HomeMy WebLinkAboutAgenda GEPB 022117AGENDA
CITY OF PALM BEACH GARDENS
GENERAL EMPLOYEES’ PENSION FUND
Tuesday, February 21, 2017 10:30 am
CITY HALL LOBBY CONFERENCE ROOM
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL:
Allan Owens
Mary Anderson-Pickle
Dindial Laljie
IV. ADDITIONS, DELETIONS, MODIFICATIONS
V. APPROVAL OF MINUTES
APRIL 11, 2016
VI. OLD BUSINESS
VII. NEW BUSINESS
a. Review Investment Performance by Florida League of Cities
VIII. COMMENTS BY PUBLIC
IX. COMMENTS BY THE BOARD
X. ADJOURNMENT
.I
ACTUARIAL VALUATION
As OF OCTOBER I, 2015
GASB 67/68 SUPPLEMENT
As Of SEPTEMBER 30, 2016
==--= SOUT~ERN
=-"= ACTUARIAL =---= SERVICES
DISCLOSURES RELATED TO THE GENERAL EMPLOYEES ' PENSION PLAN
NET PENSION LIABILITY AS OF SEPTEMBER 30, 2016
Total pension liability
Less fiduciary net position
Net pens ion li ab ility
$3,370,170 *
(2,285,725)
$1,084 .445 **
• This amount has been rolled forward from October 1, 2015.
•• This amount is recognized on the employer's balance sheet.
PENSI ON EXPENSE FOR THE 20 15/16 FIS CA L YEAR
Service cost $28,547
Other recognized changes in net pension liability :
Expected interest growth
Investmen t gain/loss
Demograph ic gain/loss
Employee contributions
Administrative expenses
Changes in benefit terms
Assumption changes
Pens ion expense
74,465
23,479
(12,156)
(9,976)
10,675
0
28,504
$1 43 ,538 *
... This amount is recognized on the employer's income statement, along
wnh the employer contribution for the 2015/16 fiscal year.
DEFERRED INFLOW AND OUTFLOW OF RESOURCES
Deferred Outflows
Of Resources
Balance as of September 30, 2015 $394,816
Change due to:
Amortization payments $(64 ,258)
Investment gain/loss $0
Demographic gain/loss $45,110
Assumption changes so
Total change $(19, 148)
Balance as of September 30, 2016 $375 ,668 *
• These amounts are recognized on the employer's balance sheet
BALANCE EQUATION
Net pension liability as of September 30, 2015
Plus pension expense for the 2015/16 fiscal year
Minus employer contribution for the 2015/16 fiscal year
Plus change in balance of deferred outflows of resources
Minus change in balance of deferred inflows of resources
Net pension liability as of September 30, 2016
Deferred Inflows
Of Resources
$168,367
$(24,431)
$24,668
$0
d
$168,604 *
$1 ,106,479
$143,53 8
$(146,187)
$(19,148)
$(237)
$1,084,445
DISCLOSURES RELATED TO THE GENERAL EMP LOYEES ' PENS ION PLAN (co ntinued)
DEFERRED INFLOW AND OUTFLOW OF RESOURCES (continued)
Amort ization schedule for deferred outflows and inflows of resources:
Deferred Outflows Deferred Inflows
Of Resources Of Resources
Balance as of September 30 . 2016 $375,668 $168,604
Amount recognized in the
2016/17 pension expense :
Investment gain/Toss $31 ,006 $7,527
Demographic ga in/loss $4,748 $16,904
Assumption changes $28,504 $0
Total $64 ,258 $24,431
Balance as of September 30, 2017 $311,410 $144,173
Amount recogn ized in the
2017/18 pension expense:
Investment gain/Toss $31,006 $7,527
Demographic gain/loss $4,748 $16,904
Assumption changes $28.504 $0
Total $64 ,258 $24,431
Balance as of September 30, 2018 $247 ,152 $119,742
Amount recognized in the
2018/19 pension expense:
Investment grunl/oss $31 ,007 $4,934
De mographic gain/loss $4 ,748 $16,904
Assumption changes i28:504 $0
Total $64,259 $21,838
Balance as of September 30, 2019 $182 ,893 $97 ,904
Amount recognize d in the
2019/20 pension exp ense:
Investme nt gain/loss $0 $4,932
Demo graphic gain/loss $4,748 $16,904
Assumption changes $28 .504 $0
Total $33 ,252 $21 ,836
Balance as of September 30, 2020 $149,641 $76 ,068
Amount recognized in the
2020/21 pen sion ex pense:
Investment gain/loss $0 $0
Demographic gairv'/oss $4,748 $16,904
Assumption changes $28,504 $0
Total $33,252 $16,904
Balance as of September 30, 2021 $116 ,389 $59,164
DISCLOSURES REL ATED TO THE GENERAL EM PLOYEES' PENSION PLAN (continued)
CHANGES IN THE NET PENSION LIAB ILITY
Total Pension liability Fiduciary Net Position
Balance as of September 30, 2015 $3,31 1,486 $(2,205,007)
Change due to:
Service cost $28,547 $0
Expected interest growth $225,546 $(151 ,081)
Unexpected investment income $0 $(24,668)
Demographic experience $45,110 $0
Employer contributions $0 $(146, 187)
Employee contributions $0 $(9,976)
Benefit payments & refunds $(240,519) $240,519
Administrative expenses $0 $10,675
Changes in benefit terms $0 $0
Assumption changes $0 $0
Balance as of September 30, 2016 $3,370,170 $(2,285,725)
COMPARISON OF NET PENSION LIABILITY USING ALTERNATIVE DISCOUNT RATES
Discount Rate Minus 1.00% 7.00% Discount Rate
Total pension liability $3,694,571 $3,370,170
Less fiduciary net position (2,285.725) (2,285,725)
Net pension liability $1,408,846 $1 ,084,445
HISTORICAL TREND INFORMATION
Measurement Total Pension Fiduciary Net Pension Funded
Date Liabilitv Net Position Liabilitv Percentage
September 30, 2016 $3,370,170 $2,285,725 $1,084,445 67.82%
September 30, 2015 $3,311,486 $2,205,007 $1,106 ,479 66.59%
September 30, 2014 $3,190,393 $2,276 ,084 $914,309 71.34%
September 30, 2013 $3,175,732 $2,209 ,462 $966,270 69.57°k
September 30, 20 12 $3,165,477 $2,103,061 $1,062,416 66 .44%
October 1, 2011 $3,143,437 $2,081,483 $1 ,061 ,954 66.22°k
October 1, 2009 $3,188,958 $2,501,664 $687 ,294 78.45%
October 1, 2008 $3,304,981 $2 ,823 ,246 $481 ,735 85.42%
October 1, 2007 $3,242,068 $2 ,761 ,142 $480,926 85.17°k
October 1, 2006 $3,282,189 $2,665 ,022 $617 ,167 81 .20%
Net Pension liability
$1 ,106,479
$28,547
$74,465
$(24,668)
$45,110
$(146, 187)
$(9,976)
$0
$10,675
$0
$0
$1 ,084,445
Discount Rate Plus 1.00%
$3,089,149
(2,285,725)
$803,424
Net Pension
Covered Liab ility as a °lo of
Payroll Covered Payroll
$176,405 614.75%
$166,945 662.78%
$101,085 904.50%
$101,085 955.90%
$101,085 1,051 .01 %
$122,051 870.09%
$157,437 436.55%
$149,940 321 .29%
$130,793 367.70%
$273 ,962 225 .27%
DISCLOSURES RELATED TO THE GENERA L EMP LOYEES ' PENS ION PLAN (contin ued)
HISTORICAL TREND INFORMATION (continued)
Changes in the net pension liability by source
Expecte d Unexpected
Service Interest Investment Demographic Employer
Fiscal Cost Growth Income Experience Contributions
Year
2015/16 $28,547 $74,465 $(24,668) $45,110 $(146, 187)
2014/15 $26,882 $60,117 $155,031 $(177,492) $(172,758)
2013/14 $22,444 $74,414 $(12,965) $0 $(120,572)
Benefit Changes In
Employee Payments Adm inistrative Benefit Assumption
Contributions & Refunds Expenses Terms Changes
S(9,976) $0 $10,675 $0 $0
$(10,080) $0 $11,175 $0 $299,295
$(9,540) $(11,228) $5,486 $0 so
Note: The amortization period for demographic experience and assumption changes was 10.50 years for the 2014115 fiscal year and 9.50 years for the 2015/16 fiscal year.
