HomeMy WebLinkAboutAgenda Fire Pension 071116THE RESOURCE CENTERS , LLC
4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410
Phone (561) 624-3277 Fax (561) 624-3278 WWW .RESOURCE CENTERS .COM
PALM BEACH GARDENS FIREFIGHTERS’
PENSION FUND
Meeting of Monday July 11, 2016
Location: City Hall, Council Chambers
Palm Beach Gardens City Hall
10500 North Military Trail
Palm Beach Gardens, FL 33410
Time: 1 PM
AGENDA
1. Call Meeting to Order
2. Public Comments
3. Minutes:
• Special Meeting Held on April 12, 2016
• Regular Meeting Held on May 4, 2016
4. Investment Monitor Report: The Bogdahn Group (Dan Johnson)
5. Attorney Report: Sugarman & Susskind, P.A. (Pedro Herrera)
• DROP Distribution Policy
• Memo: IRS Proposed Regulations Regarding Normal Retirement Age & In-
Service Distributions
6. Administrative Report: Resource Centers (Audrey Ross)
• Disbursements
• Benefit Approvals
• Service Provider Contract Review (Auditor & Custodian)
7. Old Business
8. Other Business
• BanCorpSouth, Inc. Litigation Update
• 10/1/2015 Senate Bill 534 (Section 112.664, Florida Statutes) Compliance
Report
9. Next Meeting Previously Scheduled Wednesday 3, 2016 at 1PM
10. Adjourn
PLEASE NOTE:
Should any interested party seek to appeal any decision made by the Board with respect to any matter considered at such meeting or hearing, he will need a
record of the proceedings, and for such purpose he may need to insure 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 Resource Centers, LLC no later than four days prior to the meeting.
June 17, 2016
VIA EMAIL
Ms. Audrey Ross
Plan Administrator
Resource Centers, LLC
4360 Northlake Blvd, Suite 206
Palm Beach Gardens, FL 33410
Re: City of Palm Beach Gardens Firefighters' Pension Fund
Senate Bill 534 (Section 112.664, Florida Statutes) Compliance
Dear Audrey:
Please find enclosed the annual disclosures that satisfy the October 1, 2015 financial reporting requirements
made under Section 112.664.
Our office will submit this information electronically to the Department of Management Services. However, it
is important for you to be aware that this report must also be made available on the Plan or Plan Sponsor’s
website, if such website exists. A deadline for this website publication is not made clear in the law.
In addition to the enclosed report, the Plan or Plan Sponsor's website must provide a link to the Division of
Retirement's Actuarial Summary Fact Sheet for the Plan, and also report the previous five years' assumed and
actual rates of return, along with their respective asset allocations. The Board should contact its Investment
Consultant for this information.
If there are any questions, concerns, or comments about any of the items contained in this report, please feel free to
contact me.
Respectfully submitted,
Foster & Foster, Inc.
By: _________________________
Douglas H. Lozen, EA, MAAA
Enrolled Actuary #14-7778
DHL/lke Enclosures
cc via email: Robert Sugarman, Board Attorney
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 · (239) 433-5500 · Fax (239) 481-0634 · www.foster-foster.com
CITY OF PALM BEACH GARDENS
FIREFIGHTERS' PENSION FUND
SECTION 112.664, FLORIDA STATUTES
COMPLIANCE
With respect to the reporting standards for defined benefit retirement plans or systems contained in Section
112.664(1), F.S., the actuarial disclosures required under this section were prepared and completed by me
or under my direct supervision and I acknowledge responsibility for the results. To the best of my
knowledge, the results are complete and accurate, and in my opinion, meet the requirements of Section
112.664(1), Florida Statutes, and Rule 60T-1.0035, Florida Administrative Code.
By: Date: 6/17/2016
Douglas H. Lozen, EA, MAAA
Enrolled Actuary #14-7778
When reviewing the following schedules, please note the following:
1) The purpose of producing this report is solely to satisfy the requirements set forth by Section
112.664, Florida Statutes, and is mandatory for every Florida public pension fund, excluding the
Florida Retirement System (FRS).
