PFPB Actuarial Report 10-01-2009VILLAGE OF NORTH PALM BEACH
FIRE AND POLICE RETIREMENT FUND
ACTUARIAL VALUATION REPORT
AS OF OCTOBER 1, 2009
{As Revised Juiy 15, 2010)
CONTRIBUTIONS APPLICABLE TO THE VILLAGE'S
PLANIFISCAL YEAR ENDING SEPTEMBER 30, 2011
Foster&Foster~~.
Actuarial Consultants far Retirement Programs
July 15, 2010
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:
Vile 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 refilects laws- and regulations issued to
date pursuant to the provisions of Chapters 112, and 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, Salem Trust, and the actuarial assumptions and methods described in
the Actuarial Assumptions section of this report. While we cannot verify the accuracy of
ail 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 mee#s 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 i04 • Fort Myers, Florida 33912.239-433-5500 • Fax 239-481-0634 • www.foster-foster.com
Board of Trustees
July 15, 2010
Page Two
To our knowledge, no associate of Faster & 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 Faster & 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 239-433-5504.
Respectfully submitted,
Foster & Foster, Inc.
'i
~~
f
By:
Bradley R. Heinrichs, FSA, EA, MAAA
Enrolled Actuary #48-6901
BRHlmjg
Enclosures
TABLE OF CONTENTS
Section Title Page
I Introduction
a. Summary of Repart 1
b. Changes Since Prior Report 3
c. Requirements of Chapter 112, ~
Part VII, Florida Statutes
II Valuation Information
a. Actuarial Assumptions and 9
Funding Methods
b. Valuation Notes 11
c. Partial History of Premium 12
Tax Refunds
d. Excess State Monies Reserve ~ 13
III Trust Fund 14
lV Member Statistics
a. Eligibility for Retirement 18
b. Statistical Data 19
c. Age and Service Distribution 20
d. Member Reconciliation 21
V Summary of Plan Provisions 22
VI Governmental Accounting Standards 25
Board Disclosure Information
SECTION I
INTRODUCTION
SUMMARY OF REPORT
The regular annual actuarial valuation of the Village of North Palm Beach Fire and
Police Retirement Fund, performed as of October 1, 2009, has been completed, and the
results are presented in this Report. The cantribu#ion amounts developed in this valuation are
applicable to the planlfiscal year ended September 30, 2011.
The contribution requirements, compared with amounts developed in the October 1,
2008, actuarial ~aiuation prepared by Foster & Foster (as revised .tune 3, 2010), are as
folloWS:
Valuation Date 10/1/2008 1011/2009
~ Applicable PIanlFiscal Yr. End 9/30/2010 9/30/2011
l Total Required Contribution
i % of Total Annual Payroll 25.73°10 26.21
Member Contributions
,~ % of Total Annual Payroll 2.00% 2.00%
Village and State Required Contribution
of Total Annual Payroll 23.73% 24.21
State Contribution (1) 221, 372 221,372
--t % of Total Annual Payroll 6.58% 6.35%
Balance from Village (1)
of Total Annual Payroll 17.15% 17.86%
{1) State Contribution shown is the amount received during the year ending
December 31, 2009. The Village may use up to $230,696 in State Contributions
for determining its minimum funding requirements. Far budgeting purposes, the
required Sponsor Contribution (Village and State) is 24.21% of Pensionable
Earnings for the fiscal year ending September 30, 2011. The precise Village
requirement is the applicable Sponsor percentage, less actual State Contributions
(up to the maximum $230,696). Additionally, the Village has a prepaid
contribution of $111,329 that may be utilized for the fiscal year ending September
30, 2010.
2
As can be seen, the Total Required Contribution has increased when expressed as a
percen#age of Total Annual Payroll. This increase is a result of net unfavorable actuarial
experience during the past year. The primary component of unfavorable experience is
attributable to a 6.3°/a investment return (Actuarial Asset basis), failing short of the 8.0%
assumption. This loss was partially offset by average increases in Pensionable Compensation
that were less than the assumption by more than 2%, greater than expected employee
turnover, and a decrease in the average entry age of Plan participants.
