Item C33
. .
MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: September 18.2002 Division: Public Safety
Bulk Item: Yes X No - Department: Public Safety
AGENDA ITEM WORDING: Acceptance of the Monroe County Length of Service Award Program
(LOSAP) actuarial valuation report for the Plan Year 2002
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 ofa 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
COUNTYIDISTRlCT CONTRIBUTION 2002: $89.437.00 BUDGETED: Yes X No -
REVENUE PRODUCING: Yes No - N/A
-
APPROVED BY: County Attorney N/A
DIVISION DIRECTOR APPROVAL:
DOCUMENTATION: Included: X To Follow: _ Not Required: _
DISPOSITION: Agenda Item #: dE
~M
~ OUTON
~ &COMP~ INC. July 24, 2002
ACruARIES AND PENSION ADMINISTRATORS ' .... \
. 1{~/~~:
-------
Monroe County Board of County Commissioners
c/o Mr. James R. "Reggie" Paros, Director
Public Safety Division
490 63rd Street, Suite 140
Marathon,FL 33050
Subject: Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
January 1, 2002 Actuarial Valuation
Dear Mr. Paros:
Enclosed is the draft of the actuarial valuation for the Monroe County LOSAP plan.
Once the draft has been accepted by the board, we will provide a final report to the County
and forward a copy to the State for approval.
Should you have any questions regarding the enclosed draft, please give me a call.
Sincerely,
f7~~
Nanette Mouton
Executive Vice President
NSM/s
Enclosure
Lakeview Professional Village. 516 Lakeview Road - Villa 6 . Clearwater, FL 33756 . (727) 441-1526 . Fax (727) 441-3564
[Q)WJ~~l
MONROE COUNTY
FLORIDA VOLUNTEER FIREFIGHTER
AND EMERGENCY MEDICAL SERVICES
LENGTH OF SERVICE AWARD PLAN
ACTUARIAL REPORT
JANUARY 1,2002
[Q)fRl~fFl
June 30, 2002
Monroe County Board of County Commissioners
c/o Mr. James R. "Reggie" Paros, Director
Public Safety Division
490 63rd Street, Suite 140
Marathon,FL 33050
Dear Plan Administrator:
Weare pleased to present the attached Report as of January 1, 2002, covering the actuarial
aspects of the "Monroe County LOSAP" for the Plan Year ending December 31, 2002 and the
County's fiscal year ending September 30, 2003.
A brief overview of the results can be obtained by looking at the following figures for the
past three years:
2000 2001 2002
Item Pl:m y p.~r Pl:m Yp.~r Pl~n Ye~r
Participants 239 165 192
Covered Payroll $ na $na $na
Fiscal Funding Cost $165,684 $71,250 $94,437
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. Mouton, FSA
Consulting Actuary
GFM/nm
Enclosures
[Q)fRl~fFr
June 30, 2002
ACTTTARTAT. REPORT
PLAN: Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services A ward Plan
PLAN YEAR: January 1, 2002 through December 31,2002
SPONSOR FISCAL YEAR: October I, 2002 through September 30, 2003
VALUATION DATE: January I, 2002
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 vn, 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 #02-2773
On Behalf of Mouton & Company, Inc.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as ofJanuary 1, 2002
TABLE OF CONTENTS
EXHIBIT 1 VALUATION RESULTS
Schedule A - Plan Description - After Changes I
Schedule A - Plan Description - Before Changes 2
Schedule B - Development of Current Year's Costs 3
Schedule C - Development of Historical and Projected FSA 4
Schedule D - Participant Data 5
Schedule E - Assets 5
Schedule F - Liabilities 5
Schedule G - Actuarial Present Value of Accrued Benefits 6
Schedule H - Statement of Changes in Total Actuarial
Present Value of All Accrued Benefits 6
Schedule I - Pension Cost 7
Schedule J - Past Contributions 7
Schedule K - Comparison of Actual to Assumed Earnings 8
EXHIBIT 2 P ARTICIP ANT DEMOGRAPHICS
Schedule A - Coverage 9
Schedule B - Participant Reconciliation 10
EXHIBIT 3 PLAN ASSET INFORMATION
Schedule A - Statement of Net Assets Available
for Benefits at Market Values 11