DISCLOSURES RELATED TO THE GENERAL EMPLOYEES' PENSION PLAN (continued)
HISTORICAL TREND IN FORMAT ION (continued)
(1) (2) (3)
Actuarially Contributions Difference Column (2)
Determined Recognized Between Covered asa%of
Fiscal Year End Contribution Bv the Plan (1) and (2) Payroll Covered Payroll
September 30, 2016 $149,812 $146,187 $(3,625) $176,405 82.87%
September 30, 2015 $142,615 $172,758 $30,143 $166,945 103.48%
September 30, 2014 $120 ,572 $120,572 $0 $101,085 119.28%
September 30, 2013 $120,572 $120,572 $0 $101,085 119.28%
September 30, 2012 $130 ,810 $130,810 $0 $122,051 107.18%
September 30, 2011 $125,273 $125,273 $0 Not available Not available
September 30, 201 O $77,753 $77,753 $0 $157,437 49.39%
September 30, 2009 $60,503 $60,503 . $0 $149,940 40.35%
September 30, 2008 $91,488 $91,488 $0 $130,793 69.95%
INFORMATION USED TO DETERMINE THE NET PENS ION LIABILITY
Employer's reporting date:
Measurement date:
Actuarial valuation date:
Actuarial assumptions
Discount rate:
Salary increases:
Cost-of-liv ing increases:
Mortality basis:
Retirement:
Other decrements:
Form of payment:
Non -investment expenses:
Future contributions:
Changes:
September 30, 2016
September 30, 2016
October 1, 2015
7.00% per annum (2.92% per annum is attributable to long-term inflation); this rate was used to discount
all future benefit payments.
5.00% per annum; final pay is increased by 20.00% to reflect anticipated non-regular compensation.
None assumed
Sex-distinct rates set forth in the RP-2000 Mortality Table for annuitants and non-annuitants, projected to
2007 by Scale AA. as published by the Internal Revenue SeNice (IRS) for purposes of Internal Revenue
Code (/R C) section 430; future generational improvements in mortality have not been reflected.
100% at age 55 with 10 years of service
None assumed
Future retirees are assumed to select the 10-year certain and life annuity.
Projected liability has been loaded by 4.00% to account for non-investment expenses.
Contributions from the employer and employees are assumed to be made as legally required.
No assumptions have been changed since the prior measurement date.
DETERMI NATI ON OF THE LONG-TERM EXPECTED RATE OF RETURN ON PLAN ASSETS
Investment Cateoorv Target Allocation Expected Long-Term Real Return
Core bonds 16.00% 0.58% per annum
Multi-sector 24.00% 1.08% per annum
U.S. large cap equity 39.00% 6.08% per annum
U.S. small cap equity 11.00% 6.83% per annum
Non-U.S. equity 10.00% 6.83% per annum
Total or weighted arithmetic average 100.00% 4.08% per annum
'
DISCLOSURES RELATED TO THE GENERAL EMPLOYEES ' PENSION PLAN (continued)
PENSION PLAN DESCRIPTION
Name of the pension plan:
Legal plan administrator:
Plan type:
Number of covered individuals:
Contribution requirement:
Pension plan reporting:
Description of the benefit terms
Employees covered:
Types of benefits offered:
Basic pension formula:
Early retirement pension:
Disability pension:
City of Palm Beach Gardens General Employees' Pension Plan
Board of Trustees of the City of City of Palm Beach Gardens General Employees' Pension Plan
Single-employer defined benefit pension plan
15 (11 inactive employees and beneficiaries currently receiving benefits; two inactive employees entitled
to but not yet receiving benefits; two active employees)
Employer contributions are actuarially determined; employees must contribute 6.00% of pensionable
earnings; contribution requirement may be amended by City ordinance, but employer contnoution
requirement is subject to State minimums.
The plan issues a stand-alone financial report each year, which contains information about the plan's
fiduciary net position. The plan's fiduciary net position has been determined on the same basis used by
the pension plan and is equal to the market value of assets calculated under the accrual basis of
accounting. This report is available to the public at the plan's administrative office: Retirement
Department, Rorida League of Cities, Inc., P. 0. Box 1757, Tallahassee, FL 32302, (800) 342-8112.
Full-time general employees of the City of Palm Beach Gardens who were hired prior to February 7, 1987
Retirement, disability, and pre-retirement death benefits
2.50% of average earnings x ser,;ice
Basic pension formula, reduced by tf1BD for each of the first 60 months by which the early retirement age
precedes age 62 and further reduced by 11360 for each of the next 24 months by which the early retirement
age precedes age 62
Basic pension formula, offset as necessary to preclude the total of worker's compensation, 50% of social
security disability benefit, and all City-provided disability benefits from exceeding final monthly salary
Pre-retirement death benefit: Basic pension formula beginning at the earliest retirement age (payable to the beneficiary of a vested
Normal retirement age:
Early retirement age:
Vesting requirement:
Form of payment:
Average earnings:
Cost-of-living adjustment:
Legal authority:
Changes:
participant for 10 years guaranteed; beneficiary may optionally receive an immediate actuarially
equivalent annuity or any of the optional forms of annuity available under the plan)
Return of accumulated employee contributions (payable to the beneficiary of all other participants)
Age62
Age 55 with at least 10 years of ser,;ice
25% vesting after five years of service; 40% vesting after six years of service: 55% vesting after seven
years of ser,;ice; 70% vesting after eight years of service; 85% vesting after nine years of service; 100%
vesting after 10 years of service
Actuarially equivalent single life annuity
10-yearcertain and life annuity
Actuarially equivalent 50%, 66M %, 75%, or 100% joint and contingent annuity
ActuariaJJy equivalent social security level income annuity
Actuarially equivalent single lump sum payment (only available at the discretion of the pension board if
the value of the participant's benefit is less than or equal to $5,000 or the monthly annuity is less than
$100)
Average of the highest three years of pensionable earnings out of the last five years
None provided
The plan was established effective December 20, 1982 pursuant to City ordinance and has been
amended numerous times since that date.
The benefit terms did not change from the prior measurement date.
\
DISCLOSURES RELATED TO THE GENE RA L EMPLO YEES' PENS ION PLAN (continued)
