Item C29BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 17, 2012
Bulk Item: Yes X No
Division: Emergency Services
Department: Fire Rescue
Staff Contact Person/Phone#: Claudia Wilkerson
305-289-6014
AGENDA ITEM WORDING: Acceptance of the Monroe County Length of Service Award Program
(LOSAP) actuarial valuation report for the Plan Year 2012 and transfer of funds for Plan Year 2012
into the LOSAP Trust Fund.
ITEM BACKGROUND: These actuarial valuations and/or cost determinations were prepared and
completed by Glenn F. Mouton, on behalf of Mouton & Company, Inc. They meet the requirements
and intent of Part VII, Chapter 112, Florida Statutes (Actuarial Soundness of Retirement Systems).
PREVIOUS RELEVANT BOCC ACTION: On June 9, 1999, the Board adopted Ordinance No.
026-1999, providing for the creation of a Length of Service Awards Plan, providing benefits to eligible
volunteer fire fighters and emergency medical services volunteers.
CONTRACT/AGREEMENT CHANGES: Not an agreement.
STAFF RECOMMENDATIONS: Acceptance of actuarial report and transfer of funds for Plan Year
2012 into the LOSAP Trust Fund in the amount of $31,588.00.
TOTAL COST: $31,588.00 INDIRECT COST:
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY: $31,588.00
BUDGETED: Yes X No
141-11500-530340
N/.
SOURCE OF FUNDS: Ad valorem taxation
REVENUE PRODUCING: Yes —No X (AM UNT PER MONTH Year
APPROVED BY: County Atty�/ OMB/PurcTiasing Risk Management"
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM #
Revised 7109
M®LJTON
COMPANYINC. August 29, 2012
ACTUARIES AND PENSION ADMINISTRATORS
Monroe County Board of County Commissioners
c/o Chief James Callahan
490 63" Street
Marathon, FL 33050
Subject: Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
January 1, 2012 Actuarial Valuation
Dear Chief Callahan:
Enclosed is the draft of the actuarial valuation for the Monroe County LOSAP plan.
This draft includes a decrease in the discount rate from 2.5% to 2.0% to better reflect the
actual fund performance. No award of another past year of service credit is reflected as
there are no eligible participants for this credit. Once the draft of the report has been
accepted by the board, we will forward the original report to you with a copy to the State for
approval.
Should you have any questions regarding the enclosed report, please give me a call.
Sincerely,
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
MONROE COUNTY
FLORIDA VOLUNTEER FIREFIGHTER
AND EMERGENCY MEDICAL SERVICES
LENGTH OF SERVICE AWARD PLAN
ACTUARIAL REPORT
JANUARY 1, 2012
II '
August 14, 2012
Monroe County Board of County Commissioners
Fire Chief James Callahan
490 63`d Street
Marathon, FL 33050
Dear Plan Administrator:
We are pleased to present the attached Report as of January 1, 2012, covering the actuarial
aspects of the "Monroe County LOSAP" for the Plan Year ending December 31, 2012 and the
County's fiscal year ending September 30, 2013.
A brief overview of the results can be obtained by looking at the following figures for the
past three years:
2010 2011 2012
Item Plan Year Plan Year Plan Year
Participants 62 59 59
Covered Payroll $ na $ na $ na
Current EOY Plan Costs * $25,179 $22,945 $31,588
* 2012 assuming change in discount rate. Prior years assuming an additional years past
service benefit and includes provisions for expenses and provisions for Funding Standard
Account debit balances, but not credit balances.
Due to Key Largo terminating from the County plan effective October 1, 2006, we have not
assigned any costs to them. We have kept the vested participants for Key Largo's Fire and EMS
and assets estimated to be sufficient for those participants and reallocated the remaining assets to
the other participating departments. Should additional vested participants arise from a future
census, we will include them with the future year's valuation and recapture the assets for those
benefits. Additionally, in the future, should assets not be sufficient to cover those benefits, an
additional recapture of assets may be needed. These recaptures, if any, will be made in the same
ratio as the reallocation was determined, which split assets available for reallocation equally among
the remaining active departments.
