10-01-2009 Actuarial Valuation Report General Employees Retirement FundGR.SGabriel Roeder Smith & Company
Consultants & Actuaries
VILLAGE OF NORTH PALM BEACH GENERAL RETIREMENT FUND
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2009
ANNUAL EMPLOYER CONTRIBUTION DETERMINED FOR PLAN YEAR ENDING SEPTEMBER 30, 2011
Win
Gabriel Roeder Smith & Company One Fast Broward Blvd. 954.527.1616 phone
GRS Consultants & Actuaries Suite 505 954.S2S.0083 fax
Ft. Lauderdale, FL 33301 -1827 www.gabrielroeder.com
April 19, 2010
Board of Trustees of the
Village of North Pahn Beach
General Retirement Fund
North Palm Beach, Florida
Dear Board Members.
We are pleased to present our October 1, 2009 Actuarial Valuation Report for the Plan. The purpose of the
Report is to set forth required contribution levels, to disclose plan assets and actuarial liabilities, to comment
on funding progress and to provide supporting information regarding the operation of the Plan. This Report
is also designed to comply with requirements of the State.
The valuation was performed on the basis of employee, retiree and financial information supplied by the
City. Although we did not audit this information, it was reviewed for reasonableness and comparability to
prior years.
The benefits valued are outlined at the end of the Report. Actuarial assumptions and the actuarial cost
method are also described herein. Any changes in benefits, assumptions or methods are described in the
first section.
This actuarial valuation and/or cost determination was prepared and completed by me or under my direct
supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are
complete and accurate. In my opinion, the techniques and assumptions used are reasonable, meet the
requirements and intent of Part VII, Chapter 112, Florida Statutes, and are based on generally accepted
actuarial principles and practices. There is no benefit or expense to be provided by the plan and/or paid
from the plan's assets for which liabilities or current costs have not been established or otherwise taken into
account in the valuation. All known events or trends which may require a material increase in plan costs or
required contribution rates have been taken into account in the valuation.
As indicated below, one of the undersigned is a Member of the American Academy of Actuaries (MAAA)
and meets the Qualification Standards of the Academy of Actuaries to render the actuarial opinion herein.
We will be pleased to answer any questions pertaining to the valuation and to meet with you to review this
Report.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
B co "w9-- X11 � '✓�
J. tephen Pahnquist, AS MAAA, FCA Duane Howison, FSA
Enrolled Actuary No. 08 -01560 Enrolled Actuary No. 08 -06169 ,
TABLE OF CONTENTS
Section Title pale
A Discussion of Valuation Results 1
B Valuation Results
1.
Participant Data
4
2.
Annual Required Contribution (ARC)
5
3.
Actuarial Value of Benefits & Assets
6
4.
Calculation of Employer Normal Cost
7
5.
Liquidation of Unfunded Liability
8
6.
Actuarial Gains and Losses
10
7.
Recent History of Valuation Results
15
8.
Recent History of Required. and
38
Actual Contributions
18
9.
Actuarial Assumptions and Cost Method
20
10.
Glossary of Terms
22
C Pension Fund Information
1. Statement of Assets
25
2. Income and Disbursements
26
3. Actuarial Value of Assets
27
4. Investment Rate of Return
28
D Financial Accounting Information
1. FASB No. 35
29
2, GASB No. 25
30
3. GASB No. 27
32
E Miscellaneous Information
1. Reconciliation of Membership Data
34
2. Age /Service /Salary Distributions
35
F Summary of Plan Provisions
38
SECTION A
DISCUSSION OF VALUATION RESULTS
GRS
1
DISCUSSION OF VALUATION RESULTS
Comparison of Required Emplover Contributions
A comparison of the required employer contribution developed in this year's and last year's actuarial
valuations is as follows:
The contribution has been adjusted for interest on the basis that employer contributions are made in
equal payments on a bi- weekly basis. The actual employer contribution during the year ending September
30, 2009 was $765,381 compared to the minimum required contribution of $761,943.
Revisions in Benefits
There have been no changes in benefits since the last valuation.
Revisions in Actuarial Assumptions or Methods
There have been no changes in actuarial assumptions or methods since the last valuation. We
recommend that the mortality rates be reduced to take into account mortality improvements.
Actuarial Experience
There was an actuarial loss of $31,231 for the year which means that actual experience was less
favorable than expected. There was a loss due to the recognized asset return of 3.8% versus the expected
8.0 %. The return on market value was 3.8 %. Offsetting the investment loss were experience gains resulting
from more turnover than expected and from lower than expected salary increases. Half of the turnover was
due to one -time events (position eliminations). The net gain for the year translates into an increase in
annual employer contributions of 0.12% of covered payroll.
GRS
For FYE 9/30/11
For FYE 9/30/10
Based on
Based on
10/1/2009
10/1/2008
Increase
Valuation
Valuation
(Decrease)
Required Employer Contribution
$ 753,881
$ 734,636
$ 19,245
As % of Covered Payroll
24.41 %
23.72 %
0.69 %
The contribution has been adjusted for interest on the basis that employer contributions are made in
equal payments on a bi- weekly basis. The actual employer contribution during the year ending September
30, 2009 was $765,381 compared to the minimum required contribution of $761,943.
Revisions in Benefits
There have been no changes in benefits since the last valuation.
Revisions in Actuarial Assumptions or Methods
There have been no changes in actuarial assumptions or methods since the last valuation. We
recommend that the mortality rates be reduced to take into account mortality improvements.
Actuarial Experience
There was an actuarial loss of $31,231 for the year which means that actual experience was less
favorable than expected. There was a loss due to the recognized asset return of 3.8% versus the expected
8.0 %. The return on market value was 3.8 %. Offsetting the investment loss were experience gains resulting
from more turnover than expected and from lower than expected salary increases. Half of the turnover was
due to one -time events (position eliminations). The net gain for the year translates into an increase in
annual employer contributions of 0.12% of covered payroll.
GRS
Analysis of Chance in Employer Contributions
The components of change in the required contribution are as follows:
Contribution rate last year
Change in Actuarial Assumption
Payment on unfunded liability
Experience gain/loss
Change in administrative expense
Contribution rate this year
Funded Ratio
23.72 %
0.00
0.47
0.12
0.10
24.41
2
The funded ratio this year is 57.9% compared to 57.4% last year. The ratio is equal to the actuarial
value of assets divided by the actuarial accrued (past service) liability.
Variability of Future Contribution Rates
The Actuarial Cost Method used to determine the required contribution is intended to produce
contribution rates which are generally level as a percent of payroll. Even so, when experience differs
from the assumptions, as it often does, the employer's contribution rate can vary significantly from year-
to -year.