PROJECTION OF THE FIDUCIARY NET POSITION
Benefit Adm inistrative Investment
Date BOY Balance Contributions Payments Expenses Earnings EOY Balance
October 1, 2015 $2,205,007 $156,163 $240,519 $10,675 $175,749 $2,285,725
October 1, 2016 $2,285,725 $168,416 $249 ,245 $11,062 $156,839 $2 ,350,673
October 1, 2017 $2,350,673 $176,837 $243,564 $10,810 $161,879 $2 ,435,015
October 1, 2018 $2,435,015 $185,679 $294 ,788 $13,084 $166,247 $2,479,069
October 1, 2019 $2,479,069 $194,963 $287 ,860 $12.ne $169,899 $2,543,295
October 1, 2020 $2,543,295 $204,711 $296,138 $13,144 $174,433 $2,613,157
October 1, 2021 $2,613 ,157 $214,947 $288 ,016 $12,783 $179,967 $2,707 ,272
October 1, 2022 $2,707,272 $225,694 $279.303 $12,396 $187,238 $2.828,505
October 1, 2023 $2 ,828 ,505 $236 ,979 $270,062 $11,986 $196,445 $2 ,979.881
October 1, 2024 $2 ,979,881 $248,828 $260,317 $11,554 $207,799 $3,164 ,637
October 1, 2025 $3,164,637 $261,269 $250,146 $11,102 $221 ,525 $3,386,183
October 1, 2026 $3 ,386,183 $4,531 $238 ,617 $10 ,591 $228,614 $3 ,370 ,120
October 1, 2027 $3,370,120 $0 $227,522 $10,098 $227,732 $3,360.232
October 1, 2028 $3,360,232 $0 $207,624 $9,215 $227,755 $3,371 ,148
October 1, 2029 $3,371,148 $0 $194,573 $8,636 $228 ,988 $3,396,927
October 1, 2030 $3 ,396,927 $0 $179,793 $7,980 $231,324 $3 ,440,478
October 1, 2031 $3,440,478 $0 $370 ,953 $16 ,464 $227,503 $3,280,564
October 1, 2032 $3,280,564 $0 $357,526 $15,868 $216,792 $3,123,962
October 1, 2033 $3,123,962 $0 $344,424 $15,287 $206,300 $2,970.551
October 1, 2034 $2,970,551 $0 $331,858 $14,729 $196,013 $2.819.en
October 1, 2035 s2.s19,9n $0 $319,901 $14,198 $185,903 $2,671,781
October 1, 2036 $2,671,781 $0 $308 ,676 $13,700 $175,932 $2,525 ,337
October 1, 2037 $2,525 ,337 $0 $298,253 $13,237 $166,056 $2,379,903
October 1, 2038 $2,379,903 $0 $287,100 $12,742 $156,276 $2,236,337
October 1, 2039 $2 ,236,337 $0 $278 ,540 $12,362 $146,534 $2,091.969
October 1, 2040 $2,091,969 $0 $270,679 $12 ,014 $136,711 $1,945,987
October 1, 2041 $1,945,987 $0 $237,600 $10 ,545 $127,681 $1,825 ,523
October 1, 2042 $1,825,523 $0 $227,355 $10,091 $119,617 $1,707,694
October 1, 2043 $1,707,694 $0 $217,303 $9,645 $111,730 $1,592,476
October 1, 2044 $1,592,476 $0 $207,427 $9,206 $104,019 $1,479,862
October 1, 2045 $1,479,862 $0 $197,710 $8.ns $96,486 $1,369 ,863
October 1, 2046 $1,369,863 $0 $187 ,986 $8,343 $89,135 $1,262,669
October 1, 204 7 $1,262,669 $0 $178 ,354 $7,916 $81 ,978 s1 ,1ss.3n
October 1, 2048 s1 ,1s0.an $0 $168,764 $7,490 $75,022 $1,057,145
October 1, 2049 $1,057,145 $0 $159,230 $7 ,067 $68 ,278 $959,126
October 1, 2050 $959,126 so $149,563 $6,638 $61,764 $864 ,689
October 1, 2051 $864,689 $0 $139 ,508 $6,192 $55,515 sn4.504
October 1, 2052 sn4,504 $0 $130,114 $5.ns $49 ,540 $688 ,155
October 1, 2053 $688,155 $0 $120,671 $5,356 $43 ,835 5605,963
October 1, 2054 $605,963 $0 $111,064 $4,929 $38,426 $528 ,396
October 1, 2055 $528,396 $0 $101,288 $4,495 $33,348 $455,961
October 1, 2056 $455 .961 $0 $91,399 $4,057 $28,633 $389,138
October 1, 2057 $389,138 $0 $81,593 $3,621 $24 ,308 $328 ,232
October 1, 2058 $328,232 $0 $71,859 $3,189 $20,394 $273,578
October 1, 2059 $273,578 $0 $62,475 s2.n3 $16 ,905 $225 ,235
October 1, 2060 $225,235 $0 $53,578 $2,378 $13,841 $183,120
October 1, 2061 $183,120 so $45 ,310 $2,011 $11,190 $146.989
October 1, 2062 $146,989 $0 $37,681 $1,672 $8,935 $116,571
October 1. 2063 $116,571 so $30,894 $1,371 $7,050 $91,356
October 1, 2064 $91,356 $0 $24 ,989 $1 ,109 $5,497 $70,755
October 1, 2065 $70,755 $0 $19,954 $886 $4,236 $54,151
October 1, 2066 $54,151 $0 $15 ,683 $696 $3,227 $40,999
October 1, 2067 $40 ,999 $0 $12,199 $541 $2,432 $30,691
'
DISCLOSURES RELATED TO THE GENERAL EMPLOYEES' PENSION PLAN (continued)
PROJECTION OF THE FIDUCIARY NET POSITION (continuedl
Benefit Administrative Investment
Date BOY Balance Contributions Payments Expenses Earnings
October 1, 2068 $30,691 $0 $9,401 $417 $1,811
October 1, 2069 $22,684 $0 $7,190 $319 $1,330
October 1, 2070 $16,505 $0 $5,423 $241 $960
October 1, 2071 $11,801 $0 $4,026 $179 $681
Octobe r 1, 2072 $8,277 $0 $2,954 $131 $473
Oc tobe r 1, 2073 $5,665 $0 $2,129 $94 $320
Oc tobe r 1. 2074 $3,762 $0 $1,504 $67 $209
October 1, 2075 $2,400 $0 $1,041 $46 $131
October 1, 2076 $1,444 $0 $705 $31 $76
October 1, 2077 $784 $0 $467 $21 $38
October 1, 2078 $334 $0 $303 $13 $13
October 1, 2079 $31 $0 $0 $0 $2
NOTES: The fiduciary net position is projected to be sufficient to cover all future benefit payments when due.
The plan requires only a 7% average investment return per year to a void a crossover date.
The projection shown above does not reflect future new entrants into the pension plan.
EOYBalance
$22,684
$16,505
$11,801
$8,277
$5,665
$3,762
$2,400
$1,444
$784
$334
$31
$33
DISCLOSURES REQUIRED PURSUANT TO CHAPTER 2013-1 00 . FLORIDA STATUTES
(a) City/District
(b) Plan Name
(c) Plan Type
(d) Valuation Date
(e) Interest Rate:
(1) Discount Rate, net of investment fees
(2) Long-Term Expected Rate of Return, net of investment fees
Palm Beach Gardens
General Employees' Pension Plan
Defined Benefit
10/1/2016
7.00%
7.00%
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 knowled ge , the results are complete and accurate, and in my opinion, meet the requirements of Section
112.664(1), F.S., and Section 60T-1.0035 , FAC.
(ij Certification Statement:
(1) Signature
(2) Actuary's Name
(3) Enrollment Number
(4) Signature Date
(5) Cover letter attached (pdf)?
Section 112.664(1 )(a}, F.S.
(g) Total pension liabifity:
(1) Service cost
(2) Interest
(3) Benefit changes
(4) Difference between expected and actual experience
(5) Changes in assumptions
(6) Benefit payments
(7) Contribution refunds
(8) Net change in total pension liability
(9) Total pension liability -beginning of year
(10) Total pension liability-ending of year
(h) Plan fiduciary net position:
(1) Contributions -Employer
(2) Contributions -State
(3) Contributions -Member
(4) Net investment income
(5) Benefit payments
(6) Contribution refunds
(7) Administrative expenses
(8) Other
(9) Net change in plan fiduciary net position
(10) Plan fiduciary net position -beginning of year
(11) Plan fiduciary net position -ending of year
(i) Net pension liability/(asset) [(g)(10) minus (h)(11))
Section 112.664(1)/bl. F.S.
