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08/17/2020Monday, August 17, 2020 9:00 AM City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Main Library - Council Chambers Pension Trustees Meeting Agenda August 17, 2020Pension Trustees Meeting Agenda To ensure public safety and comply with the Governor's Safer at Home order in response to the COVID-19 virus, the Clearwater Pension Trustees will hold a public meeting on Monday August 17, 2020 at 9:00 a.m. using communications media technology. Pursuant to Executive Order No. 20-69, issued by the Office of Governor Ron DeSantis on March 20, 2020, municipalities may conduct meetings of their governing boards without having a quorum of its members present physically or at any specific location, and utilizing communications media technology such as telephonic or video conferencing, as provided by Section 120.54(5)(b)2, Florida Statutes. The meeting will be held through the Zoom platform and will be broadcast live on the city's website (https://www.myclearwater.com/government/council-meeting-streaming-videos), o n F a c e b o o k ( w w w . f a c e b o o k . c o m / c i t y o f c l e a r w a t e r ) a n d o n Y o u T u b e (www.youtube.com/myclearwater) as well as the following public access TV channels: Spectrum Channel 638, Frontier Channel 30 and WOW! Channel 15. Citizens wishing to provide comments on an agenda item are encouraged to do so in advance through written comment. The City has established the following four options to ensure public comment for a virtual meeting: 1)eComments via Granicus - eComments is integrated with the published meeting agenda. Individuals may review the agenda item details and indicate their position on the item. You will be prompted to set up a user profile to allow you to comment, which will become part of the official public record. The eComment period is open from the time the agenda is published. Comments received during the meeting will become part of the official record, if posted prior to the closing of public comment. The City Clerk will read received comments into the record. 2)Email – Individuals may submit written comments or videos to ClearwaterCouncil@myclearwater.com. All comments received by 5 p.m. the day before the meeting (August 16) will become part of the official record. The City Clerk will read received comments into the record. 3)Call-in - During the meeting individuals will be able to call in to 562-4646 and be placed on-air to speak to an individual item. 4)Council Chambers - Additionally, like any other council meeting, the public may provide public comment at the Main Library, Council Chambers, 100 N Osceola Avenue. Due to COVID-19, all speakers desiring to appear in person will be subject to all applicable emergency measures in place to prevent the further spread of COVID-19. Speakers who appear in person will be subject to screening for symptoms of COVID-19. Any persons exhibiting any symptoms of COVID-19 will not be permitted to enter council chambers but will be able to participate through the remote options described above. Individuals with disabilities who need reasonable accommodations to effectively participate in this meeting are asked to contact the City Clerk at (727)562-4092 or rosemarie.call@myclearwater.com in advance. 1. Call To Order 2. Approval of Minutes 2.1 Approve the June 15, 2020 Pension Trustees Meeting Minutes as submitted in written summation by the City Clerk. 3. Citizens to be Heard Regarding Items Not on the Agenda Page 2 City of Clearwater Printed on 8/14/2020 August 17, 2020Pension Trustees Meeting Agenda 4. New Business Items 4.1 Accept the January 1, 2020 Annual Actuarial Valuation for the Employees’ Pension Plan. 4.2 Determine Trustees’ expected rate of return for pension plan investments for the current year, each of the next several years, and for the long term thereafter, in accordance with Florida Statutes 112.661(9). 4.3 Appoint Sheldon Goldberg to the Pension Investment Committee with a term to expire August 31, 2022. 5. Director's Report 6. Adjourn Page 3 City of Clearwater Printed on 8/14/2020 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#20-7930 Agenda Date: 8/17/2020 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Pension Trustees Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the June 15, 2020 Pension Trustees Meeting Minutes 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 8/14/2020 Pension Trustees Meeting Minutes June 15, 2020 Page 1 City of Clearwater City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, June 15, 2020 9:00 AM Main Library - Council Chambers Pension Trustees Draft Pension Trustees Meeting Minutes June 15, 2020 Page 2 City of Clearwater Citizens wishing to provide comments on an agenda item are encouraged to do so in advance through written comment. The City has established the following options to ensure public participation: 1) eComments via Granicus - eComments is integrated with the published meeting agenda. Individuals may review the agenda item details and indicate their position on the item. You will be prompted to set up a user profile to allow you to comment, which will become part of the official public record. The eComment period is open from the time the agenda is published. Comments received during the meeting will become part of the official record, if posted prior to the closing of public comment. The City Clerk will read received comments into the record. 2) Council Chambers - the public may provide public comment at the Main Library, Council Chambers, 100 N Osceola Avenue. Due to COVID-19, all speakers desiring to appear in person will be subject to all applicable emergency measures in place to prevent the further spread of COVID-19. Speakers who appear in person will be subject to screening for symptoms of COVID-19. Any persons exhibiting any symptoms of COVID-19 will not be permitted to enter council chambers but will be able to participate through the remote options described above. Individuals with disabilities who need reasonable accommodations to effectively participate in this meeting are asked to contact the City Clerk at (727)562-4092 or rosemarie.call@myclearwater.com in advance. Rollcall Present 5 - Chair Frank Hibbard, Vice Chair David Allbritton, Trustee Hoyt Hamilton, Trustee Kathleen Beckman, and Trustee Mark Bunker Also Present – William B. Horne II – City Manager, Micah Maxwell – Assistant City Manager, Michael Delk - Assistant City Manager, Pamela K. Akin – City Attorney, Rosemarie Call – City Clerk and Jennifer Poirrier – Human Resources Director To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. Draft 1. Call to Order The meeting was called to order at 9:31a.m. in Council Chambers at the Main Library. 2. Approval of Minutes 2.1 Approve the minutes of the February 18, 2020 Pension Trustees Meeting as submitted in written summation by the City Clerk. Draft Pension Trustees Meeting Minutes June 15, 2020 Page 3 City of Clearwater Trustee Hamilton moved to approve the minutes of the February 18, 2020 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. Name/Job Classification/Department Pension Eligibility Date Jonathon Roth, Survey Assistant, Engineering 01/06/2020 Heather Davidson, Human Resources Staff Assistant, Human Resources 01/06/2020 Alyssa Gaudreault, Recreation Manager - Volunteers, Parks & Recreation 01/06/2020 Braxton Jones, Parks Service Technician, Parks & Recreation 01/06/2020 Owen Reich, Police Telecommunicator Trainee, Police 01/06/2020 Amanda Gill, Police Telecommunicator Trainee, Police 01/06/2020 Cheyenne Calle, Police Telecommunicator Trainee, Police 01/06/2020 Wycliffe Crosse Jr., Solid Waste Equipment Operator, Solid Waste 01/06/2020 James Cusic, Lead Parks Service Technician, Parks & Recreation 01/06/2020 Mark Fodor, Senior Accountant, Solid Waste 01/21/2020 Serena Lawrence, Stormwater Technician, Engineering 01/21/2020 John Kenny, Parks Service Technician, Parks & Recreation 01/21/2020 Marvin Garcia, Police Officer, Police 01/21/2020 Matthew High, Police Officer, Police 01/21/2020 Enea Kume, Parks Service Technician, Parks & Recreation 01/21/2020 Christopher Barber, Customer Service Asst. Manager, Utility Customer Service 02/03/2020 Jeffrey Zalmanoff, Fleet Mechanic, General Services 02/03/2020 Tara Deegan, Human Resources Staff Assistant, Human Resources 02/03/2020 Jourdon Rich, Parks Service Technician, Parks & Recreation 02/03/2020 Hannah Hodges, Crime Analyst, Police 02/03/2020 Steve Heppler, Wastewater Treatment Plant Operator, Public Utilities 02/03/2020 Bridget McCord, Police Telecommunicator Trainee, Police 02/03/2020 Philip Kirkpatrick, Sr. Economic Dev. Coord., Economic Dev. & Housing 02/18/2020 Peter Smutko, Gas Technician - Apprentice, Gas 02/18/2020 Guido Lubrano Jr., Gas Technician - Apprentice, Gas 02/18/2020 Mitchell Johnson, Parks Service Technician, Parks & Recreation 02/18/2020 Kenneth Kinnear, Recreation Specialist, Parks & Recreation 02/18/2020 Draft Pension Trustees Meeting Minutes June 15, 2020 Page 4 City of Clearwater Trustee Allbritton 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 employee Mark Tokar, Parks and Recreation Department to vest their pension as provided by Section 2.419 of the Employees’ Pension Plan. Mark Tokar, Parks Service Foreman, Parks and Recreation Department, was employed by the City on November 14, 2005, and began participating in the Pension Plan on that date. Mr. Tokar terminated from City employment on January 25, 2020. 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. Mr. Tokar will meet the non-hazardous duty criteria and begin collecting a pension in March 2030. Trustee Hamilton moved to approve the following request of employee Mark Tokar, Parks and Recreation Department to vest their pension as provided by Section 2.419 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. Draft Pension Trustees Meeting Minutes June 15, 2020 Page 5 City of Clearwater 4.3 Approve the following request of employees William Buzzell, Solid Waste General Services Department, Richard Hughes, Fire Department, Rose Lara, Public Utilities Department, Jane Sloan, Planning & Development Department, Steven Smith, Fire Department and Mark Wallace, Parks and Recreation Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. William Buzzell, Solid Waste Manager, Solid Waste General Services Department, was employed by the City on March 26, 1990, and his pension service credit is effective on that date. His pension will be effective April 1, 2020. Based on an average salary of approximately $67,108.05 over the past five years, the formula for computing regular pensions and Mr. Buzzell’s selection of the 50% Joint and Survivor Annuity with a 10% partial lump sum, this pension benefit will be approximately $48,396.00 annually. Richard Hughes, Fire Lieutenant, Fire Department, was employed by the City on August 9, 1993, and his pension service credit is effective on that date. His pension will be effective March 1, 2020. Based on an average salary of approximately $102,120.59 over the past five years, the formula for computing regular pensions and Mr. Hughes’ selection of the 50% Joint and Survivor Annuity, this pension benefit will be approximately $76,174.20 annually. Rose Lara, Public Utilities Supervisor, Public Utilities Department, was employed by the City on October 14, 1996, and her pension service credit is effective on that date. Her pension will be effective April 1, 2020. Based on an average salary of approximately $48,470.74 over the past five years, the formula for computing regular pensions and Ms. Lara selection of the 10 Year Certain and Life Annuity with a 10% partial lump sum, this pension benefit will be approximately $27,657.96 annually. Jane Sloan, Development Review Tech II, Planning and Development Department, was employed by the City on November 13, 2007, and her pension service credit is effective on August 4, 2008. Her pension will be effective February 1, 2020. Based on an average salary of approximately $34,107.74 over the past five years, the formula for computing regular pensions and Ms. Sloan’s selection of the Life Annuity, this pension benefit will be approximately $10,778.76 annually. Steven Smith, Fire Lieutenant, Fire Department, was employed by the City on October 4, 1999, and his pension service credit is effective on that date. His pension will be effective March 1, 2020. Based on an average salary of approximately $91,163.59 over the past five years, the formula for computing regular pensions and Mr. Smith’s selection of the 50% Joint and Survivor Annuity with a 10% partial lump sum, this pension benefit will be approximately $42,790.68 annually. Mark Wallace, Sr Park Streets and Sidewalks Tech, Parks and Recreation Department, was employed by the City on August 30, 1999, and his pension service credit is effective on October 18, 1999. His pension will be effective February 1, 2020. Based on an average salary of approximately $38,473.47 Draft Pension Trustees Meeting Minutes June 15, 2020 Page 6 City of Clearwater over the past five years, the formula for computing regular pensions and Mr. Wallace’s selection of the Life Annuity with a 10% partial lump sum, this pension benefit will be approximately $19,316.88 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. Mr. Buzell, Ms. Lara, Ms. Sloan and Mr. Wallace have met the non-hazardous duty criteria. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the date on which the participant has completed twenty years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Mr. Hughes and Mr. Smith have met the hazardous duty criteria. Trustee Hamilton moved to approve the following request of employees William Buzzell, Solid Waste General Services Department, Richard Hughes, Fire Department, Rose Lara, Public Utilities Department, Jane Sloan, Planning & Development Department, Steven Smith, Fire Department and Mark Wallace, Parks and Recreation 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. 4.4 Ratify and Confirm correction of error of underpayment of pension death benefit for Stephen Doherty. In response to a question, Finance Director Jay Ravins said the Pension Payroll Administrator, a city employee, audited the matter after being made aware of a similar incident with another pension payout. The pensioner is entitled, at a minimum, to what the pensioner contributed. Draft Pension Trustees Meeting Minutes June 15, 2020 Page 7 City of Clearwater Trustee Allbritton moved to ratify and confirm correction of error of underpayment of pension death benefit for Stephen Doherty. The motion was duly seconded and carried unanimously. 5. Director's Report – None. 6. Adjourn The meeting adjourned at 9:35 a.m. Chair Employees’ Pension Plan Trustees Attest City Clerk Draft Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#20-7847 Agenda Date: 8/17/2020 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Accept the January 1, 2020 Annual Actuarial Valuation for the Employees’ Pension Plan. SUMMARY: Per the actuarial valuation report dated January 1, 2020, a minimum city employer contribution of $11.52 million, or 12.72% of covered payroll, is required for fiscal year 2021. This is an increase of approximately $1.81 million over the fiscal 2020 required contribution of $9.71 million, which represented 11.48% of covered payroll. In prior years, the actuary has simply calculated a single average employer contribution rate for all employees in the plan. Due to recently negotiated enhancements to pension benefits for Police participants, it was necessary to engage the actuary to calculate separate employer contributions for police officers, firefighters, and non-public safety participants. Per this calculation, the required employer contributions by group are as follows: Police $ 4,872,378 23.55% Fire $ 3,115,146 18.64% Non-public safety $ 3,534,489 6.64% Total $11,522,013 12.72% The calendar year 2019 investment return was 20.20%, versus an assumed rate of 6.75% for 2019. The five-year smoothed actuarial investment rate of return was 7.39% versus the 6.75% assumption. Calendar 2015 through 2019 investment returns were (-0.28%), 6.70%, 16.01%, (-2.48%), and 20.20%, respectively. As previously approved by the Trustees, the assumed rate of return was lowered to 6.65% as of January 1, 2020. This change increased the Fiscal Year 2021 employer contribution by $411,325, which represented 0.45% of covered payroll. The assumed rate of return is scheduled to be lowered in two additional increments - to 6.55% in 2021, and to 6.50% effective January 1, 2022. The plan experienced a net actuarial experience gain of $1.19 million for the year. The gain was primarily due to investment returns, partially offset by higher than expected salary increases (8.84% versus 4.35% expected) and a lower than expected mortality rate. The plan’s funded ratio at January 1, 2020 was 102.60% (including the credit balance in the assets) versus 104.09% for the prior year. The actuarial value of assets exceeds the market value of assets by $76.7 million as of January 1, 2020. The plan’s credit balance, which reflects actual contributions in excess of actuarially required Page 1 City of Clearwater Printed on 8/14/2020 File Number: ID#20-7847 contributions in prior years, increased from $26.61 million to $28.96 million during calendar 2019, primarily due to interest earned on the credit balance. This credit balance is available as a “rainy day” fund to subsidize volatile required employer contributions during investment market downturns. The Plan is highly leveraged on investment returns in comparison to most pension plans, which means changes in investment earnings can cause significant increases in required employer contributions. This year-to-year volatility is offset by setting aside excess earnings in the credit balance during periods of positive investment returns. Page 2 City of Clearwater Printed on 8/14/2020 City of Clearwater Employees’ Pension Plan Actuarial Valuation Report as of January 1, 2020 Annual Employer Contribution for the Fiscal Year Ending September 30, 2021 April 29, 2020 Board of Trustees City of Clearwater Employees’ Pension Plan Clearwater, Florida Dear Board Members: The results of the January 1, 2020 Annual Actuarial Valuation of the City of Clearwater Employees’ Pension Plan are presented in this report. This report does not reflect the recent and still developing impact of COVID-19, which may significantly impact demographic and economic experience. 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. GRS is not responsible for unauthorized use of this report. The purposes of the valuation are to measure the System’s funding progress and to determine the employer contribution rate for the fiscal year ending September 30, 2021. This report should not be relied on for any purpose other than the purposes described herein. Determinations of financial results, associated with the benefits described in this report, for purposes other than those identified above may be significantly different. The contribution rate in this report is determined using the actuarial assumptions and methods disclosed in Section B of this report. This report includes risk metrics in Section A, but does not include a robust assessment of future experience not meeting the actuarial assumptions. A robust assessment of risks was outside the scope of this assignment. This valuation assumed the continuing ability of the plan sponsor to make the contributions necessary to fund this Plan. A determination regarding whether or not the plan sponsor is actually able to do so is outside our scope of expertise and was not performed. The findings in this report are based on data or other information through December 31, 2019. The valuation was based upon information furnished by the City concerning Retirement System 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 audit the data. We are not responsible for the accuracy or completeness of the information provided by the City. Board of Trustees April 29, 2020 Page ii In addition, this report was prepared using certain assumptions approved by the Board as authorized under the Florida and prescribed by the Florida Statutes as described in the section of this report entitled Actuarial Assumptions and Methods. The prescribed assumptions are the assumed mortality rates detailed in the Actuarial Assumptions and Methods section in accordance with Florida Statutes, Chapter 112.63. All actuarial assumptions used in this report are reasonable for purposes of this valuation. 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 System 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. Peter N. Strong and Trisha Amrose are members of the American Academy of Actuaries. These actuaries meet the Academy’s Qualification Standards to render the actuarial opinions contained herein. The signing actuaries are independent of the plan sponsor. This actuarial valuation and/or cost determination was prepared and completed by us or under our direct supervision, and we acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate. In our 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. Gabriel, Roeder, Smith & Company will be pleased to review this valuation and Report with the Board of Trustees and to answer any questions pertaining to the valuation. Respectfully submitted, GABRIEL, ROEDER, SMITH AND COMPANY Peter N. Strong, FSA, MAAA Trisha Amrose, MAAA Enrolled Actuary No. 20-6975 Enrolled Actuary No. 20-8010 City of Clearwater Employees’ Pension Plan TABLE OF CONTENTS Section Title Page A Discussion of Valuation Results 1. Discussion of Valuation Results A-1 2. Risks Associated with Measuring the Accrued Liability and Actuarially Determined Contribution A-6 B Valuation Results 1. Participant Data B-1 2. Actuarially Determined Contribution (ADC) B-2 3. Actuarial Value of Benefits and Assets B-5 4. Calculation of Employer Normal Cost B-8 5. Reconciliation of Credit Balance B-11 6. Liquidation of the Unfunded Actuarial Accrued Liability B-12 7. Actuarial Gains and Losses B-16 8. Recent History of Valuation Results B-22 9. Recent History of Contributions B-23 10. Actuarial Assumptions and Cost Method B-24 11. Glossary of Terms B-34 C Pension Fund Information 1. Statement of Plan Assets at Market Value C-1 2. Reconciliation of Plan Assets C-2 3. Development of Actuarial Value of Assets C-3 4. Allocation of Plan Assets C-4 5. Investment Rate of Return C-5 D Financial Accounting Information 1. FASB No. 35 D-1 E Miscellaneous Information 1. Reconciliation of Membership Data E-1 2. Active Participant Distribution E-2 3. Inactive Participant Distribution E-6 F Summary of Plan Provisions F-1 SECTION A DISCUSSION OF VALUATION RESULTS City of Clearwater Employees’ Pension Plan A-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 $11,534,013 $9,720,956 $1,813,057 As % of Covered Payroll 12.73 %11.49 %1.24 % Estimated State Contribution 12,000 12,000 0 As % of Covered Payroll 0.01 %0.01 %0.00 % Required Employer Contribution 11,522,013 9,708,956 1,813,057 As % of Covered Payroll 12.72 %11.48 %1.24 % Credit Balance 28,963,282 26,608,126 2,355,156 1/1/2020 Valuation (Decrease) Increase Valuation 1/1/2019 For FYE 9/30/2021 For FYE 9/30/2020 Based onBased on Required Employer Contribution by Group The required employer contribution for each group developed in this year's valuation is shown below: Required Employer Contribution by Group Non-Hazardous $3,534,489 As % of Covered Payroll 6.64 % Hazardous Police 4,872,378 As % of Covered Payroll 23.55 % Hazardous Fire 3,115,146 As % of Covered Payroll 18.64 % Total 11,522,013 As % of Covered Payroll 12.72 % Valuation Based on 1/1/2020 For FYE 9/30/2021 City of Clearwater Employees’ Pension Plan A-2 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 2020 and 2021 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, 2019 were $10,268,063 and $12,000, respectively, for a total of $10,280,063, compared to the required contribution of $9,720,956. The excess contribution of $559,107 was used to increase the credit balance. The minimum required City contribution is 7% of covered payroll. Revisions in Benefits There have been the following revisions in benefits since the previous valuation: • Ordinance No. 9380-20 was passed and adopted on March 5, 2020. This Ordinance provides a 1.5% Cost of Living Adjustment (COLA) annually on all benefits for Police Officers including any benefits accrued after January 1, 2013 (instead of only for benefits accrued prior to January 1, 2013). For any non-grandfathered members (not eligible for normal retirement on January 1, 2013), there will be a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. This change applies to all Police Officers who are actively employed on or after January 1, 2020. The approximate impact of the above revisions to Police Officers’ benefits was measured in the Actuarial Impact Statement dated February 14, 2020. The final impact has been measured in this valuation to reflect the impact on the required contribution payable in the fiscal year ending September 30, 2021. • In compliance with newly adopted Florida Statutes Chapter 112.1816: o If a firefighter is initially diagnosed with cancer while employed as a firefighter, and as a result of the diagnosis of cancer or circumstances arising from the treatment of such cancer, he or she is determined to be wholly prevented from rendering useful and efficient service as a firefighter, and likely to remain so disabled continuously and permanently, the disability or death shall be considered in the line-of-duty. • In compliance with newly adopted Florida Statutes Chapter 112.181: o Disability or death resulting from a condition or impairment of health that is caused by hepatitis, meningococcal meningitis, tuberculosis, hypertension or heart disease resulting in a member being determined to be wholly prevented from rendering useful and efficient service as a firefighter, and likely to remain so disabled continuously and permanently shall be presumed to have been accidental and suffered in the line of duty unless the contrary is shown by competent evidence. The net impact of