Monroe County Board of County Commissioners
August 14, 2012
Page Two
The undersigned credentialed actuary meets the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
Due to the trend in investment earnings, we have reduced the discount rate from 2.50% to
2.0%. If this trend continues further reductions in discount rate should be anticipated. Future
compliance with GASB's 68 and 67 may require a substantial decrease in the assumed discount rate
absent improved investment performance.
Assuming that the recommended funding is made and that the asset performance becomes
consistent with our current assumption, it is our opinion that the Plan will be proceeding with a
funding program, which can be expected to support the benefits promised by the Plan on an
adequate and timely basis.
Respectfully submitted,
Glenn F. Mouton, FSA
Consulting Actuary
GFM/nm
Enclosures
August 14, 2012
ACTUARIAL REPORT
PLAN: Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
PLAN YEAR: January 1, 2012 through December 31, 2012
SPONSOR FISCAL YEAR: October 1, 2012 through September 30, 2013
VALUATION DATE: January 1, 2012
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.
The undersigned credentialed actuary meets the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
Date Glenn F. Mouton
Enrollment #11-2773
On Behalf of Mouton & Company, Inc.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2012
TABLE OF CONTENTS
EXHIBIT 1 VALUATION RESULTS
Schedule A — Development of Actuarial Assets
1
Schedule B — Plan Description — After Changes
2
Schedule B — Plan Description — Before Changes
3
Schedule C - Development of Current Year's Costs
4
Schedule D — Development of Historical and Projected FSA
5
Schedule E - Participant Data
6
Schedule F - Assets
6
Schedule G - Liabilities
6
Schedule H - Actuarial Present Value of Accrued Benefits
7
Schedule I - Statement of Changes in Total Actuarial
Present Value of All Accrued Benefits
7
Schedule J - Pension Cost
8
Schedule K - Past Contributions
8
Schedule L - Comparison of Actual to Assumed Earnings
9
EXHIBIT 2 PARTICIPANT DEMOGRAPHICS
Schedule A - Coverage 10
Schedule B — Year of Credited Service 10
Schedule C - Participant Reconciliation 11
EXHIBIT 3 PLAN ASSET INFORMATION
Schedule A - Statement of Net Assets Available
for Benefits at Market Values 12
Schedule B - Statement of Changes in Net Assets
Available for Benefits 13
EXHIBIT 4 PLAN SUMMARY 14
EXHIBIT 5 COST METHOD AND ASSUMPTIONS 18
EXHIBIT 6 PENSION COST RATIONALE 19
EXHIBIT 7 GASB 25 INFORMATION 20
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 4 of 24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as ofJanuary 1, 2012 CURRENT VALUATION RESULTS DRAFT EXHIBIT I
Development of'Current Year's Costs
Schedule C
After
Before
Changes
Changes
Current Year
Current Year
Prior Year
01-Jan-2012
01-Jan-2012
01-Jan-2011
A.
Present Value of Future Obligations:
-
-
1. Active Members
550,888
508,672
517,613
2. Inactive Members
383,817
367,514
353,035
3. Retired Members
0
0
0
4. Survivors on Benefit
0
0
0
5. Disabled Members
0
0
0
Total Actuarial Accrued Liability:
934,705
876,186
870,648
B.
Less Present Value of:
1. Member Contributions
0
0
0
2. Florida Premium Tax Rebates
0
0
0
0
0
0
C.
Less Actuarial Plan Assets
849,903
849,903
841,980
D.
Amount to be Funded by County (A-B-C)
84,802
26,283
28,668
(Unfunded Actuarial Accrued Liability)
E.
Aggregate Normal Costs from District Calculations including expenses
31,588
24,946
22,945
F.
Expenses not paid directly by the County (included above)
na
na
na
G.
Interest Adjustments not included elsewhere
0
0
0
H.
