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CLEARWATER EMPLOYEE PENSION PLAN - ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2015 GRSGabriel Roeder Smith& Company Consultants&Actuaries CITY OF CLEARWATER EMPLOYEES' PENSION PLAN ACTUARIAL VALUATION REPORT AS OF JANUARY 1, 2015 ANNUAL EMPLOYER CONTRIBUTION FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2016 March 26,2015 Board of Trustees City of Clearwater Employees' Pension Plan Clearwater,Florida Dear Board Members: The results of the January 1, 2015 Annual Actuarial Valuation of the City of Clearwater Employees' Pension Plan are presented in this report. This report was prepared at the request of the Board and is intended for use by the Retirement System and those designated or approved by the Board. This report may be provided to parties other than the System only in its entirety and only with the permission of the Board. The purpose of the valuation is to measure the System's funding progress, to determine the employer contribution rate for the fiscal year ending September 30, 2016, and to determine the actuarial information for Governmental Accounting Standards Board(GASB) Statement No. 27. This report should not be relied on for any purpose other than the purpose described above. The findings in this report are based on data or other information through December 31, 2014. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. The scope of an actuarial valuation does not include an analysis of the potential range of such measurements. The valuation was based upon information furnished by the City concerning Retirement Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We checked for internal and year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the City. This report was prepared using certain assumptions prescribed by the Board as described in Section B. The undersigned actuaries are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The signing actuaries are independent of the plan sponsor. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Retirement Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. u ■ This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate. In my opinion, the techniques and assumptions used are reasonable, meet the ■ requirements and intent of Part VII, Chapter 112, Florida Statutes, and are based on generally accepted actuarial principles and practices. There is no benefit or expense to be provided by the plan and/or paid . from the plan's assets for which liabilities or current costs have not been established or otherwise taken into account in the valuation. All known events or trends which may require a material increase in plan costs or ■ required contribution rates have been taken into account in the valuation. ■ Respectfully submitted, • Peter N. Strong, FSA, MAAA ■ Enrolled Actuary No. 14 -697 GABRIEL, ROEDER, SMITH AND COMPANY • • • • • • • • • • • • • • • • • • -7 Trisha Amrose, MAAA Enrolled Actuary No. 14 -8010 Gabriel Roeder Smith & Company TABLE OF CONTENTS Section Title Page A Discussion of Valuation Results 1 B Valuation Results 1. Participant Data 5 2. Annual Required Contribution 6 3. Actuarial Value of Benefits and Assets 7 4. Calculation of Employer Normal Cost 8 5. Reconciliation of Credit Balance 10 6. Liquidation of the Unfunded Actuarial Accrued Liability 11 7. Actuarial Gains and Losses 14 8. Recent History of Valuation Results 18 9. Recent History of Contributions 19 10. Actuarial Assumptions and Cost Method 20 11. Glossary of Terms 27 C Pension Fund Information 1. Statement of Plan Assets at Market Value 30 2. Reconciliation of Plan Assets 31 3. Development of Actuarial Value of Assets 32 4. Investment Rate of Return 33 D Financial Accounting Information 1. FASB No. 35 34 2. GASB No.27 35 E Miscellaneous Information 1. Reconciliation of Membership Data 36 2. Active Participant Distribution 37 3. Inactive Participant Distribution 40 F Summary of Plan Provisions 41 GRS SECTION A DISCUSSION OF VALUATION RESULTS GRS 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: For FYE 9/30/2016 For FYE 9/30/2015 Based on Based on 1/1/2015 1/1/2014 Increase Valuation Valuation (Decrease) Required Employer/State Contribution S 8,767,703 S 10,803,098 S (2,035,395) As % of Covered Payroll 11.68 % 14.55 % (2.87) % Estimated State Contribution 12,000 12,000 0 As % of Covered Payroll 0.02 % 0.02 % 0.00 % Required Employer Contribution 8,755,703 10,791,098 (2,035,395) As % of Covered Payroll 11.66 % 14.53 % (2.87) % Credit Balance 10,381,518 5,390,884 4,990,634 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 2015 and 2016 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, 2014 were $15,404,370 and $12,000, respectively, for a total of$15,416,370, compared to the required contribution of $10,803,098. The excess contribution of$4,613,272 was used to increase the credit balance. The minimum required City contribution is 7%of covered payroll. GRS 2 Revisions in Benefits There have been no revisions in benefits since the last valuation. Revisions in Actuarial Assumptions or Methods Effective January 1, 2015, the funding method was changed from the Frozen Entry Age method to the Entry Age Normal method. Future actuarial experience gains and losses will be amortized over 15 years and changes in methods or assumptions will be amortized over 25 years. Future plan changes will be amortized over the expected average remaining future working years of the employees affected by the change. As a result of this change, the unfunded actuarial