2) None of the schedules shown have any impact on the funding requirements of the Plan. These
schedules are for statutory compliance purposes only.
3)In the schedules that follow, the columns labeled “ACTUAL” represent the final recorded GASB
67/68 results. The columns labeled “HYPOTHETICAL” illustrate what the results would have
been if different assumptions were used.
4)It is our opinion that the Plan’s actual assumptions utilized in the October 1, 2015 Actuarial
Valuation Report, as adopted by the Board of Trustees, are reasonable individually and in the
aggregate, and represent our best estimate of future Plan experience.
5) The “Number of Years Expected Benefit Payments Sustained” calculated in Section II: Asset
Sustainability should not be interpreted as the number of years the Plan has left until it is
insolvent. This calculation is required by 112.664, Florida Statutes, but the numeric result is
irrelevant, since in its calculation we are to assume there will be no further contributions to the
Fund. As long as the Actuarially Determined Contribution is made each year the Plan will never
become insolvent.
INTRODUCTION Section 112.664, F.S. Requirements
___________________________________________________________________________________________________________________________
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 3
SECTION I - GASB 67/68 Section 112.664, F.S. Requirements
_____________________________________________________________________________________________________________________________________
ACTUAL
7.65%7.65%5.65%9.65%
RP-2000 RP-2000 RP-2000 RP-2000
Static Generational Generational Generational
9/30/2015 9/30/2015 9/30/2015 9/30/2015
Total Pension Liability
Service Cost 1,760,152 1,853,166 3,019,026 1,184,656
Interest 6,786,918 7,097,822 6,878,383 7,142,367
Change in Excess State Money 222,133 222,133 222,133 222,133
Changes of Benefit Terms - - - -
Differences Between Expected and Actual
Experience (1,460,746) (1,645,029) (1,570,394) (1,728,954)
Changes of Assumptions 2,004,899 2,234,433 3,428,308 1,519,400
Benefit Payments, Including Refunds of
Employee Contributions (1,935,428) (1,935,428) (1,935,428) (1,935,428)
Net Change in Total Pension Liability 7,377,928 7,827,097 10,042,028 6,404,174
Total Pension Liability - Beginning 85,665,110 89,532,668 115,527,890 72,294,402
Total Pension Liability - Ending (a)93,043,038$ 97,359,765$ 125,569,918$ 78,698,576$
Plan Fiduciary Net Position
Contributions - Employer 3,746,995 3,746,995 3,746,995 3,746,995
Contributions - State 726,993 726,993 726,993 726,993
Contributions - Employee 445,465 445,465 445,465 445,465
Net Investment Income 835,212 835,212 835,212 835,212
Benefit Payments, Including Refunds of
Employee Contributions (1,935,428) (1,935,428) (1,935,428) (1,935,428)
Administrative Expenses (84,807) (84,807) (84,807) (84,807)
Net Change in Plan Fiduciary Net
Position 3,734,430 3,734,430 3,734,430 3,734,430
