Item C05BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:_ October 20, 2004
Bulk Item: Yes X No
Division: County Administrator
Department: Fire Rescue
AGENDA ITEM WORDING: Acceptance of the Monroe County Length of Service Award
Program (LOSAP) actuarial valuation report for the Plan Year 2004.
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 2004: $53,904.00 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:
DIVISION DIRECTOR APPROVAL:
DOCUMENTATION:
DISPOSITION:
Revised 1/03
James L. Roberts
Included X To Follow Not Required
AGENDA ITEM # 5
/A
MOUTON
&c0m INC.
ACTUARIES AND PENSION ADMINISTRATORS
MONROE COUNTY
FLORIDA VOLUNTEER FIREFIGHTER
AND EMERGENCY MEDICAL SERVICES
LENGTH OF SERVICE AWARD PLAN
ACTUARIAL REPORT
JANUARY 1, 2004
Lakeview Professional Village • 516 Lakeview Road - Villa 6 • Clearwater, FL 33756 • (727) 441-1526 • Fax (727) 441-3564
MOLTFON
&COMPANY,INC.
ACTUARIES AND PENSION ADMINISTRATORS
August 23, 2004
Monroe County Board of County Commissioners
c/o Chief Clark Martin
490 63`d Street
Marathon, FL 33050
Dear Plan Administrator:
We are pleased to present the attached Report as of January 1, 2004, covering the actuarial
aspects of the "Monroe County LOSAP" for the Plan Year ending December 31, 2004 and the
County's fiscal year ending September 30, 2005.
A brief overview of the results can be obtained by looking at the following figures for the
past three years:
2002 2003 2004
Plan Year Plan Year Plan Year
Participants 192 193 189
Covered Payroll $ na $ na $ na
Total Plan Normal Funding * $94,437 $73,480 $58,904
Florida Required Funding ** $99,488 $84,381 $64,092
* assuming an additional years past service benefit
** includes provisions for expenses and provisions for Funding Standard Account debit
balances
Again, 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 1.32%, 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
&COMPANY INC.
ACTUARIES AND PENSION ADMINISTRATORS
Monroe County Board of County Commissioners
August 23, 2004
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,
Glenn F. Mouton, FSA
Consulting Actuary
GFM/nm
Enclosures
Lakeview Professional Village • 516 Lakeview Road - Villa 6 • Clearwater, FL 33756 • (727) 441-1526 • Fax (727) 441-3564
MOUTON
&COMPANY, INC.
ACTUARIES AND PENSION ADMINISTRATORS
August 23, 2004
PLAN: Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
PLAN YEAR: January 1, 2004 through December 31, 2004
SPONSOR FISCAL YEAR: October 1, 2004 through September 30, 2005
VALUATION DATE: January 1, 2004
1
This report presents the results of the Actuarial Valuation as of Valuation Date shown above of the
Plan. The principal purposes of this report are
- To present the financial condition of the Plan
- To satisfy the requirements of Chapter 112 of the Florida Statutes
- To present the contributions required to adequately fund the Plan during the
current year, according to the plan's current funding methodology
- To present disclosures required by Governmental Accounting Standards Board,
Statements #25
Mouton and Company, Inc. was retained by the Plan Administrator of the Plan for this report. This
actuarial valuation and/or cost determination was prepared and completed by me or under my direct
supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the
results are complete and accurate, and in my opinion, the techniques and assumptions used are
reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. There
is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which
liabilities or current costs have not been established or otherwise taken into account in the
valuation. All known events or trends which may require a material increase in plan costs or
required contribution rates have been taken into account in the valuation.
Date Glenn F. Mouton
Enrollment #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, 2004
TABLE OF CONTENTS
EXHIBIT 1 VALUATION RESULTS
Schedule A — Plan Description — After Changes 1
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 PARTICIPANT 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
MOUTON & COMPANY,
ACTUARIES & PENSION ADMINISTRATORS
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MOUTON & COMPANY,
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
Page 1 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of3snaary 1, 2004
CURRENT VALUATION RESULTS
EXHIBIT I
Plan Description
Schedule A
Acpmial Study as of
01-1an-04
Value
Completed months b participue
0
Years ofCrediled Service Required to be Fully Vested:
10
Maxirmnn number of aedited Service Months at program inception:
Fo vesting purposes
12012
For benefit accrual purposes
First Yew for which Retroactive Benefit Accrual Service Is Granted:
1993
Annual Benefit Accrued for each completed year of service
I80
Maxhrarm Annual Beruofie
4,500
Present Value of Annual Bfi Eamed @ NRA:
1,439
Present value of maximwn benefit ® NRA:
36,485
Invest Adjustment to Move Normal Costs to End of Valuation Year.
