ACTUARY'S REPORT FOR THE CITY OF CLEARWATER EMPLOYEES' PENSION PLAN FOR THE PLAN YEAR: 1/1/89 - 12/31/89ACTUARY'S REPORT FOR THE
CITY OF C_L,EARWATER EMPLOYEES'
PENSION PLAN
As of January 1, 1989
to determine annual contribution
for the Plan Year: 1/1/89 - 12/31/89
to be paid in the Fiscal. Year: 10/1/89 - 9/30/90
Coopers
&Ly rand
Certified Public Accountants
r
u
Coopers
&Lybrand
December 5, 1989
certified public accountants
actuarial benefits
and compensation
consulting division
City of Clearwater
Post Office Box 4748
Clearwater, FL 33518-4748
Gentlemen:
Suite 1500
101 E. Kennedy Blvd.
Tampa, Florida 33602
Tampa (813) 229-0221
Pinellas (813) 461-1580
Fax (813) 229-3646
in principal areas of the world
This report presents the results of the January 1, 1989 actuarial
valuation of the City of Clearwater Employees' Pension Plan. It has
been prepared primarily to present to management the contribution
requirements for 1989 and also the current status of funding of
accumulated plan benefits. Section IV of this report includes the
plan's Projected Benefit obligation as required by the Government
Accounting Standards Board (GASB) Statement No. 5.
Our calculations were based on financial data and employee data
furnished by the City of Clearwater.
The valuation was based upon generally accepted actuarial methods,
and we performed such tests as we considered necessary to assure the
accuracy of the results. To our knowledge there are no benefits or
expenses to be provided by the plan for which a liability or current
cost was not established. We certify that the amounts presented in
the accompanying report have been appropriately determined according
to the actuarial assumptions stated herein.
Statement by Enrolled Actuary
This actuarial valuation is complete and accurate and in my opinion,
the techniques and assumptions used are reasonable and meet the
requirements and intent of Part VII, Chapter 112, Florida Statutes.
Respectfully {submitted,
Stephen M. Metz
Associate of the Society of Actuaries
Enrolled Actuary No. 4342
62
Ann M. O'Connell
Associate of the Society of Actuaries
Enrolled Actuary No. 3463
CONTENTS
Page
SECTION I SUMMARY 1
SECTION II FUNDING 5
SECTION III ASSETS 10
SECTION IV ACCOUNTING 12
SECTION V CENSUS DATA 15
SECTION VI ASSUMPTIONS AND METHODS 18
SECTION VII SUMMARY OF PLAN PROVISIONS 21
SECTION VIII COMPARATIVE SUMMARY OF
PRINCIPAL VALUATION RESULTS 24
City of Clearwater Employees' Pension Plan
SECTION I - SUMMARY
A. Contribution Limits for the Plan Year Ending December 31, 1989
Minimum Required Employer Contribution $ 3,633,616
The employer contribution is assumed to be made uniformly during the
first two quarters of the fiscal year beginning on October 1, 1989.
Differences in the investment return due to contributions actually
being made at any other time will be recognized as an actuarial gain
or loss in the following valuation. The minimum required
contribution represents a funding level which will satisfy the
minimum funding requirements under Part VII, Chapter 112, Florida
Statutes.
The employer contribution requirement shown above includes a change
in the plan provisions and the actuarial assumptions under the Plan.
This valuation reflects the third stage of a three year phase-in of
the 1983 Group Annuity Mortality Table and a change in the minimum
benefit under the Plan from $75 per month to $300 per month. These
changes in actuarial assumptions and plan provisions increased the
employer required contribution by $275,499 from $3,358,117 to
$3,633,616. There were no other changes in actuarial assumptions or
plan provisions.
