Item C18
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 18. 2006
Division:
Emergency Services
Bulk Item: Yes X
No
Department: Fire Rescue
Staff Contact Person: Susan Hover
AGENDA ITEM WORDING: Acceptance of the Monroe County Length of Service Award Program
(LOSAP) actuarial valuation report for the Plan Year 2006.
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 valuation report.
TOTAL COST:
$19.233.00
BUDGETED: Yes ---X- No
141-11500-530340
COST TO COUNTY: $19,233.00
SOURCE OF FUNDS: Ad valorem taxation
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH_ Year
APPROVED BY: County Atty N/ A
OMB/Purchasing N/ A
Risk Management N/ A
DOCUMENTATION:
Included X
Not Required
DISPOSITION:
AGENDA ITEM #
ES:<
Revised 8/06
MEMORANDUM ATTACHMENT TO AGENDA ITEM SUMMARY
Meeting Date: October 18,2006
Division:
Emergency Services
Bulk Item: Yes ~
No
Department: Fire Rescue
Staff Contact Person: Susan Hover
AGENDA ITEM WORDING: Acceptance of the Momoe County Length of Service Award Program
(LOSAP) actuarial valuation report for the Plan Year 2006.
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 VIT, 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 valuation report.
~ MOUTON
III &COMP~ INC.
ACTUARIES AND PENSION ADMINISTRATORS
September 25, 2006
Monroe County Board of County Commissioners
c/o Chief Clark Martin
490 63rd Street
Marathon,FL 33050
Subject:
Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
January 1, 2006 Actuarial Valuation
Dear Chief Martin:
Enclosed is the draft of the actuarial valuation for the Monroe County LOSAP plan.
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, 2006
# J O_'\.~
!iJ b,uj w liJ
September 25,2006
Monroe County Board of County Commissioners
c/o Chief Clark Martin
490 63rd Street
Marathon,FL 33050
Dear Plan Administrator:
Weare pleased to present the attached Report as of January 1, 2006, covering the actuarial
aspects of the "Monroe County LOSAP" for the Plan Year ending December 31, 2006 and the
County's fiscal year ending September 30, 2007.
A brief overview ofthe results can be obtained by looking at the following figures for the
past three years:
2004 2005 2006
Iiem 'Phm Y e~r 'Pbn y e~r Pl~n Ye~r
Participants 189 147 73
Covered Payroll $ na $na $na
Total Plan Normal Funding * $58,904 $61,050 $19,233
Florida Required Funding ** $64,092 $60,877 $24,233
* 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, most especially the
withdrawal of the Key Largo departments, which resulted in a drop in the funding costs. The two
remaining inactive participants shown for Conch Key in the previous valuation were removed as we
determined that they were not vested in their benefits.
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,
including the monies previously allocated to Conch Key, to the other participating departments.
Should additional vested participants arise from the 2006 census, we will include them with the
next 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
September 25, 2006
Page Two
Additionally, the actual 3-year average of 1.35% and the 5-year average of .85%, as shown
on page 8 of the valuation report, are below the previous interest assumption of 4.0%. We had
lowered the assumed interest rate last year and will continue to monitor the investment returns. The
plan has continued to invest in what appears to us to be a short term cash equivalent. The plan can,
and should, consider longer horizon investments, since the plan's obligations are not short term. To
reflect the plan's continuing very low investment return, we have lowered our valuation interest
assumption to 3.00%.
