HomeMy WebLinkAboutAgenda GEPB 062509City of Palm Beach Gardens
10500 N. Military Trail
Palm Beach Gardens, FL 33410
GENERAL EMPLOYEES PENSION FUND
NOTICE OF MEETING AND AGENDA
Please take notice that the Board of Trustees of the City of Palm Beach Gardens will
conduct a meeting of the board at the above location on June 25th, 2009 at 2:OOPM in
Council Chambers.
Old Business: Approval of 2/09/09 minutes
New Business:
Report from Foster & Foster
Approval of Bills
Adjournment
DISABILITY INFORMATION
In accordance with the Disabilities Act and F.S.S.286.26, persons with disabilities
needing special accommodation to participate in this proceeding should contact the
Human Resource Department no later then seven days subsequent to the proceeding at
(561) 799 - 4223 for assistance, if hearing impaired, telephone the Florida Relay Service
Number at 800 - 955 - 8770 (VOICE) for assistance.
APPEAL NOTICE
If a person decides to appeal any decision made by the Board, with respect to any matter
considered at such meeting or hearing, he will 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.
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CITY OF PALM BEACH GARDENS
GENERAL EMPLOYEE PENSION BOARD
REGULAR MEETING
FEBRUARY 9,2009
The regular meeting was called to order at 1:05 p.m. by Chair Allan Owens.
I. ROLLCALL
PRESENT:
Brandon Dorsey
ABSENT: None
ALSO PRESENT Sarah Varga, Accountant; Scott Christiansen, Board Attorney
11. OLD BUSINESS
Jami Smith made a motion for the approval ofthe August 25,2008 minutes.
Dindial Laliie seconded.
hlotion passed, 5-0.
111. NEW BUSINESS
Brandon Dorsey made a motion to reorder the agenda and move The Bodghan Group report to
iter 1 and the Rockwood Capital Advisors report to item 2.
Jami Smith seconded.
Motion passed, 5-0.
Bryan Bakardiiev, CFA, The Bogdhan Group, reported on the regular quarterly report and a
revised investment policy statement.
Kenneth Steele stated that his opinion was the Board wanted to be fully invested at 75-percent at
market. Discussion ensued. The Board asked the consultants to review and come back with
suggestions.
Attorney Christiansen will prepare an Ordinance removing the 65-percent limitation and use
the 75-percent at market limitation instead.
Andrew Holterieve. Manaeine Partner, Rockwood Capital Advisors, LLC, reported on the
portfolio summary of assets, performance and market value changes.
Attorney Christiansen reported on summary plan description.
Brandon Dorsev made a motion to accept the revised Summary Plan Description dated
February 1, 2009.
Jami Smith seconded.
Motion passed, 5-0.
Attorney Christiansen continued his report. Discussion ensued.
Jami Smith made a motion authorizing the Board Attorney to change the language taking out
the 65-percent at cost and transmitting the Ordinance and the letter to the City Manager’s office
and the actuary for their opinion on the impact.
Dindial Laliie seconded.
Motion passed, 5-0.
Chair Owens announced the passing of Dana Mack.
Attorney Christiansen stated it is Board’s responsibility to locate the beneficiary.
SELECT BOARD OFFICERS
Kenneth Steele made a motion nominating Allan Owens as Chair.
Jami Smith seconded.
Motion passed, 5-0.
Allan Owens, Chair; Dindial Laljie, Secretary; Jami Smith; Kenneth Steele;
GENERAL EMPLOYEE PENSION BOAROSPECIAL MEETING
02.09’09
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Jami Smith made a motion nominating Dindial Laljie as Secretary.
Brandon Dorsey seconded.
Motion passed, 5-0.
Payment of quarterly statements and fees were announced.
Jami Smith made a motion for approval of payment of invoices.
Dindial Laliie seconded.
Motion oassed. 5-0.
IV. ADJOURNMENT
Kenneth Steele made a motion to adjourn.
Jami Smith seconded.
Motion passed, 5-0.
The next regularly scheduled meeting will be August 10,2009.
APPROVED:
Allan Owens. Chair
Dindial Laljie, Secretary
Kenneth Steele
Jami Smith
Brandon Dorsey
ATTEST:
Donna M. Cannon
Municipal Services Coordinator
NOTE: These minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of
the meeting. A verbatim audio record is available from the Office of the City Clerk.
All referenced attachments on file in the Office of the City Clerk.
