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HomeMy WebLinkAboutItem D29 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: September 21,2005 Division: Fire Rescue Services Bulk Item: Yes X No - Department: Fire Rescue Staff Contact Person: Clark Martin AGENDA ITEM WORDING: Acceptance ofthe Monroe County Length of Service Award Program (LOSAP) actuarial valuation report for the Plan Year 2005. ITEM BACKGROUND: These actuarial valuations and/or cost determinations were prepared and completed by Glenn F. Mouton, on behalf of Mouton & Company, Inc. They meet the requirements and intent of Part VII, Chapter 112, Florida Statutes (Actuarial Soundness of Retirement Systems). PREVIOUS RELEVANT BOCC ACTION: On June 9,1999, the Board adopted Ordinance No. 026-1999, providing for the creation of a Length of Service Awards Plan, providing benefits to eligible volunteer fire fighters and emergency medical services volunteers. CONTRACT/AGREEMENT CHANGES: Not an agreement. STAFF RECOMMENDATIONS: Acceptance of actuarial valuation report. TOT AL COST: COUNTYIDISTRICT CONTRIBUTION 2005: $56,050.00 BUDGETED: Yes X No COST TO COUNTY: $56,050.00 SOURCE OF FUNDS: Ad valorem taxation REVENUE PRODUCING: Yes No X AMOUNTPERMONTH_ Year DIVISION DIRECTOR APPROVAL: ent N/A APPROVED BY: County Arty N/A DOCUMENT A TION: Included X Not Required DISPOSITION: AGENDA ITEM # Revised 2/05 ~ MOUTON ~ &COMP~ INC. ACTUARIES AND PENSION ADMINISTRATORS August 30, 2005 Monroe County Board of County Commissioners c/o Chief Clark Martin 490 63rd Street Marathon,FL 33050 Subject: Monroe County, Florida Volunteer Firefighter and Emergency Medical Services Length of Services Award Plan January 1,2005 Actuarial Valuation Dear Chief Martin: Enclosed is the actuarial valuation for the Monroe County LOSAP plan. Once the valuation report has been accepted by the board, we will forward a copy to the State for approval. Should you have any questions regarding the enclosed report, please give me a call. Sincerely, {~~ Nanette Mouton Executive Vice President NSMls Enclosure Professlonal . 516 Lakevlew Road - Villa 6 . Clearwa[er, FL 33756 . (727) 441-1526 . Fax (727) 441-3564 === MOUTON =- - - &COMP~ INC. ACruARIES AND PENSION ADMINISTRATORS MONROE COUNTY FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN ACTUARIAL REPORT JANUARY 1, 2005 Lakeview Professional Village. 516 Lakeview Road - Vilta 6 . Clearwater, FL 33756 . (727) 441-1526 . Fax (727) 441-3564 ~ MOurON ~ &COMP~ INC. ACTUARIES AND PENSION ADMINISTRATORS August 25, 2005 Monroe County Board of County Commissioners c/o Chief Clark Martin 490 63rd Street Marathon, FL 33050 Dear Plan Administrator: We are pleased to present the attached Report as of January 1, 2005, covering the actuarial aspects of the "Monroe County LOSAP" for the Plan Year ending December 31, 2005 and the County's fiscal year ending September 30,2006. A brief overview ofthe results can be obtained by looking at the following figures for the past three years: 2003 2004 2005 Item P1Hn Ye~r Pl:m Y e~r P1::m Year Participants 193 189 147 Covered Payroll $ na $na $na Total Plan Normal Funding '" $73,480 $58,904 $61,050 Florida Required Funding'" '" $84,381 $64,092 $60,877 '" assuming an additional years past service benefit "'* includes provisions for expenses and provisions for Funding Standard Account debit balances Again, there was a decrease in active participation by the cities, which resulted in a drop in the funding costs. Additionally, the actua13-year average of 0.29% and the 5-year average of .58%. as shown on page 8 of the valuation report, are below the previous interest assumption of 5.0%. We have therefore reduced the interest rate assumption from 5.0% to 4.0% for this valuation. The plan has continued to invest in, what appears to us to be, a money market equivalent. The plan can, and probably should, consider longer horizon investments, since the plan's obligations are not short term. Lakeview Professional Village. 516 Lakeview Road - Villa 6 0 Clearwater, FL 33756 . (727) 441-1526 0 Fax (727) 441-3564 " = MOUTON ~ ~ &COMP~ INC. ACTUARIES AND PENSION ADMINISTRATORS Monroe County Board of County Commissioners August 25, 2005 Page Two Assuming that the recommended funding is made, it is our opinion that the Plan will be proceeding with a funding program, which can be expected to support the benefits promised by the Plan on an adequate and timely basis. Respectfully submitted, ~~ Glenn F. Mouton, FSA Consulting Actuary GFM/nm Enclosures Lakeview Professional Village" 516 Lakeview Road - Villa 6 .. Clearwater. FL 33756 . (727) 441-1526 .. Fax (72 7) 441-3564 ~MOUTON ~ &COMPANY INC. ~ - , ACTUARIES AND PENSION ADMINISTRATORS August 15, 2005 A(;TTTARTAL REPORT PLAN: Monroe County, Florida Volunteer Firefighter and Emergency Medical Services Length of Services Award Plan PLAN YEAR: January 1,2005 through December 31,2005 SPONSOR FISCAL YEAR: October 1, 2005 through September 30, 2006 VALUATION DATE: January 1, 2005 This report presents the results of the Actuarial