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HomeMy WebLinkAboutItem C02 C2 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor James K.Scholl,District 3 The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2 Craig Cates,District 1 David Rice,District 4 Holly Merrill Raschein,District 5 Board of County Commissioners Meeting December 10, 2025 Agenda Item Number: C2 2023-4778 BULK ITEM: Yes DEPARTMENT: Fire Rescue TIME APPROXIMATE: STAFF CONTACT: R. L. Colina, Fire Chief AGENDA ITEM WORDING: Acceptance of the Monroe County Length of Service Award Plan (LOSAP)Actuarial Valuation Report for Plan Year 2025 and $0 transfer of funds for Plan Year 2025 into the LOSAP Trust Fund. ITEM BACKGROUND: The Actuarial Valuation Report was prepared and completed by Steve Toepke, FSA, EA, FCA, on behalf of Gallagher Benefit Services, Inc. (Gallagher) for the Monroe County Length of Service Award Plan(LOSAP) for Volunteer Firefighter and Emergency Medical Services Volunteers. In compliance with GASB Statement No. 73, and Part VII, "Actuarial Soundness of Retirement Systems" within Chapter 112 of the Florida Statutes, this report includes the state of Florida funding results for the January 1, 2025 plan year and accounting results and required supplemental information for the fiscal year ending September 30, 2025. Pursuant to Section 11-225, Monroe County Code of Ordinances, every year the Actuarial Valuation Report must be prepared and presented to the BOCC in order to determine the amount of funding to contribute to the LOSAP trust account. According to Gallagher, the LOSAP Trust fund has sufficient assets within the trust account to support the accrued and prospective beneficiaries of the Plan. As a result, there is no contribution required to the Plan for 2025. Based on Gallagher's findings, $0.00 will be transferred into the LOSAP Trust Fund for Plan Year 2025. PREVIOUS RELEVANT BOCC ACTION: On June 9, 1999, the Board of County Commission adopted Ordinance No. 026-1999,providing for the creation of the Length of Service Award Plan (LOSAP),providing benefits to eligible volunteer firefighters and emergency medical services volunteers. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A 26 STAFF RECOMMENDATION: Approval DOCUMENTATION: 2025 LOSAP Actuarial Valuation.pdf BACK UPBOCC Ord. 026-1999 LOSAP ordinance.pdf FINANCIAL IMPACT: Effective Date: 12/10/2025 Expiration Date: N/A Total Dollar Value of Contract: N/A Total Cost to County: N/A Current Year Portion: N/A Budgeted: N/A Source of Funds: N/A CPI: N/A Indirect Costs: N/A Estimated Ongoing Costs Not Included in the above dollar amounts: N/A Revenue Producing: N/A If yes, amount: N/A Grant: N/A County Match: N/A Insurance Required: N/A 27 3(,1111/AI I w i iCi n 19 k/d,AME. f I`infra."i00 �7 2 3.(,38/10 61 h31ooillinlrtnn,IVIIV /131 www„i(( com : M Gallagher Insurance Ri1sk Management Consulting October 27, 2025 Monroe County Board of County Commissioners Fire Chief James Callahan 490 63rd Street Marathon, FL 33050 Dear Plan Administrator: Enclosed is the January 1, 2025 Actuarial Valuation report for the Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers ("Plan"). This report includes State of Florida funding results for the January 1, 2025 plan year and accounting results and required supplemental information for the fiscal year ending September 30, 2025 under GASB Statement No. 73. F uuauu in Iii umig uresults The minimum required contribution for the January 1, 2025 plan year is $0. Below is a summary of the results for the prior three years: Plan year: 2023 2024 2025 Participants 21 21 20 Required contribution $0 $0 $0 As long as Monroe County continues to fund the actuarially determined contribution and the assets allocated to the Plan will be sufficient to support the benefits promised by the Plan. . S� II, uresults The expense for the fiscal year ending September 30, 2025 plan year is $39,015. Below is a summary of the results for the prior three years: Fiscal year ending: 2023 2024 2025 Expense $35,295 $33,870 $39,015 Total pension liability $352,370 $332,180 $284,269 Sincerely, Stephen Toepke, FSA, EA, FCA, MAAA Senior Actuarial Consultant Enrollment Number 23-08144 Enclosures 9)2025 Arthur 1.Gallagher&Co.All rights reserved. 28 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Actuarial Valuation for the Plan Year Beginning January 1 , 2025 and Fiscal Year Ending September 30, 2025 October 2025 Gallagher Insurance Risk Management Consulting 29 III III, Table Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers ActuarialCertification...................................................................................................................1 ExecutiveSummary.....................................................................................................................2 Special Disclosure Information Required under State of Florida Statute 112 ..............................4 Exhibits Contribution Information 1. Summary of Results: Development of Actuarial Assets and Actuarially Determined Contribution by Department.....................................................................................................6 2. Summary of Valuation Results.................................................................................................7 3. Reconciliation of Unfunded Actuarial Liability and Present Value of Accrued Benefits..........10 4. Reconciliation of Assets.........................................................................................................11 GASB Disclosure Information 5. Reconciliation of Total Pension Liability.................................................................................12 6. Pension Expense...................................................................................................................13 7. Summary of Deferred Outflows and Inflows...........................................................................14 8. Schedule of Changes in the Total Pension Liability and Related Ratios (last 10 fiscal years).....................................................................................................................................15 9. Schedule of Contributions (last 10 plan years) ......................................................................16 III Basis of Valuation 10. Census Summary and Reconciliation ..................................................................................17 11. Distribution of Active Participants by Age and Service ........................................................18 12. Actuarial Assumptions, Methods, and Models .....................................................................19 13. Summary of Plan Provisions................................................................................................23 III Supplemental Information 14. Risk Assessment .................................................................................................................25 County of Monroe, Florida �.202',AI[[ui J.(a M I I tt I im �,(,i F�III ir:11,i rr,,rIv(trl. 7 1 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Actuarial Certification January 1, 2025 through December 31, 2025 This report has been prepared by Gallagher Benefit Services, Inc. for County of Monroe, Florida (the "County")to present the results of the actuarial valuation report measured as of January 1, 2025 for the Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers (the "Plan" or"LOSAP")for the following purposes: • To satisfy the requirements of Part VII, Chapter 112, Florida Statutes (FS)for the plan year beginning January 1, 2025 • To provide disclosure requirements under Governmental Accounting Standards Board Statement ("GASB") Number 73 for the fiscal year ending September 30, 2025. Use of this report for any other purpose, or by users other than the intended users identified above, may not be appropriate, and may result in mistaken conclusions due to failure to understand applicable assumptions, methodologies, or the inapplicability of the report for that purpose. Because of the risk of misinterpretation of actuarial results, Gallagher recommends requesting its advance review of any statement, document, or filing to be based on information contained in this report. Gallagher will accept no liability for any such statement, document or filing made without its prior review. Please contact me if you wish me to review any statement, document, or filing to be based on information contained in this report. The valuation is based on employee and financial data which were provided by the County and are summarized in this report. The information date for the report is December 31, 2024, meaning that financial and economic information is gathered through this date. Census information is gathered as of January 1, 2024 and January 1, 2025. Except as noted in this report, we have not reflected information after this date and are not aware of any subsequent events which will materially impact the results included here. Except where specifically stated in this report, all costs, liabilities, and other factors under the Plan were determined in accordance with generally accepted actuarial principles and procedures and in accordance with the provisions of applicable financial accounting standards. In our opinion, except where specifically stated in this report, each actuarial assumption is reasonable, taking into account the experience of the Plan and reasonable expectations, and which, in combination, represent our reasonable estimate of the anticipated experience under the Plan. In our professional judgement, the combined effect of the assumptions is expected to have no significant bias. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the Plan's funded status); and changes in Plan provisions or applicable law. Due to the limited scope of this engagement, we did not complete an analysis of the potential range of such future measurements. The report was prepared under my supervision in my capacity as the plan's actuary. I am an Enrolled actuary, a Fellow of the Society of Actuaries, and a Member of the American Academy of Actuaries and I meet the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries to render the actuarial opinion contained herein. I am available to answer any questions on the content of the report. We are not aware of any conflicts of interest which would impact the objectiveness of our work. There are no constraints or disclaimers pertaining to our work other than those (if any)specifically identified here. Stephen Toepke, FSA, EA, FCA Senior Actuarial Consultant Enrollment Number 23-08144 October 2025 County of Monroe, Florida 202',Al11 .I J (v IIIIgIim AIII1,11 k,ICm, ivmd 31 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Executive Summary January 1, 2024 and January 1, 2025 A summary of principal valuation results for the current valuation follows: Summary of Fundinq Valuation Results Valuation date January 1, 2024 January 1, 2025 Normal cost ($98,677) ($89,196) Present value of expected benefits (PVFB) $327,194 $295,240 Market value of assets (no receivables) $811,669 $806,295 Actuarially determined contribution (ADC) $0 $0 Normal cost as %of covered payroll' Not applicable Not applicable ADC as % of covered payroll' Not applicable Not applicable Summary of GASB Accountinq Results Measurement date December 31, 2023 December 31, 2024 Costs: Pension expense/(income) 33,870 39,015 Total pension liability 332,180 284,269 Summary of Data Census date January 1, 2024 January 1, 2025 Number of participants in valuation Active employees 2 1 Terminated vested 6 6 Participants receiving benefits 13 13 Total 21 20 Active Participant Statistics Covered payroll' Not applicable Not applicable Average compensation' Not applicable Not applicable Average age 53.3 48.3 Average service 26.0 17.0 Compensation for active plan participants was not provided since the Plan benefit is not based on compensation. County of Monroe, Florida 202',Al 11 .al J (.( Ilhgl I All 11,11 k,I C,,^Iv,d 32 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Executive Summary January 1, 2024 and January 1, 2025 Commentary Actuarially Determined Contributions The actuarially determined contribution remained at$0 from January 1, 2024 to January 1, 2025 due to the funded status of plan. Actuarial Standard of Practice No. 4 ("ASOP 4") requires certain disclosures be provided when an actuary determines or recommends contribution amounts for a pension plan. The Actuarially Determined Contribution shown on page 8 is compliant with the definition of a reasonable actuarially determined contribution under ASOP 4 Section 3.21. The balance between benefit security, intergenerational equity, and stability or predictability of actuarially determined contributions, the timing and duration of expected benefit payments, the nature and frequency of plan amendments, and relevant input from pertinent stakeholders were taken into account when determining the actuarial cost method, smoothing period for the actuarial value of assets and the amortization period and method for any unfunded actuarial accrued liability. ASOP 4 also requires that a report on a funding valuation disclose a Low-Default-Risk Obligation Measure ("LDROM")of plan liabilities. The LDROM is to be based on "discount rates derived from low-default-risk fixed income securities whose cash flows are reasonably consistent with the pattern of benefits expected to be paid in the future." We believe that this estimated settlement liability of$288,000 calculated based on the accrued benefit cashflows of the plan discounted using the December 31, 2024, 20-year, tax-exempt general obligation municipal bond index with a rating of AA/Aa or higher(4.08%discount rate)fulfills this criterion. Funded status measured against the LDROM may provide a clearer picture of how assets compare to the current value of the plan's accrued benefits. Exhibit 14 provides additional context for measures of plan liability and the assumptions that underly those estimates. Plan Reporting under GASB The resources in the LOSAP fund have been set aside to pay future obligations of the LOSAP but are not held in a trust that meets the criteria outlined in GASB Statement No. 67, paragraph 3 and GASB Statement No. 68, paragraph 4. Therefore, the plan accounting contained herein is reported under GASB No. 73. The financial statements of LOSAP are prepared using the modified accrual basis of accounting. The contributions are recognized when they become susceptible to accrual; when they become both measurable and available. Benefits are recognized in the accounting period in which the related fund liability is incurred in accordance with the terms of LOSAP. Administrative costs are paid by the Board. Actuarial valuation costs are paid by LOSAP. All plan investments are reported at fair value. Changes in Actuarial Assumptions Accounting only-the discount rate was changed from 3.77% as of the December 31, 2023 measurement date to 4.08% as of the December 31, 2024 measurement date based on a 20-year, tax-exempt general obligation municipal bond index with a rating of AA/Aa or higher, as required by GASB No. 73. County of Monroe, Florida 33 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Special Disclosure Information Required under State of Florida Statute 112 Investment Return Actual Assumed Year Ended Experience Factor 12/31/2016 0.16% 1.00% 12/31/2017 0.29% 1.00% 12/31/2018 0.66% 1.00% 12/31/2019 1.53% 1.00% 12/31/2020 2.92% 1.00% 12/31/2021 1.92% 1.00% 12/31/2022 0.10% 1.00% 12/31/2022 -0.35% 1.84% 12/31/2023 3.96% 3.60% 12/31/2024 5.33% 3.80% Investment return was determined by assuming contributions, benefit payments and administrative expenses were paid in the middle of the year. Allocation in assets in plan portfolio The assets for the Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers are invested in a pooled asset fund with a portion allocated to the plan. As required by Florida Administrative Code (FAC) 60T-1.003(3a), the value of the pooled assets allocated to the plan for the last five years is as follows: Year Ended December 31, 2020 2021 2022 2023 2024 Asset Class Cash &Cash Equivalents Not available Not available $371,059 $392,200 $413,031 Bonds Not available Not available $404,175 $419,469 $393,264 Total Not available Not available $775,234 $811,669 $806,295 Salary Increases Benefits for the plan are not salary related. Therefore, salary is not collected, and a salary increase assumption is not used for the purpose of this valuation. Amortization of Unfunded Liabilities The Plan does not have unfunded liabilities, but rather a surplus. The surplus is amortized over the same period as unfunded liabilities, offsetting the expected administrative expenses in the calculation of the actuarially determined contribution. County of Monroe, Florida 34 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Required Actuarial Certification 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 VI1, 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. Signature October 27, 2025 Date 23-08144 Enrollment Number County of Monroe, Florida 35 Illllllllllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll ti W.0> 0 O O O O CV)va R O v � v m d N N O L U U °, aa >- M N d' a0 a Q U a O N u) C a v O O O O O 0 w C Ul O O O Q L a D. v�l c "" Q O C _ � O N (o O O O O O - 00 O N _ C'O M N W � ey® M W Off) (6 Y O N ry N W N m N O 00 m Y (n \ aO R 9 LL `� tl N Lf) M a0� N _ (n / O cH Z U . 3 N N N N N u) i N K a y M O v N U'w CO N M O u� -O N > LL Lo coa N L N VI cu O u) �' �- V N O >tU•' 6) O 00 an N R N m cH N (O (O o0 M > y LL v) D) V M O O O O jn V m>a. ` '�W M N O 6) m N 7 V LL tU J U- fu fuLL a y > m a CL p o m Ln o C� M N co Ln N O) v tl i R-w 6) O O N Q O N d' 1� N N O C N o0 7 R LL Z M N N IA N O- �' oo a0 LL> (f3 My i N N O O O e`a `sr U U W +tl+ +N+ V d' � N N N E > O W U 7 N N d N O O N O aaa � Y � �m N N O O M 02, O N �L♦ O (NO N o0 6) Ori O Y L W N N .- 6) if) d' W V d N C U }� tU tU cH ER 6) O W w 0' 6) d' N m 5-2 _ O N N O O Y of l U N N O L L ui o Do o w y vo ° °(°) (D C N cl! Y (,) R O V O M O m tU N(U M N N (n .V a V N C 7 .