PFPB Actuarial Report 10-01-2008 RevisedVILLAGE OF NORTH PALM BEACH
FIRE AND POLICE RETIREMENT FUND
ACTUARIAL VALUATION REPORT
A5 OF OCTOBER 1, 2008
CONTRIBUTIONS APPLICABLE TO THE VILLAGE'S
PLANlFISCAL YEAR ENDING SEPTEMBER 30, 2010
(June 3, 2010 Revision)
Foster&Foster~,G
Actuarial Consultants far Retirement Programs
June 3, 2010
Board of Trustees
Village of North Palm Beach Fire and Police Retirement Fund
c/o Ms. Denise McNeill
The Resource Centers, LLC
4360 Northlalce Blvd, Suite 206
Palm Beach Gardens, FL 33410
Re: ViAage of North Palm Beach
Fire and Police Retirement Fund
Dear Board:
We are pleased to present to the Board this revision to the October 1, 2008 report,
originally submitted by the prior actuary, 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, and 175 and 185, Florida Statutes, as
we11 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
all this information, the supplied information was reviewed #or 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 park of the actuarial opinions.
13420 Parker Commons Bled., Suite 404 • Fort Myers, Florida 33912 • 239-433-5500 • Fax 239-484-0634 • www.foster-foster.com
Board of Trustees
June 3, 2010
Page Two
To our knowledge, no associate of Foster & Faster, 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 & Fg~ter, Inc.
By. ~, ~ ~.,~~
Bradt R. einrichs, FSA, EA, MAAA
EnroNed Act ary #08-6901
BRH/mjg
Enclosures
TABLE OF CONTENTS
Section Title Page
Introduction
a. Summary of Report ~
b. Changes Since Prior Report 3
c. Requirements of Chapter 112, 4
Part VII, Florida Statutes
II Valuation lnformation
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
IV Member Statistics
a. Eligibility for Retirement 17
b. Statistical Data 18
c. Age and Service Distribution 19
d. Member Reconciliation 2Q
V Summary of Plan Provisions 21
Vt Governmental Accounting Standards 24
Board Disclosure Information
1
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, 2008, has been completed, and the
results are presented in this Report. The contribution amounts developed in this valuatian are
applicable to the ptanlfiscal year ended September 30, 2010.
The contribution requirements, compared with amounts developed in the October 1,
2008 (after plan changes) and in the October 1, 2007, actuarial valuations prepared by Gabriel
Roeder Smith & Company (GRS), are as follows:
GRS GRS
Valuation Date 10/1/2007 1011/2008 10/1/2008
Applicable PIanll=iscal Yr. End 9/30/2009 9/30/2010 9/30/2010
Total Required Contribution
% of Total Annual Payroll 24.53% 25.08% 25.73%
Member Contributions
of Total Annual Payroll 2.00% 2.00% 2.00%
Village and State Required Contribution 728,729 780,850
of Total Annual Payroll 22.53% 23.08% 23.73%
State Contribution (1) 221,372 221,372 221,372
of Total Annual Payroll 6.84% 6.64% 6.58°/a
Balance from Village (1} 507,357 559,478
of Total Annual Payroll 15.69% 16.54% 17.15%
(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 Contributians
for determining its minimum fiunding requirements. For budgeting purposes, the
required Sponsor Contribution (Village and State) is 23.73% of Pensionable
Earnings for the fiscal year ending September 30, 2010. The precise Village
requirement is the applicable Sponsor percentage, less actual Sta#e Contributians
(up to the maximum $230,696).
2
As can be seen, the Total Required Contribution has just slightly increased from the
original valuation when expressed as a percentage of Total Annual Payroll. This increase is a
result of the change made to the Actuarial Value of Assets. Please see the following page for
more information regarding this revision.
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.
Bradle inrichs, FSA, EA
By:
D ug s H. oze
3
Plan Changes. Since .Prior Valuation.