Over time, if the year -to -year gains and losses offset each other, the contribution rate would be
expected to return to the current level, but this does not always happen.
The Actuarial Value of Assets exceeds the Market Value of Assets by $840,485 as of the
valuation date (see Section Q. This difference will be gradually recognized over the next five years in
the absence of offsetting gains. In turn, the computed employer contribution rate will increase by
approximately 3.4% of covered payroll over the same period.
"JX3
Relationship to Market Value
If Market Value had been the basis for the valuation, the City contribution rate would have been
27.78 %. In the absence of other gains and losses, the City contribution rate should increase to that level
over the next several years.
Conclusion
The remainder of this Report includes detailed actuarial valuation results, financial information,
miscellaneous information and statistics, and a summary of plan provisions.
GRS
SECTION B
VALUATION RESULTS
GRS
4
PARTICIPANT DATA
October 1, 2009
October 1, 2008
ACTIVE MEMBERS
Number
62
64
Covered Annual Payroll
$
2,969,626
$
2,977,995
Average Annual Payroll
$
47,897
$
46,531
Average Age
47.6
47.7
Average Past Service
11.8
11.1
Average Age at Hire
35.8
36.6
RETIREES & BENEFICIARIES & DROP
Number
7
10
Annual Benefits
$
29,649
$
45,694
Average Annual Benefit
$
4,236
$
4,569
Average Age
73.0
75.7
DISABILITY RETIREES
Number
0
0
Annual Benefits
$
0
$
0
Average Annual Benefit
$
0
$
0
Average Age
0.0
0.0
TERMINATED VESTED MEMBERS
Number
50
50
Annual Benefits
$
300,474
$
324,419
Average Annual Benefit
$
6,009
$
6,488
Average Age
52.1
50.9
���
ANNUAL REQUIRED CONTRIBUTION (ARC)
A. Valuation Date
October 1, 2009
October 1, 2008
B. ARC to Be Paid During
Fiscal Year Ending
9/30/2011
9/30/2010
C. Assumed Date of Employer Contrib.
Bi- Weekly
Bi- Weekly
D. Annual Payment to Amortize
Unfunded Actuarial Liability
$ 237,089
$ 224,274
E. Employer Normal Cost
459,996
454,988
F. ARC if Paid on the Valuation
Date: D +E
697,085
679,262
G. ARC Adjusted for Frequency of
Payments
724,967
706,431
H. ARC as % of Covered Payroll
24.41 %
23.72 %
1. Assumed Rate of Increase in Covered
Payroll to Contribution Year
4.00 %
4.00 %
J. Covered Payroll for Contribution Year
3,088,411
3,097,115
K. REC for Contribution Year: H x J
753,881
734,636
L. REC as % of Covered Payroll in
Contribution Year: M _ J
24.41 %
23.72 °h
GRS
M
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date
October 1, 2009
October 1, 2008
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits
$ 11,374,885
$ 10,947,204
b. Vesting Benefits
908,665
912,255
c. Disability Benefits
-
-
d. Preretirement Death Benefits
329,780
323,397
e. Return of Member Contributions
4,532
6,727
f. Total
12,617,862
12,189,583
2. Inactive Members
a. Service Retirees & Beneficiaries
121,011
210,514
b. Disability Retirees
-
-
c. Terminated Vested Members
1,452,713
1,579,453
d. Total
1,573,724
1,789,967
3. Total for All Members
14,191,586
13,979,550
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25
10,456,011
10,138,981
D. Actuarial Value of Accumulated Plan
Benefits per FASB No. 35
7,665,477
7,331,193
E. Plan Assets
1. Market Value
5,208,323
5,014,956
2. Actuarial Value
6,048,808
5,824,447
F. Actuarial Present Value of Projected
Covered Payroll
26,025,665
26,209,925
G. Actuarial Present Value of Projected
- Member - Contributions
1,335,567
1,340355
f--,T:) 1kJ
CALCULATION OF EMPLOYER NORMAL COST
A. Valuation Date
October 1, 2009
October 1, 2008
B. Actuarial Present Value of Projected
Benefits
$ 14,191,586
$ 13,979,550
C. Actuarial Value of Assets
6,048,808
5,824,447
D. Unfunded Actuarial Accrued Liability
2,939,401
2,951,925
E. Actuarial Present Value of Projected
Member Contributions
1,335,567
1,340,355
F. Actuarial Present Value of Projected
Employer Normal Costs: B -C -D -E
3,867,810
35862,823
G. Actuarial Present Value of Projected
Covered Payroll
26,025,665
26,209,925
H. Employer Normal Cost Rate: F/G
14.86 %
14.74 %
I. Covered Annual Payroll
2,969,626
2,977,995
J. Employer Normal Cost: H x I
441,286
438,956
K. Assumed Amount of Administrative
Expenses
18,710
16,032
L. Total Employer Normal Cost: J +K.
459,996
454,988
M. Employer Normal Cost as % of
Covered Payroll
15.49 %
15.28 %
GRS
8
LIQUIDATION OF THE UNFUNDED FROZEN ACTUARIAL ACCRUED LIABILITY
A. Derivation of the Current UAAL
Original UAAL
1.
Last Year's UAAL
$ 2,951,925
2.
Last Year's Employer Normal Cost
505,658
3.
Last Year's Contributions
765,381
4.
Interest at the Assumed Rate on:
a. 1 and 2 for one year
276,607
Amount
b. 3 from dates paid
29,408
Payment
c. a - b
2471199
5.
This Year's UAAL Prior to Revision:
$ 478,121
$ 40,291
1 + 2 - 3 + 4c
2,939,401
6.
Change in UAAL Due to Plan Amendments
1,487,823
122,364
and/or Changes in Actuarial Assumptions
0
7.
This Year's Revised UAAL: 5 + 6
2,939,401
B. UAAL Amortization Period and Payments
Original UAAL
Current UAAL
Amortization
Date
Period
Years
Established
(Years)
Amount
Remaining
Amount
Payment
10/1/99
30
$ 535,528
20
$ 478,121
$ 40,291
10 /1 /00
30
1,426,008
21
1,487,823
122,364
10/1/03
30
700,742
24
735,099
56,827_
10/1/03
30
(77,576)
24
(81,379)
(6,291)
1011105
30
313,729
26
319,737
23,898
2,939,401
237,089
Totals
GRS
C. Amortization Schedule
The UFAAL is being amortized as a level percent of payroll over the number of years remaining in the
amortization period. The expected amortization schedule is as follows:
Amortization Schedule
Year
Expected UAAL
2009
$ 2,939,401
2010
2,918,487
2011
2,891,915
2012
2,859,161
2013
2,819,666
2014
2,772, 828
2019
2,403,673
2024
1,726, 834
2029
587,087
2034
35,191
2035
-
GRS
10
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 has been computed as follows:
A.