GENERAL EMPLOYEE PENSION BOARD SPECIAL MEETING
02‘09’09
PAGE 2
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CITY OF PALM BEACH GARDENS
RETIREMENT PIAN FOR EMPLOYEES
ACTUARIAL VALUATION REPORT
AS OF OCTOBER 1,2008
CONTRIBUTIONS APPLICABLE TO THE
PLANlFlSCAL YEAR ENDED SEPTEMBER 30,201 0
Foster&Foster,,. I
1 Actuarial Consultants for Public Pension Plans
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May 14,2009
Board of Trustees
City of Palm Beach Gardens
Retirement Plan for Employees
10500 North Military Trail
Palm Beach Gardens, Florida 33410
Re: City of Palm Beach Gardens
Retirement Plan for Employees
Dear Board:
We are pleased to present to the Board this report of the annual actuarial valuation of
the City of Palm Beach Gardens Retirement Plan for Employees. The valuation was
performed to determine whether the assets and contributions are sufficient to provide
the prescribed benefits and to develop the appropriate funding requirements for the
applicable plan year@).
The valuation has been conducted in accordance with generally accepted actuarial
principles and practices, including the applicable Actuarial Standards of Practice as
issued by the Actuarial Standards Board, and reflects laws and regulations issued to
date pursuant to the provisions of Chapter 112, Florida Statutes, as well as applicable
federal laws and regulations. In our opinion, the assumptions used in this valuation, as
adopted by the Board of Trustees, represent reasonable expectations of anticipated
plan experience.
In conducting the valuation, we have relied on personnel, plan design, and asset
information supplied by the Board of Trustees and the City, financial reports prepared
by the custodian bank, Salem Trust, and the actuarial assumptions and methods
described in the Actuarial Assumptions section of this report. While we cannot verify
the accuracy of all this information, the supplied information was reviewed for
consistency and reasonableness. As a result of this review, we have no reason to
doubt the substantial accuracy of the information and believe that it has produced
appropriate results. This information, along with any adjustments or modifications, is
summarized in various sections of this report.
The undersigned is familiar with the immediate and long-term aspects of pension
valuations, and meets the Qualification Standards of the American Academy of
Actuaries necessary to render the actuarial opinions contained herein. All of the
sections of this report are considered an integral part of the actuarial opinions.
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Board of Trustees
May 14,2009
Page Two
To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the
program has any direct financial interest or indirect material interest in the City of Palm
Beach Gardens, nor does anyone at Foster & Foster, Inc. act as a member of the Board
of Trustees of the City of Palm Beach Gardens Retirement Plan for Employees. Thus,
there is no relationship existing that might affect our capacity to prepare and certlfy this
actuarial report.
If there are any questions, concerns, or comments about any of the items contained in
this report, please contact me at 239-433-5500.
Respectfully submitted,
Foster & Foster, Inc.
n
By:
Patrick T. Donlan. MAAA . .. ~
Enrolled Actuary k08-6595
PTD\mjg
Enclosures
Section
I
II
a. Derivation of Unfunded
Actuarial Accrued Liability 9
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IV
TABLE OF CONTENTS
Title
Introduction
Page
a. Summary of Report
b. Changes Since Prior Report
c. Requirements of Chapter 112,
Part VII, Florida Statutes
Valuation Information
1
3
4
b. Actuarial Assumptions and
Funding Methods
c. Valuation Notes
Trust Fund
Member Statistics
a. Eligibility for Retirement
b. Statistical Data
c. Age and Service Distribution
d. Member Reconciliation
Summary of Plan Provisions
Governmental Accounting Standards
Board Statements No. 25 and No. 27
Disclosure Information
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23
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SECTION I
INTRODUCTION
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SUMMARY OF REPORT
The regular annual actuarial valuation of the City of Palm Beach Gardens
Retirement Plan For Employees, performed as of October 1,2008, has been completed,
and the results are presented in this Report. The results of this valuation are applicable to
the planfiscal year ended September 30,2010.
The funding requirements, compared with the amounts developed in the October 1,
2007, actuarial valuation, are as follows:
Valuation Date 1011 E007 10/1/2008
Applicable PlanK-iscal Year End 9/30/2009 913012010
Total Required Contribution $69,128 $87,325
% of Total Annual Payroll 48.1 % 53.0%
Member Contributions (Est.) 8,625 9,888
Balance from City 60,503 77,437
% of Total Annual Payroll 42.1% 47.0%
As can be seen, the Total Required Contribution has increased both in dollar
amount and when expressed as a percentage of Total Annual Payroll. These increases
are the result of net unfavorable actuarial experience during the last 12 months. The
principal components of unfavorable experience included a 3.0% investment return
(Actuarial Asset basis) that was less than the 8.0% assumption, average salary increases
that exceeded the assumed rate and no turnover. Because the primary component of the
funding requirement is now the amortization of the unfunded actuarial accrued liability,
which is not affected by payroll, the percentages of payroll are not a good indicator of the
health of the plan.