Ordinance 2008-18 was passed and effective November 13, 2008, which
provides for the following changes to the Plan:
1} Normal Retirement Date was changed from age 55 to the earlier of age 55
or age 52 with 25 years of service.
2) One-year waiting period far eligibility was eliminated.
3) Minimum Chapter 175!185 benefit accrual rate was met. The multiplier is
2.5% #or the first 24 years of service, 0% for the service between 24 and
30 years and 2.0% for each year in excess of 30 years. Previously, it was
2.5% for all years of service, up to a maximum of 60% of Average f=inal
Compensation.
4} Lump sum optional form of payment was eliminated.
Per the actuarial impact statement and calculations provided by the prior actuary,
these provisions are fully funded by the use of the Chapter 1751185 Excess State
Monies as of September 30, 2008 in the amount of $627,925 and additional
State monies in the amount of $92,496.
Actuarial Assum tionlMethod Chan es Since Prior Valuation
There were no changes made to the actuarial assumptions or methods since the
prior valuation, other than the following:
1) Custodial expenses paid to Salem Trust are considered investment
related and, therefore, are not included in the calculation of the
Administrative Expenses for funding purposes. The prior actuary
assumed they were Administrative.
2} The method for determining the Actuarial Value of Assets was changed to
comply with Actuarial Standards of Practice {ASOP) Number 44.
Previously, the method used was a 5~year smoothing of the capital
appreciation. in order to avoid a bias per the ASOP, the Actuaria! Value of
Assets has been set equal #o the Market Value as of October 1, 2008.
The new method going forward will be a 5-year smoothing of the
difference between the Actual and Expected Market Value of Assets.
The original October 1, 2008 valuation included a smaA bias due to not resetting
the Actuarial Value equal to Market Value prior to implementing the new
smoothing technique.
Please note that the October 1, 2008 funding results summarized throughout this
report, both the original and the revision, include all plan changes effective
November 13, 2008.
4
C+umparative Summary of Principal Valuation Results
GRS GRS
10111200$ 10/1/2008 10/1/2007
A. Participant Data
Number Included
50
50
46
Actives
Service Retirees 4 4 3
Beneficiaries
Terminated Vested 0
12 0
12 0
11
Disability Retirees 1 1 1
Total 67 67 61
Total Annual Payroll 3,364,295 3,253,109 3,110,081
Payroll Under Assumed Ret. Age 3,364,295 3,253,109 3,110,081
Annual Rate of Payments to:
Service Retirees 81,218 81,218 18,163
Beneficiaries
Terminated Vested 0
219,198 0
219,199 0
193,799
Disability Retirees 38,585 38,585 37,940
B. Assets
Actuarial Value 10,045,838 10,376,733 9,673,520
Market Value 10,045,838 10,045,837 10,849,494
C. i_iabilities
Present Value of Benefits
Active Members
Retirement Benefits
9,736,103
9,431,846
9,616,784
Disability Benefits 933,306 925,570 1,054,966
Death Benefits 150,694 158,039 195,193
Vested Benefits 582,271 701,681 519,154
Refund of Contributions 37,524 34,783 29,854
Service Retirees 2,420,686 2,492,730 1,302,543
Beneficiaries
Terminated Vested 0
2,128,414 0
2,085,718 0
'!,739,314
Disability Retirees 567,717 571,977 571,818
Excess State Monies Reserve 0 0 444,983
Total 16,556,715 16,402,144 15,474,609
5
GRS
10/1/2008 10!112008
C. Liabilities - (Continued)
GRS
10!112007
Present Value of Future Salaries 28,895,259 27,889,878 27,027,461
Present Value of Future
Normal Costs (Aggregate Basis)
6,510,877
6,025,411
5,801,089
Present Value of Future
Normal Costs {Entry Age Basis)
4,952,283