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.
i
Respectfully submitted,
FOSTER & FOSTER, INC.
L
~~
By;
By:
Bradley R. Heinrichs, FSA, EA
~-~y~--
Douglas H. Lozen
3
Plan .Chan es .Since .P.riar Valuation
There have been no changes in benefits since the prior valuation.
Actuarial Assum tionlMethod Chan es Since Prior Valuation
There were no changes made to the actuarial assumptions or methods since the
prior valuation.
4
Comparative Summary of Principal Valuation Results
10/1/2009 10/1/2008
A. Participant Data
Number included
Actives a2 50
Service Retirees 6 4
Beneficiaries D 0
Terminated Vested 11 12
Disability Retirees 1 1
Tota! 70 67
Total Annual Payroll 3,488,338 3,364,295
Payroll Under Assumed Ret. Age 3,488,338 3,364,295
Annual Rate of Payments to:
Service Retirees 126,123 81,218
Beneficiaries 0 D
Terminated Ves#ed 206,873 219,198
Disability Retirees 38,585 38,585
B. Assets
Actuarial Value 1 D,65D,648 1 D,D45,838
Market Value 9,979,357 1 D,D45,838
C. Liabilities
Present Value of Benefits
Active Members
Retirement Benefits 9,830,139 9,736,103
Disability Benefits 990,229 933,306
Death Benefits 164,877 150,694
Vested Benefits 630,864 582,271
Refund of Contributions 43,952 37,524
Sen-ice Retirees 3,409,487 2,420,686
Beneficiaries 0 0
Terminated Vested 2,147,79D 2,128,414
Disability Retirees 557,901 ~ 567,717
Excess State Monies Reserve 0 0
Total
16,556,715
17,775,239
5
10/1/2009 1011 I2aos
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 Cast (Aggregate, Level Percent)
Present Value of Future
Member Contributions
30,485,079 28,895,259
7,124,591 8,510,877
5,118,946 4,952,283
815,251 758,066
609,702 577,905
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
Inactives
Actives
Member Contributions
Total
Non-jested Accrued Benefits
Total Present Value Accrued
Benefits
Increase (Decrease) in Present Value of
Accrued Benefi#s Atkributable to:
Plan Amendments
Assumption Changes
New Accrued Benefits
Benefits Paid
Interest
Other
10,650,648 10,045,838
12,656,293 11,604,432
0 0
6,115,178
3,577,156
320,579
10,012,913
970,715
10,983,628
0
0
905,866
(855, 081 }
778,171
p
5,115,817
3,812,561
2$3,429
9,212,807
941,$65
10,154,672
Total: 828,956
Valuation Date
Applicable to the Fiscal Year Ending
E. Pension Cost
Normal Cost (with interest)
of Total Annual PayroA*
Administrative Expense (with interest)
°10 of Total Annual Payroll'
Payment Required to Arr~ortize
Unfunded Actuarial Accrued
Liability aver 0 years
(as of 1411109)
of Total Annual Payroll*
Total Required Contribution
of Total Annual Payroll*
Expected Member Contributions
of Total Annual Payrolh'
Expected Village & State Contrib.
of Total Annual Payroll*
F. Past Contributions
Plart Years Ending:
Total Required Contribution
Village and State Requirement
Actual Contributions Made:
Members
Village
State
Total
G. Actuarial Gain (Loss} NIA
1 olv2oo9 ~ ~ o1112aoa
9/30/2011 9/30/2010
24.31 23.43
1,g0 2.30
0.00 0.00
26.21 25.73
2.00 2.00
24.21 23.73
9/30/2009
796,929
728,729
ss,2ao
507,357
221,372
7 6,9 9
~` Contributions developed as of 10!1109 are expressed as a percentage of projected
annual payroll at 1011109 of $3,488,338
7
H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability
as of:
Projected Unfunded
Year Accrued Liabili
NIA -Aggregate Actuarial Cost Method
(i} 3 Year Comparison of Actual and Assumed increases in Pensionable Compensation
Actual Assumed
Year Ended 9/30/2009 3.5% 6.0%
Year Ended 9/30/2008 4.7% 6.0%
Year Ended 9/30/2007 9.8% 6.0%
{ii) 3 Year Comparison of Investment Return on Actuarial Value
Actual Assumed
Year Ended 9/30/2009 6.3% 8.0%
Year Ended 9/30/2008 0.7% 8.0%
Year Ended 9/30/2007 9.1 % 8.0%
(iii) Average Annual Payroll Growth
{a} Payroll as o#: 1011/2009 $3,488,338
1011 /1999 1,355,684
{b} Total Increase 157.3%
(c} Number of Years 10.00
(d) Average Annual Rate 9.9%
r
8
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 comple#e 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 andlor paid from the
plan's assets #or which 4iabilities or curren# 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.
