04/14/2014
PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 4/14/2014- 1:00 PM
1. Call to Order
2. Approval of Minutes
2.1Approve the minutes of the March 17, 2014 Pension Trustees meeting as submitted in written summation
by the City Clerk.
Attachments
3. Citizens to be Heard re Items Not on the Agenda
4. Pension Trustee Items
4.1Accept the January 1, 2014 Annual Actuarial Valuation for the Employees' Pension Plan.
Attachments
4.2Annual review of the Employees' Pension Plan investment performance for the calendar and plan year
ended December 31, 2013.
Attachments
4.3Determine Trustees' 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
4.4Approve the new hires for acceptance into the Pension Plan as listed.
Attachments
4.5Approve the following request of employees Douglas Stocker, Solid Waste and General Services
Department, and Daniel Brown, Parks and Recreation Department; for a regular pension as provided by
Sections 2.416 and 2.424 of the Employees’ Pension Plan.
Attachments
5. Other Business
6. Adjourn
Pension Trustees Agenda
Council Chambers - City Hall
Meeting Date:4/14/2014
SUBJECT / RECOMMENDATION:
Approve the minutes of the March 17, 2014 Pension Trustees meeting as submitted in written summation by the City Clerk.
SUMMARY:
Review Approval:
Cover Memo
Item # 1
Pension Trustees 2014-03-14 1
TRUSTEES OF THE EMPLOYEES’ PENSION FUND MEETING MINUTES
CITY OF CLEARWATER
March 17, 2014
Present: Chair/Trustee George N. Cretekos, Trustee Paul Gibson, Trustee
Doreen Hock-DiPolito, Trustee Bill Jonson, Trustee Jay Polglaze
Also Present: William B. Horne II - City Manager, Jill S. Silverboard - Assistant City
Manager, Rod Irwin - Assistant City Manager, Pamela K. Akin - City
Attorney, Rosemarie Call - City Clerk, Nicole Sprague – Official
Records and Legislative Services Coordinator
To provide continuity for research, items are listed in agenda order although not
necessarily discussed in that order.
Unapproved
1.
Call to Order – Chair George N. Cretekos
The meeting was called to order at 1:06 p.m. at City Hall.
2. Approval of Minutes 2.1
Approve the minutes of the February 18, 2014 Pension Trustees meeting as
submitted in written summation by the City Clerk.
Trustee Bill Jonson moved to approve the minutes of the February 18, 2014 Pension
Trustees meeting as submitted in written summation by the City Clerk. The motion was
duly seconded and carried unanimously.
3.
Citizens to be Heard re Items Not on the Agenda – None.
4. Pension Trustee Items 4.1
Approve the new hires for acceptance into the Pension Plan as listed.
Pension
Name, Job. Class, & Dept./Div. Hire Date Elig. Date
Stephanie Stutz, Legal Staff Assistant, Legal Dept 1/13/2014 1/13/2014
Ashley Adams, Cust Sv Acct Rep, Marine and Av Dept 1/22/2014 1/22/2014
Matthew Mosier, Water Dist Op Trainee, Public Util Dept 1/27/2014 1/27/2014
Tracy Weaver, Solid Waste Worker, Solid Waste Dept 1/27/2014 1/27/2014
Draft
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Item # 1
Pension Trustees 2014-03-14 2
Adam Wall, Police Officer, Police Department 1/27/2014 1/27/2014
Richard Edmonds, Police Officer, Police Department 1/27/2014 1/27/2014
Francisco Micheo, Police Officer, Police Department 1/27/2014 1/27/2014
Adrian P. Washington, Police Officer, Police Dept 1/27/2014 1/27/2014
Calvin Strong, Police Property Clerk, Police Department 1/27/2014 1/27/2014
Valerie Mathre, Librarian I, Library Department 1/27/2014 1/27/2014
James Alton, Parks Service Tech I, Parks and Rec Dept 1/27/2014 1/27/2014
Jeffrey Knight, Parks Service Tech I, Parks and Rec Dept 1/27/2014 1/27/2014
Alessandra Scorcioni, Cust Serv Coord, Cust Service Dept 1/27/2014 1/27/2014
Michael Bird, Parks Service Tech I, Parks and Rec Dept 1/27/2014 1/27/2014
Wesley Grat, Water Distribution OpTrainee, Public Util Dept 1/27/2014 1/27/2014
James Copechal, Equipment Operator, Parks and Rec Dept 1/28/2014 1/28/2014
Trustee Doreen Hock-DiPolito moved to approve the new hires for acceptance into the
Pension Plan as listed. The motion was duly seconded and carried unanimously.
4.2
Approve the following request of employees Scott Bennett, Solid Waste and
General Services Department; Donald Bowen, Public Utilities Department; and
Christopher Hunter, Engineering Department; for a regular pension as provided
by Sections 2.416 and 2.424 of the Employees Pension Plan.
Scott Bennett, Licensed Electrician, Solid Waste and General Services
Department, was employed by the City on November 19, 1984 and his pension
service credit is effective on that date. His pension will be effective April 1, 2014.
Based on an average salary of approximately $56,096.59 over the past five years,
the formula for computing regular pensions and Mr. Bennett’s selection of the
100% Joint and Survivor Annuity, this pension benefit will be approximately
$39,834.60 annually.
Donald Bowen, Water Distribution Operator, Public Utilities Department, was
employed by the City on March 31, 1986 and his pension service credit is
effective on that date. His pension will be effective on February 1, 2014. Based
on an average salary of approximately $42,123.08 over the past five years, the
formula for computing regular pensions, Mr. Bowen’s selection of the 100% Joint
and Survivor Annuity and a 30% lump sum distribution, this pension benefit will be
approximately $21,877.20 annually.
Christopher Hunter, Stormwater Technician III, Engineering Department, was
employed by the City on September 9, 1991 and his pension service credit is
effective on that date. His pension will be effective February 1, 2014. Based on
an average salary of approximately $52,338.52 over the past five years, the
formula for computing regular pensions and Mr. Hunter’s selection of the Single
Life Annuity, this pension benefit will be approximately $32,232.60 annually.
Draft
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Item # 1
Pension Trustees 2014-03-14 3
Section 2.416 provides for normal retirement eligibility for non-hazardous duty
employees hired prior to the effective date of this reinstatement (January 1, 2013),
a member shall be eligible for retirement following the earlier of the date on which
a participant has reached the age of 55 years and completed twenty years of
credited service; the date on which a participant has reached age sixty-five years
and completed ten years of credited service; or the date on which a member has
completed thirty years of service regardless of age. For non-hazardous duty
employees hired on or after the effective date of this restatement, a member shall
be eligible for retirement following the earlier of the date on which a participant
has reached the age of sixty years and completed twenty-five years of credited
service; or the date on which a participant has reached the age of sixty-five years
and completed ten years of credited service. Mr. Bennett, Mr. Bowen and Mr.
Hunter have met the non-hazardous duty criteria.
Section 2.416 provides for normal retirement eligibility for hazardous duty
employees, a member shall be eligible for retirement following the earlier of the
date on which the participant has completed twenty years of credited service
regardless of age, or the date on which the participant has reached fifty five (55)
years and completed ten (10) years of credited service.
Trustee Jay Polglaze moved to approve the following request of employees Scott
Bennett, Solid Waste and General Services Department; Donald Bowen, Public Utilities
Department; and Christopher Hunter, Engineering Department; for a regular pension as
provided by Sections 2.416 and 2.424 of the Employees Pension Plan. The motion was
duly seconded and carried unanimously.
4.3
Approve the request of employees Pasquale Calabrese, Police Department and
Peggy Franco, Planning and Development Services Department, to vest their
pensions as provided by Section 2.419 of the Employees Pension Plan.
Pasquale Calabrese, Police Officer, Police Department, was employed by the City
on May 20, 2003, and began participating in the Pension Plan on that date. Mr.
Calabrese terminated from City employment on August 20, 2013.
Peggy Franco, Code Enforcement Inspector, Planning and Development Services
Department, was employed by the City on February 25, 2002 and began
participating in the Pension Plan on that date. Ms. Franco terminated from City
employment on January 29, 2014.
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 or more years of creditable service (pension participation),
such employee shall acquire a vested interest in the retirement benefits. Vested
Draft
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Item # 1
Pension Trustees 2014-03-14 4
pension payments commence on the first of the month following the month in
which the employee normally would have been eligible for retirement.
Section 2.416 provides for normal retirement eligibility for non-hazardous duty
employees hired prior to the effective date of this reinstatement (January 1, 2013),
a member shall be eligible for retirement following the earlier of the date on which
a participant has reached the age of 55 years and completed twenty years of
credited service; the date on which a participant has reached age sixty-five years
and completed ten years of credited service; or the date on which a member has
completed thirty years of service regardless of age. For non-hazardous duty
employees hired on or after the effective date of this restatement, a member shall
be eligible for retirement following the earlier of the date on which a participant
has reached the age of sixty years and completed twenty-five years of credited
service; or the date on which a participant has reached the age of sixty-five years
and completed ten years of credited service. Ms. Franco will meet the non-
hazardous duty criteria and begin collecting a pension in March 2032.
Section 2.416 provides for normal retirement eligibility for hazardous duty
employees, a member shall be eligible for retirement following the earlier of the
date on which the participant has completed twenty years of credited service
regardless of age, or the date on which the participant has reached fifty-five years
and completed ten years of credited service. Mr. Calabrese will meet the
hazardous duty criteria and be eligible for a normal retirement in April 2019.
Trustee Paul Gibson moved to approve the request of employees Pasquale Calabrese,
Police Department and Peggy Franco, Planning and Development Services
Department, to vest their pensions as provided by Section 2.419 of the Employees
Pension Plan. The motion was duly seconded and carried unanimously.
5.
Other Business – None.
6.
Adjourn
The meeting adjourned at 1:08 p.m.
