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
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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
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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 • : •