4,682,808
4,193,064
Normal Cost {Aggregate, Level Percent) 758,066 702,811 667,538
Present Value of Future
Member Contributions
577,905
557,798
540,549
Actuarial Accrued Liability {Aggregate Basis) 10,045,838 10,376,733 9,673,520
Actuarial Accrued Liability (Entry Age Basis) 11,604,432 11,719,336 10,838,562
Unfunded Actuarial Accrued 0 0 0
Liability (UAAL)
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactir-es
5,116,817
5,150,425
3,613,675
Actives 3,812,561 4,453,395 4,453,429
ntributions
C
b
M 429
283 283,429 302,658
er
o
em ,
Total 9,212,807 9,887,249 8,369,762
crued Benefits
d A
#
N 865
941 205,844 762,157
c
e
on-yes ,
Total Present Value Accrued 10,154,672 10,093,093 9,131,919
Benefits
Increase {Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments 0 511,421
0
Assumption Changes 0
0 649
337
New Accrued Benefits 0 ,
663)
(594
Benefits Paid 0 ,
767
706
Interest
Other {Change in Actuary) 61,579 ,
0
Total: 61, 579 961,174
6
GRS GRS
Valuation Date 10/1/2008 10/1/2008 10/112007
Fiscal Year Ending
th
bl
t
li 9/30/2010 9/30/2010 9!3012009
e
e
o
ca
App
E. Pension Cost
Normal Cost (with interest)
% of Total Annual Payroll* 23.43 22.57 22.42
Administrative Expense (with interest)
of Total Annual Payroli* 2.30 2.51 2.11
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 0 years
(as ofi 1011108)
of Total Annual Payroll*
0.00
0.00
0.00
Total Required Contribution
% of Total Annual Payroll* 25.73 25.08 24.53
Expected Member Contributians
of Tatal Annual Payroli* 2.00 2.00 2.00
Expected Village & State Contrib.
of Total Annual Payroll 23.73 23.08 22.53
F. Past Contributions
Plan Years Ending: 9/30/2008
I~ Total Required Contribution 777,591
Village and State Requirement 715,784
Actual Contributions Made:
Members 61,807
Village .577,584
State 321,142
Total 960,533
G. Actuarial Gain {Loss) NIA
* Contributions developed as of 1011108 are exp ressed as a percentage of projected
annual payroll at 1011108 of $3,364,295
7
H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liabiiity
as of:
Projected Unfiunded
Year Accrued Liabiii
NIA -Aggregate Actuarial Cost Method
I. (i) 3 Year Comparison of Actual and Assumed Increases in Pensionable Compensation
Actual Assumed
Year Ended 9/30/2008 4.7% 6.0%
Year Ended 9/30/2007 9.8% 6.0%
Year Ended 9/30/2006 11.2% 6.0%
(ii) 3 Year Comparison of Investment Return on Actuarial Value
Actual Assumed.
Year Ended 9130/2008 0.7% - $.0°/°
Year Ended 9/30/2007 9.1 % 8.0%
Year Ended 9/30/2006 5.0% 8.0%
r (iii} AWerage Annual Payroll Growth -
i
I i (a} Payroll as of: 10!112008 $3,364,295
~ ~ 10/1/1998 1,552,984
(b) Total Increase 116.6%
~~ (c) Number of Years 10.00
(d) Average Annual Rate 8.0%
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 complete and accurate, and in my opinion, the techniques and assumptions
used are reasonable and meet the requirements and in#ent 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 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 regoired contribution rates have been taken into accourit in the
valuation.
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 Retirement
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 323'15-9000
SECTION II
VALUATION INFORMATION
9
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
Assumptions
Mortality Rate 1983 Group Annuity Mortality Table. Disabled
members set forward 5 years.
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 Fates 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 4D°i°
2 40%
3 4D%
4 40%
5+ 1D0%
Disability Rate See table on the following page. 75% of
disabilities are assumed to be service-incurred.
