Item C14
MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 19.2001
Bulk Item: Yes X No
Division: Public Safety
Department: Public Safety
AGENDA ITEM WORDING: Acceptance of the Monroe County Length of Service Award Program
(LOSAP) actuarial valuation report for the Plan Year 200 I
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 of County Commissioners
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 RECOMMENDATION: Acceptance of actuarial valuation report
COUNTY/DISTRICT CONTRIBUTION 2001: $66.250.00 BUDGETED: Yes X No
REVENUE PRODUCING: Yes
No
N/A
APPROVED BY: County Attorney N/A
DIVISION DIRECTOR APPROVAL:
James R. "Reggie" Paros
N/A
DOCUMENTATION: Included: X To Follow: _ Not Required: _
DISPOSITION:
Agenda Item #:
/,-c/L/
- MOUTON
. &COMP~ INC.
ACTUARIES AND PENSION ADMINISTRATORS
MONROE COUNTY
FLORIDA VOLUNTEER FIREFIGHTER
AND EMERGENCY MEDICAL SERVICES
LENGTH OF SERVICE AWARD PLAN
ACTUARIAL REPORT
JANUARY 1, 2001
Lakeview Professional Village' 516 Lakeview Road - Villa 6 . Clearwater, FL 33756 . (727) 441-1526 . Fax (727) 441-3564
:=: MOUTON
. &COMP~ INC.
ACruARIES AND PENSION ADMINISTRATORS
October 25,2001
Monroe County Board of County Commissioners
clo Mr. James R. "Reggie" Paros, Director
Public Safety Division
490 63rd Street, Suite 140
11arathon,FL 33050
Dear Plan Administrator:
We are pleased to present the attached Report as of January 1,2001, covering the actuarial
aspects of the "11onroe County LOSAP" for the Plan Year ending December 31, 2001 and the
County's fiscal year ending September 30, 2002.
A brief overview of the results can be obtained by looking at the following figures for the
past three years:
1999 2000 2001
Item Phm Ye::lT PI::I" Ye::lT PI::I" Ye::lT
Participants 239 239 165
Covered Payroll $ na $na $na
Fiscal Funding Cost $150,113 $165,684 $71,250
Assuming that the recommended funding is made, it is our opinion that the Plan will be
proceeding with a funding program which can be expected to support the benefits promised by the
Plan on an adequate and timely basis.
Respectfully submitted,
~~
Glenn F. 11outon, FSA
Consulting Actuary
GFMlnm
Enclosures
Lakeview Professional Village' 516 Lakeview Road - Villa 6 . Clearwater, FL 33756 . (727) 441-1526 . Fax (727) 441-3564
= MOUTON
. &COMP~ INC.
ACTIJARlES AND PENSION ADMINISTRATORS
October 25,2001
ArTITARTAT. REPORT
PLAN:
Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
PLAN YEAR:
January I, 2001 through December 31, 2001
SPONSOR FISCAL YEAR: October 1, 2001 through September 30,2002
VALUATION DATE:
January 1,2001
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 mayfequire a material increase in plan costs or
required contribution rates have been taken into account in the valuation.
'21,... ~ 2 U'D /
/
~
Date
Glenn F. Mouton
Enrollment #99-2773
On Behalf of Mouton & Company, Inc.
