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06/14/2021Monday, June 14, 2021 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 June 14, 2021Pension Trustees Meeting Agenda 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 (June 13) will become part of the official record. The City Clerk will read received comments into the record. 3)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. 1. Call To Order 2. Approval of Minutes 2.1 Approve the April 12, 2021 Pension Trustees Meeting Minutes as submitted in written summation by the City Clerk. 3. Citizens to be Heard Regarding Items Not on the Agenda 4. New Business Items 4.1 Accept the January 1, 2021 Annual Actuarial Valuation Report for the Employees’ Pension Plan. 4.2 Approve the new hires for acceptance into the Pension Plan as listed. 4.3 Approve the following request of employees Larry Bruce, Parks and Recreation Department, James Frederick Jr, Police Department and Mary Beth Setter, Finance Department, to vest their pensions as provided by Section 2.419 of the Employees’ Pension Plan. Page 2 City of Clearwater Printed on 6/8/2021 June 14, 2021Pension Trustees Meeting Agenda 4.4 Approve the following request of employees James Charon, Public Utilities Department, Manuel Cordero, Parks and Recreation Department, Laura Damico, Utility Customer Service, Thomas Dawe, Police Department, Benjamin Hailey, Police Department, Richard Kelly, Police Department, Anthony Nellis, Solid Waste and Recycling, Willard Rodgers, Jr, Police Department, Judith Smith, Police Department, Laura Spelman, Police Department and William Valveri, Police Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. 5. Adjourn Page 3 City of Clearwater Printed on 6/8/2021 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#20-8601 Agenda Date: 6/14/2021 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Pension Trustees Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the April 12, 2021 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 6/8/2021 Pension Trustees Meeting Minutes April 12, 2021 Page 1 City of Clearwater City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 Meeting Minutes Monday, April 12, 2021 9:00 AM Main Library - Council Chambers Pension Trustees Draft Pension Trustees Meeting Minutes April 12, 2021 Page 2 City of Clearwater Roll Call Present 5 - Chair Frank Hibbard, Trustee David Allbritton, Trustee Hoyt Hamilton, Trustee Katleen 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, Nicole Sprague – Official Records and Legislative Services Coordinator 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 – Mayor Hibbard The meeting was called to order at 9:01 a.m. 2. Approval of Minutes 2.1 Approve the February 16, 2021 Pension Trustees Meeting Minutes as submitted in written summation by the City Clerk. Trustee Allbritton moved to approve the February 16, 2021 Pension Trustees Meeting Minutes 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 Robert Mitchell, Recreation Leader, Parks and Recreation 01/19/2021 David McMullen, Parking Enforcement Specialist, Engineering 02/16/2021 Hunter Walke, Pool Lifeguard, Parks and Recreation 02/01/2021 Alexa Walling, Customer Service Rep, Customer Service 01/25/2021 Aaron Braley, Sr. Accountant, Marine and Aviation 01/04/2021 Draft Pension Trustees Meeting Minutes April 12, 2021 Page 3 City of Clearwater Michael MacDonald, Account Collector, Customer Service 01/04/2021 David Kadau, Fire Division Chief, Fire 01/04/2021 Fredy Torres-Carrillo, Parks Service Technician, Parks and Rec. 01/04/2021 Donna Cowley, Customer Service Rep, Customer Service 01/19/2021 Jessica Reyes, Customer Service Rep, Customer Service 01/19/2021 Leonard Sala, Stormwater Technician, Engineering /Stormwater 01/19/2021 Amanda Santiago, Personnel/Payroll Tech, Parks and Recreation 01/19/2021 May Bergeson, Police Telecommunicator, Police 02/01/2021 Avery Fennell, Police Telecommunicator, Police 02/01/2021 Ransome Walker, Solid Waste Worker, Solid Waste 02/01/2021 Caleb Bishoff, Stormwater Technician, Engineering /Stormwater 02/16/2021 Vincent Carlo, Parking Enforcement Specialist, Engineering 02/16/2021 Trustee Beckman moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. 4.2 Approve the following request of employees Patricia Kuligowski, City Council Department, Lesa Phillips, Police Department and Brian Swartz, Fire Department to vest their pensions as provided by Section 2.419 of the Employees’ Pension Plan. Patricia Kuligowski, Executive Assistant, City Council Department, was employed by the City on November 27, 2006, and began participating in the Pension Plan on that date. Ms. Kuligowski terminated from City employment on January 26, 2021. Lesa Phillips, Police Officer, Police Department, was employed by the City on January 12, 2004, and began participating in the Pension Plan on that date. Ms. Phillips terminated from City employment on January 22, 2021. Brian Swartz, Firefighter/Driver-Operator, Fire Department, was employed by the City on June 3, 2002, and began participating in the Pension Plan on that date. Mr. Swartz terminated from City employment on May 28, 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 Draft Pension Trustees Meeting Minutes April 12, 2021 Page 4 City of Clearwater twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non-hazardous duty employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Ms. Kuligowski will meet the non-hazardous duty criteria and begin collecting a pension in February 2026. 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. Ms. Phillips will meet the hazardous duty criteria and begin collecting pension in February 2024 and Mr. Swartz will meet the hazardous duty criteria and begin collecting pension in July 2022. Trustee Bunker moved to approve the following request of employees Patricia Kuligowski, City Council Department, Lesa Phillips, Police Department and Brian Swartz, Fire Department to vest their pensions as provided by Section 2.419 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. 4.3 Approve the following request of employees Amelia Adams, Financial and Budget Operations Department, Richard Garbe, Gas Department, Ricky Hess, Engineering Department, Randy Higgins, Engineering Department, William Howard, Public Utilities Department, Andre Lambert, Engineering Department, Jean Louis, IT Department, Donald Magness, Fire Department, Trevor Murray, Fire Department, Kevin O’Neill, Fire Department and David Powers, Solid Waste and General Services Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. Amelia Adams, Senior Accounting Technician, Financial and Budget Operations Department, was employed by the City on January 31, 2011 and her pension service credit is effective on that date. Her pension will be effective March 1, 2021. Based on an average salary of approximately $32,738.16 over the past five years, the formula for computing regular pensions and Ms. Adams’ selection of the Life Annuity, this pension benefit will be approximately $9,068.04 annually. Draft Pension Trustees Meeting Minutes April 12, 2021 Page 5 City of Clearwater Richard Garbe, Gas System Specialist, Gas Department, was employed by the City on January 13, 1992 and his pension service credit is effective on that date. His pension will be effective February 1, 2021. Based on an average salary of approximately $77,071.77 over the past five years, the formula for computing regular pensions and Mr. Garbe’s selection of the 75% Joint and Survivor, this pension benefit will be approximately $61,857.24 annually. Ricky Hess, Environmental Code Enforcement Inspector, Engineering Department, was employed by the City on July 22, 1996 and his pension service credit is effective on that date. His pension will be effective February 1, 2021. Based on an average salary of approximately $55,800.76 over the past five years, the formula for computing regular pensions and Mr. Hess’ selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $33,795.12 annually. Randy Higgins, Stormwater Heavy Equip Operator, Engineering Department, was employed by the City on May 24, 1999 and his pension service credit is effective on that date. His pension will be effective May 1, 2021. Based on an average salary of approximately $41,469.16 over the past five years, the formula for computing regular pensions and Mr. Higgins’ selection of the Life Annuity, this pension benefit will be approximately $25,016.04 annually. William Howard, Wastewater Treatment Plant Operator A, Public Utilities Department, was employed by the City on February 28, 2011 and his pension service credit is effective on that date. His pension will be effective March 1, 2021. Based on an average salary of approximately $46,631.97 over the past five years, the formula for computing regular pensions and Mr. Howard’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $10,867.32 annually. Andre Lambert, Traffic Sign and Marking Tech, Engineering Department, was employed by the City on September 5, 1995 and his pension service credit is effective on that date. His pension will be effective March 1, 2021. Based on an average salary of approximately $54,639.53 over the past five years, the formula for computing regular pensions and Mr. Lambert’s selection of the 100% Joint and Survivor Annuity with a 30% partial lump sum, this pension benefit will be approximately $23,399.40 annually. Jean Louis, Sr Systems Programmer, IT Department, was employed by the City on February 14, 2011, and his pension service credit is effective on that date. His pension will be effective March 1, 2021. Based on an average salary of approximately $67,454.02 over the past five years, the formula for computing regular pensions and Mr. Louis’ selection of the 10 Year Certain and Life Annuity, this pension benefit will be approximately $17,275.44 annually. Donald Magness, Fire District Commander, Fire Department, was employed by the City on January 23, 2006 and his pension service credit is effective on that date. His pension will be effective March 1, 2021. Based on an average salary of approximately $121,219.61 over the past five years, the formula for computing regular pensions and Mr. Magness’ selection of the 100% Joint and Draft Pension Trustees Meeting Minutes April 12, 2021 Page 6 City of Clearwater Survivor Annuity, this pension benefit will be approximately $49,003.20 annually. Trevor Murray, Fire Medic, Fire Department, was employed by the City on July 24, 1995 and his pension service credit is effective on that day. His pension will be effective February 1, 2021. Based on an average salary of approximately $86,643.23 over the past five years, the formula for computing regular pensions and Mr. Murray’s selection of the 100% Joint and Survivor Annuity with a 20% partial lump sum, this pension benefit will be approximately $47,341.68 annually. Kevin O’Neill, Fire District Commander, Fire Department, was employed by the City on January 23, 2006, and his pension service credit is effective on that date. His pension will be effective April 1, 2021. Based on an average salary of approximately $115,744.26 over the past five years, the formula for computing regular pensions and Mr. O’Neill’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $46,828.68 annually. David Powers, Division Controller, Solid Waste and Recycling Department, was employed by the City on June 4, 1998 and his pension service credit is effective on October 11, 1999. His pension will be effective April 1, 2021. Based on an average salary of approximately $74,177.50 over the past five years, the formula for computing regular pensions and Mr. Powers’ selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $35,479.92 annually. Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non-hazardous duty employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Ms. Adams, Mr. Garbe, Mr. Hess, Mr. Higgins, Mr. Howard, Mr. Lambert, Mr. Louis, and Mr. Powers 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. Magness, Mr. Murray and Mr. O’Neill have met the hazardous duty criteria. Draft Pension Trustees Meeting Minutes April 12, 2021 Page 7 City of Clearwater Trustee Hamilton moved to approve the following request of employees Amelia Adams, Financial and Budget Operations Department, Richard Garbe, Gas Department, Ricky Hess, Engineering Department, Randy Higgins, Engineering Department, William Howard, Public Utilities Department, Andre Lambert, Engineering Department, Jean Louis, IT Department, Donald Magness, Fire Department, Trevor Murray, Fire Department, Kevin O’Neill, Fire Department and David Powers, Solid Waste and General Services Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. 4.4 Annual Determination of Expected Investment Rate of Return Florida Statutes 112.661(9) requires an annual determination of expected rates of return by filed with the Florida Department of Management Services, with the plan’s sponsor, and with the consulting actuary. Staff is recommending the current plan investment rate of return assumptions of 6.55%, net of investment-related fees, as the expected annual rate of return for the current year; 6.50% for the next year; and 6.50% for all years thereafter. Finance Director Jay Ravins provided a PowerPoint presentation. Trustee Allbritton moved to approve the Annual Determination of Expected Investment Rate of Return. The motion was duly seconded and carried unanimously. 4.5 Annual review of the Employees’ Pension Plan investment performance for the calendar and plan year ended December 31, 2020. For calendar 2020, the Plan realized an investment return of 15.68%, versus a customized benchmark of 12.61%, placing the plan in the 11th percentile of public pension plans per the Wilshire Public Plan Sponsor Universe. For the last three calendar years, the plan had an average annualized return of 10.62%, versus a benchmark of 8.16%, placing the plan in the 10th percentile of public plans. The investment committee, with the assistance of the Plan’s investment Draft Pension Trustees Meeting Minutes April 12, 2021 Page 8 City of Clearwater consultant, CapTrust, meets on at least a quarterly basis to monitor asset allocation and money manager performance, and will continue to recommend money manager terminations, replacements, and/or additions when appropriate. Finance Director Jay Ravins provided a PowerPoint presentation. In response to questions, Mr. Ravins said the large cap growth manager was added this year; their performance was not included because they were recently hired. The Plan has had a long-term relationship with Voya, who has typically out-performed the index. He said Voya has recently been underperforming and if the underperformance continues, a decision will be needed if the Plan should continue with another active manager. CapTrust, the investment consultant, screens their universe of managers and provides a short list of managers that meets the Plan's parameters. Mr. Ravins said staff looks at a rolling three-year period when assessing a manager's performance. The Plan's asset allocation is adjusted after an asset allocation study is completed. Trustee Hamilton moved to approve the annual review of the Employees’ Pension Plan investment performance for the calendar and plan year ended December 31, 2020. The motion was duly seconded and carried unanimously. 5.Director's Report - None 6.Adjourn The meeting adjourned at 9:15 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#21-9316 Agenda Date: 6/14/2021 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Accept the January 1, 2021 Annual Actuarial Valuation Report for the Employees’ Pension Plan. SUMMARY: Per the actuarial valuation report dated January 1, 2021, a minimum city employer contribution of $11.40 million, or 12.30% of covered payroll, is required for fiscal year 2022. This is a decrease of approximately $121 thousand over the fiscal 2021 required contribution of $11.52 million, which represented 12.72% of covered payroll. The breakout of the required contribution by group is as follows: Police $ 4,681,293 21.84% Fire $ 3,230,263 18.68% Non-public safety $ 3,489,438 6.46% Total $11,400,994 12.30% The calendar year 2020 investment return was 15.12%, versus an assumed rate of 6.65% for 2020. The five-year smoothed actuarial investment rate of return was 11.10% versus the 6.65% assumption. Calendar 2016 through 2020 investment returns were 6.70%, 16.01%, (2.48%), 20.20%, and 15.12%, respectively. As previously approved by the Trustees, the assumed rate of return will reduce to 6.55% for 2021 and to 6.50% effective January 1, 2022. The plan experienced a net actuarial experience gain of $45.7 million for the year. The gain was primarily due to investment returns, slightly offset by net liability-related experience losses. The net liability-related experience losses included salary and mortality experience losses offset by retirement and disability experience gains. The plan’s funded ratio at January 1, 2021 was 108.70% (including the credit balance) versus 102.60% for the prior year. The market value of assets exceeds the actuarial value of assets by $129.6 million as of January 1, 2021. The plan’s credit balance, which reflects actual contributions in-excess of actuarially required contributions in prior years, increased from $28.96 million to $31.55 million during calendar 2020, primarily due to interest earned on the credit balance. This credit balance is available to subsidize volatile employer contribution requirements during future investment market downturns. Page 1 City of Clearwater Printed on 6/8/2021 City of Clearwater Employees’ Pension Plan Actuarial Valuation Report as of January 1, 2021 Annual Employer Contribution for the Fiscal Year Ending September 30, 2022 April 26, 2021 Board of Trustees City of Clearwater Employees’ Pension Plan Clearwater, Florida Dear Board Members: The results of the January 1, 2021 Annual Actuarial Valuation of the City of Clearwater Employees’ Pension Plan are presented in this report. This report was prepared at the request of the Board and is intended for use by the Retirement System and those designated or approved by the Board. This report may be provided to parties other than the System only in its entirety and only with the permission of the Board. 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, 2022. 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, 2020. 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. 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. Board of Trustees April 26, 2021 Page ii This report was prepared using our proprietary valuation model and related software which in our professional judgment has the capability to provide results that are consistent with the purposes of the valuation and this report. We performed tests to ensure that the model reasonably represents that which is intended to be modeled. 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 & 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-5 B Valuation Results 1. Participant Data B-1 2. Actuarially Determined Contribution (ADC) B-3 3. Actuarial Value of Benefits and Assets B-6 4. Calculation of Employer Normal Cost B-9 5. Reconciliation of Credit Balance B-12 6. Liquidation of the Unfunded Actuarial Accrued Liability B-13 7. Actuarial Gains and Losses B-18 8. Recent History of Valuation Results B-24 9. Recent History of Contributions B-25 10. Actuarial Assumptions and Cost Method B-26 11. Glossary of Terms B-37 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 $11,412,994 $11,534,013 $(121,019) As % of Covered Payroll 12.31 %12.73 %(0.42)% Estimated State Contribution 12,000 12,000 0 As % of Covered Payroll 0.01 %0.01 %0.00 % Required Employer Contribution 11,400,994 11,522,013 (121,019) As % of Covered Payroll 12.30 %12.72 %(0.42)% Credit Balance 31,554,611 28,963,282 2,591,329 1/1/2021 Valuation (Decrease) Increase Valuation 1/1/2020 For FYE 9/30/2022 For FYE 9/30/2021 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 $3,489,438 $3,534,489 $(45,051) As % of Covered Payroll 6.46 %6.64 %(0.18)% Hazardous Police 4,681,293 4,872,378 (191,085) As % of Covered Payroll 21.84 %23.55 %(1.71)% Hazardous Fire 3,230,263 3,115,146 115,117 As % of Covered Payroll 18.68 %18.64 %0.04 % Total 11,400,994 11,522,013 (121,019) As % of Covered Payroll 12.30 %12.72 %(0.42)% Valuation (Decrease) Based on 1/1/2021 Increase Based on 1/1/2020 Valuation For FYE 9/30/2022 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 2021 and 2022 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, 2020 were $12,187,284 and $12,000, respectively, for a total of $12,199,284, compared to the required contribution of $11,534,013. The excess contribution of $665,271 was used to increase the credit balance. The minimum required City contribution is 7% of covered payroll. Revisions in Benefits There have been no revisions in benefits since the previous valuation Revisions in Actuarial Assumptions or Methods The investment return assumption has been reduced by 0.10% from 6.65% to 6.55%. Additionally, the mortality tables and improvement scales were updated to reflect the updated mortality assumptions used in the July 1, 2019 Florida Retirement System (FRS) Actuarial Valuation, as mandated by Florida Statutes Chapter 112.63(1)(f). These assumption changes caused the required City contribution to increase by $121,678, or 0.14% of covered pensionable payroll. The Board has approved lowering the investment return assumption further in the next valuation. The rate will be decreased from 6.55% to 6.50% effective January 1, 2022. 