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There were two changes to the methodology in conjunction with this report that are
described on the following page.
The balance of this Report presents additional details of the actuarial valuation and
the general operation of the Fund. The undersigned would be pleased to meet with the
rustees in order to discuss the Report and any pending questions concerning its Board of
contents.
Respectfully submitted,
FOSTER & FOSTER, INC.
By:
By:
Patrick T. Donlan. MAAA
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Plan Chanqes Since Prior Valuation
Ordinance 6, 2008 was adopted since the prior valuation. This ordinance
changed the Board of Trustees and had no impact on the funding requirements
of the program.
Actuarial Assumotionhlethod Changes Since Prior Valuation
This valuation includes two methodology changes as follows:
1. Actuarial Value of Assets
This Plan utilizes an asset smoothing technique as allowed by IRC
Section 412(c). In 2007, the Actuarial Standards Board adopted Actuarial
Standard of Practice (ASOP) Number 44. This new Standard of Practice
requires the removal of any "bias" which would result in either an
overstatement or understatement of Actuarial Assets relative to Market
Value. For purposes of satisfying this requirement, the Actuarial Value of
Assets, determined as of October 1, 2008, includss an adjustment of
$192,344. This one-time increase will ensure the removal of any
differences between Actuarial and Market Value, given hypothetical future
investment returns of 8%.
2. Amortization of the Unfunded Liability
For the purpose of compliance with legislative intent (as described in
Chapter 112, Part VII, Florida Statutes) and to maximize the likelihood of
state acceptance, additions to the Unfunded Actuarial Accrued Liability will
be amortized as follows:
Existinq Bases Bases on and after 1011 IO8
Gains and Losses 20
MethodslAssumptions no change
10
20
Amendments no change 30
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4
Comparative Summary of Principal Valuation Results
A. Participant Data
Number Included
Actives
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
Total
Total Annual Payroll
Payroll Under Assumed Ret. Age
Annual Rate of Payments to:
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
B. Assets
Actuarial Value
Market Value
C. Liabilities
Present Value of Benefits
Retirement Benefits
Disability Benefits
Death Benefits
Vested Benefits
Refund of Contributions
Active Members
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
Total
New Methods
10/1/20O8
2
10
2
3
1
18
$149,940
149,940
269,581
20,033
31,392
6,873
2,823,246
2,422,057
499,424
20,838
13,255
111,123
0
2,431,189
196,382
84,252
68,861
3,425,323
Old Methods
10/1/2008
2
10
2
3
1
18
$149,940
149,940
269,581
20,033
31.392
6,873
2,630,902
2,422,057
499,424
20,838
13,255
11 1,123
0
2,431,189
196,382
84,252
68,861
3,425,323
Old Methods
10/1/2007
2
10
2
3
1
18
$1 30,793
130,793
269,581
20,033
31,392
6,873
2,761,142
3,089,245
375,286
15,214
10,361
115,168
0
199,933
77,778
70,015
3,348 I 584
2,484,829
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C. Liabilities - (Continued)
Present Value of Future Salaries
Present Value of Future
Member Contributions
EAN Normal Cost (Retirement)
EAN Normal Cost (Disability)
EAN Normal Cost (Death)
EAN Normal Cost (Vesting)
EAN Normal Cost (Refunds)
Total Normal Cost (Entry Age Method)
Present Value of Future
Normal Costs (Entry Age)
Accrued Liability (Retirement)
Accrued Liability (Disability)
Accrued Liability (Death)
Accrued Liability (Vesting)
Accrued Liability (Refunds)
Accrued Liability (Inactives)
Total Actuarial Accrued Liability
Unfunded Actuarial Accrued
Liability (UAAL)
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactives
Actives
Member Contributions
5
New Methods Old Methods Old Methods
10/1/2008 10/1/2008 1011/2007
1,533,649 1,533,649 1,390,428
92,019 92,019 83,426
9,971 9,971 7,818
531 531 435
410 410 333
1,661 1,661 1,904
0 0 0
12,5/3 12,513 10,490
120,342 120,342 106.51 7
406.989 406.989 298.044
15:623 151623 101728
9,479 9,479 7,078
92,206 92,206 93,662 n n n
2,780,684 2,780,684 2,832,555
3,304,981 981 3,242,068
481,735 674,079 480,926
2,780,684 2,780,684 2,832,555
102,019 102,019 57,028
78,366 78,366 69,369
Total 2,961,069 2,961,069 2,958,952
Non-vested Accrued Benefits 0 0 0
Total Present Value Accrued
Benefits
2,961,069 2,961,069 2,958.952
Increase (Decrease) in Present Value of Accrued Benefits Attributable to:
Plan Amendments 0 0
Assumption Changes 0 0
New Accrued Benefits 0 73,737
Benefits Paid 0 (296,477)
Interest 0 224,857
Other 0 0
Total: 0 2,117
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Valuation Date
Applicable to Fiscal Year Ending
E. Pension Cost
Normal Cost (with interest)
% of Projected Annual Payroll'
Administrative Expenses (with int.)