Total Plan Normal Costs = GASB 25 ARC
31,588
24,946
22,945
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 5 of24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012 CURRENT VALUATION RESULTS DRAFT EXHIBIT I
Development of Historical and Projected Funding Standard Account Balances Schedule D
A. Beginning Balance
Interest Adjustment to End of Year
sub -total
B. Less Charges to Account
I . Normal Costs for the Year (BOY)
2. Provision for Expenses (included in (1) above)
2. Amortization Charges (net) (BOY)
3. Interest Adjustment to End of Year
C. Pius Credits to Account
1. Contributions Credited During the Year
2. Amortization Charges (net) (BOY)
3. Interest Adjustment to End of Year
D. Ending Balance* (not less than 0)
Date Made Amount
27-Jan- 11 30,379
0
0
0
am
After
Before
Changes
Changes
Projected
Projected
Current
Current
Plan Year
Plan Year
Prior Year
01-Jan-2012
0 1 -Jan-2012
0 1 -Jan-201 I
23,656
23,797
15,276
473
595
382
24,129
24,392
15,658
31,588
24,946
22,945
na
na
na
0
0
0
2.00% 0
0
0
31,588
24,946
22,945
0
0
30,379
0
0
0
0
0
564
0
0
30,943
0
0
23,656
Interest
564
0
0
0
564
Note: A positive ending balance represents the accumulation of past contributions in excess of required minimums.
Such a balance is available to the sponsor in the current or future years to adjust normal funding requirements.
For the current year, Contributions Credited are determined as the lowest amount which would avoid an ending
negative balance, under the assumption that the contribution is received on the last day of the plan year.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
Page 6 of24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012
CURRENT VALUATION RESULTS
DRAFT
EXHIBIT 1
Participant Data
Schedule E
Next
Current Year
Prior Year
Prior Year
01-Jan-2012
01-Jan-2011
01-Jan-2010
Number Included
Active Members
31
31
28
Inactive Members
20
20
26
Retired Members
8
8
8
Current Beneficiaries
0
0
0
Disabled Members
0
0
0
Total Annual Payroll of Actives
0
0
0
Total Annual Benefits:
to Retired Members
24,660
21,480
15,075
to Current Beneficiaries
0
0
0
to Disabled Members
0
0
0
Assets
Schedule F
Actuarial Value
849,903
841,990
831,083
Market Value
849,903
841,980
831,083
Liabilities
Schedule G
After
Before
Changes
Changes
Current
Current
Prior
Plan Year
Plan Year
Plan Year
01-Jan-2012
01-Jan-2012
01-Jan-2011
Present Value of Future Benefits
Active Members
550,888
508,672
517,613
Inactive Members
383,817
367,514
353,035
Retired Members
0
0
0
Current Beneficiaries
0
0
0
Disabled Members
0
0
0
Total
934,705
876,186
870,648
Less Present Value
Future Member Contributions
0
0
0
Future State Contributions
0
0
0
0
0
0
Actuarial Accrued Liability
934,705
876,186
870,648
less Actuarial Plan Assets
(849,903)
(849,903)
(841,980)
Unfunded Actuarial Accrued Liability
�84,802
26,283
28,668
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 7 of 24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012 CURRENT VALUATION RESULTS DRAFT EXHIBIT 1
Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactive Members & Beneficiaries
Active Members
Total
Nonvested Accrued Benefits
Total
Statement of Changes in Total Actuarial Present Value
of All Accrued Benefits
Schedule H
After
Before
Changes
Changes
Current Year
Current Year
Prior Year
01-Jan-2012
01-Jan-2012
01-Jan-2011
383,817
367,514
353,035
299,699
287,936
259,542
683,516
655,450
612,577
68,188
57,136
68,773
751,704
712,586
681,350
After
Before
Changes
Changes
Current Year
Current Year
01-Jan-2012
01-Jan-2012
Present Value of Accrued Benefits at
Beginning of Year
681,350
681,350