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 2022 would have been $12,196,586, or 13.15% of covered payroll, and the funded ratio (excluding the credit balance) as of January 1, 2021 would have been 102.54%. Actuarial Experience There was a net actuarial experience gain of $45,746,487 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 6.65%. The investment return on the market value of assets was 15.12%, and the investment return was 11.10% based on the actuarial value of assets. The investment gains were slightly offset by very minor net liability-related experience losses. There were demographic experience losses resulting from salary experience (salaries increased by 6.05% on average versus an expected average increase of 4.30%). Actual mortality experience was a small source of experience loss, as there was a slightly lower decrease in benefit payments due to mortality experience than expected (an actual decrease of $921,472 in City of Clearwater Employees’ Pension Plan A-3 annual retirement benefits versus an expected decrease of $949,503). Actual retirement and disability experience were both sources of experience gains, as there were fewer retirements than expected (43 actual versus 52 expected) and fewer disabilities than expected (0 actual versus 4 expected). The actuarial experience gain caused the required employer contribution to decrease by 0.40% of covered payroll. 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 as of January 1, 2021, the actuarial experience gain had a limited effect on the required employer contribution. The actuarial experience gain also caused the Plan’s funded ratio to increase by approximately 4.4%. Analysis of Change in Employer Contribution The components of change in the required City contribution are as follows: Contribution Rate Last Year 12.72 % Change in Benefits 0.00 Change in Assumptions and Methods 0.14 Amortization Payment on UAAL (0.02) Normal Cost (0.04) Experience Gain/Loss (0.40) Change in Administrative Expenses (0.10) Change in State Revenue (0.00) Contribution Rate This Year 12.30 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 108.70% this year (107.15% before the changes in assumptions) compared to 102.60% last year. Not including the credit balance in the actuarial value of assets, the funded ratio is 105.66% this year (104.15% before the changes in assumptions) compared to 99.76% 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 $129,556,824 as of the valuation date (see Section C). This difference will be gradually recognized in the absence of offsetting losses. However, the investment return assumption is also scheduled to be lowered from 6.55% to 6.50% next year, which will put upward pressure on the required contribution. City of Clearwater Employees’ Pension Plan A-4 Relationship to Market Value If Market Value had been the basis for the valuation, the City contribution rate would have remained at 12.30% of covered payroll (since the annual payment to amortize the UAL would have remained at $0 due to Chapter 112.66 of the Florida Statutes), and the funded ratio (excluding the credit balance) would have been 118.17%. The funded ratio based on the market value of assets (excluding the credit balance) last year was 107.29%. 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-5 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-6 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: 1/1/2021 1/1/2020 Ratio of the market value of assets to total payroll 13.53 12.37 Ratio of actuarial accrued liability to payroll 11.16 11.23 Ratio of actives to retirees and beneficiaries 1.14 1.19 Ratio of net cash flow to market value of assets (2.68)%(3.02)% 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-7 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 1,541 1,114 236 191 Covered Annual Payroll $92,726,419 $54,005,534 $21,431,416 $17,289,469 Average Annual Payroll $60,173 $48,479 $90,811 $90,521 Average Age 44.2 45.6 39.9 41.2 Average Past Service 10.7 10.4 11.5 11.5 Average Age at Hire 33.5 35.2 28.4 29.7 RETIREES & BENEFICIARIES Number 1,219 773 270 176 Annual Benefits $47,643,970 $26,611,279 $12,722,711 $8,309,980 Average Annual Benefit $39,084 $34,426 $47,121 $47,216 Average Age 67.7 69.4 63.8 66.1 DISABILITY RETIREES Number 129 36 50 43 Annual Benefits $4,219,162 $787,025 $1,911,064 $1,521,073 Average Annual Benefit $32,707 $21,862 $38,221 $35,374 Average Age 65.4 70.3 62.7 64.6 TERMINATED VESTED MEMBERS Number 74 53 10 11 Annual Benefits $1,475,373 $949,571 $266,611 $259,191 Average Annual Benefit $19,937 $17,916 $26,661 $23,563 Average Age 48.9 50.7 43.9 44.9 January 1, 2021 Total Hazardous Fire PARTICIPANT DATA Non-Hazardous Hazardous Police City of Clearwater Employees’ Pension Plan B-2 ACTIVE MEMBERS Number 1,571 1,136 240 195 Covered Annual Payroll $90,594,113 $53,193,098 $20,686,134 $16,714,881 Average Annual Payroll $57,667 $46,825 $86,192 $85,717 Average Age 43.8 45.1 39.9 41.1 Average Past Service 10.3 9.9 11.4 11.4 Average Age at Hire 33.5 35.2 28.5 29.7 RETIREES & BENEFICIARIES Number 1,186 762 259 165 Annual Benefits $45,654,032 $26,009,288 $11,904,470 $7,740,274 Average Annual Benefit $38,494 $34,133 $45,963 $46,911 Average Age 67.4 69.0 63.4 66.2 DISABILITY RETIREES Number 135 39 51 45 Annual Benefits $4,325,659 $843,564 $1,934,423 $1,547,672 Average Annual Benefit $32,042 $21,630 $37,930 $34,393 Average Age 65.0 69.3 62.1 64.7 TERMINATED VESTED MEMBERS Number 80 58 8 14 Annual Benefits $1,653,557 $1,093,654 $200,345 $359,558 Average Annual Benefit $20,669 $18,856 $25,043 $25,683 Average Age 48.8 50.6 43.2 44.9 PARTICIPANT DATA - PRIOR YEAR January 1, 2020 Total Non-Hazardous Hazardous Police Hazardous Fire City of Clearwater Employees’ Pension Plan B-3 A.Valuation Date B.ADC to Be Paid During Fiscal Year Ending 9/30/2022 9/30/2022 9/30/2022 9/30/2022 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 10,711,397 3,274,930 4,400,087 3,036,380 F.ADC if Paid on the Valuation Date: D+E 10,711,397 3,274,930 4,400,087 3,036,380 G.ADC Adjusted for Frequency of Payments 11,412,994 3,489,438 4,688,293 3,235,263 H.ADC as % of Covered Payroll 12.31 %6.46 %21.88 %18.71 % 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 92,726,419 54,005,534 21,431,416 17,289,469 K.ADC for Contribution Year: H x J 11,412,994 3,489,438 4,688,293 3,235,263 L.Estimate of State Revenue in Contribution Year 12,000 0 7,000 5,000 M.Required Employer Contribution (REC) in Contribution Year 11,400,994 3,489,438 4,681,293 3,230,263 N.REC as % of Covered Payroll in Contribution Year: M ÷ J 12.30 %6.46 %21.84 %18.68 % O.Credit Balance 31,554,611 15,970,879 9,252,205 6,331,527 Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - AFTER ASSUMPTION CHANGES January 1, 2021 January 1, 2021 January 1, 2021 January 1, 2021 * 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 9/30/2022 9/30/2022 9/30/2022 9/30/2022 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 10,587,263 3,267,847 4,334,018 2,985,398 F.ADC if Paid on the Valuation Date: D+E 10,587,263 3,267,847 4,334,018 2,985,398 G.ADC Adjusted for Frequency of Payments 11,291,316 3,485,159 4,622,230 3,183,927 H.ADC as % of Covered Payroll 12.18 %6.45 %21.57 %18.42 % 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 92,726,419 54,005,534 21,431,416 17,289,469 K.ADC for Contribution Year: H x J 11,291,316 3,485,159 4,622,230 3,183,927 L.Estimate of State Revenue in Contribution Year 12,000 0 7,000 5,000 M.Required Employer Contribution (REC) in Contribution Year 11,279,316 3,485,159 4,615,230 3,178,927 N.REC as % of Covered Payroll in Contribution Year: M ÷ J 12.16 %6.45 %21.53 %18.39 % O.Credit Balance 31,554,611 15,970,879 9,252,205 6,331,527 Total Non-Hazardous Hazardous Police Hazardous Fire January 1, 2021 January 1, 2021 January 1, 2021 January 1, 2021 ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - BEFORE ASSUMPTION CHANGES * 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.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 ACTUARIALLY DETERMINED CONTRIBUTION (ADC) - PRIOR YEAR January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 Total Non-Hazardous Hazardous Police Hazardous Fire * 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-6 A.Valuation Date B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits $ 419,687,968 $ 189,145,015 $ 134,278,375 $ 96,264,578 b. Vesting Benefits 37,170,897 27,026,080 6,163,846 3,980,971 c. Disability Benefits 21,723,016 3,900,242 10,934,743 6,888,031 d. Preretirement Death Benefits 5,350,494 3,355,659 1,116,093 878,742 e. Return of Member Contributions 4,005,332 2,925,556 615,861 463,915 f. Total 487,937,707 226,352,552 153,108,918 108,476,237 2.Inactive Members a. Service Retirees & Beneficiaries 630,420,379 336,896,421 181,939,193 111,584,765 b. Disability Retirees 54,896,963 8,569,863 26,357,137 19,969,963 c. Terminated Vested Members 16,396,732 9,531,725 3,537,891 3,327,116 d. Total 701,714,074 354,998,009 211,834,221 134,881,844 3. Total for All Members 1,189,651,781 581,350,561 364,943,139 243,358,081 C.Actuarial Accrued (Past Service) Liability 1,034,718,990 525,599,102 306,555,615 202,564,273 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 970,493,309 489,411,798 290,331,609 190,749,902 E.Plan Assets 1.Market Value 1,254,293,845 641,315,529 364,947,164 248,031,152 2. Actuarial Value 1,124,737,021 575,073,632 327,251,535 222,411,854 3. Actuarial Value Excluding Credit Balance 1,093,182,410 559,102,753 317,999,330 216,080,327 F.Actuarial Present Value of Projected Covered Payroll 776,476,285 428,012,330 195,344,184 153,119,771 G.Actuarial Present Value of Projected Member Contributions 69,009,378 34,240,988 19,462,742 15,305,648 H.Accumulated Value of Active Member Contributions 66,757,705 36,139,486 17,210,741 13,407,478 I.Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. - E.3.(58,463,420) (33,503,651) (11,443,715) (13,516,054) J.Funded Ratio = E.2. / C.108.70%109.41%106.75%109.80% K.Funded Ratio Excluding Credit Balance = E.3. / C.105.65%106.37%103.73%106.67% Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIAL VALUE OF BENEFITS AND ASSETS - AFTER ASSUMPTION CHANGES January 1, 2021 January 1, 2021 January 1, 2021 January 1, 2021 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 $ 418,336,999 $ 189,150,145 $ 133,620,493 $ 95,566,361 b. Vesting Benefits 37,148,330 27,164,181 6,073,418 3,910,731 c. Disability Benefits 21,216,823 3,744,562 10,731,456 6,740,805 d. Preretirement Death Benefits 7,377,381 4,517,114 1,602,964 1,257,303 e. Return of Member Contributions 4,155,545 3,019,136 645,430 490,979 f. Total 488,235,078 227,595,138 152,673,761 107,966,179 2.Inactive Members a. Service Retirees & Beneficiaries 641,731,546 339,499,201 186,918,195 115,314,150 b. Disability Retirees 55,663,117 8,739,612 26,647,826 20,275,679 c. Terminated Vested Members 16,482,504 9,636,642 3,525,271 3,320,591 d. Total 713,877,167 357,875,455 217,091,292 138,910,420 3. Total for All Members 1,202,112,245 585,470,593 369,765,053 246,876,599 C.Actuarial Accrued (Past Service) Liability 1,049,646,120 530,270,914 312,449,796 206,925,410 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 984,005,654 493,442,395 295,706,008 194,857,251 E.Plan Assets 1.Market Value 1,254,293,845 641,315,529 364,947,164 248,031,152 2. Actuarial Value 1,124,737,021 575,073,632 327,251,535 222,411,854 3. Actuarial Value Excluding Credit Balance 1,093,182,410 559,102,753 317,999,330 216,080,327 F.Actuarial Present Value of Projected Covered Payroll 769,792,364 424,172,247 193,768,786 151,851,331 G.Actuarial Present Value of Projected Member Contributions 68,418,262 33,933,781 19,305,637 15,178,844 H.Accumulated Value of Active Member Contributions 66,757,705 36,139,486 17,210,741 13,407,478 I.Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. - E.3.(43,536,290) (28,831,839) (5,549,534) (9,154,917) J.Funded Ratio = E.2. / C.107.15%108.45%104.74%107.48% K.Funded Ratio Excluding Credit Balance = E.3. / C.104.15%105.44%101.78%104.42% Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIAL VALUE OF BENEFITS AND ASSETS - BEFORE ASSUMPTION CHANGES January 1, 2021 January 1, 2021 January 1, 2021 January 1, 2021 City of Clearwater Employees’ Pension Plan B-8 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% Total Non-Hazardous Hazardous Police Hazardous Fire ACTUARIAL VALUE OF BENEFITS AND ASSETS - PRIOR YEAR January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 City of Clearwater Employees’ Pension Plan B-9 A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits $13,144,753 $4,778,517 $4,778,940 $3,587,296 2.Vesting 2,421,305 1,596,210 504,608 320,487 3.Disability Benefits 1,967,473 309,813 996,671 660,989 4.Death Benefits 226,345 129,550 49,421 47,374 5.Refund of Contributions 878,771 655,826 124,204 98,741 6.Total for Future Benefits 18,638,647 7,469,916 6,453,844 4,714,887 7.Assumed Amount for Administrative Expenses 244,753 125,457 70,978 48,318 8.Total Normal Cost 18,883,400 7,595,373 6,524,822 4,763,205 C.Expected Member Contributions 8,172,003 4,320,443 2,124,735 1,726,825 D.Employer Normal Cost: B8 - C 10,711,397 3,274,930 4,400,087 3,036,380 E. Employer Normal Cost as % of Covered Payroll 11.55%6.06%20.53%17.56% Total Non-Hazardous Hazardous Police Hazardous Fire CALCULATION OF EMPLOYER NORMAL COST ENTRY AGE NORMAL METHOD - AFTER ASSUMPTION CHANGES January 1, 2021 January 1, 2021 January 1, 2021 January 1, 2021 City of Clearwater Employees’ Pension Plan B-10 A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits $12,985,374 $4,730,925 $4,718,808 $3,535,641 2.Vesting 2,411,197 1,599,036 496,975 315,186 3.Disability Benefits 1,917,862 296,345 975,329 646,188 4.Death Benefits 308,528 172,230 70,424 65,874 5.Refund of Contributions 891,552 664,297 126,239 101,016 6.Total for Future Benefits 18,514,513 7,462,833 6,387,775 4,663,905 7.Assumed Amount for Administrative Expenses 244,753 125,457 70,978 48,318 8.Total Normal Cost 18,759,266 7,588,290 6,458,753 4,712,223 C.Expected Member Contributions 8,172,003 4,320,443 2,124,735 1,726,825 D.Employer Normal Cost: B8 - C 10,587,263 3,267,847 4,334,018 2,985,398 E. Employer Normal Cost as % of Covered Payroll 11.42%6.05%20.22%17.27% CALCULATION OF EMPLOYER NORMAL COST ENTRY AGE NORMAL METHOD - BEFORE ASSUMPTION CHANGES Total Non-Hazardous Hazardous Police Hazardous Fire January 1, 2021 January 1, 2021 January 1, 2021 January 1, 2021 City of Clearwater Employees’ Pension Plan B-11 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% Total Non-Hazardous Hazardous Police Hazardous Fire CALCULATION OF EMPLOYER NORMAL COST - PRIOR YEAR ENTRY AGE NORMAL METHOD January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 City of Clearwater Employees’ Pension Plan B-12 Total Non-Hazardous Hazardous Police Hazardous Fire $28,963,282 $14,888,015 $8,368,213 $5,707,054 -11,522,013 -3,534,489 -4,872,378 -3,115,146 +12,187,284 +3,627,300 +5,199,884 +3,360,100 +1,926,058 +990,053 +556,486 +379,519 31,554,611 15,970,879 9,252,205 6,331,527 Interest on Credit Balance Credit Balance at End of Year Credit Balance at Beginning of Year Required Employer Contribution Employer Contribution Made Reconcilation of Credit Balance City of Clearwater Employees’ Pension Plan B-13 LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) UAAL Amortization Period and Payments - Non-Hazardous Date Established Source Amount Years Remaining Amount After Assumption Changes Before Assumption Changes 1/1/2015 Fresh Start (2,679,461)$ 17 (4,064,548)$ (378,629)$ (380,943)$ 1/1/2016 (Gain)/Loss 244,325 10 344,846 45,126 45,295 1/1/2016 Assumption Change (2,200,261) 20 (3,096,042) (264,761) (266,613) 1/1/2017 (Gain)/Loss (9,301,995) 11 (12,205,717) (1,493,595) (1,499,725) 1/1/2017 Assumption Change 156,236 21 204,654 17,090 17,215 1/1/2018 (Gain)/Loss (5,692,965) 12 (6,970,113) (803,965) (807,552) 1/1/2019 (Gain)/Loss 2,983,422 13 3,410,045 373,224 375,019 1/1/2019 Assumption Change 12,955,157 23 14,794,024 1,184,812 1,194,056 1/1/2020 (Gain)/Loss (611,097) 14 (652,940) (68,192) (68,543) 1/1/2020 Assumption Change 5,818,657 24 6,214,483 488,606 492,541 1/1/2021 (Gain)/Loss (26,810,531) 15 (26,810,531) (2,684,693) (2,699,403) 1/1/2021 Assumption Change (4,671,812) 25 (4,671,812) (361,122) N/A (29,810,325) (33,503,651) (3,946,099) (3,598,653) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-14 UAAL Amortization Period and Payments - Hazardous Police Date Established Source Amount Years Remaining Amount After Assumption Changes Before Assumption Changes 1/1/2015 Fresh Start (1,506,064)$ 17 (2,062,198)$ (192,102)$ (193,276)$ 1/1/2016 (Gain)/Loss 137,330 10 168,332 22,028 22,110 1/1/2016 Assumption Change (1,236,717) 20 (1,583,392) (135,405) (136,352) 1/1/2017 (Gain)/Loss (5,228,439) 11 (6,009,479) (735,371) (738,389) 1/1/2017 Assumption Change 87,817 21 104,886 8,759 8,823 1/1/2018 (Gain)/Loss (3,199,886) 12 (3,456,365) (398,673) (400,452) 1/1/2019 (Gain)/Loss 1,676,914 13 1,701,225 186,196 187,092 1/1/2019 Assumption Change 7,281,798 23 7,609,247 609,404 614,158 1/1/2020 (Gain)/Loss (343,483) 14 (327,427) (34,196) (34,372) 1/1/2020 Plan Amendment 5,717,584 9 5,253,109 742,295 744,790 1/1/2020 Assumption Change 3,552,608 24 3,477,420 273,408 275,610 1/1/2021 (Gain)/Loss (10,424,892) 15 (10,424,892) (1,043,904) (1,049,624) 1/1/2021 Assumption Change (5,894,181) 25 (5,894,181) (455,609) N/A (9,379,611) (11,443,715) (1,153,170) (699,882) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-15 UAAL Amortization Period and Payments - Hazardous Fire Date Established Source Amount Years Remaining Amount After Assumption Changes Before Assumption Changes 1/1/2015 Fresh Start (1,027,124)$ 17 (1,561,747)$ (145,483)$ (146,372)$ 1/1/2016 (Gain)/Loss 93,658 10 132,612 17,353 17,418 1/1/2016 Assumption Change (843,431) 20 (1,189,405) (101,713) (102,424) 1/1/2017 (Gain)/Loss (3,565,754) 11 (4,692,911) (574,264) (576,621) 1/1/2017 Assumption Change 59,890 21 78,618 6,565 6,613 1/1/2018 (Gain)/Loss (2,182,297) 12 (2,679,495) (309,065) (310,444) 1/1/2019 (Gain)/Loss 1,143,642 13 1,310,741 143,459 144,149 1/1/2019 Assumption Change 4,966,128 23 5,682,696 455,111 458,662 1/1/2020 (Gain)/Loss (234,253) 14 (250,947) (26,208) (26,343) 1/1/2020 Plan Amendment 4,071 9 4,367 617 619 1/1/2020 Assumption Change 2,356,236 24 2,521,618 198,259 199,856 1/1/2021 (Gain)/Loss (8,511,064) 15 (8,511,064) (852,262) (856,932) 1/1/2021 Assumption Change (4,361,137) 25 (4,361,137) (337,107) N/A (12,101,435) (13,516,054) (1,524,738) (1,191,819) Original UAAL Current UAAL Payment City of Clearwater Employees’ Pension Plan B-16 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: 2021 $(33,503,651) 2022 (31,493,592) 2023 (29,351,854) 2024 (27,069,832) 2025 (24,638,337) 2026 (22,047,580) 2031 (6,314,864) 2036 - Amortization Schedule - Non-Hazardous Year Expected UAAL 2021 $(11,443,715) 2022 (10,964,567) 2023 (10,454,044) 2024 (9,910,081) 2025 (9,330,489) 2026 (8,712,933) 2031 (4,171,830) 2036 - Amortization Schedule - Hazardous Police Year Expected UAAL City of Clearwater Employees’ Pension Plan B-17 2021 $(13,516,054) 2022 (12,776,742) 2023 (11,989,010) 2024 (11,149,682) 2025 (10,255,378) 2026 (9,302,497) 2031 (3,515,343) 2036 - Amortization Schedule - Hazardous Fire Year Expected UAAL City of Clearwater Employees’ Pension Plan B-18 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 $2,469,203 $(1,881,498)$4,942,111 $(591,410) 