Lakeview Professional Village . 516LakeviewRoad-Villa6. Clearwater,FL33756. (727)441-1526. Fax (727)441-3564
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES A WARD PLAN
Actuarial Valuation as of January 1,2001
TABLE OF CONTENTS
EXHIBIT 1 VALUATION RESULTS
Schedule A - Plan Description
Schedule B - Development of Current Year's Costs
Schedule C - Development of Historical and Projected FSA
Schedule D - Investment Gains and Losses since the last valuation
Schedule E - Participant Data
Schedule F - Assets
Schedule G - Liabilities
Schedule H - Actuarial Present Value of Accrued Benefits
Schedule I - Statement of Changes in Total Actuarial
Present Value of All Accrued Benefits
Schedule J - Pension Cost
Schedule K - Past Contributions
Schedule L - Comparison of Actual to Assumed Earnings
I
2
3
4
5
5
5
6
6
7
7
8
EXHIBIT 2 PARTICIPANT DEMOGRAPHICS
Schedule A - Coverage
Schedule B - Participant Reconciliation
9
10
EXHIBIT 3 PLAN ASSET INFORMATION
Schedule A - Statement of Net Assets Available
for Benefits at Market Values
Schedule B - Statement of Changes in Net Assets
Available for Benefits
11
12
EXHIBIT 4
PLAN SUMMARY
13
EXHIBIT 5
COST METHOD AND ASSUMPTIONS
16
EXHIDIT 6
PENSION COST RATIONALE
18
EXHIDIT 7
GASB 25 INFORMATION
19
MOUTON & COMPANY, INC
ACTUARIES & PENSION ADMINISTRATORS
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ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page] of22
Actuarial Valuation as of January ],200]
CURRENT VALUATION RESULTS
EXHffi]T ]
Plan Description
Schedule A
--...---..----...........--------...---.........---------.....------.......---.........---...----------..--..---....--.....-......-..------..--......--......---...-.....------......-----------.....----......--....---......-...-.....-......--------............--..-
Actuarial Study as of:
O]-Jan-O]
Value
Completed months to participate
o
Years of Credited Service Required to be Fully Vested:
]0
Maximum number of credited Service Months at program inception:
For vesting purposes:
For benefit accrual purposes:
]20
]2
First Year for which Retroactive Benefit Accrual Service Is Granted:
]996
Annual Benefit Accrued for each completed year of service
]80
Maximum Annual Benefit:
4,500
Present Value of Annual Bft Earned:
],459
Present value of maximum benefit:
36,485
1.04986
Interest Adjustment to Move Nonnal Costs to End of Valuation Year:
Recap ofResu]ts:
After Change
Interest Rate:
5.00%
---------..-..-.....----...........---------------------------...----....----......-...---------...----....---....---.............-------...---..-...........----........---....--.......--------..---..----..--..--..-----.....------...........-....-
Present Aggregate Average
Parti- Parti- Present Allocated Value of Future Future Current
cipants cipants Value of Actuarial Future Service Service Nonnal
District Reported Valued Benefits Assets Nonnal Costs Annuity Annuity Cost EOY
--
Big Coppitt 49 25 47,949 38,880 9,069 129.827 5.]93 ],833
Big Pine 3] ]9 79,879 24,455 55,424 ] ]2.290 5.9]0 9,846
Conch Key 27 ]0 63,566 22,492 4],074 59.330 5.933 7,268
Key Largo Fire 57 30 ]26,362 58,938 67,424 ] 90.679 6.356 11,137
Key Largo EMS 47 30 ]23,930 52,923 7],007 ]92.009 6.400 11,648
Layton 25 17 87,304 3],086 56,2]8 93.574 5.504 ]0,723
Sugar]oaf Key 32 9 5],885 38,835 13,050 56.]25 6.236 2,]97
Tavernier 40 25 ]20,520 45,939 74,58] ]68.773 6.75] ] ],598
....--....------.. .....-......--..........- ----..--....--.... -....-...........-......-
Monroe County 308 ]65 70],395 313,548 387,847 ] 002.607 6.076 66,250
Note: Only Participants with 3 or more months of service in the prior plan year or who are vested in a benefit are valued.
Expense cost shown on page 3.
