Item E11. _... ... ,..:..x .,.. •:ate+...
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: November 19.2003 Division: County Administrator
Bulk Item: Yes X No
Department: Fire Rescue
AGENDA ITEM WORDING: Acceptance of the Monroe County Length of Service Award
Program (LOSAP) actuarial valuation report for the Plan Year 2003.
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 REVELANT 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 valuation report.
TOTAL COST:
COUNTY/DISTRICT CONTRIBUTION 2003: $68,840.00 BUDGETED: Yes X No
SOURCE OF FUNDS: Ad valorem taxes.
REVENUE PRODUCING: Yes No N/A
APPROVED BY: County Attorney N/A
FIRE CHIEF APPROVAL:
�lar�in
DIVISION DIRECTOR APPROVAL:
James L. Roberts
DOCUMENTATION: Included X To Follow.
DISPOSITION•
Revised 1 /03
Management N/A
Not Required.
AGENDA ITEM #/
MOUTON
&COMPANY, INC.
ACTUARIES AND PENSION ADMINISTRATORS
MONROE COUNTY
FLORIDA VOLUNTEER FIREFIGHTER
AND EMERGENCY MEDICAL SERVICES
LENGTH OF SERVICE AWARD PLAN
ACTUARIAL REPORT
JANUARY 1, 2003
Lakeview Professional Village • 516 Lakeview Road - Villa 6 • Clearwater, FL 33756 • (727) 441-1526 • Fax (727) 441-3564
MOUTON
&COMPANYINC.
ACTUARIES AND PENSION ADMINISTRATORS
October 7, 2003
Monroe County Board of County Commissioners
c/o Chief Clark Martin
490 63rd Street
Marathon, FL 33050
Dear Plan Administrator:
We are pleased to present the attached Report as of January 1, 2003, covering the actuarial
aspects of the "Monroe County LOSAP" for the Plan Year ending December 31, 2003 and the
County's fiscal year ending September 30, 2004.
A brief overview of the results can be obtained by looking at the following figures for the
past three years:
2001 2002 2003
jam Plan Year Plan Year Plan Year
Participants 165 192 193
Covered Payroll $ na $ na $na
Total Plan Normal Funding * $71,250 $94,437 $73,480
Florida Required Funding ** $71,250 $99,488 $84,381
* assuming an additional years past service benefit
** includes provisions for expenses and provisions for Funding Standard Account debit
balances
There was a decrease in active participation by the cities, which resulted in a drop in the
funding costs.
Additionally, the actual 3-year average of 1.28%, as shown on page 8 of the valuation
report, is below the current interest assumption of 5.0%. In large part, this seems to be a result of
the plan's investment in, what appears to us to be, a money market equivalent. The plan can, and
probably should, consider longer horizon investments, since the plan's obligations are not short
term. Should the plan's asset performance continue to be less than our assumed rate, we will need
to consider revising this assumption for the next actuarial valuation.
Lakeview Professional Village • 516 Lakeview Road - Villa 6 • Clearwater, FL 33756 • (727) 441-1526 • Fax (727) 441-3564
_ MOUTON
M &COMPANY, INC.
ACTUARIES AND PENSION ADMINISTRATORS
Monroe County Board of County Commissioners
October 7, 2003
Page Two
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,
/X"' ���
Glenn F. Mouton, FSA
Consulting Actuary
GFM/nm
Enclosures
s
Lakeview Professional Village • 516 Lakeview Road - Villa 6 • Clearwater, FL 33756 • (727) 441-1526 • Fax (727) 441-3564
MOUTON
&COMPANYINC.
.ACTUARIES .AND PENSION ADMINISTRATORS
October 7, 2003
PLAN: Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
PLAN YEAR: January 1, 2003 through December 31, 2003
SPONSOR FISCAL YEAR: October 1, 2003 through September 30, 2004
VALUATION DATE: January 1, 2003
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.
/ 7-0o3
Date Glenn F. Mouton
Enrollment #02-2773
On Behalf of Mouton & Company, Inc.