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 NIA,
Administrative Expenses Average of actual administrative expenses
over the previous two years.
10
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
(continued)
% Becoming Disabled % Terminating
A_ge During the Year Duringthe Year
ZO 0.14% 9.00%
25 0.15% 8.55°/a
j 30 0.18% 7.50%
35 0.23% 5.70%
40 0.30°/a 3.9Q%
45 0.51 % 2,40%
50 1.00% 1.20%
55 1.55% 0.45%
~ ~ ~ 60 0.00% 0.30%
Fundin Method
Aggregate Actuarial Cost Method
,F
11
VALUATION NOTE
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 Benefts is the single sum value on the valuation date of ali future
benefits to be paid to current Members, Retirees, Beneficiaries, Disability Retirees
and Vested Terminations.
Narmal Current Year's Cost Rate is determined in the aggregate as the ratio of (a} and (b}
as fiollows:
(a} The present value of benefits far all Plan participants, Tess 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 Narmal Cost dollar requirement is the ratio of (a} and (b}, multiplied by the Total Annual
Payroll as of the valuation date.
Aqgreaate Actuarial Cast Method (Level Percent of Compensation} is the method used to
determine required contributions under the Plan. The use of this methad involves the
systematic funding of the Normal Cost (described above}.
Total Required Contribution is equal to the Normal Cost plus an adjustment far interest
a according to the tinning of sponsor contributions during the year.
12
PARTf~1L HISTaRY O.F PREMIUM TAX REFUNDS
Received During increase from
Fiscal Year Amount Previous Year
1989 52,$66.00
1990 49,647.00 -6.1
1991 54,960.00 10.7°/a
1992 51,832.00 -5.7%
1993 49,897.00 -3.7%
1994 54,214.00 $.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°/a
1999 80,911.74 -12.5%
2000 78,246.11 -3.3%
2001 108,200.$7 38.3°/a
2002 134,40$.43 24.2%
2003 159,943.14 19.0%
2004 203,317.14 27.1
2pQ5 209,222.36 2-~%
2006 233,640.77 11.7%
2007 325,961.92 39.5°/a
2008 321,142.12 -1.5%
13
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SECTION 111
TRUST FUND
14
Village of North Palm Beach
Fire and Police Retirement Fund
BALANCE SHEET
September 30, 2008
ASSETS COST VALUE MARKET VALUE
Cash and Cash Equivalents:
Money Market
922,462.68
922,462.69
Pending Trades Receivable 19,363.46
00
163
229 19,363.46
229,163.00
Cash .
,
Total Cash and Equivalents 1,170,989.15 1,170,989.15
Receivable:
Member Contributions 'tn Transit
1,243.62
1,243.62
City Contributions in Transit 8,077.42
38
109 8,077.42
109.38
Buyback Contributions
State Contributions .
321,142.12 321,142.12
Accrued Income 57,119.68 57,119.68
Total Receivable 387,692.22 387,692.22
Investments:
U S Govt & Agencies
1,836,925.40
1,857,760.78
Gorporate Bonds 1,418,945.23
50
133
547
5 1,245,757.80
5,509,154.02
Common Stocks .
,
,
Total Investments 8,803,004.13 8,612,672.60
TOTAL ASSETS 10,361,685.50 14,171,353.97
LIABILITIES AND NET ASSETS
Liabilities:
Payable:
Unpaid Investment Expenses
4,165.31
141
69
7
4,165.31
7,141.69
Unpaid Administrative Expenses
Prepaid City Contribution .
