HomeMy WebLinkAboutAgenda Police Pension 043015 Agenda
City of Palm Beach Gardens Police Officers’
Pension Fund
MEETING OF APRIL 30, 2015
LOCATION: City Council Chambers’
10500 North Military Trail
Palm Beach Gardens, FL 33410
TIME: 9 AM
1. Call Meeting To Order
2. Roll Call:
• Jay Spencer, Chairman
• Brad Seidensticker, Trustee
• Greg Mull, Trustee
• Marc Glass, Trustee
3. Investment Manger Report – Cherry Bekaert (Jim Burdick)
4. Presentation of the 9/30/2014 Actuarial Valuation Report – GRS (Pete Strong)
• Updated GASB 67 Disclosure Information
5. Custodian Update – Salem Trust (Brad Rinsem & Karen Russo)
6. Investment Manager Report – American Realty (Richelle Hayes)
7. Investment Consultant Report – Thistle Assets (Brendon Vavrica)
8. Attorney Report – KKJ&L (Bonni Jensen)
9. Administrator Report – Resource Centers (Audrey Ross)
10. Approval of Minutes
• January 29, 2015 Regular Meeting
11. Disbursements
12. Benefit Approvals
13. Financial Statements
14. Other Business
• DROP Statement Discussion
15. Public Comments
16. Adjourn
Next Meeting Date:
Wednesday August 26, 2015 @ 9AM
PLEASE NOTE:
Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such meeting or hearing, s/he
will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which
record includes the testimony and evidence upon which the appeal is to be based.
In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting
should contact the The Pension Resource Center, LLC no later than four days prior to the meeting.
PALM BEACH GARDENS POLICE
PENSION FUND
Benefit Approvals
Meeting of April 30, 2015
APPLICATION TO EXIT THE DROP
ROBERT THOMAS DATE OF BIRTH 07/16/1963
DATE OF HIRE 07/31/1988
DROP ENTRY DATE 09/30/2010
DATE OF TERMINATION 03/19/2015
FORM OF BENEFIT 10 YEAR CERTIAN
MONTHLY BENEFIT AMOUNT $6,980.94
SUPPLEMENTAL BENEFIT $ 275.00
ERNEST CARR DATE OF BIRTH 02/26/1941
DATE OF HIRE 09/291997
DROP ENTRY DATE 04/30/2010
DATE OF TERMINATION 04/30/2015
FORM OF BENEFIT LIFE ANNUITY
MONTHLY BENEFIT AMOUNT $5,889.28
SUPPLEMENTAL BENEFIT $ 150.00
RICK FACCHINE DATE OF BIRTH 10/04/1963
DATE OF HIRE 05/01/1986
DROP ENTRY DATE 05/01/2010
DATE OF TERMINATION 04/30/2015
FORM OF BENEFIT LIFE ANNUITY
MONTHLY BENEFIT AMOUNT $10,686.89
SUPPLEMENTAL BENEFIT $ 300.00
JACK SEGRETO DATE OF BIRTH 02/02/1965
DATE OF HIRE 12/06/1989
DROP ENTRY DATE 05/01/2010
DATE OF TERMINATION 04/30/2015
FORM OF BENEFIT LIFE ANNUITY
MONTHLY BENEFIT AMOUNT $6,242.40
SUPPLEMENTAL BENEFIT $ 250.00
APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS
4/15/2015)
GWEN FLEMING DATE OF RETIREMENT 12/10/2014
DATE OF BIRTH 10/4/1963
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $65,000.00
TAX WITHHOLDING (20%) $13,000.00
TOTAL NET DISTRIBUTION $52,000.00
CURRENT DROP ACCOUNT BALANCE $259,617.88
ROBERT THOMAS DATE OF RETIREMENT 03/19/2015
DATE OF BIRTH 07/16/1963
TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH
TOTAL GROSS DISTRIBUTION $15,000.00
TAX WITHHOLDING (20%) $ 3,000.00
TOTAL NET DISTRIBUTION $12,000.00
CURRENT DROP ACCOUNT BALANCE $409,295.08
SECRETARY
APPROVED _________________________________, TRUSTEE
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CITY OF PALM BEACH GARDENS POLICE OFFICERS’ PENSION FUND
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2014
ANNUAL EMPLOYER CONTRIBUTION FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2016
TABLE OF CONTENTS
Section Title Page
A Discussion of Valuation Results
1. Discussion of Valuation Results 1
2. Chapter Revenue 5
B Valuation Results
1. Participant Data 6
2. Annual Required Contribution 7
3. Actuarial Value of Benefits and Assets 8
4. Calculation of Employer Normal Cost 9
5. Liquidation of Unfunded Actuarial Accrued
Liability 10
6. Actuarial Gains and Losses 12
7. Recent History of Required and Actual
Contributions 16
8. Recent History of UAAL and Funded Ratio 17
9. Actuarial Assumptions and Cost Method 18
10. Glossary of Terms 23
C Pension Fund Information
1. Statement of Plan Assets at Market Value 26
2. Reconciliation of Plan Assets 27
3. Reconciliation of DROP Accounts 28
4. Calculation of Actuarial Value of Assets 29
5. Investment Rate of Return 30
D Financial Accounting Information
1. FASB No. 35 31
2. GASB No. 27 32
3. GASB No. 67 34
E Miscellaneous Information
1. Reconciliation of Membership Data 39
2. Active Participant Distribution 40
3. Inactive Participant Distribution 41
F Summary of Plan Provisions 42
SECTION A
DISCUSSION OF VALUATION RESULTS
1
DISCUSSION OF VALUATION RESULTS
Comparison of Required Employer Contributions
A comparison of the required employer contribution developed in this year's actuarial valuation and
the previous valuation is as follows.
Required Employer/State Contribution $3,310,398 $3,357,569 $(47,171)
As % of Covered Payroll 67.88 %65.26 %2.62 %
Allowable Credit for State Contribution $412,644 $951,196 $(538,552)
As % of Covered Payroll 8.46 %18.49 %(10.03)%
Required Employer Contribution $2,897,754 $2,406,373 $491,381
As % of Covered Payroll 59.42 %46.77 %12.65 %
As % of Total Payroll including
DROP participants 31.76 %26.90 %4.86 %
Decrease)
Increase10/1/2013
Based on
10/1/2014
Valuation Valuation*
For FYE 9/30/2016 For FYE 9/30/2015
Based on
From June 10, 2014 Actuarial Impact Statement
The required employer contribution has been adjusted for interest on the basis that contributions are
made in equal payments at the end of each quarter.
The contribution has also been computed under the assumption that the amount to be received from
the State on behalf of police officers and credited towards the required contribution in 2015 and 2016 will be
the $951,196 and $412,644, respectively. The amount for 2015 includes the use of $538,552 in
accumulated excess Chapter 185 reserves. If the actual amounts differ from these amounts, then the net City
contributions should be adjusted by the difference.
Total payroll for the fiscal year ending September 30, 2016, including pay for members
participating in the DROP, is expected to be approximately $9.12 million (compared to $4.88 million for
expected non-DROP covered payroll). City contribution requirements have also been shown above as a
percentage of total payroll (including DROP members.)
2
Actual employer and allowable State contributions during the year ending September 30, 2014 were
2,712,635 and $412,644, respectively, for a total of $3,125,279. The annual required contribution was
3,125,279.
Revisions in Benefits
Effective July 1, 2016, for members who had less than ten years of service as of September 13,
2012, eligibility for normal retirement will change from attainment of age 59 with 10 years of service to the
earlier of attainment of age 55 with 10 years of service or completion of 25 years of service regardless of
age.
Effective July 1, 2016, the eligibility conditions for entry into the DROP will change to allow
participants to delay entry into the DROP until they have accrued the maximum benefit of 75% of Average
Monthly Earnings.
Effective June 5, 2014, the member contribution rate was increased by 11% of pensionable salary
from 8.60% to 19.60%). Also effective June 5, 2014, immediately following this increase, the member
contribution rate was reduced back to 8.60% of pensionable salary, using $538,552 from the Accumulated
Excess Chapter 185 Premium Tax Reserve to fund the reduction in member contributions.
Revisions in Actuarial Assumptions or Methods
The investment return assumption was lowered from 7.2% to 7.1%. This rate will continue to be
lowered by 0.1% each year until 6.5% is reached. This change has increased the required employer
contribution by 2.25% of covered payroll. There have been no other changes in assumptions or methods
since the prior valuation.
Actuarial Experience
There was a net actuarial gain of $1,184,221 for the year, which means that actual experience was
more favorable than expected. The gain is due to lower than expected salary increases (actual average
salary increases were 1.0% versus assumed salary increases of 7.5%) and gains due to recognized
investment return above the assumed rate of 7.2%. The investment return was 10.4% based on market
value of assets and 8.7% based on actuarial value of assets. The gain was partially offset by more
retirements (DROP entries) than expected and fewer terminations of employment than expected. The net
3
actuarial gain has decreased the required employer contribution by 2.76% of covered payroll.
Funded Ratio
This year’s funded ratio is 70.8% compared to 69.2% last year (based on the June 10, 2014
Actuarial Impact Statement). The funded ratio was 71.6% before the change in the investment return
assumption. The ratio is equal to the actuarial value of assets divided by the actuarial accrued (past service)
liability.
Analysis of Change in Employer Contribution
The components of change in the employer contribution rate are as follows:
Contribution rate last year 46.77 %
Change in assumptions 2.25
Payment on unfunded liability 3.52
Experience (gain)/loss (2.76)
Change in Normal Cost Rate (0.55)
Change in administrative expense 0.16
Change in State revenue 10.03
Contribution rate this year 59.42
Variability of Future Contribution Rates
The Actuarial Cost Method used to determine the contribution rate is intended to produce
contribution rates which are generally level as a percent of payroll. Even so, when experience differs
from the assumptions, as it often does, the employer’s contribution rate can vary significantly from year-
to-year.
Over time, if the year-to-year gains and losses offset each other, the contribution rate would be
expected to return to the current level, but this does not always happen.
The Market Value of Assets exceeds the Actuarial Value of Assets by $3,792,466 as of the
valuation date (see Section C). This difference will be gradually recognized in the absence of offsetting
losses. In turn, the computed employer contribution rate will decrease by approximately 8.8% of covered
payroll.
Another area of variability has to do with the annual payment on the unfunded accrued liability
UAL). This payment is computed as a level percent of covered payroll under the assumption that
covered payroll will rise by 5% per year. According to Chapter 112, Florida Statutes, this payroll growth
4
assumption may not exceed the average growth over the last ten years, which was (3.68%) during the ten-
year period ending September 30, 2014 and (1.99%) during the ten-year period ending September 30,
2013. Therefore, the UAL continues to be amortized as a level dollar amount this year.
Relationship to Market Value
If Market Value had been the basis for the valuation, the required net City contribution rate would
have been 50.63% and the funded ratio would have been 75.57%. The market value-based funded ratio
was 73.15% last year. In the absence of other gains and losses, and before recognition of the additional
phase-in of the change in the investment return assumption, the City contribution rate should decrease to
that level over the next few years.
Conclusion
It is important to note that system assets are not sufficient to cover the liability for current inactive
members. As of October 1, 2014 the market value of assets is $60.5 million and the liability for current
inactive members is $61.2 million. Some steps have been taken to address this issue, such as lowering the
investment return assumption and shortening the amortization period for bases established on or after
October 1, 2007. The Board may want to consider further steps, such as updating the retirement rate
assumption to more closely match experience. An experience study is recommended.
The remainder of this Report includes detailed actuarial valuation results, financial information,
miscellaneous information and statistics, and a summary of plan provisions.
5
CHAPTER REVENUE
Additional premium tax revenue over that received in 1998 may be used toward the required
contribution if it is less than the cost to fund Chapter minimum benefits. Once minimums are met and
additional premium tax revenue exceeds the cost to fund Chapter minimum benefits, any subsequent
additional Chapter revenue must be used to provide extra benefits.
As of the valuation date, the only minimum benefit requirement not currently being met is the
Normal Retirement eligibility for members with less than 10 years of services as of September 13,
2012. However, this minimum benefit requirement will be met effective July 1, 2016, due to the
passage of Ordinance 9, 2014.
1.Base Amount Previous Plan Year $412,644
2.Amount Received for Previous Plan Year 546,749
3.Benefit Improvements Made in Previous Plan Year 0
4.Excess Funds for Previous Plan Year: (2) - (1) - (3)134,105
5.Accumulated Excess at Beginning of Previous Year 601,123
6.Prior Excess Used in Previous Plan Year 0
7.Accumulated Excess as of Valuation Date
Available for Benefit Improvements): (4) + (5) - (6)735,228 *
8.Base Amount This Plan Year: (1) + (3)412,644
Actuarial Confirmation of the Use of State Chapter Money
Before reflecting the use of $538,552 to offset the required City contribution for fiscal year ending
September 30, 2015.
The Accumulated Excess shown in line 7 is being held in reserve to pay for additional benefits.
The reserve is subtracted from Plan assets (see Section C of this Report). The Base Amount in line 8 is the
former maximum amount the employer has historically taken as a credit against its required contribution; in
no event may the employer take credit for more than the actual amount of Chapter revenue received.