0) Total pension riability:
(1) Service cost
~ J, c:. __
Ch arles T. Carr
14-04927
2/18/2017
N
$28,353
$238,907
$0
($66,634)
$0
($240,519)
$0
($39,893)
$3,502,823
$3,462,930
($146,187)
$0
$9,976
$397,046
($240,519)
$0
($10,675)
$0
$9,641
$2,276,084
$2,285,725
$1,177,205
$48,590
(2) Interest
(3) Benefit changes
(4) Difference between expected and actual experience
(5) Changes in assumptions
(6) Benefit payments
(n Contribution refunds
(8) Net change in total pension liabmty
(9) Total pension liability -beginning of year
(10) Total pension liability· ending of year
(k) Plan· fiduciary net position :
(1) Contributions -Employer
(2) Contributions • State
(3) Contnbutions -Member
(4) Net investment income
(5) Benefit payments
(6) Contribution refunds
(7) Administrative expenses
(8) Other
(9) t'et change in plan fiduciary net position
(10) Plan fiduciary net position -beginning of year
(11) Plan fiduciary net position -ending of year
(I) Net pension liability/(asset) [(0(10) minus (k)(11)]
Section 112.664(1)(c), F.S . (on last valuation basis)
(m) Number of Years , and fractional parts of Years, for which the Market Value of Assets
are adequate to sustain expected retirement benefits
Section 112.664(1}(c}, F.S. (on Section 112.6§4(1)(a}, F.S. basis)
(n) Number of Years, and fractional parts of Years, for which the Market Value of Assets
are adequate to sustain expected retirement benefits
Section 112.664(1)(c), F.S. (on Section 112.664(1)(b), F.S. basis)
(o) Number of Years , and fractional parts of Years, for which the Market Value of Assets
are adequate to sustain expected retirement benefits
Section 112.664(1l(d), F.S. (on last valuation basis)
(p) Recommended Plan contributions in Annual Dollar Value
(q) Recommended Plan contributions as a Percentage of Valuation Payroll
Section 112.664(1)/d), F.S. (on Section 112.664(1 l(a), F.S. basis)
(r) Recommended Plan contnbutions in Annual Dollar Value
(s) Recommended Plan contributions as a Percentage of Valuation Payroll
Section 112.664(1)(d). F.S. {on Section 112.664(1)(b), F.S. basis)
(t) Recommended Plan contnbutions in Annual Dollar Value
(u) Recommended Plan contributions as a Percentage of Valuation Payroll
$210,365
$0
($82 ,524)
$0
($240,519)
$0
($64,088)
$4,277,502
$4,213 ,414
($146,187)
$0
$9,976
$397,046
($240,519)
$0
($10,675)
$0
$9,641
$2,276,084
$2 ,285 ,725
$1,927,689
12.51
12.53
10.68
$192,673
110.36%
$204,669
117.23%
$295,571
169.30%
ACTUARIAL VALUATION
As OF OCTOBER I, 2016
DETERMINES THE (OHTRIBUTIOH
foR THE 2016/17 r1sCAL YEAR
~-= SOUTHfRN =-= ACTUARIAL =--== SERVICES
TABLE OF CONTENTS
Discussion
Funding Results
Table I-A Minimum Required Contribution
Table 1-B Sensitivity Analysis
Table 1-C Gain and Loss Anal ys is
Table 1-D Present Value of Future Beneftts
Table 1-E Present Value of Accrued Benefits
Table 1-F Present Value of Vested Benefits
Table 1-G Entry Age Normal Accrued Liability
Accounting Results
GASS 67/68 Supplement as of September 30, 2016
Assets
Table II-A
Table 11-B
Table 11-C
Table 11-D
Table 11-E
Table 11-F
Data
Table Ill-A
Table 111-B
Table 111-C
Table 111-D
Table 111-E
Table 111-F
Table 111-G
Actuarial Value of Assets
Market Value of Assets
Investment Return
Asset Reconciliation
Historical Trust Fund Detail
Other Reconciliations
Summary of Participant Data
Data Reconciliation
Active Participant Data
Active Age-Service Distribution
Active Age-Service-Salary Table
Inactive Participant Data
Projected Benefit Payments
Methods & Assumptions
1
1-1
1-2
1-3
1-4
1-5
1-6
1-7
11-1
11-2
11-3
11-4
11-5
11-6
111-1
111-2
111-3
111-4
111-5
111-6
111-7
Table IV-A Summary of Actuarial Methods and Assumptions IV-1
Table IV-B Changes in Actuarial Methods and Assumptions IV-3
Plan Provisions
Table V-A Summary of Plan Provisions V-1
Table V-8 Summary of Plan Amendments V-5
--------------------
D1scuss10H
February 18, 2017
Introduction
This report presents the results of the October 1, 2016 actuarial valuation of the City of Palm Beach Gardens General
Employees' Pension Plan. The report is based on the participant data and asset information provided by the pension
plan administrator and, except for a cursory review for reasonableness including a comparison to the data provided for
the previous valuation, we have not attempted to verify the accuracy of this information.
The primary purpose of this report is to provide a summary of the funded status of the plan as of October 1, 2016 and
to determine the minimum required contribution under Chapter 112, Florida Statutes, for the 2016/17 plan year. In
addition, this report provides a projection of the long-term funding requirements of the plan, statistical information
concerning the assets held in the trust, statistical information concerning the participant population, and a summary of
any recent plan changes.
The liabilities and cost presented in this report are based on numerous assumptions concerning the cost of benefits to
be provided in the future, long-term investment returns, and the future demographic experience of the current
participants. Anyone referring to this report should remember that the cost developed herein is only an estimate of the
true cost of providing post-employment pension benefits. No one can predict with certainty whether the true cost will
be higher or lower than the cost presented in this report. The calculated cost is entirely dependent upon the
assumptions that are described in Table IV-A. If any of the assumptions is changed, then the cost shown in this report
will change accordingly. Likewise, if any of the assumptions is not completely realized, then the cost shown in this
report will change in the future.
Certain assumptions play a bigger role than others in determining the cost of the post-employment pension benefits. In
some cases, relatively small changes in a particular assumption can have a dramatic impact on the anticipated cost of
benefits. Although a thorough analysis of the impact of such changes is beyond the scope of this report, Table 1-8
illustrates the impact that alternative long-term investment returns would have on the normal cost rate.
Minimum Required Contribution
Table I-A shows the development of the minimum required contribution for the 2016/17 plan year. The minimum
required contribution is $182,198, which equates to 104.36% of covered payroll. The minimum required contribution
increased by $32 ,386 from the prior valuation .
The normal cost rate is 104.36%, which is 23.05% higher than the rate that was developed in the prior valuation.
Table 1-C provides a breakdown of the sources of change in the normal cost rate. Significantly , the rate increased by
0.25% of payroll due to investment losses, increased by 1.86% of payroll due to demographic experience, and
increased by another 20.94% of payroll due to the assumption change that is described below. Although the market
value of assets earned 8.15% during the 2015/16 plan year, the actuarial value of assets is based on a four-year ------------
PA6t1 ------
D1scuss10N
phase-in of the net investment appreciation. On this basis , the actuarial value of assets only earned 7.09% during the
2015/16 plan year. whereas a 7.25% annual investment return was required to maintain a stable contribution rate.
Chapter 112, Florida Statutes, sets forth the rules concerning the minimum requ ired contribution for public pension
plans within the state. Essentially, the City must contribute an amount equal to the annual normal cost of the plan plus
an adjustment as necessary to reflect interest on any delayed payment of the contribut ion beyond the va luation date.
On this basis, the City's 2016/17 minimum required contribution will be equal to $182,198.
Based on the current assets, participant data, and actuarial assumptions and methods that are used to value the plan,
the present-day value of the total long-term funding requirement is $3,859,318. As illustrated in Table I-A, current
assets are sufficient to cover $2,362,832 of this amount, the employer's 2016/17 expected contribut ion will cover
$182,198 of this amount, and future employee contributions are expected to cover $81,358 of this amount, leaving
$1,232,930 to be covered by future employer funding beyond the 2016/17 plan year. Again , demographic and
investment experience that differs from that assumed will either increase or decrease the future employer funding
requirement.
Advance Employer Contribution
The City has made contributions to the plan in excess of the minimum amount that was required to be contributed
pursuant to Chapter 112. In this report, the excess contributions are referred to as an "advance employer contribution ."
As of October 1, 2016, the advance employer contribution is $26,518, which is equal to the prior year advance
contribution of $30 , 143 less $3,625 that was applied to cover the shortfall between the actual City contribution and the
minimum required contribution for the 2015/16 fiscal year, as shown in Table 11-F.
The City may apply all or any portion of the advance employer contribut ion towards the minimum required contribution
for the 201.6/17 plan year or for any later plan year. The minimum required contribution for that plan year will be
reduced dollar-for-dollar by the amount of the advance employer contribution that is applied in this manner.
Alternatively, at any time, the City may apply all or any portion of the advance employer contribution as an extra
contribution in excess of the minimum required contribution. In this case , the immediate application of the entire
balance of the advance employer contribution as of October 1, 2016 would reduce the normal cost rate to 102.41 % of
payroll and would reduce the minimum required contribution for the 2016/17 plan year to $178,784.
Contents of the Report
Tabl es 1-0 through 1-G provide a detailed breakdown of various liability amounts by type of benefit and by participant
group. Tables II-A through 11-F provide information concerning the assets of the trust fund. Specifically, Table II-A
shows the development of the actuarial value of assets, which is based on a four-year phase-in of the net investment
appreciation in order to provide a more stable and predictable contribution rate for the employer. Tab les Ill-A through
111-G provide statistical information concerning the plan 's participant population. In particular, Table 111-G gives a 10-
year projection of the cash that is expected to be required from the trust fund in order to pay benefits to the current -----------------
PAGE2 ------
D1scuss 10H
group of participants. Finally, Tables IV-A through V-B provide a summary of the actuarial assumptions and methods
that are used to value the plan's benefits and of the relevant plan provisions as of October 1, 2016, as well as a
summary of the changes that have occurred since the previous valuation report was prepared.
Accumulated Employee Contributions
Note that an employee contribution history was only available since September 30, 2004. Therefore, this report does
not show the balance of accumulated employee contributions.
Assumption Change
Pursuant to the requirements of State law, the mortal ity basis has been changed from a 2007 projection of the RP-
2000 Mortality Table for annuitants to a full generational projection using Scale BB of the RP-2000 Combined Morta lity
Table. This change increased the minimum required contribution for the 2016/17 plan year by 20.94% of payroll .
Certification
This actuarial va luation was prepared 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 opin ion, the techniques and
assumptions used are reasonable and meet the requirements and intent of Chapter 112, Florida Statutes. There is no
benefit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities or current costs
have not been established or otherwise taken into account in the valuation. All known events or trends which may
require a material change in plan costs or required contribution rates have been taken into account in the valuation.
