04/13/2015Monday, April 13, 2015
1:00 PM
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Pension Trustees
Meeting Agenda
April 13, 2015Pension Trustees Meeting Agenda
1. Call To Order
2. Approval of Minutes
2.1 ID#15-1174 Approve the minutes of the March 16, 2015 Pension Trustees meeting as
submitted in written summation by the City Clerk.
3. Citizens to be Heard Regarding Items Not on the Agenda
4. New Business Items
4.1 ID#15-1082 Approve the new hires for acceptance into the Pension Plan as listed.
4.2 ID#15-1083 Approve the following request of Karen Maldonado, Engineering Department,
to vest her pension as provided by Section 2.419 of the Employees’ Pension
Plan.
4.3 ID#15-1084 Approve the following request of employees Etheridge Hall, Police
Department; Marianna Mallon, Police Department, and Leonard Rickard, Fire
Department, for a regular pension as provided by Sections 2.416 and 2.424 of
the Employees’ Pension Plan.
4.4 ID#15-1160 Determine Trustees’ expected rate of return for the pension plan’s investment
for the current year, for each of the next several years, and for the long term
thereafter.
4.5 ID#15-1166 Accept the January 1, 2015 Annual Actuarial Valuation for the Employees’
Pension Plan.
4.6 ID#15-1167 Annual review of the Employees’ Pension Plan investment performance for the
calendar and plan year ended December 31, 2014.
5. Adjourn
Page 2 City of Clearwater Printed on 4/8/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1174
Agenda Date: 4/13/2015 Status: Agenda ReadyVersion: 1
File Type: MinutesIn Control: Pension Trustees
Agenda Number: 2.1
SUBJECT/RECOMMENDATION:
Approve the minutes of the March 16, 2015 Pension Trustees meeting as submitted in written
summation by the City Clerk.
SUMMARY:
APPROPRIATION CODE AND AMOUNT:
USE OF RESERVE FUNDS:
Page 1 City of Clearwater Printed on 4/8/2015
Pension Trustees Meeting Minutes March 16, 2015
City of Clearwater
City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
Meeting Minutes
Monday, March 16, 2015
1:00 PM
Pension Trustees
Page 1 City of Clearwater
Draft
Pension Trustees Meeting Minutes March 16, 2015
Roll Call
Present 4 - Chair George N. Cretekos, Trustee Doreen Hock-DiPolito, Trustee
Jay E. Polglaze, and Trustee Bill Jonson
Absent 1 - Trustee Hoyt Hamilton
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 Cretekos
The meeting was called to order at 1:09 p.m. at City Hall.
2. Approval of Minutes
2.1 Approve the minutes of the February 17, 2015 Pension Trustees meeting as
submitted in written summation by the City Clerk.
Trustee Jonson moved to approve the minutes of the February 17,
2015 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 Regarding Items Not on the Agenda – None.
4. New Business Items
4.1 Approve the new hires for acceptance into the Pension Plan as listed.
Pension
Name, Job. Class, & Dept./Div. Elig. Date
Donald Ross, Building Construction Inspector, Planning and Dev Dept 1/12/2015
Daniel Simpson, Engineering Specialist II, Engineering Dept 1/12/2015
John Ryder, Solid Waste Equipment Operator, Solid Waste Dept 1/12/2015*
Julia Daniel, Accounting Clerk, General Services Department 1/12/2015**
Richard Phillips, Fleet Mechanic, General Services Department 1/12/2015
Page 2 City of Clearwater
Draft
Pension Trustees Meeting Minutes March 16, 2015
* John Ryder was previously employed with the City of Clearwater, resigned
effective 08/22/14, rescinded resignation and was rehired 01/12/15; he will be
eligible for pension as of 01/12/15.
** Julia Daniel was hired as a seasonal employee 12/22/14, then transferred to
a full-time permanent position as of 01/12/15; she will be eligible for the
pension as of 01/12/15.
Trustee 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 Lynne Pulizotto, Planning and
Development Services Department, and James Wood, Solid Waste General Services
Department, for a regular pension as provided by Sections 2.416 and 2.424 of the
Employees’ Pension Plan.
Lynne Pulizotto, Customer Service Representative, Planning and Development
Services Department, was employed by the City on November 20, 2000 and
her pension service credit is effective on that date. Her pension will be
effective March 1, 2015. Based on an average salary of approximately
$27,813.07 over the past five years, the formula for computing regular
pensions and Ms. Pulizotto’s selection of the 50% Joint and Survivor Annuity,
this pension benefit will be approximately $10,299.48 annually.
