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05/14/20121. Call to Order 2. Approval of Minutes PENSION TRUSTEES AGENDA Location: Council Chambers - City Hall Date: 5/14/2012- 1:00 PM 2.1 Approve the minutes of the April 16, 2012 Pension Trustees meeting as submitted in written summation by the City Clerk. � Attachments 3. Pension Trustee Items 3.1 Approve the request of employee Richard DeBord, Planning and Development Department; Deborah Ford, Human Resources Department; Anna Fierstein, Human Resources Department; Gary Coffey, Public Utilities Department; Robert Baxter, Public Utilities Department; and Diane Manni, City Council Department, for a regular pension as provided by Sections 2397 and 2.398 of the Employees' Pension Plan. � Attachments 3.2 Approve the request of employee Kristin Hoekstra, Fire Department, and Janet Harrison, Parks and Recreation Department, to vest their pensions as provided by Section 2.397 of the Employees' Pension Plan. �- Attachments 3.3 Accept the Actuary's Report for the Employees' Pension Plan for the plan year beginning January l, 2012. � Attachments 3.4 Determine Trustees' total expected rate of return for the pension plan's investments for the current year, for each of the next several years, and for the long term thereafter. � Attachments 3.5 Approve the recommended pension plan administrative expenditures for fiscal year 2013, totaling $332,000. L� Attachments 4. Other Business 5. Adjourn Pension Trustees Agenda Council Chambers - City Hall Meeting Date:S/14/2012 SUBJECT / RECOMMENDATION: Approve the minutes of the April 16, 2012 Pension Trustees meeting as submitted in written summation by the City Clerk. SUMMARY: Review Approval: Cover Memo ��11�:�) Attachment number 1 \nPage 1 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING MINUTES CITY OF CLEARWATER ��� � � � Present: Chair/Trustee George N. Cretekos, Trustee Paul Gibson, Doreen Hock-DiPolito, Trustee Bill Jonson, and Trustee � Polglaze. Also Present: William B. Horne II - City Manager, Jill S. Silver Manager, Rod Irwin - Assistant City Manager, F Attorney, Rosemarie Call - City Clerk, and Nico Records and Legislative Services Coordinator. To provide continuity for research, items are necessarily discussed in that order. Unapproved 1. Call to Order — C The meetinp was called 1:09 p.m. at 2. Approual of M:inutes �.1 '' ' Approve th� r�ir��tes of th� �l�r�h � submitted in virri�t�r� summa�i�r� by Trustee Bill Jonson mo�ed'ta approve th Trustees meeting as submitted in written duly seconded and carried unanimously. 12, 2012 P�ns the Citv Clerk. ,Kin - � - Offic r altho meetina as inutes of the March 12, 2012 Pension nmation by the City Clerk. The motion was 3. Pension Trustee Items 3.1 �rove the n�uv hir�s for acceptance into the Pension Plan as listed. Pension Narne, Job. Class. & Dept./Div Hire Date Eliq. Date Jennifer Haynes, Accounting, Technician/Engineering 1/30/12 1/30/12 James McQuoid, Field Service Rep./Cust. Ser. 1/30/12 1/30/12 Connie Meade, Police Communications Operator/Police 1/17/12 1/17/12 Pension Trustees 2012-04-16 1 Item # 1 Attachment number 1 \nPage 2 Patricia Deeran, Customer Service Rep./Customer Service 1/17/12 1/17/12 Kyle Vaughan, Survey Assistant/Engineering 9/3/11 1/16/12* *originally hired as part-time on 9/3/11; promoted to full-time and pension eligible as of 1 /16/12 Trustee Doreen Hock-DiPolito moved to approve the new hires Pension Plan as listed. The motion was duly seconded and ca 3.2 C I,� rtment: Richard Albee. Plannina and Michael Kaelin, Tradesworker, Marine by the City on June 5, 1986, and his p� November 17, 1987. His pension will b average salary of approximately $47,0' formula for computing regular pension: and Survivor Annuity, this pension will" Land F is emp Based on an a� years, the form the 100% Joint annually. sa�an comp ervice �r year dMr.K � lin's s 31,41 accep�ance into the ���� unanimQUSly. � A�i�ti�r� �rtrn�r�t; James ��r�t, for a reqular' �Ic����� Pension ent, was ernployed effective on' )12. Based on an �st five years, the :ctian of the Joint � Specialist, Planning and Deuelopment the City on March 22, 19$2, and his pension �t date. His pensi4n will be effective April 1, 2012. approximately $55,394 per year over the past five g; regular pensions, and Mr. Albee's selection of �nuity, this pension will approximate $44,792 James Rores, Library Assistant, Library Department, was employed by the City on February 25, 1986, and his pension service credit is effective on that date. His pension will be effecti�e' March 1, 2012. Based on an average salary of approximately $33,34�3'per year over the past five years, the formula for cc�mputing regular pensions, and Mr. Rores' selection of the 10-year Certain and Lif� Annuity, this pension will approximate $23,181 annually. Jarnes Jerkins, Engineering Technician, Gas Department, was employed by the City on March 9, 1987, and his pension service credit is effective on that date. His pension will be effective April 1, 2012. Based on an average salary of approximately $44,693 per year over the past five years, the formula for Pension Trustees 2012-04-16 2 Item # 1 Attachment number 1 \nPage 3 computing regular pensions, and Mr. Jerkins' selection of the 100% Joint and Survivor Annuity, this pension will approximate $29,804 annually. Section 2.397 provides for normal retirement eligibility when a participant has completed thirty years of credited service, has reached age 55 and completed twenty years of credited service, or has reached age 65 and completed ten years of credited service. Mr. Kaelin, Mr. Rores, and Mr. Jerkins qualify under the age 55 and twenty years of service criteria. Mr. Albee qualifies un�ler the 30 years of service criteria. Trustee Jay E. Polglaze moved to approve the request of employee Michael Kaelin, Marine and Aviation Department; Richard Albee, Planning and Qevelopment Department; James Rores, Library Department; and James Jerkins, Gas Departmer for a regular pension as provided by Sections 2.397 and 2.398 of the Employees Pension Plan. The motion was duly seconded and carried unanimously. , 3.3 Approve the request of employee Dennis �ii�r�, ��lid �U�ste/Gener�l ��rvices Pension Plan. Dennis Allen, Licensed EI was employed by the City Pension Plan on that date employee of th� after completin� such employee pension payme which the empl� sic of � ian, Solid Waste/General Seruices Department, larch 14, 1988, and began partacipating in the Allen terminated from City ernployment on October provides that s�c�uld an employee cease to be an ater or change status from full-time to part-time �ars of creditable service (pension participation), uire a v�sted interest in the retirement benefits. Vested ience on the first of the month following the month in nally would have been eligible for retirement. Section 2.397 provides for normal retirement eligibility when a participant has reached age 55 and ct�mpleted twenty years of credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Mr, Allen would have completed at least 20 years of service and October 21, 2012. His pension will be effective November 1, Trustee Paul Gibson moved to approve the request of employee Dennis Allen, Solid Waste/General Services Department, to vest his pension as provided by Section 2.397 of the Employees Pension Plan the motion was duly seconded and carried unanimously. Pension Trustees 2012-04-16 3 Item # 1 Attachment number 1 \nPage 4 3.4 Annual review of the Emplovees' Pension Plan investment perFormance for the vear endinq December 31, 2011. This is the annual presentation on the investment perFormance of the Employees' Pension Plan for calendar and plan year ending December 31, 2011. For the last calendar year, the plan had a return of -0.36% versus a custom benchmark of 1.81 %. This is a deficit return of -2.17% under the benchmark and a deficit return of -1.40% under the median public pension plan, placing the plan in the 79th ' percentile of public pension plans per the Wilshire Public P1an Sponsor Universe. For the last three calendar years, the plan has a return o1 benchmark of 13.49%. This is an excess return of 1.71 °/o placed the plan in the top 3rd percentile of pension plan_.� plans for this three-year period. �enchm ceforp The only change in money managers was the recent termination Qfi,Wellington Management, an international equity manager. AI1' of the current mana�ers in the plan are performing as expected given their stated in�estment strategies and investment styles, despite recent performance below b�;nchrnarks. The current asset allocatior sent some funding to one o continue to fund them ouer in��stments with this type o c�r�sideri[�g the addition Qf��� the`plan in dQw� markets. I- during recent down market: cap value manag�;r that will currently underway. ; �tud�r implementatiQn; is almost c+�mpleted. The plan :he two new timber managers in the last year and will ie next couple of years, as is typical for long term manager. The Fension Investrnent Committee was hedge fund manager for the purpose of protecting ►wever, hedge funds have not performed as expected causing the committee to instead search for a large �dd clownside protection to the plan. That search is h and Investment Manager Steve Maskun provided a PowerPoint presentation. In response to questions, Mr. Moskun said staff customizes the benchmark to the asset allc�cations, which staff reuiews twice a month. If there is a major misalignment, staff will recomrnend to change th� asset allocation. Mr. Moskun said the portfolio is rebalanced twice a year due to cQSt and time involved. Typically, staff tries to coincide the investrnent perforrnance report with the actuary report. CapTrust Consultants represenfiative John Griffin said the 7.5% actuarial assumption is a long-term outlook on the return on assets. There is movement in the public sector to lower return assumptions but 7.5% is still within range. Pension Trustees 2012-04-16 4 Item # 1 Attachment number 1 \nPage 5 4. Other Business — None. 5. Adjourn The meeting was adjourned at 1:39 p.m. Chair Employees' Pens Pension Trustees 2012-04-16 5 I[�'ii�:�il Pension Trustees Agenda Council Chambers - City Hall SUBJECT / RECOMMENDATION: Meeting Date:S/14/2012 Approve the request of employee Richard DeBord, Planning and Development Department; Deborah Ford, Human Resources Department; Anna Fierstein, Human Resources Department; Gary Coffey, Public Utilities Department; Robert Baxter, Public Utilities Department; and Diane Manni, City Council Department, for a regular pension as provided by Sections 2.397 and 2398 of the Employees' Pension Plan. SUMMARY: Richard DeBord, Code Enforcement Inspector, Planning and Development Services Department, was employed by the City on September 28, 1987, and his pension service credit is effective on that date. His pension will be effective June 1, 2012. Based on an average salary of approximately $50,727 per year over the past five years, the formula for computing regular pensions, and Mr. DeBord's selection of the 100% Joint and Survivor Annuity, this pension will approximate $33,763 annually. Deborah L. Ford, Human Resources Analyst, Human Resources Department, was employed by the City on May 13, 1985, and her pension service credit is effective on that date. Her pension will be effective Junel 1, 2012. Based on an average salary of approximately $55,650 per year over the past five years, the formula for computing regular pensions, and Ms. Ford's selection of the 100% Joint and Survivor Annuity, this pension will approximate $40,898 annually. Anna Fierstein, Senior Human Resources Analyst, Human Resources Department, was employed by the City on November 29, 1982, and her pension service credit is effective on that date. Her pension will be effective June 1, 2012. Based on an average salary of approximately $60,148 per year over the past five years, the formula for computing regular pensions, and Ms. Fierstein's selection of the 100% Joint and Survivor Annuity, this pension will approximate $47,656 annually. Gary Coffey, Utilities Mechanic Supervisor II, Public Utilities Department, was employed by the City on June 9 1986, and his pension service credit is effective on that date. His pension will be effective July 1, 2012. Based on an average salary of approximately $64,079 per year over the past five years, the formula for computing regular pensions, and Mr. Coffey's selection of the 50% Joint and Survivor Annuity, this pension will approximate $47,502 annually. Robert Baxter, Utilities Mechanic, Public Utilities Department, was employed by the City on July 8, 1985, and his pension service credit is effective on that date. His pension will be effective June 1, 2012. Based on an average salary of approximately $47,099 per year over the past five years, the formula for computing regular pensions, and Mr. Baxter's selection of the Joint and Survivor Annuity, this pension will approximate $34,838 annually. Diane Manni, Executive Assistant, City Council Department, was employed by the City on October 13, 1997, and her pension service credit is effective on that date. Her pension will be effective June 1, 2012. Based on an average salary of approximately $42,068 per year over the past five years, the formula for computing regular pensions, and Ms. Manni's selection of the Joint and Survivor Annuity, this pension will approximate $16,929 annually. Section 2397 provides for normal retirement eligibility when a participant has completed thirty years of credited service, has reached age 55 and completed twenty years of credited service, or has reached age 65 and completed ten years of credited service. Mr. DeBord, Ms. Ford, Ms. Fierstein, Mr. Coffey, and Mr. Baxter qualify under the age 55 and twenty years of service criteria. Ms. Manni qualifies under the age 65 and 10 years of service criteria. Cover Memo ��11�:�� Review Approval: - Attachment number 1\nPage 1 0 �lTY �F CL.EAREit�.�4 Z�ER EMPL O VEES' SEP�[ R,4 T�OfI! PA Y PREFEREItlCES PREFERENCE #1 Employees can receive a lump sum payment for vacation, floating haliday pay, sick leave incentive, bonus days (if applicable), and 1/2 of accrued sick leave at the time of separatian fi-om the City. There will be no deduction for pension from this lump sum .payment nor wil! this amount count as earnings in the caicuiation af the pension, The last day of work wi!