participants: Retirement Benefits Termination Benefits Disability Benefits Death Benefits Refund of Employee contributions Total Active Terminated Vested Participants Retirees and Beneficiaries Total Present Value of Expected Benefits Liabilities Due and Unpaid $211„067,333 $177,680,724 $163,329,708 13,566,552 12,025,628 11,422,359 20,414,398 10,822,342 9,848,682 3,258,520 2,814,234 2,784,540 1,675.348 1,362,173 1,412.444 $239;982,151 $204,705,101 $188,797,733 711,561 680,848 556,901 64,235,874 58,76B,478 w 52,326236 $304,929,586 $264,154,427 $241,680,870 $ 234,455 $ 136,231 $ 189,188 4 C r i? LJ a°t SECTION I - SUMMARY (continued) D. Conarative Summary of-Principal _-yglu ti ,n Resul s,, (continued) Actuarial Valuation Prepared as of: Zgn-1, 1996 Jan 1.. 1995 Jan 1. 1994 (c) Liabilities (continued) Unfunded Actuarial Accrued Liability Frozen Initial Liab. (FIL) - 1/1/79 .Supplemental FIL - 1/1/79 Supplemental FIL - 1/1/81 Supplemental FIL - 1/1/82 Supplemental FIL - 1/1/87 Supplemental FIL - 1/1/88 Supplemental FIL - 1/1/89 Asset Valuation Method' - 1/1/94 Change Plan Amendment - 1/1/96 $ 4,214,458 $ 4,731,304 $ 5,214,337 1,734,131 1,824,632 1,909,213 276,860 288,152 298,705 (3,348,786) (3,470,278) (3,583,821) -1, 326, 510 1,35 4,142 1', 379, 966 1,491,943 1,520,396 1,546,988 1,978,253, 2,012,853 2,045,188 3,642,682 3,684,869 3,724,296 15,063,842 0 0 Total (d) Funding Account Credit Balance Prior Year Amount Prior Year: Required Employer Contributions Employer contributions made Interest on Credit Balance Current Year Credit Balance (e) Actuarial Present Value of Accrued Benefits (see Subsection IV for detail) Changes During Prior Year: Value•£rom Prior Year: Benefits Paid Interest, Aging and Benefits Accrued Change in Assumptions Change in Plan Provisions . Net Change Value at Current Year $ 26,379,893 $ 11,946,070 $ 12,534,872 $ 5,304,094 $ 4,894,904 $ 3,865,373 (3,741,904) (2, 563, 746) (2,124,675) 2,867,825 2,630,293 2,883,630 371,287 342,643 270.576 $ 4,801,302 $ 5,304,364 $ 4,894,904 $190,506,777 $166,517,705 $150,882,720 $166,517,705 $150,882,720 $138,526,787 (6,070,370) (5,294,252) (4,973,011) 22,305,084 20,929x237 17,328,944 0 0 0 7.754.358 0 0 $ 23,989,072 $ 15,634,985 $ 12,355,933 $190,506,777 $166,517,705 $150,882,720 5 CITY OF CLEARWATER EMPLOYEES''PEN5ION PLAN GECTION I - S Y continu d) D.' Comparative Surnmarv of Principal' Va7,uation Results, (continued) Actuarial Valuation Prepared as of: Jan-1, 1996 Jan 1. 1995 Jan 1, 1994 (f) Pension Cost for Year Normal Cost $ 4,522,577 $ 3,715,146 $ 2,442,662 Amortization of Unfunded Frozen Initial Liability 2,504,845 1,370,321 1,370,321 Administrative Expenses 997,356 849,675 805,430 Shortfall for Expenses in Prior Year 147,681 44,245 100,269 Interest Adjustment 324,502 244.797 167,722 Total Required Contribution $ 8,496,961 $ 6,224,184 $ '4,886,404 As a Percentage of Payroll 19.21 15.01, 12.61 Anticipated Employee Contributions $ 3,536,717 $ 2,482,280 $ 20-322,658 As a Percentage of Payroll 8.0t' 6.0k 6.0& City Required Contribution $ 4,960,244 $ 3,741,904 $ 2,563,746 As aPercentage of Payroll 11.2% 910?F 6.6t (g) Prior Year Actual Contributions* made by Employees $ 2,867,825 $ 2,630,293 $ 2,883,630 City 2,867, 82a 2,630.293 2..883.630 Total (h) Gains and Losses (i) Other Present Values Present Value of Future Salaries At attained age At entry age $ 5,735,650 $ 5,260,566 $ 5,767,260 N/A N/A N/A $377,222,700.$356,834,700 $333,406,100 $307,107,500 $284,929,500 $263,646,400 6 • i ?/? ? ' S?? '??' a .r`. •5. r ? ' y • ? '. .. ? , tai. t vrj?`' •«trr,+:•+...v'^T '}I!?r?U-ldn7j?!ahy..,?rs' . .. ; •? ...... - .. ?.. _s ,9 ., r..r;.w Y?:a..?'.... .. .' i l ? : r . , .. ,.. t: .. '? .. - . • . .. CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECT16 I SUMMARY (continued) ??. D. Comparative Summarv of Principal Valuation Results, (continued) Actuarial Valuation Prepared as of: Jan 1, 1925' Jan 1995 Jan 1, 1994 (i) Other Present-Values (continued) Pre en Value f Employee Contributions 17 At attained age At entry age Present Value of Future Normal Costs $ 30,126,481 $ 20,353;809 S 19,010,669 '24,025,915, 16,106,164 14,893,597 $ 38,606,507 $ 32,029,725 $ 21,026,428' r ?n :r Pres2nt_Value of $enefits• Active Employeee - at entry age $'62,771,642 $ 54,260,500 $ 49;796,836 ' (j) Comparison of Actual and Assumed' ala Increases Year'Ended Actual Assumed 12/31/86 7.4% 5.0% 12/31/87 5.9t .5. oft 12/31/88 9.1%, 5.0k 12/31/89 8.7% 5.03 12/31/90, 5.3k 5.0% 12/31/91. 6.1t 5.0lk 12/31/92 6. a1k 5.0% 12/31/93 1.2t 5.01 12/31/94 4.41 5.01 12/31/95 6.4W 5.0v Investment Return Actual Assumed Mar3;et 'Actuarial Value Value 13.21% N/A 7.0t 10.78 N/A 7.0V 9.12 N/A 7.0V 20.84% NIA 7.0w 6,21W N/A 7.04 28.52W N/A 7.0% 6,491 N/A 7.0W 9.291 7.42% 7.0k 0,891 6,284 7.01 23.364 9',141k 7,01 7 `•Yb ,it(?g': .[r 'f. xr ., f ?r :t?" ?I?- ..1 •Ik }. E :•vl??' ? '? t. .. ? J ' , • - ? , "r. {". k.,.. rl? ? '?I, i' ? ` J?? ?.?,' ?.'3 i1 ?? ? ,? ? 5i ?? • {(v' -t: r ? .+. t, ? ? ? ?is'';J r ? 1 ? ''''•``r I F •r' ' ?l .' E l r , i. i } l?` ,i tk?r F.' J.f1 , ?? .il,' .'S'? i. .f 1. ' '. k r? . r • y , ,, I .. .P' : •i f. E 1 1 ' 1 a f>:. .. f .a g S>. i? ? '1?I ? I ? ? .l?. \ .i• .! S ? 4( M ? • t;' +Yrt:, ?r .t.<• 'IS `t f -a . t ? , , I,T `° .. 4it',f` ' `: E'(• •,ii i'}.° .. • ?; ? 3 r a •I ,f7. `ft 3 ' r r i _ r3.?ilr tts :'r .I, _ •,5??. c( ,. ?•J i.3. f I. .. `.i'i'' , tC :}. .s. '?l cfa' .1?.?. :i'' t ` {r' i: ' • 1' J ,. I . , .. ?t , ':ti .jr.. .t? ?•t.: •i',• .., •, ?.y ?•f Pf3 'i; .?? 'i.''?3 :I" .:F .I 'F',t? ' .! ' r. • 4'< .. _ .IIPi? it P- , f t ??• l I ` ?` , , / a - yy ??. :.j:'•' .jf {. f,' °? }???;' ?(i ?l. ,., 1.:1 ?, :?. 'Y.°1'f, ' ., 5. ?!° .Y :i ' '' , ' ? V . _ ? , ? . i . i .r: •€}fi •J :`i ).? iP•.'% ''c 1' 'i' 7..