James Wood, Building and Maintenance Superintendent, Solid Waste General
Services Department, was employed by the City on April 20, 1987, and his
pension service credit is effective on that date. His pension will be effective
April 1, 2015. Based on an average salary of approximately $82,376.59 over
the past five years, the formula for computing regular pensions and Mr.
Wood’s selection of the 50% Joint and Survivor Annuity, this pension benefit
will be approximately $60,092.16 annually.
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 fifty-five 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
Page 3 City of Clearwater
Draft
Pension Trustees Meeting Minutes March 16, 2015
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. Pulizotto and Mr. Wood have met the non-hazardous
duty criteria.
Trustee Polglaze moved to approve the following request of
employees Lynne Pulizotto, Planning and Development Services
Department, and James Wood, Solid Waste General Services
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 following request of employee Brian Jerard, Police Department, to vest
his pension as provided by Section 2.419 of the Employees’ Pension Plan.
Brian Jerard, Police Officer, Police Department, was employed by the City on
December 2, 2002 and began participating in the Pension Plan on that date.
Mr. Jerard terminated from City employment on January 10, 2015.
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 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 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. Jerard will meet the
hazardous duty criteria and begin collecting pension in January 2023.
Trustee Jonson moved to approve the following request of
employee Brian Jerard, Police Department, to vest his pension as
provided by Section 2.419 of the Employees’ Pension Plan. The
motion was duly seconded and carried unanimously.
Page 4 City of Clearwater
Draft
Pension Trustees Meeting Minutes March 16, 2015 5. Adjourn
The meeting adjourned at 1:11 p.m.
Chair
Employees’ Pension Plan Trustees
Attest
City Clerk
Page 5 City of Clearwater
Draft
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1082
Agenda Date: 4/13/2015 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.1
SUBJECT/RECOMMENDATION:
Approve the new hires for acceptance into the Pension Plan as listed.
SUMMARY:
Joseph Contreras, Recreation Leader, Parks and Recreation Department 1/26/2015
Natalie Lamb, Recreation Specialist Parks and Recreation Department 1/26/2015
Erin Marks, Librarian I, Library Department 1/26/2015
Mark Smith, Stormwater Technician, Engineering Department 1/26/2015
Kyle Aldrich, Parking Technician, Engineering Department 2/9/2015*
Brandon Fletcher, Solid Waste Worker, Solid Waste Department 2/9/2015**
Kyle Harter, Water Plant Operator C, Public Utilities Department 2/9/2015
Belinda Nichol, Customer Service Representative, Customer Service Department 2/9/2015
Kristen Parete, Legal Staff Assistant, Legal Department 2/2/2015
Brandi Portalatin, Solid Waste Worker, Solid Waste Department 2/9/2015***
Linda Rothstein, Librarian III, Library Department 2/9/2015
John Toston, Parks Service Technician I, Parks and Recreation Department 2/9/2015
Jonathan Hurt, Police Cadet, Police Department 2/21/2015
Erik Jordan, Water Plant Operator Trainee, Public Utilities Department 2/23/2015
Scot MacDonald, Radio Manager, General Services Department 2/23/2015
* Kyle Aldrich was hired into a part time position on 05/6/2013, and transferred to a full-time permanent
position as of 2/9/2015; he will be eligible for pension as of 2/9/2015.
** Brandon Fletcher was hired into a temporary position on 11/17/14, and transferred to a full-time
permanent position as of 2/9/2015; he will be eligible for pension as of 2/9/2015.
*** Brandi Portalatin was previously employed with the City of Clearwater, resigned effective 08/14/2014,
rescinded resignation and was rehired 2/9/2015; she will be eligible for pension as of 2/9/2015.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 1 City of Clearwater Printed on 4/8/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1083
Agenda Date: 4/13/2015 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.2
SUBJECT/RECOMMENDATION:
Approve the following request of Karen Maldonado, Engineering Department, to vest her
pension as provided by Section 2.419 of the Employees’ Pension Plan.
SUMMARY:
Karen Maldonado, Construction Office Specialist, Engineering Department, was employed by
the City on June 5, 2004 and began participating in the Pension Plan on that date. Ms.
Maldonado terminated from City employment on February 21, 2015.