{ be the termsnat+on date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for ""— �---� vacation, oating o i ay pay, sic eave incen ive, onus -�ays–Ci apptica e,-- � and 1/2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date wiil be the final day of extended time. Pension benefits will begin the following month. i, �� j,, ,,j� ��' `u✓�� �- �a r�'" •, an empioyee of the Ciiy oi Ciearwaier, i��r�by appiy ior pension benefits under the City's Employees' Pension Plan. I hereby certify that ! fully understand the preferences offered to me. I choose to retire using separation pay preference # � and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacation sick Lump Sum l� o�� vacation sick floaters bonus hours floaters f 1� bonus hours l understand that my preference cannot be changed once this f rf� is signed d that my deci � + irrevocable. EMPLOYEE'S SIGNAT. RE: C � SOCiAL SECURITY #: WITNESSES: ADDRESS: — ����� ��� - PHONE: Revised 1i02 Form if9900-0008 � I�ATE: ��-Z— �°Z. File Name: Employee Separation Pay Prer Item # 2 Job Classifica�on Department: ic Benefits Date: Qate of Birth: � Spouse's Name: Spouse's Date of Birth: CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM � � Attachment number 1\nPage 2 0 do hereby apply for retirement under the City --1 C.i'd ✓�. Sex N� F m��7— Divisi n: Date of Hire: �-� Resignation Date: 3 t / �C��� Sex: M� The type of pension for which I am applying is (check only one): � Regular Pension based on years of service Job-connected Disability Pension Non-job-connected Disability Pension The City of Clearwater Empioyees' Pension Plan provides multiple options to Plan Participants as ta the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 -#6) shall be computed to be the Actuariai Equivalent of the normal benefit. Option 1- Joint and Survivor Annuitv The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuify paid monthly for a period of five years folfowing the death of the Participant to the beneficiary, provided that following such frve year period the survivor annuity shall be reduced to 50% of the origina! survivor annuity amount. [See section 2.397 (a) (3) (A)] The ParticipanYs surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)J Option Z - Life Annuitv 7he Participant receives his/her pension as long as he/she lives. tJpon the death of the Participant, benefrts cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain 8� Life Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the tvtal of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participanYs estate v✓ill be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4- 50% Joint & Survivor Annuitv -(must designate a beneficiary} The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her fife. If the beneficiary dies first, the Participant continues to receive 1 Q0% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)j Option 5- 75% Joint & Survivor AnnuitY -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Item # 2 _ l�ttachment number 1\nPage 3 0 Option 6-100% Joint � Survivor Annuitv -(rnust designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 100°/o of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 1Q0% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b} (2} (a} (3}J I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement beneflts as indicated below. (Note: Option selection to be indicated both by ___------ — _-- - ___-- -_ _ ____.. _ _----- ____ _ __. _ _______ __-- __ Num er and Description.) - -- - - - I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign befow: Option #: 1 Description: _ Joint and Survivor Annuitv Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth if iakin� Cption 2 Option #: 2 Employee's Signature: bzlow: Description: Life Annuity If taking Option 3, 4, 5, or 6 fill in beneficiary information Option #: % Description: /' G�''d �7 Date: below: 'r►�- �' tJ�vs"✓0� l'lhvr` My desia ted benefic ry i� Name: �i � h� t_�� 1�d r� Date of Birth: f S Sex M F� Social Security Number: _ _ Phone Number: Address: Employee's Sign e: t� STATE OF �LORIDA COUNTY OF PINELLAS I �d��fs2. The foreg ing instrument was cknowledge b fore e this � o� � dL by J� �'c�.��� t�'c� �e �c�.✓a� who is personally known to me or who has provided as idep#�ficati�n and who /�'`�"�'"��-�,'�-n--� � ' !I�/`C.�=.i' Notary Public ( ignature) .� C v>d ✓o�-� �,� /'z� Y—� Name of Notary Printed My Commission expires: h OT'ARY �LiC-STAi� aF FLORIDA Deborah I,. Ford : Commission # DD�6342b Rev. 4/08 '-. ,.-' Expires: MAY 15, 2012 Form #9900-0009 BONDEDT$RUATLANITCBOh'DINGCO.,II��e IVame: Pension Entitlement Opfion Form Item # 2 Richard DeBord LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Estimated Pension Worksheet 5/31 /2012 9/28/1987 24.6750 Prepared by: Deborah Ford Date: 3/23/12 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $54,625.4$ 2008 $49,229.21 2009 $50,598.73 2010 $49,666.23 2011 $49,515.37 $253,635.02 (5 Year Total) 5/ $50,727.00 (Yearly Avg) 12/ $4,227.25 (Month�y Avg) x 0.0275 (Benefit Rate) x 24.6750 (Yrs of Service) $2,868.45 (Est Mtly Pension) Item # 2 City of Clearwater Employees' Pension Pian Actuariaf Equivalence Factors ESTlMATE 23-Mar-12 sm clract01 Version: Employee Name: Rick DeBord 1-4-96 Employee Date of Birth: 1 3 1956 Marital Status: m Spouse Date of Birth: 6 22 1956 Beneficiary Date of Birth: 6 22 1956 Benefit Commencement Date : 6 1 2012 Estimated Monthly Normal Retirement Benefit: $2,868.45 Actuarial Equivalent Adjustment Factors: Option 1 J&S Annuity 1.00000 Option 2 Life Annuity 1.08452 Option 3 10 Year Certain 1.06719 Option 4 50% J&S 1.03011 Option 5 75% J&S 1.00489 Option 6 100% J&S 0.98089 ESTIMATE Estimated Monthly Benefit $2,868.45 $3,110.90 $3,061.19 $2,954.81 $2,882.49 $2,813.63 Item # 2 �/�l� �F �L.�ARWA TER ENTPL D VEES' SEIP,4R.4 TfOfV PA Y PREFERElUCES Attachment number 1\nPage 6 0 PREFERENCE #� Empfoyees can receive a lump sum payrnent for vacation, fioating holiday pay, sicEc leave incentive, bonus days (if appficable), and 1/2 of accrued sick leave at the time of separation frorrl the City_ There wil! be no deduction for pension from this lump sum .payrr�ent nor will this amo�nt count as earnings in the calculation of the pension. The last day of work wi!! be the termination date and pension benefits will begin the fotlowing month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for -- --- —�--- vacation, oat�ng o i ay pay, s�c eave incen ive, onus ays i app ica e,`��- and 1/2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the fol4ow+ng month. . �: i, -��'--��''�� <- --�� Yc�" , an empioyee of the City oi �iearwaier, i��reby a�piy i�r pension benefits under the City's Employees' Pension Plan. ! hereby certify that I fully understand the preferences offered to me. ! choose to retire using separati�n pay preference # � and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacation sick floaters bonus hours Lump Sum � � p-�-��- vacation �S �' � � sick floaters � � � � -� bonus hours I understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. EMPLOYEE'S SIGNATURE: � " ��� 1•.��, �►.1� .� Revised 1i02 Form #9900-0008 SOCiAL SECURITY #: ADDRESS: ��� � �v l� ��1 LC� hc�t ,�U �, V/ ��e� v�a.��� , i�� 3 3 ry7,r'�" PHONE: %"t7��i�/� `�� 7� DATE: o�/o�Gl�oZ File Name: Employee Separation Pay Pret ��11�:�� CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM do hereby apply for retirement under the City s�fS.lear�ncater_�a�Fmplo�cees'_P�nsion__Pian, ___ _ _ _ Job Classificatio : 1'►'�G /C � C1 v�'� �_i S T" Sex: M� Department: '�� o � rc. t S Division: Benefits Date: � Date of Hire: �' / 3 � Date of Birth: �. 5 7 Resignation Date: S� 1 Spouse's Name: 0 �t.�c^ - �6 � Spouse's Date of Birth: The type of pension for which I am applying is (check only one): �- Regular Pension based on years of service Job-connected Disability Pension Non job-connected Disabiliry Pension Sex: Q F The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 -#6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1- Joint and Survivor Annuiiv The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The Participant's surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuitv The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Optian 3-10 Year Certain 8 Life Annuit� -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] O�tion 4- 50% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5- 75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (���m # 2 Option 6-100% Joint 8 Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as helshe lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)J I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1} and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by -- -- - ----- ---- -- -- - _ --- -- ----- . _ ____ _ _ -- _ _ --- ._ __--- _ _ — - - - __ _-- - _ _ Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. If takinq Option 1 sign below: Option #: 1 Description: Joint and Survivor Annuitv __ Employee's Signature: Date: Dependent children under the age of 18 and residing in my househo�d are: Child's Name Sex Date of Birth ii takinct Option 2 sign belovr: Option #: 2 Description: Life Annuity Employee's Signature: If takin O tion 3, 4, 5, or 6 fill in beneficia information and si n below: Option #: (�, Description: !}�-�U �J d,' �' * Date: v�vJ' My desi ated enefi ary Name: �r►u-�tA �- �✓'� Date of Birth: a-7 y Sex�N' F Social Security Number: _ Phone Number: Address: 1�� `� ��� 1��.� � U� �/.� G Employee's Signature: STATE OF FLORIDA COUNTY OF PINELLAS Rev. 4/O8 Form #9900-0009 i� _ ��, 3 .I" �a� 4 Y I-� a 7.:� Date: .3 � a b t � The fo egoi g instrument was acknowledged before me this �. d� �� by ��b0�'�a.�i L-�✓� who is personally known o me or who has provided � Notary Public Votary Printed My Commission expires: ►���!����� �p��N � � T NQi�ARY RUBI.IC 5 BTAT� QF FLORIDA . Comm# E�1489A9 � e t Expires 1/25/2016 File Name: Pension Entitlement Option Form Item # 2 Deborah Ford LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Signature: Date: Estimated Pension Worksheet 5/31 /2012 5/13/1985 27.0500 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $54,433.34 2008 $55,518.25 2009 $56,891.35 2010 $55,503.76 2011 $55,903.76 $278,250.46 (5 Year Totai) 5/ $55,650.09 (Yearly Avg) 12/ $4,637.51 (Monthly Avg) x 0.0275 (Benefit Rate) x 27.0500 (Yrs of Service) $3,449.73 (Est Mtly Pension) Item # 2 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE 20-Mar-12 sm clract01 Version: Employee Name: Deborah Ford 1-4-96 Employee Date of Birth: 5 28 1957 Marital Status: m Spouse Date of Birth: 5 27 1949 Beneficiary Date of Birth: 5 27 1949 Benefit Commencement Date : 6 1 2012 Estimated Monthly Normal Retirement Benefit: $3,449.73 Actuarial Equivalent Adjustment Factors: Option 1 J&S Annuity 1.00000 Option 2 Life Annuity 1.05129 Option 3 10 Year Certain 1.03613 Option 4 50% J&S 1.01864 Option 5 75% J&S 1.00306 Option 6 100% J&S 0.98795 ESTIMATE Estimated Monthly Benefit $3,449.73 $3,626.66 $3,574.37 $3,514.02 $3,460.28 $3,408.16 Item # 2 �1�Y �F �L�ARE/fflt ��R Elt/IPL O VEES' SEPAR.4 T!f •1/V PA Y PREFERENCES __ Attachment number 1 \nPage 11 PREFERENGE #� Ernpfayees can receive a lump sum paymerrt for vacation, floating holiday pay, sick leave ir�centive, bonus days (if applicable), and 1/2 of accrued sick leave at the time of separation from the City. There will be no deduction for pension from this lump sum .payment nor will this amount count as earnings in the calculation of the pension. The iast day of work wil► be the termination date and pension benefits wil► begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for _ - -- . .. - vacation, oating o i ay pay, sic eave incen ive, onus ays � apptica e,-- �� and 1/2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's final paycheck. Termination date will be the final day of extended time. Pension benefits will begin the following month. ,�crt✓? c� —�I'2vs�e�`�. - __._- .. �, , an empioyee of t�e Ciiy oi Clear-waier, i�ereby app;y i�r pension benefits under the City's Employees' Pension Plan. I hereby certify that 1 fully understand the preferences offered to me. I choose to retire using separation pay preference # j� and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacation sick Lump Sum �°Z`�'' S vacation ��a"�� sick floaters bonus hours floaters (.!�- S. bonus hours I understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. EMPLOYEE'S SIGNATURE: � ��/h/)l_A SOCIAL SECURI7Y #: — W17NESSES: ADDRESS: ��..�.��,�-� �°- �� PHONE Revfs2d 1i02 Form �79900-QOQ8 r.. - , � . `:T E : �' � c�-0 � I �. File Name: Empioyee Separation Pay Pref �11�:�� CITY O� CLEARWATER PENSION ENTlTLEMENT OPTION REQUEST FORM Job Classification: o? ev� � v Department: r,-�,� �5� o � Benefits Date: � oZ Date of Birth: � b S o Spouse's Name: ��' �er�' Spouse's Date of Birth: S � do hereby apply for retirement under the City ___.�, w.. -- _ _ _ - --- ---- _ .._ _ _- - _ . _. }�nctvl ��tSo-ure e� ,�y�'1clyS� Sex M F� .-� e _ Division: _ Date of Hire: i � _ Resignation Date: S 3i I�. '�erS�c �' The type of pension for which I am applying is (check only one): /�— Regular Pension based on years of service Job-connected Disability Pension Non job-connected Disability Pension Sex: f�N F The City of Clearwater Empfoyees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normai form of retirement benefit. The other optional forms (#2 -#6) shall be computed to be the Actuarial Equivafent of the normal benefit. Option 1- Joint and Survivor Annuity The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The Participant's surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuitv The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)J Option 3-10 Year Certain 8� Life Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to hislher beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the paficipant, he/she may designate a new beneficiary. 1f no beneficiary is afive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4- 50% Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 5d% of the pension for the rest of his/her {ife. Vf the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5- 75% Joint � Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives �5% of the pension for the rest of hislher life. If the beneficiary dies first, the Participant confinues to receive 100°/a of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) ( ��em # 2 - -- -- - -_— _ _Attac_h__ment number 1 \nPage 13 Option 6-100% Joint & Survivor Annuity -(must designate a beneficiary} The Participant receives his/her pension as fong as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension forthe rest of hislher life. If the beneficiary dies first, the Participant continues to receive 1 �0% of his/her pension and upon his/her death, benefrts cease. [Section 2.398 (b) (2) (a) (3}j I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1} and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated befow. (Note: Option selection to be indicated both by _----- - ------- _-- -__- — _--- -_._ .--- - _ -_- ------ ------ ----- _ ._._ _____._ _ _.. _ . _ _ umber and Description.) - - 1 understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Description: _Joint and Survivor Annuitv Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth if iaking Option 2 Option #: 2 Employee's Signature: belaw: Description: Life Annuity If takin O tion 3, 4, 5, or 6 fill in beneficia information and si n below: Option #: � Description: / Cl� v a � :� �- � Date: My desi at d beneficiary is: � Name: �o ��r'�" �4 �c rS� � ���Date ot 8irth: ? � S �j Sex F Social Security Number: ,�_ Phone Number: Address: , Employee's Signature: �- 0 J v: v�� �5�-n� r Date: � /�-G /loL STATE OF FLORIDA The for oing �nstrument was acknowtedged before me this COUNTY OF PlNELLAS ��Q �, by �»�J�.� T"7 e✓S7""�i v� who is personally known to me or who has provided as ideryti�ication and whQ did/�id rlqt tak�r an oath. Rev, 4/08 �orm #9900-0009 .... -�.� • _ ( ignature) � ro�.% •� - l�O�'c� Notary Public Name of Notary Printed My Commission expires: NOTARY P'UBLIC�TATE OF FIARIDA Deborah L. Ford 5HI <.o� �r�axos ou,NV�a,v n�a, aaaxog ,' Commission # DD7b342b ZtQZ `ST A6'I1t sazrdx� ;..•.",,., �'�..,, ,....-•` E�pires: MAY 15, 2012 9Z�£9LQQ # IIoiss�tucno� � R9N1)� �V ASLANTIC BONDING CO3 INa p,�p� •� �10QaQ File Name: Pension Entitlement Option Form b�QRI07� 30 �.L4'.LS-�TISlld X?.i�,LOItT Item # 2 Anna Fierstein LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Signature: Date: Estimated Pension Worksheet 5/31/2012 11/29/1982 29.5056 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $57,217.00 2008 $59,472.22 2009 $61,349.54 2010 $61,349.54 2011 $61,349.54 $300,737.84 (5 Year Total) 5/ $60,147.57 (Yearly Avg) 12/ $5,012.30 (Monthly Avg) x 0.0275 (Benefit Rate) x 29.5056 (Yrs of Service) $4,066.99 (Est Mtly Pension) Item # 2 City of Clearwater Employees' Pension Pian Actuarial Equivalence Factors ESTIMATE 20-Mar-12 sm clract01 Version: Employee Name: Anna Fierstein 1-4-96 Employee Date of Birth: 7 26 1950 Marital Status: m Spouse Date of Birth: 7 25 1949 Beneficiary Date of Birth: 7 25 1949 Benefit Commencement Date : 6 1 2012 Estimated Monthly Normal Retirement Benefit: $4,066.99 Actuarial Equivalent Adjustment Factors: Option 1 Normal Form 1.00004 Option 2 Life Annuity 1.10661 Option 3 10 Year Certain 1.07133 Option 4 50% J&S 1.03748 Option 5 75% J&S Option 6 100% J&S ESTIMATE 1.00606 0.97648 Estimated Monthly Benefit $4,066.99 $4,500.59 $4, 357.11 $4,219.43 $4,091.63 $3,971.34 [�'ii�:3�� ���� �F e���R�va r�R Elt�l`PL O VEES' SEPARA T1`�N PA Y PREFER`ENGES -Attachraent_numbec_1 \nPage 16 PREFERENCE #1 Employees can receive a fump sum payment for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable), and 1/2 ot accrued sick leave at the time of separation fram the City. There will be no deduction for pension from this lump sum .payment nor will this amount count as earnings in the calculation of the pension. The �ast day af work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for �-�-� ----- vacation, oa ing o� ay pay, sic eave incen ive, onus ays i app ica e,-- �-- " and 1/2 of accrued sick leave. Employee may choose to run out this time in any manner. Balance wiJl be paid in a lump sum on employee's final paycheck. Termination date wili be the final day of extended time. Pension benefits will begin the following month. i �� -�.r o'�- , an empioyee of the City oi Ciearwaier, hereby a�piy �or pension benefits under the City� Employees' Pension Plan. I hereby certify that i fully understand the preferences offered to me. I choose to retire usrng separation pay preference # � and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacation sick floaters bonus ho�rs Lump Sum � �' V vacation 7�U ' U sick �� floaters .