1.05000
Reap of Resubs
After Change
Interest RaW..
5.00%
Perri- Active I
Present
Present
Present
Anragale
Average
parti- cipam4 Not Ineligible I
Value of
Value of
Allocated
Value of
Future
Future
Current
cipmes Valued Accruing Pard- I huuaives
Benefits
Benefit
Actuarial
Fume
Service
Service
Normal
District Reported Active Benefits cipants I Valued
I
Active
Inactive
Assets
Normal Costa
Annuity
Annuity
Cat EOY
I
Big Coppbt 31 13 10 8 I
0
63.478
0
49.385
14,093
123.885
5386
2,747
I
Big Pine 24 8 14 2 I
3
78,965
14.312
60,580
32.697
165.046
6.602
5.200
I
Conch Key 0 0 0 0 1
6
0
24,720
33,671
(&Xl)
36.185
6.031
-4558
I
Key Largo Fire 4S 22 13 10 I
8
170,076
20,696
111,333
79.439
279.000
6.438
12,856
I
Key Largo EMS 31 17 6 8 I
6
149,474
15,446
94,340
70,530
193.940
6.688
I I A31
I
Layba IS 10 3 2 I
5
85,229
10,324
61,702
33.851
93.720
5.207
6,326
I
SugaritdKey 20 7 6 7 I
7
69,064
29.152
62,037
35.179
116.245
5.312
6,355
I
Tavernier 26 12 9 5 I
I
3
146,419
10,750
891689
67,480
163-W
6.815
10,397
aaovroeCovntv 192 89 61 42 I
38
761,705
125AN
562,737
324.368
1171.593
6.232
S3,904
Nor. Only Per 4 with 3 a vas maxo6s of raria imdw: Rm pbmyw err vbo sm vcoWd iur bmadr ere vBbW&
Expense cost shown on page 3.
MOUTON & COMPANY, I
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY. FLORIDA VOLUNTEER FIREFIGHTER AND
Page 2 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD
PLAN
Actuarial Valuation as ofJanuary I, 2002
CURRENT VALUATION RESULTS
EXHIBIT 1
Plan Description
Schedulc A
Actuarial Study as of
01-Jan-04
Value
Completed months to pmbcww
0
Years ofCred sed Service Required to be Fully Vested:
10
Maximum number of credited Service Montle at program inception:
For vesting purposes:
120
For benefit accrual purposer.
12
First Year for whicb Retroactive Benefit Accrual Service Is Gmsed
1994
Annual Benefit Accrued for each completed yew of service
I80
Mwduw o Annual Beoefn:
4,500
Present Value of Annual Bfi Earned ® NRA:
1,459
Present value ofmaximum benefit ® NRA:
36A85
Interest AdjuYment to Move Normal Costs to End of Valuation Year•.
1.05000
Reap of Results:
Before Change
Interest Raw.
5.00%
Parti- Active I
Resent
Present
Present
Aggregate
Average
Patti- cipnnts Not Ineligible I
Value of
Value of
Allocated
Value of
Future
Future
Current
cipmts Valued Accruing Pard. I
buetives
Benefits
Benefits
Actuarial
Ftrare
Service
Service
Nomul
District Reported Active Benefits cipaats I
I
Valued
Active
Inactive
Assets
Normal Costs
Annuity
Annuity
Cost EOY
I
Big Coppilt 31 13 10 8 I
0
62,788
0
49,335
13,403
123.885
5.396
2,613
I
Big Pine 24 8 14 2 I
3
79,131
14,312
60,580
31,863
165.046
6.602
51068
I
Conch Key 0 0 0 0 1
6
0
24,720
33,671
(8,951)
36.185
6.031
-1,558
I
Key Largo Fire 45 22 13 10 I
I
8
164,589
20,696
111,333
73,952
279.000
6.488
1119"
Key Largo EMS 31 17 6 8 I
6
145,083
15,446
94,340
66.199
193.940
6.698
10,392
I
Lap- 15 10 3 2 I
5
$0,649
I0,324
61,702
29,271
93.720
5.207
5,903
I
SupficafKey 20 7 6 7 I
7
65,724
29,152
62.037
32.839
116.245
3.812
5,933
I
Tavernier 26 12 9 5 I
I
3
139.611
10,730
99,699
60,672
163.562
6.81S
91"
Monroe County 192 89 61 42 I
38
736.575
125.400
$62.737
299,238
1171.583
6.210
49,667
Now. 0* ftt1Cl/wld I w tmre aft efsovioe fs tan PIR om 1'w orwbo R venW ins am:& ■C vabw&
Expense cost sbown on page 3.
