Fort Walton Beach Council agenda — 08-22-2007 special agenda — reading text

2010 4, 395, 116 2019 523,514 2020 100, 877 2021 o L.:: :~; L:":": Conc~ Rts  3- 4 Comparison of Actual and Assumed Salary Increases Actual rates of increase in salary ( including promotion) for Plan members common to two consecutive valuations are measured and compared to the assumed valuation rates as shown below. Period Ended Actual Rate of Assumed Rate Increase* of Increase September 30 1999 7.95% 5. 49% 2000 7. 65% 5.45% 2001 5.87% 5. 44% 2002 7. 67% 5.43% 2003 5. 80% 5. 46% 2004 6.59% 5.41% 2005 8. 84% 5.29% 2006 5. 24% 5. 28% Note actual rates of salary increase greater than the assumed rate do not necessarily translate to actuarial losses; actuarial experience is measured as the difference between actual actuarial accrued liabilities and those expected if all members' salaries were to increase by the assumed salary increase rate. Thus, salary experience is value weighted and tracks the difference in actual liability growth from that expected. Comparison of Actual and Assumed Investment Returns. Actual rates of return are annualized rates adjusted for timing of payments and take into account dividends and interest and realized and unrealized gains and losses. These rates are compared to the assumed valuation rates as shown below. Period Ended Actual Rate of Assumed Rate of Return September 30 Retum* 1999 13. 72% 8.00% 2000 12. 15% 8. 00% 2001 8.59% 8.00% 2002 0. 03% 8.00% 2003 6. 65% 8.00% 2004 2.52% 8.00% 2005 2. 61% 8.00% 2006 5.53% 8.00% Investment return measured on actuarial value of assets. C~OM~ pts  3- 5 Calculation of Actual Rate of Investment Return Actual rates of investment return are calculated in accordance with ERISA guidelines and are based on actuarial value of assets. R= 21 , where M1 +M2-1 I = the interest, dividends, plus appreciation or (depreciation), net of investment expenses M1 = beginning actuarial value M2 = ending actuarial value Plan Year Ended 9/ 30/ 06 R= 2 X $ 1,543, 402 27,938, 158 + $ 29, 449, 082 - $ 1, 543, 402) R=$ 3, 086,804 55, 843, 838 R= 5.53% Documentation of Past Excess Contributions 1. ( a) Cumulative Past Excess Contributions as of 09/ 30/ 05 1, 166, 033 b) Interest on l(a) 93,283 1, 102, 102 2. Required Contributions 3. Plan Contributions Made Including Interest 1, 101, 495 4. Cumulative Past Excess Contributions as of 09/ 30/ 06 1, 258, 708 la)+(lb)-(2)+( 3)] Additional Disclosures There are no additional disclosures required under Rules 22D-1.003(4)( f)and ( g) of the State of Florida, Department of Management Services, Division of Retirement. W! Co;C; ~~ ts  APPENDIX A- I CITY OF FORT WALTON BEACH GENERAL EMPLOYEES' RETIREMENT FUND SUMMARY OF PLAN PROVISIONS THAT AFFECT THE VALUATION Definitions 1. Ordinances: Article II, Chapter 17, Sections 17- 11 through 17- 23, of the City of Fort Walton Beach Code of Ordinances ( Ordinance # 1526, # 1599, # 1640 and # 1686). 2. Eligible Employee: All full-time City employees, including the City Manager, Finance Director and the Chief of Police if they elect to participate, but not including City Council members, police officers other than the Chief of Police, and firefighters. 3. Member Contributions: 5% of Compensation contributed by Employees. City pays Employee Contributions for City Manager and Finance Director. 4. Credited Service: The number of full and fractional years worked from date of hire to date of termination or retirement. Members may purchase Credited Service for periods of full-time employment by the City during which time the Member did not participate in the Plan. Employees hired prior to 12/ 11/ 79 receive Credited Service for each full and fractional year of military service up to two years. L:: L:"'~:":= : Conc~ Rts  APPENDIX A-2 5. Vesting: 1) For City Manager, Finance Director or Department Heads, including Chief of Police: Years of Credited Service as a Charter Officer or Vested Department Head Percentage 1 20% 2 40% 3 60% 4 80% 5 100% Years of Credited Service other than as a Charter Officer or Department Head: 10% per year. 2) All other employees: 100% after 10 years of Credited Service. 6. Compensation: Basic monthly earnings calculated on the basic rate of pay, exclusive of all overtime pay, bonuses, commissions and extra or additional remuneration. 7. Final Average Monthly Earnings: One-twelfth of the average of an Employee' s Compensation for the five best years of the last 15 years of employment. 8. Accrued Benefit: 1) For Employees retiring on or before AprilS, 1999, a monthly benefit payable for life, starting at the Normal Retirement Date, equal to 2.50% of Final Average Monthly Earnings times Credited Service, but no greater than 100% of current Compensation. 2) For Employees who are 100% vested as of AprilS, 1999, and retire after AprilS, 1999, a monthly benefit payable for life starting at the Normal Retirement Date, equal to their choice of: Conci~ts  APPENDIX A-3 a) 2. 75% of Final Average Monthly Earnings times Credited Service, but not greater than 75% of current Compensation, or b) 2.50% of Final Average Monthly Earnings times Credited Service, but not greater than 100% of current Compensation. 3) For Employees who are less than 100% vested as of AprilS, 1999, and retire after AprilS, 1999, a monthly benefit payable for life starting at the Normal Retirement Date equal to 2. 75% of Final Average Monthly Earnings times Credited Service, but not greater than 75% of Compensation. 9. Normal Retirement: Eligibility Date - Age 62 and attainment of 100% vesting. Benefit - Accrued Benefit payable as of the Normal Retirement Date. 10. Early Retirement: Eligibility