�-�' � bonus hours t understand that my preference cannot be changed once this form is � and tha�t my irrevocable. ��==�`"`�� EMPLOYEE'S SIGNATURE: WiTNESSES: �.���?�� � a� Revised 1l02 Form #9900-0008 SOCIAL SECURITY #: ADDRESS: � S lf t%`C� 7v r� b^ .% � �'1 e c�r �'? , � �- � y.0 l�'�` PHONE: i�'l' �f'CJ- I`i�� DATE: � 02 v f I� File Name: Employee Separation Pay Pref ��11�:�� __ _._ Attachment number 1 \n_Page 17 CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM do hereby apply for retirement under the City �_C�neral.:Em�lo�e�'--P�ns�on_Pl�o.____ __ ______ _ ____ ._____ _____ ___ __._--- Job Classification: Department: Benefits Date: Date of Birth: Date of Hire: Resignation Date: Spouse's Name: � Q re S�.- �-� �� Sex: M F� Spouse's Date of Birth: 7�� S The type of pension for which I am applying is (check only one): `� Regular Pension based on years of service Job-connected Disability Pension Non job-connected Disability Pension The City of Clearwater Employees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 -#6) shall be computed to be the Actuariaf Equivalent of the normal benefit. Option 9- Joint and Survivor An�uitv The norma! form of retirement benefit shall be an annuiry paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The ParticipanYs surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. (f no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuity The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain & Life Annuity -(must designate a beneficiaryj The Participant receives his/her pension as long as he/she lives. !f the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participanYs estate will be paid the bafance of the 120 payments. [Section 2.398 (b) (2) (a) (2}] Option 4- 5Q% Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. lf the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5- 75% Joint & Survivor Annuihr -(must designate a beneficiaryj The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. !f the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (��m # 2 Option 6-100% Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various altemative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by --------- ___- ------ ---------- - __- -__ _ _ - - - -- __ Number and Description.) I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Description: Joint and Survivor Annuitv Employee's Signature: Date: Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth if taking Jption 2 sign b�iow: Option #: 2 Description: Life Annuity Employee's Signature: If takin O tion 3, 4, 5, or 6 fill in beneficia information and si n below: Option #: Description: SG o a r.�► �°f- Date: vr1if�✓ My designated beneficiary is: Name: �%►er�S �- �o ��ry Date of Birth: i 7 SS Sex M� Social Security Number: Phone Number: �� ��G �J— j��� Address: Employee's Signature: ��(� S i1c- �+� - � , ,.. 1 ' r1 �i � �f�- � � STATE OF FLORIDA The for oing � strument was a�nowleclged before me this COUNTY OF PINELLAS � U J� by �y--Gr �v�- D who is personally known to me or who has provided Rev. 4/08 Form #9900-0009 .NOTARY PUBLIGSTAr.F ^^ nT.; ,� ;;':', My Commission expir���-., „„„�, � ;,w�.., _ � ,=Commission#,D�ti�3;2r '�...�... Espires: MAY 1�, 2C� 2 aoxnsu x�u eTT.nm•re so.,vu+;� cc�., L.��, Notary Public Name of Notary Printed File Name: Pension Entitlement Option Form Item # 2 Gary Coffey LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Prepared by: Date: Estimated Pension Worksheet 6/29/2012 6/9/1986 26.0556 Deborah Ford 7/26/2011 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $63,050.38 2008 $63,255.73 2009 $65,780.16 2010 $62,935.46 2011 $65, 373.39 $320,395.12 (5 Year Total) 5/ $64,079.02 (Yearly Avg) 12/ $5,339.92 (Monthly Avg) x 0.0275 (Benefit Rate) x 26.0556 (Yrs of Service) $3,826.20 (Est Mtly Pension) Item # 2 City of Clearwater Employees' Pension Plan Actuarial Equivalence Factors ESTIMATE 20-Mar-12 sm clract01 Version: Employee Name: Gary Coffey 1-4-96 Employee Date of Birth: 4 14 1954 Marital Status: m Spouse Date of Birth: 7 7 1955 Beneficiary Date of Birth: 7 7 1955 Benefit Commencement Date : 7 1 2012 Estimated Monthly Normal Retirement Benefit: $3,826.20 Actuarial Equivalent Adjustment Factors: Option 1 Normal Form 1.00000 Option 2 Life Annuity 1.09786 Option 3 10 Year Certain 1.07607 Option 4 50% J&S 1.03458 Option 5 75% J&S 1.00560 Option 6 100% J&S 0.97820 ESTIMATE Estimated Monthly Benefit $3,826.20 $4,200.64 $4,117.26 $3,958.52 $3,847.64 $3,742.79 Item # 2 ���Y �F �L�.4>R!IEfA ��i4 Elt/fPL C? YEES' SEPARA TfOEi# PA }r PREFEREIilCES PREFERENCE #� Employees can receive a lump sum payrnent for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable?, and 1/2 of accrued sick leave at the time of separation from the City. There wil! be no deduction for pension from this lump sum .payment nor will this amount count as earnings in the calculation of the pension. The iast day of work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 Employee can extend termination date by part or all of the time due for -��— ----- vacation, oating o i ay pay, sic eave incen ive, onus ays i app ica e,-- --- and 112 of accrued sick leave_ Employee may choose to run out this time in any manner. Balance will be paid in a lump sum on employee's finaf paycheck. Termination date will be the final day of extended time. Pension benefits will begin the foliowing month. i �U'p�,Y`�-- �C�i���'"' , an empioyee of the Ciiy oi Ciearwaier, hereby a�piy �v� pension benefits under the City's Employees' Pension Plan. I hereby certify that I fully understand the preferences offered to me. I choose to retire using separation pay preference # r and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacation sick floaters bonus hours Lump Sum �a�� 7• vacation ��� � sick � floaters U�'� bonus hours l understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. EMPLOYEE'S SIGNATURE: � SOCIAL SECURITY #: WI ESSES: ADDRESS: ���� ��L'� ��" � � 1�e � ������� �., � 3 �.s-� PHONE: � '��i% ��7"ZyDATE_ � l 1°L, Reviszd 1i02 �orm #t9900-0008 File Name: Employee Separation Pay Pref ��11�:�� CITY OF CLEARWATER PENSION ENTITLEMENT OPTION REQUEST FORM !, Ko I��c,�F— �D a-i�>f��✓ do hereby apply for retirement under the City �f C:IParwatPr ,Pn .ral EmolO�Ct���'P�nsio.nPl�n._ _ _ _ _ ___. __ _ __ _ . Job Classification: ����'1��5 �' t�C,,V1 �t t�C Sex M�F Department � + c °�-+ + �� Division: Benefits Date: �7 � Date of Hire: °I �$'� Date of Birth: ' Resignation Date: S 3f / a. Spouse's Name: �/%�'- Spouse's Date of Birth: The type of pension for which I am applying is (check only one): � Regular Pension based on years of service Job-connected Disability Pension Non-job-connected Disability Pension Sex: M F The City of C{earwater Empfoyees' Pension Plan provides multiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 -#6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1- Joint and Survivor Annuitv The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A}j The ParticipanYs surviving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuitv The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain & Life Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4- 50% Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. tf the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)j Option 5- 75% Joint & Survivor Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100°/a of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (��m # 2 Option 6-100% Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives hislher pension as long as helshe lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Option selection to be indicated both by -- --- - p - � -- - -- -- -- ---- ----- - -._.._ _. _ . -- Number and Descri tion. I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 'i sign below: Option #: 1 Description: Joint and Survivor Annuity , Employee's Signature: ''�'`" �� Date: � 1� / o�: Dependent children under the age of 18 and residing in my household are: Child's Name Sex Date of Birth if iakir�g Opiion 2 si�r� �eiav�r: Option #: 2 Employee's Signature: Description: Life Annuity �t taKing vpt�on �, 4, 5, or ti nu in neneric�ary mtormanon ana Option #: Description: My designated beneficiary is: Name: Date of Birth: Social Security Number: Address: Employee's Signature: Date: gn below: Sex M F phone Number: Date: STATE OF FLORIDA The fore oing 'nstrument was acknowledged b fore me this GOUNTY OF P(NEL�AS ���c� � by �� �.e�" j�Q ��,� who is personally known to me or who has provided Rev. 4/08 Form #9900-0009 as identifacation and who id ra�t trak�an G Notary Public �o�yi �c�ui a� � e,, �jd�u,�j L,/`zJ /"�riC Name of Notary Printed My Commission expires: ARY PUBLIC-STATE OF FLQItIp,q : °� Deborah L. Fcr�I = �:CQmmission #DD763426 "'�,.,.„,.-`' E.Ypires: MAY 15, 2012 80NDED THRII r1TLA.YITC 90:\"DirtG CO File Nam�:�nsion Entitlement Option Form Item # 2 Robert Baxter LAST DATE PAID: BENEFITS DATE CREDITED SERVICE Estimated Pension Worksheet 5/31/2012 7/8/1985 26.8972 Prepared by: Deborah Ford Date: 3/14/12 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $46,035.82 2008 $46,626.36 2009 $47,764.93 2010 $47,359.77 2011 $47,708.56 $235,495.44 (5 Year Total) 5/ $47,099.09 (Yearly Avg) 12/ $3,924.92 (Monthly Avg) x 0.0275 (Benefit Rate) x 26.8972 (Yrs of Service) $2,903.16 (Est Mtly Pension) Item # 2 __ __ -- — - ac men num er n age �i�� a� �����wa rE,� E/t/If'L O 1�E�S' SE?ARA Tff?Fl� f'A Y f'REFERENCES PREFERE/UCE #� Employees can receive a(ump sum payment for vacation, floating holiday pay, sick leave incentive, bonus days (if applicable}, and 1/2 of accrued sick leave at the time of separation from the City. There wili be no deduction for pension from this lump sum .payment nor wili this amount count as earnings in the calculation of the pension. 7he last day af work will be the termination date and pension benefits will begin the following month. PREFERENCE #2 Empioyee can extend termination date by part or all of the time due for _.._._._.— _ . .. -- -- vacation, oating o i ay pay, sic eave incen ive, onus ays i app �ca e,-- �" and 1/2 of accrued sick leave_ Employee may choose to run out this time in any manner. Balance wiil be paid in a lump s�m on employee's final paycheck. Termination date will be the fina► day of extended time. Pension benefits will begin the fo(lowing month. __,_ _ �.. � � i, t Cs►'�e CtV1Y> � , an empioyee of tne Ciiy oi Ciearwaier, hereby app;y ;�r pension benefits under the City`s Employees' Pension Plan. ! hereby certify that 1 fully understand the preferences offered to me. I choose to retire using separation pay preference #� and wish my benefits to be calculated under this preference. Please use my leave in the following manner: Run Out vacat+on sick floaters Lump Sum �.�3• Q3 vacation o� �'7 � 3 sick floaters bonus hours bonus hours l understand that my preference cannot be changed once this form is signed and that my decision is irrevocable. � f _- + � 1 i � / 1 � Revised 1i02 Form r�9900-0008 EMPLOYEE'S SIGNATlJRE: �- " " —" � � � I SOCIAL SECURI7Y #: - � ADDRESS: ti a 3 �e(.�C�Y � 1`+CXG�� �- _ (� 1� S�,c� �` 1=L.. � y b 7 7. PHONE: �7�� � �� "U���-^ DATE: � 1 ��' ��- File Name: Employee Seoaration Pay Pref Item # 2 Job Classific� Department: . Benefits Date Date of Birth: Spouse's Name: Spouse's Date of Birth: CITY OF CLEARWATER PENSION ENTITLEMENT OPTfON REQUEST FORM �X Gu `M} � "�'J���1 Ci � ° zt6n r - G: do hereby apply for retirement under the City __ _ __.____ __.__. __ __--- �- s s �'5�,�-�-- Sex: M � Division: Date of Hire: f � � 3 �t � Resignation Date: 5 � 3 r � 3 The type of pension for which I am appiying is (check only one): _� Regular Pension based on years of service Job-connected Disability Pension Non job-connected Disability Pension Sex: M F The City of Clearwater Empioyees' Pension Plan provides muftiple options to Plan Participants as to the manner of the pension benefit payment. Option 1 below represents the standard or normal form of retirement benefit. The other optional forms (#2 -#6) shall be computed to be the Actuarial Equivalent of the normal benefit. Option 1- Joint and Survivor Annuity The normal form of retirement benefit shall be an annuity paid monthly for the life of the Participant, with a 100% survivor annuity paid monthly for a period of five years following the death of the Participant to the beneficiary, provided that following such five year period the survivor annuity shall be reduced to 50% of the original survivor annuity amount. [See section 2.397 (a) (3) (A)] The ParticipanYs sunriving spouse receives the designated amount for the rest of his/her life or until he/she remarries. If no surviving spouse, dependent children under the age of 18 shall be deemed to be the beneficiary and receive the designated amount until the age of 18. [Section 2.397 (a) (3) and Section 2.398 (b) (1)] Option 2 - Life Annuity The Participant receives his/her pension as long as he/she lives. Upon the death of the Participant, benefits cease. [Section 2.398 (b) (2) (a) (1)] Option 3-10 Year Certain & Life Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies before 120 monthly payments have been made, the remaining payments up to the 120 payments are made to his/her beneficiary. If payments to the beneficiary commence and he/she dies before the total of 120 payments has been made, the remainder of the payments is paid to the beneficiary's estate. If the first beneficiary predeceases the participant, he/she may designate a new beneficiary. If no beneficiary is alive at the time of the participant's death, the participant's estate will be paid the balance of the 120 payments. [Section 2.398 (b) (2) (a) (2)] Option 4- 50% Joint � Survivor Annuity -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 50% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3)] Option 5- 75% Joint & Survivor Annuitv -(must designate a beneficiary) The Participant receives his/her pension as long as he/she lives. If the Participant dies first, the beneficiary receives 75% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b) (2) (a) (3 I�em#2 Optian 6-100% Joint & Survivor AnnuitY -(must designate a benefciary) The Participant receives his/her pension as fong as he/she lives. If the Participant dies first, the beneficiary receives 100% of the pension for the rest of his/her life. If the beneficiary dies first, the Participant continues to receive 100% of his/her pension and upon his/her death, benefits cease. [Section 2.398 (b} (2} (a) (3)] I have considered the normal form of benefit payment under such Plan (which is designated on this Form as Option 1) and the various alternative optional benefit payment methods (Options 2 through 6) under such Plan and have elected to receive my retirement benefits as indicated below. (Note: Optian selection to be indicated both by ----_ . .._ __ ______ ___ _ - -- _ — _ __ _ Number and Description.) _ _ _ _ __ _ I understand that once my first pension check is received, my decision on this option is irrevocable. If taking Option 1 sign below: Option #: 1 Descript Employee's Signature:il �- ��--rc—� Dependent children under the age of 18 and residing in my household are: Child's Name Sex �f taking C�t6on 2 siyi be1Gw: Option #: 2 Employee's Signature: Description: Life Annu It taKing Upt�on �, 4, 5, or ti tii� m nenericiary inrormation ana Option #: Description: My designated beneficiary is: Name: Date of Birth: Social Security Number: Address: Employee's Signature: � Date: � I � � I � � Date of Birth Date: gn below: Sex M F Phone Number: Date: STATE OF FLORIDA The foregoing instrument was a nowledged be o e me this COUNTY OF PINELLAS ` ��C `-/ �<�k- by ��4 h� C(. Yl !7 i who is personally known to me or who has provided Rev. 4/08 Form #9900-0009 as who didLdid not�ak� a �C � -�'�'l�`�C. Notary Public �ignature) � ��,b cI �Gt-� �— �fcQ Name of Notary Printed NOTARY PUBJ,IGSTATE OF FLOItIDA My Commission expires: •'"""' ;—Deborah L. Ford - =Commzssion#DD763425 ''•• ., ...