liability (UAL) and the sum of the outstanding amortization bases became negative while the sum of the amortization payments remained positive. As stated in the Plan's Funding Policy,when this occurs, the amortization bases are to be combined and offset, in accordance with the methodology described for combining and offsetting amortization bases under Internal Revenue Code Section 412(b). In the aggregate, these funding method changes caused the required employer contribution to increase by 3.65% of covered payroll. As a result of the funding method change and the negative UAL, the sum of the UAL amortization payments this year is S(432,182). Under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution required to fund the Normal Cost. Therefore, the UAL amortization payment was set equal to $0 in the determination of the required employer contribution for the fiscal year ending September 30,2016. Actuarial Experience There was a net actuarial experience gain of$34,213,347 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 7.99% based on the market value of assets and 11.04% 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 (3.38% actual versus 4.04% expected), and fewer than expected retirements (45 actual versus GRS 3 51 expected). The actuarial experience gain caused the required employer contribution to decrease by 6.43% of covered payroll,prior to the change in funding method. Analysis of Change in Employer Contribution The components of change in the required City contribution are as follows: Contribution Rate Last Year 14.53 % Change in Benefits 0.00 Change in Assumptions and Methods 3.65 Amortization Payment on UAAL (0.09) Experience Gain/Loss (6.43) Change in Administrative Expenses 0.00 Change in State Revenue 0.00 Contribution Rate This Year 11.66 Funded Ratio One measure of the Plan's funding progress is the ratio of the actuarial value of assets to the actuarial accrued liability. Including the credit balance in the actuarial value of assets, the funded ratio is 101.89% this year compared to 97.05% last year under the Entry Age Normal Method. Not including the credit balance in the actuarial value of assets, the funded ratio is 100.63% this year. The funded ratio was 93.95% (versus 93.2%last year)based on the Frozen Entry Age Method. 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 $57,156,829 as of the valuation date (see Section Q. This difference will be phased in over the next few years in the absence of offsetting losses. In turn, the UAL amortization credit is expected to increase. However, due to GRS 4 Chapter 112.66 of the Florida Statutes, the annual UAL amortization payment used to determine the required employer contribution would remain at$0. If there are no experience losses and the return on the market value of assets is 7.0% in 2015 (net of investment expenses) as assumed, it is projected that the City contribution requirement as of January 1, 2016 for the fiscal year ending September 30, 2017 will remain in the range of approximately I 1%-12% of covered payroll. Relationship to Market Value If Market Value had been the basis for the valuation, the City contribution rate would have remained unchanged at 11.66% of covered payroll (since the annual payment to amortize the UAL would remain at $0 due to Chapter 112.66 of the Florida Statutes), and the funded ratio (excluding the credit balance)would have been 107.6%. Conclusion The remainder of this Report includes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a summary of plan provisions. GRS SECTION B VALUATION RESULTS GRS 5 PARTICIPANT DATA January 1, 2015 January 1, 2014 ACTIVE MEMBERS Number 1,482 1,478 Covered Annual Payroll S 75,078,542 S 74,254,159 Average Annual Payroll S 50,660 S 50,240 Average Age 44.7 44.9 Average Past Service 11.3 11.4 Average Age at Hire 33.4 33.5 RETIREES & BENEFICIARIES Number 990 950 Annual Benefits S 34,727,568 S 32,465,115 Average Annual Benefit S 35,078 S 34,174 Average Age 65.8 65.4 DISABILITY RETIREES Number 135 134 Annual Benefits S 3,642,626 S 3,513,703 Average Annual Benefit S 26,982 S 26,222 Average Age 63.2 62.8 TERMINATED VESTED MEMBERS Number 69 60 Annual Benefits S 1,287,474 S 1,195,914 Average Annual Benefit S 18,659 S 19,932 Average Age 51.7 50.2 GRS 6 ANNUAL REQUIRED CONTRIBUTION (ARC) A. Valuation Date January 1, 2015 January 1, 2015 January 1, 2014 After Before Method Change Method Change B. ARC to Be Paid During Fiscal Year Ending 9/30/2016 9/30/2016 9/30/2015 C. Assumed Date of Employer Contrib. Evenly during Evenly during Evenly during first two quarters first two quarters first two quarters of fiscal year of fiscal year of fiscal year D. Annual Payment to Amortize Unfunded Actuarial Liability S 0 * S 5,464,590 S 5,470,314 E. Employer Normal Cost 8,194,115 164,890 4,626,039 F. ARC if Paid on the Valuation Date: D+E 8,194,115 5,629,480 10,096,353 G. ARC Adjusted for Frequency of Payments 8,767,703 6,023,544 10,803,098 H. ARC as % of Covered Payroll 11.68 % 8.02 % 14.55 % L Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 % 0.00 % 0.00 % J. Covered Payroll for Contribution Year 75,078,542 75,078,542 74,254,159 K. ARC for Contribution Year:H x J 8,767,703 6,023,544 10,803,098 L. Estimate of State Revenue in Contribution Year 12,000 12,000 12,000 M. Required Employer Contribution(REC) in Contribution Year 8,755,703 6,011,544 10,791,098 N. REC as % of Covered Payroll in Contribution Year:M - J 11.66 % 8.01 % 14.53 % O. Credit Balance 10,381,518 10,381,518 5,390,884 * The annual payment to amortize the UAL is $(432,182); however, under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution required to fund the Normal Cost. GRS 7 ACTUARIAL VALUE OF BENEFITS AND ASSETS A. Valuation Date January 1, 2015 January 1, 2015 January 1, 2014 After Before Method Change Method Change B. Actuarial Present Value of All Projected Benefits for 1. Active Members a. Service Retirement Benefits $ 342,575,863 $ 342,575,863 $ 345,222,416 b. Vesting Benefits 35,447,512 35,447,512 35,888,993 c. Disability Benefits 14,668,239 14,668,239 15,029,852 d. Preretirement Death Benefits 5,717,753 5,717,753 5,801,993 e. Return of Member Contributions 2,375,571 2,375,571 2,348,704 f. Total 400,784,938 400,784,938 404,291,958 2. Inactive Members a. Service Retirees & Beneficiaries 468,689,797 468,689,797 441,024,025 b. Disability Retirees 48,987,429 48,987,429 47,629,618 c. Terminated Vested Members 15,467,289 15,467,289 14,311,837 d. Total 533,144,515 533,144,515 502,965,480 3. Total for All Members 933,929,453 933,929,453 907,257,438 C. Actuarial Accrued (Past Service) Liability per GASB No. 25 (FEA Method) N/A 893,971,136 828,489,285 D. Actuarial Accrued Liability under EAN Method 824,274,144 824,274,144 795,927,127 E. Actuarial Value of Accumulated Plan Benefits per FASB No. 35 782,286,584 782,286,584 755,555,771 F. Plan Assets 1. Market Value 897,025,140 897,025,140 846,966,929 2. Actuarial Value 839,868,311 839,868,311 772,411,068 3. Actuarial Value Excluding Credit Balance 829,486,793 N/A N/A G. Actuarial Present Value of Projected Covered Payroll 569,273,667 569,273,667 566,718,213 H. Actuarial Present Value of Projected Member Contributions 50,430,672 50,430,672 50,212,634 L Accumulated Value of Active Member Contributions 58,657,980 58,657,980 57,394,630 J. Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method=D. - F3. (5,212,649) N/A N/A K. Funded Ratio Based on FEA Method=F.2. /C. N/A 93.95% 93.23% L. Funded Ratio Based on EAN Method=F.2. /D. 101.89% 101.89% 97.05% M. Funded Ratio Based on EAN Method Excluding Credit Balance =F3. /D. 100.63% N/A N/A GRS 8 CALCULATION OF EMPLOYER NORMAL COST ENRTRY AGE NORMAL METHOD A. Valuation Date January 1, 2015 After Method Change B. Normal Cost for 1. Service Retirement Benefits $ 10,301,632 2. Vesting 1,994,171 3. Disability Benefits 1,395,826 4. Death Benefits 228,103 5. Refund of Contributions 652,925 6. Total for Future Benefits 14,572,657 7. Assumed Amount for Administrative Expenses 179,906 8. Total Normal Cost 14,752,563 C. Expected Member Contributions 6,558,448 D. Employer Normal Cost: B8 - C 8,194,115 E. Employer Normal Cost as % of Covered Payroll 10.91% GRS 9 CALCULATION OF EMPLOYER NORMAL COST FROZEN ENTRY AGE METHOD A. Valuation Date January 1, 2015 January 1, 2014 Before Method Change B. Actuarial Present Value of Projected Benefits $ 933,929,453 $ 907,257,438 C. Credit Balance 10,381,518 5,390,884 D. Actuarial Value of Assets 839,868,311 772,411,068 E. Unfunded Actuarial Accrued Liability 54,102,825 56,078,217 F. Actuarial Present Value of Projected Member Contributions 50,430,672 50,212,634 G. Actuarial Present Value of Projected Employer Normal Costs:B+C-D-E-F (90,837) 33,946,403 H. Actuarial Present Value of Projected Covered Payroll 569,273,667 566,718,213 L Employer Normal Cost Rate: G/H (0.02) % 5.99 % J. Covered Annual Payroll 75,078,542 74,254,159 K. Employer Normal Cost:I x J (15,016) 4,447,824 L. Assumed Amount of Expenses 179,906 178,215 % of Covered Payroll 0.24 % 0.24 % M. Total Employer Normal Cost:K+ L 164,890 4,626,039 N. Employer Normal Cost as % of Covered Payroll 0.22 % 6.23 % GRS 10 Reconcilation of Credit Balance Credit Balance at Beginning of Year $ 5,390,884 Required Employer Contribution - 10,791,098 Employer Contribution Made + 15,404,370 Interest on Credit Balance + 377,362 Credit Balance at End of Year 10,381,518 GRS 11 LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY A. Derivation of the Current UAAL 1. Last Year's UAAL $ 56,078,217 2. Employer Normal Cost for Contribution Year 4,626,039 3. Last Year's Contributions 10,803,098 4. Interest at the Assumed Rate on: a. 1 and 2 for one year 4,249,298 b. 3 from dates paid 47,631 c. a-b 4,201,667 5. This Year's UAAL Prior to Revision: 1 +2 - 3 + 4c 54,102,825 6. Change in UAAL Due to Plan Amendment 0 7. Change in UAAL Due to Changes in Actuarial Assumptions and Methods (59,315,474) 8. This Year's Revised UAAL: 5 + 6 + 7 (5,212,649) *Excludes the portion of the actual contribution above the required contribution that was used to increase the credit balance. GRS 12 B. UAAL Amortization Period and Payments --Before Fresh Start* Original UAAL Current UAAL Date Years Established Source Amount Remaining Amount Payment 1/1/1987 Supplemental FIL S 1,519,142 2 S 212,917 S 110,059 1/1/1988 Supplemental FIL 1,673,738 3 343,295 122,255 1/1/1989 Supplemental FIL 2,177,772 4 579,578 159,914 1/1/1994 Method Change 3,724,296 9 1,927,655 276,513 1/1/1996 Plan Amendment 15,063,842 11 8,988,069 1,120,207 1/1/2000 Plan Amendment 52,921,724 15 38,407,816 3,941,095 1/1/2002 Assumption Changes (30,846,502) 17 (24,002,682) (2,297,644) 1/1/2007 Assumption Changes (14,695,526) 22 (12,899,890) (1,089,929) 1/1/2013 Plan Amendment (24,560,965) 28 (23,977,904) (1,846,342) 1/1/2013 Assumption Changes 66,092,975 28 64,523,971 4,968,462 1/1/2015 Method Change (59,315,474) 25 (59,315,474) (4,756,908) 13,755,022 (5,212,649) 707,682 C. UAAL Amortization Period and Payments -- After Fresh Start* Original UAAL Current UAAL Date Years Established Source Amount Remaining Amount Payment 