Schedule B - Statement of Changes in Net Assets
Available for Benefits 12
EXHIBIT 4 PLAN SUMMARY 13
- EXHIBIT 5 COST METHOD AND ASSUMPTIONS 16
EXHIBIT 6 PENSION COST RATIONALE 18
EXHIBIT 7 GASB 25 INFORMATION 19
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 1 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2002 CURRENT VALUATION RESULTS EXHIBIT 1
Plan Description Schedule A
----.....-------...---------..-..-..-------------- ---------
Actuarial Study as of: 01-Jan-02 Value
-
Completed months to participate 0
Years of Credited Service Required to be Fully Vested: 10
Maximum number of credited Service Months at program inception:
For vesting purposes: 120
For benefit accrual purposes: 12
First Year for which Retroactive Benefit Accrual Service Is Granted: 1995
Annual Benefit Accrued for each completed year of service 180
Maximum Annual Benefit: 4,500
Present Value of Annual Bft Earned: 1,459
Present value of maximum benefit: 36,485
Interest Adjustment to Move Normal Costs to End of Valuation Year: 1.04986
Recap of Results: After Change Interest Rate: 5.00%
...------
Present Aggregate Average
Parti- Pani- Present Allocated Value of Future Future Current
cipants cipants Value of Actuarial Future Service Service Normal
District Reported Valued Benefits Assets Nonnal Costs Annuity Annuity Cost EOY
Big Coppitt 63 27 53,530 42,264 11,266 139.912 5.182 2,282
Big Pine 48 25 97,644 34,788 62,856 140.068 5.603 11,778
Conch Key 28 9 50,397 30,307 20,090 52.453 5.828 3,619
Ke~ Largo Fire 64 37 200,474 71,955 128,519 250.154 6.761 19,957
Key Largo EMS 53 26 137,111 66,167 70,944 168,624 6.486 11,483
Layton 31 18 110,468 42,528 67,940 105.152 5.842 12,209
SugarloafKey 48 24 104,244 42,561 61,683 127.586 5.316 12,182
Tavernier 45 23 166,867 58,839 108,028 163.776 7.121 15,927
- - ----- ---- - ---- ---
Monroe County 380 189 920,735 389,409 531,326 1147,725 6,073 89,437
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,
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 2 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2002 CURRENT V ALUA TION RESULTS EXHIBIT I
Plan Description Schedule A
...----...-----------------..-..-......----....------......--------------..-
Actuarial Study as of: 01-Jan-02 Value
-
Completed months to participate 0
Years of Credited Service Required to be Fully Vested: 10
Maximum number of credited Service Months at program inception:
For vesting purposes: 120
For benefit accrual purposes: 12
First Year for which Retroactive Benefit Accrual Service Is Granted: 1996
Annual Benefit Accrued for each completed year of service 180
Maximum Annual Benefit: 4,500
Present Value of Annual Bft Earned: 1,459
Present value of maximum benefit: 36,485
Interest Adjustment to Move Normal Costs to End of Valuation Year: 1.04986
Recap of Results: Before Change Interest Rate: 5.00%
------..
Present Aggregate Average
Parti- Parti- Present Allocated Value of Future Future Current
cipants cipan ts Value of Actuarial Future Service Service Normal
District Reported Valued Benefi ts Assets Normal Costs Annuity Annuity Cost EOY
Big Coppitt 63 27 52,407 42,264 10,143 139.912 5.182 2,055
Big Pine 48 25 94,635 34,788 59,847 140.068 5.603 11,214
Conch Key 28 9 47,261 30,307 16,954 52.453 5.828 3,054
Ke)' Largo Fire 64 37 190,230 71,955 118,275 250.154 6.761 18,366
Key Largo EMS 53 26 130,946 66,167 64,779 168.624 6.486 10,485
Layton 31 18 104,129 42,528 61,601 105.152 5.842 11,070
Sugarloaf Key 48 24 95,944 42,561 53.383 127.586 5.316 10.543
Tavernier 45 23 157,756 58,839 98,917 163.776 7.121 14,583
- - -- - --- --
Monroe County 380 189 873,308 389,409 483,899 1147.725 6,073 81,370
Note: Only Participants with 3 or morc months of service in the prior plan year or who arc vested in a benefit arc valued.
Expense cost shown on page 3.