•-'` Expires; MA.Y 15, 2012 BONDID T$RU ATLAYTIC BO\D;.*rc co., r�c File Name: Pension Entitlement Option Form Item # 2 Diane Manni LAST DATE PAID: BENEFITS DATE CREQITED SERVICE Estimated Pension Worksheet 5/31 /2012 10/13/1997 14.6333 Prepared by: Deborah Ford Date: 3/14/12 GROSS CALENDAR PENSION YEAR EARNINGS 2007 $40,222.49 2008 $41, 733.64 2009 $42,662.10 2010 $42,662.10 2011 $43,062.10 $210,342.43 (5 Year Total) 5/ $42,068.49 (Yearly Avg) 12/ $3,505.71 (Monthly Avg) x 0.0275 (Benefit Rate) x 14.6333 (Yrs of Service) $1,410.76 (Est Mtly Pension) Item # 2 Pension Trustees Agenda Council Chambers - City Hall Meeting Date:S/14/2012 SUBJECT / RECOMMENDATION: Approve the request of employee Kristin Hoekstra, Fire Department, and Janet Harrison, Parks and Recreation Department, to vest their pensions as provided by Section 2397 of the Employees' Pension Plan. SUMMARY: Kristin Hoekstra, Firefighter, Fire Department, was employed by the City on May 7, 2001, and began participating in the Pension Plan on that date. Ms. Hoekstra terminated from City employment on March 23, 2012 Janet Harrison, Recreation Specialist, Parks and Recreation Department, was employed by the City on March 3, 1986, and began participating in the Pension Plan on that date. Ms. Harrison terminated from City employment on March 14, 2012 The Employees' Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status from full-time to part-time after completing ten ar more years of creditable service (pension participation), such employee shall acquire a vested interest in the retirement bene�ts. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Section 2397) provides for narmal retirement eligibility when a participant has reached age 55 and completed twenty years of credited service, has completed 30 years of credited service, or has reached age 65 and completed ten years of credited service. Section 2397 also provides for normal retirement eligibility when a participant has completed twenty years of credited service in a type of employment described as"hazardous dury" and further speci�cally de�nes service as a Fire�ghter as meeting the hazardous dury criteria. Ms. Hoekstra would have completed at least 20 years of service on May 7, 2021. Her pension will be effective June 1, 202 L Ms. Harrison would have completed at least 20 years of service and reached age 55 on December 11, 2014. Her pension will be effective January 1, 2015. Review Approval: Cover Memo ��11�:�� Attachment number 1\nPage 1 0 APPLICATION FOR VESTED RIGHTS PENSION 1\ Y 4 S a'9 ►'i �t��-�S� being a person leaving employment with the City of Clearwater, Florida, and having completed ten (10) or more years of credited service, such service having occurred during the period from (date of entry into Pension Plan) m �- o o to (date of resignation or change of status) _�av�c% a. ��� d �� here makes application to receive the vested rights pension provided for by the City Code of Ordinances. As such former employee, I understand the pension requested will be computed pursuant to the provisions of the City Code of Ordinance in effect on the date of resignation. I hereby further certify that my date of birth is �� � lH 3�, 1��� -� The date I will begin to receive my pension will be �u s.� e i; a��2 j. Further, I additionally certify that I have made no application seeking to obtain a return of the contributions that I paid into the Pension Fund during the period of my employment set forth above, f have not been convicted of a felony during my period of employment, and ( have not rec iJed any othe type of pension from the City. Sign ture Sociai Security Number H r�. Department/Division 1 v� —3'lr ' , / 1 T'E'1/�• b Classification Street Address . _ , _.. L,_ , City, State, Zip Code STATE OF FLORIDA The foregoing instrument was acknowledged before COUNTY OF PINELLAS me this o��c:� day of I� Gc�C:� , 20 (�. by � S ��n �. �S�v'ct, who is personally known to me or who has provided as identification and who did/did not take an oath. �� Notary Public �C�G?�� �- � �'� Name of Notary Printed My commission expires: Rev. 4/09 NOT RY PU�T.i ._. �A . OF •QR:D ". """ Deborah L. Fori� _ �,: Commission # Db763426 '',..,,...,� Expires: MAY 15, 20�2 BONDID THRU ATI.ANTIC SQ�"DLtG CQ, I�G. Item # 3 Vested Pension Form -� i � u,�, APPLICATION FOR VESTED RIGHTS PENSlON �' `i , �.�G� eT ��� S d�'1 , being a person leaving empioyment with the City of Clearwater, Florida, and having completed ten (10) or more years of credited service, such s rvice having occurred during the period fram (date of� ntry into Pension Plan) a✓'� � 19d�6 to (date of resignation or change of status) I' 1 � V'�� 1`i, oi 0 �� hereby makes application to receive the vested rights pension provided for by the City Code of Ordinances. As such former employee, I understand the pension requested will be computed pursuant to the provisions of the City Code of Ordinance in effect on the date of resignation. I hereby further certify that my date of birth is �eC. �' �/' e�'" f�/ 9 s q � The date I will begin to receive my pension will be Oi� � UQ v' y % 1 r�0��' Further, I additionally certify that I have made no application seeking to obtain a return of the contributions that I paid into the Pension Fund during the period of my employment set forth above, I have not been convicted of a felony during my period of employment, and I have not received any other type of pension from the City. Signature J�'a vf�s �- �ecr�all�'o� DepartmenUDivision ec.re�� �, � ,�S� Job Classific tion Social Security Number � �3 � � S� � �, � c��- � � Stre t Address Q�� o� a, ��. � y�O � d City, State, Zip Code STATE OF FLORIDA The foregoing instrument was acknowledged before COUNTY OF PINELLAS me this (o day o �a r�� , 20 �� by �Gt nc�� i''✓�S a � who is personally know to me or who has provided as identification and who did/did not take an oath. � Notary Public �b0 �''c�1 �-� r��tame of Notary Printed My commis�c�vY��AT - 'Commission#DD763426 '' ,•` Expireg: �jY 15, 2012 ;��i�� �r�u n�a,�c sor�rna co,, rnc, Rev. 4/09 Item # 3 Vested Pension Form Pension Trustees Agenda Council Chambers - City Hall Meeting Date:S/14/2012 SUBJECT / RECOMMENDATION: Accept the Actuary's Report for the Employees' Pension Plan for the plan year beginning January 1, 2012. SUMMARY: Per the actuary report dated January l, 2012, a minimum City employer contribution of $209 million, or 27.97% of covered payroll, is required for fiscal year 2013. This is an increase of $2.0 million over the fiscal 2012 required contribution of $189 million, or 24.69% of covered payroll. The increase in the required contribution is primarily due to investment returns for calendar 2011 of negative 032% versus the plan's assumed rate of 7.5%. The underperformance in calendar 2011 reduced the actuarial return (based on actuarial value of assets smoothed over 5 years) to 4.46%, versus 5.98% for the previous year. The increase in the required contribution due to underperformance of investments was partially offset by salary increases of 2.56% versus the assumed rate of 6.00% for calendar 201 l. The plan's credit balance, which reflects actual contributions in excess of actuarially required contributions for prior years, decreased from $7.1 million to $6.6 million during calendar 2011. This $0.5 million decrease was the result of applying the actuarially required employer contribution rate (24.69% of payroll) to a declining payroll due to budget cuts. The Plan's funded ratio is 97.4% versus 97.2% for the prior year. For comparability to other plans, the actuary notes in the report that the current funded ratio is 94.5% based on the more commonly used Entry Age funding method. The Actuarial Value of Assets exceeds the Market Value of Assets by $7.4 million as of January l, 2012. If Market Value had been the valuation basis, the required contribution rate would have been 29.28%. In the absence of other gains, losses, or pension plan changes, the City's required contribution should approximate the 29% level over the next several years. The actuary is recommending one change in an actuarial assumption. The change is to revise the mortality assumption to include a margin for future mortality improvements, consistent with a recent revision to an Actuarial Standard of Practice. Type: Current Year Budget?: Budget Adjustment Comments: Current Year Cost: Not to Exceed: Other None Budget Adjustment: Annual Operating Cost: Total Cost: None Cover Memo For Fiscal Year: to Item # 4 Review Approval: 1) Off'ice of Management and Budget 2) Lega13) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Attachment number 1 \nPage 1 , . ff �.. �:� ` i ' # :R . i, CITY OF CLEARWATER EMPLOYEES' PENSION PLAN ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2012 ANNUAL EMPLOYER CONTRIBUTION FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2013 I[�'ii�:�! Attachment number 1 \nPage 2 � «r�-� GRS ���c`�et lt�aeder� � ith c� C;o ���ay C7ne �ast Broward Blvd. Catzsultart7ts 8� Actuarres Suite 505 Pt. T.auderdale, P1, 33301-1804 Apri126, 2012 Board of Trustees City of Clearwater Employees' Pension Plan Clearwater, Florida Dear Board Members: number 954.527.1616 phone 954.525.0083fax www. g abri elraeder. com The results of the January l, 2012 Annual Actuarial Valuation of the City oi Clearwater Employees' Pension Plan are presented in this report. This report was prepared at the request of the Board and is intended for use by the Retirement System and thase designated or approved by the Board. This report may be provided to parties other than the System only in its entirety and only with the permission of the Board. The purpose of the valuation is to measure the System's funding progress, to deternune the employer contribution rate for the fiscal year ending September 30, 2013, and to determine the actuarial information for Governmental Accounting Standards Board (GASB) Statement No. 25 and No. 27. This report should not be relied on for any purpose other than the purpose described above. The iindings in this report are based on data or other information through December 31, 2011. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; ehanges in economic or demographie assumptions; inereases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. The valuation was based upon information furnished by the City eoncerning Retirement Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We checked for internal and year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the City. This report was prepared using certain assumptions prescribed by the Board as described in Section B. The undersigned actuary is a member of the American Academy of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions eontained herein. The signing actuaries are independent of the plan sponsor. This report has been prepared by actuaries who have substantial experience valuing public emplayee retirement systems. To the best of our la�owledge the information contained in this report is aceurate and fairly presents the aetuarial position of the Retirement P1an as of the valuation date. All calculations have been made in conformity with generally aecepted actuarial principles and practices, with the Aetuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. Item # 4 This actuarial valuation and/or cost detennination was prepared and completed by me or under my direct supervision, and I acknowledge respoilsibility for the results. To the best of my knowledge, the results are cornplete and accurate. In my opinion, the techniques and assuinptions used are reasonable, meet the requirements and intent of Part VII, Chapter 112, Florida Statutes, and are based on generally accepted actuarial princi�les and practices. There is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities ar current costs have not been established or otherwise taken into account in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. Respectfully subinitted, GABRIFL, ROEDER, SMITH AND COMPANY �� �� ��� � J Steph n Palinquist, ASA, ��AAA, FCA nrolled Actuary No. 11-01560 ,�°.,� � � � ���� � � ete N. Strong, ASA � Enrolled Actuary No. 11-06975 Item # 4 C��bri�� I2c��c3e�° Sr���t�i �i C1c�c��s��y number TABLE OF CONTENTS Section Titie A Discussion of Valuation Results B Valuation Results 1. Participant Data 2. Annual Required Contribution 3. Actuarial Value of Benefits and Assets 4. Calculation of Employer Normal Cost 5. Reconciliation of Credit Balance 6. Liquidation of the Unfunded Actuarial Accrued Liability 7. Actuarial Gains and Losses 8. Recent History of Valuation Results 9. Recent History of Contributions 10. Actuarial Assumptions and Cost Method 11. Glossary of Terms C Pension Fund Information 1. Statement of Plan Assets at Market Value 2. Reconciliation of Plan Assets 3. Development of Actuarial Value of Assets 4. Investment Rate of Return D Financial Accounting Information 1. FASB No. 35 2. GASB No. 25 E Miscellaneous Information 1. Reconciliation of Membership Data 2. Active Participant Distribution 3. Inactive Participant Distribution F Summary of Plan Provisions Attachment number 1 \nPage 5 Pa�e 1 4 5 6 7 8 9 11 15 16 17 22 25 26 27 28 29 30 33 34 37 38 ' ��;�r�-� GRS Attachment number 1 \nPage 6 SECTION A DISCUSSION OF VALUATION RESULTS ' ��;�r�-� GRS Attachment number 1 \nPage 7 1 DISCUSSION OF VALUATION RESULTS Comparison of Required Emplover Contributions The required employer contribution developed in this year's valuation is compared below to last year's results: For FYE 9/30/2013 For FYE 9/30/2012 Based on Based on 1/1/2012 1/1/2011 Incre as e Valuation Valuation (Decrease) Required Employer/State Contribution $ 20,925,720 $ 18,898,567 $ 2,027,153 As % of Covered Payroll 27.99 % 24.70 % 329 % Estimated State Contribution 12,000 12,000 0 As % of Covered Payroll 0.02 % 0.01 % 0.01 % Required Employer Contnbution 20,913,720 18,886,567 2,027,153 As % of Covered Payroll 27.97 % 24.69 % 328 % Credit Balance 6,568,156 7,112,283 (544,127) The required contribution dollar amounts shown above are estimates only. The actual contribution should be no less than the percentage of the actual payroll for the fiscal year. The contribution has been adjusted for interest on the basis that payments are made uniformly during the first two quarters of the City's fiscal year. The required employer contribution has been computed under the assumption that the amount to be received from the State on behalf of police officers and firefighters in 2012 will be $12,000. If the actual payment from the State falls below this amount, then the City must increase its contribution by the difference. The actual Employer and State contributions during the year ending December 31, 2011 were $17,809,019 and $12,000, respectively, for a total of $17,821,019. After $1,077,548 of the credit balance is included, the total is equal to the annual required contribution of $18,898,567 for that year. The minimum required City contribution is 7% of covered payroll. ' ��;�r�-� GRS Attachment number 1 \nPage 8 2 Revisions in Benefits There have been no revisions in benefits since the last valuation. Revisions in Actuariai Assumptions or Methods There have been no revisions in actuarial assumptions or methods since the last valuation. The Actuarial Standard of Practice (ASOP) with regard to the mortality assumption has recently been revised. ASOP No. 35 Disclosure Section 4.1.1 now states "The disclosure of the mortality assumption should