SECTION B
VALUATION RESULTS
6
ACTIVE MEMBERS
Number 74 75
Covered Annual Payroll $4,644,608 $4,899,915
Average Annual Payroll $62,765 $65,332
Average Age 38.9 39.1
Average Past Service 9.9 10.3
Average Age at Hire 29.0 28.8
RETIREES, BENEFICIARIES & DROP**
Number 62 57
Annual Benefits $4,532,481 $4,179,994
Average Annual Benefit $73,105 $73,333
Average Age 55.5 55.2
DISABILITY RETIREES
Number 10 10
Annual Benefits $272,822 $272,822
Average Annual Benefit $27,282 $27,282
Average Age 58.2 57.2
TERMINATED VESTED MEMBERS
Number 3 2
Annual Benefits $148,392 $124,164
Average Annual Benefit $49,464 $62,082
Average Age 42.1 42.7
From June 10, 2014 Actuarial Impact Statement
Does not include deferred supplemental benefits for DROP members
PARTICIPANT DATA
October 1, 2014 October 1, 2013*
7
A.Valuation Date October 1, 2014 October 1, 2014
B.ARC to Be Paid During
Fiscal Year Ending 9/30/2016 9/30/2016 9/30/2015
C.Assumed Dates of Employer
Contributions Quarterly Quarterly Quarterly
D.Annual Payment to Amortize
Unfunded Actuarial Liability $2,073,095 $1,996,502 $2,069,763
E.Employer Normal Cost 948,963 923,769 993,497
F.ARC if Paid on the Valuation
Date: D+E 3,022,058 2,920,271 3,063,260
G.ARC Adjusted for Frequency of
Payments 3,152,671 3,048,237 3,197,492
H.ARC as % of Covered Payroll 67.88 %65.63 %65.26 %
I.Assumed Rate of Increase in Covered
Payroll to Contribution Year 5.00 %5.00 %5.00 %
J.Covered Payroll for Contribution Year 4,876,838 4,876,838 5,144,911
K.ARC for Contribution Year: H x J 3,310,398 3,200,669 3,357,569
L.Allowable Credit for State Revenue in
Contribution Year 412,644 412,644 951,196
M.Required Employer Contribution (REC)
in Contribution Year 2,897,754 2,788,025 2,406,373
N.REC as % of Covered Payroll in
Contribution Year: M ÷ J 59.42 %57.17 %46.77 %ANNUAL
REQUIRED CONTRIBUTION (ARC)After
Change Before Change October
1, 2013*From
June 10, 2014 Actuarial Impact Statement
8
A.Valuation Date October 1, 2014 October 1, 2014 October 1, 2013*
B.Actuarial Present Value of All Projected
Benefits for
1.Active Members
a. Service Retirement Benefits $ 26,174,328 $ 25,661,099 $ 27,864,639
b. Vesting Benefits 1,326,687 1,294,418 1,369,186
c. Disability Benefits 3,421,435 3,364,913 3,452,621
d. Preretirement Death Benefits 356,601 350,362 369,554
e. Return of Member Contributions 27,175 27,129 22,950
f. Total 31,306,226 30,697,921 33,078,950
2.Inactive Members
a. Service Retirees & Beneficiaries 57,408,045 56,842,578 52,641,668
b. Disability Retirees 2,865,007 2,842,487 2,894,330
c. Terminated Vested Members 967,399 949,934 820,252
d. Total 61,240,451 60,634,999 56,356,250
3. Total for All Members 92,546,677 91,332,920 89,435,200
C.Actuarial Accrued (Past Service)
Liability per GASB No. 25 80,119,974 79,243,383 76,848,944
D.Actuarial Value of Accumulated Plan
Benefits per FASB No. 35 77,156,150 76,298,516 73,313,409
E.Plan Assets
1.Market Value 60,549,803 60,549,803 55,660,784
2. Actuarial Value 56,757,337 56,757,337 53,201,682
F.Unfunded Actuarial Accrued Liability: C - E2 23,362,637 22,486,046 23,647,262
G.Actuarial Present Value of Projected
Covered Payroll 48,544,365 48,235,525 49,399,426
H.Actuarial Present Value of Projected
Member Contributions 4,174,816 4,148,255 4,248,351
I.Accumulated Value of Contributions
for Active Members 3,889,790 3,889,790 4,089,690
J.Funded Ratio: E2 ÷ C 70.8%71.6%69.2%ACTUARIAL
VALUE OF BENEFITS AND ASSETS Before
ChangeAfterChangeFrom
June 10, 2014 Actuarial Impact Statement
9
CALCULATION OF EMPLOYER NORMAL COST
A.Valuation Date October 1, 2014
After Change Before Change
B.Normal Cost for
1.Service Retirement Benefits $897,771 $877,751 $952,373
2.Vesting Benefits 93,337 91,318 99,129
3.Disability Benefits 210,294 207,388 216,197
4.Preretirement Death Benefits 20,751 20,451 21,450
5.Return of Member Contributions 9,867 9,918 10,453
6.Total for Future Benefits 1,232,020 1,206,826 1,299,602
7.Assumed Amount for Administrative
Expenses 116,379 116,379 115,288
8.Total Normal Cost 1,348,399 1,323,205 1,414,890
9.Total as a % of Covered Payroll 29.03%28.49%28.88%
C.Expected Member Contribution 399,436 399,436 421,393
D.Employer Normal Cost: B8-C 948,963 923,769 993,497
E.Employer Normal Cost as a % of
Covered Payroll 20.43%19.89%20.28%
October 1, 2013*October 1, 2014
From June 10, 2014 Actuarial Impact Statement
10
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY
A. UAAL Amoritzation Period and Payments
Amortization
Period Years
Years (Years)Amount Remaining Amount After Change Before Change
7/1/1986 30 4,147$ 2 720$ 372$ 373$
10/1/1991 30 (1,504)7 (727)(126)(127)
10/1/1991 30 286,223 7 137,786 23,955 24,016
10/1/1992 30 122,611 8 65,283 10,248 10,278
10/1/1993 30 (194,444)9 (113,620)(16,352)(16,407)
10/1/1995 30 796,975 11 650,793 81,438 81,767
10/1/1996 30 (189,977)12 (170,693)(20,173)(20,261)
10/1/2000 30 3,639,273 16 4,053,774 403,334 405,622
10/1/2005 30 975,210 21 1,093,632 94,998 95,670
10/1/2005 30 5,273,728 21 5,914,124 513,728 517,362
10/1/2006 30 12,571,515 22 13,769,348 1,171,960 1,180,546
10/1/2007 15 (251,668)8 (189,634)(29,767)(29,855)
10/1/2008 15 3,319,494 9 2,662,028 383,123 384,392
10/1/2009 15 (137,951)10 (114,537)(15,297)(15,353)
10/1/2010 15 348,981 11 301,421 37,719 37,871
10/1/2011 15 (718,288)12 (639,068)(75,527)(75,858)
10/1/2011 15 847,054 12 753,631 89,066 89,457
10/1/2011 15 (6,706,717)12 (5,967,029)(705,200)(708,291)
10/1/2012 15 (751,599)13 (724,281)(81,375)(81,759)
10/1/2012 15 792,519 13 763,713 85,805 86,210
10/1/2013 15 (151,072)14 (149,234)(16,029)(16,110)
10/1/2013 15 836,318 14 826,143 88,733 89,180
10/1/2013 15 755,890 14 746,694 80,199 80,604
10/1/2014 15 (1,184,221)15 (1,184,221)(122,170)(122,825)
10/1/2014 15 876,591 15 876,591 90,433 N/A
21,159,088$ 23,362,637$ 2,073,095$ 1,996,502$
Original UAAL Current UAAL
Payment
11
B. Amortization Schedule
The UAAL is being amortized as a level percent of payroll, but is currently being amortized as a level
dollar amount due to the 10-year historical average payroll growth rate. The expected amortization schedule
is as follows:
2014 $23,362,637
2015 22,801,096
2016 22,199,689
2017 21,555,981
2018 20,866,569
2019 20,128,210
2024 16,003,182
2029 10,242,238
2034 2,874,953
2036 0
Year Expected UAAL
Amortization Schedule
12
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment turnover, investment income, expenses,
salary increases, and other factors have been based on long range trends and expectations. Actual
experience can vary from these expectations. The variance is measured by the gain and loss for the period
involved. If significant long term experience reveals consistent deviation from what has been expected and
that deviation is expected to continue, the assumptions should be modified. The net actuarial gain (loss) for
the past year is computed as follows:
1.Last Year's UAAL (from Actuarial
Impact Statement)$23,647,262
2.Last Year's Employer Normal Cost 1,414,890
3.Last Year's Employer Contributions 3,125,279
4. Interest at the Assumed Rate on:
a.1 and 2 for one year 1,804,475
b.3 from dates paid 71,081
c. a - b 1,733,394
5.This Year's Expected UAAL Prior to Revision:
1 + 2 - 3 + 4c 23,670,267
6.Change in UAAL Due to Plan Amendments
and/or Changes in Actuarial Assumptions 876,591
7.This Year's Expected UAAL: 5 + 6 24,546,858
8.This Year's Actual UAAL 23,362,637
9.Net Actuarial Gain (Loss): 7 - 8 1,184,221
10.Gain (Loss) Due to Investments 948,117
11.Gain (Loss) from Other Sources 236,104
13
Experience gains/losses for the past few years are as follows:
Year Ending
September 30 Gain (Loss)
1996 $(284,232)
1997 (994,552)
1998 (674,477)
1999 (424,754)
2000 68,592
2001 (435,534)
2002 (2,162,823)
2003 (949,324)
2004 (246,347)
2005 (1,006,694)
2006 (1,517,294)
2007 251,668
2008 (3,319,494)
2009 137,951
2010 (348,981)
2011 718,288
2012 751,599
2013 151,072
2014 1,184,221
14
The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan
so it is important that they are in line with the actual experience. The following table shows the actual fund
earnings and salary increase rates compared to the assumed rates for the last several years:
Year Ending
9/30/1990 9.1 %8.0 %9.1 %6.5 %
9/30/1991 8.6 8.0 9.5 6.5
9/30/1992 8.2 8.0 10.9 6.5
9/30/1993 8.8 8.0 14.1 6.5
9/30/1994 2.4 8.0 0.6 6.5
9/30/1995 18.2 8.0 12.8 6.5
9/30/1996 5.2 8.0 3.6 6.5
9/30/1997 10.3 8.0 11.5 *6.5
9/30/1998 9.2 8.0 10.0 6.5
9/30/1999 9.6 8.0 8.4 6.5
9/30/2000 9.0 8.0 5.9 6.5
9/30/2001 6.3 8.5 1.1 6.0
9/30/2002 (1.6)8.5 11.8 6.0
9/30/2003 3.7 8.5 7.4 6.0
9/30/2004 3.9 8.5 16.4 6.0
9/30/2005 4.8 8.5 3.6 6.0
9/30/2006 6.5 8.5 9.7 6.0
9/30/2007 8.1 7.5 8.8 7.5
9/30/2008 3.6 7.5 13.8 7.5
9/30/2009 4.4 7.5 1.0 7.5
9/30/2010 5.6 7.5 7.7 7.5
9/30/2011 4.6 7.5 (1.9)7.5
9/30/2012 7.0 7.4 0.4 7.5
9/30/2013 8.4 7.3 4.8 7.5
9/30/2014 8.7 7.2 1.0 7.5
Average for
Years Shown 6.8 N/A 7.2 N/A
SalaryIncreasesInvestmentReturn
Actual Assumed Actual Assumed
Actual raises during the year were less than 10.0%. However, there was a problem of underreporting of
compensation in the previous year that resulted in the 11.5% average increase.
The actual investment return rates shown above are based on the actuarial value of assets. The actual
salary increase rates shown above are the increases received by those active members who were included in
the actuarial valuations both at the beginning and the end of each year.
15
Active
Members
Year Vested Other End of
Ended A E A E A E A E A A A E Year
9/30/2002 10 5 2 4 0 0 0 0 1 2 3 2 90
9/30/2003 14 9 3 5 1 0 0 0 1 4 5 3 95
9/30/2004 10 7 2 6 1 0 0 0 1 3 4 3 98
9/30/2005 11 4 2 8 0 0 0 0 0 2 2 3 105
9/30/2006 7 5 1 9 0 1 0 0 0 4 4 3 107
9/30/2007 5 5 3 6 0 1 0 0 1 1 2 3 107
9/30/2008 2 3 3 5 0 1 0 0 0 0 0 3 106
9/30/2009 5 7 6 8 0 1 0 0 1 0 1 3 104
9/30/2010 3 14 11 5 0 1 0 0 1 2 3 3 93
9/30/2011 4 13 11 2 0 1 0 0 0 2 2 2 84
9/30/2012 2 12 8 1 0 0 1 0 0 3 3 2 74
9/30/2013 7 6 4 0 0 0 0 0 1 1 2 2 75
9/30/2014 5 6 5 1 0 0 0 0 1 0 1 2 74
9/30/2015 0 0 0 2
13 Yr Totals *85 96 61 60 2 6 1 0 8 24 32 34
Totals are through current Plan Year only.
Totals
During DROP
Year Retirement Retirement Death
Service &
Disability
Actual (A) Compared to Expected (E) Decrements
Among Active Employees
Number
Added
Terminations
Amount Amount Amount Employer State Total
10/1/1993 9/30/1994 $242,083 8.36 %$135,153 4.67 %$106,930 3.69 %$117,381 $151,324 $268,705
10/1/1994 9/30/1995 244,317 7.76 148,072 4.70 96,245 3.06 96,245 162,247 258,492
10/1/1995 9/30/1996 404,856 12.02 162,247 4.82 242,609 7.20 242,609 195,597 438,206
10/1/1996 9/30/1997 438,074 12.24 195,597 5.47 242,477 6.78 242,477 227,106 469,583
10/1/1997 9/30/1998 592,522 15.30 227,106 5.86 365,416 9.44 365,416 235,819 601,235
10/1/1998 9/30/1999 760,142 16.98 235,819 5.27 524,323 11.71 524,323 236,636 760,959
10/1/1999 9/30/2000 853,790 18.09 235,819 5.00 617,971 13.09 638,017 215,773 853,790
10/1/2000 9/30/2001 935,273 18.14 215,773 4.18 719,500 13.95 719,500 225,892 945,392
10/1/2001 9/30/2002 1,005,662 20.49 225,892 4.60 779,770 15.89 779,770 235,818 1,015,588
10/1/2002 9/30/2003 1,425,328 25.58 235,818 4.23 1,189,510 21.35 1,189,510 235,818 1,425,328
10/1/2002 9/30/2004 1,475,340 25.58 235,818 4.09 1,239,522 21.49 1,239,522 235,818 1,475,340
10/1/2003 9/30/2005 1,704,041 27.49 235,818 3.80 1,468,223 23.69 1,468,223 235,818 1,704,041
10/1/2004 9/30/2006 1,931,054 27.62 235,818 3.37 1,695,236 24.25 1,695,236 412,644 2,107,880
10/1/2005 9/30/2007 3,176,791 41.86 412,644 5.44 2,764,147 36.42 2,764,147 412,644 3,176,791
10/1/2006 9/30/2008 3,556,548 40.70 412,644 4.72 3,143,904 35.98 3,143,904 412,644 3,556,548
10/1/2007 9/30/2009 3,762,323 40.19 412,644 4.41 3,349,679 35.78 3,349,679 412,644 3,762,323
10/1/2008 9/30/2010 4,368,612 42.27 412,644 3.99 3,955,968 38.28 3,955,968 412,644 4,368,612
10/1/2009 9/30/2011 4,298,216 44.06 412,644 4.23 3,885,572 39.83 3,885,572 412,644 4,298,216
10/1/2010 9/30/2012 4,198,183 47.04 412,644 4.62 3,785,539 42.42 3,785,539 412,644 4,198,183
10/1/2011 9/30/2013 3,113,406 51.80 412,644 6.87 2,700,762 44.93 2,700,762 412,644 3,113,406
10/1/2012 9/30/2014 3,125,279 60.62 412,644 8.00 2,712,635 52.62 2,712,635 412,644 3,125,279
10/1/2013 9/30/2015 3,357,569 65.26 951,196 18.49 2,406,373 46.77 ---------
10/1/2014 9/30/2016 3,310,398 67.88 412,644 8.46 2,897,754 59.42 ---------
Required Contributions
RECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
End of
Year To
Which
Valuation
Applies
Actual Contributions
Valuation
Date
of
Payroll
Net Employer
of
Payroll
Estimated State
of
Payroll
Employer & State
16
RECENT HISTORY OF UAAL AND FUNDED RATIO
10/1/1993 $2,424,981 $2,479,049 $54,068 97.8 %$2,896,359 1.9 %
10/1/1994 2,714,651 2,552,412 (162,239)106.4 3,148,412 (5.2)
10/1/1995 3,517,565 3,807,393 289,828 92.4 3,367,324 8.6
10/1/1996 4,443,592 4,855,280 411,688 91.5 3,578,473 11.5
10/1/1997 5,511,310 6,954,077 1,442,767 79.3 3,872,799 37.3
10/1/1998 6,700,726 8,988,231 2,287,505 74.5 4,476,807 51.1
10/1/1999 8,162,736 11,019,072 2,856,336 74.1 4,720,813 60.5
10/1/2000 9,795,534 14,097,068 4,301,534 69.5 5,156,136 83.4
10/1/2001 11,417,844 16,106,731 4,688,887 70.9 4,908,315 95.5
10/1/2002 12,303,486 19,140,962 6,837,476 64.3 5,572,514 122.7
10/1/2003 14,231,515 22,196,413 7,964,898 64.1 5,989,146 133.0
10/1/2004 16,405,794 24,962,551 8,556,757 65.7 6,755,078 126.7
10/1/2005 18,950,104 35,004,203 16,054,099 54.1 7,332,448 218.9
10/1/2006 22,740,838 46,503,218 23,762,380 48.9 8,322,332 285.5
10/1/2007 27,799,386 52,230,511 24,431,125 53.2 8,915,563 274.0
10/1/2008 32,261,274 60,450,441 28,189,167 53.4 9,842,874 286.4
10/1/2009 36,834,622 65,550,027 28,715,405 56.2 9,290,829 309.1
10/1/2010 41,948,009 71,341,740 29,393,731 58.8 8,499,722 345.8
10/1/2011 45,709,740 68,822,738 23,112,998 66.4 5,724,225 403.8
10/1/2012 49,859,298 72,156,731 22,297,433 69.1 4,910,023 454.1
10/1/2013 53,201,682 76,848,944 23,647,262 69.2 4,899,915 482.6
10/1/2014 56,757,337 80,119,974 23,362,637 70.8 4,644,608 503.0
Actuarial
Valuation Date
UAAL As % of
Covered Payroll
b - a) / c
Covered Payroll
c)
Funded Ratio
a) / (b)
Actuarial Value of
Assets
a)
Unfunded AAL (UAAL)
b) - (a)
Actuarial Accrued
Liability (AAL) - Entry
Age
b)
17
18
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuation Methods
Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered
before and after the valuation date were determined using an Individual Entry-Age Actuarial Cost
Method having the following characteristics:
i) the annual normal cost for each individual active member, payable from the date of
employment to the date of retirement, is sufficient to accumulate the value of the member’s
benefit at the time of retirement;
ii) each annual normal cost is a constant percentage of the member’s year by year projected
covered pay.