% of Projected Annual Payroll'
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 26 years
(as of 1011/08)
Total Required Contribution
Expected Member Contributions
Expected City Contrib.
YO of Projected Annual Payroll'
% of Projected Annual Payroll'
% of Projected Annual Payroll*
% of Projected Annual Payroll'
F. Past Contributions
Plan Years Ending:
Total Required Contribution
City Requirement
Actual Contributions Made:
Members
City
Total
G. Net Actuarial Gain (Loss)
New Methods
10/112008
9/30/2010
$13,926
8.5
14,156
8.6
59,243
35.9
87,325
53.0
9,888
6.0
77,437
47.0
9/30/2008
109,554
91,488
8,996
91,488
100,484
(235,165)
6
Old Methods Old Methods
1011 I2008 1011 12007
9/30/20 10 9/30/2009
$13,926 $11,619
8.5 8.1
14,156 12,110
8.6 8.4
63,361 45,398
38.4 31.6
91,443 69,128
55.5 48.1
9,888 8,625
6.0 6.0
81,555 60,503
49.5 42.1
Contributions developed as of 10/1/08 are expressed as a percentage of projected
annual payroll at 04/1/10 of $164,794.
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H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued
Liability as of:
Year
2008
2009
201 0
2020
2030
2034
Projected Unfunded
Accrued Liability
481,735
462,507
441,744
189,764
78,489
0
I. (i) 3 Year Comparison of Actual and Assumed Salary Increases
Actual
Year Ended 9130/2008 14.6%
Year Ended 913012007 2.5%
Year Ended 913012006 5.8%
(ii) 3 Year Comparison of Investment Return on Actuarial Value
Actual
Year Ended 9130/2008 3.0%
Year Ended 913012007 9.7%
Year Ended 913012006 8.6%
(iii) Average Annual Payroll Growth
(a) Payroll as of:
(b) Total Increase
(c) Number of Years
(d) Average Annual Rate
Assumed
6.5%
6.5%
6.5%
Assumed
8.0%
8.0%
8.0%
10/1/2008 $149,940
1011 I1 998 607,444
-75.3%
10.00
-13.1%
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Statement by Enrolled Actuary
This actuarial valuation was prepared and completed by me or under my direct
supervision, and I acknowledge responsibility for the results. To the best of my knowledge,
the results are complete and accurate, and in my opinion, the techniques and assumptions
used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida
Statutes. There is no benefit or expense to be provided by the plan andlor paid from the
plan's assets for which liabilities or current costs have not been established or otherwise
taken into account in the valuation. All known events or trends which may require a material
increase in plan costs or required contribution rates have been taken into account in the
valuation.
A copy of this Report is to be furnished to the Division of Retirement within 60 days
of receipt from the actuary at the following address:
Mr. Keith Brinkman
Bureau of Local
Retirement Systems
P. 0. Box 9000
Tallahassee, FL 32315-9000
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SECTION II
VALUATION INFORMATION
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Reconciliation and Derivation of Unfunded Actuarial Accrued Liability
As of October 1,2008
UAAL as of October 1,2007
Sponsor (City) Normal Cost
Interest on (1) and (2)
Sponsor (City) Contributions
Interest on (4)
Expected UAAL as of October 1,2008
(1 )+(2)+(3)-(4>(5)
Actual UAAL as of October 1,2008
Actuarial Gain (Loss):
Method Change:
Date
Established
Method ** 101112004
Loss 1011 12004
Loss 1011/2005
Gain 1011/2006
Gain 101112007
Loss 10/1/2008
Years
Remaining
26
20
20
20
20
10
101112008
Amount
256,124
256,124
44,476
(3,775)
(114,035)
235,165
480,926
13,576 *
39,560
91,488
3,660
438,914
481,735
(235,165)
192,344
Amortization
Amount
21,938
24,154
4,194
(356)
(10,754)
32,450
Method Change 101112008 20 1192.3441 (1 8,1401
481,735 53,488
’ Includes $1 0,934 for non-investment related expenses.