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 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 fifty-five 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. Maldonado will meet the non -hazardous duty criteria and begin
collecting a pension in March 2031.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 1 City of Clearwater Printed on 4/8/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1084
Agenda Date: 4/13/2015 Status: Agenda ReadyVersion: 2
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.3
SUBJECT/RECOMMENDATION:
Approve the following request of employees Etheridge Hall, Police Department; Marianna
Mallon, Police Department, and Leonard Rickard, Fire Department, for a regular pension as
provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan.
SUMMARY:
Etheridge Hall, Police Sergeant, Police Department, was employed by the City on April 5,
1993, and his pension service credit is effective on that date. His pension will be effective
April 1, 2015. Based on an average salary of approximately $91,217.61 over the past five
years, the formula for computing regular pensions and Mr. Hall’s selection of the Single Life
Annuity, this pension benefit will be approximately $58,583.28 annually.
Marianna Mallon, Police Service Technician, Police Department, was employed by the City on
June 13, 1984, and her pension service credit is effective on that date. Her pension will be
effective March 1, 2015. Based on an average salary of approximately $52,568.79 over the
past five years, the formula for computing regular pensions and Ms. Mallon’s selection of the
Single Life Annuity, this pension benefit will be approximately $44,389.20 annually.
Leonard Rickard, Assistant Fire Marshal, Fire Department, was employed by the City on July
25, 2005, and his pension service credit is effective on that date. His pension will be effective
August 1, 2015. Based on an average salary of approximately $71,913.72 over the past five
years, the formula for computing regular pensions and Mr. Rickard’s selection of the 75%
Joint and Survivor Annuity with a 30% partial lump sum distribution, this pension benefit will be
approximately $13,892.28 annually.
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 fifty-five 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. Mallon has met the non-hazardous duty criteria.
Page 1 City of Clearwater Printed on 4/8/2015
File Number: ID#15-1084
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. Hall
and Mr. Rickard have met the hazardous duty criteria.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
Page 2 City of Clearwater Printed on 4/8/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1160
Agenda Date: 4/13/2015 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.4
SUBJECT/RECOMMENDATION:
Determine Trustees’ expected rate of return for the pension plan’s investment 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.
Page 1 City of Clearwater Printed on 4/8/2015
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1166
Agenda Date: 4/13/2015 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.5
SUBJECT/RECOMMENDATION:
Accept the January 1, 2015 Annual Actuarial Valuation for the Employees’ Pension Plan.
SUMMARY:
Per the actuary report dated January 1, 2015, a minimum city employer contribution of $8.8
million, or 11.66% of covered payroll, is required for fiscal year 2016. This is a decrease of
$2.0 million over the fiscal 2015 required contribution of $10.8 million, or 14.53% of covered
payroll.
The net decrease in the required contribution of $2.0 million versus the prior year is primarily
due to investment earnings experience, partially offset by the increase in contributions
resulting from the change in the actuarial cost method from frozen entry age to entry age
normal.
The calendar year 2014 investment return was 7.99% net of investment fees, versus the
assumed rate of 7.0%. The “five-year smoothed” investment return based on the actuarial
value of the assets was 11.04% versus the assumed rate of 7.0%. Calendar 2010 thru 2014
investment returns were 17.50%, (0.32%), 13.92%, 16.90% and 7.99%, respectively.
Additional actuarial experience gain occurred due to actual salary increases of 3.38% versus
expected 4.04%, and fewer retirements than expected (45 actual versus 51 expected).
The Plan's funded ratio is 101.89% (including the credit balance) versus 97.05% for the prior
year, based on the Entry Age Normal funding method. The Actuarial Value of Assets exceeds
the Market Value of Assets by $57.2 million as of January 1, 2015.
The plan's credit balance, which reflects actual contributions in excess of actuarially required
contributions for prior years, increased from $5,390,884 to $10,381,518 during calendar 2014.
This $5.0 million increase was due to the City ’s intentional overfunding of fiscal 2014’s
contribution. The City contributed approximately 20% of salaries, versus the actuarially
required 14.53%, in order to increase the plan ’s credit balance reserves for future volatility in
required contributions.
The Employees’ Pension Plan is highly leveraged on investment returns in comparison to
most pension plans, which means changes in investment earnings cause significant increases
Page 1 City of Clearwater Printed on 4/8/2015
File Number: ID#15-1166
or decreases in required employer contributions. This year -to-year volatility 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 accumulated reserves.
