Item C24BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Au ust 20 2008
Bulls Item: Yes X No
Division: Emergency Services
Department: Fire Rescue
Staff Contact Person/Phone 4: 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 2007; transfer of funds for Plan Year 2007 and
1990 into the LOSAP Trust Fund; approval of Resolution authorizing each participant in LOSAP to be
credited with additional year of service.
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
Years 2007 and 1990 into the LOSAP Trust Fund in the amount of $28,477.
TOTAL COST: $28,477.00* BUDGETED: Yes X No
*Cost of year 2007 is $26,362.00; cost of year 1990 is $2,115.00, computing to a net cost of
$28,477.00 to accept both years. 141-11500-530340
COST TO COUNTY: $28,477.00 SOURCE OF FUNDS: Ad valorem taxation
REVENUE PRODUCING: Yes o AMOUNT PER MONTH Year
APPROVED BY:County Atty O urchasing Risk Manag emen NIA
IV
DOCUMENTATION: Included X Not Required
DISPOSITION:
AGENDA ITEM 9
Revised 11/06
James Callahan
Emergency Services
RESOLUTION NO. -2008
A RESOLUTION OF THE BOARD COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA, AUTHORIZING EACH PARTICI-
PANT IN THE LENGTH OF SERVICE AWARDS PROGRAM (LOSAP)
TO BE CREDITED WITH AN ADDITIONAL YEAR OF SERVICE
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA, as follows:
1. Each Participant in the Length of Service Awards Program ("LOSAP") shall be credited
with an additional Year of Service actually earned in the Year 1990, providing the Participant:
(A) was enrolled as a member of the non-profit corporation or MSTU; and
(B) was eligible for and received reimbursement of expenses for nine or more
months of the Year 2007.
2. The total number of Years of Service that may be credited for service accrued prior to the
Effective Date of LOSAP shall not exceed a maximum of one Year of Service actually earned by
each Participant prior to the Effective Date of LOSAP.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a regular meeting of said Board held on the day of , 2008.
Mayor Mario Di Gennaro
Mayor Pro Tem Charles "Sonny" McCoy
Commissioner Dixie M. Spehar
Commissioner George Neugent
Commissioner Sylvia Murphy
(SEAL)
Attest: DANNY L. KOLHAGE, Clerk
Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
Mayor/Chairman
MONROE COUNTY ATTORNEY
AP ROVE' -• RM•
YN"i'PAI,Ha'L
ASS€c N 'yt NTY ATTORNEY
Date— �`
Monroe County Division of Emergency Services
490 63`" Street, Marathon, FL 33050
Phone: (305) 289-6088 Fax: (305) 289-6007
ADDITIONAL INFORMATION MEMO
TO: Monroe County Board of County Commissioners
FROM: James Callahan, Acting Fire Chief
Emergency Services Division
RE: Agenda Item: Acceptance of the Monroe County Length of Service Award
Program (LOSAP) actuarial valuation report for the Plan Year 2007;
transfer of funds for Plan Years 2007 and 1990 into the LOSAP Trust
Fund; approval of Resolution authorizing each participant in LOSAP to be
credited with additional year of service.
DATE: August 20, 2008
Ordinance No 026-1999, adopted by the Board of County Commissioners on June 9, 1999,
provided that upon reaching the age of 60, each volunteer firefighter or EMS provider who had at
least 10, but not more than 25 years of active service would receive a pension benefit in a
predefined amount based on length of service. The same Ordinance further provided that for each
Plan Year beginning in 1999, the BOCC would contribute an amount necessary to fund the
pension benefit, based on an actuarial report that projected the cost of that future pension benefit
in today's dollars. In addition, each year, the BOCC could elect to contribute an amount to
provide a pension benefit for a past year provided that the volunteer was an active member during
that time. Thus, in 1999 the BOCC funded the Plan with an amount equal to provide a pension
benefit not only for verified active 1999 volunteers, but also for 1998 volunteers.
In each subsequent year, after reviewing and accepting the actuarial report, the BOCC has
approved the contribution of funds not only for the immediate Plan Year, but also for one
additional successive past year.
The LOSAP Trust Fund balance currently stands at $725,508. The actuarial report for Plan Year
2007 shows that the amount necessary to fund future obligations for Plan Year 2007 is $26,362.