�LL 0 C Q w U X U o E Y W 7 d'O c00 a)) O r M 0 0 N O cu R C r N N O V Yp O > owM(fT M d' O Y O'O > 'O O O O uj (A > v�' N L R c V N M O y I- N O U U O (n a. r 4) 6) O M i Y Y O O LL o O O O O O C N N C > O t0 -o O Q i (u m U N N N N O 7 vfl (6-O w Q li Q C = 7 'O w in Ea)) ((D W M tto C N L -� c u� rn o v_ to o rn Rf Q � co � a) 3 R OO E X Q4- 9 ER O r N M N N O N (D zz tU Y •� C Q) (O N M N NC C >i t0 �q tU N Q V O au) d' 6) N tG O„ K C-O 'Y'i v 4- F C u) 00 _O O-O cc O > w m a)�o E � c � mm i O1 (D � C LL �Y > J N N "'O� 4 / m C N = 0 a UO 'O'E O Ott 4- m C O r O �O 0 0 0 G `I.'. W 7 y U w O .> w 4- ll C O O O w LL W 7 C i N O E 7 D) O) tU U C O tl V O (6 p)N U�. }�i _ E -' > w o R R c o 9 �Q� _ r' >, >, > C C > J J U Y �< C W (/� `L Y Y Im `L 0 �L Y Y Im `0 Q Q IL I- ?i U c G � �v Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 2 Summary of Valuation Results Current Valuation Prior Valuation (No assumption changes) Plan Year Beginning January 1,2024 January 1,2025 1. Participant Data a.Active members 2 1 b. Terminated vested 6 6 1.Total annualized benefit $14,940 $14,940 c. Participants receiving benefits 13 13 1.Total annualized benefit $36,180 $38,160 2. Assets a.Actuarial value of assets $811,669 $806,295 b. Market value of assets $811,669 $806,295 3. Liabilities Present value of future expected benefit payments: a.Active members 1. Retirement benefits $57,122 $22,187 2. Vesting benefits 0 0 3. Death benefits 538 421 4.Total 57,660 22,608 b. Terminated vested 102,270 110,336 c. Participants receiving benefits 167,264 162,296 d. Total present value of future expected benefit payments $327,194 $295,240 4. Actuarial present value of accrued benefits Statement of actuarial present value of accrued benefits a. Vested accrued benefits 1.Terminated vested and participants receiving benefits $269,534 $272,632 2.Active members 44,999 11,030 3.Total value of all vested accrued benefits 314,533 283,662 b. Non-vested accrued benefits 3,902 3,893 c. Total actuarial present value of accrued benefits $318,435 $287,555 County of Monroe, Florida 72(12'7F�iPhn.ar�J.(lMllttqli�^i���,i F�Iliu;,yhl,ir,,,^iv�,ii 38 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 2 Summary of Valuation Results Current Valuation Prior Valuation (No assumption changes) Plan Year Beginning January 1,2024 January 1,2025 Actuarially Determined Contribution(ADC) under aggregate cost 5. method a. Total present value of future expected benefit payments $327,194 $295,240 b.Actuarial value of assets 811,669 806,295 c. Present value of future employee contributions 0 0 d. Present value of future employer normal costs(a. -b. -c.) $(484,475) $(511,055) e. Present value of future years of service 5.537 6.584 f. Normal cost 2 $(98,677) $(89,196) g. Expected administrative expenses paid from plan assets 24,000 24,000 h.ADC at beginning of year(f. +g. , not less than 0) 0 0 I. Interest to end of year 0 0 j.ADC at end of year $0 $0 1.As%of payroll N/A N/A 6. Actuarial accrued liability under entry age cost method a. Terminated vested and participants receiving benefits $269,534 $272,632 b.Active members 52,911 18,371 c. Total entry age actuarial liability 322,445 291,003 d. Unfunded actuarial accrued liability(UAAL) $(489,224) $(515,292) Actuarially determined contribution under entry age normal cost 7. method a. Normal cost 1. Retirement benefits $864 $469 2. Vesting benefits 0 0 3. Death benefits 16 9 4.Total 880 478 b.Amortization of UAAL under entry age normal cost method 3 (101,065) (65,974) c. Expected administrative expenses paid from plan assets 24,000 24,000 d.ADC at beginning of year(a.4. + b. + c. , not less than 0) 0 0 e. Interest to end of year 0 0 f.ADC at end of year $0 $0 Weighted average future service for districts with active participants and remaining life expectancy(of benefit payments)for all other districts 2 Normal cost is equal to the amortization of present value of future employer normal costs over the present value of future years of service 3 UAAL is amortized over average future service of active participants and determined on a level-dollar aggregated basis for the Plan(not individually by district) County of Monroe, Florida 202',Aillimv(1Illhgli,l&(;, AIIiu,,Ili l,IC,,�lv,ii 8 39 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 2 Summary of Valuation Results Before Prior Valuation Assumption Changes Plan Year Beginning January 1,2024 January 1,2025 8. Actuarially determined contribution a.ADC under aggregate cost method $0 $0 b.ADC under entry age normal cost method 0 0 c.ADC(greater of a. and b.) $0 $0 1.As%of payroll N/A N/A County of Monroe, Florida 202',Al11uIJ((1IIIIgIim AIII1,111 k,IC,,^Iv,d 40 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 3 Reconciliation of Liabilities Reconciliation of Unfunded Actuarial Liability Based on Present Value of Future Benefits 1. Total unfunded present value of future benefits for the immediately prior actuarial valuation date $(484,474) (January 1, 2024) 2. Interest accrued on 1. (18,410) 3. Expected administrative expenses 24,000 4. Interest on 3. 456 5. Plan sponsor contributions for this plan year(including amounts expected to be paid) (15,668) 6. Interest on 5. (298) 7. Changes due to a.Assumptions 0 b. Funding method 0 c. Plan amendments 0 d.Actuarial (gain)/loss (16,661) e. Net increase/(decrease) (16,661) 8. Total current unfunded actuarial accrued liability (1. +2. +3. +4. +5. +6. +7.e.) $(511,055) Reconciliation of Actuarial Present Value of Accrued Benefits 1. Actuarial present value of accrued benefits at beginning of year $318,435 2. Expected administrative expenses 24,000 3. Increase (decrease)during year attributable to (where applicable): a. Benefits accumulated 1,741 b. Plan amendment 0 c. Changes in actuarial assumptions 0 d. Decrease in discount period 11,425 e.Actual disbursements(benefit payments+administrative expenses) (63,015) f. Actuarial (gains)/losses (5,031) g. Net increase/(decrease) (54,880) 4. Actuarial present value of accrued benefits at end of year(1. +2. +3.g.) $287,555 Reconciliation of Present Value of Future Expected Benefit Payments 1. Present value of future expected benefit payments at beginning of year $327,194 2. Expected administrative expenses 24,000 3. Increase (decrease)during year attributable to (where applicable): a. Plan amendment 0 b. Changes in actuarial assumptions 0 c. Decrease in discount period 11,692 d.Actual disbursements(benefit payments+administrative expenses) (63,015) e.Actuarial (gains)/losses (4,631) f. Net increase/(decrease) (55,954) 4. Present value of future expected benefit payments at end of year(1. +2. +3.f.) $295,240 Reconciliation of Actuarial Accrued Liability under Entry Age Normal Cost Method 1. Actuarial accrued liability at beginning of year $322,445 2. Expected administrative expenses 24,000 3. Increase (decrease)during year attributable to (where applicable): a. Benefits accumulated 880 b. Plan amendment 0 c. Changes in actuarial assumptions 0 d. Decrease in discount period 11,545 e.Actual disbursements(benefit payments+administrative expenses) (63,015) f. Actuarial (gains)/losses (4,852) g. Net increase/(decrease) (55,442) 4. Actuarial accrued liability at end of year(1. +2. +3.g.) $291,003 County of Monroe, Florida 202',Al 11 .I J (v III IqI im AIII1,11 k,I C,,^Iv,d � 41 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 4 Reconciliation of Assets Plan Year Ending: December 31,2023 December 31,2024 Beginning of Year $775,234 $811,669 Accrued Contribution-Employer 0 0 Beginning of Year-adjusted 775,234 811,669 INCREASES Earnings on Investments 30,805 41,973 Unrealized Appreciation (Depreciation) 0 0 State Insurance Contributions 0 0 Employee Contributions 0 0 Employer Contributions: 95,500 15,668 Accrued 0 0 95,500 15,668 126,305 57,641 DECREASES Expenses Professional Fees (56,000) (24,000) PMA Fees 0 0 (56,000) (24,000) Paid to Participants Retirees (33,870) (39,015) Survivors 0 0 Disabled 0 0 Overpayment due to City 0 0 (33,870) (39,015) (89,870) (63,015) Net Increase/(Decrease) 36,435 (5,374) End of Year $811,669 $806,295 Weighted Assets 778,049 787,996 Rate of Return 3.96% 5.33% Asset gain/(loss) 2,795 12,029 County of Monroe, Florida 202',Al 11 .I J (v III IqI im AIII1,11 k,I C,,^Iv,d 42 �iiiiiiiiiiiiiiiiiiiiiiiiiiiiiii�iiiiiiiiiiiiiiiiiiiiiiiil�iiiiiiiilliliiliiiiiiiiiiiliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 5 Reconciliation of Total Pension Liability Total Pension Liability 1. Balances at September 30, 2024 $332,180 2. Changes for the year: a. Service cost 888 b. Interest on the total pension liability 11,821 c. Changes of benefit terms 0 d. Difference between expected and actual experience (16,909) e. Changes of assumptions or other inputs (4,696) f. Benefits paid (39,015) g. Other changes 0 Net changes (47,911) 3. Balances at September 30, 2025 $284,269 Sensitivity of the total pension liability to changes in the discount rate. The following presents the total pension liability of the plan, calculated using the discount rate of 4.08%, as well as what the plan's total pension liability would be if it were calculated using a discount rate that is 1-percentage point lower(3.08%)or 1- percentage point higher(5.08%)than the current rate. Current 1% Decrease Discount Rate 1% Increase 3.08% 4.08% 5.08% Total pension liability $299,911 $284,269 $270,000 County of Monroe, Florida 202',Al11 .I J (v IIIIgIim AIII1,11 k,ICm, ivmd � 44 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 6 Pension Expense Fiscal Year Ending September 30, 2024 2025 Pension Expense $33,870 $39,015 The financial statements of LOSAP are prepared using the modified accrual basis of accounting. The contributions are recognized when they become susceptible to accrual; when they become both measurable and available. Benefits are recognized in the accounting period in which the related fund liability is incurred in accordance with the terms of LOSAP. Administrative costs are paid by the Board. Actuarial valuation costs are paid by LOSAP. All plan investments are reported at fair value. County of Monroe, Florida 202',Al 11 .I J (v III IqI im AIII1,11 k,I C,,^Iv,d .