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
September 25~ 2006
ACTlTARTAL REPORT
PLAN:
Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
PLAN YEAR:
January 1, 2006 through December 31,2006
SPONSOR FISCAL YEAR: October 1, 2006 through September 30,2007
V ALUATION DATE:
January 1, 2006
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 fmancial 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 plan1s 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 VIT, Chapter 112, Florida Statutes. There
is no benefit or expense to be provided by the plan and/or paid from the plan1s 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 #05-2773
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, 2006
TABLE OF CONTENTS
EXHIBIT 1 VALUATION RESULTS
Schedule A - Plan Description - After Changes
Schedule A - Plan Description - Before Changes
Schedule B - Development of Current Yearls 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
1
2
3
4
5
5
5
6
6
7
7
8
EXHIBIT 2 P ARTIClP ANT DEMOGRAPHICS
Schedule A - Coverage
Schedule B - Participant Reconciliation
9
10
EXHIBIT 3 PLAN ASSET INFORMATION
Schedule A - Statement of Net Assets Available
for Benefits at Market Values
Schedule B - Statement of Changes in Net Assets
Available for Benefits
11
12
EXHIBIT 4
PLAN SUMMARY
13
EXHIBIT 5
COST METHOD AND ASSUMPTIONS
16
EXHIBIT 6
PENSION COST RATIONALE
18
EXHIBIT 7
GASB 25 INFORMATION
19
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MONROE COUNTY. FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARO PlAN
Page I of:l2
Aotuari.1 Vah"uion.. or JanlUll)' I, :l006
CURRENT VALUATION ReSULTS
~HlalTI
Plan Dese,iplion
S,hc<lul. A
Aeltml'ial Study.. or:
OI-Jan-06
Value
Compleled monlhi 10 partieip'le
o
Ye"" ofCrediled SeMe. Required 10 be Fully Vesled:
10
Maximum number or-c-rcdited S-=-rvice McnUlS nl prognll11 inccpllOl1:
For vesling Pl1IjlQSes:
For benem ",'ual Pl1IjlQSes:
no
l2
Firsl Yeur ror which Relroactive D:enelil Accrual Servicc].5 Gr.lJlIed~
1991
AlmuaL Benefil Accrued for each compldcd )'carnfscrvicc
180
M..imum Annual ae",,(,1.
4,500
P.....nl V.lue of AMual an Earned@ NRA:
I.S81
Presenl value ofm",im"," bene(,l@ NRA;
39.S37
Ime""l AdjllSlmem 10 Move N0m1.1 Costs 10 end orv.lu:uion Year:
1.02992
Re.ap orResults:
Aner Change
hu('rcst Rate:
3.000/0
DisLric~
parti. Actlve PltsCnt Presel1t TOlal Present Aggregale Average
Parti- eiparllS Not Ineligible V.lue of V.lue of Prcscn1 Allocat.d Valu. or FUI"'e FUIUfe Currem
cipanLS V.lued Accruing Parti- Ina.cL~vC8 Ful. Be",,(,LS Fm. aenem. V.lue of Actuarial Future Service Service Nonnal
RC]lQfled Active B<nefiLS cipanlS Valued AcllVC Jruu;:lil/e Ful. Bene(,LS AsselS NonnalCoolS Annuity Annuity COOIEDY
BigC<lJlpill
13
9
97,992 3.891 101,883 73.838 :l8,Q4S 99.083 7.622 3,790
81,961 9,SS3 91,514 89,795 1,719 92.126 8.37S :lll
0 0 0 0 0 0.000 0.000 0
0 1l0,9S3 0 110.9;3 110,9;3 0 0.000 0.000 0
0 114.161 0 114,161 114,161 0 0.000 0.000 0
0 130,429 0 130.429 90,27S 40,IS4 ;1.S89 HS9 8,016
0 78,049 0 18,049 9:l.8S6 (14,807) 60.604 6.734 0
166.773 8,243 17S,0l6 129,061 4S,9SS 118.063 6.SS9 7,:l16
780,318 21,687 802,005 700.939 101,066 421A6S S.773 19,233
Big Pine
II
10
o
Conch Key
o
o
o
o
Key Urgo Fire
o
6
40
Key Lorgo eMS
o
23
Uylon
10
o
10
6
SugarloorKey
o
9
11
Tilivcmicr
18
IS
Monroe Couuly
73
:lS
4S
99
NOIe' AUoc.led.o ..to maketlte ...elS lite same level ofllte 10llll presenl Value of Future BenefilS ror.lI ongoing depurtmenlS.
Not..:~ OnlyP.anidpams ....ilb J or more moolhs-oC:;.,r.,.iet: illlhc priorpL11l; y.:;uorwho:m: ~'1.':i1..x1 ~n a benefll are ~il;t""'d
Expense cost shown on page 3.
..~
pj~ !