** It is assumed that 50% of the cost method change base from 2004 was attributable to
unfavorable actuarial experience prior to that date. This loss will be amortized over a 20
year period effective with this valuation (compared to 26 years). Additionally, prior gain and
loss bases are amortized over 20 years (compared to 30 years), and new gain and loss
bases on and after October 1, 2008 will be amortized over 10 years.
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Mortalitv Rates
Termination Rates
Disabilitv Rates
Retirement Aae
Earlv Retirement
Interest Rate
Salarv Increases
Pavroll Increase
Administrative ExDenses
YO Terminating
A92 During the Year
20 17.2%
30 15.0
40 8.2
50 1.7
60 0.5
Assumptions
ACTUARIAL ASSUMPTIONS AND COST METHODS
I
Entry Age Normal Actuarial Cost Method.
1983 Group Annuity Mortality Table.
See Tables below.
See Tables below.
Age 62. Also, any member who has
reached Normal Retirement is assumed to
continue employment for one additional
year.
Commencing upon eligibility for Early
Retirement (age 55 with 10 years of
service), members are assumed to retire
with an immediate beneft at the rate of 2%
per year.
8% per year, compounded annually, net of
investment related expenses.
6.5% per year until the assumed retirement
age; see Table below. In addition,
projected salary in the year of retirement is
increased 20% to account for non-regular
compensation.
None.
$12,781 added to Normal Cost.
% Becoming Disabled
Durinq the Year
Current Salary as %
of Salarv at aae 65
0.03% 5.9%
0.04 11.0
0.07 20.7
0.18 38.9
0.90 73.0
Funding Method
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VALUATION NOTES
Total Annual Pavroll is the projected annual rate of pay for the year preceding the
valuation date of all covered members.
Present Value of Benefits is the single sum value on the valuation date of all future
beneffis to be paid to current Members, Retirees, Beneficiaries, Disability Retirees
and Vested Terminations.
Normal Current Year's) Cost is the current year's cost for benefits yet to be funded.
Unfunded Actuarial Accrued Liabilitv (UAAL) is a liability which arises when a pension
plan is initially established or improved and such establishment or improvement is
applicable to all years of past service. Under the Entry Age Normal Actuarial Cost
Method, there is also a new UAAL created each year equal to the actuarial gain or
loss for that year.
Total Reauired Contribution is equal to the Normal Cost plus an amount sufficient to
amortize the Unfunded Accrued Liability over no more than 30 years. The required
amount is adjusted for interest according to the timing of contributions during the
year.
Entrv Aae Normal Actuarial Cost Method is the method used to determine required
contributions under the Plan. The use of this method involves the systematic funding of
the Normal Cost (described above) and the Unfunded Accrued (Past Service) Liability.
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SECTION 111
TRUST FUND
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ASSETS
Cash and Cash Equivalents:
Monev Market
City of Palm Beach Gardens
General Employees' Pension Plan
BALANCESHEET
September 30, 2008
COST VALUE
46.159.34
Cash (109.37)
Total Cash and Equivalents 46,049.97
Receivable:
City Contributions
Accrued Income
22,871.99
7,812.91
Total Receivable 30,684.90
Investments:
U S Govt & Agencies
Corporate Bonds
Common Stock
Common Stock - ADR
Foreign Securities
Mutual Funds:
Exchange Traded International Equity
418,336.54
302,8 1 8.70
1,343,732.37
33,355.05
173,022.28
116,573.94
Total Investments 2,387,838.88
TOTAL ASSETS 2,464 I 573.75
LIABILITIES AND NET ASSETS
Liabilities:
Payable:
Unpaid Investment Expenses
Unpaid Administrative Expenses
Total Liabilities
Net Assets:
Total Net Assets
TOTAL LIABILITIES AND NET ASSETS
Active and Retired Members' Equity
8,141.76
1,201.86
9,343.62
2,455,230.13
2,455.230.13
2,464,573.75
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MARKET VALUE
46,159.34
(109.37)
46,049.97
22,87 1.99
7,812.91
30,684.90
426,891.30
273,474.1 5
1,380,943.20
126,626.30
101,878.60
2,354,665.50
2,431,400.37
44,851.95
8,141.76
1,201.86
9,343.62
2,422,056.75
2,422,056.75
2,431,400.37
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Contributions:
Member
City
City of Palm Beach Gardens
General Employees' Pension Plan
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
September 30,2008
Market Value Basis
INCOME
8,996.44
91,487.96
Total Contributions
Earnings from Investments
Interest & Dividends
Miscellaneous Income
Net Realized Gain (Loss)
Unrealized Gain (Loss)
Total Earnings and Investment Gains
Administrative Expenses:
Investment Related*
Other
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100,484.40
69,276.65
65.96
(26,381.95)
(475,050.07)
(432,089.41)
EXPENSES
26,325.27
12,780.34
Total Expenses
Distributions to Members:
Benefit Payments
Return of Contributions
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year
*Investment Related expenses include investment advisory,
custodial and performance monitoring fees.