For the firm,
~ J. c,_
Charles T. Carr
Consulting Actuary
Southern Actuarial Services Company, Inc.
Enrolled Actuary No. 14-04927
The individual above is a member of the American Academy of Actuaries and meets the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
--------------
PAG[3 ------
~unding Results
Minimum Required Contribution Table I-A
. 00/o 20% 40% 60%
2016/17 Employer
Contribution
$182.,198
80% 100%
Future Employee
Funding
$81 ,358
For the 2016/17 Plan Vear
Present Value of Future Benefits $3,710,883
Present Value of Future Administrative Expenses $148,435
Actuarial Value of Assets ($2,362,832)
Present Value of Future Employee Contributions ______ .....,,($8---1'-13_58_,_)
Present Value of Future Normal Costs $1,415,128
Present Value of Future Payroll + $1,355,966 -----------Norm a I Cost Rate = 104.3631 %
Expected Payroll x $174,581 -------------
Normal Cost $182,198
Adjustment to Refl~ct Beginning-of-Year Employer Contribu~ion ________ $0_
Minimum Required Contribution for the 2016/17 Plan Year l._ ____ _.:..,$1_8__,2,'--19_8__.j
Expected Payroll for the 2016/17 Plan Year ______ +..;.$_17'_'4,:....5_81_
Minimum Required Contribution as a % of Payroll 104.36%
--------__.._ --
PAGE l-1 -------
----------.
iunding Results
Sensitiv i ty Ana lys is Table 1-B
Asset
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
PAGf l-2
Normal Cost Rate if
s Earn 2% Less Annually
Over Time
Current
Normal Cost
Rate Normal Cost Rate if Assets
Earn 2% More Annually
Over Time
The line above illustrates the sensitivity of the normal cost
rate to changes in the long-term investment return.
---------------------
Gain and Loss Analysis
PAG[l -3
Previous normal cost rate
Increase (decrease) due to investment gains and losses
Increase (decrease) due to demographic experience
Increase (decrease) due to plan amendments
Increase (decrease) due to actuarial assumption changes
Increase (decrease) due to actuarial method changes
Current normal cost rate
81.31%
0.25%
1.86%
0.00%
20.94%
0.00%
104.36%
funding Results
Table 1-C
--------------------........ .--
Present Val ue of Futu re Benefits
Activel 1t. Emolo'f.ed Particig_ants
Retirement benefits
Te rmination benefits
Disability benefits
Death benefits
Refund of employee contributions
Sub -total
Deferred Vested Particie.ants
Retirement benefits
Termination benefits
Disability benefits
Death benefits
Refund of employee contributions
Sub-total
Due a Refund of Contributions
Deferred Beneficiaries
Retired Participants
Service retirements
Disability retirements
Beneficiaries receiving
DROP partic ipants
Sub-total
Grand Total
Present Value of Future Payroll
Present Value of Future Employee Contribs.
. Present Value of Future Employer Contribs.
PAG[ I-~
Old Assumptions
w/o Amendment
$1,236,577
$0
$0
$0
$0
$1,236 ,Sn
$309,926
$0
$0
$0
$0
$309 ,926
$0
so
$1,463,356
$0
$427,949
$0
$1 ,891,305
S3 1437,808
$1,355,966
$81,358
$1 ,131 ,130
funding Results
Old Assumptions
w/ Amendment
$1,236,577
$0
$0
$0
$0
$1,236 ,577
$309,926
$0
$0
$0
$0
$309 ,926
$0
$0
$1,463,356
$0
$427,949
$0
$1,891,305
S3 1437 1808
$1,355,966
$81,358
$1 ,131,130
Table 1-0
New Assumptions
w/ Amendment
$1,321,431
$0
$0
$0
$0
$1,321,431
$325,282
$0
$0
$0
$0
$325 ,282
$0
$0
$1,599,192
$0
$464,978
$0
$2 ,064,170
S3,Zl0,883
$1,355,966
$81,358
$1,415,128
------------------
~unding Results
Present Value of Accrued Benefits Table 1-E
Old Assumptions Old Ass umptions New Assumptions
w/o Amendment w/ Amendment w/ Amendment
Active/'{_ EmpJo'f.ed Particieants
Retirement benefits $664 ,932 $664,932 $709,536
Termination benefits $0 $0 $0
Disability benefits $0 $0 $0
Death benefits $0 $0 $.0
Refund of employee contributions $0 $0 $0
Sub-total $664,932 $664,932 $709,536
Deferred Vested Particieants
Retirement benefits $309 ,926 $309,926 $325,282
Termination benefits $0 $0 $0
Disability benefits $0 $0 $0
Death benefits $0 $0 $0
Refund of employee contributions $0 $0 $0
Sub-total $309,926 $309,926 $325,282
Due a Refund of Contributions $0 $0 $0
Deferred Beneficiaries $0 $0 $0
Retired Participants
Service retirements $1,463,356 $1,463,356 $1,599,192
Disability retirements $0 $0 $0
Beneficiaries receiving $427,949 $427,949 $464,978
DROP participants $0 $0 $0
Sub-total $1,891,305 $1,891,305 $2,064,170
Grand Total $2,866.163 i2,8§§.163 ia.Q~§.~!l§
Funded Percentage 79.75% 79.75% 73.76%
----------------------
funding Results
Present Value of Vested Benefits Table 1-F
Old Assumptions Old Assumptions New Assumptions
w/o Amendment w/ Amendment w/ Amendment
Activel'f. Eme.lo'i.ed Particig_ants
Retirement benefits $664,932 $664,932 $709,536
Termination benefits $0 $0 $0
Disability benefits $0 $0 $0
Death benefits $0 $0 $0
Refund of employee contributions $0 $0 $0
Sub-total $664,932 $664,932 $709 ,536
Deferred Vested Particig_ants
Retirement benefits $309,926 $309,926 $325,282
Termination benefits $0 $0 $0
Disability benefits $0 $0 $0
Death benefits $0 $0 $0
Refund of employee contribution·s $0 $0 $0
Sub-total $309,926 $309,926 $325,282
Due a Refund of Contributions $0 so $0
Deferred Beneficiaries $0 $0 $0
Retired Participants
Seivice retirements $1,463,356 $1,463,356 $1,599,192
Disability retirements $0 $0 $0
Beneficiaries receiving $427,949 $427,949 $464,978
DROP participants $0 $0 $0
Sub-total $1,891,305 $1,891,305 $2,064,170
Grand Total S2,866,163 S2 1866 1163 S3,098 1988
------------
PAGf 1-6 ------
iunding Results
Entry Age Normal Accrued Liability Table 1-G
Old Assumptions Old Assumptions New Assumptions
w/o Amendment w/ Amendment w/ Amendment
Actively_ EmQIO'f.ed ParticiQ.ants
Retirement benefits $1,037,044 $1,037,044 $1,107,795
Termination benefits $0 $0 $0
Disability benefits $0 $0 $0
Death benefits $0 $0 $0
Refund of employee contributions $0 $0 $0
Sub-total $1,037,044 $1,037,044 $1,107,795
Deferred Vested Particieants
Retirement benefits $309,926 $309,926 $325,282
Termination benefits $0 $0 $0
Disability benefits $0 $0 $0
Death benefits $0 $0 $0
Refund of employee contributions $0 $0 $0
Sub-total $309,926 $309,926 $325,282
Due a Refund of Contributions $0 $0 $0
Deferred Beneficiaries $0 so $0
Retired ParticiQ.ants
Service retirements $1,463,356 $1,463,356 $1,599,192
Disability retirements $0 $0 $0
Beneficiaries receiving $427,949 $427,949 $464,978
DROP participants $0 $0 $0
Sub-total $1,891,305 $1,891,305 $2,064,170
Grand Total $3,238.275 S3,23§,2Z5 i3.497,247
------------
PAGEl -7 ---------
Assets
Actuarial Value of Assets Tab le II-A
Market Value Rate of Return
For the 2012/13 plan year 11.82%
For the 2013/14 plan year 8.68%
Average return for the preceding four years
7.09%
For the 2014/15 plan year 0.08%
For the 2015/16 plan year 8.15%
PAGf ll -1
Actuarial Value of Assets as of October 1, 2015
Plus contributions for the 2015/16 plan year
Minus benefit payments and administrative
expenses for the 2015/16 plan year
Minus advance employer contribution
Adjustment for interest at the average rate shown above,
but restricted to an amount that keeps the actuarial value