• .f ?"'A•1 ,.l •g` .5':iJ"}'S3. ,'i. ii -'.IS: .1 .Si• i. ?, r? .''1. ?? ?3? , a(' i ? . . ?, !? ? .'? 'I , t • , °,1` _ ?Jr,: '?`'-,?: F r.?,• ? ?3 •, •'i Y r e • ' ' ` ? I. I ? .? ., is , I ,F >if` t . ?;., , r. i? ,?, . ??.L . i 'f' . • 1 '1*, ` . M7i. • i.: .k. .,?,.ti... ?y..p..,.,,, .?;+?r? yr ? ..../+x .? r?.'(.ti:<?:r.»?t,t,:a,.. ,?. ?4z;x?:•=.•?.,. _>, ?';="•?,. ?f'''.. ?lr: , t'r•.. ??; s?„»,.' J. r... , .}:wan. w u ? ,. , . ,r>.- 3 4.?, , ' ? I ., . ,. I - ds . , a ., , .. , . . ,, . . . , ....... .. ... .p. .. ... . Y .' CIT OF CLEARWATER EMPLOYEES PENSION PLAN' UCTION II FUNDING A: p=Igjl ment of the Unfunded frozen Aatuarial'•Accrued Liability . 1 Unfunded Frozen Actuarial Accrued Liability ` as of'J'anuary 11 1995 $11,946,070 t I b , L n erest to Decem er 31, 1995 836, 2 25 • I, $12,782,295 2. Employer Normal Cost* for Year with interest to -December 33.,'. 1.995 2,275,650 .3. Required Employer Contributions for Period _3,741,'904 4.. Unfunded Frozen Actuarial Accrued Liability as of December 31, 1995 prior to amendment ' (Items 1 + 2 - 3) 11i 5.••Increase in Unfunded Frozen Actuarial Accrued . Liability due to plan amendment $15,063,642 6. Unfunded Frozen Actuarial Accrued Liability as of.December 31, 1995 (Items 4 + 5) l $26;379.893 Includes Expenses and Adjustments J, is ?,,.; ` i. ;' `` ;,.' 'r • ? ? ',t . ? ;!, ? .. ;' ,? I CITY OF CLEARWATER EMPLOYEES' PENSION PLAN gECTJQN II_ - _FUNWNG_Lcontinued) B.. Development of Normal Cost' The Normal Cost is the portion of the cost of projected benefits which is allocated to the current year by the actuarial cost method.' The Normal Cost for. the plan years beginning January 1, 1996, January 1, 1995 and January 1, 1994 are determined as follows: ..? Jan 1. 1996 Jan 1, 1995 Jan 1, 1994 Total Projected Actuarial Liability: The present,value as of the beginning of the plan year of all benefits expected to be paid in the future to current' participants. . • Active participants $239,982,151 $204,705,101 $188,797,733 • Terminated vested participants 711,561 G80,e48 556,901 • Retired and disabled participants 64,235,874 58,768,478 _52,326,236 _ 0 Total participants $304,929,586 $264,154,427 $241,680,870 Credit Balance: Employer contributions from prior years reserved for future use. $ 4,801,302 $ 5,304,094 $ 4,894,904 Fund: The actuarial value of fund assets as of the beginning of the plan year. $244,744,488 $225,482,726 $213,014,474 ,Fs Excesa of Total Projected Actuarial Liability Over the Fund Minus the Credit Balance: The portion of the projected Li total actuarial liability to be funded in the future. $ 64,986,400 $ 43,975,795 $ 33,561,300 This portion is divided into two.components: a.• Unfunded Frozen Actuarial Accrued !1 Liability $ 26,379,893 $ 11,946,070 $ 12,534,872 t b. Present value of future service liability (funded over the expected future service years of current r' participants) $ 38,606,507 $ 32,029,725 $ 21,026,428 Present Value of Future Covered Payrolls $377,222,700 $356,834,700 $333,406,100 i t 9 i ?,?X? Ii., f t, .1' :1, .T. 'r .. ':Sl. i.l'?,4 it' f I ^'?..:.' :.{1 •[SiF .'f,^, ?" . 4 A •I t i t l , .. %T ? l e '1• { t '.. .4? { ; ?'' ?° ? L ? .. , f :.T .?4. ) FF4 iiF 1}?. f? 'J ,ti ... 1 f - ? S ' ' I ' :l. it .it : ;? , 0.1•. 1' .'1,. 7 ' ,.1 TJ•4:'I.. .I, ':: .:3 1. .'.,' , .f •<?l !, ? l: , + Vii { ' • ' ' ' r ., tl . .. ? . .. ,1, , +1 1 r r•- :. '?Y Ef.: vJt -€ tti'..:'? „+? !5`: .?I'•' 1' '1"- <, F : .. ?i.. , .4 ., •1 . . • ' • ? , .fit , .1. .1t •. V,'1 :1 t . r rr 'i' . lir '?, ?- ? , ' ' ' ' ' ` t ? ? t : ? . ?j .. . i.i. y. .4 F'I _I{ jl '• ' E , J. ? r ?Si< 1 Ai .. a .,, s' i. 'S ? ? !` ?" ' ? 7 ° t '1.' 1 t ? 7 ? ' ' . - . i.: 4' 7, :. j:l . .3 .-t i . . ? . ., ,.? :.• t 3 1, .!' , 3 , , t• - , J<:,.q •.4 ,3"iJ?.•.s, r4ttr` t.' ?.. `?..1 t.? ? itYfa -w•atYWYI'fi"1?'??Sa'..?:$ ?>f??{J((W w„rstl t:. ? 11 ?F ?,V•r.,.i:.v .-» .,,1:.,.Si !. ....:1.., :.-,?.«1* . y.. . • Y . 5: ?:.LS`'' ?`. , f.+k t.., /s {rd ?',2 ?s1'i; f'..{.t6]?64. .. ??f,;. e?.f,- Y .,.r se. .,... .. { '7 f r CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTI04! ,11 FUNDING (continued) B. Development of Normal Co6t, (continued) Jan 1. 1996, Jan 1 1995 Jan 1. 1994, Normal Cost.Rate: The ratio of the present 'value of.future service liability'to the Present Value of Future Covered Payroll`. 10.231 8.981 6.311 Annual Covered Payroll: The reported Payroll•far plan participants who have not attained the assumed retirement age, $ 44,208,964 $ 41,371,332 $ 36,710,974 Normal Coat: ;'The annual cost as of the beginning of the plan year to fund the future'service liability over the expected future-years of service of the -current participants. $ 41',522,577 $ 3,715,146 .$'. 2,442,662 10 CITY OF.CLEARWATER EMPLOYEES' PENSION PLAN SECTION II - INd continued? C. § hgdule of Amortization Payments Initial Jan 1, 1996 Annual _ Date. Initial Amortization Unamortized Amortization Bat-gblighed Reason Amount P eriod (Years) Amount Payment 1/1/79* Frozen Initial Liability (FIL) $ 9,726,4.9 24.5 $ 4,214,458 $ 792,558 1/1/79 Supplemental FIL 2,707,962 30.0 1,734,131 203,949 1/1/81 Supplemental FIL 390,421 30.0 276,860 29,404 1/1/82 Supplemental FIL (4,521,985) 30.0 (3,348,786) (340;571) 1/1/87 Supplemental FIL 1,519,142 30.0 1,326,510 114,413 1/1/88 'Supplemental FIL 1,673,738 30.0 1,491,943 126,057 111189 Supplemental FIL 2,177,772 30.0 1,•978,253 164,018 1/1/94• Asset Valuation • Method Change 3,724,296 30.0 3,642,682 280,493 111196 Plan Amendment 15,063,842 30.0 15 063 842 1,134,524 Total Charges $36,983,592 $29,728,679 $2,845,416 . Total Credits (4,521,985) _(3,348,786) (340.571) Total $32?4.61 57 526,3791893 52,504,845 * Established July 1, 1963 and being amortized over a forty-year period beginning on that date. 11 . ' ' ?? ? ?? ? I r ? ^rl'4 .1 4 I'G ,1 ? ?1t ` ? ' ' ' .1 I ' ,. • , > I '•f ` .t.l i . , " I • i I l . ^,', ,1 ' ? I x ? ' •.1i yr ?? !