~•
Bradley R. Heinrichs, FSA, EA, MAAA
Enrolled Actuary #08-6901
A copy of this Report is to be furnished to the Division of Retirement within 60 days
of receipt from the actuary at the following address:
Patricia Shoemaker
Municipal Police and Fire
Pension Trust Funds
Division of Re#irement
Post OfFice Box 3010
Tallahassee, FL 32315-3010
Mr. Keith Brinkman
Division of Retirement
Bureau of Local Retirement Systems
P. O. Box 9000
Tallahassee, FL 32315-9000
sECTION II
VALUATION INFORMATION
9
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
Mortality Rate
Interest Rate
Retirement Rates
5
Disability Rate
i Termination Rate
i
Sala Increases
Post Retirement COLA
Pa roll Growth
Administrative Ex enses
Assumptions
1983 Group Annuity Mortality Table. Disabled
members set forward 5 years.
S% per year compounded annually,
net of investment related expenses.
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
For Normal Retirement
0
1
2
3
4
5+
Annual Rate of
Retirement
60%
4d°/°
40%
40%
4Q%
100%
See table on the following page. 75% of
disabilities are assumed to be service-incurred.
See table on the following page.
6.0% per year until the assumed
retirement age.
3% per year.
NIA.
Average of actual administrative expenses
over the previous two years.
10
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
(continued)
Becoming Disabled % Terminating
Durin the Year Durin the Year
20 0.14% 9.00%
25 , 0.15% 8.55%
3Q 4.18% 7.50%
35 0.23% 5.70%
40 ~ 0.30% 3.90%
45 0.51 % 2.40%
50 1.OD% 1.20%
55 1.55% 0.45%
sD a.oo°i° o.so%
Funding Method
Aggregate Actuarial Cost Method
11
VALUATION NOTES
Total Annual Pa roll is the projected annual rate of pay for the fiscal year preceding
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
I ~ I arld 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 Total Annual
Payroll as of the valuation date.
i
~ A re ate Ac#uarial Cast Method (Lave! 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 Gontribution is equal to the Normal Cost plus an adjustment for interest
according to the timing of sponsor contributions during the year.