Actuarial gains/(losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability.
Financing of Unfunded Actuarial Accrued Liabilities - Unfunded Actuarial Accrued Liabilities (full
funding credit if assets exceed liabilities) were amortized by level (principal & interest combined)
percent-of-payroll contributions over a reasonable period of future years.
Actuarial Value of Assets - The Actuarial Value of Assets phase in the difference between the expected
actuarial value and actual market value of assets at the rate of 20% per year. The Actuarial Value of
Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80%
of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan assets.
During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will
tend to be less than Market Value. During periods when investment performance is less than assumed
rate, Actuarial Value of Assets will tend to be greater than Market Value.
Valuation Assumptions
The actuarial assumptions used in the valuation are shown in this Section.
Economic Assumptions
The investment return rate assumed in the valuation is 7.1% per year, compounded annually (net after
investment expenses). This assumption is being lowered by 0.1% each year until 6.5% is reached.
The Wage Inflation Rate assumed in this valuation was 3% per year. The Wage Inflation Rate is
defined to be the portion of total pay increases for an individual that are due to macro-economic forces
including productivity, price inflation, and labor market conditions. The wage inflation rate does not
include pay changes related to individual merit and seniority effects.
The assumed real rate of return over wage inflation is defined to be the portion of total investment
return that is more than the assumed wage inflation rate. Considering other economic assumptions, the
7.1% investment return rate translates to an assumed real rate of return over wage inflation of 4.1%.
19
The rate of salary increase used for individual members is 7.5% per year. Part of the assumption is for
merit and/or seniority increase, and 3% recognizes wage inflation, including price inflation, productivity
increases, and other macroeconomic forces. This assumption is used to project a member’s current salary
to the salaries upon which benefits will be based.
For purposes of financing the unfunded liabilities, total payroll is assumed to grow at 5% per year.
According to Chapter 112, Florida Statutes, this payroll growth assumption may not exceed the average
growth over the last ten years which was (3.68%). Therefore, unfunded liabilities are being amortized
this year as a level dollar amount, with no assumed payroll growth.
Demographic Assumptions
The mortality table was the RP-2000 Combined Healthy Participant Mortality Tables for males and
females. Mortality improvement is being projected to all future years from the year 2000 using Scale AA,
making it a fully generational mortality table.
Sample
Attained
Ages (in 2014)Men Women Men Women
50 0.17 %0.13 %34.26 35.63
55 0.28 0.24 29.14 30.66
60 0.54 0.47 24.21 25.89
65 1.05 0.90 19.60 21.40
70 1.80 1.56 15.41 17.28
75 3.11 2.51 11.63 13.56
80 5.59 4.16 8.41 10.25
Probability of Future Life
Dying Next Year Expectancy (years)
This assumption is used to measure the probabilities of each benefit payment being made after retirement.
For active members, the probabilities of dying before retirement were based upon the same mortality table
as members dying after retirement (75% of deaths are assumed to be service-connected).
For disabled retirees, the regular mortality tables are set forward 5 years in ages to reflect impaired
longevity.
20
The rates of retirement used to measure the probability of eligible members who had at least 10 years of
service as of September 13, 2012 retiring during the next year are as follows:
42 - 45 46-47 48-49 50 51 52 53 54 55 56 57-59 60
10 0.0%0.0%0.0%2.5%2.5%20.0%20.0%20.0%55.0%65.0%65.0%100.0%
11 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
12 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
13 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
14 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
15 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
16 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
17 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
18 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
19 0.0%0.0%0.0%2.5%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0%
20 20.0%22.5%22.5%25.0%27.5%30.0%40.0%45.0%70.0%80.0%80.0%100.0%
21 5.0%5.0%10.0%12.5%12.5%12.5%15.0%15.0%47.5%65.0%65.0%100.0%
22 5.0%5.0%10.0%12.5%12.5%12.5%15.0%15.0%47.5%65.0%65.0%100.0%
23 5.0%5.0%10.0%15.0%15.0%15.0%15.0%15.0%47.5%65.0%65.0%100.0%
24 5.0%5.0%10.0%15.0%15.0%15.0%15.0%15.0%47.5%65.0%65.0%100.0%
25 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
S
e
r
v
i
c
e
Age
The probability of normal retirement for members who had less than 10 years of service as of September 13,
2012 is as follows:
Age
42 - 49 50 - 54 55 56 57 58 59 60
10 0.0%2.5%20.0%20.0%20.0%55.0%65.0%100.0%
11 - 19 0.0%2.5%10.0%10.0%10.0%47.5%57.5%100.0%
20 0.0%2.5%30.0%40.0%45.0%70.0%80.0%100.0%
21 - 22 0.0%2.5%12.5%15.0%15.0%47.5%65.0%100.0%
23 - 24 0.0%2.5%15.0%15.0%15.0%47.5%65.0%100.0%
25 - 26 15.0%15.0%15.0%15.0%15.0%47.5%65.0%100.0%
27 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
S
e
r
v
i
c
e
Also, if at any point a member reaches the maximum benefit of 75% of his or her Average Monthly
Earnings, his or her probability of retirement is assumed to be 100%.
Rates of separation from active membership were as shown below (rates do not apply to members
eligible to retire and do not include separation on account of death or disability). This assumption
measures the probabilities of members remaining in employment.
Sample
Ages
20 6.0 %
25 5.7
30 5.0
35 3.8
40 2.6
45 1.6
50 0.8
55 0.3
of Active Members
Separating Within Next Year
21
Rates of disability among active members (75% of disabilities are assumed to be service-connected).
Sample
Ages
20 0.21 %
25 0.23
30 0.27
35 0.35
40 0.45
45 0.77
50 1.50
55 2.32
Becoming Disabled
within Next Year
22
Miscellaneous and Technical Assumptions
Administrative & Investment
Expenses
The investment return assumption is intended to be the return net of
investment expenses. Annual administrative expenses are assumed to
be equal to the average of the prior two years’ expenses. Assumed
administrative expenses are added to the Normal Cost.
Benefit Service Exact fractional service is used to determine the amount of benefit
payable.
Decrement Operation Disability and mortality decrements operate during retirement
eligibility.
Decrement Timing Decrements of all types are assumed to occur at the beginning of the
year.
Eligibility Testing Eligibility for benefits is determined based upon the age nearest
birthday and service nearest whole year on the date the decrement is
assumed to occur.
Forfeitures For vested separations from service, it is assumed that 0% of members
separating will withdraw their contributions and forfeit an employer
financed benefit. It was further assumed that the liability at
termination is the greater of the vested deferred benefit (if any) or the
member’s accumulated contributions.
Incidence of Contributions Employer contributions are assumed to be made in equal installments
at the end of each quarter. Member contributions are assumed to be
received continuously throughout the year based upon the computed
percent of payroll shown in this report, and the actual payroll payable
at the time contributions are made.
Liability Load Projected normal and early retirement benefits are loaded based on the
dollar amount of each active member’s frozen accrued leave as of
September 13, 2012 to allow for the inclusion of unused sick and
vacation pay (frozen as of September 13, 2012) in final average
earnings.
Marriage Assumption 100% of males and 100% of females are assumed to be married for
purposes of death-in-service benefits. Male spouses are assumed to be
three years older than female spouses for active member valuation
purposes.
Normal Form of Benefit A 10-year certain and life annuity is the normal form of benefit.
Pay Increase Timing Middle of fiscal year. This is equivalent to assuming that reported pays
represent amounts paid to members during the year ended on the
valuation date.
Service Credit Accruals It is assumed that members accrue one year of service credit per year.
23
GLOSSARY
Actuarial Accrued Liability
AAL)
The difference between the Actuarial Present Value of Future Benefits,
and the Actuarial Present Value of Future Normal Costs.
Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities,
such as: mortality, withdrawal, disablement, and retirement; future
increases in salary; future rates of investment earnings; future investment
and administrative expenses; characteristics of members not specified in
the data, such as marital status; characteristics of future members; future
elections made by members; and other items.
Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits
between the Actuarial Present Value of Future Normal Costs and the
Actuarial Accrued Liability.
Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and based
on a given set of Actuarial Assumptions.
Actuarial Present Value
APV)
The amount of funds required to provide a payment or series of payments
in the future. It is determined by discounting the future payments with an
assumed interest rate and with the assumed probability each payment will
be made.
Actuarial Present Value of
Future Benefits (APVFB)
The Actuarial Present Value of amounts which are expected to be paid at
various future times to active members, retired members, beneficiaries
receiving benefits, and inactive, nonretired members entitled to either a
refund or a future retirement benefit. Expressed another way, it is the
value that would have to be invested on the valuation date so that the
amount invested plus investment earnings would provide sufficient assets
to pay all projected benefits and expenses when due.
Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial
Accrued Liability, Actuarial Value of Assets, and related Actuarial
Present Values for a plan. An Actuarial Valuation for a governmental
retirement system typically also includes calculations of items needed for
compliance with GASB, such as the Funded Ratio and the Annual
Required Contribution (ARC).
Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for
valuation purposes. This may be the market or fair value of plan assets
or a smoothed value in order to reduce the year-to-year volatility of
calculated results, such as the funded ratio and the actuarially required
contribution (ARC).
24
Amortization Method A method for determining the Amortization Payment. The most common
methods used are level dollar and level percentage of payroll. Under the
Level Dollar method, the Amortization Payment is one of a stream of
payments, all equal, whose Actuarial Present Value is equal to the UAAL.
Under the Level Percentage of Pay method, the Amortization Payment is
one of a stream of increasing payments, whose Actuarial Present Value is
equal to the UAAL. Under the Level Percentage of Pay method, the
stream of payments increases at the rate at which total covered payroll of
all active members is assumed to increase.
Amortization Payment That portion of the plan contribution or ARC which is designed to pay
interest on and to amortize the Unfunded Actuarial Accrued Liability.
Amortization Period The period used in calculating the Amortization Payment.
Annual Required
Contribution (ARC)
The employer’s periodic required contributions, expressed as a dollar
amount or a percentage of covered plan compensation, determined under
GASB. The ARC consists of the Employer Normal Cost and
Amortization Payment.
Closed Amortization Period A specific number of years that is reduced by one each year, and declines
to zero with the passage of time. For example if the amortization period is
initially set at 30 years, it is 29 years at the end of one year, 28 years at the
end of two years, etc.
Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is
equal to the Normal Cost less expected member contributions.
Equivalent Single
Amortization Period
For plans that do not establish separate amortization bases (separate
components of the UAAL), this is the same as the Amortization Period.
For plans that do establish separate amortization bases, this is the period
over which the UAAL would be amortized if all amortization bases were
combined upon the current UAAL payment.
Experience Gain/Loss A measure of the difference between actual experience and that expected
based upon a set of Actuarial Assumptions, during the period between two
actuarial valuations. To the extent that actual experience differs from that
assumed, Unfunded Actuarial Accrued Liabilities emerge which may be
larger or smaller than projected. Gains are due to favorable experience,
e.g., the assets earn more than projected, salaries do not increase as fast as
assumed, members retire later than assumed, etc. Favorable experience
means actual results produce actuarial liabilities not as large as projected
by the actuarial assumptions. On the other hand, losses are the result of
unfavorable experience, i.e., actual results that produce Unfunded
Actuarial Accrued Liabilities which are larger than projected.
25
Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued
Liability.
GASB Governmental Accounting Standards Board.
GASB No. 27 and
GASB No. 67
These are the governmental accounting standards that set the accounting
rules for public retirement systems and the employers that sponsor or
contribute to them. Statement No. 27 sets the accounting rules for the
employers that sponsor or contribute to public retirement systems, while
Statement No. 67 sets the rules for the systems themselves.
Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current
plan year.
Open Amortization Period An open amortization period is one which is used to determine the
Amortization Payment but which does not change over time. In other
words, if the initial period is set as 30 years, the same 30-year period is
used in determining the Amortization Period each year. In theory, if an
Open Amortization Period is used to amortize the Unfunded Actuarial
Accrued Liability, the UAAL will never completely disappear, but will
become smaller each year, either as a dollar amount or in relation to
covered payroll.
Unfunded Actuarial Accrued
Liability
The difference between the Actuarial Accrued Liability and Actuarial
Value of Assets.
Valuation Date The date as of which the Actuarial Present Value of Future Benefits are
determined. The benefits expected to be paid in the future are discounted
to this date.
SECTION C
PENSION FUND INFORMATION
26
Statement of Plan Assets at Market Value
Item 2014 2013
A.Cash and Cash Equivalents (Operating Cash)876,826$ 849,326$
B.Receivables:
1.Member Contributions 20,279$ 30,655$
2.Employer Contributions - -
3.State Contributions 546,749 -
4.Investment Income and Other Receivables 249,069 261,309
5.Total Receivables 816,097$ 291,964$
C.Investments
1.Short Term Investments 1,159,131$ 1,896,360$
2.Domestic Equities 43,647,103 37,998,999
3.International Equities 5,592,075 5,016,371
4.Domestic Fixed Income 15,441,231 15,373,981
5.International Fixed Income 2,200,483 1,502,285
6.Real Estate 2,937,572 1,696,507
7.Private Equity - -
8.Total Investments 70,977,595$ 63,484,503$
D.Liabilities
1.Benefits Payable -$ -$
2.Accrued Expenses and Other Payables (44,187) (50,340)
3.Total Liabilities (44,187)$ (50,340)$
E.Total Market Value of Assets Available for Benefits 72,626,331$ 64,575,453$
F.Reserves
1.State Contribution Reserve (735,228)$ (601,123)$
2.DROP Accounts (11,341,300) (8,313,546)
3.Total Reserves (12,076,528)$ (8,914,669)$
G.Market Value Net of Reserves 60,549,803$ 55,660,784$
H.Allocation of Investments
1.Short Term Investments 1.6%3.0%
2.Domestic Equities 61.5%59.8%
3.International Equities 7.9%7.9%
4.Domestic Fixed Income 21.8%24.2%
5.International Fixed Income 3.1%2.4%
6.Real Estate 4.1%2.7%
7.Private Equity 0.0%0.0%
8.Total Investments 100.0%100.0%
September 30
27
Reconciliation of Plan Assets
Item 2014 2013
A.Market Value of Assets at Beginning of Year 64,575,453$ 55,261,152$
B.Revenues and Expenditures
1.Contributions
a.Member Contributions 391,188$ 432,301$
b.Employer Contributions 2,712,635 2,700,762
c.State Contributions 546,749 475,215
d.Total 3,650,572$ 3,608,278$
2.Investment Income
a.Interest, Dividends, and Other Income 788,529$ 752,092$
b.Net Realized/Unrealized Gains/(Losses)*6,205,769 7,347,888
c.Investment Expenses (195,370) (174,307)
d.Net Investment Income 6,798,928$ 7,925,673$
3.Benefits and Refunds
a.Regular Monthly Benefits (1,991,635)$ (1,974,719)$
b.Refunds (6,852) (32,872)
c.Lump Sum Benefits - -
d.DROP Distributions (286,037) (93,400)
e.Total (2,284,524)$ (2,100,991)$
4.Administrative and Miscellaneous Expenses (114,098)$ (118,659)$
5.Transfers -$ -$
C.Market Value of Assets at End of Year 72,626,331$ 64,575,453$
D.Reserves
1.State Contribution Reserve (735,228)$ (601,123)$
2.DROP Accounts (11,341,300) (8,313,546)
3.Total Reserves (12,076,528)$ (8,914,669)$
E.Market Value Net of Reserves 60,549,803$ 55,660,784$
September 30
Breakdown between realized and unrealized gains/(losses) was not provided.
