Item C31 BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 11, 2013 Division: Emergency Services
Bulk Item: Yes X No _ Department: Fire Rescue
Staff Contact Person/Phone#: Claudia Wilkerson
305-289-6014
AGENDA ITEM WORDING: Acceptance of the Monroe County Length of Service Award Program
(LOSAP) actuarial valuation report for the Plan Year 2013 and transfer of funds for Plan Year 2013
into the LOSAP Trust Fund.
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 report and transfer of funds for Plan Year
2013 into the LOSAP Trust Fund in the amount of$28,575.00.
TOTAL COST: $28,575.00 INDIRECT COST: BUDGETED: Yes X No
141-11500-530340
DIFFERENTIAL OF LOCAL PREFERENCE: N/A
COST TO COUNTY: $28,575.00 SOURCE OF FUNDS: Ad valorem taxation
REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year
APPROVED BY: County Atty ' A/PurEas/ing Risk Management
DOCUMENTATION: Included X Not Required _m
DISPOSITION:, AGENDA ITEM#
Revised 7/09
DD P�
MONROE COUNTY
FLORIDA VOLUNTEER FIREFIGHTER
AND EMERGENCY MEDICAL SERVICES
LENGTH OF SERVICE AWARD PLAN
ACTUARIAL REPORT
JANUARY 1,2013
/ :I
October 28, 2013
Monroe County Board of County Commissioners
Fire Chief James Callahan
490 63`d Street
Marathon,FL 33050
Dear Plan Administrator:
We are pleased to present the attached Report as of January 1,2013, covering the actuarial
aspects of the"Monroe County LOSAP"for the Plan Year ending December 31, 2013 and the
County's fiscal year ending September 30,2014.
A brief overview of the results can be obtained by looking at the following figures for the
past three years:
2011 2012* 2013*
Item Plan Year Plan Year Plan Year
Participants 59 59 51
Covered Payroll $ na $ na $na
Current EOY Plan Costs * $22,945 $31,588 $28,575
* 2012 and 2013 assumed changes in discount rate. Years prior to 2012 assumed additional
years past service benefit and includes provisions for expenses and provisions for Funding
Standard Account debit balances, but not credit balances.
Due to Key Largo terminating from the County plan effective October 1, 2006,we have not
assigned any costs to them. We have kept the vested participants for Key Largo's Fire and EMS
and assets estimated to be sufficient for those participants and reallocated the remaining assets to
the other participating departments. Should additional vested participants arise from a future
census, we will include them with the future year's valuation and recapture the assets for those
benefits. Additionally, in the future, should assets not be sufficient to cover those benefits, an
additional recapture of assets may be needed. These recaptures, if any, will be made in the same
ratio as the reallocation was determined, which split assets available for reallocation equally among
the remaining active departments.
Monroe County Board of County Commissioners
October 28, 2013
Page Two
The undersigned credentialed actuary meets the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
Assuming that the recommended funding is made and that the asset performance becomes
consistent with our current assumption, 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, MAAA,EA
Consulting Actuary
GF /nm
Enclosures
............. ("I'll'' 1", �, �........ e.
....
�..........
October 28, 2013
ACTUARIAL REPORT
PLAN: Monroe County,Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
PLAN YEAR: January 1, 2013 through December 31, 2013
SPONSOR FISCAL YEAR: October 1, 2013 through September 30, 2014
VALUATION DATE: January 1,2013
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 of the 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
- To present disclosures required by Governmental Accounting Standards Board,
Statements#67
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 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.
The undersigned credentialed actuary meets the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
................... .......... -------......... ..........