Increase (Decrease) During Year Attributable
to (where applicable):
Plan Adoption
0
0
Plan Amendment
0
0
Changes in Valuation — interest rate
42,464
0
Increase due to Survivorship
0
0
Increase for less Interest Discount
13,380
16,726
Benefits Accrued, net of excluded participants
48,111
48,111
Benefits Paid
(24,660)
(24,660)
Other Changes - terminations
(8,941)
(8,941)
Net Increase (Decrease)
70,354
�31,236
Actuarial Present Value of Accrued
Benefits at End of Year
751,704
712,586
Schedule 1
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 8 of 24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012 CURRENT VALUATION RESULTS DRAFT EXHIBIT 1
Pension Cost Schedule J
After
Before
Changes
Changes
Current
Current
Prior
Plan Year
Plan Year
Plan Year
O1-Jan-2012
01-Jan-2012
01-Jan-2011
Required Funding Costs
31,588
24,946
22,945
Current and Prior Unfunded Administrative Expense
(30,943)
(31,084)
(23,772)
Interest Adjustment
(619)
(777)
(594)
Total Required County Contribution
26
(6,915)
(1,421)
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
26
(6,915)
(1,421)
As % of Payroll
N/A
N/A
N/A
Past Contributions
Schedule K
For the fiscal year ended 12/31/11
Total Contribution Required
0
Actual Contribution Made By:
State
0
County
30,379
Participants
0
30,379
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 9 of 24
Actuarial Valuation as of January 1, 2012 CURRENT VALUATION RESULTS EXHIBIT 1
Comparison of Actual to Assumed Earnings I DRAFT Schedule L
(Assuming uniform income and disbursements, Employer Contributions assumed at End of Year)
Benefits
Year Beginning Ending Investment Other and
Ended Assets Assets Earnings Income Expenses
31-Dec-1999
0
150,113
0
0
0
31-Dec-2000
150,113
313,548
2,751
0
0
31-Dec-2001
313,548
389,408
13,821
0
4,210
31-Dec-2002
389,408
474,729
4,284
0
8,400
31-Dec-2003
474,729
562,738
9,169
0
0
31-Dec-2004
562,738
626,637
8,412
0
8,417
31-Dec-2005
626,637
700,939
20,872
0
7,620
31-Dec-2006
700,939
725,508
15,466
0
10,130
31-Dec-2007
725,508
782,060
38,439
0
6,120
31-Dec-2008
782,060
817,512
30,628
0
23,653
31-Dec-2009
817,512
831,083
6,555
0
23,775
31-Dec-2010
831,083
841,980
7,821
0
25,838
31-Dec-2011
941,980
849,903
6,561
0
29,018
Year
Net
Expected
Actual
3 Year
5 Year
Assumed
Ended
Increase
Earnings
Experience
Average
Average
Factor
31-Dec-1999
0
0
0.00%
na
na
5.00%
31-Dec-2000
2,751
7,506
1.83%
na
na
5.00%
31-Dec-2001
9,611
15,572
4.44%
na
na
5.00%
31-Dec-2002
(4,116)
19,260
1.11%
2.46%
na
5.00%
31-Dec-2003
9,169
23,736
1.93%
2.49%
na
5.00%
31-Dec-2004
(5)
27,926
1.51%
1.52%
1.29%
5.00%
31-Dec-2005
13,252
24,913
3.35%
2.26%
1.75%
4.00%
31-Dec-2006
5,336
20,876
2.22%
2.36%
2.22%
3.00%
31-Dec-2007
32,319
18,061
5.32%
3.63%
2.45%
2.50%
31-Dec-2008
6,975
19,256
3.98%
3.84%
2.72%
2.50%
31-Dec-2009
(17,220)
20,141
0.81%
3.37%
3.09°%
2.50%
31-Dec-2010
(18,016)
20,454
0.96%
1.92%
3.02%
2.50%
31-Dec-2011
(22,456)
20,687
0.79%
0.85%
2.72%
2.50%
1999 is the first plan year and no assets were present prior to the end of the year, other than County accrued contributions.
Current earning rates are artificially depressed due to the plan only recently starting its funding. Future assets will be
invested assets and are expected to earn at or above the assumed factor, net of investment expenses.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of J PARTICIPANT DEMOGRAPHICS DRAFT
Coverage
----------------------_-----------------------------------------------------------------------------------------------------------
This valuation includes the following 59 persons covered by the plan as of December 31, 2011.