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AlVARO PLAN
P.ge 2 of22
Actuari.1 Valualion OS of Jon""')' I, 2006
CURRENT VAWATION RESULTS
EXHIBIT 1
Plan Description
Schedule A
Aclwuial Sludy os or:
OI.Jon.06
V.lue
Completed monlh:; 10 pilClicipatc
o
Year< ofCrcdiled Service RC<juired 10 be Fully Vesled:
10
Ma."(lmwn nwnber of cred~tcd Scrvke Months al program inccplion~
For veslins purpoo..,
For benefil .ccrual purposes:
120
12
First Ycut {'Of whkh Relrooctive Benefit Accrual Service Es Granted:
1992
Ann""l Benefll Accrued ror e""h eomplcled yoor or service
180
Maximum AnnU:J.1 Bc:ncrit~
4,500
presem V.lue of Ann""l Bn Earned@ NRA:
1,5E1
Present value ofmoximwn benefil@NRA:
39,537
[ntercs:t AdjLL5-LmenllO Move Normal CoslS La End orValualion Year:
1.02992
Recop u1Rosulls:
Berore Change
I nl,resl R.te:
3.0011/..
District
Parti. Active PrcscUl Prescm Tolal Pres:cm Aggregale Avei.Jg.C'
Porli. cipanlS NO! Ineligible Value of V.lue or P-rescnL Alloc'led Value or Future FuMe Currenl
cipOllts Valued Accruing parti- lrul;cliv~ FuL Bern:fits Fut Beneflts Value of Aeluariol Futw"c Service S.crvice Normal
Repor1ed A<:lLVC Bcnefits eiponts Valued Active Inactive FUI. Benefits Assets Normal Costs AMuily ATUluily Cost EOY
Big Coppiu
Conch Key
o
o
o
o
77.378 3,I8S 80.S63 76,768 3,79S 93.394 7.184 549
64,948 8,367 73,315 91,136 (17,82l) 86.690 7.881 .2,351
0 0 0 0 0 0 MOO 0.000 0
0 93,129 0 93,129 93,129 0 0.000 0.000 0
0 101,871 0 101,871 101,871 0 0.000 0.000 0
0 112,917 0 112,917 100.246 IZ,671 49.409 4.941 2,667
0 66.494 0 66,494 92,854 (26.360) 57.857 6.429 .4,264
138,382 6.016 144,398 144,934 (536) 111.338 6.185 .90
655,119 17,568 672.687 700,938 (28,251) 398.688 6.210 .3,489
13
Big Pine
II
10
o
Key largo Fire
o
40
Key Largo EMS
~
o
23
La)<1on
10
o
10
susorloar Key
9
o
II
Ta'o'emier
18
IS
Monroe CWIIlY
73
Z~
4S
99
NO;ll,!: On.ly P;uti~ip;rnl$ \.Vl~h 3 u: I1lQ.I'e moo.lm. of::cnioo In tOO priQf pbn )Ctl.f (If ....110 an.: .~;t;\I in a h:"'1ld,:1i1 an: \'".lIUL1..l
Expense <ost sllown 00 page 3.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 3 of22
Actuarial Valuation as of January 1,2006
CURRENT VALUATION RESULTS
EXHIBIT 1
Development of Current Year's Costs
Schedule B
Before Change After Change *
Current Year Current Year Prior Year
0] -J an-2006 0] -J an-2006 o I-Jan-2005
A. Present Value of Future Obligations: -
1. Active Members 655,] 19 780,318 900,80]
2. Inactive Members 17,568 21,687 67,490
3. Retired Members 0 0 0
4. Survivors on Benefit 0 0 0
5. Disabled Members 0 0 0
--------------- ..................................... ---------------
Total Actuarial Accrued Liability: 672,687 802,005 968,291
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 700,939 700,939 626,637
--------------- ...-.....-..--...------ ---------------
D, Amount to be Funded by County (A-B-C) (28,252) 101,066 341,654
(Unfunded Actuarial Accrued Liability) --------------......-.-
E. Aggregate Nonnal Costs from District Calculations (4,207) 19,233 56,050
F. Expenses not paid directly by the County 5,000 5,000 5,000
G. Interest Adjustments not included elsewhere 0 0 0
--------------- --------------- ------......................