Chair
Employees’ Pension Plan Trustees
Attest
City Clerk
Draft
Attachment number 1 \nPage 4 of 4
Item # 1
Pension Trustees Agenda
Council Chambers - City Hall
Meeting Date:4/14/2014
SUBJECT / RECOMMENDATION:
Accept the January 1, 2014 Annual Actuarial Valuation for the Employees' Pension Plan.
SUMMARY:
Per the actuary report dated January 1, 2014, a minimum City employer contribution of $10.8 million, or 14.53% of covered payroll, is
required for fiscal year 2015. This is a decrease of $8.8 million over the fiscal 2014 required contribution of $19.6 million, or 26.33% of
covered payroll.
If the City had not implemented pension reforms effective January 1, 2013, it is estimated that the required fiscal year 2015 employer
contribution would be $15.2 million (20.4% of covered payroll), or $4.4 million greater than currently required.
The net decrease in the required contribution of $8.8 million versus the prior year is primarily due to improved investment earnings
experience. The calendar year 2013 investment return was 16.90% net of investment fees, versus the assumed rate of 7.0%. The
excellent 2013 investment return, along with the fact that the negative (27.01%) investment loss from 2008 dropped from the plan’s five
year actuarial value “smoothing”, resulted in an improvement in the “five-year smoothed” investment return based on the actuarial
value of assets from 5.50% for the prior year to 14.04% for the current year valuation. Calendar 2009 thru 2013 investment returns were
30.93%, 17.50%, (0.32%), 13.92%, and 16.90%, respectively.
The plan's credit balance, which reflects actual contributions in excess of actuarially required contributions for prior years, decreased
from $6,343,864 to $5,390,884 during calendar 2013. This $952,980 decrease resulted from the use of approximately $1.4 million of the
credit balance to subsidize current year employer contributions, offset by interest earnings on the credit balance.
The Plan's funded ratio is 93.2% versus 92.2% for the prior year based on the Frozen Entry Age funding method, which is currently
used. For comparability to other plans, the actuary notes in the report that the current funded ratio is 97.0% based on the more
commonly used Entry Age Normal funding method.
The Actuarial Value of Assets exceeds the Market Value of Assets by $74.6 million as of January 1, 2014. If Market Value had been the
valuation basis, the actuarially required contribution rate would have been less than the City’s minimum 7% contribution rate.
The significant current year decrease in the City’s required contribution rate reflects the high level of volatility, relative to other pension
plans, of the City’s plan to changes in investment earnings. This volatility in required employer contributions from year to year
necessitates building reserves, such as the plan’s credit balance, during periods of positive investment earnings experience. This
provides the City the ability to subsidize increased employer contributions during periods of negative investment earnings experience
with contributions from reserves.
Review Approval:1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk
Cover Memo
Item # 2
CITY OF CLEARWATER EMPLOYEES’ PENSION PLAN
ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2014
ANNUAL EMPLOYER CONTRIBUTION FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2015
Attachment number 1 \nPage 1 of 59
Item # 2
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Item # 2
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TABLE OF CONTENTS
Section Title Page
A Discussion of Valuation Results 1
B Valuation Results
1. Participant Data 4
2. Annual Required Contribution 5
3. Actuarial Value of Benefits and Assets 6
4. Calculation of Employer Normal Cost 7
5. Reconciliation of Credit Balance 8
6. Liquidation of the Unfunded Actuarial
Accrued Liability 9
7. Actuarial Gains and Losses 11
8. Recent History of Valuation Results 15
9. Recent History of Contributions 16
10. Actuarial Assumptions and Cost Method 17
11. Glossary of Terms 24
C Pension Fund Information
1. Statement of Plan Assets at Market Value 27
2. Reconciliation of Plan Assets 28
3. Development of Actuarial Value of Assets 29
4. Investment Rate of Return 30
D Financial Accounting Information
1. FASB No. 35 31
2. GASB No. 25 32
E Miscellaneous Information
1. Reconciliation of Membership Data 35
2. Active Participant Distribution 36
3. Inactive Participant Distribution 39
F Summary of Plan Provisions 40
Attachment number 1 \nPage 5 of 59
Item # 2
SECTION A
DISCUSSION OF VALUATION RESULTS
Attachment number 1 \nPage 6 of 59
Item # 2
1
DISCUSSION OF VALUATION RESULTS
Comparison of Required Employer Contributions
The required employer contribution developed in this year's valuation is compared below to last
year's results:
Required Employer/State Contribution $10,803,098 $19,608,078 $(8,804,980)
As % of Covered Payroll 14.55 %26.35 %(11.80)%
Estimated State Contribution 12,000 12,000 0
As % of Covered Payroll 0.02 %0.02 %0.00 %
Required Employer Contribution 10,791,098 19,596,078 (8,804,980)
As % of Covered Payroll 14.53 %26.33 %(11.80)%
Credit Balance 5,390,884 6,343,864 (952,980)
1/1/2014
Valuation (Decrease)
Increase
Valuation
1/1/2013
For FYE 9/30/2015 For FYE 9/30/2014
Based onBased on
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 2014 and 2015 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, 2013 were
$18,199,028 and $12,000, respectively, for a total of $18,211,028. After $1,397,050 of the credit balance is
included, the total is equal to the annual required contribution of $19,608,078 for that year.
The minimum required City contribution is 7% of covered payroll.
Attachment number 1 \nPage 7 of 59
Item # 2
2
Revisions in Benefits
There have been no revisions in benefits since the last valuation.
Revisions in Actuarial Assumptions or Methods
There have been no revisions in actuarial assumptions or methods since the last valuation.
Actuarial Experience
There was a net actuarial experience gain of $62,452,347 during the year, which means that actual
experience was more favorable than expected. The gain is primarily due to recognized investment return
(on the smoothed actuarial value of assets) above the assumed rate of 7.0%. The investment return was
16.90% based on the market value of assets and 14.04% based on the actuarial value of assets. In
addition to the investment gains, there were additional experience gains due to lower than expected salary
increases (3.16% actual versus 4.07% expected), fewer than expected retirements (27 actual versus 42
expected), and more non-vested terminations than expected. The actuarial experience gain caused the
required employer contribution to decrease by 11.80% of covered payroll.
Analysis of Change in Employer Contribution
The components of change in the required City contribution are as follows:
Contribution Rate Last Year 26.33 %
Change in Benefits 0.00
Change in Assumptions and Methods 0.00
Amortization Payment on UAAL 0.01
Experience Gain/Loss (11.80)
Change in Administrative Expenses (0.01)
Change in State Revenue 0.00
Contribution Rate This Year 14.53
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 93.2% this year compared to 92.2% last year.
For information purposes, this year’s funded ratio is 97.0% under the Entry Age Normal funding
method (compared to 88.9% under the Entry Age Normal funding method last year). The Entry Age
Normal funding method is the method required under the new GASB Nos. 67 and 68 requirements (GASB
Attachment number 1 \nPage 8 of 59
Item # 2
3
No. 67 becomes effective September 30, 2014). If the Entry Age Normal funding method were used for this
actuarial valuation, the City’s contribution requirement would have been 16.91% of covered payroll.
Variability 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-year.
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 Market Value of Assets exceeds the Actuarial Value of Assets by $74,555,861 as of the
valuation date (see Section C). This difference will be phased in over the next few years in the absence of
offsetting losses. In turn, the computed employer contribution rate is projected to decline. If there are no
other experience gains or losses and the return on the market value of assets is 7.0% in 2014 (net of
investment expenses) as assumed, it is projected that the City contribution requirement as of January 1,
2015 for the fiscal year ending September 30, 2015 will be approximately 10%-11% of covered payroll.
Relationship to Market Value
If Market Value had been the basis for the valuation (under a method change), the City
contribution rate would have been less than 7.0% of covered payroll (and therefore floored at the
minimum City contribution rate of 7.0% of covered payroll), and the funded ratio would have been
102.2%. If the Market Value and the Entry Age Normal funding method had been used, the City
contribution rate would have been of 11.97% covered payroll (equal to the employer Normal Cost rate
under Entry Age Normal) and the funded ratio would have been 106.4%.
Conclusion
The remainder of this Report includes detailed actuarial valuation results, financial information,
miscellaneous information and statistics, and a summary of plan provisions.
