PFPB Actuarial Report 10-01-2013VILLAGE OF NORTH PALM BEACH
FIRE AND POLICE RETIREMENT FUND
ACTUARIAL VALUATION REPORT
AS OF OCTOBER 1, 2013
CONTRIBUTIONS APPLICABLE TO THE VILLAGE'S
PLAN /FISCAL YEAR ENDING SEPTEMBER 30, 2015
sow, Fos'rER & FOSTER 2
February 17, 2014
Board of Trustees
Village of North Palm Beach Fire and Police Retirement Fund
c/o Ms. Denise McNeill
The Resource Centers, LLC
4360 Northlake Blvd, Suite 206
Palm Beach Gardens, FL 33410
Re: Village of North Palm Beach
Fire and Police Retirement Fund
Dear Board:
We are pleased to present to the Board this report of the annual actuarial valuation of the Village of North
Palm Beach Fire and Police Retirement Fund. The valuation was performed to determine whether the
assets and contributions are sufficient to provide the prescribed benefits and to develop the appropriate
funding requirements for the applicable plan year.
The valuation has been conducted in accordance with generally accepted actuarial principles and
practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial Standards
Board, and reflects laws and regulations issued to date pursuant to the provisions of Chapters 112, 175
and 185, Florida Statutes, as well as applicable federal laws and regulations. In our opinion, the
assumptions used in this valuation, as adopted by the Board of Trustees, represent reasonable expectations
of anticipated plan experience.
In conducting the valuation, we have relied on personnel, plan design, and asset information supplied by
the Board of Trustees, financial reports prepared by the custodian bank, and the actuarial assumptions and
methods described in the Actuarial Assumptions section of this report. While we cannot verify the
accuracy of all this information, the supplied information was reviewed for consistency and
reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the
information and believe that it has produced appropriate results. This information, along with any
adjustments or modifications, is summarized in various sections of this report.
The undersigned is familiar with the immediate and long -term aspects of pension valuations, and meets
the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial
opinions contained herein. All of the sections of this report are considered an integral part of the actuarial
opinions.
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33412 - (234) 433 -5500 - Fax (234) 4111 -0634 - www.foster- foster.com
.Cai,:ia 42-L
To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the program has any
direct financial interest or indirect material interest in the Village of North Palm Beach, nor does anyone
at Foster & Foster, Inc. act as a member of the Board of Trustees of the Village of North Palm Beach Fire
and Police Retirement Fund. Thus, there is no relationship existing that might affect our capacity to
prepare and certify this actuarial report.
If there are any questions, concerns, or comments about any of the items contained in this report, please
contact me at 239 - 433 -5500.
Respectfully submitted,
Foster & Foster, Inc.
By: a t�
Douglas H. L I A, MAAA
Enrolle &Ac ry 411 -7778
DHL /Ike
Enclosures
Section
I
II
III
IV
V
VI
TABLE OF CONTENTS
Title Page
Introduction
a. Summary of Report 5
b. Changes Since Prior Report 7
c. Requirements of Chapter 112, 8
Part VII, Florida Statutes
Valuation Information
a. Actuarial Assumptions and
13
Methods
b. Valuation Notes
15
c. Partial History of Premium
16
Tax Refunds
d. Excess State Monies Reserve
17
Trust Fund
18
Member Statistics
a. Statistical Data
23
b. Age and Service Distribution
24
c. Member Reconciliation
25
Summary of Plan Provisions
26
Governmental Accounting Standards
28
Board Disclosure Information
4
5
The regular annual actuarial valuation of the Village of North Palm Beach Fire and Police Retirement
Fund, performed as of October 1, 2013, has been completed, and the results are presented in this Report.
The contribution amounts developed in this valuation are applicable to the plan /fiscal year ended
September 30, 2015.