B. Funded Status of Pension Benefit Obligation as of January 1
1989
Present Value of Credited Projected Plan
Benefits:
Vested
' Non-vested
Total
' Net Assets Available for Benefits
$ 88,918,646
13,999,682
City of Clearwater Employees' Pension Plan
SECTION I - SUMMAM
(continued)
C. Couyarative Summary of Principal Valuation Results
Actuarial Valuation Prepared as of: Jan 1, 1989 Jan 1, 1988 Jan 1, 1987
(a) Participant Data
Ntmtber Included
Active Members 1,177 1,146 1,126
Retirees and Beneficiaries 269 250 232
Terminated Vested
Participants 3 3 5
Annual Payroll of Actives $ 30,147,940 $ 27,785,919 $ 25,777,424
Annualized Benefits
Retirees and
Beneficiaries
$ 2,538,073
$
2,213,236
$
1,915,301
Terminated Vested
Participants $ 13,981 $ 13,981 $ 24,264
b
A
t
(
)
sse
s
Market Value $106,049,726 $ 94,842,597 $ 83,397,441
Statement Value $106,049,726 $ 94,862,771 $ 83,391,269
Actuarial Value $106,049,726 $ 94,862,771 $ 83,391,269
(c) Liabilities
Present Value of Expected
Benefits:
Active Participants:
' Retirement Benefits
Termination Benefits $107,899,995
9
445
357 $ 94,664,264
8
437
123 $ 85,604,599
7
038
239
,
, ,
, ,
,
Disability Benefits 5,879,439 5,211,729 4,535,173
' Death Benefits
Refund of Employee 1,729,447 1,423,426 1,256,851
contributions 1,562,747 1,485,841 1,303,771
' Total Active $126,516,985 $111,222,383 $ 99,7380,633
Terminated Vested Participants 137,332 126,159 237,455
' Retirees and Beneficiaries 29,175,937 $ 25,775,396 $ 22,003,420
Total Present Value of
' Expected Benefits $155,830,254 $137,123,938 $121,979,508
Liabilities Due and Unpaid $ 132,167 $ 62,878 $ 66,656
City of Clearwater Employees' Pension Plan
SECPIM I - SUMMARY
(continued)
C. Camparative Summary of Principal Valuation Results, (continued)
(c) Liabilities (continued)
Actuarial Valuation Prepared as of: Jan 1, 1989 Jan 1, 1988 Jan 1, 1987
Unfunded Actuarial Accrued Liability
Frozen Initial Liab. (FIL) - 1/1/79 $ 7,194,869 $ 7,516,735 $ 7,817,544
Supplemental FIL - 1/1/79 2,256,009 2,312,369 2,365,042
Supplemental FIL - 1/1/81 341,974 349,006 355,578
Supplemental FIL - 1/1/82 (4,049,371) (4,125,030) (4,195,740)
Supplemental FIL - 1/1/87 1,485,852 1,503,060 1,519,142
Supplemental FIL - 1/1/88 1,656,019 1,673,738 N/A
Supplemental FIL - 1/1/89 $ 2,177,772 $ N/A $ N/A
Total $ 11,063,124 $ 9,229,878 $ 7,861,566
(d) Actuarial Present Value of
Accrued Benefits (see Sub-
section IV for detail)
Changes During Prior Year:
Value from Prior Year:
Benefits Paid
Interest, Aging and
Benefits Accrued
Change in Assumptions
Change in Plan Provisions
$ 87,769,141 $ 74,756,164 $ 65,684,470
$ 74,756,164 $ 65,684,470 $ 57,121,187
(2,845,932) (2,524,043) (2,200,289)
13,156,799 10,306,597 9,608,830
1,444,746 1,289,140 1,154,742
1,257,364 0 0
Net Change
Value at End of Prior Year
$ 13,012,977 $ 9,071,694 $ 8,563,283
$ 87,769,141 $ 74,756,164 $ 65,684,470
(e) Pension Cost for Year
Normal Cost
Amortization of Unfunded
Frozen Initial Liability
Administrative Expenses
Shortfall for Expenses in
Prior Year
Interest Adjustment
Total Required Contribution
As a Percentage of Payroll
Anticipated Employee Contri-
butions
As a Percentage of Payroll
$ 4,531,235 $ 3,842,793 $ 3,698,507
1,089,828 925,810 799,753
235,874 285,073 254,821
(49,199) 30,252 35,079
237,713 200,274 190,818
$ 6,045,451 $ 5,284,202 $ 4,978,978
20.1% 19.0% 19.3%
$ 2,411,835 $ 2,222,874 $ 2,062,194
8.0% 8.0% 8.0%
City Required Contribution
As a Percentage of Payroll
$ 3,633,616 $ 3,061,328 $ 2,916,784
12.1% 11.0% 11.3%
3
City of Clearwater Employees' Pension Plan
SFJMCN I - SUMMARY
(continued)
C. Comparative Summary of Principal Valuation Results, (continued)
Actuarial Valuation Prepared as of: Jan 1, 1989 Jan 1, 1988 Jan 1, 1987
(f) Prior Year Actual contributions