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MONROE eoUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 3 of22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVIeE AWARD PLAN
Actuarial Valuation as of January 1,2002 eURRENT VALVA TION RESULTS EXHIBIT I
Development of eurrent Year's Costs Schedule B
------------------------------------------------------------------------------------------------------------------------------------------------------------
Before Change After Change.
Current Year Current Year Prior Year
01-Jan-2002 01-Jan-2002 01-Jan-2001
A. Present Value of Future Obligations:
l. Active Members 873,308 920,735 701,395
2. Retired Members 0 0 0
3. Survivors on Benefit 0 0 0
4. Disabled Members 0 0 0
--------------- --------------- -------------
Total Actuarial Accrued Liability: 873,308 920,735 701,395
B. Less Present Value of:
I. Member Contributions 0 0 0
2. Florida Premium Tax Rebates 0 0 0
--------------- ------------- -------------
0 0 0
C. Less Actuarial Plan Assets 389,408 389,408 313,548
--------- ------------- ..----------
D. Amount to be Funded by County (A-B-C) 483,900 531,327 387,847
(Unfunded Actuarial Accrued Liability)
E. Aggregate Normal Costs from District Calculations 81,370 89,437 66,250
F. Expenses not paid directly by the County 5,000 5,000 5,000
G. Interest Adjustments not included elsewhere 0 0 0
--------------- ------------- -----------
H. Total Plan Normal eosts = GASB 25 ARC 86,370 94,437 71,250
· ehange is the crediting of 1995 as an additional year of potential past credited service.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 4 of 22
EMERGENey MEDIeAL SERVIeES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2002 eURRENT V ALUA nON RESULTS EXHIBIT I
Development of Historical and Projected Funding Standard Account Balances Schedule e
----------------------------------------------------------------------------------------------------------------------------------------------.
Before ehanges After ehanges
Projected Projected
Current Current
Plan Year Plan Year Prior Year
01-Jan-2002 01-Jan-2002 o l-Jan-200 1
A. Beginning Balance -4,810 -4,810 0
Interest Adjustment to End of Year -241 -241 0
B. Less Charges to Account
1. Normal Costs for the Year (BOY) 81,370 89,437 66,250
2. Provision for Expenses 5,000 5,000 5,000
2. Amortization eharges (net) (BOY) 0 0 0
3. Interest Adjustment to End of Year 5.00% 0 0 0
-------- ------ ------
86,370 94,437 71 ,250
e. Plus eredits to Account
1. eontnbutions eredited During the Year 0 0 66,250
2. Amortization eharges (net) (BOY) 0 0 0
3. Interest Adjustment to End of Year 0 0 190
-------- ------- -------
0 0 66,440
-------- ------- ----
D. Ending Balance'" -91,421 -99,488 -4,810
Date Made Amount Interest
~ ..... .....
Il-Dec-Ol 66,250 190
0 0
0 0
0
----------- ---------
66,250 190
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND PageS of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of lanuary 1,2002 CURRENT V ALVA TION RESULTS EXHffiIT I
Participant Data Schedule D
------.....---------...---------...--------..------------------------------------.......----...----...---------...-------------........----.....------..-----
Next
Current Year Prior Year Prior Year
01-lan-2002 01 -lan-200 I 01-lan-2000
Number Included
Active Members 189 165 239
Retired Members 0 0 0
Current Beneficiaries 0 0 0
Disabled Members 0 0 0
Total Annual Payroll of Actives 0 0 0
Total Annual Benefits:
to Retired Members 0 0 0
to Current Beneficiaries 0 0 0
to Disabled Members 0 0 0
Assets Schedule E
-----------------------------------------------..-.....--....----------------------------------------...-------...-...---------------
Actuarial Value 389,408 3 I 3,548 150,113
Market Value 389,408 313,548 150,113
Liabilities Schedule F
--...-...---------......------------------------------...-----...------------...---------................-------------...--------...---------------------
Before Changes After Changes
Current Current Prior
Plan Year Plan Year Plan Year
01 -lan-2002 01-lan-2002 o l-lan-200 I
Present Value of Benefits
Active Members 873,308 920,735 701,395
Retired Members 0 0 0
Current Beneficiaries 0 0 0
Disabled Members 0 0 0
-----------...--- -----...-------- ...-------------
Total 873,308 920,735 701,395
Less Present Value
Future Member Contributions 0 0 0
Future State Contributions 0 0 0
...----.._-------- ..--..--..-------- --------------
0 0 0
--------------- --------..-..-- ---------------