28
Year
Ended
9/30
Balance at
Beginning
of Year Credits Interest Distributions Adjustments
Balance at
End of
Year
2002 -$ 25,536$ 559$ -$ -$ 26,095$
2003 26,095 35,048 962 (33,734) - 28,371
2004 28,371 67,278 4,210 - - 99,859
2005 99,859 107,716 9,307 (54,224) - 162,658
2006 162,658 88,332 13,653 - - 264,643
2007 264,643 164,844 22,183 - - 451,670
2008 451,670 188,434 24,255 (215,043) 2,665 451,981
2009 451,981 557,339 46,178 - - 1,055,498
2010 1,055,498 993,753 96,296 (91,000) - 2,054,547
2011 2,054,547 1,426,393 167,922 (254,626) - 3,394,236
2012 3,394,236 2,128,627 283,101 (227,800) - 5,578,164
2013 5,578,164 2,387,180 441,602 (93,400) - 8,313,546
2014 8,313,546 2,649,761 628,054 (286,037) 35,976 11,341,300
Reconciliation of DROP Accounts
29
Calculation of Actuarial Value of Assets
Item
A. Beginning of Year Assets*
1. Market Value $64,575,453 *$55,261,152 *
2. Actuarial Value 62,116,351 55,976,014
B. End of Year Market Value
of Assets*72,626,331 64,575,453
C. Net of Contributions
Less Disbursements 1,251,950 *1,388,628 *
D. Actual Net Investment
Earnings 6,798,928 7,925,673
E. Expected Investment
Earnings 4,517,447 4,136,934
F. End of Year Expected
Actuarial Value 67,885,748 61,501,576
G. End of Year Market Value Less
Expected Actuarial Value: B - F 4,740,583 3,073,877
H. 20% of Difference 948,117 614,775
I. End of Year Assets
1. Actuarial Value:
F + H 68,833,865 62,116,351
2. Final Actuarial Value
Within 80% to 120%
of Market Value 68,833,865 62,116,351
J. State Contribution Reserve 735,228 601,123
K. DROP Accounts 11,341,300 8,313,546
L. Final Actuarial Value of Assets:
I2 - J - K 56,757,337 53,201,682
M. Recognized Investment Earnings 5,465,564 4,751,709
N. Recognized Rate of Return 8.7%8.4%
2014 2013
Year Ending September 30
Before offset of DROP Account Balances and State Contribution Reserve.
30
1990 9.1 % 9.1 %
1991 8.6 8.6
1992 8.2 8.2
1993 8.8 8.8
1994 2.4 2.4
1995 18.2 18.2
1996 5.2 5.2
1997 24.2 10.3
1998 5.3 9.2
1999 11.6 9.6
2000 6.7 9.0
2001 (7.8) 6.3
2002 (6.5) (1.6)
2003 12.7 3.7
2004 8.6 3.9
2005 9.6 4.8
2006 6.4 6.5
2007 11.5 8.1
2008 (13.9) 3.6
2009 6.7 4.4
2010 9.8 5.6
2011 (0.4) 4.6
2012 18.0 7.0
2013 14.2 8.4
2014 10.4 8.7
Average Returns:
Last 5 Years 10.2 % 6.8 %
Last 10 Years 6.9 % 6.2 %
All Years 7.2 % 6.8 %
Investment Rate of Return
ActuarialValueMarketValue *
Year Ending
September 30
The above rates are based on the retirement system’s financial information reported to the actuary. They
may differ from figures that the investment consultant reports, in part because of differences in the
handling of administrative and investment expenses, and in part because of differences in the handling of
cash flows.
SECTION D
FINANCIAL ACCOUNTING INFORMATION
31
A.Valuation Date
B.Actuarial Present Value of Accumulated
Plan Benefits
1.Vested Benefits
a.Members Currently Receiving Payments $60,273,052 $55,535,998
b.Terminated Vested Members 967,399 820,252
c.Other Members 14,841,588 15,964,054
d.Total 76,082,039 72,320,304
2.Non-Vested Benefits 1,074,111 993,105
3.Total Actuarial Present Value of Accumulated
Plan Benefits: 1d + 2 77,156,150 73,313,409
4.Accumulated Contributions of Active Members 3,889,790 4,089,690
C.Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1.Total Value at Beginning of Year 73,313,409 70,152,684
2.Increase (Decrease) During the Period
Attributable to:
a.Plan Amendment and Change in
Actuarial Assumptions 1,385,824 820,138
c.Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period 7,105,165 6,735,358
d.Benefits Paid (net basis)(4,648,248)(4,394,771)
e.Net Increase 3,842,741 3,160,725
3.Total Value at End of Period 77,156,150 73,313,409
D.Market Value of Assets 60,549,803 55,660,784
E.Actuarial Assumptions - See page entitled
Actuarial Assumptions and Methods
October 1, 2014 October 1, 2013
FASB NO. 35 INFORMATION
32
Employer FYE September 30 2014 2013
Annual Required Contribution (ARC)*3,125,279$ 3,113,406$
Interest on Net Pension Obligation (NPO)(13,513) (14,017)
Adjustment to ARC (17,537) (18,347)
Annual Pension Cost (APC)3,129,303 3,117,736
Contributions made 3,125,279 3,113,406
Increase (decrease) in NPO 4,024 4,330
NPO at beginning of year (187,686) (192,016)
NPO at end of year (183,662) (187,686)
Includes expected State contribution.
ANNUAL PENSION COST AND NET PENSION OBLIGATION
GASB STATEMENT NO. 27)
Fiscal Annual Pension Actual
Year Ending Cost (APC)Contribution
9/30/2012 4,207,140$ 4,198,183$ 99.8 %(192,016)$
9/30/2013 3,117,736 3,113,406 99.9 (187,686)
9/30/2014 3,129,303 3,125,279 99.9 (183,662)
APC Contributed Obligation
THREE YEAR TREND INFORMATION
Percentage of Net Pension
33
REQUIRED SUPPLEMENTARY INFORMATION
GASB Statement No. 27
The information presented in the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation:
Valuation Date October 1, 2014
Contribution Rates
Employer (and State) 67.88%
Plan Members 8.60%
Actuarial Cost Method Entry Age Normal
Amortization Method Level percent, closed
Remaining Amortization Period 22 years
Asset Valuation Method Recognizes 20% of difference
between market value of assets
and expected actuarial asset
value
Actuarial Assumptions
Investment rate of return 7.1%
Projected salary increases 7.5%
Includes inflation and other general increases at 3.0%
Cost-of-living adjustments Not Applicable
34
SCHEDULE OF CHANGES IN THE EMPLOYER’S
NET PENSION LIABILITY AND RELATED RATIOS
GASB Statement No. 67
Fiscal year ending September 30,2015*2014
Total pension liability
Service Cost 1,232,020$ 1,229,681$
Interest 6,323,716 6,083,570
Benefit Changes - 885,269
Difference between actual & expected experience 343,789 (56,911)
Assumption Changes 938,829 -
Benefit Payments (4,852,873) (2,277,672)
Refunds (5,702) (6,852)
Other (Net Decrease in State Contribution Reserve)(404,447) 134,105
Net Change in Total Pension Liability 3,575,332 5,991,190
Total Pension Liability - Beginning 90,998,913 85,007,723
Total Pension Liability - Ending (a)94,574,245$ 90,998,913$
Plan Fiduciary Net Position
Contributions - Employer 2,406,373$ 2,712,635$
Contributions - Non-Employer Contributing Entity 546,749 546,749
Contributions - Member 399,436 391,188
Net Investment Income 5,079,321 6,798,928
Benefit Payments (4,852,873) (2,277,672)
Refunds (5,702) (6,852)
Administrative Expense (120,440) (114,098)
Other - -
Net Change in Plan Fiduciary Net Position 3,452,864 8,050,878
Plan Fiduciary Net Position - Beginning 72,626,331 64,575,453
Plan Fiduciary Net Position - Ending (b)76,079,195$ 72,626,331$
Net Pension Liability - Ending (a) - (b)18,495,050 18,372,582
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability 80.44 %79.81 %
Covered Employee Payroll 4,644,608$ 4,548,698$
Net Pension Liability as a Percentage
of Covered Employee Payroll 398.20 %403.91 %
These figures are estimates only. Actual figures will be provided after the end of the
fiscal year.
35
SCHEDULE OF THE EMPLOYER’S NET PENSION LIABILITY
GASB Statement No. 67
Total Plan Net Position Net Pension Liability
FY Ending Pension Plan Net Net Pension as a % of Total Covered as a % of
September 30,Liability Position Liability Pension Liability Payroll Covered Payroll
2014 90,998,913$ 72,626,331$ 18,372,582$ 79.81%4,548,698$ 403.91%
2015*94,574,245 76,079,195 18,495,050 80.44%4,644,608 398.20%
These figures are estimates only. Actual figures will be provided after the end of the fiscal
year.
36
SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
Actuarially Contribution Actual Contribution
FY Ending Determined Actual Deficiency Covered as a % of
September 30,Contribution Contribution (Excess)Payroll Covered Payroll
2014 3,125,279$ 3,125,279$ -$ 4,548,698$ 68.71%
2015*3,357,569$ 3,357,569$ -$ 4,644,608$ 72.29%
These figures are estimates only. Actual figures will be provided after the end of the fiscal
year.
37
NOTES TO SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
Valuation Date:October 1, 2014
Notes Actuarially determined contribution rates are calculated as of October
1,which is two year(s)prior to the end of the fiscal year in which
contributions are reported.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percent, Closed
Remaining Amortization Period 21 years
Asset Valuation Method Recognizes 20% of difference between market value of assets
and expected actuarial asset value
Inflation 3.0%
Salary Increases 7.50%
Investment Rate of Return 7.10%
Retirement Age Experience-based table of rates that are specific to the type of eligibility
condition
Mortality RP-2000 Combined Healthy Participant Mortality Table for males and
females with mortality improvement projected to all future years after
2000 using Scale AA
Other Information:
Notes See Discussion of Valuation Results on Page 1
38
SINGLE DISCOUNT RATE
GASB Statement No. 67
A single discount rate of 7.10% was used to measure the total pension liability. This single discount
rate was based on the expected rate of return on pension plan investments of 7.10%. The projection
of cash flows used to determine this single discount rate assumed that plan member contributions will
be made at the current contribution rate and that employer contributions will be made at rates equal
to the difference between the total actuarially determined contribution rates and the member rate.
Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments (7.10%) was applied to all periods of projected
benefit payments to determine the total pension liability.
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the
following presents the plan’s net pension liability, calculated using a single discount rate of 7.10%,
as well as what the plan’s net pension liability would be if it were calculated using a single discount
rate that is 1-percentage-point lower or 1-percentage-point higher:
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption*
Current Single Discount
1% Decrease Rate Assumption 1% Increase
6.10%7.10%8.10%
28,220,192$ 18,495,050$ 10,403,288$
These figures are estimates only. Actual figures will be provided after the end of the fiscal
year.
SECTION E
MISCELLANEOUS INFORMATION
39
A.
1.Number Included in Last Valuation 75 74
2.New Members 5 7
3.Non-Vested Employment Terminations 0 (1)
4.Vested Employment Terminations (1)(1)
5.Service Retirements 0 0
6.DROP Retirement (5)(4)
7.Disability Retirements 0 0
8.Deaths 0 0
9.Other -- Data Corrections 0 0
10.Number Included in This Valuation 74 75
B.
1.Number Included in Last Valuation 2 1
2.Additions from Active Members 1 1
3.Lump Sum Payments/Refund of Contributions 0 0
4.Payments Commenced 0 0
5.Deaths 0 0
6.Other 0 0
7.Number Included in This Valuation 3 2
1.Number Included in Last Valuation 31 28
2.Additions from Active Members 5 4
3.Retirements (2)(1)
4.Deaths Resulting in No Further Payments 0 0
5.Other 0 0
6.Number Included in This Valuation 34 31
D.