Page 2 City of Clearwater Printed on 4/8/2015
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.
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,
GABRIEL, ROEDER, SMITH AND COMPANY
Peter N. Strong, FSA, MAAA Trisha Amrose, MAAA
Enrolled Actuary No. 14-6975 Enrolled Actuary No. 14-8010
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
SECTION A
DISCUSSION OF VALUATION RESULTS
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 $8,767,703 $10,803,098 $(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
For FYE 9/30/2016 For FYE 9/30/2015
Based onBased on
Increase
Valuation
1/1/20141/1/2015
Valuation (Decrease)
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.
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 $(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
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 C). 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
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 11%-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.
SECTION B
VALUATION RESULTS
5
ACTIVE MEMBERS
Number 1,482 1,478
Covered Annual Payroll $75,078,542 $74,254,159
Average Annual Payroll $50,660 $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 $34,727,568 $32,465,115
Average Annual Benefit $35,078 $34,174
Average Age 65.8 65.4
DISABILITY RETIREES
Number 135 134
Annual Benefits $3,642,626 $3,513,703
Average Annual Benefit $26,982 $26,222
Average Age 63.2 62.8
TERMINATED VESTED MEMBERS
Number 69 60
Annual Benefits $1,287,474 $1,195,914
Average Annual Benefit $18,659 $19,932
Average Age 51.7 50.2
PARTICIPANT DATA
January 1, 2015 January 1, 2014
6
A.Valuation Date
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 $0 *$5,464,590 $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 %
I.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
ANNUAL REQUIRED CONTRIBUTION (ARC)
After
Method Change
Before
Method Change
January 1, 2015 January 1, 2015 January 1, 2014
* 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.
7
A.Valuation Date
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
I.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. - F.3.(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 = F.3. / D.100.63%N/A N/A
ACTUARIAL VALUE OF BENEFITS AND ASSETS
January 1, 2015January 1, 2015 January 1, 2014
Before
Method Change
After
Method Change
8
A.Valuation Date
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%
CALCULATION OF EMPLOYER NORMAL COST
ENRTRY AGE NORMAL METHOD
January 1, 2015
After
Method Change
9
A.Valuation Date
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
I.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 %
Before
Method Change
CALCULATION OF EMPLOYER NORMAL COST
January 1, 2015 January 1, 2014
FROZEN ENTRY AGE METHOD
10
$5,390,884
-10,791,098
+15,404,370
+377,362
10,381,518
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
11
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY
1.Last Year's UAAL $56,078,217
2.Employer Normal Cost for Contribution Year 4,626,039
3.Last Year's Contributions 10,803,098 *
4. Interest at the Assumed Rate on:
a.1 and 2 for one year 4,249,298
b.3 from dates paid 47,631
c. a - b 4,201,667
5.This Year's UAAL Prior to Revision:
1 + 2 - 3 + 4c 54,102,825
6.Change in UAAL Due to Plan Amendment 0
7.Change in UAAL Due to Changes in Actuarial Assumptions
and Methods (59,315,474)
8.This Year's Revised UAAL: 5 + 6 + 7 (5,212,649)
A. Derivation of the Current UAAL
* Excludes the portion of the actual contribution above the required contribution that was used to
increase the credit balance.
12
B. UAAL Amortization Period and Payments -- Before Fresh Start*
Date
Established Source Amount
Years
Remaining Amount Payment
1/1/1987 Supplemental FIL 1,519,142$ 2 212,917$ 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
Original UAAL Current UAAL
C. UAAL Amortization Period and Payments -- After Fresh Start*
Date
Established Source Amount
Years
Remaining Amount Payment
1/1/2015 Fresh Start (5,212,649)$ 23 (5,212,649)$ (432,182)$
(5,212,649) (5,212,649) (432,182)
Original UAAL Current UAAL
* 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.
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:
2015 $(5,212,649)
2016 (5,115,102)
2017 (5,010,724)
2018 (4,899,040)
2019 (4,779,538)
2020 (4,651,671)
2025 (3,864,868)
2030 (2,761,336)
2035 (1,213,575)
2038 -
Amortization Schedule
Year Expected UAAL
14
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment turnover, investment income, expenses,
salary increases, and other factors have been based on long range trends and expectations. Actual experience
can vary from these expectations. The variance is measured by the gain and loss for the period involved. If
significant long term experience reveals consistent deviation from what has been expected and that deviation
is expected to continue, the assumptions should be modified. The net actuarial gain (loss) for the past year is
computed as follows:
A.Employer Normal Cost as a Percentage
of Covered Payroll
1. Last Valuation 5.99 %
2. Current Valuation (0.02)
3. Difference: 1 - 2 6.01
B.Actuarial Present Value of Projected
Covered Payroll 569,273,667$
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
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)
2014 34,213,347 (6.01)
Change in
NC Rate
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:
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 %---
Investment Return
Year Ending Actual Assumed Assumed
Salary Increases
Actual
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.