the above revisions in benefits is an increase in the annual required employer contribution of 1.05% of covered payroll, or $945,406. City of Clearwater Employees’ Pension Plan A-3 Revisions in Actuarial Assumptions or Methods Beginning in this valuation report, the results are determined separately for the three groups of employees covered by the Plan: Non-Hazardous Duty, Hazardous Duty Police Officers, and Hazardous Duty Firefighters. The Market Value of Assets, Actuarial Value of Assets, and Credit Balance as of January 1, 2020 were initially allocated to each group based on the relative proportion of each group’s Actuarial Accrued Liability as of January 1, 2020 before any plan or assumption changes. In subsequent valuation reports, the Market Value of Assets and the Credit Balance will be calculated separately for each group and the Actuarial Value of Assets for each group will be based on the relative proportion of each group’s Market Value of Assets. The investment return assumption has been reduced by 0.10% from 6.75% to 6.65%. This change increased the required contribution by $411,325, or 0.45% of covered payroll. The Board has approved lowering the investment return assumption further in the next two valuations. The rate will be decreased from 6.65% to 6.55% effective January 1, 2021, and to 6.50% effective January 1, 2022. There was no change made to the mortality assumption in this actuarial valuation report. Florida Statutes Chapter 112.63(1)(f) mandates the use of the same mortality tables used by the Florida Retirement System (FRS) in either of its two most recently published actuarial valuation reports. The FRS recently updated its mortality tables in its July 1, 2019 actuarial valuation report after conducting a statewide experience study, so the mortality assumption will be required to be updated in next year’s actuarial valuation report. For informational purposes, if this year’s valuation had been completed using the mortality rates assumed prior to January 1, 2016 (the RP-2000 Combined Healthy Participant Mortality Table for males and females with mortality improvements projected with Scale BB) rather than the mortality rates used by the FRS as mandated by the Florida Statutes, the required City contribution for FY 2021 would have been $12,193,220, or 13.46% of covered payroll, and the funded ratio (excluding the credit balance) as of January 1, 2019 would have been 99.36%. Actuarial Experience There was a net actuarial experience gain of $1,188,833 during the year, which means that actual experience was more favorable than expected. The gain is due to a recognized investment return (on the smoothed actuarial value of assets) above the assumed rate of 6.75%. The investment return on the market value of assets was 20.20%, and the investment return was 7.39% based on the actuarial value of assets. The investment gains were partially offset by net liability-related experience losses. There were demographic experience losses resulting from larger than expected average salary increases (8.84% actual versus 4.35% expected). Actual mortality experience was also a source of experience loss, as there was a lower decrease in benefit payments due to mortality experience than expected ($566,781 versus $885,857 expected). 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. As a result, since the annual payment to amortize the UAL is below $0 before the changes in assumptions and benefits, the actuarial experience gain had no direct effect on the required employer contribution. City of Clearwater Employees’ Pension Plan A-4 Analysis of Change in Employer Contribution The components of change in the required City contribution are as follows: Contribution Rate Last Year 11.48 % Change in Benefits 1.05 Change in Assumptions and Methods 0.45 Amortization Payment on UAAL 0.00 Normal Cost (0.24) Experience Gain/Loss 0.00 Change in Administrative Expenses (0.02) Change in State Revenue 0.00 Contribution Rate This Year 12.72 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 102.60% this year (104.39% before the changes in assumptions and benefits) compared to 104.09% last year. Not including the credit balance in the actuarial value of assets, the funded ratio is 99.76% this year (101.50% before the changes in assumptions and benefits) compared to 101.33% last year. 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. The Market Value of Assets exceeds the Actuarial Value of Assets by $76,655,323 as of the valuation date (see Section C). This difference will be gradually recognized and, in the absence of offsetting losses, the computed contribution rate will gradually decrease by approximately 0.42% of covered payroll. Additionally, as mandated in the Florida Statutes, in the next valuation report, the mortality assumption will need to be updated to the mortality rates used by FRS in their July 1, 2019 actuarial valuation report, which is expected to put downward pressure on the required contribution. However, the investment return assumption is also scheduled to be lowered from 6.65% to 6.55% next year, which will put upward pressure on the required contribution. Relationship to Market Value If Market Value had been the basis for the valuation, the City contribution rate would have been 12.30% of covered payroll (or about $11.15 million), and the funded ratio (excluding the credit balance) would have been 107.29%. The funded ratio based on the market value of assets (excluding the credit balance) last year was 97.03%. City of Clearwater Employees’ Pension Plan A-5 Conclusion The remainder of this Report includes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a summary of plan provisions. City of Clearwater Employees’ Pension Plan A-6 RISKS ASSOCIATED WITH MEASURING THE ACCRUED LIABILITY AND ACTUARIALLY DETERMINED CONTRIBUTION The determination of the accrued liability and the actuarially determined contribution requires the use of assumptions regarding future economic and demographic experience. Risk measures, as illustrated in this report, are intended to aid in the understanding of the effects of future experience differing from the assumptions used in the course of the actuarial valuation. Risk measures may also help with illustrating the potential volatility in the accrued liability and the actuarially determined contribution that result from the differences between actual experience and the actuarial assumptions. 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 due to changing conditions; 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 future measurements. Examples of risk that may reasonably be anticipated to significantly affect the plan’s future financial condition include: 1. Investment risk – actual investment returns may differ from the expected returns; 2. Contribution risk – actual contributions may differ from expected future contributions. For example, actual contributions may not be made in accordance with the plan’s funding policy or material changes may occur in the anticipated number of covered employees, covered payroll, or other relevant contribution base; 3. Salary and Payroll risk – actual salaries and total payroll may differ from expected, resulting in actual future accrued liability and contributions differing from expected; 4. Longevity risk – members may live longer or shorter than expected and receive pensions for a period of time other than assumed; 5. Other demographic risks – members may terminate, retire or become disabled at times or with benefits other than assumed resulting in actual future accrued liability and contributions differing from expected. The effects of certain trends in experience can generally be anticipated. For example if the investment return since the most recent actuarial valuation is less (or more) than the assumed rate, the cost of the plan can be expected to increase (or decrease). Likewise if longevity is improving (or worsening), increases (or decreases) in cost can be anticipated. The computed contribution rate shown on page 1 may be considered as a minimum contribution rate that complies with the Board’s funding policy. The timely receipt of the actuarially determined contributions is critical to support the financial health of the plan. Users of this report should be aware that contributions made at the actuarially determined rate do not necessarily guarantee benefit security. City of Clearwater Employees’ Pension Plan A-7 Plan Maturity Measures Risks facing a pension plan evolve over time. A young plan with virtually no investments and paying few benefits may experience little investment risk. An older plan with a large number of members in pay status and a significant trust may be much more exposed to investment risk. Generally accepted plan maturity measures include the following: 1/1/2020 1/1/2019 Ratio of the market value of assets to total payroll 12.37 11.39 Ratio of actuarial accrued liability to payroll 11.23 11.41 Ratio of actives to retirees and beneficiaries 1.19 1.21 Ratio of net cash flow to market value of assets (3.02)%(3.18)% Ratio of Market Value of Assets to Payroll The relationship between assets and payroll is a useful indicator of the potential volatility of contributions. For example, if the market value of assets is 2.0 times the payroll, a return on assets 5% different than assumed would equal 10% of payroll. A higher (lower) or increasing (decreasing) level of this maturity measure generally indicates a higher (lower) or increasing (decreasing) volatility in plan sponsor contributions as a percentage of payroll. Ratio of Actuarial Accrued Liability to Payroll The relationship between actuarial accrued liability and payroll is a useful indicator of the potential volatility of contributions for a fully funded plan. A funding policy that targets a funded ratio of 100% is expected to result in the ratio of assets to payroll and the ratio of liability to payroll converging over time. The ratio of liability to payroll may also be used as a measure of sensitivity of the liability itself. For example, if the actuarial accrued liability is 2.5 times the payroll, a change in liability 2% other than assumed would equal 5% of payroll. A higher (lower) or increasing (decreasing) level of this maturity measure generally indicates a higher (lower) or increasing (decreasing) volatility in liability (and also plan sponsor contributions) as a percentage of payroll. Ratio of Actives to Retirees and Beneficiaries A young plan with many active members and few retirees will have a high ratio of active to retirees. A mature open plan may have close to the same number of actives to retirees resulting in a ratio near 1.0. A super-mature or closed plan may have significantly more retirees than actives resulting in a ratio below 1.0. Ratio of Net Cash Flow to Market Value of Assets A positive net cash flow means contributions exceed benefits and expenses. A negative cash flow means existing funds are being used to make payments. A certain amount of negative net cash flow is generally expected to occur when benefits are prefunded through a qualified trust. Large negative net cash flows as a percent of assets may indicate a super-mature plan or a need for additional contributions. City of Clearwater Employees’ Pension Plan A-8 Additional Risk Assessment Additional risk assessment is outside the scope of the annual actuarial valuation. Additional assessment may include scenario tests, sensitivity tests, stochastic modeling, stress tests, and a comparison of the present value of accrued benefits at low-risk discount rates with the actuarial accrued liability. SECTION B VALUATION RESULTS City of Clearwater Employees’ Pension Plan B-1 ACTIVE MEMBERS Number 1,571 1,136 240 195 1,555 Covered Annual Payroll $90,594,113 $53,193,098 $20,686,134 $16,714,881 $84,608,940 Average Annual Payroll $57,667 $46,825 $86,192 $85,717 $54,411 Average Age 43.8 45.1 39.9 41.1 43.9 Average Past Service 10.3 9.9 11.4 11.4 10.3 Average Age at Hire 33.5 35.2 28.5 29.7 33.6 RETIREES & BENEFICIARIES Number 1,186 762 259 165 1,155 Annual Benefits $45,654,032 $26,009,288 $11,904,470 $7,740,274 $43,900,946 Average Annual Benefit $38,494 $34,133 $45,963 $46,911 $38,009 Average Age 67.4 69.0 63.4 66.2 67.0 DISABILITY RETIREES Number 135 39 51 45 133 Annual Benefits $4,325,659 $843,564 $1,934,423 $1,547,672 $4,069,094 Average Annual Benefit $32,042 $21,630 $37,930 $34,393 $30,595 Average Age 65.0 69.3 62.1 64.7 64.8 TERMINATED VESTED MEMBERS Number 80 58 8 14 86 Annual Benefits $1,653,557 $1,093,654 $200,345 $359,558 $1,719,905 Average Annual Benefit $20,669 $18,856 $25,043 $25,683 $19,999 Average Age 48.8 50.6 43.2 44.9 48.5 Total PARTICIPANT DATA January 1, 2020 January 1, 2019 Total Hazardous FireNon-Hazardous Hazardous Police City of Clearwater Employees’ Pension Plan B-2 A.Valuation Date B.ADC to Be Paid During Fiscal Year Ending 9/30/2021 9/30/2021 9/30/2021 9/30/2021 C.Assumed Date of Employer Contrib.Evenly during Evenly during Evenly during Evenly during first two quarters first two quarters first two quarters first two quarters of fiscal year of fiscal year of fiscal year of fiscal year D.Annual Payment to Amortize Unfunded Actuarial Liability $351,542 $0 *$351,542 $0 * E.Employer Normal Cost 10,463,285 3,314,101 4,223,590 2,925,594 F.ADC if Paid on the Valuation Date: D+E 10,814,827 3,314,101 4,575,132 2,925,594 G.ADC Adjusted for Frequency of Payments 11,534,013 3,534,489 4,879,378 3,120,146 H.ADC as % of Covered Payroll 12.73 %6.64 %23.59 %18.67 % I.Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 %0.00 %0.00 %0.00 % J.Covered Payroll for Contribution Year 90,594,113 53,193,098 20,686,134 16,714,881 K.ADC for Contribution Year: H x J 11,534,013 3,534,489 4,879,378 3,120,146 L.Estimate of State Revenue in Contribution Year 12,000 0 7,000 5,000 M.Required Employer Contribution (REC) in Contribution Year 11,522,013 3,534,489 4,872,378 3,115,146 N.REC as % of Covered Payroll in Contribution Year: M ÷ J 12.72 %6.64 %23.55 %18.64 % O.Credit Balance 28,963,282 14,888,015 8,368,213 5,707,054 Hazardous Police January 1, 2020 Hazardous FireNon-Hazardous ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - AFTER ASSUMPTION AND PLAN CHANGES Total January 1, 2020 January 1, 2020January 1, 2020 * The annual payment to amortize the UAL is less than $0; however, under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution below the amount required to fund the Normal Cost. City of Clearwater Employees’ Pension Plan B-3 A.Valuation Date B.ADC to Be Paid During Fiscal Year Ending 9/30/2021 9/30/2021 9/30/2021 9/30/2021 C.Assumed Date of Employer Contrib.Evenly during Evenly during Evenly during Evenly during first two quarters first two quarters first two quarters first two quarters of fiscal year of fiscal year of fiscal year of fiscal year D.Annual Payment to Amortize Unfunded Actuarial Liability $0 *$0 *$0 *$0 * E.Employer Normal Cost 9,928,370 3,314,101 3,698,769 2,915,500 F.ADC if Paid on the Valuation Date: D+E 9,928,370 3,314,101 3,698,769 2,915,500 G.ADC Adjusted for Frequency of Payments 10,588,607 3,534,489 3,944,737 3,109,381 H.ADC as % of Covered Payroll 11.69 %6.64 %19.07 %18.60 % I.Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 %0.00 %0.00 %0.00 % J.Covered Payroll for Contribution Year 90,594,113 53,193,098 20,686,134 16,714,881 K.ADC for Contribution Year: H x J 10,588,607 3,534,489 3,944,737 3,109,381 L.Estimate of State Revenue in Contribution Year 12,000 0 7,000 5,000 M.Required Employer Contribution (REC) in Contribution Year 10,576,607 3,534,489 3,937,737 3,104,381 N.REC as % of Covered Payroll in Contribution Year: M ÷ J 11.67 %6.64 %19.04 %18.57 % O.Credit Balance 28,963,282 14,888,015 8,368,213 5,707,054 Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - AFTER ASSUMPTION CHANGES January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 * The annual payment to amortize the UAL is less than $0; however, under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution below the amount required to fund the Normal Cost. City of Clearwater Employees’ Pension Plan B-4 A.Valuation Date B.ADC to Be Paid During Fiscal Year Ending 9/30/2021 9/30/2021 9/30/2021 9/30/2021 9/30/2020 C.Assumed Date of Employer Contrib.Evenly during Evenly during Evenly during Evenly during Evenly during first two quarters first two quarters first two quarters first two quarters first two quarters of fiscal year of fiscal year of fiscal year of fiscal year of fiscal year D.Annual Payment to Amortize Unfunded Actuarial Liability $0 *$0 *$0 *$0 *$0 * E.Employer Normal Cost 9,533,754 3,143,988 3,572,983 2,816,783 9,106,282 F.ADC if Paid on the Valuation Date: D+E 9,533,754 3,143,988 3,572,983 2,816,783 9,106,282 G.ADC Adjusted for Frequency of Payments 10,177,282 3,356,207 3,814,159 3,006,916 9,720,956 H.ADC as % of Covered Payroll 11.23 %6.31 %18.44 %17.99 %11.49 % I.Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 %0.00 %0.00 %0.00 %0.00 % J.Covered Payroll for Contribution Year 90,594,113 53,193,098 20,686,134 16,714,881 84,608,940 K.ADC for Contribution Year: H x J 10,177,282 3,356,207 3,814,159 3,006,916 9,720,956 L.Estimate of State Revenue in Contribution Year 12,000 0 7,000 5,000 12,000 M.Required Employer Contribution (REC) in Contribution Year 10,165,282 3,356,207 3,807,159 3,001,916 9,708,956 N.REC as % of Covered Payroll in Contribution Year: M ÷ J 11.22 %6.31 %18.40 %17.96 %11.48 % O.Credit Balance 28,963,282 14,888,015 8,368,213 5,707,054 26,608,126 Total Non-Hazardous Hazardous Police Hazardous Fire Total ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - BEFORE ASSUMPTION AND PLAN CHANGES January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2019 * The annual payment to amortize the UAL is less than $0; however, under Chapter 112.66 of the Florida Statutes, the annual payment to amortize the UAL may not reduce the contribution below the amount required to fund the Normal Cost. City of Clearwater Employees’ Pension Plan B-5 A.Valuation Date B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits $ 403,751,262 $ 181,678,517 $ 129,330,300 $ 92,742,445 b. Vesting Benefits 36,001,308 26,447,154 5,798,317 3,755,837 c. Disability Benefits 20,703,586 3,638,559 10,507,162 6,557,865 d. Preretirement Death Benefits 7,193,297 4,409,301 1,546,223 1,237,773 e. Return of Member Contributions 4,118,840 3,026,393 631,491 460,956 f. Total 471,768,293 219,199,924 147,813,493 104,754,876 2.Inactive Members a. Service Retirees & Beneficiaries 619,543,028 335,170,136 176,087,896 108,284,996 b. Disability Retirees 57,293,424 9,599,054 27,089,385 20,604,985 c. Terminated Vested Members 18,283,940 11,142,793 2,519,935 4,621,212 d. Total 695,120,392 355,911,983 205,697,216 133,511,193 3. Total for All Members 1,166,888,685 575,111,907 353,510,709 238,266,069 C.Actuarial Accrued (Past Service) Liability 1,017,746,535 520,002,169 298,281,006 199,463,360 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 955,480,325 483,760,095 283,230,661 188,489,569 E.Plan Assets 1.Market Value 1,120,895,937 576,174,867 323,854,740 220,866,330 2. Actuarial Value 1,044,240,614 536,771,682 301,707,108 205,761,824 3. Actuarial Value Excluding Credit Balance 1,015,277,332 521,883,667 293,338,895 200,054,770 F.Actuarial Present Value of Projected Covered Payroll 751,000,217 417,923,732 186,321,652 146,754,833 G.Actuarial Present Value of Projected Member Contributions 66,645,950 33,433,898 18,549,782 14,662,270 H.Accumulated Value of Active Member Contributions 64,188,492 34,383,103 16,816,590 12,988,799 I.Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. - E.3.2,469,203 (1,881,498) 4,942,111 (591,410) J.Funded Ratio = E.2. / C.102.60%103.22%101.15%103.16% K.Funded Ratio Excluding Credit Balance = E.3. / C.99.76%100.36%98.34%100.30% ACTUARIAL VALUE OF BENEFITS AND ASSETS - AFTER PLAN AND ASSUMPTION CHANGES January 1, 2020January 1, 2020 January 1, 2020 Hazardous PoliceTotal January 1, 2020 Hazardous FireNon-Hazardous City of Clearwater Employees’ Pension Plan B-6 A.Valuation Date B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits $ 394,284,856 $ 181,678,517 $ 119,863,842 $ 92,742,497 b. Vesting Benefits 35,371,369 26,447,154 5,168,380 3,755,835 c. Disability Benefits 19,682,677 3,638,559 9,486,250 6,557,868 d. Preretirement Death Benefits 6,985,401 4,409,301 1,423,140 1,152,960 e. Return of Member Contributions 4,120,401 3,026,393 631,491 462,517 f. Total 460,444,704 219,199,924 136,573,103 104,671,677 2.Inactive Members a. Service Retirees & Beneficiaries 619,543,028 335,170,136 176,087,896 108,284,996 b. Disability Retirees 57,293,424 9,599,054 27,089,385 20,604,985 c. Terminated Vested Members 18,283,940 11,142,793 2,519,935 4,621,212 d. Total 695,120,392 355,911,983 205,697,216 133,511,193 3. Total for All Members 1,155,565,096 575,111,907 342,270,319 238,182,870 C.Actuarial Accrued (Past Service) Liability 1,012,024,880 520,002,169 292,563,422 199,459,289 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 951,906,923 483,760,095 279,734,964 188,411,864 E.Plan Assets 1.Market Value 1,120,895,937 576,174,867 323,854,740 220,866,330 2. Actuarial Value 1,044,240,614 536,771,682 301,707,108 205,761,824 3. Actuarial Value Excluding Credit Balance 1,015,277,332 521,883,667 293,338,895 200,054,770 F.Actuarial Present Value of Projected Covered Payroll 751,000,242 417,923,732 186,321,652 146,754,858 G.Actuarial Present Value of Projected Member Contributions 66,645,952 33,433,898 18,549,782 14,662,272 H.Accumulated Value of Active Member Contributions 64,188,492 34,383,103 16,816,590 12,988,799 I.Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. - E.3.(3,252,452) (1,881,498) (775,473) (595,481) J.Funded Ratio = E.2. / C.103.18%103.22%103.13%103.16% K.Funded Ratio Excluding Credit Balance = E.3. / C.100.32%100.36%100.27%100.30% Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIAL VALUE OF BENEFITS AND ASSETS - AFTER ASSUMPTION CHANGE January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 City of Clearwater Employees’ Pension Plan B-7 A.Valuation Date B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits $ 386,825,169 $ 178,435,760 $ 117,480,680 $ 90,908,729 $ 366,373,759 b. Vesting Benefits 34,534,987 25,808,331 5,053,209 3,673,447 32,775,263 c. Disability Benefits 19,344,128 3,582,907 9,319,125 6,442,096 18,314,541 d. Preretirement Death Benefits 6,854,209 4,327,535 1,395,786 1,130,888 6,514,460 e. Return of Member Contributions 4,106,952 3,016,834 629,308 460,810 3,916,877 f. Total 451,665,445 215,171,367 133,878,108 102,615,970 427,894,900 2.Inactive Members a. Service Retirees & Beneficiaries 613,397,085 332,035,438 174,174,391 107,187,256 596,727,046 b. Disability Retirees 56,716,541 9,517,836 26,800,411 20,398,294 53,960,615 c. Terminated Vested Members 17,997,521 10,968,785 2,478,866 4,549,870 18,970,922 d. Total 688,111,147 352,522,059 203,453,668 132,135,420 669,658,583 3. Total for All Members 1,139,776,592 567,693,426 337,331,776 234,751,390 1,097,553,483 C.Actuarial Accrued (Past Service) Liability 1,000,297,379 514,183,512 289,010,814 197,103,053 965,611,907 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 940,950,408 478,515,717 276,282,974 186,151,717 913,458,490 E.Plan Assets 1.Market Value 1,120,895,937 576,174,867 323,854,740 220,866,330 963,571,264 2. Actuarial Value 1,044,240,614 536,771,682 301,707,108 205,761,824 1,005,100,366 3. Actuarial Value Excluding Credit Balance 1,015,277,332 521,883,667 293,338,895 200,054,770 978,492,240 F.Actuarial Present Value of Projected Covered Payroll 746,440,165 415,378,467 185,189,112 145,872,586 695,032,441 G.Actuarial Present Value of Projected Member Contributions 66,241,067 33,230,278 18,436,722 14,574,067 61,737,378 H.Accumulated Value of Active Member Contributions 64,188,492 34,383,103 16,816,590 12,988,799 62,268,307 I.Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. - E.3.(14,979,953) (7,700,155) (4,328,081) (2,951,717) (12,880,333) J.Funded Ratio = E.2. / C.104.39%104.39%104.39%104.39%104.09% K.Funded Ratio Excluding Credit Balance = E.3. / C.101.50%101.50%101.50%101.50%101.33% ACTUARIAL VALUE OF BENEFITS AND ASSETS - BEFORE PLAN AND ASSUMPTION CHANGES January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2019 TotalTotalNon-Hazardous Hazardous Police Hazardous Fire City of Clearwater Employees’ Pension Plan B-8 A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits $12,688,320 $4,708,838 $4,548,907 $3,430,575 2.Vesting 2,368,651 1,575,965 486,222 306,464 3.Disability Benefits 1,875,825 292,571 953,395 629,859 4.Death Benefits 304,363 171,993 67,886 64,484 5.Refund of Contributions 873,017 653,495 121,975 97,547 6.Total for Future Benefits 18,110,176 7,402,862 6,178,385 4,528,929 7.Assumed Amount for Administrative Expenses 324,274 166,687 93,691 63,896 8.Total Normal Cost 18,434,450 7,569,549 6,272,076 4,592,825 C.Expected Member Contributions 7,971,165 4,255,448 2,048,486 1,667,231 D.Employer Normal Cost: B8 - C 10,463,285 3,314,101 4,223,590 2,925,594 E. Employer Normal Cost as % of Covered Payroll 11.55%6.23%20.42%17.50% CALCULATION OF EMPLOYER NORMAL COST ENTRY AGE NORMAL METHOD - AFTER PLAN AND ASSUMPTION CHANGES January 1, 2020 January 1, 2020 Hazardous PoliceTotal January 1, 2020 Non-Hazardous January 1, 2020 Hazardous Fire City of Clearwater Employees’ Pension Plan B-9 A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits $12,302,186 $4,708,838 $4,162,773 $3,430,575 2.Vesting 2,334,259 1,575,965 451,830 306,464 3.Disability Benefits 1,776,937 292,571 854,507 629,859 4.Death Benefits 288,560 171,993 62,479 54,088 5.Refund of Contributions 873,319 653,495 121,975 97,849 6.Total for Future Benefits 17,575,261 7,402,862 5,653,564 4,518,835 7.Assumed Amount for Administrative Expenses 324,274 166,687 93,691 63,896 8.Total Normal Cost 17,899,535 7,569,549 5,747,255 4,582,731 C.Expected Member Contributions 7,971,165 4,255,448 2,048,486 1,667,231 D.Employer Normal Cost: B8 - C 9,928,370 3,314,101 3,698,769 2,915,500 E. Employer Normal Cost as % of Covered Payroll 10.96%6.23%17.88%17.44% Total Non-Hazardous Hazardous Police Hazardous Fire CALCULATION OF EMPLOYER NORMAL COST ENTRY AGE NORMAL METHOD - AFTER ASSUMPTION