Valuation as of Valuation Date shown above of the Plan. The principal purposes of this report are To present the financial condition ofthe Plan To satisfy the requirements of Chapter 112 of the Florida Statutes To present the contributions required to adequately fund the Plan during the current year, according to the plan's current funding methodology To present disclosures required by Governmental Accounting Standards Board, Statements #25 Mouton and Company, Inc. was retained by the Plan Administrator of the Plan for this report. This actuarial valuation and/or cost determination 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 Vll, 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. a, 5~ ~.s ~~ Date Glenn F. Mouton Enrollment #05-2773 On Behalf of Mouton & Company, Inc. Lakeview Professional Village. 516 Lakeview Road - Villa 6 . Clearwater, FL 33756 · (727) 441-1526 · Fax (727) 441-3564 MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Actuarial Valuation as of January 1, 2005 TABLE OF CONTENTS EXHIBIT 1 VALUATION RESULTS Schedule A - Plan Description - After Changes Schedule A - Plan Description - Before Changes Schedule B - Development of Current Year's Costs Schedule C - Development of Historical and Projected FSA Schedule D - Participant Data Schedule E - Assets Schedule F - Liabilities Schedule G - Actuarial Present Value of Accrued Benefits Schedule H - Statement of Changes in Total Actuarial Present Value of All Accrued Benefits Schedule I - Pension Cost Schedule J - Past Contributions Schedule K - Comparison of Actual to Assumed Earnings 1 2 3 4 5 5 5 6 6 7 7 8 EXHIBIT 2 PARTICIPANT DEMOGRAPHICS Schedule A - Coverage Schedule B - Participant Reconciliation 9 10 EXHIBIT 3 PLAN ASSET INFORMATION Schedule A - Statement of Net Assets Available for Benefits at Market Values Schedule B - Statement of Changes in Net Assets Available for Benefits 11 12 EXHIBIT 4 PLAN SUMMARY 13 EXHIBIT 5 COST METHOD AND ASSUMPTIONS 16 EXHIBIT 6 PENSION COST RATIONALE 18 EXHIBIT 7 GASB 25 INFORMATION 19 MOUTON & COMPANY, INC ACTUARIES & PENSION ADMINISTRATORS tr) cf? 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'" 0 G.l '" ~ f CIl 0 ~ C) ~ ;>-, 5 ~ ;;:: iE ~ ~ >- 0 G.l "; '~ ~ 0 0 '; b u ..- > .l!l <U ~ e!l e :.( ... r:: 0 '~ I OJ C) .r:: <'l r:: i tr) '" '.6 u ~ .....l ....l ~ iU 0 <Il C) 5 ?i ~ '" OIl OIl :5 ;>-, >- OIl > - Ci i:S Ci5 G.l l\) ell ::l ell ~ 0 rr., u ~ ~ ...l Cf) Eo-< Z MOUTON & COMPANY, INC ACTUARIES & PENSION ADMINISTRATORS MONROE COUNlY. FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page \ of 22 AclIWial Valuation as of January I, 2005 CURRENT V ALUA nON RESULTS EXHIBIT I Plan Descriptiou Schedule A .._-_.._.._--_................__-..........................~................_........................-.--..-----_...._------------------------------ Actuarial Study as of 01-Jan-G5 Value Completed months to participate o Years of Credited Sernce Required to be Fully Vested: 10 Maximum number of credited Service Months at prognun inception: For vesting purposes: For benefit accrual purposes: 120 12 First Year for which Retroactive Benefit Accrual Service Is Granted: 1992 Annual Benefit Accrued for each completed year of service ISO Maximum Annual Benefit 4,500 Present Value of Annual Bft Earned @ NRA: 1.518 Present value of maximum benefit@NRA: 37,959 Interest Adjustment to Move Normal Costs to End of Valuation Year: 1.03989 Recap of Results: After Change Interest Rate: 4.008/. ..__..~-_.._....-...----_.._--------------_..__.._------_.._----_..-------------------------------------------------- Parti. Active Present Present Present Aggregate Average Parti- cipants Not Ineligible Value of Value of Allocated Value of Future Future Curmlt cipants Valued Accruing Parti- Inactives Fut. Benefits ht. Benefits Actuarial Future Service Service Normal District Reported Active Benelits cipants Valued Active Inactive Assets Nonnal Costs Annuity Annuity Cost EOY Big Coppitt 21 14 7 0 0 93.090 0 52,951 40.139 129.592 6.171 6,764 Big Pine 18 6 11 0 92,355 9,790 66.838 35,307 129.713 7.206 5.W5 Coach Key 0 0 0 0 0 9.064 32.571 (23.507) 16.675 8.338 -2,932 Key Largo Fire 38 25 9 0 4 205,307 18.973 126,23\ 98.049 251.442 6.617 15,409 Key Largo EMS 20 11 9 0 0 \88.029 0 107.157 80.872 140.935 7.047 11.934 La)IIOR 12 4 0 0 110.931 0 69.651 41,280 60.695 5.058 8,437 SUllarloafKey IS 4 9 0 2 65.070 11,233 69.506 6.197 96.593 6.440 1.098 Tavernier 23 0 19 0 4 146.019 18.430 101.733 62.716 147.121 6.397 10.195 Monroe County . 141 68 68 0 13 900.80 I 67,490 626.638 341.653 972.766 6.529 56.050 NOIe: 0eIy Plrticipants wilh 3 or III)I"C IlDlIhI of aavia:: in lbc prior plan )'CII'" or wbo arc vcai&Cd in a benefit are valued. Expense cost shown on page 3. MOUTOl-o: & COMPA"Y, be ACTUARIES & PEl-o:SIOt\ ADMINISTRATORS MONROE COUNTY. FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 2 of 22 Actuarial Valuation as of January 1.2005 CURRENT V ALUA nON RESULTS EXHIBIT I Plan Desaiption Schedule A ----.....-----------.-..-------------..-.--.