,
114,208.88 114,208.88
Total Liabilities 125,515.88 125,515.88
Net Assets:
Active and Retired Members' Equity
10,236,169.62
10,045,838.09
Total Net Assets 10,230,169.62 10,045,838.09
TOTAL LIAB1LlTIES AND NET ASSETS 10,361,685.50 10,171,353.97
Village of North Palm Beach
Fire and Police Retirement Fund
CHANGES IN NET ASSETS AVAILABLE FOR BENEFLTS
September 30, 2008
Market Value Basis
INCOME
Contributions:
Member 59, 026.06
Buy-Back 2,781.00
City 577,583.88
State 321,142.12
Total Contributions
Earnings from Investments
~ ~ i Interest & Dividends 349,646.00
4
# ~ f Net Realized and Unrealized Gain {Loss) (1,388,395.90}
Total Earnings and Investment Gains
EXPENSES
Administrative Expenses:
Investment Related` 67,018.00
Other 63,758.00
Total Expenses
Distributions to Members:
Benefit Payments 56,974.15
Lump Sum Retiree Distributions 526,007.00
Return of Contributions 11,681.92
Total Distributions
Change in Net Assets far the Year
Net Assets Beginning of the Year
Net Assets End of the Year
*lnvestment Related expenses include investment advisory,
custodial and performance monitoring fees.
15
960,533.06
(1,038,749.90)
130,776.00
594,663.07
{803,655.91)
10, $49,494.00
10,045,838.09
16
Village of North Paim Beach
Fire and Police Retirement Fund
CHANCES IN NET ASSETS AVALLAB.LE .FOR BENEFITS
September 30, 200$
Actuarial Asset Basis
INCOME
Contributions:
Member
Buy-Back
City
State
Total Contributions
Earnings from 1n~estments
Interest & Dividends
Change in Actuarial Value
Total Earnings and lnr-estment Gains
EXPENSES
Administrative Expenses:
Investment Related*
Other
Total Administrative Expenses
Distributions to Members:
Benefit Payments
Lump Sum Retiree Distributions
Retum of Contributions
Total Distributions
Change in Net Assets for the Year
Net Asse#s Beginning of the Year
Net Assets End of the Year**
*In~estment Related expenses include investment advisory,
custodial and performance monitoring fees.
**Net Assets may be limited for actuarial consideration
59,026.08
2,781.00
577,583.$8
321,142.12
349,646.00
(212,421.90)
67,018.00
63,758.00
56,974.15
526,007.00
11,681.92
960,533.06
137,224.10
130,776.00
594,663.07
372,318.09
9,673,520A0
10,045,838.09
SECTION IV
MEMBER STATISTICS
17
ELlGlE3ILTY fOR RETIREMENT
Members are eligible for Normal Retirement based upon the following criteria:
1) Attained Age 55
2) Attained Age 52 with 25 Years of Credited Service
Members are eligible #or Early Retirement based upon the #ohowing 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,
MILDWORM KENNETH,
~ SMITH WILLIAM J. SR,
WARREN, GEORGE,
Earl Retirement
MAKE HENRY,
MATTING, SALVATORE,
VAN DEUSEN SCOTT,
18
STATISTICAL DATA
Number
Average Current Age
Average Age at Employment
:~
,,
Average Past Service
Average Annual Salary
1 oiv2aa7 1 ail i2oas
46 50
39.9 39.4
30.9 32.4
9.0 7.0
$67,610 $67,2$6
19
AGE AND SERVICE DISTRIBUTtON
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 2 0 0 0 0 0 0 0 0 0 0 2
25 - 29 1 0 3 3 1 0 0 0 0 0 0 8
30-34 1 0 1 3 1 1 0 0 0 0 0 7
35 - 39 1 D 2 0 1 3 3 0 D 0 0 10
40-44 3 0 1 0 0 2 0 0 D D D 6
45 - 49 0 0 0 1 0 3 1 0 2 0 0 ~
50 - 54 1 0 0 ~ 0 1 1 0 2 0 D 5
55-59 1 0 0 0 0 1 0 0 0 0 1 3
60 - 64 0 0 0 0 D 1 0 1 D D 0 2
65* 0 0 D 0 0 0 0 0 D 0 0 0
Total '10 0 7 7 3 12 5 1 4 4 1 50
20
VALUATION PARTICIPANT RECONGILlATION
1. Ac#ive lives
a. Number in prior valuation 1011107 46
b. Terminations 1
I
i i. Vested (partial or full) with deferred
benefits ~
ii. Non-vested or full lump sum distribution
received
c. Deaths 0
i. Beneficiary receiving bene#its
No future benefits payable
ii 0
.