contain sufficient detail to permit another qualified actuary to understand the provision made for future mortality improvement. If the actuary assumes zero mortality improvement after the measurement date, the actuary should state that no provision was made for future mortality improvement. " The mortality table used is the RP-2000 Combined Healthy Participant Mortality Table for males and females. There is no provision for future mortality improvement in the current mortality assumption. We recommend that the mortality assumption be revised to include a margin for future mortality improvements. Detail on this assumption can be found in the Actuarial Assumptions and Cost Method section. Actuariai Experience There was a net actuarial loss of $13,721,771 for the year which means that actual experience was less favorable than expected. The loss is primarily due to recognized investment returns that were below the assumed rate of 7.5%. The investment return was -032% based on market value of assets and 4.46% based on actuarial value of assets. The net actuarial loss has increased the required employer contribution by 2.46% of covered payroll. Anaiysis of Chan�e in Emplover Contribution The components of change in the required City contribution are as follows: Contribution Rate Last Year Amortization Payment on UAAL Experience Gain/Loss Change in Investment and Administrative Expenses Change in State Revenue Contribution Rate This Year 24.69 % 0.47 2.46 036 0.01 27.97 ' ��;�r�-� GRS Attachment number 1 \nPage 9 3 Funded Ratio One measure of the Plan's funding progress is the ratio of the actuarial value of assets to the actuarial accrued liability. The funded ratio is 97.4% this year compared to 972% last year. For information purposes, this year's funded ratio is 94.5% based on the more commonly used Entry Age funding method. Variabiiitv of Future Contribution Rates The Actuarial Cost Method used to determine the contribution rate is intended to produce contribution rates which are generally level as a percent of payroll. Even so, when experience differs from the assumptions, as it often does, the employer's contribution rate can vary significantly from year- to-ye ar. Over time, if the year-to-year gains and losses offset each other, the contribution rate would be expected to return to the current level, but this does not always happen. The Actuarial Value of Assets exceeds the Market Value of Assets by $7,381,617 as of the valuation date (see Section C). This difference will be gradually recognized in the absence of offsetting losses. In turn, the computed employer contribution rate will increase by approximately 13% of covered payroll. Relationship to Market Vaiue If Market Value had been the basis for the valuation, the City contribution rate would have been 2928% and the funded ratio would have been 963%. In the absence of other gains and losses, the City contribution rate should increase to that level over the next several years. Conciusion The remainder of this Report includes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a summary of plan provisions. ' ��i�r�-� GRS Attachment number 1 \nPage 1i SECTION B VALUATION RESULTS ' ��;�r�-� GRS Attachment number 1 \nPage 1 PARTICIPANT DATA January l, 2012 January l, 2011 ACTIVE MEMBERS Number 1,468 1,508 Covered Annual Payroll $ 74,765,020 $ 76,505,599 Average AnnualPayroll $ 50,930 $ 50,733 Average Age 44.7 442 Average Past Service 11.5 112 Average Age at Hire 332 33.0 RETIREES & BENEFICIARIES Number 872 820 Annual Benefits $ 28,620,770 $ 26,111,545 Average Annual Benefit $ 32,822 $ 31,843 Average Age 64.6 64.6 DISABILITY RETIREES Number 138 136 Annual Benefits $ 3,431,327 $ 3,258,581 Average Annual Benefit $ 24,865 $ 23,960 Average Age 623 61.9 TERMINATED VESTED MEMBERS Number 62 68 Annual Benefits $ 1,238,456 $ 1,360,868 Average Annual Benefit $ 19,975 $ 20,013 Average Age 512 51.1 ' ��;�r�-� GRS Attachment number 1 \nPage 1; ANNUAL REQUIRED CONTRIBUTION (ARC) A. Valuation Date January 1, 2012 January 1, 2011 B. ARC to Be Paid During Fiscal Year Ending 9/30/2013 9/30/2012 C. Assumed Date of Employer Contrlb. Evenly during first Evenly during first two quarters of two quarters of fiscalyear fiscalyear D. Annual Payment to Amortize Unfunded Actuarial Liability $ 2,401,686 $ 2,118,337 E. Employer Normal Cost 17,064,100 15,461,725 F. ARC if Paid on the Valuation Date: D+E 19,465,786 17,580,062 G. ARC Adjusted for Frequency of P ayments 20,925,720 18,898,567 H. ARC as % of Covered Payroll 27.99 % 24.70 % L Assumed Rate of Increase in Covered Payroll to Contrlbution Year 0.00 % 0.00 % J. Covered Payroll for Contribution Year 74,765,020 76,505,599 K. ARC for Contrlbution Year: H x J 20,925,720 18,898,567 L. Estimate of State Revenue in Contribution Year 12,000 12,000 M. Required Employer Contribution (REC) in Contrlbution Year 20,913,720 18,886,567 N. REC as % of Covered Payroll in Contribution Year: M= J 27.97 % 24.69 % O. Credit Balance 6,568,156 7,112,283 Note: The dollar amounts of the required contributions shown are estimates only. Actual contributions should be no less than the listed percentage of payroll multiplied by actual covered payroll for the year. ' ��;�r�-� GRS Attachment number 1 \nPage 1; ACTUARIAL VALUE OF BENEFITS AND ASSETS A. Valuation Date January 1, 2012 January 1, 2011 B. Actuarial Present Value of All Projected Benefits for 1. Active Members a. Service Retirement Benefits $ 344,147,221 $ 347,256,186 b. Vesting Benefits 45,410,839 46,868,241 c. Disability Benefits 21,373,056 21,929,222 d. Preretirement Death Benefits 6,093,298 6,182,268 e. Return of Member Contributions 2,641,367 2,893,978 £ Total 419,665,781 425,129,895 2. Inactive Members a. Service Retirees & Beneficiaries 354,487,718 324,562,742 b. Disability Retirees 44,680,068 42,644,056 c. Terminated Vested Members 12,624,011 14,111,709 d. Total 411,791,797 381,318,507 3. Total for All Members 831,457,578 806,448,402 C. Actuarial Accrued (Past Service) Liability per GASB No. 25 (FEA Method) 681,871,531 665,701,475 D. Actuarial Value of Accumulated Plan Benefits per FASB No. 35 1. Based on Plan's Interest Rate 637,554,568 604,992,896 2. Based on FRS Interest Rate 619,817,749 N/A E. Plan Assets L Market Value 656,705,582 670,340,014 2. Actuarial Value 664,087,199 646,956,800 F. Actuarial Present Value of Projected Covered Payroll 601,832,076 624,706,007 U. Actuarial Present Value of Projected Member Contributions 48,146,565 49,976,479 ' ��;�r�-� GRS Attachment number 1 \nPage 1� CALCULATION OF EMPLOYER NORMAL COST A. Valuation Date January 1, 2012 January 1, 2011 B. Actuarial Present V alue of Projected Benefits $ 831,457,578 $ 806,448,402 C. Credit Balance 6,568,156 7,112,283 D. Actuarial Value of Assets 664,087,199 646,956,800 E. Unfunded Actuarial Accrued Liability 17,784,332 18,744,675 F. Actuarial Present V alue of Projected Member Contributions 48,146,565 49,976,479 G. Actuarial Present V alue of Projected Employer Normal Costs: B+GD-E-F 108,007,638 97,882,731 H. Actuarial Present V alue of Projected Covered Payroll 601,832,076 624,706,007 L Employer Normal Cost Rate: G/H 17.95 % 15.67 % J. Covered Annual Payroll 74,765,020 76,505,599 K. Employer Normal Cost: I x J 13,420,321 11,988,427 L. Assumed Amount of Expenses 3,643,779 3,473,298 % of Covered Payroll 4.87 % 4.54 % M. Total Employer Normal Cost: K+ L 17,064,100 15,461,725 N. Employer Normal Cost as % of Covered Payroll 22.82 % 2021 % ' ��;�r�-� GRS Reconcilation of Credit Balance Credit Balance at Begulni�lg of Year Required Employer Contribution Employer Contribution Made Interest on Credit Balance Credit Balance at End of Year $ 7,112,283 - 18,886,567 + 17,809,019 + 533,421 6,568,156 Attachment number 1 \nPage 1; ' ��;�r�-� GRS Attachment number 1 \nPage 1i 9 LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY A. Derivation ofthe Current UAAL l. Last Year's UAAL 2. Employer Normal Cost for Contribution Year 3. Last Year's Contributions 4. Interest at the Assumed Rate on: a. 1 and 2 for one year b. 3 from dates paid c. a-b 5. This Year's UAAL Prior to Revision: 1+2-3+4c 6. Change in UAAL Due to Plan Amendments and/or Changes in Actuarial Assumptions and Methods 7. This Year's Revised UAAL: 5+ 6 * Includes portion of credit balance used for year. $ 18,744,675 15,461,725 18,898,567 * 2,565,480 88,981 2,476,499 17,784,332 0 17,784,332 B. UAAL Amortization Period and Pa ments Ori inal UAAL Current UAAL Date Years Established Source Amount Remaining Amount Payment 1/1/1987 SupplementalFIL $ 1,519,142 5 $ 492,356 $ 113,203 1/1/1988 SupplementalFIL 1,673,738 6 632,879 125,425 1/1/1989 SupplementalFIL 2,177,772 7 933,446 163,939 1/1/1994 Method Change 3,724,296 12 2,366,155 284,550 1/1/1996 Plan Amendment 15,063,842 14 10,545,846 1,155,603 1/1/2000 Plan Amendment 52,921,724 18 42,634,814 4,086,159 1/1/2002 Assumption Changes (30,846,502) 20 (26,170,504) (2,388,021) 1/1/2007 Assumption Changes (14,695,526) 25 (13,650,660) (1,139,172) 31,538,486 17,784,332 2,401,686 GRS em Attachment number 1 \nPage 1 10 C. Amortization Schedule The UFAAL is being liquidated as a level dollar amount over the number of years remaining in the amortization period. The expected amortization schedule is as follows: Amortization Schedule Year FYpected UAAL 2012 $ 17,784,332 2013 16,536,345 2014 15,194,758 2015 13,752,552 2016 12,202,181 2017 10,535,532 2022 2, 008, 225 2027 (7,368,980) 2032 (4,954,631) 2037 - 2037 - GRS em Attachment number 1 \nPage 1� 11 ACTUARIAL GAINS AND LOSSES The assumptions used to anticipate mortality, employment turnover, investment income, expenses, salary increases, and other factors have been based on long range trends and expectations. Actual experience can vary from these expectations. The variance is measured by the gain and loss for the period involved. If significant long term experience reveals consistent deviation from what has been expected and that deviation is expected to continue, the assumptions should be modified. The net actuarial gain (loss) for the past year is computed as follows: A. Employer Normal Cost as a Percentage of Covered Payroll L Last V aluation 2. Current V aluation 3. Difference: 1 - 2 B. ActuarialPresent Value of Projected Covered Payroll C. Net Actuarial Gain (Loss): A3 x B D. Gain (Loss) dne to Investment� E. Gain (Loss) due to other sources Gains (losses) in previous years have been as follows: Year Ending 12/31 2009 2010 2011 Gain (Loss) $32,358,262 2,311,412 (13,721,771) 15.67 % 17.95 (2.28) $ 601,832,076 (13,721,771) (18,979,694) 5,257,923 Change in NC Rate (4.89) % (0.37) 228 GRS em Attachment number 1 \nPage 1! 12 The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan so it is important that they are in line with the actual experience. The following table shows the actual fund earnings and salary increase rates compared to the assumed rates for the last few years: Investment Return Salary Increases Year Ending Actual Assumed Actual Assumed 12/31/1986 N/A 7.00 % 7.40 % 5.00 % 12/31/1987 N/A 7.00 5.90 5.00 12/31/1988 N/A 7.00 910 5.00 12/31/1989 N/A 7.00 8.70 5.00 12/31/1990 N/A 7.00 5.30 5.00 12/31/1991 N/A 7.00 6.10 5.00 12/31/1992 N/A 7.00 6.80 5.00 12/31/1993 7.42 % 7.00 1.20 5.00 12/31/1994 6.28 7.00 4.40 5.00 12/31/1995 9.14 7.00 6.40 5.00 12/31/1996 11.54 7.00 6.70 5.00 12/31/1997 13.74 7.00 5.60 5.00 12/31/1998 15.28 7.00 7.40 5.00 12/31/1999 17.96 7.00 4.20 5.00 12/31/2000 12.42 7.00 5.80 5.00 12/31/2001 7.40 7.00 5.90 5.00 12/31/2002 (1.85) 7.50 5.80 6.00 12/31/2003 7.45 7.50 6.40 6.00 12/31/2004 2.18 7.50 6.38 6.00 12/31/2005 4.58 7.50 5.49 6.00 12/31/2006 7.87 7.50 5.15 6.00 12/31/2007 10.68 7.50 6.62 6.00 12/31/2008 (10.61) 7.50 4.25 6.00 12/31/2009 16.53 7.50 3.29 6.00 12/31/2010 5.98 7.50 1.27 6.00 12/31/2011 4.46 7.50 2.56 6.00 Averages 7.61 % --- 5.53 % --- The actual investment return rates shown above are based on the actuarial value of assets. The actual salary increase rates shown above are the increases received by those active members who were included in the actuarial valuations both at the beginning and the end of each year. GRS em Attachment number 1 \nPage 2i 13 3o�io Zs�io Zo�io 1 s�io 1 o�io s�io o�io -s�io -lo�io -1 s�io °l„' °Jp� �`' °l� �� °l� °l� O� O� O,�' 0.,� Op� oy O� O� O� Oq �� �� 1�'� 1� 1�� ti�'� 1�� ��� ti�'� 1�� 1�� 1�'� 1� ti�'� 1�' 1�� ti�'� 1�� ��� ti�'� 1�� History of Investment Return Based on Actuarial Value of Assets ls% 10% 5% 0% \�� \�� \�� \�� V°�� V°�� V°�� V°�� V°�� V°��' V°�� V°�� V°�� V°�� V�� V�� V��' V�� V�� V��' V�� V�� V�� V�� \ti� \ti� 1� 1� 1� 1� 1� 1� 1�' 1�' 1�' 1�' 1�' 1�' 1�' 1�' 1�' ti�' ti�' ti�' ti�' ti�' ti�' ti�' ti�' ti�' ti�' ti�' PlanYear End Actual � Assumed History of Salary Increases PlanYear End Compared to Previous Year � Acival � Assumed 3o�io Zs�io Zo�io 1 s�io lo�io s�io o�io -s�io -lo�io -is�io 15% 10% 5% 0% GRS em Attachment number 1 \nPage 2 14 Actuai (A) Compared to Expected (E) Decrements Among Active Employees Numbe r Adde d Active During Service Disability Terminations Members Year Year Retirement Retirement Death Vested Other Totais End of Ended A E A E A E A E A A A E Year 12/31/2009 49 110 54 57 0 6 0 2 10 46 56 93 1,567 12/31/2010 78 137 68 51 2 6 3 2 15 49 64 85 1,508 12/31/2011 84 124 43 49 6 6 0 2 11 64 75 84 1,468 12/31/2012 52 6 2 81 3 Yr Totals * 211 371 165 157 8 18 3 6 36 159 195 262 * Totals are through current Plan Year only. Actual (A) Compared to Expected (E) Deaths Among Re tire e s and B e ne ficiarie s Actual During Ye ar Expe cte d During Ye ar Ye ar Annual Annual Ended Number Pensions Number Pensions 12/31/2009 12 $ 142,606 16 $ 313,189 12/31/2010 12 139,508 18 363,242 12/31/2011 13 220,877 19 416,467 12/31/2012 20 466,010 GRS em � � o � r�i, e'�'C � �O M � N � � a � � � � O N U � � N � N N ,� O � \ 0 O z �. p �r,.', O O M N N O � � � � N �O l� � � � N O �i �i � � W � Q�i O � � O � Q� �O O v� v� l� N � � � Ef3 � l� �O O M v� N "'� � � .� � � O � � M � � � � � � � � � � � � � � � � � W� � � � ri � o Q; � � � � N N N � � � � � [� O a �� Q�i � � O O Q�i v� O � Q� � � � � O Q� � � �O l� � '� � � Q�i � � Q�i O O •� � � O M � �O � � � � � � � � ��/ U Fil � � � � � � � �.y L: O l� l� Q� Q� O x � � O �O � � � O "'� i'" � l� O M O � �, y CC M M � � �/'� l� W � a � � � � � � V W O � V Ef3 � � � � � � O � � N N l� O � � � � Q� Q� O O i". �� � � � � � � z � � � � � ° ° � � � � � � � � � � � 0 � � � Q, o ,� N '� � o 0 0 � � � ,� A � � � � � � � � � � � � � GRS � N � O O U N � � O � +� � � U .� � � � 'C � � � � � � O � � � O O N � � � ti N � O � O O N � � � ti �: �° � � � � � � 15 � � N � � � � � � , M 01 V� 01 V� N �O O M 00 � M 00 �O l� O� 0 V'� O O\ M 00 [� N O M o� o0 � � O � O O O O O O O O O O r"' � � � � � � O �' V � � � r.., U � � � � � � � i �j � M 01 V� 01 V� F-i C O � � � �O 0�0 � V'� O O\ M 00 N O M O� 00 � � � � H � 0 � ° ° � � � � � � ° � � N N N N U � \ � � a � � � �,a � �� � � � � � � O � y � O � oo � �O ri N l� � �O 00 -7-i 0�" V'� O O� M 00 O� A �J N O M O� 00 O Q � � W � o � o 0 0 i..i � °�,' o� o 0 0 0 0 0 � � �� o 0 0 0 0 0 a � �' � � � � � � � o 0 0 0 0 0 w �� � o 0 0 0 0 0 o .�� � ������ O a Ff3 � �..� o I�I 0 � � � � 0 � � x � _ ���;�� � � � �a NNN N z � w °� W o � � � � � � o � �CL '� N 00 � M 00 V� O V'� O O\ M 00 ONl Q N O M O� 00 O , N � �� �.' i." 00 O� O "" � � U O � O O � 03�:� o0000 0 ���� ����� � Ot� o0 0� O �' � '� o 0 0 � � \ � � � � � � � � GRS � N O O U N 0 � � � � U .� � � "C � � � N �r � � 0 � � � 0 0 N � � � ti � � 0 � � � 0 O N � � � i--� � � � � � ,-�''-i � � S-r � � � � w � � U � � � � �." �r O �O � � � � O � � � � N � � � � � O O V � � � � O� � � � �� �� �. .� O � .� i--� � N �." � O � "� �' � � �. � o �� � �. � �o o � N � o� M N N � � ,5.