The contribution requirements, compared with amounts developed in the October 1, 2012, actuarial
valuation, are as follows:
Valuation Date
10/1/2012
10 /1 /2013
Applicable Plan /Fiscal Yr. End
9/30/2014
9/30/2015
Total Required Contribution
% of Total Annual Payroll
29.22%
29.37%
Member Contributions
% of Total Annual Payroll
2.00%
2.00%
Village and State Required Contribution
% of Total Annual Payroll
27.22%
27.37%
State Contribution (1)
230,695
230,695
% of Total Annual Payroll
5.88%
5.88%
Balance from Village (1)
% of Total Annual Payroll
21.34%
21.49%
(1) The Village may use up to $230,695 in State Contributions for determining its minimum funding
requirements, based on the traditional interpretation of Chapter 99 -1, Florida Statutes. For budgeting
purposes, the required Sponsor Contribution (Village and State) is 27.37% of Pensionable Earnings for
the fiscal year ending September 30, 2015. The precise Village requirement for the year is this amount,
less actual State Contributions (up to the maximum $230,695).
Additionally, please note there is a Village receivable contribution of $8,464.43 required for the fiscal
year ending September 30, 2013. A monthly interest charge of $56 is required for each complete month
after September 30, 2013 until this deposit is made. This interest charge is based on the 8% valuation
assumption for investment return, and is required by the Division of Retirement for approval of the
Annual Report.
During the past year, there was net unfavorable experience, on the basis of the Plan's actuarial
assumptions. The primary sources of unfavorable experience included a 6.7% investment return
(Actuarial Asset Basis) that fell short of the 8.0% assumption, and lower than expected employee
turnover.
The balance of this Report presents additional details of the actuarial valuation and the general
operation of the Fund. The undersigned would be pleased to meet with the Board to discuss the
Report and answer any questions concerning its contents.
Respectfully submitted,
FOSTER & FOSTER, INC.
By: u
DouglasyfH. L zen, A, MAAA
By:
Dr D,Bal and
CHANGES SINCE PRIOR VALUATION
Plan Changes
There have been no changes in benefits since the prior valuation.
Actuarial Assumption /Method Changes
There have been no changes in assumptions or methods since the prior valuation.
8
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
10/1/2013 10/1/2012
A. Participant Data
Number Included
14,030,480
12,605,506
Actives
52
52
Service Retirees
14
13
Beneficiaries
0
0
Terminated Vested
12
8
Disability Retirees
2
2
Total
80
75
Total Annual Payroll
4,094,752
3,886,494
Payroll Under Assumed Ret. Age
3,924,428
3,757,821
Annual Rate of Payments to:
45,539
47,265
Service Retirees
313,949
282,404
Beneficiaries
0
0
Terminated Vested
129,540
129,541
Disability Retirees
79,849
78,801
B. Assets
Actuarial Value
14,030,480
12,605,506
Market Value
14,499,921
12,294,945
C. Liabilities
Present Value of Benefits
Active Members
Retirement Benefits
13,706,306
12,690,505
Disability Benefits
1,232,025
1,157,317
Death Benefits
170,418
128,411
Vested Benefits
1,221,544
892,266
Refund of Contributions
45,539
47,265
Service Retirees
4,143,099
3,916,834
Beneficiaries
0
0
Terminated Vested
1,593,711
1,472,853
Disability Retirees
1,080,280
1,089,311
Excess State Monies Reserve
200,671
123,986
Total
23,393,593
21,518,747
C. Liabilities - (Continued)
Present Value of Future Salaries
Present Value of Future
Normal Costs (Aggregate Basis)
Present Value of Future
Normal Costs (Entry Age Basis)
Normal Cost (Aggregate, Level Percent)
Present Value of Future
Member Contributions
Actuarial Accrued Liability (Aggregate Basis)
Actuarial Accrued Liability (Entry Age Basis)
Unfunded Actuarial Accrued
Liability (UAAL)
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
lnactives
Actives
Member Contributions
Total
Non - vested Accrued Benefits
Total Present Value Accrued
Benefits
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments
Assumption Changes
New Accrued Benefits
Benefits Paid
Interest
Other
W
10/1/2013 10/1/2012
35,087,840 33,674,773
9,363,113 8,913,241
5,710,698 5,437,376
1,047,225 994,643
701,757 673,495
14,030,480 12,605,506
17,682,895 16,081,371
0 0
6,817,090
6,478,997
5,865,004
4,998,059
596,832
539,806
13,278,926
12,016,862
1,020,049
1,195,631
14,298,975
13,212,493
0
0
623,051
(570,739)
1,034,170
0
Total: 1,086,482
Valuation Date
Applicable to the Fiscal Year Ending
E. Pension Cost
Normal Cost (with interest)
% of Total Annual Payroll*
Administrative Expense (with interest)
% of Total Annual Payroll*
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 0 years
(as of 10/1/13)
% of Total Annual Payroll*
Total Required Contribution
% of Total Annual Payroll*
Expected Member Contributions
% of Total Annual Payroll*
Expected Village & State Contrib.