H. Total Plan Normal Costs = GASB 25 ARC 793 24,233 61,050
............................----- -- ----
......_......~.............,..,.. ----
* Change is the crediting of 1991 as an additional year of potential past credited service.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 4 of 22
Actuarial Valuation as of January], 2006
CURRENT V ALUA TION RESULTS
EXHrBIT 1
Development of Historical and Projected Funding Standard Account Balances
Schedule C
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
3.00%
Before Changes After Changes
Proj ected Projected
Current CUlTent
Plan Year Plan Year Prior Year
o I-Jan-2006 o I-Jan-2006 01-Jan-2005
639 639 166
26 19 7
-4,207 19,233 56,050
5,000 5,000 5,000
0 0 0
0 0 0
793 24,233 61,050
0 0 61,050
0 0 0
0 0 466
0 0 61,516
-128 -23,575 639
----- ...........-..................... -----
--- ------ ....................----
A. Beginning Balance
Interest Adjustment to End of Year
C. Plus Credits to Account
I. Contributions Credited During the Year
2. Amortization Charges (net) (BOY)
3. Interest Adjustment to End of Year
D. Ending Balance*
4.00%
Date Made Amount Interest
14-0ct-05 5,000 43
24-0ct-05 28,707 217
24.0ct-05 15,409 ] 16
24-0ct-05 11,934 90
-----------
61,050 466
--- -------
------ ..........................-.--
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 5 of22
Actuarial Valuation as of January 1,2006
CURRENT V ALUA TION RESULTS
EXHIBIT I
Participant Data
Schedule D
Next
Current Year Prior Year Prior Year
o I-Jan-2006 o I-Jan-2005 o I-J an-2004
Number Included
Active Members 70 136 150
Inactive Members 3 13 38
Retired Members 2 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
700,939
626,637
562,738
Market Value
700,939
626,637
562,738
Liabilities
Schedule F
Total
Before Changes After Changes
Current Current Prior
Plan Year Plan Year Plan Year
01-1an-2006 o I-Jan-2006 o I-Jan-2005
655,119 780,3] 8 900,80 I
17,568 21,687 67,490
0 0 0
0 0 0
0 0 0
--------------- ............................ .._...................-.....--
672,687 802,005 968,291
0 0 0
0 0 0
--------------- ------------....... ...............................-
0 0 0
------------~-- --------------- --------....--..--
672,687 802,005 968,29]
(700,939) (700,939) (626,637)
..........H............... .......-.....-........----- ---------------
(28,252) ]01,066 341 ,654
Present Value of Future Benefits
Active Members
Inactive Members
Retired Members
Current Beneficiaries
Disabled Members
Less Present Value
Future Member Contributions
Future State Contributions
Actuarial Accrued Liability
less Actuarial Plan Assets
Unfunded Actuarial Accrued Liability
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 6 of22
ActuarialValuation as of January 1, 2006
CURRENT VALUATION RESULTS
EXHIBIT 1
Actuarial Present Value of Accrued Benefits
Schedule G
Before Changes After Changes
CUlTen t Year Current Year Prior Year
o I-J an-2006 01-Jan-2006 01-Jan-2005
Vested Accrued Benefits ~
Inactive Members & Beneficiaries 4,461 5,942 67,471
Active Members 323,300 376,936 332,688
.....-...-----..---.. ......------------ --------------
Total 327,761 382,878 400,159
Nonvested Accrued Benefits 64,056 78,722 116,648
-------------- .............--------- --------------
Total 391,817 461,600 516,807
Statement of Changes in Total Actuarial Present Value
of All Accrued Benefits
Schedule H
Before Changes
Current Year
01-Jan-2006
After Changes
Current Year
01-Jan-2006
Present Value of Accrued Benefits at
Beginning of Year
516,807
516,807
Increase (Decrease) During Year Attributable
to (where applicable):
Plan Adoption
Plan Amendment
Changes in Valuation -- interest rate
Increase due to Survivorship
Increase for less Interest Discount
Benefits Accrued, net of excluded participants
Benefits Paid
Other Changes - terminations
o
o
o
o
23,256
10,114
(3,420)
(154,941 )
o
13,727
56,056
o
23,256
10,114
(3,420)
(154,941)
Net Increase (Decrease)
(124,990)
(55,207)
Actuarial Present Value of Accrued
Benefits at End of Year
391,817
461,600
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 7 of22
Actuarial Valuation as of January 1, 2006
CURRENT VALUATION RESULTS
EXHIBIT 1
~-----------------------------------------------------------------------------------------
-------- --
Pension Cost
Schedule I
As % of Payroll
Before Changes After Changes
Current Current Prior
Plan Year Plan Year Plan Year
OI-Jan-2006 o 1-J an-2006 01-Jan-2005
~ ~
(4,207) 19,233 56,050
4,361 4,361 4,834
(26) (19) (7)
----------- ---..................... ---------....