�"y � � i-�-� � � � � � � o�n ; �0 � � �� �� � O U � � � O � '+� � � � � �o � U •� '� b�A �, G� s� L[: � � a�i � Attachment number 1 \nPage 2� 17 ACTUARIAL ASSUMPTIONS AND COST METHOD Vaivation Methods Actuarial Cost Method - Normal cost and the allocation of bene�t values between service rendered before and after the valuation date were determined using the Frozen Entry-Age Actuariai Cost Method. The excess of the Actuarial Present Value of Projected Benefits of the group included in the valuation, over the sum of the Actuarial Value of Assets, the Unfunded Frozen Actuarial Accrued Liability and the Actuarial Present Value of Future Member Contributions (if any) is allocated as a level percentage of earnings of the group between the valuation date and the assumed retirement age. This allocation is performed for the group as a whole, not as a sum of individual allocations. The portion of this Actuarial Present Value allocated to a specific year is called the Employer Normal Cost. Under this method, actuarial gains (losses) reduce (increase) future Normal Costs. Financing of Unfunded Actuarial Accrued Liabilities - Unfunded Actuarial Accrued Liabilities (full funding credit if assets exceed liabilities) were amortized by level (principal & interest combined) dollar amount contributions over a reasonable period of future years. Actuarial Value ofAssets - The Actuarial Value of Assets phase in the difference between the expected and actual return on market value of assets at the rate of 20% per year. The Actuarial Value of Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan assets. During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than Market Value. During periods when investment performance is less than assumed rate, Actuarial Value of Assets will tend to be greater than Market Value. Vaivation Assumptions The actuarial assumptions used in the valuation are shown in this Section. Economic Assumptions The investment return rate assumed in the valuations is 7.5% per year, compounded annually (gross rate before investment expenses). The Wage Inflation Rate assumed in this valuation was 3% per year. The Wage Inflation Rate is de�ned to be the portion of total pay increases for an individual that are due to macro economic forces including productivity, price inflation, and labor market conditions. The wage inflation rate does not include pay changes related to individual merit and seniority effects. The assumed reai rate of return over wage inflation is defined to be the portion of total investment return that is more than the assumed wage inflation rate. Considering other economic assumptions, the 7.5% investment return rate translates to an assumed real rate of return over wage inflation of 4.5%. The rate of salary increase used for individual members is 6% per year. Part of the assumption is for merit and/or seniority increase, and the other 3% recognizes wage inflation, including price inflation, productivity increases, and other macroeconomic forces. This assumption is used to project a member's current salary to the salaries upon which benefits will be based. '��# 4 GRS Attachment number 1 \nPage 2: 18 Demographic Assumptions The mortality table was the RP-2000 Combined Healthy Participant Mortality Table for males and females. Mortality improvements after 2000 are not incorporated into these rates. This assumption is used to measure the probabilities of each benefit payment being made after retirement. For active members, the probabilities of dying before retirement were based upon the same mortality table as members dying after retirement. All deaths before retirement are assumed to be non-service connected. As noted in the Discussion of Valuation Results section, we recommend that the mortality assumption be revised to include a margin for future mortality improvements. Sample values of the current and proposed life expectancies are shown below. Current Mortaiitv Assumption Sample Probability of Future Life Attaine d Dying Ne xt Ye ar Expe ctancy (ye ars ) Ages Men Women Men Women 50 021 % 0.17 % 30.84 33.64 55 036 % 027 % 60 0.67 % 0.51 % 65 127 % 0.97 % 70 222 % 1.67 % 75 3.78 % 2.81 % 80 6.44 % 4.59 % Pronosed Mortaiitv Assumption* 2622 28.95 21.78 24.42 17.65 20.16 13.92 1627 10.61 12.78 7.79 9.72 Life Expectancy Sample 2007 2012 2017 2022 Ages Male Female Male Female Male Female Male Female 50 33.58 35.23 34.04 35.48 34.49 35.73 34.92 35.98 55 28.47 30.28 28.92 30.52 29.36 30.76 29.78 31.00 60 23.58 25.52 24.00 25.75 24.42 25.98 24.82 26.21 65 19.02 21.05 19.41 21.27 19.79 21.49 20.16 21.71 70 14. 90 16. 95 15. 24 17.16 15. 57 17. 36 15. 89 17. 57 *The RP-2000 Combined Healthy Participant Mortality Tables for males and females. The provision for future mortality improvements is being made by using Scale AA after 2000. '��# 4 GRS Attachment number 1 \nPage 2i 19 The rates of retirement used to measure the probability of eligible members retiring under normal and early retirement eligibility during the next year were as follows: Hazardous Duty Retirement 10 to 19 20 or More Ye ars of Ye ars of A�e Service Service 45 N/A 15 % 50 20 % 20 55 20 35 60+ 100 100 Non-Hazardous Duty Retirement 10 to 19 20 to 29 30 or More Ye ars of Ye ars of Ye ars of A�e Se rvice Se rvice Se rvice 50 N/A N/A 20 % 55 N/A 30 % 25 60 N/A 30 25 65 35 % 75 75 70+ 100 100 100 Rates of separation from active membership were as shown below (rates do not apply to members eligible to retire and do not include separation on account of death or disability). This assumption measures the probabilities of inembers remaining in employment. Hazardous Duty Withdrawal Sample °/a ofActive Members Ages Separating Within Next Year 20 7.5 % 25 7.5 30 3.0 35 3.0 40 3.0 45 3.0 50 3.0 55 0.0 '��# 4 GRS Attachment number 1 \nPage 2 Non-Hazardous Duty Withdrawal Sample Firs t Ye ar Se co nd Ye ar Third Ye ar M o re than 3 Ages ofService ofService ofService Years ofService 20 25.0 % 25.0 % 25.0 % 20.0 % 25 25.0 25.0 20.0 15.0 30 15.0 12.5 10.0 8.0 35 15.0 12.5 10.0 8.0 40 15.0 12.5 10.0 5.0 45 15.0 12.5 10.0 4.0 50 15.0 5.0 5.0 4.0 55 15.0 5.0 5.0 4.0 60 0.0 0.0 0.0 0.0 Rates of disability among active members (100% of disabilities are assumed to be service-connected). Sample Age s 20 25 30 35 40 45 50 55 60 65 70 % ofActive Members Becoming Dis able d Within Ne xt Ye ar Males Females 0.17 % 0.34% 0.17 0.34 0.17 0.34 0.18 0.36 0.20 0.40 0.23 0.46 0.29 0. 58 0.39 0.78 0.59 1.18 1.04 2.08 1.74 3.48 20 '��# 4 GRS Attachment number 1 \nPage 2� 21 Misceiianeous and Technicai Assumptions Administrative & Investment The investment return assumption is intended to be the gross return Expenses before investment expenses. Annual administrative and investment expenses are assumed to be equal to the expenses of the previous year. Assumed administrative and investment expenses are added to the Normal Cost. Benefrt Service Exact fractional service is used to determine the amount of bene�t payable. Cost of Living Increases The adjustment is 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. Decrement Operation Decrement Timing Eligibility Testing Disability and mortality decrements operate during retirement eligibility. Decrements of all types are assumed to occur at the beginning of the year. Eligibility for benefits is determined based upon the age nearest birthday and service nearest whole year on the date the decrement is assumed to occur. Forfeitures For vested separations from service, it is assumed that 0% of inembers separating will withdraw their contributions and forfeit an employer financed benefit. It was further assumed that the liability at termination is the greater of the vested deferred bene�t (if any) or the member's accumulated contributions. Incidence of Contributions Employer contributions are assumed to be made in equal installments during the first two quarters of the fiscal year. Member contributions are assumed to be received continuously throughout the year based upon the computed percent of payroll shown in this report, and the actual payroll payable at the time contributions are made. Marriage Assumption 85% of males and 85% of females are assumed to be married for purposes of death-in-service bene�ts. Male spouses are assumed to be five years older than female spouses for active member valuation purposes. Normal Form ofBenefit The normal form of benefit is a life annuity that includes a survivor benefit where after the participant's death, 100% is payable to the spouse for �ve years, after which the bene�t is reduced to 50%. Pay Increase Timing End of fiscal year. This is equivalent to assuming that reported pays represent the annual rate of pay on the valuation date. The pay used for the valuation is equal to the greater of the actual pay for the plan year increased by 6% and the annual rate of pay on the valuation date. Service Credit Accruals It is assumed that members accrue one year of service credit p�r �a� 4 GRS Actuarial Accrued Liability (AAL) Attachment number 1 \nPage 2! 22 GLOSSARY The difference between the Actuarial Present Value of Future Bene�ts, and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities, such as: mortality, withdrawal, disablement, and retirement future increases in salary; future rates of investment earnings; future investment and administrative expenses; characteristics of inembers not specified in the data, such as marital status; characteristics of future members; future elections made by members; and other items. Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits between the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued Liability. Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and based on a given set of Actuarial Assumptions. Actuarial Present Value The amount of funds required to provide a payment or series of payments (APV) in the future. It is determined by discounting the future payments with an assumed interest rate and with the assumed probability each payment will be made. Actuarial Present Value of The Actuarial Present Value of amounts which are expected to be paid at Future Benefits (APVFB) various future times to active members, retired members, beneficiaries receiving benefits, and inactive, nonretired members entitled to either a refund or a future retirement benefit. Expressed another way, it is the value that would have to be invested on the valuation date so that the amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due. Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental retirement system typically also includes calculations of items needed for compliance with GASB No. 25, such as the Funded Ratio and the Annual Required Contribution (ARC). Actuarial Value ofAssets The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results, such as the funded ratio and the actuarially required contribution (ARC). Item # 4 GRS Attachment number 1 \nPage 3i 23 Amortization Method A method for determining the Amortization Payment. The most common methods used are level dollar and level percentage of payroll. Under the Level Dollar method, the Amortization Payment is one of a stream of payments, all equal, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the Amortization Payment is one of a stream of increasing payments, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the stream of payments increases at the rate at which total covered payroll of all active members is assumed to increase. AmortiZation Payment Amortization Period That portion of the plan contribution or ARC which is designed to pay interest on and to amortize the Unfunded Actuarial Accrued Liability. The period used in calculating the Amortization Payment. Annual Required The employer's periodic required contributions, expressed as a dollar Contribution (ARC) amount or a percentage of covered plan compensation, determined under GASB No. 25. The ARC consists of the Employer Normal Cost and Amortization Payment. Closed Amortization Period A specific number of years that is reduced by one each year, and declines to zero with the passage of time. For example if the amortization period is initially set at 30 years, it is 29 years at the end of one year, 28 years at the end of two years, etc. Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is equal to the Normal Cost less expected member contributions. Equivalent Single For plans that do not establish separate amortization bases (separate Amortization Period components of the UAAL), this is the same as the Amortization Period. For plans that do establish separate amortization bases, this is the period over which the UAAL would be amortized if all amortization bases were Experience Gain/Loss Funded Ratio GASB combined upon the current UAAL payment. A measure of the difference between the normal cost rate from last year and the normal cost rate from this year. The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability. Governmental Accounting Standards Board. GASB No. 25 and These are the governmental accounting standards that set the accounting GASB No. 27 rules for public retirement systems and the employers that sponsor or contribute to them. Statement No. 27 sets the accounting rules for the employers that sponsor or contribute to public retirement systems, while Statement No. 25 sets the rules for the systems themselves. I[�'ii�:�! C�� Attachment number 1 \nPage 3 24 Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current plan year. Open Amortization Period An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 30 years, the same 30-year period is used in determining the Amortization Period each year. In theory, if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued The difference between the Actuarial Accrued Liability and Actuarial Liability Value of Assets. Valuation Date The date as of which the Actuarial Present Value of Future Benefits are determined. The benefits expected to be paid in the future are discounted to this date. I[�'ii�:�! C�� Attachment number 1 \nPage 3; SECTION C PENSION FUND INFORMATION Item # 4 GRS State me nt of Plan As s e ts at M arke t Value Ite m A. Cash and Cash Equivalents (Operating Cash) Attachment number 1 \nPage 3; 25 December 31 2011 2010 $ - $ - B. Receivables: L Member Contributions $ - $ - 2. Employer Contr�utions 9,615,795 8,169,925 3. Investment Income and Other Receivables 2,093,552 1,972,565 4. Total Receivables $ 11,709,347 $ 10,142,490 C. Investments 1. Short-Term Investments 2. Domestic Equities 3. International Equities 4. Commodities 5. Domestic F�ed Income 6. International F�ed Income 7. Real Estate 8. Private Equity 9. TotalInvestments D. Liabilities 1. Benefits Payable 2. Accrued Expenses and Other Payables 3. Total Liabilities $ $ 35,371,258 321,443,792 87,568,707 1,165,360 174,176,875 25,996,447 645,722,439 $ 30,944,675 319,892,820 116,185,673 1,048,884 172,034,846 20,941,363 $ 661,048,261 $ - $ - (726,204) (850,737) $ (726,204) $ (850,737) E. Total Market Value of Assets Available for Benefits $ 656,705,582 $ 670,340,014 F. Allocation of Investments 1. Short-Term Investments 2. Domestic Equities 3. International Equities 4. Commodities 5. Domestic F�ed Income 6. International F�ed Income 7. Real Estate 8. Private Equity 9. TotalInvestments 5.48% 49.78% 13.56% 0.18% 26.97% 0.00% 4.03% 0.00% 100.00% 4.68% 4839% 17.58% 0.16% 26.02% 0.00% 3.17% 0.00% 100.00% Item # 4 GRS Reconciliation ofPlan Assets Ite m A. Market Value of Assets at Begulnulg of Year B. Revenues and Expenditures L Contr�utions a. Employee Contnbutions b. Employer Contr�utions c. State Contr�utions d. Total 2. Investment Income a. Interest, Dividends, and Other Income b. Net Realized Gains/(Losses) c. Net Unrealized Gains/(Losses) d. Investment Expenses e. Net Investment Income 3. Benefits and Refunds a. Refunds b. Regular Monthly Benefits c. Partial Lump-Sum Benefits Paid d. Total 4. Adininistrative and Miscellaneous Expenses 5. Transfers C. Market Value of Assets at End of Year Attachment number 1 \nPage 3� December 31 2011 2010 $ 670,340,014 $ 578,108,232 $ 5,796,620 $ 5,983,229 17,809,019 17,428,806 12,000 12,000 $ 23,617,639 $ 23,424,035 $ 14,447,428 $ 13,748,614 22,674,910 30,548,884 (39,262,170) 56,174,223 (3,473,458) (3,303,218) $ (5,613,290) $ 97,168,503 � �g2�,s29� � (���,3g2� (30,640,931) (27,413,294) $ (31,468,460) $ (28,190,676) � �1�0,321� � (l�o,ogo� $ - $ - $ 656,705,582 $ 670,340,014 26 Item # 4 GRS � � � O � � � � � •� � � U �i W O i." � � ° � � A M �--I O N N � 0 N � �--I O N .. M CO M CO v'� l� O N �O N l� M 01 �--� M V'� � � � � N v� CO � O � O N � � N N � i"� i"� i"� M CO M M V'� V� l� O � � � N � N � � �� M � � � � � �� (�i N � � � � Q �H 0 N 0 � �� N � N O N� O N o ��O M CO M M O v�'� 01 CO �O 01 01 l o 0 0 O CO � O M O M�O v'� l� O� N M 01 01 �O 01 01 ��O N N CO v'� O�O CO v'� � N �O N l� N v'� � ��O �� 01 �O � M� �O v'� O� 01 l� CO CO 01 � M�� M l� �O � l� ��� O� v'� O� 01 M v'� 01 01 CO 01 � 01 M CO ��O CO N CO ' O 01 l� M� �--� M� N V'� CO l� �--� l� O O M O �O M �--� � � 0 �H N � �H 0 �H 0 N `/ 0 � � � � � � � � � �H `� � � �H �H N � N � � N � N `� �p �p �p `/ `/ `/ `/ `/ �p l� V� �p 69 69 69 69 69 69 69 �O � N 0�1 � o M CO CO M M O N O O l� � O O� M M N O M CO l� O� N CO O O�� O 01 O N 01 l� v'� M M N l� N v'� N v'� CO O O CO O� O CO 01 � l� v'� �O r-i M�� O M �O CO N�O �--i �� O M l� �O O CO 01 � 01 N� v'� O l� v'� O� M� N � �n O\ �n CO l� ,� �O CO O\ � N O\ N � 0 � � 0 N � �H 0 N `/ � � � � � � � l� l� `-� O � v'� � N� `-� � O M� �O �O V'� �--i � �O CO v'� �O 69 69 69 69 69 M N� 0�0 01 0 � V� N N O�O l� � N v'� O � O �O CO M � �O �O O M�--� M V'� M CO � N O CO l� �O l� N� �--� l� � `-� M M O � � � �H �H � l� � V� � O o M M CO �O l� M CO O M�--� O O�O �O O1 v'� N N O � � � M �O � O l� O O\ M V'� CO M N V'� N ° � c�v � � � � � � � �--I CV � � � � M S, � � � U � A a� � A � 0 � � � � � � � � O� N ONO 01 � O� 0�0 O l� N V� N� 01 01 CO V� 01 OM1 � 0�1 N O 0�1 � N CO � � � � � � � � � � � O N � CO CO M N CO N � � � 01 �O � `/ `/ � � � � � � � � M O N v�'� � N CO 01 N V� N � � � O N � � � � � � � � �../ M � � � � � � M �../ N � � � N � �O � � � � � �O M CO M M CO CO CO o �o r �o �--� M V'� M �O V'� M V'� 69 69 69 69 � � O � w � � �+-� � W � e�"C � o U � �.s�. � � .