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Item C42BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: October 19, 2011 Bulk Item: Yes X No Division: Emergency Services 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 2011; transfer of funds for Plan Year 2011 and 1986 into the LOSAP Trust Fund; approval of Resolution authorizing each eligible participant in LOSAP to be credited with additional year of service. 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 Years 2011 and 1986 into the LOSAP Trust Fund in the amount of $22,945.00. TOTAL COST: $22,945.00* INDIRECT COST: BUDGETED: Yes X No _ *Cost of year 2011 is $22,935.00; cost of year 1986 is $10.00, computing to a net cost of $22,945.00 to accept both years. 141-11500-530340 DIFFERENTIAL OF LOCAL PREFERENCE: N/A COST TO COUNTY: $22,945.00 SOURCE OF FUNDS: Ad valorem taxation REVENUE PRODUCING: Yes No X A OUNT PER MONTH Year County AA APPROVED BY: A tOMB/Purc asing Risk Management':.`'` DOCUMENTATION: Included X Not Required DISPOSITION: AGENDA ITEM # Revised 7/09 Monroe County Division of Emergency Services 490 63rd Street, Marathon, FL 33050 Phone: (305) 289-6088 Fax: (305) 289-6007 ADDITIONAL INFORMATION MEMO TO: Monroe County Board of County Commissioners FROM: James Callahan, Fire Chief Emergency Services Division RE: Agenda Item: Acceptance of the Monroe County Length of Service Award Program (LOSAP) actuarial valuation report for the Plan Year 2011; transfer of funds for Plan Years 2011 and 1986 into the LOSAP Trust Fund; approval of Resolution authorizing each participant in LOSAP to be credited with additional year of service. DATE: October 19, 2011 Ordinance No 026-1999, adopted by the Board of County Commissioners on June 9, 1999, provided that upon reaching the age of 60, each volunteer firefighter or EMS provider who had at least 10, but not more than 25 years of active service would receive a pension benefit in a predefined amount based on length of service. The same Ordinance further provided that for each Plan Year beginning in 1999, the BOCC would contribute an amount necessary to fund the pension benefit, based on an actuarial report that projected the cost of that future pension benefit in today's dollars. In addition, each year, the BOCC could elect to contribute an amount to provide a pension benefit for a past year provided that the volunteer was an active member during that time. Thus, in 1999 the BOCC funded the Plan with an amount equal to provide a pension benefit not only for verified active 1999 volunteers, but also for 1998 volunteers. In each subsequent year, after reviewing and accepting the actuarial report, the BOCC has approved the contribution of funds not only for the immediate Plan Year, but also for one additional successive past year. The LOSAP Trust Fund balance currently stands at $841,980.48. The actuarial report for Plan Year 2011 shows that the amount necessary to fund future obligations for Plan Year 2011 is $22,935.00. The same actuarial report shows that the amount necessary to cover pension benefits for volunteers in Plan Year 1986 is $10.00. These figures represent the actual fixed cost for these two respective Plan Years, and are computed by multiplying (a) number of qualified volunteers in that Plan Year, by (b) the annual benefit shown in Section 5 of the LOSAP (Ordinance 026-1999), and by (c) the statistical probability that the volunteer will actually receive benefits as determined by the actuary. Overall, the net cost for accepting both years is $22,945.00. Staff is now asking for the acceptance of the actuarial report and transfer funds into the LOSAP Trust Fund in the amount of $22,945.00. These funds were approved in the Fiscal Year 2012 budget process. James Callahan Emergency Services RESOLUTION NO. -2011 A RESOLUTION OF THE BOARD COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, AUTHORIZING EACH PARTICI- PANT IN THE LENGTH OF SERVICE AWARDS PROGRAM (LOSAP) TO BE CREDITED WITH AN ADDITIONAL YEAR OF SERVICE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, as follows: 1. Each Participant in the Length of Service Awards Program ("LOSAP") shall be credited with an additional Year of Service actually earned in the Year 1986, providing the Participant: (A) was enrolled as a member of the non-profit corporation or MSTU; and (B) was eligible for and received reimbursement of expenses for nine or more months of the Year 2010, thus resulting in a credit for the Plan Year 2011. 