16
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
17
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 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) Decrements
Among Active Employees
Number
Added
Terminations
Year Retirement Retirement Death Totals
During Service Disability
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 16 275,728 21 510,892
12/31/2015 22 558,306
Actual (A) Compared to Expected (E) Deaths
Among Retirees and Beneficiaries
Actual During Year
Annual
Pensions
Annual
Pensions
Expected During Year
Active
Members
Inactive
Members
1/1/07 1,692 819 $79,385,090 $559,830,590 N/A N/A N/A $9,192,407 11.58 %
1/1/08 1,641 878 80,371,617 610,979,087 N/A N/A N/A 6,920,400 8.61
1/1/09 1,628 903 82,104,837 536,834,473 N/A N/A N/A 20,005,238 24.37
1/1/10 1,567 955 80,443,199 618,444,906 $647,167,565 $28,722,659 95.6 % 15,879,628 19.74
1/1/11 1,508 1,024 76,505,599 646,956,800 672,786,812 25,830,012 96.2 15,461,725 20.21
1/1/12 1,468 1,072 74,765,020 664,087,199 702,438,432 38,351,233 94.5 17,064,100 22.82
1/1/13 1,474 1,127 74,422,344 688,731,221 774,749,811 86,018,590 88.9 12,845,501 17.26
1/1/14 1,478 1,144 74,254,159 772,411,068 795,927,127 23,516,059 97.0 4,626,039 6.23
1/1/15 1,482 1,194 75,078,542 829,486,793 824,274,144 (5,212,649)100.6 8,194,115 10.91
Unfunded
Actuarial Liability
(Entry Age)*
RECENT HISTORY OF VALUATION RESULTS
Number of Employer Normal Cost*
Valuation
Date
Covered Annual
Payroll
Actuarial Value of
Assets % of PayrollAmount
Actuarial Accrued
Liability
(Entry Age)Funded Ratio
* Starting with the January 1, 2015 valuation, the Employer Normal Cost is calculated under the Entry Age Normal Method and the
Credit Balance is excluded from the Actuarial Value of Assets.
Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers.
18
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 10,791,098 12,000 10,803,098
1/1/15 9/30/16 8,767,703 11.68 12,000 0.02 8,755,703 11.66 --- --- ---
RECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
Estimated State
Required Contributions
Employer & State Net Employer
% of
Payroll Employer State
Valuation
End of
Year To
Which
Valuation
Applies Amount
Actual Contributions
% of
Payroll TotalAmount
% of
PayrollAmount
Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers.
19
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.
21
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 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
Probability of Future Life
Dying Next Year Expectancy (years)
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:
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
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.
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
24
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
25
Miscellaneous and Technical Assumptions
Administrative & Investment
Expenses
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.
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.
27
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 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).
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
Contribution (ARC)
The employer’s periodic required contributions, expressed as a dollar
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
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. 27 and
GASB No. 67
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. 67 sets the rules for the systems themselves.
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
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.
