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12/06/2010 - Special Work Session SPECIAL WORK SESSION AGENDA Council Chambers--City Hall 12/6/2010 - 1:00 PM 1. Call to Order 2. Council Discussion Items 2.1Discuss City of Clearwater Employees' Pension Plan's Plan Design Study as submitted by the actuary. Attachments 3. Adjourn Special Work Session Council Chambers--City Hall Meeting Date:12/6/2010 SUBJECT / RECOMMENDATION: Discuss City of Clearwater Employees' Pension Plan's Plan Design Study as submitted by the actuary. SUMMARY: Review Approval: 1) Financial Services 2) Office of Management and Budget 3) Clerk 4) Assistant City Manager 5) Clerk 6) City Manager 7) Clerk Cover Memo Special Work Session on Pension Changes December 6, 2010 1:00 p.m. Council Chambers – City Hall I. Call to Order / Opening Remarks by Mayor II. Introductions – Joe Roseto, Human Resources Director III. Gabriel Roeder Smith & Company Presentation – J. Stephen Palmquist, A.S.A.,M.A.A.A. IV. Council Discussion V. Next Steps VI. Adjourn Attachment number 1 Page 1 of 1 CITY OF CLEARWATER (03/2<((6¶PENSION PLAN PLAN DESIGN STUDY 30 YEAR PROJECTION OF REQUIRED CITY CONTRIBUTIONS Attachment number 2 Page 1 of 38 Attachment number 2 Page 2 of 38 October 20, 2010 Ms. Margaret L. Simmons, CPA Finance Director City of Clearwater 100 S. Myrtle Avenue Clearwater, FL 33756 Re: &LW\RI&OHDUZDWHU(PSOR\HHV¶3HQVLRQ3ODQ Dear Margie: As requested, we are providing a plan design study on WKH&OHDUZDWHU(PSOR\HHV¶3HQVLRQ Plan. In order to compare the costs of various options, the attachments illustrate a 30 year projection of funding requirements under several scenarios. The results are based on census and asset data as of January 1, 2010 as well as overtime pay data provided by the City for the 2009 calendar year. Except where otherwise noted, all results were developed using the same actuarial assumptions and methods as outlined in our January 1, 2010 Actuarial Valuation Report. Maintaining Current Plan Under this scenario the Plan is maintained with the current provisions. As you can see from the attachment, the annual costs are projected to increase both in dollar amounts and as a percentage of payroll in the first few years. This is directly caused by the poor asset performance in 2008. If future Plan experience is in line with the actuarial assumptions, we would expect the annual cost as a percentage of payroll to begin to decrease in about 10 years. This is because asset losses will become fully recognized and the current amortization bases (Page 9 of the valuation report) will become fully amortized as time passes. Modifying Plan Provisions We have estimated the cost savings derived from various changes to the Plan. The potential changes include: 1. Change the normal form of benefit to a life annuity for non-hazardous duty employees and a 10-year certain and life annuity for hazardous duty employees. 2. Eliminate overtime pay from pensionable wages. 3. Decrease the multiplier for future service from 2.75% to 2.5% for non-hazardous duty members. 4. Decrease the multiplier for future service from 2.75% to 2.5% for all members. 5. Increase the employee contribution requirement from 8.0% to 9.0% for non-hazardous duty members. 6. Increase the employee contribution requirement from 8.0% to 9.0% for all members. 7. Replace the hazardous duty normal retirement eligibility option of 20 years of service regardless of age with age 52 and 25 years of service. 8. Eliminate the non-hazardous duty normal retirement eligibility option of 30 years of service regardless of age. 9. Change the non-hazardous duty normal retirement eligibility option of age 55 and 20 years to age 60 and 20 years. 10. Reduce the annual cost of living adjustment (COLA) from 1.5% to 1.25%. 11. Require a five-year wait after retirement for the 1.5% COLA to begin. 12. Change the line of duty disability from not less than 66 2/3% of final average pay to 42%. Attachment number 2 Page 3 of 38 Ms. Margaret L. Simmons October 20, 2010 Page 2 13. Close the Plan for non-hazardous duty members and provide a defined contribution plan with an 8% contribution by the City. 14. Close the Plan for all members and provide a defined contribution plan with an 8% contribution by the City for non-hazardous duty members and a 15% contribution by the City for hazardous duty members. 15. Lower the maximum benefit to 75% of final average pay. 16. Lower the maximum benefit to a fixed dollar amount of $80,000. These changes could be applied strictly to future employees or to all current active employees. The former case is often referred to as a two-tier system since employees hired after a certain date receive a different benefit level. The enclosed exhibits show the savings of each of the above plan modifications both if applied to current DFWLYHHPSOR\HHVGHQRWHGZLWKDQ³$´DQGLIDSSOLHGRQO\WRIXWXUHHPSOR\HHVGHQRWHGZLWKD³%´,Q the scenarios where the modifications apply to current active members, we assumed that members who will be eligible for normal retirement as of January 1, 2011 will not be subject to the change. As illustrated in the exhibits, using a two-tier system results in a more gradual reduction in cost savings than applying the changes to all active members. Effect of Closing Plan to New Entrants As the result of any change which closes the Plan to future hires, the expected future working lifetime of members will decrease as the population matures. Under the current actuarial funding method, Frozen Entry Age Normal, the required contributions will not be high enough in the early years, before most active employees are retired, to significantly reduce the shortfall between assets and liabilities. For this reason we recommend changing to the Aggregate Cost Method. We also recommend that the asset return assumption be lowered in the future as the time frame for the Plan becomes shorter. For the plan change scenarios in which the Plan is closed to all new hires (Modified Plan #14A and #14B), we have reflected the Aggregate Method in our projections. For the plan change scenarios in which the Plan is maintained for current hazardous duty members but closed to non-hazardous duty employees (Modified Plan #13A and #13B), we have continued to use the Frozen Entry Age Normal method in our projections. Implementing a Defined Contribution Plan We analyzed the impact of implementing a defined contribution plan. One option is for current members to continue accruing benefits under the existing plan provisions while providing new participants with a defined contribution plan in lieu of the existing pension plan. Modified Plan #13B shows the effect of closing the Plan to future non-hazardous duty members, and Modified Plan #14B shows the effect of closing the Plan to all future members. Although this option would provide long term cost savings to the City, initially the required contribution by the City in Modified Plan #14B would increase due to the change in funding method described above. Under another option, accrued benefits for current members under the existing plan would be frozen. New hires and current members would both enter the defined contribution plan. Modified Plan #13A shows the effect of this change for non-hazardous duty members (except those who are eligible for normal retirement as of January 1, 2011). Modified Plan #14A shows the effect of the same change in plan design but for both hazardous duty and non-hazardous duty members. Attachment number 2 Page 4 of 38 Ms. Margaret L. Simmons October 20, 2010 Page 3 Income Replacement in Retirement One factor to be aware of when considering plan changes is the adequacy of total retirement benefits for your employees. Most experts believe a retiree needs to replace at least 70% of their preretirement income. Currently, an employee retiring at age 65 with 25 years of service would have a little over 68% of their preretirement income replaced by the Plan. Based on this simple calculation it appears your current plan is adequate for employees who retire with a considerable amount of service with the City. Variability of Funding Requirements Funding requirements are determined based on assumptions about future events which affect the plan. For example, your funding requirement is determined based on the assumption that future investment returns will be 7.5% per year. Other assumptions include mortality rates, turnover rates, salary increases and retirement rates. When plan experience is less favorable than the assumptions, funding requirements increase. For example, funding requirements have been increased due to recent investment returns below 7.5%. This report is intended to describe the financial effect of the proposed plan changes. No statement in this report is intended to be interpreted as a recommendation in favor of the changes, or in opposition to them. Since some of the changes involve a reduction in benefit accrual, we recommend that you consult with your legal counsel before making any decisions. The calculations are based upon assumptions regarding future events, which may or may not materialize. They are also based upon present and proposed plan provisions that are outlined in the report. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, that important plan provisions relevant to this proposal are not described, or that conditions have changed since the calculations were made, you should contact the author of this report prior to relying on information in the report. If you have reason to believe that the information provided in this report is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the author of the report prior to making such decision. As indicated below, the undersigned is a Member of the American Academy of Actuaries (MAAA) and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion herein. We welcome your questions and comments. Sincerely yours, J. Stephen Palmquist, ASA, MAAA Duane Howison, FSA Senior Consultant & Actuary Consultant & Actuary Attachment number 2 Page 5 of 38 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%16,486,01020.49%2,875,982 201283,660,92722,106,07626.42%19,170,65222.91%2,935,424 201387,007,36425,845,81929.71%22,846,57426.26%2,999,245 201490,487,65929,251,46332.33%26,185,93428.94%3,065,529 201594,107,16527,097,15328.79%23,962,68425.46%3,134,469 201697,871,45227,229,11127.82%24,023,09424.55%3,206,016 2017101,786,31027,671,69827.19%24,391,33523.96%3,280,362 2018105,857,76228,017,83826.47%24,659,89523.30%3,357,942 2019110,092,07228,390,63325.79%24,952,38322.67%3,438,250 2020114,495,75528,753,60225.11%25,231,73222.04%3,521,870 2021119,075,58629,332,77024.63%25,724,09921.60%3,608,671 2022123,838,60929,943,48424.18%26,244,32421.19%3,699,159 2023128,792,15330,591,45623.75%26,798,23920.81%3,793,217 2024133,943,83931,281,51823.35%27,390,73420.45%3,890,784 2025139,301,59331,704,93922.76%27,712,87419.89%3,992,065 2026144,873,65732,486,06822.42%28,389,15719.60%4,096,911 2027150,668,60332,065,46021.28%27,860,03818.49%4,205,422 2028156,695,34729,940,22619.11%25,621,85316.35%4,318,373 2029162,963,16130,982,71919.01%26,547,37016.29%4,435,349 2030169,481,68832,078,59218.93%27,522,21316.24%4,556,378 2031176,260,95528,805,76416.34%24,124,23913.69%4,681,525 2032183,311,39330,012,99316.37%25,201,74113.75%4,811,252 2033190,643,84933,867,10217.76%28,921,62415.17%4,945,478 2034198,269,60335,202,40917.75%30,118,20615.19%5,084,203 2035206,200,38736,602,20517.75%31,374,32215.22%5,227,883 2036214,448,40338,065,24817.75%32,688,32815.24%5,376,920 2037223,026,33939,593,67017.75%34,062,12015.27%5,531,551 2038231,947,39242,422,09318.29%36,730,05515.84%5,692,039 2039241,225,28844,086,28518.28%38,227,59115.85%5,858,694 2040250,874,29945,823,67918.27%39,792,02015.86%6,031,659 Total 948,614,066822,961,442 125,652,623 Total Present Value 339,201,257295,878,565 43,322,692 Plan Modifications Under the Current Plan, the normal form of benefit is a life annuity with, after the participant's death, 100% payable to the spouse for five years and 50% payable thereafter. Under Modified Plan #1A, the normal form of benefit is changed to a life annuity for non-hazardous duty members and to a ten-year certain and life annuity for hazardous duty members. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan ARC ARC Modified Plan #1A 1 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%18,164,54622.58%1,197,446 201283,660,92722,106,07626.42%20,723,27824.77%1,382,798 201387,007,36425,845,81929.71%24,425,50028.07%1,420,319 201490,487,65929,251,46332.33%27,792,27330.71%1,459,190 201594,107,16527,097,15328.79%25,597,61027.20%1,499,543 201697,871,45227,229,11127.82%25,687,67226.25%1,541,439 2017101,786,31027,671,69827.19%26,087,30825.63%1,584,390 2018105,857,76228,017,83826.47%26,388,83524.93%1,629,003 2019110,092,07228,390,63325.79%26,716,07724.27%1,674,556 2020114,495,75528,753,60225.11%27,031,61623.61%1,721,986 2021119,075,58629,332,77024.63%27,561,85023.15%1,770,920 2022123,838,60929,943,48424.18%28,121,82322.71%1,821,660 2023128,792,15330,591,45623.75%28,717,57622.30%1,873,880 2024133,943,83931,281,51823.35%29,353,49121.91%1,928,027 2025139,301,59331,704,93922.76%29,720,69121.34%1,984,249 2026144,873,65732,486,06822.42%30,443,46421.01%2,042,604 2027150,668,60332,065,46021.28%29,962,88419.89%2,102,576 2028156,695,34729,940,22619.11%27,775,46417.73%2,164,761 2029162,963,16130,982,71919.01%28,753,83617.64%2,228,883 2030169,481,68832,078,59218.93%29,783,31817.57%2,295,273 2031176,260,95528,805,76416.34%26,441,83615.00%2,363,928 2032183,311,39330,012,99316.37%27,577,91715.04%2,435,076 2033190,643,84933,867,10217.76%31,358,52516.45%2,508,577 2034198,269,60335,202,40917.75%32,618,01716.45%2,584,392 2035206,200,38736,602,20517.75%33,939,35516.46%2,662,850 2036214,448,40338,065,24817.75%35,321,10616.47%2,744,142 2037223,026,33939,593,67017.75%36,765,38616.48%2,828,284 2038231,947,39242,422,09318.29%39,506,62217.03%2,915,472 2039241,225,28844,086,28518.28%41,080,23517.03%3,006,050 2040250,874,29945,823,67918.27%42,723,73917.03%3,099,940 Total 948,614,066886,141,850 62,472,216 Total Present Value 339,201,257318,107,497 21,093,759 Plan Modifications Under the Current Plan, overtime pay is included in pensionable earnings. Under Modified Plan #2A, overtime pay is excluded from pensionable earnings. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #2A ARC ARC 2 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%18,698,21723.24%663,775 201283,660,92722,106,07626.42%21,397,77725.58%708,299 201387,007,36425,845,81929.71%25,094,03828.84%751,781 201490,487,65929,251,46332.33%28,454,73631.45%796,728 201594,107,16527,097,15328.79%26,253,66827.90%843,486 201697,871,45227,229,11127.82%26,337,45626.91%891,654 2017101,786,31027,671,69827.19%26,730,14226.26%941,555 2018105,857,76228,017,83826.47%27,023,58925.53%994,249 2019110,092,07228,390,63325.79%27,342,73224.84%1,047,901 2020114,495,75528,753,60225.11%27,649,59824.15%1,104,005 2021119,075,58629,332,77024.63%28,170,91923.66%1,161,851 2022123,838,60929,943,48424.18%28,720,81323.19%1,222,670 2023128,792,15330,591,45623.75%29,305,68622.75%1,285,771 2024133,943,83931,281,51823.35%29,930,89922.35%1,350,619 2025139,301,59331,704,93922.76%30,287,45721.74%1,417,483 2026144,873,65732,486,06822.42%31,000,53721.40%1,485,531 2027150,668,60332,065,46021.28%30,510,77720.25%1,554,682 2028156,695,34729,940,22619.11%28,313,32118.07%1,626,905 2029162,963,16130,982,71919.01%29,282,21017.97%1,700,509 2030169,481,68832,078,59218.93%30,303,45517.88%1,775,137 2031176,260,95528,805,76416.34%26,955,22815.29%1,850,536 2032183,311,39330,012,99316.37%28,085,34615.32%1,927,647 2033190,643,84933,867,10217.76%31,861,37316.71%2,005,729 2034198,269,60335,202,40917.75%33,118,13816.70%2,084,271 2035206,200,38736,602,20517.75%34,438,07216.70%2,164,133 2036214,448,40338,065,24817.75%35,819,25216.70%2,245,996 2037223,026,33939,593,67017.75%37,263,66416.71%2,330,007 2038231,947,39242,422,09318.29%40,005,71917.25%2,416,374 2039241,225,28844,086,28518.28%41,580,86217.24%2,505,423 2040250,874,29945,823,67918.27%43,226,73617.23%2,596,943 Total 948,614,066903,162,416 45,451,649 Total Present Value 339,201,257325,177,673 14,023,583 Plan Modifications Under the Current Plan, the benefit multiplier is 2.75% for all members. Under Modified Plan #3A, the multiplier for non-hazardous duty members is lowered to 2.50% for service after December 31, 2010. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #3A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 3 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%18,100,54922.50%1,261,443 201283,660,92722,106,07626.42%20,764,43924.82%1,341,637 201387,007,36425,845,81929.71%24,422,75128.07%1,423,068 201490,487,65929,251,46332.33%27,744,19030.66%1,507,273 201594,107,16527,097,15328.79%25,502,28227.10%1,594,871 201697,871,45227,229,11127.82%25,543,94526.10%1,685,166 2017101,786,31027,671,69827.19%25,892,96625.44%1,778,731 2018105,857,76228,017,83826.47%26,140,39924.69%1,877,438 2019110,092,07228,390,63325.79%26,412,55923.99%1,978,075 2020114,495,75528,753,60225.11%26,670,32823.29%2,083,274 2021119,075,58629,332,77024.63%27,140,96922.79%2,191,801 2022123,838,60929,943,48424.18%27,637,65822.32%2,305,826 2023128,792,15330,591,45623.75%28,167,31121.87%2,424,145 2024133,943,83931,281,51823.35%28,735,68321.45%2,545,835 2025139,301,59331,704,93922.76%29,033,56220.84%2,671,377 2026144,873,65732,486,06822.42%29,686,74220.49%2,799,327 2027150,668,60332,065,46021.28%29,135,90819.34%2,929,552 2028156,695,34729,940,22619.11%26,874,70417.15%3,065,522 2029162,963,16130,982,71919.01%27,778,43317.05%3,204,286 2030169,481,68832,078,59218.93%28,733,36216.95%3,345,230 2031176,260,95528,805,76416.34%25,317,83914.36%3,487,926 2032183,311,39330,012,99316.37%26,378,95314.39%3,634,041 2033190,643,84933,867,10217.76%30,084,81115.78%3,782,291 2034198,269,60335,202,40917.75%31,270,61315.77%3,931,796 2035206,200,38736,602,20517.75%32,518,12015.77%4,084,085 2036214,448,40338,065,24817.75%33,824,87715.77%4,240,371 2037223,026,33939,593,67017.75%35,192,74115.78%4,400,930 2038231,947,39242,422,09318.29%37,855,94416.32%4,566,149 2039241,225,28844,086,28518.28%39,349,66416.31%4,736,621 2040250,874,29945,823,67918.27%40,911,68216.31%4,911,997 Total 948,614,066862,823,982 85,790,084 Total Present Value 339,201,257312,721,071 26,480,186 Plan Modifications Under the Current Plan, the benefit multiplier is 2.75% for all members. Under Modified Plan #4A, the multiplier for all members is lowered to 2.50% for service after December 31, 2010. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #4A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 4 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%18,873,40923.46%488,583 201283,660,92722,106,07626.42%21,593,48125.81%512,595 201387,007,36425,845,81929.71%25,311,28429.09%534,535 201490,487,65929,251,46332.33%28,694,15031.71%557,313 201594,107,16527,097,15328.79%26,516,14928.18%581,004 201697,871,45227,229,11127.82%26,623,53327.20%605,578 2017101,786,31027,671,69827.19%27,040,59126.57%631,106 2018105,857,76228,017,83826.47%27,360,06825.85%657,770 2019110,092,07228,390,63325.79%27,705,29825.17%685,336 2020114,495,75528,753,60225.11%28,039,55424.49%714,048 2021119,075,58629,332,77024.63%28,588,93324.01%743,837 2022123,838,60929,943,48424.18%29,168,57223.55%774,911 2023128,792,15330,591,45623.75%29,784,24923.13%807,207 2024133,943,83931,281,51823.35%30,440,83422.73%840,684 2025139,301,59331,704,93922.76%30,829,52222.13%875,418 2026144,873,65732,486,06822.42%31,574,74121.79%911,328 2027150,668,60332,065,46021.28%31,117,01720.65%948,443 2028156,695,34729,940,22619.11%28,953,14018.48%987,086 2029162,963,16130,982,71919.01%29,955,66018.38%1,027,059 2030169,481,68832,078,59218.93%31,010,23418.30%1,068,358 2031176,260,95528,805,76416.34%27,694,77315.71%1,110,992 2032183,311,39330,012,99316.37%28,857,84915.74%1,155,144 2033190,643,84933,867,10217.76%32,666,34017.13%1,200,762 2034198,269,60335,202,40917.75%33,954,58617.13%1,247,823 2035206,200,38736,602,20517.75%35,305,69817.12%1,296,506 2036214,448,40338,065,24817.75%36,718,28117.12%1,346,967 2037223,026,33939,593,67017.75%38,194,38617.13%1,399,285 2038231,947,39242,422,09318.29%40,968,54217.66%1,453,552 2039241,225,28844,086,28518.28%42,576,40617.65%1,509,879 2040250,874,29945,823,67918.27%44,255,37517.64%1,568,304 Total 948,614,066920,372,656 28,241,410 Total Present Value 339,201,257330,184,778 9,016,479 Plan Modifications Under the Current Plan, the member contribution rate is 8% for all members. Under Modified Plan #5A, the member contribution rate for non-hazardous duty members is increased to 9%. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #5A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 5 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%18,549,22623.06%812,766 201283,660,92722,106,07626.42%21,262,08025.41%843,996 201387,007,36425,845,81929.71%24,966,56628.69%879,253 201490,487,65929,251,46332.33%28,335,58831.31%915,875 201594,107,16527,097,15328.79%26,143,18927.78%953,965 201697,871,45227,229,11127.82%26,235,60826.81%993,503 2017101,786,31027,671,69827.19%26,637,10726.17%1,034,590 2018105,857,76228,017,83826.47%26,940,38625.45%1,077,452 2019110,092,07228,390,63325.79%27,268,79324.77%1,121,840 2020114,495,75528,753,60225.11%27,585,54824.09%1,168,054 2021119,075,58629,332,77024.63%28,116,73623.61%1,216,034 2022123,838,60929,943,48424.18%28,677,44223.16%1,266,041 2023128,792,15330,591,45623.75%29,273,43322.73%1,318,024 2024133,943,83931,281,51823.35%29,909,55922.33%1,371,959 2025139,301,59331,704,93922.76%30,276,98221.73%1,427,957 2026144,873,65732,486,06822.42%31,000,11621.40%1,485,952 2027150,668,60332,065,46021.28%30,519,45720.26%1,546,002 2028156,695,34729,940,22619.11%28,331,72118.08%1,608,505 2029162,963,16130,982,71919.01%29,309,45917.99%1,673,261 2030169,481,68832,078,59218.93%30,338,29817.90%1,740,294 2031176,260,95528,805,76416.34%26,996,11815.32%1,809,646 2032183,311,39330,012,99316.37%28,131,43315.35%1,881,560 2033190,643,84933,867,10217.76%31,911,09616.74%1,956,006 2034198,269,60335,202,40917.75%33,169,41516.73%2,032,994 2035206,200,38736,602,20517.75%34,489,44016.73%2,112,765 2036214,448,40338,065,24817.75%35,869,71716.73%2,195,532 2037223,026,33939,593,67017.75%37,312,24616.73%2,281,425 2038231,947,39242,422,09318.29%40,051,50417.27%2,370,590 2039241,225,28844,086,28518.28%41,623,09017.25%2,463,195 2040250,874,29945,823,67918.27%43,264,35217.25%2,559,327 Total 948,614,066902,495,703 46,118,362 Total Present Value 339,201,257324,445,806 14,755,451 Plan Modifications Under the Current Plan, the member contribution rate is 8% for all members. Under Modified Plan #6A, the member contribution rate for all members is increased to 9%. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #6A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 6 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%17,614,66421.90%1,747,328 201283,660,92722,106,07626.42%21,030,77825.14%1,075,298 201387,007,36425,845,81929.71%24,701,71828.39%1,144,101 201490,487,65929,251,46332.33%28,037,10630.98%1,214,357 201594,107,16527,097,15328.79%25,810,64627.43%1,286,507 201697,871,45227,229,11127.82%25,869,01226.43%1,360,099 2017101,786,31027,671,69827.19%26,235,97225.78%1,435,726 2018105,857,76228,017,83826.47%26,504,11625.04%1,513,722 2019110,092,07228,390,63325.79%26,799,20724.34%1,591,427 2020114,495,75528,753,60225.11%27,079,36023.65%1,674,243 2021119,075,58629,332,77024.63%27,574,41323.16%1,758,357 2022123,838,60929,943,48424.18%28,098,00422.69%1,845,480 2023128,792,15330,591,45623.75%28,658,01922.25%1,933,437 2024133,943,83931,281,51823.35%29,257,42221.84%2,024,097 2025139,301,59331,704,93922.76%29,586,85721.24%2,118,082 2026144,873,65732,486,06822.42%30,272,13720.90%2,213,932 2027150,668,60332,065,46021.28%29,756,25219.75%2,309,208 2028156,695,34729,940,22619.11%27,533,08617.57%2,407,140 2029162,963,16130,982,71919.01%28,476,47917.47%2,506,241 2030169,481,68832,078,59218.93%29,471,83617.39%2,606,756 2031176,260,95528,805,76416.34%26,097,66214.81%2,708,102 2032183,311,39330,012,99316.37%27,201,27114.84%2,811,722 2033190,643,84933,867,10217.76%30,950,86916.23%2,916,232 2034198,269,60335,202,40917.75%32,181,43016.23%3,020,979 2035206,200,38736,602,20517.75%33,474,82416.23%3,127,381 2036214,448,40338,065,24817.75%34,828,56216.24%3,236,686 2037223,026,33939,593,67017.75%36,245,04016.25%3,348,630 2038231,947,39242,422,09318.29%38,958,17416.80%3,463,919 2039241,225,28844,086,28518.28%40,503,34916.79%3,582,936 2040250,874,29945,823,67918.27%42,118,55616.79%3,705,122 Total 948,614,066880,926,820 67,687,246 Total Present Value 339,201,257317,579,133 21,622,124 Plan Modifications Under the Current Plan, hazardous duty members are eligible for normal retirement upon completion of 20 years of service regardless of age. Under Modified Plan #7A, the 20 and out provision for hazardous duty members is replaced with normal retirement eligibility at age 52 with 25 years of service. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #7A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 7 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,094,36323.74%267,629 201283,660,92722,106,07626.42%21,836,22426.10%269,852 201387,007,36425,845,81929.71%25,573,68429.39%272,135 201490,487,65929,251,46332.33%28,976,93232.02%274,532 201594,107,16527,097,15328.79%26,820,13028.50%277,023 201697,871,45227,229,11127.82%26,949,46027.54%279,651 2017101,786,31027,671,69827.19%27,389,29726.91%282,401 2018105,857,76228,017,83826.47%27,732,64226.20%285,195 2019110,092,07228,390,63325.79%28,102,43825.53%288,195 2020114,495,75528,753,60225.11%28,462,31224.86%291,290 2021119,075,58629,332,77024.63%29,038,22024.39%294,550 2022123,838,60929,943,48424.18%29,645,59723.94%297,887 2023128,792,15330,591,45623.75%30,290,08723.52%301,369 2024133,943,83931,281,51823.35%30,976,46423.13%305,054 2025139,301,59331,704,93922.76%31,396,00622.54%308,933 2026144,873,65732,486,06822.42%32,172,97922.21%313,090 2027150,668,60332,065,46021.28%31,747,91521.07%317,544 2028156,695,34729,940,22619.11%29,618,07318.90%322,153 2029162,963,16130,982,71919.01%30,655,65118.81%327,068 2030169,481,68832,078,59218.93%31,746,25518.73%332,337 2031176,260,95528,805,76416.34%28,467,76716.15%337,997 2032183,311,39330,012,99316.37%29,669,00316.19%343,990 2033190,643,84933,867,10217.76%33,516,70617.58%350,395 2034198,269,60335,202,40917.75%34,845,13517.57%357,274 2035206,200,38736,602,20517.75%36,237,62717.57%364,577 2036214,448,40338,065,24817.75%37,692,97917.58%372,270 2037223,026,33939,593,67017.75%39,213,30917.58%380,362 2038231,947,39242,422,09318.29%42,033,23418.12%388,860 2039241,225,28844,086,28518.28%43,688,52518.11%397,760 2040250,874,29945,823,67918.27%45,416,57218.10%407,106 Total 948,614,066939,005,586 9,608,480 Total Present Value 339,201,257335,676,635 3,524,622 Plan Modifications Under the Current Plan, non-hazardous duty members are eligible for normal retirement upon completion of 30 years of service regardless of age. Under Modified Plan #8A, the 30 and out provision for non-hazardous duty members is eliminated. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #8A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 8 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%17,929,51422.29%1,432,478 201283,660,92722,106,07626.42%21,347,91525.52%758,162 201387,007,36425,845,81929.71%25,045,61928.79%800,200 201490,487,65929,251,46332.33%28,407,93631.39%843,528 201594,107,16527,097,15328.79%26,208,54627.85%888,608 201697,871,45227,229,11127.82%26,294,27626.87%934,834 2017101,786,31027,671,69827.19%26,689,06626.22%982,632 2018105,857,76228,017,83826.47%26,984,35725.49%1,033,480 2019110,092,07228,390,63325.79%27,305,91324.80%1,084,720 2020114,495,75528,753,60225.11%27,615,15624.12%1,138,446 2021119,075,58629,332,77024.63%28,139,16523.63%1,193,605 2022123,838,60929,943,48424.18%28,691,57223.17%1,251,911 2023128,792,15330,591,45623.75%29,279,12322.73%1,312,333 2024133,943,83931,281,51823.35%29,907,45422.33%1,374,064 2025139,301,59331,704,93922.76%30,267,50321.73%1,437,437 2026144,873,65732,486,06822.42%30,984,85221.39%1,501,216 2027150,668,60332,065,46021.28%30,500,22520.24%1,565,234 2028156,695,34729,940,22619.11%28,307,97718.07%1,632,249 2029162,963,16130,982,71919.01%29,282,92917.97%1,699,791 2030169,481,68832,078,59218.93%30,311,30017.88%1,767,291 2031176,260,95528,805,76416.34%26,971,43615.30%1,834,329 2032183,311,39330,012,99316.37%28,110,80915.34%1,902,185 2033190,643,84933,867,10217.76%31,897,36616.73%1,969,736 2034198,269,60335,202,40917.75%33,166,22616.73%2,036,183 2035206,200,38736,602,20517.75%34,499,51716.73%2,102,687 2036214,448,40338,065,24817.75%35,895,10116.74%2,170,147 2037223,026,33939,593,67017.75%37,354,97616.75%2,238,694 2038231,947,39242,422,09318.29%40,113,54417.29%2,308,550 2039241,225,28844,086,28518.28%41,706,19017.29%2,380,095 2040250,874,29945,823,67918.27%43,370,73517.29%2,452,943 Total 948,614,066902,586,298 46,027,767 Total Present Value 339,201,257324,248,372 14,952,885 Plan Modifications Under the Current Plan, non-hazardous duty members are eligible for normal retirement at age 55 with 20 years of service. Under Modified Plan #9A, this provision for non-hazardous duty members is replaced with normal retirement eligibility at age 60 with 20 years of service. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #9A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 9 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%18,410,81522.89%951,177 201283,660,92722,106,07626.42%21,134,15625.26%971,921 201387,007,36425,845,81929.71%24,852,08728.56%993,732 201490,487,65929,251,46332.33%28,235,07031.20%1,016,394 201594,107,16527,097,15328.79%26,057,19127.69%1,039,963 201697,871,45227,229,11127.82%26,164,67426.73%1,064,437 2017101,786,31027,671,69827.19%26,581,82326.12%1,089,875 2018105,857,76228,017,83826.47%26,901,44325.41%1,116,395 2019110,092,07228,390,63325.79%27,246,75224.75%1,143,882 2020114,495,75528,753,60225.11%27,581,10924.09%1,172,493 2021119,075,58629,332,77024.63%28,130,56223.62%1,202,208 2022123,838,60929,943,48424.18%28,710,31823.18%1,233,165 2023128,792,15330,591,45623.75%29,326,10822.77%1,265,349 2024133,943,83931,281,51823.35%29,982,76222.38%1,298,756 2025139,301,59331,704,93922.76%30,371,48721.80%1,333,452 2026144,873,65732,486,06822.42%31,116,65421.48%1,369,415 2027150,668,60332,065,46021.28%30,658,77620.35%1,406,683 2028156,695,34729,940,22619.11%28,494,75818.18%1,445,468 2029162,963,16130,982,71919.01%29,497,03818.10%1,485,681 2030169,481,68832,078,59218.93%30,551,24618.03%1,527,345 2031176,260,95528,805,76416.34%27,235,26815.45%1,570,496 2032183,311,39330,012,99316.37%28,397,72715.49%1,615,266 2033190,643,84933,867,10217.76%32,205,44816.89%1,661,654 2034198,269,60335,202,40917.75%33,492,72816.89%1,709,681 2035206,200,38736,602,20517.75%34,842,72516.90%1,759,479 2036214,448,40338,065,24817.75%36,254,07516.91%1,811,173 2037223,026,33939,593,67017.75%37,728,82916.92%1,864,842 2038231,947,39242,422,09318.29%40,501,51817.46%1,920,576 2039241,225,28844,086,28518.28%42,107,80917.46%1,978,476 2040250,874,29945,823,67918.27%43,785,07617.45%2,038,603 Total 948,614,066906,556,031 42,058,034 Total Present Value 339,201,257324,756,208 14,445,049 Plan Modifications Under the Current Plan, a 1.5% annual COLA is provided. Under Modified Plan #10A, the COLA is reduced to 1.25% per year. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #10A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 10 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%17,664,48921.96%1,697,503 201283,660,92722,106,07626.42%20,372,41424.35%1,733,662 201387,007,36425,845,81929.71%24,073,81927.67%1,772,000 201490,487,65929,251,46332.33%27,439,63230.32%1,811,831 201594,107,16527,097,15328.79%25,243,89526.82%1,853,258 201697,871,45227,229,11127.82%25,332,83425.88%1,896,277 2017101,786,31027,671,69827.19%25,730,70925.28%1,940,988 2018105,857,76228,017,83826.47%26,030,23624.59%1,987,602 2019110,092,07228,390,63325.79%26,354,71723.94%2,035,916 2020114,495,75528,753,60225.11%26,667,39623.29%2,086,206 2021119,075,58629,332,77024.63%27,194,33422.84%2,138,436 2022123,838,60929,943,48424.18%27,750,63422.41%2,192,850 2023128,792,15330,591,45623.75%28,342,03822.01%2,249,418 2024133,943,83931,281,51823.35%28,973,38021.63%2,308,138 2025139,301,59331,704,93922.76%29,335,81521.06%2,369,125 2026144,873,65732,486,06822.42%30,053,73120.74%2,432,338 2027150,668,60332,065,46021.28%29,567,61219.62%2,497,848 2028156,695,34729,940,22619.11%27,374,20417.47%2,566,022 2029162,963,16130,982,71919.01%28,346,01117.39%2,636,708 2030169,481,68832,078,59218.93%29,368,64517.33%2,709,947 2031176,260,95528,805,76416.34%26,019,96514.76%2,785,799 2032183,311,39330,012,99316.37%27,148,49414.81%2,864,499 2033190,643,84933,867,10217.76%30,921,05616.22%2,946,045 2034198,269,60335,202,40917.75%32,171,93616.23%3,030,473 2035206,200,38736,602,20517.75%33,484,18716.24%3,118,017 2036214,448,40338,065,24817.75%34,856,35516.25%3,208,893 2037223,026,33939,593,67017.75%36,290,42816.27%3,303,243 2038231,947,39242,422,09318.29%39,020,87016.82%3,401,223 2039241,225,28844,086,28518.28%40,583,27316.82%3,503,012 2040250,874,29945,823,67918.27%42,214,96216.83%3,608,717 Total 948,614,066873,928,072 74,685,993 Total Present Value 339,201,257313,511,802 25,689,455 Plan Modifications Under the Current Plan, a 1.5% annual COLA is provided each April 1 for retirees who who have received at least six monthly benefit payments. Under Modified Plan #11A, the 1.5% annual COLA is payable starting five years after the benefit commencement date. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #11A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 11 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%18,637,31323.17%724,679 201283,660,92722,106,07626.42%21,348,02525.52%758,051 201387,007,36425,845,81929.71%25,051,04428.79%794,775 201490,487,65929,251,46332.33%28,418,55731.41%832,906 201594,107,16527,097,15328.79%26,224,58727.87%872,566 201697,871,45227,229,11127.82%26,315,40226.89%913,709 2017101,786,31027,671,69827.19%26,715,24426.25%956,454 2018105,857,76228,017,83826.47%27,016,75025.52%1,001,087 2019110,092,07228,390,63325.79%27,343,38524.84%1,047,248 2020114,495,75528,753,60225.11%27,658,27824.16%1,095,324 2021119,075,58629,332,77024.63%28,187,56023.67%1,145,210 2022123,838,60929,943,48424.18%28,746,24423.21%1,197,240 2023128,792,15330,591,45623.75%29,340,14022.78%1,251,316 2024133,943,83931,281,51823.35%29,974,13622.38%1,307,382 2025139,301,59331,704,93922.76%30,339,37921.78%1,365,560 2026144,873,65732,486,06822.42%31,060,33721.44%1,425,732 2027150,668,60332,065,46021.28%30,577,51420.29%1,487,946 2028156,695,34729,940,22619.11%28,387,50818.12%1,552,718 2029162,963,16130,982,71919.01%29,362,97818.02%1,619,742 2030169,481,68832,078,59218.93%30,389,57617.93%1,689,016 2031176,260,95528,805,76416.34%27,045,20115.34%1,760,563 2032183,311,39330,012,99316.37%28,178,31315.37%1,834,681 2033190,643,84933,867,10217.76%31,955,81416.76%1,911,288 2034198,269,60335,202,40917.75%33,212,04816.75%1,990,361 2035206,200,38736,602,20517.75%34,530,01616.75%2,072,189 2036214,448,40338,065,24817.75%35,908,22616.74%2,157,022 2037223,026,33939,593,67017.75%37,348,67516.75%2,244,995 2038231,947,39242,422,09318.29%40,085,83217.28%2,336,262 2039241,225,28844,086,28518.28%41,655,27917.27%2,431,006 2040250,874,29945,823,67918.27%43,294,38417.26%2,529,294 Total 948,614,066904,307,744 44,306,321 Total Present Value 339,201,257325,278,816 13,922,441 Plan Modifications Under the Current Plan, the minimum duty disability benefit payable is 66 2/3% of final average pay. Under Modified Plan #12A, the minimum duty disability benefit payable is 42% of final average pay. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #12A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 12 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%10,716,04113.32%3,928,3754.88%14,644,41618.20%4,717,576 201283,660,92722,106,07626.42%13,197,89215.78%4,039,9574.83%17,237,84920.60%4,868,227 201387,007,36425,845,81929.71%16,686,36719.18%4,136,4584.75%20,822,82523.93%5,022,993 201490,487,65929,251,46332.33%19,851,08321.94%4,235,3854.68%24,086,46826.62%5,164,995 201594,107,16527,097,15328.79%17,465,03818.56%4,338,1924.61%21,803,23023.17%5,293,924 201697,871,45227,229,11127.82%17,376,54817.75%4,442,2884.54%21,818,83622.29%5,410,275 2017101,786,31027,671,69827.19%17,611,45717.30%4,546,3104.47%22,157,76721.77%5,513,931 2018105,857,76228,017,83826.47%17,744,21916.76%4,670,1074.41%22,414,32521.17%5,603,512 2019110,092,07228,390,63325.79%17,893,23716.25%4,813,3694.37%22,706,60620.63%5,684,028 2020114,495,75528,753,60225.11%18,078,01815.79%4,925,3434.30%23,003,36120.09%5,750,241 2021119,075,58629,332,77024.63%18,479,82415.52%5,048,8674.24%23,528,69119.76%5,804,079 2022123,838,60929,943,48424.18%18,901,70015.26%5,191,4884.19%24,093,18819.46%5,850,296 2023128,792,15330,591,45623.75%19,294,40614.98%5,386,4904.18%24,680,89619.16%5,910,560 2024133,943,83931,281,51823.35%19,744,71414.74%5,574,3854.16%25,319,09818.90%5,962,420 2025139,301,59331,704,93922.76%19,971,23114.34%5,741,4344.12%25,712,66518.46%5,992,274 2026144,873,65732,486,06822.42%20,614,28914.23%5,881,8034.06%26,496,09218.29%5,989,976 2027150,668,60332,065,46021.28%19,955,99413.24%6,084,7974.04%26,040,79217.28%6,024,668 2028156,695,34729,940,22619.11%17,446,96911.13%6,369,9314.07%23,816,90015.20%6,123,325 2029162,963,16130,982,71919.01%17,991,69711.04%6,712,5964.12%24,704,29315.16%6,278,426 2030169,481,68832,078,59218.93%18,540,30310.94%7,077,4464.18%25,617,74915.12%6,460,843 2031176,260,95528,805,76416.34%14,639,7578.31%7,479,5144.24%22,119,27112.55%6,686,494 2032183,311,39330,012,99316.37%15,119,0418.25%7,927,9084.32%23,046,94912.57%6,966,044 2033190,643,84933,867,10217.76%18,057,2219.47%8,462,7084.44%26,519,92813.91%7,347,173 2034198,269,60335,202,40917.75%18,302,0559.23%9,076,5594.58%27,378,61513.81%7,823,794 2035206,200,38736,602,20517.75%18,452,9998.95%9,761,9294.73%28,214,92913.68%8,387,276 2036214,448,40338,065,24817.75%18,611,9618.68%10,472,2334.88%29,084,19413.56%8,981,054 2037223,026,33939,593,67017.75%18,504,3678.30%11,332,7565.08%29,837,12313.38%9,756,547 2038231,947,39242,422,09318.29%19,647,4128.47%12,216,5825.27%31,863,99513.74%10,558,099 2039241,225,28844,086,28518.28%19,571,7888.11%13,127,0465.44%32,698,83413.56%11,387,450 2040250,874,29945,823,67918.27%19,552,0037.79%14,049,8005.60%33,601,80313.39%12,221,876 Total948,614,066538,019,630207,052,058745,071,688203,542,377 Total Present Value 339,201,257204,150,00065,157,118269,307,11869,894,138 Plan Modifications Under Modified Plan #13A, the plan is closed to new non-hazardous duty members and frozen for existing non-hazardous duty members. Existing and future non-hazardous duty members enter a DC plan with an 8% of pay contribution by the City. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #13A Total ARC ARC for DB Plan ARC for DC Plan ARC 13 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%5,076,3186.31%8,629,15210.73%13,705,47017.04%5,656,522 201283,660,92722,106,07626.42%4,902,2995.86%9,014,17710.77%13,916,47616.63%8,189,601 201387,007,36425,845,81929.71%4,964,0885.71%9,431,70410.84%14,395,79216.55%11,450,027 201490,487,65929,251,46332.33%5,029,6565.56%9,867,18710.90%14,896,84316.46%14,354,620 201594,107,16527,097,15328.79%5,097,7825.42%10,320,15710.97%15,417,93916.38%11,679,215 201697,871,45227,229,11127.82%5,170,8225.28%10,793,71511.03%15,964,53716.31%11,264,574 2017101,786,31027,671,69827.19%5,247,7105.16%11,289,92511.09%16,537,63516.25%11,134,062 2018105,857,76228,017,83826.47%5,323,8785.03%11,792,32111.14%17,116,19916.17%10,901,638 2019110,092,07228,390,63325.79%5,408,5684.91%12,302,11311.17%17,710,68216.09%10,679,951 2020114,495,75528,753,60225.11%5,495,1894.80%12,864,68811.24%18,359,87716.04%10,393,725 2021119,075,58629,332,77024.63%5,587,6624.69%13,443,57911.29%19,031,24115.98%10,301,529 2022123,838,60929,943,48424.18%5,680,6974.59%14,033,23911.33%19,713,93615.92%10,229,548 2023128,792,15330,591,45623.75%5,778,1754.49%14,605,64411.34%20,383,81915.83%10,207,637 2024133,943,83931,281,51823.35%5,883,2464.39%15,213,98911.36%21,097,23615.75%10,184,283 2025139,301,59331,704,93922.76%5,995,2774.30%15,871,48411.39%21,866,76115.70%9,838,178 2026144,873,65732,486,06822.42%6,118,8794.22%16,584,47011.45%22,703,34915.67%9,782,719 2027150,668,60332,065,46021.28%6,255,1344.15%17,276,09311.47%23,531,22715.62%8,534,232 2028156,695,34729,940,22619.11%6,395,3884.08%17,930,61111.44%24,325,99915.52%5,614,227 2029162,963,16130,982,71919.01%6,548,4254.02%18,570,95111.40%25,119,37715.41%5,863,343 2030169,481,68832,078,59218.93%6,716,7273.96%19,229,48811.35%25,946,21515.31%6,132,377 2031176,260,95528,805,76416.34%6,902,3013.92%19,894,56911.29%26,796,86915.20%2,008,895 2032183,311,39330,012,99316.37%7,101,5053.87%20,559,78711.22%27,661,29215.09%2,351,701 2033190,643,84933,867,10217.76%7,318,7403.84%21,191,70811.12%28,510,44914.95%5,356,653 2034198,269,60335,202,40917.75%7,557,3463.81%21,798,45110.99%29,355,79714.81%5,846,612 2035206,200,38736,602,20517.75%7,814,1663.79%22,388,37010.86%30,202,53614.65%6,399,669 2036214,448,40338,065,24817.75%8,086,9393.77%23,004,05610.73%31,090,99514.50%6,974,253 2037223,026,33939,593,67017.75%8,375,9903.76%23,537,78910.55%31,913,77914.31%7,679,891 2038231,947,39242,422,09318.29%8,681,3833.74%24,102,59110.39%32,783,97314.13%9,638,120 2039241,225,28844,086,28518.28%9,002,6703.73%24,697,61710.24%33,700,28713.97%10,385,998 2040250,874,29945,823,67918.27%9,342,0043.72%25,337,57010.10%34,679,57413.82%11,144,105 Total948,614,066192,858,963495,577,197688,436,160260,177,906 Total Present Value 339,201,25768,021,033160,024,118228,045,151111,156,106 Plan Modifications Under Modified Plan #14A, the plan is closed to new members and frozen for existing members. Existing and future non-hazardous duty members enter a DC plan with an 8% of pay contribution by the City, and existing and future hazardous duty members enter a DC plan with a 15% of pay contribution by the City. Assumptions Funding Method for Modified DBAggregate MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used; the plan no longer receives $12,000 credit from State City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #14A Total ARC ARC for Closed DB Plan ARC for DC Plan ARC 14 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%18,360,06822.82%1,001,924 201283,660,92722,106,07626.42%21,095,75225.22%1,010,324 201387,007,36425,845,81929.71%24,822,24628.53%1,023,573 201490,487,65929,251,46332.33%28,214,12431.18%1,037,340 201594,107,16527,097,15328.79%26,045,49527.68%1,051,658 201697,871,45227,229,11127.82%26,162,58126.73%1,066,530 2017101,786,31027,671,69827.19%26,589,70826.12%1,081,989 2018105,857,76228,017,83826.47%26,919,73825.43%1,098,099 2019110,092,07228,390,63325.79%27,275,82624.78%1,114,807 2020114,495,75528,753,60225.11%27,621,40724.12%1,132,195 2021119,075,58629,332,77024.63%28,182,51223.67%1,150,258 2022123,838,60929,943,48424.18%28,774,41223.24%1,169,071 2023128,792,15330,591,45623.75%29,402,82622.83%1,188,630 2024133,943,83931,281,51823.35%30,072,57822.45%1,208,940 2025139,301,59331,704,93922.76%30,474,90121.88%1,230,039 2026144,873,65732,486,06822.42%31,234,14821.56%1,251,920 2027150,668,60332,065,46021.28%30,790,84820.44%1,274,611 2028156,695,34729,940,22619.11%28,642,00318.28%1,298,222 2029162,963,16130,982,71919.01%29,660,00318.20%1,322,716 2030169,481,68832,078,59218.93%30,730,48018.13%1,348,111 2031176,260,95528,805,76416.34%27,431,33215.56%1,374,432 2032183,311,39330,012,99316.37%28,611,24115.61%1,401,752 2033190,643,84933,867,10217.76%32,437,02317.01%1,430,079 2034198,269,60335,202,40917.75%33,742,97817.02%1,459,431 2035206,200,38736,602,20517.75%35,112,32317.03%1,489,881 2036214,448,40338,065,24817.75%36,543,74617.04%1,521,502 2037223,026,33939,593,67017.75%38,039,33017.06%1,554,341 2038231,947,39242,422,09318.29%40,833,64117.60%1,588,452 2039241,225,28844,086,28518.28%42,462,38817.60%1,623,897 2040250,874,29945,823,67918.27%44,162,96417.60%1,660,715 Total 948,614,066910,448,623 38,165,442 Total Present Value 339,201,257325,460,670 13,740,586 Plan Modifications Under the Current Plan, the maximum benefit is 100% of final average pay. Under Modified Plan #15A, the maximum benefit is 75% of final average pay. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #15A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 15 Savings Fiscal Year Ending Total Covered Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%15,711,36019.53%3,650,632 201283,660,92722,106,07626.42%18,357,63621.94%3,748,440 201387,007,36425,845,81929.71%21,990,61025.27%3,855,209 201490,487,65929,251,46332.33%25,285,15827.94%3,966,306 201594,107,16527,097,15328.79%23,015,31024.46%4,081,843 201697,871,45227,229,11127.82%23,027,01523.53%4,202,096 2017101,786,31027,671,69827.19%23,344,49922.93%4,327,198 2018105,857,76228,017,83826.47%23,560,69622.26%4,457,142 2019110,092,07228,390,63325.79%23,798,11521.62%4,592,518 2020114,495,75528,753,60225.11%24,020,35520.98%4,733,247 2021119,075,58629,332,77024.63%24,453,06220.54%4,879,708 2022123,838,60929,943,48424.18%24,911,59120.12%5,031,892 2023128,792,15330,591,45623.75%25,401,26219.72%5,190,195 2024133,943,83931,281,51823.35%25,926,53019.36%5,354,988 2025139,301,59331,704,93922.76%26,178,44818.79%5,526,491 2026144,873,65732,486,06822.42%26,780,91018.49%5,705,158 2027150,668,60332,065,46021.28%26,174,15717.37%5,891,302 2028156,695,34729,940,22619.11%23,855,39515.22%6,084,830 2029162,963,16130,982,71919.01%24,696,31315.15%6,286,407 2030169,481,68832,078,59218.93%25,582,15315.09%6,496,438 2031176,260,95528,805,76416.34%22,090,44212.53%6,715,323 2032183,311,39330,012,99316.37%23,069,76512.59%6,943,229 2033190,643,84933,867,10217.76%26,686,42014.00%7,180,682 2034198,269,60335,202,40917.75%27,774,23114.01%7,428,178 2035206,200,38736,602,20517.75%28,916,26014.02%7,685,945 2036214,448,40338,065,24817.75%30,110,98314.04%7,954,266 2037223,026,33939,593,67017.75%31,360,12114.06%8,233,550 2038231,947,39242,422,09318.29%33,897,88414.61%8,524,210 2039241,225,28844,086,28518.28%35,259,63114.62%8,826,654 2040250,874,29945,823,67918.27%36,682,26014.62%9,141,419 Total 948,614,066771,918,572 176,695,494 Total Present Value 339,201,257280,225,191 58,976,066 Plan Modifications Under the Current Plan, the maximum benefit is 100% of final average pay. Under Modified Plan #16A, the maximum benefit is $80,000 per year. This change applies to future and current members except those who are eligible for normal retirement as of December 31, 2010. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan Modified Plan #16A ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 16 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%21,995,62126.29%110,455 201387,007,36425,845,81929.71%25,628,46629.46%217,353 201490,487,65929,251,46332.33%28,923,93431.96%327,529 201594,107,16527,097,15328.79%26,654,99228.32%442,162 201697,871,45227,229,11127.82%26,669,40227.25%559,709 2017101,786,31027,671,69827.19%26,990,44626.52%681,252 2018105,857,76228,017,83826.47%27,207,28625.70%810,552 2019110,092,07228,390,63325.79%27,449,78724.93%940,846 2020114,495,75528,753,60225.11%27,676,13824.17%1,077,465 2021119,075,58629,332,77024.63%28,115,04423.61%1,217,726 2022123,838,60929,943,48424.18%28,577,49323.08%1,365,991 2023128,792,15330,591,45623.75%29,071,82122.57%1,519,635 2024133,943,83931,281,51823.35%29,604,91122.10%1,676,607 2025139,301,59331,704,93922.76%29,867,18421.44%1,837,755 2026144,873,65732,486,06822.42%30,486,13121.04%1,999,938 2027150,668,60332,065,46021.28%29,902,73419.85%2,162,726 2028156,695,34729,940,22619.11%27,607,09217.62%2,333,134 2029162,963,16130,982,71919.01%28,477,83617.48%2,504,884 2030169,481,68832,078,59218.93%29,402,06417.35%2,676,528 2031176,260,95528,805,76416.34%25,958,77014.73%2,846,994 2032183,311,39330,012,99316.37%26,993,45014.73%3,019,543 2033190,643,84933,867,10217.76%30,675,78616.09%3,191,315 2034198,269,60335,202,40917.75%31,842,12616.06%3,360,283 2035206,200,38736,602,20517.75%33,072,81216.04%3,529,393 2036214,448,40338,065,24817.75%34,364,31516.02%3,700,933 2037223,026,33939,593,67017.75%35,718,43116.02%3,875,239 2038231,947,39242,422,09318.29%38,369,22316.54%4,052,871 2039241,225,28844,086,28518.28%39,851,48516.52%4,234,800 2040250,874,29945,823,67918.27%41,403,63516.50%4,420,043 Total 948,614,066887,920,406 60,693,660 Total Present Value 339,201,257324,340,698 14,860,559 Plan Modifications Under the Current Plan, the normal form of benefit is a life annuity with, after the participant's death, 100% payable to the spouse for five years and 50% payable thereafter. Under Modified Plan #1B, the normal form of benefit is changed to a life annuity for non-hazardous duty members and to a ten-year certain and life annuity for hazardous duty members. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used Current Plan ARC ARC Modified Plan #1B City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 17 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,054,00426.36%52,072 201387,007,36425,845,81929.71%25,743,78029.59%102,039 201490,487,65929,251,46332.33%29,097,62932.16%153,835 201594,107,16527,097,15328.79%26,888,99628.57%208,157 201697,871,45227,229,11127.82%26,965,73227.55%263,379 2017101,786,31027,671,69827.19%27,348,16426.87%323,533 2018105,857,76228,017,83826.47%27,628,54426.10%389,294 2019110,092,07228,390,63325.79%27,932,45625.37%458,177 2020114,495,75528,753,60225.11%28,222,97624.65%530,626 2021119,075,58629,332,77024.63%28,726,44724.12%606,323 2022123,838,60929,943,48424.18%29,255,21023.62%688,274 2023128,792,15330,591,45623.75%29,815,46723.15%775,990 2024133,943,83931,281,51823.35%30,416,22122.71%865,298 2025139,301,59331,704,93922.76%30,748,36122.07%956,578 2026144,873,65732,486,06822.42%31,439,32421.70%1,046,744 2027150,668,60332,065,46021.28%30,926,85220.53%1,138,608 2028156,695,34729,940,22619.11%28,703,94918.32%1,236,277 2029162,963,16130,982,71919.01%29,647,28918.19%1,335,431 2030169,481,68832,078,59218.93%30,645,36618.08%1,433,225 2031176,260,95528,805,76416.34%27,276,70815.48%1,529,056 2032183,311,39330,012,99316.37%28,387,60015.49%1,625,394 2033190,643,84933,867,10217.76%32,146,46316.86%1,720,639 2034198,269,60335,202,40917.75%33,388,92116.84%1,813,488 2035206,200,38736,602,20517.75%34,696,60216.83%1,905,603 2036214,448,40338,065,24817.75%36,066,49916.82%1,998,749 2037223,026,33939,593,67017.75%37,499,91516.81%2,093,756 2038231,947,39242,422,09318.29%40,231,40517.35%2,190,688 2039241,225,28844,086,28518.28%41,797,05317.33%2,289,231 2040250,874,29945,823,67918.27%43,434,20217.31%2,389,477 Total 948,614,066916,494,124 32,119,941 Total Present Value 339,201,257331,487,028 7,714,229 Plan Modifications Under the Current Plan, overtime pay is included in pensionable earnings. Under Modified Plan #2B, overtime pay is excluded from pensionable earnings. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #2B ARC ARC 18 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,049,60726.36%56,469 201387,007,36425,845,81929.71%25,734,70029.58%111,119 201490,487,65929,251,46332.33%29,084,01932.14%167,445 201594,107,16527,097,15328.79%26,871,10428.55%226,049 201697,871,45227,229,11127.82%26,942,96727.53%286,143 2017101,786,31027,671,69827.19%27,323,41726.84%348,280 2018105,857,76228,017,83826.47%27,603,45426.08%414,383 2019110,092,07228,390,63325.79%27,909,63925.35%480,994 2020114,495,75528,753,60225.11%28,202,76424.63%550,839 2021119,075,58629,332,77024.63%28,710,22524.11%622,545 2022123,838,60929,943,48424.18%29,245,14023.62%698,344 2023128,792,15330,591,45623.75%29,814,56423.15%776,892 2024133,943,83931,281,51823.35%30,424,37622.71%857,142 2025139,301,59331,704,93922.76%30,765,41322.09%939,526 2026144,873,65732,486,06822.42%31,463,62821.72%1,022,440 2027150,668,60332,065,46021.28%30,959,79620.55%1,105,663 2028156,695,34729,940,22619.11%28,747,44418.35%1,192,782 2029162,963,16130,982,71919.01%29,702,13318.23%1,280,587 2030169,481,68832,078,59218.93%30,710,25418.12%1,368,337 2031176,260,95528,805,76416.34%27,350,27815.52%1,455,486 2032183,311,39330,012,99316.37%28,469,29415.53%1,543,699 2033190,643,84933,867,10217.76%32,235,58716.91%1,631,515 2034198,269,60335,202,40917.75%33,484,51216.89%1,717,897 2035206,200,38736,602,20517.75%34,797,85216.88%1,804,352 2036214,448,40338,065,24817.75%36,173,19816.87%1,892,050 2037223,026,33939,593,67017.75%37,612,50916.86%1,981,162 2038231,947,39242,422,09318.29%40,350,12017.40%2,071,973 2039241,225,28844,086,28518.28%41,921,30317.38%2,164,982 2040250,874,29945,823,67918.27%43,563,99417.36%2,259,685 Total 948,614,066917,585,285 31,028,781 Total Present Value 339,201,257331,604,005 7,597,252 Plan Modifications Under the Current Plan, the benefit multiplier is 2.75% for all members. Under Modified Plan #3B, the multiplier for non-hazardous duty members is lowered to 2.50%. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #3B ARC ARC 19 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%21,997,48226.29%108,594 201387,007,36425,845,81929.71%25,632,12929.46%213,690 201490,487,65929,251,46332.33%28,929,45531.97%322,009 201594,107,16527,097,15328.79%26,662,44428.33%434,709 201697,871,45227,229,11127.82%26,678,83527.26%550,276 2017101,786,31027,671,69827.19%27,001,92826.53%669,770 2018105,857,76228,017,83826.47%27,220,94725.71%796,891 2019110,092,07228,390,63325.79%27,465,64424.95%924,989 2020114,495,75528,753,60225.11%27,694,29724.19%1,059,305 2021119,075,58629,332,77024.63%28,135,56823.63%1,197,202 2022123,838,60929,943,48424.18%28,600,51523.09%1,342,968 2023128,792,15330,591,45623.75%29,097,43322.59%1,494,023 2024133,943,83931,281,51823.35%29,633,16822.12%1,648,350 2025139,301,59331,704,93922.76%29,898,15821.46%1,806,781 2026144,873,65732,486,06822.42%30,519,83721.07%1,966,231 2027150,668,60332,065,46021.28%29,939,18419.87%2,126,276 2028156,695,34729,940,22619.11%27,646,41417.64%2,293,811 2029162,963,16130,982,71919.01%28,520,05317.50%2,462,667 2030169,481,68832,078,59218.93%29,447,17417.37%2,631,418 2031176,260,95528,805,76416.34%26,006,75314.75%2,799,011 2032183,311,39330,012,99316.37%27,044,34114.75%2,968,652 2033190,643,84933,867,10217.76%30,729,57316.12%3,137,529 2034198,269,60335,202,40917.75%31,898,76016.09%3,303,649 2035206,200,38736,602,20517.75%33,132,29616.07%3,469,908 2036214,448,40338,065,24817.75%34,426,69116.05%3,638,558 2037223,026,33939,593,67017.75%35,783,74416.04%3,809,926 2038231,947,39242,422,09318.29%38,437,52916.57%3,984,564 2039241,225,28844,086,28518.28%39,922,85816.55%4,163,427 2040250,874,29945,823,67918.27%41,478,13016.53%4,345,548 Total 948,614,066888,943,333 59,670,733 Total Present Value 339,201,257324,591,157 14,610,100 Plan Modifications Under the Current Plan, the benefit multiplier is 2.75% for all members. Under Modified Plan #4B, the multiplier for all members is lowered to 2.50%. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #4B ARC ARC 20 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,068,84426.38%37,232 201387,007,36425,845,81929.71%25,772,55429.62%73,265 201490,487,65929,251,46332.33%29,141,06032.20%110,403 201594,107,16527,097,15328.79%26,948,11028.64%149,043 201697,871,45227,229,11127.82%27,040,44527.63%188,666 2017101,786,31027,671,69827.19%27,442,06226.96%229,635 2018105,857,76228,017,83826.47%27,744,61826.21%273,220 2019110,092,07228,390,63325.79%28,073,49425.50%317,139 2020114,495,75528,753,60225.11%28,390,41224.80%363,190 2021119,075,58629,332,77024.63%28,922,30124.29%410,469 2022123,838,60929,943,48424.18%29,483,03723.81%460,446 2023128,792,15330,591,45623.75%30,079,22023.35%512,237 2024133,943,83931,281,51823.35%30,716,37022.93%565,149 2025139,301,59331,704,93922.76%31,085,47122.32%619,468 2026144,873,65732,486,06822.42%31,811,93221.96%674,136 2027150,668,60332,065,46021.28%31,336,45120.80%729,009 2028156,695,34729,940,22619.11%29,153,77618.61%786,450 2029162,963,16130,982,71919.01%30,138,37718.49%844,343 2030169,481,68832,078,59218.93%31,176,39118.40%902,200 2031176,260,95528,805,76416.34%27,846,10315.80%959,661 2032183,311,39330,012,99316.37%28,995,17015.82%1,017,824 2033190,643,84933,867,10217.76%32,791,37817.20%1,075,724 2034198,269,60335,202,40917.75%34,069,73017.18%1,132,680 2035206,200,38736,602,20517.75%35,412,52217.17%1,189,683 2036214,448,40338,065,24817.75%36,817,74317.17%1,247,505 2037223,026,33939,593,67017.75%38,287,41017.17%1,306,260 2038231,947,39242,422,09318.29%41,055,95717.70%1,366,136 2039241,225,28844,086,28518.28%42,658,82417.68%1,427,461 2040250,874,29945,823,67918.27%44,333,77617.67%1,489,902 Total 948,614,066928,155,529 20,458,537 Total Present Value 339,201,257334,192,080 5,009,177 Plan Modifications Under the Current Plan, the member contribution rate is 8% for all members. Under Modified Plan #5B, the member contribution rate for non-hazardous duty members is increased to 9%. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #5B ARC ARC 21 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,044,64326.35%61,433 201387,007,36425,845,81929.71%25,724,93229.57%120,887 201490,487,65929,251,46332.33%29,069,29832.13%182,165 201594,107,16527,097,15328.79%26,851,23228.53%245,921 201697,871,45227,229,11127.82%26,917,81227.50%311,299 2017101,786,31027,671,69827.19%27,292,79926.81%378,898 2018105,857,76228,017,83826.47%27,567,02526.04%450,813 2019110,092,07228,390,63325.79%27,867,35425.31%523,280 2020114,495,75528,753,60225.11%28,154,33824.59%599,264 2021119,075,58629,332,77024.63%28,655,49624.06%677,274 2022123,838,60929,943,48424.18%29,183,74723.57%759,736 2023128,792,15330,591,45623.75%29,746,26623.10%845,190 2024133,943,83931,281,51823.35%30,349,02322.66%932,495 2025139,301,59331,704,93922.76%30,682,81722.03%1,022,122 2026144,873,65732,486,06822.42%31,373,74321.66%1,112,325 2027150,668,60332,065,46021.28%30,862,59520.48%1,202,865 2028156,695,34729,940,22619.11%28,642,58418.28%1,297,642 2029162,963,16130,982,71919.01%29,589,55418.16%1,393,166 2030169,481,68832,078,59218.93%30,589,96118.05%1,488,631 2031176,260,95528,805,76416.34%27,222,32415.44%1,583,441 2032183,311,39330,012,99316.37%28,333,58415.46%1,679,409 2033190,643,84933,867,10217.76%32,092,15716.83%1,774,945 2034198,269,60335,202,40917.75%33,333,48816.81%1,868,921 2035206,200,38736,602,20517.75%34,639,22816.80%1,962,977 2036214,448,40338,065,24817.75%36,006,86416.79%2,058,384 2037223,026,33939,593,67017.75%37,438,34116.79%2,155,330 2038231,947,39242,422,09318.29%40,167,96917.32%2,254,125 2039241,225,28844,086,28518.28%41,730,97517.30%2,355,310 2040250,874,29945,823,67918.27%43,365,34017.29%2,458,339 Total 948,614,066914,857,480 33,756,586 Total Present Value 339,201,257330,936,114 8,265,142 Plan Modifications Under the Current Plan, the member contribution rate is 8% for all members. Under Modified Plan #6B, the member contribution rate for all members is increased to 9%. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #6B ARC ARC 22 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,031,61226.33%74,464 201387,007,36425,845,81929.71%25,699,28929.54%146,530 201490,487,65929,251,46332.33%29,030,65732.08%220,806 201594,107,16527,097,15328.79%26,799,06728.48%298,086 201697,871,45227,229,11127.82%26,851,77927.44%377,332 2017101,786,31027,671,69827.19%27,212,42726.73%459,271 2018105,857,76228,017,83826.47%27,471,39825.95%546,440 2019110,092,07228,390,63325.79%27,756,35525.21%634,278 2020114,495,75528,753,60225.11%28,027,22224.48%726,381 2021119,075,58629,332,77024.63%28,511,83123.94%820,939 2022123,838,60929,943,48424.18%29,022,59123.44%920,893 2023128,792,15330,591,45623.75%29,566,98322.96%1,024,473 2024133,943,83931,281,51823.35%30,151,22122.51%1,130,297 2025139,301,59331,704,93922.76%30,466,00321.87%1,238,936 2026144,873,65732,486,06822.42%31,137,79621.49%1,348,273 2027150,668,60332,065,46021.28%30,607,44220.31%1,458,018 2028156,695,34729,940,22619.11%28,367,32618.10%1,572,899 2029162,963,16130,982,71919.01%29,294,03417.98%1,688,686 2030169,481,68832,078,59218.93%30,274,19117.86%1,804,401 2031176,260,95528,805,76416.34%26,886,44215.25%1,919,322 2032183,311,39330,012,99316.37%27,977,34615.26%2,035,647 2033190,643,84933,867,10217.76%31,715,65316.64%2,151,449 2034198,269,60335,202,40917.75%32,937,05016.61%2,265,359 2035206,200,38736,602,20517.75%34,222,83916.60%2,379,366 2036214,448,40338,065,24817.75%35,570,23716.59%2,495,011 2037223,026,33939,593,67017.75%36,981,15016.58%2,612,521 2038231,947,39242,422,09318.29%39,689,82117.11%2,732,272 2039241,225,28844,086,28518.28%41,231,36417.09%2,854,921 2040250,874,29945,823,67918.27%42,843,87417.08%2,979,804 Total 948,614,066907,696,992 40,917,074 Total Present Value 339,201,257329,182,902 10,018,354 Plan Modifications Under the Current Plan, hazardous duty members are eligible for normal retirement upon completion of 20 years of service regardless of age. Under Modified Plan #7B, the 20 and out provision for hazardous duty members is replaced with normal retirement eligibility at age 52 with 25 years of service. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #7B ARC ARC 23 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,099,87126.42%6,205 201387,007,36425,845,81929.71%25,833,60829.69%12,211 201490,487,65929,251,46332.33%29,233,06332.31%18,401 201594,107,16527,097,15328.79%27,072,31328.77%24,841 201697,871,45227,229,11127.82%27,197,66727.79%31,444 2017101,786,31027,671,69827.19%27,633,42527.15%38,273 2018105,857,76228,017,83826.47%27,972,30126.42%45,537 2019110,092,07228,390,63325.79%28,337,77725.74%52,857 2020114,495,75528,753,60225.11%28,693,07025.06%60,532 2021119,075,58629,332,77024.63%29,264,35824.58%68,412 2022123,838,60929,943,48424.18%29,866,74324.12%76,741 2023128,792,15330,591,45623.75%30,506,08423.69%85,373 2024133,943,83931,281,51823.35%31,187,32723.28%94,191 2025139,301,59331,704,93922.76%31,601,69522.69%103,245 2026144,873,65732,486,06822.42%32,373,71222.35%112,356 2027150,668,60332,065,46021.28%31,943,95821.20%121,501 2028156,695,34729,940,22619.11%29,809,15119.02%131,075 2029162,963,16130,982,71919.01%30,841,99618.93%140,724 2030169,481,68832,078,59218.93%31,928,22518.84%150,367 2031176,260,95528,805,76416.34%28,645,82116.25%159,944 2032183,311,39330,012,99316.37%29,843,35616.28%169,637 2033190,643,84933,867,10217.76%33,687,81417.67%179,287 2034198,269,60335,202,40917.75%35,013,62917.66%188,780 2035206,200,38736,602,20517.75%36,403,92417.65%198,280 2036214,448,40338,065,24817.75%37,857,33117.65%207,918 2037223,026,33939,593,67017.75%39,375,96017.66%217,710 2038231,947,39242,422,09318.29%42,194,40418.19%227,689 2039241,225,28844,086,28518.28%43,848,37518.18%237,910 2040250,874,29945,823,67918.27%45,575,36218.17%248,317 Total 948,614,066945,204,309 3,409,756 Total Present Value 339,201,257338,366,394 834,863 Plan Modifications Under the Current Plan, non-hazardous duty members are eligible for normal retirement upon completion of 30 years of service regardless of age. Under Modified Plan #8B, the 30 and out provision for non-hazardous duty members is eliminated. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #8B ARC ARC 24 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,062,63926.37%43,438 201387,007,36425,845,81929.71%25,760,34329.61%85,476 201490,487,65929,251,46332.33%29,122,66032.18%128,804 201594,107,16527,097,15328.79%26,923,27028.61%173,884 201697,871,45227,229,11127.82%27,009,00027.60%220,110 2017101,786,31027,671,69827.19%27,403,79026.92%267,908 2018105,857,76228,017,83826.47%27,699,08126.17%318,756 2019110,092,07228,390,63325.79%28,020,63725.45%369,996 2020114,495,75528,753,60225.11%28,329,88024.74%423,722 2021119,075,58629,332,77024.63%28,853,88924.23%478,881 2022123,838,60929,943,48424.18%29,406,29623.75%537,187 2023128,792,15330,591,45623.75%29,993,84723.29%597,609 2024133,943,83931,281,51823.35%30,622,17822.86%659,340 2025139,301,59331,704,93922.76%30,982,22722.24%722,713 2026144,873,65732,486,06822.42%31,699,57621.88%786,492 2027150,668,60332,065,46021.28%31,214,94920.72%850,510 2028156,695,34729,940,22619.11%29,022,70118.52%917,525 2029162,963,16130,982,71919.01%29,997,65318.41%985,067 2030169,481,68832,078,59218.93%31,026,02418.31%1,052,567 2031176,260,95528,805,76416.34%27,686,16015.71%1,119,605 2032183,311,39330,012,99316.37%28,825,53315.72%1,187,461 2033190,643,84933,867,10217.76%32,612,09017.11%1,255,012 2034198,269,60335,202,40917.75%33,880,95017.09%1,321,459 2035206,200,38736,602,20517.75%35,214,24117.08%1,387,963 2036214,448,40338,065,24817.75%36,609,82517.07%1,455,423 2037223,026,33939,593,67017.75%38,069,70017.07%1,523,970 2038231,947,39242,422,09318.29%40,828,26817.60%1,593,826 2039241,225,28844,086,28518.28%42,420,91417.59%1,665,371 2040250,874,29945,823,67918.27%44,085,45917.57%1,738,219 Total 948,614,066924,745,772 23,868,293 Total Present Value 339,201,257333,357,217 5,844,040 Plan Modifications Under the Current Plan, non-hazardous duty members are eligible for normal retirement at age 55 with 20 years of service. Under Modified Plan #9B, this provision for non-hazardous duty members is replaced with normal retirement eligibility at age 60 with 20 years of service. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #9B ARC ARC 25 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,067,60326.38%38,473 201387,007,36425,845,81929.71%25,770,11229.62%75,707 201490,487,65929,251,46332.33%29,137,38032.20%114,083 201594,107,16527,097,15328.79%26,943,14228.63%154,011 201697,871,45227,229,11127.82%27,034,15627.62%194,955 2017101,786,31027,671,69827.19%27,434,40826.95%237,290 2018105,857,76228,017,83826.47%27,735,51026.20%282,327 2019110,092,07228,390,63325.79%28,062,92325.49%327,710 2020114,495,75528,753,60225.11%28,378,30624.79%375,297 2021119,075,58629,332,77024.63%28,908,61824.28%424,152 2022123,838,60929,943,48424.18%29,467,68923.80%475,795 2023128,792,15330,591,45623.75%30,062,14523.34%529,311 2024133,943,83931,281,51823.35%30,697,53122.92%583,987 2025139,301,59331,704,93922.76%31,064,82222.30%640,117 2026144,873,65732,486,06822.42%31,789,46121.94%696,608 2027150,668,60332,065,46021.28%31,312,15120.78%753,309 2028156,695,34729,940,22619.11%29,127,56118.59%812,665 2029162,963,16130,982,71919.01%30,110,23218.48%872,488 2030169,481,68832,078,59218.93%31,146,31818.38%932,274 2031176,260,95528,805,76416.34%27,814,11515.78%991,650 2032183,311,39330,012,99316.37%28,961,24215.80%1,051,751 2033190,643,84933,867,10217.76%32,755,52017.18%1,111,582 2034198,269,60335,202,40917.75%34,031,97417.16%1,170,436 2035206,200,38736,602,20517.75%35,372,86617.15%1,229,339 2036214,448,40338,065,24817.75%36,776,15917.15%1,289,089 2037223,026,33939,593,67017.75%38,243,86817.15%1,349,802 2038231,947,39242,422,09318.29%41,010,41917.68%1,411,674 2039241,225,28844,086,28518.28%42,611,24217.66%1,475,043 2040250,874,29945,823,67918.27%44,284,11317.65%1,539,566 Total 948,614,066927,473,577 21,140,488 Total Present Value 339,201,257334,025,107 5,176,150 Plan Modifications Under the Current Plan, a 1.5% annual COLA is provided. Under Modified Plan #10B, the COLA is reduced to 1.25% per year. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #10B ARC ARC 26 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,038,43826.34%67,638 201387,007,36425,845,81929.71%25,712,72129.55%133,098 201490,487,65929,251,46332.33%29,050,89832.10%200,565 201594,107,16527,097,15328.79%26,826,39128.51%270,762 201697,871,45227,229,11127.82%26,886,36827.47%342,743 2017101,786,31027,671,69827.19%27,254,52726.78%417,171 2018105,857,76228,017,83826.47%27,521,48826.00%496,349 2019110,092,07228,390,63325.79%27,814,49725.26%576,136 2020114,495,75528,753,60225.11%28,093,80624.54%659,796 2021119,075,58629,332,77024.63%28,587,08424.01%745,686 2022123,838,60929,943,48424.18%29,107,00623.50%836,477 2023128,792,15330,591,45623.75%29,660,89323.03%930,563 2024133,943,83931,281,51823.35%30,254,83222.59%1,026,687 2025139,301,59331,704,93922.76%30,579,57321.95%1,125,367 2026144,873,65732,486,06822.42%31,261,38721.58%1,224,681 2027150,668,60332,065,46021.28%30,741,09420.40%1,324,366 2028156,695,34729,940,22619.11%28,511,50918.20%1,428,717 2029162,963,16130,982,71919.01%29,448,83018.07%1,533,889 2030169,481,68832,078,59218.93%30,439,59417.96%1,638,997 2031176,260,95528,805,76416.34%27,062,38015.35%1,743,384 2032183,311,39330,012,99316.37%28,163,94715.36%1,849,046 2033190,643,84933,867,10217.76%31,912,86916.74%1,954,232 2034198,269,60335,202,40917.75%33,144,70816.72%2,057,701 2035206,200,38736,602,20517.75%34,440,94716.70%2,161,257 2036214,448,40338,065,24817.75%35,798,94716.69%2,266,302 2037223,026,33939,593,67017.75%37,220,63116.69%2,373,040 2038231,947,39242,422,09318.29%39,940,27917.22%2,481,814 2039241,225,28844,086,28518.28%41,493,06517.20%2,593,220 2040250,874,29945,823,67918.27%43,117,02317.19%2,706,656 Total 948,614,066911,447,723 37,166,342 Total Present Value 339,201,257330,101,252 9,100,005 Plan Modifications Under the Current Plan, a 1.5% annual COLA is provided each April 1 for retirees who who have received at least six monthly benefit payments. Under Modified Plan #11B, the 1.5% annual COLA is payable starting five years after the benefit commencement date. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #11B ARC ARC 27 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,043,40226.35%62,674 201387,007,36425,845,81929.71%25,722,48929.56%123,329 201490,487,65929,251,46332.33%29,065,61832.12%185,845 201594,107,16527,097,15328.79%26,846,26428.53%250,889 201697,871,45227,229,11127.82%26,911,52327.50%317,588 2017101,786,31027,671,69827.19%27,285,14526.81%386,553 2018105,857,76228,017,83826.47%27,557,91826.03%459,920 2019110,092,07228,390,63325.79%27,856,78225.30%533,851 2020114,495,75528,753,60225.11%28,142,23224.58%611,370 2021119,075,58629,332,77024.63%28,641,81324.05%690,957 2022123,838,60929,943,48424.18%29,168,39923.55%775,085 2023128,792,15330,591,45623.75%29,729,19123.08%862,265 2024133,943,83931,281,51823.35%30,330,18522.64%951,333 2025139,301,59331,704,93922.76%30,662,16822.01%1,042,771 2026144,873,65732,486,06822.42%31,351,27221.64%1,134,796 2027150,668,60332,065,46021.28%30,838,29520.47%1,227,165 2028156,695,34729,940,22619.11%28,616,36918.26%1,323,857 2029162,963,16130,982,71919.01%29,561,40918.14%1,421,310 2030169,481,68832,078,59218.93%30,559,88818.03%1,518,704 2031176,260,95528,805,76416.34%27,190,33515.43%1,615,429 2032183,311,39330,012,99316.37%28,299,65715.44%1,713,336 2033190,643,84933,867,10217.76%32,056,29916.81%1,810,803 2034198,269,60335,202,40917.75%33,295,73216.79%1,906,677 2035206,200,38736,602,20517.75%34,599,57216.78%2,002,633 2036214,448,40338,065,24817.75%35,965,28116.77%2,099,968 2037223,026,33939,593,67017.75%37,394,79916.77%2,198,872 2038231,947,39242,422,09318.29%40,122,43117.30%2,299,663 2039241,225,28844,086,28518.28%41,683,39317.28%2,402,892 2040250,874,29945,823,67918.27%43,315,67717.27%2,508,002 Total 948,614,066914,175,528 34,438,537 Total Present Value 339,201,257330,769,142 8,432,115 Plan Modifications Under the Current Plan, the minimum duty disability benefit payable is 66 2/3% of final average pay. Under Modified Plan #12B, the minimum duty disability benefit payable is 42% of final average pay. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #12B ARC ARC 28 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%00.00%19,361,99224.07%0 201283,660,92722,106,07626.42%21,663,14925.89%299,6550.36%21,962,80426.25%143,272 201387,007,36425,845,81929.71%24,987,73628.72%580,5210.67%25,568,25729.39%277,562 201490,487,65929,251,46332.33%27,978,41730.92%861,2580.95%28,839,67431.87%411,789 201594,107,16527,097,15328.79%25,404,53827.00%1,145,1101.22%26,549,64828.21%547,506 201697,871,45227,229,11127.82%25,119,49025.67%1,427,2271.46%26,546,71827.12%682,393 2017101,786,31027,671,69827.19%25,144,91224.70%1,709,4531.68%26,854,36526.38%817,332 2018105,857,76228,017,83826.47%25,048,38723.66%2,008,9311.90%27,057,31825.56%960,520 2019110,092,07228,390,63325.79%24,974,75122.69%2,310,9562.10%27,285,70724.78%1,104,926 2020114,495,75528,753,60225.11%24,904,66121.75%2,603,9352.27%27,508,59624.03%1,245,006 2021119,075,58629,332,77024.63%25,045,19421.03%2,900,6862.44%27,945,88023.47%1,386,890 2022123,838,60929,943,48424.18%25,188,21920.34%3,217,0922.60%28,405,31122.94%1,538,172 2023128,792,15330,591,45623.75%25,313,72919.65%3,570,5562.77%28,884,28422.43%1,707,172 2024133,943,83931,281,51823.35%25,487,27519.03%3,919,9952.93%29,407,27021.95%1,874,248 2025139,301,59331,704,93922.76%25,415,04918.24%4,255,3173.05%29,670,36621.30%2,034,573 2026144,873,65732,486,06822.42%25,743,44817.77%4,561,6043.15%30,305,05220.92%2,181,017 2027150,668,60332,065,46021.28%24,812,48716.47%4,906,8743.26%29,719,36119.72%2,346,099 2028156,695,34729,940,22619.11%22,064,15714.08%5,328,4183.40%27,392,57617.48%2,547,650 2029162,963,16130,982,71919.01%22,414,71213.75%5,796,5383.56%28,211,25017.31%2,771,470 2030169,481,68832,078,59218.93%22,797,12313.45%6,279,2173.70%29,076,34117.16%3,002,251 2031176,260,95528,805,76416.34%18,773,59110.65%6,787,0943.85%25,560,68514.50%3,245,079 2032183,311,39330,012,99316.37%19,168,69310.46%7,336,5254.00%26,505,21714.46%3,507,776 2033190,643,84933,867,10217.76%22,103,30711.59%7,958,5924.17%30,061,90015.77%3,805,202 2034198,269,60335,202,40917.75%22,428,25711.31%8,642,1334.36%31,070,38915.67%4,132,020 2035206,200,38736,602,20517.75%22,727,06711.02%9,386,9854.55%32,114,05215.57%4,488,152 2036214,448,40338,065,24817.75%23,057,38510.75%10,153,3114.73%33,210,69615.49%4,854,552 2037223,026,33939,593,67017.75%23,241,74010.42%11,062,6174.96%34,304,35715.38%5,289,314 2038231,947,39242,422,09318.29%24,695,95410.65%11,992,3145.17%36,688,26815.82%5,733,825 2039241,225,28844,086,28518.28%24,949,53210.34%12,946,6405.37%37,896,17215.71%6,190,112 2040250,874,29945,823,67918.27%25,268,00810.07%13,906,5845.54%39,174,59315.62%6,649,086 Total948,614,066715,282,961157,856,139873,139,09975,474,966 Total Present Value 339,201,257284,020,83437,331,364321,352,19817,849,058 Plan Modifications Under Modified Plan #13B, the plan is closed to new non-hazardous duty members. New non-hazardous duty members enter a DC plan with an 8% of pay contribution by the City. Assumptions MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used 30 Year Projection of Required City Contributions City of Clearwater Employees' Pension Plan Current Plan Modified Plan #13B Total ARC ARC for DB Plan ARC for DC Plan ARC 29 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,638,95024.41%00.00%19,638,95024.41%(276,958) 201283,660,92722,106,07626.42%21,197,28725.34%668,6060.80%21,865,89326.14%240,183 201387,007,36425,845,81929.71%23,654,71027.19%1,323,6691.52%24,978,37928.71%867,440 201490,487,65929,251,46332.33%26,081,37828.82%2,006,4742.22%28,087,85231.04%1,163,611 201594,107,16527,097,15328.79%22,908,44624.34%2,724,1102.89%25,632,55627.24%1,464,597 201697,871,45227,229,11127.82%21,997,41922.48%3,467,8273.54%25,465,24526.02%1,763,866 2017101,786,31027,671,69827.19%21,362,23420.99%4,245,1134.17%25,607,34825.16%2,064,350 2018105,857,76228,017,83826.47%20,682,88119.54%5,072,6804.79%25,755,56124.33%2,262,277 2019110,092,07228,390,63325.79%20,038,25418.20%5,906,3935.36%25,944,64723.57%2,445,986 2020114,495,75528,753,60225.11%19,368,46716.92%6,801,3145.94%26,169,78222.86%2,583,821 2021119,075,58629,332,77024.63%18,705,68615.71%7,723,6336.49%26,429,32022.20%2,903,450 2022123,838,60929,943,48424.18%18,001,30214.54%8,696,2027.02%26,697,50421.56%3,245,980 2023128,792,15330,591,45623.75%17,286,97713.42%9,681,6797.52%26,968,65520.94%3,622,801 2024133,943,83931,281,51823.35%16,587,88612.38%10,698,7187.99%27,286,60420.37%3,994,914 2025139,301,59331,704,93922.76%15,895,99111.41%11,763,2968.44%27,659,28819.86%4,045,652 2026144,873,65732,486,06822.42%15,249,12410.53%12,862,0058.88%28,111,12919.40%4,374,939 2027150,668,60332,065,46021.28%14,654,0819.73%13,931,7069.25%28,585,78718.97%3,479,673 2028156,695,34729,940,22619.11%11,033,4517.04%14,998,8749.57%26,032,32516.61%3,907,901 2029162,963,16130,982,71919.01%10,574,4166.49%16,036,6009.84%26,611,01516.33%4,371,704 2030169,481,68832,078,59218.93%10,177,1076.00%17,060,69410.07%27,237,80216.07%4,840,790 2031176,260,95528,805,76416.34%9,856,2495.59%18,052,81810.24%27,909,06715.83%896,697 2032183,311,39330,012,99316.37%9,576,9345.22%19,026,12810.38%28,603,06115.60%1,409,932 2033190,643,84933,867,10217.76%9,374,6024.92%19,929,33910.45%29,303,94115.37%4,563,161 2034198,269,60335,202,40917.75%9,275,2634.68%20,755,12210.47%30,030,38515.15%5,172,024 2035206,200,38736,602,20517.75%9,247,9064.48%21,528,46010.44%30,776,36614.93%5,825,838 2036214,448,40338,065,24817.75%9,269,2144.32%22,303,48910.40%31,572,70314.72%6,492,545 2037223,026,33939,593,67017.75%9,338,3974.19%22,976,71810.30%32,315,11514.49%7,278,555 2038231,947,39242,422,09318.29%9,452,2124.08%23,660,12310.20%33,112,33514.28%9,309,758 2039241,225,28844,086,28518.28%9,602,8173.98%24,358,19510.10%33,961,01314.08%10,125,272 2040250,874,29945,823,67918.27%9,804,9453.91%25,079,29410.00%34,884,23913.91%10,939,440 Total948,614,066459,894,585373,339,279833,233,865115,380,201 Total Present Value 339,201,257216,342,53892,564,481308,907,01930,294,237 Plan Modifications Under Modified Plan #14B, the plan is closed to new members. New non-hazardous duty members enter a DC plan with an 8% of pay contribution by the City, and new hazardous duty members enter a DC plan with a 15% of pay contribution by the City. Assumptions Funding Method for Modified DBAggregate MortalityRP 2000 Tables Asset Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used; the plan no longer receives $12,000 credit from State ARC for Closed DB Plan ARC for DC Plan Modified Plan #14BCurrent Plan Total ARC ARC City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions 30 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%22,082,49626.40%23,580 201387,007,36425,845,81929.71%25,799,41829.65%46,401 201490,487,65929,251,46332.33%29,181,54132.25%69,922 201594,107,16527,097,15328.79%27,002,75928.69%94,394 201697,871,45227,229,11127.82%27,109,62227.70%119,488 2017101,786,31027,671,69827.19%27,526,26227.04%145,436 2018105,857,76228,017,83826.47%27,844,79826.30%173,039 2019110,092,07228,390,63325.79%28,189,77825.61%200,855 2020114,495,75528,753,60225.11%28,523,58224.91%230,021 2021119,075,58629,332,77024.63%29,072,80624.42%259,964 2022123,838,60929,943,48424.18%29,651,86823.94%291,616 2023128,792,15330,591,45623.75%30,267,04023.50%324,417 2024133,943,83931,281,51823.35%30,923,59123.09%357,927 2025139,301,59331,704,93922.76%31,312,61022.48%392,330 2026144,873,65732,486,06822.42%32,059,11522.13%426,953 2027150,668,60332,065,46021.28%31,603,75420.98%461,706 2028156,695,34729,940,22619.11%29,442,14118.79%498,085 2029162,963,16130,982,71919.01%30,447,96918.68%534,750 2030169,481,68832,078,59218.93%31,507,19818.59%571,394 2031176,260,95528,805,76416.34%28,197,97916.00%607,785 2032183,311,39330,012,99316.37%29,368,37216.02%644,622 2033190,643,84933,867,10217.76%33,185,81017.41%681,292 2034198,269,60335,202,40917.75%34,485,04517.39%717,364 2035206,200,38736,602,20517.75%35,848,73917.39%753,466 2036214,448,40338,065,24817.75%37,275,16117.38%790,087 2037223,026,33939,593,67017.75%38,766,37217.38%827,298 2038231,947,39242,422,09318.29%41,556,87417.92%865,220 2039241,225,28844,086,28518.28%43,182,22617.90%904,058 2040250,874,29945,823,67918.27%44,880,07417.89%943,605 Total 948,614,066935,656,992 12,957,073 Total Present Value 339,201,257336,028,778 3,172,479 Plan Modifications Under the Current Plan, the maximum benefit is 100% of final average pay. Under Modified Plan #15B, the maximum benefit is 75% of final average pay. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #15B ARC ARC 31 Savings Fiscal Year Ending Total Covered Payroll $ Amount% of Payroll$ Amount% of Payroll$ Amount 201180,443,19919,361,99224.07%19,361,99224.07%0 201283,660,92722,106,07626.42%21,903,16126.18%202,915 201387,007,36425,845,81929.71%25,446,52529.25%399,294 201490,487,65929,251,46332.33%28,649,76731.66%601,696 201594,107,16527,097,15328.79%26,284,86827.93%812,286 201697,871,45227,229,11127.82%26,200,88126.77%1,028,230 2017101,786,31027,671,69827.19%26,420,18525.96%1,251,513 2018105,857,76228,017,83826.47%26,528,79025.06%1,489,048 2019110,092,07228,390,63325.79%26,662,22524.22%1,728,408 2020114,495,75528,753,60225.11%26,774,21523.38%1,979,387 2021119,075,58629,332,77024.63%27,095,71222.76%2,237,058 2022123,838,60929,943,48424.18%27,434,05122.15%2,509,432 2023128,792,15330,591,45623.75%27,799,76721.58%2,791,690 2024133,943,83931,281,51823.35%28,201,45921.05%3,080,060 2025139,301,59331,704,93922.76%28,328,83920.34%3,376,100 2026144,873,65732,486,06822.42%28,812,02519.89%3,674,043 2027150,668,60332,065,46021.28%28,092,36218.65%3,973,098 2028156,695,34729,940,22619.11%25,654,07516.37%4,286,150 2029162,963,16130,982,71919.01%26,381,05116.19%4,601,668 2030169,481,68832,078,59218.93%27,161,60016.03%4,916,992 2031176,260,95528,805,76416.34%23,575,61213.38%5,230,153 2032183,311,39330,012,99316.37%24,465,85513.35%5,547,138 2033190,643,84933,867,10217.76%28,004,40514.69%5,862,697 2034198,269,60335,202,40917.75%29,029,30614.64%6,173,103 2035206,200,38736,602,20517.75%30,118,43314.61%6,483,772 2036214,448,40338,065,24817.75%31,266,34314.58%6,798,905 2037223,026,33939,593,67017.75%32,474,55214.56%7,119,119 2038231,947,39242,422,09318.29%34,976,65115.08%7,445,442 2039241,225,28844,086,28518.28%36,306,62415.05%7,779,661 2040250,874,29945,823,67918.27%37,703,71115.03%8,119,967 Total 948,614,066837,115,039 111,499,026 Total Present Value 339,201,257311,901,241 27,300,015 Plan Modifications Under the Current Plan, the maximum benefit is 100% of final average pay. Under Modified Plan #16B, the maximum benefit is $80,000 per year. This change applies only to members hired after December 31, 2010. Assumptions MortalityRP 2000 Tables Investment Return Assumption 7.50% Covered Payroll Growth 4.00% No future non-investment gains or losses Credit Balance of $8,414,390 as of December 31, 2009 is not used City of Clearwater Employees' Pension Plan 30 Year Projection of Required City Contributions Current Plan Modified Plan #16B ARC ARC 32 33 City of Clearwater Employees' Pension Plan Summary of 30 Year Projection of Required City Contributions (in millions) ARC Savings FYE 201130-Year TotalPresent ValueFYE 201130-Year TotalPresent Value Current Plan$19.4$948.6$339.2 Modified Plan #1A16.5823.0295.9$2.9$125.7$43.3 Modified Plan #2A18.2886.1318.11.262.521.1 Modified Plan #3A18.7903.2325.20.745.514.0 Modified Plan #4A18.1862.8312.71.385.826.5 Modified Plan #5A18.9920.4330.20.528.29.0 Modified Plan #6A18.5902.5324.40.846.114.8 Modified Plan #7A17.6880.9317.61.767.721.6 Modified Plan #8A19.1939.0335.70.39.63.5 Modified Plan #9A17.9902.6324.21.446.015.0 Modified Plan #10A18.4906.6324.81.042.114.4 Modified Plan #11A17.7873.9313.51.774.725.7 Modified Plan #12A18.6904.3325.30.744.313.9 Modified Plan #13A14.6745.1269.34.7203.569.9 Modified Plan #14A13.7688.4228.05.7260.2111.2 Modified Plan #15A18.4910.4325.51.038.213.7 Modified Plan #16A15.7771.9280.23.7176.759.0 Modified Plan #1B19.4887.9324.30.060.714.9 Modified Plan #2B19.4916.5331.50.032.17.7 Modified Plan #3B19.4917.6331.60.031.07.6 Modified Plan #4B19.4888.9324.60.059.714.6 Modified Plan #5B19.4928.2334.20.020.55.0 Modified Plan #6B19.4914.9330.90.033.88.3 Modified Plan #7B19.4907.7329.20.040.910.0 Modified Plan #8B19.4945.2338.40.03.40.8 Modified Plan #9B19.4924.7333.40.023.95.8 Modified Plan #10B19.4927.5334.00.021.15.2 Modified Plan #11B19.4911.4330.10.037.29.1 Modified Plan #12B19.4914.2330.80.034.48.4 Modified Plan #13B19.4873.1321.40.075.517.8 Modified Plan #14B19.6833.2308.9(0.3)115.430.3 Modified Plan #15B19.4935.7336.00.013.03.2 Modified Plan #16B19.4837.1311.90.0111.527.3 Attachment number 2 Page 38 of 38 Clearwater Employees’ Pension Plan Plan Design Study Copyright © 2010 GRS –All rights reserved. Plan Design Study December 6, 2010 Projection of Current Plan a 2 Sample Normal Retirement Calculation HazardousDuty Member Non-Hazardous Duty Member Age4555 Service2025 AverageMonthly Compensation $6,500 $4,000 3 Compensation (Highest 5 of Last 10) $6,500 $4,000 Monthly Benefit Amount 2.75% x 20 x $6,500 = $3,575 2.75% x 25 x $4,000 = $2,750 Formof Payment Life annuity;spouse benefit 100% for 5 years; 50% thereafter Cost of Living Adjustments1.5% eachyear Savings of Various Plan Modifications Savings of various modifications in plan provisions follow. Scenarios labeled as “A” : applies to future and current members except those eligible for current members except those eligible for normal retirement as of December 31, 2010. Scenarios labeled as “B” : applies only to members hired after December 31, 2010. 4 Modified Plan #1A and #1B Normal form of benefit changed to life annuity for non-hazardous duty members and ten-year certain and life annuity for hazardous duty members. 5 Savings#1A#1B First Year$2,875,982$ 0 First 5-Year Total$15,010,648$1,097,499 30-Year Total$125,652,623$60,693,660 Present Value of 30-Year Total$43,322,692$14,860,559 Modified Plan #2A and #2B Overtime pay is excluded from pensionable earnings. 6 Savings#2A#2B First Year$1,197,446$0 First 5-Year Total$6,959,297$516,103 30-Year Total$62,472,216$32,119,941 Present Value of 30-Year Total$21,093,759$7,714,229 Modified Plan #3A and #3B The benefit multiplier for non-hazardous duty members is lowered to 2.5% for service after December 31, 2010. 7 Savings#3A#3B First Year$663,775$0 First 5-Year Total$3,764,069$561,081 30-Year Total$45,451,649$31,028,781 Present Value of 30-Year Total$14,023,583$7,597,252 Modified Plan #4A and #4B Benefit multiplier for all members lowered from 2.75% to 2.5% for service after December 31, 2010. 8 Savings#4A#4B First Year$1,261,443$0 First 5-Year Total$7,128,293$1,079,002 30-Year Total$85,790,084$59,670,733 Present Value of 30-Year Total$26,480,186$14,610,100 Modified Plan #5A and #5B Member contribution rate for non-hazardous duty members is increased from 8% to 9%. 9 Savings#5A#5B First Year$488,583$0 First 5-Year Total$2,674,030$369,943 30-Year Total$28,241,410$20,458,537 Present Value of 30-Year Total$9,016,479$5,009,177 Modified Plan #6A and #6B The member contribution rate for all members is increased from 8% to 9%. 10 Savings#6A#6B First Year$812,766$0 First 5-Year Total$4,405,854$610,407 30-Year Total$46,118,362$33,756,586 Present Value of 30-Year Total$14,755,451$8,265,142 Modified Plan #7A and #7B “20 and out” provision for hazardous duty members is replaced with normal retirement eligibility at age 52 with 25 years of service. 11 Savings#7A#7B First Year$1,747,328$0 First 5-Year Total$6,467,591$739,887 30-Year Total$67,687,246$40,917,074 Present Value of 30-Year Total$21,622,124$10,018,354 Modified Plan #8A and #8B The “30 and out” provision for non-hazardous duty members is eliminated. 12 Savings#8A#8B First Year$267,629$0 First 5-Year Total$1,361,170$61,657 30-Year Total$9,608,480$3,409,756 Present Value of 30-Year Total$3,524,622$834,863 Modified Plan #9A and #9B Normal retirement for non-hazardous duty members at age 55 with 20 years service changed to age 60 with 20 years of service. 13 Savings#9A#9B First Year$1,432,478$0 First 5-Year Total$4,722,975$431,601 30-Year Total$46,027,767$23,868,293 Present Value of 30-Year Total$14,952,885$5,844,040 Modified Plan #10A and #10B Annual COLA is reduced from 1.5% to 1.25% per year. 14 Savings#10A#10B First Year$951,177$0 First 5-Year Total$4,973,186$382,275 30-Year Total$42,058,034$21,140,488 Present Value of 30-Year Total$14,445,049$5,176,150 Modified Plan #11A and #11B Annual COLA is delayed five years after the benefit commencement date. 15 Savings#11A#11B First Year$1,697,503$0 First 5-Year Total$8,868,255$672,064 30-Year Total$74,685,993$37,166,342 Present Value of 30-Year Total$25,689,455$9,100,005 Modified Plan #12A and #12B Minimum duty disability benefit is lowered from 66 2/3% to 42% of final average pay. 16 Savings#12A#12B First Year$724,679$0 First 5-Year Total$3,982,978$622,738 30-Year Total$44,306,321$34,438,537 Present Value of 30-Year Total$13,922,441$8,432,115 Modified Plan #13A and #13B Plan closed to new non-hazardous duty members –replaced with DC plan with an 8% of pay City contribution In #13A, existing non-hazardous duty members also have frozen benefits and enter the DC plan.also have frozen benefits and enter the DC plan. 17 Savings#13A#13B First Year$4,717,576$0 First 5-Year Total$25,067,716$1,380,128 30-Year Total$203,542,377$75,474,966 Present Value of 30-Year Total$69,894,138$17,849,058 Modified Plan #13A(2) & #13B(2) Same as #13A and #13B but including the additional 6.2% of pay City cost for social security taxes. 18 Savings#13A(2)#13B(2) First Year$1,673,085$0 First 5-Year Total$9,041,981$(856,942) 30-Year Total$43,077,032$(46,863,541) Present Value of 30-Year Total$19,397,371$(11,082,749) Modified Plan #14A and #14B Plan closed to new members -DC plan -8% and 15% of pay City contribution for non-hazardous and hazardous duty members, respectively. In #14A, existing members also have frozen benefits and enter the DC plan.benefits and enter the DC plan. 19 Savings#14A#14B First Year$5,656,522$(276,958) First 5-Year Total$51,329,985$3,458,874 30-Year Total$260,177,906$115,380,201 Present Value of 30-Year Total$111,156,106$30,294,237 Modified Plan #14A(2) & #14B(2) Same as #14A and #14B but including the additional 6.2% of pay City cost for social security taxes. 20 Savings#14A(2)#14B(2) First Year$669,044$(276,958) First 5-Year Total$24,316,193$(363,874) 30-Year Total$(19,544,497)$(96,024,672) Present Value of 30-Year Total$21,447,646$(21,467,258) Modified Plan #15A and #15B Maximum benefit is lowered to 75% of final average pay. 21 Savings#15A#15B First Year$1,001,924$0 First 5-Year Total$5,124,819$234,297 30-Year Total$38,165,442$12,957,073 Present Value of 30-Year Total$13,740,586$3,172,479 Modified Plan #16A and #16B Maximum benefit is $80,000 per year. 22 Savings#16A#16B First Year$3,650,632$0 First 5-Year Total$19,302,430$2,016,191 30-Year Total$176,695,494$111,499,026 Present Value of 30-Year Total$58,976,066$27,300,015 Clearwater Employees’ Pension Plan Plan Design Study Copyright © 2010 GRS –All rights reserved. Plan Design Study December 6, 2010