128 23,575 60,877
N/A N/A N/A
0 0 0
N/A N/A N/A
0 0 0
N/A N/A N/A
Required Funding Costs
Current Administrative Expense
Interest Adjustment
Total Required County Contribution
Estimated Participant Contributions
As % of Payroll
Estimated Premium Tax RefWld
As % of Payroll
Remaining AmoWlt to be Contributed
by COWlty
As % of Payroll
128
N/A
23,575
N/A
60,877
N/A
Past Contributions
Schedule J
For the fiscal year ended 12/31/05
Total Contribution Required
Actual Contribution Made By:
State
COWlty
Participants
60,877
o
61,050
o
61,050
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 8 of22
Actuarial Valuation as of January 1,2006 CURRENT V ALUA TION RESULTS EXHIBIT I
Comparison of Actual to Assumed Earnings Schedule K
-----------------------------------.........-....-.........-.....-......................-.............---..---..-........-.......................------------------......_..__.._-_.._------------------------------------_.._-----
(Assuming uniform income and disbursements, Employer Contributions assumed at End of Year)
Benefits
Valuation Beginning Ending Investment Other and
Date Assets Assets Earnings Income Expenses
3 J -Dec-1999 0 150,1l3 0 0 0
31-Dec-2000 150,113 313,548 2,751 0 0
31-Dec-200 I 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
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-200 1 9,611 15,572 3.09% na na 5.00%
31-Dec-2002 (4,116) 19,260 -1.07% 1.28% na 5.00%
31-Dec-2003 9,169 23,736 1.93% 1.32% na 5.00%
31-Dec-2004 (5) 27,926 0.00% 0.29% 0.58% 5.00%
31-Dec-2005 13,252 24,913 2.13% 1.35% 0.85% 4.00%
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.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Page 9 of 22
Actuarial Valuation as ofJanuary 1,2006
P ARTICIP ANT DEMOGRAPHICS
EXHIBIT 2
Coverage
Schedule A
This valuation includes the following 109 persons covered by the plan as of December 31, 2005.
Category
Number
Amount
Active Participants
Other Inactive Participants
Retirees on Benefit
Survivors on Benefit
Participants on Disability Benefit
Terminated Vested Participants
68
3
2
o
o
o
o *
o **
o **
o **
o **
o **
TOTAL
73
N/A
* Annual covered pay only
** Annual Benefit
63 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, 2005.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 10 of22
Actuarial Valuation as of January 1,2006
P ARTICIP ANT DEMOGRAPHICS
EXHIBIT 2
----------------~---------------------~~--------------------------------------------
-----~~-------------------------------------------------------------------~--------
Participant Reconciliation
Schedule B
Retired
Survivor
on
Benefit
Disabled
Inactive
Total
Active
on
Benefit
Participants at 01-Jan-2004 136 0 0 0 13 149
New 1
Retirement -2 2 0
Death 0 0
Non-Vested Tenrunation -67 -10 (77)
Vested Termination 0 0
Lump Sum Settlement 0 0
New Survivors 0 0
Participants at 31-Dec-2004 68 2 0 0 3 73
--- ---- --- ............-.--
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD P
Actuarial Valuation as of January 1, 2006
PLAN ASSET INFORMA nON
Statement of Net Assets Available for Benefits*
31-Dec-2004
Market Value
Money Market
Accrued Contribution - Employer
626,637.19
0.00
626,637.19
Liabilities
Accounts Payable
Deferred Revenues
0.00
0.00
0.00
Net Assets Available
626,637.19
* As reported by the County
Page 11 of22
EXHIBIT 3
Schedule A
31-Dec-2005
700,938.69
0.00
700,938.69
0.00
0.00
0.00
700,938.69
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE A WARD PLAN
Actuarial Valuation as of January 1,2006
PLAN ASSET INFORMATION
Page 12 of22
---------------------------------------------------------------------~----------~~~
---~-----------------------------..................--...-.-........................._......-..,..-.,.....".............._-----_............__........................._......