Employer Normal Cost as a
Percentage of Covered Payroll
1. Last Valuation
14.74 %
2. Current Valuation
14.86
3. Difference: 1 - 2
(0.12)
B.
Actuarial Present Value of
$ 26,025,665
Projected Covered Payroll
C.
Net Actuarial Gain (Loss): A3 x B
(31,231)
D.
Gain (Loss) Due to Investments
(245,607)
E.
Gain (Loss) from Other Sources
214,376
�
IXJ
Net actuarial gains in previous years have been as follows:
Year Ended
Change in Employer
Normal Cost Rate
Gain (Loss)
9/30/89
(1.27) %
$ 247,650
9/30/90
0.99
(208,184)
9/30/91
(1.89)
449,984
9/30/92
(0.46)
116,603
9/30/93
(0.85)
220,810
9/30/94
0.25
(72,092)
9/30/95
(0.75)
218,857
9/30/96
(0.62)
119,415
9/30/97
(1.09)
238,623
9/30/98
(0.63)
143,651
9/30/99
(1.14)
266,397
9/30/00
(0.42)
98,421
9/30/01
(0.99)
266,154
9/30/02
2.05
(526,865)
9/30/03
2.01
(566,552)
9/30/04
4.74
(1,665,087)
9/30/05
(0.06)
17,103
9/30/06
(1.24)
403,362
9/30/07
(1.34)
375,088
9/30/08
(0.43)
112,703
9/30/09
0.12
(31,231)
GRS
11
12
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 table shows the actual fiend earnings
and salary increase rates compared to the assumed rates for the last few years:
Year
Ending
Investment Return
Salary Increases
Actual
Assumed
Actual
Assumed
9/30/1985
13.8 %
7.0 %
5.3 %
6.0 %
9/30/1986
27.2
7.0
12.8
6.0
9/30/1987
16.4
7.0
8.6
6.0
9/30/1988
(6.3)
7.0
6.8
6.0
9/30/1989
19.4
7.0
5.2
6.0
9/30/1990
(0.6)
7.0
10.4
6.0
9/30/1991
19.7
7.0
5.0
6.0
9/30/1992
11.8
7.0
7.7
6.0
9/30/1993
9.7
7.0
0.8
6.0
9/30/1994
6.0
7.0
5.9
6.0
9/30/1995
8.7
7.0
4.6
6.0
9/30/1996
9.3
8.0
4.4
6.0
9/30/1997
11.5
8.0
4.3
6.0
9/30/1998
10.9
8.0
4.3
6.0
9/30/1999
13.2
8.0
2.8
6.0
9/30/2000
12.7
8.5
10.3
5.5
9/30/2001
7.9
8.5
3.4
5.5
9/30/2002
2.5
8.5
6.8
5.5
9/30/2003
1.6
8.5
7.2
5.5
9/30/2004
8.6
8.5
23.9
5.5
9/30/2005
8.7
8.5
(2.9)
5.5
9/30/2006
8.1
8.0
8.5
5.5
9/30/2007
9.0
8.0
8.0
5.5
9/30/2008
4.9
8.0
4.0
5.5
9/30/2009
3.8
8.0
3.4
5.5
- Averages
9.3 %
-__
6.4 %
- --
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.
Gjxj
13
History of Investment Return Based on Actuarial Value of Assets
30% 30%
25% 25%
20% 20%
15% 15%
10% 10%
5% 5%
0% i i 0%
-5% -5%
-10% -10%
ANA xR,tO \.., �xW fix.." �� q�°�q�� q�� ��g ���7� �� ��g�q�°J4 ��1°l��p ��� ql� q�d � �� ��ph �Q ��� ��� �e
Plan Year End
�— Actual —* Assumed
History of Salary Increases
GRS
24%
24%
20%
20%
16%
16%
12%
112%
8%
8%
4%
4%
0%
f i i i
0%
-4%
-4%
Plan Year End Compared to Previous Year
IActuaI —*— Assumed
GRS
14
Actual (A) Compared to Expected (E) Decrements
Among Active Employees
Number
Added
Service &
Active
During
DROP
Disability
Terminations
Members
Vested Other Totals
Year
Year
Retirement
Retirement
Death
End of
A
I E
A
I E
A
I E
A
E
I A
A
A
E
Ended
Year
9/30/2003
7
3
0
7
0
0
0
0
2
1
3
3
92
9/30/2004
10
8
5
8
0
0
0
0
1
2
3
3
94
9/30/2005
12
22
10
7
0
0
0
0
9
3
12
3
84
9/30/2006
15
9
0
2
0
0
1
0
4
4
8
2
90
9/30/2007
3
21
2
4
0
0
0
0
8
11
19
4
72
9/30/2008
6
14
6
3
0
0
0
0
7
1
8
2
64
9/30/2009
4
6
2
2
0
0
0
0
3
1
4
2
62
9/30/2010
2
0
0
2
7 Yr Totals *
57
83
25
33
0
0
1
0
34
23
57
19
GRS
15
RECENT HISTORY OF VALUATION RESULTS
Number of
Covered
Actuarial
Employer Normal Cost
Valuation
Members
Annual
Value
% of
Active Inactive
Date
Payroll
of Assets
UFAAL
Amount
Payroll
10/1/88
10/1/89
71 37
83 37
$ 1,473,422
1,715,049
$ 1,743,234
2,105,292
$ 0
0
$ 176,109
184,804
12.0 %
10.8
10/1/90
79 37
1,848,726
2,134,052
0
232,938
12.6
10/1/91
86 34
2,022,569
2,531,076
0
219,669
10.9
10/1/92
87 35
2,153,587
2,645,252
0
216,069
10.0
10/1/93
91 35
2,241,595
3,018,716
0
205,294
9.2
10/1/94
96 35
2,471,296
3,209,342
0
258,406
10.5
10/1/95
93 35
2,451,309
3,471,658
0
245,007
10.0
10/1/96
80 39
2,251,610
3,805,073
0
229,496
10.2
10/1/97
79 40
2,380,024
4,301,968
0
214,402
9.0
10/1/98
79 42
2,435,518
4,574,342
0
204,401
8.4
10/1/99
83 46
2,532,741
5,179,781
535,528
247,653
9.8
10 /1 /00
84 45
2,761,773
5,732,329
1,891,134
285,337
10.3
10 /l /01
93 45
3,127,313
6,312,447
1,899,439
297,452
9.5
10/1/02
88 49
3,076,493
6,193,676
1,900,967
359,426
11.7
10/1/03
92 48
3,443,843
6,759,012
2,555,216
451,615
13.1
10/1/04
94 48
4,275,981
6,578,832
2,618,609
760,337
17.8
1011105
84 55
3,220,258
3,817,605
2,956,402
596,120
18.5
10/1/06
90 56
3,680,960
5,283,023
2,970,967
628,515
17.1
10 /1/07
72 59
3,238,894
6,481,382
2,944,876
505,658
15.6
1011/08
64 60
2,977,995
5,824,447
2,951,925
454,988
15.3
10/1/09
62 57
2,969,626
6,048,808
2,939,401
459,996
15.5
GRS
160
140
120
100
80
60
40
20
0
$4.5
$4.0
$3.5
$3.0
$2.5
$2.0
$1.5
$1.0
$0.5
- $0.0-
Recent History of Number of Members
�3 O\q� �a , x0 \q ��� ��a�� \� p \� �o xQ n \O ��O ��Q1' l' OHO ��Cc;� \� O \��lt�� Q
Actuarial Valuation Date
NInactive Members MActiveMembers
Recent History of Covered Annual Payroll ($Mill)
O\ q�,\� O�\O\c� a5 \� � ' 4h a C' � � Q `Zh S O\e \ \ \d\ �\O� \ \�
Actuarial Valuation Date
�
IXJ
16
Recent History of Employer Normal Cost ($000)