MOUTON & COMPANY. INc.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 2 of22
Actuarial Valuation as of January 1,2001
CURRENT VALUATION RESULTS
EXHIBIT 1
Plan Description
Schedule A
Actuarial Study as of:
OI-lan-Ol
Value
Completed months to participate
o
Years of Credited Service Required to be Fully Vested:
10
Maximum number of credited Service Months at program inception:
For vesting purposes:
For benefit accrual purposes:
120
12
First Year for which Retroactive Benefit Accrual Service Is Granted:
1997
Annual Benefit Accrued for each completed year of service
180
Maximum Annual Benefit:
4,500
1,459
36,485
1. 04986
Present Value of Annual Bft Earned:
Present value of maximum benefit:
Interest Adjustment to Move Nonnal Costs to End of Valuation Year:
Recap of Results:
Before Change
Interest Rate:
5.00%
Present Aggregate Average
Parti- Parti- Present Allocated Value of Future Future Current
cipants cipants Value of Actuarial Future Service Service Nonnal
District Reported Valued Benefits Assets Nonnal Costs Annuity Annuity Cost EOY
Big Coppitt 49 25 46,003 38,880 7,123 129.827 5.193 1,440
Big Pine 31 19 76,149 24,455 51,694 112.290 5.910 9,183
Conch Key 27 10 59,477 22,492 36,985 59.330 5.933 6,545
Key Largo Fire 57 30 126,362 58,938 67,424 190.679 6.356 11,137
Key Largo EMS 47 30 II 7,845 52,923 64,922 192.009 6.400 10,650
Layton 25 17 80,265 31,086 49,179 93.574 5.504 9,381
SugarloafKey 32 9 47,071 38,835 8,236 56.125 6.236 1,387
Tavernier 40 25 112,926 45,939 66,987 168.773 6.751 10,417
...---..---- ------------.. --------...-- ....-.......---...---
Monroe County 308 165 666,098 313,548 352,550 1002.607 6.076 60,140
Note: Only Participants with 3 or more months of seNice in the prior plan year or who are vested in a benefit are valued.
Expense cost shown on page 3.
MOUTON & COMPANY, INc.
ACTUARIES & PENSION ADMINISTRATORS
r
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page3 of 22
Actuarial Valuation as of January 1,2001
CURRENT VALUATION RESULTS
EXHIBIT I
Development of Current Year's Costs
Schedule B
---------------...-...---------------------------------------------------------------...--------------------------------------------------------------------------------..
Total Actuarial Accrued Liability:
Before Change After Change ...
Current Year Current Year Prior Year
01-Jan-2001 01-Jan-2001 01-Jan-2000
666,098 701,395 1,142,823
0 0 0
0 0 0
0 0 0
-------------- --------------- -------------
666,098 701,395 1,142,823
0 0 0
0 0 0
------------- -...------------ -------------
0 0 0
313,548 313,548 150,113
--------..----- ------------..-- --------------
352,550 387,847 992,710
60,140 66,250 160,684
5,000 5,000 5,000
0 0 0
-----------......- --------------- -------------
65,140 71,250 165,684
A. Present Value of Future Obligations:
I. Active Members
2. Retired Members
3. Survivors on Benefit
4. Disabled Members
B. Less Present Value of:
I. Member Contributions
2. Florida Premium Tax Rebates
C. Less Actuarial Plan Assets
D. Amount to be Funded by County (A-B-C)
(Unfunded Actuarial Accrued Liability)
E. Aggregate Normal Costs from District Calculations
F. Expenses not paid directly by the County
G. Interest Adjustments not included elsewhere
H. Total Plan Normal Costs = GASB 25 ARC
... Change is the crediting of 1996 as an additional year of potential past credited service.
MOUTON &. COMPANY, INJ
ACTUARIES &. PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 4 of 22
Actuarial Valuation as of January 1,2001
CURRENT V ALUA TION RESULTS
EXHIBIT 1
Development of Historical and Projected Funding Standard Account Balances
Schedule C
----------------------------------------------------------------------------------------------------------------------------------------------------------......--
A. Beginning Balance
Interest Adjustment to End of Year
Before Changes After Changes
Projected Projected
Current Current Prior
Plan Year Plan Year Plan Year
o I-Jan-200 1 o I-Jan-200 1 o I-Jan-2000
0 0 0
0 0 0
60,140 66,250 160,684
5,000 5,000 5,000
0 0 0
5.00% 0 0 0
65,140 71,250 165,684
0 0 165,684
0 0 0
0 0 0
0 0 165,684
-65,]40 -7],250 0
---
---
B. Less Charges to Account
1. Normal Costs for the Year (BOY)
2. Provision for Expenses
2. Amortization Charges (net) (BOY)
3. Interest Adjustment to End of Year
C. Plus Credits to Account
1. Contributions Credited During the Year
2. Amortization Charges (net) (BOY)
3. Interest Adjustment to End of Year
D. Ending Balance*
* 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.