2. The total number of Years of Service that may be credited for service accrued prior to the Effective Date of LOSAP shall not exceed a maximum of one Year of Service actually earned by each Participant prior to the Effective Date of LOSAP. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the day of 92011. Mayor Heather Carruthers Mayor Pro Tern David Rice Commissioner Kim Wigington Commissioner George Neugent Commissioner Sylvia J. Murphy (SEAL) Attest: DANNY L. KOLHAGE, Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA Mayor/Chairman MONROE COUNTY FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN ACTUARIAL REPORT JANUARY 1, 2011 July 14, 2011 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, 2011, covering the actuarial aspects of the "Monroe County LOSAP" for the Plan Year ending December 31 2011 and the County's fiscal year ending September 30, 2012. A brief overview of the results can be obtained by looking at the following figures for the past three years: 2009 2010 2011 Item Plan Year Plan Year Plan Year Participants 61 62 59 Covered Payroll $ na $ na $ na Current EOY Plan Costs * $23,714 $25,179 $22,945 assuming an 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. J Monroe County Board of County Commissioners July 14, 2011 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 Consulting Actuary GFM/nm Enclosures July 14, 2011 ACTUARIAL REPORT PLAN: Monroe County, Florida Volunteer Firefighter and Emergency Medical Services Length of Services Award Plan PLAN YEAR: January 1, 2011 through December 31, 2011 SPONSOR FISCAL YEAR: October 1, 2011 through September 30, 2012 VALUATION DATE: January L,, 2011 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 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. Date Glenn F. Mouton Enrollment # 11-2773 On Behalf of Mouton & Company. Inc. ' , s,' ' i, c,;; f MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Actuarial Valuation as of January 1, 2011 TABLE OF CONTENTS EXHIBIT 1 VALUATION RESULTS Schedule A-v Development of Actuarial Assets 1 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 -a 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 17 EXHIBIT 6 PENSION COST RATIONALE 19 EXHIBIT 7 GASB 25 INFORMATION 20 N o S C .i O N W - O O W, 00 O O m O N [.ii '., H G Q -- Vl It 00 On 0, O Vw 10 0, M M M 00 S 00 S O00 O 00 I i O d � � � M WW WW Wn S O C p �o V1 �o Vn 00 V1 V1 V1 v M O y m�F N N Vn 00 N N N ' C O z O O O O O O O j o 2 7 C N O^ 000 00 S DO D\ O to 0 Vl 00 D\ O\ O 7 S •. s� d S > r r C, O a\ r 00 S C)y S M 00 O 00 O� 1- a [i o0 C U N V N V I 00 � 4� n O M 10 vn N a, a � 000 4.n p M 1% O V1 T 00 -It i y N ; C) 00 't 00 N N ' S N M f�+l V�'i V �o N C U�- O O w D\ M O I 00 H S r F 00 00 M VN'l O^ �p M VMi S Vl x S LQ 00 M M 0000 O, M 10 ON S M C 00 00 Q �w F U 0 1p O z> C7 O O N D w Cl] N C N U.O E' p ¢y U U. F ,� Q S C y u M N O� O ONO M S L Q N 4-�M_ O' 'C �,,, Q O 1 �O M V M M O S Q 7 0 m O 00 C, v _ o o`no p LL)cl� w a o O� w El.0 o >: F n F [z] Cp O> o Q LLJ x [r] LL)> O a `° p S a c o c`cc d o �a o = U °� a i U a -� -� o E U N rn QO QO y y c�0 7 � O 1 0 C 0 d W V Q tl�l Y 0 h e�e N � > W O 9 yO G � T Q O U o U U z � U G O 3 O Ie W � z a a GC ME_ W C L C L m C R M C o a C �. d ® M W V 9 U � o 0 0 0 0 Opp o g Vi C W 9 Q ® o � ® M 1p -• - M b r h Wi h M vl W ZO U N N N ty � � CO O ®• W Vl W O 1D Q�+ to �i W 00 tl• N M r �D �D � ¢G W N BO vl O V3 N 7 M N M wl h �D Q M -0 m I F O O O, M O, W I z o.. �— Vpapl V�1 O mM LL � o ah 9 U rX U ' n M M 1 W a w Vl ® y C O a'� mQ � � M 1D W fh .r-• V1 � � V" yOy G O i 3 N o to 'o •U � ? Y W > 3} ® t � CTC W G 'C v •� V U y • �e9i > o .v CL 6 C O v C C r ea �b � � O t 0 w M M o. 6 � •U •$ as N C u pOp u v cn � y r UCL Y o t ?+ o u o to to Q 6 m V] j-^ G oZ z {da HE O I I 4 7B o gLU CL z u > .6 - . 