EXHIBIT 3
Statement of Changes in Market Value of Net Assets
Plan Year Ending:
31-Dec-2004
+
INCREASES
Earnings on Investments
Unrealized Appreciation (Depreciation)
8,412.36
0.00
State Insurance Contributions
Employee Contributions
Employer Contributions:
0.00
0.00
63,904.00
Accrued
0.00
63,904,00
72,316.36
DECREASES
Expenses
Professional Fees
Professional Fees
PMA Fees
(4,200.00)
(4,200.00)
(J 7.39)
(8,417.39)
Paid to Participants
Retirees
Survivors
Disabled
Overpayment due to City
0.00
0.00
0.00
0.00
0.00
(8,417.39)
Net Increase/(Decrease)
63,898.97
NET MARKET VALUE OF ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year
562,738.22
End of Year
626,637.19
61,050.00
0.00
(4,200.00)
0.00
0.00
(3,420.00)
0.00
0.00
0.00
Schedule B
31-Dec-2005
20,87] .50
0.00
0,00
0.00
61,050.00
8],921.50
(4,200.00)
(3,420,00)
(7,620.00)
74,301.50
626,637.19
700,938.69
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES A WARD PLAN
Actuarial Valuation as of January 1, 2006 Page 13 of22
PLAN SUMMARY
EXHlBIT 4
1. Geneml Tnforrnfltion
(a) Plan Name: Monroe County, Florida Volunteer Firefighter and
Emergency Medical Services Length of Service Award Plan
(b) Plan Y ear: 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. Rligjhility for Pmti~irMion
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. Yeflrs of~ervi~e
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, 2006 Page 14 of22
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. r.nntrihntinn~
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. Nnrmal Retirement Renefit
(a) Eligibility: Completion of 10 years of service.
(b) Benefit: An annual benefit based on the following schedule:
Renefi t Scn eon] e
Years of
Service
Monthly
Renefit
Annual
Renefit
25 $375 $4500
24 360 4320
23 345 4140
22 330 3960
21 315 3780
20 300 3600
19 285 3420
18 270 3240
17 255 3060
16 240 2880
15 225 2700
14 210 2520
13 195 2340
12 180 2160
11 165 1980
10 150 1800
(c) Form of Payment: Benefit payments are payable monthly for a period often years.
MONROE COUNTY. FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES A WARD PLAN
Actuarial Valuation as of January 1,2006 Page 15 of22
PLAN SUMMARY
EXHlBIT 4
6. Vesting
(a) Eligibility: Completion of 10 years of service prior to attainment of Normal
Retirement Age
(b) V olunteer 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 Teclmician 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. DeBth Benefits prinrtn AttHinine NnrmHl Retirement Aee
(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 SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2006 Page 16 of22
COST METHOD
EXHIBIT 5-A
(;O~T METHOD: A variation of the aggregate actuarial cost method is being used to value the
benefits. The present value of the projected benefits is calculated using the provisions of
the plan and the actuarial assumptions. The actuarial value of assets is based on market
value. The balance to be funded is allocated over the present value of a level annuity for the
average future service of active participants. Total plan results are determined by summing
the results calculated by aggregating participants by fire district, and in the case of Key
Largo, separately by fire persOlmel and EMS persOlmel. A department's normal cost is not
allowed to become negative. Expenses are shown unallocated and are assumed to be paid
directly by the County.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as ofJanuary 1,2006
Page 17 of22
ACTUARIAL ASSUMPTIONS
EXHIBIT 5 - B
---------------------------------------------------------------------------------
-------------..............................-..............................--....................................................----.............................-----------------------------
Actuarial Study as of:
01-Jan-2006
Valuation Date Adjustment:
o
Completed months to participate
o
Maximum number of credited Service Months at program inception:
For vesting purposes:
For benefit accrual purposes:
120
12
180
4500
Yrs Vesting
0 0%
10 100%
Arumal Benefit Accrued for each completed year of service
Maximum Annual Benefit Accrued for each completed year of service
Vesting Schedule
Termination Assumption: Godwin's Table 1, V Select & Ultimate Table, with 50% termination prob. for YOS<l.
Year First Allowed for Benefit Accrual Purposes:
After:
Before:
I: 3.00%
v: 0.97087
d: 0.02913
a( 10)due: 8.78596
i(12): 0.247%
v(12): 0.99754
d(12): 0.00246
a(120)due: 104.01950
3,000 341.45
39,537
1,581
1991
1992
16
Interest rate ftmction assumptions
105.43152
Maximum annual benefit accrua11imited by IRC
Present value of maximum benefit:
Present value of annual benefit accrual
Maximum Credited Years for Benefit Accrual as ofthe Valuation Date:
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES A WARD PLAN
Actuarial Valuation as of January 1, 2006 Page 18 of22
PENSION COST RATIONALE
EXHIBIT 6
When one speaks of pension costs, one must distinguish between lItrue" costs and lIactuarialfl 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 methodfl, 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
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2006
Page 19 of22
EXHIBIT 7
GASB 25 Notes to the Financial Statements
a. (I)
The above PERS administrator is a single-employer with only one contributing county
employer and no nonemployer and no contributors.