Plan Fiduciary Net Position - Beginning 69,224,751 69,224,751 69,224,751 69,224,751
Plan Fiduciary Net Position - Ending (b) $ 72,959,181 $ 72,959,181 $ 72,959,181 $ 72,959,181
Net Pension Liability - Ending (a) - (b)20,083,857$ 24,400,584$ 52,610,737$ 5,739,395$
Pension Expense 3,010,763$ 3,214,068$ 5,318,919$ 1,487,513$
HYPOTHETICAL
GASB 67: Schedule of Changes in Net Pension Liability
GASB 68: Pension Expense for Fiscal Year Ending September 30, 2015
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 4
SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements
______________________________________________________________________________________________________________________________________________________
Fiscal Year
Beginning 10/1
Projected Beginning
Fiduciary Net Position
Projected Total
Contributions
Projected Benefit
Payments*
Projected
Administrative
Expense
Projected Investment
Earnings
Projected Ending
Fiduciary Net Position
2015 72,470,355 - 13,278,883 - 5,036,065 64,227,537
2016 64,227,537 - 3,256,935 - 4,788,829 65,759,431
2017 65,759,431 - 3,632,164 - 4,891,666 67,018,933
2018 67,018,933 - 3,857,868 - 4,979,385 68,140,450
2019 68,140,450 - 4,360,697 - 5,045,948 68,825,701
2020 68,825,701 - 4,645,090 - 5,087,491 69,268,102
2021 69,268,102 - 4,920,690 - 5,110,793 69,458,205
2022 69,458,205 - 5,158,835 - 5,116,227 69,415,597
2023 69,415,597 - 5,387,329 - 5,104,228 69,132,496
2024 69,132,496 - 5,558,469 - 5,076,025 68,650,052
2025 68,650,052 - 5,760,243 - 5,031,400 67,921,209
2026 67,921,209 - 5,932,058 - 4,969,071 66,958,222
2027 66,958,222 - 6,125,881 - 4,887,989 65,720,330
2028 65,720,330 - 6,292,365 - 4,786,922 64,214,887
2029 64,214,887 - 6,418,300 - 4,666,939 62,463,526
2030 62,463,526 - 6,534,984 - 4,528,497 60,457,039
2031 60,457,039 - 6,661,259 - 4,370,170 58,165,950
2032 58,165,950 - 6,764,015 - 4,190,972 55,592,907
2033 55,592,907 - 6,863,109 - 3,990,343 52,720,141
2034 52,720,141 - 6,928,906 - 3,768,060 49,559,295
2035 49,559,295 - 6,979,437 - 3,524,323 46,104,181
2036 46,104,181 - 7,017,090 - 3,258,566 42,345,657
2037 42,345,657 - 7,035,858 - 2,970,321 38,280,120
2038 38,280,120 - 7,036,432 - 2,659,286 33,902,974
2039 33,902,974 - 7,016,153 - 2,325,210 29,212,031
2040 29,212,031 - 6,971,960 - 1,968,043 24,208,114
2041 24,208,114 - 6,900,944 - 1,587,960 18,895,130
2042 18,895,130 - 6,801,444 - 1,185,322 13,279,008
2043 13,279,008 - 6,671,671 - 760,653 7,367,990
2044 7,367,990 - 6,511,335 - 314,593 1,171,248
2045 1,171,248 - 6,318,309 - - -
*All DROP and Share Balances paid in 2015.
Number of Years Expected Benefit Payments Sustained: 30.19
This projection assumes no further contributions, assumes no further benefit accruals, and assumes Market Value of Assets earn 7.65% interest.
It is important to note that as long as the Actuarially Determined Contribution is made each year, the Plan will never become insolvent.
Furthermore, State and local laws mandate that the Actuarially Determined Contribution be made each year.