$800
$700
$600
$500
$400
$300
$200
$100
$0
0X3 eX'a o`,° o``� �'' o�aA o` o``l( o``�^ oC °X) cX°° oX` o` °' o§11 -ox ") o\°� o'z� o`o� °\ `�
1 \ 1 \ \ 1 1 1 \ 1 1 'I 1 1 1 1 1 \ 1
Actuaria 1 Va luation Date
®Employer NC Amount —4-- NC as % of Payroll
GRS
24%
20%
16%
12%
8%
4%
0%
17
RECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
End of Year To
Required Contribution
Valuation
Which
Actual
Valuation
Contribution
Applies
% of
Amount
Payroll
10/1/88
9/30/89
$ 183,611
12.46%
$ 184,000
10/1/89
9/30/90
192,677
11.23
195,000
10/1/90
9/30/91
242,868
13.14
245,000
10/1/91
9/30/92
229,034
11.42
230,000
10/1/92
9/30/93
225,280
10.46
226,000
10/1/93
9/30/94
214,046
9.55
223,000
10/1/94
9/30/95
269,422
10.90
270,000
10/1/95
9/30/96
259,751
10.65
260,000
10/1/96
9/30/97
240,637
10.69
245,169
10/1/97
9/30/98
224,810
9.45
250,721
10/1/98
9/30/99
214,323
8.80
227,112
10/1/99
9/30/00
292,866
11.56
372,744
10 /1 /00
9/30/01
415,152
15.03
447,128
10/1/01
9/30/02
430,411
13.76
467,750
10/1/02
9/30/03
502,855
16.35
503,220
10/1/02
9/30/04
523,127
16.35
524,000
10/1/03
9/30/05
662,237
18.49
662,237
10/1/04
9/30/06
1,007,695
22.66
1,007,695
1011105
9/30/07
866,069
25.86
873,854
10/1/06
9/30/08
875,126
22.86
876,712
10/1/07
9/30/09
761,943
22.62
765,381
10/1/08
9/30/10
734,636
23.72
na
10/1/09
9/30/11
753,881
24.41
na
k3lx�
18
$1,200
$1,000
$800
$600
$400
$200
$0
GRS
Recent History of Required and Actual Contributions ($000)
a\?�`��O \a �\� P\aC`) qua\a�j�\q(,Na \�.��\"cb C) \pS q - -, \,'L \�^,Q\� �\o�a\�b����\p �\�AQ`�O \`�
Fiscal Year End
mRequiredContribution ® Actual Contribution
19
ACTUARIAL ASSUMPTIONS AND COST METHOD
A. Cost Method
1. Funding
2. Accumulated Benefit Obligation
B. Investment Earnings
(Including Inflation)
C.
Salary Increases
(Including Inflation)
D.
Inflation
E.
Retirement Age
F.
Turnover Rates
G.
Mortality Rates
H.
Disability
1. Rates
2. Percent Service Connected
I.
Asset Value
J. Administrative Expenses
K. Increase in Covered Payroll
L. Post Retirement Benefit Increase
M. Changes Since Last Valuation
�
jxk3
20
Frozen Entry Age Actuarial Cost Method,
Accrued Benefit Method
8.0% per year, compounded annually; net rate after
investment related expenses. For members hired prior to
September 29, 2005, it is being assumed that each retiree
will elect a lump sum distribution and the interest rate
used to calculate the lump sum will be 5.25 %. All other
members are assumed to elect the life annuity option.
5.5% per year up to the assumed retirement age.
4% per year.
See Table below.
See Table below.
1983 Group Annuity Mortality Tables for males and
females.
NA
NA
Difference between actual and expected return recognized
over five years.
Expenses paid out of the fund other than investment
related expenses are assumed to be equal to the average of
actual expenses over the previous two years.
4.0% per year, but limited to average increase over last 10
years (1.56% this year).
3% for those who retired before 2/1/82. Employees hired
before 10 /1 /00 may choose to contribute an extra 2%
starting 10 /1 /00 in order to receive a 3% COLA upon
retirement. This clause is mandatory for employees hired
after 9/30/00.
None.
Age
Annual Rate of
Turnover
Disability
25
18.8%
NA
30
11.2
NA
35
6.3
NA
40
4.8
NA
45
3.4
NA
50
2.4
NA
55
0.5
NA
60
0.0
NA
Annual Rate of Retirement
For each year
eligible for early
retirement
5%
For year when
normal retirement
date is attained
60
For each of four
years after normal
retirement date
40
For fifth year after
normal retirement
date
100
GRS
21
22
Actuarial Accrued Liability The difference between the Actuarial Present Value of Future Benefits, and the
(AAL) 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 (APT) 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 The Actuarial Present Value of amounts which are expected to be paid at various
Future Benefits (APVFB) 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 items needed for compliance with GASB No. 25, such as
the Funded Ratio and the Annual Required Contribution (ARC).
Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for valuation
purposes. This may be the market or fair value of plan assets or a smoothed
value in order to reduce the year -to -year volatility of calculated results, such as
the funded ratio and the actuarially required contribution (ARC).
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.
XjAmb
23
Amortization Payment That portion of the plan contribution or ARC which is designed to pay interest on
and to amortize the Unfunded Actuarial Accrued Liability.
Amortization Period The period used in calculating the Amortization Payment.
Annual Required Contribution The employer's periodic required contributions, expressed as a dollar amount or
(ARC) a percentage of covered plan compensation, determined under GASB No. 25.