The same actuarial report shows that the amount necessary to cover pension benefits for
volunteers in Plan Year 1990 is $2,115. These figures represent the actual fixed cost for these
two respective Plan Years, and are computed by multiplying (a) number of qualified volunteers in
that Plan Year, by (b) the annual benefit shown in Section 5 of the LOSAP (Ordinance 026-1999),
and by (c) the statistical probability that the volunteer will actually receive benefits as determined
by the actuary. Overall, the net cost for accepting both years is $28,477.
Staff is now asking for the acceptance of the actuarial report and transfer funds into the LOSAP
Trust Fund in the amount of $28,477. These funds were approved in the Fiscal Year 2008 budget
process.
MONROE COUNTY
FLORIDA VOLUNTEER FIREFIGHTER
AND EMERGENCY MEDICAL SERVICES
LENGTH OF SERVICE AWARD PLAN
ACTUARIAL REPORT
JANUARY 1, 2007
REVISED DRAFT
June 8, 2008
Monroe County Board of County Commissioners
c/o Acting Fire Chief James Callahan
490 63rd Street
Marathon, FL 33050
Dear Plan Administrator:
We are pleased to present the attached Report as of January 1, 2007, covering the actuarial
aspects of the "Monroe County LOSAP" for the Plan Year ending December 31, 2007 and the
County's fiscal year ending September 30, 2008.
A brief overview of the results can be obtained by looking at the following figures for the
past three years:
2005 2006 2007
Item Plan Year Plan Year Plan Year
Participants 147 73 83
Covered Payroll * $ na $ na $ na
Current EOY Plan Costs ** $60,877 $24,233 $28,477
assuming an additional years past service benefit
* * includes provisions for expenses and provisions for Funding Standard Account debit
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 fixture census,
we will include them with the fixture 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 Commissimers
June 8, 2008
Page Two
The plan's investment return continues to be much below current market rates. We have
lowered our valuation interest rate assumption to 2.5%, which represents an increase in the present
value of benefits of $58,478. 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. Should the plan's investment return continue its past patterns,
fixture valuations will continue to lower the discount rate assumption.
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
June 8, 2008
ACTUARIAL REPORT
PLAN: Monroe County, Florida Volunteer Firefighter and Emergency
Medical Services Length of Services Award Plan
PLAN YEAR: January 1, 2007 through December 31, 2007
SPONSOR FISCAL YEAR: October 1, 2007 through September 30, 2008
VALUATION DATE: January 1, 2007
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 #08-2773
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, 2007
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
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MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 3 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2007 CURRENT VALUATION RESULTS EXHIBIT I
Development of Current Years Costs Schedule B
Before Change
After Change *
Current Year
Current Year
Prior Year
01-Jan-2007
01-Jan-2007
01-Jan-2006
A. Present Value of Future Obligations:
1. Active Members
558,521
570,916
790,318
2. Inactive Members
262,904
262,904
21,687
3. Retired Members
0
0
0
4. Survivors on Benefit
0
0
0
5. Disabled Members
0
0
0
Total Actuarial Accrued Liability:
------ -------
821,425
--------------
833,820
---------------
802,005
B. Less Present Value of:
1. Member Contributions
0
0
0
2, Florida Premium Tax Rebates
0
0
0
0
O
-------0-
C. Less Actuarial Plan Assets
725,508
725,508
700,939
D, Amount to be Funded by County (A-B-C)
—
95,917
-----------
108,312
---------------
101,066
(Unfunded Actuarial Accrued Liability)
--
—--
—
E. Aggregate Normal Costs from District Calculations
16,711
18,826
19,233
F. Expenses not paid directly by the County
5,000
5,200
5,000
G. Interest Adjustments not included elsewhere
0
0
0
H. Total Plan Normal Costs = GASB 25 ARC
----- --- -----
21,711
------------
24,026
---.-----
24,233
* Change is the crediting of 1990 as an additional year of potential past credited service.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND rage 4 of 22.