39,105.61
296,477.16
0.00
296,477.16
(667,187.78)
3,089,244.53
2,422,056.75
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City of Palm Beach Gardens
General Employees' Pension Plan
ACTUARIAL ASSET VALUATION
September 30,2008
Actuarial Assets for funding purposes are developed by increasing the Actuarial Assets used
in the most recent actuarial valuation of the Fund by the average annual market value rate of
return (net of investment related expenses) for the past four years, but are limited to 120% of
Market Value, if less.
Details of the derivation are set forth as follows:
Plan Year End
9/30/05
9/30/06
9/30/07
9/30/08
Annualized Rate of Return
for prior four (4) years:
(A) 10/01/07 Actuarial Assets:
Rate of Return"
7.81%
6.95%
15.13%
-15.36%
(I) Net Investment Income:
1. Interest and Dividends
2. Realized Gains (Losses)
3. Change in Actuarial Value
4. Investment Related Expenses Total
2.96%
$2,761,141.87
69,342.61
(26.381.951
(9) 10/01/08 Actuarial Assets: $2,630,902.03
Actuarial Asset Rate of Return = 21/(A+B-I): 2.96%
10/01/08 Limited Actuarial Assets: $2,630,902.03
(Lesser of Actuarial Assets or 120% of Market Value)
"Market Value Basis, net of investment related expenses
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Contributions:
Member
City
City of Palm Beach Gardens
General Employees' Pension Plan
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
September 30,2008
Actuarial Asset Basis
INCOME
8,996.44
91,487.96
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Total Contributions
Earnings from Investments
Interest & Dividends
Miscellaneous Income
Net Realized Gain (LOSS)
Change in Actuarial Value
Total Earnings and Investment Gains
Administrative Expenses:
Investment Related'
Other
100,484.40
69,276.65
65.96
(26,381.95)
61,897.87
104,858.53
EXPENSES
26,325.27
12,780.34
Total Administrative Expenses
Distributions to Members:
Benefit Payments
Return of Contributions
Total Distributions
Change in Net Assets for the Year
Net Assets Beginning of the Year
Net Assets End of the Year**
'Investment Related expenses include investment advisory,
custodial and performance monitoring fees.
**Net Assets may be limited for actuarial consideration
39,105.61
296,477.16
0.00
296,477.16
(1 30,239.84)
2,761,141.87
2,630,902.03
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Adjustment to Actuarial Value of Assets
Actuarial Value of Assets at 9/30/08:
(including DROP Balances)
Market Value of Assets at 9/30/08:
(including DROP Balances)
2,630,902
2,422,057
Necessary Adjustment to Actuarial Value of Assets: 192,344
Projected Actuarial and Market Value of Assets
ALA - MVA Smoothed Return*
9/30/2009 2,907,977 2,615,821 3.00%
9/30/2010 3,002,575 2,825,087 3.25%
9/30/2011 3,051,094 3,051,094 1.62%
9/30/2012 3,295,181 3,295,181 8.00%
*Smoothed Return assuming that the plan meets the 8% assumption for each of the
subsequent fiscal years.