The ARC consists of the Employer Normal Cost and Amortization Payment.
Closed Amortization Period A specific number of years that is reduced by one each year, and declines to zero
with the passage of time. For example if the amortization period is initially set at
30 years, it is 29 years at the end of one year, 28 years at the end of two years, etc.
Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is equal to the
Normal Cost less expected member contributions.
Equivalent Single Amortization For plans that do not establish separate amortization bases (separate components
Period 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
UAALL, 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.
Frozen Entry Age Actuarial A method under which the excess of the Actuarial Present Value of Projected
Cost Method Benefits of the group included in the valuation, over the sum of the Actuarial
Value of Assets, the Unfunded Frozen Actuarial Accrued Liability and the
Actuarial Present Value of Future Member Contributions (if any) is allocated as a
level percentage of earnings of the group between the valuation date and the
assumed retirement age. This allocation is performed for the group as a whole, not
as a sum of individual allocations. The portion of this Actuarial Present Value
allocated to a specific year is called the Employer Normal Cost. Under this
method, actuarial gains (losses) reduce (increase) future Normal Costs.
Frozen Actuarial Accrued The portion of the Actuarial Present Value of Projected Benefits which is
Liability separated as of a valuation date and frozen under the Actuarial Cost Method being
used. This separated portion is the sum of an initial Unfunded Actuarial Accrued
Liability and any increments or decrements in the Actuarial Accrued Liability
established subsequently as a result of changes in pension plan benefits, Actuarial
Assumptions or methods.
Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability.
GASB Governmental Accounting Standards Board.
GASB No. 25 and These are the governmental accounting standards that set the accounting rules for
GASB No. 27 public retirement systems and the employers that sponsor or contribute to them.
Statement No. 27 sets the accounting rules for the employers that sponsor or
contribute to public retirement systems, while Statement No. 25 sets the rules for
the systems themselves.
GRS
24
Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current plan
year.
Open Amortization Period An open amortization period is one which is used to determine the Amortization
Payment but which does not change over time. In other words, if the initial period
is set as 30 years, the same 30 -year period is used in determining the Amortization
Period each year. In theory, if an Open Amortization Period is used to amortize
the Unfunded Actuarial Accrued Liability, the UAAL will never completely
disappear, but will become smaller each year, either as a dollar amount or in
relation to covered payroll.
Unfunded Actuarial Accrued
Liability
Valuation Date
�
jxj
The difference between the Actuarial Accrued Liability and Actuarial Value of
Assets.
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
GRS
STATEMENT OF ASSETS
Item
A.
Cash and Cash Equivalents (Operating Cash)
B.
Receivables:
2,366,288
2,117,340
1.
Member Contributions
2.
Employer Contributions
3.
Investment Income and Other Receivables
4.
Total Receivables
C.
Investments
1.
Short-Term Investments
2.
Domestic and International Equities
3.
Domestic and International Fixed Income
4.
Real Estate
5.
Private Equity
6.
Total Investments
D.
Liabilities
1.
Benefits /Refunds Payable
2.
Lump Sums Distributions Payable
3.
Accrued Expenses and Other Payables
4.
Other
5.
Total Liabilities
E.
Total
Market Value of Assets Available for Benefits
F.
Allocation of Investments
1.
Short-Term Investments
2.
Domestic and International Equities
3.
Domestic and International Fixed Income
4.
Real Estate
5.
Private Equity
6.
Total Investments
GRS
September 30
2009 2008
$ 4,659 $ -
$ 20,202 $ 210,774
64 406
$ 24,925 $ 211,180
$ 271,508
$ 251,672
2,665,079
2,434,764
2,366,288
2,117,340
$ 5,302,875
$ 4,803,776
$ (7,879)
(111,598)
$ (119,477)
$ 5,208,323
5.12%
50.26%
44.62%
0.00%
0.00%
100.00%
$ 5,014,956
9.25%
54.73%
36.02%
0.00%
0.00%
100.00%
25
26
INCOME AND DISBURSEMENTS
"��
September 30
Item
2009
2008
A. Market Value of Assets at Beginning of Year
$
5,014,956
$
6,677,782
B. Revenues and Expenditures
1. Contributions
a. Employee Contributions
$
154,640
$
161,290
b. City Contributions
765,381
876,712
c. Purchased Service Credit
-
-
d. Total
$
920,021
$
1,038,002
2. Investment Income
a. Interest, Dividends, and Other Income
$
19,437
$
31,451
b. Realized Gains /(Losses)
(144,787)
269,124
c. Unrealized Gains /(Losses)
351,392
(961,739)
d. Investment Expenses
(36,533)
(48,043)
e. Net Investment Income
$
189,509
$
(709,207)
3. Benefits and Refunds
a. Refunds
$
(7,879)
$
-
b. Regular Monthly Benefits
(35,845)
(38,566)
c. Lump Sum Distributions
(856,211)
(1,931,863)
d. Total
$
(899,935)
$
(1,970,429)
4. Administrative and Miscellaneous Expenses
$
(16,228)
$
(21,192)
C. Market Value of Assets at End of Year
$
5,208,323
$
5,014,956
"��
27
ACTUARIAL VALUE OF ASSETS
G1ZS
Valuation Date — September 30
2009
2010
2011 2012 2013
A.
Actuarial Value of Assets Beginning of Year
$ 5,824,447
$ 6,048,808
$ - $ - $
B.
Market Value End of Year
$ 5,208,323
-
- -
C.
Market Value Beginning of Year
5,014,956
5,208,323
- -
D.
Non- Investment/Administrative Net Cash Flow
3,858
E.
Investment Income
El. Actual Market Total: B -C -D
189,509
-
- - -
E2. Assumed Rate of Return
8.00%
8.00%
8.00% 8.00% 8.00%
E3. Assumed Amount of Return
466,110
-
- - -
E4. Amount Subject to Phase -In: EI —E3
(276,601)
-
- -
F.
Phase -In Recognition of Investment Income
Fl. Current Year: 0.20 x E4
(55,320)
-
- - -
F2. First Prior Year
(237,915)
(55,320)
- - -
F3. Second Prior Year
51,991
(237,915)
(55,320) - -
F4. Third Prior Year
(9,442)
51,991
(237,915) (55,320) -
F5. Fourth Prior Year
5,079
(9,442)
51,991 (237,915) (55,320)
F6. Total Phase -ins
(245,607)
(250,686)
(241,244) (293,235) (55,320)
G.