(2)
Only Volunteer Firefighters and EMS Volunteers are eligible at the sole discretion ofthe
Plan Administrator. Any Volunteer who was age 60 or older on January I, 1999 shall not be eligible
to participate. In addition, any Volunteers who are age 60 or older at the time they commence
volunteer service, or who commence service at a time that will not permit them to earn ten
Years if Service by their Normal Retirement Age shall not be eligible to participate in this Plan.
Inactive Participants by category:
Retirees currently receiving benefits
Beneficiaries currently receiving benefits
Terminated employees entitled to benefits
2
o
3
5
Fully vested and past normal retirement date
Partially vested
Non-vested
31
o
42
73
(3)
The benefit provisions are as follows:
Benefit Schedule
Monthly
Benefit
$375
360
345
330
315
300
285
270
255
240
225
210
195
180
165
150
Annual
Benefit
$4,500
$4,320
$4,140
$3,960
$3,780
$3,600
$3,420
$3,240
$3,060
$2,880
$2,700
$2,520
$2,340
$2,160
$1,980
$1,800
Years of
Service
25
24
23
22
21
20
19
18
17
16
15
14
13
12
II
10
(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) andlor 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 VlI,
Florida Statutes.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2006
Page 20 of 22
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. govenunent 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 govenunental 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
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2006
Page 21 of22
EXHIBIT 7
GASB 25 Notes to the Financial Statements
The significant actuarial assumptions used to compute the pension benefit obligation were:
Investment Yield: 3.00% for both present and future. The prior year used 4.00%.
Mortality Pattern: Not applicable
Salary Increases: Not applicable
Termination:
Godwin's Table 1, V Select & Ultimate Table, with 50% termination prob. for YOS<I.
The System's funding policy, as mandated by ordinance, provides for actuarially determined
periodic contributions
The Actuarial Funding Method is a variation of the aggregate actuarial cost method. The
present value of the projected benefits is calculated using the provisions of the plan
and the actuarial assumptions. The actuarial value of assets includes only the value of assets.
There are no member contributions, nor any State premium tax refunds.
The GASB 25 Actuarial Funding Method is the Aggregate Method. Since there is no salary,
allocations are based on service. Aggregation is used by fire district, in order to permit the
county to allocate costs by district. Under this method, gains and losses are spread over
future normal costs.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1,2006
Page 22 of22
EXHIBIT 7
GASB 25 Schedules of Funding Progress
The actuarially determined normal cost as of
31-Dec.2005 $24,233
% of Annual
Amount Payroll
61,050 na
0 na
Contributions actually made by employees and employer were:
County
Participants
As discussed in paragraph 87 of GASB-25 , a schedule offunding progress is not required under the
aggregate cost method, which the plan uses.
....................H'..H.'..................................................................1+............,........................................................................................................................L.L...................................................
.....................................................................................................................................H......HH......................H~H............~.~.........................................,...,...................................................
Summary of Fund Progress by Plan Years
111/2005 1/1/2004 1/1/2003 1/1/2002 111/2001 1/ 1/2000 111/1999
to to 10 to to to to
1213112005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000 12/31/1999
Increases to funds
Employer Contribution 61,050.00 63,904.00 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 0.00 0.00
Stale Contribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Contributions 61 ,050.00 63,904.00 78,840.00 89,437.00 66,250.00 160,684.00 150,113.00
Investment Income 20,871.50 8,412.36 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 0.00 0.00
Total Increases 81,921.50 72,316.36 88,009.20 93,720.59 80,070.69 163,434.86 150,113.00
Decreases to Funds
Benefit payments (3,420.00) 0.00 0.00 0.00 (3.420.00) (3,420.00) 0.00
Admin expenses (4,200.00) (8,417.39) 0.00 (8.400.00) (4,21O.12) 0.00 0.00
Total Decreases (7,620.00) (8.417.39) 0.00 (8,400.00) (7,630.12) (3,420.00) 0.00
NellncreaselDecrease 74,301.50 63,898.97 88,009.20 85,320.59 72,440.57 160,014.86 150,113.00