0,7 0 0 I t— e+i- I F I I kr 0. rO O - - - - - - - ON - 0 - - - 0 - - - - 0 - - ON - - o 0' uj nm m 2 2 _a z LU t r t MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 4 of 23 EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 CURRENT VALUATION RESULTS EXHIBIT 1 Development of Current Year's Costs Schedule C Before Change After Change * Current Year Current Year Prior Year 01-Jan-2011 01-Jan-2011 01-Jan-2010 N Present Value of Future Obligations: -------_ 1. Active Members 517,546 517,613 514,650 2. Inactive Members 353,035 353„035 370,065 3. Retired Members 0 0 0 4. Survivors on Benefit 0 0 0 5. Disabled Members 0 0 0 Total Actuarial Accrued Liability: 870,581 870,648 884,715 B. Less Present Value of l Member Contributions 0 0 0 2- Florida Premium Tax Rebates 0 0 0 0 0 0 C. Less Actuarial Plan Assets 841,980 841,980 831,083 D Amount to be Funded by County (A-B-C) 28,601 28,668 53,632 (Unfunded Actuarial Accrued Liability) E. Aggregate Normal Costs from District Calculations including expenses 22,935 22,945 25,179 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 22,935 22,945 25,179 Change is the crediting of 1986 as an additional year of potential past credited service. MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 CURRENT VALUATION RESULTS Development of Historical and Projected Funding Standard Account Balances A. Beginning Balance Interest Adjustment to End of Year sub -total B Less Charges to Account 1. Normal Costs for the Year (BOY) 2. Provision for Expenses (included in (1) above) 2. Amortization Charges (net) (BOY) 3. Interest Adjustment to End of Year C Plus Credits to Account I. Contributions Credited During the Year 2, Amortization Charges (net) (BOY) 3. Interest Adjustment to End of Year D. Ending Balance* (not less than 0) Date Made Amount 21-May-10 28,914 0 0 0 28,914 i j` gy,)uf?tt1 Page 5 of 23 EXHIBIT 1 Schedule D Before Changes After Changes Projected Projected Current Current Plan Year Plan Year Prior Year 01-Jan-2011 01-Jan-2011 01-Jan-2010 15,276 15,276 10,825 382 382 271 15,658 15,658 11,096 22,935 22,945 25,179 na na na 0 0 0 2.50% 0 0 0 22,935 22,945 25,179 0 0 28,914 0 0 0 0 0 445 0 0 29,359 0 0 15,276 Interest 445 0 0 0 445 *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, { i MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 6 of 23 EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 CURRENT VALUATION RESULTS EXHIBIT 1 Participant Data Schedule E ------------------------------------------------------------------------------------------------------------------------------------------------------------------ Next Current Year Prior Year Prior Year 01-Jan-2011 01-Jan-20I0 01-Jan-2009 Number Included M -- Active Members 31 28 32 Inactive Members 20 26 22 Retired Members 8 8 7 Current Beneficiaries 0 0 0 Disabled Members 0 0 0 Total Annual Payroll of Actives 0 0 0 Total Annual Benefits: to Retired Members 21,480 15,075 18,720 to Current Beneficiaries 0 0 0 to Disabled Members 0 0 0 Assets ------------------------------------------------------------------------------------------------------------------------------------------------------------------ Schedule F Actuarial Value 841,980 831,083 817,512 Market Value 841,980 831,083 817,512 Liabilities ------------------------------------------------------------------------------------------------------------------------------------------------------------------ Schedule G Before Changes After Changes Current Current Prior Plan Year Plan Year Plan Year O1-Jan-2011 01-Jan-2011 01-Jan-2010 Present Value of Future Benefits --- Active Members 517,546 517,613 514,650 Inactive Members 353,035 353,035 370,065 Retired Members 0 0 0 Current Beneficiaries 0 0 0 Disabled Members 0 0 0 Total --------------- 870,581 --------------- 870,648 --------------- 884,715 Less Present Value Future Member Contributions 0 0 0 Future State Contributions 0 0 0 0 0 0 Actuarial Accrued Liability --------------- 870,581 --------------- 870,648 --------------- 884,715 less Actuarial Plan Assets (841,980) (841,980) (831,083) Unfunded Actuarial Accrued Liability --------------- 28,601 --------------- 28,668 --------------- 