Category Number
Amount
Active Participants 31
0
Other Inactive Participants 20
0
**
Retirees on Benefit 8
0
**
Survivors on Benefit 0
0
**
Participants on Disability Benefit 0
0
**
Terminated Vested Participants 0
0
**
----
TOTAL 59
-----------
N/A
* Annual covered pay only
** Annual Benefit
59 persons (included in the data furnished to us) were ineligible for
participation as of the valuution
date. Participant data was furnished by the County of Monore and was as of December 31, 2011.
Years of Credited Service -- all Participants
-------------------------------------------------------------------------------------------------------------------------------
Years of Service
---------------------------------------------------------------------------------------------------------------
< 1 1 1-4 5-9
I 10-14
I 15-19 20-24 25-29
----------- I ----------- -----------
Attained I
I -----------
I
I ----------- ----------- --------
I I
Age Count I Count I Count
I Count
I Count Count I Count
I
Under 25 I
3 1
I
I
I
I
( -
I
26-29 I
2 1
I
I
I
30-34 I
3 1
1 1
I
I
35-39 I
3 1
3 1
1 1
I I
40-44 I
3 1
4 1
I
I I
45-49 I
3 1
1 1
1 I
1 1 I
50-54 I
2 1
I
2 1
3 1 1 1
55-59 I
I
2 1
4 1
1 1 I
60-64 I
I
I
6 1
I I
64-69 I
I
I
2 1
4 1 I
Over 70 I
I
I
I
I 1 1
0
19
11
16
9 2
1 1
t1
I
I
I
I
2
30-34
Count
Page 10 of 24
EXHIBIT 2
Schedule A
Schedule B
Totals
3
2
4
7
7
7
9
7
6
6
1
59
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
Page 11 of 24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012
PARTICIPANT DEMOGRAPHICS
EXHIBIT 2
Participant Reconciliation
------------------------------------------------------------------------------------------------------------------------------------------------------------
I DRAFT
Schedule C
Retired Survivor
on on
Active Benefit Benefit Disabled
Inactive Total
Participants at 01-Jan-2011
31 8 0 0
20 59
New
10
10
Retirement
0
0
Death
0
0
Non -Vested Termination
-10
(10)
Vested Termination
0
0
Lump Sum Settlement
0
0
New Survivors
0
0
Participants at 31-Dec-2011
----------------------------
31 8 0 0
--- ---- ---- ----
--------------
20 59
---- ----
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 12 of 24
Actuarial Valuation as of January 1, 2012
PLAN ASSET INFORMATION DRAFT EXHIBIT 3
Statement of Net Assets Available for Benefits* Schedule A
31-Dec-2010 31-Dec-201 1
Market Value
Money Market 841,980.48 849,903.01
Accrued Contribution - Employer 0.00 0.00
-------------------------------
841,980.48 849,903.01
Liabilities
Accounts Payable 0.00 0.00
Deferred Revenues 0.00 0.00
-------------------------------
0.00 0.00
Net Assets Available 841,980.48 849,903.01
* As reported by the County
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 13 of 24
Actuarial Valuation as of January 1, 2012
PLAN ASSET INFORMATION DRAFT EXHIBIT 3
Statement of Changes in Market Value of Net Assets
Plan Year Ending: 31-Dec-2010
INCREASES
Earnings on Investments
7,821.26
Unrealized Appreciation (Depreciation)
0.00
State Insurance Contributions
0.00
Employee Contributions
0.00
Employer Contributions:
28,914.00
Accrued
0.00
-----------------
28,914.00
-----------------
36,735.26
DECREASES
-----------------
Expenses
Professional Fees
(4,357.75)
Professional Fees
0.00
PMA Fees
0.00
-----------------
(4,357.75)
Paid to Participants
Retirees
(21,480.00)
Survivors
0.00
Disabled
0.00
Overpayment due to City
0.00
(21,480.00)
-----------------
(25,837.75)
Net Increasel(Decrease) 10,897.51
NET MARKET VALUE OF ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year
End of Year
e5
I
831,082.97
-------------------
841,980.48
f
30,379.00
0.00
(4,357.75)
0.00
0.00
(24,660.00)
0.00
0.00
0.00
Schedule B
31-Dec-2011
6,561.28
0.00
0.00
0.00
30,379.00
-------------
36,940.28
(4,357.75)
(24,660.00)
---------------
(29,017.75)
---------------
7,922.53
841,980.48
-------------------
849,903.01
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2012 Page 14 of 24
aWTIMINNUMSTIT"No
General Information
(a) Plan Name: Monroe County, Florida Volunteer Firefighter and
Emergency Medical Services Length of Service Award Plan