MOUTON & COMPANY,
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, 2004 CURRENT VALUATION RESULTS EXHIBIT 1
Development of Current Year's Costs ----- Schedule B I
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. Interest Adjustments not included elsewhere
H. Total Plan Normal Costs = GASB 25 ARC
Before Change After Change *
Current Year Current Year Prior Year
01-Jan-2004 01-Jan-2004 01-Jan-2003
736,575 761,705 759,485
125,400 125,400 131,294
0 0 0
0 0 0
0 0 0
861,975 887,105 890,779
0 0 0
0 0 0
0 0 0
562,738 562,738 474,729
299,237 324,367 416,050
49,667
53,904
68,840
5,000
5,000
5,000
0
0
0
54,667
58,904
73,840
* Change is the crediting of 1993 as an additional year of potential past credited service.
MOUTON & COMPANY,
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, 2004 CURRENT VALUATION RESULTS EXHIBIT 1 I
Development of Historical and Projected Funding Standard Account Balances -_ Schedule C I
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%
Date Made Amount
Interest
31-Jan-03 10,000
459
0
0
17-Dec-03 68,840
141
0
78,840
600
Before Changes
After Changes
Projected
Projected
Current
Current
Plan Year
Plan Year
Prior Year
01-Jan-2004
01-Jan-2004
01-Jan-2003
-4,941
-4,941
-10,039
-247
-247
-502
49,667
53,904
68,840
5,000
5,000
5,000
0
0
0
0
0
0
54,667
58,904
73,840
0
0
78,840
0
0
0
0
0
600
0 0 79,440
-59,855-64,092 4,941
MOUTON & COMPANY, I
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, 2004
CURRENT VALUATION RESULTS
EXHIBIT 1
Participant Data
Schedule D
Next
Current Year
Prior Year
Prior Year
01-Jan-2004
01-Jan-2003
01-Jan-2002
Number Included
Active Members
150
157
189
Inactive Members
38
36
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
ScheduleE
Actuarial Value
562,738
474,729
389,409
Market Value
562,738
474,729
389,408
Liabilities
Schedule F
Before Changes
After Changes
Current
Current
Prior
Plan Year
Plan Year
Plan Year
01-Jan-2004
01-Jan-2004
01-Jan-2003
Present Value of Benefits
Active Members
736,575
761,705
759,485
Inactive Members
125,400
125,400
131,294
Retired Members
0
0
0
Current Beneficiaries
0
0
0
Disabled Members
0
0
0
Total
861,975
887,105
890,779
Less Present Value
Future Member Contributions
0
0
0
Future State Contributions
0
0
0
0
0
0
Actuarial Accrued Liability
861,975
887,105
890,779
less Actuarial Plan Assets
(562,738)
(562,738)
(474,729)
Unfunded Actuarial Accrued Liability
299,237
324,367
416,050
MOUTON & COMPANY, INC.
ACTUARIES & 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, 2004 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-2004
01-Jan-2004
01-Jan-2003
Vested Accrued Benefits
Inactive Members & Beneficiaries
125,400
125,400
131,294
Active Members
220,823
247,609
212,355
Total
346,223
373,009
343,649
Nonvested Accrued Benefits
641,152
639,496
678,424
Total
861,975
887,105
890,779
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-2004
01-Jan-2004
01-Jan-2003
Present Value of Accrued Benefits at
Beginning of Year
890,779
890,779
920,735
Increase (Decrease) During Year Attributable
to (where applicable):
Plan Adoption
0
0
0
Plan Amendment
0
25,130
52,091
Changes in Valuation
0
0
0
Increase due to Survivorship
0
0
0
Increase for less Interest Discount
44,539
44,539
46,037
Benefits Accrued, net of excluded participants
28,804
28,804
13,822
Benefits Paid
0
0
0
Other Changes - terminations
(102,147)
(102,147)
(141,906)
Net Increase (Decrease)
--------------
(28,804)
(3,674)
(29,956)
Actuarial Present Value of Accrued
Benefits at End of Year
861,975
887,105
890,779
MOUTON & COMPANY,
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 7 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2004 CURRENT VALUATION RESULTS EXHIBIT 1
Pension Cost
Schedule I
--------------------------------------------------------------------------------------------------------------------------------------------------
Before Changes
After Changes
Current
Current
Prior
Plan Year
Plan Year
Plan Year
01-Jan-2004
01-Jan-2004
01-Jan-2003
Required Funding Costs
49,667
53,904
68,840
Current Administrative Expense
9,941
9,941
15,039
Interest Adjustment
247
247
-----------
502
-----------
Total Required County Contribution
-----------
59,855
64,092
84,381
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 59,855 64,092 78,840
As % of Payroll N/A N/A N/A
Past Contributions Schedule J I
--------------------------------------------------------------------------------------------------------------------------------------------------
For the fiscal year ended 12/31/03
Total Contribution Required 78,840
Actual Contribution Made By:
State 0
County 78,840
Participants 0
78,840
MOUTON & COMPANY, I
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2004 CURRENT VALUATION RESULTS
Page 8 of 22
EXHIBIT 1
Comparison of Actual to Assumed Earnings
Schedule K
Y(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
31-Dec-2003 474,729 562,738 9,169 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-2001 9,611 15,572 3.09% na
na
5.00%
31-Dec-2002 (4,116) 19,260 -1.07% 1.28%
na
5.000/0
31-Dec-2003 9,169 23,736 1.93% 1.32%
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 Page 9 of
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2004 PARTICIPANT DEMOGRAPHICS EXHIBIT
Coverage Schedule Al
-----------------------------------------------------------------------------------------------------------------------------------------
This valuation includes the following 188 persons covered by the plan as of December 31, 2003.