�3 45 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 7 Summary of Deferred Outflows and Inflows Deferred Deferred Outflows of Inflows of Fiscal Year Ending September 30,2025 Resources Resources Differences between expected and actual experience 0 0 Changes of assumptions 0 0 Net difference between projected and actual earnings on pension plan investments' 18,339 0 Total 18,339 0 Calculated based on expected interest at 3.77%(the beginning of year interest rate)on net pension liability,if the assets set aside for the plan were to be recognized under GASB No.73 County of Monroe, Florida 202',Al11 .IJ (v IIIIgIim AIII1,11 k,IC,,^Iv,d 4 46 ti d N 0) 0 Lo 0 00 O O N O M M c0 Q Q N co 00 M ao O O M M Z Z co O O O ao M N OM O ti N O O � N I� (O O O O ^ 00 h Q Q It O O O O N N M Z Z n O N N O O N O ~ n LN N M Cl) O1 00 N (D O � O N O O w n Q Q 0 o N 0, Z Z 00 r- O N O 0 0 000 00 y N - M rV\_ •Y 00 P- N (O rY Off b Z Z v♦ O N c0 M N rh c0 O 00 00 N _ M V � � O V^, O O � O N O � O M Q Q rn � M N rt Z Z o oc rn rr N O N M O O (O M 00 00 00 h cu � O O O O N O O O N M Q Q O N 000 00 00 00 M Z Z W (� N O 0 d O M d0 M ao et G� to O M O N ao O O N � Q Q .� N O 00 0 M M N � M 00 Z Z `i It CO N N `� N N M -1 N O 00 N � M S � w It G� O N cu L L.1_ N O M V. N O G m O Q Q N O - M M N � OO M Z Z N O N N 00 O O N (O 00 N LO cu N � M \O ry / -0 cu I-- 'IT�L O d' O O 00 O Q Q N O (N (( N � W 0) M Z Z 04 -� N N N Cl) (O M O b M N �- M N M M � N a c 00 O (n 0 0 0 Q Q j O O N p M 0) � O O � co Z Z !� NO N (O d' M Cl)04 It 00 N _ M Cl) N V G� O �_ c tm (3) > O N G OU •L .ri _ Q OI i 0 N ' ' O C 0 0 L ni J g E o (Cf m E Q E .� o °� a�E CD .5 cp cp a)— L ++ cn a3 O C tl! a) 0 a) 'y 'y >,a3 = ra U CI N a) (� N U fl- Q a3 G G O— 0 xs UCO L O u! a) t _ V u! 0 0 (D O U) O 0 a3 Q 00 O Z F F �-0 �'> OZ � > .E E o oom }' 'rn o < CO x U A aD c C G U. co W �- N M V�1 c, G vJ N o y y co \ \ z z k � C t e % ) 2 0 7 7 , £ 8 » � \ \ z z \ 2 \ / k \\ _ f / E m % 2 ■ GG ° y y \ \ � � � z z $ § 66 2 � N z z a § \m § 66 § ( CD \ & @ ( t CD 2 ° y y 0 k a \ \ z z 0 CD _ % CD ) Cl) /a [ { ƒ f a .2 } k ° � § - > 0 z z § _ 5m \ \ � 7 f 3 c � z z ) % a 2 a 7 ] ® 2 u / o 2 {\ \ 2 o 2 \ � o { 0 0 & )) k ) f ) W a G L 2 - .. k » ! ƒ 2 \ \ \ \ / j , ° ■ ! ( ) \ § m E >&k ) ° G / z z ~ 2 § ± ) { \ §- k § / / ) \ �a / ~ 2 ° kk 2 o- 0 7 2& E_ / kmoo % ± {ƒ ) 2 I $49 \ 2 0 0 0 y y _ a % E i ] § 4 =C§ n LL m F Fz zj w e -ae 2 ' § G a (7 w _k § jpm { @ 2 } - k � { k w ® 2 {ƒ\ 2 { ® ƒ / % 'Inn ] f ƒ §»§ } \\ ® a \ ° 2c � \ { n ± o g \ &a £ R /E) \\ \ /§ tf- f j/ / )}\ j /z \ 2 S \ Q cc % \ \ { t { ) S O ] E ] % .� m cu > 0 > ) \ � 2 � 20 / ) 7 ) 0 } c U § } _0 » ) f § § \ / \ O o A /{ } (D \ 2 § ) ) £ \ U E] ) ) 7 § ) O \ e k j f E \ # 0 k p � 2 ] ] \ o 0 0 a ® 0 0 - o - w f \ M— @ < o 0 0 0 $ 4 0 0 4 4 _ § z \ & uj � / w w a 4 e zi , , , , , , , 0 \ ----� ' <slllll Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 10 Census Summary and Reconciliation January 1, 2024 January 1, 2025 Number of participants in valuation Active employees 2 1 Terminated vested 6 6 Participants receiving benefits 13 13 Total 21 20 Active employees Total compensation Not applicable Not applicable Average compensation Not applicable Not applicable Average age 53.3 48.3 Average service 26.0 17.0 Terminated vested Total annual pension $14,940 $14,940 Average annual pension $2,490 $2,490 Average age 58.1 59.1 Participants receiving benefits Total annual pension $36,180 $38,160 Average annual pension $2,783 $2,935 Average age 65.7 65.9 Terminated Actives vested Retirees Total January 1, 2024 2 6 13 21 During the 2024 plan year: -Terminated vested - - - - -Terminated non-vested - - - - - Retired (1) - 1 - - Benefits ceased - - (1) (1) - Rehired - - - - - New entrants - - - - - Data corrections - - - - January 1, 2025 1 6 13 20 County of Monroe, Florida 202',Al 11 .I J (v III IqI im AIII1,11 k,I C,,.iv,ii 17 50 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 11 Distribution of Active Participants by Age and Service as of January 1, 2025 Years of Service Age < 5 5-10 10-15 15-20 20-25 25-30 30-35 >35 Total < 35 - - - - - - - - - 35-40 - - - - - - - - - 40-45 - - - - - - - - - 45-50 - - - 1 - - - - 1 50-55 - - - - - - - - - 55-60 - - - - - - - - - Total - - - 1 - - - - 1 County of Monroe, Florida 202',Al 11 .I J (v III IqI im AIII1,11 k,I C,,.Iv,ii 18 51 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 12 Actuarial Assumptions, Methods, and Models Funding assumptions and methods selection and rationale Except for the mortality assumption, the following assumptions were selected by the plan sponsor without consultation with Gallagher. The assumptions are based on actuarial judgment considering observed experience of this plan and of similarly situated employment groups over time. The actuary discusses these rates with the plan sponsor periodically to determine if future experience is anticipated to be similar to the actuarial assumptions, or if assumed rates should be adjusted to reflect changes in underlying conditions relevant to the employer or the plan. The mortality assumption is reasonable and represents my best estimate of anticipated experience under the plan. The other assumptions do not significantly conflict with what would be reasonable based on nominal prior plan experience and Gallagher's experience with public pension plans in the US. In the case of the plan sponsor's selected expected return on assets (EROA), the signing actuaries have used economic information and tools provided by Gallagher's Financial Risk Management practice. A spreadsheet tool created by this practice converts averages, standard deviations, and correlations from Gallagher's Capital Market Assumptions that are used for stochastic forecasting into approximate percentile ranges for the arithmetic and geometric average returns. The EROA spreadsheet tool is intended to suggest possible reasonable ranges for the expected return on assets without attempting to predict or select a specific best estimate rate of return. It takes into account the duration of investment and the target allocation of assets in the portfolio to various asset classes. Based on the actuaries' analysis, including consistency with other assumptions used in the valuation, the percentiles generated by the EROA spreadsheet tool, and review of actuarial gain/loss analysis, the signing actuaries believe the assumptions, in their professional judgment, do not significantly conflict with what are reasonable for the purpose of the measurement. County of Monroe, Florida 202',Al11 .I J (v III IgIim AII I1,11 k,IC,,,.iv,ii 19 52 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 12 Actuarial Assumptions, Methods, and Models Assumptions Discount rate Funding—3.80% GASB—4.08% Investment return (net Funding—3.80% of investment expenses) Inflation 2.5% Compensation 2.5% (required for entry age normal cost method); equal to inflation assumption, as increases prescribed by GASB No. 73, since benefits are not based on compensation. 