of assets within an 80%-120% corridor of the market value
Actuarial Value of Assets as of October 1, 2016
Historical Actuar ial Value of Assets
October 1, 2007 $2,761 , 142
October 1, 2008 $2,823,246
October 1, 2009 $2,501,664
October 1, 2010 $2,288,593
October 1, 2011 $2,081,483
October 1, 2012 $2,059,833
October 1, 2013 $2,117,422
October 1, 2014 $2,197,889
October 1, 2015 $2,294,727
October 1, 2016 $2,362 ,832
$2,294,727
$156,163
{$251 ,194)
$3,6 25
$159,511
$2 ,362 ,83 2
---------------------
Market Value of Assets
Market Value of Assets
Cash
Bond pooled fund
Core pooled fund
Growth stock pooled fund
Small cap stock pooled fund
Large cap value stock pooled fund
Russell 1000 index fund
International stock pooled fund
As of October 1, 2016
$2,285,725
$18,286
$356,573
$544,003
$173,715
$258,287
$187,429
$523,43 1
$224,001
Historical Market Value of Assets
October 1, 2007 $3,089,2 45
October 1, 2008 $2,422,411
October 1, 2009 $2,084,720
October 1, 2010 $2,027,219
October 1, 2011 $1,914,292
October1 ,2012 $2,103,061
October 1, 2013 $2,209,462
October 1, 2014 $2,276,084
October 1, 2015 $2,205,007
Assets
Table 11-B
A
-If
I •
I
I •
I •
i
!I
11
11
October 1, 2016 $2,285,725 .....,.1 _--:._°'."""" ----------
PAGf ll-2 ---·---
I L ___
Assets
Investment Re turn Table 11-C
20% r-
15%
10%
5%
0% -I •
-5%
-10%
·15%
·20% -----
2006/07 2007/08 2008/09 2009/10 2010/1 1 2011/12 2012/13 2013/1 4 2014/15 2015/16
Annual Investment Returns
Ma rket Actuarial
Plan Value Value
Year Return Return
2006/07 N/A N/A
2007/08 -15.35% 10.20%
2008/09 -4.11% -2.90%
2009/10 8.22% 0.28%
2010/11 1.65% -2.79%
2011/12 17.37% 5.49%
2012/13 11.82% 9.63 %
2013/14 8.68% 9.74%
2014/15 0.08% 9.31%
2015/16 8.15% 7.09%
9yr. Avg. 3.63% 4.99%
PAGf ll -3
Assumed
Return
N/A
8.00%
8.00%
7.25%
7.25%
7.25%
7.25%
7.25%
7.25%
7.25%
7.42%
• Market Value Return
• Actuarial Value Return
•Assumed Return
------------------
Asset Reconciliation
As of October 1, 2015
Increases Due To:
Employer Contributions
Employee Contributions
Service Purchase Contributions
Total Contributions
Interest and Dividends
Realized Gains (Losses)
Unrealized Gains (Losses)
Total Investment Income
Other Income
Total Income
Decreases Due To:
Monthly Benefit Payments
Refund of Employee Contributions
Total Benefit Payments
Investment Expenses
Administrative Expenses
Advance Employer Contribution
Total Expenses
As of October 1, 2016
Assets
Table 11-D
Market Value Actuarial Value
$2,205,007 $2,294,727
$146,187 $146,187
$9,976 $9,976
$0 $0
$156,163 $156,163
$0
$0
$175,749
$175,749 $159,511
$0
$331,912 $315,674
($240,519) ($240,519)
$0 $0
($240,519) ($240,519)
$0
($10,675) ($10,675)
$3,625
($251,194) ($247,569)
$2,285,725 $2,362,832
------------------
Assets
Historical Trust Fund Detail Table 11-E
Income
Plan
Vear
2006/07
2007/08
2008109
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015116
Exe.enses
Plan
Year
2006/07
2007/08
2008/09
2009/10
2010111
2011/12
.._2012/13
2013/14
2014/15
2015/16
PAGf ll -5
Service Realized Unrealized
Employer Employee Purchase Interest/ Gains/ Gains/ Other
Contribs. Contribs . Contribs. Dividends Losses Losses Income
NIA NIA NIA NIA NIA NIA NIA
$91 ,488 $8 ,996 $0 $69 ,277 -$26,382 -$475 ,050 $419
$60,503 $8,970 $0 $56,266 ·$272,886 $133,400 $0
$77,753 $9,658 $0 $0 $0 $162,321 $0
$125,273 $10,223 $0 $0 $0 $32,337 $0
$130,810 $9,713 $0 $0 $0 $320,989 $0
$120,572 $9,658 so $0 $0 $240,658 $0
$120,572 $9,540 $0 $0 $0 $186,524 $0
$172,758 $10,080 $0 $0 $0 $1 ,788 $0
$146,187 $9,976 $0 $0 $0 $175,749 $0
Other Actuarial Adjustments
Monthly Advance
Benefit Contrib. Admin. Invest. Employer
Pa~ments Refunds Expenses Expenses Contribs. ·
N/A NIA N/A NIA N/A
$296.477 $0 $12,780 $26 ,325 $0
$293,670 $0 $18,973 $11,301 $0
$293,361 $0 $13,872 $0 $0
$269,627 $0 $11 ,133 $0 $0
$262,249 $0 $10,494 $0 $0
$254,313 $0 $10,174 $0 $0
$244,528 $0 $5,486 $0 $0
$244,528 $0 $11,175 $0 $30,143
$240 ,519 $0 $10,675 $0 ·$3 ,625
Note: Information was not available to separate the investment expenses from the investment
income nor to separate the investment income by source after September 30, 2009.
-------------------
-
Assets
Other Reconciliations Table 11-F
Advance Employer Contribution
Advance Employer Contribution as of October 1, 2015 $30,143
Additional Employer Contribution $146,187
Minimum Required Contribution ___ ... ($ __ 149~18_12 ..... }
Net Increase in Advance Employer Contribution ($3,625)
Advance Employer Contribution as of October 1, 2016 $26,518 ========
------------
PAG[ 11-6 ---------
Summary of Participant Data
.. ,
""'-......___..-
Participant Distribution by Status
Data
Table Il l-A
As of October 1, 2016
Actively Employed Participants + Active Participants 2
DROP Participants 0
Inactive Participants + Deferred Vested Participants 2
4 Due a Refund of Contributions 0
Def erred Beneficia ries 0
Participants Receiving a Benefit
Service Re tirements
Disability Retirements + Beneficiaries Receiving
Total Participants
8
0
2
14
Number of Participants Included in Prior Valuations
Active DROP Inactive Retired Total
October 1 , 2007 2 0 3 13 18
October 1, 2008 2 0 3 13 18
October 1, 2009 2 0 3 13 18
October 1, 201 O N/A N/A NIA NIA N/A
October 1, 2011 2 0 2 13 17
October 1, 2012 2 0 2 13 17
October 1 , 2013 NIA N/A N/A NIA N/A
October 1, 2014 2 0 2 11 15
October 1 , 2015 2 0 2 11 15
October 1, 2016 2 0 2 10 14
------------
PAGt 111 -1 ------
Data
Data Reconciliation Table 111-B
Deferred Due a Def. Service Disabled Benef.
Active DROP Vested Refund Benet. Retiree Retiree Rec'v. Total
October 1. 2015 2 0 2 4,. 0 0 8 2 15 ~ ~
Change in Status
Re-employed
Terminated
Revred
Particig_ation Ended
Transferred Out
Cashed Out
Died (1) (1)
Particieation Began
Newly Hired
Transferred In
New Beneficiary
Other Adjustment
October 1, 2016 2 0 2 0 0 8 0 2 14
--------......... ._ ---
PAGE 111-2 -------
Act ive Part ici pan t Data
Gender Mix
•Male
•Female
Data
Table 111-C
As of October 1. 2016
Average Age
Average Service
Total Annualized Compensation for the Prior Year
Total Expected Compensation for the Current Year
Average Increase in Compensation for the Prior Year
Expected Increase in Compensation for the Current Year
Actual vs. Expected Salary Increases
53.0 years
24.0 years
$166,268
$174,581
0.14%
5.00%
Act ive Partici~ant Statistics From Prior Valuations
Average Average
Expe cted Actual
Average Average Average Salary Salary
Age Service Salary Increase Increase
October 1, 2007 43.8 15.0 $65 ,397 6.50% 2.50%
October 1, 2008 45.7 16.3 $74,970 6.50% 14.60%
October 1, 2009 45.5 17.0 $74,970 6.50% 0.00%
October 1, 2010 46.5 18.0 $83,781 5.00% 12.51%
October 1, 2011 47.5 19.0 $85,189 5.00% 1.57%
October 1, 2012 48.5 20.0 $80,939 5.00% -5.54%
October 1, 2013 49.5 21.0 $80,600 5.00% -0.36%
October 1, 2014 51 .0 22.0 $79,4 98 5.00% -1.11%
October 1, 2015 52.0 23.0 $84 ,003 5.00% 5.69%
October 1, 2016 53.0 24.0 $83,134 5.00% 0.14%
-------------------
Active Age-Service Distribution
-------..