Table 1
Plan Assumptions: 7.65% and RP-2000 Static Mortality
PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 5
SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements
______________________________________________________________________________________________________________________________________________________
Fiscal Year
Beginning 10/1
Projected Beginning
Fiduciary Net Position
Projected Total
Contributions
Projected Benefit
Payments*
Projected
Administrative
Expense
Projected Investment
Earnings
Projected Ending
Fiduciary Net Position
2015 72,470,355 - 13,279,202 - 5,036,053 64,227,206
2016 64,227,206 - 3,257,817 - 4,788,770 65,758,159
2017 65,758,159 - 3,634,775 - 4,891,469 67,014,853
2018 67,014,853 - 3,862,827 - 4,978,883 68,130,909
2019 68,130,909 - 4,368,353 - 5,044,925 68,807,481
2020 68,807,481 - 4,655,552 - 5,085,697 69,237,626
2021 69,237,626 - 4,936,069 - 5,107,874 69,409,431
2022 69,409,431 - 5,179,459 - 5,111,707 69,341,679
2023 69,341,679 - 5,413,314 - 5,097,579 69,025,944
2024 69,025,944 - 5,591,572 - 5,066,607 68,500,979
2025 68,500,979 - 5,809,491 - 5,018,112 67,709,600
2026 67,709,600 - 5,996,055 - 4,950,435 66,663,980
2027 66,663,980 - 6,209,409 - 4,862,285 65,316,856
2028 65,316,856 - 6,396,621 - 4,752,069 63,672,304
2029 63,672,304 - 6,551,489 - 4,620,337 61,741,152
2030 61,741,152 - 6,697,406 - 4,467,022 59,510,768
2031 59,510,768 - 6,858,261 - 4,290,245 56,942,752
2032 56,942,752 - 7,000,131 - 4,088,366 54,030,987
2033 54,030,987 - 7,144,237 - 3,860,103 50,746,853
2034 50,746,853 - 7,259,626 - 3,604,454 47,091,681
2035 47,091,681 - 7,367,571 - 3,320,704 43,044,814
2036 43,044,814 - 7,469,114 - 3,007,235 38,582,935
2037 38,582,935 - 7,559,624 - 2,662,439 33,685,750
2038 33,685,750 - 7,638,313 - 2,284,794 28,332,231
2039 28,332,231 - 7,702,479 - 1,872,796 22,502,548
2040 22,502,548 - 7,748,819 - 1,425,053 16,178,782
2041 16,178,782 - 7,773,274 - 940,349 9,345,857
2042 9,345,857 - 7,772,861 - 417,646 1,990,642
2043 1,990,642 - 7,744,799 - - -
*All DROP and Share Balances paid in 2015.
Number of Years Expected Benefit Payments Sustained: 28.26
This projection assumes no further contributions, assumes no further benefit accruals, and assumes Market Value of Assets earn 7.65% interest.
It is important to note that as long as the Actuarially Determined Contribution is made each year, the Plan will never become insolvent.
Furthermore, State and local laws mandate that the Actuarially Determined Contribution be made each year.
PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS
Table 2
Hypothetical Assumptions: 7.65% and RP-2000 Generational Mortality
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 6
SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements
______________________________________________________________________________________________________________________________________________________
Fiscal Year
Beginning 10/1
Projected Beginning
Fiduciary Net Position
Projected Total
Contributions
Projected Benefit
Payments*
Projected
Administrative
Expense
Projected Investment
Earnings
Projected Ending
Fiduciary Net Position
2015 72,470,355 - 13,279,202 - 3,719,438 62,910,591
2016 62,910,591 - 3,257,817 - 3,462,415 63,115,189
2017 63,115,189 - 3,634,775 - 3,463,326 62,943,740
2018 62,943,740 - 3,862,827 - 3,447,196 62,528,109
2019 62,528,109 - 4,368,353 - 3,409,432 61,569,188
2020 61,569,188 - 4,655,552 - 3,347,140 60,260,776
2021 60,260,776 - 4,936,069 - 3,265,290 58,589,997
2022 58,589,997 - 5,179,459 - 3,164,015 56,574,553
2023 56,574,553 - 5,413,314 - 3,043,536 54,204,775
2024 54,204,775 - 5,591,572 - 2,904,608 51,517,811
2025 51,517,811 - 5,809,491 - 2,746,638 48,454,958
2026 48,454,958 - 5,996,055 - 2,568,317 45,027,220
2027 45,027,220 - 6,209,409 - 2,368,622 41,186,433
2028 41,186,433 - 6,396,621 - 2,146,329 36,936,141
2029 36,936,141 - 6,551,489 - 1,901,812 32,286,464
2030 32,286,464 - 6,697,406 - 1,634,983 27,224,041
2031 27,224,041 - 6,858,261 - 1,344,412 21,710,192
2032 21,710,192 - 7,000,131 - 1,028,872 15,738,933
2033 15,738,933 - 7,144,237 - 687,425 9,282,121
2034 9,282,121 - 7,259,626 - 319,355 2,341,850
2035 2,341,850 - 7,367,571 - - -
*All DROP and Share Balances paid in 2015.