Lakeview Professional Village - 516 Lakeview Road - Villa 6 - Clearwater, FL 33756 - (727) 441-1526 - Fax (727) 441-3564
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2003
TABLE OF CONTENTS
EXHIBIT 1 VALUATION RESULTS
Schedule A — Plan Description — After Changes
Schedule A — Plan Description — Before Changes
Schedule B - Development of Current Year's Costs
Schedule C — Development of Historical and Projected FSA
Schedule D - Participant Data
Schedule E - Assets
Schedule F - Liabilities
Schedule G - Actuarial Present Value of Accrued Benefits
Schedule H - Statement of Changes in Total Actuarial
Present Value of All Accrued Benefits
Schedule I - Pension Cost
Schedule J - Past Contributions
Schedule K - Comparison of Actual to Assumed Earnings
EXHIBIT 2 PARTICIPANT DEMOGRAPHICS
Schedule A - Coverage
Schedule B - Participant Reconciliation
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
EXHIBIT 4 PLAN SUMMARY
EXHIBIT 5 COST METHOD AND ASSUMPTIONS
EXHIBIT 6 PENSION COST RATIONALE
EXHIBIT 7 GASB 25 INFORMATION
1
2
3
4
5
5
5
6
6
7
7
8
9
10
11
12
13
16
18
19
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, 2003
CURRENT VALUATION RESULTS
Page I of 22
EXHIBIT 1
Schedule A
Plan Description
Actuarial Study as of: 01-Jan-03
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:
1994
Annual Benefit Accrued for each completed year of service
180
Maximum Annual Benefit:
4,500
Present Value of Annual Bft Earned @ NRA:
1,459
Present value of maximum benefit @ NRA:
36,485
Interest Adjustment to Move Normal Costs to End of Valuation Year.
1.04986
Recap of Results: After Change
Interest Rate:
5.00%
Parti- Patti--- -- Present-- --Present
Present
Aggregate
Average
Parti- cipants cipants Value of
Value of
Allocated
Value of
Future
Future
Current
cipants Valued Valued Benefits
Benefits
Actuarial
Future
Service
Service
Normal
District Reported Active Inactive Active
Inactive
Assets
Normal Costs
Annuity
Annuity
Cost EOY
Big Coppitt 31 27 1 58,845
2,680
44,797
16,728
151.251
5.402
3,251
Big Pine 30 25 2 111,494
7.939
45,842
73.591
172.482
6.388
12,095
Conch Key 0 0 6 0
29,218
33,919
(4,701)
37.544
6.257
-789
Key Largo Fire 48 35 8 171,541
22,819
90,829
103,531
285.476
6.639
16,372
Key Largo EtvlS 35 26 6 142,056
18,429
77,299
83,186
205.856
6.433
13,576
Layton 19 10 5 70.176
12.020
54,058
28,138
76.886
5.126
5.763
Sugarloaf Key 30 14 5 62,095
25,650
54,067
33,678
111.095
5.847
6,047
Tavernier 24 20 3 143,278
12,539
73,917
81,900
157.899
6.865
12,525
- - ----------- ------------
Monroe County 217 157 36 759,485
131.294
-------
474,728
416,051
1198.489
6.210
68,840
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
Actuarial Valuation as of January 1, 2002
CURRENT VALUATION RESULTS
—
Page 2 of 22
EXHIBIT 1
Schedule A
Plan Description
Actuarial Study as of: �u 01-Jan-03
Value
0
Completed months to participate
Years of Credited Service Required to be Fully Vested:
10
Maximum number of credited Service Months at program inception:
120
For vesting purposes:
12
For benefit accrual purposes:
First Year for which Retroactive Benefit Accrual Service Is Granted:
1995
Annual Benefit Accrued for each completed year of service
180
4,500
Maximum Annual Benefit:
Present Value of Annual Bft Earned @ NRA:
1,459
Present value of maximum benefit @ NRA:
36,485
Interest Adjustment to Move Normal Costs to End of Valuation Year:
1.04986
Recap of Results: Before Change
Interest Rate:
5.00%
Parti- Patti-'— PresentM
Present
Present
Aggregate
Average
Parti- cipants cipants Value of
Value of
Allocated
Value of
Future
Future
Current
cipants Valued Valued Benefits
Benefits
Actuarial
Future
Service
Service
Normal
District Reported Active Inactive Active
Inactive
Assets
Normal Costs
Annuity
Annuity
Cost EOY
Big Coppitt 31 27 1 57,426
2,146
44,797
14,775
151.251
5.402
2,871
Big Pine 30 25 2 109,689
6,532
45,842
70,379
172.482
6.388
11,567
Conch Key 0 0 6 0
23,825
33,919
(10,094)
37.544
6.257
-1,694
Key Largo Fire 48 35 8 166,017
17,890
90.829
93,078
285.476
6.639
14,719
Key Largo EMS 35 26 6 137,877
14,705
77,299
75,283
205.856
6.433
12,286
Layton 19 10 5 65,752
9,843
54,058
21,537
76.886
5.126
4,411
Sugarloaf Key 30 14 5 59,312
20,804
54,067
26,049
111.095
5.847
4,677
Tavernier 24 20 3 136,640
10.230
73,917
72,953
157.899
6.865
11,157
Monroe County 217 157 36 732,713
—105,975
474,728
363.960
1198.489
6.210
59,994
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 Page 3 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2003 CURRENT VALUATION RESULTS EXHIBIT 1
Development of Current Year's Costs
A. Present Value of Future Obligations:
1. Active Members
2. Inactive Members
3. Retired Members
4. Survivors on Benefit
5. Disabled Members
Total Actuarial Accrued Liability:
B. Less Present Value of:
1. 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. Y. Interest Adjustments not included elsewhere
H. Total Plan Normal Costs = GASB 25 ARC
Schedule B 1
Before Change After Change *
Current Year Current Year Prior Year
01-Jan-2003 01-Jan-2003 01-Jan-2002
732,713 759,485 920,735
105,975 131,294
0 0 0
0 0 0
0 0 0
838,688 890,779 920,735
0 0 0
0 0 0
---------------------------------------------
0 0 0
474,729 474,729 389,408
363,959 416,050 531,327
59,994 68,840 89,437
5,000 5,000 5,000
0 0 0
64,994 73,840 94,437
* Change is the crediting of 1994 as an additional year of potential past credited service.