�' °� � W � O o � �W � �z .� � Q a� � � �oo a�i �" '� U �' �, �' � c.� o a�i � 4-i � � � � � � � W � � � � � � o u . . � �' ,�' w � � � � o °' �, .� .�' � a o a-' 4, �c � � � � � d o � �' E�-� o � � �' o � � d � � � w O � � � et. U o� °A� �',x � ��r''� � ���,�',� ��.°�� � � .� � w W � o � �; � o�n a� �' � ° o . o �, � .��. � � ro � � � � � -5-� � � � � � • � Q' s� P�-i ,s�". `� . � U U on � '� '� � �, � � � � a a � � � � �' � > > � � � � � � � °' a o '� '� � � �, � '-��" N N � � U V] V] � � �'.�' N fr" O O�'S" i�-i '4.'i O R �,x,x� �ddd� �Uwv�HwH �a�aw d�� Z� w w w w a w w w w w w��7 �7 �7 �7 d r� U�1 ui r� C7 GRS M � O O O M � CO O � CO N 01 V� V� �--� M V'� l� �O � � � � l� M �O M M N 69 69 � � o 0 0 V'� l� M M CO O �O v'� 01 01 l� �O �O O �O 01 M � M O CO O � � � � O N O O O pp � � � O O1 � �O O O CO N O l� O O � � N N � � � � � � � � � � o ' � �+ � � � � on d * � � � .�'� �w � �x � O W � � � � � � � ° `� � y � ��o�� � � y eC � � � � � N ��,�d � � •� � O � � � ,o � e� � Q dU' � f� x � ti � a � � a N � � � � � � ,o � � � N � � � U � � � W '� N �--� � � ��-I � � a � � Y � � � ��--! � � a � � � � � � � � � � � � � 4--� y 0 I-I � �"'� � '� N � Y � � � � � ,--' N � y Sx�-I � � �� � '� � � � O ,� � � �. � � Y cUC � N N � � N � � � O N U �--� � � '� � U �"' +-' � � �e� ,N � `5 /''� � y I� � � � � N � '� o � '� � � � N � ', � � � � � '� V � � � U � W��o � � � � �--� � '�-I � � � � � C � � 0 y ��--! � � ��--� .a � � Y � � • � � � � � � � � � a� � °� o � P..� � ���>�. � � � .� ao�n .o � � � ¢' � � �`��� ``�'i' j, � j, � � � � �o � .� .� U � O � O � � ��o� � � �,, 4° ��.�� � � � � � H P. Q �. 27 � � � � y--� Plan Year Ending December 31 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Average returns: Last five years: Last ten years: All years: InvestmentRate ofReturn Market 1321 % 10.78 9.12 20.84 621 28.52 6.49 929 0.89 2336 14.80 17.49 16.74 18.61 (3.43) (5.16) (8.8�) 20.08 9.73 6.67 11.80 729 (27.01) 30.93 17.50 (0.32) 3.73 % 5.58 % 9.10 % Actuarial N/A N/A N/A N/A N/A N/A N/A 7.42 % 628 9.14 11.54 13.74 1528 17.96 12.42 7.40 (185) 7.45 2.18 4.58 7.87 10.68 (10.61) 16.53 5.98 4.46 5.00 % 4.49 % 7.61 % Attachment number 1 \nPage 3i 28 The above rates are based on the retirement system's financial information reported to the actuary. They may differ from figures that the investment consultant reports, in part because of differences in the handling of administrative and investment expenses, and in part because of differences in the handling of cash flows. Item # 4 GRS Attachment number 1 \nPage 3 SECTION D FINANCIAL ACCOUNTING INFORMATION Item # 4 GRS FASB NO. 35 INFORMATION A. Valuation Date B. ActuarialPresent Value of Accumulated Plan Benefits l. Vested Benefits a. Members Currently Receiving Payments b. Tenninated Vested Members c. Other Members d. Total 2. Non-Vested Benefits 3. Total Actuarial Present Value of Accumulated Plan Benefits: ld + 2 4. Accumulated Contributions of Active Members C. Changes in the Actuarial Present Value of Accumulated Plan Benefits 1. Total Value at Beginning of Year 2. Increase (Decrease) During the Period Attributable to: a. Plan Amendment b. Change in Actuarial Assumptions c. Latest Member Data, Benefits Accumulated and Decrease in the Discount Period d. Benefits Paid e. Net Increase 3. Total Value at End of Period �. ActuarialPresent Value of Accumulated Plan Benefits Using FRS Interest Rate a. Vested b. Non-Vested c. Total E. Market Value of Assets E Funded Ratio Using FRS Interest Rate G. Actuarial Assumptions - See page entitled Actuarial Assumptions and Methods January l, 2012 � January 1, 20ll $ 399,167,786 12,624,011 208,733,024 620,524,821 17,029,747 637,554,568 54,042,120 604,992,896 1 1; 64,030,132 (31,468,460) 32,561,672 637,554,568 603,958,570 15,859,179 619,817,749 656,705,582 105.95% Attachment number 1 \nPage 3� $ 367,206,798 14,111,709 206,241,827 587,560,334 17,432,562 604,992,896 53,322,108 570,403,066 �� �I 62,780,506 (28,190,676) 34,589,830 604,992,896 N/A N/A N/A 670,340,014 N/A 29 Item # 4 GRS � � W � � � Z I�I A � w w � � A x V � � N O C". � � CC � �Q � � ...� GRS 0 0 0 o �\ l� o0 0� o� l� oo ,� l� � oo ,� o l� `o o cv o� cv � �n o0 �, 01 `O � N o0 01 `O N l� 00 � O N`O N O o0 `O v'i � � M �„a� � N N N M N V'� V'� V'� � � M l� \O V'� V'� V'� N N N N N N � � � � � � �..i � � O M N Ol � N � OO OO M M � N O M� Ol O l� l� 01 01 O � V'� M M l� M `O � Ol N O 00 00 N l� O `O 01 �--� M Ol Ol N � l� M O 01 M Ol M�--� V'� � V'� V'� OO � M N O\O 00 �--i V'� O �1y N`O r-i O r-i o0 v'i r-i `O l� � 01 O l� `O O v'i r-i � M v'i v'i .� � M N M� l� O v'� 00 AO M �O N v'� O M � 00 l� O� OAO y V� `O l� l� C+� (� Ol (� `O Ol 00 Ol � Ol 00 O C+� C+� �� V� l� � �`O o0 00 � �� l� 01 O � 00 v'� 01 M `O 01 O N O `O � � M M M M� ���� V'� V'� V'� `O `O l� l� l� 00 00 00 l� l� O U � O ° � � M O V'� � O M�VO l� VO N N N l� Ol M�--� AO M Ol N� � � � � � � � � � � � � � � � � � � � � � � � � ^°� e � � � �� l� � N O M N 01 O o0 00 N`O � O `O l� `O O M v'� N � �--i V'� �--i l� l� Ol O V'� 00 �--i Ol l� M`O �--� V'� M`O M� l� M C+� 00 O o0 O o0 (+� (+� 01 v'� v'� � O 01 01 l� v'� \O O� \O C+� �� N M���O 01 �O � 01 O l� N N o0 O M l� O�� �� v'� O 01 M� l� � v'� 01 O � M 01 v'� l� N� 00 00 `O � 00 � N OO N V'� Ol M V'� \O \O \O Ol M M`O OO O� V'� \O \O l� l� ,..� � O 01 01 N� �O v'i � M v'i M� O 01 00 00 N� O 01 00 l� y �--� �--� �--� N N N N l� l� �� M M M N N N �--� �--� �--� "� � S." � � ^� �� v'� `O �`O `O � N N� O o0 l� v'� l� � O l� M M 01 v'� � u� l� N O� 01 00 O 01 M� O o0 01 N o0 00 N v'� O� l� M r� O�--� l� M l� M V'� � l� Ol N��`O �--� V'� �--i l� V'� M � V'� Q, 00 O 01 01 00 � N O o0 `O N� M v'i `O l� 00 01 v'i 01 � r-i r� �--� V'� M� N N Ol V'� OO N l� Ol M�--� M Ol � V'� �--i O O l� ��� � v� `O v� � � 00 N l� � `O � 01 01 � v� N v� v� � l� 00 •� � N� l� V'� l� �--� l� M l� O V'i M l� `O Ol M N N l� OO V'� �--i � �--� � N N N N N M M� V� V� V� V� V� V� �\O V� \O \O \O � � � � � w � � 01 O�`O o0 O M� N O v'� 01 M� � O l� M`O O 01 � `O `O 01 l� N o0 O M v'� N �� v'� `O l� N 01 00 l� O O 01 l� N`O � l� � N� l� � `O O�`O N o0 v'� O� 01 00 � �� v'� `O v'i � N � `O `O o0 `O � 01 � `O v'i M O 01 � � `O l� y � AO � � �--� 00 � � Ol 00 N N V') � V') AO l� M l� M � V') 00 ��`ce� 00 l� M O� l� M v'� O o0 l� 00 v'� N N v'� 00 01 00 � 01 O •� � r-i � 00 M v'� � N o0 �� � r-i l� l� O v'i 01 O`O o0 `O � � 00 01 � N � l� O v'� � `O 01 l� O� N v'� � M� �`O � �--� �--� �--� N N N N M M� ��� V� V� V� V� \O V� \O \O \O u d� � � � � A � N M� v'� `O l� 00 01 O � N M� v'� `O l� 00 01 O � N •� �, 01 01 01 01 01 01 01 01 01 O O O O O O O O O O� �� � 0 01 01 01 01 01 01 01 01 01 O O O O O O O O O O O O O ����� ���� N N N N N N N N N N N N N r,,, i:� � � � � � � � � � � � � � � � � � � � � � � U � �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� �--� � .� \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I �--I � � 30 � N � O O U N O ,� � � � N U �". � � � � "C � � � � �'' � � � � O � � � O O N �--i � � �-, N � O 4--i O O N r-i � � � � ti � � N � � � � � � Attachment number 1 \nPage 4i SCHEDULE OF CONTRIBUTIONS FROM EMPLOYER AND THE STATE OF FLORIDA (GASB Statement Na 25) Fis cal Ye ar Ende d Annual Re quire d Actual Pe rce ntage Se tember 30 Contribution Contribution Contributed 2008 $ 12,532,399 $ 12,532,399 100.0 % 2009 10,086,978 10,086,978 100.0 2010 23,960,586 23,960,586 100.0 2011 19,373,992 19,373,992 100.0 2012 18,898,567 18,898,567 100.0 GRS 31 Attachment number 1 \nPage 4 32 REQUIRED SUPPLEMENTARY INFORMATION GASB Statement No. 25 and No. 27 The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation: Valuation Date Contribution Rates Employer (and State) Plan members Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Actuarial Assumptions Investment rate of return Projected salary increases Includes inflation and other general increases at Cost of Living adjustments GRS January 1, 2012 27.99% 8.00% Frozen Entry Age Normal Level dollar, closed 25 years Phase-in of 20% of difference between actual and expected return on market value of assets. 7.50% 6.00% 3.00% 1.50% each year on April 1 Attachment number 1 \nPage 4; SECTION E MISCELLANEOUS INFORMATION GRS 4 Attachment number 1 \nPage 4; 33 RECONCILLATION OF MEIVVIBERSH� DATA FYoml/1/2011 FYoml/1/2010 To 1/1/2012 To 1/1/2011 A. Active Members 1. Number Included in Last Ualuation 1,508 1,567 2. New Members Included in C�irrent Ualuation 82 77 3. Non-Uested Employment Termnlations (64) (49) 4. Uested Employment Terminations (11) (1� 5. Service Retirements (43) (68) 6. Disability Retirements (� (2) 7. Deaths 0 (3) 8. Data Corrections/Rehired Members 2 1 9. Number Included in This Ualuation 1,468 1,508 B. Terminated Vested Members 1. Number Included in Last Ualuation 68 69 2. Additions from Active Members 11 15 3. Lump Sum Payments/Refund of Contri�butions (2) (� 4. Payments Commenced (1� (9) 5. Deaths 0 0 6. Conversion from Disability/Rehired Members 0 (1) 7. Data Corrections 1 0 8. Number Included in This Ualuation 62 68 C. Service Retirees, Disability Retirees andBeneficiaries 1. Number Included in Last Ualuation 956 886 2. Additions from Active Members 49 70 3. Additions from Texiiiiiiated Vested Members 16 9 4. Deaths Resulting in No Further Payments (13) (12) 5. Deaths Resulting in New Survivor Benefits 0 3 6. Fald of Certain Period - No Further Payments (1) 0 7. Data Correction/W aiver of Benefits 3 0 8. Number Included in This Ualuation 1,010 956 GRS Item # 4 Attachment number 1 \nPage 4� 34 ACTIVE PARTICIPANT DISTRIBUTION ALL ACTIVE MEMBERS ge Group 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25-29 30-34 35+ Totals )-24 NO. 9 6 8 2 4 0 0 0 0 0 0 0 2S OT PAY 225,350 192,528 321,012 64,934 152,184 0 0 0 0 0 0 0 956,008 VG PAY 25,039 32,088 40,127 32,467 38,046 0 0 0 0 0 0 0 32,96@ i-29 NO. 21 6 6 13 24 49 0 0 0 0 0 0 119 OT PAY 678,894 157,969 278,088 488,698 1,147,670 2,046,829 0 0 0 0 0 0 4,798,148 VG PAY 32,328 26,328 46,348 37,592 47,820 41,772 0 0 0 0 0 0 40,321 )-34 NO. 12 12 7 7 23 65 13 0 0 0 0 0 139 OT PAY 321,902 406,725 334,446 336,376 1,099,475 3,437,879 621,141 0 0 0 0 0 6,557,944 VG PAY 26,825 33,894 47,778 48,054 47,803 52,890 47,780 0 0 0 0 0 47,175 i-39 NO. 10 11 4 6 16 66 68 17 0 0 0 0 198 OT PAY 313,774 400,703 121,206 238,407 675,828 3,368,433 4,286,042 1,066,062 0 0 0 0 10,470,455 VG PAY 31,377 36,428 30,302 39,735 42,239 51,037 63,030 62,710 0 0 0 0 52,881 )-44 NO. 9 6 6 8 5 62 58 51 12 0 0 0 217 OT PAY 313,036 253,663 249,238 353,042 179,997 3,343,879 3,733,291 3,641,392 784,560 0 0 0 12,852,098 VG PAY 34,782 42,277 41,540 44,130 35,999 53,934 64,367 71,400 65,380 0 0 0 59,22@ i-49 NO. 4 5 7 8 9 45 54 54 46 12 0 0 244 OT PAY 126,626 171,887 271,591 284,317 346,989 1,936,100 2,725,302 3,624,355 3,300,138 800,897 0 0 13,588,202 VG PAY 31,657 34,377 38,799 35,540 38,554 43,024 50,469 67,118 71,742 66,741 0 0 55,685 )-54 NO. 8 6 2 5 6 50 42 32 36 43 3 0 233 OT PAY 204,539 271,807 90,106 161,867 223,492 1,978,557 1,786,207 1,669,323 2,141,679 2,671,339 180,346 0 11,379,262 VG PAY 25,567 45,301 45,053 32,373 37,249 39,571 42,529 52,166 59,491 62,124 60,115 0 48,835 i-59 NO. 7 4 1 2 4 28 36 34 29 20 8 0 173 OT PAY 251,571 142,972 27,753 72,558 171,643 1,155,563 1,571,047 1,808,741 1,785,677 1,181,635 556,788 0 8,725,948 VG PAY 35,939 35,743 27,753 36,279 42,911 41,270 43,640 53,198 61,575 59,082 69,599 0 50,435 )-64 NO. 2 4 0 1 3 19 14 18 15 9 2 1 85 OT PAY 43,884 129,271 0 30,581 136,161 738,231 603,278 883,686 902,012 513,413 114,587 44,877 4,139,981 VG PAY 21,942 32,318 0 30,581 45,387 38,854 43,091 49,094 60,134 57,046 57,294 44,877 47,04' i+ NO. 0 1 0 0 1 11 3 4 6 1 0 1 25 OT PAY 0 24,433 0 0 31,112 432,934 152,541 203,456 324,431 78,710 0 49,357 1,296,974 VG PAY 0 24,433 0 0 31,112 39,358 50,847 50,864 54,072 78,710 0 49,357 46,321 OT NO. 82 61 41 52 95 395 288 210 144 85 13 2 1,468 OT AMT 2,479,576 2,151,958 1,693,440 2,030,780 4,164,551 18,438,405 15,478,849 12,897,015 9,238,497 5,245,994 851,721 94,234 74,765,020 VG AMT 30,239 35,278 41303 39,053 43,837 46,680 53,746 61,414 64,156 61,718 65,517 47,117 50,93C GRS Item # 4 Attachment number 1 \nPage 4; ACTIVE PARTICIPANT DISTRIBUTION HAZARDOUS DUTY MEMBERS Years of Service to Valaafion Date Age Groap 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25-29 30-34 35+ 20-24 NO. 1 1 4 0 1 0 0 0 0 0 0 TOT PAY 44,471 52,702 199,091 0 51,472 0 0 0 0 0 0 AVG PAY 44,471 52,702 49,773 0 51,472 0 0 0 0 0 0 25-29 NO. 6 0 4 2 12 12 0 0 0 0 0 TOT PAY 275,942 0 205,298 114,541 758,949 776,980 0 0 0 0 0 AVG PAY 45,990 0 51,325 57,271 63,246 64,748 0 0 0 0 0 30-34 NO. 0 0 6 3 9 33 4 0 0 0 0 TOT PAY 0 0 308,027 174,177 534,261 2,188,845 304,210 0 0 0 0 AVG PAY 0 0 51,338 58,059 59,362 66,329 76,053 0 0 0 0 35-39 NO. 2 1 0 1 6 29 43 8 0 0 0 TOT PAY 98,058 52,743 0 60,438 357,150 1,883,185 3,298,490 625,784 0 0 0 AVG PAY 49,029 52,743 0 60,438 59,525 64,937 76,709 78,223 0 0 0 40-44 NO. 1 1 2 2 1 31 37 30 5 0 0 TOT PAY 44,471 57,823 92,980 123,070 61,693 2,070,340 2,811,036 2,571,128 417,985 0 0 AVG PAY 44,471 57,823 46,490 61,535 61,693 66,785 75,974 85,704 83,597 0 0 45-49 NO. 0 0 0 1 1 9 9 28 23 2 0 TOT PAY 0 0 0 61,648 70,848 561,072 727,130 2,337,479 2,021,142 204,094 0 AVG PAY 0 0 0 61,648 70,848 62,341 80,792 83,481 87,876 102,047 0 50-54 NO. 0 1 0 0 0 2 1 2 6 7 1 TOT PAY 0 111,150 0 0 0 133,653 71,080 187,321 496,425 641,922 82,423 AVG PAY 0 111,150 0 0 0 66,827 71,080 93,661 82,738 91,703 82,423 55-59 NO. 0 0 0 0 0 3 2 2 2 0 3 TOT PAY 0 0 0 0 0 214,941 154,004 168,123 185,976 0 251,848 AVG PAY 0 0 0 0 0 71,647 77,002 84,062 92,988 0 83,949 60-64 NO. 0 0 0 0 1 1 0 1 0 1 0 TOT PAY 0 0 0 0 65,317 73,044 0 85,170 0 87,602 0 AVG PAY 0 0 0 0 65,317 73,044 0 85,170 0 87,602 0 65+ NO. 0 0 0 0 0 1 0 0 0 0 0 TOT PAY 0 0 0 0 0 69,175 0 0 0 0 0 AVGPAY 0 0 0 0 0 69,175 0 0 0 0 0 OT NO. 10 4 16 9 31 121 96 71 36 10 4 OT AMT 462,942 274,418 805,396 533,874 1,899,690 7,971,235 7,365,950 5,975,005 3,121,528 933,618 334,271 VG AMT 46,294 68,605 50,337 59,319 61,280 65,878 76,729 84,155 86,709 93,362 83,568 35 Totals 0 7 0 347,736 0 49,677 0 36 0 2,131,710 0 59,214 0 55 0 3,509,520 0 63,809 0 90 0 6,375,848 0 70,843 0 110 0 8,250,526 0 75,005 0 73 0 5,983,413 0 81,965 0 20 0 1,723,974 0 86,199 0 12 0 974,892 0 81,241 0 4 0 311,133 0 77,783 0 1 0 69,175 0 0 0 408 0 29,677,927 0 72,740 GRS Item # 4 )-24 NO. OT PAY VG PAY i-29 NO. OT PAY VG PAY )-34 NO. OT PAY VG PAY i-39 NO. OT PAY VG PAY )-44 NO. OT PAY VG PAY i-49 NO. OT PAY VG PAY )-54 NO. OT PAY VG PAY i-59 NO. OT PAY VG PAY )-64 NO. OT PAY VG PAY i+ NO. OT PAY VG PAY Attachment number 1 \nPage 4i 36 ACTIVE PARTICIPANT DISTRIBUTION NON-HAZARDOUS DUTY MEMBERS Years ofService to Valuation Date 