SECTION C
PENSION FUND INFORMATION
30
Statement of Plan Assets at Market Value
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$ 12,245,015$
C.Investments
1.Short-Term Investments 11,566,747$ 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 887,356,733$ 835,640,056$
D.Liabilities
1.Benefits Payable -$ -$
2.Accrued Expenses and Other Payables (944,035) (918,142)
3.Total Liabilities (944,035)$ (918,142)$
E.Total Market Value of Assets Available for Benefits 897,025,140$ 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%
December 31
Item
31
Reconciliation of Plan Assets
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$ 6,262,146$
b.Employer Contributions 15,404,370 18,199,028
c.State Contributions 12,000 12,000
d.Total 22,511,499$ 24,473,174$
2.Investment Income
a.Interest, Dividends, and Other Income 16,733,940$ 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 66,956,669$ 123,323,814$
3.Benefits and Refunds
a.Refunds (1,393,782)$ (1,029,146)$
b.Regular Monthly Benefits (37,836,269) (35,401,597)
c.Partial Lump-Sum Benefits Paid - -
d.Total (39,230,051)$ (36,430,743)$
4.Administrative and Miscellaneous Expenses (179,906)$ (178,215)$
5.Transfers -$ -$
C.Market Value of Assets at End of Year 897,025,140$ 846,966,929$
December 31
Item
Development of Actuarial Value of Assets
Valuation Date - December 31 2013 2014 2015 2016 2017 2018
A.Actuarial Value of Assets Beginning of Year 688,731,221$ 772,411,068$
B.Market Value End of Year 846,966,929 897,025,140
C.Market Value Beginning of Year 735,778,899 846,966,929
D.Non-Investment/Administrative Net Cash Flow (12,135,784) (16,898,458)
E.Investment Income
E1. Actual Market Total: B-C-D 123,323,814 66,956,669
E2. Assumed Rate of Return 7.00%7.00%7.00%7.00%7.00%7.00%
E3. Assumed Amount of Return 50,628,682 58,338,901
E4. Amount Subject to Phase-In: E1–E3 72,695,132 8,617,768
F.Phase-In Recognition of Investment Income
F1. Current Year: 0.2 x E4 14,539,026 1,723,554
F2. First Prior Year 8,472,595 14,539,026 1,723,554
F3. Second Prior Year (10,299,653) 8,472,595 14,539,026 1,723,554
F4. Third Prior Year 11,581,278 (10,299,653) 8,472,595 14,539,026 1,723,554
F5. Fourth Prior Year 20,893,703 11,581,278 (10,299,653) 8,472,595 14,539,026 1,723,552
F6. Total Phase-Ins 45,186,949 26,016,800 14,435,522 24,735,175 16,262,580 1,723,552
G.Actuarial Value of Assets End of Year
G1. Preliminary Actuarial Value of Assets 772,411,068$ 839,868,311$
G2. Upper Corridor Limit: 120%*B 1,016,360,315$ 1,076,430,168$
G3. Lower Corridor Limit: 80%*B 677,573,543$ 717,620,112$
G4. Funding Value End of Year 772,411,068$ 839,868,311$
G5. Credit Balance N/A 10,381,518$
G6. Final Actuarial Value of Assets 772,411,068$ 829,486,793$
H.Recognized Investment Earnings 95,815,631$ 84,355,701$
I.Difference between Market & Actuarial Value 74,555,861$ 57,156,829$
J.Actuarial Rate of Return 14.04%11.04%
K.Market Value Rate of Return 16.90%7.99%
L.Ratio of Actuarial Value of Assets to Market Value 91.20%93.63%
* 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.
32
33
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
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 %
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.
SECTION D
FINANCIAL ACCOUNTING INFORMATION
34
A.Valuation Date
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: 1d + 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
FASB NO. 35 INFORMATION
January 1, 2015 January 1, 2014
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)
SECTION E
MISCELLANEOUS INFORMATION
36
A.
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.
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.
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
RECONCILIATION OF MEMBERSHIP DATA
Active Members
Service Retirees, Disability Retirees and Beneficiaries
Terminated Vested Members
From 1/1/2013From 1/1/2014
To 1/1/2014To 1/1/2015
37
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
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 1,203,308
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 1,206,777 0 0 0 0 0 7,416,463
AVG PAY 32,207 43,109 40,437 47,285 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 59,253 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 3,203,490 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 46,217 56,202 64,482 73,293 72,661 0 0 57,752
50-54 NO.16 5 7 6 4 29 43 41 32 32 4 0 219
TOT PAY 564,475 208,185 224,196 270,930 128,487 1,246,611 1,914,135 2,266,614 2,187,930 2,047,041 260,275 0 11,318,879
AVG PAY 35,280 41,637 32,028 45,155 32,122 42,987 44,515 55,283 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 100,277 156,102 165,752 182,375 109,101 1,355,390 1,226,906 1,996,809 1,408,327 1,269,350 389,205 0 8,359,594
AVG PAY 33,426 31,220 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 59,818 105,056 106,287 153,148 98,816 800,473 771,727 1,248,602 925,894 760,416 292,910 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 73,228 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 46,217 42,259 45,653 58,019 50,930 60,838 0 47,262
