Fort Walton Beach Council agenda — 03-19-12--special--audit — reading text

CONTINUED) E. Fund Financial Statements ( Continued) O\ 16INING STATEMEN I OF CHANGES IN PLAN NET ASSETS Fmplosee Retirement Funds Total General PaGee Lmplus, e Employees' Officers' Flrefure" Retirement Retirement RcM1rement Retirement Funds ADDFII ContEmplriObautNS)erions Planmembes 5 1306. 268 246313 S 740603 104. 325 590. 071 130. 517 2, 639. 942 481, 155 168. 042 193034 361076 Slate of Honda total corarbutions 1 553 581 1, 015, 97U 913 622 3 482, 173 Imestmeol ir, au, ( I ... s, 545, 765 3429, 955 1, 701461 9677, 181 Less imatment e,,, nse 143117) 5) 269) 48. 730) 1251. 1161 Net In >¢ tmenl inwme Oocv) 5, 400, 648 2372686 1, 652731 9. 426. 065 18706 61541 362555 442802 Miscellaneous revenue TOTALADDINONS 6971935 3450. 197 2928908 13351040 DEDUCTIONS Benefits and refunds paid Retnemanl pnyments 2, 330972 1338, 836 1, 011, 290 4, 681. 098 Daaladn' pa} mert' 53242 107561 13 703 174506 75. 621 4 , 07117 74. 934 196262 Other Total tenants and refunds paid 3459, 835 1 492 104 1, 099 927 5. 051866 Adlninis train , axperees I caul 571 3 290 2, 706 6. 567 522, 33006 28. 546 113. 767 COnvacroal set, ' es 9, 19, 1776 16. 519 29490 Od,, 61981 40072 47, 771 149. 824 1 out administrative e,, ertces 101 AI. DEDUCTIONS 1, 121. 816 1 532, 176 1 14 698 5, 201 690 NLF INCRFASF( DFCREASL) 4, 450, 119 1, 916. 021 1, 781210 8149350 28842977 16219409 9655717 54723/ 03 BUGINNING OF PEAR 33$298096 1143 6' 872453 FNDOF) LAR mu" 58 Packetp „ 84  3. t. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 8 - DEFINED CONTRIBUTION PENSION PLAN City of Fort Walton Beach Defined Contribution Plan In December 2009, Council passed resolutions to close the General Employees Defined Benefit Plan to employees as of December 31, 2009. All general full -time employees hired on or after January 1, 2010 became members of the City of Fort Walton Beach Defined Contribution Retirement Plan ( Plan). The Plan is a money purchase defined contribution retirement plan administered by ICMA Retirement Corporation, with the City serving as trustee. All funds are held in the ICMA Retirement Corporation Governmental Money Purchase Plan & Trust. The City Finance Director serves as the coordinator for the Plan. The Plan requires a 5% payroll contribution by the employee with a 5% employer ( City) match. and employees can increase their contribution: however, only an additional 2/ %. would also be matched by the employer ( City). Members of the General Employees Defined Benefit Pension Plan who were not fully or partially vested were permitted to transfer their contribution to the Plan as a one -time irrevocable election. The authority for establishing and amending the Plan's provisions lies with the CAN Council. The City Council also has the authority for amending contribution requirements. Contributions made to the Plan by the employees and by the City were $ 76,407 and 76, 407, respectively, for the year ending September 30. 2012. NOTE 9 - DEFERRED COMPENSATION PLAN The City offers employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is a tax -deferred supplemental retirement program that allows City employees to contribute a portion of their salary before federal income taxes to a retirement account. The assets are held in trust for the employee' s benefit. The plan participants, individually, select and make changes in funding options made available by the independent plan administrator. Since plan participants select the investment fund or funds in which their deferred compensation accounts are invested, the City has no liability for investment losses. The City's fiduciary responsibility is to administer the plan properly and to assure the investment alternatives made available are reasonable. In accordance with GASB Statement No. 32, the assets and liabilities of the plan are not reflected in the City' s financial statements since the City has no fiduciary responsibilities. other than administrative, in connection with the Plan. Assets of the plan have a fair value of $2,795, 852 at September 30. 2012. Contributions made by plan members during the year ended September 30, 2012, were $ 197, 547. 59 sw dGket Pg: §  3. t. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 10 - OTHER POST EMPLOYMENT BENEFITS (OPEB) The following disclosures are represented as of September 30, 2012, the date of the latest actuarial valuation ( except for the plan funded status and assumptions and methods, which are represented as of October 1, 2010): A. Plan Description Pursuant to Section 112. 0801. Florida Statutes, the City is mandated to permit eligible retirees ( as defined in the City' s pension plans) and their eligible dependents to participate in the health insurance program at a cost to the retiree that is no greater than the cost at which coverage is available for active employees. Retirees pay 100% of the blended ( active and retiree combined) equivalent premium rates. The blended rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the plan on average than those of active employees. The City provides this benefit to its employees through a single - employer defined benefit plan. The plan does not issue a separate report. B. Funding Policy The City is financing the post employee benefits on a " pay -as- you -go" basis. For fiscal year 2012, 91 retirees and /or dependents received health care benefits. Annual required implied contributions were $ 488, 841 for the current fiscal year, towards which the City made an implied contribution of $ 278, 132. Retiree contributions totaled $ 353. 062 for the fiscal year ended September 30, 2012. At September 30, 2012. the City recorded a net OPEB obligation of $497, 659 for governmental activities and $ 161. 164 for business -type activities in its govermnent -wide statement of net assets. The OPEB obligation is a function of the annual required contribution, interest. adjustments to the annual required contribution. annual pension costs, and actual employers' contributions made to the plan. C. Membership At September 30. 2012, membership consisted of 91 Retirees and beneficiaries currently receiving benefits Teininated employees entitled to benefits but not receiving them - Active employees 238 329 Total Participating employers 60