Date Glenn F. Mouton
Enrollment#11-2773
On Behalf of Mouton& Company,Inc.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2013
TABLE OF CONTENTS
EXHIBIT 1 VALUATION RESULTS
Schedule A—Development of Actuarial Assets I
Schedule B ..Plan Description—After Changes 2
Schedule B—Plan Description—Before Changes 3
Schedule C - Development of Current Year's Costs 4
Schedule D—Development of Historical and Projected FSA 5
Schedule E - Participant Data 6
Schedule F -Assets 6
Schedule G-Liabilities 6
Schedule H -Actuarial Present Value of Accrued Benefits 7
Schedule I- Statement of Changes in Total Actuarial
Present Value of All Accrued Benefits 7
Schedule J - Pension Cost 8
Schedule K- Past Contributions 8
Schedule L- Comparison of Actual to Assumed Earnings 9
EXHIBIT 2 PARTICIPANT DEMOGRAPHICS
Schedule A- Coverage 10
Schedule B—Year of Credited Service 10
Schedule C - Participant Reconciliation 11
EXHIBIT 3 PLAN ASSET INFORMATION
Schedule A- Statement of Net Assets Available
for Benefits at Market Values 12
Schedule B - Statement of Changes in Net Assets
Available for Benefits 13
EXHIBIT 4 PLAN SUMMARY 14
EXHIBIT 5 COST METHOD AND ASSUMPTIONS 18
EXHIBIT 6 PENSION COST RATIONALE 19
EXHIBIT 7 GASB 25 INFORMATION 20
EXHIBIT 8 GASB 67 INFORMATION 24
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MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 4 of 30
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2013 CURRENT VALUATION RESULTS EXHIBIT I
Development of Current Year's Costs Schedule C
—-----—---------------------------—--—----—-----—---—-----—-------------—---—--------—-—-—---—---—-------------------—----
After Before
Changes Changes
Current Year Current Year Prior Year
01-Jan-2013 01-Jan-2013 01-Jan-2012
A. Present Value of Future Obligations -- -
1. Active Members 484,275 445,032 550,888
2. Inactive Members 450,823 433,222 383,817
3. Retired Members 0 0 0
4. Survivors on Benefit 0 0 0
5. Disabled Members 0 0 0
-----—--------
Total Actuarial Accrued Liability, 935,098 878,254 934,705
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 848,808 848,808 849,903
---—--— ----
D. Amount to be Funded by County(A-B-C) 86,290 29,446 94,802
(Unfunded Actuarial Accrued Liability)
E. Aggregate Normal Costs from District Calculations including expenses 28,575 21,797 31,588
F. Expenses not paid directly by the County(included above) na na na
G. Interest Adjustments not included elsewhere 0 0 0
--------- --------------- ---------—H. Total Plan Normal Costs=GASB 25 ARC 28,575 21,797 31,588
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page of30
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as ofJanuary 1,2013 CURRENT VALUATION RESULTS EXHIBIT I
Development of Historical and Projected Funding Standard Account Balances Schedule D
—---—-------—-——---- —--------------------—-------—-----—---—----- —-—----—--—---——--—-------—------
1.50% 100%
After Before
Changes Changes
Projected Projected
Current Current 2.00%
Plan Year Plan Year Prior Year*
01-Jan-2013 01-Jan-2013 01-Jan-2012
A. Beginning Balance 20,825 20,826 23,656
Interest Adjustment to End of Year 312 417 473
------- ---—------
sub-total 21,137 21,243 24,129
B. Less Charges to Account
1. Normal Costs for the Year(BOY) 28,575 21,797 31,588
2. Provision for Expenses(included in(1)above) na no na
2. Amortization Charges(net)(BOY) 0 0 0
1 Interest Adjustment to End of Year 1.50% 0 0 0
28,575 21,797 31,588
C. Plus Credits to Account
1. Contributions Credited During the Year 0 0 29,145
1 Amortization Charges(net)(BOY) 0 0 0
3. Interest Adjustment to End of Year 0 0 139
------ ------— ----—-
0 0 28,284
D. Ending Balance*(not less than 0) 0 0 20,825
2.00%
Date Made Amount Interest
02-Oct-12 28,145 139
0 0
0 0
0 0
28,145 139
Note: A positive ending balance represents the accumulation of past contributions in excess of required minimums.
Such a balance is available to the sponsor in the current or future years to adjust normal funding requirements.
For the current year,Contributions Credited are determined as the lowest amount which would avoid an ending
negative balance,under the assumption that the contribution is received on the last day of the plan year.