2.Employer Normal Cost for Contribution Year 10,463,285 3,314,101 4,223,590 2,925,594 3.Last Year's Contributions 11,534,013 *3,534,489 *4,879,378 *3,120,146 * 4. Interest at the Assumed Rate on: a.1 and 2 for one year 860,010 95,268 609,519 155,223 b.3 from dates paid 48,288 14,690 20,484 13,114 c. a - b 811,722 80,578 589,035 142,109 5.This Year's Expected UAAL: 1 + 2 - 3 + 4c 2,210,197 (2,021,308)4,875,358 (643,853) 6.This Year's Actual UAAL (Before any changes in benefits and assumptions)(43,536,290)(28,831,839)(5,549,534)(9,154,917) 7.Net Actuarial Gain (Loss): (5) - (6)45,746,487 26,810,531 10,424,892 8,511,064 8.Gain (Loss) Due to Investments 45,956,765 9.Gain (Loss) Due to other sources (210,278) Hazardous FireA. Derivation of the Current UAAL Total Non-Hazardous Hazardous Police * 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-19 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)** 2020 45,746,487 (5.30)** 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 or limited 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-20 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 12/31/2020 11.10 6.65 6.05 4.30 Averages 7.99 %---5.45 %--- Assumed Salary Increases Actual Investment Return Year Ending Actual 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-21 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-22 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 105 135 43 52 0 4 0 2 8 84 92 100 1,541 12/31/2021 56 4 1 92 12 Yr Totals *1511 1598 553 642 35 50 16 25 195 799 994 1053 * 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-23 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 27 921,472 29 949,503 12/31/2021 32 1,073,271 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-24 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 1/1/21 1,541 1,422 92,726,419 1,093,182,410 1,034,718,990 (58,463,420)105.7 10,711,397 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-25 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 11,522,013 12,000 11,534,013 1/1/21 9/30/22 11,412,994 12.31 12,000 0.01 11,400,994 12.30 --- --- --- % of Payroll Employer StateValuation 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-26 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 6.55% 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 6.65%. City of Clearwater Employees’ Pension Plan B-27 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 6.55% investment return rate translates to an assumed real rate of return over inflation of 4.30%. 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-28 Demographic Assumptions The mortality tables used in the valuation for Hazardous Duty members are based on the PUB-2010 Headcount Weighted Mortality Tables described below, with mortality improvements projected for healthy lives to all future years after 2010 using Scale MP-2018. No mortality improvement is projected for disabled lives. Pre-Retirement PUB-2010 Table Post-Retirement PUB-2010 Table Female Healthy Headcount Weighted Safety Employee Female Table, set forward 1 year Headcount Weighted Safety Healthy Retiree Female Table, set forward 1 year Male Healthy Headcount Weighted Safety Below Median Employee Male Table, set forward 1 year Headcount Weighted Safety Below Median Healthy Retiree Male Table, set forward 1 year Female Disabled N/A 80% Headcount Weighted General Disabled Retiree Female Table; 20% Headcount Weighted Safety Disabled Retiree Female Table Male Disabled N/A 80% Headcount Weighted General Disabled Retiree Male Table; 20% Headcount Weighted Safety Disabled Retiree Male Table These are the same rates used for Special Risk Class members of the Florida Retirement System (FRS) in the July 1, 2019 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. In the previous valuation, the mortality rates were the same as used for Special Risk Class members in the July 1, 2018 FRS Actuarial Valuation. These rates were based on the RP-2000 Mortality Tables with collar and age adjustments and mortality improvements projected for non-disabled lives to all future years after 2000 using Scale BB. The following table presents post-retirement mortality rates and life expectancies at illustrative ages. These assumptions are used to measure the probabilities of each benefit payment being made after retirement. City of Clearwater Employees’ Pension Plan B-29 FRS Healthy Post-Retirement Mortality for Special Risk Class Members Sample Attained Ages (in 2021)Men Women Men Women 50 0.42 %0.20 %32.50 36.33 55 0.56 0.36 27.73 31.30 60 0.92 0.61 23.14 26.51 65 1.32 0.92 18.87 22.00 70 2.08 1.45 14.86 17.74 75 3.54 2.42 11.27 13.82 80 6.30 4.16 8.19 10.35 Probability of Future Life Dying Next Year Expectancy (years) The following tables present pre-retirement mortality rates and life expectancies at illustrative ages. These assumptions are 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. FRS Healthy Pre-Retirement Mortality for Special Risk Class Members Sample Attained Ages (in 2021)Men Women Men Women 50 0.16 %0.11 %35.66 39.58 55 0.26 0.16 30.58 34.44 60 0.43 0.22 25.63 29.37 65 0.69 0.30 20.86 24.35 70 1.18 0.55 16.34 19.45 75 2.08 1.07 12.10 14.75 80 6.30 4.16 8.19 10.35 Probability of Future Life Dying Next Year Expectancy (years) The following table presents disabled post-retirement mortality rates and life expectancies at illustrative ages. FRS Disabled Mortality for Special Risk Class Members Sample Attained Ages Men Women Men Women 50 1.45 %1.25 %24.04 26.84 55 1.91 1.50 20.88 23.54 60 2.37 1.81 17.92 20.32 65 3.00 2.22 15.07 17.17 70 3.91 2.90 12.39 14.10 75 5.30 4.13 9.87 11.22 80 7.66 6.21 7.60 8.67 Probability of Future Life Dying Next Year Expectancy (years) City of Clearwater Employees’ Pension Plan B-30 The mortality tables used in the valuation for Non-Hazardous Duty members are based on the PUB- 2010 Headcount Weighted Mortality Tables described below, with mortality improvements projected for healthy lives to all future years after 2010 using Scale MP-2018. No mortality improvement is projected for disabled lives. Pre-Retirement PUB-2010 Table Post-Retirement PUB-2010 Table Female Healthy Headcount Weighted General Below Median Employee Female Table Headcount Weighted General Below Median Healthy Retiree Female Table Male Healthy Headcount Weighted General Below Median Employee Male Table, set back 1 year Headcount Weighted General Below Median Healthy Retiree Male Table, set back 1 year Female Disabled N/A PUB-2010 Headcount Weighted General Disabled Retiree Female, set forward 3 years Male Disabled N/A PUB-2010 Headcount Weighted General Disabled Retiree Male, set forward 3 years These are the same rates used for Regular Class members (other than K-12 School Instructional Personnel) of the Florida Retirement System (FRS) in the July 1, 2019 FRS Actuarial Valuation Report. Florida Statutes Chapter 112.63(1)(f) mandates the use of the mortality tables from either of the two most recently published actuarial valuation reports of FRS. In the previous valuation, the mortality rates were the same as used for Regular Class members in the July 1, 2018 FRS Actuarial Valuation. These rates were based on the RP-2000 Mortality Tables with collar and age adjustments and mortality improvements projected for non-disabled lives to all future years after 2000 using Scale BB. The following table presents post-retirement mortality rates and life expectancies at illustrative ages. These assumptions are used to measure the probabilities of each benefit payment being made after retirement. FRS Healthy Post-Retirement Mortality for Non-Special Risk Class Members Sample Attained Ages (in 2021)Men Women Men Women 50 0.19 %0.58 %33.14 36.95 55 0.96 0.58 28.77 32.50 60 1.14 0.60 24.68 27.96 65 1.29 0.69 20.63 23.39 70 1.80 1.09 16.62 18.91 75 2.86 1.89 12.91 14.73 80 4.83 3.41 9.63 10.98 Dying Next Year Expectancy (years) Probability of Future Life City of Clearwater Employees’ Pension Plan B-31 The following tables present pre-retirement mortality rates and life expectancies at illustrative ages. These assumptions are used to measure the probabilities of active members dying prior to retirement. All deaths before retirement are assumed to be non-service connected. FRS Healthy Pre-Retirement Mortality for Non-Special Risk Class Members Sample Attained Ages (in 2021)Men Women Men Women 50 0.19 %0.11 %37.72 40.26 55 0.30 0.17 32.71 35.14 60 0.46 0.26 27.85 30.11 65 0.65 0.37 23.17 25.19 70 0.90 0.56 18.62 20.37 75 1.35 0.93 14.19 15.68 80 2.13 1.58 9.89 11.17 Probability of Future Life Dying Next Year Expectancy (years) The following table presents disabled post-retirement mortality rates and life expectancies at illustrative ages. FRS Disabled Mortality for Non-Special Risk Class Members Sample Attained Ages Men Women Men Women 50 2.02 %1.64 %20.99 23.92 55 2.53 1.91 18.18 20.88 60 3.08 2.27 15.50 17.88 65 3.93 2.83 12.94 14.91 70 5.08 3.79 10.53 12.07 75 6.98 5.46 8.29 9.45 80 10.12 8.31 6.33 7.19 Probability of Future Life Dying Next Year Expectancy (years) City of Clearwater Employees’ Pension Plan B-32 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-33 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-34 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-35 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-36 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-37 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-38 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-39 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 2020 2019 A.Cash and Cash Equivalents (Operating Cash)-$ -$ B.Receivables 1.Member Contributions -$ -$ 2.Employer Contributions 6,573,873 4,735,719 3.Investment Income and Other Receivables 7,531,666 10,393,319 4.Total Receivables 14,105,539$ 15,129,038$ C.Investments 1.Short-Term Investments 36,656,865$ 19,252,436$ 2.Domestic Equities 518,911,746 467,303,037 3.International Equities 221,655,402 202,478,365 4.Domestic Fixed Income 340,222,143 290,776,763 5.International Fixed Income - - 6.Real Estate 95,691,009 95,127,571 7.Infrastructure 44,524,919 43,301,120 8.Private Equity - - 9.Total Investments 1,257,662,084$ 1,118,239,292$ D.Liabilities 1.Benefits Payable -$ -$ 2.Accrued Expenses and Other Payables (17,473,778) (12,472,393) 