12
PARTIAL HISTQRY ~1= PREMIUM TAX REFUNDS
Received During Increase from
Fiscal Year Amount Precious Year
1989 52,$66.00
1990 49,647,00 -6.1
1991 54,960.00 10.7%
1992 51,832.00 -5.7%
1993 49,897.00 -3.7%
1994 54,214.00 8.7%
1995 58,926.00 8.7%
1996 55,501.00 -5.8%
1997 76,514.00 37.9%
1998 92,462.12 20.8%
1999 80,911.74 -12.5%
2000 78,246.11 -3.3%
2001 10$,200.87 3$.3%
2002 134,40$.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
13
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SECTION III
TRUST FUND
Village of North Palm Beach
Fire and Police Retirement Fund
BALANCE SHEET
September 30, 2009
14
ASSETS COST VALUE MARKET VALUE
Cash and Cash Equivalents:
Checking Account
286,293.25
286,293.25
Prepaid Expenses
Money Market 1,498.13
465,050.03 1,498.13
465,050.03
Pending Trades Receivable 1,006,822.11 1,006,822.11
Total Cash and Equivalents 1,759,663.52 1,759,663.52
Receivable:
State Contributions
221,372.40
221,372.40
Accrued Income 47,874.77 47,874.77
Total Receivable 269,247.17 269,247.17
Investments:
U S Govt & Agencies
1,567,735.26
1,583,462.53
Corporate Bonds ~ 1,764,112.41 1,875,158.95
Common Stocks 4,685,068.21 4,294,438.69
Municipal Obligations 274,933.25 297,406.05
Mutual Funds:
Equity
14,091.00
21,400.50
Total Investments 8,305,940.13 8,071,866.72
TOTAL ASSETS 10,334,850.82 10,100,777.41
LIABILITIES AND NET ASSETS
Liabilities:
Payable:
Unpaid investment Expenses
4,298.80
4,298.80
Unpaid Administrative Expenses 5,792.43 5,792.43
Prepaid City Contribution 111,329.00 111,329.00
Total Liabilities 121,420.23 121,420.23
Net Assets:
Active and Retired Members' Equity
10,213,430.59
9,979,357.18
Total Net Assets 10,213,430.59 9,979,357.'18
TOTAL LIABILITIES AND NET ASSETS 10,334,850.82 10,100,777.41
Village of North Paim Beach
Fire and Police Retirement Fund
CHANGES IN NET ASSETS AVAI~AB~E FQR BENEFITS
September 30, 2009
Market Value Basis
INCOME
Contributions:
Member
Buy-Back
City
State
Total Contributions
Earnings from Investments
Interest & Dividends
Miscellaneous Income
Net Realized Gain (Loss}
Unrealized Gain (Loss)
Total Earnings and lnvestmen# Gains
EXPENSES
Administrative Expenses:
Investment Related*
Other
Total Expenses
Distributions to Members:
Benet'It Payments
Lump Sum Retiree Distributions
Return of Contributions
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year
*Investment Related expenses include investment advisory,
custodial and performance monitoring fees.
55,238.21
2,961.90
599,505.97
221,372.40
294,070.88
5,958.59
(191,007.69}
(86,402.02)
59,260.99
63,837.26
126,144.33
722, 595,44
6,341.13
15
889,078.4$
22,619.76
123,098.25
855,0$0.90
(66,480.91 }
10,045,$38.09
9,979,357.18
16
Village of North Palm Beach
Fire and Police Retirement Fund
ACTUARIAL ASSET VALUATION
September 30, 2009
Actuarial Assets for funding purposes are developed by recognizing the total actuarial
investment gain or lass 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 fourkh
year 80%, and in the fifth year 100% of the gain ar loss is recognized. The actuarial
inves#ment gain or loss is defned as the actual return an investments minus the actuarial
assumed investment return.
GainslLosses Not Yet Recognized
Plan Year Amounts Nnt Yet Recognized by Valuation Year
Ending GainlLass 2x09 2010 2011 2012 2013
9/3012005 0 0 0 0 0 0
9/30/2006 0 0 fl 0 fl 0
9/30/2007 0 0 0 0 0 0
913or2flos 0 fl a o a fl
9/30/2009 (839,114) (671,291} (503,469} (335,646} (167,823) 0
Total {671,291) {503,469} (335,646) {167,823) 0
Develo ment of Investment GainlLoss
Market Value of Assets, 9/30/2008 10,445,838
Contributions Less Benefik Payments & Admin Expenses {29,840)
Expected Investment Earnings on Actuarial Value 802,473
Actual Net Investment Earnings {36,641)
2009 Actuarial Investment Gainl(Loss} {839,114)
"Expected Investment Earnings = 0.08
i
Develo
Market Value of Assets, 9/30/2009
(Gains)ILosses Not Yet Recognized
Actuarial Value of Assets, 9130/2009
{A) 9/3012008 Actuarial Assets:
(I} Net Investment Income:
1. Interest and Dividends
2. Realized Gains {Losses}
3. Change in Actuarial Value
4. Investment Expenses
Total
(10,045,838 ~ .5 * -29,840)
~ment of Actuarial Value of Assets
9,979,357
671,291_
10,650,648
1 fl', 045, 838
300,029
(191,008)
584,889
59,261)
634,650
(B) 913fl120fl9 Actuarial Assets: 10,650,648
Actuarial Asset Rate of Return = 211(A+g-I}: 6.3%
10!01109 Limited Actuarial Assets: 10,650,648
{Lesser of Actuarial Assets or 12fl% of Market Value)
Village of Norkh Palm Beach
Fire and Police Retirement Fund
CH,~NGES IN NET ASSETS /IVf1ILABLE FOR BENEFITS
September 30, 2009
Actuarial Asset Basis
INCOME
Contributions:
Member
Buy-Back
City
State
Total Contributions
Earnings from Investments
interest & Dividends
Miscellaneous Income
Net Realized Gain (Loss)
Change in Actuarial Value
Total Earnings and investment Gains
EXPENSES
Administrative Expenses:
investment Related*
Other
Total Administrative Expenses
Distributions to Members:
Bene#it Payments
Lump Sum Retiree Distributions
Return of Contributions
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year~*
`Investment Related expenses include investment advisory,
custodial and performance monitoring fees.