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 6 of 30
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2013 CURRENT VALUATION RESULTS EXHIBIT I
Participant Data Schedule E
Next
Current Year Prior Year Prior Year
01-Jan-2013 01-Jan-2012 0 1-Jan-201 I
Number Included — — --
Active Members 21 31 31
Inactive Members 22 20 20
Retired Members 8 8 8
Current Beneficiaries 0 0 0
Disabled Members 0 0 0
Total Members 51 59 59
Total Annual Payroll of Actives 0 0 0
Total Annual Benefits:
to Retired Members 28,065 24,660 21,480
to Current Beneficiaries 0 0 0
to Disabled Members 0 0 0
Assets Schedule F
---------------------
Actuarial Value 848,808 849,903 841,980
Market Value 848,808 849,903 841,980
Liabilities Schedule G
-------—---—------------------—----—--——----—-—---—-------—---—--------—-—----—-------—-----------—-------------—------—-—--—-------—----—------------—----—--—------—---
After Before
Changes Changes
Current Current Prior
Plan Year Plan Year Plan Year
01-Jan-2013 0 I-Jan-2013 01-Jan-2012
Present Value of Future Benefits — -- —
Active Members 484,275 445,032 550,888
Inactive Members 450,823 433,222 383,817
Retired Members 0 0 0
Current Beneficiaries 0 0 0
Disabled Members 0 0 0
Total 935,098 878,254 934,705
Less Present Value
Future Member Contributions 0 0 0
Future State Contributions 0 0 0
------—---—— --------
0 0 0
Actuarial Accrued Liability 935,098 878,254 934,705
less Actuarial Plan Assets (848,808) (848,808) (849,903)
Unfunded Actuarial Accrued Liability 86,290 29,446 84,802
Z j
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 7 of 30
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2013 CURRENT VALUATION RESULTS EXHIBIT I
Actuarial Present Value of Accrued Benefits Schedule H
------------
After Before
Changes Changes
Current Year Current Year Prior Year
0 I-Jan-2013 01-Jan-2013 01-Jan-2012
Vested Accrued Benefits -- - -
Inactive Members&Beneficiaries 450,823 433,222 383,817
Active Members 343,116 327,922 299,699
Total 793,939 761,144 683,516
Nonvested Accrued Benefits (17,127) (23,757) 68,188
Total 776,812 737,387 751,704
Statement of Changes in Total Actuarial Present Value
of All Accrued Benefits Schedule
---—-—--------—-----——--------------—------------—--------—--—--------———----—-----—---------—-—-——-—----—----------------—-----—--——
After Before
Changes Changes
Current Year Current Year
0 1-Jan-2013 01-Jan-2013
Present Value of Accrued Benefits at --
Beginning of Year 751,704 751,704
Increase(Decrease)During Year Attributable
to(where applicable):
Plan Adoption 0 0
Plan Amendment 0 0
Changes in Valuation--interest rate 43,113 0
Increase due to Survivorship 0 0
Increase for less Interest Discount 11,065 14,753
Benefits Accrued,net of excluded participants 13,573 13,573
Benefits Paid (28,065) (28,065)
Other Changes-terminations (14,578) (14,578)
-—-—--------
Net Increase(Decrease) 25,108 (14,317)
Actuarial Present Value of Accrued
Benefits at End of Year 776,812 737,387
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 8 of 30
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2013 CURRENT VALUATION RESULTS EXHIBIT I
Pension Cost Schedule J
—-----———----------————---—-------—-----—-------------------—-——-----------
Next
Plan Year Prior Year Prior Year
01-Jan-2013 01-Jan-2012 0 1-Jan-201 I
Accumulated Prior Deficiency(Credit) w (7,998) 0
Required Funding Costs 28,575 31,588 22,945
Current Sponsor Contributions (28,145) (30,379)
Interest Adjustment 0 (139) (564)
Total Required County Contribution 28,575 (4,694) (7,998)
As%of Payroll N/A N/A N/A
Estimated Participant Contributions 0 0 0
As%of Payroll N/A N/A N/A
Estimated Premium Tax Refund 0 0 0
As%of Payroll N/A N/A N/A
Remaining Amount to be Contributed
by County 28,575 0 0
As%of Payroll N/A N/A N/A
Schedule K
Past Contributions
----—----——--- ———----—-------—--------—-- —-—----------—---—-----—For the fiscal year ended 12/31/12
Total Contribution Required 31,588
Actual Contribution Made By�
State 0
County 28,145
Participants 0
28,145
: I
-.. 3 C
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 9 ail"30
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2013 CURRENT VALUATION RESULTS EXHIBIT 1
Comparison of Actual to Assumed Earnings Schedule L
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Assuming uniform income and disbursements,Employer Contributions assumed at End of Year)