3.Total Liabilities (17,473,778)$ (12,472,393)$ E.Total Market Value of Assets Available for Benefits 1,254,293,845$ 1,120,895,937$ F.Allocation of Investments 1.Short-Term Investments 2.91%1.72% 2.Domestic Equities 41.26%41.79% 3.International Equities 17.62%18.11% 4.Domestic Fixed Income 27.06%26.00% 5.International Fixed Income 0.00%0.00% 6.Real Estate 7.61%8.51% 7.Infrastructure 3.54%3.87% 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 2020 2019 A.Market Value of Assets at Beginning of Year 1,120,895,937$ 963,571,264$ B.Revenues and Expenditures 1.Contributions a.Employee Contributions 7,971,499$ 7,482,806$ b.Employer Contributions 12,187,284 10,268,063 c.State Contributions 12,000 12,000 d.Total 20,170,783$ 17,762,869$ 2.Investment Income a.Interest, Dividends, and Other Income 18,588,138$ 21,605,614$ b.Net Realized Gains/(Losses)82,411,206 32,562,716 c.Net Unrealized Gains/(Losses)72,374,011 143,690,454 d.Investment Expenses (6,395,926) (6,674,393) e.Net Investment Income 166,977,429$ 191,184,391$ 3.Benefits and Refunds a.Refunds (916,875)$ (941,143)$ b.Regular Monthly Benefits (51,027,801) (49,309,666) c.Partial Lump-Sum Benefits Paid (1,560,875) (1,047,504) d.Total (53,505,551)$ (51,298,313)$ 4.Administrative and Miscellaneous Expenses (244,753)$ (324,274)$ 5.Transfers -$ -$ C.Market Value of Assets at End of Year 1,254,293,845$ 1,120,895,937$ December 31 Item City of Clearwater Employees’ Pension Plan C-3 Development of Actuarial Value of Assets Valuation Date - December 31 2019 2020 2021 2022 2023 2024 A.Actuarial Value of Assets Beginning of Year 1,005,100,366$ 1,044,240,614$ B.Market Value End of Year 1,120,895,937 1,254,293,845 C.Market Value Beginning of Year 963,571,264 1,120,895,937 D.Non-Investment/Administrative Net Cash Flow (33,859,718) (33,579,521) E.Investment Income E1. Actual Market Total: B-C-D 191,184,391 166,977,429 E2. Assumed Rate of Return 6.75%6.65%6.55%6.50%6.50%6.50% E3. Assumed Amount of Return 63,739,343 73,216,742 E4. Amount Subject to Phase-In: E1–E3 127,445,048 93,760,687 F.Phase-In Recognition of Investment Income F1. Current Year: 0.2 x E4 25,489,010 18,752,137 F2. First Prior Year (19,001,935) 25,489,010 18,752,137 F3. Second Prior Year 16,085,119 (19,001,935) 25,489,010 18,752,137 F4. Third Prior Year (465,144) 16,085,119 (19,001,935) 25,489,010 18,752,137 F5. Fourth Prior Year (12,846,427) (465,145) 16,085,118 (19,001,937) 25,489,008 18,752,139 F6. Total Phase-Ins 9,260,623 40,859,186 41,324,330 25,239,210 44,241,145 18,752,139 G.Actuarial Value of Assets End of Year G1. Preliminary Actuarial Value of Assets 1,044,240,614$ 1,124,737,021$ G2. Upper Corridor Limit: 120%*B 1,345,075,124$ 1,505,152,614$ G3. Lower Corridor Limit: 80%*B 896,716,750$ 1,003,435,076$ G4. Funding Value End of Year 1,044,240,614$ 1,124,737,021$ G5. Credit Balance 28,963,282$ 31,554,611$ G6. Final Actuarial Value of Assets 1,015,277,332$ 1,093,182,410$ H.Recognized Investment Earnings 72,999,966$ 114,075,928$ I.Difference between Market & Actuarial Value 76,655,323$ 129,556,824$ J.Actuarial Rate of Return 7.39%11.10% K.Market Value Rate of Return 20.20%15.12% L.Ratio of Actuarial Value of Assets to Market Value 93.16%89.67% 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.Contributions (All)20,170,783 7,848,771 7,275,448 5,046,564 C.Net Investment Return 166,977,429 85,590,389 48,423,234 32,963,806 D.Benefit Payments (All)53,505,551 28,173,041 14,535,280 10,797,230 E.Administrative Expenses 244,753 125,457 70,978 48,318 F.Market Value of Assets as of January 1, 2021 1,254,293,845 641,315,529 364,947,164 248,031,152 G.Actuarial Value of Assets as of January 1, 2021 1,124,737,021 575,073,632 327,251,535 222,411,854 H Actuarial Value of Assets less Credit Balance 1,093,182,410 559,102,753 317,999,330 216,080,327 Item 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 2020 15.12 11.10 Average returns: Last five years:10.81 % 8.26 % Last ten years:9.09 % 8.37 % All years:9.38 % 7.99 % 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 $685,317,342 $676,836,452 b.Terminated Vested Members 16,396,732 18,283,940 c.Other Members 250,641,102 243,779,791 d.Total 952,355,176 938,900,183 2.Non-Vested Benefits 18,138,133 16,580,142 3.Total Actuarial Present Value of Accumulated Plan Benefits: 1d + 2 970,493,309 955,480,325 4.Accumulated Contributions of Active Members 66,757,705 64,188,492 C.Changes in the Actuarial Present Value of Accumulated Plan Benefits 1.Total Value at Beginning of Year 955,480,325 913,458,490 2.Increase (Decrease) During the Period Attributable to: a.Plan Amendment 0 3,573,402 b.Change in Actuarial Assumptions (13,512,345)10,956,515 c.Latest Member Data, Benefits Accumulated and Decrease in the Discount Period 82,030,880 78,790,231 d.Benefits Paid (53,505,551)(51,298,313) e.Net Increase 15,012,984 42,021,835 3.Total Value at End of Period 970,493,309 955,480,325 D.Market Value of Assets 1,254,293,845 1,120,895,937 E.Actuarial Assumptions - See page entitled Actuarial Assumptions and Methods FASB NO. 35 INFORMATION January 1, 2021 January 1, 2020 SECTION E MISCELLANEOUS INFORMATION City of Clearwater Employees’ Pension Plan E-1 A. 1.Number Included in Last Valuation 1,571 1,555 2.New Members Included in Current Valuation 104 162 3.Non-Vested Employment Terminations (84)(93) 4.Vested Employment Terminations (8)(13) 5.Service Retirements (43)(38) 6.Disability Retirements 0 (3) 7.Deaths 0 (1) 8.Rehired Members/Data Corrections 1 2 9.Number Included in This Valuation 1,541 1,571 B. 1.Number Included in Last Valuation 80 86 2.Additions from Active Members 8 13 3.Lump Sum Payments/Refund of Contributions (3)(6) 4.Payments Commenced (11)(11) 5.Deaths 0 0 6.Conversion from Disability/Rehired Members 0 (2) 7.Data Corrections 0 0 8.Number Included in This Valuation 74 80 C. 1.Number Included in Last Valuation 1,321 1,288 2.Additions from Active Members 43 41 3.Additions from Terminated Vested Members 11 11 4.Deaths Resulting in No Further Payments (27)(19) 5.Deaths Resulting in New Survivor Benefits 0 1 6.End of Certain Period - No Further Payments 0 0 7.Data Correction/Waiver of Benefits 0 (1) 8.Number Included in This Valuation 1,348 1,321 RECONCILIATION OF MEMBERSHIP DATA Active Members Service Retirees, Disability Retirees and Beneficiaries Terminated Vested Members From 1/1/2019From 1/1/2020 To 1/1/2020To 1/1/2021 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.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.19 7 7 2 1 1 0 0 0 0 0 0 37 TOT PAY 700,398 228,611 223,226 68,691 30,871 37,257 0 0 0 0 0 0 1,289,054 AVG PAY 36,863 32,659 31,889 34,346 30,871 37,257 0 0 0 0 0 0 34,839 25-29 NO.23 36 32 23 22 33 0 0 0 0 0 0 169 TOT PAY 909,687 1,632,491 1,685,610 1,107,614 1,217,112 1,740,155 0 0 0 0 0 0 8,292,669 AVG PAY 39,552 45,347 52,675 48,157 55,323 52,732 0 0 0 0 0 0 49,069 30-34 NO.19 26 22 31 22 56 17 0 0 0 0 0 193 TOT PAY 682,275 1,064,868 1,243,245 1,636,088 1,189,472 3,146,486 1,210,508 0 0 0 0 0 10,172,942 AVG PAY 35,909 40,956 56,511 52,777 54,067 56,187 71,206 0 0 0 0 0 52,710 35-39 NO.6 15 20 14 15 58 44 24 0 0 0 0 196 TOT PAY 253,129 662,743 984,208 788,719 832,570 3,437,066 3,233,988 1,664,458 0 0 0 0 11,856,881 AVG PAY 42,188 44,183 49,210 56,337 55,505 59,260 73,500 69,352 0 0 0 0 60,494 40-44 NO.13 11 20 12 6 31 34 45 11 0 0 0 183 TOT PAY 494,305 500,619 847,129 613,302 351,893 1,861,748 2,833,293 3,466,112 771,391 0 0 0 11,739,792 AVG PAY 38,023 45,511 42,356 51,108 58,649 60,056 83,332 77,025 70,126 0 0 0 64,152 45-49 NO.4 15 18 6 3 34 41 48 38 7 0 0 214 TOT PAY 143,976 603,850 763,651 285,850 124,915 1,889,689 2,773,042 3,909,966 3,411,042 591,500 0 0 14,497,481 AVG PAY 35,994 40,257 42,425 47,642 41,638 55,579 67,635 81,458 89,764 84,500 0 0 67,745 50-54 NO.11 8 14 5 6 17 20 42 42 24 6 0 195 TOT PAY 474,184 330,951 669,583 252,528 342,690 1,088,043 1,374,442 3,473,108 3,518,018 2,222,825 439,450 0 14,185,822 AVG PAY 43,108 41,369 47,827 50,506 57,115 64,003 68,722 82,693 83,762 92,618 73,242 0 72,748 55-59 NO.5 7 12 4 2 26 27 40 24 21 8 2 178 TOT PAY 188,933 291,482 659,475 147,559 75,693 1,371,781 1,481,194 2,424,393 1,760,601 1,500,588 611,351 154,347 10,667,397 AVG PAY 37,787 41,640 54,956 36,890 37,846 52,761 54,859 60,610 73,358 71,457 76,419 77,174 59,929 60-64 NO.1 5 2 2 3 13 16 32 23 16 6 2 121 TOT PAY 46,993 195,606 73,384 115,514 146,273 641,494 959,833 1,764,174 1,309,909 1,039,181 374,308 128,160 6,794,829 AVG PAY 46,993 39,121 36,692 57,757 48,758 49,346 59,990 55,130 56,953 64,949 62,385 64,080 56,156 65+ NO.3 1 1 1 1 9 6 11 10 7 4 1 55 TOT PAY 199,240 27,757 28,056 29,583 33,233 487,430 324,395 598,208 612,775 474,676 324,881 89,318 3,229,552 AVG PAY 66,413 27,757 28,056 29,583 33,233 54,159 54,066 54,383 61,278 67,811 81,220 89,318 58,719 TOT NO.104 131 148 100 81 278 205 242 148 75 24 5 1,541 TOT AMT 4,093,120 5,538,978 7,177,567 5,045,448 4,344,722 15,701,149 14,190,695 17,300,419 11,383,736 5,828,770 1,749,990 371,825 92,726,419 AVG AMT 39,357 42,282 48,497 50,454 53,639 56,479 69,223 71,489 76,917 77,717 72,916 74,365 60,173 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.