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 14,840,241 8,387,274 4,818,350 1,003,228 41,491 75,078,542
AVG 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
Years of Service to Valuation Date
38
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
15-19 NO.0 0 0 0 0 0 0 0 0 0 0 0 0
TOT PAY 0 0 0 0 0 0 0 0 0 0 0 0 0
AVG PAY 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
TOT PAY 311,537 0 0 0 0 0 0 0 0 0 0 0 311,537
AVG PAY 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
TOT PAY 363,845 382,643 119,873 187,695 57,813 762,760 0 0 0 0 0 0 1,874,629
AVG PAY 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
TOT PAY 265,329 404,603 236,489 321,577 0 2,211,863 641,383 0 0 0 0 0 4,081,244
AVG PAY 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
TOT PAY 126,333 292,169 64,110 65,747 0 2,209,238 1,616,897 933,940 0 0 0 0 5,308,434
AVG PAY 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
TOT PAY 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
AVG PAY 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
TOT PAY 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
AVG PAY 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
TOT PAY 137,970 0 0 86,936 0 266,988 416,923 465,910 1,202,251 636,473 115,098 0 3,328,549
AVG PAY 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
TOT PAY 0 0 0 0 0 453,793 0 154,635 92,123 207,657 253,168 0 1,161,376
AVG PAY 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
TOT PAY 0 0 0 0 0 225,562 75,777 77,264 0 0 119,661 0 498,264
AVG PAY 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
TOT PAY 0 0 0 0 0 126,925 0 0 0 0 0 0 126,925
AVG PAY 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
AVG AMT 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
Years of Service to Valuation Date
39
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
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.16 13 1 1 1 0 0 0 0 0 0 0 32
TOT PAY 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
TOT PAY 620,678 464,432 458,916 380,454 140,242 709,044 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
TOT PAY 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
TOT PAY 441,007 242,305 200,901 302,219 206,671 990,404 849,662 187,746 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
TOT PAY 285,446 178,628 350,492 244,996 282,308 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
TOT PAY 301,303 177,746 300,673 161,884 140,064 962,959 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
TOT PAY 426,505 208,185 224,196 183,994 128,487 979,623 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
TOT PAY 100,277 156,102 165,752 182,375 109,101 901,597 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
TOT PAY 59,818 105,056 106,287 153,148 98,816 574,911 695,950 1,171,338 925,894 760,416 173,249 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
TOT PAY 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
Years of Service to Valuation Date
40
INACTIVE PARTICIPANT DISTRIBUTION
Disabled Retired
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
Terminated Vested
Deceased with
Beneficiary
SECTION F
SUMMARY OF PLAN PROVISIONS
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.
42
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.
43
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
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 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.
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 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.
46
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.
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.
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.
48
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.
49
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.
Cover Memo
City of Clearwater City Hall
112 S. Osceola Avenue
Clearwater, FL 33756
File Number: ID#15-1167
Agenda Date: 4/13/2015 Status: Agenda ReadyVersion: 1
File Type: Action ItemIn Control: Pension Trustees
Agenda Number: 4.6
SUBJECT/RECOMMENDATION:
Annual review of the Employees’ Pension Plan investment performance for the calendar and
plan year ended December 31, 2014.
SUMMARY:
This is the annual presentation on the investment performance of the Employees’ Pension
Plan for calendar and plan year ended December 31, 2014.
For the last calendar year, the plan had a return of 8.24%, versus a customized benchmark of
9.91%, placing the plan in the 12th percentile of public pension plans per the Wilshire Public
Plan Sponsor Universe.
For the last three calendar year period, the plan had an annualized return of 13.27% versus a
benchmark of 12.55%, placing the plan in the 15th percentile of public plans for that period.
There were no changes in money managers during calendar 2014. The Pension Investment
Committee will be proposing hiring of two new Core Plus real estate managers at the May
Trustees meeting.
A number of managers underperformed their indexes during calendar 2014, and their
performance is being monitored closely.