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SECTION IV
MEMBER STATISTICS
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ELlGlBlLTY FOR RETIREMENT
Members are eligible for Normal Retirement based upon the following criteria:
1) Attained Age 62
Members are eligible for Early Retirement based upon the following criteria:
1) Attained Age 55 with 10 Years of Credited Service
As of the date of this valuation, the following list of Members are eligible for:
Normal Retirement Early Retirement
None None
18
STATISTICAL DATA
(Averages are salary weighted)
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10l1l2005 101112006 I011 I2007 1011 I2008
Number 5 5 2 2
Average Current Age 53.4 54.0 43.8 45.7
Average Age at Employment 35.7 35.4 28.7 29.4
Average Past Service 17.7 18.6 15.0 16.3
Average Annual Salary $51,780 $54,792 $65,397 $74,970
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AGE AND SERVICE DISTRIBUTION
PAST SERVICE
AGE 0 1 2 3 4 5-9 10-14 15-19 20-24 25-29 30+ Total I
I 15-19 0 0 000 0 0 0 0 0 0 0
I 25-29 0 0 000 0 0 0 0 0 0 0 1 30-34 0 0 000 0 0 0 0 0 0 0
1 40-44 0 0 000 0 0 0 0 0 0 0
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1 55-59 0 0 000 0 0 0 0 0 0 0
I 65+ 0 0 000 0 0 0 0 0 0 0
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20 - 24 0 0 000 0 0 0 0 0 0 0
35 - 39 0 0 000 0 1 0 0 0 0 1
45 - 49 0 0 000 0 0 0 0 0 0 0
50 - 54 0 0 000 0 0 1 0 0 0 1
60 - 64 0 0 000 0 0 0 0 0 0 0
Total 0 0 000 0 1 1 0 0 0 2
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VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation 10/1/07
b. Terminations
benefits
received
i. Vested (partial or full) with deferred
ii. Non-vested or full lump sum distribution
i. Beneficiary receiving benefits
ii. No future benefits payable
c. Deaths
d. Disabled
e. Retired
f. DROP Retired
g. Voluntary withdrawal
h. Continuing participants
i. New entrants
j. Total active life participants in valuation
2
0
0
2
0
2
2. Non-Active lives (including beneficiaries receiving benefits)
Service
Retirees,
Vested Receiving Receiving Receiving Death Disability Vested
Benefits Benefits Benefits Deferred DROP Total
a. Number prior 10 2 1 3 0 16
valuation
b. In 0 0 0 0 0 0
c. out 0 0 0 0 0 0
d. Number current 10 2 1 3 0 16
valuation
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SECTION V
SUMMARY OF PIAN PROVISIONS
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Effective Date
Original Plan
Latest Amendment
Eliqibility
s&g
Averaae Final ComDensation
SUMMARY OF PLAN PROVISIONS
(Through Ordinance 6,2008)
Credited Service
Normal Retirement
Date
Benefit
Form of Benefit
Early Retirement
Date
Benefit
December 20, 1982
2008
Full-time Employees who were members of the Plan
on 2/6/97 who are not classified as full-time Police
Officers or Firefighters.
W-2 compensation, plus all tax deferred, tax
sheltered, and tax exempt items of income.
1/12th of average Salary for the 3 best consecutive
years of the 5 years immediately preceding
retirement or termination.
Total years and completed months of service with
the City as a Gcneral Employee. Members receive
credit only for years during which Member
Contributions were made.
Age 62.
2.5% of Average Final Compensation times
Credited Service.
10 Year Certain and Life Annuity (options
available).
Age 55 and completion of 10 years of
Credited Service.
Accrued benefit, reduced l/ldh for each of the first 5
and 1/30th for each of the next 5 years that early
retirement precedes normal retirement.
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Death Benefit
Pre-Retirement
Vested
Not Vested
Post-Retirement
Vesting
Schedule
Benefit
Member Contributions
Amount
Interest
Disability
Eligibility
Benefit
Accrued benefit payable to designated
beneficiary for 10 years at the Member's Normal
Retirement Date (unreduced) or on a reduced basis
at the otherwise Early Retirement Date.
Refund of accumulated Member Contributions.
According to optional form of benefit
Selected at retirement.
Years of Service Vested %
Less than 5 0%
5 25
6 40
7 55
8 70
9 85
10 or more 100
Member will receive the vested portion of his (her)
accrued benefit at the otherwise Early or Normal
Retirement Date.
6.0% of Salary.
6.0% per year.
Total and permanent (as determined by the Board).
Benefit accrued to date of disability, payable for lie
(with a 10 year guarantee) or until recovery (as
determined by the Board).