Attachment number 1 \nPage 9 of 59
Item # 2
SECTION B
VALUATION RESULTS
Attachment number 1 \nPage 10 of 59
Item # 2
4
ACTIVE MEMBERS
Number 1,478 1,474
Covered Annual Payroll $74,254,159 $74,422,344
Average Annual Payroll $50,240 $50,490
Average Age 44.9 44.7
Average Past Service 11.4 11.2
Average Age at Hire 33.5 33.5
RETIREES & BENEFICIARIES
Number 950 926
Annual Benefits $32,465,115 $30,933,396
Average Annual Benefit $34,174 $33,405
Average Age 65.4 65.0
DISABILITY RETIREES
Number 134 137
Annual Benefits $3,513,703 $3,484,574
Average Annual Benefit $26,222 $25,435
Average Age 62.8 62.7
TERMINATED VESTED MEMBERS
Number 60 64
Annual Benefits $1,195,914 $1,391,286
Average Annual Benefit $19,932 $21,739
Average Age 50.2 51.0
PARTICIPANT DATA
January 1, 2014 January 1, 2013
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Item # 2
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A.Valuation Date
B.ARC to Be Paid During
Fiscal Year Ending 9/30/2015 9/30/2014
C.Assumed Date of Employer Contrib.Evenly during first Evenly during first
two quarters of two quarters of
fiscal year fiscal year
D.Annual Payment to Amortize
Unfunded Actuarial Liability $5,470,314 $5,479,806
E.Employer Normal Cost 4,626,039 12,845,501
F.ARC if Paid on the Valuation
Date: D+E 10,096,353 18,325,307
G.ARC Adjusted for Frequency of
Payments 10,803,098 19,608,078
H.ARC as % of Covered Payroll 14.55 %26.35 %
I.Assumed Rate of Increase in Covered
Payroll to Contribution Year 0.00 %0.00 %
J.Covered Payroll for Contribution Year 74,254,159 74,422,344
K.ARC for Contribution Year: H x J 10,803,098 19,608,078
L.Estimate of State Revenue in
Contribution Year 12,000 12,000
M.Required Employer Contribution (REC)
in Contribution Year 10,791,098 19,596,078
N.REC as % of Covered Payroll in
Contribution Year: M ÷ J 14.53 %26.33 %
O.Credit Balance 5,390,884 6,343,864
ANNUAL REQUIRED CONTRIBUTION (ARC)
January 1, 2014 January 1, 2013
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A.Valuation Date
B.Actuarial Present Value of All Projected
Benefits for
1.Active Members
a. Service Retirement Benefits $ 345,222,416 $ 342,143,347
b. Vesting Benefits 35,888,993 36,896,909
c. Disability Benefits 15,029,852 15,225,720
d. Preretirement Death Benefits 5,801,993 5,914,691
e. Return of Member Contributions 2,348,704 2,381,831
f. Total 404,291,958 402,562,498
2.Inactive Members
a. Service Retirees & Beneficiaries 441,024,025 422,898,007
b. Disability Retirees 47,629,618 47,555,489
c. Terminated Vested Members 14,311,837 16,774,341
d. Total 502,965,480 487,227,837
3. Total for All Members 907,257,438 889,790,335
C.Actuarial Accrued (Past Service)
Liability per GASB No. 25 (FEA Method)828,489,285 746,701,092
D.Actuarial Accrued Liability under
EAN Method 795,927,127 774,749,811
E.Actuarial Value of Accumulated Plan
Benefits per FASB No. 35 755,555,771 729,923,831
F.Plan Assets
1.Market Value 846,966,929 735,778,899
2. Actuarial Value 772,411,068 688,731,221
G.Actuarial Present Value of Projected
Covered Payroll 566,718,213 577,759,869
H.Actuarial Present Value of Projected
Member Contributions 50,212,634 51,147,742
I.Accumulated Value of Active Member
Contributions 57,394,630 54,638,467
J.Funded Ratio Based on Plan's Funding
Method (FEA) = F.2. / C.93.23%92.24%
K.Funded Ratio Based on EAN
Method = F.2. / D.97.05%88.90%
ACTUARIAL VALUE OF BENEFITS AND ASSETS
January 1, 2014 January 1, 2013
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A.Valuation Date
B.Actuarial Present Value of Projected
Benefits $907,257,438 $889,790,335
C.Credit Balance 5,390,884 6,343,864
D.Actuarial Value of Assets 772,411,068 688,731,221
E.Unfunded Actuarial Accrued Liability 56,078,217 57,969,871
F.Actuarial Present Value of Projected
Member Contributions 50,212,634 51,147,742
G.Actuarial Present Value of Projected
Employer Normal Costs: B+C-D-E-F 33,946,403 98,285,365
H.Actuarial Present Value of Projected
Covered Payroll 566,718,213 577,759,869
I.Employer Normal Cost Rate: G/H 5.99 %17.01 %
J.Covered Annual Payroll 74,254,159 74,422,344
K.Employer Normal Cost: I x J 4,447,824 12,659,241
L.Assumed Amount of Expenses 178,215 186,260
% of Covered Payroll 0.24 %0.25 %
M.Total Employer Normal Cost: K + L 4,626,039 12,845,501
N.Employer Normal Cost as % of
Covered Payroll 6.23 %17.26 %
CALCULATION OF EMPLOYER NORMAL COST
January 1, 2014 January 1, 2013
Attachment number 1 \nPage 14 of 59
Item # 2
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$6,343,864
-19,596,078
+18,199,028
+444,070
5,390,884
Interest on Credit Balance
Credit Balance at End of Year
Credit Balance at Beginning of Year
Required Employer Contribution
Employer Contribution Made
Reconcilation of Credit Balance
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Item # 2
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LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY
1.Last Year's UAAL $57,969,871
2.Employer Normal Cost for Contribution Year 12,845,501
3.Last Year's Contributions 19,608,078 *
4. Interest at the Assumed Rate on:
a.1 and 2 for one year 4,957,076
b.3 from dates paid 86,153
c. a - b 4,870,923
5.This Year's UAAL Prior to Revision:
1 + 2 - 3 + 4c 56,078,217
6.Change in UAAL Due to Plan Amendment 0
7.Change in UAAL Due to Changes in Actuarial Assumptions
and Methods 0
8.This Year's Revised UAAL: 5 + 6 + 7 56,078,217
A. Derivation of the Current UAAL
* Includes portion of credit balance used for year.
B. UAAL Amortization Period and Payments
Date
Established Source Amount
Years
Remaining Amount Payment
1/1/1987 Supplemental FIL 1,519,142$ 3 310,445$ 110,557$
1/1/1988 Supplemental FIL 1,673,738 4 444,469 122,635
1/1/1989 Supplemental FIL 2,177,772 5 703,265 160,299
1/1/1994 Method Change 3,724,296 10 2,080,659 276,859
1/1/1996 Plan Amendment 15,063,842 12 9,530,613 1,121,423
1/1/2000 Plan Amendment 52,921,724 16 39,871,875 3,944,620
1/1/2002 Assumption Changes (30,846,502) 18 (24,750,687) (2,299,561)
1/1/2007 Assumption Changes (14,695,526) 23 (13,155,580) (1,090,732)
1/1/2013 Plan Amendment (24,560,965) 29 (24,271,872) (1,847,581)
1/1/2013 Assumption Changes 66,092,975 29 65,315,030 4,971,795
73,070,496 56,078,217 5,470,314
Original UAAL Current UAAL
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Item # 2
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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:
2014 $56,078,217
2015 54,150,444
2016 52,087,740
2017 49,880,645
2018 47,637,351
2019 45,368,245
2024 32,392,142
2029 19,753,712
2034 18,717,033
2039 11,323,139
2043 -
Amortization Schedule
Year Expected UAAL
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Item # 2
11
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment turnover, investment income, expenses,
salary increases, and other factors have been based on long range trends and expectations. Actual experience
can vary from these expectations. The variance is measured by the gain and loss for the period involved. If
significant long term experience reveals consistent deviation from what has been expected and that deviation
is expected to continue, the assumptions should be modified. The net actuarial gain (loss) for the past year is
computed as follows:
A.Employer Normal Cost as a Percentage
of Covered Payroll
1. Last Valuation 17.01 %
2. Current Valuation 5.99
3. Difference: 1 - 2 11.02
B.Actuarial Present Value of Projected
Covered Payroll 566,718,213$
C.Net Actuarial Gain (Loss): A3 x B 62,452,347
D. Gain (Loss) due to Investments 48,480,287
E. Gain (Loss) due to other sources 13,972,060
Gains (losses) in previous years have been as follows:
Year Ending Gain
12/31 (Loss)
2009 $32,358,262 (4.89)%
2010 2,311,412 (0.37)
2011 (13,721,771)2.28
2012 (7,015,253)1.15
2013 62,452,347 (11.02)
Change in
NC Rate
Attachment number 1 \nPage 18 of 59
Item # 2
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:
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 9.10 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
12/31/2012 5.50 7.50 4.48 6.00
12/31/2013 14.04 7.00 3.16 4.07
Averages 7.80 %---5.40 %---
Assumed
Salary Increases
Actual
Investment Return
Year Ending Actual Assumed
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.
Attachment number 1 \nPage 19 of 59
Item # 2
13
History of Investment Return Based on Actuarial Value of Assets
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Plan Year End
Actual Assumed
History of Salary Increases
0%
5%
10%
15%
0%
5%
10%
15%
Plan Year End Compared to Previous Year
Actual Assumed
Attachment number 1 \nPage 20 of 59
Item # 2
14
Active
Members
Year Vested Other 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 119 113 51 52 3 6 1 2 18 40 58 81 1,474
12/31/2013 102 98 27 42 2 3 4 2 11 54 65 79 1,478
12/31/2014 51 3 2 78
5 Yr Totals *432 582 243 251 13 27 8 10 65 253 318 422
* Totals are through current Plan Year only.
Terminations
Year Retirement Retirement Death Totals
During Service Disability
Actual (A) Compared to Expected (E) Decrements
Among Active Employees
Number
Added
Year
Ended Number Number
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 12 232,755 20 466,010
12/31/2013 20 401,192 20 480,787
12/31/2014 21 510,892
Actual (A) Compared to Expected (E) Deaths
Among Retirees and Beneficiaries
Actual During Year
Annual
Pensions
Annual
Pensions
Expected During Year
Attachment number 1 \nPage 21 of 59
Item # 2
Active
Members
Inactive
Members
1/1/07 1,692 819 $79,385,090 $559,830,590 $22,417,537 $9,192,407 11.58 %
1/1/08 1,641 878 80,371,617 610,979,087 21,580,666 6,920,400 8.61
1/1/09 1,628 903 82,104,837 536,834,473 20,681,030 20,005,238 24.37
1/1/10 1,567 955 80,443,199 618,444,906 19,664,443 15,879,628 19.74
1/1/11 1,508 1,024 76,505,599 646,956,800 18,744,675 15,461,725 20.21
1/1/12 1,468 1,072 74,765,020 664,087,199 17,784,332 17,064,100 22.82
1/1/13 1,474 1,127 74,422,344 688,731,221 57,969,871 12,845,501 17.26
1/1/14 1,478 1,144 74,254,159 772,411,068 56,078,217 4,626,039 6.23
Unfunded
Actuarial
Liability
RECENT HISTORY OF VALUATION RESULTS
Number of Employer Normal Cost
Valuation
Date
Covered Annual
Payroll
Actuarial Value of
Assets % of PayrollAmount
Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers.