MOUTON S COMPANY, INC
9
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 4 of 22 1
Actuarial Valuation as of January 1, 2003 CURRENT VALUATION RESULTS EXHIBIT 1 I
Development of Historical and Projected Funding Standard Account Balances
A. Beginning Balance
Interest Adjustment to End of Year
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*
5.00%
Before Changes
Projected
Current
Plan Year
01-Jan-2003
-10,039
-502
Date Made Amount Interest
31-Dec-02 89,437 12
0 0
0 0
0
--------------------
89,437 12
59,994
5,000
0
0
64,994
0
0
0
0
-75,535
After Changes
Projected
Current
Plan Year
01-Jan-2003
-10,039
-502
68,840
5,000
0
0
73,840
0
0
0
0
-84,381
Schedule C i
Prior Year
01-Jan-2002
-4,810
-241
89,437
5,000
0
0
94,437
89,437
0
12
89,449
—-10,039 1
MOUTON & COMPANY, INC.
J
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
Page 5 of 22
EMERGENCY MEDICAL SERVICES LENGTH
OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2003
CURRENT VALUATION RESULTS
EXHIBIT 1
Participant Data
Schedule D
----------------------------------------------------------------------------------------------------------------------------------------------
Next
Current Year
Prior Year
Prior Year
01-Jan-2003
01-Jan-2002
01-Jan-2001
Number Included
Active Members
157
189
165
Inactive Members
36
incl above
incl above
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
474,729
389,408
313,548
Market Value
474,729
389,408
313,548
Liabilities
----------------------------------------------------------------------------------------------------------------------------------------------
Schedule F
Before Changes
After Changes
Current
Current
Prior
Plan Year
Plan Year
Plan Year
01-Jan-2003
01-Jan-2003
01-Jan-2002
Present Value of Benefits
—Active Members
732,713
759,485
920,735
Inactive Members
105,975
131,294
incl above
Retired Members
0
0
0
Current Beneficiaries
0
0
0
Disabled Members
0
0
---------------
0
---------------
Total
---------------
838,688
890,779
920,735
Less Present Value
Future Member Contributions
0
0
0
Future State Contributions
0
0
0
---------------
---------------
0
---------------
0
0
Actuarial Accrued Liability
---------------
838,688
---------------
890,779
---------------
701,395
less Actuarial Plan Assets
(474,729)
(474,729)
(389,408)
--------------
Unfunded Actuarial Accrued Liability
---------------
363,959
---------------
416,050
387,847
MOUTON & CONIPAN), INC.