2024 Salary $30,000 The plan is not pay-related, so salary information was not provided by the County. This assumed pay is used for the entry age normal, level percent of pay cost method. Measurement date Funding—January 1, 2025 GASB— December 31, 2024 for the fiscal year ending September 30, 2025 Census date Funding—January 1, 2025 GASB—January 1, 2024 Mortality Male— Pub-2010 Headcount Weighted Below Median Safety Employee Mortality Tables, set forward one year, with fully generational projected mortality improvements using Scale MP-2021 Female—Pub-2010 Headcount Weighted Safety Employee Mortality Tables, set forward one year, with fully generational projected mortality improvements using Scale M P-2021 Retirement rates Ultimate rates from Godwin's Table 1, V Select& Ultimate Table Termination rates Godwin's Table 1, V Select& Ultimate Table, w/50% termination probability for years of service < 1 Benefit commencement Age 60 age for Terminated vested Administrative $24,000 expenses Funding policy The County's funding policy is to contribute at least the actuarially determined contribution, as mandated by ordinance. County of Monroe, Florida 202',Al11 .I J (v III IgIim AII I1,11 k,IC,,,.iv,ii 20 53 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 12 Actuarial Assumptions, Methods, and Models Assumption changes Accounting only-the discount rate was updated from 3.77% as of December 31, 2023 to 4.08% as of December 31, 2024 based on a 20-year, tax-exempt general obligation municipal bond index with a rating of AA/Aa or higher, as required by GASB No. 73. Assumption Rationale Discount rate Funding— based on the long-term expected rate of return (EROA)of government securities as of the valuation date. The signing actuaries have used economic information and tools provided by Gallagher's Financial Risk Management practice. A spreadsheet tool created by this practice converts averages, standard deviations, and correlations from Gallagher's Capital Market Assumptions that are used for stochastic forecasting into approximate percentile ranges for the arithmetic and geometric average returns. The EROA spreadsheet tool is intended to suggest possible reasonable ranges for the expected return on assets without attempting to predict or select a specific best estimate rate of return. It takes into account the duration of investment and the target allocation of assets in the portfolio to various asset classes. Based on the actuaries' analysis, including consistency with other assumptions used in the valuation, the percentiles generated by the EROA spreadsheet tool, and review of actuarial gain/loss analysis, the signing actuaries believe the assumptions, in their professional judgment, do not significantly conflict with what are reasonable for the purpose of the measurement. GASB—As prescribed by GASB No. 73, the discount rate is equal to the Bond Buyer 20-year GO AA Municipal Bond Index rate as of the Measurement Date Mortality Mortality assumption used is based on the assumptions mandated by State of Florida for local government plans, which requires the use of the mortality assumption in one of the two latest valuations. Retirement and Based on publicly available tables for populations similar to the Plan population. termination rates Administrative expense The administrative expenses assumption is the plan sponsor's estimate of expenses paid from the trust during the plan year. Methods Funding cost method A variation of the aggregate cost method is used to determine the normal cost for the plan. Under this method, the normal cost is the shortfall/surplus of the actuarial value of assets over the actuarial present value of projected benefits, allocated based on the present value of a level annuity for the average future working life for districts with active participants or average remaining life expectancy for inactives for districts with no actives. The normal cost is determined individually by district and aggregated for the Plan. Assumed administrative expenses are added to this normal cost to produce the actuarially determined contribution (ADC). A district's ADC is not allowed to become negative. Any negative ADC for a district will first be reallocated pro-ratably over present value of projected benefits to reduce any positive ADC from other districts, before being reduced to zero. County of Monroe, Florida 202',Al11 .I J (v III IgIim AII I1,11 k,IC,,,.iv,ii 21 54 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 12 Actuarial Assumptions, Methods, and Models The total ADC for the Plan calculated above shall not be less than an ADC calculated for the Plan using the Entry Age Normal, Level Percent of Pay cost method (described in the Accounting cost method section below). Any excess will be allocated pro-ratably over present value of projected benefits to each district, except as noted below. Key Largo (Fire and EMS)terminated from the Plan effective October 1, 2006. The vested participants as of that date remain in the plan. No costs have been allocated to these districts. Assets have been allocated to these two districts to cover the estimated remaining liability. Any excess assets are allocated to the other districts. Should these assets not be sufficient to cover the remaining liability, a recapture of assets may be needed. Any recapture will made in the same ratio as the reallocation was determined. Accounting cost method Liabilities and contributions shown in this report are computed using the Entry Age Normal, Level Percent of Pay actuarial cost method of funding. Under this method, the actuarial present value of the projected benefits of each individual included in an actuarial valuation is allocated on a level basis over the earnings of the individual between entry age and assumed exit age(s). Entry age is the age at the participant's hire date. A description of the calculation follows: The individual's normal cost is the portion of this actuarial present value allocated to a valuation year. The normal cost is calculated by taking the present value of projected benefits divided by present value of future salaries to obtain a normal cost rate. The normal cost to a valuation year is the normal cost rate times the valuation earnings. An individual's actuarial accrued liability is the portion of the actuarial present value of benefits not provided for a valuation date by the actuarial present value of future normal cost. If multi-decrements are used, the actuarial accrued liability and the normal cost for an individual are the sum of the component accrued liabilities and normal costs associated with the various anticipated separation dates. Such accrued liabilities and normal costs reflect the accrued benefits as modified to obtain the probability of the individual separating on those dates. Accounting method The financial statements of LOSAP are prepared using the modified accrual basis of accounting. The contributions are recognized when they become susceptible to accrual; when they become both measurable and available. Benefits are recognized in the accounting period in which the related fund liability is incurred in accordance with the terms of LOSAP. Administrative costs are paid by the Board. Actuarial valuation costs are paid by LOSAP. All plan investments are reported at fair value. Valuation assets Market Value Changes in methods None since the last valuation County of Monroe, Florida 202',Al11 .I J (v III IgIim AII I1,11 k,IC,,,.iv,ii 22 55 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 12 Actuarial Assumptions, Methods, and Models Models Actuarial valuation Liabilities shown in this report were determined using third-party actuarial valuation system software. This software is designed for the specific purpose of modeling pension plan liabilities and costs and is the standard pension valuation software used by Gallagher Benefit Services, Inc. The results in this report are based on various inputs into the software model, including the plan provisions and assumptions shown in this report, and demographic and financial information provided by the County. While the results have been tested and reviewed for overall accuracy and consistency, we have relied upon the validity of the underlying software coding in preparing this report. Published demographic The demographic tables described above are standard published tables developed by tables organizations with the required expertise. County of Monroe, Florida 202',Al11 .I J (v III IgIim AII I1,11 k,IC,,,.iv,ii 23 56 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 13 Summary of Plan Provisions This summary has been prepared for valuation purposes only. It summarizes the plan provisions necessary to perform the actuarial valuation. Plan Sponsor County of Monroe, Florida Effective Date of Plan January 1, 1999 Plan Year January 1 to December 31 Eligibility The Plan Administrator shall, in its sole discretion, determine those Volunteer Requirements 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 be eligible to participate. Normal Retirement Age Age 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 (a) Eligibility: Completion of 10 years of service prior to age 60. Benefit (b) Benefit: An annual benefit based on the following schedule: Years of Service Monthly Benefit Annual 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 Normal Form of Benefit payments are payable monthly for a period of ten years. Pension County of Monroe, Florida 202',Al11 .I J (v IIIIgIim AIII1,11 k,ICm, iv,ii 24 57 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 13 Summary of Plan Provisions Year 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 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). 