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 5 of 22
Actuarial Valuation as ofJanuary 1,2001
CURRENT V ALUA nON RESULTS
EXHIBIT I
Participant Data
Schedule E
----------------------------------------------------------------...-----------------------------------------------------------..------------------------
Current Year Prior Year
01-Jan-2001 o I-Jan-2000
Number Included
Active Members 165 239
Retired Members 0 0
Current Beneficiaries 0 0
Disabled Members 0 0
Total Annual Payroll of Actives 0 0
Total Annual Benefits:
to Retired Members 0 0
to Current Beneficiaries 0 0
to Disabled Members 0 0
Assets Schedule F
----------------------------------------.....--------------------...------------------------..-...---------------------..---------------------------------
Actuarial Value
313,548
150,113
Market Value
313,548
150,113
Liabilities
Schedule G
------------------------------------------------------------------------------------------------------------.....------------------------------------.........
Total
Before Changes After Changes
Current Current Prior
Plan Year Plan Year Plan Year
o I-Jan-200 I 01-Jan-2001 01-Jan-2000
666,098 701,395 1,142,823
0 0 0
0 0 0
0 0 0
--------------- --------..------ ----------
666,098 701,395 1,142,823
0 0 0
0 0 0
--------------- --------------- ----------
0 0 0
--------------- --------------- ----------
666,098 701,395 1,142,823
(313,548) (313,548) (150,113)
-------------- --------------- ---------
352,550 387,847 992,710
Present Value of Benefits
Active Members
Retired Members
Current Beneficiaries
Disabled Members
Less Present Value
Future Member Contributions
Future State Contributions
Actuarial Accrued Liability
less Actuarial Plan Assets
Unfunded Actuarial Accrued Liability
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 6 of22
Actuarial Valuation as of January 1,2001
CURRENT V ALVA nON RESULTS
EXH18IT 1
Actuarial Present Value of Accrued Benefits
Schedule H
Before Changes
Current Year
01-Jan-2001
o
169,175
After Changes
Current Year Prior Year
o I-Jan-200 1 01-Jan-2000
0 0
143,959 128,060
-------------- ------------
143,959 128,060
557,436 1,014,763
------------- -------------
701,395 1,142,823
Vested Accrued Benefits
Inactive Members & Beneficiaries
Active Members
Total
Nonvested Accrued Benefits
169,175
496,923
Total
666,098
Statement of Changes in Total Actuarial Present Value
of All Accrued Benefits
Schedule I
Before Changes
Current Year
o I-Jan-200 1
After Changes
Current Year
o I-Jan-200 1
Prior Year
01-Jan-2000
Present Value of Accrued Benefits at
Beginning of Year
1,142,823
1,142,823
1,140,070
Increase (Decrease) During Year Attributable
to (where applicable):
Plan Adoption
Plan Amendment
Changes in Valuation
Increase due to Survivorship
Increase for less Interest Discount
Benefits Accrued, net of excluded participants
Benefits Paid
Other Changes - pay/benefit/deaths
Net Increase (Decrease)
0 0 0
0 0 61,582
0 0 (58,829)
0 0 0
0 0 0
(476,725) (441,428) 0
0 0 0
0 0 0
-------------- -------------- --------------
(476,725) (441,428) 2,753
666,098 701,395 1,142,823
Actuarial Present Value of Accrued
Benefits at End of Year
MOUTON &. COMPANY, INc.