1/1/2015 Fresh Start S (5,212,649) 23 S (5,212,649) S (432,182) (5,212,649) (5,212,649) (432,182) *As stated in the Plan's Funding Policy, amortization bases are combined and offset, in accordance with the methodology described for combining and offsetting amortization bases under Internal Revenue Code Section 412(b), if the sum of the outstanding bases is positive while the sum of the amortization payments is negative, or vice versa. GRS 13 D. Amortization Schedule The UAAL is being liquidated as a level dollar amount over the number of years remaining in the amortization period. The expected amortization schedule is as follows: Amortization Schedule Year Expected UAAL 2015 $ (5,212,649) 2016 (5,115,102) 2017 (5,010,724) 2018 (4,899,040) 2019 (4,779,538) 2020 (4,651,671) 2025 (3,864,868) 2030 (2,761,336) 2035 (1,213,575) 2038 - GRS 14 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 5.99 % 2. Current Valuation LQM 3. Difference: 1 - 2 6.01 B. Actuarial Present Value of Projected Covered Payroll $ 569,273,667 C. Net Actuarial Gain (Loss):A3 x B 34,213,347 D. Gain (Loss) due to Investments 31,235,710 E. Gain (Loss) due to other sources 2,977,637 Gains (losses)in previous years have been as follows: Year Ending Gain Change in 12/31 (Loss) NC Rate 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) 2014 34,213,347 (6.01) GRS 15 The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan so it is important that they are in line with the actual experience. The following table shows the actual fund earnings and salary increase rates compared to the assumed rates for the last few years: Investment Return Salary Increases Year Ending Actual Assumed Actual Assumed 12/31/1986 N/A 7.00 % 7.40 % 5.00 % 12/31/1987 N/A 7.00 5.90 5.00 12/31/1988 N/A 7.00 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 12/31/2014 11.04 7.00 3.38 4.04 Averages 7.95 % --- 5.33 % --- The actual investment return rates shown above are based on the actuarial value of assets. The actual salary increase rates shown above are the increases received by those active members who were included in the actuarial valuations both at the beginning and the end of each year. GRS 16 History of Investment Return Based on Actuarial Value of Assets 30% 30% 25% 25% 20% 20% 15% ' 15% 10% 10% 5% 5% 0% 0% -5% 5% -10% -10% -15% -15% Plan Year End Actual Assumed History of Salary Increases 15% 15% 10% 10% 5% 40 5% 0% 0% \zp y4vw01 yIbq \41\41 41��a�wq wq�wgawoowo�w�w�^w�w05w�w��w01woaw�o�w��w��^ Plan Year End Compared to Previous Year —R—Actual 0 Assumed GRS 17 Actual(A) Compared to Expected(E) Decrements Among Active Employees Number Added Active During Service Disability Terminations Members Year Year Retirement Retirement Death Vested Other Totals End of Ended A F 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 135 131 45 51 5 3 2 2 21 58 79 78 1,482 12/31/2015 52 3 2 82 6 Yr Totals * 567 713 288 302 18 30 10 12 86 311 397 500 * Totals are through current Plan Year only. Actual(A) Compared to Expected(E) Deaths Among Retirees and Beneficiaries Actual During Year Ex ected During Year Year Annual Annual Ended Number Pensions Number Pensions 12/31/2009 12 $ 142,606 16 $ 313,189 12/31/2010 12 139,508 18 363,242 12/31/2011 13 220,877 19 416,467 12/31/2012 12 232,755 20 466,010 12/31/2013 20 401,192 20 480,787 12/31/2014 16 275,728 21 510,892 12/31/2015 22 558,306 GRS 18 0 0 t 00 M o Fw d _ 0 M CL N 00 N EA O O N z z z � 00 �o o w w � t M „ z z z o N o .� .y l— 00 M O 00 j M V1 N M 00 N P4 U N cl z z z r- W M � N U O CC W r- O r- 0\ N ' 0 l— l— l— 00 Gn ° ? p x o, 0000 r- o O 0 c� Ic � C, N o a oo N O r- � O r- o a Ic r- m m r- m o m 4 w Wd C, o c oo c n oo � N N a 7Z C � r- 00 00 l� O O IO N vii r- �' N cl a r- 00 00 00 r- r- r- r- r- N O O Zt cn � N -- N GRS 19 N �O O M CO V� CO M r••' M CO � � � N O O V� O 01 M CO 01 �O CO O 69 •� O O O O O O O O i V 69 QI S. 01 l� CO 01 �O N l� 01 i V� O 01 M CO 01 V� l� 69 U O U W o 0 W N N N N N N N N N cl A � O N O M O� CO O O� O CO N N cl 69 r�i p [� U cn "O S, e+••C •� O O O O O O O O O W I� Ol Ol Ol Ol Ol Ol Ol Ol Ol cn V') GRS 20 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 an Individual Entry-Age Actuarial Cost Method having the following characteristics: (i) the annual normal cost for each individual active member, payable from the date of employment to the date of retirement, is sufficient to accumulate the value of the member's benefit at the time of retirement; (ii) each annual normal cost is a constant percentage of the member's year by year projected covered pay. Actuarial gains/(losses), as they occur,reduce (increase) the Unfunded Actuarial Accrued Liability. 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. GRS 21 % Increase in Salary-Hazardous Duty Years of Merit and Base Total Service Se niority (Inflation) Increase 1 5.40% 2.50% 7.90% 2 5.20% 2.50% 7.70% 3 4.50% 2.50% 7.00% 4 2.75% 2.50% 5.25% 5 - 14 1.75% 2.50% 4.25% 15 and Higher 1.00% 2.50% 3.50% % Increase in Salary-Non-Hazardous Duty Years of Merit and Base Total Service Se niority (Inflation) Increase 1 5.40% 2.50% 7.90% 2 3.25% 2.50% 5.75% 3 2.50% 2.50% 5.00% 4 2.00% 2.50% 4.50% 5 - 9 1.50% 2.50% 4.00% 10 and Higher 1.00% 2.50% 3.50% 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 Probability of Future Life Attaine d Dying Next Year Expectancy(years) Ages (in 2015) Men Women Men Women 50 0.20 % 0.16 % 35.47 37.90 55 0.35 0.25 30.34 32.75 60 0.61 0.43 25.40 27.73 65 1.06 0.81 20.73 22.97 70 1.77 1.40 16.42 18.57 75 3.02 2.35 12.54 14.60 80 5.13 3.83 9.21 11.10 GRS 22 The rates