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. Cost of Living Increase Not applicable after January 1, 2014 Death Benefit Prior to The present value of vested accrued benefits. Attaining Normal Retirement Age Death Benefit After Continuation of remaining payments to designated beneficiary Benefit Commencement Vested Interest Upon Years of Service Vested Interest Termination of in Accrued Benefit Employment Less than 10 Years 0% 10 Years 100% Optional Forms None Changes since the None Prior Valuation County of Monroe, Florida 202',Al11 .I J (v IIIIgIim AIII1,11 k,ICm, iv,ii 25 58 � �suui Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 14 Risk Assessment January 1, 2025 All intended users of this Actuarial Valuation Report should understand that there exist many risks that future experience may differ widely from that assumed by the Actuary. Assumptions are generally based on long-term expectations of experience over the life of the plan, except where mandated otherwise. Fluctuations in experience around these assumptions are expected and, when viewed over a long-term period, the impact on costs should generally balance out over time. However, in any individual year, there is the risk that deviations in experience from the assumptions may result in volatility of annual costs and the short-term financial condition of the Plan. Such risk includes, but is not limited to, the following: Investment risk—that actual returns will be different from expected returns The plan holds assets which are assumed to earn a specified rate of return each year. This assumption is based on the plan's investment policy and expectations of future earnings within various asset categories. To the extent that the return on the plan's investments exceeds or falls short of the assumption, costs in future years may be lower or higher accordingly. Interest rate risk—that future interest rates will be different from expected rates Actuarial liabilities are measured using an interest rate assumption to discount the value of future payments to the measurement date. The basis for selecting the interest rate is different for different liability measurements. Funding interest rates are based on the expected investment return are based on high quality corporate bonds, while GASB liabilities are based on a 20-year GO Municipal Bond Index with AA/Aa or higher rated bonds. Funding liabilities will change if the investment return assumption is changed. Changes in municipal bond rates from year to year will affect the GASB liabilities. Asset/liability mismatch risk—that shifting economic factors may affect liability measures more or less severely than asset measures To the extent that plan assets are held in investments that react differently to economic events (e.g., interest rate changes or market downturns)from plan liabilities, any such events could result in changes to the plan's funding level. The impact on the plan will depend on a number of factors, such as the nature of the economic event, the duration of plan liabilities and assets, and the allocation of plan assets among different investment categories (e.g., equities, fixed income, cash, etc.). Longevity/demographic risk—that demographic experience will be different from expectations Key demographic assumptions include mortality rates and future improvements in mortality, and retirement/termination rates. If people live longer or stay in employment longer than expected then plan costs will increase accordingly as more benefits are being accrued, and vice versa. Contribution risk—that the plan sponsor will be unable or unwilling the fund the Plan The plan sponsor contributes the actuarial funding contribution each year based on the plan's funding policy. While the sponsor maintains this policy, contribution risk is negligible. County of Monroe, Florida 202',Al11 .I J (v IIIIgIim AIII1,11 k,ICm, iv,ii 25 60 Monroe County Length of Service Award Plan for Volunteer Firefighter and Emergency Medical Services Volunteers Exhibit 14 Risk Assessment January 1, 2025 Maturity Measures Pension plan maturity provides another way to assess risk. Shown below are certain maturity measures for the plan and a high-level explanation of each measure. 1/1/2024 1/1/2025 Retiree liability/Total funding liability 51.12% 54.97% Benefit payments/Market value of assets 4.17% 4.81% Contributions- Benefit payments $ 61,630 $ (23,347) Duration of plan liability 5.33 5.36 Retiree liability/Total liability— illustrates the maturity of the plan, with a higher percentage indicating greater risk. Benefit payments/Market value of assets—this cash flow indicator illustrates the portion of plan assets used each year to pay benefits. Contributions- Benefit payments—this net cash flow figure illustrates how much is being contributed to the plan compared to how much is being paid to participants. Duration of plan liability—this measure illustrates the approximate sensitivity of plan liabilities to a 1% change in interest rates. An assessment of risk beyond what is presented here is outside the scope of this analysis. Additional analysis could be conducted upon request, such as scenario testing or stochastic modeling, to help provide a better understanding of the risks specific to the plan. Low-Default-Risk Obligation Measure ("LDROM") ASOP 4 also requires commentary to help the intended user understand the significance of the LDROM with respect to the funded status of the plan, plan contributions, and the security of participant benefits. The settlement estimate provided may be used to understand the funded status on a termination basis and any additional contributions that may be needed to terminate the plan. However, in lieu of terminating the plan, the plan sponsor is currently committed to maintaining the funding of the plan on an ongoing basis. Therefore, the current funded status and contributions are appropriately measured as shown throughout this report. With respect to security of participant benefits, since this plan is fully funded on risk-free basis, participant benefits can be considered secure. Note that the plan not being fully funded on a risk-free basis does not mean the participant benefits are not secure. Security of participant benefits relies on the ability of the plan sponsor to make necessary contributions to fund the benefits. If the plan were to terminate without enough assets to cover the termination liabilities, participants would not be able to obtain their full benefits. However, if the plan continues to afford to operate on an ongoing basis and makes reasonable and appropriate contributions with managed risk, the participants' benefits will remain secure. Actuaries play a role in helping determine funding methods and policies that can achieve affordable and appropriate contributions and risk management. The results throughout this report are used for this purpose. County of Monroe, Florida 202',Al11 .I J (v IIIIgIim AIII1,11 k,ICm, iv,ii 26 61 N to 026 ORDINANCE NO. - 1999 AN ORDINANCE PROVIDING FOR THE CREATION OF A LENGTH OF SERVICE AWARD PLAN PROVIDING BENEFITS TO ELIGIBLE VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL SERVICES VOLUNTEERS: PROVIDING FOR SEVERABILITY: PROVIDING FOR REPEAL OF ORDINANCES INCONSISTENT HEREWITH: PROVIDING FOR INCLUSION IN THE CODE OF ORDINANCES; PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: Section 1. Definitions. (a) "Benefit Commencement Date" means the first day of the month coincident with or next following a Participant's attainment of his or her Normal Retirement Age, or, if earlier, the first day of the month following the Participant's death or disability. (b) "Board" means the Monroe County Board of County Commissioners. (c) "County" means Monroe County, Florida. (d) "Disability" means a disability which entitles an individual to disability benefits payable by Social Security. (e) "Effective Date" means January 1, 1999. (f) "Eligibility Date" means January 1 of each year. (g) "Emergency Medical Services ("EMS") Volunteer" means any person whose name is carried on the active Volunteer membership roll of a non-profit corporation, created to provide emergency medical services, that has contracted with the Monroe County Board of County Commissioners, or with a County fire department, or with an MSTU created by the. Board under §125.01(1), to provide emergency medical services which has not elected out of participation in this Plan. (h) "Length of Service Awards Program" ("LOSAP") or (Plan") shall mean the length of service award plan as herein set forth, as it may be amended from time to time. (i) "Normal Retirement Age" means the date a Participant attains age 60. M (j) "Participant" means any Volunteer Firefighter or EMS Volunteer who is covered by this Plan as provided in Section 3. (k) "Plan Administrator" means the Board or such other person or entity as shall be from time to time designated by the Board to administer this Plan. - (1) "Plan Year" means the 12-month period ending on December 31, 1999 and each 12-month period ending on December 31 thereafter. (m) "Volunteer Firefighter" means: (i) any person whose name is carried on the active Volunteer membership roll of a nonprofit corporation, created for fire fighting purposes, that has contracted with the Monroe County Board of County Commissioners or a County fire department, or with a municipal service taxing or benefit unit ("MSTU") created by the Board under §125.01(1) to extinguish fires, to protect life, and to protect property which has not elected out of participation in this Plan; or (ii) whose name is carried on the active volunteer membership roll of the Monroe County Fire Department or a fire control MSTU created by the Monroe County Board of County Commissioners under §125.01(1), Florida Statutes. (n) "Year of Service" means: (i) For purposes of the Plan other than benefit accrual, each year of volunteer service for which the business records of the nonprofit corporation or MSTU created by the