Fort Walton Beach Council agenda — 02-28-12 regular — reading text

783 24, 702, 763 24, 199, 899 23, 793, 971 Total Actuarial Accrued Liability 5, 828, 634 5, 828, 634 5, 325, 750 4, 880, 509 Unfunded Actuarial Accrued Liability D. Actuarial Present Value of Accrued Benefits Vested Accrued Benefits Inactives 15, 516, 635 15, 516, 635 15, 204, 401 12, 342, 508 Actives 4,648, 082 4, 648, 082 4, 519, 939 6, 310, 208 Member Contributions 899, 658 899, 558 899, 658 1, 058, 407 21, 064, 375 21, 064, 375 20623, 998 19, 711, 123 Total Non -vested Accrued Benefits 304, 509 304, 509 284, 676 325, 339 Total Present Value Accrued Benefits 21, 368, 884 21, 368, 884 20,908, 674 20, 036, 462 Increase Increase ( ( Decrease)Decrease) inin PresentPresent ValueValue ofof Accrued Benefits Attributable to: Plan Amendments 0 00 0 Assumption Changes 00 460, 210 0 0 0 452,452, 459459 NewNew AccruedAccrued BenefitsBenefits Benefits Paid 0 0 1,1, 137,137, 656)656) InterestInterest 00 00 1, 557, 411 0 0 0 Other Total: 0 460, 210 872, 212  y New Method Old Method Old Method Old Method New Assump. New Assump. Old 1011/ Assump. 2010 Old10/ Assump. 1/ 2009 Valuation Date 10/ 1/ 2010 10/ 1/ 2010 9/ 30/ 2012 9/ 30/ 2012 9/ 30/ 2012 9/ 30/ 2011 Applicable to Fiscal Year Ending E. Pension Cost Normal Cost ( with interest) 19. 4 19. 4 18. 8 17. 9 of Total Annual Payroll* Adminstrative Expense (with interest) 1. 4 1. 4 1. 4 0. 8 of Total Annual Payroll* Payment Required to Amortize Unfunded Actuarial Accrued Liability over 30 years as of 1011110) 21. 8 29. 3 27. 1 17. 7 of Total Annual Payroll* Total Required Contribution 50. 1 47. 3 36. 5 of Total Annual Payroll* 42. 6 Expected Member Contributions 5. 0 5. 0 5. 0 4. 4 of Total Annual Payroll* Expected City & State Contrib. 42.3 32. 1 of Total Annual Payroll* 37. 6 45. 1 F. Past Contributions Plan Years Ending: 9/ 3012010 Total Required Contribution 776, 090 665, 220 City and State Requirement Actual Contributions Made: Members 108, 768 500, 007 City State 165, 213 Total 773. 986 364, 271) G. Net Actuarial Gain ( Loss) Contributions developed as of 1011110 are expressed as a percentage of projected annual payroll at 10/ 1/ 10 of $2, 195, 529.  7 H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability as of: Projected Unfunded Year Accrued Liability 2010 5, 797, 2012 2011 5, 759, 645 5, 443, 075 2017 P022 4,840, 040 2032 2, 145, 306 2040 0 I. ( 1) 3 Year Comparison of Actual and Assumed Increases in Pensionable Compensation. Actual Assumed 0. 0% 7. 5% Year Ended 9/ 3012010 3. 0% 7. 5% Year Ended 9/ 30/ 2009 2. 9% 7. 5% Year Ended 9/ 30/ 2008 ii) 3 Year Comparison of Investment Return on Actuarial Value Actual Assumed 22% Year Ended Year Ended 9/ 30/ 2010 9/ 30/ 2009 2. 0% 8.8. 0%0% 4. 1% 8. 0% Year Ended 9/ 30/ 2008 iii) Average Annual Payroll Growth 1011/ 2010 $ 2, 195, 529 a) Payroll as of: 2, 007, 976 10/ 1/ 2000 9. 3 b) Total Increase 10. 00 c) Number of Years 0. 9% d) Average Annual Rate  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 intent of Part VII, Chapter 112, Florida Statutes. 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. Jason L. Frankel, EA, MAAA Enrolled Actuary # 11 -6888 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 Mr. Keith Brinkman Bureau of Local Municipal Police and Fire Retirement Systems Pension Trust Funds Post Office Division of Retirement Post Office Box 3010 asse Box 9320315 -9000 Tallahassee, FL 32315 -3010  SECTION II VALUATION RESULTS  0 ACTUARIAL ASSUMPTIONS AND FUNDING METHODS Assumptions Mortality Rate Prior: 1983 Group Annuity Mortality Table sex distinct) with a Five year set forward for disabled lives. Current: RP 2000 Combined Healthy Table sex distinct) with a five year set forward for disabled lives. Interest Rate 8% per year compounded annually, net of investment related expenses. Retirement Aue Earlier of', 1) Age 55, or 2) 30 years of service, regardless of age. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year. Early Retirement Commencing with the earliest Early Retirement Age ( 50), Members are assumed to retire with an immediate subsidized benefit at the rate of 2% per year. See table on next page( 1205). Disability Rate Termination Rate See table on next page (T -5). 7. 5°/ per year until the assumed retirement Salary Increases age; see Table on next page. Projected salary at retirement is Increased 20% to account for non -regular