----------------------------------------------------------------------------------------------- Actuarial Study as of. o I-Jan-05 Value Completed months to participate Years of Credited SeJVice Required 10 be Fully Vested: 10 Maximum number of credited Service Months at program inception: For vesting purposes: For benefit a<:crual purposes: 120 12 First Year for which Retroactive Benefit Accrual Service Is Granted: 1993 AIlnual Benefit Accrued for each completed year of service 180 Maximum Annual Benefit 4.500 Present Value of Annual Bft Earned @ NAA: 1.518 Present value of maximum benefit@ NAA: 37,959 Interest Adjustment 10 Move Normal Costs 10 End of Valuation Year: 1.03989 Reup of Results: Before Change Inte.....t Rate: 4.000;8 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Pam- Active Present Present Present Aggregate Average Pam- cipants Not Ineligible Value of Value of Allocated Value of Future Future Current cipants Valued Accruing Pam- Inactives Fut. Benefits Fut. Benefits Actuarial Future Service Service Nonnal District Reported Active Benefits cipants Valued Active Inactive Assets Nonnal Costs Annuity Annuity Cost EOY Big Coppilt 21 14 7 0 0 92,236 0 52.951 39,285 129.592 6,171 6,620 Big Pine 18 6 II 0 92,355 8.566 66,838 34.083 129.713 7,206 4.918 Conch Key 0 0 0 0 2 0 7,332 32.571 (25,239) 16.675 8.338 -3.148 Key Largo Fire 38 25 9 0 4 200.120 17.545 126,231 91,434 251.442 6.617 14,369 Key Largo EMS 20 II 9 0 0 184.840 0 107,157 71.683 140.935 7.047 11.463 Layton 12 4 0 0 106.716 0 69.651 37.125 60.695 5.058 7,633 SugarIoafKey t5 4 9 0 2 65.073 9.317 69.506 4,884 96.593 6.440 789 Tavernier 23 0 19 0 4 139,083 17.500 IOt,733 54.850 147.121 6.397 8,916 Monroe County 147 68 68 0 13 880.483 60.260 626.638 314.105 972.766 6.210 5 t.560 NOIC: Only PlI'1icipaolS wilh 3 or IRlR Dlxuhs or service: in the ~ plan )"elU' C1I who are vested in a benefit.are valwd.. Expense cost shown on page 3. MOUTON & COMPANY. he ACTUARIES & PENSIOK ADMINISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN Page 3 of 22 Actuarial Valuation as of January 1,2005 CURRENT V ALUA nON RESULTS EXHIBIT I Development of Current Year's Costs Schedule B ---------------------------------.......---------------........-.....-----..--------..---.....---...---------------------------------------------------------------------------------.. Before Change After Change ... Current Year Current Year Prior Year o 1-lan-2005 OI-Jan-2005 OI-Jan-2004 A. Present Value of Future Obligations: 1. Active Members 880,483 900,80 I 761,705 2. Inactive Members 60,260 67,490 125,400 3. Retired Members 0 0 0 4. Survivors on Benefit 0 0 0 5. Disabled Members 0 0 0 --.....---------...- ----...---------- --------------- Total Actuarial Accrued Liability: 940,743 968,291 887,105 B. Less Present Value of: 1. Member Contributions 0 0 0 2. Florida Premium Tax Rebates 0 0 0 ------------..-- --------------- --------------- 0 0 0 C. Less Actuarial Plan Assets 626,637 626,637 562,738 --------------- --------------- --------------- D. Amount to be Funded by County (A-B-C) 314,106 341,654 324,367 (Unfunded Actuarial Accrued Liability) E. Aggregate Normal Costs from District Calculatio 51,560 56,050 53,904 F. Expenses not paid directly by the County 5,000 5,000 5,000 G. Interest Adjustments not included elsewhere 0 0 0 --------------- ---..----------- --------------- H. Total Plan Normal Costs = GASB 25 ARC 56,560 61,050 58,904 ... Change is the crediting of 1992 as an additional year ofpotentiaJ past credited service. MOUTOi' & CO\-lPANY, be /\CTUARIES & PE"'SlC1N ADIAINISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN Page 4 of 22 Actuarial Valuation as of January 1,2005 CURRENT V ALVA TION RESULTS EXHIBIT 1 Development of Historical and Projected Funding Standard Account Balances Schedule C ------------------------------------------------------------------...------------------------------------------------------------------------------------------------- Before Changes After Changes Proj ected Proj ected Current Current Plan Year Plan Year Prior Year OI-Jan-2005 01-Jan-2005 OI-Jan-2004 A. Beginning Balance 166 166 -4,941 Interest Adjustment to End of Year 7 7 -247 B. Less Charges to Account 1. Normal Costs for the Year (BOY) 51,560 56,050 53,904 2. Provision for Expenses 5,000 5,000 5,000 2. Amortization Charges (net) (BOY) 0 0 0 3. Interest Adjustment to End of Year 4.00% 0 0 0 56,560 61,050 58,904 C. Plus Credits to Account 1. Contributions Credited During the Year 0 0 63,904 2. Amortization Charges (net) (BOY) 0 0 0 3. Interest Adjustment to End of Year 0 0 354 0 0 64,258 D. Ending Balance'" -56,387 -60,877 166 Date Made Amount Interest 27-Jan-04 5,000 186 0 0 06-Dec-04 58,904 168 0 ----------- 63,904 354 MOUTON & COMPANY, INC ACTUARIES & PENSION ADML',ISTRArORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 5 of 22 Actuarial Valuation as of January 1,2005 CURRENT V ALUA TION RESULTS EXHIBIT I Participant Data Schedule D -----......-----------..----------------------------------------------------..----..