15
Attachment number 1 \nPage 22 of 59
Item # 2
1/1/07 9/30/08 $12,532,399 15.79 %$12,000 0.02 %$12,520,399 15.77 %$12,520,399 $12,000 $12,532,399
1/1/08 9/30/09 10,086,978 12.55 12,000 0.01 10,074,978 12.54 10,074,978 12,000 10,086,978
1/1/09 9/30/10 23,960,586 29.18 12,000 0.01 23,948,586 29.17 23,948,586 12,000 23,960,586
1/1/10 9/30/11 19,373,992 24.08 12,000 0.01 19,361,992 24.07 19,361,992 12,000 19,373,992
1/1/11 9/30/12 18,898,567 24.70 12,000 0.01 18,886,567 24.69 18,886,567 12,000 18,898,567
1/1/12 9/30/13 20,925,720 27.99 12,000 0.02 20,913,720 27.97 20,913,720 12,000 20,925,720
1/1/13 9/30/14 19,608,078 26.35 12,000 0.02 19,596,078 26.33 19,596,078 12,000 19,608,078
1/1/14 9/30/15 10,803,098 14.55 12,000 0.02 10,791,098 14.53 --- --- ---
% of
Payroll Employer State
Valuation
End of
Year To
Which
Valuation
Applies Amount
Actual Contributions
% of
Payroll TotalAmount
% of
PayrollAmount
RECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
Estimated State
Required Contributions
Employer & State Net Employer
Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers.
16
Attachment number 1 \nPage 23 of 59
Item # 2
17
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuation Methods
Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered
before and after the valuation date were determined using the Frozen Entry-Age Actuarial 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 of Assets - 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.
Valuation Assumptions
The actuarial assumptions used in the valuation are shown in this Section.
Economic Assumptions
The investment return rate assumed in the valuations is 7.00% per year, compounded annually (net rate
after investment expenses).
The Wage Inflation Rate assumed in this valuation was 2.50% per year. The Wage Inflation Rate is
defined 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 real 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
7.00% investment return rate translates to an assumed real rate of return over wage inflation of 4.50%.
The rate of salary increase used for individual members can be seen in the tables below. Part of the
assumption is for merit and/or seniority increase, and 2.50% 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.
Attachment number 1 \nPage 24 of 59
Item # 2
18
Years of
Service
1 2.50%7.90%
2 2.50%7.70%
3 2.50%7.00%
4 2.50%5.25%
5 - 14 2.50%4.25%
15 and Higher 2.50%3.50%1.00%
% Increase in Salary - Hazardous Duty
1.75%
Merit and
Seniority
Base
(Inflation)
Total
Increase
5.40%
5.20%
4.50%
2.75%
Years of
Service
1 2.50%7.90%
2 2.50%5.75%
3 2.50%5.00%
4 2.50%4.50%
5 - 9 2.50%4.00%
10 and Higher 2.50%3.50%
2.50%
2.00%
1.50%
1.00%
% Increase in Salary - Non-Hazardous Duty
Merit and
Seniority
Base
(Inflation)
Total
Increase
5.40%
3.25%
Demographic Assumptions
The mortality table was the fully generational RP-2000 Combined Healthy Participant Mortality Table
for males and females. Mortality improvements are projected to all future years from the year 2000 using
Scale BB.
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.
Sample
Attained
Ages (in 2014)Men Women Men Women
50 0.20 %0.16 %35.36 37.80
55 0.35 0.25 30.23 32.65
60 0.61 0.44 25.28 27.63
65 1.08 0.82 20.62 22.87
70 1.80 1.41 16.31 18.48
75 3.06 2.37 12.46 14.53
80 5.21 3.87 9.14 11.04
Probability of Future Life
Dying Next Year Expectancy (years)
Attachment number 1 \nPage 25 of 59
Item # 2
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:
Years of Probability of
Service Age Retirement
10 - 19 50 - 59 10 %
60 - 64 50
65 & Over 100
20 & Over Under 45 20
45 - 49 15
50 - 54 25
55 - 59 35
60 - 64 50
65 & Over 100
Hazardous Duty Retirement
Years of Probability of
Service Age Retirement
10 - 19 65 - 69 45 %
70 - 74 50
75 & Over 100
20 - 29 55 - 59 20
60 - 64 25
65 - 69 45
70 & Over 100
30 & Over Under 65 40
65 - 69 50
70 & Over 100
Non-Hazardous Duty Retirement
Attachment number 1 \nPage 26 of 59
Item # 2
20
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 members remaining in employment.
Years of % of Active Members
Service Age Separating Within Next Year
Under 1 All Ages 12.8 %
1 All Ages 5.7
2 All Ages 4.8
3 & Over Under 30 4.0
30 - 49 1.0
50 & Over 0.0
Hazardous Duty Withdrawal - Males and Females
Years of % of Active Members Years of % of Active Members
Service Age Separating Within Next Year Service Age Separating Within Next Year
Under 1 Under 30 25.0 %Under 1 Under 25 35.0 %
30 - 34 20.0 25 - 34 30.0
35 - 49 15.0 35 - 39 25.0
50 - 59 10.0 40 - 49 20.0
60 & Over 5.0 50 - 59 15.0
60 & Over 5.0
1 Under 60 15.0
60 & Over 10.0 1 Under 30 25.0
30 - 59 15.0
2 Under 45 10.0 60 & Over 10.0
45 & Over 5.0
2 Under 45 15.0
3 Under 25 15.0 45 - 59 7.5
25 - 34 12.5 60 & Over 6.5
35 & Over 5.0
3 Under 30 20.0
4 Under 30 15.0 30 - 59 10.0
30 - 44 10.0 60 & Over 5.0
45 & Over 5.0
4 Under 30 15.0
5 & Over Under 30 12.5 30 - 34 12.5
30 - 34 7.0 35 - 44 10.0
35 - 39 6.0 45 & Over 5.0
40 - 44 5.0
45 - 49 3.5 5 & Over Under 30 7.5
50 - 54 4.0 30 - 39 6.5
55 - 59 5.0 40 - 44 5.0
60 & Over 7.5 45 & Over 4.0
Non-Hazardous Duty Withdrawal - Males Non-Hazardous Duty Withdrawal - Females
Attachment number 1 \nPage 27 of 59
Item # 2
21
Rates of disability among active members (100% of disabilities are assumed to be service-connected).
Sample
Ages
20 0.25 %0.375 %
25 0.25 0.375
30 0.25 0.375
35 0.30 0.450
40 0.40 0.600
45 0.50 0.750
50 0.55 0.825
55 0.60 0.900
60 0.75 1.125
65 1.00 1.500
70 1.75 2.625
Males Females
Disabled Within Next Year
% of Active Members Becoming
Hazardous Duty Disability
Sample
Ages
20 0.05 %0.05 %
25 0.05 0.05
30 0.05 0.05
35 0.06 0.06
40 0.07 0.07
45 0.09 0.09
50 0.12 0.12
55 0.17 0.17
60 0.27 0.27
65 0.42 0.42
70 0.67 0.67
Non-Hazardous Duty Disability
% of Active Members Becoming
Disabled Within Next Year
Males Females
Attachment number 1 \nPage 28 of 59
Item # 2
22
Miscellaneous and Technical Assumptions
Administrative & Investment
Expenses
Effective January 1, 2013, the investment return assumption is
intended to be the net return after investment expenses. Annual
administrative expenses are assumed to be equal to the administrative
expenses of the previous year. Assumed administrative expenses are
added to the Normal Cost.
Benefit Service Exact fractional service is used to determine the amount of benefit
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. There is a five-year delay in the COLA for non-
grandfathered non-hazardous duty members for benefits accrued after
January 1, 2013. There is no COLA for non-grandfathered hazardous
duty members for benefits accrued after January 1, 2013.
Decrement Operation Disability and mortality decrements operate during retirement
eligibility.
Decrement Timing Decrements of all types are assumed to occur at the beginning of the
year.
Eligibility Testing 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 members
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 benefit (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 benefits. Male spouses are assumed to be
five years older than female spouses for active member valuation
purposes.
Attachment number 1 \nPage 29 of 59
Item # 2
23
Normal Form of Benefit The normal form of benefit is a life annuity for non-grandfathered
non-hazardous duty members. For all other members, 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 five years,
after which the benefit 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 the salary scale assumption rate (which varies by
years of service) and the annual rate of pay on the valuation date.
Service Credit Accruals It is assumed that members accrue one year of service credit per year.
Attachment number 1 \nPage 30 of 59
Item # 2
24
GLOSSARY
Actuarial Accrued Liability
(AAL)
The difference between the Actuarial Present Value of Future Benefits,
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 members 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
(APV)
The amount of funds required to provide a payment or series of payments
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
Future Benefits (APVFB)
The Actuarial Present Value of amounts which are expected to be paid at
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 of Assets 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).
Attachment number 1 \nPage 31 of 59
Item # 2
25
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 That portion of the plan contribution or ARC which is designed to pay
interest on and to amortize the Unfunded Actuarial Accrued Liability.
Amortization Period The period used in calculating the Amortization Payment.
Annual Required
Contribution (ARC)
The employer’s periodic required contributions, expressed as a dollar
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
Amortization Period
For plans that do not establish separate amortization bases (separate
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
combined upon the current UAAL payment.
Experience Gain/Loss A measure of the difference between the normal cost rate from last year
and the normal cost rate from this year.
Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued
Liability.
GASB Governmental Accounting Standards Board.
GASB No. 25 and
GASB No. 27
These are the governmental accounting standards that set the accounting
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.
Attachment number 1 \nPage 32 of 59
Item # 2
26
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
Liability
The difference between the Actuarial Accrued Liability and Actuarial
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.