% of Total Annual Payroll*
F. Past Contributions
Plan Year Ending:
Total Required Contribution
Village and State Requirement
Actual Contributions Made:
Members
Village
State
Total
G. Actuarial Gain (Loss)
N/A
10
10/1/2013 10/1/2012
9/30/2015 9/30/2014
27.75 27.53
1.62 1.69
0.00 0.00
29.37 29.22
2.00 2.00
27.37 27.22
9/30/2013
1,117,509
1,039,170
79,272
808,475
230,695 **
1,118,442
* Contributions developed as of 10 /1 /13 are expressed as a percentage of Payroll Under
Assumed Retirement Age at 10/1/13 of $3,924,428
** Reflects traditional interpretation of Chapter 99 -1, Florida Statutes.
H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability
as of:
Projected Unfunded
Year Accrued Liability
N/A - Aggregate Actuarial Cost Method
1. (i) 3 Year Comparison of Actual and Assumed Increases in Pensionable Compensation
Year Ended 9/30/2013
Year Ended 9/30/2012
Year Ended 9/30/2011
(ii) 3 Year Comparison of Investment Return on Actuarial Value
Year Ended
Year Ended
Year Ended
(iii) Average Annual Payroll Growth
(a) Payroll as of.
(b) Total Increase
(c) Number of Years
(d) Average Annual Rate
9/30/2013
9/30/2012
9/30/2011
6.3%
4.2%
-2.3%
Actual
6.7%
4.9%
3.9%
10/1/2013
10/1/2003
Assumed
6.0%
6.0%
6.0%
Assumed
8.0%
8.0%
8.0%
$4,094,752
2,312,228
77.1%
10.00
5.9%
11
12
STATEMENT BY ENROLLED ACTUARY
This actuarial valuation was prepared and completed by me or under my direct supervision, and I
acknowledge responsibility for the results. To the best of my knowledge, the results are
complete and accurate, and in my opinion, the techniques and assumptions used are reasonable
and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. 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.
H. n, EA, MAAE
ActUary #11 -7778
Please let us know when the report is approved by the Board and unless otherwise directed we
will provide copies of the report to the following offices to comply with Chapter 112 Florida
Stalirtec.
Mr. Keith Brinkman
Bureau of Local
Retirement Systems
Post Office Box 9000
Tallahassee, FL 32315 -9000
Ms. Sarah Carr
Municipal Police and Fire
Pension Trust Funds
Division of Retirement
Post Office Box 3010
Tallahassee, FL 32315 -3010
13
ACTUARIAL ASSUMPTIONS AND METHODS
Mortality Rate RP -2000 Table with no projection — Disabled lives are set
forward 5 years.
Based on a study of over 650 public safety funds, this table
reflects a 10% margin for future mortality improvements.
Interest Rate 8% per year compounded annually, net of investment
related expenses.
Retirement Rates The assumed rate of retirement is 5.0% for each year of
eligibility for early retirement. Below are the rates
assumed once the Member has attained normal retirement
eligibility.
Number of Years
After First Eligibility Annual Rate of
For Normal Retirement Retirement
0
60%
1
40%
2
40%
3
40%
4
40%
5+
100%
Disability Rate See table on the following page. It is assumed that 75% of
disablements are service related.
Termination Rate See table on the following page.
Salary Increases 6.0% per year until the assumed retirement age.
Post Retirement COLA 3% per year.
Payroll Growth N /A.
Administrative Expenses $61,243 - average of actual administrative expenses over the
previous two years.
Funding Method Aggregate Actuarial Cost Method.
Actuarial Asset Method All assets are valued at market value with an adjustment made to
uniformly spread actuarial investment gains and losses (as
measured by actual market value investment return against
expected market value investment return) over a five -year
period.
14
% Becoming Disabled
% Terminating
Age
During the Year
During the Year
20
0.14%
9.00%
25
0.15%
8.55%
30
0.18%
7.50%
35
0.23%
5.70%
40
0.30%
3.90%
45
0.51%
2.40%
50
1.00%
1.20%
55
1.55%
0.45%
60
0.00%
0.30%
15
VALUATION NOTES
Total Annual Pam is the projected annual rate of pay as of the valuation date of all covered Members.