Actuarial Value of Assets (AVA) End of Year
Gl. Preliminary AVA End of Year: A +D +E3 +F6
$ 6,048,808
$ -
$ - $ - $ -
G2. Upper Corridor Limit: 120 % *B
6,249,988
-
- - -
G3. Lower Corridor Limit: 80 % *B
4,166,658
-
- - -
G4. Funding Value End of Year
6,048,808
-
- - -
G5. Less: DROP Balance
-
-
- - -
G6. Final Funding Value End of Year
6,048,808
-
- -
H.
Difference between Market & AVA
(840,485)
$ -
$ - $ - $ -
I.
Actuarial Rate of Return
3.78%
0.00%
0.00% 0.00% 0.00%
J.
Market Value Rate of Return
3.78%
0.00%
0.00% 0.00% 0.00%
K.
Ratio of AVA to Market Value
116.14%
0.00%
0.00% 0.00% 0.00%
G1ZS
28
INVESTMENT RATE OF RETURN
The investment rate of return has been calculated as follows:
Basis 1 Interest, dividends, realized gains (losses) and unrealized appreciation (depreciation) divided by
the weighted average of the market value of the fund during the year. This figure is normally
called the Total Rate of Return.
Basis 2 Investment earnings recognized in the Actuarial Value of Assets divided by the weighted average
of the Actuarial Value of Assets during the year.
Year Ended
Investment Rate of Return*
Basis 1**
Basis 2
9/30/85
13.8 %
13.8 %
9/30/86
27.2
27.2
9/30/87
16.4
16.4
9/30/88
(6.3)
(6.3)
9/30/89
19.4
19.4
9/30/90
(0.6)
(0.6)
9/30/91
19.7
19.7
9/30/92
11.8
11.8
9/30/93
10.0
9.7
9/30/94
(1.5)
6.0
9/30/95
18.6
8.7
9/30/96
12.6
9.3
9/30/97
23.1
11.5
9/30/98
5.6
10.9
9/30/99
13.9
13.2
9/30/00
13.0
12.7
9/30/01
(4.6)
7.9
9/30/02
(6.6)
2.5
9/30/03
10.9
1.6
9/30/04
9.0
8.6
9/30/05
9.0
8.7
9/30/06
6.9
8.1
9/30/07
12.6
9.0
9/30/08
(11.4)
4.9
9/30/09
3.8
3,8
Average Compounded Rate of Return for
Number of Years Shown
8.6 %
9.3 %
Average Compounded Rate of Return for Last
5 Years
3.8 %
6.9 %
* Figures prior to 19080 were taken from the previous actuary's report for 1987.
** Net rate after investment expenses starting in 2004.
C�
SECTION D
FINANCIAL ACCOUNTING INFORMATION
GRS
WE
FASB NO. 35 INFORMATION
A. Valuation Date
October 1, 2009
October 1, 2008
B. Actuarial Present Value of Accumulated
Plan Benefits
1. Vested Benefits
a. Members Currently Receiving Payments
$ 121,011
$ 210,514
b. Terminated Vested Members
1,452,713
1,579,453
c. Other Members
5,657,025
5,069,686
d. Total
7,230,749
6,859,653
2. Non - Vested Benefits
434,728
471,540
3. Total Actuarial Present Value of Accumulated
Plan Benefits: 1 + 2
7,665,477
7,331,193
4. Accumulated Contributions of Active Members
773,682
683,800
C. Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1. Total Value at Beginning of Year
7,331,193
7,946,254
2. Increase (Decrease) During the Period
Attributable to:
a. Plan Amendment
0
0
b. Change in Actuarial Assumptions
0
0
c. Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period
1,234,219
1,355,368
d. Benefits Paid
(899,935)
(1,970,429)
e. Net Increase
334,284
(615,061)
3. Total Value at End of Period
7,665,477
7,331,193
D. Market Value of Assets
5,208,323
5,014,956
E. Actuarial Assumptions - See page entitled
Actuarial Assumptions and Methods
GRS
30
SCHEDULE OF FUNDING PROGRESS
(GASB Statement No. 25)
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability (AAL)
Entry Age
(b)
Unfunded
AAL (UAAL)
(b) - (a)
.Funded
Ratio
(a) / (b)
Covered
Payroll
(c)
UAAL As
% of
Covered
Payroll
(b - a) /c
10/1/91
$ 2,531,076
$ 2,716,601
$ 185,525
93.2 %
$ 2,022,569
9.2 %
10/1/92
2,645,252
3,055,166
409,914
86.6
2,153,587
19.0
10/1/93
3,018,716
3,258,012
239,296
92.7
2,241,595
10.7
10/1/94
3,209,342
3,659,663
450,321
87.7
2,471,296
18.2
10/1/95
3,471,658
4,132,092
660,434
84.0
2,451,309
26.9
10/1/96
3,805,073
4,295,018
489,945
88.6
2,251,610
21.8
10/1/97
4,301,968
4,585,587
283,619
93.8
2,380,024
11.9
10/1/98
4,574,342
4,733,864
159,522
96.6
2,435,518
6.5
10/1/99
5,179,781
5,943,849
764,068
87.1
2,543,984
30.0
10 /1 /00
5,732,329
7,508,961
1,776,632
76.3
2,761,773
64.3
10/1/01
6,312,447
8,150,125
1,837,678
77.5
3,127,313
58.8
10/1/02
6,193,676
8,594,442
2,400,766
72.1
3,076,493
78.0
10/1/03
6,759,012
10,404,349
3,645,337
65.0
3,443,843
105.9
10/1/04
6,578,832
12,084,785
5,505,953
54.4
4,275,981
128.8
1011105
3,817,605
9,116,599
5,298,994
41.9
3,220,258
164.6
10/1/06
5,283,023
10,490,332
5,207,309
50.4
3,680,960
141.5
10/1/07
6,481,382
10,997,783
4,516,401
58.9
3,238,894
139.4
10/1/08
5,824,447
10,138,981
4,314,534
57.4
2,977,995
144.9
10/1/09
6,048,808
10,456,011
4,407,203
57.9
2,969,626
148.4
��
C
SCHEDULE OF EMPLOYER CONTRIBUTIONS
(GASB Statement No. 25)
Year
Ended
9/30
Annual
Required
Contribution
Actual
Contribution
Percentage
Contributed
1991
$ 242,868
$ 245,000
100.9 %
1992
229,034
230,000
100.4
1993
225,280
226,000
100.3
1994
214,046
223,000
104.2
1995
269,422
270,000
100.2
1996
259,751
260,000
100.1
1997
240,637
245,169
101.9
1998
224,810
250,721
111.5
1999
214,323
227,112
106.0
2000
292,866
372,744
127.3
2001
415,152
447,128
107.7
2002
430,411
467,750
108.7
2003
502,855
503,220
100.1
2004
523,127
524,000
100.2
2005
662,237
662,237
1 00.0
2006
1,007, 695
1,007,695
100.0
2007
866,069
873,854
100.9
2008
875,126
876,712
100.2
2009
761,943
765,381
100.5
GRS
31
32
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT NO. 27)
Employer FYE September 30
2010
2009
2008
Annual Required Contribution (ARC)
$ 734,636
$ 761,943
$ 875,126
Interest on Net Pension Obligation (NPO)
(13,404)
(13,692)
(13,692)
Adjustment to ARC
(18,535)
(19,295)
(18,869)
Annual Pension Cost (APC)
739,767
767,546
880,303
Contributions made
**
765,381
876,712
Increase (decrease) in NPO
**
2,165
3,591
NPO at beginning of year
(168,979)
(167,553)
(171,144)
NPO at end of year
**
(168,979)
(167,553)
** To be determined
THREE YEAR TREND INFORMATION
Fiscal
Annual Pension
Actual
Percentage of
Net Pension
Year Ending
Cost (APC)
Contribution
APC Contributed
Obligation
9/30/2007
$ 871,123
$ 873,854
100.3 %
$ (171,144)
9/30/2008
880,303
876,712
99.6
(167,553)
9/30/2009
767,546
765,381
99.7
(168,979)
"JNJ
33
REQUIRED SUPPLEMENTARY INFORMATION
GASB Statement No. 25 and No. 27
The information presented in the required supplementary schedules was determined as part of the actuarial
valuations at the dates indicated. Additional information as of the latest actuarial valuation:
Valuation date October 1, 2004
Contribution Rates:
Employer 23.72%
Plan Members 6.00 %*
Actuarial Cost Method Frozen Entry Age
Amortization Method Level percent, closed
Remaining amortization period 30
Asset valuation method Difference between
actual return and
expected return
recognized over 5 years.