Attachment number 1 \nPage 33 of 59
Item # 2
SECTION C
PENSION FUND INFORMATION
Attachment number 1 \nPage 34 of 59
Item # 2
27
Statement of Plan Assets at Market Value
2013 2012
A.Cash and Cash Equivalents (Operating Cash)-$ -$
B.Receivables
1.Member Contributions -$ -$
2.Employer Contributions 9,952,096 10,749,771
3.Investment Income and Other Receivables 2,292,919 1,972,565
4.Total Receivables 12,245,015$ 12,722,336$
C.Investments
1.Short-Term Investments 9,676,179$ 35,028,246$
2.Domestic Equities 460,060,234 363,569,880
3.International Equities 117,012,468 106,375,862
4.Commodities - -
5.Domestic Fixed Income 211,304,582 184,631,350
6.International Fixed Income - -
7.Real Estate 37,586,593 34,251,338
8.Private Equity - -
9.Total Investments 835,640,056$ 723,856,676$
D.Liabilities
1.Benefits Payable -$ -$
2.Accrued Expenses and Other Payables (918,142) (800,113)
3.Total Liabilities (918,142)$ (800,113)$
E.Total Market Value of Assets Available for Benefits 846,966,929$ 735,778,899$
F.Allocation of Investments
1.Short-Term Investments 1.16%4.84%
2.Domestic Equities 55.05%50.22%
3.International Equities 14.00%14.70%
4.Commodities 0.00%0.00%
5.Domestic Fixed Income 25.29%25.51%
6.International Fixed Income 0.00%0.00%
7.Real Estate 4.50%4.73%
8.Private Equity 0.00%0.00%
9.Total Investments 100.00%100.00%
December 31
Item
Attachment number 1 \nPage 35 of 59
Item # 2
28
Reconciliation of Plan Assets
2013 2012
A.Market Value of Assets at Beginning of Year 735,778,899$ 656,705,582$
B.Revenues and Expenditures
1.Contributions
a.Employee Contributions 6,262,146$ 5,853,385$
b.Employer Contributions 18,199,028 20,196,816
c.State Contributions 12,000 12,000
d.Total 24,473,174$ 26,062,201$
2.Investment Income
a.Interest, Dividends, and Other Income 15,416,386$ 14,808,280$
b.Net Realized Gains/(Losses)40,982,231 20,545,170
c.Net Unrealized Gains/(Losses)71,698,485 55,272,612
d.Investment Expenses (4,773,288) (3,475,330)
e.Net Investment Income 123,323,814$ 87,150,732$
3.Benefits and Refunds
a.Refunds (1,029,146)$ (693,088)$
b.Regular Monthly Benefits (35,401,597) (33,260,268)
c.Partial Lump-Sum Benefits Paid - -
d.Total (36,430,743)$ (33,953,356)$
4.Administrative and Miscellaneous Expenses (178,215)$ (186,260)$
5.Transfers -$ -$
C.Market Value of Assets at End of Year 846,966,929$ 735,778,899$
December 31
Item
Attachment number 1 \nPage 36 of 59
Item # 2
Development of Actuarial Value of Assets
Valuation Date - December 31 2012 2013 2014 2015 2016 2017
A.Actuarial Value of Assets Beginning of Year 664,087,199$ 688,731,221$
B.Market Value End of Year 735,778,899 846,966,929
C.Market Value Beginning of Year 656,705,582 735,778,899
D.Non-Investment/Administrative Net Cash Flow (11,552,745) (12,135,784)
E.Investment Income
E1. Actual Market Total: B-C-D 90,626,062 123,323,814
E2. Assumed Rate of Return 7.50%7.00%7.00%7.00%7.00%7.00%
E3. Assumed Amount of Return 48,263,087 *50,628,682
E4. Amount Subject to Phase-In: E1–E3 42,362,975 72,695,132
F.Phase-In Recognition of Investment Income
F1. Current Year: 0.2 x E4 8,472,595 14,539,026
F2. First Prior Year (10,299,653) 8,472,595 14,539,026
F3. Second Prior Year 11,581,278 (10,299,653) 8,472,595 14,539,026
F4. Third Prior Year 20,893,703 11,581,278 (10,299,653) 8,472,595 14,539,026
F5. Fourth Prior Year (42,714,243) 20,893,703 11,581,278 (10,299,653) 8,472,595 14,539,026
F6. Total Phase-Ins (12,066,320) 45,186,949 24,293,246 12,711,968 23,011,621 14,539,026
G.Actuarial Value of Assets End of Year
G1. Preliminary Actuarial Value of Assets 688,731,221$ 772,411,068$
G2. Upper Corridor Limit: 120%*B 882,934,679$ 1,016,360,315$
G3. Lower Corridor Limit: 80%*B 588,623,119$ 677,573,543$
G4. Funding Value End of Year 688,731,221$ 772,411,068$
H.Recognized Investment Earnings 36,196,767$ 95,815,631$
I.Difference between Market & Actuarial Value 47,047,678$ 74,555,861$
J.Actuarial Rate of Return 5.50%*14.04%
K.Market Value Rate of Return 13.92%*16.90%
L.Ratio of Actuarial Value of Assets to Market Value 93.61%91.20%
* Before investment expenses
The Actuarial Value of Assets recognizes assumed investment return (line E3) fully each year. Differences between actual and assumed investment income (Line E4) are
phased-in over a closed 5-year period. 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 the assumed rate, Actuarial Value of Assets will tend to be greater than Market Value. If assumed rates are exactly
realized for 5 consecutive years, Actuarial Value of Assets will become equal to Market Value.
29
Attachment number 1 \nPage 37 of 59
Item # 2
30
Investment Rate of Return
Plan Year Ending
December 31
1986 13.21 % N/A
1987 10.78 N/A
1988 9.12 N/A
1989 20.84 N/A
1990 6.21 N/A
1991 28.52 N/A
1992 6.49 N/A
1993 9.29 7.42 %
1994 0.89 6.28
1995 23.36 9.14
1996 14.80 11.54
1997 17.49 13.74
1998 16.74 15.28
1999 18.61 17.96
2000 (3.43)12.42
2001 (5.16)7.40
2002 (8.83)(1.85)
2003 20.08 7.45
2004 9.73 2.18
2005 6.67 4.58
2006 11.80 7.87
2007 7.29 10.68
2008 (27.01)(10.61)
2009 30.93 16.53
2010 17.50 5.98
2011 (0.32)4.46
2012 13.92 5.50
2013 16.90 14.04
Average returns:
Last five years:15.35 % 9.19 %
Last ten years:7.66 % 5.88 %
All years:9.54 % 7.80 %
Actuarial*Market*
*Before investment expenses prior to 2013.
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.
Attachment number 1 \nPage 38 of 59
Item # 2
SECTION D
FINANCIAL ACCOUNTING INFORMATION
Attachment number 1 \nPage 39 of 59
Item # 2
31
A.Valuation Date
B.Actuarial Present Value of Accumulated
Plan Benefits
1.Vested Benefits
a.Members Currently Receiving Payments $488,653,643 $470,453,496
b.Terminated Vested Members 14,311,837 16,774,341
c.Other Members 234,953,244 224,439,825
d.Total 737,918,724 711,667,662
2.Non-Vested Benefits 17,637,047 18,256,169
3.Total Actuarial Present Value of Accumulated
Plan Benefits: 1d + 2 755,555,771 729,923,831
4.Accumulated Contributions of Active Members 57,394,630 54,638,467
C.Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1.Total Value at Beginning of Year 729,923,831 637,554,568
2.Increase (Decrease) During the Period
Attributable to:
a.Plan Amendment 0 (11,689,639)
b.Change in Actuarial Assumptions 0 73,651,542
c.Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period 62,062,683 64,360,716
d.Benefits Paid (36,430,743)(33,953,356)
e.Net Increase 25,631,940 92,369,263
3.Total Value at End of Period 755,555,771 729,923,831
D.Market Value of Assets 846,966,929 735,778,899
E.Actuarial Assumptions - See page entitled
Actuarial Assumptions and Methods
FASB NO. 35 INFORMATION
January 1, 2014 January 1, 2013
Attachment number 1 \nPage 40 of 59
Item # 2
SCHEDULE OF FUNDING PROGRESS
(GASB Statement No. 25)
1/1/1991 $141,865,764 $152,118,075 $10,252,311 93.3 %$34,532,753 29.7 %
1/1/1992 184,746,269 194,550,126 9,803,857 95.0 36,626,332 26.8
1/1/1993 198,345,690 207,639,701 9,294,011 95.5 38,731,039 24.0
1/1/1994 213,014,474 225,549,346 12,534,872 94.4 38,710,974 32.4
1/1/1995 225,482,726 237,428,796 11,946,070 95.0 41,371,332 28.9
1/1/1996 244,744,488 271,124,381 26,379,893 90.3 44,208,964 59.7
1/1/1997 272,346,200 297,892,502 25,546,302 91.4 44,955,348 56.8
1/1/1998 308,596,133 333,250,492 24,654,359 92.6 47,281,198 52.1
1/1/1999 354,088,751 377,788,731 23,699,980 93.7 49,666,523 47.7
1/1/2000 414,826,422 490,426,940 75,600,518 84.6 50,937,403 148.4
1/1/2001 461,724,610 535,672,208 73,947,598 86.2 54,864,584 134.8
1/1/2002 491,859,015 533,191,487 41,332,472 92.2 58,929,582 70.1
1/1/2003 477,541,459 517,933,495 40,392,036 92.2 65,150,820 62.0
1/1/2004 507,256,663 546,915,627 39,658,964 92.7 69,907,473 56.7
1/1/2005 510,265,274 549,136,184 38,870,910 92.9 73,836,304 52.6
1/1/2006 525,573,824 563,597,580 38,023,756 93.3 76,010,269 50.0
1/1/2007 559,830,590 582,248,127 22,417,537 96.1 79,385,090 28.2
1/1/2008 610,979,087 632,559,753 21,580,666 96.6 80,371,617 26.9
1/1/2009 536,834,473 557,515,503 20,681,030 96.3 82,104,837 25.2
1/1/2010 618,444,906 638,109,349 19,664,443 96.9 80,443,199 24.4
1/1/2011 646,956,800 665,701,475 18,744,675 97.2 76,505,599 24.5
1/1/2012 664,087,199 681,871,531 17,784,332 97.4 74,765,020 23.8
1/1/2013 688,731,221 746,701,092 57,969,871 92.2 74,422,344 77.9
1/1/2014 772,411,068 828,489,285 56,078,217 93.2 74,254,159 75.5
Actuarial
Valuation
Date
UAAL As % of
Covered
Payroll
(b - a) / c
Covered Payroll
(c)
Funded Ratio
(a) / (b)
Actuarial Value of
Assets
(a)
Unfunded AAL
(UAAL)
(b) - (a)
Actuarial Accrued
Liability (AAL) - FEA
(b)
Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers.