of retirement used to measure the probability of eligible members retiring under normal and early retirement eligibility during the next year were as follows: Hazardous Duty Retirement Years of Probability of Service Age Re tire me nt 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 Non-Hazardous Duty Retirement Years of Probability of Service Age Re tire me nt 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 GRS 23 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. Hazardous Duty Withdrawal-Males and Females 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 Non-Hazardous Duty Withdrawal-Males Non-Hazardous Duty Withdrawal-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 GRS 24 Rates of disability among active members (100% of disabilities are assumed to be service-connected). Hazardous Duty Disability % of Active Members Becoming Sample Disabled Within Next Year Ages Males Females 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 Non-Hazardous Duty Disability % of Active Members Becoming Sample Disabled Within Next Year Ages Males Females 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 GRS 25 Miscellaneous and Technical Assumptions Administrative&Investment The investment return assumption is intended to be the net return after Expenses 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. GRS 26 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. GRS 27 GLOSSARY Actuarial Accrued Liability The difference between the Actuarial Present Value of Future Benefits, (AAL) 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 The amount of funds required to provide a payment or series of payments (APV) in the future. It is determined by discounting the future payments with an assumed interest rate and with the assumed probability each payment will be made. Actuarial Present Value of The Actuarial Present Value of amounts which are expected to be paid at Future Benefits(APVFB) various future times to active members, retired members, beneficiaries receiving benefits, and inactive, nonretired members entitled to either a refund or a future retirement benefit. Expressed another way, it is the value that would have to be invested on the valuation date so that the amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due. Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental retirement system typically also includes calculations of the Funded Ratio and the Annual Required Contribution(ARC). Actuarial Value ofAssets The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results, such as the funded ratio and the actuarially required contribution(ARC). GRS 28 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 The employer's periodic required contributions, expressed as a dollar Contribution(ARC) amount or a percentage of covered plan compensation. The ARC consists of the Employer Normal Cost and Amortization Payment. Closed Amortization Period A specific number of years that is reduced by one each year, and declines to zero with the passage of time. For example if the amortization period is initially set at 30 years,it is 29 years at the end of one year, 28 years at the end of two years, etc. Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is equal to the Normal Cost less expected member contributions. Equivalent Single For plans that do not establish separate amortization bases (separate Amortization Period components of the UAAL), this is the same as the Amortization Period. For plans that do establish separate amortization bases, this is the period over which the UAAL would be amortized if all amortization bases were 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. 27 and These are the governmental accounting standards that set the accounting GASB No. 67 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. 67 sets the rules for the systems themselves. GRS 29 Normal Cost The annual cost assigned,under the Actuarial Cost Method, to the current plan year. Open Amortization Period An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 30 years, the same 30-year period is used in determining the Amortization Period each year. In theory, if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued The difference between the Actuarial Accrued Liability and Actuarial Liability Value of Assets. Valuation Date The date as of which the Actuarial Present Value of Future Benefits are determined. The benefits expected to be paid in the future are discounted to this date. GRS SECTION C PENSION FUND INFORMATION GRS 30 Statement of Plan Assets at Market Value December 31 Item 2014 2013 A. Cash and Cash Equivalents (Operating Cash) B. Receivables 1. Member Contributions - 2. Employer Contributions 8,100,300 9,952,096 3. Investment Income and Other Receivables 2,512,142 2,292,919 4. Total Receivables $ 10,612,442 S 12,245,015 C. Investments 1. Short-Term Investments S 11,566,747 S 9,676,179 2. Domestic Equities 450,794,323 460,060,234 3. International Equities 110,222,671 117,012,468 4. Commodities - - 5. Domestic Fixed Income 266,691,996 211,304,582 6. International Fixed Income - - 7. Real Estate 48,080,996 37,586,593 8. Private Equity - - 9. Total Investments S 887,356,733 S 835,640,056 D. Liabilities 1. Benefits Payable - 2. Accrued Expenses and Other Payables (944,035) (918,142) 3. Total Liabilities S (944,035) S (918,142) E. Total Market Value of Assets Available for Benefits S 897,025,140 S 846,966,929 F. Allocation of Investments 1. Short-Term Investments 1.30% 1.16% 2. Domestic Equities 50.80% 55.05% 3. International Equities 