ACTUARIES &. PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 7 of 22
Actuarial Valuation as of January 1,2001
CURRENT VALVA TION RESVL TS
EXHIBIT I
Pension Cost
Schedule J
Before Changes After Changes
Current Current
Plan Year Plan Year Prior Year
01-Jan-2001 01-Jan-2001 01-Jan-2000
Required Funding Costs 60,140 66,250 165,684
Administrative Expense 5,000 5,000 0
Interest Adjustment 0 0 0
---------- ---------- ----------
Total Required County Contribution 65,140 71,250 165,684
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 65,140 71,250 165,684
As % of Payroll N/A N/A N/A
Past Contributions Schedule K
For the fiscal year ended 12/31/00
Total Contribution Required
Actual Contribution Made By:
State
County
Participants
165,684
o
165,684
o
165,684
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 8 of 22
Actuarial Valuation as of January 1,2001
CURRENT V ALUA nON RESULTS
EXHIBIT I
Comparison of Actual to Assumed Earnings
Schedule L
(Assuming uniform income and disbursements, Employer Contributions assumed at End of Year)
Benefits
Valuation Beginning Ending Investment Other and
Date Assets Assets Earnings Income Expenses
31-Dec-1999 0 150,113 0 0 0
31-Dec-2000 150,113 313,548 2,751 0 0
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%
1999 is the first plan year and no assets were present prior to the end of the year, other than County accrued contributions.
Current earning rates are artificially depressed due to the plan only recently starting its funding. Future assets will be
invested assets and are expected to earn at or above the assumed factor, net of investment expenses.
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 9 of 22
Actuarial Valuation as of January 1,2001
P ARTICIP ANT DEMOGRAPHICS
EXHIBIT 2
Coverage
Schedule A
---------------------------------------------------------------------------------------------------------------------------------------------
This valuation includes the following 165 persons covered by the plan as of December 31, 2000.
Category
Number
Amount
Active Participants
Other Inactive Participants
Retirees on Benefit
Survivors on Benefit
Participants on Disability Benefit
Terminated Vested Participants
165
o
o
o
o
o
o *
0**
0**
0**
0**
0**
TOTAL
165
N/A
* Annual covered pay only
** Annual Benefit
143 persons (included in the data furnished to us) were ineligible for participation as of the valution
date. Participant data was furnished by the County ofMonore and was as of December 31,2000.
MOUTON & COMPANY,INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 10 of 22
Actuarial Valuation as of January 1,2001
Participant Reconciliation
Active
Participants at 0 l-J an- 2000 239
New 0
Retirement 0
Death 0
Non-Vested Termination -74
Vested Termination 0
Lump Sum Settlement 0
New Survivors 0
Participants at 31-Dec-2000 165
PARTICIPANT DEMOGRAPHICS
EXHIBIT 2
Schedule B
Retired
on
Benefit
Survivor
on
Benefit
With
Vested
Benefit
Disabled
Total
o
o
o
o
239
o
o
o
(74)
o
o
o
o
o
o
o
165
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Actuarial Valuation as ofJanuary 1,2001
Page 1 I of22
PLAN ASSET INFORMATION
EXHIBIT 3
Statement of Net Assets Available for Benefits*
31-Dec-1999
Schedule A
31-Dec-2000
Market Value
Money Market
Accrued Contribution - Employer
0.00
150,113.00
0.00
313,547.86
150,113.00
313,547.86
Liabilities
Accounts Payable
Deferred Revenues
0.00
0.00
0.00
0.00
0.00
0.00
Net Assets Available
150,113.00
313,547.86
* As reported by the County
MOUTON & COMPANY, INc.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2001
Page 12 of22
PLAN ASSET INFORMA nON
EXHIBIT 3
Statement of Changes in Market Value of Net Assets
Plan Year Ending:
31-Dec-1999
Schedule B
31-Dec-2000
+
INCREASES
Earnings on Investments
Unrealized Appreciation (Depreciation)
0.00
0.00
2,750.86
0.00
State Insurance Contributions
Employee Contributions
Employer Contributions:
0.00
0.00
0.00
0.00
150,113.00
160,684.00
Accrued
0.00
0.00
150,113.00
160,684.00
150,113.00
163,434.86
DECREASES
Expenses
Professional Fees
Other expenses
0.00
0.00
0.00
0.00
0.00
0.00
Paid to Participants
Retirees
Survivors
Disabled
Overpayment due to City
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Net Increase/(Decrease)
150,113.00
163,434.86
NET MARKET VALUE OF ASSETS A V AlLABLE FOR BENEFITS:
Beginning of Year
0.00
150,113.00
End of Year
150,113.00
313,547.86
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES A WARD PLAN
Actuarial Valuation as of January 1,2001 Page 13 of22
PLAN SUMMARY
EXHIBIT 4
1. GeneT::!1 Tnform::!tlon
(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. F,11eihl11ty for P::!rtlc1p::!tlon
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. r.ontrihlltion~
Each Plan Year, the Board shall appropriate funds from the budgets of the various volunteer
firelrescue MSTU's to fund the accrued or prospective benefits for Participants on an
actuarially sound basis.
