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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 C> x0 M ac'o 4 -4 1 00 n CD .6 10 z In "T 00 CD 0 �o ON 00 eq In CD t-: �d 00 r,4 00 r4 00 06 8, "0 Ul 00 It 00 E 00 00 cq C=' 00 00 C\ lo C=L op 0� r-� 0� -. w CD (D m 't C) CD 6 0 rq cq �n It 00c� CD 0 C) CD C) CD C, 0 q C� C� C� R C� q \0 00 �o "T 'Ir C> C, 00 00 ") �= C-4 r4 r- a, cu Clt It ol� rl� 00 CD > m M cq 00 r-: r; j In �o CD 00 �o 'IV en cq (71 roar NCq 0,r 00 V, CD \lD r- 0, cq ® It r- en t-: 00 W� C� C� 0 r- a, 10 (71 cn M It \10 m 00 C� u 00 cl W) C) a, wi C) rq o CD C) C) C, C) C> CD z C:� ® q C� C� a C� CD CD C) C) 0 C> < r- 0, W) In Clt 00 lu < E v a CD arl�r- CD 00 CD > y = C) CD Cl o Go 06 CIL uj 0 < u E UJ V > LIJ � m z 2 LU u bp C>� CD CD �o a, CD E < - 'a bf) 't m < > m rq CD C7\ C) In C. -�r LU 0 "D 0 m > < u =3 >: C U U LLJ 2 on 0 ra < z uj i u 0 1 v ii 2 1 bn tw > LLJ I a rn FW z uj LU CA Ifs uj go lc� I< 10 Cl < << a 10 ID C. < < ————————————————————— UW >< oj> 2 u en JA F2 A 0 U.U. U U lz z . W �4 0 -a >�-, LEI a zi LU iz 12 _3 J, w 4 m IO ! O CDm O bm � b O O O t- h ""O. b , ��LU ixl o l C 0 0 0 8 c W`} l ro� Q {1( C• 6 vl M V ! M O� N ba M �U � � P•- d p PTV � P! O PI POI y� 4 � f � I� �V2"� I>0 N P�•1 N vR N .yj � N F i IZ. v U E � by PI i IL O f Tt { M 4I W 11 w G b i � s i E Ell w _ It x a � OOj � b Y a n w ry a +X as E o u v a U1 U. d >: III u u w e v E E 0 C7 u w v N . . d e. U a, a -3 o E a� w A e a e b a V av �i' w n rya ® er y w < I o, U >^ .i t% 't 2 m m X ?4 ..1 t8l w 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. e E pp CL S2 ll� P. P.n ul Ul C) UJ ................. > > Tt U. u u U,E U U LL3 z> u u ce E z E U U LU E 5 2. US < i. C3 d F a 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. 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