12.42% 14.00% 4. Commodities 0.00% 0.00% 5. Domestic Fixed Income 30.06% 25.29% 6. International Fixed Income 0.00% 0.00% 7. Real Estate 5.42% 4.50% 8. Private Equity 0.00% 0.00% 9. Total Investments 100.00% 100.00% GRS 31 Reconciliation of Plan Assets December 31 Item 2014 2013 A. Market Value of Assets at Beginning of Year $ 846,966,929 $ 735,778,899 B. Revenues and Expenditures 1. Contributions a. Employee Contributions $ 7,095,129 S 6,262,146 b. Employer Contributions 15,404,370 18,199,028 c. State Contributions 12,000 12,000 d. Total S 22,511,499 S 24,473,174 2. Investment Income a. Interest, Dividends, and Other Income S 16,733,940 S 15,416,386 b. Net Realized Gains/(Losses) 54,622,256 40,982,231 c. Net Unrealized Gains/(Losses) 499,182 71,698,485 d. Investment Expenses (4,898,709) (4,773,288) e. Net Investment Income S 66,956,669 S 123,323,814 3. Benefits and Refunds a. Refunds S (1,393,782) S (1,029,146) b. Regular Monthly Benefits (37,836,269) (35,401,597) c. Partial Lump-Sum Benefits Paid - - d. Total S (39,230,051) S (36,430,743) 4. Administrative and Miscellaneous Expenses S (179,906) S (178,215) 5. Transfers C. Market Value of Assets at End of Year S 897,025,140 S 846,966,929 GRS 32 o N N � —ct U rl N W O N N o O O N cz N N cz O � � y o n v cz N 00 N cz I O � > C8 cyC r N c� C� ry N 1p 01 V7 M N M l� 01 00 1p M N 1p 00 00 V7 V7 --� 01 � � � O O Ol 00 Ol M VO V'� N V7 O 00 1p 00 M M --� c Q •� l� 01 � --� 1p V7 --� --� --� N M ,�-i --� M --� N 00 V'� �'�, O � Ff3 Ff3 Ff3 Ff3 Ff3 Ff3 Ff3 Ff3 Ff3 U cz r+ 8 N cC U > Ol Ol o N N 1p V7 M 00 M Ol 00 V7 M 00 00 --� 0 0 0 r'�i r••' M M 1p l� M N N 01 M l� 01 00 01 00 1p l� V'� --� --� 01 � 00 Ap v7 N M O N 00 O O v N �,O h N N v t O �' � U N Y O >> c cz 0 4.1 M cz cz un W m cz a4 cz to U cz 75 cz cz to cz cz " to O i cz 09 to 4. o ° o p J, cz cz cz a ° o cz cz ct ct rw a a 3 o ° ° ° ° a 3 U ; > w ° o °' a cz N cn N cn vj �O v N cn vj �O P.4° d W W W W P w w w w w w C7 z,7 CD z,7 C'7 z,7 rx Q � � � 4° � U = ¢ A1UQW C7 ti —c -z GRS 33 Investment Rate of Return Plan Year Ending December 31 Market* Actuarial* 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 2014 7.99 11.04 Average returns: Last five years: 10.99 % 8.14 % Last ten years: 7.49 % 6.76 % All years: 9.48 % 7.95 % *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. GRS SECTION D FINANCIAL ACCOUNTING INFORMATION GRS 34 FASB NO. 35 INFORMATION A. Valuation Date January 1, 2015 January 1, 2014 B. Actuarial Present Value of Accumulated Plan Benefits 1. Vested Benefits a. Members Currently Receiving Payments $ 517,677,226 $ 488,653,643 b. Terminated Vested Members 15,467,289 14,311,837 c. Other Members 232,124,866 234,953,244 d. Total 765,269,381 737,918,724 2. Non-Vested Benefits 17,017,203 17,637,047 3. Total Actuarial Present Value of Accumulated Plan Benefits: Id+2 782,286,584 755,555,771 4. Accumulated Contributions of Active Members 58,657,980 57,394,630 C. Changes in the Actuarial Present Value of Accumulated Plan Benefits 1. Total Value at Beginning of Year 755,555,771 729,923,831 2. Increase (Decrease) During the Period Attributable to: a. Plan Amendment 0 0 b. Change in Actuarial Assumptions 0 0 c. Latest Member Data, Benefits Accumulated and Decrease in the Discount Period 65,960,864 62,062,683 d. Benefits Paid (39,230,051) (36,430,743) e. Net Increase 26,730,813 25,631,940 3. Total Value at End of Period 782,286,584 755,555,771 D. Market Value of Assets 897,025,140 846,966,929 E. Actuarial Assumptions - See page entitled Actuarial Assumptions and Methods GRS 35 REQUIRED SUPPLEMENTARY INFORMATION GASB Statement 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 1,2015 Contribution Rates Employer(and State) 11.68% Plan members Hazardous: 10.00% (8.00%if grandfathered) Non-Hazardous: 8.00% Actuarial Cost Method Entry Age Normal Amortization Method Level dollar, closed Remaining Amortization Period 23 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) GRS SECTION E MISCELLANEOUS INFORMATION GRS 36 RECONCILIATION OF MEMBERSHIP DATA From 1/1/2014 From 1/1/2013 To 1/1/2015 To 1/1/2014 A. Active Members 1. Number Included in Last Valuation 1,478 1,474 2. New Members Included in Current Valuation 134 102 3. Non-Vested Employment Terminations (58) (54) 4. Vested Employment Terminations (21) (11) 5. Service Retirements (45) (27) 6. Disability Retirements (5) (2) 7. Deaths (2) (4) 8. Data Corrections/Rehired Members 1 0 9. Number Included in This Valuation 1,482 1,478 B. Terminated Vested Members 1. Number Included in Last Valuation 60 64 2. Additions from Active Members 21 11 3. Lump Sum Payments/Refund of Contributions (5) (4) 4. Payments Commenced (7) (11) 5. Deaths 0 0 6. Conversion from Disability/Rehired Members 0 0 7. Data Corrections 0 0 8. Number Included in This Valuation 69 60 C. Service Retirees,Disability Retirees and Beneficiaries 1. Number Included in Last Valuation 1,084 1,063 2. Additions from Active Members 50 29 3. Additions from Terminated Vested Members 7 11 4. Deaths Resulting in No Further Payments (16) (20) 5. Deaths Resulting in New Survivor Benefits 2 1 6. End of Certain Period-No Further Payments (2) 0 7. Data Correction/Waiver of Benefits 0 0 8. Number Included in This Valuation 1,125 1,084 GRS 37 ACTIVE PARTICIPANT DISTRIBUTION ALL ACTIVE MEMBERS Years ofService to Valuation Date 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 15-19 NO. 2 0 0 0 0 0 0 0 0 0 0 0 2 TOT PAY 47,026 0 0 0 0 0 0 0 0 0 0 0 47,026 AVG PAY 23,513 0 0 0 0 0 0 0 0 0 0 0 23,513 20-24 NO. 23 13 1 1 1 0 0 0 0 0 0 0 39 TOT PAY 728,891 