53,632 MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 Actuarial Present Value of Accrued Benefits Vested Accrued Benefits Inactive Members & Beneficiaries Active Members Total Nonvested Accrued Benefits Total Statement of Changes in Total Actuarial Present Value of All Accrued Benefits Present Value of Accrued Benefits at Beginning of Year Increase (Decrease) During Year Attributable to (where applicable): 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 Net Increase (Decrease) Actuarial Present Value of Accrued Benefits at End of Year CURRENT VALUATION RESULTS Before Changes After Changes Current Year Current Year O1-Jan-2011 01-Jan-2011 353,035 353,035 258,399 259,542 611,434 612,577 68,787 68,773 680,221 681,350 Before Changes After Changes Current Year Current Year O1-Jan-2011 01-Jan-2011 698,077 698,077 0 0 0 0 0 0 0 0 17,183 17,183 54,698 55,827 (21,480) (21,480) (68,257) (68,257) (17,856) (16,727) 680,221 681,350 Page 7 of 23 EXHIBIT I Schedule H Prior Year O1-Jan-2010 370,065 280,528 -------------- 650,593 47,484 698,077 Schedule I �t4it. jr�` MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 CURRENT VALUATION RESULTS Pension Cost Required Funding Costs Current and Prior Unfunded Administrative Expense Interest Adjustment Total Required County Contribution As % of Payroll Estimated Participant Contributions As % of Payroll Estimated Premium Tax Refund As % of Payroll Remaining Amount to be Contributed by County As % of Payroll Past Contributions For the fiscal year ended 12/31/10 Total Contribution Required Actual Contribution Made By: State County Participants Page 8 of 23 EXHIBIT 1 Schedule J Before Changes After Changes Current Current Prior Plan Year Plan Year Plan Year O1-Jan-2011 01-Jan-2011 01-Jan-2010 22,935 22,945 25,179 (23,772) (23,772) (19,114) (594) (594) (478) ----------- (1,431) ----------- (1,421) ----------- 5,587 NA NIA NIA 0 0 0 N/A N/A N/A 0 0 0 NIA NIA NIA (1,431) (1,421) 5,587 NIA NIA N/A 5,587 0 28,914 0 28,914 Schedule K MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 9 of 23 Actuarial Valuation as of January 1, 2011 CURRENT VALUATION RESULTS EXHIBIT 1 Comparison of Actual to Assumed Earnings (Assuming uniform income and disbursements, Employer Contributions assumed at End of Year) Schedule L 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 8,417 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 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% 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 4.47% 3.35% 2.40% 2.50% 31-Dec-2008 6,975 19,256 3.98% 3.56% 2.61% 2.50% 31-Dec-2009 (17,220) 20,141 0.81 % 3.09% 2.92% 2.50% 31-Dec-2010 (18,016) 20,454 0.96°% 1.92% 2.85% 2.50% 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. * Revised from prior year MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 10 of 23 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 59 persons covered by the plan as of December 31, 2010. Category Number Amount Active Participants 31 0 Other Inactive Participants 20 0 ** Retirees on Benefit 8 0 ** Survivors on Benefit 0 0 ** Participants on Disability Benefit 0 0 ** Terminated Vested Participants 0 0 ** ---- ----------- TOTAL 59 N/A * Annual covered pay only ** Annual Benefit 59 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, 2010. Years of Credited Service -- all Participants - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Years of Service ---------------------------------------------------------------------------------------------------------------------- 1 1 1-4 1 5-9 1 10-14 1 15-19 1 20-24 1 25-29 Attained Age Count Under 25 26-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 64-69 Over 70 0 Count 1 4 2 7 4 4 1 I I I 23 Count 1 1 1 1 2 1 1 1 I 21 I I I 7 Count 1 1 1 1 1 21 41 71 1 1 16 Count Count FM Count Schedule B •------------------------------ ------------------------------- 30-34 1 Count I 1 I � I I I I I I 3 1 0 Totals 4 3 9 6 10 6 7 7 6 0 59 MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 11 of 23 EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 PARTICIPANT DEMOGRAPHICS EXHIBIT 2 Participant Reconciliation Schedule C Retired Survivor on