made by
Employees $ 2,441,599 $ 2,248,932 $ 2,075,528
City 3,061,328 2,916,784 2,813,736
Tbtal $ 5,502,927 $ 5,165,716 $ 4,889,264
(g) Gains and Losses N/A N/A N/A
(h) Other Present Values
Present Value of Future
Salaries
At attained age $257,603,200 $238,806,000 $220,529,000
At entry age $205,098,000 $189,843,600 $178,145,200
Present Value of Employee
Contributions
At attained age $ 19,547,742 $ 18,117,165 $ 16,725,835
At entry age 15,415,555 14,266,142 13,387,226
Present Value of Future
Normal Costs $ 38,717,404 $ 33,031,289 $ 30,726,673
Present Value of Benefits
Active Employees -
at entry age $ 38,214,400 $ 34,030,539 $ 31,853,991
(i) Comparison of Actual and Assumed
Salary Increases Investment Return
Year Ended Actual Assumed Actual Assumed
12/31/86 7.4% 5.0% 13.21% 7.0%
12/31/87 5.9% 5.0% 10.78% 7.0%
12/31/88 9.1% 5.0% 9.12% 7.0%
4
City of Clearwater Employees' Pension Plan
LION II - FUND9M
A. Development of the Unfunded Frozen Actuarial Accrued Liability
1. Unfunded Frozen Actuarial Accrued
Liability as of January 1, 1988 $9,229,878
Interest to December 31, 1988 646,091
$ 9,875,969
2. Normal Cost* for Year with interest
to December 31, 1988 2,135,518
3. Contribution for Period $3,061,328
Interest to December 31, 1988 64,807
$ 3,126,135
4. Increase in Unfunded Frozen
Actuarial Accrued Liability due
to change in assumptions $ 1,843,408
5. Increase in Unfunded Frozen
Actuarial Accrued Liability due
to change in plan provisions $ 334,364
6. Unfunded Frozen Actuarial Accrued
Liability as of December 31, 1988 $11,063,124
(Items 1+2 -3+4+5)
*Includes Expenses and Adjustments
5
City of Clearwater Employees' Pension Plan
SECTION II - FUNDDU
(continued)
B. Development of Normal Cost
The Normal Cost is the portion of the cost of projected benefits which is
allocated to the current plan year by the actuarial cost method. The Normal
Costs for the plan years beginning January 1, 1989, January 1, 1988 and
January 1, 1987 are determined as follows:
Jan 1, 1989 Jan 1, 1988 Jan 1, 1987
Tonal Projected Actuarial Liability:
the present value as of the beginning
of the plan year of all benefits
expected to be paid in the future
to current participants.
o Active participants
o Terminated vested participants
o Retired and disabled participants
$126,516,985 $111,222,383 $ 99,738,633
137,332 126,159 237,455
29,175,937 25,775,396 22,003,420
o Total participants
Fund: The actuarial value of fund
assets as of the beginning of the
plan year.
Dx)ess of Total Projected Actuarial
Liability Over the Fund: the portion
of the projected total actuarial
liability to be funded in the future.
$155,830,254 $137,123,938 $121,979,508
$106,049,726 $ 94,862,771 $ 83,391,269
$ 49,780,528 $ 42,261,167 $ 38,588,239
This portion is divided into two
components:
a. Unfunded Frozen Actuarial Accrued
Liability
b. Present value of future service
liability (funded over the
expected future service years
of current participants)
$ 11,063,124 $ 9,229,878 $ 7,861,566
$ 38,717,404 $ 33,031,289 $ 30,726,673
Present Value of Future Covered Payroll: $257,603,200 $238,806,000 $220,529,000
Normal Cost Rate: the ratio of the
present value of future service
liability to the Present Value of
Future Covered Payroll. 15.03% 13.83% 13.93%
Annual Covered Payroll: the reported
payroll for funded participants who have
not attained the assumed retirement age. $ 30,147,940 $ 27,785,919 $ 25,777,424
6
City of Clearwater Employees' Pension Plan
SEcTiCN r i - FUND9M
(continued)
B. Development of Normal Cost (continued)
Jan 1, 1989 Jan 1, 1988 Jan 1, 1987
Naval Cost: the annual cost as of
the beginning of the plan year to fund
the future service liability aver the
expected future years of service of
the current participants.