#r .; • IPr I I I: , S . to .f'l'r14,;.p `' 'I 1 aitfi+si <-? ?n f3..n..? ?., E, wn.ab:w,.?« dt . r VS4i<x •..t41R>'lll?.. .•V'..?.,5.y}. s ?i:.ti>`.f'a4.S"jr'"il. ,•r p•:,r '. ?.I..I .,? r 't r , .. ^i lf ,Y.?• .f Its, I ' 'f?' •4'r'Y/- !`. :r..,;,,:...>: , oP a ., . ?,. . . . ,.... ... :. r Ls k _E r 4„ 3 1 .J CITY OP,CLMWATER EMPLOYEES'. PENSION PLAN 1 ?ECTIQN .11 -- P_ NG (cog_tjn]aed) D. AntArjyatS§ or ization Sc edule Shown below is the anticipated amortization schedule for the Unfunded Frozen Actuarial Accrued Liability taking into account the plan's.funding policy. Anticipated Amortization'Schedule Unfunded Frozen ate Actuarial Accrued Liability 1996 26,379,893 1997 25,546,301 1998• 24,654,358 1999 23,699,979 2026 0 On.July 1, 1963 the Unfunded Frozen-Actuarial Accrued.Liability was established equal to the difference between the retirement plan's accrued liability, determined under the Entry Age Normal Funding Method and the actuarial value of plan assets. According to the plan's funding policy, the initial liability is to be amortized by a series of level payments over a forty-year period. Subsequent changes in the level of the Frozen Actuarial Accrued Liability due to plan amendments or changes in actuarial assumptions are to be amortized on a straight-line basis over'a period' of thirty years. By contributing more ..than the stated funding policy, the amortization of the Unfunded Frozen Actuarial Accrued Liability can be accelerated. «'..J.«°'Y.t+`i'f:+ ??';'aJwC `'1 sC.•,Atfi+.:w+v ..ww... .. ...w.; ..._. .... r15. .. .. . `I .I . ... , ., .. •• ... .r,-..„. I CITY OF CLEARWATER EMPLOYEES' PENSION PLAN ?. SECTION III - ASSETS Comparative Balance Sheet As of December 31, 1995 ' Statement Value Statement Value A§gETS ] 2/31/95 12/31/94 ' « Total-Cash $ 291,623 $ 3,505 Receivables: Employer,Contributions Accrued Income 1,328,838 2,643,691 1,185,660 1,723,608 Interest - pooled cash 20,126 31,599 ' Total Receivables 3,992,655 2,940,867 Investments: U.S. Government Securities Short-Term 5,475,973 13,151,606 Pooled/Mutual Funds: Treasury Fund 41,373,662 24,443,416 Government Funds 8;191,430 15,801,058 tj Cash & Equity 12,054,184 9,645,054 Corporate Debt Instruments 0 0 Corporate Stocks: " Preferred 0 0 Common 145,482,653 101,989,369 Bonds 22,485,436 11,249,185 } 4 Total Investments 235,063,338 176,279,6BB , Other Assets: " GIC's and Insurance Contracts 28,100,000 38,750,000 TOTAL ASSETS $ 267,447,61,6 S 217,974,060 rx? . s Y LIABILITIES AND ACTUARIAL RESERVES Liabilities: ?.x•+ Payables ?-% Plan Claims $ 0 $ 0 Accounts Payable 234,455 196,231 Total Liabilities 234 455 196 231 , , Actuarial Reserves: Accumulated Member contributions 27,031,973 25,650,391 ..? Balance of Actuarial Reserves 240- 181,188 192, 127, 438 J Total Actuarial Reserves 267,213,,161' 217,777,829 TOTAL LIABILITIES AND ACTUARIAL RESERVES ?S 267,447,616 $ 217,974,060 13 :,J rIG L°;?l, efd: ',?' 6?rb 1-+. ```" )i E ,i ? ? 1 ,:i :1.'.l .,5i •-!,?•:it ! ? y jci;!. i,•.: ? :'. y1t? ( ? it 41 r< a [, •'. r.v '1' I . ? ri + f ` • • ' ' 1 1 1 i I •' . k, r',.r .. :1! , r .•S'. r ' ? ' ' ? ' .. ? ,. ? i ? 't • '!rI" {• I ; ?. 1. irir?:' }a ?Ir ?. f' . I , ! . •S': -t?;( r?J .4 ' 15 : 1'' 3. h.,'1.. '.3 ? s.. .. t ?'rG' [ ' .r'f ' mo ? • , 1 F ? r ' ? y : I iS E,i` " i1 ' - ,° .i`?. .j _ S° ' ,i •a . .. , e r ` G r', ?{' ;!r ?1? 7,? '.i. j '•`r ??f'31 1'v' f 1. .J' . . ' ' kid' ' { ' ''' ' F h - ; r; ?• , ' r , , , .. , ? +lWtAS ;.i 7:+.,i...:. a. , <fi1 6?4f?.'sa4lrxa?>'.ia+:'. L.. 4.;ti.,s..••..,Ge.r.i?N'tta•?•I;s`fi.saw il.??r 4. ''fi'r. .. ! .G .?, t?y .ra,3 .?.-;:s"n :.?.?n ,y,•,?• . ;a. ,r. ",. ,. _., r-r , .ir:.,. s,...,. :, 3 !•ffre: :i'{ 3 i?x: .. .,.. r.... ' CITY OF CLEARWATER E MPLOYEES PENSION PLAN Schedule of Changes' For the Plan!Year En in Actuarial Reserves ded December 31, 1995 .Statement Value Revenues: Employee Contributions $ „2,867,825 ,.,Employer Contributions 2,867,825 Earnings on Investments:. Interest % $7,774,186 , . -' Dividends 1,-5830303 ' Realized Net Gains on Securities Transactions 13.725',605 23,083;094 Unrealized Appreciation (Depreciation) on Investments 27,646,00 56,464,834 'Expenses: Benefits Paid $5,431,256 Refunds of Contributions 639,114 Professional Fees 959,132 Other. Expenses 0 - 7,029,502 Net Change in Actuarial Reserves 49,435,332 Actuarial Reserves at Beginning of Plan Year 2 7 777 829 Actuarial Reserves at End of Plan Year $267,213,161 • ..! j ? ' , 11 r ' '? • ' ? ' t ? t. . .. ? ?? Jt 1'?. . ? ?? r i v . ?1 •? ? ' ? 1 , ? i ? • ? ? ? ? ? r y , I 4 , . I. , r . r' .. `y? .. ( 1 ? ".. "j ,'] o •Y ? , t .. . i f f , 1 , • '' r'9 •'+' #`f •k' ., ? .?, !'.i ° i??4. ?!!;. ie' 171' 'lr?4•`, ,... ?, .. ' • S t?_.j .1' Ii.: i.4?7'IA?M.YR??f„S"[?Y NY'f??Scl?l:?' j ,i. .1 '.}ic n ,t' t":1•' ,iN, 3; .5:;^1' .'r• !`he mod. •r.,?r:?k" naJ;,;..: .. . il:'`. , >• "'? {?' ;r ,.? '` ' ! .... . , . . _ .. ,• . s ... . ... :...,.?.. ? ' - CITY OF CLEARWATER EMPLOYEES PENSION PLAN ;' ECT I3 I - ASSETS ontinu d) h Development of Actuarial Value of Assets " Actuarial Reserves at Beginning ` of Plan .Year . 527.7, 777, B29 , 2. Time-Weighted Employee Contributions ( 5 x 2 867 ,825)' 1,433,912 . , 1 3. Time-Weighted Employer Contributions 179,239 (.5 x .125 x 2,867,825) 4. Time Weighted'Benefit Payments 2,782,253 (11/24) x (6,070,370)- S.. Time Weighted Expenses 479.566 (.5 x 959,132) , 6. Time Weighted Value of, Actuarial Reserves 216,129,161 ' (Items 1 + 2.