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

compensation. Administrative Expenses 28, 688 annually. Cost -of- Living Increase 3% per year beginning at retirement. Payroll Growth 3. 0% per year, but limited to the 10 -year historical average ( 0. 9% in 2010).  10 ACTUARIAL ASSUMPTIONS AND FUNDING METHODS Continued) Current Salary Terminating as a % of Salary Becoming Disabled °% During the Year During the Year at Age 55 7. 9% 8. 0% 20 0. 14% 72% 16.4% 30 0. 18% 0. 30% 5. 2% 33. 8% 40 2. 6% 70.0% 50 1. 00% Funding Method Entry Age Normal Actuarial Cost Method  1f VALUATION NOTES Total Annual Payroll 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 and Vested Terminations. Normal ( Current Year's) Cost is determined for each participant as the present value of future benefits, determined as of the Member' s entry age, amortized as a level percentage of compensation over the anticipated number of years of participation, determined as of the entry age. Individual Entry Age Normal Actuarial Cost Method ( Level 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) and the Unfunded Accrued ( Past Service) Liability. The actuarial accrued liability for active participants is the difference between the present value of future benefits and the present value of future Normal Costs. The actuarial accrued liability for inactive participants is the present value of future benefits. Unfunded Actuarial Accrued Liability ( UAAL) is the difference between the actuarial accrued liability ( described above) and the actuarial value of assets. Under the Entry Age Normal Actuarial Cost Method, an actuarial gain or loss, based on actual versus expected UAAL, is determined in conjunction with each valuation of the plan. Total Required Contribution is equal to the Normal Cost plus an amount sufficient to amortize the Unfunded Accrued Liability over no more than 3D years. The required amount is adjusted for interest according to the timing of contributions during the year.  12 HISTORY OF PREMIUM TAX REFUNDS Received During Increase from Fiscal Year Amount Previous Year 1989 120, 695. 00 1990 120, 426. 00 0. 2% 1991 119, 812. 00 0. 5% 1992 122, 521. 00 2. 3% 1993 129, 208. 00 5. 5% 1994 139, 590. 97 8. 0% 1995 147, 370. 76 5. 6% 1996 167, 681. 47 13. 8% 1997 165, 462. 90 1. 3% 1998 181, 575. 79 9. 7% 1999 159, 774. 09 12. 0% 2000 148, 735. 51 6. 9°/ 2001 150, 027. 27 0. 9% 2002 174, 632. 43 16. 4% 2003 189, 314. 05 8. 4% 2004 199, 845. 82 5. 6% 2005 200, 804. 78 0. 5% 2006 200,944. 26 0A% 2007 200, 804. 78 0. 1% 2008 200, 804. 78 0. 0% 2009 171, 510. 96 14. 6% 2010 165, 213. 10 17%  13 EXCESS STATE MONIES RESERVE Actual Applicable Excess State State Contribution " Frozen" Amount Monies Reserve 1998 181, 575. 79 181, 575. 79 0. 00 1999 159,774. 09 181, 575. 79 0.00 148, 735. 51 181, 575. 79 0. 00 2000 2001 150, 027. 27 181, 575. 79 0. 00 2002 174, 632. 43 181, 575. 79 0. 00 2003 189, 314. 05 181, 575. 79 7,738. 26 199, 845. 82 181, 575. 79 18, 270. 03 2004 2005 200, 804. 78 181, 575. 79 19, 228. 99 200, 944. 26 181, 575. 79 19, 368. 47 2006 2007 200, 804. 78 181, 575. 79 19, 228. 99 2008 200, 804. 78 181, 575. 79 19, 228. 99 2009 171, 510. 96 181, 575. 79 0. 00 165, 213. 10 181, 575. 79 0. 00 2010 Total State Monies Reserve 103, 063. 73  14 Reconciliation of Unfunded Actuarial Accrued Liabilities 4, 880, 509 1) Unfunded Actuarial Accrued Liability as of October 1, 2009 329,079 2) Sponsor Normal Cost developed as of October 1, 2009 20, 621 3) Expected Administrative Expenses during fiscal 2010 417, 592 4) Interest on ( 1), ( 2) and ( 3) 665, 220 5) Sponsor Contributions to the System during the year ending September 30, 2010 21, 102 6) Interest on ( 5) 4, 961, 479 7) Expected Unfunded Accrued Liability as of October 1, 2010 1) +( 2) +(3) +( 4)-( 5)-( 6) 364, 271 8) Change to UAAL due to Actuarial ( Gain) or Loss ( 10) - ( 9) - ( 7) 502, 884 9) Increase to UAAL due to Assumption Change 5, 828, 634 10) Unfunded Accrued Liability as of October 1, 2010 Years 10/ 1/ 2010 Amortization Date Amount Amount Established Remaining 24 807, 768 66,027 method change 10/ 1/ 2004 24 789, 253 64, 514 method change 10/ 1/ 2004 499, 722 40, 847 benefit change 101112004 24 10/ 1/ 2005 25 783, 848 63, 065 actuarial loss 26 19, 223 1, 524 actuarial loss 10/ 1/ 2006 10/ 1/ 2007 27 425, 687 33, 303 actuarial loss 28 525, 765 40, 703 actuarial loss 10/ 1/ 2008 28 241, 943 18, 695 method change 10/ 1/ 2008 29 867, 270 66, 252 actuarial loss 10/ 1/ 2009 30 364, 271 27, 535 actuarial loss 10/ 1/ 2010 502, 884 38, 012 10/ 1/ 2010 30 assump change 5, 828, 634 460, 477 It is assumed that 50% of the cost method change base from 2004 was attributable to unfavorable actuarial experience prior to that date. SECTION III TRUSTFUND  15 City of Fort Walton Beach Police Officers' Pension Fund BALANCE SHEET September 30, 2010 COST VALUE MARKET VALUE ASSETS Cash and Cash Equivalents: 1, 354, 244. 08 1, 354, 244. 08 Money Market 1, 354, 244. 08 1, 354, 244. 08 Total Cash and Equivalents Receivable: 75, 264. 74 75, 264. 74 Accrued Income 75, 264. 74 75, 264. 74 Total Receivable Investments: 3, 056, 349. 91 3, 232,279. 84 U S Govt/Govt Sponsored /Agency 1, 977,873. 69 2, 200, 409.74 Corporate Bonds /CMOs /REMICs 5, 779, 999. 27 6, 717, 219. 28 Corporate Stocks /REITs 64, 322. 96 79, 387. 35 Foreign /ADR Securities Mutual Funds: 1, 552, 662. 28 1, 740, 292. 61 Equity 1, 233, 527. 13 1, 853, 643. 51 International Equity 13, 664, 735. 24 15, 823, 23233 Total Investments