Normal. Cost for Reb= of &plcyee
Contributions:
Total Normal Cost:
$4,531,235 $3,842,793 $3,590,795
0 0 107,712*
4,531,235 $3,842,793 3,698,507
* Make up for shortfall in prior years Normal Cost for Return of Employee
Contributions ccnpared to actual return of $359,784.
7
City of Clearwater Employees' Pension Plan
Sumaff II - FUNDDU
(continued)
C. Schedule of Amortization Payments
Date
Established Reason
1/1/79* Frozen Initial
Liability (FIL)
1/1/79 Supplemental FIL
1/1/81 Supplemental FIL
1/1/82 Supplemental FIL
1/1/87 Supplemental FIL
1/1/88 Supplemental FIL
1/1/89 Supplemental
Total FIL
Initial
Amort. Jan 1, 1989 Annual
Initial Period Unamortized Amortization
Amount Yrs Amount Payment
$9,726,419 24.5 $7,194,869 $ 792,558
2,707,962 30.0 2,256,009 203,949
390,421 30.0 341,974 29,404
(4,521,985) 30.0 (4,049,371) (340,571)
1,519,142 30.0 1,485,852 114,413
1,673,738 30.0 1,656,019 126,057
2,177,772 30.0 2,177,772
$11,063,124 S 164,018
1,0890828
*Established July 1, 1963 and being amortized over a forty year period begin-
ning on that date.
8
City of Clearwater Employees' Pension Plan
SECTION II - FUNDING
(continued)
D. Anticipated Amortization Schedule
Shown below is the anticipated amortization schedule for the
Unfunded Frozen Actuarial Accrued Liability taking into account the
funding policy and the plan's current credit balance.
Anticipated Amortization Schedule
Unfunded Frozen
Date Actuarial Accrued Liability
1989 11,063,124
1990 10,671,427
1991 10,252,311
1992 9,803,857
2019 0
On July 1, 1963 the Unfunded Frozen Actuarial Accrued Liability was
established equal to the difference between the retirement plan's
accrued liability, determined under the Entry Age Normal Funding
Method, and the actuarial value of plan assets. According to the
plan's funding policy the initial liability is to be amortized by a
series of level payments over a forty-year period. Subsequent
changes in the level of the Frozen Actuarial Accrued Liability due
to plan amendments or changes in actuarial assumptions are to be
amortized on a straight-line basis over a period of thirty years.
By contributing more than the stated funding policy, the
amortization of the Unfunded Frozen Actuarial Accrued Liability can
be accelerated.