--------- ---'s l~... --... -... .. Under2 -. _. ~
49
..,
2Sto29 ) ~
30to 34
---
-.. .. ..
-,, --• --.. .... -...
...... -...
. -
Data
Table 111-D
-"':-,
40&up
35 to 39
30to 34
2Sto 29
3Sto39 l-, 419
40to44 -..., ~
45to49 "-.., _.
<;Oto54 ' • --,..-< 20to 24
Age 55 to 59 "''°' •
60to 64 ·, ,,
65& up '
PAGE Ill -~
15 to 19
,·
lto4
Underl
lOto 14
5to9
Eligible to retire
A May be eligible to retire
A Not eligible to retire
Years of Service
-------------------
Data
Active Age-Service-Salary Table Table 111-E
Attained Coml!leted Years of Service
Age Under1 1 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 & up Total
Under 25 0 0 0 0 0 0 0 0 0 0 0
Avg.Pay 0 0 0 0 0 0 0 0 0 0 0
25 to 29 0 0 0 0 0 0 0 0 0 0 0
Avg.Pay 0 0 0 0 0 0 0 0 0 0 0
30 to 34 0 0 0 0 0 0 0 0 0 0 0
Avg.Pay 0 0 0 0 0 0 0 0 0 0 0
35 to 39 0 0 0 0 0 0 0 0 0 0 0
Avg.Pay 0 0 0 0 0 0 0 0 0 0 0
40 to 44 0 0 0 0 0 0 0 0 0 0 0
Avg .Pay 0 0 0 0 0 0 0 0 0 0 0
45 to 49 0 0 0 0 0 1 0 0 0 0 1
Avg.Pay 0 0 0 0 0 91,767 0 0 0 0 91,767
50 to 54 0 0 0 0 0 0 0 0 0 0 0
Avg.Pay 0 0 0 0 0 0 0 0 0 0 0
55 to 59 0 0 0 0 0 0 0 0 0 0 0
Avg.Pay 0 0 0 0 0 0 0 0 0 0 0
60 to 64 0 0 0 0 0 0 1 0 0 0 1
Avg .Pay 0 0 0 0 0 0 74,501 0 0 0 74,501
65 & up 0 0 0 0 0 0 0 0 0 0 0
Avg.Pay 0 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 1 1 0 0 0 2
Avg.Pay 0 0 0 0 0 91,767 74,501 0 0 0 83,134
-------------------
Inactive Participant Data
Under25
25-29
30-34
35-39
40-44
45-49
0
50
51
52
53 I
54
55
56
57
58
59
60
1
61 ........................ ... 62 -........ ___ _
63 '
64 .... _____ _
2 3
65 ---------------------
66 ~--.... --...,i
67
68
69
70 -------
71 ~,
74
0ver14 I
Age at Retirement
Average Monthly Benefit
PAGE 111 -6
Service Retirements
Disability Retirements
Beneficiaries Receiving
DROP Participants
Deferred Veste d Participants
Def erred Beneficiaries
$1,908.09
Not applicable
$2,269.91
Not applicable
$1,261.00
Not applicable
Data
Table 111-F
4
• Service Retirements .
• Disability Retirements
• DROP Participants
---------------------
• I
i
I
Projected Benefit Payments
$350,000 T
I
$300,000
$250,000 -l
$200,000
$150,000 ·
$100,000
$50,000 -
$0 -
PAGE 111-7
Actual
For the period October 1, 2015 through September 30, 2016
Proiected
For the period October 1, 2016 through September 30, 2017
For the period October 1, 2017 through September 30, 2018
For the per iod October 1, 2018 through September 30, 2019
For the period October 1, 2019 through September 30, 2020
For the period October 1, 2020 through September 30, 2021
For the period October 1, 2021 thro ugh Se ptember 30, 2022
For the period October 1, 2022 through September 30, 2023
For the period October 1, 2023 through September 30, 2024
For the pe riod October 1, 2024 through September 30, 2025
For the period October 1, 2025 through September 30, 2026
Data
Table 111 -G
----------------
$240,519
$248,171
$243,823
$297,725
$292,411
$302,427
$296,147
$289,380
$282,164
$274,523
$266,517
------------------
METHODS f, AssuHPTIOHS
Summary of Actuarial Methods and Assumptions Table IV-A
NOTE: The following assumptions and methods have been selected and approved by the Board of Trustees based in
part on the advice of the plan's enrolled actuary in accordance with the authority granted to the Board under
the pension ordinances and State law.
1. Actuarial Cost Method
Aggregate cost method. Under this actuarial cost method, a funding cost is developed for the plan as a level
percentage of payroll. The level funding percentage is calculated as the excess of the total future benefit liability
over accumulated assets and future employee contributions, with this excess spread over the expected future
payroll for current active participants. The normal cost is equal to the level funding percentage multiplied by the
expected payroll for the year immediately following the valuation date. The actuarial accrued liability is equal to
the accumulated assets. Therefore, under the aggregate cost method, no unfunded accrued liability is
developed.
2. Asset Method
The actuarial value of assets is equal to the market value of assets, adjusted to reflect a four-year phase-in of
the net investment appreciation.
3. Interest (or Discount) Rate
7.25% per annum
4. Salary Increases
Plan compensation is assumed to increase at the rate of 5.00% per annum, unless actual plan compensation is
known for a prior plan year. In addition, the otherwise determined plan compensation during the final year of
employment has been loaded by 20% to account for non-regular compensation .
5. Decrements
• Pre-retirement mortality:
• Post-retirement mortality:
• Disability:
• Termination:
• Retirement:
PAGE IV -1
Sex-distinct rates set forth in the RP-2000 Combined Mortality Table, with full
generational improvements in mortality using Scale BB
Sex-distinct rates set forth in the RP-2000 Combined Mortality Table, with full
generational improvements in mortality using Scale BB
None is assumed.
None is assumed.
Retirement is assumed to occur at normal retirement age.
--------------------
METHODS{, AssuMPTIONS
Summary of Actua ri al Methods and Assumptions Table IV-A
(continue d)
6. Form of Payment
Future retirees have been assumed to select the 10-year certain and life annuity.
7. Expenses
The tota l projected benefit liability has been loaded by 4.00% to account for anticipated administrative expenses.
In addition, the interest rate set forth in item 3. above is assumed to be net of investment expenses and
commissions.
--------
PA GflV -2 ----
METIIODS fr ASSUMPTIONS
Changes in Actuarial Methods and Assumptions Table IV-8
Since the completion of the previous valuation , the mortality basis was changed from a 2007 projection of the RP-2000
Mortality Table for annu itants to a full generational projection using Scale BB of the RP-2000 Combined Mortality Table
as required by State law.
--------------
PAGE IV -3 ------
PLAN PROVISIONS
Summa ry of Plan Prov isions Table V-A
1. Benefit Formula
2.50% of average monthly earnings multiplied by credited service
2. Service Retirement
Normal retirement: Age62
Early retirement: Age 55 with at least 10 years of credited service
Note: In the case of early retirement, the participanrs be nefit is reduced by 111so for each of the first 60 months
and by t/360 for each of the next 24 months by which the participan t's early re tirement age precedes his normal
retiremen t age.
3. Disability Retirement
Participant must become totally and permanently disabled prior to his te rmination of employment as determined
by the pension board.
The disability benefit is a monthly 10-year certain and life annuity equal to the participant's monthly accrued
benefit, but offset as necessary to preclude the total of the participant's worker's compensation, 50% of the
participant's social security disability benefit, and any other City-provided disability compensation from exceeding
his final monthly salary excluding overtime. For this purpose, the amount of any lump sum worker's
compensation payment is converted to an equivalent monthly benefit payable for 10 years certain by dividing the
lump sum amount by 83.9692.
A disabled participant may elect the single life annuity or a joint and contingent annuity in lieu of the 10-year
certain and life form of payment. Regardless of the form of payment, benefits cease upon the participant's
recovery from his disability prior to his normal retirement date.