Category
Number
Amount
Active Participants
150
0
Other Inactive Participants
38
0 **
Retirees on Benefit
0
0 **
Survivors on Benefit
0
0
Participants on Disability Benefit
0
0 **
Terminated Vested Participants
0
0 **
TOTAL
188
N/A
* Annual covered pay only
** Annual Benefit
42 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, 2003.
MOUTON & COMPANY, I
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2004 PARTICIPANT DEMOGRAPHICS
Page 10 of 2
EXHIBIT
Participant Reconciliation
Schedule
Retired Survivor
With
on on
Vested
Active Benefit Benefit Disabled
Benefit
Tota
Participants at 01-Jan-2003 157 0 0 0
36
193
New 21
21
Retirement 0
0
Death 0
0
Non -Vested Termination -26
(26
Vested Termination -2
2
0
Lump Sum Settlement 0
0
New Survivors 0
0
Participants at 31-Dec-2003 _ 150 0 0 0
38
188
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD P Page 11 of 22
Actuarial Valuation as of January 1, 2004
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Net Assets Available for Benefits* Schedule A
31-Dec-2002 31-Dec-2003
-----------------------------------------------------------------------------------------------------------------------------
Market Value
Money Market 474,729.02 562,738.22
Accrued Contribution - Employer 0.00 0.00
---------------- ----------------
474,729.02 562,738.22
- ---------------- ----------------
Liabilities
Accounts Payable 0.00 0.00
Deferred Revenues 0.00 0.00
---------------- ----------------
0.00 0.00
---------------- ----------------
Net Assets Available 474,729.02 562,738.22
* As reported by the County
MOUTON & COMPANY,
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, 2004
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Changes in Market Value of Net Assets Schedule B
Plan Year Ending: 31-Dec-2002 31-Dec-2003
INCREASES
Earnings on Investments
4,283.59 I
9,169.20
Unrealized Appreciation (Depreciation) 0.00 I
I
0•00
State Insurance Contributions
0.00 I
0•00
Employee Contributions
0.00 I
0.00
Employer Contributions:
89,437.00 I
I
78,840.00
Accrued
0.00 I
--_---------- I
0•00
-------------
I
I
89,437.00 I
78,840.00
93,720.59 (
88,009.20
DECREASES
Expenses
I
Professional Fees
(4,200.00) Year 2001 Fee
Professional Fees -- 2001
(4,200.00) Year 2002 Fee
(8,400.00) I
0.00
Paid to Participants
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
0.00 I
0.00
(8,400.00) I
0.00
Net Incmase/(Decrease)
85,320.59 I
I
88,009.20
NET MARKET VALUE OF ASSETS AVAILABLE FOR BENEFITS:
I
Beginning of Year
389,408.43 I
------- - I
474,729.02
-------------
End of Year
---------
474,729.02 I
I
I
562,738.22
MOUTON & COMPANY,
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2004 Page 14 of 22
PLAN SUMMARY EXHIBIT 4
4, Nnrmsl
Retirement Renefit
(a)
Eligibility: Completion of 10 years of service.
(b)
Benefit: An annual benefit based on the following schedule:
Renefit 4checinle
Years of Monthly
Service Benefit
Annual
Benefit
25
$375
$4500
24
360
4320
23
345
4140
22
330
3960
21
315
3780
20
300
3600
19
285
3420
18
270
3240
17
255
3060
16
240
2880
15
225
2700
14
210
2520
13
195
2340
12
180
2160
11
165
1980
10
150
1800
(c)
Form of Payment: Benefit payments are payable monthly for a period of ten years.