9
City of Clearwater Employees' Pension Plan
SECTION III - ASSETS
Comparative Balance Sheet
As of December 31, 1988
Statement Value
Value
ASSETS 12/31/88
Total Cash $ 5,793 $
Receivables:
Employer Contributions
Accrued Income
Total Receivables
Investments:
U.S. Government Securities
Short Term
Pooled/Mutual Funds:
Treasury Fund
Government Funds
Cash & Equity
Corporate Debt Instruments
Corporate Stocks:
Preferred
Common
Total Investments
Other Assets:
GIC's and Insurance Contracts
TOTAL ASSETS
LIABILITIES AND ACTUARIAL RESERVES
Liabilities:
Payables
Plan Claims
Accounts Payable
Total Liabilities
Actuarial Reserves:
Accumulated Member
Contributions
Balance of Actuarial Reserves
Total Actuarial Reserves
TOTAL LIABILITIES AND
ACTUARIAL RESERVES
1,522,259
2,035,862
3,558,121
3,682,442
0
0
6,044,640
0
0
45,545,678
55,272,760
47,345,219
$ 1,119
131,048
132,167
14,756,478
91,293,248
106,049,726
Statement
12/31/87
4,399
1,391,584
1,963,832
3,355,416
2,273,641
12,396,562
5,949,760
3,657,181
150,674
0
29,830,516
54,258,334
37,307,500
$ 94,925,649
$ 1,283
61,595
62,878
13,197,465
81,665,306
94,862,771
$ 94,925,649
1 10
City of Clearwater Employees' Pension Plan
SECTION III - ASSETS
(continued)
Schedule of Changes in Actuarial Reserves
For the Plan Year Ended December 31, 1988
Revenues:
Employee Contributions
Employer Contributions
Earnings on Investments:
Interest $ 5,814,931
Dividends 934,138
Realized Net Gains on
Securities Transactions (555,382)
Unrealized Appreciation
(Depreciation) on Investments
Expenses:
Benefits paid $ 2,527,169
Refunds of Contributions 318,763
Professional Fees 232,379
Other Expenses 3,495
Net Change in Actuarial Reserves
Actuarial Reserves at Beginning of Plan Year
Actuarial Reserves at End of Plan Year
Statement Value
$ 2,441,599
3,061,328
6,193,687
2,572,147
14,268,761
3,081,806
11,186,955
94,862,771
$106,049,726
11
City of Clearwater Employees' Pension Plan
SECTION IV - ACCOUNTING
A. Actuarial Present Value of Credited Projected Benefits*
Jan 1, 1989 Jan 1, 1988
1. Pension Benefit Obligation:
Retirees and beneficiaries
receiving benefits
Former participants
current participants:
Employee vested
Employer vested
Employer non-vested
Total
2. Market value of plan assets
at beginning of year
3. Unfunded Pension Benefit
Obligation ( (1) - (2) )
$ 29,175,937
137,332
14,754,693
44,850,684
13,999,682
$102,918,328
$ 25,775,396
126,159
13,197,465
38,846,007
11,026,579
$ 88,971,606
$106,049,726 $ 94,842,597
B. Two Year Historical Trend Information
Jan 1. 1989 Jan 1, 1988
1. Market value of plan assets
' as a percentage of PBO 103.0% 106.6%
2. Unfunded Pension Benefit
as a percentage of
' covered payroll (10.4%) (21.1%)
3. City contributions as a
' percentage of covered
payroll 12.1% 11.0%
The pension benefit obligation is a standardized disclosure
measure of the present value of pension benefits, adjusted for the
effects of projected salary increases and any step-rate benefits,
' estimated to be payable in the future as a result of service to
date. The measure is independent of the plan's actuarial funding
method used in determining the annual funding requirement. The
above present values were computed using the applicable actuarial
' assumptions summarized in Section VI of this report.
12
City of Clearwater Employees' Pension Plan
SECTION IV - ACCOUNTING
B. Actuarial Present Value of Accumulated Plan Benefits
Jan 1, 1989 Jan 1, 1988
1. Present value of accumulated
plan benefits:
Vested:
Retirees and beneficiaries
receiving benefits
Terminated participants
Active participants
Total Vested
Non-vested:
Total
2. Market value of assets
at beginning of plan year
$ 29,175,937
137,332
47,337,511
76,650,780
11,118,361
87,769,141
$ 25,775,396
126,159
40,749.563
66,651,118
8,105,046
74,756,164
13
City of Clearwater Employees' Pension Plan
SECTION IV - ACCOUNTING
(continued)
C. Statement of Changes in Protected Benefit Obligation
The changes in projected plan benefits from January 1, 1988 to
January 1, 1989 are presented below:
1. Actuarial present value of
projected plan benefits at
January 1, 1988
2. Increase (decrease) during the
plan year attributable to:
Benefits paid
Benefits accumulated and increase
for interest due to the decrease
in the discount period
Change in actuarial assumptions
Change in plan provisions
Net increase (decrease)
3. Actuarial present value of
projected plan benefits at
January 1, 1989
88,971,606
(2,845,932)
13,716,467
1,669,140
1,407,047
$ 13,946,722
14
City of Clearwater Employees' Pension Plan
SECTION V - CENSUS DATA
A. Reconciliation of Employee Data
A summary of changes in the employee data from January 1, 1988
through January 1, 1989 follows. Employees who do not participate in
the plan are not included.