ACTUARIES s PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 6 of 22
Actuarial Valuation as of January 1, 2003
CURRENT VALUATION RESULTS
EXHIBIT 1
Actuarial Present Value of Accrued Benefits
Schedule G
-------------------------------------------------------------------------------------------------------------------------------------------------
Before Changes
After Changes
Current Year
Current Year
Prior Year
01-Jan-2003
01-Jan-2003
01-Jan-2002
Vested Accrued Benefits
Inactive Members & Beneficiaries
105,975
131,294
0
Active Members
183,217
212,355
334,041
--------------
Total
--------------
289,767
--------------
343,649
143,959
Nonvested Accrued Benefits
655,471
678,424
586,694
--------------
Total
--------------
838,688
--------------
890,779
920,735
Statement of Changes in Total Actuarial Present Value
of All Accrued Benefits
Schedule H
----------------------------------------------------------------------------------------------------------------------------------------------------
Before Changes
After Changes
Current Year
Current Year
Prior Year
01-Jan-2003
01-Jan-2003
01-Jan-2002
Present Value of Accrued Benefits at
Beginning of Year
920,735
920,735
701,395
Increase (Decrease) During Year Attributable
to (where applicable):
Plan Adoption
0
0
0
Plan Amendment
0
52,091
47,427
Changes in Valuation
0
0
0
Increase due to Survivorship
0
0
0
Increase for less Interest Discount
46,037
46,037
35,070
Benefits Accrued, net of excluded participants
13,822
13,822
136,843
Benefits Paid
0
0
0
Other Changes - terminations
(141,906)
(141,906)
--------------
0
--------------
Net Increase (Decrease)
--------------
(82,047)
(29,956)
219,340
Actuarial Present Value of Accrued
Benefits at End of Year
838,688
890,779
920,735
MooTON s COMPANY, Inc
ACTUARIES S PENSION ADMINISTRATOR<
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 7 of 22
Actuarial Valuation as of January 1, 2003 —_ —CURRENT VALUATION RESULTS — EXHIBIT 1 I
Pension Cost Schedule I I
Before Changes
After Changes
Current
Current
Prior
Plan Year
Plan Year
Plan Year
01-Jan-2003
01-Jan-2003
01-Jan-2002
Required Funding Costs
59,994
68,840
89,437
Current Administrative Expense
15,039
15,039
5,000
Interest Adjustment
502
502
-----------
0
-----------
Total Required County Contribution
-----------
75,535
84,381
94,437
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
75,535
84,381
94,437
As % of Payroll
N/A
N/A
N/A
Past Confributions Schedule J I
For the fiscal year ended 12/31/02
Total Contribution Required 94,437
Actual Contribution Made By:
State 0
County 89,437
Participants 0
89,437
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 8 of 22 1
Actuarial Valuation as of January 1, 2003 CURRENT VALUATION RESULTS EXHIBIT I
Comparison of Actual to Assumed Earnings Schedule K I
(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
31-Dec-2001
313,548
389,408
13,821
0
4,210
31-Dec-2002
389,408
474,729
4,284
0
8,400
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 3.09% na na 5.00%
31-Dec-2002 (4,116) 19,260 -1.07% 1.28% 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, I
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 9 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2003 PARTICIPANT DEMOGRAPHICS EXHIBIT 2
Coverage
This valuation includes the following 193 persons covered by the plan as of December 31, 2002.
Category
Number
Amount
Active Participants
157
0
Other Inactive Participants
36
0 **
Retirees on Benefit
0
0 **
Survivors on Benefit
0
0 **
Participants on Disability Benefit
0
0 **
Terminated Vested Participants
0
0 **
TOTAL
193
N/A
* Annual covered pay only
** Annual Benefit
24 persons (included in the data furnished to us) were ineligible for participation as of the valution
date. Participant data was furnished by the County of Monore and was as of December 31, 2002.
Schedule A
MOUTON & COMPANY, INC
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
Page 10 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2003 PARTICIPANT DEMOGRAPHICS
EXHIBIT 2
Participant Reconciliation
------------------------------------------------------------------------------------------------------------
Schedule B
Retired Survivor
With
on on
Vested
Active Benefit Benefit Disabled
Benefit
Total
Participants at 01-Jan-2002 189 0 0 0
0
189
New 9
9
Retirement 0
0
Death 0
0
Non -Vested Termination -5
(5)
Vested Termination -36
36
0
Lump Sum Settlement 0
0
New Survivors 0
0
Participants at 31-Dec-2002 157 0 0 0
36
193
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADIMINLSTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD P Page 11 of 22
Actuarial Valuation as of January 1, 2003
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Net Assets Available for Benefits* Schedule A
31-Dec-2001 31-Dec-2002
Market Value
Money Market 389,408.43 474,729.02
Accrued Contribution - Employer 0.00 0.00
---------------- ----------------
389,408.43 474,729.02
Liabilities
Accounts Payable 0.00 0.00
Deferred Revenues 0.00 0.00
-------------------------------
0.00 0.00
Net Assets Available 389,408.43 474,729.02
* 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 Page 12 of 22
Actuarial Valuation as of January 1, 2003
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Changes in Market Value of Net Assets Schedule B
Plan Year Ending: 31-Dec-2001 31-Dec-2002
INCREASES
Earnings on Investments
Unrealized Appreciation (Depreciation)
State Insurance Contributions
Employee Contributions
Employer Contributions: 66,250.00
Accrued 0.00
DECREASES
Expenses
Professional Fees
Professional Fees -- 2001
Paid to Participants
Retirees
Survivors
Disabled
Overpayment due to City
13,820.69
0.00
0.00
0.00
66,250.00
-----------------
80,070.69
(4,210.12) Year 2000 Fee
0.00
0.00
0.00
0.00
0.00
(4,210.12)
0.00
-----------------
(4,210.12)
-----------------
Net Increase/(Decrease) 75,860.57
I
NET MARKET VALUE OF ASSETS AVAILABLE FOR BENEFITS:
I
Beginning of Year 313,547.86
-------------------
End of Year 389,408.43
I
89,437.00
0.00
4,283.59
0.00
0.00
0.00
89,437.00
-------------
93,720.59
(4,200.00) Year 2001 Fee
(4,200.00) Year 2002 Fee
-------------
(8,400.00)
0.00
0.00
0.00
0.00
-------------
0.00
•-------------
(8,400.00)
•-------------
85,320.59
389,408.43
-------------------
474,729.02
MOUTON & COMPANY, INC.