Number of Years Expected Benefit Payments Sustained: 20.32
This projection assumes no further contributions, assumes no further benefit accruals, and assumes Market Value of Assets earn 5.65% interest.
It is important to note that as long as the Actuarially Determined Contribution is made each year, the Plan will never become insolvent.
Furthermore, State and local laws mandate that the Actuarially Determined Contribution be made each year.
PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS
Table 3
Hypothetical Assumptions: 5.65% and RP-2000 Generational Mortality
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 7
SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements
______________________________________________________________________________________________________________________________________________________
Fiscal Year
Beginning 10/1
Projected Beginning
Fiduciary Net Position
Projected Total
Contributions
Projected Benefit
Payments*
Projected
Administrative
Expense
Projected Investment
Earnings
Projected Ending
Fiduciary Net Position
2015 72,470,355 - 13,279,202 - 6,352,668 65,543,821
2016 65,543,821 - 3,257,817 - 6,167,789 68,453,793
2017 68,453,793 - 3,634,775 - 6,430,413 71,249,431
2018 71,249,431 - 3,862,827 - 6,689,189 74,075,793
2019 74,075,793 - 4,368,353 - 6,937,541 76,644,981
2020 76,644,981 - 4,655,552 - 7,171,610 79,161,039
2021 79,161,039 - 4,936,069 - 7,400,875 81,625,845
2022 81,625,845 - 5,179,459 - 7,626,985 84,073,371
2023 84,073,371 - 5,413,314 - 7,851,888 86,511,945
2024 86,511,945 - 5,591,572 - 8,078,609 88,998,982
2025 88,998,982 - 5,809,491 - 8,308,094 91,497,585
2026 91,497,585 - 5,996,055 - 8,540,207 94,041,737
2027 94,041,737 - 6,209,409 - 8,775,424 96,607,752
2028 96,607,752 - 6,396,621 - 9,014,011 99,225,142
2029 99,225,142 - 6,551,489 - 9,259,117 101,932,770
2030 101,932,770 - 6,697,406 - 9,513,362 104,748,726
2031 104,748,726 - 6,858,261 - 9,777,341 107,667,806
2032 107,667,806 - 7,000,131 - 10,052,187 110,719,862
2033 110,719,862 - 7,144,237 - 10,339,757 113,915,382
2034 113,915,382 - 7,259,626 - 10,642,557 117,298,313
2035 117,298,313 - 7,367,571 - 10,963,802 120,894,544
2036 120,894,544 - 7,469,114 - 11,305,939 124,731,369
2037 124,731,369 - 7,559,624 - 11,671,825 128,843,570
2038 128,843,570 - 7,638,313 - 12,064,856 133,270,113
2039 133,270,113 - 7,702,479 - 12,488,921 138,056,555
2040 138,056,555 - 7,748,819 - 12,948,577 143,256,313
2041 143,256,313 - 7,773,274 - 13,449,174 148,932,213
2042 148,932,213 - 7,772,861 - 13,996,918 155,156,270
2043 155,156,270 - 7,744,799 - 14,598,894 162,010,365
2044 162,010,365 - 7,685,866 - 15,263,157 169,587,656
2045 169,587,656 - 7,592,595 - 15,998,866 177,993,927
2046 177,993,927 - 7,463,699 - 16,816,290 187,346,518
2047 187,346,518 - 7,295,605 - 17,726,926 197,777,839
2048 197,777,839 - 7,086,380 - 18,743,644 209,435,103
2049 209,435,103 - 6,835,872 - 19,880,657 222,479,888
2050 222,479,888 - 6,544,966 - 21,153,515 237,088,437
2051 237,088,437 - 6,215,631 - 22,579,130 253,451,936
2052 253,451,936 - 5,852,860 - 24,175,711 271,774,787
2053 271,774,787 - 5,463,524 - 25,962,652 292,273,915
2054 292,273,915 - 5,054,818 - 27,960,538 315,179,635
2055 315,179,635 - 4,634,572 - 30,191,217 340,736,280
2056 340,736,280 - 4,212,472 - 32,677,799 369,201,607
2057 369,201,607 - 3,795,825 - 35,444,807 400,850,589