articipants included
in the January 1, 1988
valuation
Active
Participants
1,146
Terminated
Vested
Employees
3 Retired
Participants
and
Beneficiaries
250
otal
1,399
Non-vested terminations (69) (69)
Vested terminations
Deaths with eligible
beneficiary
Deaths without eligible
beneficiary
Retirements (19) 19
Cash Settlements
Rehires 2 2
New participants 117 117
Participants included
in the January 1, 1989
valuation 1,177 3 269 1,449
Active Participants:
Fully vested 464
Partially vested 0
Non-vested 713
Total 1,177
15
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City of Clearwater Employees' Pension Plan
SECTION V - CENSUS DATA
(continued)
C.
Inactive Participant Count and Benefits as of January 1
1989
Terminated Vested Participants
Retired Participants
and Beneficiaries
Number of
Participants
3
269
Annual
Benefit
$ 13,981
$2,538,073
17
1I
' City of Clearwater Employees' Pension Plan
SECTION VI - ASSUMPTIONS AND METHODS
A. Actuarial Assumptions
Investment Yield: The investment rate of earnings is assumed
to be 7% per annum.
Mortality: Mortality was based on the 1951 Group Annuity
Mortality Table for Males projected to 1965 using Scale C with
female ages set back five years. Beginning January 1, 1987
1 mortality is assumed to follow the 1983 Group Annuity
Mortality Table for Males with females ages set back six
years. The additional cost associated with this change to
' lower mortality was recognized over three years.
Withdrawal: Pre-retirement withdrawals are assumed to occur
' in accordance with standard scales of moderate turnover rates
(Scale 255) for males and heavy turnover rates (Scale 355) for
females. Sample rates are shown below. .
Rate of Withdrawal
Acre Male Female
20 14.9% 37.4%
25 9.9% 22.4%
30 6.9% 14.9%
35
40 4.9%
2.8% 10.4%
7.4%
45 1.7% 4.3%
50 0.4% 2.7%
' 55 0.0% 0.9%
60 and over 0.0% 0.0%
Disability: Pre-retirement incidence of disability is
assumed to occur in accordance with a standard scale of
moderate disability rates (Class 1, 1952 Inter-Company).
Rates for females are assumed to be double that for males.
Sample rates for males are shown below:
Age Incidence of Disability
20 .17%
25 .17%
30 .17%
35 .18%
40 .20%
45 .23%
18
1I
i City of Clearwater Employees' Pension Plan
SECTION VI - ASSUMPTIONS AND METHODS
(continued)
A. Actuarial Assumptions, (continued)
Age Incidence of Disability
50 .29%
55 .39%
60 .59%
1 65 1.04%
70 1.74%
' Service vs. Non-service: All pre-retirement deaths are assumed
to be non-service related. All incidence of disability is
' assumed to be service related.
Salary Scale: Future salaries are assumed to increase at the
rate of 5% per year.
Retirement Rate: Each active participant is assumed to retire on
the later of the actuarial valuation date or his Normal
Retirement Date.
Timing of Contribution: The contribution is assumed to be made
uniformly during the first two quarters of the fiscal year
beginning on the October 1 following the valuation date.
Employees Covered: All participants as of the actuarial
valuation date.
Spouses: Eighty-five percent (85%) of the active participants
' are assumed to be married (or have dependents eligible for
Survivor's Benefits). Female spouses are assumed to be five
years younger than male spouses.
' Expenses: Expenses are assumed to equal last year's actual
expenses.
' Completeness of Assumptions: All benefits and expense to be
provided by the Plan are recognized in the valuation. All known
events are taken into account; no current trends are assumed to
' discontinue in the future.
11 19
City of Clearwater Employees' Pension Plan
SECTION VI - ASSUMPTIONS AND METHODS
(continued)
B. Asset Valuation Method
Assets are valued at statement value, which is amortized value
for bonds and market value for equity investments.