+ 3 - 4 - 5) 7.' Expected Asset.Return 15,129,041 (Item 6 x .07) 8. Actual Asset Return 9., Difference of Expected Return over Actual Return (Items 7 - 8) 10. Actuarial Reserves at End of Plan Year 11. Expected Actuarial Reserves at End of Plan Year (Items 9 + 10) 12. Difference Between Actual and Expected Asset Return ,(Items 10-11) 50,729,183 (35,600,142) 267,213,161 231,613,019 535.600,142 ..in Y. ;.},:xr. [? ? f" .,1 5 ` . : .II .. f s./ ' ?', 'i ''1 • 4???# ? ?'' , ? I , 4 . . .. . i ; . i 'IN ... .. , 4 t.=' _ : , fib ?Ir, = .'!.• .p . - ,.,, t , v y - , ' Ip. :'S: I.' rls i .. •??.1 tliY' }` ?i??a`i- is ? r..; [ .,'?-. ?' ef. ''ir`F •. ?Sg ry'4.? rd y.}. ?=? .s l'. - ' - ' f ' ? ` ' . .,5. ? i.?v. ? ''I:+?. jr •? ; ?i:' '< ,`+' ' i ,v Y.?. 1. 'r ., _. ,. ' 1' ;?js:`?: ;i 't. . .',??e. .i•?' -r.l ' • .. .' ?.. r .. f ? ? - 1, tl 7r ,I. x,J' :1. ' iC....??j'', ?I..f t? '??1 '; .?1'f .1' 1 1 ? ^ 9 , r '? L9ii?Mw?c..ua- .. .. . ?..t .n.:wai? ?, .!+ri?+, (i te:E'?1'r 7`? ,. :L?;?. 'i '}'sa ... a a' '}•? ...+h?f. =•=h'.'s°?'. lV-'[.. Y.?,.,-=r , : CITY OF,CLEAAWATER EMPLOYEES, PENSION PLAN , i' •-## SECTI ON III ASSETS ,- (continued) Development.of Actuarial. value of Assets (continued) Amount Amount ' Annual Excluded Excluded Date Initial Amount Prior Current Established Amount Recognized' _ Valuation Valuation 01/01/94 $ 4,655,370 $ 931,07'4 $(2,793,222) $'(1,862,148) 01/01/95 $(13;122,549) $(2,624,530) $10,498,119 $ 7,673,589 01/01/96 $ 35,600,142 $ 7,120,028 $ 0 $(28,480,114) Total $(22.468,673) ' Actuarial Reserves $267,213,161 Actuarial Value of Assets $244,744,488 r 16 r < , CITY OF CLEARWATER EMPLOYEES' PENSION PLAN BECTION IV - ACCOUNTIN A. Actua_ri.al PVeeent__yalue of Credited Pro.ie.cted Benefits* 1. Pension Benefit Obligation: Jan 1, 1996 Jan 1. ?g95 Retirees and beneficiaries receiving benefits $ 64,235,874 $ 58,768,478 Former participants 711,560 680,848 Current participants: Employee vested 28,372,499 25,650,391 'Employer vested 103,833,807 82,570,780 Employer nonvested 19,6_65,130 20,705,64.7. Total $216,838,870 $188,376,144 2. Market value of plan assets at beginning of year $_26213,161 $217,777,829 3. Unfunded (Assets in Excess of) Pension Benefit Obligation [(1) - (2)j $_[50,374,291) $(29,40?1,668?55) B. Two-Year Historical Trend Information Jan 1 1296 Can _1_, 1995 1. Market value of plan assets as a percentage of PBO 123.21 115.61 2. Unfunded (Assets in Excess of) Pension Benefit Obligation as a percentage of covered payroll (113.9)t (71.1)t 3. City contributions as a percentage of covered payroll 11.21 9.Ot * The pension benefit obligation is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits, estimated to be payable in the future as a result of service to date. The measure is independent of the plan's actuarial funding method used in determining the annual funding requirement. The above present values were computed using the applicable actuarial assumptions summarized in Section V1 of this report. 17 ' ', !i}II?$f 1' .a,' '', ,flit .I'', . I .. f :5 • .4 ? ' fE I as , eis ? !' ?I`': Il'`4, 1. I ll. •r S ' F, r f . . . 1 ' +n.?f. EIw:?'f?,r't„X14•,':,LpES*Ttit.af.y°•,ta.4Y:F}'s w,a?a ,:.api .. :. i'i '.{;'„ ,?lr ' >,.,vrkd hlMM'f nSar•Y" ' 4 a .r.+:.. •.u. 1 !. .. thF'i.1,1,?r...+.o-.i... .. .- . . . .... _.,f,.?;y.• hrk .. .Y: '.,'lA..??, "•, r' ',t'•7,.7? .i 7'. ., .,..... .??'.'?°?I' CITY DF CLEARWATER EMPLOYEES'. PENSION PLAN ;l ` gggUQN IV - ACCOUNTING (cg„rit inued) B. V ue of Accumulated Plan Benef its 4 ,• Jan 1, 1996 Jan--I, 1995 1. Present value of accumulated plan benefits: Vested: Retirees and beneficiaries receiving benefits $ 64,235,974 y 58,758,478 Terminated participants 711,560 680,848 '.' Active participants 109,282,375 89,871,221 Total Vested 174,229,809 149,320,547 Nonvested: 16, 276, 96B 7 , 158 17,19 _, ,,,• . Total' ' 190 506 777 1166,517,705 at beginning of plan year 2. Market value of assets 267 447 616 060 S217,974,060 1 t 18 i'I .:f. r .. ? .. _ •. a ,1 , • , 1,4 'fir. .1. t I,p? Y^ ', t ? .. l r ? ? ? ' , ' t ,?.r,,': , .f p'?S.i .°? ° •.Y:..': ,f. ,??;; 4 ..? 'S ?? - .. 1 . ?I .' :` : 1 t .., , . . ? ' ' '` . • •. . y ? .t, ' r. tY . , ?.i i[,J i , r '!', r? .CI. . ' •, , F • .r 1 .:1 ; I . • ! Y. " ?? ' ? '• r 1 f ?t . ::?tX' r..,'. rf"k(",'1? [ee A' Md we.w»kY h'! ?. '? ?.??..YS ?'x F3i X•.tismatra?nwn,?.J "..r ..e ,. .. . ' `:!` t ?. ). 4." .'AF ?? .+. ?. 9 F. aS'_°! ..... .. n.¢. .'. t., rA.t .ai;. 'a' [' . .. ?. ., ' 1 r?9u .? S .ela v o... `.:1`: ,^'a•JY,.. ?? i:' .°'i yr t .?... ... , ?• .CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION IV - 'ACCOUNTING (co ntinued) r. C., 0gtgm4nC o Changes in Pro'iected Benefit Oblig ation The changes in projected plan benefits from January 1, 1995 to January,l, 1996 are presented below: 1. Actuarial present value of projected plan benefits at January 1, 1995 $188,376,144 2. Increase/(degrease) during the plan year, attributable,to: Benefits paid. . (6, 07,0; 370) Benefits accumulated and increase for interest due to the decrease in the discount period'. 22,881,152 Change in actuarial assumptions N/A Change in plan provisions 1?.65?:944 Net increase/(decrease) S 28.462.726' 3.' Actuarial present value of projected plan ' r.. ' benefits at January 1, 1995 5.83[, 8?0 ,i•}' i?'2 . 'ri. I^ II .. ? .. I `! !?'e`•r I . 2• t y •t 1 .1 .. III` ! 1f 'iFr .i: ,•1 1,. ,1 ' r , r . ?'? '! '.a;;?'Y•y i k.i .•.+vyJ1 .?,? '..' .' ...: .,y 'G.ay?..a.•,r..,s,r}.: ?";.,:.1`P',.'•'t?r•a:? ri'•',., a•. .r. .I '1': r:•• r,. .. , .r: i..wr:1r< !.? ?f?a a. :: 7F, ,u?i,..,r ln...,,.. ,,.. ....... .. •.. I?2'c• .. .. ., i" P "?Y ... . .... ,.. _ , CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION V _ - _CENSMSS DATA A. Reconci iation of Employee Data A summary of changes'in the employee data from January 1, 1995 through'January 1, 1996 follows.. Employees who do not participate in the plan are not included. articipants included in the January 1, 1995 valuation Active Employees 1,394 Terminated Vested Employees a 'Retired Participants and Beneficiaries 380 otal 1,782 Nonvested terminations (60) (60) Data Revisions Vested terminations Deaths with eligible beneficiary ' Deaths without eligible beneficiary (1) (3) .