368,532 32,017 36,748 37,120 0 0 0 0 0 0 0 1203,308 AVG PAY 31,691 28,349 32,017 36,748 37,120 0 0 0 0 0 0 0 30,854 25-29 NO. 29 22 16 15 5 33 2 0 0 0 0 0 122 TOT PAY 984,523 847,075 578,789 568,149 198,055 1,471,804 79,321 0 0 0 0 0 4,727,716 AVG PAY 33,949 38,503 36,174 37,877 39,611 44,600 39,660 0 0 0 0 0 38,752 30-34 NO. 24 18 11 11 4 70 23 0 0 0 0 0 161 TOT PAY 772,972 775,956 444,804 520,132 142,127 3,553,695 1206,777 0 0 0 0 0 7,416,463 AVG PAY 32207 43,109 40,437 47285 35,532 50,767 52,469 0 0 0 0 0 46,065 35-39 NO. 16 12 7 10 5 54 43 16 0 0 0 0 163 TOT PAY 567,340 534,474 265,011 367,966 206,671 3,199,642 2,466,559 1,121,686 0 0 0 0 8,729,349 AVG PAY 35,459 44,540 37,859 36,797 41,334 59253 57,362 70,105 0 0 0 0 53,554 40-44 NO. 9 6 9 7 9 57 63 54 11 0 0 0 225 TOT PAY 285,446 239,659 350,492 303,774 399,835 2,669,412 3,888,574 3,832,596 805,163 0 0 0 12,774,951 AVG PAY 31,716 39,943 38,944 43,396 44,426 46,832 61,723 70,974 73,197 0 0 0 56,778 45-49 NO. 12 4 9 5 4 32 57 65 37 6 0 0 231 TOT PAY 407,128 177,746 374,979 219,176 140,064 1,478,955 3203,490 4,191,323 2,711,846 435,966 0 0 13,340,673 AVG PAY 33,927 44,436 41,664 43,835 35,016 46217 56202 64,482 73293 72,661 0 0 57,752 50-54 NO. 16 5 7 6 4 29 43 41 32 32 4 0 219 TOT PAY 564,475 208,185 224,196 270930 128,487 1246,611 1,914,135 2266,614 2,187,930 2,047,041 260275 0 11,318,879 AVG PAY 35280 41,637 32,028 45,155 32,122 42,987 44,515 55283 68,373 63,970 65,069 0 51,684 55-59 NO. 3 5 5 5 3 30 30 41 25 21 6 0 174 TOT PAY 100277 156,102 165,752 182,375 109,101 1,355,390 1226,906 1,996,809 1,408,327 1269,350 389205 0 8,359,594 AVG PAY 33,426 31220 33,150 36,475 36,367 45,180 40,897 48,703 56,333 60,445 64,868 0 48,044 60-64 NO. 2 3 4 3 2 17 19 24 17 12 4 1 108 TOT PAY 59,818 105,056 106287 153,148 98,816 800,473 771,727 1248,602 925,894 760,416 292,910 41,491 5,364,638 AVG PAY 29,909 35,019 26,572 51,049 49,408 47,087 40,617 52,025 54,464 63,368 73228 41,491 49,673 65+NO. 0 0 1 1 1 8 10 4 6 6 1 0 38 TOT PAY 0 0 35,922 24,937 45,619 369,739 422,588 182,611 348,114 305,577 60,838 0 1,795,945 AVG PAY 0 0 35,922 24,937 45,619 46217 42259 45,653 58,019 50,930 60,838 0 47262 TOT NO. 136 88 70 64 38 330 290 245 128 77 15 1 1,482 TOT AMT 4,517,896 3,412,785 2,578,249 2,647,335 1,505,895 16,145,721 15,180,077 14,840241 8,387,274 4,818,350 1,003,228 41,491 75,078,542 11AVG AMT 33,220 38,782 36,832 41,365 39,629 48,926 52,345 60,572 65,526 62,576 66,882 41,491 50,660 GRS 38 ACTIVE PARTICIPANT DISTRIBUTION HAZARDOUS DUTY MEMBERS Years of Service to Valuation Date 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 15-19 NO. 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTPAY 0 0 0 0 0 0 0 0 0 0 0 0 0 AVGPAY 0 0 0 0 0 0 0 0 0 0 0 0 0 20-24 NO. 7 0 0 0 0 0 0 0 0 0 0 0 7 TOTPAY 311,537 0 0 0 0 0 0 0 0 0 0 0 311,537 AVGPAY 44,505 0 0 0 0 0 0 0 0 0 0 0 44,505 25-29 NO. 8 7 2 3 1 12 0 0 0 0 0 0 33 TOTPAY 363,845 382,643 119,873 187,695 57,813 762,760 0 0 0 0 0 0 1,874,629 AVGPAY 45,481 54,663 59,937 62,565 57,813 63,563 0 0 0 0 0 0 56,807 30-34 NO. 6 7 4 5 0 32 8 0 0 0 0 0 62 TOTPAY 265,329 404,603 236,489 321,577 0 2,211,863 641,383 0 0 0 0 0 4,081,244 AVGPAY 44,222 57,800 59,122 64,315 0 69,121 80,173 0 0 0 0 0 65,827 35-39 NO. 3 5 1 1 0 33 22 11 0 0 0 0 76 TOTPAY 126,333 292,169 64,110 65,747 0 2,209,238 1,616,897 933,940 0 0 0 0 5,308,434 AVGPAY 42,111 58,434 64,110 65,747 0 66,947 73,495 84,904 0 0 0 0 69,848 40-44 NO. 0 1 0 1 2 17 35 34 6 0 0 0 96 TOTPAY 0 61,031 0 58,778 117,527 1,163,664 2,725,430 2,900,446 559,122 0 0 0 7,585,998 AVGPAY 0 61,031 0 58,778 58,764 68,451 77,869 85,307 93,187 0 0 0 79,021 45-49 NO. 2 0 1 1 0 7 23 30 21 1 0 0 86 TOTPAY 105,825 0 74,306 57,292 0 515,996 1,749,379 2,560,621 1,922,461 92,304 0 0 7,078,184 AVGPAY 52,913 0 74,306 57,292 0 73,714 76,060 85,354 91,546 92,304 0 0 82,304 50-54 NO. 2 0 0 1 0 3 6 5 14 7 1 0 39 TOTPAY 137,970 0 0 86,936 0 266,988 416,923 465,910 1,202,251 636,473 115,098 0 3,328,549 AVGPAY 68,985 0 0 86,936 0 88,996 69,487 93,182 85,875 90,925 115,098 0 85,347 55-59 NO. 0 0 0 0 0 5 0 2 1 2 3 0 13 TOTPAY 0 0 0 0 0 453,793 0 154,635 92,123 207,657 253,168 0 1,161,376 AVGPAY 0 0 0 0 0 90,759 0 77,318 92,123 103,829 84,389 0 89,337 60-64 NO. 0 0 0 0 0 3 1 1 0 0 1 0 6 TOTPAY 0 0 0 0 0 225,562 75,777 77,264 0 0 119,661 0 498,264 AVGPAY 0 0 0 0 0 75,187 75,777 77,264 0 0 119,661 0 83,044 65+NO. 0 0 0 0 0 1 0 0 0 0 0 0 1 TOTPAY 0 0 0 0 0 126,925 0 0 0 0 0 0 126,925 AVGPAY 0 0 0 0 0 126,925 0 0 0 0 0 0 126,925 TOT NO. 28 20 8 12 3 113 95 83 42 10 5 0 419 TOT AMT 1,310,839 1,140,446 494,778 778,025 175,340 7,936,789 7,225,789 7,092,816 3,775,957 936,434 487,927 0 31,355,140 AVGAMT 46,816 57,022 61,847 64,835 58,447 70,237 76,061 85,456 89,904 93,643 97,585 0 74,833 GRS 39 ACTIVE PARTICIPANT DISTRIBUTION NON-HAZARDOUS DUTY MEMBERS Years of Service to Valuation Date 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 15-19 NO. 2 0 0 0 0 0 0 0 0 0 0 0 2 TOTPAY 47,026 0 0 0 0 0 0 0 0 0 0 0 47,026 AVG PAY 23,513 0 0 0 0 0 0 0 0 0 0 0 23,513 20-24 NO. 16 13 1 1 1 0 0 0 0 0 0 0 32 TOTPAY 417,354 368,532 32,017 36,748 37,120 0 0 0 0 0 0 0 891,771 AVG PAY 26,085 28,349 32,017 36,748 37,120 0 0 0 0 0 0 0 27,868 25-29 NO. 21 15 14 12 4 21 2 0 0 0 0 0 89 TOTPAY 620,678 464,432 458 916 380,454 140242 709,044 79,321 0 0 0 0 0 2,853,087 AVG PAY 29,556 30,962 32,780 31,705 35,061 33,764 39,661 0 0 0 0 0 32,057 30-34 NO. 18 11 7 6 4 38 15 0 0 0 0 0 99 TOTPAY 507,643 371,353 208,315 198,555 142,127 1,341,832 565,394 0 0 0 0 0 3,335,219 AVG PAY 28,202 33,759 29,759 33,093 