Benefits
Year Beginning Ending Investment Other and
Ended Assets Assets Eamings 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 8,417
31-Dec-2005 626,637 700,939 20,872 0 7,620
31-Dec-2006 700,939 725,508 15,466 0 10,130
31-Dec-2007 725,508 782,060 38,439 0 6,120
31-Dec-2008 782,060 817,512 30,628 0 23,653
31-Dec-2009 817,512 831,083 6,555 0 23,775
31-Dec-2010 831,083 841,980 7,821 0 25,838
31-Dec-2011 841,980 849,903 6,561 0 29,018
31-Dec-2012 849,903 848,808 3,333 0 32,573
Year Net Expected Actual 3 Year 5 Year Assumed
Ended Increase Earnings Experience Average Average Factor
31-Dec-1999 0 0 0.00% na na 5.00%
31-Dec-2000 2,751 7,506 1.83% na na 5.00%
31-Dec-2001 9,611 15,572 4.44% na na 5.00%
31-Dec-2002 (4,116) 19,260 1.11% 2.46% na 5.00%
31-Dec-2003 9,169 23,736 1.93% 2.49% na 5.00%
31-Dec-2004 (5) 27,926 1.51% 1.52% 1.29% 5.00%
31-Dec-2005 13,252 24,913 3.35% 2.26% 1.75% 4.00%
31-Dec-2006 5,336 20,876 2.22% 2.36% 2.22% 3.00%
31-Dec-2007 32,319 18,061 5.32% 3.63% 2.45% 2.50%
31-Dec-2008 6,975 19,256 3.98% 3.84% 2.72% 2.50%
31-Dec-2009 (17,220) 20,141 0.81% 3.37% 3.09% 2.50%
31-Dec-2010 (18,016) 20,454 0.96% 1.92% 3.02% 2.50%
31-Dec-2011 (22,456) 20,687 0.79% 0.85% 2.72% 2.50%
31-Dec-2012 (29,240) 16,672 0.40% 0.72% 2.14% 2.00%
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.
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 10 of 30
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of J PARTICIPANT DEMOGRAPHICS EXHIBIT 2
Coverage Schedule A
--------------------------------------------------------------------------------------------------------------------------------------------------------------------
This valuation includes the following 51 persons covered by the plan as of December 31,2012.
Category Number Amount
Active Participants 21 0
Other Inactive Participants 22 0
Retirees on Benefit 8 0
Survivors on Benefit 0 0
Participants on Disability Benefit 0 0
Terminated Vested Participants 0 0
---- -----------
TOTAL 51 N/A
Annual covered pay only
Annual Benefit
51 persons(included in the data furnished to us)were ineligible for participation as of the valaution
date. Participant data was furnished by the County of Monore and was as of December 31,2012.
Years of Credited Service--all Participants Schedule B
--------------------------------------------------------------------------------------------------------------------------------------------------------------------
Years of Service
-----------------------------------------------------------------------------------------------------------------------------------------------------
< 1 1-4 I 5-9 I 10-14 I 15-19 I 20-24 I 25-29 I 30-34
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Attained
Age Count I Count I Count I Count I Count I Count I Count I Count I Totals
Under 25 3 1 I I I I I 3
26-29 2 0 I I I I I I 2
30-34 I 3 4
35-39 I 1 3
40-44 I 2 I 4 I I I 1 I 7
45-49 I 2 I I I 2 I 1 I I 5
50-54 I I 1 I 2 I 1 I 1 I 1 I I 6
55-59 I I 1 I 4 I 2 I I I 7
60-64 I 4 I 1 I I I I 5
64-69 I I 4 f 4 I I I I 8
Over 70 I I I 0 1 I I1
0 13 8 15 10 3 2 0 51
&80NROB COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page llof3U
EMERGENCY MEDICAL SERVICES LENGTH OP SERVICE AWARD PLAN
Actuarial Valuation uoof January |,2Ol3 PARTICIPANT DEMOGRAPHICS EXHIBIT
Participant Reconciliation Schedule
_______________________________________________________________________________
Ret|red Survivor
on on
Active Benefit
Benefit Disabled Inactive Total
--- ---' ---' ---- ---' ---
Participants atU\-]un-2O)2 31 Q O U 20 59
New 9 A
Retirement 0 O
Death O 0
Non-Vested Termination -17 (17)
Vested Termination -Z 2 O
Lump Sum Settlement O O
New Survivors O 0
____ ____ ____ ____ ____ -------
Participants at 3 1-Dec-2012 21 8 0 0 22 51
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 12 of 30
Actuarial Valuation as of January 1, 2013
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Net Assets Available for Benefits* Schedule A
3 1-Dec-201 1 3 1-Dec-2012
--------------------------------------------------------------------------------------------------------------------------------------
Market Value
Money Market 849,903.01 848,808.18
Accrued Contribution - Employer 0.00 0.00
---------------- ----------------
849,903.01 848,808.18