1.Number Included in Last Valuation 36 36
2.Additions from Active Members 0 0
3.Additions from Terminated Vested Members 0 0
4.Additions from DROP 2 1
5.Deaths Resulting in No Further Payments 0 (1)
6.Deaths Resulting in New Survivor Benefits 0 0
7.End of Certain Period - No Further Payments 0 0
8.Other 0 0
9.Number Included in This Valuation 38 36
RECONCILIATION OF MEMBERSHIP DATA
Active Members
Service Retirees, Disability Retirees and Beneficiaries
Terminated Vested Members
From 10/1/12From10/1/13
To 10/1/13To10/1/14
C. DROP Plan Members
40
ACTIVE PARTICIPANT DISTRIBUTION
d
Age Group 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25 & Up Totals
15-24 NO.1 1 1 0 0 0 0 0 0 0 3
TOT PAY 46,149 46,149 46,131 0 0 0 0 0 0 0 138,429
AVG PAY 46,149 46,149 46,131 0 0 0 0 0 0 0 46,143
25-29 NO.3 2 1 1 0 2 0 0 0 0 9
TOT PAY 138,447 93,221 46,131 46,131 0 99,516 0 0 0 0 423,446
AVG PAY 46,149 46,610 46,131 46,131 0 49,758 0 0 0 0 47,050
30-34 NO.1 2 0 0 0 6 2 0 0 0 11
TOT PAY 46,149 93,221 0 0 0 305,210 128,381 0 0 0 572,961
AVG PAY 46,149 46,610 0 0 0 50,868 64,190 0 0 0 52,087
35-39 NO.0 2 0 0 0 5 4 0 0 0 11
TOT PAY 0 92,298 0 0 0 274,295 232,667 0 0 0 599,260
AVG PAY 0 46,149 0 0 0 54,859 58,167 0 0 0 54,478
40-44 NO.0 0 0 0 0 4 11 6 0 0 21
TOT PAY 0 0 0 0 0 214,519 662,372 483,174 0 0 1,360,065
AVG PAY 0 0 0 0 0 53,630 60,216 80,529 0 0 64,765
45-49 NO.0 0 0 0 0 1 3 6 0 0 10
TOT PAY 0 0 0 0 0 53,390 182,878 443,192 0 0 679,460
AVG PAY 0 0 0 0 0 53,390 60,959 73,865 0 0 67,946
50-54 NO.0 0 0 0 0 2 2 3 0 0 7
TOT PAY 0 0 0 0 0 118,805 130,774 268,633 0 0 518,212
AVG PAY 0 0 0 0 0 59,402 65,387 89,544 0 0 74,030
55-59 NO.0 0 0 0 1 0 1 0 0 0 2
TOT PAY 0 0 0 0 124,792 0 60,106 0 0 0 184,898
AVG PAY 0 0 0 0 124,792 0 60,106 0 0 0 92,449
60-64 NO.0 0 0 0 0 0 0 0 0 0 0
TOT PAY 0 0 0 0 0 0 0 0 0 0 0
AVG PAY 0 0 0 0 0 0 0 0 0 0 0
65-69 NO.0 0 0 0 0 0 0 0 0 0 0
TOT PAY 0 0 0 0 0 0 0 0 0 0 0
AVG PAY 0 0 0 0 0 0 0 0 0 0 0
TOT NO.5 7 2 1 1 20 23 15 0 0 74
TOT AMT 230,745 324,889 92,262 46,131 124,792 1,065,735 1,397,178 1,194,999 0 0 4,476,731
AVG AMT 46,149 46,413 46,131 46,131 124,792 53,287 60,747 79,667 0 0 60,496
Years of Service to Valuation Date
41
INACTIVE PARTICIPANT DISTRIBUTION
Disabled Retired*
Total Total Total Total
Age Group Number Benefits Number Benefits Number Benefits Number Benefits
Under 20 - - - - - - - -
20-24 - - - - - - - -
25-29 - - - - - - - -
30-34 - - - - - - - -
35-39 1 24,228 - - - - - -
40-44 2 124,164 - - 3 193,040 - -
45-49 - - - - 9 694,927 - -
50-54 - - 4 110,723 27 2,307,406 - -
55-59 - - 2 52,775 9 673,217 - -
60-64 - - 3 91,473 3 205,675 1 33,777
65-69 - - 1 17,851 3 153,144 1 32,070
70-74 - - - - 5 217,636 1 21,589
75-79 - - - - - - - -
80-84 - - - - - - - -
85-89 - - - - - - - -
90-94 - - - - - - - -
95-99 - - - - - - - -
100 & Over - - - - - - - -
Total 3 148,392 10 272,822 59 4,445,045 3 87,436
Average Age 42 58 55 67
Terminated Vested
Deceased with
Beneficiary
Does not include deferred supplemental benefits for DROP members
SECTION F
SUMMARY OF PLAN PROVISIONS
42
SUMMARY OF PLAN PROVISIONS
A. Ordinances
The Plan was established under the Code of Ordinances for the City of Palm Beach Gardens,
Florida, Chapter 50, Article III, and was most recently amended under Ordinance No. 9, 2014
passed and adopted on July 10, 2014. The Plan is also governed by certain provisions of Chapter
185, Florida Statutes, Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code.
B. Effective Date
July 1, 1972
C. Plan Year
October 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time police officers are eligible for membership on the first day of the month coincident
with or next following date of employment.
F. Credited Service
Service is measured as the total number of full years (and fraction thereof) of continuous service
from the date of employment to the date of termination. No service is credited for any periods of
employment for which the member received a refund of employee contributions.
G. Compensation
Base pay, but not less than the amount of total W-2 Compensation prior to September 13, 2012.
H. Average Monthly Earnings (AME)
The average of Compensation over the last 5 years of Credited Service; includes a lump sum
payment of unused leave pay (no more than the dollar amount of unused leave accrued as of
September 13, 2012).
43
I. Normal Retirement
Eligibility: A member with at least ten years of service on September 13, 2012 may retire on
the first day of the month coincident with or next following the earlier of:
1) age 52 and 10 years of Credited Service, or
2) 20 years of Credited Service regardless of age.
A member with less than ten years of service on September 13, 2012 may retire on
the first day of the month coincident with or next following age 59 and 10 years of
Credited Years of Service. Effective July 1, 2016, a member with less than ten
years of service on September 13, 2012 may retire on the first day of the month
coincident with or next following the earlier of:
1) age 55 and 10 years of Credited Service, or
2) 25 years of Credited Service regardless of age.
Benefit: For service accrued before September 13, 2012, 3.5% of AME multiplied by years
of Credited Service. For service accrued after September 13, 2012, 2.75% of AME
multiplied by years of Credited Service. The maximum benefit is equal to 75% of
AME, or the percentage earned as of September 13, 2012, if greater.
Normal Form
of Benefit: 10 Years Certain and Life thereafter; other options are also available.
Supplemental
Benefit: A monthly supplemental benefit of $12.50 per year of Credited Service is payable
to all retirees and their beneficiaries in pay status.
COLA: None
J. Early Retirement
Eligibility: A member may elect to retire earlier than the Normal Retirement Eligibility upon
attainment of age 50 and 10 years of Credited Service.
Benefit: The Normal Retirement Benefit is reduced by 3.0% for each year by which the
Early Retirement date precedes the Normal Retirement date.
Normal Form
of Benefit: 10 Years Certain and Life thereafter; other options are also available.
Supplemental
Benefit: A monthly supplemental benefit of $12.50 per year of Credited Service is payable
to all retirees and their beneficiaries in pay status.
COLA: None
K. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited until the
date of actual retirement.
44
L. Service Connected Disability
Eligibility: Any member who becomes totally and permanently disabled and unable to render
useful and efficient service as a police officer for a period of at least 6 months
resulting from an act occurring in the performance of service for the City is eligible
for a disability benefit.
Benefit: 60% of the current rate of pay, but no less than the accrued Normal Retirement
Benefit taking into account compensation earned and service credited until the date
of disability. Disability benefits, when combined with Social Security, Worker’s
Compensation or any other local, state or federal government benefits, cannot
exceed and will be limited to the AME on the date of disability.
Normal Form
of Benefit: 10 Years Certain and Life thereafter; other options are also available.
Supplemental
Benefit: A monthly supplemental benefit of $12.50 per year of Credited Service is payable
to all retirees and their beneficiaries in pay status.
COLA: None
M. Non-Service Connected Disability
Eligibility: Any member with 10 years of Credited Service who becomes totally and
permanently disabled and unable to render useful and efficient service as a police
officer for a period of at least 6 months is eligible for a disability benefit.
Benefit: 2.5% of AME multiplied by Credited Service, but not less than 25% of salary or the
accrued Normal Retirement Benefit taking into account compensation earned and
service credited until the date of disability. Disability benefits, when combined
with Social Security, Worker’s Compensation or any other local, state or federal
government benefits, cannot exceed and will be limited to the AME on the date of
disability.
Normal Form
of Benefit: 10 Years Certain and Life thereafter; other options are also available.
Supplemental
Benefit: A monthly supplemental benefit of $12.50 per year of Credited Service is payable
to all retirees and their beneficiaries in pay status.
COLA: None
45
N. Death in the Line of Duty
Eligibility: Members who die as a result of personal injury or disease arising out of the
member’s actual performance of duties are eligible for survivor benefits regardless
of Credited Service.
Benefit: The surviving spouse will receive the greater of:
1) 50% of the member’s AME, or
2) the member’s accrued Normal Retirement Benefit as of the date of death with no
actuarial reduction for Early Retirement.
If there is no spouse, or if the surviving spouse dies, the spouse’s benefit determined
above shall be distributed equally among any eligible children. If there is no spouse
or eligible children, the benefit will be paid to the deceased member’s estate.
Normal Form
of Benefit: Spouse’s benefits are payable until death; children’s benefits are payable until age
18 (24 if a full-time student), marriage, death, or adoption. Benefits paid to a
member’s estate may be paid as a lump sum at the discretion of the Board of
Trustees.
Supplemental
Benefit: A monthly supplemental benefit of $12.50 per year of Credited Service is payable
to all retirees and their beneficiaries in pay status.
COLA: None
O. Other Pre-Retirement Death
Eligibility: Members are eligible for survivor benefits after the completion of 5 or more years
of Credited Service.
Benefit: The survivor benefit payable to the designated beneficiary is the member’s accrued
Normal Retirement Benefit. Benefit is payable at the member’s Early or Normal
retirement date and will be actuarially reduced for Early Retirement when
applicable.
Normal Form
of Benefit: For member’s eligible for Normal or Delayed Retirement on the date of death, the
designated beneficiary’s benefit will be paid for life. For members not yet
eligible, benefits will be paid for 10 years.
Supplemental
Benefit: A monthly supplemental benefit of $12.50 per year of Credited Service is payable
to all retirees and their beneficiaries in pay status.
COLA: None
The beneficiary of a plan member with less than 5 years of Credited Service at the time of death
will receive a refund of the member’s accumulated contributions without interest.
46
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
Q. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees
are a Single Life Annuity or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options.
R. Vested Termination
Eligibility: A member has earned a non-forfeitable right to Plan benefits after the completion of
5 years of Credited Service (see vesting table below).
Years of
Credited Service
Vested
Under 5
5
6
7
8
9
10 or more
0%
25
40
55
70
85
100
Benefit: The benefit is the member’s vested accrued Normal Retirement Benefit as of the
date of termination. Benefit begins at the member’s Normal Retirement date.
Alternatively, members with at least 10 years of Credited Service may elect to
receive an actuarially reduced Early Retirement Benefit any time after age 50.
Normal Form
of Benefit: 10 Years Certain and Life thereafter; other options are also available.
Supplemental
Benefit: A monthly supplemental benefit of $12.50 per year of Credited Service is payable
to all retirees and their beneficiaries once in pay status.
COLA: None
Members terminating employment with less than 5 years of Credited Service will receive a refund of
their own accumulated contributions without interest.
S. Refunds
Eligibility: All members terminating employment with less than 5 years of Credited Service are
eligible. Optionally, vested members (those with 5 or more years of Credited
Service) may elect a refund in lieu of the vested benefits otherwise due.
Benefit: Refund of the member’s contributions without interest.
47
T. Member Contributions
8.6% of Compensation
U. State Contributions
Chapter 185 Premium Tax Refunds
V. Employer Contributions
Any additional amount needed to fund the plan properly according to State laws.
W. Cost of Living Increases
None.
X. 13th Check
Not Applicable
Y. Deferred Retirement Option Plan
Eligibility: A member who had at least ten years of Credited Service as of September 13, 2012
may enter the DROP on the first day of the month coincident with or next following
the earlier of:
1) age 52 and 10 years of Credited Service, or
2) 20 years of Credited Service regardless of age.
Members with less than ten years of Credited Service on September 13, 2012 may
enter the DROP on the first day of the month coincident with or next following:
age 59 and 10 years of Credited Service.
Effective July 1, 2016, a member with less than ten years of Credited Service on
September 13, 2012 may enter the DROP on the first day of the month coincident
with or next following the earlier of:
1) age 55 and 10 years of Credited Service, or
2) 25 years of Credited Service regardless of age.
Also, effect July 1, 2016, members may delay entry into the DROP until the
maximum benefit percentage of 75% of Average Monthly Earnings is attained.
Members who meet eligibility must submit a written election to participate in the
DROP. The election to participate must be made within the first 28.5 years of
Credited Service and members can no longer participate after attaining 33.5 years of
employment service.
Benefit: The member’s Credited Service and AME are frozen upon entry into the DROP.
The monthly retirement benefit as described under Normal Retirement is calculated
based upon the frozen Credited Service and AME.
48
Maximum
DROP Period: 60 months
Interest
Credited: The member's DROP account is credited quarterly at an interest rate based upon
the option chosen by the member. Members must elect from 1 of the 2 following
options:
1. Gain or loss at the same rate earned by the Plan, or
2. Guaranteed rate of 6.5% per annum.
Normal Form
of Benefit: Lump Sum; member may also elect that the DROP distribution be paid in 3 equal
payments over 3 years or used to purchase an annuity to be paid in monthly
installments.
COLA: None
Z. Other Ancillary Benefits
There are no ancillary retirement type benefits not required by statutes but which might be deemed
a City of Palm Beach Gardens Police Officers’ Pension Fund liability if continued beyond the
availability of funding by the current funding source.
AA. Changes from Previous Valuation
Effective July 1, 2016, for members who had less than ten years of service as of September 13,
2012, eligibility for normal retirement will change from attainment of age 59 with 10 years of
service to the earlier of attainment of age 55 with 10 years of service or completion of 25 years of
service regardless of age.
Effective July 1, 2016, the eligibility conditions for entry into the DROP will change such that a
participant may delay entry into the DROP until he or she has accrued the maximum benefit of 75%
of his or her Average Monthly Earnings.
Effective June 5, 2014, the member contribution rate was increased by 11% of pensionable salary
from 8.60% to 19.60%). Also effective June 5, 2014, immediately following this increase, the
member contribution rate was reduced back to 8.60% of pensionable salary, using $538,552 from
the Accumulated Excess Chapter 185 Premium Tax Reserve to fund the reduction in member
contributions.
Minutes 1-29-15.doc
Page 1 of 4
City of Palm Beach Gardens Police Officers’
Pension Fund
Minutes of the Meeting Held
January 29, 2015
The regular meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers’ Pension Fund was called to order at 9:17 AM by Jay Spencer in the
Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail,
Palm Beach Gardens, Florida.
TRUSTEES PRESENT OTHERS PRESENT
Jay Spencer, Chairman Audrey Ross (Resource Centers)
David Pierson, Secretary Bonni Jensen (Law Offices of Perry & Jensen)
Brad Seidensticker, Trustee John McCann (Thistle Asset Consulting)
Greg Mull, Trustee Steve Stack (ICC Capital Management)
PUBLIC COMMENTS
N/A
INVESTMENT CONSULTANT REPORT
Thistle Asset Consulting – Presented by John McCann
Mr. McCann reviewed the Callen chart and the market environment during the
quarter ending December 31, 2014. Large cap is doing well and emerging markets
remain down. As of December 31, 2014 the Plan’s assets are up to $73.6M and for
the quarter the fund was up 3.84% versus the index at 3.45%, but for the one year
they are slightly trailing the index at 7.60% versus 7.67%. Mr. McCann briefly
reviewed each manager’s performance during the quarter and noted that domestic
fixed income was the only negative manager and sector during the quarter. The Plan
is now fully invested in American Realty as of December 31, 2014. The Trustees had
a very lengthy discussion on ETF’s and Mr. McCann stated that Rhumbline does buy
some ETF’s through their portfolio, but if the Board wanted to go outside on their
own and buy individual ETF’s then they would need the Custodian purchase them
and then they would not be actively managed.
Mr. McCann discussed increasing the American Realty holding from 4.2% to 5%
($700K) because they have been doing so well. The Trustees discussed and stated
that their target goes up to 5% so they didn’t see a reason why not to increase their
holding. Ms. Jensen noted that every quarter American Realty is paying the Board
out their dividends and she questioned whether or not it would be more visible to
have the dividends reinvested instead of paid out. Mr. McCann explained that
originally it was his recommendation to have the dividends paid out so that the
Board can use that income for expenses/benefit payments, and also American Realty
was added into the portfolio as a bond alternative so that it produces some kind of
income.
MOTION: Mr. Seidensticker made a motion to authorize and approve the
transfer of $700K from the ICC Capital fixed income account to
the American Realty account per the recommendation for the
Plan’s Investment Consultant.
Minutes 1-29-15.doc
Page 2 of 4
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 5-0.
The Trustees had a lengthy discussion inflation and deflation due to the current
market environment. They inquired with ICC in regards to the bond portfolio to see if
it was setup to protect against deflation and Mr. Stack commented that they are
prepared and the portfolio is positioned to hedge interest rate inflation, but they are
not too worried about deflation at the moment. Overall Mr. McCann noted that the
portfolio is doing great and is well positioned.