35,532 35,311 37,693 0 0 0 0 0 33,689 35-39 NO. 13 7 6 9 5 21 21 5 0 0 0 0 87 TOTPAY 441,007 242,305 200901 302219 206,671 990,404 849,662 187,746 0 0 0 0 3,420,915 AVG PAY 33,924 34,615 33,484 33,580 41,334 47,162 40,460 37,549 0 0 0 0 39,321 40-44 NO. 9 5 9 6 7 40 28 20 5 0 0 0 129 TOTPAY 285,446 178,628 350,492 244996 282,308 1,505,748 1,163,144 932,150 246,041 0 0 0 5,188,953 AVG PAY 31,716 35,726 38,944 40,833 40,330 37,644 41,541 46,608 49,208 0 0 0 40,224 45-49 NO. 10 4 8 4 4 25 34 35 16 5 0 0 145 TOTPAY 301,303 177,746 300,673 161,884 140,064 962959 1,454,111 1,630,702 789,385 343,662 0 0 6,262,489 AVG PAY 30,130 44,437 37,584 40,471 35,016 38,518 42,768 46,591 49,337 68,732 0 0 43,190 50-54 NO. 14 5 7 5 4 26 37 36 18 25 3 0 180 TOTPAY 426,505 208,185 224,196 183994 128,487 979,623 1,497,212 1,800,704 985,679 1,410,568 145,177 0 7,990,330 AVG PAY 30,465 41,637 32,028 36,799 32,122 37,678 40,465 50,020 54,760 56,423 48,392 0 44,391 55-59 NO. 3 5 5 5 3 25 30 39 24 19 3 0 161 TOTPAY 100277 156,102 165,752 182,375 109,101 901,597 1,226,906 1,842,174 1,316,204 1,061,693 136,037 0 7,198,218 AVG PAY 33,426 31,220 33,150 36,475 36,367 36,064 40,897 47,235 54,842 55,879 45,346 0 44,709 60-64 NO. 2 3 4 3 2 14 18 23 17 12 3 1 102 TOTPAY 59,818 105,056 106287 153,148 98,816 574911 695950 1,171,338 925,894 760,416 173249 41,491 4,866,374 AVG PAY 29,909 35,019 26,572 51,049 49,408 41,065 38,664 50,928 54,464 63,368 57,750 41,491 47,710 65+NO. 0 0 1 1 1 7 10 4 6 6 1 0 37 TOTPAY 0 0 35,922 24,937 45,619 242,814 422,588 182,611 348,114 305,577 60,838 0 1,669,020 AVG PAY 0 0 35,922 24,937 45,619 34,688 42,259 45,653 58,019 50,930 60,838 0 45,109 TOT NO. 108 68 62 52 35 217 195 162 86 67 10 1 1,063 TOT AMT 3,207,057 2,272,339 2,083,471 1,869,310 1,330,555 8,208,932 7,954,288 7,747,425 4,611,317 3,881,916 515,301 41,491 43,723,402 AVG AMT 29,695 33,417 33,604 35,948 38,016 37,829 40,791 47,824 53,620 57,939 51,530 41,491 41,132 GRS 40 INACTIVE PARTICIPANT DISTRIBUTION Deceased with Terminated Vested Disabled Retired Beneficiary Total Total Total Total Age Group Number Benefits Number Benefits Number Benefits Number Benefits Under 20 - - - - - - 7 83,257 20-24 - - - - - - - - 25-29 - - - - - - - - 30-34 - - 1 39,954 - - 1 32,634 35-39 4 57,251 - - - - - - 40-44 9 144,523 5 222,695 2 46,367 1 49,427 45-49 12 287,494 4 142,570 21 974,746 6 102,512 50-54 25 498,901 16 586,982 62 2,934,878 2 47,380 55-59 8 126,917 23 575,597 147 6,229,913 13 286,710 60-64 11 172,388 29 763,159 201 8,389,890 13 281,770 65-69 - - 26 648,884 218 7,807,570 17 392,674 70-74 - - 13 244,481 94 3,112,481 17 350,945 75-79 - - 10 259,986 55 1,679,118 20 299,893 80-84 - - 6 128,688 33 859,107 16 206,407 85-89 - - 2 29,630 11 218,729 16 187,818 90-94 - - - - 10 120,860 3 17,042 95-99 - - - - 1 4,501 3 10,939 100&Over - - - - - - - - Total 69 1,287,474 135 3,642,626 855 32,378,160 135 2,349,408 Average Age 52 63 65 69 GRS SECTION F SUMMARY OF PLAN PROVISIONS GRS 41 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. GRS 42 L 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. I Normal Retirement Eligibility: For Non-Hazardous DutEmployment 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 DutEmployment-Police Officers and Firefighters (and Grandfathered Non-Hazardous DutEmployment) 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. GRS 43 COLA: For Non-Hazardous DutEmployment 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 DutEmployment-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 DutEmployment 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 GRS 44 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 DutEmployment-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 DutEmployment-Police Officers and Firefighters (and Grandfathered Non-Hazardous DutEmployment) 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 DutEmployment 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 DutEmployment-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. GRS 45 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 DutEmployment(Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous DutEmployment-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 DutEmployment 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 DutEmployment-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. GRS 46 COLA: For Non-Hazardous DutEmployment 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 DutEmployment-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 DutEmployment 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 DutEmployment-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. GRS 47 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. %of Normal Years of Credited Retirement Service Benefits Less Than 10 0% 10 or more 100% Benefit: The participant's accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the member's Normal Retirement date.Alternatively,police officers and firefighters may elect to receive an actuarially reduced Early Retirement Benefit any time after age 50. Normal Form of Benefit: For Non-Hazardous DutEmployment(Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous DutEmployment-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. GRS 48 COLA: For Non-Hazardous DutEmployment 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 DutEmployment-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. GRS 49 For Hazardous DutEmployment-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 13`h 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. GRS