C. Actuarial Cost Method
The actuarial cost method is the Frozen Entry Age Actuarial Cost
Method. Under this method the excess of the actuarial present
value of projected benefits over the sum of the actuarial value
of assets plus the Unfunded Frozen Actuarial Accrued Liability is
funded on a level basis over the future compensation of active
employees. The portion of this excess allocated to the current
year is called the Normal Cost. The Frozen Actuarial Accrued
Liability is determined using the Entry Age Actuarial Cost
Method. This Frozen Actuarial Accrued Liability is adjusted from
time to time to reflect changes in the Plan or in the actuarial
assumptions. The Unfunded Frozen Actuarial Accrued Liability is
separately amortized over a fixed number of years.
20
City of Clearwater Employees' Pension Plan
SECTION VII - SUMMARY OF PLAN PROVISIONS
This summary is intended as an outline of plan provisions and
' does not alter the intent or meanings of the provisions contained
in the contract and/or plan document.
Plan Year: January 1 to December 31.
Eligibility: Any permanent employee who is less than age 45 on
his date of employment shall participate in the plan
immediately.
Current Employee Contributions: Wages and salaries actually paid
' to a participant, from which Employee Contributions are withheld.
Average Monthly Compensation: The total Compensation received
during the last five years of service divided by sixty.
Accrued Benefit. A monthly benefit equal to 2.5% of Average
Monthly Compensation multiplied by the number of years of service
' to date.
Normal Retirement:
a. Eligibility (Normal Retirement Date):
o Non-Hazardous Duty: Completion of at least 20 years of
service and the attainment of age 55, or the completion
of 30 years of service.
o Hazardous Duty: Completion of 20 years of service.
b. Normal Retirement Benefit: The participant's Accrued
Benefit payable as of his actual retirement date on or
after his Normal Retirement Date. No adjustment applies
for deferred retirement beyond his Normal Retirement Date.
The minimum Normal Retirement Benefit is $300 per month.
C. Normal Form of Benefit: A monthly annuity for the life of
the participant. After the participant's death, 100% of
the Normal Retirement Benefit shall be paid as a Survivor
Annuity to the spouse, dependent children under 18, or
dependent parent(s) for five years. After five years,
such Survivor Annuity is reduced to 50% of the original
amount (and the $300 minimum is no longer controlling).
The Survivor Annuity ceases upon death or remarriage of
the spouse or dependent parent(s) or attainment of age 18
by the dependent children.
21
City of Clearwater Employees' Pension Plan
SECTION VII - SUMMARY OF PLAN PROVISIONS
(continued)
Disability Benefit:
a. Eligibility: Total and permanent disability. If the
disability is non-service connected, there is an
additional requirement of the completion of 10 years of
service.
b. Disability Benefit: The participant's Accrued Benefit,
payable immediately. If the disability is service
connected, the Disability Benefit must be at least 75% of
Average Monthly Compensation. The minimum Disability
Benefit is $300 per month. The Disability Benefit is
increased by 15% of such benefit for each dependent child
under 18, but such increments cannot exceed 100% of the
original Disability Benefit.
C. Form of Benefit: A monthly annuity for the life of the
participant. After the participant's death, a Survivor
Annuity is provided as described under the Normal Form of
Benefit. The 15% increments for dependent children under
18 continues to the participant's spouse after his death
as long as the children so qualify.
Death:
a. Eligibility: Any actively-employed participant.
b. Death Benefit: The participant's Accrued Benefit, payable
immediately. If death is service connected, the Death
Benefit must be at least 75% of Average Monthly Compensa-
tion. The minimum Death Benefit is $300 per month.
C. Form of Benefit: A monthly Survivor Annuity as described
under the Normal Form of Benefit.
Vested Termination:
a. Eligibility: Completion of 10 years of service.
' b. Termination Benefits: The participant's Accrued Benefit
payable as of his Norma l Retirement Date, provided
Employee Contributions are not refunded. The minimum
' Termination Benefit is $300 per month.
1 22
' City of Clearwater Employees' Pension Plan
SECTION VII - SUMMARY OF PLAN PROVISIONS
(continued)
Vested Termination (continued)
C. Form of Pay ment: A monthly annuity for the life of the
participant. After the participant's death, a Survivor
Annuity is provided as described under the Normal Form of
Benefit, beginning at the latter of the participant's
Normal Retirement Date or date of death.
Non-Vested Termination:
' a. Eligibility: Any actively-employed participant.
b. Benefit: Refund of Employee Contributions without
interest.
C. Form of Benefit: Lump sum.
23
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