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, 2004 Page 15 of 22
PLAN SUMMARY E)G MTT 4
7. Y.esting
(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.
zai
(a) Eligibility: Death of a vested Participant.
(b) Benefit: The present value of vested accrued benefits.
MOUTON S COMPANY, I
ACTUARIES S PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2004 Page 16 of 22
COST METHOD EXHIBIT 5-A
CORT MFTHnn: 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,
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, 2004
ACTUARIAL ASSUMPTIONS EXHIBIT 5 - B
Actuarial Study as of: 01-Jan-2004
Valuation Date Adjustment: 0
Completed months to participate 0
Maximum number of credited Service Months at program inception:
For vesting purposes: 120
For benefit accrual purposes: 12
Annual Benefit Accrued for each completed year of service 180
Maximum Annual Benefit Accrued for each completed year of service 4500
Vesting Schedule Yrs Vesting
0 0%
10 100%
Termination Assumption: Godwin's Table 1, V Select & Ultimate Table, with 50% termination prob. for YOS<l.
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
Present value of maximum benefit:
Present value of annual benefit accrual
Year First Allowed for Benefit Accrual Purposes: After:
Before:
Maximum Credited Years for Benefit Accrual as of the Valuation Date:
3,000 370.01
36,485
1,459
1993
1994
12
MOUTON & COMPANY, I
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2004 Page 18 of 22
PENSION COST RATIONALE EXIIIBIT 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, I
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 19 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2004 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 Adrninistrator. 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
25
$375
$4,500
24
360
S4,320
23
345
S4,140
22
330
$3,960
21
315
$3,780
20
300
$3,600
19
285
S39420
18
270
$3,240
17
255
$3,060
16
240
$2,880
15
225
$2,700
14
210
$2,520
13
195
S2,340
12
180
$2,160
11
165
$1,980
10
150
$1,800
0
0
38
38
61
0
127
188
(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, 2004 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 MSTUs,
such funds to be applied as a contribution to the LOSAP trust account in an amount as determined by the
Plan Administrator as is necessary to fund the accrued or prospective benefits for Participants on an
actuarially sound basis and in accordance with Part VII of Chapter 112, Florida Statutes.
There are no Participant contribution requirements.
The authority under which those obligations are established is the Monroe County Ordinance No. 026-1999
b. (1) The accounting policies include the Accrual basis of accounting, and assets are reported at Market Value.
Exchanges or "swaps" of securities are accounted for in the income.
(2) We are aware of no investments (other than U.S. government and U.S. government -guaranteed obligations)
which represented more than 5% of net assets available for benefits.
(3) We are aware of no investments in, loans to, or leases with any PERS official, government employer official,
party related to a PERS official or governmental employer official, nonemployer contributor, or organization
included in the reporting entity.
The Actuarial Present Value of credited projected benefits, is a standardized disclosure measure of the
present value of pension benefits, adjusted for the effects of projected salary increases and any step -rate
benefits, estimated to be payable in the future as a result of employee service to date. There are no
salaries paid to the Participants.
MOUTON & COMPANY,
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 21 of 2
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2004 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<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, I
ACTUARIES & PENSION ADMINISTRATORS
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2004
Page 22 of 22
EXHIBIT 7
GASB 25 Schedules of Funding Progress
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
The actuarially determined normal cost as of
31-Dec-2003
$58,904
% of Annual
Contributions actually made by employees and employer were:
Amount
Payroll
County
78,840
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/l/2003
1/1/2002
1/1/2001
1/1/2000
1/1/1999
to
to
to
to
to
12/31 /2003
12/31 /2002
12/31 /2001
12/31 /2000
12/31 / 1 99
Increases to funds
Employer Contribution 78,840.00
89,437.00
66,250.00
160,684.00
150,113.00
Employee Contribution 0.00
0.00
0.00
0.00
0.00
State Contribution 0.00
0.00
0.00
0.00
0.00
Total Contributions 78,840.00
89,437.00
66,250.00
160,684.00
150,113.00
Investment Income 9,169.20
4,283.59
13,820.69
2,750.86
0.00
Other Income 0.00
0.00
0.00
0.00
0.00
Total Increases 88,009.20
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
0.00
Admin expenses 0.00
(8,400.00)
(4,210.12)
0.00
0.00
Total Decreases 0.00
(8,400.00)
(4,210.12)
0.00
0.00
Net Increase/Decrease 88,009.20
85,320.59
75,860.57
163,434.86
150,113.00
MOUTON & COMPANY, INC.
ACTUARIES & PENSION ADMINISTRATORS