CHANGE January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 City of Clearwater Employees’ Pension Plan B-10 A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits $11,993,969 $4,586,375 $4,059,691 $3,347,903 $11,370,851 2.Vesting 2,275,872 1,534,308 441,810 299,754 2,130,683 3.Disability Benefits 1,752,905 288,867 842,714 621,324 1,644,733 4.Death Benefits 282,178 168,095 61,137 52,946 265,837 5.Refund of Contributions 875,721 655,104 122,426 98,191 815,818 6.Total for Future Benefits 17,180,645 7,232,749 5,527,778 4,420,118 16,227,922 7.Assumed Amount for Administrative Expenses 324,274 166,687 93,691 63,896 318,903 8.Total Normal Cost 17,504,919 7,399,436 5,621,469 4,484,014 16,546,825 C.Expected Member Contributions 7,971,165 4,255,448 2,048,486 1,667,231 7,440,543 D.Employer Normal Cost: B8 - C 9,533,754 3,143,988 3,572,983 2,816,783 9,106,282 E. Employer Normal Cost as % of Covered Payroll 10.52%5.91%17.27%16.85%10.76% Total Non-Hazardous Hazardous Police Hazardous Fire CALCULATION OF EMPLOYER NORMAL COST ENTRY AGE NORMAL METHOD - BEFORE PLAN AND ASSUMPTION CHANGES January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2019 Total City of Clearwater Employees’ Pension Plan B-11 Total Non-Hazardous Hazardous Police Hazardous Fire $26,608,126 $N/A $N/A $N/A -9,708,956 -N/A -N/A -N/A +10,268,063 +N/A +N/A +N/A +1,796,049 +N/A +N/A +N/A 28,963,282 14,888,015 8,368,213 5,707,054 Interest on Credit Balance Credit Balance at End of Year Credit Balance at Beginning of Year Required Employer Contribution Employer Contribution Made Reconcilation of Credit Balance City of Clearwater Employees’ Pension Plan B-12 LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) UAAL Amortization Period and Payments - Non-Hazardous Date Established Source Amount Years Remaining Amount After Assumption Changes Before Assumption Changes 1/1/2015 Fresh Start (2,679,461)$ 18 (3,804,757)$ (345,749)$ (347,957)$ 1/1/2016 (Gain)/Loss 244,325 11 322,615 39,640 39,802 1/1/2016 Assumption Change (2,200,261) 21 (2,898,514) (243,810) (245,574) 1/1/2017 (Gain)/Loss (9,301,995) 12 (11,420,340) (1,323,152) (1,329,036) 1/1/2017 Assumption Change 156,236 22 191,603 15,774 15,892 1/1/2018 (Gain)/Loss (5,692,965) 13 (6,522,324) (717,292) (720,731) 1/1/2019 (Gain)/Loss 2,983,422 14 3,191,262 335,005 336,724 1/1/2019 Assumption Change 12,955,157 24 13,851,397 1,097,820 1,106,613 1/1/2020 (Gain)/Loss (611,097) 15 (611,097) (61,528) (61,864) 1/1/2020 Assumption Change 5,818,657 25 5,818,657 453,504 N/A 1,672,018 (1,881,498) (749,788) (1,206,131) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-13 UAAL Amortization Period and Payments - Hazardous Police Date Established Source Amount Years Remaining Amount After Plan/ Assumption Changes Before Plan/ Assumption Changes 1/1/2015 Fresh Start (1,506,064)$ 18 (2,138,567)$ (194,337)$ (195,579)$ 1/1/2016 (Gain)/Loss 137,330 11 181,334 22,281 22,372 1/1/2016 Assumption Change (1,236,717) 21 (1,629,189) (137,040) (138,032) 1/1/2017 (Gain)/Loss (5,228,439) 12 (6,419,113) (743,713) (747,021) 1/1/2017 Assumption Change 87,817 22 107,696 8,866 8,932 1/1/2018 (Gain)/Loss (3,199,886) 13 (3,666,050) (403,174) (405,106) 1/1/2019 (Gain)/Loss 1,676,914 14 1,793,735 188,299 189,265 1/1/2019 Assumption Change 7,281,798 24 7,785,556 617,060 622,002 1/1/2020 (Gain)/Loss (343,483) 15 (343,483) (34,583) (34,772) 1/1/2020 Assumption Change 3,552,608 25 3,552,608 276,889 N/A 1/1/2020 Plan Amendment 5,717,584 10 5,717,584 750,994 N/A 6,939,462 4,942,111 351,542 (677,939) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-14 UAAL Amortization Period and Payments - Hazardous Fire Date Established Source Amount Years Remaining Amount After Plan/ Assumption Changes Before Plan/ Assumption Changes 1/1/2015 Fresh Start (1,027,124)$ 18 (1,458,485)$ (132,537)$ (133,383)$ 1/1/2016 (Gain)/Loss 93,658 11 123,669 15,195 15,257 1/1/2016 Assumption Change (843,431) 21 (1,111,094) (93,460) (94,136) 1/1/2017 (Gain)/Loss (3,565,754) 12 (4,377,783) (507,207) (509,462) 1/1/2017 Assumption Change 59,890 22 73,448 6,047 6,092 1/1/2018 (Gain)/Loss (2,182,297) 13 (2,500,217) (274,961) (276,279) 1/1/2019 (Gain)/Loss 1,143,642 14 1,223,313 128,418 129,077 1/1/2019 Assumption Change 4,966,128 24 5,309,685 420,830 424,200 1/1/2020 (Gain)/Loss (234,253) 15 (234,253) (23,586) (23,714) 1/1/2020 Assumption Change 2,356,236 25 2,356,236 183,644 N/A 1/1/2020 Plan Amendment 4,071 10 4,071 535 N/A 770,766 (591,410) (277,082) (462,348) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-15 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 schedules are as follows: 2020 $(1,881,498) 2021 (1,206,971) 2022 (487,586) 2023 - Amortization Schedule - Non-Hazardous Year Expected UAAL 2020 $4,942,111 2021 4,895,863 2022 4,846,518 2023 4,793,892 2024 4,737,767 2025 4,677,909 2030 4,313,345 2035 5,260,204 2040 3,349,200 2045 - Amortization Schedule - Hazardous Police Year Expected UAAL 2020 $(591,410) 2021 (335,234) 2022 (62,019) 2023 - Amortization Schedule - Hazardous Fire Year Expected UAAL City of Clearwater Employees’ Pension Plan B-16 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: 1.Last Year's UAAL $(12,880,333) 2.Employer Normal Cost for Contribution Year 9,106,282 3.Last Year's Contributions 9,720,956 * 4. Interest at the Assumed Rate on: a.1 and 2 for one year (254,748) b.3 from dates paid 41,365 c. a - b (296,113) 5.This Year's Expected UAAL: 1 + 2 - 3 + 4c (13,791,120) 6.This Year's Actual UAAL (Before any changes in benefits and assumptions)(14,979,953) 7.Net Actuarial Gain (Loss): (5) - (6)1,188,833 8.Gain (Loss) Due to Investments 6,457,409 9.Gain (Loss) Due to other sources (5,268,576) 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. City of Clearwater Employees’ Pension Plan B-17 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) 2015 (475,313)0.07 ** 2016 18,096,188 (2.51)** 2017 11,075,148 (1.48)** 2018 (5,803,978)0.75 ** 2019 1,188,833 (0.14)** Employer Cost Rate* Change in * Before 2015, Change in Normal Cost Rate. ** Before reflecting Chapter 112.66 of the Florida Statutes. Since the annual payment to amortize the UAAL is less than $0, the net effect of these gains and losses on the required employer contribution is $0 after reflecting Chapter 112.66 of the Florida Statutes (the requirement to fund at least the normal cost). City of Clearwater Employees’ Pension Plan B-18 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 12/31/2015 7.64 7.00 8.65 *4.09 12/31/2016 8.22 7.00 1.23 *4.13 12/31/2017 8.89 7.00 7.35 4.16 12/31/2018 5.76 7.00 4.08 4.18 12/31/2019 7.39 6.75 8.84 4.35 Averages 7.88 %---5.43 %--- Salary Increases Actual Investment Return Year Ending Actual Assumed Assumed * Salary for the year ending 12/31/2015 included 27 pay periods rather than 26. 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. City of Clearwater Employees’ Pension Plan B-19 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 City of Clearwater Employees’ Pension Plan B-20 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 145 122 43 52 7 3 1 2 18 53 71 82 1,505 12/31/2016 159 144 49 60 4 3 2 3 18 71 89 89 1,520 12/31/2017 164 161 47 59 2 3 2 2 25 85 110 91 1,523 12/31/2018 207 175 45 65 1 3 0 2 27 102 129 92 1,555 12/31/2019 164 148 38 52 3 4 1 2 13 93 106 99 1,571 12/31/2020 52 4 2 100 11 Yr Totals *1406 1463 510 590 35 46 16 23 187 715 902 953 * Totals are through current Plan Year only. Terminations Year Retirement Retirement Death Totals During Service Disability Actual (A) Compared to Expected (E) Decrements Among Active Employees Number Added City of Clearwater Employees’ Pension Plan B-21 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 19 385,405 22 558,603 12/31/2016 20 498,746 25 708,907 12/31/2017 15 288,110 26 753,482 12/31/2018 25 762,324 28 831,241 12/31/2019 20 566,781 28 885,857 12/31/2020 29 949,503 Actual (A) Compared to Expected (E) Deaths Among Retirees and Beneficiaries Actual During Year Annual Pensions Annual Pensions Expected During Year City of Clearwater Employees’ Pension Plan B-22 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 1/1/16 1,505 1,237 80,250,993 866,598,975 857,177,619 (9,421,356)101.1 8,358,975 10.42 1/1/17 1,520 1,278 79,276,100 908,229,246 880,316,652 (27,912,594)103.2 8,092,922 10.21 1/1/18 1,523 1,334 82,317,307 957,314,542 916,334,666 (40,979,876)104.5 8,236,726 10.01 1/1/19 1,555 1,374 84,608,940 978,492,240 965,611,907 (12,880,333)101.3 9,106,282 10.76 1/1/20 1,571 1,401 90,594,113 1,015,277,332 1,017,746,535 2,469,203 99.8 10,463,285 11.55 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. City of Clearwater Employees’ Pension Plan B-23 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 8,755,703 12,000 8,767,703 1/1/16 9/30/17 8,944,103 11.15 12,000 0.02 8,932,103 11.13 8,932,103 12,000 8,944,103 1/1/17 9/30/18 8,659,427 10.92 12,000 0.01 8,647,427 10.91 8,647,427 12,000 8,659,427 1/1/18 9/30/19 8,813,297 10.71 12,000 0.02 8,801,297 10.69 8,801,297 12,000 8,813,297 1/1/19 9/30/20 9,720,956 11.49 12,000 0.01 9,708,956 11.48 9,708,956 12,000 9,720,956 1/1/20 9/30/21 11,534,013 12.73 12,000 0.01 11,522,013 12.72 --- --- --- % of Payroll Employer State Valuation Date End of Year To Which Valuation Applies Amount Actual Contributions % of Payroll TotalAmount % of PayrollAmount RECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS Estimated State Required Contributions Employer & State Net Employer Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers. City of Clearwater Employees’ Pension Plan B-24 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. Both the economic and decrement assumptions were established following the Experience Investigation for the Five Years Ended December 31, 2017, dated December 6, 2018. The mortality assumption is mandated by Chapter 112.63, Florida Statutes. Economic Assumptions The investment return rate assumed in the valuation is 6.65% per year, compounded annually (net rate after investment expenses). This assumption was changed this year (based on the results of a 5-year experience study) from 6.75%. City of Clearwater Employees’ Pension Plan B-25 The Inflation Rate assumed in this valuation is 2.25% per year. The Inflation Rate is defined to be the expected long-term rate of increases in the prices of goods and services. The assumed real rate of return over inflation is defined to be the portion of total investment return that is more than the assumed inflation rate. Considering other economic assumptions, the 6.65% investment return rate translates to an assumed real rate of return over inflation of 4.40%. 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 increases and productivity increases, and 2.25% recognizes inflation. This assumption is used to project a member’s current salary to the salaries upon which benefits will be based. Years of Service 1 - 2 2.25%7.60% 3 - 4 2.25%6.25% 5 - 9 2.25%5.50% 10 - 14 2.25%5.25% 15 and Higher 2.25%4.50% 3.00% 2.25% 5.35% 4.00% 3.25% % Increase in Salary - Hazardous Duty Merit and Seniority Inflation Total Increase Years of Service 1 2.25%6.50% 2 2.25%5.60% 3 2.25%4.50% 4 - 9 2.25%3.75% 10 - 14 2.25%3.55% 15 - 19 2.25%3.05% 20 and Higher 2.25%2.75% 1.50% 1.30% 0.50% 0.80% 4.25% 3.35% 2.25% % Increase in Salary - Non-Hazardous Duty Merit and Seniority Inflation Total Increase City of Clearwater Employees’ Pension Plan B-26 Demographic Assumptions The mortality table for Hazardous Duty members is the RP-2000 Combined Healthy Participant Mortality Table (for pre-retirement mortality) and the RP-2000 Mortality Table for Annuitants (for post-retirement mortality) with future improvements in mortality projected to all future years using Scale BB. For females, the base mortality rates include a 100% white collar adjustment. For males, the base mortality rates include a 90% blue collar adjustment and a 10% white collar adjustment. These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) in the July 1, 2018 FRS Actuarial Valuation Report. Florida Statutes Chapter 112.63(1)(f) mandates the use of the same mortality tables used by the FRS in either of its two most recently published actuarial valuation reports. FRS Healthy Post-Retirement Mortality for Special Risk Class Members Sample AttainedAges (in 2020)Men Women Men Women 50 0.53 %0.23 %34.24 38.59 55 0.66 0.32 29.60 33.58 60 0.88 0.46 25.03 28.68 65 1.26 0.72 20.62 23.92 70 1.92 1.19 16.46 19.44 75 3.12 2.02 12.70 15.34 80 5.13 3.38 9.44 11.68 Probability of Future Life Dying Next Year Expectancy (years) This assumption is used to measure the probabilities of each benefit payment being made after retirement. FRS Healthy Pre-Retirement Mortality for Special Risk Class Members Sample Attained Ages (in 2020)Men Women Men Women 50 0.22 %0.15 %35.22 38.94 55 0.39 0.23 30.11 33.80 60 0.70 0.38 25.23 28.78 65 1.19 0.68 20.67 23.95 70 1.92 1.19 16.46 19.44 75 3.12 2.02 12.70 15.34 80 5.13 3.38 9.44 11.68 Probability of Future Life Dying Next Year Expectancy (years) This assumption is used to measure the probabilities of active members dying prior to retirement. All Police and 90% of Firefighters’ deaths before