---------------- ----------------
Liabilities
Accounts Payable 0.00 0.00
Deferred Revenues 0.00 0.00
---------------- ----------------
0.00 0.00
-------- ------- ----------------
Net Assets Available 849,903.01 848,808.18
----------- -----------
----------- ------------
As reported by the County
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER.AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 13 of 30
Actuarial Valuation as of January 1,2013
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Changes in Market Value of Net Assets Schedule B
Plan Year Ending: 3 1-Dec-201 1 3 1-Dec-2012
--------------------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES
Earnings on Investments 6,561.28 3,332.67
Unrealized Appreciation(Depreciation) 0.00 0.00
State Insurance Contributions 0.00 0.00
Employee Contributions 0.00 0.00
Employer Contributions: 30,379.00 28,145.00
Accrued 0.00 0.00
----------------- _________________
30,379.00 28,145.00
----------------- u _________________
36,940.28 0 31,477.67
----------------- -----------------
DECREASES
Expenses
Professional Fees (4,357.75) (4,507.50)
Professional Fees 0.00 0.00
PMA Fees 0.00 0.00
----------------- -----------------
(4,357.75) (4,507.50)
Paid to Participants
Retirees (24,660.00) (28,065.00)
Survivors 0.00 0.00
Disabled 0.00 0.00
Overpayment due to City 0.00 0.00
----------------- -----------------
(24,660.00) I, (28,065.00)
----------------- -----------------
(29,017.75) (32,572.50)
----------------- -----------------
Net Increase/(Decrease) 7,922.53 (1,094.83)
NET MARKET VALUE OF ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 841,980.48 0 849,903.01
------------------- a ___-_---___-_-__.-_.
End of Year 849,903.01 848,808.18
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2013 Page 14 of 30
PLAN SUMMARY EXHIBIT 4
I. General Information
(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 Eli i� bility for Participation
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. Years of Service
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 STU; 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
Years 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
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1,2013 Page 15 of 30
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, Contributions
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. Normal Retirement Benefit
(a) Eligibility: Completion of 10 years of service.
(b) Benefit: An annual benefit based on the following schedule:
Benefit Schedule
Years of Monthly Annual
Service Benefit Benefit
25 375 $4500
24 360 4320
23 35 4140
22 330 3960
21 315 3780
20 300 3600
19 25 3420
18 270 3240
17 255 3060
16 20 20
15 225 2700
14 210 2520
13 195 2340
12 10 2160
11 165 190
10 150 100
(c) Form of Payment: Benefit payments are payable monthly for a period of ten years.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2013 Page 16 of 30
PLAN SUMMARY EXHIBIT 4
6. Ve_ stingy
(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. Death Benefits prior to Attaining Normal Retirement Age
(a) Eligibility: Death of a vested Participant.
(b) Benefit: The present value of vested accrued benefits.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2013 Page 17 of 30
COST METHOD EXHIBIT 5
COST METHOD: A variation of the aggregate actuarial cost method is being used to value the
benefits for funding progress. 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. A
department's normal cost is not allowed to become negative. Expenses are shown
unallocated and are assumed to be paid directly by the County.
For GASB 67 purposes the Individual Entry Age Normal Method is also presented herein.
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 18 of 30
Actuarial Valuation as of January 1, 2013
ACTUARIAL ASSUMPTIONS EXHIBIT 5
Actuarial Study as of 01-Jan-2013
Valuation Date Adjustment: 0
Completed months to participate 0
Maximum number of credited Service Months at program inception:
For vesting purposes: 120
For benefit accrual purposes: 12
Annual Benefit Accrued for each completed year of service 180
Maximum Annual Benefit Accrued for each completed year of service 4500
Vesting Schedule Yrs Vesting
0 0%
10 100%
Termination Assumption: Godwin's Table 1, V Select& Ultimate Table, w/50%termination prob. for YOS<I.