----------------------------------...............-......--.....----..--------..........-----...... Next Current Year Prior Year Prior Year 01-Jan-2005 01-Jan-2004 01-Jan-2003 Number Included Active Members 136 150 157 Inactive Members 13 38 36 Retired Members 0 0 0 Current Beneficiaries 0 0 0 Disabled Members 0 0 0 Total Annual Payroll of Actives 0 0 0 Total Annual Benefits: to Retired Members 0 0 0 to Current Beneficiaries 0 0 0 to Disabled Members 0 0 0 Assets Schedule E ---...-------------------------------....--..----------..-------------.....---------------------------------------...-----------..........-----------------......--------...-- Actuarial Value 626,637 562,738 474,729 Market Value 626,637 562,738 474,729 Liabilities Schedule F ----------------------..--------...-----------------------------.....--...-----------...............--..-..--.....................---....--..-..--...........--.........-...-.......--...................-...---------...--- Total Before Changes After Changes Current Current Prior Plan Year Plan Year Plan Year OI-Jan-2005 01-Jan-2005 01-Jan-2004 880,483 900,801 761,705 60,260 67,490 125,400 0 0 0 0 0 0 0 0 0 ---..............------.. -------...------... --...-...--......-----... 940,743 968,291 887,105 0 0 0 0 0 0 ...--...--------........ -..--------......--- ......--...--...----...-- 0 0 0 ...-------------- ---------...-......-- ....---..----..---- 940,743 968,291 887,105 (626,637) (626,637) (562,738) -...------------- -..-..------........-- ...-...-......-..-....-...- 314,106 341 .654 324,367 Present Value of Future Benefits Active Members Inactive Members Retired Members Current Beneficiaries Disabled Members Less Present Value Future Member Contributions Future State Contributions Actuarial Accrued Liability less Actuarial Plan Assets Unfunded Actuarial Accrued Liability MOUTOr-; & COMPANY, IN(: ACTUARIES ADMINISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 6 of 22 Actuarial Valuation as of January 1,2005 CURRENT VALUATION RESULTS EXHIDIT 1 Actuarial Present Value of Accrued Benefits Schedule G ------------------------------------------------------------------------------------------------...-------------------------------.........-------------------------- Before Changes After Changes Corrected Current Year Current Year Prior Year 01-Jan-200S o I-Jan-200S 01-Jan-2004 Vested Accrued Benefits Inactive Members & Beneficiaries 60,240 67,471 141,946 Active Members 309,935 332,688 230,453 -------------- -------------- -------------- Total 370,175 400,159 372,399 Nonvested Accrued Benefits 120,477 116,648 133,184 ------------- -------------- ----------...--- Total 490,652 516,807 505,583 Statement of Changes in Total Actuarial Present Value of All Accrued Benefits Schedule H ---------------------...-..--------------------------------------.....--------------------------------------------------------------------------------------------- Before Changes Current Year 01-Jan-2005 After Changes Current Year OI-Jan-2005 Present Value of Accrued Benefits at Beginning of Year 505,583 505,583 Increase (Decrease) During Year Attributable to (where applicable): Net Increase (Decrease) 0 0 0 26,155 158,322 158,322 0 0 22,751 22,751 26,985 26,985 0 0 (222,989) (222,989) -------------- -------------- (14,931) 11 ,224 Plan Adoption Plan Amendment Changes in Valuation -- interest rate Increase due to Survivorship Increase for less Interest Discount Benefits Accrued, net of excluded participants Benefits Paid Other Changes - terminations Actuarial Present Value of Accrued Benefits at End of Year 490,652 516,807 MOUTO~ & COMPANY, I;;c. ACTUARIES & PENSIO;'; f,DMINlSTR/\TOF5 MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 7 of 22 Actuarial Valuation as ofJanuary 1,2005 CURRENT VALUATION RESULTS EXHmIT 1 Pension Cost Schedule I ---------------------------------------------------------------------------------...--------------------------...------------.....-----......-..-------.....--..........----------- As % of Payroll Before Changes After Changes Current Current Prior Plan Year Plan Year Plan Year 01-Jan-2005 01-Jan-2005 01-Jan-2004 ~ ~ - ~ 51,560 56,050 53,904 4,834 4,834 9,941 (7) (7) 247 ----------- ----------- ----------- 56,387 60,877 64,092 N/A N/A N/A 0 0 0 N/A N/A N/A 0 0 0 N/A N/A N/A Required Funding Costs Current Administrative Expense Interest Adjustment Total Required County Contribution Estimated Participant Contributions As % of Payroll Estimated Premium Tax Refund As % of Payroll Remaining Amount to be Contributed by County As % of Payroll 56,387 N/A 60,877 N/A 64,092 N/A Past Contributions Schedule J ----------------------------------------------------------------------------------------------------------------------------------------------------------- F or the fiscal year ended 12/31/04 Total Contribution Required Actual Contribution Made By: State County Participants 64,092 o 63,904 o 63,904 MOUTON & COMPANY, h;c ACTUARIES & PENS10r.: ADNlINISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 8 of 22 Actuarial Valuation as of January 1, 2005 CURRENT VALUATION RESULTS EXHIBIT 1 Comparison of Actual to Assumed Earnings Schedule K -----------------------------------------------------------------------------------------------------------------------------------------------...