2058 400,850,589 - 3,390,851 - 38,518,473 435,978,211
2059 435,978,211 - 3,004,888 - 41,926,912 474,900,235
2060 474,900,235 - 2,643,567 - 45,700,321 517,956,989
2061 517,956,989 - 2,310,200 - 49,871,382 565,518,171
2062 565,518,171 - 2,005,158 - 54,475,755 617,988,768
2063 617,988,768 - 1,729,956 - 59,552,446 675,811,258
2064 675,811,258 - 1,484,781 - 65,144,146 739,470,623
PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS
Table 4
Hypothetical Assumptions: 9.65% and RP-2000 Generational Mortality
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 8
SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements
______________________________________________________________________________________________________________________________________________________
Fiscal Year
Beginning 10/1
Projected Beginning
Fiduciary Net Position
Projected Total
Contributions
Projected Benefit
Payments*
Projected
Administrative
Expense
Projected Investment
Earnings
Projected Ending
Fiduciary Net Position
PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS
Table 4
Hypothetical Assumptions: 9.65% and RP-2000 Generational Mortality
2065 739,470,623 - 1,268,010 - 71,297,734 809,500,347
2066 809,500,347 - 1,077,710 - 78,064,784 886,487,421
2067 886,487,421 - 911,895 - 85,502,037 971,077,563
2068 971,077,563 - 767,806 - 93,671,938 1,063,981,695
2069 1,063,981,695 - 643,625 - 102,643,179 1,165,981,249
2070 1,165,981,249 - 536,312 - 112,491,313 1,277,936,250
2071 1,277,936,250 - 443,418 - 123,299,453 1,400,792,285
2072 1,400,792,285 - 363,772 - 135,158,904 1,535,587,417
2073 1,535,587,417 - 295,823 - 148,169,912 1,683,461,506
2074 1,683,461,506 - 238,122 - 162,442,546 1,845,665,930
2075 1,845,665,930 - 189,575 - 178,097,615 2,023,573,970
2076 2,023,573,970 - 148,870 - 195,267,705 2,218,692,805
2077 2,218,692,805 - 115,437 - 214,098,286 2,432,675,654
2078 2,432,675,654 - 88,342 - 234,748,938 2,667,336,250
2079 2,667,336,250 - 66,476 - 257,394,741 2,924,664,515
2080 2,924,664,515 - 49,232 - 282,227,750 3,206,843,033
2081 3,206,843,033 - 35,859 - 309,458,622 3,516,265,796
2082 3,516,265,796 - 25,654 - 339,318,412 3,855,558,554
2083 3,855,558,554 - 18,102 - 372,060,527 4,227,600,979
2084 4,227,600,979 - 12,555 - 407,962,889 4,635,551,313
2085 4,635,551,313 - 8,553 - 447,330,289 5,082,873,049
2086 5,082,873,049 - 5,775 - 490,496,971 5,573,364,245
2087 5,573,364,245 - 3,870 - 537,829,463 6,111,189,838
2088 6,111,189,838 - 2,569 - 589,729,695 6,700,916,964
2089 6,700,916,964 - 1,690 - 646,638,405 7,347,553,679
2090 7,347,553,679 - 1,104 - 709,038,877 8,056,591,452
2091 8,056,591,452 - 713 - 777,461,041 8,834,051,780
2092 8,834,051,780 - 457 - 852,485,975 9,686,537,298
2093 9,686,537,298 - 291 - 934,750,835 10,621,287,842
2094 10,621,287,842 - 182 - 1,024,954,268 11,646,241,928
2095 11,646,241,928 - 113 - 1,123,862,341 12,770,104,156
2096 12,770,104,156 - 70 - 1,232,315,048 14,002,419,134
2097 14,002,419,134 - 42 - 1,351,233,444 15,353,652,536
2098 15,353,652,536 - 24 - 1,481,627,469 16,835,279,981
2099 16,835,279,981 - 14 - 1,624,604,517 18,459,884,484
2100 18,459,884,484 - 8 - 1,781,378,852 20,241,263,328
2101 20,241,263,328 - 5 - 1,953,281,911 22,194,545,234
2102 22,194,545,234 - 3 - 2,141,773,615 24,336,318,846
2103 24,336,318,846 - 1 - 2,348,454,769 26,684,773,614
2104 26,684,773,614 - - - 2,575,080,654 29,259,854,268
*All DROP and Share Balances paid in 2015.
