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HomeMy WebLinkAboutAgenda Police Pension 091517 Agenda City of Palm Beach Gardens Police Officers’ Pension Fund MEETING OF SEPTEMBER 15, 2017 LOCATION: City Council Chambers’ 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 1 PM 1. Call Meeting To Order 2. Roll Call: • Jay Spencer, Chairman • Brad Seidensticker, Secretary • Allan Owens, Trustee • Marc Glass, Trustee • Greg Mull, Trustee 3. Custodian Report – Salem Trust Company (Karen Russo) • 6/30/2017 Service Report 4. Investment Consultant Report – AndCo Consulting (John McCann) • American Realty Fiduciary Notification 5. Attorney Report – KKJ&L (Bonni Jensen) • Memo: 2017 Legislative Updates • Memo: Disabled Public Safety Ad Valorem Tax Exemption • 2016 State Money Update • Updated Summary Plan Description 6. Administrator Report – Resource Centers (Audrey Ross) • Commercial Insurance Renwal Ratification • Fiduciary Liability Insurance Renewal Quote • Memo: Financial Statement Fee Increase 7. Minutes: • 5/31/2017 Regular Meeting 8. Disbursements 9. Benefit Approvals 10. Financial Statements 11. Other Business • GRS - Updated Share Plan Options with Projections • GRS – Chapter 112.664, Florida Statutes Compliance Report (9/30/2016) 12. Public Comments 13. Adjourn Next Meeting Date: To be scheduled 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 September 15, 2017 APPLICATION TO ENTER THE DROP TIMOTHY LAWRENCE DATE OF BIRTH 03/22/1970 DATE OF HIRE 01/10/1997 DROP ENTRY DATE 02/24/2017 FORM OF BENEFIT 100% J&S MONTHLY BENEFIT AMOUNT $3,937.30 SUPPLEMENTAL BENEFIT $ 250.00 _________________________ APPLICATIONS TO EXIT THE DROP AVRHAM TAWIL DATE OF BIRTH 01/12/1972 DATE OF HIRE 06/11/1992 DROP ENTRY DATE 06/11/2012 DATE OF TERMINATION 06/28/2017 FORM OF BENEFIT LIFE ANNUITY MONTHLY BENEFIT AMOUNT $4,929.46 SUPPLEMENTAL BENEFIT $ 250.00 _________________________ ELEANORA LOVEJOY DATE OF BIRTH 12/28/1959 DATE OF HIRE 01/15/1994 DROP ENTRY DATE 07/10/2012 DATE OF TERMINATION 07/31/2017 FORM OF BENEFIT 50% J&S MONTHLY BENEFIT AMOUNT $4,636.90 SUPPLEMENTAL BENEFIT $ 225.00 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (DUE TO RETIREMENT) AVRHAM TAWIL DATE OF RETIREMENT 06/28/2017 DATE OF BIRTH 01/12/1972 TYPE OF DISTRIBUTION MONTHLY-CASH TOTAL GROSS DISTRIBUTION $900.00 TAX WITHHOLDING (20%) $180.00 TOTAL NET DISTRIBUTION $720.00 CURRENT DROP ACCOUNT BALANCE $328,387.44 _________________________ ELEANORA LOVEJOY DATE OF RETIREMENT 07/31/2017 DATE OF BIRTH 12/28/1959 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $140,000.00 TAX WITHHOLDING (25%) $ 35,000.00 TOTAL NET DISTRIBUTION $105,000.00 CURRENT DROP ACCOUNT BALANCE $302,644.14 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (6/15/17) GARY CARMACK DATE OF RETIREMENT 09/21/2016 DATE OF BIRTH 03/22/1952 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $25,000.00 TAX WITHHOLDING (20%) $5,000.00 TOTAL NET DISTRIBUTION $20,000.00 CURRENT DROP ACCOUNT BALANCE $119,716.11 _________________________ JEFFREY MAIN DATE OF RETIREMENT 12/29/2016 DATE OF BIRTH 04/28/1960 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $25,000.00 TAX WITHHOLDING (20%) $5,000.00 TOTAL NET DISTRIBUTION $20,000.00 CURRENT DROP ACCOUNT BALANCE $101,516.85 _________________________ JOSEPH SHEEHAN DATE OF RETIREMENT 01/29/2016 DATE OF BIRTH 03/28/1961 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $53,350.00 TAX WITHHOLDING (25%) $13,377.50 TOTAL NET DISTRIBUTION $40,012.50 CURRENT DROP ACCOUNT BALANCE $436,167.08 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (7/15/17) JOHN BOYLE DATE OF RETIREMENT 08/26/2016 DATE OF BIRTH 01/03/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $17,000.00 TAX WITHHOLDING (20%) $3,400.00 TOTAL NET DISTRIBUTION $13,600.00 CURRENT DROP ACCOUNT BALANCE $440,641.29 _________________________ RALPH KRANCHICK DATE OF RETIREMENT 01/04/2017 DATE OF BIRTH 06/21/1956 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $21,000.00 TAX WITHHOLDING (22%) $4,620.00 TOTAL NET DISTRIBUTION $16,380.00 CURRENT DROP ACCOUNT BALANCE $109,533.26 _________________________ JEFF MAIN DATE OF RETIREMENT 12/29/2016 DATE OF BIRTH 04/28/1960 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $25,000.00 TAX WITHHOLDING (20%) $5,000.00 TOTAL NET DISTRIBUTION $20,000.00 CURRENT DROP ACCOUNT BALANCE $76,516.85 _________________________ TIM ROMAN DATE OF RETIREMENT 03/01/2017 DATE OF BIRTH 04/19/1970 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $12,500.00 TAX WITHHOLDING (20%) $2,500.00 TOTAL NET DISTRIBUTION $10,000.00 CURRENT DROP ACCOUNT BALANCE $23,594.04 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (8/15/17) BOB ODELL DATE OF RETIREMENT 08/12/2016 DATE OF BIRTH 12/14/1964 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $10,000.00 TAX WITHHOLDING (20%) $2,000.00 TOTAL NET DISTRIBUTION $8,000.00 CURRENT DROP ACCOUNT BALANCE $338,495.30 _________________________ TIM ROMAN DATE OF RETIREMENT 03/01/2017 DATE OF BIRTH 04/19/1970 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $7,200.00 TAX WITHHOLDING (20%) $1,440.00 TOTAL NET DISTRIBUTION $5,760.00 CURRENT DROP ACCOUNT BALANCE $11,580.24 _________________________ TODD THOMAS DATE OF RETIREMENT 01/21/2016 DATE OF BIRTH 07/09/1966 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $25,000.00 TAX WITHHOLDING (25%) $6,250.00 TOTAL NET DISTRIBUTION $18,750.00 CURRENT DROP ACCOUNT BALANCE $382,484.61 _________________________ APPLICATIONS FOR DISTRIBUTION OF DROP ACCOUNTS (9/15/17) GARY CARMACK DATE OF RETIREMENT 09/21/2016 DATE OF BIRTH 03/22/1952 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $25,000.00 TAX WITHHOLDING (20%) $5,000.00 TOTAL NET DISTRIBUTION $20,000.00 CURRENT DROP ACCOUNT BALANCE $96,550.11 _________________________ KATHLEEN HATCHETT DATE OF RETIREMENT 01/23/2016 DATE OF BIRTH 03/30/1961 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $14,000.00 TAX WITHHOLDING (20%) $2,800.00 TOTAL NET DISTRIBUTION $11,200.00 CURRENT DROP ACCOUNT BALANCE $227,707.88 _________________________ JEFF MAIN DATE OF RETIREMENT 12/29/2016 DATE OF BIRTH 04/28/1960 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $6,250.00 TAX WITHHOLDING (20%) $1,250.00 TOTAL NET DISTRIBUTION $5,000.00 CURRENT DROP ACCOUNT BALANCE $53,211.41 _________________________ JOSEPH SHEEHAN DATE OF RETIREMENT 01/29/2016 DATE OF BIRTH 03/28/1961 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $27,000.00 TAX WITHHOLDING (25%) $6,750.00 TOTAL NET DISTRIBUTION $20,250.00 CURRENT DROP ACCOUNT BALANCE $389,624.75 _________________________ APPLICATION FOR DISTRIBUTION OF DROP ACCOUNTS (10/15/17) JACK SCHNUR DATE OF RETIREMENT 12/02/2016 DATE OF BIRTH 07/14/1963 TYPE OF DISTRIBUTION PARTIAL LUMP SUM-CASH TOTAL GROSS DISTRIBUTION $55,000.00 TAX WITHHOLDING (20%) $11,000.00 TOTAL NET DISTRIBUTION $44,000.00 CURRENT DROP ACCOUNT BALANCE $418,613.10 _________________________ ____________________________, CHAIRMAN APPROVED ___________________________, SECRETARY 9/15/17______________________, DATE City of Palm Beach Gardens  Police Officers’ Pension Fund Chapter 112.664, F.S. Compliance Report    In Connection with the October 1, 2016 Funding  Actuarial Valuation Report and the Plan’s Financial  Reporting for the Year Ending September 30 ,2016    June 23, 2017 Board of Trustees City of Palm Beach Gardens Police Officers’ Pension Fund Palm Beach Gardens, Florida Dear Board Members: Gabriel, Roeder, Smith & Company (GRS) has been engaged by the City of Palm Beach Gardens Police Officers’ Pension Fund (Plan) to prepare a disclosure report to satisfy the requirements set forth in Ch. 112.664, F.S. and as further required pursuant to Ch. 60T-1.0035, F.A.C. This report was prepared at the request of the Board and is intended for use by the Retirement Board and those designated or approved by the Board. This report may be provided to parties other than the System only in its entirety and only with the permission of the Board. The purpose of the report is to provide the required information specified in Ch. 112.664, F.S. as well as supplement this information with additional exhibits. This report should not be relied on for any purpose other than the purpose described above. The findings in this report are based on data or other information through September 30, 2016. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan’s funded status); and changes in plan provisions or applicable law. The scope of this engagement does not include an analysis of the potential range of such measurements. This report was based upon information furnished by the City and the Board concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We checked for internal and year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the City. Except as otherwise indicated as required for the disclosures contained herein, this report was prepared using certain assumptions selected by the Board as described in our October 1, 2016 actuarial valuation report. This report is also based on the Plan Provisions, census data, and financial information as summarized in our October 1, 2016 actuarial valuation report. Please refer to the October 1, 2016 actuarial valuation report, dated April 21, 2017, for summaries and descriptions of this information. The use of an investment return assumption that is 2% higher than the investment return assumption used to determine the funding requirements does not represent an estimate of future Plan experience nor does it reflect an observation of future return estimates inherent in financial market data. The use of this investment return assumption is provided as a counterpart to the Chapter 112.664, Florida Statutes TABLE OF CONTENTS Title Page Ch. 112.664, F.S. Results Schedule of Changes in Net Pension Liability 1. Using financial reporting assumptions per GASB Statement No. 67 1 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 2 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 3 4. Using the mandated mortality and funding interest rate +2% 4 Assets Versus Benefit Payments Projections 1. Using funding assumptions 5 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 6 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 7 4. Using the mandated mortality and funding interest rate +2% 8 Actuarially Determined Contribution 9 CH. 112.664, Florida Statutes RESULTS 1 Schedule of Changes in the Employers' Net Pension Liability Using Financial Reporting Assumptions per GASB Statement No. 67 Fiscal year ending September 30,2016 1. Total pension liability a. Service Cost 1,355,530$ b. Interest 6,688,673 c. Benefit Changes - d. Difference between actual & expected experience & Other 906,295 e. Assumption Changes 573,052 f. Benefit Payments (3,938,855) g. Contribution Refunds (8,046) h. Net Change in Total Pension Liability 5,576,649 i. Total Pension Liability - Beginning 96,205,515 j. Total Pension Liability - Ending 101,782,164$ 2. Plan Fiduciary Net Position a. Contributions - Employer (From City) 2,897,754$ b. Contributions - Employer (From State) 643,259 c. Contributions - Non-Employer Contributing Entity - d. Contributions - Member 452,421 e. Net Investment Income 8,107,238 f. Benefit Payments (3,938,855) g. Contribution Refunds (8,046) h. Administrative Expense (132,973) i. Other - j. Net Change in Plan Fiduciary Net Position 8,020,798 k. Plan Fiduciary Net Position - Beginning 74,092,896 l. Plan Fiduciary Net Position - Ending 82,113,694$ 3. Net Pension Liability / (Asset)19,668,470 Certain Key Assumptions Valuation Date 10/01/2015 Measurement Date 09/30/2016 Investment Return Assumption 6.90% Mortality Table FRS Mortality - Special Risk 2 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(a), F.S. Fiscal year ending September 30,2016 1. Total pension liability a. Service Cost 1,330,320$ b. Interest 6,683,780 c. Benefit Changes - d. Difference between actual & expected experience & Other (70,233) e. Assumption Changes - f. Benefit Payments (3,938,855) g. Contribution Refunds (8,046) h. Net Change in Total Pension Liability 3,996,966 i. Total Pension Liability - Beginning 98,969,123 j. Total Pension Liability - Ending 102,966,089$ 2. Plan Fiduciary Net Position a. Contributions - Employer (From City) 2,897,754$ b. Contributions - Employer (From State) 643,259 c. Contributions - Non-Employer Contributing Entity - d. Contributions - Member 452,421 e. Net Investment Income 8,107,238 f. Benefit Payments (3,938,855) g. Contribution Refunds (8,046) h. Administrative Expense (132,973) i. Other - j. Net