Interest rate function assumptions i: 1.50%
v: 0.98522
d: 0.01478
112.32540 a(1 O)due: 9.36045
i(I 2): 0.124%
v(I 2): 0.99876
d(I 2): 0.00124
a(I 20)due: 111.56300
Maximum annual benefit accrual limited by I 3,000 320.5
Present value of maximum benefit: 42,122
Present value of annual benefit accrual 1,685
Year First Allowed for Benefit Accrual Purposes: After: 1986
Before: 1986
Maximum Credited Years for Benefit Accrual as of the Valuation Date: 28
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2013 Page 19 of 30
PENSIONCOST RATIONALEEXHIBIT
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
projections 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.
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 20 of30
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2013 E IBBIT 7
GASB 25 Notes to the Financial Statements
----------------------------------------------------------------------------------------------------------------------------------------------------
a. (1) The above PERS administrator is a single-employer with only one contributing county
employer and no nonemployer and no contributors.
(2) 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 1, 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 Normal Retirement Age shall not be eligible to participate in this Plan.
Inactive Participants by category:
Retirees currently receiving benefits 8
Beneficiaries currently receiving benefits 0
Terminated employees entitled to benefits 22
30
Fully vested and past normal retirement date 33
Partially vested 0
Non-vested 18
51
(3) The benefit provisions are as follows:
Benefit Schedule
Years of Monthly Annual
Service Benefit Benefit
25 375 $4,500
24 360 $4,320
23 345 $4,140
22 330 $3,960
21 315 $3,780
20 300 $3,600
19 285 $3,420
18 270 $3,240
17 255 $3,060
16 240 $2, 80
15 225 $2,700
14 210 $2,520
13 195 $2,340
12 10 $2,160
11 165 $1,980
10 150 $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.
MKJNROB COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 2\ uf3O
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation ayof January l,2Ol3 EXHIBIT
----------------------
G/\S1325 Notes»m the Financial Statements
__________________________________________________________________________________
Fureacb9|un9cocthcBourdahu||uppnopriute0uodu8omthcbud8etsufthcvuriouofine/ncmoue M8TD'u,
such funds hohe applied uma contribution tothe L0SAP trust account inan amount ua determined hythe
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 uo Participant contribution requirements.
The authority under which those obligations are established ia the Monroe County Ordinance No.O26-(00A
6. (i) The accounting policies include the Accrual basis of accounting,and assets are reported at Market Value.
Exchanges or"yvvops"o[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 5Y6oC 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, isa standardized disclosure measure o[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.
M0NRO8 COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 22nf3O
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation aoo[January 1,2013 EXHIBIT
G/\S825 Notes 0othe Financial Statements
______________________________________________________________________________
TheaiQuifiuunt actuarial assumptions used to compute the pension benefit obligation were:
Investment Yield: l.5U96 for both present and future;the prior valuation used 3.00Y6
Mortality Pattern: Not applicable
Salary Increases: Not applicable
Termination: (3odvvin'eTab\e l,\/Select dt Ultimate Table,with 50Y6 termination prob. OmrY0S<l.
The 8yotemo'm funding policy,as mandated by ordinance,provides for actuarially determined
periodic contributions
The Actuarial Funding Method is a variation of the aggregate actuarial cost method. The
present value of the projected benefits is calculated using the provisions of the plan
and the actuarial assumptions. The actuarial value o[assets includes only the value ofassets.
There are oo member contributions,nor any State premium tax refunds.
The(3&8BZ5 &utuu6u\ Funding Method [o the Aggregate Method. Since there ieoosalary,
allocations are based on service. Aggregation is used by fire district, in order to permit the
county to allocate costs by district. Under this method,&uiuo and|oaeco are spread over
future uunnu|costs.