**Net Assets may be limited for actuarial consideration
65,238.21
2,961.90
599,505.97
221, 372.40
294,070.88
5,958.59
(191,007.69)
584,888.98
59,260.99
63, 837.26
12fi,144.33
722,595.44
6,341.13
17
889,078.48
693,910.76
~ 23,a98.25
855,0$0.90
604,810.09
10,045,838.09
10,650,648.18
SECTION IV
MEMBER STATISTICS
1~
ELiGIBILTY FOR RETIREMENT
Members are eligible for Normal Re#irement based upon the following criteria:
1) Attained Age 55
2) Attained Age 52 with 25 Years of Credited Service
Members are eligible for Early Retirement based upon the following criteria:
1) Attained Age 50
As of the date of this valuation, the following list of Members are eligible for:
Normal Retirement
DIKINSON GARY,
KENNEDY WILLIAM,
MAKI HENRY,
MILDWORM KENNETH,
SMITH WILLIAM J. SR,
Early Retirement
ARMSTRONG JOHN,
MATTING, SALVATORE,
VAN DEUSEN SCOTT,
YUNGK JOSEPH,
19
STATISTICAL DATA
1011 !2007 10/1/2008 10/7/2009
Number 46 60 62
Average Current Age 39.9 39.4 39.0
Average Age at Employment 30.9 32.4 32.1
Average Past Service 9.0 7.0 6.9
Average Annual Salary $67,610 $67,286 $67,0$3
20
AGE AND SERVICE DISTRIBUTION
PAST SERVICE
AGE 0 '! 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 3 0 0 0 0 0 0 0 0 0
0
3
25 - 29 1 3 0 3 2 1 0 0 0 0 0 10
' j 30-34 0 1 0 1 4 1 0 0 0 0 0 7
7 35 - 39 0 1 0 2 0 4 2 0 0 0 0 9
~ 40 - 44 0 2 0 0 0 2 0 1 0 0 0 5
45-49 0 1 0 1 1 2 1 1 2 0 0 9
50 - 54 0 1 0 0 0 1 1 0 1 1 0 5
55-59 0 1 0 0 0 1 0 0 0 0 0 2
60 - 64 0 0 0 0 0 1 0 1 0 0 0 2
65+ 0 0 0 0 0 0 0 0 0 0 0 0
~~ Total 4 10 0 7 7 13 4 3 3 1 0 52
21
VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation 1011108 50
b. Terminations 0
i. Vested (partial or full) with deferred
benefits
1
ii. Non-vested or full lump sum distribution
received
c. Deaths
i. Beneficiary receiving benefits D
ii. No future benefits payable 0
D
d. Disabled 1
e. Retired D
f. Voluntary Withdrawal
g. Continuing participants 48
4
h. New entrants 52
i, Total active life participants in valuation
2. Non-Active lives (including benef
SeNICe
Retirees,
Vested
Receiving
Benefits
a Number prior 4
iciaries receiv
Receiving
Death
Benefits
D
ing benefits)
Receiving
Disability Vested
Benefits Deferred Total
1 12 17
valuation
b. In 2 0 0 1 3
c. Out 0 D 0 2 2
d. Number current 6 0 1 11 18
valuation
SECTION V
SUMMARY OF-PLAN PROVISIONS
22
SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 2008-18)
Eli ibili
Credited Service
Sala
Average Final Compensation
Member Contributions
Village and State Contributions
Normal Retirement
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 bonases, sick
and vacation pay, bu# including overtime.