(4) Retirements (23) .23 Cash settlements (1) (1) Rehires 2 2 New participants 110 110 Participants included in the January 1, 1996 valuation 1,422 B. 399 1,829 Active Participants: Fully vested 619 Partially vested 0 Non-vested 803 Total 1,422 20 MW`..,A,.a•if1\:?,f.^'.A ...,'rIFYIx.,?h?. ?..si,., ,Ii i .. ... .,.. .. v'!i" .(1'•( ` ':. ', 1° i9..i 4,• o (, .,.. .. I?! a .. .., ?"l i > .1' .. I v ! CITY OF CLEARWATER EMPL Y E ' ,. O E S PENSION PL AN SECT ION V - LENS S DA TA (c ontinued) ' B. A„e'= S ervice Dietrib ion o Activ Par ici n s as o J nua 1 1996 a Years of Service, 'Attained .. 0 - 4 5.9.9 • ' 10-14 15-19. 20-24 25+ Total Arxe No.' No. No. No, Na. No. No. Earnings Under 25 29 0 0 0 0 0 29 $ 677,192 25 to 29 87 26 1 0 0 0 114 $ 3,318,202 30 to 34 89 101 25 0 0 0 215 $.6,971,371- 35 to 39 74 90 73 31. 0 0 268 $ 9,075,282 40 to 44 59 53 58 74 40 0 284 $10,7813,044 , 45 to 49 45 . 50 36 59 55 10 255 $ 9,690,761 50 to 54 26 17 20 17 28 18 126 $ 4,842,513 . 55 to 59 22 7 13 14 15 14 85 $ 3,111,630 i1 60 to 64 6 is 0 5 5 7 38 $ 1,383,923 ? 65 + 0 7 0 0 0 1 8 $ 262,210 Total 437 366 226 200 143 50 1,422 $50,121,128 Active Participant Statistics Average Age 41.8 years Average Service 10.2 years r. ? 21 V e ` , L ??. ?".3?: •i ?i'r^i.1,<.sirl. ±-?; Lt 'I !'' t.. ?? "S'} { 1 ? '1 ' , ? ' , ' ; L -3t , ' ' *t e?Z'''!"')• j' LS; ifl.. r L .. . ? .li ' , ?? ; ..+ [ . 1' •i' '. 'l. t1 ?3.- 11 ? ' ]i , +4 Y f•r ° S r . s S • . •. • ? .: " ?•.I- .' . ?i.i •' , ? ?} • 1 t • I . ; ,.E. t r -5.' b }? ' : I'L. b :1, :1 • , • t? ?? ?' • r r ' ' ? ? F • 9 ' i 51- :(I, ? I? ?•n. ; 'f 'S ' ' j ? 'I ?:r? ' + 1',%.I"f .°}. 1, ? ': ?.. . '1.%?. .l`.{,• 3 L .J,l, J' tl: 1 : ' ? ' • '? r ° ' ? •, ? ,1 ? ,. ..1 ' 't +? ` , !' ?Li I? j f . I r. I .? ;.i. • ik ,,?.! s' ;l,a. , , Ir. `? : ? ?,b i' ':za k' ., ; , to f ? ?`.. tA,.• :, f'.'`t• it .i, 'cl(t?' 't,b? tt i [_ `i'•rf 1 r., i .I r I •. . 1 , • ' ' M`wr .:srh/Fr.C'4.C'1??s"!fi'L?li!?u T??S:d'7: i7RSIJCe1..?'`r-..ai !' r iw. .? F. mr•erul'Y1n:r.: Ir :E°1k ?.4.?,?.. :?•? .. s_.rn?. ' r t '..;;Wx;.o,n s?, Y.6 r} cwb ,.>' t '.3., .: hi. JC't. 54 y':?s` .e ti t ' .1,.,',?is s, 77 ' CITY, OF. CLEARWATER EMPLOYERS' PENSION PLAN : . SECTION V - CENSUS DATA (continued) C. •nac+ ve P rtic ant ousit and Benefit as of aanua 6 , Number of Annual. -? Participants en fit Terminated Vested Participants 8 $ 72,640 ?. Retired Participants and Beneficiaries 399 $5,742,148 I rl 22 Ewrr?.n..t'a:k.::rvsr»?7+:Y„<°?'{:', f d .'`rdr< .,?,..-.?a,,,......,.. r ,. r• ?..:r ..:r.•irr„ .•i- w .''': ';F' `- ...t...:f'. l CITY of CLFARWATER EMPLOYEES' PENSION PLAN SECTION VI - ASSUMPTIONS AND METHODS. A. Actuarial Assumptions Jaye ment Yield: The investment rate of earnings is assumed to be 7% per annum. Nor-t-ality: Mortality was based on the 1983 Group Annuity Mortality Table for Males with female ages set back six years. Withdrawal: Pre-retirement withdrawals are assumed to occur in accordance with standard scales of moderate turnover rates (Scale 255) for males and heavy turnover rates (Scale 355) for females. Sample rates are shown below: Age 20 25 30 35 40 45 50 55 60 and over Rate of Withdrawal Male female 14,9V 37.41 9.9V 22.4V 6.9V 14.94 4.9% 10.4% 2.84 7.44 1.74 4.34 0.44 2.74 0.04 0.9$ 0.04 0.0lk 2isabil.ity: ' Pre-retirement incidence of disability is assumed to occur in accordance with a standard scale of moderate disability rates (Class 1, 1952 Inter- Company). Rates for females are assumed to be double that for males. Sample rates for males are shown below: AQe Incidence of Disabilit 20 .174 25 .174 30 .174 35 .184 40 .204 45 .234 50 .294 55 .394 60 .594 65 1.044 70 1.744 Service vs. Non-service: All pre-retirement deaths are assumed to be non-service related. All incidence of disability is assumed to be service related. Salary Scale: Future salaries are assumed to increase at the rate of 54 per year, 34 due to cost-of-living, and 2% due to merit increases. 23 CITY OF CLEARWATER.£MPLOYEES' PENSION PLAN' .i s ?l w? 1 u SECTION VI - ASSUMPTIONS AND METHODS (continue) A. Actuarial Assur:sptions, (continued) Retirement Rate: Each active participant is assumed to retire on the later of the actuarial valuation date or his Normal Retirement Date. Timing of Contribution: The employer contribution is assumed to be made uniformly during the first two quarters of the fiscal year beginning on the October 1 following the valuation date. Employees Covered: All participants as of the actuarial valuation date. Spouses: Eighty-five percent (65%) of the active participants are assumed to be married (or have dependents eligible for Survivor's Benefits). Female spouses are assumed to be five years younger than male spouses. Expenses: Expenses.are assumed to equal last year's actual expenses. Completeness of Assumptions: All benefits and expenses to be provided by the Plan are recognized in the valuation. All known events are taken into. account; no current trends are assumed to discontinue in the future. B. Asset Valuation Method Effective January 1, 1999, the Actuarial Value of Assets is based on a five year moving average of assets valued at statement value. The statement value reflects an amortized value for bonds and market value for equity investments. From the statement value, actual and expected return on investments is derived. Any difference between the actual return on investments for a given year and the expected return is spread over five years. After five years the entire