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MK]NROB COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND Page 24o[3O
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation asofJanuary 1,2013 EXHIBIT
(]/\0B 67 Schedules of Funding Progress—Current Year EANCalculations 2013
__________________________________________________________________________________
BOectmf After Before
Change Changes Changes
u. Present Value FutBfts: 56,845 935,096 870,251
h. Present Value Put Entry Age NC: 17,236 126,193 108.957
_______ _______ _______
c. Entry Age Actuarial Liability(m-6): 39.689 808,903 769'294
d. Plan Assets: 848,800 848,808
_______ _______
e. Unfunded Entry Age Actuarial Liability(u-d): -39,905 -79.514
Entry Age Normal Cost: 18,434 16,595
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of.lanuary 1,2013 Page 25 of 30
GASB 67 Schedules Experience Gains and Losses (EAN method)—for year ending on the current valuation 2.00% EXHIBIT 8
01-tan-2012
EAN 2.00% Unfunded
Actuarial Valuation Actuarial
Liability Assets Liability
a. Beginning Balances 781,709 849,903 (68,194)
b. Interest Adjustment 15,634 16,998 (1,364)
C. Plan Normal Costs 24,003 0 24,003
d. Interest Adjustment 480 0 480
31-Dec-12
2.00%
Date Made Amount Days Factor* Interest
e. Employer Contributions 0 28,145 (28,145)
f. Interest Adjustment 02-Oct-12 28,145 90 0.24641 139 0 139 (139)
g. Benefits Paid (28,065) (28,065) 0
h. Interest Adjustment (281) (281) 0
I. Expenses Paid 0 (4,508) 4,508
j. Interest Adjustment 0 (45) 45
k. Expected Values 793,480 862,286 (68,806)
1. Assurnption Changes Discount rate change 39,609
m. Actual Values 808,903 848,808 (39,905)
n. Actual Deviation 24,186 13,478 (28,901)
o. Expected Investment Earnings(normal cost change) 16,811 r¢ 2.00%
p. Actual Investment Earnings(normal cost change) 3,333 0.40"/
check 0
MONROE COUNTY,FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 26 of 30
Actuarial Valuation as of January 1,2013 EXHIBIT 8
Summary of Fund Progress by Plan Years--
GASB 67 Schedules of Funding Progress Individual Entry Age Normal Method
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
I/l/2013 1/1/2012
to to
12/31/2013 .12/31/2012
Total Liability
Service Cost 24,003 24,056
Interest 15,833 18,104
Changes of benefit terms 0 0
Differences between expected and actual experience (24,186) 13,007
Changes in Assumptions 39,609 38,747
Benefit payments,including refunds of member contributions (28,065) (24,660)
--—-------—--—- —-----—----—Net change in total pension liability 27,194 69,254
Total pension liability—beginning 781,709 712,455
Total pension liability--ending(a) $808,903 $781,709
Plan Fiduciary net position
Employer Contribution 28,145 30,379
Employee Contribution 0 0
State Contribution 0 0
Investment Income 3,333 6,561
Other Income 0 0
Benefit payments (28,065) (24,660)
Admin expenses (4,508) (4,358)
Net change in plan fiduciary net position (1,095) 7,923
Plan fiduciary net position beginning 849,903 841,980
Plan fiduciary net position ending(b) $848,808 $849,903
Net Pension Liability(asset) ending(a)-(b) ($39,905) ($68,194)
Plan fiduciary net position as a percentage of the
total pension liability 104.93% 10&72%
Covered employee payroll #N/A #N/A
Net pension liability(asset)as a percentage of payroll #N/A #N/A
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 27 of 30
Actuarial Valuation as of January 1, 2013 EXHIBIT 8
GAS13 67 Schedules of Funding Progress --EAN results representing discount rate 1.0% higher
-------------------------------------------------------------------------------------------------------------------------------------
Discount rate: 2.50%
a. Present Value Fut Bfts: 826,742
b. Present Value Fut Entry Age NC: 94,251
--------------
C. Entry Age Actuarial Liability(a- b): 732,491
d. Plan Assets: 848,808
---- ---------
e. Unfunded Entry Age Actuarial Liability(c -d): -116,317
Entry Age Normal Cost: 14,957
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 28 of 30
Actuarial Valuation as of January 1, 2013 EXHIBIT 8
GASB 67 Schedules of Funding Progress -- EAN results representing discount rate 1.0% lower
-------------------------------------------------------------------------------------------------------------------------------------
Discount rate: 0.50%
a. Present Value Fut Bfts: 1,067,786
b. Present Value Fut Entry Age NC: 170,286
--------------
C. Entry Age Actuarial Liability (a- b): 897,500
d. Plan Assets: 848,808
--------------
e. Unfunded Entry Age Actuarial Liability (c-d): 48,692
Entry Age Normal Cost: 22,832
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