retirement are assumed to be non-service connected. City of Clearwater Employees’ Pension Plan B-27 For disabled retirees, the mortality table used was 60% of the RP-2000 Mortality Table for Disabled Annuitants with ages set back 4 years for males and set forward 2 years for females, and 40% of the RP-2000 Annuitants Mortality Table with a white collar adjustment with no age set back, both with no provision being made for future mortality improvements. These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) in the July 1, 2018 FRS Actuarial Valuation Report. Florida Statutes Chapter 112.63(1)(f) mandates the use of the same mortality tables used by the FRS in either of its two most recently published actuarial valuation reports. FRS Disabled Mortality for Special Risk Class Members Sample Attained Ages Men Women Men Women 50 1.67 %0.91 %23.74 27.06 55 2.03 1.26 20.77 23.37 60 2.47 1.67 17.91 19.90 65 3.07 2.24 15.15 16.62 70 3.90 3.18 12.52 13.58 75 5.30 4.60 10.02 10.86 80 7.59 6.66 7.80 8.48 Probability of Future Life Dying Next Year Expectancy (years) The mortality table for Nonhazardous Duty members is the RP-2000 Combined Healthy Participant Mortality Table (for pre-retirement mortality) and the RP-2000 Mortality Table for Annuitants (for post-retirement mortality) with future improvements in mortality projected to all future years using Scale BB. For females, the base mortality rates include a 100% white collar adjustment. For males, the base mortality rates include a 50% blue collar adjustment and a 50% white collar adjustment. These are the same rates currently in use for Non-Special Risk Class members of the Florida Retirement System (FRS) in the July 1, 2018 FRS Actuarial Valuation Report. Florida Statutes Chapter 112.63(1)(f) mandates the use of the same mortality tables used by the FRS in either of its two most recently published actuarial valuation reports. FRS Healthy Post-Retirement Mortality for Non-Special Risk Class Members Sample Attained Ages (in 2020)Men Women Men Women 50 0.55 %0.23 %34.99 38.59 55 0.60 0.32 30.37 33.58 60 0.75 0.46 25.70 28.68 65 1.11 0.72 21.17 23.92 70 1.70 1.19 16.89 19.44 75 2.84 2.02 12.99 15.34 80 4.80 3.38 9.61 11.68 Dying Next Year Expectancy (years) Probability of Future Life This assumption is used to measure the probabilities of each benefit payment being made after retirement. City of Clearwater Employees’ Pension Plan B-28 FRS Healthy Pre-Retirement Mortality for Non-Special Risk Class Members Sample Attained Ages (in 2020)Men Women Men Women 50 0.21 %0.15 %35.91 38.94 55 0.35 0.23 30.79 33.80 60 0.60 0.38 25.87 28.78 65 1.04 0.68 21.21 23.95 70 1.70 1.19 16.89 19.44 75 2.84 2.02 12.99 15.34 80 4.80 3.38 9.61 11.68 Probability of Future Life Dying Next Year Expectancy (years) This assumption is used to measure the probabilities of active members dying prior to retirement. All deaths before retirement are assumed to be non-service connected. For disabled retirees, the mortality table used was the RP-2000 mortality for disabled annuitants, set-back 4 years for males and set-forward 2 years for females, with no provision being made for future mortality improvements. These are the same rates currently in use for Non-Special Risk Class members of the Florida Retirement System (FRS) in the July 1, 2018 FRS Actuarial Valuation Report. Florida Statutes Chapter 112.63(1)(f) mandates the use of the same mortality tables used by the FRS in either of its two most recently published actuarial valuation reports. FRS Disabled Mortality for Non-Special Risk Class Members Sample Attained Ages Men Women Men Women 50 2.38 %1.35 %20.25 23.74 55 3.03 1.87 17.78 20.46 60 3.67 2.41 15.55 17.43 65 4.35 3.13 13.44 14.58 70 5.22 4.29 11.39 11.96 75 6.58 5.95 9.43 9.65 80 8.70 8.23 7.65 7.66 Probability of Future Life Dying Next Year Expectancy (years) City of Clearwater Employees’ Pension Plan B-29 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 - 54 5 % 55 - 59 15 60 - 64 40 65 & Over 100 20 & Over Under 55 15 55 - 59 30 60 - 64 40 65 & Over 100 Hazardous Duty Retirement Years of Probability of Service Age Retirement 10 - 19 65 - 74 30 % 75 & Over 100 20 - 29 55 - 64 20 65 - 69 30 70 & Over 100 30 & Over Under 55 45 55 - 59 20 60 - 64 30 65 - 69 50 70 & Over 100 Non-Hazardous Duty Retirement City of Clearwater Employees’ Pension Plan B-30 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 separating from employment prior to becoming eligible for retirement. Years of % of Active Members Years of % of Active Members Service Age Separating Within Next Year Service Age Separating Within Next Year Under 1 All Ages 8.5 %Under 1 All Ages 20.0 % 1 All Ages 7.5 1 & Over All Ages 4.0 2 - 5 Under 40 4.5 40 & Over 2.5 6 & Over Under 40 2.0 40 & Over 1.5 Hazardous Duty Withdrawal - Males Hazardous Duty Withdrawal - Females Years of % of Active Members Years of % of Active Members Service Age Separating Within Next Year Service Age Separating Within Next Year Under 1 Under 35 25.0 %Under 3 Under 30 22.0 % 35 & Over 11.0 30 - 34 15.0 35 - 44 5.0 1 - 2 All Ages 16.0 45 - 49 14.0 50 - 59 18.0 3 - 4 Under 40 11.0 60 & Over 25.0 40 & Over 5.0 3 - 4 Under 30 18.0 5 - 9 Under 30 12.5 30 - 39 14.0 30 - 49 5.0 40 - 59 5.0 50 - 59 3.0 60 & Over 20.0 60 & Over 7.5 5 - 9 Under 35 5.0 10 & Over Under 35 7.5 35 - 44 6.0 35 - 39 4.0 45 - 59 4.5 40 - 49 3.5 60 & Over 3.0 50 - 54 2.0 55 - 59 3.0 10 & Over Under 40 6.0 60 & Over 4.5 40 - 44 5.0 45 - 49 3.75 50 - 54 3.25 55 - 59 2.75 60 & Over 6.0 Non-Hazardous Duty Withdrawal - Males Non-Hazardous Duty Withdrawal - Females City of Clearwater Employees’ Pension Plan B-31 Rates of disability among active members (100% of disabilities are assumed to be service- connected). Sample Ages 20 0.25 %0.50 % 25 0.25 0.50 30 0.25 0.75 35 0.30 1.00 40 0.45 1.25 45 0.60 1.50 50 0.60 1.50 55 0.60 1.50 60 0.75 1.50 65 1.00 1.50 70 1.50 1.50 Males Females Hazardous Duty Disability % of Active Members Becoming Disabled Within Next Year Sample Ages 20 0.03 %0.03 % 25 0.03 0.03 30 0.03 0.03 35 0.04 0.04 40 0.07 0.07 45 0.10 0.10 50 0.14 0.14 55 0.24 0.24 60 0.29 0.29 65 0.34 0.34 70 0.44 0.44 Males Females Non-Hazardous Duty Disability % of Active Members Becoming Disabled Within Next Year City of Clearwater Employees’ Pension Plan B-32 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 and hazardous duty police officers employed on or after January 1, 2020 for benefits accrued after January 1, 2013. There is no COLA for non- grandfathered hazardous duty firefighters 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. City of Clearwater Employees’ Pension Plan B-33 Marriage Assumption 75% of males and 75% of females are assumed to be married for purposes of death-in-service benefits and to determine the normal form of benefit when applicable. Male spouses are assumed to be three years older than female spouses for all active members and for members who became inactive before January 1, 2015. For members who became inactive on or after January 1, 2015, spouses ages are based on the beneficiary dates of birth provided by the Plan Administrator. 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. City of Clearwater Employees’ Pension Plan B-34 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 Actuarially Determined Contribution (ADC). 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 Determined Contribution (ADC). City of Clearwater Employees’ Pension Plan B-35 Actuarially Determined Contribution (ADC) The employer’s periodic required contributions, expressed as a dollar amount or a percentage of covered plan compensation. The ADC consists of the Employer Normal Cost and Amortization Payment. 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 ADC 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. 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. Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current plan year. City of Clearwater Employees’ Pension Plan B-36 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 City of Clearwater Employees’ Pension Plan C-1 Statement of Plan Assets at Market Value 2019 2018 A.Cash and Cash Equivalents (Operating Cash)-$ -$ B.Receivables 1.Member Contributions -$ -$ 2.Employer Contributions 4,735,719 5,075,757 3.Investment Income and Other Receivables 10,393,319 4,974,583 4.Total Receivables 15,129,038$ 10,050,340$ C.Investments 1.Short-Term Investments 19,252,436$ 15,241,276$ 2.Domestic Equities 467,303,037 374,546,281 3.International Equities 202,478,365 159,926,512 4.Domestic Fixed Income 290,776,763 297,341,842 5.International Fixed Income - - 6.Real Estate 95,127,571 93,435,527 7.Infrastructure 43,301,120 37,781,686 8.Private Equity - - 9.Total Investments 1,118,239,292$ 978,273,124$ D.Liabilities 1.Benefits Payable -$ -$ 2.Accrued Expenses and Other Payables (12,472,393) (24,752,200) 3.Total Liabilities (12,472,393)$ (24,752,200)$ E.Total Market Value of Assets Available for Benefits 1,120,895,937$ 963,571,264$ F.Allocation of Investments 1.Short-Term Investments 1.72%1.56% 2.Domestic Equities 41.79%38.29% 3.International Equities 18.11%16.35% 4.Domestic Fixed Income 26.00%30.39% 5.International Fixed Income 0.00%0.00% 6.Real Estate 8.51%9.55% 7.Infrastructure 3.87%3.86% 8.Private Equity 0.00%0.00% 9.Total Investments 100.00%100.00% December 31 Item City of Clearwater Employees’ Pension Plan C-2 Reconciliation of Plan Assets 2019 2018 A.Market Value of Assets at Beginning of Year 963,571,264$ 1,019,110,192$ B.Revenues and Expenditures 1.Contributions a.Employee Contributions 7,482,806$ 7,172,027$ b.Employer Contributions 10,268,063 10,992,120 c.State Contributions 12,000 12,000 d.Total 17,762,869$ 18,176,147$ 2.Investment Income a.Interest, Dividends, and Other Income 21,605,614$ 20,589,882$ b.Net Realized Gains/(Losses)32,562,716 59,848,063 c.Net Unrealized Gains/(Losses)143,690,454 (98,752,444) d.Investment Expenses (6,674,393) (6,623,785) e.Net Investment Income 191,184,391$ (24,938,284)$ 3.Benefits and Refunds a.Refunds (941,143)$ (1,050,810)$ b.Regular Monthly Benefits (49,309,666) (47,209,075) c.Partial Lump-Sum Benefits Paid (1,047,504) (198,003) d.Total (51,298,313)$ (48,457,888)$ 4.Administrative and Miscellaneous Expenses (324,274)$ (318,903)$ 5.Transfers -$ -$ C.Market Value of Assets at End of Year 1,120,895,937$ 963,571,264$ December 31 Item City of Clearwater Employees’ Pension Plan C-3 Development of Actuarial Value of Assets Valuation Date - December 31 2018 2019 2020 2021 2022 2023 A.Actuarial Value of Assets Beginning of Year 980,134,451$ 1,005,100,366$ B.Market Value End of Year 963,571,264 1,120,895,937 C.Market Value Beginning of Year 1,019,110,192 963,571,264 D.Non-Investment/Administrative Net Cash Flow (30,600,644) (33,859,718) E.Investment Income E1. Actual Market Total: B-C-D (24,938,284) 191,184,391 E2. Assumed Rate of Return 7.00%6.75%6.65%6.55%6.50%6.50% E3. Assumed Amount of Return 70,071,393 63,739,343 E4. Amount Subject to Phase-In: E1–E3 (95,009,677) 127,445,048 F.Phase-In Recognition of Investment Income F1. Current Year: 0.2 x E4 (19,001,935) 25,489,010 F2. First Prior Year 16,085,119 (19,001,935) 25,489,010 F3. Second Prior Year (465,144) 16,085,119 (19,001,935) 25,489,010 F4. Third Prior Year (12,846,426) (465,144) 16,085,119 (19,001,935) 25,489,010 F5. Fourth Prior Year 1,723,552 (12,846,427) (465,145) 16,085,118 (19,001,937) 25,489,008 F6. Total Phase-Ins (14,504,834) 9,260,623 22,107,049 22,572,193 6,487,073 25,489,008 G.Actuarial Value of Assets End of Year G1. Preliminary Actuarial Value of Assets 1,005,100,366$ 1,044,240,614$ G2. Upper Corridor Limit: 120%*B 1,156,285,517$ 1,345,075,124$ G3. Lower Corridor Limit: 80%*B 770,857,011$ 896,716,750$ G4. Funding Value End of Year 1,005,100,366$ 1,044,240,614$ G5. Credit Balance 26,608,126$ 28,963,282$ G6. Final Actuarial Value of Assets 978,492,240$ 1,015,277,332$ H.Recognized Investment Earnings 55,566,559$ 72,999,966$ I.Difference between Market & Actuarial Value (41,529,102)$ 76,655,323$ J.Actuarial Rate of Return 5.76%7.39% K.Market Value Rate of Return -2.48%20.20% L.Ratio of Actuarial Value of Assets to Market Value 104.31%93.16% 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. City of Clearwater Employees’ Pension Plan C-4 Allocation of Plan Assets by Group Total Non-Hazardous Hazardous Police Hazardous Fire A.Market Value of Assets as of January 1, 2020 1,120,895,937$ 576,174,867$ 323,854,740$ 220,866,330$ B.Actuarial Value of Assets as of January 1, 2020 1,044,240,614$ 536,771,682$ 301,707,108$ 205,761,824$ Item The Market Value of Assets and the Actuarial Value of Assets as of January 1, 2020 were allocated to each group based on the allocation of each group’s Actuarial Accrued Liability as of January 1, 2020 before any plan or assumption changes. City of Clearwater Employees’ Pension Plan C-5 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 2015 (0.28)7.64 2016 6.70 8.22 2017 16.01 8.89 2018 (2.48)5.76 2019 20.20 7.39 Average returns: Last five years:7.67 % 7.57 % Last ten years:9.32 % 7.86 % All years:9.21 % 7.88 % 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 City of