Page 1 City of Clearwater Printed on 4/8/2015
CityofClearwaterCityofClearwater
April13,2015April13,2015
CalendarYear2014
InvestmentPerformance
CalendarYear2014
InvestmentPerformance
Total Fund 8.24% 12th percentile
Benchmark 9.91% 4th percentile
Minus 1.67%
Total Fund 8.24% 12th percentile
Benchmark 9.91% 4th percentile
Minus 1.67%
CalendarYear2014
InvestmentPerformance
CalendarYear2014
InvestmentPerformance
Domestic Equity 11.31% 40th
Benchmark13.69% 14th
Minus 2.38%
Domestic Equity 11.31% 40th
Benchmark13.69% 14th
Minus 2.38%
CalendarYear2014
InvestmentPerformance
CalendarYear2014
InvestmentPerformance
International Equity -5.56% 80th
Benchmark-4.48% 71st
Minus 1.08%
International Equity -5.56% 80th
Benchmark-4.48% 71st
Minus 1.08%
CalendarYear2014
InvestmentPerformance
CalendarYear2014
InvestmentPerformance
Domestic Fixed Income 6.18% 23rd
Benchmark 5.97% 27th
Plus 0.21%
Domestic Fixed Income 6.18% 23rd
Benchmark 5.97% 27th
Plus 0.21%
CalendarYear2014
InvestmentPerformance
CalendarYear2014
InvestmentPerformance
Real Estate 20.96% 8th
Benchmark25.22% 5th
Minus 4.26%
Real Estate 20.96% 8th
Benchmark25.22% 5th
Minus 4.26%
ThreeYearReturnThreeYearReturn
TotalFund 13.27% 15th
Benchmark12.55% 34th
Plus 0.72%
TotalFund 13.27% 15th
Benchmark12.55% 34th
Plus 0.72%
FiveYearReturnFiveYearReturn
TotalFund11.26%6th
Benchmark10.59%13th
Plus0.67%
TotalFund11.26%6th
Benchmark10.59%13th
Plus0.67%
IndividualManager
Performance
Calendar2014
IndividualManager
Performance
Calendar2014
VOYA(prevING) LCG 14.42% 12th
NT Russell1000 LCV 13.54% 29th
Eagle CapitalLCV 13.39% 36th
Mann & Nap LCV 10.46% 77th
ArtisanMCG 6.96% 77th
VOYA(prevING) LCG 14.42% 12th
NT Russell1000 LCV 13.54% 29th
Eagle CapitalLCV 13.39% 36th
Mann & Nap LCV 10.46% 77th
ArtisanMCG 6.96% 77th
IndividualManager
Performance
IndividualManager
Performance
WedgeMCV19.82%13th
RiverbridgeSCG0.20%75th
AtlantaSCV-6.94%89th
SystematicSCV-2.60%90th
WedgeMCV19.82%13th
RiverbridgeSCG0.20%75th
AtlantaSCV-6.94%89th
SystematicSCV-2.60%90th
ManagerVolatilityManagerVolatility
2013 Atlanta42.43%13th
2013 Systematic40.72% 27th
2012 Atlanta12.53% 89th
2012 Systematic23.50% 4th
2011 Atlanta10.20% 1st
2011 Systematic-9.91% 96th
2010 Atlanta25.98% 66th
2010 Systematic35.50% 2nd
2013 Atlanta42.43%13th
2013 Systematic40.72% 27th
2012 Atlanta12.53% 89th
2012 Systematic23.50% 4th
2011 Atlanta10.20% 1st
2011 Systematic-9.91% 96th
2010 Atlanta25.98% 66th
2010 Systematic35.50% 2nd
IndividualManager
Performance
IndividualManager
Performance
International:
EatonEM-4.41%84th
EarnestEAFE-5.43%79th
WHVEAFE14.10%83rd
International:
EatonEM-4.41%84th
EarnestEAFE-5.43%79th
WHVEAFE14.10%83rd
IndividualManager
Performance
IndividualManager
Performance
FixedIncome:
DodgeCox6.01%25th
WAMCO6.65%16th
FixedIncome:
DodgeCox6.01%25th
WAMCO6.65%16th
IndividualManager
Performance
IndividualManager
Performance
RealEstate:
MEPT Bricks&Mortar 12.21% 50th
Molpus Timber 0.84% 86th
Hancock Timber -0.30% 89th
SEC CAP REITS 33.13% 1st
RealEstate:
MEPT Bricks&Mortar 12.21% 50th
Molpus Timber 0.84% 86th
Hancock Timber -0.30% 89th
SEC CAP REITS 33.13% 1st
CorePlusRealEstateCorePlusRealEstate
Managersearchcompleted
ForMayTrusteeapproval:
IntercontinentalUSREIFFund
USAAUSGovt.BuildingFund
Managersearchcompleted
ForMayTrusteeapproval:
IntercontinentalUSREIFFund
USAAUSGovt.BuildingFund
CityofClearwaterCityofClearwater
April13,2015April13,2015