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.13 7 7 2 1 1 0 0 0 0 0 0 31 TOT PAY 386,387 228,611 223,226 68,691 30,871 37,257 0 0 0 0 0 0 975,043 AVG PAY 29,722 32,659 31,889 34,346 30,871 37,257 0 0 0 0 0 0 31,453 25-29 NO.18 22 20 16 11 21 0 0 0 0 0 0 108 TOT PAY 674,834 691,873 810,216 596,414 397,210 834,104 0 0 0 0 0 0 4,004,651 AVG PAY 37,491 31,449 40,511 37,276 36,110 39,719 0 0 0 0 0 0 37,080 30-34 NO.16 22 10 20 14 35 8 0 0 0 0 0 125 TOT PAY 506,269 786,525 362,573 837,553 607,488 1,493,953 391,426 0 0 0 0 0 4,985,787 AVG PAY 31,642 35,751 36,257 41,878 43,392 42,684 48,928 0 0 0 0 0 39,886 35-39 NO.5 12 14 9 11 36 25 18 0 0 0 0 130 TOT PAY 191,357 452,318 557,387 415,794 532,475 1,703,635 1,311,495 961,820 0 0 0 0 6,126,281 AVG PAY 38,271 37,693 39,813 46,199 48,407 47,323 52,460 53,434 0 0 0 0 47,125 40-44 NO.12 10 19 12 4 20 11 22 8 0 0 0 118 TOT PAY 438,276 432,153 758,037 613,302 195,946 960,161 660,932 1,182,542 423,730 0 0 0 5,665,079 AVG PAY 36,523 43,215 39,897 51,109 48,987 48,008 60,085 53,752 52,966 0 0 0 48,009 45-49 NO.4 15 17 5 3 29 30 24 17 4 0 0 148 TOT PAY 143,976 603,850 688,363 206,667 124,915 1,476,769 1,714,456 1,334,171 1,006,103 235,593 0 0 7,534,863 AVG PAY 35,994 40,257 40,492 41,333 41,638 50,923 57,149 55,590 59,183 58,898 0 0 50,911 50-54 NO.10 7 12 4 5 14 14 18 23 14 5 0 126 TOT PAY 397,637 254,623 524,573 159,302 259,770 823,491 772,071 956,582 1,375,524 948,639 324,643 0 6,796,855 AVG PAY 39,764 36,375 43,714 39,826 51,954 58,821 55,148 53,143 59,805 67,760 64,929 0 53,943 55-59 NO.5 7 10 4 2 24 25 35 21 15 7 2 157 TOT PAY 188,933 291,482 498,648 147,559 75,693 1,120,988 1,263,866 1,956,136 1,405,945 887,433 472,858 154,347 8,463,888 AVG PAY 37,787 41,640 49,865 36,890 37,847 46,708 50,555 55,890 66,950 59,162 67,551 77,174 53,910 60-64 NO.1 5 2 2 3 13 14 31 23 15 6 2 117 TOT PAY 46,993 195,606 73,384 115,514 146,273 641,494 696,545 1,659,978 1,309,909 936,451 374,308 128,160 6,324,615 AVG PAY 46,993 39,121 36,692 57,757 48,758 49,346 49,753 53,548 56,953 62,430 62,385 64,080 54,057 65+ NO.3 1 1 1 1 9 5 11 10 7 4 1 54 TOT PAY 199,240 27,757 28,056 29,583 33,233 487,430 223,315 598,208 612,775 474,676 324,881 89,318 3,128,472 AVG PAY 66,413 27,757 28,056 29,583 33,233 54,159 44,663 54,383 61,278 67,811 81,220 89,318 57,935 TOT NO.87 108 112 75 55 202 132 159 102 55 22 5 1,114 TOT AMT 3,173,902 3,964,798 4,524,463 3,190,379 2,403,874 9,579,282 7,034,106 8,649,437 6,133,986 3,482,792 1,496,690 371,825 54,005,534 AVG AMT 36,482 36,711 40,397 42,538 43,707 47,422 53,289 54,399 60,137 63,323 68,031 74,365 48,479 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.2 0 0 0 0 0 0 0 0 0 0 0 2 TOT PAY 96,131 0 0 0 0 0 0 0 0 0 0 0 96,131 AVG PAY 48,066 0 0 0 0 0 0 0 0 0 0 0 48,066 25-29 NO.4 6 7 4 11 9 0 0 0 0 0 0 41 TOT PAY 180,383 408,337 510,735 294,029 819,902 685,776 0 0 0 0 0 0 2,899,162 AVG PAY 45,096 68,056 72,962 73,507 74,537 76,197 0 0 0 0 0 0 70,711 30-34 NO.2 3 4 7 3 14 2 0 0 0 0 0 35 TOT PAY 121,536 213,008 288,876 517,106 217,092 1,109,075 177,795 0 0 0 0 0 2,644,488 AVG PAY 60,768 71,003 72,219 73,872 72,364 79,220 88,898 0 0 0 0 0 75,557 35-39 NO.1 3 2 3 1 12 10 3 0 0 0 0 35 TOT PAY 61,772 210,425 148,950 231,241 75,152 980,875 989,220 376,060 0 0 0 0 3,073,695 AVG PAY 61,772 70,142 74,475 77,080 75,152 81,740 98,922 125,353 0 0 0 0 87,820 40-44 NO.1 1 1 0 1 8 12 8 3 0 0 0 35 TOT PAY 56,029 68,466 89,092 0 76,073 660,133 1,129,372 871,449 347,661 0 0 0 3,298,275 AVG PAY 56,029 68,466 89,092 0 76,073 82,517 94,114 108,931 115,887 0 0 0 94,236 45-49 NO.0 0 1 1 0 4 8 11 14 1 0 0 40 TOT PAY 0 0 75,288 79,183 0 312,188 778,922 1,173,120 1,632,556 141,042 0 0 4,192,299 AVG PAY 0 0 75,288 79,183 0 78,047 97,365 106,647 116,611 141,042 0 0 104,807 50-54 NO.0 0 2 0 0 3 5 11 10 9 1 0 41 TOT PAY 0 0 145,010 0 0 264,552 495,400 1,168,653 1,143,876 1,167,261 114,807 0 4,499,559 AVG PAY 0 0 72,505 0 0 88,184 99,080 106,241 114,388 129,696 114,807 0 109,745 55-59 NO.0 0 0 0 0 0 1 2 0 2 1 0 6 TOT PAY 0 0 0 0 0 0 95,284 195,651 0 194,183 138,493 0 623,611 AVG PAY 0 0 0 0 0 0 95,284 97,826 0 97,092 138,493 0 103,935 60-64 NO.0 0 0 0 0 0 0 1 0 0 0 0 1 TOT PAY 0 0 0 0 0 0 0 104,196 0 0 0 0 104,196 AVG PAY 0 0 0 0 0 0 0 104,196 0 0 0 0 104,196 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.10 13 17 15 16 50 38 36 27 12 2 0 236 TOT AMT 515,851 900,236 1,257,951 1,121,559 1,188,219 4,012,599 3,665,993 3,889,129 3,124,093 1,502,486 253,300 0 21,431,416 AVG AMT 51,585 69,249 73,997 74,771 74,264 80,252 96,474 108,031 115,707 125,207 126,650 0 90,811 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.4 0 0 0 0 0 0 0 0 0 0 0 4 TOT PAY 217,880 0 0 0 0 0 0 0 0 0 0 0 217,880 AVG PAY 54,470 0 0 0 0 0 0 0 0 0 0 0 54,470 25-29 NO.1 8 5 3 0 3 0 0 0 0 0 0 20 TOT PAY 54,470 532,281 364,659 217,171 0 220,275 0 0 0 0 0 0 1,388,856 AVG PAY 54,470 66,535 72,932 72,390 0 73,425 0 0 0 0 0 0 69,443 30-34 NO.1 1 8 4 5 7 7 0 0 0 0 0 33 TOT PAY 54,470 65,335 591,796 281,429 364,892 543,458 641,287 0 0 0 0 0 2,542,667 AVG PAY 54,470 65,335 73,975 70,357 72,978 77,637 91,612 0 0 0 0 0 77,051 35-39 NO.0 0 4 2 3 10 9 3 0 0 0 0 31 TOT PAY 0 0 277,871 141,684 224,943 752,556 933,273 326,578 0 0 0 0 2,656,905 AVG PAY 0 0 69,468 70,842 74,981 75,256 103,697 108,859 0 0 0 0 85,707 40-44 NO.0 0 0 0 1 3 11 15 0 0 0 0 30 TOT PAY 0 0 0 0 79,874 241,454 1,042,989 1,412,121 0 0 0 0 2,776,438 AVG PAY 0 0 0 0 79,874 80,485 94,817 94,141 0 0 0 0 92,548 45-49 NO.0 0 0 0 0 1 3 13 7 2 0 0 26 TOT PAY 0 0 0 0 0 100,732 279,664 1,402,675 772,383 214,865 0 0 2,770,319 AVG PAY 0 0 0 0 0 100,732 93,221 107,898 110,340 107,433 0 0 106,551 50-54 NO.1 1 0 1 1 0 1 13 9 1 0 0 28 TOT PAY 76,547 76,328 0 93,226 82,920 0 106,971 1,347,873 998,618 106,925 0 0 2,889,408 AVG PAY 76,547 76,328 0 93,226 82,920 0 106,971 103,683 110,958 106,925 0 0 103,193 55-59 NO.0 0 2 0 0 2 1 3 3 4 0 0 15 TOT PAY 0 0 160,827 0 0 250,793 122,044 272,606 354,656 418,972 0 0 1,579,898 AVG PAY 0 0 80,414 0 0 125,397 122,044 90,869 118,219 104,743 0 0 105,327 60-64 NO.0 0 0 0 0 0 2 0 0 1 0 0 3 TOT PAY 0 0 0 0 0 0 263,288 0 0 102,730 0 0 366,018 AVG PAY 0 0 0 0 0 0 131,644 0 0 102,730 0 0 122,006 65+ NO.0 0 0 0 0 0 1 0 0 0 0 0 1 TOT PAY 0 0 0 0 0 0 101,080 0 0 0 0 0 101,080 AVG PAY 0 0 0 0 0 0 101,080 0 0 0 0 0 101,080 TOT NO.7 10 19 10 10 26 35 47 19 8 0 0 191 TOT AMT 403,367 673,944 1,395,153 733,510 752,629 2,109,268 3,490,596 4,761,853 2,125,657 843,492 0 0 17,289,469 AVG AMT 57,624 67,394 73,429 73,351 75,263 81,126 99,731 101,316 111,877 105,437 0 0 90,521 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 25,808 20-24 - - - - - - 2 51,812 25-29 - - - - - - - - 30-34 1 8,738 - - - - 2 31,193 35-39 7 137,661 3 125,874 - - 3 98,213 40-44 17 360,117 3 115,732 3 127,861 2 54,534 45-49 17 347,949 7 340,061 20 855,970 1 27,023 50-54 17 425,647 11 433,292 56 2,696,123 5 117,620 55-59 5 53,252 12 537,330 138 6,163,230 10 380,179 60-64 10 142,009 22 661,201 173 7,786,633 21 449,617 65-69 - - 24 698,298 276 11,625,513 19 472,064 70-74 - - 23 718,606 237 9,192,967 19 444,146 75-79 - - 11 243,354 91 3,558,111 22 504,874 80-84 - - 9 243,136 45 1,523,957 24 521,791 85-89 - - 4 102,278 22 631,799 14 163,266 90-94 - - - - 3 71,557 8 65,648 95-99 - - - - - - - - 100 & Over - - - - - - 1 2,461 Total 74 1,475,373 129 4,219,162 1,064 44,233,721 155 3,410,249 Average Age 49 65 67 71 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 None. Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#21-9170 Agenda Date: 6/14/2021 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Approve the new hires for acceptance into the Pension Plan as listed. SUMMARY: Name/ Job Classification/ Department Pension Eligibility Date Kristina Benton, Marine Facility Operator, Marine & Aviation 02/13/2021 Parker Moody, Police Officer,Police 03/01/2021 Robert Jessup, Police Officer, Police 03/01/2021 Dante Cuomo, Police Officer, Police 03/01/2021 Luke Ohmer, Police Officer, Police 03/01/2021 Brian Rowell, Police Officer, Police 03/01/2021 Bobby Leahy, Stormwater Technician, Engineering /Stormwater 03/01/2021 Michael Cruz, Fleet Mechanic, General Services 03/01/2021 Kathryn Eaddy, Recreation Leader, Parks & Recreation 03/01/2021 Reed Harvin, Utilities Mechanic, Public Utilities 03/15/2021 Derek Terry, Stormwater Technician, Engineering /Stormwater 03/15/2021 Brandon Johnson, Solid Waste Worker, Solid Waste 03/15/2021 Quinton Tisdale, Recreation Leader, Parks & Recreation 03/15/2021 Cedric McAffee, Parks Service Technician, Parks & Recreation 03/29/2021 Conrad Cummings, Stormwater Technician, Engineering /Stormwater 03/29/2021 Christina Lawson, Utility Dispatcher, Gas 03/29/2021 Aleksander Thorstensen, Utility Dispatcher, Gas 03/29/2021 Javante Scott, Streets & Sidewalks Technician, Parks & Recreation 03/29/2021 Dexter Waters, Solid Waste Worker, Solid Waste 03/29/2021 Jalen Jamison, Meter Reader, Utility Customer Service 03/29/2021 Cassidy Bonovitch, Librarian, Library 03/29/2021 Joshua Engberg, Fire Medic, Fire 04/12/2021 Cody Garcia, Fire Medic, Fire 04/12/2021 Noah Kidd, Fire Medic, Fire 04/12/2021 Braden Martin, Fire Medic, Fire 04/12/2021 David Padilla, Fire Medic, Fire 04/12/2021 Scott Sims, Fire Medic, Fire 04/12/2021 Christopher Vital, Fire Medic, Fire 04/12/2021 John Zawojski, Fire Medic, Fire 04/12/2021 Timothy Palmese, Parks Service Technician, Parks & Recreation 04/12/2021 Michael Williams, Streets & Sidewalks Technician, Parks & Recreation 04/12/2021 Cathy Romeo, Development Review Technician, Planning & Development 04/12/2021 Nick Vojvodich, Planner, Planning & Development 04/12/2021 Jonathan Swinney, Development Review Technician, Planning & Development 04/12/2021 Jerry Hahn, WWTP Operator, Public Utilities 04/12/2021 Mary-Kaitlyn Arnette, WWTP Operator Trainee, Public Utilities 04/12/2021 Page 1 City of Clearwater Printed on 6/8/2021 File Number: ID#21-9170 Tammy Cummings, Executive Assistant, City Manager's Office 04/12/2021 Samuel Gaston, Police Cadet, Police 04/12/2021 Robert Merck, Police Cadet, Police 04/12/2021 Billy Hooten, Survey Assistant, Engineering 04/26/2021 Jason Goiran, Traffic, Signs & Marking Tech, Engineering/Traffic 04/26/2021 Caelon Booker, Parks Service Tech, Parks & Recreation 04/26/2021 Mackenzie Espinoza, Police Telecommunicator, Police 04/26/2021 Monica Stevenson, Police Telecommunicator, Police 04/26/2021 Nicole Warder, Police Telecommunicator, Police 04/26/2021 Clinton Harris, Police Telecommunicator, Police 04/26/2021 Samuel Lorenczen, WWTP Op Trainee, Public Utilities 04/26/2021 APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 6/8/2021 Interoffice Correspondence Sheet TO: Pension Advisory Committee FROM: Jennifer Poirrier, Human Resources Director SUBJECT: Recommendation for Acceptance into Pension Plan DATE: April 28, 2021 Subject/Recommendation: Recommend approval of the new hires for acceptance into the Pension Plan as listed. Name Job Classification Department Pension Eligibility Date Kristina Benton Marine Facility Operator Marine & Aviation 02/13/2021 Parker Moody Police Officer Police 03/01/2021 Robert Jessup Police Officer Police 03/01/2021 Dante Cuomo Police Officer Police 03/01/2021 Luke Ohmer Police Officer Police 03/01/2021 Brian Rowell Police Officer Police 03/01/2021 Bobby Leahy Stormwater Technician Engineering /Stormwater 03/01/2021 Michael Cruz Fleet Mechanic General Services 03/01/2021 Kathryn Eaddy Recreation Leader