Change in Plan Fiduciary Net Position 8,020,798 k. Plan Fiduciary Net Position - Beginning 74,092,896 l. Plan Fiduciary Net Position - Ending 82,113,694$ 3. Net Pension Liability / (Asset)20,852,395 Certain Key Assumptions Valuation Date 10/01/2015 Measurement Date 09/30/2016 Investment Return Assumption 6.90% Mortality Table RP-2000 fully generational using Scale AA 3 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(b), F.S. Fiscal year ending September 30,2016 1. Total pension liability a. Service Cost 2,063,249$ b. Interest 5,840,871 c. Benefit Changes - d. Difference between actual & expected experience & Other (70,233) e. Assumption Changes - f. Benefit Payments (3,938,855) g. Contribution Refunds (8,046) h. Net Change in Total Pension Liability 3,886,986 i. Total Pension Liability - Beginning 121,630,134 j. Total Pension Liability - Ending 125,517,120$ 2. Plan Fiduciary Net Position a. Contributions - Employer (From City) 2,897,754$ b. Contributions - Employer (From State) 643,259 c. Contributions - Non-Employer Contributing Entity - d. Contributions - Member 452,421 e. Net Investment Income 8,107,238 f. Benefit Payments (3,938,855) g. Contribution Refunds (8,046) h. Administrative Expense (132,973) i. Other - j. Net Change in Plan Fiduciary Net Position 8,020,798 k. Plan Fiduciary Net Position - Beginning 74,092,896 l. Plan Fiduciary Net Position - Ending 82,113,694$ 3. Net Pension Liability / (Asset)43,403,426 Certain Key Assumptions Valuation Date 10/01/2015 Measurement Date 09/30/2016 Investment Return Assumption 4.90% Mortality Table RP-2000 fully generational using Scale AA 4 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption Fiscal year ending September 30,2016 1. Total pension liability a. Service Cost 888,306$ b. Interest 7,233,980 c. Benefit Changes - d. Difference between actual & expected experience & Other (70,233) e. Assumption Changes - f. Benefit Payments (3,938,855) g. Contribution Refunds (8,046) h. Net Change in Total Pension Liability 4,105,152 i. Total Pension Liability - Beginning 83,324,575 j. Total Pension Liability - Ending 87,429,727$ 2. Plan Fiduciary Net Position a. Contributions - Employer (From City) 2,897,754$ b. Contributions - Employer (From State) 643,259 c. Contributions - Non-Employer Contributing Entity - d. Contributions - Member 452,421 e. Net Investment Income 8,107,238 f. Benefit Payments (3,938,855) g. Contribution Refunds (8,046) h. Administrative Expense (132,973) i. Other - j. Net Change in Plan Fiduciary Net Position 8,020,798 k. Plan Fiduciary Net Position - Beginning 74,092,896 l. Plan Fiduciary Net Position - Ending 82,113,694$ 3. Net Pension Liability / (Asset)5,316,033 Certain Key Assumptions Valuation Date 10/01/2015 Measurement Date 09/30/2016 Investment Return Assumption 8.90% Mortality Table RP-2000 fully generational using Scale AA 5 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using assumptions from the Plan's Latest Actuarial Valuation FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2017 66,012,586 4,304,732 5,415,399 64,901,919 2018 64,901,919 4,224,004 5,568,413 63,557,510 2019 63,557,510 4,128,558 5,686,851 61,999,217 2020 61,999,217 4,019,801 5,768,981 60,250,037 2021 60,250,037 3,895,389 5,929,816 58,215,610 2022 58,215,610 3,751,607 6,089,846 55,877,371 2023 55,877,371 3,589,305 6,186,949 53,279,727 2024 53,279,727 3,409,823 6,270,540 50,419,010 2025 50,419,010 3,213,905 6,311,395 47,321,520 2026 47,321,520 3,002,547 6,332,835 43,991,232 2027 43,991,232 2,775,908 6,338,106 40,429,034 2028 40,429,034 2,532,796 6,364,080 36,597,750 2029 36,597,750 2,271,586 6,384,139 32,485,197 2030 32,485,197 1,990,275 6,432,904 28,042,568 2031 28,042,568 1,687,511 6,452,470 23,277,609 2032 23,277,609 1,363,967 6,438,535 18,203,041 2033 18,203,041 1,020,404 6,394,207 12,829,238 2034 12,829,238 656,806 6,340,654 7,145,390 2035 7,145,390 272,881 6,264,857 1,153,414 2036 1,153,414 - 6,180,476 - 2037 - - 6,097,224 - 2038 - - 5,997,903 - 2039 - - 5,914,276 - 2040 - - 5,812,839 - 2041 - - 5,715,723 - 2042 - - 5,603,420 - 19.17 Certain Key Assumptions Valuation Investment return assumption 6.80% Valuation Mortality Table FRS Mortality - Special Risk Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: 6 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(a), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2017 66,012,586 4,304,732 5,415,399 64,901,919 2018 64,901,919 4,224,004 5,568,413 63,557,510 2019 63,557,510 4,128,558 5,686,851 61,999,217 2020 61,999,217 4,019,801 5,768,981 60,250,037 2021 60,250,037 3,895,389 5,929,816 58,215,610 2022 58,215,610 3,751,607 6,089,846 55,877,371 2023 55,877,371 3,589,305 6,186,949 53,279,727 2024 53,279,727 3,409,823 6,270,540 50,419,010 2025 50,419,010 3,213,905 6,311,395 47,321,520 2026 47,321,520 3,002,547 6,332,835 43,991,232 2027 43,991,232 2,775,908 6,338,106 40,429,034 2028 40,429,034 2,532,796 6,364,080 36,597,750 2029 36,597,750 2,271,586 6,384,139 32,485,197 2030 32,485,197 1,990,275 6,432,904 28,042,568 2031 28,042,568 1,687,511 6,452,470 23,277,609 2032 23,277,609 1,363,967 6,438,535 18,203,041 2033 18,203,041 1,020,404 6,394,207 12,829,238 2034 12,829,238 656,806 6,340,654 7,145,390 2035 7,145,390 272,881 6,264,857 1,153,414 2036 1,153,414 - 6,180,476 - 2037 - - 6,097,224 - 2038 - - 5,997,903 - 2039 - - 5,914,276 - 2040 - - 5,812,839 - 2041 - - 5,715,723 - 2042 - - 5,603,420 - 19.17 Certain Key Assumptions Valuation Investment return assumption 6.80% Valuation Mortality Table FRS Mortality - Special Risk Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: 7 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(b), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2017 66,012,586 3,038,635 5,415,399 63,635,822 2018 63,635,822 2,920,878 5,568,413 60,988,287 2019 60,988,287 2,790,953 5,686,851 58,092,389 2020 58,092,389 2,649,979 5,768,981 54,973,387 2021 54,973,387 2,496,407 5,929,816 51,539,978 2022 51,539,978 2,327,763 6,089,846 47,777,895 2023 47,777,895 2,144,852 6,186,949 43,735,798 2024 43,735,798 1,948,825 6,270,540 39,414,083 2025 39,414,083 1,740,403 6,311,395 34,843,091 2026 34,843,091 1,520,480 6,332,835 30,030,736 2027 30,030,736 1,289,361 6,338,106 24,981,991 2028 24,981,991 1,046,398 6,364,080 19,664,309 2029 19,664,309 