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January I, 2007 CURRENT VALUATION RESULTS E)GHBIT I
Development of Historical and Projected Funding Standard Account Balances
A. Beginning Balance
Interest Adjustment to End of Year
sub -total
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
I. Contributions Credited During the Year
2. Amortization Charges (net) (BOY)
3. Interest Adjustment to End of Year
D. Ending Balance'
Date Made Amount
17-Sep-07 19,233
0
0
0
19,233
Schedule C
Before Changes
After Changes
Projected
Projected
Current
Current
Plan Year
Plan Year
Prior Year
01-Jan-2007
01-Jan-2007
01-Jan-2006
-4,342
-4,342
639
-109
-109
19
-----------
-4,451
-----------
-4,451
---- -----._
658
16,711
18,826
19,233
5,000
5,200
5,000
0
0
0
2,50% 0
0
0
21,711
24,026
24,233
0
0
19,233
0
0
0
0
0
0
0
0
19,233
-26,162
------
-28,477
--------
-4,342
Interest
0
0
0
a
0
* Note: A positive ending balance represents the accumulation ofpast contributions in excess ofrequired minimums.
Such a balance is available to the sponsor in the current or future years to adjust normal finding 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 5 of 22
EMERGENCY MEDICAL SERVICES LENGTH
OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2007
CURRENT VALUATION RESULTS
EXHIBIT I
Participant Data
--------------------------------------------------------------------------------------------------------------------------------------------------------------------
Schedule D
Next
Current Year
Prior Year
Prior Year
OI-Jan-2007
01-,Tan-2006
01-Jan-2005
Number Included
-
Active Members
51
70
136
Inactive Members
30
3
13
Retired Members
2
2
0
Current Beneficiaries
0
0
0
Disabled Members
0
0
0
Total Annual PayroI I of Actives
0
0
0
Total Annual Benefits:
to Retired Members
5,850
3,420
0
to Current Beneficiaries
0
0
0
to Disabled Members
0
0
0
Assets Schedule E
Actuarial Value
725,508
700,939
626,637
Market Value
725,508
700,939
626,637
Liabilities
--------------------------------------------------------------------------------------------------------------------------------------------------------------------
Schedule F
Before Changes
After Changes
Current
Current
Prior
Plan Year
Plan Year
Plan Year
O1-Jan-2007
01-Jan-2007
01-Jan-2006
Present Value of Future Benefits
._._.
Active Members
558,521
570,916
780,318
Inactive Members
262,904
262,904
21,687
Retired Members
0
0
0
Current Beneficiaries
0
0
0
Disabled Members
0
0
0
Total
---------------
821,425
---------------
833,820
-------- -----
802,005
Less Present Value
Future Member Contributions
0
0
0
Future State Contributions
0
0
0
---------------
0
---------------
0
---------------
0
Actuarial Accrued Liability
---------------
821,425
---------------
833,820
---------------
802,005
less Actuarial Plan Assets
(725,508)
(725,508)
(700,939)
Unfunded Actuarial Accrued Liability
---------------
95,917
---------------
108,312
---------------
101,066
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 6 of 22
Actuarial Valuation as of January 1, 2007
CURRENT VALUATION RESULTS
EXHIBIT I
Actuarial Present Value of Accrued Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------------------
Schedule G
Before Changes
After Changes
Current Year
Current Year
Prior Year
0I-Jan-2007
01-Jan-2007
01-Jan-2006
Vested Accrued Benefits
_
<« _ _
Inactive Members & Beneficiaries
264,985
264,985
5,942
Active Members
261,722
280,332
376,936
Total
--------------
526,707
--------------
545,317
--------------
382,878
Nonvested Accrued Benefits
56,741
54,612
78,722
Total
--------------
581,547
--------------
599,929
--------------
461,600
Statement of Changes in Total Actuarial Present Value
of All Accrued Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------------------
Schedule H
Before Changes
After Changes
Current Year
Current Year
O1-Jan-2007
01-Jan-2007
Present Value of Accrued Benefits at
-
Beginning of Year
461,600
461,600
Increase (Decrease) During Year Attributable
to (where applicable):
Plan Adoption
0
0
Plan Amendment
0
20,675
Changes in Valuation -- interest rate
58,478
58,478
Increase due to Survivorship
0
0
Increase for less Interest Discount
13,760
11,467
Benefits Accrued, net of excluded participants