MOUTON & COMPANY,INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES A WARD PLAN .
Actuarial Valuation as of January 1,2001 Page 14 of22
PLAN SUMMARY
EXHIBIT 4
4.. Nonn~1 Retirement Renefit
(a) Eligibility: Completion of 10 years of service.
(b) Benefit: An annual benefit based on the following schedule:
Renefit Scheclnle
Years of Monthly Annual
Servi ce Renefit Renefit
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 often years.
MOUTON & COMPANY, INC
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1,2001 Page 15 of22
PLAN SUMMARY
EXHIBIT 4
7. V p.~tlne
(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.
8. Dp.::Ith Rp.np.fit~ prior to Att::l1n1ne Norm;:)] Retirement Aee
(a) Eligibility: Death of a vested Participant.
(b) Benefit: The present value of vested accrued benefits.
MOUTON & COMPANY, INc.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1,2001 Page 16 of22
COST METHOD
EXHIBIT 5-A
rOST METHOD: A variation of the aggregate actuarial cost method is being used to value the
benefits. The present value of the projected benefits is calculated using the provisions of
the plan and the actuarial assumptions. The actuarial value of assets is based on market
value. The balance to be funded is allocated over the present value of a level annuity for the
average future service of active participants. Total plan results are determined by summing
the results calculated by aggregating participants by fire district, and in the case of Key
Largo, separately by fire personnel and EMS personnel. Expenses are shown unallocated
and are assumed to be paid directly by the County.
MOUTON &. COMPANY, INc.
ACTUARIES &. PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Actuarial Valuation as of January 1,2001
Page 17 of22
ACTUARIAL ASSUMPTIONS
EXHIBIT 5 - B
Vesting Schedule
01-Jan-200l
0
0
120
12
180
4500
Yrs Vesting
0 0%
10 100%
Actuarial Study as of:
Valuation Date Adjustment:
Completed months to participate
Maximum number of credited Service Months at program inception:
For vesting purposes:
For benefit accrual purposes:
Annual Benefit Accrued for each completed year of service
Maximum Annual Benefit Accrued for each completed year of service
Termination Assumption: Godwin's Table 1, V Select & Ultimate Table, with 50% termination prob. for YOS<I.
97.29348
i: 5.00%
v: 0.95238
d: 0.04762
a(lO)due: 8.10779
i(l2): 0.407%
v(l2): 0.99595
d(l2): 0.00405
a(l20)due: 95.19132
3,000 370.01
36,485
1,459
1996
6
Interest rate function assumptions
Maximum annual benefit accrual limited by IRC
Present value of maximum benefit:
Present value of annual benefit accrual
Year First Allowed for Benefit Accrual Purposes:
Maximum Credited Years for Benefit Accrual as of the Valuation Date:
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1,2001 Page 18 of22
PENSION COST RATIONALE
EXHIBIT 6
When one speaks of pension costs, one must distinguish between "true" costs and "actuarial" costs.