Actuarial Accrued Liability 873,308 920,735 701,395
less Actuarial Plan Assets (389,408) (389,408) (3 I 3,548)
..-------------- --------------- ....-------------
Unfunded Actuarial Accrued Liability 483,900 531,327 387,847
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MONROE eoUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 6 of 22
EMERGENey MEDIeAL SERVIeES LENGTH OF SERVleE AWARD PLAN
Actuarial Valuation as of January 1,2002 eURRENT VALUATION RESULTS EXHIBIT 1
Actuarial Present Value of Accrued Benefits Schedule G
------------------------------------------------------------------------------------------------------------.----------------------------
Before ehanges After ehanges
eurrent Year eurrent Year Prior Year
01-Jan-2002 01-Jan-2002 01-Jan-2001
Vested Accrued Benefits ~
Inactive Members & Beneficiaries 0 0 0
Active Members 289,767 334,041 143,959
-------------- -------------- --------------
Total 289,767 334,041 143,959
Nonvested Accrued Benefits 583,541 586,694 557,436
------------- -------------- .-------------
Total 873,308 920,735 701,395
Statement ofehanges in Total Actuarial Present Value
of All Accrued Benefits Schedule H
---------------------------------------------------------------------------------------------------------------------------
Before ehanges After ehanges
eurrent Year eurrent Year Prior Year
01-Jan-2002 01-Jan-2002 01-Jan-2001
Present Value of Accrued Benefits at
Beginning of Year 701,395 701,395 1,142,823
Increase (Decrease) During Year Attributable
to (where applicable):
Plan Adoption 0 0 0
Plan Amendment 0 0 0
ehanges in Valuation 0 0 0
Increase due to Survivorship 0 0 0
Increase for less Interest Discount 0 0 0
Benefits Accrued, net of excluded participants 171,913 219,340 (441,428)
Benefits Paid 0 0 0
Other ehanges - pay/benefit/deaths 0 0 0
------------- ------------ -------------
Net Increase (Decrease) 171,913 219,340 (441,428)
Actuarial Present Value of Accrued
Benefits at End of Year 873,308 920,735 701,395
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MONROE eOUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 7 of 22
EMERGENey MEDICAL SERVleES LENGTH OF SERVIeE AWARD PLAN
Actuarial Valuation as of January 1,2002 eURRENT VALUATION RESULTS EXHffilT 1
Pension eost Schedule I
-----------------------------------------------------------------------------------------------------------------------------..-------------------
Before Changes After Changes
Current eurrent Prior
Plan Year Plan Year Plan Year
o I-Jan-2002 01-Jan-2002 01-Jan-2001
Required Funding Costs 81,370 89,437 66,250
Administrative Expense 5,000 5,000 5,000
Interest Adjustment 0 0 0
----------- ----------- -----------
Total Required eounty eontribution 86,370 94,437 71,250
As % of Payroll N/A N/A N/A
Estimated Participant eontributions 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 eontributed
by County 86,370 94,437 71,250
As % of Payroll N/A N/A N/A
Past Contributions Schedule J
--------------------------------------------------------------------------------------------------------------------------------------..-..-------..
For the fiscal year ended 12/31/01
Total Contribution Required 94,437
Actual Contribution Made By:
State 0
County 66,250
Participants 0
-----------
66,250
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 8 of 22
EMERGENey MEDIeAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2002 CURRENT V ALUA nON RESUL TS EXHIBIT I
eomparison of Actual to Assumed Earnings Schedule K
-----------------------------------------------------------------------------------------------------------------------------------------------------------.
(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
3l-Dec-1999 0 150,113 0 0 0
31-Dec-2000 150,113 313,548 2,751 0 0
3l-Dec-2001 313,548 389,408 13,821 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%
31-Dec-200l 13,821 15,677 4.41% na na 5.00%
1999 is the first plan year and no assets were present prior to the end of the year, other than eounty accrued contributions.
eurrent 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.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 9 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January I, 2002 P ARTICIP ANT DEMOGRAPHICS EXHIBIT 2
Coverage Schedule A
-----------------------------------------------------------------------------------------------------------------------------------------
This valuation includes the following 192 persons covered by the plan as of December 31, 2001.