Actuarial assumptions:
Investment rate of return 8.0% up to retirement,
5.25% thereafter
Projected salary increases 5.5%
Includes inflation and other general increases at 4.0%
Cost -of- living adjustments 3.0% for those retired
before 2/1/82 or who
contribute an extra
2 %.
* Except for certain members who have elected not to contribute and for other members
who have elected to contribute only 2% or 4 %.
GRS
SECTION E
MISCELLANEOUS INFORMATION
GRS
34
IF- RECONCILIATION OF MEMBERSHIP DATA
From 10/1/08 to
From 10/1/07 to
10/1/09
10/1/08
A. Active Members
1. Number Included in Last Valuation
64
72
2. New Members Included in Current Valuation
4
6
3. Non - Vested Employment Terminations
(1)
(1)
4. Vested Employment Terninations
(3)
(7)
5. Service Retirements
(2)
(6)
6. Disability Retirements
0
0
7. Deaths
0
0
8. Other
0
0
9. Number Included in This Valuation
62
64
B. Terminated Vested Members
1. Number Included in Last Valuation
50
49
2. Additions from Active Members
3
7
3. Lump Sum Payments/Refund of Contributions
(2)
(6)
4. Payments Commenced
(1)
0
5. Deaths
0
0
6. Other - -Return to Actives
0
0
7. Number Included in This Valuation
50
50
C. Service Retirees, Disability Retirees and Beneficiaries
1. Number Included in Last Valuation
10
10
2. Additions from Active Members
2
6
3. Additions from Terminated Vested Members
1
0
4. Additions from DROP Plan
0
0
4. Deaths Resulting in No Further Payments
(3)
0
5. Deaths Resulting in New Survivor Benefits
0
0
6. End of Certain Period - No Further Payments
0
0
7. Other -- Lump Sum Distributions
(3)
(6)
8. Number Included in This Valuation
7
10
GRS
35
NORTH PALM BEACH GENERAL EMPLOYEES - ACTIVE MEMBERS ON OCTOBER 1, 2009
Age
Years of Service
Group
0 -4
5 -9
10 -14
15 -19
20 -24
25 -29
30 & Up
Totals
20 -24 No.
Total Pay
Avg Pay
25 -29 No.
2
2
Total Pay
76,848
76,848
Avg Pay
38,424
38,424
30 -34 No.
2
2
4
Total Pay
67,249
56,967
124,216
Avg Pay
33,625
28,484
31,054
3 5-3 9 No.
2
4
3
9
Total Pay
77,657
191,474
183,144
452,275
Avg Pay
38,829
47,869
61,048
50,253
40 -44 No.
1
2
2
5
Total Pay
46,960
123,460
97,175
267,595
Avg Pay
46,960
61,730
48,588
53,519
45 -49 No.
5
3
2
2
12
Total Pay
192,537
121,058
102,627
80,824
497,046
Avg Pay
38,507
40,353
51,314
40,412
41,421
50 -54 No.
4
1
2
2
4
2
1
16
Total Pay
171,704
50,540
75,143
83,637
249,360
123,490
94,064
847,938
Avg Pay
42,926
50,540
37,572
41,819
62,340
61,745
94,064
52,996
55 -59 No.
4
2
1
1
1
9
Total Pay
192,756
76,587
41,113
35,237
97,967
443,660
Avg Pay
48,189
38,294
41,113
35,237
97,967
49,296
60 -64 No.
3
3
Total Pay
105,343
105,343
Avg Pay
35,114
35,114
65 -99 No.
1
1
2
Total Pay
36,666
38,560
75,226
Avg Pay
36,666
38,560
37,613
Total No.
17
14
13
5
9
3
1
62
Total Pay
669,621
653,757
561,275
227,377
462,596
221,457
94,064
2,890,147
Avg Pay
39,389
46,697
43,175
45,475
51,400
73,819
94,064
46,615
GIXJ
36
NORTH PALM BEACH GENERAL INACTIVE PARTICIPANTS RECEIVING THE COLA
AS OF OCTOBER 1, 2009
Retirees and
Terminated Vested Disabled Beneficiaries
Annual Annual Annual
Age No. Benefits No. Benefits No. Benefits
Under 45
0
$0
0
$0
0
$0
45 -49
4
20,589
0
0
0
0
50 -54
2
16,342
0
0
0
0
55 -59
5
37,730
0
0
1
11,071
60 -64
2
3,258
0
0
0
0
65 -69
1
640
0
0
2
7,866
70 -74
1
442
0
0
0
0
75 -79
0
0
0
0
0
0
80 -84
0
0
0
0
1
1,079
85 -89
0
0
0
0
0
0
90 &Up
0
0
0
0
0
0
Total
15
$79,001
0
$0
4
$20,016
GRS
37
NORTH PALM BEACH GENERAL INACTIVE PARTICIPANTS NOT RECEIVING THE COLA
AS OF OCTOBER 1, 2009
Retirees and
Terminated Vested Disabled Beneficiaries
Annual Annual Annual
Age No. Benefits No. Benefits No. Benefits
Under 45
4
$12,348
0
$0
0
$0
45 -49
15
95,479
0
0
0
0
50 -54
8
62,516
0
0
0
0
55 -59
7
48,556
0
0
0
0
60 -64
0
0
0
0
0
0
65 -69
1
2,573
0
0
0
0
70 -74
0
0
0
0
0
0
75 -79
0
0
0
0
2
6,393
80 -84
0
0
0
0
1
3,240
85 -89
0
0
0
0
0
0
90 &Up
0
0
0
0
0
0
Total 35 $221,472 0 $0 3 $9,633
G1xi
SECTION F
SUMMARY OF PLAN PROVISIONS
GRS
SUMMARY OF PLAN PROVISIONS
A. Ordinances
38
Plan established under the Code of Ordinances for the Village of North Palm Beach, Florida, Part II,
Chapter 2, and was most recently amended under Ordinance No. 2008 -02 passed and adopted on
January 10, 2008. 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
September 1, 1967
C. Plan Year
October 1 through September 30
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, General Employees are eligible for membership on the October lst following completion
of 12 months of employment.