(b) Plan Year: January 1 through December 31
(c) Plan Sponsor: County of Monroe, Florida
(d) Sponsor Fiscal Year: October 1 through September 30
(e) Plan Administrator: Board or such other person or entity as designated by the Board
to administer the Plan
(f) Effective Date: January 1, 1999
2. Eli ig b�ty for Participation
The Plan Administrator shall, in its sole discretion, determine those Volunteer
Firefighters and EMS Volunteers ("Volunteers") eligible to participate in the Plan. Any
Volunteer who was age 60 or older on January 1, 1999 shall not be eligible to participate in
the Plan. In addition, any Volunteers who are age 60 or older at the time they commence
volunteer service, or who commence service at a time that will not permit them to earn ten
Years of Service by their Normal Retirement Age shall not eligible to participate.
3. Years of Service
Each year of volunteer service, a participant will accrue a year of benefit accrual if the
participant was:
A. enrolled as a member of the nonprofit corporation or MSTU; and
B. was eligible for and received reimbursement of expenses for nine or more months of
the year.
In the event that a non -vested Participant fails to accrue a Year of Service during any
three consecutive Plan Years, the Participant shall incur a "break -in-service", and any
Years of Service earned by the Participant prior to the break -in-service, shall be
disregarded for purposes of the Plan. In addition, in the event that any Participant ceases
to be carried on an active membership roll as a Volunteer Firefighter or EMS Volunteer
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2011 Page 15 of 24
PLAN SUMMARY
EXHIBIT 4
and later returns to active membership roll, only Years of Service earned after the
Participant's return to the active membership roll shall be counted for purposes of the Plan
No Years of Service shall be earned for any year of volunteer service after the Participant
has attained age sixty (60).
4. Contributions
Each Plan Year, the Board shall appropriate 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.
5, Normal Retirement Benefit
(a) Eligibility: Completion of 10 years of service.
(b) Benefit: An annual benefit based on the following schedule:
Benefit Schedule
Years of
Monthly
Annual
Service
Benefit
Benefit
25
$375
$4500
24
360
4320
23
345
4140
22
330
3960
21
315
3780
20
300
3600
19
285
3420
18
270
3240
17
255
3060
16
240
2880
15
225
2700
14
210
2520
13
195
2340
12
180
2160
11
165
1980
10
150
1800
(c) Form of Payment: Benefit payments are payable monthly for a period of ten years.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2011 Page 16 of 24
WINILVARVARAL,
6. Vesting
(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.
7. Death Benefits prior to Attaining Normal Retirement Age
(a) Eligibility: Death of a vested Participant.
(b) Benefit: The present value of vested accrued benefits.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 18 of 24
Actuarial Valuation as of January 1, 2012
ACTUARIAL ASSUMPTIONS DRAFT EXHIBIT 5 - B
Actuarial Study as of: 01-Jan-2012
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, w/ 50% termination
prob. for YOS<1.
Interest rate function assumptions
is
2.00%
v:
0.98039
d:
0.01961
109.94580
a(10)due:
9.16215
i(12):
0.165%
v(12):
0.99835
d(12):
0.00165
a(120)due:
108.94806
Maximum annual benefit accrual limited by IRC
3,000
327.43
Present value of maximum benefit:
41,230
Present value of annual benefit accrual
1,649
Year First Allowed for Benefit Accrual Purposes: After:
1986
Before:
1986
Maximum Credited Years for Benefit Accrual as of the Valuation Date:
27
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2011
Page 19 of 24
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.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 20 of 24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012 DRAFT EXHIBIT 7
GASB 25 Notes to the Financial Statements
a. (1) The above PERS administrator is a single -employer with only one contributing county
employer and no nonemployer and no contributors.