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25-29 30-34 35+ Totals 8 5 4 2 3 0 0 0 0 0 0 0 22 180,879 139,826 121,921 64,934 100,712 0 0 0 0 0 0 0 608,272 22,610 27,965 30,480 32,467 33,571 0 0 0 0 0 0 0 27,649 15 6 2 11 12 37 0 0 0 0 0 0 83 402,952 157,969 72,790 374,157 388,721 1,269,849 0 0 0 0 0 0 2,666,438 26,863 26,328 36,395 34,014 32,393 34,320 0 0 0 0 0 0 32,126 12 12 1 4 14 32 9 0 0 0 0 0 84 321,902 406,725 26,419 162,199 565,214 1,249,034 316,931 0 0 0 0 0 3,048,424 26,825 33,894 26,419 40,550 40,372 39,032 35,215 0 0 0 0 0 36,291 8 10 4 5 10 37 25 9 0 0 0 0 108 215,716 347,960 121,206 177,969 318,678 1,485,248 987,552 440,278 0 0 0 0 4,094,607 26,965 34,796 30,302 35,594 31,868 40,142 39,502 48,920 0 0 0 0 37,913 8 5 4 6 4 31 21 21 7 0 0 0 107 268,565 195,840 156,258 229,972 118,304 1,273,539 922,255 1,070,264 366,575 0 0 0 4,601,572 33,571 39,168 39,065 38,329 29,576 41,082 43,917 50,965 52,368 0 0 0 43,005 4 5 7 7 8 36 45 26 23 10 0 0 171 126,626 171,887 271,591 222,669 276,141 1,375,028 1,998,172 1,286,876 1,278,996 596,803 0 0 7,604,789 31,657 34,377 38,799 31,810 34,518 38,195 44,404 49,495 55,609 59,680 0 0 44,472 8 5 2 5 6 48 41 30 30 36 2 0 213 204,539 160,657 90,106 161,867 223,492 1,844,904 1,715,127 1,482,002 1,645,254 2,029,417 97,923 0 9,655,288 25,567 32,131 45,053 32,373 37,249 38,436 41,832 49,400 54,842 56,373 48,962 0 45,330 7 4 1 2 4 25 34 32 27 20 5 0 161 251,571 142,972 27,753 72,558 171,643 940,622 1,417,043 1,640,618 1,599,701 1,181,635 304,940 0 7,751,056 35,939 35,743 27,753 36,279 42,911 37,625 41,678 51,269 59,248 59,082 60,988 0 48,143 2 4 0 1 2 18 14 17 15 8 2 1 84 43,884 129,271 0 30,581 70,844 665,187 603,278 798,516 902,012 425,811 114,587 44,877 3,828,848 21,942 32,318 0 30,581 35,422 36,955 43,091 46,972 60,134 53,226 57,294 44,877 45,582 0 1 0 0 1 10 3 4 6 1 0 1 27 0 24,433 0 0 31,112 363,759 152,541 203,456 324,431 78,710 0 49,357 1,227,799 0 24,433 0 0 31,112 36,376 50,847 50,864 54,072 78,710 0 49,357 45,474 0 T NO. 72 57 25 43 64 274 192 139 108 75 9 2 1,060 0 T AMT 2,016,634 1,877,540 888,044 1,496,906 2,264,861 10,467,170 8,112,899 6,922,010 6,116,969 4,312,376 517,450 94,234 45,087,093 VG AMT 28,009 32,939 35,522 34,812 35388 38,201 42,255 49,799 56,639 57,498 57,494 47,117 42,535 GRS ��:�� Attachment number 1 \nPage 4 37 INACTIVE PARTICIPANT DISTRIBUTION Deceasedwith Terminated Vested Disabled Retired Beneficiar Total Total Total Total Age Group Number Benefits Number Benefits Number Benefits Number Benefits Under 20 - - - - - - 9 122,579 20-24 - - - - - - - - 25-29 - - - - - - - - 30-34 - - - - - - - - 35-39 4 74,375 - - - - - - 40-44 10 161,420 4 147,081 8 307,064 3 58,245 45-49 15 303,671 7 276,874 26 1,043,225 3 39,789 50-54 17 427,145 21 616,819 49 2,247,336 4 106,997 55-59 6 108,019 28 693,549 177 7,266,426 15 334,594 60-64 10 163,826 31 793,556 178 6,896,775 10 194,136 65-69 - - 17 331,097 149 4,796,100 10 186,240 70-74 - - 14 307,924 71 2,104,929 24 426,786 75-79 - - 9 166,944 38 1,065,654 21 290,349 80-84 - - 5 90,602 21 415,533 16 284,663 85-89 - - 2 6,881 18 279,377 12 84,081 90-94 - - - - 5 54,773 4 10,815 95-99 - - - - 1 4,304 - - 100 & Over - - - - - - - - Total 62 1,238,456 138 3,431,327 741 26,481,496 131 2,139,274 Avera e e 51 62 64 68 GRS Item # 4 Attachment number 1 \nPage 4� SECTION F SUMMARY OF PLAN PROVISIONS GRS Item # 4 SUMMARY OF PLAN PROVISIONS A. Ordinances Attachment number 1 \nPage 4! 38 The Plan was established under the Code of Ordinances for the City of Clearwater, Florida, Chapter 2, Article V, Division 3 and was most recently amended under Ordinance No. 7466-OS passed and adopted on March 14, 2006. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes (F.S.) and the Internal Revenue Code. B. Effective Date Restated Plan Effective Date: January 1, 1996. C. Pian Year January 1 through December 31. D. Type of Pian Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer plan. E. Eiigibiiity Requirements All full-time permanent employees of the City are required to participate and become participants on their date of hire. F. Credited Service Credited Service is measured as the total number of years and fractional parts of years from the date of employment to the date of termination or retirement. No service is credited for any periods of employment for which a participant received a refund of their contributions. G. Compensation The total compensation for services rendered to the City reportable on the participant's W-2 form, plus all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions or salary reductions, but excluding any lump sum payments of unused vacation and sick leave, pay for off-duty employment, and clothing, car or meal allowances. H. Average Monthly Compensation (AMC) One-twelfth of the average of Compensation during the highest 5 years out of the last 10 years preceding termination or retirement. GRS em Attachment number 1 \nPage 5i 39 I. Normai Retirement Eligibility Benefit Normal Form of Benefit: COLA For Non-Hazardous Duty Employment A participant may retire on the iirst day of the month coincident with or next following the earliest of: (1) age 55 with 20 years of Credited Service, or (2) 30 years of Credited Service regardless of age, or (3) age 65 with 10 years of Credited Service. For Hazardous Duty Employment-Police Officers and Firefi�hters A participant may retire on the iirst day of the month coincident with or next following the earlier of: (1) age 55 with 10 years of Credited Service, or (2) 20 years of Credited Service regardless of age. 2.75% of AMC multiplied by years of Credited Service. A monthly annuity is paid for the life of the participant. After the participant's death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. J. Early Retirement Eligibility: Benefit Normal Form of Benefit: COLA Police Officers and Firefighters may elect to retire earlier than the Normal Retirement Eligibility upon the attainment of age 50 with 10 years of Credited Service. The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early Retirement date precedes age 55. A monthly annuity is paid for the life of the participant. After the participant's death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. GRS em Attachment number 1 \nPage 5 40 K. Delayed Retirement Same as Normal Retirement taking into account Compensation earned and service credited until the date of actual retirement. L. Service Connected Disability Eligibility: Any participant who becomes totally and permanently disabled due to an illness or injury contracted in the line of duty and is deemed to be unable to perform useful and efficient service to the City is immediately eligible for a disability benefit. Benefit Participant's accrued Normal Retirement Benefit taking into account Compensation earned and service credited until the date of disability. Benefit is guaranteed to be no less than 66 2/3% of the participant's AMC. Disability benefits, when combined with Worker's Compensation benefits, cannot exceed and will be limited to 100% of the participant's AMC on the date of disability. Normal Form of Benefit: COLA A monthly annuity is paid for the life of the participant. After the participant's death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. M. Non-Service Connected Disability Eligibility: Any participant who has 10 or more years of Credited Service and becomes totally and permanently disabled and is deemed to be unable to perform useful and efficient service to the City is immediately eligible for a disability benefit. Benefit Participant's accrued Normal Retirement Benefit taking into account Compensation earned and service credited until the date of disability. Disability benefits, when combined with Worker's Compensation benefits, cannot exceed and will be limited to 100% of the participant's AMC on the date of disability. Normal Form of Benefit: COLA A monthly annuity is paid for the life of the participant. After the participant's death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. GRS em Attachment number 1 \nPage 5; 41 N. Death in the Line of Duty Eligibility: Any participant whose employment is terminated by reason of death in the line of duty is eligible for survivor benefits. Bene�t Bene�ciary will be paid the participant's accrued benefit based upon Credited Service and AMC as of the date of death. Benefit is guaranteed to be no less than 66 2/3% of the participant's AMC. Normal Form of Benefit 100% of the participant's accrued benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. In lieu of the benefits described above, the participant's beneficiary can elect to receive a refund of participant's accumulated contributions with interest. O. Other Pre-Retirement Death Eligibility: Any participant who dies with 10 or more years of Credited Service is eligible for survivor benefits. Bene�t Bene�ciary will be paid the participant's accrued benefit based upon Credited Service and AMC as of the date of death. Normal Form of Benefit: 100% of the participant's accrued benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. In lieu of the benefits described above, a participant's beneficiary can elect to receive a refund of the participant's accumulated contributions with interest. Accumulated contributions, plus interest, will be refunded for all participants with less than 10 years of Credited Service. P. Post Retirement Death Benefit deterniined by the form of benefit elected upon retirement. GRS em Attachment number 1 \nPage 5; 42 Q. Optionai Forms In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are a Single Life Annuity, a 10 Year Certain and Life Annuity, or the 50%, 66 2/3% (for police officers and firefighters), 75% or 100% Joint and Survivor options. R. Vested Termination Eligibility: A participant has earned a non-forfeitable right to Plan benefits after the completion of 10 years of Credited Service provided employee contributions are not refunded. Vesting is determined in accordance with the following table. % of Normai Years of Credited Retirement Service Benefits Less Than 10 0% 10 or more 100% Benefit: The participant's accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the member's Normal Retirement date. Alternatively, police officers and firefighters may elect to receive an actuarially reduced Early Retirement Benefit any time after age 50. Normal Form of Benefit A monthly annuity is paid for the life of the participant. After the participant's death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of the original amount. The survivor annuity ceases upon death or remarriage of the spouse. 120 monthly payments are guaranteed for police officers and firefighters. Optional forms of benefits are available. COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. Plan participants with less than 10 years of Credited Service will receive a refund of their own accumulated contributions with interest. S. Refunds Eligibility: All participants terminating employment with less than 10 years of Credited Service are eligible. Optionally, vested members (those with 10 or more years of credited service) may elect a refund in lieu of the vested benefits otherwise due. Benefit: Refund of the member's contributions with 5% simple interest paid in a single lump sum. GRS em Attachment number 1 \nPage 5� 43 T. Member Contributions 8% of Compensation U. Employer Contributions Each plan year, the Employer must contribute a minimum of 7% of the Compensation of all employees participating in the plan, plus any additional amount determined by the actuary needed to fund the plan properly according to State laws. V. Cost of Living Increases 1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least 6 monthly benefit payments. X.13`� Check Not Applicable Y. Deferred Retirement Option Pian Not Applicable Z. Other Anciiiary Benefits There are no ancillary retirement type benefits not required by statutes but which might be deemed a City of Clearwater Employees' Pension Plan liability if continued beyond the availability of funding by the current funding source. AA. Changes from Previous Vaivation There have been no changes from the previous valuation. GRS em Pension Trustees Agenda Council Chambers - City Hall Meeting Date:S/14/2012 SUBJECT / RECOMMENDATION: Determine Trustees' total expected rate of return for the pension plan's investments for the current year, for each of the next several years, and for the long term thereafter. SUMMARY: Florida Statutes 112.661 (9) requires an annual determination of expected investment rates of return be filed with the Florida Department of Management Services, with the plan's sponsor, and with the consulting actuary. Compliance with this requirement has been previously assumed via the Trustees' acceptance of the annual actuary report and related investment rate of return assumption. However the State is requiring a separate determination be agreed upon by the Trustees. Staff is recommending the current plan investment rate of return assumption of 7.5% as the expected annual rate of return for the current year, for each of the next several years, and for the long term thereafter. Review Approval: 1) Off'ice of Management and Budget 2) Lega13) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo ��11�:�� Pension Trustees Agenda Council Chambers - City Hall Meeting Date:S/14/2012 SUBJECT / RECOMMENDATION: Approve the recommended pension plan administrative expenditures for �scal year 2013, totaling $332,000. SUMMARY: The Employees' Pension Plan does not have a legally required annual budget. However, the Trustees must approve all expenditures. The following are routine expenditures that staff is requesting approval of for the sake of administrative efficiency. The recommended expenditures for fiscal 2013, as detailed on the attachment, reflect a$3,500, or 1.04%, decrease from the fiscal 2012 expenditures of $335,500. This decrease is due to a net decrease in General Fund employee costs to administer the plan. Printing and binding expenditures are for the State statutorily required annual information distribution to pension plan members. Postage expenditures are for necessary mailings, including the annual information distribution to plan members. Membership dues reflect annual dues for the Florida Public Pension Trust Association. Training and travel are for the estimated costs of for pension training, including fiduciary training for trustees and Pension Advisory Committee (PAC) members. This is a not-to-exceed amount given the uncertainty regarding which trustees and PAC members will elect to attend conferences during the year. Reimbursement to the General Fund is for the cost of the oversight and administration of the Plan, and is recognized as revenue to the General Fund. This reimbursement covers the services provided by Human Resources, Payroll, and Finance personnel. The firm of Klausner, Kaufman, Jensen and Levinson serves as the plan's pension attorney. Annual attorney fees also include medical bills for medical services authorized by the Pension Advisory Committee. Total paid in FY2011 was $120,148 and FY2012 YTD is $21,733. We are budgeting for a Referendum for proposed pension plan changes. Money manager, safekeeping, actuary, and pension administration fees are all governed by contracts approved by the Trustees and are not included in this approved budget. Review Approval: 1) Off'ice of Management and Budget 2) Lega13) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk Cover Memo ��11�:�� City of Clearwater Employees' Pension Plan Administrative Expenses Budget Description Printing & Binding Postage Memberships Misc Training Travel Expense Physicals Reimbursement to General Fund (Human Resources) Reimbursement to General Fund (Accounting & Finance) Reimbursement to General Fund (Payroll & IT) Pension Attorney Referendum Totals Attachment number 1 \nPage 1 Increase/ Fiscal Year 2013 Fiscal Year 2012 Decrease $ 400 $ 400 $ - 400 400 - 600 600 - 100 100 - 5, 000 5, 000 - 3, 000 3, 000 - 30,000 30,000 - 42,000 49,000 (7,000) 19,500 19,000 500 76,000 73,000 3,000 140,000 140,000 - 15,000 15,000 - $ 332,000 $ 335,500 $ (3,500) I[�'ii�:��