F. Credited Service
Total Number of years and fractional parts of years of actual service.
G. Compensation
Total compensation for services rendered to the Village as a General Employee includes gross salary
including overtime but excluding bonuses or any other non regular payments such as unused sick
leave and vacation pay.
H. Final Average Compensation (FAC)
The average of Compensation during the 5 years within the last 10 years of employment which produces
the highest average.
l��
39
I. Normal Retirement
Eligibility: A member may retire on the first day of the month coincident with or next following:
➢ Age 65 for employees hired prior to 1983
fi Age 65 and 9 years of credited service or Age 60 and 9 years of credited
service, depending on employee hire date and/or employee contribution rate.
Benefit: Either 2 %, 2.25 %, or 2.50% (depending on employee contribution rate) of AME
multiplied by Credited Service up to 20 years plus 1% of AMU multiplied by
Credited Service over 20 years.
Normal Form
of Benefit: Life Annuity, with other options available.
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10 /1 /00 who elect to contribute an extra 2 %, a Cost of Living increase is paid
annually from the Plan, up to a maximum of 3 %.
J. Early Retirement
Eligibility: Age 55.
Benefit: Calculated in the same manner as Normal Retirement Benefit and payable at Normal
Retirement Date; or payable immediately after reduction by 5% for each year by which
the benefit commencement date precedes the Normal Retirement Date.
Normal Form
of Benefit: Life Annuity, with other options available.
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10 /1 /00 who elect to contribute an extra 2 %, a Cost of Living increase is paid
annually from the Plan, up to a maximum of 3 %.
K. Delayed Retirement
Eligibility: Any time after the Normal Retirement Date.
Benefit: Calculated in the same manner as Normal Retirement Benefit but using the AME and
Credited Service as of the actual retirement date.
Normal Form
of Benefit: Life Annuity, with other options available.
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10/1/00 who elect to contribute an extra 2 %, a Cost of Living increase is paid
annually from the Plan, up to a maximum of 3 %.
r�
L
40
L. Service Connected Disability
Eligibility: The Plan does not provide for benefits in the event of disability.
Benefit: N /A.
Normal Form: N /A.
COLA: N /A.
M. Non - Service Connected Disability
Eligibility: The Plan does not provide for benefits in the event of disability.
Benefit: N /A.
Normal Form: N /A.
COLA: N /A.
N. Death while employed by the Village
Eligibility: Members are eligible for survivor benefits after the completion of 5 years of Credited
Service. The benefit will be paid to the member's beneficiary.
Benefit: The survivor benefit payable to the designated beneficiary is the member's vested
accrued Normal Retirement Benefit as of the date of death.
Normal Form
of Benefit: Ten Years Certain,
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10 /1 /00 who elect to contribute an extra 2 %, a Cost of Living increase is paid
annually from the Plan, up to a maximum of 3 %.
O. Other Pre - Retirement Death
Eligibility:
Benefit:
Normal Form
of Benefit:
GR.S
Vested terminated members who have reached age 55 and completed 5 years of
Credited Service.
Benefit payable as if member retired on the date of death, selected a 50% Joint &
Survivor annuity, and then passed away, with 50% of the benefit then continuing to the
survivor.
Life of the beneficiary.
41
COLA: For those retired before February 1, 1982, those hared after 9/30/00, or those hired
before 10 /1/00 who elect to contribute an extra 2 %, a Cost of Living increase is paid
annually from the Plan, up to a maximum of 3 %.
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
Q. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are
the 10 Year Certain and Life option or the 50 %, 66.67 %, 75% or 100% Joint and Survivor options. A
Social Security option is also available for members retiring prior to the time they are eligible for Social
Security retirement benefits. A member may elect to receive a lump sum distribution. For those hired
after September 29, 2005, the lump sum will not include the value of the Cost of Living Adjustment.
The Pension Board also reserves the right to pay out beneficiaries with this option when the monthly
benefit amount is less than $100.00.
R. Vested Termination
Eligibility: A member has earned a non - forfeitable right to Plan benefits after the completion of 5
years of Credited Service.
Benefit: The benefit is the Accrued Benefit on the termination date multiplied by the vested
interest. The vested percentage is 50% for those terminating with credited service
between 5 and 7 years, 75% for service between 7 and 9 years and 100% for those
terminating with 9 or more years of credited service. In lieu of the deferred vested
benefit, a member may receive a refund of member contributions.
Normal Form
of Benefit: Life Annuity, with other options available.
COLA: For those retired before February 1, 1982, those hired after 9/30/00, or those hired
before 10/1/00 who elect to contribute an extra 2 %, a Cost of Living increase is paid
annually from the Plan, up to a maximum of 3 %.
S. Refunds
Return of Accumulated Contributions.
- - T. Member Contributions
6 %, 4 %, 2 %, or 0% of Earnings as elected by the employee.
U. Employer Contributions
The amount determined by the actuary needed to fund the plan properly according to State laws
MORIM
L
42
V. Cost of Living Increases
For those retired before February 1, 1982, those hired after 9/30/00, or those hired before 10 /1 /00 who
elect to contribute an extra 2 %, a Cost of Living increase is paid annually from the Plan, up to a
maximum of 3 %.
W. Changes from Previous Valuation
None.
X. 13th Check
Not Applicable.
Y. Deferred Retirement Option Plan
Eligibility: The Plan does not provide for DROP benefits.
Z. Other Ancillary Benefits
There are no ancillary retirement type benefits not required by statutes but which might be deemed a
Village of North Palm Beach General Employees' liability if continued beyond the availability of
funding by the current funding source.
GRS