790,667 6,384,139 14,070,837 2030 14,070,837 521,010 6,432,904 8,158,943 2031 8,158,943 236,770 6,452,470 1,943,243 2032 1,943,243 - 6,438,535 - 2033 - - 6,394,207 - 2034 - - 6,340,654 - 2035 - - 6,264,857 - 2036 - - 6,180,476 - 2037 - - 6,097,224 - 2038 - - 5,997,903 - 2039 - - 5,914,276 - 2040 - - 5,812,839 - 2041 - - 5,715,723 - 2042 - - 5,603,420 - 15.33 Certain Key Assumptions Valuation Investment return assumption 4.80% Valuation Mortality Table FRS Mortality - Special Risk Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: 8 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2017 66,012,586 5,570,830 5,415,399 66,168,017 2018 66,168,017 5,577,775 5,568,413 66,177,379 2019 66,177,379 5,573,388 5,686,851 66,063,916 2020 66,063,916 5,559,789 5,768,981 65,854,724 2021 65,854,724 5,534,304 5,929,816 65,459,212 2022 65,459,212 5,492,457 6,089,846 64,861,823 2023 64,861,823 5,435,615 6,186,949 64,110,489 2024 64,110,489 5,365,819 6,270,540 63,205,768 2025 63,205,768 5,284,406 6,311,395 62,178,779 2026 62,178,779 5,193,088 6,332,835 61,039,032 2027 61,039,032 5,092,558 6,338,106 59,793,484 2028 59,793,484 4,981,807 6,364,080 58,411,211 2029 58,411,211 4,859,284 6,384,139 56,886,356 2030 56,886,356 4,722,952 6,432,904 55,176,404 2031 55,176,404 4,571,615 6,452,470 53,295,549 2032 53,295,549 4,406,713 6,438,535 51,263,727 2033 51,263,727 4,229,863 6,394,207 49,099,383 2034 49,099,383 4,041,757 6,340,654 46,800,486 2035 46,800,486 3,842,789 6,264,857 44,378,418 2036 44,378,418 3,633,360 6,180,476 41,831,302 2037 41,831,302 3,412,877 6,097,224 39,146,955 2038 39,146,955 3,181,024 5,997,903 36,330,076 2039 36,330,076 2,936,819 5,914,276 33,352,619 2040 33,352,619 2,679,266 5,812,839 30,219,046 2041 30,219,046 2,407,784 5,715,723 26,911,107 2042 26,911,107 2,121,627 5,603,420 23,429,314 2043 23,429,314 1,820,809 5,476,605 19,773,518 2044 19,773,518 1,504,970 5,343,167 15,935,321 2045 15,935,321 1,173,507 5,200,020 11,908,808 2046 11,908,808 826,136 5,041,801 7,693,143 2047 7,693,143 462,290 4,879,699 3,275,734 2048 3,275,734 81,145 4,707,271 - 31.67 Certain Key Assumptions Valuation Investment return assumption 8.80% Valuation Mortality Table FRS Mortality - Special Risk Note: As required in Section 112.664(c) of the Florida Statutes, the projection of the F und assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets is adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: 9 A. Valuation Date B. Actuarially Determined Contribution (ADC) to Be Paid During Fiscal Year Ending 9/30/2018 9/30/2018 9/30/2018 9/30/2018 C. Assumed Dates of Employer Contributions 10/1/2017 10/1/2017 10/1/2017 10/1/2017 D. Annual Payment to Amortize Unfunded Actuarial Liability $ 2,103,662 $ 2,103,662 $ 3,961,597 $ 570,287 E. Employer Normal Cost 1,129,056 1,129,056 1,951,392 636,187 F. Employer ADC if Paid on Valuation Date: D + E 3,232,718 3,232,718 5,912,989 1,206,474 G. Employer ADC Adjusted for Frequency of Payments 3,232,718 3,232,718 5,912,989 1,206,474 H. Employer ADC Adjusted for Frequency of Payments as % of Covered Payroll 56.55 % 56.55 % 103.44 % 21.11 % I. Assumed Rate of Increase in Covered Payroll to Contribution Year 5.00 % 5.00 % 5.00 % 5.00 % J. Covered Payroll for Contribution Year 6,002,065 6,002,065 6,002,065 6,002,065 K. Employer ADC for Contribution Year: H x J 3,394,168 3,394,168 6,208,536 1,267,036 L. Estimated State Revenue in Contribution Year 559,237 559,237 559,237 559,237 M.Net Employer ADC in Contribution Year 2,834,931 2,834,931 5,649,299 707,799 N. Net Employer ADC as % of Covered Payroll in Contribution Year: M ÷ J 47.23 % 47.23 % 94.12 % 11.79 % O. Expected Member Contributions 516,178 516,178 516,178 516,178 P. Total Contribution (including Members) 3,910,346 3,910,346 6,724,714 1,783,214 Q. Total Contribution as % of Covered Payroll in Contribution Year: P ÷ J 65.15 % 65.15 % 112.04 % 29.71 % R. Certain Key Assumptions Investment Return Assumption 6.80% 6.80% 4.80% 8.80% Mortality Table FRS Mortality - Special Risk FRS Mortality - Special Risk FRS Mortality - Special Risk FRS Mortality - Special Risk October 1, 2016 ACTUARIALLY DETERMINED CONTRIBUTION October 1, 2016 October 1, 2016October 1, 2016 112.664(1)(b) F.S. except 2% higher investment return assumption 112.664(1)(b) F.S. Assumptions 112.664(1)(a) F.S. Assumptions Plan's Latest Actuarial Valuation     Palm Beach Gardens Police Officers’ Pension Fund 4           GRS Retirement Consulting Fiscal Year Ending Projected Total  Chapter 185 State  Money Baseline (August  2013) Chapter 185  State Money Excess Chapter  185 State  Money 50% of Excess  (Allocated to  Share Plans) Additional First  Year Allocation  (Prior Excess) 2016 643,259 475,215 168,044 84,022 154,256 2017 659,340 475,215 184,125 92,063 0 2018 675,824 475,215 200,609 100,305 0 2019 692,720 475,215 217,505 108,753 0 2020 710,038 475,215 234,823 117,412 0 2021 727,789 475,215 252,574 126,287 0 2022 745,984 475,215 270,769 135,385 0 2023 764,634 475,215 289,419 144,710 0 2024 783,750 475,215 308,535 154,268 0 2025 803,344 475,215 328,129 164,065 0 2026 823,428 475,215 348,213 174,107 0 2027 844,014 475,215 368,799 184,400 0 2028 865,114 475,215 389,899 194,950 0 2029 886,742 475,215 411,527 205,764 0 2030 908,911 475,215 433,696 216,848 0 2031 931,634 475,215 456,419 228,210 0 2032 954,925 475,215 479,710 239,855 0 2033 978,798 475,215 503,583 251,792 0 2034 1,003,268 475,215 528,053 264,027 0 2035 1,028,350 475,215 553,135 276,568 0 2036 1,054,059 475,215 578,844 289,422 0 2037 1,080,410 475,215 605,195 302,598 0 2038 1,107,420 475,215 632,205 316,103 0 2039 1,135,106 475,215 659,891 329,946 0 2040 1,163,484 475,215 688,269 344,135 0 2041 1,192,571 475,215 717,356 358,678 0 2042 1,222,385 475,215 747,170 373,585 0 2043 1,252,945 475,215 777,730 388,865 0 2044 1,284,269 475,215 809,054 404,527 0 2045 1,316,376 475,215 841,161 420,581 0 2046 1,349,285 475,215 874,070 437,035 0 Assumptions Total Chapter 185 State money is assumed to increase 2.5% per year, which  is the Pension  Fund's inflation  assumption. Palm Beach Gardens Police Officers' Pension Fund 30‐Year Projection of Excess Chapter 185 Funds for Share Plan Allocations         Palm Beach Gardens Police Officers’ Pension Fund 5 GRS Retirement Consulting Fiscal Year Ending