Average Salary far 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.
Date 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 #0 24 years;
plus
0% of Average Final Compensation
times
Credited Service for each year after 24 years
up to 30 years;
2.0% of Average Final Compensation
times
Credited Service for each year in excess of 30.
Form of Benefit Ten Year Certain and Li#e Annuity
(options available).
23
Early Retirement
Eligibility Age 5Q, regardless of Credited Service.
Benefit Accrued benefit, reduced 3% per year that the
benefit commencement date precedes the
Normal Retirement Date.
Vestin
Schedule
10Q% after 10 years of Credited Service.
Benefit Amount Member wiH receive the vested portion of his
(her) accrued beneft payable at the otherwise
Early (reduced) or Normal Retirement Date.
Disabili
Eligibility
Service Incurred
Non-Service Incurred
Covered from Date of Employment.
10 years of Credited Service.
Exclusions Disability resulting from use ofi drugs, illegal
participation in riots, service in military, etc.
Benefit Benefit accrued to date of disability but not
less than 42% of Average Final Compensation
(Zb% 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 {while employed)
Vested Monthly accrued benefit payable to designated
beneficiary for 1Q years at otherwise Early
(reduced) or Normal (unreduced} Retirement
Date. -
Non-Vested Refund of accumulated contributions.
24
Death Benefits (continued}
Pre-Retirement rafter employment)
Eligibility
Benefit
Post-Retirement
Cost of Living Increases
Board of Trustees
Vested terminated member who has reached
age 50.
Benefit payable as if member retired on the
date of death, selected a 54% Joint and
Survivor annuity, and then passed away, with
50% of the benefit then continuing to the
survivor for life.
Benefits payable to beneficiary in accordance
with option selected at retirement.
Up to 3% increase or decrease effective each
October 1St in accordance with the Consumer
Price Index, applied to all types of benefits.
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 wil! be the Chairman of the
Board, must be a resident of the Village and
shall be selected by the Village Council.
SECTION VI
GOVERNMENTAL ACCOUNTING STANDARDS
BOARD DISCLOSURE INFORMATION
25
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26
:, .
i
DISCLOSURE INFORMATION PER STATEMENT N0. 27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
ANNUAL PENSION COSTS AND RELATED INFORMATION
Contribution rates as of 9130109
Village 18.26%
Plan Members 2.00°/a
Actuarially Determined Contribution 507,357
Contributions made 599,505
Actuarial valuation date 10/1/2007
Actuarial cost method Aggregate
Amortization method NIA
Remaining amortization period NIA
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
Actuarially Percentage Net
Year Determined of APC * Pension
Ending Contribution Contributed Obligation
9/30/2009 507,357 118% (264,986)
9/30/2008 715,784 100% (179,119}
9130!2007 539,651 100% (186,453)
* Annual Pension Cost from Village sources.
27
DISCLOSURE INFORMATION PER STATEMENT N0. 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 Octaber 1, 1997, is 0.
The recent development of the Net Pension Obligation is as follows:
9130107 9130108 9130109
Actuarially Determined
Contribution (A) 539,651 715,784 507,357
Interes# on NPO (15,567} (14,916} (14,330)
Adjustment to (A} 23,701 22,250 20,611
Annual Pension Cost 547,785 723,118 513,638
Contributions Made 539,651 715,784 599,505
Increase in NPO 8,134 7,334 (85,867}
NPO Beginning of Year (194,587} (186,453) (179,119)
NPO End of Year (186,453) (179,119} (264,986}