(2) Only Volunteer Firefighters and EMS Volunteers are eligible at the sole discretion of the
Plan Administrator. Any Volunteer who was age 60 or older on January 1, 1999 shall not be eligible
to participate. In addition, any Volunteers who are age 60 or older at the time they commence
volunteer service, or who commence service at a time that will not permit them to earn ten
Years if Service by their Normal Retirement Age shall not be eligible to participate in this Plan.
Inactive Participants by category:
Retirees currently receiving benefits
Beneficiaries currently receiving benefits
Terminated employees entitled to benefits
Fully vested and past normal retirement date
Partially vested
Non -vested
(3) The benefit provisions are as follows:
Benefit Schedule
Years of
Monthly
Annual
Service
Benefit
Benefit
25
$375
$4,500
24
360
$4,320
23
345
$4,140
22
330
$3,960
21
315
$3,780
20
300
$3,600
19
285
$3,420
18
270
$3,240
17
255
$3,060
16
240
$2,880
15
225
$2,700
14
210
$2,520
13
195
$2,340
12
180
$2,160
11
165
$1,980
10
150
$1,800
8
0
20
28
32
0
27
59
(4) Volunteer Firefighters must attain the rank of Structural Firefighter, Non -Structural Firefighter and
or Emergency Vehicle Driver-Perator prior to being credited with ten Years of Service.
EMS Vounteers must meet all requirements as defined by the State of Florida necessary to drive
an emergency medical care and transporation vehicle (ambulance) and/or attain certification as an
Emergency Medical Technician or Paramedic prior to being credited with ten Years of Service.
Eligibility for vesting is completion of 10 years of service.
The Plan shall be administered in accordance with the requirements of Chapter 112, Part V1I,
Florida Statutes.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 21 of 24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012 1 DRAFT EXHIBIT 7
GASB 25 Notes to the Financial Statements
For each Plan Year, the Board shall appropriate funds from the budgets of the various fire/rescue MSTU's,
such funds to be applied as a contribution to the LOSAP trust account in an amount as determined by the
Plan Administrator as is necessary to fund the accrued or prospective benefits for Participants on an
actuarially sound basis and in accordance with Part VII of Chapter 112, Florida Statutes.
There are no Participant contribution requirements.
The authority under which those obligations are established is the Monroe County Ordinance No. 026-1999
b. (1) The accounting policies include the Accrual basis of accounting, and assets are reported at Market Value.
Exchanges or "swaps" of securities are accounted for in the income.
(2) We are aware of no investments (other than U.S. government and U.S. government -guaranteed obligations)
which represented more than 5% of net assets available for benefits.
(3) We are aware of no investments in, loans to, or leases with any PERS official, government employer official,
party related to a PERS official or governmental employer official, nonemployer contributor, or organization
included in the reporting entity.
The Actuarial Present Value of credited projected benefits, is a standardized disclosure measure of the
present value of pension benefits, adjusted for the effects of projected salary increases and any step -rate
benefits, estimated to be payable in the future as a result of employee service to date. There are no
salaries paid to the Participants.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 22 of 24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012 DRAFT EXHIBIT 7
GASB 25 Notes to the Financial Statements
The significant actuarial assumptions used to compute the pension benefit obligation were:
Investment Yield: 2.00% for both present and future. The prior valuation assumed 2.50%.
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.
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 24 of 24
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2012 1 DRAFT EXHIBIT 8
GASB 25 Schedules of Funding Progress
After
Before
Changes
Changes
a. Present Value Fut Bfts:
934,703
876,187
b. Present Value Fut Entry Age NC:
152,994
133,225
c. Entry Age Actuarial Liability (a - b):
--------------
781,709
--------------
742,962
d. Plan Assets:
849,903
849,903
e. Unfunded Entry Age Actuarial Liability (c - d):
--------------
-68,194
--------------
-106,941
Entry Age Normal Cost:
24,003
21,763