Board, show, to the satisfaction of the County Fire Rescue Coordinator, the Participant: (A) was 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. (ii) A Participant will be credited with Years of Service for purposes of benefit accrual under the Plan as follows: (A) A Year of Service will be credited for each Plan Year in which a Volunteer meets the requirements set forth in subsection (i)(A) and (B) above. (B) Each year during the annual budget process, the Board may consider crediting each Participant with an additional Year of Service for service accrued prior to the Effective Date of the Plan. The total number of Years of Service that may be credited for service accrued prior to the Effective Date of the Plan shall not 2 d exceed the actual number of Years of Service actually earned by each Participant prior to the Effective Date of the Plan. (iii) For all purposes of the Plan, 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 and later returns to an 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. (iv) Notwithstanding anything to the contrary, no Years of Service shall be earned for any year of volunteer service after the Participant has attained age sixty (60). Section 2. Name and Purpose of the Plan (a) A length of service award program is hereby established in accordance with the terms hereof and shall be known as the "Monroe County, Florida Volunteer Firefighter and Emergency Medical Services Length of Service Award Plan". (b) This Plan is intended to meet the requirements of Section 457(e)(11) of the Internal Revenue Code of 1986, as amended ("Code"). Section 3. Administration (a) The Plan Administrator shall have complete control and discretion to manage the operation and administration of the Plan. Not in limitation, but in amplification of the foregoing, the Plan Administrator shall have the following powers: (i) To determine all questions relating to the eligibility of Volunteer Firefighters and EMS Volunteers to participate or continue to participate; (ii) To maintain all records and books of account necessary for the administration of the Plan; (iii) To interpret the provisions of the Plan and to make and to publish such interpretive or procedural rules as are not inconsistent with the Plan and applicable law; (iv) To compute, certify and arrange for the payment of benefits to which any Participant or beneficiary is entitled; LO cfl (v) To process claims for benefits under the Plan by Participants or beneficiaries; (vi) To engage consultants, attorneys, accountants, specialists, and other persons it deems necessary and desirable to assist the Plan Administrator in carrying out its duties under this Plan; and (vii) To develop and maintain such instruments as may be deemed necessary from time to time by the Plan Administrator to facilitate payment of benefits under the Plan. (b) The Plan shall be administered in accordance with the requirements of Chapter 112, Part VI I, Florida Statutes. (c) Except to the extent otherwise required by law, the Plan Administrator shall have the full authority and discretion to act, and the Plan Administrator's actions shall be binding and conclusive on all parties. (d) A Participant or a beneficiary ("Claimant") may file with the Plan Administrator a written claim for benefits, if the Participant or beneficiary determines the distribution procedures of the Plan have not provided him his proper benefit from the Plan. The Plan Administrator must render a decision on the claim within a reasonable period of time of the Claimant's written claim for benefits. The Plan Administrator must provide adequate notice in writing to the Claimant whose claim for benefits under the Plan the Plan Administrator has denied. The Plan Administrator's notice to the Claimant must set forth: (i) The specific reason for the denial; (ii) Specific references to pertinent Plan provisions on which the Plan Administrator based its denial; (iii) A description of any additional material and information needed for the Claimant to perfect his claim and an explanation of why the material or information is needed; and (iv) That any appeal the Claimant wishes to make of the adverse determination must be in writing to the Plan Administrator within sixty (60) days after receipt of the Plan Administrator's notice of denial of benefits. The Plan Administrator's notice must further advise the Claimant that his failure to appeal the action to the Plan Administrator in writing will render the Plan Administrator's determination final, binding and conclusive. The Plan Administrator's notice of denial of benefits must identify the name and address of the Plan Administrator to whom the Claimant may forward his appeal. 4 to cfl If the Claimant should appeal to the Plan Administrator, he, or his duly authorized representative, may submit, in writing, whatever issues and comments he, or his duly authorized representative, feels are pertinent. The Claimant, or his duly authorized representative, may review pertinent Plan documents. The Plan Administrator will re-examine all facts related to_ the appeal and make a final determination as to whether the denial of benefits is justified under the circumstances. The Plan Administrator must advise the Claimant of its decision within a reasonable period of time of the Claimant's written request for review. Section 4. Eliciibility. (a) The Plan Administrator shall, in its sole discretion, determine those Volunteer Firefighters and EMS Volunteers ('Volunteers") eligible to participate in the Plan. Volunteer Firefighters and EMS Volunteers shall enter the Plan as Participants on the Eligibility Date concurring with or immediately following the determination of their eligibility by the Plan Administrator. Any Volunteer who was age 60 or older on January 1, 1999 shall not be eligible to participate in this 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 be eligible to participate in this Plan. If, as of any Eligibility Date, an otherwise eligible person shall be determined to be unable to earn ten Years of Service prior to age 60, that person shall be ineligible for any future participation in the Plan. (b) The initial number of number of Volunteers who may participate in the Plan for Plan Years for each volunteer fire/rescue department under contract with the County are: Volunteer Number of Department Volunteers Stock Island 12 Big Coppitt 16 Sugarloaf 18 Big Pine 26 Marathon 36 Conch Key 18 Layton 16 Tavernier 28 Key Largo, Fire 36 Key Largo, Ambulance 25 (c) The Board may, in its discretion increase or decrease the number of volunteers eligible to participate in the Plan for any Plan Year. 5 ti cfl Section 5. Contributions and Benefits (a) For each Plan Year, the Board shall appropriate funds from the budgets of the various volunteer 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. The amount of the annual contribution will be calculated by the Plan Administrator and presented to the Board for approval or modification during the annual budget adoption process. (b) Upon attainment of Normal Retirement,Age, a Participant shall be fully vested in his Plan benefit determined pursuant to the following schedule: Benefit Schedule YEARS MONTHLY ANNUAL SERVICE BENEFIT BENEFIT 25 $375 $4500 24 360 4320 '23 345 4140 22 330 3960 21 315 3780 20 300 3600 1P 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 (i) The benefit schedule may be increased for cost of living adjustments in future years if the Board deems it desirable. (ii) Notwithstanding anything to the contrary, in no event shall any Participant accrue a benefit in excess of $3,000 for any Year of Service. (c) Upon completion of ten Years of Service, a Participant shall be vested in a benefit under this Plan in the amount set forth in (b) above, payable upon the Participant's Benefit Commencement Date. 6 00 W (d) A Participant who does not have ten Years of Service as of his Normal Retirement Age shall not be entitled to any benefit under this Plan. Section 6. Form and Payment of Benefits. (a) Timing of Payment. (i) The distribution of a Participant's benefit as determined in Section 5 shall be paid in the manner described in paragraph (b) of this Section 6 and shall commence on the Participant's Benefit Commencement Date, subject to the Participant's (or beneficiary's) proper completion of benefit application forms available from the Plan Administrator. Payment of benefits shall commence on the Participant's Benefit Commencement Date notwithstanding that the Participant remains on an active membership roll as a Volunteer Firefighter or EMS Volunteer. A Participant (or beneficiary) must apply for benefits and complete the necessary benefit application forms within sixty months of his Normal Retirement Age or all benefits otherwise payable to the Participant under the Plan will be forfeited. (ii) Notwithstanding the foregoing, upon a Participant's death, his benefit will be paid to the beneficiary designated in accordance with Paragraph (d) of this Section 6. (b) Form of Payment. Except as otherwise provided herein, benefit payments are payable monthly for a period of ten years. (c) Vesting. (i). to order to be eligible to receive any benefit payments under this Plan, a Participant must: (A) be credited with ten Years of Service prior to attainment of Normal Retirement Age; (B) for Volunteer Firefighters, have met all requirements as defined by the County necessary to attain the rank of Structural Firefighter, Non-Structural Firefighter and/or Emergency Vehicle Driver-Operator prior to being credited with ten Years of Service, and (C) for EMS Volunteers, have met all requirements as defined by the State of Florida necessary to drive an emergency medical care and transportation vehicle (ambulance) and/or attain certification as an Emergency Medical Technician or Paramedic prior to being credited with ten Years of Service. 