Projected Active  Member Count  (Non‐DROP) Projected Total  Active Count  (Including DROP) Projected Retiree Count (Current Retirees) Projected Retiree Count (Future Retirees) Total Projected  Retiree Count Total Projected  Active PLUS  Retiree Count 2016 86 107 75 0 75 161 2017 100 117 74 3 77 177 2018 101 117 73 6 79 180 2019 104 117 73 8 81 185 2020 105 117 71 11 82 187 2021 103 117 71 15 86 189 2022 102 117 69 20 89 191 2023 102 117 69 22 91 193 2024 103 117 68 24 92 195 2025 103 117 66 27 93 196 2026 105 117 66 29 95 200 2027 107 117 65 31 96 203 2028 106 117 63 35 98 204 2029 105 117 62 38 100 205 2030 103 117 61 42 103 206 2031 102 117 59 45 104 206 2032 100 117 58 48 106 206 2033 101 117 56 51 107 208 2034 101 117 55 53 108 209 2035 104 117 54 54 108 212 2036 106 117 51 56 107 213 2037 107 117 50 58 108 215 2038 107 117 48 60 108 215 2039 106 117 47 63 110 216 2040 104 117 45 67 112 216 2041 101 117 43 71 114 215 2042 98 117 41 77 118 216 2043 94 117 40 81 121 215 2044 93 117 38 86 124 217 2045 92 117 35 90 125 217 2046 92 117 34 92 126 218 Assumptions Palm Beach Gardens Police Officers' Pension Fund 30‐Year Projection of Active and Retired Member Counts Active members are assumed to enter the DROP at the rates of retirement assumed for actuarial valuation purposes and remain in  the DROP for a period of 5 years.  Some active members are assumed to terminate prior to becoming eligible for retirement (in line  with  the actuarial valuation assumptions). New members are assumed to be hired each year at a rate sufficient to maintain a constant overall active employee count (including  employees participating in the DROP).  10 additional new members are assumed to be hired in 2017. The projected retiree counts  reflect the probability of survivorship each year in line with the current mortality assumption used for  actuarial valuation purposes.       Palm Beach Gardens Police Officers’ Pension Fund 6 GRS Retirement Consulting Projected Count Allocation Per Member Projected Count Allocation Per Member Projected Count Allocation Per Member 2016 $238,278 86 $2,770.67 161 $1,479.99 86 $2,770.67 2017 $92,063 100 $920.63 177 $520.13 103 $893.82 2018 $100,305 101 $993.12 180 $557.25 107 $937.43 2019 $108,753 104 $1,045.70 185 $587.85 112 $971.01 2020 $117,412 105 $1,118.21 187 $627.87 116 $1,012.17 2021 $126,287 103 $1,226.09 189 $668.19 118 $1,070.23 2022 $135,385 102 $1,327.30 191 $708.82 122 $1,109.71 2023 $144,710 102 $1,418.73 193 $749.79 124 $1,167.02 2024 $154,268 103 $1,497.75 195 $791.12 127 $1,214.71 2025 $164,065 103 $1,592.86 196 $837.07 130 $1,262.04 2026 $174,107 105 $1,658.16 200 $870.54 134 $1,299.31 2027 $184,400 107 $1,723.36 203 $908.37 138 $1,336.23 2028 $194,950 106 $1,839.15 204 $955.64 141 $1,382.62 2029 $205,764 105 $1,959.66 205 $1,003.73 143 $1,438.91 2030 $216,848 103 $2,105.32 206 $1,052.66 145 $1,495.50 2031 $228,210 102 $2,237.35 206 $1,107.82 147 $1,552.45 2032 $239,855 100 $2,398.55 206 $1,164.34 148 $1,620.64 2033 $251,792 101 $2,492.99 208 $1,210.54 152 $1,656.53 2034 $264,027 101 $2,614.13 209 $1,263.29 154 $1,714.46 2035 $276,568 104 $2,659.31 212 $1,304.57 158 $1,750.43 2036 $289,422 106 $2,730.40 213 $1,358.79 162 $1,786.56 2037 $302,598 107 $2,828.02 215 $1,407.43 165 $1,833.93 2038 $316,103 107 $2,954.23 215 $1,470.25 167 $1,892.83 2039 $329,946 106 $3,112.70 216 $1,527.53 169 $1,952.34 2040 $344,135 104 $3,308.99 216 $1,593.22 171 $2,012.49 2041 $358,678 101 $3,551.27 215 $1,668.27 172 $2,085.34 2042 $373,585 98 $3,812.09 216 $1,729.56 175 $2,134.77 2043 $388,865 94 $4,136.86 215 $1,808.67 175 $2,222.09 2044 $404,527 93 $4,349.75 217 $1,864.18 179 $2,259.93 2045 $420,581 92 $4,571.53 217 $1,938.16 182 $2,310.88 2046 $437,035 92 $4,750.38 218 $2,004.75 184 $2,375.19 Assumptions Active members are assumed to enter the DROP at the rates of retirement assumed for actuarial valuation purposes  and remain in the DROP for a period of 5 years.  Some active members are assumed to terminate prior to becoming  eligible for retirement (in line with  the actuarial valuation assumptions). New members are assumed to be hired each year at a rate sufficient to maintain a constant overall active employee  count (including employees participating in the DROP).  10 additional new members are assumed to be hired in 2017. The projected retiree counts reflect the probability of survivorship each year in line with  the current mortality  assumption used for actuarial valuation purposes. Total Chapter 185 State money is assumed to increase 2.5% per year, which  is the Pension  Fund's inflation assumption. Share Plan Allocation Options ‐ 30‐Year Projections (Three Options) Palm Beach Gardens Police Officers' Pension Fund Option 1:  Allocations to Actives Only Option 2:  Allocations to Actives  & RetireesTotal Share Plan  Allocation Fiscal Year Ending Option 3:  Allocations to Actives & Future Retirees     Palm Beach Gardens Police Officers’ Pension Fund 7 GRS Retirement Consulting Projected Count Allocation Per Member Projected Count Allocation Per Member 2016 $238,278 107 $2,226.90 107 $2,226.90 2017 $92,063 117 $786.86 124 $742.44 2018 $100,305 117 $857.31 128 $783.63 2019 $108,753 117 $929.51 133 $817.69 2020 $117,412 117 $1,003.52 136 $863.32 2021 $126,287 117 $1,079.38 139 $908.54 2022 $135,385 117 $1,157.14 142 $953.42 2023 $144,710 117 $1,236.84 144 $1,004.93 2024 $154,268 117 $1,318.53 147 $1,049.44 2025 $164,065 117 $1,402.26 150 $1,093.77 2026 $174,107 117 $1,488.09 154 $1,130.56 2027 $184,400 117 $1,576.07 158 $1,167.09 2028 $194,950 117 $1,666.24 160 $1,218.44 2029 $205,764 117 $1,758.67 162 $1,270.15 2030 $216,848 117 $1,853.40 164 $1,322.24 2031 $228,210 117 $1,950.51 166 $1,374.76 2032 $239,855 117 $2,050.04 167 $1,436.26 2033 $251,792 117 $2,152.07 170 $1,481.13 2034 $264,027 117 $2,256.64 172 $1,535.04 2035 $276,568 117 $2,363.83 176 $1,571.41 2036 $289,422 117 $2,473.69 179 $1,616.88 2037 $302,598 117 $2,586.31 183 $1,653.54 2038 $316,103 117 $2,701.74 184 $1,717.95 2039 $329,946 117 $2,820.05 186 $1,773.90 2040 $344,135 117 $2,941.32 187 $1,840.29 2041 $358,678 117 $3,065.62 188 $1,907.86 2042 $373,585 117 $3,193.03 190 $1,966.24 2043 $388,865 117 $3,323.63 191 $2,035.94 2044 $404,527 117 $3,457.50 194 $2,085.19 2045 $420,581 117 $3,594.71 196 $2,145.82 2046 $437,035 117 $3,735.34 198 $2,207.25 Assumptions Total Chapter 185 State money is assumed to increase 2.5% per year, which is the Pension Fund's inflation assumption. Active members are assumed to enter the DROP at the rates of retirement assumed for actuarial valuation purposes  and remain in the DROP for a period of 5 years.  