------------------.. (Assuming unifonn income and disbursements, Employer Contributions assumed at End of Year) Benefits Valuation Beginning Ending Investment Other and Date Assets Assets Earnings Income Expenses 31-Dec-1999 0 150,113 0 0 0 31-Dec-2000 150,113 313,548 2,751 0 0 31-Dec-2001 313,548 389,408 13,821 0 4,210 31-Dec-2002 389,408 474,729 4,284 0 8,400 31-Dec-2003 474,729 562,738 9,169 0 0 31-Dec-2004 562,738 626,637 8,412 0 8,4 1 7 Valuation Net Expected Actual 3 Year 5 Year Assumed Date Increase Earnings Experience Average Average Factor 31-Dec-1999 0 0 0.00% na na 5.00% 3 1 -Dec-2000 2,751 7,506 1.83% na na 5.00% 31-Dec-200l 9,611 15,572 3.09% na na 5.00% 31-Dec-2002 (4,116) 19,260 -1.07% 1.28% na 5.00% 31-Dec-2003 9,169 23,736 1.93% 1.32% na 5.00% 31-Dec-2004 (5) 27,926 0.00% 0.29% 0.58% 5.00% 1999 is the first plan year and no assets were present prior to the end of the year, other than County accrued contributions. Current earning rates are artificially depressed due to the plan only recently starting its funding. Future assets will be invested assets and are expected to earn at or above the assumed factor, net of investment expenses. MOUTON & COMPANY, l;"c ACTUARIES & PENSIO" ADMIJ"ISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 9 of 22 Actuarial Valuation as of January 1, 2005 P ARTICIP ANT DEMOGRAPHICS EXHIBIT 2 Coverage Schedule A ----------------------------------------------------------------------------------------------------------------------------------------- This valuation includes the following 149 persons covered by the plan as of December 31, 2004. Category Number Amount Active Participants Other Inactive Participants Retirees on Benefit Survivors on Benefit Participants on Disability Benefit Terminated Vested participants 136 13 o o o o o * o ** o ** o ** o ** o ** TOTAL 149 N/A * Annual covered pay only * * Annual Benefit 40 persons (included in the data furnished to us) were ineligible for participation as of the valution date. Participant data was furnished by the County ofMonore and was as of December 31, 2004. MOUTON &. COylPANY, he ACTUARIES & PENSION ADyUNISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 10 of 22 Actuarial Valuation as of January 1,2005 P ARTICIP ANT DEMOGRAPHICS EXHIBIT 2 Participant Reconciliation Schedule B -----------------------------------------------------------------------------------------------------------------..--------------------......---------------- Active Retired on Benefit Survivor on Benefit Disabled With Vested Benefit Total Participants at 01-Jan~2004 150 0 0 0 38 188 New 23 23 Retirement 0 0 Death 0 0 Non-Vested Termination -20 -42 (62) Vested Termination -17 17 0 Lump Sum Settlement 0 0 New Survivors 0 0 Participants at 31-Dec-2004 136 0 0 0 13 149 --- -- --- -- - - MOUTON &. COMPA"Y, INC ACTUARIES & PENSION ADMINISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD P Actuarial Valuation as of January I, 2005 Page 11 of22 PLAN ASSET INFORMATION EXHIBIT 3 31-Dec-2003 Schedule A 3l-Dec-2004 Statement of Net Assets Available for Benefits* ----------------------------------------------------------------------------------------------------------------------------- Market Value Money Market Accrued Contribution - Employer 562,738.22 0.00 626,637.19 0.00 562,738.22 626,637.19 Liabilities Accounts Payable Deferred Revenues 0.00 0.00 0.00 0.00 0.00 0.00 Net Assets Available 562,738.22 626,637.19 * As reported by the County MOUTO~ & COMPA~Y, be ACTUARIES & PENSION ADMJ~JSTRATORS MONROE COUNTY, FLORlDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN Actuarial Valuation as of January 1,2005 PLAN ASSET INFORMATION Statement of Changes in Market Value of Net Assets Plan Year Ending: 31-Dec-2003 Page 12 of22 EXHIBIT 3 Schedule B 31-Dec-2004 + ----------------------------------------------------------------------------------------------------------------------------------------------------- INCREASES Earnings on Investments Unrealized Appreciation (Depreciation) 9,169.20 0.00 State Insurance Contributions Employee Contributions Employer Contributions: 0.00 0.00 78,840.00 Accrued 0.00 78,840.00 88,009.20 DECREASES Expenses Professional Fees -- 2003 Professional Fees -- 2004 PMA Fees 0.00 0.00 0.00 0.00 Paid to Participants Retirees Survivors Disabled Overpayment due to City 0.00 0.00 0.00 0.00 0.00 0.00 Net Increase/(Decrease) 88,009.20 NET MARKET VALUE OF ASSETS A V AILABLE FOR BENEFITS: Beginning of Year 474,729.02 End of Year 562,738.22 63,904.00 0.00 (4,200.00) (4,200.00) (17.39) 0.00 0.00 0.00 0.00 8,412.36 0.00 0.00 0.00 63,904.00 72,316.36 (8,417.39) 0.00 (8,417.39) 63,898.97 562,738.22 626,637.19 MOUTON & COMPA1':Y, be ACTUARIES & PE1':SION ADMI1':!STRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Actuarial Valuation as