Parks & Recreation 03/01/2021 Reed Harvin Utilities Mechanic Public Utilities 03/15/2021 Derek Terry Stormwater Technician Engineering /Stormwater 03/15/2021 Brandon Johnson Solid Waste Worker Solid Waste 03/15/2021 Quinton Tisdale Recreation Leader Parks & Recreation 03/15/2021 Cedric McAffee Parks Service Technician Parks & Recreation 03/29/2021 Conrad Cummings Stormwater Technician Engineering /Stormwater 03/29/2021 Christina Lawson Utility Dispatcher Gas 03/29/2021 Aleksander Thorstensen Utility Dispatcher Gas 03/29/2021 Javante Scott Streets & Sidewalks Technician Parks & Recreation 03/29/2021 Dexter Waters Solid Waste Worker Solid Waste 03/29/2021 Jalen Jamison Meter Reader Utility Customer Service 03/29/2021 Cassidy Bonovitch Librarian Library 03/29/2021 Joshua Engberg Fire Medic Fire 04/12/2021 Cody Garcia Fire Medic Fire 04/12/2021 Noah Kidd Fire Medic Fire 04/12/2021 Braden Martin Fire Medic Fire 04/12/2021 David Padilla Fire Medic Fire 04/12/2021 Scott Sims Fire Medic Fire 04/12/2021 Christopher Vital Fire Medic Fire 04/12/2021 John Zawojski Fire Medic Fire 04/12/2021 Timothy Palmese Parks Service Technician Parks & Recreation 04/12/2021 Michael Williams Streets & Sidewalks Technician Parks & Recreation 04/12/2021 Cathy Romeo Development Review Technician Planning & Development 04/12/2021 Nick Vojvodich Planner Planning & Development 04/12/2021 Jonathan Swinney Development Review Technician Planning & Development 04/12/2021 Jerry Hahn WWTP Operator Public Utilities 04/12/2021 Mary-Kaitlyn Arnette WWTP Operator Trainee Public Utilities 04/12/2021 Tammy Cummings Executive Assistant City Manager's Office 04/12/2021 Samuel Gaston Police Cadet Police 04/12/2021 Robert Merck Police Cadet Police 04/12/2021 Billy Hooten Survey Assistant Engineering 04/26/2021 Jason Goiran Traffic, Signs & Marking Tech Engineering/Traffic 04/26/2021 Caelon Booker Parks Service Tech Parks & Recreation 04/26/2021 Mackenzie Espinoza Police Telecommunicator Police 04/26/2021 Monica Stevenson Police Telecommunicator Police 04/26/2021 Nicole Warder Police Telecommunicator Police 04/26/2021 Clinton Harris Police Telecommunicator Police 04/26/2021 Samuel Lorenczen WWTP Op Trainee Public Utilities 04/26/2021 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#21-9171 Agenda Date: 6/14/2021 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Approve the following request of employees Larry Bruce, Parks and Recreation Department, James Frederick Jr, Police Department and Mary Beth Setter, Finance Department, to vest their pensions as provided by Section 2.419 of the Employees’ Pension Plan. SUMMARY: Larry Bruce, Parks Service Supervisor, Parks and Recreation Department, was employed by the City on January 22, 2007, and began participating in the Pension Plan on that date. Mr. Bruce terminated from City employment on March 12, 2021. James Frederick Jr, Police Officer, Police Department, was employed by the City on January 19, 2009, and began participating in the Pension Plan on that date. Mr. Frederick terminated from City employment on April 14, 2021. Mary Beth Setter, Accounting Manager, Finance Department, was employed by the City on August 31, 2009, and began participating in the Pension Plan on that date. Ms. Setter terminated from City employment on April 9, 2021. 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. Bruce will meet the non-hazardous duty criteria and begin collecting a pension in September 2023. Ms. Setter will meet the non-hazardous duty criteria and begin collecting a pension in December 2022. 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 Page 1 City of Clearwater Printed on 6/8/2021 File Number: ID#21-9171 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. Frederick will meet the hazardous duty criteria and begin collecting pension in February 2029. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 6/8/2021 Cover Memo City of Clearwater Main Library - Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 File Number: ID#21-9172 Agenda Date: 6/14/2021 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.4 SUBJECT/RECOMMENDATION: Approve the following request of employees James Charon, Public Utilities Department, Manuel Cordero, Parks and Recreation Department, Laura Damico, Utility Customer Service, Thomas Dawe, Police Department, Benjamin Hailey, Police Department, Richard Kelly, Police Department, Anthony Nellis, Solid Waste and Recycling, Willard Rodgers, Jr, Police Department, Judith Smith, Police Department, Laura Spelman, Police Department and William Valveri, Police Department for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. SUMMARY: James Charon, Machinist/Fabricator, Public Utilities Department, was employed by the City on April 5, 1993, and his pension service credit is effective on that date. His pension will be effective May 1, 2021. Based on an average salary of approximately $57,721.36 over the past five years, the formula for computing regular pensions and Mr. Charon’s selection of the 10 Year Certain and Life Annuity, this pension benefit will be approximately $43,378.68 annually. Manuel Cordero, Skilled Tradesworker, Parks and Recreation Department, was employed by the City on March 10, 2001, and his pension service credit is effective on that date. His pension will be effective May 1, 2021. Based on an average salary of approximately $36,969.50 over the past five years, the formula for computing regular pensions and Mr. Cordero’s selection of the 75% Joint and Survivor Annuity, this pension benefit will be approximately $17,785.92 annually. Laura Damico, Senior Business System Analyst, Utility Customer Service Department, was employed by the City on March 25, 1998, and her pension service credit is effective on that date. Her pension will be effective October 1, 2021. Based on an average salary of approximately $76,534.28 over the past five years, the formula for computing regular pensions and Ms. Damico’s selection of the Life Annuity, this pension benefit will be approximately $49,495.32 annually. Thomas Dawe, Police Sergeant, Police Department, was employed by the City on March 15, 1999, and his pension service credit is effective on that date. His pension will be effective May 1, 2021. Based on an average salary of approximately $105,917.68 over the past five years, the formula for computing regular pensions and Mr. Dawe’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $63,471.84 annually. Benjamin Hailey, Police Sergeant, Police Department, was employed by the City on March 12, 2001, and his pension service credit is effective on that date. His pension will be effective April Page 1 City of Clearwater Printed on 6/8/2021 File Number: ID#21-9172 1, 2021. Based on an average salary of approximately $109,421.32 over the past five years, the formula for computing regular pensions and Mr. Hailey’s selection of the 100% Joint and Survivor Annuity and a 30% partial lump sum, this pension benefit will be approximately $41,559.36 annually. Richard Kelly, Police Officer, Police Department, was employed by the City on July 21, 1997, and his pension service credit is effective on that date. His pension will be effective April 1, 2021. Based on an average salary of approximately $86,244.24 over the past five years, the formula for computing regular pensions and Mr. Kelly’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $52,882.68 annually. Anthony Nellis, Solid Waste Equipment Operator, Solid Waste and Recycling Department, was employed by the City on February 17, 1997, and his pension service credit is effective on that date. His pension will be effective October 1, 2021. Based on an average salary of approximately $41,935.83 over the past five years, the formula for computing regular pensions and Mr. Nellis’ selection of the Life Annuity, this pension benefit will be approximately $28,395.24 annually. Willard Rodgers, Jr, Police Sergeant, Police Department, was employed by the City on May 22, 2000, and his pension service credit is effective on that date. His pension will be effective May 1, 2021. Based on an average salary of approximately $106,618.21 over the past five years, the formula for computing regular pensions and Mr. Rodgers’ selection of the Life Annuity, this pension benefit will be approximately $66,260.64 annually. Judy Smith, Police Social Services Specialist, Police Department, was employed by the City on September 14, 1987, and her pension service credit is effective on that date. Her pension will be effective May 1, 2021. Based on an average salary of approximately $67,470.87 over the past five years, the formula for computing regular pensions and Ms. Smith’s selection of the Joint and Survivor Annuity, this pension benefit will be approximately $62,394.60 annually. Laura Spelman, Police Lieutenant, Police Department, was employed by the City on May 31, 1994, and her pension service credit is effective on that date. Her pension will be effective April 1, 2021. Based on an average salary of approximately $120,358.39 over the past five years, the formula for computing regular pensions and Ms. Spelman’s selection of the Life Annuity and a 20% partial lump sum, this pension benefit will be approximately $73,208.04 annually. William Valveri, Police Major, Police Department, was employed by the City on March 17, 1986, and his pension service credit is effective on that date. His pension will be effective April 1, 2021. Based on an average salary of approximately $124,628.72 over the past five years, the formula for computing regular pensions and Mr. Valveri’s selection of the Joint and Survivor Annuity and a 10% partial lump sum, this pension benefit will be approximately $108,045.36 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 Page 2 City of Clearwater Printed on 6/8/2021 File Number: ID#21-9172 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 (60) 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. Charon, Mr. Cordero, Ms. Damico, Mr. Nellis and Ms. Smith 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. Dawe, Mr. Hailey, Mr. Kelly, Mr. Rodgers, Ms. Spelman and Mr. Valveri have met the hazardous duty criteria. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 3 City of Clearwater Printed on 6/8/2021