d. Disabled 0
2
e. Retired 1
f. Data Correction
':
,
g. Continuing participants 39
11
h. New entrants 50
i. Total active life participants in valuation
i
r-~ 2. Non-Ac#ive lives (including beneficiaries receiving benefits}
~ Service
Retirees,
Vested Receiving Receiving
Receiving Death Disability Vested
Benefits Benefits Benefits Deferred Total
a. Number prior 3 0 1 11 15
valuation
J b. I n 2 0 0 1 3
c. out 1 a 0 ° 1
I' d. Number current 4 0 1 12 17
valuation
SECTION V
SUMMARY OF PLAN PROVISIONS
21
SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 2008-18}
Eli ibili
Gredited Service
Sala
Avers a Final Com ensation
Member Contributions
Viliaae and State Contributions
Normal Retirement
FuII-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 Firefghter.
Gross Compensation, excluding bonuses, sick
and Vacation pay, but 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 Vli,
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 2.5Q% of Average Final Compensation
times
Credited Service, up to 24 years;
plus
0% of Average Final Gompensation
times
Credited Service for each year after 24 years
up to 30 years;
>t lus
2.0% of Average Final Compensatian
times
Credited Service for each year in excess of 30.
Form of Benefit Ten Year Certain and Life Annuity
(options available).
22
Earl Retirement
Eligibility Age 50, regardless of Credited Service.
Beneft Accrued benefit, reduced 3°1° per year that the
benefit commencement date precedes the
Normai Retirement Date.
' Vestin
Schedule 100% after 10 years of Credited Service.
Benefit Amount Member will receive the vested portion of his
(her) accrued benefit payable at the o#herwise
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 of drugs, illegal
participation in riots, service in military, etc.
Benei'!t Benefit accrued to date of disability but not
less than 42% of Average Finai 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 (while employed}
Vested 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.
23
Death Benefits (continued)
Pre-Retirement (after employment)
Eligibility
Vested terminated member who has reached
age 50.
Benefit Benefit payable as if member re#ired on the
date of death, selected a 50% Joint and
S-~rvivor annuity, and then passed away, with
50% of the benefit then continuing to the
survivor for life.
Post-Retirement
Cost of Livin Increases
Board of Trustees
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 will 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
24
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25
D15CLQSURE INFORMATION PER STATEMENT N0.27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
ANNUAL PENSION COSTS AND RELATED INFORMATION
Contribution rates as of 9130108
Village and State 23.0$%
Plan Members 2.00%
Actuarially Determined Contribution 715,784
Contributions made 715,784
Actuarial valuation date 10/1/2006
Actuarial cost method Aggregate
Amortization method NIA
Remaining amortization period NIA
Asset valuation method Market Value
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
Year Determined of APC
Ending Contribution Contributed
9/30/2008 7 ~ 5,784 100%
913012007' S39,B51 100%
s13a2oos o90, ~ ss 1 oa°i°
Net
Pension
Obligation
(179,119)
(186,453}
(194,587)
* Annual Pension Cost from Village and State sources.
26
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 fund`mc
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 contrib
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:
9130107 9130108
Actuarially Determined
Contribution (A) 539,651 715,784
Interest on NPO {15,567) (14,916)
Adjustment to (A) 23,701 22,250
Annual Pension Cost 547,785 723,118
Contributions Made 539,851 715,784
Increase in NPO 8,134 7,334
NPO Beginning of Year (194,587) {186,453)
NPO End of Year (186,453) (179,119)