Clearwater Employees’ Pension Plan D-1 A.Valuation Date B.Actuarial Present Value of Accumulated Plan Benefits 1.Vested Benefits a.Members Currently Receiving Payments $676,836,452 $650,687,661 b.Terminated Vested Members 18,283,940 18,970,922 c.Other Members 243,779,791 229,609,403 d.Total 938,900,183 899,267,986 2.Non-Vested Benefits 16,580,142 14,190,504 3.Total Actuarial Present Value of Accumulated Plan Benefits: 1d + 2 955,480,325 913,458,490 4.Accumulated Contributions of Active Members 64,188,492 62,268,307 C.Changes in the Actuarial Present Value of Accumulated Plan Benefits 1.Total Value at Beginning of Year 913,458,490 866,723,368 2.Increase (Decrease) During the Period Attributable to: a.Plan Amendment 3,573,402 0 b.Change in Actuarial Assumptions 10,956,515 20,022,349 c.Latest Member Data, Benefits Accumulated and Decrease in the Discount Period 78,790,231 75,170,661 d.Benefits Paid (51,298,313)(48,457,888) e.Net Increase 42,021,835 46,735,122 3.Total Value at End of Period 955,480,325 913,458,490 D.Market Value of Assets 1,120,895,937 963,571,264 E.Actuarial Assumptions - See page entitled Actuarial Assumptions and Methods FASB NO. 35 INFORMATION January 1, 2020 January 1, 2019 SECTION E MISCELLANEOUS INFORMATION City of Clearwater Employees’ Pension Plan E-1 A. 1.Number Included in Last Valuation 1,555 1,523 2.New Members Included in Current Valuation 162 206 3.Non-Vested Employment Terminations (93)(102) 4.Vested Employment Terminations (13)(27) 5.Service Retirements (38)(45) 6.Disability Retirements (3)(1) 7.Deaths (1)0 8.Rehired Members/Data Corrections 2 1 9.Number Included in This Valuation 1,571 1,555 B. 1.Number Included in Last Valuation 86 75 2.Additions from Active Members 13 27 3.Lump Sum Payments/Refund of Contributions (6)(5) 4.Payments Commenced (11)(9) 5.Deaths 0 0 6.Conversion from Disability/Rehired Members (2)(2) 7.Data Corrections 0 0 8.Number Included in This Valuation 80 86 C. 1.Number Included in Last Valuation 1,288 1,259 2.Additions from Active Members 41 46 3.Additions from Terminated Vested Members 11 9 4.Deaths Resulting in No Further Payments (19)(24) 5.Deaths Resulting in New Survivor Benefits 1 0 6.End of Certain Period - No Further Payments 0 (1) 7.Data Correction/Waiver of Benefits (1)(1) 8.Number Included in This Valuation 1,321 1,288 RECONCILIATION OF MEMBERSHIP DATA Active Members Service Retirees, Disability Retirees and Beneficiaries Terminated Vested Members From 1/1/2018From 1/1/2019 To 1/1/2019To 1/1/2020 City of Clearwater Employees’ Pension Plan E-2 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.1 0 0 0 0 0 0 0 0 0 0 0 1 TOT PAY 25,283 0 0 0 0 0 0 0 0 0 0 0 25,283 AVG PAY 25,283 0 0 0 0 0 0 0 0 0 0 0 25,283 20-24 NO.22 15 7 3 2 0 0 0 0 0 0 0 49 TOT PAY 674,852 540,452 274,878 90,727 74,574 0 0 0 0 0 0 0 1,655,483 AVG PAY 30,675 36,030 39,268 30,242 37,287 0 0 0 0 0 0 0 33,785 25-29 NO.44 39 30 27 18 21 0 0 0 0 0 0 179 TOT PAY 1,715,348 1,853,482 1,388,259 1,416,873 877,804 1,055,364 0 0 0 0 0 0 8,307,130 AVG PAY 38,985 47,525 46,275 52,477 48,767 50,255 0 0 0 0 0 0 46,409 30-34 NO.27 24 25 25 23 50 23 1 0 0 0 0 198 TOT PAY 959,378 1,203,137 1,207,349 1,258,099 1,145,154 2,733,425 1,651,930 72,901 0 0 0 0 10,231,373 AVG PAY 35,533 50,131 48,294 50,324 49,789 54,668 71,823 72,901 0 0 0 0 51,674 35-39 NO.20 24 14 11 9 38 55 20 0 0 0 0 191 TOT PAY 822,183 979,126 735,879 619,360 492,910 2,195,000 3,673,339 1,409,424 0 0 0 0 10,927,221 AVG PAY 41,109 40,797 52,563 56,305 54,768 57,763 66,788 70,471 0 0 0 0 57,211 40-44 NO.10 14 13 7 6 32 46 36 11 0 0 0 175 TOT PAY 362,055 559,817 632,172 293,842 283,878 1,759,518 3,614,132 2,694,112 947,320 0 0 0 11,146,846 AVG PAY 36,206 39,987 48,629 41,977 47,313 54,985 78,568 74,836 86,120 0 0 0 63,696 45-49 NO.19 24 9 3 7 33 43 54 37 8 0 0 237 TOT PAY 711,603 1,011,752 404,326 115,019 422,878 1,764,895 2,754,913 4,334,621 3,146,545 685,089 0 0 15,351,641 AVG PAY 37,453 42,156 44,925 38,340 60,411 53,482 64,068 80,271 85,042 85,636 0 0 64,775 50-54 NO.8 11 4 6 4 20 26 49 49 25 2 0 204 TOT PAY 272,100 486,686 232,628 347,461 220,355 1,068,462 1,641,154 3,530,941 3,926,241 2,133,906 172,935 0 14,032,869 AVG PAY 34,012 44,244 58,157 57,910 55,089 53,423 63,121 72,060 80,127 85,356 86,468 0 68,789 55-59 NO.9 15 3 4 5 23 24 35 29 16 6 1 170 TOT PAY 347,099 740,129 122,231 168,335 301,245 1,129,691 1,258,298 2,033,969 1,980,691 1,197,275 468,268 55,036 9,802,267 AVG PAY 38,567 49,342 40,744 42,084 60,249 49,117 52,429 58,113 68,300 74,830 78,045 55,036 57,660 60-64 NO.3 1 1 3 2 13 21 22 27 14 9 1 117 TOT PAY 109,864 32,184 50,629 142,481 89,099 608,727 1,152,120 1,156,159 1,480,104 960,503 570,078 59,357 6,411,305 AVG PAY 36,621 32,184 50,629 47,494 44,550 46,825 54,863 52,553 54,819 68,607 63,342 59,357 54,797 65+ NO.2 1 1 1 2 7 9 15 5 4 2 1 50 TOT PAY 53,562 27,270 28,513 32,032 100,491 389,494 458,422 838,025 318,471 228,127 174,444 53,844 2,702,695 AVG PAY 26,781 27,270 28,513 32,032 50,246 55,642 50,936 55,868 63,694 57,032 87,222 53,844 54,054 TOT NO.165 168 107 90 78 237 247 232 158 67 19 3 1,571 TOT AMT 6,053,327 7,434,035 5,076,864 4,484,229 4,008,388 12,704,576 16,204,308 16,070,152 11,799,372 5,204,900 1,385,725 168,237 90,594,113 AVG AMT 36,687 44,250 47,447 49,825 51,390 53,606 65,604 69,268 74,680 77,685 72,933 56,079 57,667 Years of Service to Valuation Date City of Clearwater Employees’ Pension Plan E-3 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.1 0 0 0 0 0 0 0 0 0 0 0 1 TOT PAY 25,283 0 0 0 0 0 0 0 0 0 0 0 25,283 AVG PAY 25,283 0 0 0 0 0 0 0 0 0 0 0 25,283 20-24 NO.21 13 6 3 2 0 0 0 0 0 0 0 45 TOT PAY 620,455 405,221 203,770 90,727 74,574 0 0 0 0 0 0 0 1,394,747 AVG PAY 29,545 31,171 33,962 30,242 37,287 0 0 0 0 0 0 0 30,994 25-29 NO.28 25 20 14 11 14 0 0 0 0 0 0 112 TOT PAY 849,973 925,135 715,509 529,356 397,990 552,321 0 0 0 0 0 0 3,970,284 AVG PAY 30,356 37,005 35,775 37,811 36,181 39,452 0 0 0 0 0 0 35,449 30-34 NO.23 13 18 18 15 32 11 1 0 0 0 0 131 TOT PAY 740,035 476,700 733,565 788,048 590,235 1,414,294 541,353 72,901 0 0 0 0 5,357,131 AVG PAY 32,175 36,669 40,754 43,780 39,349 44,197 49,214 72,901 0 0 0 0 40,894 35-39 NO.16 21 10 6 7 22 31 13 0 0 0 0 126 TOT PAY 592,509 788,089 458,788 273,191 346,753 1,013,521 1,461,242 670,494 0 0 0 0 5,604,587 AVG PAY 37,032 37,528 45,879 45,532 49,536 46,069 47,137 51,576 0 0 0 0 44,481 40-44 NO.10 13 13 7 5 24 14 17 5 0 0 0 108 TOT PAY 362,055 481,056 632,172 293,842 211,332 1,164,665 847,784 911,308 247,255 0 0 0 5,151,469 AVG PAY 36,206 37,004 48,629 41,977 42,266 48,528 60,556 53,606 49,451 0 0 0 47,699 45-49 NO.18 21 7 3 5 29 30 24 17 5 0 0 159 TOT PAY 642,173 808,791 257,100 115,019 264,837 1,461,565 1,501,813 1,336,081 966,137 289,314 0 0 7,642,830 AVG PAY 35,676 38,514 36,729 38,340 52,967 50,399 50,060 55,670 56,832 57,863 0 0 48,068 50-54 NO.8 10 3 5 3 18 20 27 28 14 2 0 138 TOT PAY 272,100 406,593 140,824 267,529 131,956 915,985 1,100,302 1,391,299 1,693,621 851,582 172,935 0 7,344,726 AVG PAY 34,013 40,659 46,941 53,506 43,985 50,888 55,015 51,530 60,486 60,827 86,468 0 53,223 55-59 NO.9 14 3 4 4 22 22 30 27 11 5 1 152 TOT PAY 347,099 660,971 122,231 168,335 195,032 992,973 1,059,730 1,580,234 1,740,195 684,692 334,429 55,036 7,940,957 AVG PAY 38,567 47,212 40,744 42,084 48,758 45,135 48,170 52,674 64,452 62,245 66,886 55,036 52,243 60-64 NO.3 1 1 3 2 13 19 22 27 14 9 1 115 TOT PAY 109,864 32,184 50,629 142,481 89,099 608,727 896,406 1,156,159 1,480,104 960,503 570,078 59,357 6,155,591 AVG PAY 36,621 32,184 50,629 47,494 44,550 46,825 47,179 52,553 54,819 68,607 63,342 59,357 53,527 65+ NO.2 1 1 1 2 7 8 15 5 4 2 1 49 TOT PAY 53,562 27,270 28,513 32,032 100,491 389,494 361,220 838,025 318,471 228,127 174,444 53,844 2,605,493 AVG PAY 26,781 27,270 28,513 32,032 50,246 55,642 45,153 55,868 63,694 57,032 87,222 53,844 53,173 TOT NO.139 132 82 64 56 181 155 149 109 48 18 3 1,136 TOT AMT 4,615,108 5,012,010 3,343,101 2,700,560 2,402,299 8,513,545 7,769,850 7,956,501 6,445,783 3,014,218 1,251,886 168,237 53,193,098 AVG AMT 33,202 37,970 40,770 42,196 42,898 47,036 50,128 53,399 59,136 62,796 69,549 56,079 46,825 Years of Service to Valuation Date City of Clearwater Employees’ Pension Plan E-4 ACTIVE PARTICIPANT DISTRIBUTION HAZARDOUS POLICE 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.1 1 0 0 0 0 0 0 0 0 0 0 2 TOT PAY 54,397 64,236 0 0 0 0 0 0 0 0 0 0 118,633 AVG PAY 54,397 64,236 0 0 0 0 0 0 0 0 0 0 59,317 25-29 NO.8 7 7 13 4 6 0 0 0 0 0 0 45 TOT PAY 442,311 468,799 472,479 887,517 276,482 429,446 0 0 0 0 0 0 2,977,034 AVG PAY 55,289 66,971 67,497 68,271 69,121 71,574 0 0 0 0 0 0 66,156 30-34 NO.2 2 4 2 2 15 1 0 0 0 0 0 28 TOT PAY 113,577 134,943 272,731 134,480 134,093 1,110,803 94,381 0 0 0 0 0 1,995,008 AVG PAY 56,789 67,472 68,183 67,240 67,047 74,054 94,381 0 0 0 0 0 71,250 35-39 NO.4 2 3 1 0 11 12 5 0 0 0 0 38 TOT PAY 229,674 128,565 206,391 64,010 0 827,593 1,117,593 558,812 0 0 0 0 3,132,638 AVG PAY 57,419 64,283 68,797 64,010 0 75,236 93,133 111,762 0 0 0 0 82,438 40-44 NO.0 1 0 0 0 6 16 9 5 0 0 0 37 TOT PAY 0 78,761 0 0 0 454,001 1,392,327 843,886 589,436 0 0 0 3,358,411 AVG PAY 0 78,761 0 0 0 75,667 87,020 93,765 117,887 0 0 0 90,768 45-49 NO.0 3 2 0 1 4 9 21 12 3 0 0 55 TOT PAY 0 202,961 147,226 0 63,662 303,330 844,036 2,120,510 1,366,433 395,775 0 0 5,443,933 AVG PAY 0 67,654 73,613 0 63,662 75,833 93,782 100,977 113,869 131,925 0 0 98,981 50-54 NO.0 0 0 0 1 2 2 6 10 7 0 0 28 TOT PAY 0 0 0 0 88,399 152,477 167,821 575,816 1,107,617 867,766 0 0 2,959,896 AVG PAY 0 0 0 0 88,399 76,239 83,911 95,969 110,762 123,967 0 0 105,711 55-59 NO.0 0 0 0 0 0 1 3 0 2 1 0 7 TOT PAY 0 0 0 0 0 0 82,658 290,639 0 193,445 133,839 0 700,581 AVG PAY 0 0 0 0 0 0 82,658 96,880 0 96,723 133,839 0 100,083 60-64 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 65+ 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 TOT NO.15 16 16 16 8 44 41 44 27 12 1 0 240 TOT AMT 839,959 1,078,265 1,098,827 1,086,007 562,636 3,277,650 3,698,816 4,389,663 3,063,486 1,456,986 133,839 0 20,686,134 AVG AMT 55,997 67,392 68,677 67,875 70,330 74,492 90,215 99,765 113,462 121,416 133,839 0 86,192 Years of Service to Valuation Date City of Clearwater Employees’ Pension Plan E-5 ACTIVE PARTICIPANT DISTRIBUTION HAZARDOUS FIRE 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.0 1 1 0 0 0 0 0 0 0 0 0 2 TOT PAY 0 70,995 71,108 0 0 0 0 0 0 0 0 0 142,103 AVG PAY 0 70,995 71,108 0 0 0 0 0 0 0 0 0 71,052 25-29 NO.8 7 3 0 3 1 0 0 0 0 0 0 22 TOT PAY 423,064 459,548 200,271 0 203,332 73,597 0 0 0 0 0 0 1,359,812 AVG PAY 52,883 65,650 66,757 0 67,777 73,597 0 0 0 0 0 0 61,810 30-34 NO.2 9 3 5 6 3 11 0 0 0 0 0 39 TOT PAY 105,766 591,494 201,053 335,571 420,826 208,328 1,016,196 0 0 0 0 0 2,879,234 AVG PAY 52,883 65,722 67,018 67,114 70,138 69,443 92,381 0 0 0 0 0 73,827 35-39 NO.0 1 1 4 2 5 12 2 0 0 0 0 27 TOT PAY 0 62,472 70,700 282,159 146,157 353,886 1,094,504 180,118 0 0 0 0 2,189,996 AVG PAY 0 62,472 70,700 70,540 73,079 70,777 91,209 90,059 0 0 0 0 81,111 40-44 NO.0 0 0 0 1 2 16 10 1 0 0 0 30 TOT PAY 0 0 0 0 72,546 140,852 1,374,021 938,918 110,629 0 0 0 2,636,966 AVG PAY 0 0 0 0 72,546 70,426 85,876 93,892 110,629 0 0 0 87,899 45-49 NO.1 0 0 0 1 0 4 9 8 0 0 0 23 TOT PAY 69,430 0 0 0 94,379 0 409,064 878,030 813,975 0 0 0 2,264,878 AVG PAY 69,430 0 0 0 94,379 0 102,266 97,559 101,747 0 0 0 98,473 50-54 NO.0 1 1 1 0 0 4 16 11 4 0 0 38 TOT PAY 0 80,093 91,804 79,932 0 0 373,031 1,563,826 1,125,003 414,558 0 0 3,728,247 AVG PAY 0 80,093 91,804 79,932 0 0 93,258 97,739 102,273 103,640 0 0 98,112 55-59 NO.0 1 0 0 1 1 1 2 2 3 0 0 11 TOT PAY 0 79,158 0 0 106,213 136,718 115,910 163,096 240,496 319,138 0 0 1,160,729 AVG PAY 0 79,158 0 0 106,213 136,718 115,910 81,548 120,248 106,379 0 0 105,521 60-64 NO.0 0 0 0 0 0 2 0 0 0 0 0 2 TOT PAY 0 0 0 0 0 0 255,714 0 0 0 0 0 255,714 AVG PAY 0 0 0 0 0 0 127,857 0 0 0 0 0 127,857 65+ NO.0 0 0 0 0 0 1 0 0 0 0 0 1 TOT PAY 0 0 0 0 0 0 97,202 0 0 0 0 0 97,202 AVG PAY 0 0 0 0 0 0 97,202 0 0 0 0 0 97,202 TOT NO.11 20 9 10 14 12 51 39 22 7 0 0 195 TOT AMT 598,260 1,343,760 634,936 697,662 1,043,453 913,381 4,735,642 3,723,988 2,290,103 733,696 0 0 16,714,881 AVG AMT 54,387 67,188 70,548 69,766 74,532 76,115 92,856 95,487 104,096 104,814 0 0 85,717 Years of Service to Valuation Date City of Clearwater Employees’ Pension Plan E-6 INACTIVE PARTICIPANT DISTRIBUTION Disabled Retired Total Total Total Total Age Group Number Benefits Number Benefits Number Benefits Number Benefits Under 20 - - - - - - 2 25,426 20-24 - - - - - - 2 51,216 25-29 - - - - - - - - 30-34 2 31,767 - - - - 2 30,754 35-39 12 250,505 4 168,441 - - 3 96,846 40-44 11 219,653 2 71,502 4 175,817 1 27,367 45-49 20 422,576 10 488,265 19 772,880 3 75,723 50-54 19 465,859 8 285,295 49 2,416,153 5 78,487 55-59 7 101,870 15 628,870 137 6,147,919 10 457,505 60-64 9 161,327 23 663,841 189 8,385,531 22 460,635 65-69 - - 27 791,169 269 10,987,773 15 361,767 70-74 - - 24 672,440 219 8,338,728 22 525,870 75-79 - - 8 162,702 79 2,968,031 25 593,269 80-84 - - 9 268,181 39 1,283,293 18 386,818 85-89 - - 4 100,767 26 711,355 12 132,704 90-94 - - 1 24,186 3 70,501 9 86,125 95-99 - - - - - - 1 3,115 100 & Over - - - - - - 1 2,424 Total 80 1,653,557 135 4,325,659 1,033 42,257,981 153 3,396,051 Average Age 49 65 67 70 Terminated Vested Deceased with Beneficiary SECTION F SUMMARY OF PLAN PROVISIONS City of Clearwater Employees’ Pension Plan F-1 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. 