INVESTMENT MANAGER REPORT
ICC Capital – Presented by Steve Stack
Mr. Stack updated the Board on the firm changes. He explained that ICC entered an
agreement to be bought out by another management firm by the name of Argent
Financial Group and they will be part of their subsidiary, Highland Capital
Management. ICC Capital currently has 4 older shareholders that are looking to retire
so they are ready for a transition. The ICC portfolio team/firm that is currently in
place now and is located in Orlando will remain in place with no changes. Mr. Stack
stated that the only change this Board will see is the name change from ICC to
Highland. Highland is a family trust company and they currently do not have any
institutional clients, but they do have a great fixed income product and team. ICC’s
current fixed income portfolio manager, Bart will remain with the firm but he will now
be focusing primarily on equities now. Ms. Jensen stated that the Board will need to
approve this transition and she has reviewed and approved the consent (she also
noted that there are no changes in fees).
MOTION: Mr. Seidensticker made a motion to approve and authorize ICC
Capital’s consent to transition to Highland Capital Management.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 5-0.
ATTORNEY REPORT
KKJ&L - Presented by Bonni Jensen
Ms. Jensen reviewed the State law update memo regarding Senate Bill 172 and
Senate Bill 242. If Senate Bill 172 passes then it would require this Plan to change
its mortality table to coincide with the FRS’s table. We are hoping this Bill does not
pass because it would have a financial impact on the Plan. Also the second Bill is the
same Bill that has been pending for about the past 4 years regarding changes to the
175/185 accounts. This Bill would require that the Plan create individual Share
accounts and would also require a defined contribution component be added in as
well. Ms. Jensen noted that she will keep the Board updated as more information
becomes available.
Ms. Jensen presented the Board with an updated Special Tax Notice due to some IRS
changes. This document is provided to all members that take a distribution from the
Plan.
Ms. Jensen notified the Board that the IRS mileage rate increased to $0.575 effective
January 1, 2015.
Ms. Jensen reviewed the DROP Plans and IRS review memo. She stated that this
Plan’s IRS determination letter has been pending since 2009. In 2013 the IRS
started taking on DROP Plans and wanted to consider them defined contribution (DC)
Minutes 1-29-15.doc
Page 3 of 4
Plans instead of defined benefit (DB) Plans. Now the IRS has recently made a ruling
stating that all DROP accounts are not considered DC Plans and do not have to follow
the rules and regulations of DC Plans either. This outcome is favorable to DB Plans
and members and now hopefully we can get a move on the IRS determination letter.
Ms. Jensen reviewed the draft of the State of Pension Report that she is working on
finalizing. This report would eventually be provided to the members of the pension
plan as well as the City Council. The fee to complete this project is $1,500 and Ms.
Jensen stated that she will bring back a final report to the next meeting.
Ms. Jensen stated that the summary plan description is final now that the actuarial
information is updated. This document needs to be provided to the all the active
members.
MOTION: Mr. Glass made a motion to approve and accept the updated
summary plan description as presented.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 5-0.
ADMINISTRATOR REPORT
Resource Centers – Presented by Audrey Ross
Ms. Ross discussed a vested deferred member’s retirement eligibility. He recently
terminated and as the Plan is currently written this member would have to wait until
age 59 to start collecting his pension, but in 2016 the Plan will be changing again.
Effective July 1, 2016 the retirement age will go back down from 59 to 55 and
therefore this member wants to know if he will be included in that change as well.
Mr. Jensen’s recommendation is to keep the Plan as is in that the members is
entitled to the benefit now, and then come 2016 the member will still fall under the
new rules and can collect at age 55.
MOTION: Mr. Mull made a motion to approve and authorize that all
members are eligible to retire at age 55 effective July 1, 2016,
including all vested members as well.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 5-0.
Ms. Ross presented the Board with the 2015/2016 fiduciary liability insurance
renewal. The fee this year is only $12.39 higher than last year.
MOTION: Mr. Mull made a motion to approve and authorize the renewal
of the 2015/2016 fiduciary liability insurance renewal.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 5-0.
Ms. Ross stated that the Board still needed to schedule the rest of their 2015
meeting dates. The Trustees scheduled the next meeting for Thursday April 30,
2015 at 9AM and the following one on Wednesday August 26, 2015 at 9AM. They
noted that they will schedule the last meeting of the year at the next meeting.
Minutes 1-29-15.doc
Page 4 of 4
MINUTES
MOTION: Mr. Pierson made a motion to approve the minutes from the
October 27, 2014 regular meeting.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 5-0.
DISBURSEMENTS APPROVALS
MOTION: Mr. Mull made a motion to approve the disbursements.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 5-0.
BENEFIT APPROVALS
MOTION: Mr. Glass made a motion to approve the application to exit the
DROP for Gwen Fleming, the applications for distribution from
DROP account for Gwen Fleming.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 5-0.
OTHER BUSINESS
N/A
AJOURN
There being no further business, the Trustees officially adjourned the meeting at
10:26PM. The next meeting is scheduled for Thursday April 30, 2015 at 9AM.
Respectfully submitted,
_____________________________
April 30, 2015
Cherry Bekaert LLP
This representation letter is provided in connection with your audit of the financial statements and supplemental
schedule of City of Palm Beach Gardens Police Officers’ Pension Fund (the “Fund”), which comprise the
statement of fiduciary net position as of September 30, 2014, and the related statement of changes in fiduciary
net position for the year then ended, and the related notes to the financial statements, for the purpose of
expressing an opinion as to whether the financial statements are presented fairly, in all material respects, in
accordance with accounting principles generally accepted in the United States (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material. Items are
considered material, regardless of size, if they involve an omission or misstatement of accounting information that,
in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the
information would be changed or influenced by the omission or misstatement. An omission or misstatement that is
monetarily small in amount could be considered material as a result of qualitative factors.
We confirm, to the best of our knowledge and belief, as of April 30, 2015, the following representations made to
you during your audit.
Financial Statements
1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated October 24,
2014, including our responsibility for the preparation and fair presentation of the financial statements.
2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all
other financial information required by generally accepted accounting principles to be included in in the
financial reporting entity.
3) We acknowledge our responsibility for the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to
prevent and detect fraud.
5) We understand that as part of your audit, you prepared the adjusting journal entries necessary to reclassify
investment activity. We acknowledge that we have reviewed and approved those entries and accepted
responsibility for them. We are in agreement with the adjusting journal entries that you have proposed and
they have been posted to the Fund's accounts
6) Significant assumptions we used in making accounting estimates, including those measured at fair value, are
reasonable.
7) Related-party relationships and transactions have been appropriately accounted for and disclosed in
accordance with U.S. GAAP.
8) All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or
disclosure have been adjusted or disclosed.
9) The effects of all known actual or possible litigation, claims, and assessments, if any, have been accounted
for and disclosed in accordance with U.S. GAAP.
10) Other matters that legal counsel has advised us that must be disclosed have been properly disclosed.
11) Material concentrations have been properly disclosed in accordance with U.S. GAAP.
THETHETHETHE PPPP ENSIONENSIONENSIONENSION R R R R ESOURCEESOURCEESOURCEESOURCE C C C CENTERENTERENTERENTER , , , , LLCLLCLLCLLC
4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410
Phone (561) 624-3277 Fax (561) 624-3278 WWW.R ESOURCECENTERS.COM
12) Financial instruments with concentrations of credit risk have been properly recorded or disclosed in the
financial statements.
13) Guarantees, whether written or oral, under which the Fund is contingently liable, have been properly recorded
or disclosed in accordance with U.S. GAAP.
Information Provided
14) We have provided you with:
a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation
of the financial statements, such as records, documentation, and other matters.
b) Additional information that you have requested from us for the purpose of the audit.
c) Unrestricted access to persons within the Fund from whom you determined it necessary to obtain audit
evidence.
d) Plan instruments, trust agreements, insurance contracts, or investment contracts and amendments to
such documents entered into during the year, including amendments to comply with applicable laws.
e) Actuarial reports prepared for the Fund and the Fund’s sponsor during the year.
15) All material transactions have been recorded in the accounting records and are reflected in the financial
statements.
16) We have disclosed to you the results of our assessment of the risk that the financial statements may be
materially misstated as a result of fraud.
17) We have no knowledge of any fraud or suspected fraud that affects the Fund and involves:
a) Management,
b) Employees who have significant roles in internal control, or
c) Others where the fraud could have a material effect on the financial statements.
18) We have no knowledge of any allegations of fraud or suspected fraud affecting the Fund’s financial
statements communicated by employees, former employees, participants, regulators, beneficiaries, service
providers, third-party administrators, or others.
19) We have no knowledge of any instances of noncom pliance or suspected noncompliance with laws and
regulations whose effects should be considered when preparing financial statements.
20) We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects
should be considered when preparing the financial statements.
21) We have disclosed to you the identity of the Fund’s related parties and parties in interest and all the related-
party and party-in-interest relationships and transactions of which we are aware.
22) The Fund has satisfactory title to all owned assets, which are recorded at fair value, and all liens,
encumbrances, or security interests requiring disclosure in the financial statements have been properly
disclosed.
23) We have no—
a) Plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
b) Intentions to terminate the Fund.
24) Amendments to the Plan instrument, if any, have been properly recorded or disclosed in the financial
statements.
25) We have no knowledge of any omissions from the participants’ data provided to the Fund’s actuary for the
purpose of determining the actuarial present value of the Fund’s benefit obligations and other actuarially
determined amounts in the financial statements.
26) The Fund administrator agrees with the actuarial methods and assumptions used by the actuary for funding
purposes and for determining the Fund’s benefit obligations and has no knowledge or belief that such
methods or assumptions are inappropriate in the circumstances. We did not give any instructions, nor cause
any to be given, to the Fund’s actuary with respect to values or amounts derived, and we are not aware of any
matters that have impacted the independence or objectivity of the Fund’s actuary.
27) We have obtained the service auditor’s report from our service organization. We have reviewed the report,
including the complementary user controls. We have implemented the relevant user controls, and they were
in operation for the year ended September 30, 2014. Also, the service auditors have not reported to us any:
• Fraud
• Noncompliance with laws and regulations, or
• Uncorrected misstatements affecting the Fund financial statements as a result of the third-party
service providers.
• We are aware that the service auditor’s report for Salem Trust had an adverse opinion. We are not
aware of any discrepancies that may have occurred in the investments held in custody by Salem
Trust.
28) The following have been properly recorded or disclosed in the financial statements:
• The actuarial methods or assumptions used in calculating amounts recorded or disclosed in the financial
statements.
• Fund provisions between the actuarial valuation date and the date of this letter.
29) The methods and significant assumptions used to estimate fair values of financial instruments, including non-
readily marketable securities, are as follows: current values of investments have been determined using
published market prices. If published market prices are unavailable, estimated values are based on similar
investments of issuers with similar credit ratings. The methods and significant assumptions used result in a
measure of fair value appropriate for financial measurement and disclosure purposes.
30) All required filings of the Fund’s documents with the appropriate agencies have been made.
31) The Fund is qualified under the appropriate section of the Internal Revenue Code and we intend to continue
them as a qualified plan. The Fund sponsor has operated the Fund in a manner that did not jeopardize this
tax status.
32) We have apprised you of all communications, whether written or oral, with regulatory agencies concerning the
operation of the Fund.
33) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured
and presented within prescribed guidelines and the methods of measurement and presentation have not
changed from those used in the prior period. We have disclosed to you any significant assumptions and
interpretations underlying the measurement and presentation of the RSI.
34) With respect to the supplementary information on which an in-relation-to opinion is issued. We acknowledge
our responsibility for presenting other supplementary information in accordance with accounting principles
generally accepted in the United States of America, and we believe the other supplemental information,
including its form and content, is fairly presented in accordance with accounting principles generally accepted
in the United States of America. The methods of measurement and presentation of the other supplementary
information have not changed from those used in the prior period, and we have disclosed to you any
significant assumptions or interpretations underlying the measurement and presentation of the supplementary
information.
No events have occurred subsequent to the date of the Fund’s financial statements and through the date of this
letter that would require adjustment to or disclosure in the aforementioned financial statements.
_______________________________ ________________________________
Jay Spencer Audrey Ross
Chairman, Board of Trustees Plan Administrator
PAGE
Market Snapshot 1
Index Comparisons 2
Compliance Report 3
Total Portfolio Pie Chart 5
Manager Pie Chart 6
Asset Allocation Table 7
Gain/Loss Table 8
Total Ranks Table 9
Manager Ranks 10
Scatterplot Graphs:
Total Fund Graph 13
Rhumbline Equities Graph 14
ICC Fixed income Graph 15
Beta Graph 16
Alpha Graph 17
Beta/Alpha Table 18
Batting Average Graph 19
Batting Average/R-Squared Table 20
Other Managers' Page 21
Palm Beach Gardens Police Pension Fund
Executive Summary Report
Table of Contents
SECTION
Page 2
Index Comparison
March 31, 2015
-10.00
0.00
10.00
20.00
30.00
3 Months Last 12 Months Last 3 Years (Annualized)
Re
t
u
r
n
(
%
)
Barclays Gov/Credit Bond Barclays Gov/Credit-Intermediate S&P 500
Russell 1000 Growth Russell 1000 Value Russell 2000 Growth
Russell 2000 Value Russell 3000 MSCI EAFE
6.63% R2000G
1.45% BCIGC
16.09% R1000G
17.74% R2000G
2.31% BCIGC
3.58% BCIGC
1.
2.
3.
1.
2.
3.
4.
5.
6.
1.
2.
3.
4.
5.
6.
Page 3
Is the minimum quality rating of the domestic bond investments BBB from Standard & Poor's or BAA from Moody's?
Did the fixed income return, over the trailing 5-year period, rank in the top 40% of the Mobius Broad Fixed Income
Universe? [68th]
Did the total return of the fund over the trailing 3-year period equal or exceed 7.3% (actuarial assumption rate of return)?
[11.41 vs. 7.3]
TOTAL FIXED INCOME
Did the fixed income return, over the trailing 3-year period, exceed the 89% BCAB and 11% Non-US World Gov't Bond?
[2.16 vs. 2.39]
Is the amount invested in any single security less than or equal to 5% of the market value of the total equity portfolio?
Is the amount invested in any single industry less than or equal to 20% of the market value of the total equity portfolio?
Did the fixed income return, over the trailing 5-year period, exceed the BCAB? [3.81 vs. 3.99]
Did the fixed income return, over the trailing 3-year period, rank in the top 40% of the Mobius Broad Fixed Income
Universe? [74th]
Is the amount invested in any single security (with exception of U.S. Government and its agencies) less than or equal to 5%
of the market value of the total fixed income portfolio?
Palm Beach Gardens Police Pension Fund
Compliance Report
March 31, 2015
YES NO
Did the equity return, over the trailing 3-year period, exceed the 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4%
R1000G index and 15.4% EAFE? [16.06 vs. 15.53]
Did the equity return, over the trailing 5-year period, exceed the 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4%
R1000G index and 15.4% EAFE? [14.11 vs. 13.97]
Did the equity return, over the trailing 3-year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4%
Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [7th]
Did the equity return, over the trailing 5-year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4%
Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [12th]
TOTAL FUND
Did the total return, over the trailing 3-year period, exceed the policy, which is comprised of 25% S&P500, 10% S&P400,
10% S&P600, 10% R1000G, 10% EAFE, 29% BCAB , 4% Non US $ World Gov. Bond & 2% RE? [11.41 vs. 11.05]
TOTAL EQUITY
Did the total return, over the trailing 3-year period, rank in the top 40% of the Universe comprised of 25% Mobius Broad
Large Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Cap Growth, 10% International Equity, 29% Broad Fixed, 4%
International Fixed Income & 2% NCREIF? [23rd]
1.