Number of Years Expected Benefit Payments Sustained: 999.99
This projection assumes no further contributions, assumes no further benefit accruals, and assumes Market Value of Assets earn 9.65% interest.
It is important to note that as long as the Actuarially Determined Contribution is made each year, the Plan will never become insolvent.
Furthermore, State and local laws mandate that the Actuarially Determined Contribution be made each year.
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 9
SECTION III - FUNDING Section 112.664, F.S. Requirements
______________________________________________________________________________________________________________________________________________________
ACTUAL
7.65%7.65%5.65%9.65%
RP-2000 RP-2000 RP-2000 RP-2000
Static Generational Generational Generational
Total Required Contribution (Fixed $)$3,775,253 $4,046,824 $6,392,265 $2,811,917
Total Required Contribution (% of Payroll)53.11%56.93%89.93%39.56%
Expected Member Contribution 426,513 426,513 426,513 426,513
Expected State Money 483,382 483,382 483,382 483,382
Expected Sponsor Contribution (Fixed $)$2,865,358 $3,136,929 $5,482,370 $1,902,022
Expected Sponsor Contribution (% of Payroll)40.31%44.13%77.13%26.76%
ASSETS
Actuarial Value ¹74,423,562 74,423,562 74,423,562 74,423,562
Market Value ¹72,470,355 72,470,355 72,470,355 72,470,355
LIABILITIES
Present Value of Benefits
Active Members
Retirement Benefits 46,654,096 49,297,927 71,474,462 35,703,208
Disability Benefits 378,523 408,434 545,140 317,464
Death Benefits 193,973 141,110 180,160 112,600
Vested Benefits 2,989,557 3,167,180 5,101,277 2,078,593
Refund of Contributions 22,859 22,861 23,624 22,145
Service Retirees 17,250,127 18,098,389 23,353,836 14,569,025
DROP Retirees ¹ 23,323,776 24,233,209 31,021,009 19,744,768
Beneficiaries 0 0 0 0
Disability Retirees 1,156,125 1,243,551 1,500,240 1,058,851
Terminated Vested 940,073 996,422 1,404,975 738,295
Share Plan Balances 8,580,169 8,580,169 8,580,169 8,580,169
Total:101,489,278 106,189,252 143,184,892 82,925,118
Present Value of Future Salaries 46,768,515 46,823,880 51,092,495 43,235,936
Present Value of Future
Member Contributions 2,806,111 2,809,433 3,065,550 2,594,156
Total Normal Cost 1,968,561 2,078,378 3,068,507 1,479,040
Present Value of Future
Normal Costs (Entry Age Normal)13,555,347 14,341,863 22,493,374 9,629,104
Total Actuarial Accrued Liability ¹ 87,933,931 91,847,389 120,691,518 73,296,014
Unfunded Actuarial Accrued 13,510,369 17,423,827 46,267,956 -1,127,548
Liability (UAAL)
HYPOTHETICAL
ACTUAL AND HYPOTHETICAL CONTRIBUTIONS APPLICABLE TO THE FISCAL YEAR
Valuation Date: 10/1/2015
ENDING SEPTEMBER 30, 2017
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 10
SECTION III - FUNDING Section 112.664, F.S. Requirements
______________________________________________________________________________________________________________________________________________________
ACTUAL
7.65%7.65%5.65%9.65%
RP-2000 RP-2000 RP-2000 RP-2000
Static Generational Generational Generational
HYPOTHETICAL
ACTUAL AND HYPOTHETICAL CONTRIBUTIONS APPLICABLE TO THE FISCAL YEAR
Valuation Date: 10/1/2015
ENDING SEPTEMBER 30, 2017
PENSION COST
Normal Cost (with interest)2,043,858 2,157,876 3,155,192 1,550,404
Administrative Expenses (with interest)88,051 88,051 87,203 88,899
Payment Required To Amortize UAAL
(with interest)1,643,344 1,800,897 3,149,870 1,172,614
Total Required Contribution $3,775,253 $4,046,824 $6,392,265 $2,811,917
¹ The asset values and liabilities for DROP Members include accumulated DROP Balances as of 9/30/2015.