of January 1,2005 Page 13 of22 PLAN SUMMARY EXHIBIT 4 1. Genernl Tnfo1111~tion (a) Plan Name: Monroe County, Florida Volunteer Firefighter and Emergency Medical Services Length of Service Award Plan (b) Plan Year: January 1 through December 31 (c) Plan Sponsor: County of Monroe, Florida (d) Sponsor Fiscal Year: October 1 through September 30 (e) Plan Administrator: Board or such other person or entity as designated by the Board to administer the Plan (f) Effective Date: January 1, 1999 2. RI1Vhility for P::Irtlc.ip:ttion The Plan Administrator shall, in its sole discretion, determine those Volunteer Firefighters and EMS Volunteers ("Volunteers") eligible to participate in the Plan. Any Volunteer who was age 60 or older on January 1, 1999 shall not be eligible to participate in the Plan. In addition, any Volunteers who are age 60 or older at the time they commence volunteer service, or who commence service at a time that will not permit them to earn ten Years of Service by their Normal Retirement Age shall not eligible to participate. 3. Ye~m, of~ervlc.~ Each year of volunteer service, a participant will accrue a year of benefit accrual if the participant was: A. enrolled as a member of the nonprofit corporation or MSTU; and B. was eligible for and received reimbursement of expenses for nine or more months of the year. In the event that a non-vested Participant fails to accrue a Year of Service during any three consecutive Plan Years, the Participant shall incur a "break-in-service", and any Y ears of Service earned by the Participant prior to the break-in-service, shall be disregarded for purposes of the Plan. In addition, in the event that any Participant ceases to be carried on an active membership roll as a Volunteer Firefighter or EMS Volunteer MOUTO\.; & COMPM~'''' be. ACTUARIES & PENSION ADMiNISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Actuarial Valuation as of January 1, 2005 Page 14 of22 PLAN SUMMARY EXHIBIT 4 and later returns to active membership roll, only Years of Service earned after the Participant's return to the active membership roll shall be counted for purposes of the Plan No Years of Service shall be earned for any year of volunteer service after the Participant has attained age sixty (60). 4. Conttihlltion~ Each Plan Year, the Board shall appropriate funds from the budgets of the various volunteer fire/rescue MSTU's to fund the accrued or prospective benefits for Participants on an actuarially sound basis. 5. Norm::!l Retirement Renefit (a) Eligibility: Completion of 10 years of service. (b) Benefit: An annual benefit based on the following schedule: Years of ~ervice 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 (c) Form of Payment: Renefit ~ched111e Monthly Annual Renefit Renefit $375 $4500 360 4320 345 4140 330 3960 315 3780 300 3600 285 3420 270 3240 255 3060 240 2880 225 2700 210 2520 195 2340 180 2160 165 1980 150 1800 Benefit payments are payable monthly for a period of ten years. MOUTON & COMPA"Y. INC ACTUARIES & PENSJO;-'; ADMINISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES A WARD PLAN Actuarial Valuation as of January 1, 2005 Page 15 of22 PLAN SUMMARY EXHIBIT 4 6. V e~tine (a) Eligibility: Completion of 10 years of service prior to attainment of Normal Retirement Age (b) Volunteer Firefighters: Attained the rank of Structural Firefighter, Non-Structural Firefighter and/or Emergency Vehicle Driver-Operator prior to being credited with 10 years of service. (c) Volunteer EMS: Attained the certification of Emergency Medical Technician or Paramedic or met all requirements by the State of Florida necessary to drive an emergency medical care and transportation vehicle (ambulance) prior to being credited with 10 years of service. 7. n~Mh Renefit~ prior to Att::linlne Norrn~l Retirement Aee (a) Eligibility: Death of a vested Participant. (b) Benefit: The present value of vested accrued benefits. MO\.:TOI' & CO\1PA1'Y, h;c ACTt'ARIES & PEl\SIOl' ADMIl'ISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES A WARD PLAN Actuarial Valuation as ofJmlUary 1,2005 Page 16 of22 COST METHOD EXHIBIT 5-A rOST METHOD: A variation of the aggregate actuarial cost method is being used to value the benefits. The present value of the projected benefits is calculated using the provisions of the plan and the actuarial assumptions. The actuarial value of assets is based on market value. The balance to be funded is allocated over the present value of a level annuity for the average future service of active participants. Total plan results are determined by summing the results calculated by aggregating participants by fire district, and in the case of Key Largo, separately by fire personnel and EMS personnel. Expenses are shown unallocated and are assumed to be paid directly by the County. MOUTO!\ & COMPA!