Yes, ICC closed on the annouced deal with Highland Capital Management, LLC as of 3/31/2015.
2.
No
3.
Yes, ICC closed on the annouced deal with Highland Capital Management, LLC as of 3/31/2015. With the new entity, there has been additional
staff added to the team. David Thompson, CFA, Mark Cronin, CFA and Vineet Agrawal, CFA will be working with ICC's current equity
investment teams. Steve Wishnia, Jed Miller and Brian Escobedo will be working on the fixed income team.
4.
No
5.
No
6.
No
7.
No
8.
No
9.
0%
10.
N/A
11.
67.79%
12.
Steve Stack, ICC/Highland Capital Management, LLC
For managers, with fixed income portfolios that we monitor, are you currently invested in commercial mortgage backed securities (CMBS)? (If yes,
please give % of fixed portfolio)
Manager Compliance Questionnaire
March 31, 2015
Have there been any changes in your organization? Have you undergone any change in ownership or control?
Are you invested in any unhedged and/or levereged derivatives?
What percentage of equity is international? The
manager must immediately notify the Board and the Consultant when the international exposure reaches ten percent (10%). An explanation will be
needed as to why the manager is changing their discipline. (This does not apply to managers that are 100% international equity and to those that
have been previously given permission by the board and the consultant)
Are you invested in any companies on the SBA's website? (Please review list of scrutinized companies on the following website:
http://www.sbafla.com/fsb/Home/ProtectingFloridasInvestmentAct/tabid/751/Default.aspx
What is your Active Share percentage?
Name of person completing this form (please include company name)?
Have there been any changes in your investment philosophy?
Have there been any changes in your staff of investment professionals?
Have you lost a substantial amount of business (amount of percentage of assets under management)?
Have you gained a substantial amount of business (amount of percentage of assets under management)?
Have there been any new investigations begun by any state or federal government or their agencies, or any charges filed, with regard to any
division or unit of your company, and in particular anyone who directly or indirectly performs services for this client? Please provide details (if
there is any doubt, please err on the side of providing too much information).
Page 5
Palm Beach Gardens Police Pension Fund
Total Assets
March 31, 2015
Equities
69%
Fixed Income
26%
Real Estate
4%
Cash
1%
Equities Fixed Income Real Estate Cash
Page 6
Palm Beach Gardens Police Pension Fund
Total Assets
March 31, 2015
Rhumbline S&P500
27%
Rhumbline S&P400
12%
Rhumbline S&P600
12%
Intl. Equity
7%
ICC Lg. Growth
12%
Intl. Bonds
3%
ICC Fixed
24%
American Realty
4%
Rhumbline S&P500 Rhumbline S&P400 Rhumbline S&P600 Intl. Equity ICC Lg. Growth Intl. Bonds ICC Fixed American Realty
Manager Equities Fixed Income Real Estate Cash Total % of Total
Rhumbline S&P500 $20,245,000 $0 $0 $0 $20,245,000 26.7%
25.0%
Rhumbline S&P400 $8,790,000 $0 $0 $0 $8,790,000 11.6%
10.0%
Rhumbline S&P600 $8,817,000 $0 $0 $0 $8,817,000 11.6%
10.0%
Intl. Equity $5,540,000 $0 $0 $0 $5,540,000 7.3%
10.0%
ICC Lg. Growth $9,312,000 $0 $0 $0 $9,312,000 12.3%
10.0%
Intl. Bonds $0 $2,190,000 $0 $0 $2,190,000 2.9%
4.0%
ICC Fixed $0 $17,202,000 $0 $466,000 $17,668,000 23.3%
26.0%
$0 $0 $3,169,000 $0 $3,169,000 4.2%
5.0%
Total $52,704,000 $19,392,000 $3,169,000 $466,000 $75,731,000 100.0%
100.0%
% of Total 69.6%25.6%4.2%0.6%100.0%
Target %65.0%30.0%5.0%0.0%100.0%
Page 7
Palm Beach Gardens Police Pension Fund
Performance Evaluation Summary
March 31, 2015
American Realty
Portfolio Last Qtr. MV Net Flows Inv G(L)This Qtr. MV
Total Fund $73,650,000 -$5,000 $2,086,000 $75,731,000
Total Equities $50,958,000 $36,000 $1,711,000 $52,705,000
ICC Large Growth $8,771,000 $23,000 $518,000 $9,312,000
Rhumbline S&P 500 $20,054,000 $0 $191,000 $20,245,000
Rhumbline S&P 400 $8,346,000 $0 $445,000 $8,790,000
Rhumbline S&P 600 $8,480,000 $0 $337,000 $8,817,000
International Equity $5,307,000 $0 $233,000 $5,540,000
International Bonds $2,182,000 $0 $8,000 $2,190,000
ICC Fixed Income $16,353,000 $611,000 $239,000 $17,202,000
Real Estate $3,071,000 -$30,000 $128,000 $3,169,000
Page 8
Palm Beach Gardens Police Pension Fund
Performance Evaluation Summary
March 31, 2015
Current Fiscal Year
Quarter FYTD One Year Three Years Five Years 2014 2013 2012 2011 2010
Return 2.83%6.78%8.99%11.41%10.51%10.73%14.53%18.63%0.22%10.09%
Ranking (*)12 14 28 23 33 47 80 90 40 45
Policy Return (**)2.41%5.93%8.33%11.05%10.71%10.35%14.21%19.60%1.76%10.82%
Policy Ranking (*)28 30 33 30 27 58 85 72 8 32
Return 3.36%8.73%11.14%16.06%14.11% 13.97%24.43%28.59%-2.62%12.36%
Ranking (***)9 13 8 7 3 20 30 14 58 20
23.27%27.80%-0.50%11.44%
Policy Ranking (***)14 22 14 12 4 21 56 27 15 36
Return 1.32%2.08%3.55%2.16%3.81%3.07%-2.93%5.83%4.78%7.63%
Ranking (Broad Fixed)41 51 62 74 68 74 75 71 14 45
Policy Return (89% BCAB and 11%
Non-US World Gov't Bond)0.94%2.22%3.91%2.39%3.99%3.41%-2.12%4.98%5.21%7.79%
Policy Ranking (Broad Fixed)65 46 59 70 64 71 61 76 10 44
Page 9
* 25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 4% Intl. Bond, 26% Broad Fixed & 5% RE
** 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Intl. Bond, 26% BCAB & 5% NCREIF
Policy Return (38.4%S&P500,
15.4%S&P400, 15.4%S&P600,
15.4% R1000G, 15.4% EAFE)13.97%
Red indicates bottom 40% of universe
15.53%
*** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth, 15.4% International
TOTAL FIXED INCOME(Net of Fees)[Inception 3-31-1994](International Fixed Inception 9-30-2010)
Gold indicates equal to or beat the index, or in upper 40% of universe
3.16%
Palm Beach Gardens Police Pension Fund
Performance Evaluation Summary
March 31, 2015
10.54%
TOTAL FUND (Net of Fees)[Inception 3-31-1992]
TOTAL EQUITIES(Net of Fees)[Inception 6-30-2000]
7.86%13.86%
Current Fiscal Year
Quarter FYTD One Year Three Years Five Years 2014 2013 2012 2011 2010
0.95%5.96%12.74%16.08%14.46%19.65%19.31%30.17%1.19%10.21%
Ranking (Br.Large Cap Core)61 49 30 39 31 18 66 21 20 29
0.95%5.93%12.73%16.11%14.47%19.74%19.34%30.20%1.15%10.16%
Policy Ranking (Br.Large Cap Core)61 49 31 38 31 17 66 20 20 30
5.33%11.98%12.20%16.97%15.79%11.81%27.56%28.90%-1.17%17.77%
18 18 25 36 17 53 46 28 26 12
5.31%12.00%12.20%17.03%15.72%11.82%27.68%28.54%-1.28%17.78%
18 17 25 35 19 53 44 30 27 12
3.98%14.20%8.75%17.26%16.24%5.80%31.40%33.27%0.21%14.14%
Ranking (Broad Small Cap)59 31 36 27 29 35 39 18 26 37
3.96%14.20%8.72%17.30%16.25%5.74%31.52%33.35%0.21%14.21%
Policy Ranking (Broad Small Cap)59 31 36 27 29 36 37 18 26 36
5.93%11.40%15.55%18.32%14.75%16.29%28.72%27.52%-6.48%14.62%
Ranking (Broad Large Cap Growth)6 8 32 5 38 67 1 55 94 8
3.84%8.81%16.09%16.34%15.63%19.15%19.27%29.18%3.78%12.65%
34 39 26 37 19 29 73 40 14 20
4.38%2.35%1.89%10.77%8.19%7.90%23.71%19.38%-11.11%9.09%
68 41 26 15 15 8 28 20 50 32
5.00%1.29%-0.48%9.52%6.64%4.70%24.29%14.33%-8.94%3.71%
54 55 43 25 40 41 24 68 25 65
Page 10
Return
Policy (R1000G)
Policy (S&P 600)
Ranking (Broad Mid Cap)
ICC LARGE CAP GROWTH EQUITY PORTFOLIO(Inception 9-30-2007)
Return
Policy Ranking (Broad Mid Cap)
INTERNATIONAL EQUITY(Inception 9-30-2006)
Return
Ranking (International Equity)
Policy (MSCI EAFE)
Return
Gold indicates equal to or beat the index, or in upper 40% of universe
Policy (S&P 400)
Red indicates bottom 40% of universe
Policy Ranking (Broad Large Cap
Growth)
Policy Ranking (International
Equity)
Return
Palm Beach Gardens Police Pension Fund
Performance Evaluation Summary
March 31, 2015
RHUMBLINE S&P 500 EQUITY PORTFOLIO(Inception 6-30-2000)
RHUMBLINE S&P 400 EQUITY PORTFOLIO(Inception 12-31-2002)
Policy(S&P500)
RHUMBLINE S&P 600 EQUITY PORTFOLIO(Inception 10-31-2003)
Current Fiscal Year
Quarter FYTD One Year Three Years Five Years 2014 2013 2012 2011 2010
1.44%2.42%4.02%2.24%3.88%3.10%-2.93%5.59%5.20%7.44%
Ranking (Broad Fixed)36 41 57 73 66 73 75 72 10 46
1.61%3.43%5.72%3.10%4.42%3.96%-1.68%5.16%5.29%8.17%
Policy Ranking (Broad Fixed)29 11 34 57 53 66 53 75 9 41
Four Years
0.37%-0.47%0.01%1.66%1.85%2.97%-2.82%7.89%0.33%n/a
-4.36%-7.14%-9.82%-3.32%-1.56%-0.99%-5.65%3.46%4.14%n/a
Two Years Inception
4.17%5.79%10.42%11.91%11.19%11.34%11.10%n/a n/a n/a
3.40%6.54%12.53%11.85%11.42%11.26%11.00%n/a n/a n/a
Page 11
INTERNATIONAL FIXED INCOME PORTFOLIO(Inception 9-30-2010)
Return
Policy (Non-US World Bond)
Gold indicates equal to or beat the index, or in upper 40% of universe
Red indicates bottom 40% of universe
AMERICAN REALTY PORTFOLIO(Inception 6-30-2012)
Return
Policy (NCREIF)
Palm Beach Gardens Police Pension Fund
Performance Evaluation Summary
March 31, 2015
ICC FIXED INCOME PORTFOLIO(Inception 3-31-1994)
Return
Policy(BCAB)
March 31, 2015
EXPLANATION OF RISK/REWARD SCATTERPLOT GRAPHS
The crossing lines represent the 5-year return (horizontal line) and 5-year standard deviation or
volatility or risk (vertical line) of the index against which the Fund is being measured.
Each point represents the Fund's 5-year return (vertically) and standard deviation or volatility
(horizontally), relative to the index. If a point is in the southwest quadrant, for example, the 5 -year
return of the Fund has been less than (below) the index line, and the 5 -year standard deviation
(volatility) has also been less than (to the left of) the index line.
There are four points, one for each of the last four quarters. The earliest one is the smallest and the
quarter just ended being the largest. Each point shows the 5-year relative position of the Fund
versus the index for that quarter. The movement of the points shows the trend, or direction, over
time.
As noted in the graph, the best place to be is the northwest quadrant (less risk and a higher return);
the worst place to be is the southeast quadrant (more risk and a lower return).