amount is fully recognized. However, the Actuarial Value of Assets will never exceed 1201 nor fall below So% of the market value of assets. The use of a derived value of plan assets rather than current market value will produce a more stable funding pattern for the plan by partially eliminating the effect of unusual market fluctuations. C. Actuarial Cost _ Method The actuarial cost method is the Frozen Fntrv Age-Actuarial Cast Method. Under this method the excess of the actuarial present value of projected benefits over the sum of the actuarial value of assets plus, the Unfunded Frozen Actuarial Accrued Liability is funded on a level basis over the future compensation of active employees. The portion of this excess allocated to the current year is called the Normal Cost. The Frozen Actuarial Accrued Liability is determined using the Entry Age Actuarial Cost Method. This Frozen Actuarial Accrued Liability is adjusted from time to time to reflect changes in the Plan or in the actuarial assumptions. The Unfunded Frozen Actuarial Accrued.Liability is separately amortized over a fixed number of years. 24 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION VII - SAY OF PLAN PROMISIONS This summary is intended as an outline of plan provisions and does not alter the intent or meaning of the-provisions contained in the contract and/or plan document. -Plan Year: January 1 to December 31. Eligibility': Any permanent employee shall participate in the plan immediately. ? Current Employee contributions: 8.0t of wages and salaries actually paid to a participant. Average Monthly Compensation: The total Compensation received during the last five years of service divided by sixty, Accrued Benefit: A monthly benefit equal to 2.75% of Average Monthly Compensation multiplied by the number of years of service to date. Normal Retirement: a. Eligibility (Normal Retirement Date): • Non-Hazardous Duty:,. Completion of at least 20 years of service and the attainment of age 55, or the completion of 30 years of service. e Hazardous Duty: Completion of 20 years of service. b. Normal Retirement Benefit: The participants Accrued Benefit payable as of his actual retirement date on or after his Normal Retirement Date. No adjustment applies for deferred retirement beyond his Normal Retirement Date, c. Normal Form of Benefit: A monthly annuity for the life of the participant. After the participant's death, 100% of the Normal Retirement Benefit shall be paid as a Survivor Annuity to the spouse for five years. After five years, such Survivor Annuity is reduced to 5o% of the original amount, The Survivor Annuity ceases upon death or remarriage of the spouse. Disability Benefit: a. 1ligibility: Total and permanent disability. If the disability in non-service connected, there is an additional requirement of the completion of 10 years of service. 25 CITY OF CLEARWATER EMPLOYEES' PENSION PLAN SECTION VII S 22MY ,oF PLAN PRQVIS-I"N (continued) Disability Beng ,tom,, continued: b. gisability Benefit: The participant's Accrued Benefit, payable immediately, ` If the disability is service connected, the Disability Benefit must be at least 66.67V of Average Monthly.Compensation. C. Form of Benefit: A monthly annuity for the life of the participant. After the participant's death, a Survivor Annuity is provided as described under the Normal Form of Benefit. Death, a. Eligibility: Any actively-employed participant. b. Death Benefit: ' The participant's Accrued Benef it, 'payable immediately. if death is service connected, the Death Benefit must be at least 75V of Average Monthly Compensation. C. Form oK Benefit: A monthly Survivor Annuity as described under the Normal From of Benefit. Vested Termination: a. Eligibility: Completion of 10 years of service. b. Termination Benefits: The participant's Accrued Benefit payable as of his Normal Retirement Date, provided Employee Contributions are not refunded, c. Form of Payment: A monthly annuity for the life of the participant. After the participant's death, a Survivor Annuity is provided as described under the Normal Form of Benefit, beginning at the latter of the participant's Normal Retirement Date or date of death. Non-Vested Termination: a. Eligibility: Any actively-employed participant, b. enefi : Refund of Employee contributions without interest. C. Form of Benefit: Lump sum. 26 SrJt. ,-S ''t' -:r L`= '! '_F ':?° 'r • , '?5•? ? ?I .. "71,. ,1., ; ? 1 r , d ' 1 ' •1''+ r ( ,'t' ,I ? t' i j ' • , . ?>1. `f r ? ? I? .. ? ' .. +'. . i c ' E . k^. i ?a?' I 1 ?ti. • , :.1: ' ???I. ? e • pF. ? ? , ' r ' 3,M: '-: .3 ' . .. F t, . I .1j f .. 'F ri ?? ,. ? i ? , ' ?, k f k? ?[ ?S ????ss f` t +rMbnMtl'Ti'SY:.•%?rj f4?i S+Fi??+'V.S'hX.lfY lt!h??'d?Pfl'fM.irylk! Y G '` ? 1. 'i ; . r ? 4. ...•..+y. t? .. ... . . rte. t 1. _ , iE n Ny?r°Sp &f T o b M r .? 404 46 44 ri 4A 401 C p H p O• ?. ?lSZ.'C d Z 7 Z 29 L ap 10 V Z FAA Y ~ ru to r • d N O• OIL ?' r... ?? W cc C) N mi N Ch W? N v N !? j C6 N w? ? M N ."a N a N C N f' x ue o s:x .- s z s• x s ?? o p 10 u N O N • :t ' r L u • ? 4 ? 4K ?S•i '1•' dC t t K Vl Z Z Z S 'S `?[ r' O O I 'A m 'a N 1 u ` mw to y M M ?y w u a? p a 4 m o e W p Ctl ?. H _ ? w LL ? n• 'S7 ? y ?+ o V ] L J.l •? ' 1 ..,r w o y•U v ?. r N Ia+ w Z v ?+ p v ? ? 7 a •+C 4U 'i IV it 14 L. M W V) Z dC I ? 1 +' ?, , .f1• `. '•;l ` ? CY ,r4 r '? 'f4 • .. - ±+' i ?ti i ` 'j 1 • ? . i : ;; ! ' 1 I?wl...r,wp•,.•,?.r?:;I4°,".Ji'',k,'; tEU i?.`. _iy: c ???F!lgs? ?:;r'1 - 1x.. ,•I .,, .. ...._ n . .11: , , 1 l a . ,• n ' ' f ., r r ....