on Active Benefit Benefit Disabled Inactive Total Participants at 01-Jan-2010 32 8 0 0 22 62 New 8 8 Retirement 0 0 Death 0 0 Non -Vested Termination -9 -2 (11) Vested Termination 0 0 Lump Sum Settlement 0 0 New Survivors 0 0 Participants at 31-Dec-2010 31 8 0 0 20 59 MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 12 of 23 Actuarial Valuation as of January 1, 2011 PLAN ASSET INFORMATION EXHIBIT 3 Statement of Net Assets Available for Benefits* Schedule A 31-Dec-2009 31-Dec-2010 Market Value Money Market 831,082.97 841,980.48 Accrued Contribution - Employer 0.00 0.00 ---------------- ---------------- 831,082.97 841,980.48 ---------------- ---------------- Liabilities Accounts Payable 0.00 0.00 Deferred Revenues 0.00 0.00 0.00 0.00 ---------------- --------------- Net Assets Available 831,082.97 841,980.48 * As reported by the County MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 13 of 23 Actuarial Valuation as of January 1, 2011 PLAN ASSET INFORMATION EXHIBIT 3 Statement of Changes in Market Value of Net Assets Plan Year Ending: 31-Dec-2009 INCREASES Earnings on Investments 6,554.75 Unrealized Appreciation (Depreciation) 0.00 State Insurance Contributions 0.00 Employee Contributions 0.00 Employer Contributions: 30,791.00 Accrued 0.00 ----------------- 30,791.00 ----------------- 37,345.75 DECREASES ----------------- Expenses Professional Fees (8,700.00) Professional Fees 0.00 PMA Fees 0.00 ----------------- (8,700.00) Paid to Participants Retirees (15,075.00) Survivors 0.00 Disabled 0.00 Overpayment due to City 0.00 (15,075.00) ----------------- (23,775.00) ----------------- Net Increasel(Decrease) 13,570.75 j 1 NET MARKET VALUE OF ASSETS AVAILABLE FOR BENEFITS: j Beginning of Year 817,512.22 ------------------- End of Year 831,082.97 28,914.00 0.00 (4,357.75) 0.00 0.00 (21,480.00) 0.00 0.00 0.00 Schedule B 31-Dec-2010 7,821.26 0.00 0.00 0.00 28,914.00 ------------- 36,735.26 (4,357.75) (21,480.00) -------------- (25,837.75) •-------------- 10, 897.51 831,082.97 ------------------- 841,980.48 MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Actuarial Valuation as of January 1, 2011 I. General Information Page 14 of 23 PLAN SUMMARY EXHIBIT 4 (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 ibilily 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 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 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 Y MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Actuarial Valuation as of January 1, 2011 Page 15 of 23 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 fluids from the budgets of the various volunteer fire/rescue MSTU's to fluid 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 23 345 4140 22 330 3960 21 315 3780 20 300 3600 19 285 3420 18 270 3240 17 255 3060 16 240 2880 15 225 2700 14 210 2520 13 195 2340 12 180 2160 11 165 1980 10 150 1800 (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, 2011 Page 16 of 23 PLAN SUMMARY EXHIBIT 4 6. Vestina (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. . 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, 2011 Page 17 of 23 COST METHOD EXHIBIT 5-A COST 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. 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. MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 18 of 23 Actuarial Valuation as of January 1, 2011 ACTUARIAL ASSUMPTIONS EXHIBIT 5 - B Actuarial Study as of: 01-Jan-201 I 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, wl 50% termination prob. for YOS<1. Interest rate function assumptions is 2.50% v: 0.97561 d: 0.02439 107.65056 a(10)due: 8.97088 i(l2): 0.206% v(12): 0.99794 d(I 2): 0.00206 a(120)due: 106.41486 Maximum annual benefit accrual limited by IRC 3,000 334.42 Present value of maximum benefit: 40,369 Present value of annual benefit accrual 1,615 Year First Allowed for Benefit Accrual Purposes: After: 1986 Before: 1987 Maximum Credited Years for Benefit Accrual as of the Valuation Date: 26 MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Actuarial Valuation as of January 1, 2011 Page 19 of 23 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 4- 