\Y, he. ACTUARIES & PENSION ADMINISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2005 Page 17 of22 ACTUARIAL ASSUMPTIONS EXHIBIT 5 - B Actuarial Study as of: 01-Jan-200S Valuation Date Adjustment: o Completed months to participate o Maximum number of credited Service Months at program inception: For vesting purposes: For benefit accrual purposes: Vesting Schedule 120 12 180 4500 Yrs Vesting 0 0% 10 100% Annual Benefit Accrued for each completed year of service Maximum Annual Benefit Accrued for each completed year of service Termination Assumption: Godwin's Table 1, V Select & Ultimate Table, with 50% termination prob. for YOS<l. Year First Allowed for Benefit Accrual Purposes: After: Before: i: 4.00% v: 0.96154 d: 0.03846 a(10)due: 8.43539 i(12): 0.327% v(12): 0.99674 d(12): 0.00326 a(120)due: 99.44390 3,000 355.64 37,959 1,518 1992 1993 14 Interest rate function assumptions 10 1.22468 Maximum annual benefit accrual limited by IRC Present value of maximum benefit: Present value of annual benefit accrual Maximum Credited Years for Benefit Accrual as of the Valuation Date: MOUTON & COMPANY, he ACTUARIES & PENSION ADMLNISTRATORS MONROE COUNTY. FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Actuarial Valuation as of January 1.2005 Page 18 of22 PENSION COST RATIONALE EXHIBIT 6 When one speaks of pension costs, one must distinguish between "true" costs and "actuarial" costs. The true cost of a pension plan depends on its experience and is equal to: Total Benefits Paid + Total Expense to Run the Plan Investment Earnings Because this true cost is not apparent until many years into the future, and then only in retrospect, the actuary scientifically estimates what the true cost will be and then assesses a share against the current year's operations. In order to estimate the true cost elements, the actuary must try to predict the future happenings which will affect them -- such as death. employee turnover, expenses, investment earnings, etc. The assessment to each current year is made using a particular "cost method", selected by the actuary considering tax implications to the Employer, future cost versus future earnings patterns, present and projected makeup of employee force, etc. Based on these considerations, the actuarial costs are found to be as shown in this report. It is important to remember that these annual costs are estimates of the actuary. which, if his proj ections are realized, will accumulate according to certain future patterns, as dictated by the cost method, to meet the true costs on an adequate and timely basis. MOUTON &. COMPANY, be ACTUARIES & PE>JSJON ADMINISTRATORS Page 19 of22 MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Va]uation as of January I, 2005 a. (I) GASB 25 Notes to the Financial Statements EXHIBIT 7 ------------------------------..---------------------------------------------------------------------.............-.......---------..-..----.....------------ The above PERS administrator is a single-employer with only one contributing county employer and no nonemployer and no contributors. Only Volunteer Firefighters and EMS Volunteers are eligible at the sole discretion of the Plan Administrator. Any Volunteer who was age 60 or older on January I, 1999 shall not be eligible to participate. In addition. any Volunteers who are age 60 or older at the time they commence volunteer service, or who commence service at a time that will not permit them to earn ten Years if Service by their Norrnal Retirement Age shall not be eligible to participate in this Plan. (2) Inactive Participants by category: Retirees currently receiving benefits Beneficiaries currently receiving benefits Terminated employees entitled to benefits Fully vested and past normal retirement date Partially vested Non-vested Years of Service 25 24 23 22 21 20 19 18 17 16 IS 14 13 12 11 10 The benefit provisions are as follows: Benefit Schedule Monthly Benefit $375 360 345 330 315 300 285 270 255 240 225 210 195 ]80 165 150 (3) o o 13 13 44 o 105 149 Annual Benefit $4,500 $4,320 $4,140 $3.960 $3,780 $3,600 $3,420 $3,240 $3,060 $2,880 $2,700 $2,520 $2,340 $2,160 $1,980 $1,800 (4) Volunteer Firefighters must attain the rank of Structural Firefighter. Non-Structural Firefighter and or Emergency Vehicle Driver-Perator prior to being credited with ten Years of Service. EMS Vounteers must meet all requirements as defined by the State of Florida necessary to drive an emergency medical care and transporation vehicle (ambulance) and/or attain certification as an Emergency Medical Technician or Paramedic prior to being credited with ten Years of Service. Eligibility for vesting is completion of 10 years of service. The Plan shall be administered in accordance with the requirements of Chapter 112, Part VII, Florida Statutes. I MOUTON & COMPANY, he ACTUARIES & PENSION AD:-11NISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1,2005 Page 20 of 22 EXHIBIT 7 GASB 25 Notes to the Financial Statements -------------------------------------------------------------------------------------------------------------------------------------------------------- For each Plan Year, the Board shall appropriate funds from the budgets of the various fire/rescue MSTU's, such funds to be applied as a contribution