32
Attachment number 1 \nPage 41 of 59
Item # 2
33
SCHEDULE OF CONTRIBUTIONS FROM EMPLOYER
AND THE STATE OF FLORIDA
(GASB Statement No. 25)
Fiscal Year Ended
September 30
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
2013 20,925,720 20,925,720 100.0
2014 19,608,078 19,608,078 100.0
Percentage
Contributed
Annual Required
Contribution Contribution
Actual
Attachment number 1 \nPage 42 of 59
Item # 2
34
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 January 1, 2014
Contribution Rates
Employer (and State) 14.55%
Plan members Hazardous: 10.00% (8.00% if grandfathered)
Non-Hazardous: 8.00%
Actuarial Cost Method Frozen Entry Age Normal
Amortization Method Level dollar, closed
Remaining Amortization Period 29 years
Asset Valuation Method Phase-in of 20% of difference between actual
and expected return on market value of assets.
Actuarial Assumptions
Investment rate of return 7.00% (net of investment expenses)
Projected salary increases 3.50% - 7.90% based on service
Includes inflation and other general increases at 2.50%
Cost of Living adjustments 1.50% each year on April 1 (For benefits
accrued after January 1, 2013: five-year delay
for non-grandfathered non-hazardous duty
members, and no COLA for non-
grandfathered hazardous duty members)
Attachment number 1 \nPage 43 of 59
Item # 2
SECTION E
MISCELLANEOUS INFORMATION
Attachment number 1 \nPage 44 of 59
Item # 2
35
A.
1.Number Included in Last Valuation 1,474 1,468
2.New Members Included in Current Valuation 102 118
3.Non-Vested Employment Terminations (54)(40)
4.Vested Employment Terminations (11)(18)
5.Service Retirements (27)(51)
6.Disability Retirements (2)(3)
7.Deaths (4)(1)
8.Data Corrections/Rehired Members 0 1
9.Number Included in This Valuation 1,478 1,474
B.
1.Number Included in Last Valuation 64 62
2.Additions from Active Members 11 18
3.Lump Sum Payments/Refund of Contributions (4)(4)
4.Payments Commenced (11)(10)
5.Deaths 0 (1)
6.Conversion from Disability/Rehired Members 0 (1)
7.Data Corrections 0 0
8.Number Included in This Valuation 60 64
C.
1.Number Included in Last Valuation 1,063 1,010
2.Additions from Active Members 29 54
3.Additions from Terminated Vested Members 11 10
4.Deaths Resulting in No Further Payments (20)(12)
5.Deaths Resulting in New Survivor Benefits 1 1
6.End of Certain Period - No Further Payments 0 (1)
7.Data Correction/Waiver of Benefits 0 1
8.Number Included in This Valuation 1,084 1,063
RECONCILIATION OF MEMBERSHIP DATA
Active Members
Service Retirees, Disability Retirees and Beneficiaries
Terminated Vested Members
From 1/1/2012From 1/1/2013
To 1/1/2013To 1/1/2014
Attachment number 1 \nPage 45 of 59
Item # 2
36
ACTIVE PARTICIPANT DISTRIBUTION
ALL ACTIVE MEMBERS
Age 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
20-24 NO.19 7 3 1 1 1 0 0 0 0 0 0 32
TOT PAY 499,902 173,347 125,876 35,248 33,710 23,052 0 0 0 0 0 0 891,135
AVG PAY 26,311 24,764 41,959 35,248 33,710 23,052 0 0 0 0 0 0 27,848
25-29 NO.28 21 18 5 11 43 1 0 0 0 0 0 127
TOT PAY 982,996 763,326 612,760 182,189 494,112 1,811,558 47,077 0 0 0 0 0 4,894,018
AVG PAY 35,107 36,349 34,042 36,438 44,919 42,129 47,077 0 0 0 0 0 38,536
30-34 NO.17 10 9 6 6 76 14 0 0 0 0 0 138
TOT PAY 605,438 362,328 416,786 204,332 325,817 3,948,725 723,421 0 0 0 0 0 6,586,847
AVG PAY 35,614 36,233 46,310 34,055 54,303 51,957 51,673 0 0 0 0 0 47,731
35-39 NO.14 11 11 8 3 75 61 13 0 0 0 0 196
TOT PAY 542,234 424,612 405,240 332,767 141,908 4,074,176 3,373,707 795,848 0 0 0 0 10,090,492
AVG PAY 38,731 38,601 36,840 41,596 47,303 54,322 55,307 61,219 0 0 0 0 51,482
40-44 NO.5 11 7 8 3 51 61 54 7 0 0 0 207
TOT PAY 169,100 373,459 284,033 327,550 99,348 2,458,834 3,869,344 4,080,107 505,716 0 0 0 12,167,491
AVG PAY 33,820 33,951 40,576 40,944 33,116 48,212 63,432 75,558 72,245 0 0 0 58,780
45-49 NO.6 12 5 5 4 36 54 70 31 6 0 0 229
TOT PAY 227,659 542,681 182,230 169,152 159,435 1,532,071 2,768,754 4,452,672 2,293,449 423,225 0 0 12,751,328
AVG PAY 37,943 45,223 36,446 33,830 39,859 42,558 51,273 63,610 73,982 70,538 0 0 55,683
50-54 NO.7 15 5 4 5 32 43 37 30 38 5 0 221
TOT PAY 222,935 692,105 178,049 202,863 228,133 1,225,642 1,853,818 1,873,383 1,962,775 2,369,811 342,951 0 11,152,465
AVG PAY 31,848 46,140 35,610 50,716 45,627 38,301 43,112 50,632 65,426 62,363 68,590 0 50,464
55-59 NO.3 8 5 4 2 25 35 41 20 27 4 0 174
TOT PAY 94,034 417,048 177,247 167,797 88,284 941,726 1,462,679 2,009,236 1,180,291 1,625,558 267,030 0 8,430,930
AVG PAY 31,345 52,131 35,449 41,949 44,142 37,669 41,791 49,006 59,015 60,206 66,758 0 48,454
60-64 NO.3 4 4 1 0 24 24 26 14 15 3 0 118
TOT PAY 90,155 93,065 146,518 33,182 0 967,534 987,848 1,198,377 887,850 952,201 205,148 0 5,561,878
AVG PAY 30,052 23,266 36,630 33,182 0 40,314 41,160 46,091 63,418 63,480 68,383 0 47,135
65+ NO.1 1 1 1 0 8 5 6 5 7 0 1 36
TOT PAY 121,150 33,302 24,019 44,489 0 297,065 204,077 314,686 271,616 367,020 0 50,151 1,727,575
AVG PAY 121,150 33,302 24,019 44,489 0 37,133 40,815 52,448 54,323 52,431 0 50,151 47,988
TOT NO.103 100 68 43 35 371 298 247 107 93 12 1 1,478
TOT AMT 3,555,603 3,875,273 2,552,758 1,699,569 1,570,747 17,280,383 15,290,725 14,724,309 7,101,697 5,737,815 815,129 50,151 74,254,159
AVG AMT 34,520 38,753 37,541 39,525 44,878 46,578 51,311 59,613 66,371 61,697 67,927 50,151 50,240
Years of Service to Valuation Date
Attachment number 1 \nPage 46 of 59
Item # 2
37
ACTIVE PARTICIPANT DISTRIBUTION
HAZARDOUS DUTY MEMBERS
Age 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
20-24 NO.1 0 1 0 0 0 0 0 0 0 0 0 2
TOT PAY 45,583 0 58,109 0 0 0 0 0 0 0 0 0 103,692
AVG PAY 45,583 0 58,109 0 0 0 0 0 0 0 0 0 51,846
25-29 NO.8 5 3 1 6 12 0 0 0 0 0 0 35
TOT PAY 367,135 276,643 180,475 55,759 339,283 803,046 0 0 0 0 0 0 2,022,341
AVG PAY 45,892 55,329 60,158 55,759 56,547 66,921 0 0 0 0 0 0 57,781
30-34 NO.7 2 4 0 5 37 5 0 0 0 0 0 60
TOT PAY 328,681 111,868 261,552 0 297,405 2,527,880 412,462 0 0 0 0 0 3,939,848
AVG PAY 46,954 55,934 65,388 0 59,481 68,321 82,492 0 0 0 0 0 65,664
35-39 NO.5 1 2 1 2 39 28 8 0 0 0 0 86
TOT PAY 246,603 62,288 119,118 57,124 109,693 2,617,421 2,126,637 596,778 0 0 0 0 5,935,662
AVG PAY 49,321 62,288 59,559 57,124 54,847 67,113 75,951 74,597 0 0 0 0 69,019
40-44 NO.0 0 1 1 1 18 37 39 3 0 0 0 100
TOT PAY 0 0 52,568 56,894 46,984 1,228,588 2,810,498 3,369,091 317,062 0 0 0 7,881,685
AVG PAY 0 0 52,568 56,894 46,984 68,255 75,959 86,387 105,687 0 0 0 78,817
45-49 NO.0 3 0 0 1 8 15 28 19 1 0 0 75
TOT PAY 0 267,041 0 0 53,797 544,481 1,151,456 2,459,316 1,657,434 104,148 0 0 6,237,673
AVG PAY 0 89,014 0 0 53,797 68,060 76,764 87,833 87,233 104,148 0 0 83,169
50-54 NO.0 4 0 1 0 2 5 5 10 8 2 0 37
TOT PAY 0 366,663 0 115,305 0 136,177 334,917 417,230 829,459 744,180 196,508 0 3,140,439
AVG PAY 0 91,666 0 115,305 0 68,089 66,983 83,446 82,946 93,023 98,254 0 84,877
55-59 NO.0 3 0 0 0 1 1 3 2 2 2 0 14
TOT PAY 0 267,592 0 0 0 75,278 74,524 223,788 190,584 208,917 159,353 0 1,200,036
AVG PAY 0 89,197 0 0 0 75,278 74,524 74,596 95,292 104,459 79,677 0 85,717