7 cfl (d) Payment to Beneficiary. (i) If a vested Participant dies or becomes disabled prior to attaining his Normal Retirement Age, he or his beneficiary will be entitled to receive the present value of the benefits accrued as of the date of such death or disability. Benefits accrued will be determined by the number of the Participant's Years of Service as of the date of such death or disability. Benefits may be paid, at the Plan Administrator's discretion, either in monthly payments over the period of ten years or in a lump sum payment. (ii) If the Participant dies after payments have commenced but before he has received all of his benefits under the Plan, all unpaid amounts shall continue to be paid to his beneficiary or beneficiaries for the portion of the installment period remaining after the Participant's death. (iii) At anytime and from time to time, each Participant shall have the right to designate a beneficiary to receive his death benefit and to revoke such designation. Each designation or revocation shall be evidenced by written instrument filed with the Plan Administrator, signed by the Participant and bearing the signature of a witness to his signature. In the event that a Participant has not designated a beneficiary or beneficiaries, or if for any reason such designation shall be legally ineffective, or if such beneficiary or beneficiaries shall predecease the Participant, then the personal representative of the estate of such Participant shall be deemed to be the beneficiary designated to receive such death benefit, or if no personal representative is appointed for the estate of such Participant, then his next of kin under the statute of descent and distribution of the state of such Participant's domicile at the date of his death shall be deemed to be the beneficiary or beneficiaries to receive such death benefit. (e) Calculation of Lump Sum Payment and Present Value of Benefits. Whenever the Plan provides for the payment of a benefit in the form of a lump sum or refers to the present value of an accrued benefit, the value of the lump sum benefit or present value of the benefit shall mean the present value of future benefit payments discounted at an annual interest rate to be determined as follows: For each Plan Year, the interest rate for that year shall be equal to the yield shown in The Wall Street Journal for the last business day of the preceding calendar year in the "Yield Comparisons" table for Treasury 10+ years rounded up to the next whole percentage. The Plan Administrator shall have the discretion to set calculation procedures and approximations to be used in determining lump sum and present values. 8 0 ti Section 7. Trust Account and Administration. (a) The Board shall establish a trust account with the County Clerk of the Circuit Court for the deposit of LOSAP contributions that are appropriated by the Board. Other than the establishment of the trust account, the Clerk shall have no further administrative duties or obligations with respect to the Plan. (b) The assets in the Plan trust account shall be used to pay all expenses of the administration of the Plan, including compensation of a trustee appointed by the Board, if any, the compensation of any investment manager, the expense incurred by the Plan Administrator in discharging its duties, and any interest that may be payable on money borrowed by a trustee for the purpose of the Plan. In the alternative, the County may pay the expenses of the Plan. Any such payment shall not be deemed a contribution to the Plan. (c) The Plan trust account shall be invested in accordance with the provisions of Section 125.31, Florida Statutes. Section 8. Plan Amendment and Termination Provisions. (a) Amendment and Termination. The Plan may be amended at any time, or from time to time, by the Board, and the Plan may be terminated completely or with respect to any individually contracted volunteer fire department or emergency medical services contractor, at any time by the Board. (b) Effect of Termination. (i) Upon termination, those Participants or beneficiaries who began receiving payments prior to the Plan's termination date will receive a single lump sum benefit equivalent to the present value of the benefits remaining to be paid to the Participant. (ii) Those Participants who have been credited with ten Years of Service but have not attained their Normal Retirement Age prior to the termination will receive a pro-rata share of the remaining Plan assets (less any remaining administrative costs). The pro-rata share will be based upon the lump sum value of the Participant's benefit under the Plan as of the date of Plan termination. (iii) In the case of the termination of an individual department's participation in the Plan, those vested Participants with ten Years of Service as of the date of termination of participation will receive a benefit equivalent to the present value of their accrued benefit determined under Section 5 of the Plan as of the termination date. The Board may, in its discretion, pay benefits in the form of a single lump sum or in installment payments annually over the ten year period beginning on the next fiscal year after the date of such termination. No other liabilities of any sort shall be recognized or payable by the Plan. 9 ti (iv) No other benefits shall be paid to Participants, whether vested or not on the date of the Plan termination, and no Participant has any right to any present or future benefit payment from the Plan after the Plan is terminated by the Board. _ Section 9. Miscellaneous. (a) Payments to Minors and Incompetents. If any person entitled to a payment under the Plan is deemed by the Plan Administrator to be incapable of personally receiving and giving a valid receipt for such payment, then, unless and until claim therefor shall have been made by a duly appointed guardian or other legal representative of such person, the Plan Administrator may provide for such payment or any part thereof to be made to any other person or institution that is contributing toward or providing for the care and maintenance of such person. Any such payment shall be a payment for the account of such person and a complete discharge of any liability of the Board and the Plan therefor. (b) No Interest in Assets. (i) Nothing contained in the Plan shall be deemed to give any Participant any equity or other interest in the assets, business or affairs of the Board or Monroe County. (ii) Nothing contained in the Plan shall constitute a guaranty by the Board that the assets of Monroe County will be sufficient to pay any amount hereunder. No Participant or beneficiary shall have any right to receive a distribution under the Plan except in accordance with the terms of the Plan. (c) Non-Alienation of Benefits. No interest of any person or entity in, or right to receive a distribution under, the Plan, shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind; nor may such interest or right to receive a distribution be taken, either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including claims for alimony, support, separate maintenance and claims in bankruptcy proceedings. (d) General Provisions. (i) If any section, subsection, sentence, clause or provision of this Ordinance is held invalid, the remainder of this Ordinance shall not be affected by such invalidity. (ii) All Ordinances or parts of Ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict. 1 N ti (iii) The provisions of this Ordinance shall be included and incorporated in the Code of Ordinances of the County of Monroe, Florida, as an addition to amendment thereto, and shall be appropriately renumbered to conform to the uniform numbering system of the Code. (iv) This Ordinance must be filed in the Office of the Secretary of State, State of Florida, but will not take effect until 90 days from the date of adoption by this Board. (v) This Plan shall be administered, construed and enforced according to the laws of the State of Florida. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida at a regular meeting of said Board held on the 9th day of June , 1999. Mayor Wilhelmina Harvey yes Mayor Pro Tern Shirley Freeman yes Commissioner George Neugent �g Commissioner Nora Williams ommissioner Mary Kay Reich yes BOARD OF COUNTY COMMISSIONERS a- ANNY L. KOLHAGE, CLERK OF MONROE COUNTY, FLORIDA By: By: eputy k Mayor/Chairman Effective Date 97363.8/15115.980395 NDRO ADS S TO FORM B FFI RO ERT N DATE 11