Present Value of Benefits is the single sum value on the valuation date of all future benefits to be paid to current
Members, Retirees, Beneficiaries, Disability Retirees and Vested Terminations.
Normal (Current Year's) Cost Rate is determined in the aggregate as the ratio of (a) and (b) as follows:
(a) The present value of benefits for all Plan participants, less the actuarial value of assets.
(b) The present value of future compensation over the anticipated number of years of participation,
determined as of the valuation date.
The Normal Cost dollar requirement is the ratio of (a) and (b), multiplied by the Payroll Under Assumed
Retirement Age as of the valuation date.
Aggregate Actuarial Cost Method (Level Percent of Compensation) is the method used to determine required
contributions under the Plan. The use of this method involves the systematic funding of the Normal Cost
(described above).
Total Required Contribution is equal to the Normal Cost plus an adjustment for interest according to the timing
of sponsor contributions during the year.
16
PARTIAL HISTORY OF PREMIUM TAX REFUNDS
Received During
Increase from
Fiscal Year
Amount
Previous Year
1990
49,647.00
%
1991
54,960.00
10.7%
1992
51,832.00
-5.7%
1993
49,897.00
-3.7%
1994
54,214.00
8.7%
1995
58,926.00
8.7%
1996
55,501.00
-5.8%
1997
76,514.00
37.9%
1998
92,462.12
20.8%
1999
80,911.74
-12.5%
2000
78,246.11
-3.3%
2001
108,200.87
38.3%
2002
134,408.43
24.2%
2003
159,943.14
19.0%
2004
203,317.14
27.1%
2005
209,222.36
2.9%
2006
233,640.77
11.7%
2007
325,961.92
39.5%
2008
321,142.12
-1.5%
2009
221,372.40
-31.1%
2010
254,590.16
15.0%
2011
264,570.27
3.9%
2012
296,910.60
12.2%
2013
307,380.23
3.5%
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17
ASSETS
Cash and Cash Equivalents:
Short Term Investments
Prepaid Expenses
Pending Trades Receivable
Pending Trades Payable
Cash
Total Cash and Equivalents
Receivable:
Member Contributions in Transit
Village Contributions in Transit
Additional Village Contributions
State Contributions
Accrued Income
Total Receivable
Investments:
U. S. Bonds and Bills
Federal Agency Guaranteed Securities
Corporate Bonds
Stocks
Municipal Obligations
Mutual Funds:
Equity
Pooled /Common /Commingled Funds:
Real Estate
Total Investments
TOTAL ASSETS
LIABILITIES AND NET ASSETS
Liabilities:
Payable:
Unpaid Investment Expenses
Unpaid Administrative Expenses
Total Liabilities
Net Assets
TOTAL LIABILITIES AND NET ASSETS
18
BALANCE SHEET
September 30, 2013
COST VALUE MARKET VALUE
1,481,489.99
1,481,489.99
1,497.85
1,497.85
117,623.49
117,623.49
(199,111.06)
(199,111.06)
146,494.28
146,494.28
1,547,994.55
1,547,994.55
2,903.71 2,903.71
29,603.32 29,603.32
8,464.43 8,464.43
46,533.42 46,533.42
45,943.19 45,943.19
133,448.07 133,448.07
479,490.42
475,652.90
383,073.05
399,756.67
2,700,572.24
2,672,315.97
7,275,556.34
8,399,287.67
119,905.20
132,686.00
14,091.00 22,415.25
726,000.00 743,949.61
11,698,688.25 12,846,064.07
13,380,130.87 14,527,506.69
26,010.95
26,010.95
1,574.78
1,574.78
27,585.73
27,585.73
13,352,545.14 14,499,920.96
13,380,130.87 14,527,506.69
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
September 30, 2013
Market Value Basis
REVENUES
Contributions:
Member
Buy -Back
Village
State
Total Contributions
Earnings from Investments
Interest & Dividends
Miscellaneous Income
Net Realized Gain (Loss)
Unrealized Gain (Loss)
Total Earnings and Investment Gains
EXPENDITURES
Expenses:
Investment Related'
Administrative
Total Expenses
Distributions to Members:
Benefit Payments
Lump Sum PLOP Distributions
Termination Payments
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year
78,339.25
932.45
808,475.03
307,380.23
299,190.63
514.66
370,825.20
1,072,723.81
99,030.87
63,635.42
379,488.20
191,250.51
0.00
'Investment Related expenses include investment advisory, custodial and performance monitoring fees.