60-64 NO.0 0 0 0 0 3 1 0 1 0 1 0 6
TOT PAY 0 0 0 0 0 211,596 79,435 0 102,768 0 116,377 0 510,176
AVG PAY 0 0 0 0 0 70,532 79,435 0 102,768 0 116,377 0 85,029
65+ NO.1 0 0 0 0 0 0 0 0 0 0 0 1
TOT PAY 121,150 0 0 0 0 0 0 0 0 0 0 0 121,150
AVG PAY 121,150 0 0 0 0 0 0 0 0 0 0 0 0
TOT NO.22 18 11 4 15 120 92 83 35 11 5 0 416
TOT AMT 1,109,152 1,352,095 671,822 285,082 847,162 8,144,467 6,989,929 7,066,203 3,097,307 1,057,245 472,238 0 31,092,702
AVG AMT 50,416 75,116 61,075 71,271 56,477 67,871 75,977 85,135 88,494 96,113 94,448 0 74,742
Years of Service to Valuation Date
Attachment number 1 \nPage 47 of 59
Item # 2
38
ACTIVE PARTICIPANT DISTRIBUTION
NON-HAZARDOUS DUTY MEMBERS
Age 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
20-24 NO.18 7 2 1 1 1 0 0 0 0 0 0 30
TOT PAY 454,319 173,347 67,767 35,248 33,710 23,052 0 0 0 0 0 0 787,443
AVG PAY 25,240 24,764 33,884 35,248 33,710 23,052 0 0 0 0 0 0 26,248
25-29 NO.20 16 15 4 5 31 1 0 0 0 0 0 92
TOT PAY 615,861 486,683 432,285 126,430 154,829 1,008,512 47,077 0 0 0 0 0 2,871,677
AVG PAY 30,793 30,418 28,819 31,608 30,966 32,533 47,077 0 0 0 0 0 31,214
30-34 NO.10 8 5 6 1 39 9 0 0 0 0 0 78
TOT PAY 276,757 250,460 155,234 204,332 28,412 1,420,845 310,959 0 0 0 0 0 2,646,999
AVG PAY 27,676 31,308 31,047 34,055 28,412 36,432 34,551 0 0 0 0 0 33,936
35-39 NO.9 10 9 7 1 36 33 5 0 0 0 0 110
TOT PAY 295,631 362,324 286,122 275,643 32,215 1,456,755 1,247,070 199,070 0 0 0 0 4,154,830
AVG PAY 32,848 36,232 31,791 39,378 32,215 40,465 37,790 39,814 0 0 0 0 37,771
40-44 NO.5 11 6 7 2 33 24 15 4 0 0 0 107
TOT PAY 169,100 373,459 231,465 270,656 52,364 1,230,246 1,058,846 711,016 188,654 0 0 0 4,285,806
AVG PAY 33,820 33,951 38,578 38,665 26,182 37,280 44,119 47,401 47,164 0 0 0 40,054
45-49 NO.6 9 5 5 3 28 39 42 12 5 0 0 154
TOT PAY 227,659 275,640 182,230 169,152 105,638 987,590 1,617,298 1,993,356 636,015 319,077 0 0 6,513,655
AVG PAY 37,943 30,627 36,446 33,830 35,213 35,271 41,469 47,461 53,001 63,815 0 0 42,296
50-54 NO.7 11 5 3 5 30 38 32 20 30 3 0 184
TOT PAY 222,935 325,442 178,049 87,558 228,133 1,089,465 1,518,901 1,456,153 1,133,316 1,625,631 146,443 0 8,012,026
AVG PAY 31,848 29,586 35,610 29,186 45,627 36,316 39,971 45,505 56,666 54,188 48,814 0 43,544
55-59 NO.3 5 5 4 2 24 34 38 18 25 2 0 160
TOT PAY 94,034 149,456 177,247 167,797 88,284 866,448 1,388,155 1,785,448 989,707 1,416,641 107,677 0 7,230,894
AVG PAY 31,345 29,891 35,449 41,949 44,142 36,102 40,828 46,985 54,984 56,666 53,839 0 45,193
60-64 NO.3 4 4 1 0 21 23 26 13 15 2 0 112
TOT PAY 90,155 93,065 146,518 33,182 0 755,938 908,413 1,198,377 785,082 952,201 88,771 0 5,051,702
AVG PAY 30,052 23,266 36,630 33,182 0 35,997 39,496 46,091 60,391 63,480 44,386 0 45,104
65+ NO.0 1 1 1 0 8 5 6 5 7 0 1 35
TOT PAY 0 33,302 24,019 44,489 0 297,065 204,077 314,686 271,616 367,020 0 50,151 1,606,425
AVG PAY 0 33,302 24,019 44,489 0 37,133 40,815 52,448 54,323 52,431 0 50,151 45,898
TOT NO.81 82 57 39 20 251 206 164 72 82 7 1 1,062
TOT AMT 2,446,451 2,523,178 1,880,936 1,414,487 723,585 9,135,916 8,300,796 7,658,106 4,004,390 4,680,570 342,891 50,151 43,161,457
AVG AMT 30,203 30,770 32,999 36,269 36,179 36,398 40,295 46,696 55,617 57,080 48,984 50,151 40,642
Years of Service to Valuation Date
Attachment number 1 \nPage 48 of 59
Item # 2
39
INACTIVE PARTICIPANT DISTRIBUTION
Disabled Retired
Total Total Total Total
Age Group Number Benefits Number Benefits Number Benefits Number Benefits
Under 20 - - - - - - 8 126,285
20-24 - - - - - - - -
25-29 - - - - - - - -
30-34 - - 1 39,364 - - 1 32,152
35-39 2 35,431 - - - - 1 48,696
40-44 11 206,769 4 166,380 4 107,608 1 25,797
45-49 13 288,060 7 230,310 20 928,207 5 75,199
50-54 23 482,030 16 547,326 64 2,984,333 2 26,923
55-59 6 85,615 24 614,386 154 6,559,563 13 242,448
60-64 5 98,009 26 679,408 187 7,330,715 11 272,286
65-69 - - 24 553,120 200 6,962,539 14 297,037
70-74 - - 16 301,737 83 2,833,913 20 393,089
75-79 - - 10 273,502 57 1,554,333 25 333,685
80-84 - - 6 108,170 25 591,330 10 212,178
85-89 - - - - 11 160,470 19 221,355
90-94 - - - - 8 121,903 4 14,203
95-99 - - - - 1 4,434 2 4,434
100 & Over - - - - - - - -
Total 60 1,195,914 134 3,513,703 814 30,139,348 136 2,325,767
Average Age 50 63 65 69
Terminated Vested
Deceased with
Beneficiary
Attachment number 1 \nPage 49 of 59
Item # 2
SECTION F
SUMMARY OF PLAN PROVISIONS
Attachment number 1 \nPage 50 of 59
Item # 2
40
SUMMARY OF PLAN PROVISIONS
A. Ordinances
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. 8333-12 passed and
adopted on July 19, 2012 and enacted by public referendum in November 2012. 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, 2013 (previous restated Plan Effective Date was January 1,
1996).
C. Plan Year
January 1 through December 31.
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time permanent employees of the City are required to participate and become participants on
their date of hire.
F. Grandfathered Members
Members who are eligible for normal retirement as of January 1, 2013 are grandfathered in the plan
provisions in effect before Ordinance No. 8333-12.
G. 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.
H. 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.
Effective January 1, 2013: For non-grandfathered hazardous duty members, the amount of overtime
included in Compensation is limited to 300 hours per year; For non-grandfathered non-hazardous duty
members, Compensation excludes overtime and additional pay above the base rate of pay.
Attachment number 1 \nPage 51 of 59
Item # 2
41
I. 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.
J. Normal Retirement
Eligibility: For Non-Hazardous Duty Employment
A participant hired before January 1, 2013 may retire on the first 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.
A participant hired on or after January 1, 2013 may retire on the first day of the month
coincident with or next following the earliest of:
(1) age 60 with 25 years of Credited Service, or
(2) age 65 with 10 years of Credited Service
For Hazardous Duty Employment-Police Officers and Firefighters
A participant may retire on the first 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.
Benefit: 2.75% of AMC multiplied by years of Credited Service.
For Non-Hazardous Duty participants hired on or after January 1, 2013, 2.00% of
AMC multiplied by years of Credited Service.
Normal Form
of Benefit: For Non-Hazardous Duty Employment (Non-Grandfathered)
A monthly annuity is paid for the life of the participant.
For Hazardous Duty Employment-Police Officers and Firefighters (and Grandfathered
Non-Hazardous Duty Employment)
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.
Attachment number 1 \nPage 52 of 59
Item # 2
42
COLA: For Non-Hazardous Duty Employment
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is a five-year delay (after the
retirement date) until this COLA is applied to benefits accrued after January 1, 2013.