to the LOSAP trust account in an amount as determined by the Plan Administrator as is necessary to fund the accrued or prospective benefits for Participants on an actuarially sound basis and in accordance with Part VII of Chapter 112, Florida Statutes. There are no Participant contribution requirements. The authority under which those obligations are established is the Monroe County Ordinance No. 026-1999 b. (1) The accounting policies include the Accrual basis of accounting, and assets are reported at Market Value. Exchanges or "swaps" of securities are accounted for in the income. (2) We are aware of no investments (other than U.S. government and U.S. government-guaranteed obligations) which represented more than 5% of net assets available for benefits. (3) We are aware of no investments in, loans to, or leases with any PERS official, government employer official, party related to a PERS official or governmental employer official, nonemployer contributor, or organization included in the reporting entity. The Actuarial Present Value of credited projected benefits, is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits, estimated to be payable in the future as a result of employee service to date. There are no salaries paid to the Participants. I MOUTON & Cm.1PANY, he ACTUARIES & PENSlm; ADMINISTR:\TORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1,2005 Page 21 of22 EXHIBIT 7 GASB 25 Notes to the Financial Statements -------.----------------------------------------------------------------------------------------------------------------------------------. The significant actuarial assumptions used to compute the pension benefit obligation were: Investment Yield: 4.00% for both present and future. The prior valuation assumed 5.00%. Mortality Pattern: Not applicable Salary Increases: Not applicable Termination: Godwin's Table 1, V Select & Ultimate Table, with 50% termination prob. for YOS<1. The System's funding policy, as mandated by ordinance, provides for actuarially determined periodicconnibutions The Actuarial Funding Method is a variation of the aggregate actuarial cost method. The present value of the proj ected benefits is calculated using the provisions of the plan and the actuarial assumptions. The actuarial value of assets includes only the value of assets. There are no member contributions, nor any State premium tax refunds. The GASB 25 Actuarial Funding Method is the Aggregate Method. Since there is no salary, allocations are based on service. Aggregation is used by fire district, in order to permit the county to allocate costs by disnict. Under this method, gains and losses are spread over future normal costs. MOUTOl'; & COMP1\l';Y, be I ACTUARIES & PE1\5IO:\ 1\DMI!-:ISTRATORS MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1,2005 Page 22 of 22 EXHIBIT 7 GASB 25 Schedules of Funding Progress ..--.....-------..-...-----..--..................-..............-......-...........-------------------------------------------------------------..-------....-..--..--------...----------------------------------------------------- County Participants 31-Dec-2004 $61,050 % of Annual Amount Payroll 63,904 na 0 na The actuarially detennined normal cost as of Contributions actually made by employees and employer were: As discussed in paragraph 87 ofGASB-25, a schedule of funding progress is not required under the aggregate cost method, which the plan uses. ............................................................................................................................................................................................................................................ .................................................................................................................................................................................H........................................................... Summary of Fund Progress by Plan Years ----------------------------------------------------------------------------------------------------------------------------------------------------- 1/1/2004 1/1/2003 1/1/2002 1/1/2001 I II /2000 1/1/1999 to to to to to to 12/31/2004 12/31/2003 12/31/2002 12/3 1/200 1 12/31/2000 12/31/1999 Increases to funds Employer Contribution 63,904.00 78,840.00 89,437.00 66,250.00 160,684.00 150,113.00 Employee Contribution 0.00 0.00 0.00 0.00 0.00 0.00 State Contribution 0.00 0.00 0.00 0.00 0.00 0.00 Total Contributions 63.904.00 78,840.00 89,437.00 66,250.00 160,684.00 150,113.00 Investment Income 8,412.36 9,169.20 4,283.59 13,820.69 2,750.86 0.00 Other Income 0.00 0.00 0.00 0.00 0.00 0.00 Total Increases 72.316.36 88,009.20 93,720.59 80,070.69 163,434.86 150,113.00 Decreases to Funds Benefit payments Admin expenses Total Decreases 0.00 (8,417.39) (8,417.39) 0.00 0.00 0.00 0.00 (8,400.00) (8,400.00) 0.00 (4,210.12) (4,210.12) 0.00 0.00 0.00 0.00 0.00 0.00 Net Increase/Decrease 63,898.97 88,009.20 85,320.59 75,860.57 163,434.86 150,113.00 MOUTON & COMPA;-;Y, he:. ACTUARIES & PENSIO,J ADMINISTRATORS