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 of 23 EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 EXHIBIT 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 Beneficiaries currently receiving benefits Terminated employees entitled to benefits Fully vested and past normal retirement date Partially vested Non -vested (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 $2,880 15 225 $2,700 14 210 $2,520 13 195 $2,340 12 180 $2,160 11 165 $1,980 10 150 $1,800 8 0 20 28 34 0 25 59 (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. MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 21 of 23 EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 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. MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 22 of 23 EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Actuarial Valuation as of January 1, 2011 EXHIBIT 7 GASB 25 Notes to the Financial Statements The significant actuarial assumptions used to compute the pension benefit obligation were: Investment Yield: 2.50% for both present and future. 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 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 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 district. Under this method, gains and losses are spread over future normal costs. ry SEES ESE 888 8 rvd rah Cc oo Cop Eggs S. 888 8888 �8A 8FF c5 It -1 k 600 Eggs 888 If 1181, I�d 1; ll� � FX LU i U > UJ > w Z 0 Contract with If there is a cost to Monroe County, is funding available? Yes No N/A (If no call Department) BOCC Meeting Date Is Cost to Monroe County: under$5,000_ $5,000-$25,000 _ did the department get two written quotes? Yes No (check with department) over $25,000 was this bid out? Yes No (check with Carlos Victores) Is this the low bidder? Yes No FS 287.0582 — all contracts which bind Monroe County for the purchase of services or tangible personal property for a period in excess of / fiscal year must have the following statement included in the contract. "Monroe County's performance and obligation to pay under this contract, is contingent upon an annual appropriation by the BOCC. " Is Non Appropriation Clause present? Yes No FS 287.133 — requirement for vendors to file a public entity crime statement prior to issuance of a purchase order or contract having a value in excess of the threshold for Category two($25, 000, 2002 Florida Statutes). Statement which reads as follows: "A person or affiliate who has been placed on the convicted vendor list following a conviction for public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entityfor the construction or repair of a public building or public work, may not submit bids on leases of real property to public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, for CATEGORY TWO for a period of 36 months from the date of being placed on the convicted vendor list." Is Public Entity Crime Statement present? Yes No Is Ethics form or statement present? "Contractor warrants that he/it has not employed, retained or otherwise had act on his/its behalf any former County officer or employee in violation of Section 2 of Ordinance No. 10-1990 or any County officer or employee in violation of Section 3 of Ordinance No. 10-1990. For breach or violation of this provision the County may, in its discretion, terminate this contract without liability and may also, in its discretion, deduct from the contract or purchase price, or otherwise recover, the full amount of any fee, commission, percentage, gift, or consideration paid to the former County officer or employee" .Yes No (If no comment on contract summary) If this is a grant agreement, is budget set up? Yes No N/A (If no keep copy with resolution folder) If this is an amendment, is original contract included? Yes No N/A (If no make note to department) Is there a cost of living clause? Yes No N/A If so does wording match Purchasing Policy Wording "adjusted annually in accordance with the percentage change in the Consumer Price Index for all urban consumers (CPI-U) for the most recent 12 months available"? Yes No N/A Additional Comments • • • MOVU42m, 0 • : •