For Hazardous Duty Employment-Police Officers and Firefighters
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is no COLA for benefits
accrued after January 1, 2013.
K. Early Retirement
Eligibility: 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.
Benefit: The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early
Retirement date precedes age 55.
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. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is no COLA for benefits
accrued after January 1, 2013.
L. Delayed Retirement
Same as Normal Retirement taking into account Compensation earned and service credited until the
date of actual retirement.
M. 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: For Non-Hazardous Duty Employment
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 42% of the participant’s AMC (66 2/3% of the participant’s AMC if
Attachment number 1 \nPage 53 of 59
Item # 2
43
grandfathered). 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.
For Hazardous Duty Employment-Police Officers and Firefighters
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: For Non-Hazardous Duty Employment (Non-Grandfathered)
A monthly annuity is paid for the life of the participant.
For Hazardous Duty Employment-Police Officers and Firefighters (and Grandfathered
Non-Hazardous Duty Employment)
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: For Non-Hazardous Duty Employment
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is a five-year delay (after the
retirement date) until this COLA is applied to benefits accrued after January 1, 2013.
For Hazardous Duty Employment-Police Officers and Firefighters
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is no COLA for benefits
accrued after January 1, 2013.
N. 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.
Attachment number 1 \nPage 54 of 59
Item # 2
44
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: For Non-Hazardous Duty Employment (Non-Grandfathered)
A monthly annuity is paid for the life of the participant.
For Hazardous Duty Employment-Police Officers and Firefighters (and Grandfathered
Non-Hazardous Duty Employment)
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: For Non-Hazardous Duty Employment
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is a five-year delay (after the
retirement date) until this COLA is applied to benefits accrued after January 1, 2013.
For Hazardous Duty Employment-Police Officers and Firefighters
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is no COLA for benefits
accrued after January 1, 2013.
O. 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.
Benefit: Beneficiary 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.
Attachment number 1 \nPage 55 of 59
Item # 2
45
COLA: For Non-Hazardous Duty Employment
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is a five-year delay (after the
retirement date) until this COLA is applied to benefits accrued after January 1, 2013.
For Hazardous Duty Employment-Police Officers and Firefighters
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is no COLA for benefits
accrued after January 1, 2013.
In lieu of the benefits described above, the participant’s beneficiary can elect to receive a refund of
participant’s accumulated contributions with interest.
P. Other Pre-Retirement Death
Eligibility: Any participant who dies with 10 or more years of Credited Service is eligible for
survivor benefits.
Benefit: Beneficiary 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: For Non-Hazardous Duty Employment
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is a five-year delay (after the
retirement date) until this COLA is applied to benefits accrued after January 1, 2013.
For Hazardous Duty Employment-Police Officers and Firefighters
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is no COLA for benefits
accrued after January 1, 2013.
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.
Attachment number 1 \nPage 56 of 59
Item # 2
46
Q. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
R. Optional 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. Members may also elect a partial lump sum
equal to 10%, 20%, or 30% of the value of the normal retirement benefit with the remaining monthly
retirement benefit reduced accordingly.
S. 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.
Years of Credited
Service
% of Normal
Retirement
Benefits
Less Than 10
10 or more
0%
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: For Non-Hazardous Duty Employment (Non-Grandfathered)
A monthly annuity is paid for the life of the participant.
For Hazardous Duty Employment-Police Officers and Firefighters (and Grandfathered
Non-Hazardous Duty Employment)
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.
Attachment number 1 \nPage 57 of 59
Item # 2
47
COLA: For Non-Hazardous Duty Employment
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is a five-year delay (after the
retirement date) until this COLA is applied to benefits accrued after January 1, 2013.
For Hazardous Duty Employment-Police Officers and Firefighters
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have
received at least 6 monthly benefit payments. For non-grandfathered members (not
eligible for normal retirement on January 1, 2013), there is no COLA for benefits
accrued after January 1, 2013.
Plan participants with less than 10 years of Credited Service will receive a refund of their own
accumulated contributions with interest.
T. 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.
U. Member Contributions
8% of Compensation for Non-Hazardous Duty participants.
10% of Compensation for Hazardous Duty participants (8% of Compensation if grandfathered).
V. 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.
W. Cost of Living Increases
For Non-Hazardous Duty Employment
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least
6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on
January 1, 2013), there is a five-year delay (after the retirement date) until this COLA is applied to
benefits accrued after January 1, 2013.
Attachment number 1 \nPage 58 of 59
Item # 2
48
For Hazardous Duty Employment-Police Officers and Firefighters
1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at least
6 monthly benefit payments. For non-grandfathered members (not eligible for normal retirement on
January 1, 2013), there is no COLA for benefits accrued after January 1, 2013.
X. 13th Check
Not Applicable
Y. Deferred Retirement Option Plan
Not Applicable
Z. Other Ancillary 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 Valuation
There have been no changes from the previous valuation.
Attachment number 1 \nPage 59 of 59
Item # 2
Pension Trustees Agenda
Council Chambers - City Hall
Meeting Date:4/14/2014
SUBJECT / RECOMMENDATION:
Annual review of the Employees' Pension Plan investment performance for the calendar and plan year ended December 31, 2013.
SUMMARY:
This is the annual presentation on the investment performance of the Employees’ Pension Plan for calendar and plan
year ended December 31, 2013.
For the last calendar year, the plan had a return of 17.75%, versus a custom benchmark of 14.62%. This is a return of
3.13% over the benchmark and a return of 1.57% over the median public pension plan, placing the plan in the 36th
percentile of public pension plans per the Wilshire Public Plan Sponsor Universe.
For the last three calendar years, the plan has a return of 10.16% (annualized) versus a benchmark of 9.71%. This is an
excess return of 0.45% over the benchmark and placed the plan in the 36thpercentile of public pension plans for this
three-year period.
There were no changes in the money managers over the past year.
All of the current managers in the plan are performing as expected given their stated investment strategies and
investment style.
Review Approval:1) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk
Cover Memo
Item # 3
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Item # 3
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Attachment number 1 \nPage 3 of 18
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Attachment number 1 \nPage 6 of 18
Item # 3
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Attachment number 1 \nPage 7 of 18
Item # 3
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Item # 3
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Item # 3
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Attachment number 1 \nPage 14 of 18
Item # 3
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Item # 3
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Item # 3
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Attachment number 1 \nPage 17 of 18
Item # 3
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Attachment number 1 \nPage 18 of 18
Item # 3
Pension Trustees Agenda
Council Chambers - City Hall
Meeting Date:4/14/2014
SUBJECT / RECOMMENDATION:
Determine Trustees' 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 rates of return be filed with the Florida Department
of Management Services, with the plan's sponsor, and with the consulting actuary.
Staff is recommending the current plan investment rate of return assumption of 7.0%, net of investment-related fees, 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) Office of Management and Budget 2) Legal 3) Clerk 4) Assistant City Manager 5) City Manager 6) Clerk
Cover Memo
Item # 4
Pension Trustees Agenda
Council Chambers - City Hall
Meeting Date:4/14/2014
SUBJECT / RECOMMENDATION:
Approve the new hires for acceptance into the Pension Plan as listed.
SUMMARY:
Pension
Name, Job. Class, & Dept./Div. Hire Date Elig. Date
Valerie Mathre*, Librarian I, Library Dept 01/11/2014 01/11/2014
Chad Siple, Beach Lifeguard, Parks and Rec Dept 02/08/2014 02/08/2014
Tim Grosz, Parks Strts and SW Tech I, Parks and Rec Dept 02/09/2014 02/09/2014
Donivan Boykins, Cust Service Rep, Customer Service Dept 02/10/2014 02/10/2014
Eric Fernandez, Recreation Leader, Parks and Rec Dept 02/10/2014 02/10/2014
John Grosso, Park Service Tech I, Parks and RecDept 02/24/2014 02/24/2014
* Ms. Mathre went from part time to full time and her date of full time status was incorrect on last month’s agenda.
Review Approval:
Cover Memo
Item # 5
Pension Trustees Agenda
Council Chambers - City Hall
Meeting Date:4/14/2014
SUBJECT / RECOMMENDATION:
Approve the following request of employees Douglas Stocker, Solid Waste and General Services Department, and Daniel Brown, Parks
and Recreation Department; for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan.
SUMMARY:
Douglas Stocker, Building and Maintenance Supervisor, Solid Waste and General Services Department, was employed by the
City on June 24, 1985 and his pension service credit is effective on that date. His pension will be effective April 1, 2014.
Based on an average salary of approximately $58,221.76 over the past five years, the formula for computing regular pensions and Mr.
Stocker’s selection of the 50% Joint and Survivor Annuity, this pension benefit will be approximately $47,382 annually.
Daniel Brown, Parks Service Technician III, Parks and Recreation Department, was employed by the City on April 19, 2004 and
his pension service credit is effective on that date. His pension will be effective on May 1, 2014.
Based on an average salary of approximately $27,926.62 over the past five years, the formula for computing regular pensions and Mr.
Brown’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $6,436.44 annually.
Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this
reinstatement (1/1/13), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the
age of 55 years and completed twenty (20) years of credited service; the date on which a participant has reached age sixty five (65)
years and completed ten (10) years of credited service; or the date on which a member has completed thirty (30) years of service
regardless of age. For non-hazardous duty employees hired on or after the effective date of this restatement, a member shall be eligible
for retirement following the earlier of the date on which a participant has reached the age of sixty (60) years and completed twenty five
(25) years of credited service; or the date on which a participant has reached the age of sixty five (65) years and completed ten (10)
years of credited service. Mr. Stocker and Mr. Brown have met the non-hazardous duty criteria.
Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement
following the earlier of the date on which the participant has completed twenty (20) years of credited service regardless of age, or the
date on which the participant has reached fifty five (55) years and completed ten (10) years of credited service.
Review Approval:
Cover Memo
Item # 6
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