Some active members are assumed to terminate prior to becoming  eligible for retirement (in line with the actuarial valuation assumptions). New members are assumed to be hired each year at a rate sufficient to maintain a constant overall active employee  count (including employees participating in the DROP).  10 additional new members are assumed to be hired in 2017. The projected retiree counts reflect the probability of survivorship each year in line with the current mortality  assumption used for actuarial valuation purposes. Palm Beach Gardens Police Officers' Pension Fund Share Plan Allocation Options ‐ 30‐Year Projections (Three Options) Fiscal Year Ending Total Share Plan  Allocation Option 1a:  Allocations to Actives  Only (including DROP members) Option 3a:  Allocations to Actives (incl. DROP members) & Future Retirees       Palm Beach Gardens Police Officers’ Pension Fund 8 GRS Retirement Consulting 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 TOTALS: Option 1: Allocations are to Actives Only Option 1a: Allocations  are to Actives and DROP members Only Option 2: Allocations are to all Actives and Retirees Option 3: Allocations are to Actives and Future Retirees  Only Option 3a: Allocations are to Actives  (Incl. DROP  members) & Future Retirees $2,222.09 $2,259.93 $2,310.88 $2,375.19 $2,388.95 $2,428.81 $2,469.23 $2,510.25 $2,576.90 $1,714.46 $1,750.43 $1,786.56 $1,833.92 $1,892.83 $1,952.34 $2,012.48 $2,085.34 $2,134.77 $1,262.03 $1,299.30 $1,336.23 $1,382.62 $1,438.91 $1,495.50 $1,552.45 $1,620.64 $1,656.52 $2,770.67 $893.81 $937.43 $971.00 $1,012.17 $1,070.23 $1,109.71 $1,167.01 $1,214.70 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,853.40 $1,950.51 $2,050.04 $2,152.06 $2,256.64 $2,363.82 $2,473.69 $0.00 $0.00 $1,079.38 $1,157.13 $1,236.83 $1,318.53 $1,402.26 $1,488.09 $1,576.06 $1,666.24 $1,758.66 $25,434.01 $75,739.41 $85,583.73 $0.00 $3,063.69 $3,118.89 $0.00 $3,166.57 $3,209.17 $3,316.04 $0.00 $0.00 $0.00 $33,587.42 $3,205.53 $3,297.90 $3,376.60 $92,918.46 $0.00 $2,852.78 $2,930.24 $0.00 $2,963.33 $3,030.37 $0.00 $2,653.20 $2,762.23 $0.00 $2,757.67 $2,845.42 $0.00 $0.00 $0.00 $0.00 $2,866.96 $2,952.79 $3,026.08 $3,129.49 $0.00 $2,475.13 $2,600.60 $0.00 $2,574.36 $2,680.64 $0.00 $2,295.58 $2,445.06 $0.00 $2,389.35 $2,522.09 $0.00 $0.00 $0.00 $0.00 $2,644.52 $2,726.23 $2,796.07 $2,103.52 $2,276.27 $0.00 $2,163.31 $2,328.14 $0.00 $2,224.00 $2,380.62 $2,145.82 $0.00 $2,004.75 $2,207.25 $0.00 $2,044.60 $2,235.97 $0.00 $0.00 $0.00 $0.00 $1,773.90 $1,840.29 $1,907.86 $1,966.24 $2,035.94 $2,085.19 $1,481.13 $1,535.04 $1,571.41 $1,616.88 $1,653.54 $1,717.95 $1,167.09 $1,218.43 $1,270.15 $1,322.24 $1,374.76 $1,436.26 $908.54 $953.41 $1,004.93 $1,049.44 $1,093.76 $1,130.56 $1,729.56 $1,808.67 $1,864.18 $1,938.16 $3,272.02 $2,226.89 $742.44 $783.63 $817.69 $863.32 $1,358.79 $1,407.43 $1,470.24 $1,527.53 $1,593.22 $1,668.27 $1,052.66 $1,107.81 $1,164.34 $1,210.54 $1,263.28 $1,304.56 $791.12 $837.06 $870.53 $908.37 $955.63 $1,003.72 $0.00 $0.00 $1,479.98 $520.13 $557.25 $587.85 $627.87 $668.19 $708.82 $749.79 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,723.36 $1,839.15 $1,959.65 $2,105.32 $2,237.35 $0.00 $1,226.09 $1,327.30 $1,418.72 $1,497.74 $1,592.86 $1,658.16 $2,770.67 $920.63 $993.11 $1,045.70 $1,118.20 Palm Beach Gardens Police Officers' Pension Fund ‐ Share Plan Allocation Options Example 1:  Projected Annual Allocations to a Member Who Currently Has 10 Years of Service, Enters DROP 1/1/2032, Leaves DROP 1/1/2037, and Lives to 1/1/2062 Fiscal Year Ending $2,226.89 $786.86 $857.30 $929.51 $1,003.52       Palm Beach Gardens Police Officers’ Pension Fund 9 GRS Retirement Consulting 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 TOTALS: $8,074.40 $13,486.30 $47,571.31 $62,896.29 $56,568.04 $0.00 $0.00 $2,224.00 $2,510.25 $2,380.62 $0.00 $0.00 $2,295.58 $2,576.90 $2,445.06 $0.00 $0.00 $2,103.52 $2,428.81 $2,276.27 $0.00 $0.00 $2,163.31 $2,469.23 $2,328.14 $0.00 $0.00 $2,004.75 $2,375.19 $2,207.25 $0.00 $0.00 $2,044.60 $2,388.95 $2,235.97 $0.00 $0.00 $1,864.18 $2,259.93 $2,085.19 $0.00 $0.00 $1,938.16 $2,310.88 $2,145.82 $0.00 $0.00 $1,729.56 $2,134.77 $1,966.24 $0.00 $0.00 $1,808.67 $2,222.09 $2,035.94 $0.00 $0.00 $1,593.22 $2,012.48 $1,840.29 $0.00 $0.00 $1,668.27 $2,085.34 $1,907.86 $0.00 $0.00 $1,470.24 $1,892.83 $1,717.95 $0.00 $0.00 $1,527.53 $1,952.34 $1,773.90 $0.00 $0.00 $1,358.79 $1,786.56 $1,616.88 $0.00 $0.00 $1,407.43 $1,833.92 $1,653.54 $0.00 $0.00 $1,263.28 $1,714.46 $1,535.04 $0.00 $0.00 $1,304.56 $1,750.43 $1,571.41 $0.00 $0.00 $1,164.34 $1,620.64 $1,436.26 $0.00 $0.00 $1,210.54 $1,656.52 $1,481.13 $0.00 $0.00 $1,052.66 $1,495.50 $1,322.24 $0.00 $0.00 $1,107.81 $1,552.45 $1,374.76 $0.00 $0.00 $955.63 $1,382.62 $1,218.43 $0.00 $0.00 $1,003.72 $1,438.91 $1,270.15 $0.00 $1,488.09 $870.53 $1,299.30 $1,130.56 $0.00 $0.00 $908.37 $1,336.23 $1,167.09 $0.00 $1,318.53 $791.12 $1,214.70 $1,049.44 $0.00 $1,402.26 $837.06 $1,262.03 $1,093.76 $0.00 $1,157.13 $708.82 $1,109.71 $953.41 $0.00 $1,236.83 $749.79 $1,167.01 $1,004.93 $1,118.20 $1,003.52 $627.87 $1,012.17 $863.32 $1,226.09 $1,079.38 $668.19 $1,070.23 $908.54 $993.11 $857.30 $557.25 $937.43 $783.63 $1,045.70 $929.51 $587.85 $971.00 $817.69 $2,770.67 $2,226.89 $1,479.98 $2,770.67 $2,226.89 $920.63 $786.86 $520.13 $893.81 $742.44 Palm Beach Gardens Police Officers' Pension Fund ‐ Share Plan Allocation Options Example 2:  Projected Annual Allocations to a Member Who Currently Has 20 Years of Service, Enters DROP 1/1/2022, Leaves DROP 1/1/2027, and Lives to 1/1/2052 Fiscal Year Ending Option 1: Allocations are to Actives Only Option 1a: Allocations  are to Actives and DROP members Only Option 2: Allocations are to all Actives and Retirees Option 3: Allocations are to Actives and Future Retirees Only Option 3a: Allocations are to Actives  (Incl. DROP  members) & Future Retirees       Palm Beach Gardens Police