19
1,195,126.96
1,743,254.30
162,666.29
570,738.71
2,204,976.26
12,294,944.70
14,499,920.96
20
ACTUARIAL ASSET VALUATION
September 30, 2013
Actuarial Assets for funding purposes are developed by recognizing the total actuarial investment gain or loss for
each Plan Year over a five year period. In the first year, 20% of the gain or loss is recognized. In the second
year 40 %, in the third year 60 %, in the fourth year 80 %, and in the fifth year 100% of the gain or loss is
recognized. The actuarial investment gain or loss is defined as the actual return on investments minus the
actuarial assumed investment return. Actuarial Assets shall not be less than 80% nor greater than 120% of
Market Value of Assets.
Development of Investment Gain /Loss
Market Value of Assets, 09/30/2012 12,294,945
Contributions Less Benefit Payments & Admin Expenses 560,753
Expected Investment Earnings on Market Value* 1,006,026
Actual Net Investment Earnings 1,644,223
2013 Actuarial Investment Gain /(Loss) 638,197
*Expected Investment Earnings = 0.08 * (12,294,945 + .5 * 560,753)
Development of Actuarial Value of Assets
Market Value of Assets, 09/30/2013 14,499,921
(Gains) /Losses Not Yet Recognized (469,441)
Actuarial Value of Assets, 09/30/2013 14,030,480
(A) 09/30/2012 Actuarial Assets: 12,605,506
(I) Net Investment Income:
1. Interest and Dividends
299,705
Gains /Losses Not Yet Recognized
370,825
3. Change in Actuarial Value
Plan Year
4. Investment Expenses
Amounts Not Yet Recognized by Valuation Year
Ending
Gain /Loss
2013
2014
2015
2016 2017
09/30/2009
(839,114)
0
0
0
0 0
09/30/2010
(107,293)
(21,457)
0
0
0 0
09/30/2011
(1,104,133)
(441,652)
(220,825)
0
0 0
09/30/2012
703,320
421,992
281,328
140,664
0 0
09/30/2013
638,197
510,558
382,919
255,280
127,641 0
Total
469,441
443,422
395,944
127,641 0
Development of Investment Gain /Loss
Market Value of Assets, 09/30/2012 12,294,945
Contributions Less Benefit Payments & Admin Expenses 560,753
Expected Investment Earnings on Market Value* 1,006,026
Actual Net Investment Earnings 1,644,223
2013 Actuarial Investment Gain /(Loss) 638,197
*Expected Investment Earnings = 0.08 * (12,294,945 + .5 * 560,753)
Development of Actuarial Value of Assets
Market Value of Assets, 09/30/2013 14,499,921
(Gains) /Losses Not Yet Recognized (469,441)
Actuarial Value of Assets, 09/30/2013 14,030,480
(A) 09/30/2012 Actuarial Assets: 12,605,506
(I) Net Investment Income:
1. Interest and Dividends
299,705
2. Realized Gains (Losses)
370,825
3. Change in Actuarial Value
292,722
4. Investment Expenses
(99,031)
Total
864,221
(B) 09/30/2013 Actuarial Assets: 14,030,480
Actuarial Asset Rate of Return = 2I/(A +B -I): 6.7%
Market Value of Assets Rate of Return: 13.1%
10/01/2013 Limited Actuarial Assets: 14,030,480
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
September 30, 2013
Actuarial Asset Basis
REVENUES
Contributions:
Member
Buy -Back
Village
State
Total Contributions
Earnings from Investments
Interest & Dividends
Miscellaneous Income
Net Realized Gain (Loss)
Change in Actuarial Value
Total Earnings and Investment Gains
EXPENDITURES
Expenses:
Investment Related'
Administrative
Total Expenses
Distributions to Members:
Benefit Payments
Lump Sum PLOP Distributions
Termination Payments
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year
78,339.25
932.45
808,475.03
3 07,3 80.23
299,190.63
514.66
370,825.20
292,721.81
99,030.87
63,635.42
379,488.20
191,250.51
0.00
`Investment Related expenses include investment advisory, custodial and performance monitoring fees.