Page 13
Palm Beach Gardens Police Pension Fund
Total Fund Trailing 5-Years
March 31, 2015
(versus 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Bond, 26% BCAB, 5% RE)
-3
0
3
-3 0 3
Di
f
f
e
r
e
n
c
e
i
n
R
e
t
u
r
n
s
(
M
a
n
a
g
e
r
- In
d
e
x
)
Risk (Difference in Standard Deviations)
3/31/2015 12/31/2014 9/30/2014 6/30/2014
Good Aggressive
Conservative Bad
Page 14
Palm Beach Gardens Police Pension Fund
Total Equity Trailing 5-Years
March 31, 2015
(versus 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4% R1000G & 15.4% Intl. )
-3
0
3
-3 0 3
Di
f
f
e
r
e
n
c
e
i
n
R
e
t
u
r
n
s
(
M
a
n
a
g
e
r
- In
d
e
x
)
Risk (Difference in Standard Deviations)
3/31/2015 12/31/2014 9/30/2014 6/30/2014
Good Aggressive
Conservative Bad
Page 15
Palm Beach Gardens Police Pension Fund
Total Fixed Income 5-Year Trailing
March 31, 2015
(versus 89% BCAB, 11% Non-US World Gov't Bond)
-3
0
3
-3 0 3
Di
f
f
e
r
e
n
c
e
i
n
R
e
t
u
r
n
s
(
M
a
n
a
g
e
r
- In
d
e
x
)
Risk (Difference in Standard Deviations)
3/31/2015 12/31/2014 9/30/2014 6/30/2014
Good Aggressive
Conservative Bad
15451000 15451000
123518000 123518000
264000 264000
139233000
Page 16
Palm Beach Gardens Police Pension Fund
Beta: Trailing 5-Year Risk (or Inception if Less)
March 31, 2015
0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20
Mar-15
Dec-14
Sep-14
Jun-14
Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth
Page 17
Palm Beach Gardens Police Pension Fund
Alpha: Trailing 5-Year Reward (or Inception if Less)
March 31, 2015
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Mar-15 Dec-14 Sep-14 Jun-14
TOTAL FUND & INDIVIDUAL MANAGERS
Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth
Mar-15 Dec-14 Sep-14 Jun-14
Total Fund 0.97 0.97 0.97 0.96
Managers, Fixed Income
Total Fixed 0.95 0.97 0.96 0.97
Managers, Equities
Large Cap 1.00 1.00 1.00 1.00
Mid Cap 1.00 1.00 1.00 1.00
Small Cap 1.00 1.00 1.00 1.00
International 0.34 0.34 0.31 0.34
Large Growth 1.11 1.12 1.13 1.13
Real Estate NCREIF 0.94 n/a n/a n/a
Total Fund 0.13%0.00%-0.14%-0.15%
Managers, Fixed Income
Total Fixed 0.00%-0.04%-0.03%-0.23%
Managers, Equities
Large Cap 0.04%0.04%0.04%0.04%
Mid Cap 0.11%0.09%0.10%0.11%
Small Cap 0.04%0.02%0.02%-0.01%
International 5.94%5.89%6.91%10.08%
Large Growth -2.55%-3.08%-3.18%-1.90%
Real Estate NCREIF 0.41%n/a n/a n/a
Page 18
S&P400
* 25% S&P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Gov't Bond, 26% BCAB, 5% RE
S&P600
EAFE
R1000G
Policy
S&P500
S&P600
EAFE
S&P400
BCAB
R1000G
BCAB
S&P500
*
ALPHA
Palm Beach Gardens Police Pension Fund
Alpha & Beta: 5-Years Trailing (or Inception if Less)
March 31, 2015
Current
BETA
*
Page 19
Palm Beach Gardens Police Pension Fund
Batting Average: 5-Years Trailing (or Inception if Less)
March 31, 2015
0
10
20
30
40
50
60
70
80
90
100
Mar-15 Dec-14 Sep-14 Jun-14
TOTAL FUND & INDIVIDUAL MANAGERS
Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth
Mar-15 Dec-14 Sep-14 Jun-14
Total Fund 35.00 30.00 30.00 25.00
Managers, Fixed Income
Total Fixed 55.00 55.00 55.00 50.00
Managers, Equities
Large Cap 45.00 40.00 40.00 40.00
Mid Cap 60.00 55.00 60.00 60.00
Small Cap 40.00 35.00 35.00 30.00
International 50.00 55.00 55.00 55.00
Large Growth 40.00 40.00 40.00 45.00
Real Estate NCREIF 45.45 40.00 50.00 50.00
Total Fund 0.99 0.99 0.99 0.99
Managers, Fixed Income
Total Fixed 0.88 0.88 0.89 0.90
Managers, Equities
Large Cap 1.00 1.00 1.00 1.00
Mid Cap 1.00 1.00 1.00 1.00
Small Cap 1.00 1.00 1.00 1.00
International 0.24 0.25 0.13 0.15
Large Growth 0.93 0.93 0.93 0.93
Real Estate NCREIF 0.13 0.09 0.23 0.05
Page 20
BCAB
BCAB
*
S&P600
R1000G
R-SQUARED
S&P500
S&P400
* 25% S&P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Gov't Bond, 26% BCAB, 5% RE
S&P600
EAFE
R1000G
March 31, 2015
EAFE
Palm Beach Gardens Police Pension Fund
Batting Average: 5-Years Trailing (or Inception if Less)
BATTING AVERAGE
S&P500
S&P400
Current
Policy
*
Qtr YTD 1Yr 3Yr 5Yr 10Yr
Great Lakes - Large Cap - Gross Size 2.37 7.60 13.00 17.70 15.26 9.07
Atlanta Capital Management Co., LLC - High Quality Growth Plus - Gross Size 0.65 6.19 11.12 13.70 13.55 8.61
ICC Capital Management, Inc - Core Value - Gross Size 1.76 8.36 12.11 16.58 12.29 7.82
Inverness Counsel, LLC - Pension Equity - Gross Size 2.87 6.76 13.31 17.57 14.29 9.35
Logan Capital Management - Large Core 60/40 - Gross Size 4.20 9.09 14.78 14.55 16.97 10.28
Rhumbline Advisers Corporation - Russell 1000 Index Fund - Gross Size 1.57 6.50 12.69 16.39 14.29 8.24
Valley Forge Asset Management - Large Cap Core - Gross Size -1.43 1.85 6.82 10.54 10.80 6.97
Russell 1000 1.59 6.55 12.73 16.45 14.73 8.34
S&P 500 0.95 5.93 12.73 16.11 14.47 8.01
Dana Investment Management - Large Growth - Gross Size 4.69 12.77 18.46 17.94 16.21 10.28
Garcia Hamilton & Associates - Quality Growth - Gross Size 2.61 8.32 16.17 12.91 13.55 7.96
Logan Capital Management - Large Cap Growth - Gross Size 6.58 10.76 15.97 15.10 15.10 9.13
Montag & Caldwell, Inc. - Large Cap Growth - Gross Size 2.49 7.25 12.46 13.81 12.46 9.06
Polen Capital Management - Large Cap Growth - Gross Size 3.70 14.25 21.17 13.40 15.73 10.87
Rhumbline Advisers Corporation - Russell 1000 Growth Index Fund - Gross Size 3.82 8.81 16.14 16.33 15.63 9.36
Sawgrass Asset Management, LLC - Large Cap Growth Equity - Gross Size 1.65 7.85 13.76 16.71 15.88 9.16
Silvant Capital - Select LCG Stock - Grosss Size 3.74 7.91 11.95 11.96 12.12 8.01
Russell 1000 Growth 3.84 8.81 16.09 16.34 15.63 9.36
S&P 500/Citigroup Growth 2.47 7.66 16.11 16.85 15.77 9.02
Rhumbline Large Cap(FYE)0.95 5.96 12.74 16.08 14.46 8.12
Rhumbline Mid Cap(FYE)5.33 11.98 12.20 16.97 15.79 10.42
Rhumbline Small Cap(FYE)3.98 14.20 8.75 17.26 16.24 9.75
ICC Large Growth(FYE)5.93 11.40 15.55 18.32 14.75 n/a
International Equity(FYE)4.38 2.35 1.89 10.77 8.19 n/a
Page 21
Performance of Other Managers
March 31, 2015
CORE EQUITY
GROWTH EQUITY
Qtr YTD 1Yr 3Yr 5Yr 10Yr
Ceredex Value Ad Large Cap Value -1.68 3.25 8.23 16.23 14.08 9.15
Edgar Lomax Large Value - Gross Size -1.64 2.64 10.22 15.60 14.69 8.06
ICC Capital Management, Inc - Core Value - Gross Size 1.76 8.36 12.11 16.58 12.29 7.82
Rhumbline Advisers Corporation - Russell 1000 Value Index Fund - Gross Size -0.73 4.15 9.25 16.37 13.72 7.28
The Boston Company Asset Mgmt., LLC - US Large Cap Value Equity Management 1.88 6.33 10.63 18.75 14.17 9.30
RBC Global Asset Management, Inc. - Large Cap Value - Gross Size 1.52 6.52 12.05 16.36 13.55 8.23
RNC Genter Capital - Dividend Income Equity - Gross Size -1.11 -1.01 3.66 11.70 12.35 8.15
Westwood Management Corporation - LargeCap Equity - Gross Size 1.65 7.41 11.86 16.12 13.35 8.94
Russell 1000 Value -0.72 4.22 9.33 16.44 13.75 7.21
S&P 500/Citigroup Value -0.69 4.06 9.12 15.34 13.14 6.90
Amalgamated Bank - LongView 400 MidCap Index Fund - Gross Size 5.26 11.93 12.12 17.00 15.69 10.32
Chicago Equity Partners, LLC - Mid Cap Core Equity - Gross Size 6.89 10.45 12.07 17.69 17.51 9.39
Robeco Investment Management, Inc. - BPAM Mid Cap Value Equity - Gross Size 4.69 13.46 15.13 21.19 18.73 13.46
Russell Midcap 3.95 10.13 13.68 18.10 16.16 10.02
S&P Midcap 400 5.31 12.00 12.19 17.03 15.72 10.32
Great Lakes - SMID - Gross Size 3.24 13.49 13.66 21.55 19.52 11.64
Eagle Asset Management - SMID Core - Institutional - Gross Size 6.28 14.57 12.45 17.53 16.16 11.01
Earnest Partners - SMID Core - Gross Size 5.39 11.30 13.95 18.52 16.65
Kayne AndersonRudnick - SMID Core - Gross Size 7.40 16.21 20.12 15.58 15.39 9.55
New Amsterdam Partners - SMID Active Equity - Gross Size 8.15 16.68 10.93 18.27 18.99 11.57
Russell 2500 5.17 12.29 10.07 17.13 15.48 9.62
Rhumbline Large Cap(FYE)0.95 5.96 12.74 16.08 14.46 8.12
Rhumbline Mid Cap(FYE)5.33 11.98 12.20 16.97 15.79 10.42
Rhumbline Small Cap(FYE)3.98 14.20 8.75 17.26 16.24 9.75
ICC Large Growth(FYE)5.93 11.40 15.55 18.32 14.75 n/a
International Equity(FYE)4.38 2.35 1.89 10.77 8.19 n/a
Page 22
Performance of Other Managers
March 31, 2015
VALUE EQUITY
MID-CAP EQUITY
SMID-CAP EQUITY
Qtr YTD 1Yr 3Yr 5Yr 10Yr
Great Lakes - AllCap - Gross Size 3.83 9.70 14.01 18.39 16.37 9.09
HGK Asset Management - All Cap - Gross Size -2.19 0.98 5.83 14.76 12.90 8.43
ICC Capital Management, Inc - Multi-Cap Eq. - Gross Size 1.56 6.88 13.56 11.70 9.96 10.59
Oak Ridge Investments, LLC - All-Cap - Gross Size 6.24 12.54 20.49 16.36 15.76 9.81
Russell 3000 1.80 7.13 12.37 16.43 14.71 8.38
Dow Jones Wilshire 5000 (Full Cap)1.61 6.95 12.25 16.21 14.58 8.41
Atlanta Capital Management Co., LLC - High Quality Small Cap - Gross Size 6.83 17.78 11.83 17.59 18.03 12.99
Ceredex - Value Ad Small Cap Value - Gross Size 2.66 13.02 5.25 15.23 14.67 11.36
GW Capital, Inc. - Small Cap Value Equity - Gross Size 1.58 6.29 -1.76 13.97 12.42 9.49
Kayne Anderson Rudnick Invst. - Small Cap - Gross Size 4.13 14.00 14.80 13.79 16.60 10.95
Sawgrass Asset Management, LLC - Small Cap Growth Equity - Gross Size 7.30 17.25 18.66 17.90 18.78 6.76
Silvant Capital - Small Cap Growth - Gross Size 5.80 14.80 5.24 15.69 15.44 8.82
Russell 2000 4.32 14.46 8.21 16.27 14.57 8.82
S&P SmallCap 600 3.96 14.20 8.72 17.30 16.25 9.68
American Realty Advisors - Core Equity Real Estate-Sep. Accts. - Gross Size 1.79 1.79 11.60 11.74 12.29 6.27
JPMorgan Asset Management - Strategic Property Fund - Gross Size 2.74 2.74 11.13 12.90 13.81 8.17
Principal Global - Real Estate Core - Gross Size 4.53 4.53 13.88 13.75 15.03 6.97
Dow Jones Wilshire REIT Index 15.14 15.14 31.79 16.44 17.27 8.28
NCREIF Property Index 3.04 3.04 11.81 11.11 12.13 8.38
Harding Loevner - International Equity - Gross Size 5.08 4.11 5.52 9.39 8.88 8.96
Harding Loevner - Emerging Mkts. Equity - Gross Size 1.07 -2.03 0.66 4.69 5.83 10.94
ICC Capital Management, Inc - International ADR Equity - Gross Size 4.79 1.09 -2.31 7.88 6.61 5.36
INVESCO - International EM Equity - Gross Size 4.33 -1.31 2.84 -1.92 -0.70 8.04
Manning & Napier - International Equity - Gross Size 2.18 -2.48 -8.72 5.08 4.23 6.49
Nuveen Asset Management - International Growth ADR - Gross Size 5.57 6.01 2.3 12.74 9.87
The Boston Company Asset Mgmt., LLC - International Core Equity Management 5.19 0.19 -0.89 12.22 9.07 5.67
Thornburg Investment Mgmt. - International Equity - Gross Size 7.44 6.18 7.05 7.88 6.74 7.99
WHV - WHV International Equity - Gross Size -1.05 -11.49 -10.86 2.94 3.27 8.73
MSCI EAFE 5.00 1.29 -0.48 9.52 6.64 5.43
MSCI EMERGING MARKETS 2.28 -2.26 0.79 0.66 2.08 8.82
Rhumbline Large Cap(FYE)0.95 5.96 12.74 16.08 14.46 8.12
Rhumbline Mid Cap(FYE)5.33 11.98 12.20 16.97 15.79 10.42
Rhumbline Small Cap(FYE)3.98 14.20 8.75 17.26 16.24 9.75
ICC Large Growth(FYE)5.93 11.40 15.55 18.32 14.75 n/a
International Equity(FYE)4.38 2.35 1.89 10.77 8.19 n/a
Page 23
Performance of Other Managers
March 31, 2015
ALL CAP EQUITY
SMALL CAP EQUITY
REAL ESTATE (12/31/2014)
INTERNATIONAL EQUITY
Qtr YTD 1Yr 3Yr 5Yr 10Yr
Eagle Asset Management - Core Fixed Institutional - Gross Size 2.00 3.88 5.48 2.89 4.40 5.11
Garcia Hamilton & Associates - Fixed Aggregate - Gross Size 1.97 4.57 7.45 5.76 6.30 6.78
ICC Capital Management, Inc - Core Fixed Income - Gross Size 0.77 1.88 3.62 2.31 4.05 4.45
Integrity Fixed Income Mgmt, LLC - Core Fixed Income - Gross Size 1.49 3.09 5.79 3.92 5.16
Inverness Counsel, LLC - Pension Fixed Income - Gross Size 1.75 2.85 4.54 2.84 4.33 5.14
Montage & Caldwell Inc. - Core Fixed Income - Gross Size 1.39 2.75 4.35 2.37 3.54 4.92
Sawgrass Asset Management, LLC - Core Fixed Income - Gross Size 1.52 3.04 5.10 3.24 4.54 5.29
RBC Global Asset Management, Inc. - Broad Market Core - Gross Size 1.86 3.78 6.36 3.57 4.94 4.85
Wedge Capital Management - Core Fixed Income - Gross Size 1.65 3.31 5.86 3.83 5.01 5.68
Barclays Aggregate Bond 1.61 3.43 5.72 3.10 4.41 4.93
Barclays Gov/Credit Bond 1.84 3.69 5.86 3.35 4.75 4.96
Barclays High Yield US Corporate Bond 2.52 1.49 2.00 7.46 8.59 8.18
Eagle Asset Management - Institutional Conservative - Gross Size 1.55 2.60 3.85 2.22 3.68 4.75
Garcia Hamilton & Associates - Intermediate Fixed Income - Gross Size 1.60 3.03 4.87 4.56 5.17 5.95
Integrity Fixed Income Mgmt, LLC - Intermediate Fixed Income - Gross Size 1.31 2.26 4.21 3.08 4.29
RBC Global Asset Management, Inc. - Intermediate Core - Gross Size 1.57 2.46 3.74 2.67 3.96 4.08
Sit Investment Associates, Inc. - Intermediate Govt/Corp - Gross Size 1.91 3.33 5.84 3.68 5.01 5.54
Barclays Intermediate Aggregate 1.32 2.54 4.24 2.41 3.62 4.54
Barclays Gov/Credit-Intermediate 1.45 2.35 3.58 2.31 3.52 4.34
Brandywine Global - International Fixed Invst. Grade - Gross Size -1.67 -2.88 -1.93 2.71 4.89 5.10
PIMCO - Non US Fixed Income Unhedged - Gross Size -2.30 -4.47 -4.45 -0.02 4.18 4.86
Wells Capital Mgmt. - Global Fixed Income Ex-US - Gross Size -3.21 -5.16 -5.36 0.00 2.44 4.53
Citigroup World Government Ex-US -4.36 -7.14 -9.82 -3.32 0.38 2.51
ICC Fixed Income(FYE)1.44 2.42 4.02 2.24 3.88 4.14
International Bonds(FYE)0.37 -0.47 0.01 1.66 n/a n/a
American Realty(FYE)4.17 5.79 10.42 n/a n/a n/a
Page 24
INTERMEDIATE FIXED INCOME
INTERNATIONAL FIXED INCOME
Performance of Other Managers
March 31, 2015
CORE FIXED INCOME
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