Category Number Amount
~
Active Participants 189 o *
Other Inactive Participants 0 0**
Retirees on Benefit 0 0**
Survivors on Benefit 0 0**
Participants on Disability Benefit 0 0**
Tenninated Vested Participants 0 o **
---- -----------
TOTAL 189 N/A
* Annual covered pay only
** Annual Benefit
188 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 31,2001.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 10 of22
EMERGENey MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2002 P ARTICIP ANT DEMOGRAPHICS EXHIBIT 2
Participant Reconciliation Schedule B
---------------------------------------------...-------------------------------------------------------------------------------------
Retired Survivor With
on on Vested
Active Benefit Benefit Disabled Benefit Total
-
Participants at 01-Jan-2001 165 0 0 0 0 165
New 24 ~ 24
Retirement 0 0
Death 0 0
Non-Vested Termination 0 0
Vested Termination 0 0
Lump Sum Settlement 0 0
New Survivors 0 0
------ ------ ------ ------- ------- ---
Participants at 31-Dec-2001 189 0 0 0 0 189
- - - - - -
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD P Page II of22
Actuarial Valuation as of January 1, 2002
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Net Assets Available for Benefits* Schedule A
31-Dec-2000 31-Dec-2001
-----------------------------------------------------------------------------------------------------------------------------
Market Value
~
Money Market 0.00 389,408.43
Accrued Contribution - Employer 313,547.86 0.00
---------------- ----------------
313,547.86 389,408.43
---------------- ----------------
Liabilities
~ ~ ~
Accounts Payable 0.00 0.00
Deferred Revenues 0.00 0.00
---------------- ----------------
0.00 0.00
---------------- ----------------
Net Assets Available 313,547.86 389,408.43
* As reported by the County
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MONROE eOUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 12 of22
Actuarial Valuation as ofJanuary 1,2002
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Changes in Market Value of Net Assets Schedule B
Plan Year Ending: 31-Dec-2000 31-Dec-200 1
---------------------------------------------------------------------------------------------------------------------------------------------
+
INCREASES I
Earnings on Investments 2,750.86 I 13,820.69
Unrealized Appreciation (Depreciation) 0.00 I 0.00
I
State Insurance Contributions 0.00 I 0.00
Employee Contributions 0.00 I 0.00
Employer Contributions: 160,684.00 I 66,250.00
I
Accrued 0.00 I 0.00
---------------- I -----------------
I
I
160,684.00 I 66,250.00
---------------- I -..-----------
163,434.86 I 80,070.69
----------------- I -------------
DECREASES I
Expenses I
Professional Fees 0.00 I (4,210.12)
Other expenses 0.00 I 0.00
-------------- I -----------------
0.00 I (4,210.12)
Paid to Participants I
Retirees 0.00 I 0.00
Survivors 0.00 I 0.00
Disabled 0.00 I 0.00
Overpayment due to City 0.00 I 0.00
---------------- I ---------------
0.00 I 0.00
---------------- I -------------
0.00 I (4,210.12)
----------------- I ---------------
Net Increase/(Decrease) 163,434.86 I 75,860.57
I
NET MARKET VALUE OF ASSETS A V AILABLE FOR BENEFITS: I
I
Beginning of Year 150,113.00 I 313,547.86
----------------- I --------------
End of Year 313,547.86 I 389,408.43
I
I
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January I, 2002 Page 13 of22
PLAN SUMlvfAR.Y EXHIBIT 4
1. (Tenerlll Tnform::ltion
(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. F1i~hi1ity for P::l11;~ip::ltion
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 I, 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. rontrihntiom:
Each Plan Year, the Board shall appropriate funds from the budgets of the various volunteer
fire/rescue MSTU's to fund the accrued or prospective benefits for Participants on an
actuarially sound basis.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2002 Page 14 of22
PLAN SU1vllvIARY EXHIBIT 4
4. N01Tl1:l1 R~tiTP.T11~t R~n~fit
(a) Eligibility: Completion of 10 years of service.
(b) Benefit: An annual benefit based on the following schedule:
R~n~fit S~h~(h]l~
Years of Monthly Annual
Servi~~ R~efit R~nefit
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.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of J arlUary I, 2002 Page 15 of22
PLAN SUMMARY EXHIBIT 4
7. V e~tine
(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 Vehide 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. DeMh Renefit~ prior to Att::!inine Norm::!l Retirement Aee
(a) Eligibility: Death of a vested Participant.