87,611
87,611
Benefits Paid
(5,850)
(5,850)
Other Changes - terminations
(34,052)
(34,052)
Net Increase (Decrease)
-
119,947
-
138,329
Actuarial Present Value of Accrued
Benefits at End of Year
581,547
599,929
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 7 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2007 CURRENT VALUATION RESULTS EXHIBIT 1
Pension Cost
Required Funding Costs
Current Administrative Expense
Interest Adjustment
Total Required County Contribution
As % of Payroll
Estimated Participant Contributions
As % of Payroll
Estimated Premium Tax Refund
As % of Payroll
Remaining Amount to be Contributed
by County
As % of Payroll
Past Contributions
For the fiscal year ended 12/31/06
Total Contribution Required
Actual Contribution Made By:
State
County
Participants
ScheduleI
Before Changes
After Changes
Current
Current
Prior
Plan Year
Plan Year
Plan Year
O1-Jan-2007
01-Jan-2007
01-Jan-2006
16,711
18,826
19,233
9,342
9,542
4,361
109
109
(19)
-----------
26,162
-----------
28,477
-----------
23,575
NIA
NIA
NIA
0
0
0
NIA
NIA
NIA
0
0
0
NIA
NIA
NIA
26,162 28,477 23,575
NIA NIA NIA
Schedule J
----------------------------------------------------------------------
23,575
0
19,233
0
19,233
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Page 8 of 22
Actuarial Valuation as of January 1, 2007 CURRENT VALUATION RESULTS EXHIBIT 1
Comparison of Actual to Assumed Earnings
(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
Schedule K
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
Valuation
Net
Expected
Actual
3 Year
5 Year
Assumed
Date
Increase
Earnings
Experience
Average
Average
Factor
31-Dec-1999
0
0
0.00%
na
on
5.00%
31-Dec-2000
2,751
7,506
1.83%
na
na
5.00%
31-Dec-2001
9,611
15,572
3,09%
na
na
5.00%
31-Dec-2002
(4,116)
19,260
-1.07%
1.28%
na
5.00%
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%
31-Dec-2006
5,336
20,876
0.77%
0.96%
1.04%
3.00%
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 AWARD PLAN
Page 9 of 22
Actuarial Valuation as of January 1, 2007 PARTICIPANT DEMOGRAPHICS EXHIBIT 2
Coverage
This valuation includes the following 83 persons covered by the plan as of December 31, 2006.
Category
Number
Amount
Active Participants
51
0
Other Inactive Participants
30
0 **
Retirees on Benefit
2
0 **
Survivors on Benefit
0
0 **
Participants on Disability Benefit
0
0 **
Terminated Vested Participants
0
0 **
TOTAL
83
NIA
* Annual covered pay only
** Annual Benefit
20 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, 2006.
Schedule A
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 10 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2007 PARTICIPANT DEMOGRAPHICS EXHIBIT 2
__-------------------------------------------------------------------
Participant Reconciliation Schedule B
Retired
Survivor
on
on
Active
Benefit
Benefit Disabled
Inactive
Total
Participants at 01-Jan-2006
68
2
0 0
3
73
New
1.0
10
Retirement
0
0
Death
0
0
Non -Vested Termination
0
0
Vested Termination
-27
27
0
Lump Sum Settlement
0
0
New Survivors
0
0
Participants at 31-Dec-2006
-------
51
-------
2
--------------
0 0
-------
30
-------
83
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page I of 22
Actuarial Valuation as of January 1, 2007
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Net Assets Available for Benefits` Schedule A
31-Dec-2005 3 I-Dec-2006
Market Value
Money Market 700,938.69 725,508.15
Accrued Contribution - Employer 0.00 0.00
---------------- ----------------
700,938.69 725,508.15
---------------- ----------------
Liabilities
Accounts Payable 0.00 0.00
Deferred Revenues 0.00 0.00
--------------------------------
0.00 0.00
Net Assets Available 700,938.69 725,508.15
* As reported by the County
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN Page 12 of 22
Actuarial Valuation as of January 1, 2007
PLAN ASSET INFORMATION EXHIBIT 3
Statement of Changes in Market Value of Net Assets
Plan Year Ending: 31-Dec-2005
INCREASES
Earnings on Investments
20,871.50
Unrealized Appreciation (Depreciation)
0.00
State Insurance Contributions
0.00
Employee Contributions
0.00
Employer Contributions:
61,050.00
Accrued
0.00
-----------------
61,050.00
-----------------
81,921.50
DECREASES
-----------------