ACTUARIES &. PENSION .ADNIINISTRATOKR
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2003 Page 13 of 22
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
J • A • ' .. • . • •
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.
•••r• ••
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.
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADNIINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2003 Page 14 of 22
PLAN SUMMARY EXHIBIT 4
4, Nnrmal
R tir m nt R .n fit
(a)
Eligibility: Completion of 10 years of service.
(b)
Benefit: An annual benefit based on the following schedule:
Benefit Schedule
Years of Monthly
Service Benefit
Annual
Benefi
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.
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, 2003 Page 15 of 22
PLAN SUMMARY EXHIBIT 4
7. V
(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.
(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, 2003 Page 16 of 22
COST METHOD EXHIBIT 5-A
COST MF.T14OD: 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 AWARD PLAN Page 17 of 22
Actuarial Valuation as of January 1, 2003
ACTUARIAL ASSUMPTIONS EXHIBIT 5 - B
Actuarial Study as of: 01-Jan-2003
Valuation Date Adjustment: 0
Completed months to participate 0
Maximum number of credited Service Months at program inception:
20
For vesting purposes: 112
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
is
5.00%
v:
0.95238
d:
0.04762
97.29348
a(10)due:
8.10779
i(12):
0.407%
v(12):
0.99595
d(12):
0.00405
a(120)due:
95.19132
Maximum annual benefit accrual limited by IRC
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: After:
1994
Before:
1995
Maximum Credited Years for Benefit Accrual as of the Valuation Date:
10
MOUTON & COMPANY, INC.
ACTUARIES S PENSION ADMINIS IRA I,'R>
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN Page 18 of 22
Actuarial Valuation as of January 1, 2003 g
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 ADMINIS I RA I UItS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
Page 19 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2003 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
0
0
36
36
73
0
120
193
(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.
MOUTON & COMPANY, I
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
Page 20 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2003 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 Chapte 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 Page 21 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2003 EXHIBIT
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<l.
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, I
ACTUARIES & PENSION ADMIN1S 1 KA I UKJ
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 22 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN EXHIBIT 7
Actuarial Valuation as of January 1, 2003
GASB 25 Schedules of Funding Progress
The actuarially determined normal cost as of 31-Dec-2002 $73,840
of Annual
Contributions actually made by employees and employer were: Amount Payroll
County 89,437 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
Increases to funds
Employer Contribution
Employee Contribution
State Contribution
Total Contributions
Investment Income
Other Income
Total Increases
1 /l /2002
1/1 /2001
1 / 1 /2000
1 /l / 1999
to
to
to
to
12/31 /2002
12/31 /2001
12/31 /2000
12/31 / 1999
89,437.00
66,250.00
160,684.00
150,113.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
89,437.00 66,250.00 160,684.00 150,113.00
4,283.59 13,820.69 2,750.86 0.00
0.00 0.00 0.00 0.00
93,720.59 80,070.69 163,434.86 150,113.00
Decreases to Funds
Benefit payments 0.00 0.00 0.00 0.00
Admin expenses (8,400.00) (4,210.12) 0.00 0.00
Total Decreases (8,400.00) (4,210.12) 0.00 0.00
Net Increase/Decrease
85,320.59 75,860.57 163,434.86 150,113.00
MOUTON & COMPANY, INC.
..A
ACTUARIES & PENyUN AUn41uSI ant?