Officers’ Pension Fund 10 GRS Retirement Consulting 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 TOTALS: $0.00 $4,800.56 $43,051.73 $0.00 $51,742.36 $0.00 $0.00 $2,103.52 $0.00 $2,276.27 $0.00 $0.00 $2,163.31 $0.00 $2,328.14 $0.00 $0.00 $2,004.75 $0.00 $2,207.25 $0.00 $0.00 $2,044.60 $0.00 $2,235.97 $0.00 $0.00 $1,864.18 $0.00 $2,085.19 $0.00 $0.00 $1,938.16 $0.00 $2,145.82 $0.00 $0.00 $1,729.56 $0.00 $1,966.24 $0.00 $0.00 $1,808.67 $0.00 $2,035.94 $0.00 $0.00 $1,593.22 $0.00 $1,840.29 $0.00 $0.00 $1,668.27 $0.00 $1,907.86 $0.00 $0.00 $1,470.24 $0.00 $1,717.95 $0.00 $0.00 $1,527.53 $0.00 $1,773.90 $0.00 $0.00 $1,358.79 $0.00 $1,616.88 $0.00 $0.00 $1,407.43 $0.00 $1,653.54 $0.00 $0.00 $1,263.28 $0.00 $1,535.04 $0.00 $0.00 $1,304.56 $0.00 $1,571.41 $0.00 $0.00 $1,164.34 $0.00 $1,436.26 $0.00 $0.00 $1,210.54 $0.00 $1,481.13 $0.00 $0.00 $1,052.66 $0.00 $1,322.24 $0.00 $0.00 $1,107.81 $0.00 $1,374.76 $0.00 $0.00 $955.63 $0.00 $1,218.43 $0.00 $0.00 $1,003.72 $0.00 $1,270.15 $0.00 $0.00 $870.53 $0.00 $1,130.56 $0.00 $0.00 $908.37 $0.00 $1,167.09 $0.00 $0.00 $791.12 $0.00 $1,049.44 $0.00 $0.00 $837.06 $0.00 $1,093.76 $0.00 $0.00 $708.82 $0.00 $953.41 $0.00 $0.00 $749.79 $0.00 $1,004.93 $0.00 $0.00 $627.87 $0.00 $863.32 $0.00 $0.00 $668.19 $0.00 $908.54 $0.00 $857.30 $557.25 $0.00 $783.63 $0.00 $929.51 $587.85 $0.00 $817.69 $0.00 $2,226.89 $1,479.98 $0.00 $2,226.89 $0.00 $786.86 $520.13 $0.00 $742.44 Palm Beach Gardens Police Officers' Pension Fund ‐ Share Plan Allocation Options Example 3:  Projected Annual Allocations to a Member Who is Currently in the DROP, Leaves the DROP in 3 Years (at 1/1/2020), and Lives to 1/1/2050 Fiscal Year Ending Option 1: Allocations are to Actives  Only Option 1a: Allocations  are to Actives and DROP members Only Option 2: Allocations are to all Actives and Retirees Option 3: Allocations are to Actives and Future Retirees Only Option 3a: Allocations are to Actives (Incl. DROP  members) & Future Retirees         Palm Beach Gardens Police Officers’ Pension Fund 11 GRS Retirement Consulting 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 TOTALS: $3,376.60 $3,488.14 $3,619.00 $3,719.66 $3,839.77 $3,316.04 $3,425.57 $3,553.79 $3,669.39 $3,787.88 $0.00 $0.00 $0.00 $0.00 $0.00 $3,272.02 $3,395.12 $3,537.85 $3,652.93 $3,770.90 $38,329.37 $47,702.44 $94,005.55 $111,529.91 $103,929.70 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $3,166.57 $3,297.90 $3,209.17 $0.00 $0.00 $3,909.34 $3,944.88 $3,909.34 $0.00 $0.00 $2,963.33 $3,129.49 $3,030.37 $0.00 $0.00 $3,063.69 $3,205.53 $3,118.89 $0.00 $0.00 $2,757.67 $2,952.79 $2,845.42 $0.00 $0.00 $2,852.78 $3,026.08 $2,930.24 $0.00 $0.00 $2,574.36 $2,796.07 $2,680.64 $0.00 $0.00 $2,653.20 $2,866.96 $2,762.23 $0.00 $0.00 $2,389.35 $2,644.52 $2,522.09 $0.00 $0.00 $2,475.13 $2,726.23 $2,600.60 $0.00 $0.00 $2,224.00 $2,510.25 $2,380.62 $0.00 $0.00 $2,295.58 $2,576.90 $2,445.06 $0.00 $0.00 $2,103.52 $2,428.81 $2,276.27 $0.00 $0.00 $2,163.31 $2,469.23 $2,328.14 $0.00 $0.00 $2,004.75 $2,375.19 $2,207.25 $0.00 $0.00 $2,044.60 $2,388.95 $2,235.97 $0.00 $0.00 $1,864.18 $2,259.93 $2,085.19 $0.00 $0.00 $1,938.16 $2,310.88 $2,145.82 $0.00 $0.00 $1,729.56 $2,134.77 $1,966.24 $0.00 $0.00 $1,808.67 $2,222.09 $2,035.94 $0.00 $2,941.32 $1,593.22 $2,012.48 $1,840.29 $0.00 $3,065.62 $1,668.27 $2,085.34 $1,907.86 $0.00 $2,701.73 $1,470.24 $1,892.83 $1,717.95 $0.00 $2,820.05 $1,527.53 $1,952.34 $1,773.90 $2,730.40 $2,473.69 $1,358.79 $1,786.56 $1,616.88 $0.00 $2,586.30 $1,407.43 $1,833.92 $1,653.54 $2,614.12 $2,256.64 $1,263.28 $1,714.46 $1,535.04 $2,659.30 $2,363.82 $1,304.56 $1,750.43 $1,571.41 $2,398.55 $2,050.04 $1,164.34 $1,620.64 $1,436.26 $2,492.99 $2,152.06 $1,210.54 $1,656.52 $1,481.13 $2,105.32 $1,853.40 $1,052.66 $1,495.50 $1,322.24 $2,237.35 $1,950.51 $1,107.81 $1,552.45 $1,374.76 $1,839.15 $1,666.24 $955.63 $1,382.62 $1,218.43 $1,959.65 $1,758.66 $1,003.72 $1,438.91 $1,270.15 $1,658.16 $1,488.09 $870.53 $1,299.30 $1,130.56 $1,723.36 $1,576.06 $908.37 $1,336.23 $1,167.09 $1,497.74 $1,318.53 $791.12 $1,214.70 $1,049.44 $1,592.86 $1,402.26 $837.06 $1,262.03 $1,093.76 $1,327.30 $1,157.13 $708.82 $1,109.71 $953.41 $1,418.72 $1,236.83 $749.79 $1,167.01 $1,004.93 $1,118.20 $1,003.52 $627.87 $1,012.17 $863.32 $1,226.09 $1,079.38 $668.19 $1,070.23 $908.54 $993.11 $857.30 $557.25 $937.43 $783.63 $1,045.70 $929.51 $587.85 $971.00 $817.69 $2,770.67 $2,226.89 $1,479.98 $2,770.67 $2,226.89 $920.63 $786.86 $520.13 $893.81 $742.44 Palm Beach Gardens Police Officers' Pension Fund ‐ Share Plan Allocation Options Example 4:  Projected Annual Allocations to a Member Who Currently Has 5 Years of Service, Enters DROP 1/1/2037, Leaves DROP 1/1/2042, and Lives to 1/1/2067 Fiscal Year Ending Option 1: Allocations are to Actives Only Option 1a: Allocations  are to Actives and DROP members Only Option 2: Allocations are to all Actives and Retirees Option 3: Allocations are to Actives and Future Retirees Only Option 3a: Allocations are to Actives  (Incl. DROP  members) & Future Retirees     Palm Beach Gardens Police Officers’ Pension Fund 12 GRS Retirement Consulting   2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 TOTALS: $0.00 $0.00 $32,797.39 $0.00 $0.00 $0.00 $0.00 $1,864.18 $0.00 $0.00 $0.00 $0.00 $1,729.56 $0.00 $0.00 $0.00 $0.00 $1,808.67 $0.00 $0.00 $0.00 $0.00 $1,593.22 $0.00 $0.00 $0.00 $0.00 $1,668.27 $0.00 $0.00 $0.00 $0.00 $1,470.24 $0.00 $0.00 $0.00 $0.00 $1,527.53 $0.00 $0.00 $0.00 $0.00 $1,358.79 $0.00 $0.00 $0.00 $0.00 $1,407.43 $0.00 $0.00 $0.00 $0.00 $1,263.28 $0.00 $0.00 $0.00 $0.00 $1,304.56 $0.00 $0.00 $0.00 $0.00 $1,164.34 $0.00 $0.00 $0.00 $0.00 $1,210.54 $0.00 $0.00 $0.00 $0.00 $1,052.66 $0.00 $0.00 $0.00 $0.00 $1,107.81 $0.00 $0.00 $0.00 $0.00 $955.63 $0.00 $0.00 $0.00 $0.00 $1,003.72 $0.00 $0.00 $0.00 $0.00 $870.53 $0.00 $0.00 $0.00 $0.00 $908.37 $0.00 $0.00 $0.00 $0.00 $791.12 $0.00 $0.00 $0.00 $0.00 $837.06 $0.00 $0.00 $0.00 $0.00 $708.82 $0.00 $0.00 $0.00 $0.00 $749.79 $0.00 $0.00 $0.00 $0.00 $627.87 $0.00 $0.00 $0.00 $0.00 $668.19 $0.00 $0.00 $0.00 $0.00 $557.25 $0.00 $0.00 $0.00 $0.00 $587.85 $0.00 $0.00 $0.00 $0.00 $1,479.98 $0.00 $0.00 $0.00 $0.00 $520.13 $0.00 $0.00 Palm Beach Gardens Police Officers' Pension Fund ‐ Share Plan Allocation Options Example 5:  Projected Annual Allocations