4. Deferred Vested Retirement
A vested participant who terminates employment before becoming eligible for retirement receives a deferred
vested retirement benefit equal to the vested portion of his accrued monthly benefit payable at the participant's
early or normal retirement age. If the benefit is payable prior to normal retirement age, then the benefit is
reduced by 1'1s for each of the first 60 months and by 1'3o for each of the next 24 months by which the
participant's early retiremen t age precedes his normal retirement age.
A non-vested participant who terminates employment receives his accumulated contributions.
--------------------
PLAN PROVISIONS
Summary of Plan Provisions Table V-A
{ continued)
5. Vesting
A participant becomes 100% vested upon the attainment of 10 years of credited service. Alternatively, a
participant becomes partially vested upon the attainment of five years of credited service in accordance with the
following table:
Years of Credited Service
Less than five
At least five, but less than six
At least six, but less than seven
At least seven, but less than eight
At least eight, but less than nine
At least nine, but less than 1 O
At least 10
6. Pre-Retirement Death Benefit
Vested Percentage
0%
25%
40%
55%
70%
85%
100%
If a vested participant dies prior to retirement, the participant's beneficiary receives a 10-year certain annuity
equal to the participant's monthly accrued benefit, payable beginning at the participant's early or normal
retirement age. Alternatively, the benefic iary may elect to receive an actuarially equivalent immediate 10-year
certain annuity or any one of the optional forms of payment that would otherwise be available to the participant.
The pension board may elect to pay the pre-retirement death benefit as a single lump sum if the monthly benefit
is less than $100.00 or the lump sum value is $5,000.00 or less.
If a non-vested participant dies prior to retirement, the participant's beneficiary receives the participant's
accumulated contributions.
7. Form of Payment
Actuarially increased single life annuity (optional);
10-year certain and life annuity (normal form of payment);
Actuarially reduced 50% joint and contingent annuity (optiona!J-,
Actuarially reduced 66%% joint and contingent annuity (optional);
Actuarially reduced 75% joint and contingent annuity (optional); --------------------
I
• !
PLAN PROVISIONS
Su mmary of Plan Prov isions Table V-A
(continued)
Actuarially reduced 100% joint and contingent annuity (optional);
Actuarially adjusted social security level-income annuity (optional); or
Actuarially equivalent single lump sum distribution (only available at the discretion of the pension board if the
single sum value of the participant's benefit is less than or equal to $5,000.00 or the monthly annuity is fess than
$100.00)
(Note: All forms of payment guarantee at least the return of the participant's accumulated contributions.
Furthermore, a participant may change his joint ann uitant up to two times after retirement subject to an
actuarially equivalent adjustment provided that the participant and his previous joint annuitant were married at
the time of retirement and were subsequently divorced and if the previous joint annuitant is still living at the time
of the change.)
8. Average Monthly Earnings
Average monthly earnings during the highest three consecutive years out of the last five years of compe nsation
immediately preceding the determination or career average earnings if hi gher. Earnin gs inclu de total cash
remuneration for services rendered. Earnings cannot exceed the maxim um amount allo wed under IRC section
401 (a)(17).
9. Credited Service
The elapsed time from the participant's date of hire until his date of termination, retirement, or death. For
purposes of calculating the amount of a participant's benefit, credited service excludes periods during which the
participant does not make the required employee contribution.
10. Employee Contribution
Employees must contribute 6.00% of earnings. Employee contributions (other than those employee
contributions which are used to purchase cred ited service) are accumulated with interest at the rate of 6.00% per
annum.
11. City Contribution
The City is required to make periodic contributions at least on a quarterly basis as determined under
Chapter 112, Florida Stat utes.
--------------
PAGf V-3 ----
PLAN PROVISIONS
Summary of Plan Provisions Table V-A
{continued)
12. Participant Requirement
All regular full-time genera l employees of the City of Palm Beach Gardens who were hired prior to February 7,
1997 became a participant in the plan as of their date of hire. No emp loyees hired after February 6, 1997 are
eligible to participate.
13. Actuarial Equivalence
Based on 8.00% interest per annum and the 1983 Group Annuity Mortality Table, blended 50%/50% for males
and females
14. Plan Effective Date
The plan was originally effective on December 20, 1982.
--------------------
-----------------------------
PLAN PROVISIONS
Summary of Plan Amendments Table V-8
No significant plan amendments were adopted since the completion of the previous valuation.
--------------------
DISCLOSURES REQUIRED PURSUANT TO CHAPTER 2013-100. FLORIDA STATUTES
(a) City/District
(b) Plan Name
(c) Plan Type
(d) Valuation Date
(e) Interest Rate :
(1) Discount Rate, net of investment fees
(2) Long-Term Expected Rate of Return, net of investment fees
Palm Beach Gardens
General Employees' Pension Plan
Defined Benefit
10/1/2016
7.00%
7.00%
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 ), F.S., and Section 60T-1.0035, F.A.C.
(f) Certification Statement:
(1) Signature
(2) Actuary's Name
(3) Enrollment Number
(4) Signature Date
(5) Cover letter attached (pdf)?
Section 112.664(1l{a), F.S.
(g) Total pension liabirrty:
(1) Service cost
(2) Interest
(3) Benefit changes
(4) Difference between expected and actual experience
(5) Changes in assumptions
(6) Benefit payments
(7) Contribution refunds
(8) Net change in total pension liability
(9) Total pension liability -beginning of year
(10) Total pension liability -ending of year
(h) Plan fiduciary net position :
(1) Contributions -Employer
(2) Contributions -State
(3) Contributions -Member
(4) Net investment income
(5) Benefit payments
(6) Contribution refunds
(7) Administrative expenses
(8) Other
(9) Net change in plan fiduciary net position
{10) Plan fiduciary net position -beginning of year
(11) Plan fiduciary net position -ending of year
(i) Net pension liability/(asset) [(g)(10) minus (h)(11)]
Section 112.664(1 }{bl. F.S.
G) Total pension liability:
(1) Service cost
~../. c_
Charles T. Carr
14-04927
2/18/2017
N
$28,353
$238,907
so
($66,634)
so
($240,519)
$0
($39,893)
$3,502,823
$3,462,930
($146,187)
$0
$9,976
$397,046
($240,519)
$0
($10,675)
$0
$9,641
$2 ,276,084
$2,285,725
$1 ,177,205
$48,590
(2) Interest
(3) Benefit changes
(4) Difference between expected and actual experience
(5) Changes in assumptions
(6) Benefit payments
(7) Contribution refunds
(8) Net change in total pension liability
(9) Total pension liabifity -beginning of year
( 1 O) Total pension liability-ending of year
(k} Plan fiduciary net position:
(1) Contributions -Employer
(2) Contributions -State
(3) Contributions -Member
(4) Net investment income
(5) Benefit payments
(6) Contribution refunds
(7) Administrative expenses
(8) Other
(9) Net change in plan fiduciary net position
(10) Plan fiduciary net position -beginning of year
(1 1) Plan fiduciary net position -ending of year
(I} Net pension liability/(asset} [{!)(10} minus (k}(11))
Section 112.664(1 ){c}, F.S. (on last valuation basis)
(m} Number of Years, and fractional parts of Years. for which the Market Value of Assets
are adequate to sustain expected retirement benefits
Section 112.664(1)(c), F.S. (on Section 112.664(1}/a), F.S. basis)
(n) Number of Years, and fractional parts of Years. for which the Market Value of Assets
are adequate to sustain expected retirement benefits
Section 112.664/1)/c}, F.S. (on Section 112.66411}(b}, F.S. basis)
(o} Number of Years, and fractional parts of Years, for which the Market Value of Assets
are adequate to sustain expected retirement benefits
Section 112.664(1 lid), F.S. (on last valuation basis)
(p) Recommended Plan contributions in Annual Dollar Value
(q) Recommended Plan contributions as a Percentage of Valuation Payroll
Section 112.664{1}(d). F.S. (on Section 112.664{1 l(al, F.S. basis)
(r) Recommended Plan contnbutions in Annual Dollar Value
(s) Recommended Plan contributions as a Percentage of Valuation Payroll
Section 112.664(1)(dl. F.S. (on Section 112.664(1){b). F.S. basis)
(t) Recommended Plan contributions in Annual Dollar Value
(u} Recommended Plan contributions as a Percentage of Valuat ion Payroll
$210 ,365
$0
($82,524)
$0
($240 ,519}
$0
($64 ,088}
$4,277,502
$4 ,213,414
($146,187)
$0
$9,976
$397,046
($240,519}
$0
($10,675}
$0
$9,641
$2,276,084
$2 ,285,725
$1,927,689
12.51
12.53
10.68
$192,673
110.36%
$204,669
117.23%
$295,571
169.30%