- . ,....,. .. . , .... N.. .. . .. : u: . . ?a• 5'r:? .'r. ,. _ ''"', M ;IV pp ?yy r N ? ? g V V ? O ~ l , . s0 G7 Q q KI ? N 0 ry w' 1? W V M ?spp t[yy? N M +r ?? . N M N {y N N ' -, ? Nm ? ? ti a KK+K _ , K i s t ?C a 3 c : r 4 i7 ? fVM M per C)MM .;.7 ' d x ?p ?O, W N d = V1 N Oh?Oh co t t ? ' y ~.Nppa?,O MM S 1!1 Co M ?A 4I Iof1000sNd M ?!? Ln V5 .w0dN ?p ? pM s ? GI M M / r 1n t .t u '? pfd ' 61 _ W { I'f 1?s0 ?1 ?l f? 9Ln rr"I..o W ry O N M a ' w ' G ' hMO C6 .- r o rn a .t a vv N Z. ' w . N M M N t4 O . no ?u r °C & co?• ? co o V, :t a 1° ?o N u a 4 a sa3 oa X17 -, o N ? Ln, C:7 . - ui c w ? K L t i7 l p s ? ?T tiCgNw N M rT N1?- w ?t s 0 M q mwCK 41 03 12^ - ll ti ?? o ?rnm - v v a +c x u ± ?•' N ;; r G% tiTNLA Ln N co ' y D•M0.1 V •9 NM ? -" f f? S sQ r a NN v ! ? M N (•. jI L.1 I H N • C ? 1 y RF ' SKS o C w u u " . W C.7 y +F , C t , ` L Q?yy Y in ? •L 6 ro G w yy p N y lµ] ,.. 0 ~ GD ?+ an d K .a q? .0 ' y } z nC E y rA ' MMyeM N I ' Y C u a x ti r- .J X ! F - O W ..? , , Q u K y ?otq A .? '! Isl'1?.. Y .' ,.? .s,, ?•? ' ? ? is ?v. ' ' ` ? ., ,i.. .. .. ? , r...,:..t•?1'{5v1C:77P?r"':'n Ri1!d3. ?4e;.o., mu....,4.. .. .. .. n ,.?,?.. ,t??-?.e. r... 'r . :1.?'?;{•. ? ..r I ? ,. ;3?' r 'r' ?,. '?' r ,, s• ? ` W? M { Y a pp?pp O N P w y? Ott?VM M r' V1 W M N N N N N N t ' Nit i IA v X Z N r O go M O? H N 0, a. Y N N N N N ., ifl Z Z Z Ky Y [V ;.? to ? w x ? r+ v n N N N N ' N m CL l ? kn p ip CA M=PM to ?w CN ti r N .p r 7 W N N N N W r? ? Ql ?a 0. LA cc I w a u tixzs x ti to ?n r? O ?.t ?? O N N V N 1/'f fti Hdy¢ P CC 1? CD N N %0 U N N N N N N N N N N N N . Ml N p } !- t„ xxx x m N .?Oqq G N y ti LO r a+ x q m N VA Ln M N N H N u ? O ( co o u iW 1 M O { d m fA 61 p7 r ?cc O : .8 e 41, N ` •p . O o v d 4J ta "? o? u o m ' C N 4?. 6. t L m L v ?! k r ?? ni A v C Z' -K s- ., ' V O fx ?. x C in L C w a p y m x a+ o v O ? u? ?q? •p V 6F U V L? L. ^ y i N L. 7 w aI u n ?..+ KUUU o 0 0? uasrm3 as .. . ?'? OC C3 1"' Z y, L. Q S M 6r M- a+ 6 A 1.A1 CO 10 u U u R d Y1 ? Z V1 dK w. d J l.j ,?;? r !' .t', • .; ?.; `. ,I' ; F.I. ? .., ?., f.. .F.I. .. •'1 '`1'' A/ ,1" , ,??. .f.'• .?p' ,i. •.I1, ,?• a ,• ? I• ; I.?i - , •?lF4f{k?•.?"``?4?''rKppf,?;(r'!r??l,''+ H} I y:Fai,,l.`'zP.! r ??e 5' ? ' f i , ?i'.'i.. S•.. .,?.?3:.?- .?:. ,471fv9'rv?!?? ?,,... „ •1t1<r 1 'k 4+4x''i.Y'<:r.:•n-., ; >, ''»,zs:'' :?. t.:, .. ,... ,?.,.. ., 5'-. MwuFk'?ki. ? i. ??:'o•E°?•?4r"if"_ r,.?' :?. i.., .sr^'E.:-7F.r?l, ": r?4.'..??, 3•"!?•" y.'.L , r `t M N lam, h of f V i . w in 5'I V1 O? .T ?? .•• r w ' C3 0 w I M1 N fV t. • %0 . M N t ,,?y M ?+, ., [V N wt N?N II1 Y iln M ?p 1°n G N C?O p7 d NCO pn N ? ru x -? M +! O• 1 ri R co N O at ov of v M M Rf ?O tv rv ui , j r 7 N M .0 M N 0 I > i' ui a N M N fn N $' 16 W p - W 1 u ? a W i {.1 41 m n_ N .... W }, L CL CC 0. O .L1 ? y Z 46 Vy ?.r ? yC ? t L ? L L 1'B? C W+ LSJMn q C m C C4 •? a+ ML- - F N q Vp" 'fl ?' O O O tj p r. p .? u •i • O L 0 L a ? k O ?'! O ]! ++ 1r tea' ''? 4 ? fa 61 " #A U. 'A 9u -C Li O a W = . 0. t N .C, Fa• .? 4 H v Li , i1 ' • ? f Vi 1 i, ?- ? !' ! . hi:e : 1 ?, ?5 ? ,? S ' ? - ? ? • '? e • 5 ' , ' , • ,. . „ il' ? ?° • ? ? f 1. , ? - -,f'.t .1 } 4 1 5?' ? ? '?' e r L ' ? • ', t . , x. ,4 ? j a ,? i 5, , l , , i ' , e r . r '? l . ' ?• . - ? • r - -w+w?e+.'ir1Yi'tF:-??)i{ ?? I ii?'? .,. 5 '`'??P?i i}Y, ?%:?.':`iT?Yi ? ""#e..^w'e•+yrM +-.?. ? ? r .?. ,F rr. t; •r't? fi ? e, . ..! l s :.. 'd''- 4 ,.t .? .,, .E, .. ? . ,' r i ?? f': i C ? e'?i xi'? • 4r'f f ':. . ;!'{ ' ?1' s ?' ?` " .. .. , r . „ j . , , . .k '. ;F' i?••' r, ... r .... , ' Ln a g d pdp S7 ? O. t0 u ° a LA Ma fg) kn a •? - N N N N M ' = N w .} ry W ?O .7 .. ? M ? H . ru n - s o,co Lna k N N 064 N N , e QI N • Pi OC C P7 p C2 .- 1n CO - M tv LM w .. N CD It ru 3 W NM NN NN A W 0. -? • L= ! ? N O d d O MM M ? , tltl i tX ui w O ? 6t ? O ?fV !A M d 11'1 ,. GS C , iL 0 u1 ?t K7 M O. O l? pp,. O. OC -. , C W w v N /? M ' { d z CO ry ry ? # u ? c = NN MN MN ` ?f . Lf - O t A L A m M s LA a- d 10 N N N N N N N • !A 0 1 ' a •s o 14 L m ? J O G N M - l7 L 7 ^ V d V N y° q u a .? . r U O N? w a 0.$ u m 41 -[ W -C W 4,1 N ' p qc w ' V ?+ V1 id ?/ U u u d ?+ 1• O 4 q p q W q 10 ? 3 j tx! a. L6 Al CrrY'OF CLEARWATER EMPLOYEES PENSION FUND PERFURMANCE TO DATE Last Last From Periods Famed Dc1 xtbl1.1995 , , Last Qj?artcr Last Year 3 Yem 5 Ye-ML 6/82 Inc?pli Aeltus Investment Management Equities 1.90% 36.28% 14.74% 16.74% 19.92% Total Fund 1,87 34.42 14.17 15.99 18.87 Denver Investment Advisors Equities 1.34% 30.52% 16.12% 23.78% 19.71% Total Fund 1.32 28.90 15.57 22.91 18.81 Hanson Invevtmerit Management I? Equities. 5.51% 34.98% 9.239, 15.19% - Total Fund 5.39 33.41 8.82 14.47 - Equity Managers Composite Equities 2.61% 33.71% 13.73% 18.66% - Total Fund 2.56 32.05 13.26 17.91 - Shields Asset Management Fixed-Income 4.58% 17.82% 8.07% - - Total Fund 4.45 17.51 7.95 - - Eickhoff, Pieper & Willoughby Fixed-Income 5.49% 21.30% - - - GICs 1.57 6.70 7.88 - - Total Fund 2.61 9.57 8.34 - - Composite Fund Total Fund(1) 2.97% 23.07% 10.77% 13.43% - Market Indicators Standard & Poor's 500 5.95% 37-51% 15.25% 16,57% 17.69% Lehman Brothers Aggregate 4.26 18.46 8.07 9.47 12.21 Lehman Brothers Govt/Corp 4.66 19.24 8,51 9.80 12.08 Customized Benchmark(2) .4.18 17.98 7.85 9.23 11.99 Treasury Bills 1.33 5,71 4.37 4:50 6.72 Consumer Price Index 0.20 2.52 2.58 2.68 3.30 (1) Includes the In-House Account. (2) City of Clearwater ordinance prohibits Shields Asset Management from investing in Fixed-Income below Aa rating. For explanation of market indicators and comparable funds see end of report. Rates of return for periods over one year are annualized. e 0 t ,r CITY OF CLEARWATER EMPLOYEES PENSION FUND RECENT PERIODS l 1 Rc=t lkdnd.