The true cost of a pension plan depends on its experience and is equal to:
Total Benefits Paid
+
Total Expense to Run the Plan
Investment Earnings
Because this true cost is not apparent until many years into the future, and then only in retrospect,
the actuary scientifically estimates what the true cost will be and then assesses a share against the
current year's operations.
In order to estimate the true cost elements, the actuary must try to predict the future happenings
which will affect them -- such as death, employee turnover, expenses, investment earnings, etc.
The assessment to each current year is made using a particular "cost method", selected by the
actuary considering tax implications to the Employer, future cost versus future earnings patterns,
present and projected makeup of employee force, etc. Based on these considerations, the actuarial
costs are found to be as shown in this report.
It is important to remember that these annual costs are estimates of the actuary, which, if his
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.
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
Page 19 of22
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January I, 2001
EXHIBIT 7
GASB 25 Notes to the Financial Statements
--------------------------------------------------------------------...-----------------------------------------------------------------------------
a. (I)
The above PERS administrator is a single-employer with only one contributing county
employer and no nonemployer and no contributors.
Only Volunteer Firefighters and EMS Volunteers are eligible at the sole discretion of the
Plan Administrator. Any Volunteer who was age 60 or older on January I, 1999 shall not be eligible
to participate. In addition, any Volunteers who are age 60 or older at the time they commence
volunteer service, or who commence service at a time that will not permit them to earn ten
Years if Service by their Normal Retirement Age shall not be eligible to participate in this Plan.
(2)
Inactive Participants by category:
Retirees currently receiving benefits
Beneficiaries currently receiving benefits
Terminated employees entitled to benefits
o
o
o
o
Fully vested and past normal retirement date
Partially vested
Non-vested
47
o
118
165
Years of
Service
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
The benefit provisions are as follows:
Benefit Schedule
Monthly
Benefit
$375
360
345
330
315
300
285
270
255
240
225
210
195
180
165
150
Annual
Benefit
$4,500
$4,320
$4,140
$3,960
$3,780
$3,600
$3,420
$3,240
$3,060
$2,880
$2,700
$2,520
$2,340
$2,160
$1,980
$1,800
(3)
(4) V olunteer 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 V ounteers 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.
MOUTON & COMPANY, INC
ACTUARIES & PENS10!'-: ADMlN1STRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as ofJanuary 1,2001
Page 20 of22
EXIllBIT 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 Vll ofChapte 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.
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Actuarial Valuation as of January 1,2001
Page 21 of22
EXHIBIT 7
GASB 25 Notes to the Financial Statements
--------------------------------------------------------------------------------------------------------------------------------------------------
The significant actuarial assumptions used to compute the pension benefit obligation were:
Investment Yield: 5.00% 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.
MOUTON & COMPANY, INc.
ACTUARIES & PENSION ADMINISTRATORS
"
'""
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2001
Page 22 of22
EXHIBIT 7
GASB 25 Schedules of Funding Progress
---------------------------------------------------------------------------------------------------------------------------------------------------------
The actuarially determined normal cost as of
31-Dec-2000
$71,250
Contributions actually made by employees and employer were:
Amount
% of Annual
Payroll
County
Participants
160,684
o
na
na
As discussed in paragraph 87 of GASB-25, a schedule offunding progress is not required under the
aggregate cost method, which the plan uses.
..................................................................................................................................................................................
..................................................................................................................................................................................
Summary of Fund Progress by Plan Years
1/1/2000 1/1/1999
to to
12/31/2000 12/31/1999
Increases to funds
Employer Contribution 160,684.00 150,113.00
Employee Contribution 0.00 0.00
State Contribution 0.00 0.00
Total Contributions 160,684.00 150,113.00
Investment Income 2,750.86 0.00
Other Income 0.00 0.00
Total Increases 163,434.86 150,113.00
Decreases to Funds
Benefit payments
Admin expenses
Total Decreases
0.00
0.00
0.00
0.00
0.00
0.00
Net Increase/Decrease
163,434.86
150,113.00
MOUTON & COMPANY,INC.
ACTUARIES & PENSION ADMINISTRATORS