2 Net Assets may be limited for actuarial consideration.
21
1,195,126.96
963,252.30
162,666.29
570,738.71
1,424,974.26
12,605,505.70
14,030,479.96
22
RECONCILIATION OF VILLAGE'S SHORTFALL CONTRIBUTION FOR THE
FISCAL YEAR ENDED (FYE) SEPTEMBER 30, 2013
(1) Village and State Required Contribution Rate 26.53%
(from the October 1, 2011 actuarial valuation)
(2) Pensionable Payroll Derived from Member Contributions $3,916,962.50
(3) Required Village and State Contribution (1) x (2) 1,039,170.15
(4) Less Allowable State Contribution (230,695.12)
(5) Equals Required Village Contribution 808,475.03
(6) Less Actual Village Contributions (800,010.60)
(7) Equals Village's Shortfall Contribution as of $8,464.43
September 30, 2013
pal
STATISTICAL DATA
10/1/2010
10/1/2011
10/1/2012
10 /1 /2013
Number
52
53
52
52
Average Current Age
39.5
40.2
39.1
39.6
Average Age at Employment
31.6
31.3
30.1
30.0
Average Past Service
7.9
8.9
9.0
9.6
Average Annual Salary
$75,435
$72,680
$74,740
$78,745
24
AGE AND SERVICE DISTRIBUTION
PAST SERVICE
AGE
0
1
2
3
4
5 -9
10 -14
15 -19
20 -24
25 -29
30+
Total
15 -19
0
0
0
0
0
0
0
0
0
0
0
0
20 -24
0
0
0
0
0
0
0
0
0
0
0
0
25-29
0
2
2
1
3
2
0
0
0
0
0
10
30-34
0
1
0
0
1
7
0
0
0
0
0
9
35 -39
0
0
0
0
0
6
0
0
0
0
0
6
40 -44
1
0
0
0
0
4
3
2
1
0
0
11
45 -49
0
0
0
0
0
3
2
0
0
0
0
5
50 -54
0
0
0
0
0
1
3
0
0
2
0
6
55 -59
0
0
0
0
0
1
1
0
0
1
1
4
60 -64
0
0
0
0
0
1
0
0
0
0
0
1
65+
0
0
0
0
0
0
0
0
0
0
0
0
Total
1
3
2
1
4
25
9
2
1
3
1
52
25
VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation 10/1/12
52
b. Terminations
i. Vested (partial or full) with deferred
0
benefits
Retirees,
ii. Non - vested or full lump sum distribution
0
received
c. Deaths
Vested
i. Beneficiary receiving benefits
0
ii. No future benefits payable
0
d. Disabled
0
e. Retired
1
f. Voluntary Withdrawal
0
g. Continuing participants
51
h. New entrants
1
i. Total active life participants in valuation
52
2. Non - Active lives (including beneficiaries receiving benefits)
Service
Retirees,
Vested
Receiving
Receiving
Receiving
Death
Disability
Vested
Benefits
Benefits
Benefits
Deferred
Total
a. Number prior
13
0
2
8
23
valuation
b. In
1
0
0
4
5
c. Out
0
0
0
0
0
d. Number current
14
0
2
12
28
valuation
26
Eligibilily
Credited Service
Salary
Average Final Compensation
Member Contributions
Village and State Contributions
Normal Retirement
Date
SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 2011 -22)
Full -time employees who are classified as Police Officers or
Firefighters participate as a condition of employment.
Total years and fractional parts of years of employment with the
Village as a Police Officer or Firefighter.
Gross Compensation, excluding bonuses, sick and vacation pay,
but including overtime.
Average Salary for the 5 best years of the 10 years immediately
preceding retirement or termination.
2.0% of Salary.
Remaining amount required in order to pay current costs and
amortize unfunded past service cost, if any, as provided in Part
VII, Chapter 112, F.S.
Earlier of. 1) age 55, regardless of Credited Service, or 2) age 52
and 25 years of Credited Service.
Benefit 2.50% of Average Final Compensation times Credited Service,
up to 24 years; plus 0% of Average Final Compensation times
Credited Service for each year after 24 years up to 30 years; plus
2.0% of Average Final Compensation times Credited Service for
each year in excess of 30.