% 1995 1224----- 1223- j222 1221 Aeltus Investment Mari Wawni Equities 36.28% 2.289'0 8.37% 1.329'0 41.67% Total Fund 34.42 2.88 7.60 1.04 39.67 Denver Investment Advisors Equities, 30.52% (0.20)% 20.2096 8.62% 70.88% Total Fund 28.90 0.82 18.79 7.68 68.73 Hanson Investuent Management Equities 34.98% (4.51)% 1.12% 10.92% 40.30% Total Fund 33.41 (4.27) 0.90 10.56 37.93 j Equity Managers Composite Equities 33.71% (0.38)% 10.45% 6.35% 50.35% Total Fund 32.05 0.20 .9.79 5.86 48.18 I Shields Asset Management Fixed-Income 17.82% (2.69)% 10.09% 8.88% - Total Fund 17.51 (2.33) 9.61 8.42 - Eickhoff, Pieper & Willoughby Fixed-Income 21.30% - - - - GICs 6.70 7.87 9.09 9.02 - Total Fund 9.57 7.00 8.45 8.67 - CDMPcsite Fund Total Fund(1) 23.07% 1.01% 9.33% 6.65% 29.55% Market Indicators Standard & Poor's 500 37.51% 1.27% 9.91% 7.69% 30.55% Lehman Brothers Aggregate 18.46 (2.92) 9.75 7.40 16.00 Lehman Brothers Govt/Corp 19.24 (3.51) 11.03 7.59 16.13 Customized Benchmark(2) 17.98 (2.83) 9.43 7.19 15.65 Treasury Bills 5.71 4.32 3.11 3.61 5.80 Consumer Price Index 2.52 2.72 2.50 2.86 2.81 (1) Includes the In-House Account. (2) City of Clearwater ordinance prohibits Shields Asset Management from investing in Fixed-Income below Aa rating. For explanation of market indicators and comparable funds see end of report. l 9[ CITY OF CLEARWATER EMPLOYEES PENSION FUND RECENT PEJODS He= ftda& 1994 1223 12V 1221 ?. .... Aeltus Investment Management Equities 36.28% 2.28% 8,37% 1.32% 41.67% Total Fund 34.42 2.88 7.60 .1.04 39.67 Denver Investment Advisors Equities 30.52% (0.20)95 20.20% 8.62% 70.88% Total Fund 28.90 0.82 18.79 7.68 68.73 Hanson Invest Managrement Equities 34.98% (4.51)9'0 1.12% 10.92% 40.30% Total Fund 33.41 (4.27) 0.90 10.56 37.93 Equity Managers Composite Equities 33.71% (0.38)9'0 10.45% 6.35% 50.35% Total Fund 32.05 0.20 9.79 5.86 48.18 Shields Asset Managem=t Fixed-Income 17.829'0 (2.69)9'0 10.09% 8.88% - Total Fund 17,51 (2,33) 9.61 8.42 - Eickhoff. Pieper & Willoughby Fixed-Income 21,30% - - - - GICs 6.70 7.87 9.09 9.02 - Total Fund 9.57 7,00 8.45 8,67 - Composite Fund Total Fund(1) 23,0790 1.01% 9.33% 6.65% 29.55% Market Indicators Standard & Poor's 500 37.51% 1.27% 9.91% 7.69% 30,55% Lehman Brothers Aggregate 18.46 (2,92) 9,75 7,40 16,00 Lehman Brothers Govt/Corp 19.24 (3.51) 11.03 7,59 16.13 Customized Benchmark(2) 17.98 (2.83) 9.43 7.19 15.65 Treasury Bills 5.71 , 4.32 3.11 3,61 5.80 Consumer Price Index 1.52 2.72 2.50 2.86 2,81 (1) Includes the In-House Account. (2) City of Clearwater ordinance prohibits Shields Asset Management from hrvesting in Fixed-Income below Aa rating. For explanation of market indicators and comparable funds see end of report. l f t H9 11 • Trustees of the Employees' item #: Pension Fund Meeting Date: •i• "; A ends Cover Memorandum SUBJECT: RFP for Pension Administration Services for Employees' Pension Plan RECOMMENDATIONIMOTION: Approve the expenditure of $6,000 for Winner & Company to revise and analyze an RFP for pension administration services; prepare a recommendation to staff and the City Commission; and coordinate the transition and implementation of the outsourcing © and that the a ro riate officials be authorized to execute same. BACKGROUND: The changes to the Employees' Pension Plan that went into effect in the current year change the plan to an IRS qualified plan which can be quite complicated to administer. Staff has .determined that the services of a Third Party Administrator will be required. As stated in the attached Scope of Services letter submitted by Witmer & Company, they will provide the listed services for a price of $6,000. Staff has decided not to proceed with item II mentioned in.this letter at this time. Witmer & Company was hired in October of last year to prepare this same RFP for a cost of $8,000. Unfortunately, due to the lack of time between the approval of the plan and the beginning of the next calendar year (needed to hire a firm by 111196) only 2 bids were received, and neither was acceptable to staff: It was decided at that time that staff would self administer the plan for 1996. Wittner & Company was paid only a portion ($4,500) of the $8,000 fee for the work actually done. They were not paid the balance since no implementation was required. Staff has been satisfied with the services provided by Wittner and Company. Funding is available in the Employee's Pension Fund. Reviewed by: originating department: Costs: 86.000 Commission Action: Legal NIA Finance ? Approved Budget L-M.'A Total 0 Approved w/Conditions Purchasing IA User Department: ? Denied Risk Mgmt. NIA Current Fiscal Year © Continued to: is NIA Funding Source: ACM e ? Capital lmprovernent: Other Advertised: ? Opt?ating: Date: ? Employees' Attachments: Other: Pension Fund paper: pension Project Face Submitted by: ? Not Required Appropriation Code Affected Parties: 646.07410-530100-585.000 ? Notified ? None City Manager ? Not Required 1' Printed on recycled paper City of dea rwater Pension Project Fees I. RFP FOR OUTSOURCING OF PENSION SERVICES - S6,OW ' Scope of Semces A. Focus meetings with staff 2. Revising RFP based on cutMt City requirements. 3: Preparation ofbiddem list for distnlmtion by Purchasing Department. 4. Bid.anelysis - financial, adminiatrative efficiency and sr-Am. 5. Roconmrrndation to staff and commission. 6. Houtsourcing is elected, coordinate trarWdon and impltmrntation. IL COST ANALYSIS FOR IN-HOUSE PENSION ADMDUSTRATION - $9,000 The focus will be on 1: Cue- nt status vs. actual needs if administration remains in-house. 2. Cost an*als of aunwa in-house process vs. 0ut40Un:inX Organizadond auditlannlyais of all phases and components of current pension administration: - cuff= staffing Work Sow an&ysis - Inter-departmental interaction - Training needs • Current hawwarelsoftware - Outsourcrd lcgWacttwial needs and costs - Risk and fittbilit}* Cost estimates'ofin•house administration to the City. Cost projections of arty recommended changes to staffing if administration remains in- house. & COMPANY of