22
SECTION VI
GOVERNMENTAL ACCOUNTING STANDARDS
BOARD STATEMENT NO. 25 AND No. 27 INFORMATION
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m- 0 m- m- m- N-
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DISCLOSURE INFORMATION PER STATEMENT NO. 27 OF THE
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
ANNUAL PENSION COSTS AND RELATED INFORMATION
Contribution rates as of 9/30/08 cny Plan Members
30.4%
6.0%
Annual pension cost 91,488
Contributions made 91,488
Actuarial valuation date 101112006
Actuarial cost method Entry Age Normal
Amortization method Level Dollar
Remaining amortization period 30 Years (as of 10/1/06)
Asset valuation method 4 Year Smooth
Actuarial assumptions:
Investment rate of return
Projected salary increase*
Includes inflation at
Post Retirement COLA
8.0%
6.5%
3.0%
0.0%
THREE YEAR TREND INFORMATION
Actuarially Percentage of Net
Year Determined Actuarially Determined Pension
Endina Contribution Contribution Obligation
9l30108 91,488 100%
913OlO7 90,703 100%
9/30/06 79,392 100%
0
0
0
Fost
Actuarial Consultants for Public Pension Plans
INVOICE
6/15/2009
INVOICE # 835
Chairman, Board of Trustees
City of Palm Beach Gardens General Employees' Retirement Board
10500 North Military Trail
Palm Beach Gardens, FL 3341 0
PAYMENT TERMS DUE DATE
Net 30 7/15/2009 PROFESSIONAL SERVICES IN ACCOUNT WITH
FOSTER 8 FOSTER, INC.
DESCRIPTION I LINETOTAL I
$4,200.00
$125.00
October 1, 2008 Actuarial Valuation and Report; preparation of member certificates;
Governmental Accounting Standards Board disclosure information.
PreDaration of Exhibit "B for attachment to the reauired Summarv Plan DescriDtion
$1,000.00 Review of proposed Ordinances and letters of no actuarial cost impact dated February 29,
2008 and February 27.2009
$205.00
Subtotal $5.530.00
Preparation for and attendance at January 8, 2007 and February 11, 2008 Board meetings
(Boards share of expenses)
Sales Tax
Thank you for your business!
Make all checks payable to Foster & Foster, lnc.
13420 Parker Commons Boulevard, Suite 104
Fori Myers, FL 33919
Phone: (239) 433-5500 Fax: (239) 481-0634 www.foster-foster.com
JUN-16-2009 TUE 09:51 AM GIBSON AND WIRT FAX NO. 8635337038 P, 01/02
#
GIBSON & WIRT, INC.
PO Drawer 59 125 East Main Street
Bartow. FL 33831
863.533.3131 Fax: 863,533,7038
Fax Cover Sheet
Date: 611 612009 Time: 9:48 AM
To:
Attn: Sara
FAX # 561.799.4134
Palm Beach Gardens, City Of
From:. Melinda A. Sporleder
Re: Fiduciary Llablllty Reriewal Quote
Number of Pages Including Cover Page:
Message
Dear Sara:
2
Travelers Insurance has provided me with the following Fiduciary Liability renewal
quote:
$1,000,000 Annual Aggregate Limit $5,000 Deductible $2,365.88 Annual premium
The premium for the expiring policy was $2,360.31, an increase of $5.57. Waiver of
Recourse is included in the premium.
Travelers offered to renew your policy based on a 2 year term, expiring on 07/01/2011.
Which means your policy will be billed on an annual premium of $2,365.88 next year.
We would not have to submit any underwriting information until the year of 201 1 (no
applications, audits, etc). We would send you a bill closer to the expiration date of the
policy. If you do not want your policy on the 2 year term, please let me know and I will
advise the company. If you choose not to renew the policy next year, the policy can be
cancelled.
At your request, we can bind coverage, I would appreciate it if you could please give
me a call after your next board meeting and let me know the board's response to the
quote. Please give me a call before the expiration date of the policy, 07/11/09.
If you should need any additional infctrmation before your next board meeting, please
give me a call, fax or ernail (msporlecler@gibsonandwirt.com) and I will assist you in
any way that I can.
JUN-16-2009 TUE 09:51 AM GIBSON AND WIRT FAX NO, 8635337038 P. 02/02
c I
I will be out of the office beginning on 06/25 and will be back on OW30109. You can
contact Steve Brown Vnandwirtxom) in my absence.
Thank you for giving us the opportunity in quoting and servicing the Board for their
insurance needs.
Sincerely yours,
x
Miinda A. Sporleder