(b) Benefit: The present value of vested accrued benefits.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1,2002 Page 16 of22
COST METHOD EXHIBIT 5-A
(X)ST MFTHOD: 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.
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MONROE eoUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENey MEDIeAL SERVIeES LENGTH OF SERVIeE AWARD PLAN Page 17 of22
Actuarial Valuation as of January 1,2002
AeTUARIAL ASSUMPTIONS EXHIBIT 5 - B
Actuarial Study as of: 01-Jan-2002
Valuation Date Adjustment: 0
eompleted 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, with 50% termination prob. for YOS<1.
Interest rate function assumptions 1: 5.00%
v: 0.95238
d: 0.04762
97.29348 a(lO)due: 8.10779
i(12): 0.407%
v(12): 0.99595
d(12): 0.00405
a(120)due: 95.19132
Maximum annual benefit accruallimited by IRe 3,000 370.01
Present value of maximum benefit: 36,485
Present value of annual benefit accrual 1,459
Year First Allowed for Benefit Accrual Purposes: 1995
Maximum eredited Years for Benefit Accrual as of the Valuation Date: 8
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January I, 2002 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.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 19 of22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January I, 2002 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,
(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 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.
Inactive Participants by category:
Retirees currently receiving benefits 0
Beneficiaries currently receiving benefits 0
Terminated employees entitled to benefits 0
---
0
-
Fully vested and past normal retirement date 60
Partially vested 0
Non-vested 129
---
189
(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
IS 225 $2,700
14 210 $2,520
13 195 $2,340
12 180 $2,160
11 165 $1,980
10 ISO $1,800
(4) Volunteer Firefighters must attain the rank of Structural Firefighter, Non-Structural Firefighter and
or Emergency Vehicle Driver-Perator prior to being credited with ten Years of Service,
EMS Vounteers must meet all requirements as defined by the State of Florida necessary to drive
an emergency medical care and transporation vehicle (ambulance) and/or attain certification as an
Emergency Medical Technician or Paramedic prior to being credited with ten Years of Service.
Eligibility for vesting is completion of 10 years of service,
The Plan shall be administered in accordance with the requirements of Chapter 112, Part VII,
Florida Statutes.
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MONROE eOUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 20 of 22
EMERGENey MEDIeAL SERVIeES LENGTH OF SERVIeE AWARD PLAN
Actuarial Valuation as of January 1, 2002 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 ofehapte 112, Florida Statutes.
There are no Participant contribution requirements.
The authority under which those obligations are established is the Monroe eounty 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.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 21 of22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as ofJanuary 1,2002 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<I.
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.
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MONROE eOUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 22 of 22
EMERGENey MEDIeAL SERVIeES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2002 EXHIBIT 7
-------------------------------------------
GASB 25 Schedules of Funding Progress
------------------------------------------------------------------------------------------------------------------------------------------
The actuarially determined normal cost as of 31-Dec-2001 $94,437
% of Annual
Contributions actually made by employees and employer were: Amount Payroll
eounty 66,250 na
Participants 0 na
As discussed in paragraph 87 of GASB-25, a schedule of funding progress is not required under the
aggregate cost method, which the plan uses.
........................................................................................................................................................................
........................................................................................................................................................................
Summary of Fund Progress by Plan Years
---------------------------------------------------------------------------------------------------
1/1/2001 1/1/2000 1/1/1999
to to to
12/31/2001 12/31/2000 12/31/1999
Increases to funds
Employer eontribution 66,250.00 160,684.00 150,113.00
Employee Contribution 0.00 0.00 0.00
State eontribution 0.00 0.00 0.00
Total eontributions 66,250.00 160,684.00 150,113.00
Investment Income 13,820.69 2,750.86 0.00
Other Income 0.00 0.00 0.00
Total Increases 80,070.69 163,434.86 150,113.00
Decreases to Funds
Benefit payments 0.00 0.00 0.00
Admin expenses (4,210.12) 0.00 0.00
Total Decreases (4,210.12) 0.00 0.00
Net Increase/Decrease 75,860.57 163,434.86 150,113.00