Expenses
Professional Fees
(4,200.00)
Professional Fees
0.00
PMA Fees
0.00
-----------------
(4,200.00)
Paid to Participants
Retirees
(3,420,00)
Survivors
0.00
Disabled
0.00
Overpayment due to City
0.00
-----------------
(3,420,00)
-----------------
(7,620.00)
------------ ----
Net Increase/(Decrease) 74 301.50
NET MARKET VALUE OF ASSETS AVAILABLE FOR BENEFITS;
Beginning of Year 626,637.19
-------------------
End of Year 700,938.69
19,233.00
0.00
-----------------
(4,269.61)
0.00
(10.00)
(5,850.00)
0.00
0.00
0.00
Schedule B
31-Dec-2006
15,466.07
0.00
0.00
0.00
19,233.00
-------------
34,699.07
(4,279.61)
(5,850.00)
(10,129.61)
---------------
24,569.46
700,938.69
-------------------
725,508.15
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2007 Page 13 of 22
PLAN SUMMARY EXHIBIT 4
1. General Information
(a) Plan Name: Monroe County, Florida Volunteer Firefighter and
Emergency Medical Services Length of Service Award Plan
(b) Plan Year: January i 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. Eligibilily 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, 2007 Page 14 of22
4
5
PLAN SUMMARY
EXHIBIT 4
and later returns to active rnern.berslup 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).
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.
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, 2007 Page 15 of 22
PLAN SUMMARY EXHIBIT 4
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 A e
(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, 2007
Page 16 of 22
COST METHOD EXHIBIT 5-A
COST 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 personnel and EMS personnel. 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 Page 17 of 22
Actuarial Valuation as of January 1, 2007
ACTUARIAL ASSUMPTIONS EXHIBIT 5 - B
Actuarial Study as of: 01-Jan-2007
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
2.50%
v:
0.97561
d:
0.02439
107.65056
a(10)due:
8.97088
i(l 2):
0.206%
v(12):
0.99794
d(12):
0.00206
a(1.20)due:
106,41486
Maximum annual benefit accrual limited by IRC
3,000
334.42
Present value of maximum benefit:
40,369
Present value of annual benefit accrual
1,615
Year First Allowed for Benefit Accrual Purposes: After:
1990
Before:
1991
Maximum Credited Years for Benefit Accrual as of the Valuation Date:
18
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND EMERGENCY
MEDICAL SERVICES LENGTH OF SERVICES AWARD PLAN
Actuarial Valuation as of January 1, 2007 Page 18 of 22
PENSION COST RATIONALE EXHIBIT b
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 19 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2007 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
2
0
30
32
31
0
52
83
(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.
MONROE COUNTY, FLORIDA VOLUNTEER FIREFIGHTER AND Page 20 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2007 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 21 of 22
EMERGENCY MEDICAL SERVICES LENGTH OF SERVICE AWARD PLAN
Actuarial Valuation as of January 1, 2007 EXIIIBIT 7
GASB 25 Notes to the Financial Statements
The significant actuarial assumptions used to compute the pension benefit obligation were:
Investment Yield: 2.50% for both present and future. The prior valuation used 3.00%.
Mortality Pattern: Not applicable
Salary Increases: Not applicable
Termination: Godwin's Table 1, V Select & Ultimate Table, with 50% termination prob. for YOS<L
The System's funding policy, as mandated by ordinance, provides for actuarially determined
periodic contributions
The Actuarial Funding Method is a variation of the aggregate actuarial cost method. The
present value of the projected benefits is calculated using the provisions of the plan
and the actuarial assumptions. The actuarial value of assets includes only the value of assets.
There are no member contributions, nor any State premium tax refunds.
The GASB 25 Actuarial Funding Method is the Aggregate Method. Since there is no salary,
allocations are based on service. Aggregation is used by fire district, in order to permit the
county to allocate costs by district. Under this method, gains and losses are spread over
future normal costs.
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