to a Retired Member who Exited the DROP Prior to 8/2016 and Lives to 1/1/2045 Fiscal Year Ending Option 1: Allocations are to Actives Only Option 1a: Allocations  are to Actives and DROP members Only Option 2: Allocations are to all Actives and Retirees Option 3: Allocations are to Actives and Future Retirees Only Option 3a: Allocations are to Actives  (Incl. DROP  members) & Future Retirees       DEERFIELD BEACH TAMPA 1715 N WESTSHORE BOULEVARD, SUITE 750 • TAMPA, FL 33607 • TEL (877) 382-5268 • FAX (813) 301-1295 www.salemtrust.com SALEM TRUST COMPANY IS A SUBSIDIARY OF U.S. FIDUCIARY SERVICES, INC., AN EMPLOYEE-OWNED COMPANY. Our Definition of Reliability: The vision of Salem Trust Company is “To be the custodian demanded by public sector retirement plans and institutional clients.” To track, analyze, and ultimately improve the reliability of our service to you, we developed the Salem Trust “Service Report Summary” to track 5 primary components of a comprehensive quarterly performance scorecard containing 17 discrete tasks, also available by request. Each month, based on data used by our independent auditors and government regulators, the report objectively compares how we have performed in relation to our performance goals for essential services. Our objective is to deliver better service to you by analyzing how the average performance can be improved. Over time, with your help, we will launch other measurements of service performance. Salem Trust Service Report Summary For the period ending June 30, 2017 Published Date: August 1, 2017 OUR COMMITMENT TO Reliability North Miami Beach, FL Salem Trust Service Report Summary page 2 Published: August 1, 2017 92% 93% 94% 95% 96% 97% 98% 99% 100% Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr'17 May'17 Jun'17 Statement Production Actual Monthly Performance Statement Production Category  Goal 92% 93% 94% 95% 96% 97% 98% 99% 100% Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr'17 May'17 Jun'17 Trade Settlements Actual Monthly Performance Trade Settlements Category Goal 92% 93% 94% 95% 96% 97% 98% 99% 100% Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr'17 May'17 Jun'17 Income Posting  Actual Monthly Performance Income Posting Category  Goal Client Statement Production: Tracks when statements are released to our clients. Trade Settlements: Measures how many securities are posted by their settlement dates. Income Posting: Measures all types of income, including interest, dividends, capital gains and pay downs. Salem Trust Service Report Summary page 3 Published: August 1, 2017 92% 93% 94% 95% 96% 97% 98% 99% 100% Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr'17 May'17 Jun'17 Cash Processing Actual Monthly Performance Cash Processing Average Category Goal 92% 93% 94% 95% 96% 97% 98% 99% 100% Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr'17 May'17 Jun'17 Corporate Actions Actual Monthly Performance Corporate Actions Category Goal Cash Processing: Tracks when wires, ACHs and checks are produced or transmitted. Corporate Actions: Measures the completion of stock splits, company reorganizations and stock calls. Client Service Totals as of June 20, 2017: Client relationships • Client assets under administration: $7.4 billion • Client relationships: 220 Client service ratio • Full-time Salem Trust client services employees: 7 • Average number of client relationships per Salem Trust relationship manager: 55 Benefit payments • Monthly recurring payments made in past 12 months: 75,612 • Lump sum payments made in past 12 months: 1,263 Securities movement • Number of security positions held: 28,571 (excluding money market funds) • Number of securities trades processed in past 12 months: 143,006 Salem Trust Service Report Summary page 4 Published: August 1, 2017 Discrete Tasks per Service Category: Listed below are the individual tasks, with their goals, for each category tracked in the comprehensive quarterly performance scorecard. The graphs in this Salem Trust Service Report Summary average all discrete tasks within a category. Client statement production performance base: • Standard statements released for print within 5 business days: 99% • Employee benefit statements release for print within 10 business days: 95% Trade settlements performance base: • Money market trades posted on settlement date: 99% • Mutual fund trades posted on settlement date: 95% • DTC and Fed trades posted on settlement date: 95% Income posting category performance base: • Money market dividends posted within 1 business day of payable date: 99% • Mutual fund dividends and capital gains distributions posted within 3 business days of payable date: 95% • Book-entry DTC dividends posted within 1 business day of payable date: 95% • Book-entry Fed interest posted within 1 business day of payable date: 85% • MBS, CMO & asset-backed principal paydowns posted within 2 business days of payable date: 90% • MBS, CMO & asset-backed interest posted within 2 business days of payable date: 90% Cash processing category performance base: • Wire transfers transmitted on same business day: 99% • ACH transfers transmitted on same business day: 99% • Checks produced on same business day: 99% Corporate actions category performance base: • Stock splits & stock dividends posted within 1 business day of ex-date: 95% • Exchanges, spinoffs, mergers & all other reorgs posted within 1 business day after receipt: 95% • Maturities & full calls posted within 1 business day of maturity or call date: 95% Investment products and services are not bank deposits or obligations of, or guaranteed or endorsed or otherwise supported by, Salem Trust Company, its parent company or any affiliate, are not federally insured or guaranteed by the United States Government, Federal Deposit Insurance Corporation, Federal Reserve Board or any other governmental agency, and are subject to investment risks, including possible loss of the principal amount invested. Investments are: IN NO EVENT WILL SALEM TRUST COMPANY OR ITS AFFILIATES BE LIABLE FOR ANY DAMAGES, INCLUDING WITHOUT LIMITATION DIRECT OR INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES ARISING IN CONNECTION WITH THIS PUBLICATION OR USE THEREOF BY ANY PARTY OR IN CONNECTION WITH ANY ERROR OR OMISSION.