Form of Benefit Ten Year Certain and Life Annuity (options available).
Early Retirement
Eligibility Age 50, regardless of Credited Service.
Benefit Accrued benefit, reduced 3% per year that the benefit
commencement date precedes the Normal Retirement Date.
Vesting
Schedule 100% after 10 years of Credited Service.
Benefit Amount Member will receive the vested portion of his (her) accrued
benefit payable at the otherwise Early (reduced) or Normal
Retirement Date.
27
Disability
Eligibility
Service Incurred
Non - Service Incurred
Exclusions
Benefit
Covered from Date of Employment.
10 years of Credited Service.
Disability resulting from use of drugs, illegal participation in
riots, service in military, etc.
Benefit accrued to date of disability but not less than 42% of
Average Final Compensation (25% for Non - Service Incurred).
Duration Payable for life (with 120 payments guaranteed) or until
recovery (as determined by the Board). Optional forms of
payment are available.
Death Benefits
Pre - Retirement
Eligible for Retirement Benefit payable as if Member retired on the date of death,
selected a 50% Joint and Survivor annuity, and then passed
away, with 50% of the benefit then continuing to the survivor
for life.
Vested (not eligible for retirement) Monthly accrued benefit payable to designated beneficiary for
10 years at otherwise Early (reduced) or Normal (unreduced)
Retirement Date.
Non - Vested Refund of accumulated contributions.
Post - Retirement Benefits payable to beneficiary in accordance with option
selected at retirement.
Cost of Living Increases Up to 3% increase effective each October I't in accordance with
the Consumer Price Index, applied to all types of benefits.
Board of Trustees Two Members shall be Fire employees, and two shall be Police
employees, all elected by the Village Fire and Police employees.
The other Member, who will be the Chairman of the Board,
must be a resident of the Village and shall be selected by the
Village Council.
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29
DISCLOSURE INFORMATION PER STATEMENT NO. 27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
ANNUAL PENSION COSTS AND RELATED INFORMATION
Contribution rates as of 9/30/13
Village and State 26.53%
Plan Members 2.00%
Actuarially Determined Contribution
1,039,170
(Village and State)
Contributions made
1,039,170
Actuarial valuation date
10/1/2011
Actuarial cost method
Aggregate
Amortization method
N/A
Remaining amortization period
N/A
Asset valuation method
5 Year Smooth (Market)
Actuarial assumptions:
Investment rate of return
8.0%
Projected salary increase*
6.0%
* Includes inflation at
4.0%
Post Retirement COLA
3.0%
THREE YEAR TREND INFORMATION
Annual
Percentage
Net
Year Pension
of APC
Pension
Ending Cost (APC)
Contributed
Obligation
9/30/2013 1,047,307
99.22%
(233,799)
9/30/2012 976,471
99.26%
(241,936)
9/30/2011 878,197
99.30%
(249,203)
30
DISCLOSURE INFORMATION PER STATEMENT NO. 27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
DEVELOPMENT OF NET PENSION OBLIGATION (NPO)
This municipal Defined Benefit Plan has been subject to the minimum funding
standards since the adoption of the "Florida Protection of Public Employee
Retirement Benefits Act" (Part VII of Chapter 112, Florida Statutes) in 1980.
Accordingly, the sponsor has funded the actuarially determined required contributions
for all years from October 1, 1987, through the transition date, October 1, 1997.
Thus, the NPO on October 1, 1997, is 0.
The recent development of the Net Pension Obligation is as follows:
9/30/11
9/30/12
9/30/13
Actuarially Determined
Contribution (A)
869,407
968,933
1,039,170
Interest on NPO
(20,427)
(19,936)
(19,355)
Adjustment to (A)
29,217
27,474
27,492
Annual Pension Cost
---- - - - - --
878,197
---- - - - - --
976,471
---- - - - - --
1,047,307
Contributions Made
872,066
969,204
1,039,170
Increase in NPO
---- - - - - --
6,131
---- - - - - --
7,267
---- - - - - --
8,137
NPO Beginning of Year
(255,334)
(249,203)
(241,936)
NPO End of Year
---- - - - - --
(249,203)
---- - - - - --
(241,936)
---- - - - - --
(233,799)