9380-20 passed and adopted on March 5, 2020. 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. City of Clearwater Employees’ Pension Plan F-2 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. 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 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 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. City of Clearwater Employees’ Pension Plan F-3 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 (Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous Duty Police Officers and Firefighters (and Grandfathered Non- Hazardous Duty) 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 and Hazardous Duty Police Officers 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 Police Officers, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers employed by the City on or after January 1, 2020. For Hazardous Duty 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. City of Clearwater Employees’ Pension Plan F-4 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: For Hazardous Duty Police Officers 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 Police Officers, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers employed by the City on or after January 1, 2020. For Hazardous Duty 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. 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 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 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. City of Clearwater Employees’ Pension Plan F-5 For Hazardous Duty 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 (Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous Duty Police Officers and Firefighters (and Grandfathered Non- Hazardous Duty) 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 and Hazardous Duty Police Officers 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 Police Officers, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers employed by the City on or after January 1, 2020. For Hazardous Duty 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. City of Clearwater Employees’ Pension Plan F-6 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 (Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous Duty Police Officers and Firefighters (and Grandfathered Non- Hazardous Duty) 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 and Hazardous Duty Police Officers 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 Police Officers, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers employed by the City on or after January 1, 2020. For Hazardous Duty 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. City of Clearwater Employees’ Pension Plan F-7 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 and Hazardous Duty Police Officers 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 Police Officers, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers employed by the City on or after January 1, 2020. For Hazardous Duty 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. City of Clearwater Employees’ Pension Plan F-8 COLA: For Non-Hazardous Duty and Hazardous Duty Police Officers 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 Police Officers, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers employed by the City on or after January 1, 2020. For Hazardous Duty 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. 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% City of Clearwater Employees’ Pension Plan F-9 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 (Non-Grandfathered) A monthly annuity is paid for the life of the participant. For Hazardous Duty Police Officers and Firefighters (and Grandfathered Non- Hazardous Duty) 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 and Hazardous Duty Police Officers 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 Police Officers, the COLA with a 5-year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers employed by the City on or after January 1, 2020. For Hazardous Duty 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. City of Clearwater Employees’ Pension Plan F-10 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 and Hazardous Duty Police Officers 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 Police Officers, the COLA with a 5- year delay (applicable to post-January 1, 2013 benefit accruals) only applies to Police Officers employed by the City on or after January 1, 2020. For Hazardous Duty 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. City of Clearwater Employees’ Pension Plan F-11 AA. Changes from Previous Valuation There have been the following revisions in benefits since the previous valuation: • Ordinance No. 9380-20 was passed and adopted on March 5, 2020. This Ordinance provides a 1.5% Cost of Living Adjustment (COLA) annually on all benefits for Police Officers including any benefits accrued after January 1, 2013 (instead of only for benefits accrued prior to January 1, 2013). For any non-grandfathered members (not eligible for normal retirement on January 1, 2013), there will be a five-year delay (after the retirement date) until this COLA is applied to benefits accrued after January 1, 2013. This change applies to all Police Officers who are actively employed on or after January 1, 2020. • In compliance with newly adopted Florida Statutes Chapter 112.1816: o If a firefighter is initially diagnosed with cancer while employed as a firefighter, and as a result of the diagnosis of cancer or circumstances arising from the treatment of such cancer, he or she is determined to be wholly prevented from rendering useful and efficient service as a firefighter, and likely to remain so disabled continuously and permanently, the disability or death shall be considered in the line-of-duty. • In compliance with newly adopted Florida Statutes Chapter 112.181: o Disability or death resulting from a condition or impairment of health that is caused by hepatitis, meningococcal meningitis, tuberculosis, hypertension or heart disease resulting in a member being determined to be wholly prevented from rendering useful and efficient service as a firefighter, and likely to remain so disabled continuously and permanently shall be presumed to have been accidental and suffered in the line of duty unless the contrary is shown by competent evidence. August 17, 2020 Peter Strong, FSA, EA -GRS Clearwater Employees’ Pension Plan Summary of 2020 Actuarial Valuation Required Contribution •FY 2021 City Contribution Requirement: $11.52 million (vs. $9.71 million for FY 2020) •Key Drivers of the Contribution Increase: Benefit changes for Police Officers (1.5% COLA after 5-year delay for post-1/1/2013 benefits): +$945K Investment return assumption lowered from 6.75% to 6.65% (as scheduled): +$411K Increase in covered pensionable payroll (from $84.6 M last year to $90.6 M this year): ~$450K Assets vs. Liabilities as of 1/1/2020 •Actuarial Accrued Liability (AAL): $1,017,746,535•Market Value of Assets: $1,120,895,937•Actuarial Value of Assets (AVA): $1,044,240,614•Credit Balance (Advance Contributions): $28,963,282•AVA Excluding the Credit Balance: $1,015,277,332•Net Unfunded Actuarial Liability: $2,469,203•Funded Ratio at 1/1/2020: 99.76% (101.50% prior to reflecting plan/assumption changes; 101.33% last year)•Market Value-Based Funded Ratio at 1/1/2020 (Excl. Credit Balance): 107.29% (vs. 97.03% last year) Breakdown by Group •The City requested valuation results be broken down this year between Non-hazardous, Police and Fire •Police is the highest due to the recent benefit changes Required Employer Contribution by Group Non-Hazardous $3,534,489 As % of Covered Payroll 6.64 % Hazardous Police 4,872,378 As % of Covered Payroll 23.55 % Hazardous Fire 3,115,146 As % of Covered Payroll 18.64 % Total 11,522,013 As % of Covered Payroll 12.72 % Valuation Based on 1/1/2020 For FYE 9/30/2021 Breakdown by Group •Non-Hazardous City Contribution Rate is much lower for several reasons: Later Normal Retirement Date for Non-Hazardous Employees (in some cases, 10-20 years later) Lower Average Age at Hire for Police/Fire (with “20 and Out” Normal Retirement Age) Lower Benefit Multiplier for almost half of Non- Hazardous Employees (2.0% vs. 2.75%) Higher probability of Non-Hazardous Employees separating from employment prior to becoming vested or reaching retirement age (Police/Fire more than twice as likely to remain employed until NR) Actuarial Experience During 2019 •Actuarial Experience Gain during 2019 = $1,188,833 •Primarily due to positive investment results 20.20% return on market value 7.39% return on (smoothed) actuarial value (vs. 6.75% expected return) •Offsetting demographic losses: Average salary increases: 8.84% (vs. 4.35% expected) Mortality lower than expected: $567K reduction in annual pension benefits (vs. $886K expected reduction) Actuarial Value of Assets Development of Actuarial Value of Assets Valuation Date - December 31 2018 2019 2020 2021 2022 2023 A.Actuarial Value of Assets Beginning of Year 980,134,451$ 1,005,100,366$ B.Market Value End of Year 963,571,264 1,120,895,937 C.Market Value Beginning of Year 1,019,110,192 963,571,264 D.Non-Investment/Administrative Net Cash Flow (30,600,644) (33,859,718) E.Investment Income E1. Actual Market Total: B-C-D (24,938,284) 191,184,391 E2. Assumed Rate of Return 7.00%6.75%6.65%6.55%6.50%6.50% E3. Assumed Amount of Return 70,071,393 63,739,343 E4. Amount Subject to Phase-In: E1–E3 (95,009,677) 127,445,048 F.Phase-In Recognition of Investment Income F1. Current Year: 0.2 x E4 (19,001,935) 25,489,010 F2. First Prior Year 16,085,119 (19,001,935) 25,489,010 F3. Second Prior Year (465,144) 16,085,119 (19,001,935) 25,489,010 F4. Third Prior Year (12,846,426) (465,144) 16,085,119 (19,001,935) 25,489,010 F5. Fourth Prior Year 1,723,552 (12,846,427) (465,145) 16,085,118 (19,001,937) 25,489,008 F6. Total Phase-Ins (14,504,834) 9,260,623 22,107,049 22,572,193 6,487,073 25,489,008 G.Actuarial Value of Assets End of Year G1. Preliminary Actuarial Value of Assets 1,005,100,366$ 1,044,240,614$ G2. Upper Corridor Limit: 120%*B 1,156,285,517$ 1,345,075,124$ G3. Lower Corridor Limit: 80%*B 770,857,011$ 896,716,750$ G4. Funding Value End of Year 1,005,100,366$ 1,044,240,614$ G5. Credit Balance 26,608,126$ 28,963,282$ G6. Final Actuarial Value of Assets 978,492,240$ 1,015,277,332$ H.Recognized Investment Earnings 55,566,559$ 72,999,966$ I.Difference between Market & Actuarial Value (41,529,102)$ 76,655,323$ J.Actuarial Rate of Return 5.76%7.39% K.Market Value Rate of Return -2.48%20.20% L.Ratio of Actuarial Value of Assets to Market Value 104.31%93.16% Historical Returns Plan Year Ending December 31 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 2015 (0.28)7.64 2016 6.70 8.22 2017 16.01 8.89 2018 (2.48)5.76 2019 20.20 7.39 Average returns: Last 5 years:7.67 % 7.57 % Last 10 years:9.32 % 7.86 % Last 20 years:6.12 % 6.62 % Actuarial*Market* Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#20-7848 Agenda Date: 8/17/2020 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Determine Trustees’ expected rate of return for pension plan investments for the current year, each of the next several years, and for the long term thereafter, in accordance with Florida Statutes 112.661(9). SUMMARY: Florida Statutes 112.661(9) requires filing of an annual determination of expected rates of return for the pension plan with the Florida Department of Management Services, with the plan’s sponsor, and with the consulting actuary. Staff is recommending the currently adopted plan investment rate of return assumptions including 6.65%, net of investment-related fees, as the expected annual rate of return for the current year; 6.55% for the next year; and 6.50% for all years thereafter. Page 1 City of Clearwater Printed on 8/14/2020 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#20-8051 Agenda Date: 8/17/2020 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Appoint Sheldon Goldberg to the Pension Investment Committee with a term to expire August 31, 2022. SUMMARY: APPOINTMENT WORKSHEET BOARD: Pension Investment Committee TERM: 2 years APPOINTED BY: City Council (Pension Trustees) RESIDENCY REQUIREMENT: City of Clearwater CONTACT: Jay Ravins, Finance Dir. APPTS. NEEDED: 1 THE FOLLOWING PENSION INVESTMENT COMMITTEE MEMBER HAD A TERM THAT EXPIRED AND NOW REQUIRES REPLACEMENT BY A NEW APPOINTEE: 1. Nino Accetta - 2717 Via Cipriani, 33764 - Banking Original Appointment: 6/12/17 Interest in reappointment: No (term expired 6/30/19) THE NAME BELOW IS BEING SUBMITTED FOR CONSIDERATION TO FILL THE ABOVE VACANCY: 1. Sheldon Goldberg - 2060 Marilyn St., #215, 33765 - Real Estate Broker (application on file for PAC) Page 1 City of Clearwater Printed on 8/14/2020