City of Palm Beach Gardens Firefighters' Pension Fund FOSTER & FOSTER | 11
SUGARMAN & SUSSKIND
PROFESSIONAL ASSOCIATION
ATTORNEYS AT LAW
Robert A. Sugarman♦ 100 Miracle Mile
Howard S. Susskind Suite 300
Kenneth R. Harrison, Sr. Coral Gables, Florida 33134
D. Marcus Braswell, Jr. (305) 529-2801
Pedro A. Herrera Broward 327-2878
Noah Scott Warman♦ Toll Free 1-800-329-2122
Ivelisse Berio LeBeau Facsimile (305) 447-8115
Dustin L. Watkins
Michael Gillman
♦Board Certified Labor
& Employment Lawyer
TO: Board of Trustees
FROM: Sugarman & Susskind, P.A.
DATE: May 24, 2016
Re: IRS Proposed Regulations regarding Normal Retirement Age and In-Service
Distributions
Dear Trustees:
We recently reported to you that the IRS has issued proposed regulations that would set
clear standards for governmental plans with regard to Normal Retirement Age and In-Service
Distributions.
As we explained in our report, current law permits qualified pension plans to pay pension
benefits to a member once that member has attained normal retirement age under the plan, even
if the member has not yet separated from employment. Such payments are called “in-service
distributions.”
The proposed regulations establish “safe harbor” normal retirement ages that the IRS
considers to be reasonable for the commencement of in-service distributions. As long as a plan
that makes in-service distributions does not set its normal retirement age below the safe harbor
age, the plan will be considered to be in compliance with the regulations.
In addition, a qualified plan may only make in-service distributions if such distributions
are not inconsistent with the plan document. Therefore, compliance with the regulations depends
both upon the language in the plan document, and the administration of the plan.
In order to prepare you for compliance, we have completed a review of your plan
document, and have determined that the following additional information is necessary to our
evaluation:
Memo to Board of Trustees
Re: IRS Proposed Regulations regarding Normal Retirement Age and In-Service
Distributions
May 24, 2016
| 2 Page
1) Whether any retirees under the plan are currently working for the plan sponsor
(the contributing employer to the plan);
2) The retiree’s former position/job title with the plan sponsor;
3) The retiree’s new position/job title with the plan sponsor;
4) The retiree’s prior job classification/duties with the plan sponsor;
5) The retiree’s new job classification/duties with the plan sponsor;
6) The age of the retiree on the date at which the re-hire was effective;
7) Whether the retiree left on early or normal retirement or disability;
8) The average number of hours per month that the retiree has worked since re-hire.
Once we receive the requested information, we will advise you of any required plan of
action, if any, to ensure that the operation of the plan is consistent with the plan document, and
that both comply with the new IRS guidelines.
We look forward to discussing this matter with you further once our analysis is complete.