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Home My WebLink AboutAgenda Police Pension 080213 Agenda City of Palm Beach Gardens Police Officers’ Pension Fund MEETING OF AUGUST 2, 2013 LOCATION: City Council Chambers’ 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 9 AM 1. Call Meeting To Order 2. Roll Call: • Jay Spencer, Chairman • David Pierson, Secretary • Brad Seidensticker, Trustee • Greg Mull, Trustee • Marc Glass, Trustee 3. Investment Manager Report – ICC Capital (Steve Stack) 4. Investment Consultant Report – Thistle Asset Consulting (John McCann) 5. Attorney Report – Law Offices of Perry & Jensen (Bonni Jensen) • Memo – Senate Bill 534 6. Administrator Report – Resource Centers (Audrey Ross) 7. Approval of Minutes • April 23, 2013 Regular Meeting 8. Disbursements 9. Financial Statements 10. Other Business • GRS Supplemental Actuarial Valuation Report 11. Public Comments 12. Adjourn Next Meeting Date: Thursday October 31, 2013 @ 9AM PLEASE NOTE: Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such meeting or hearing, s/he will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact the The Pension Resource Center, LLC no later than four days prior to the meeting. Minutes 4-23-13.doc Page 1 of 5 City of Palm Beach Gardens Police Officers’ Pension Fund Minutes of the Meeting Held April 23, 2013 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers’ Pension Fund was called to order at 9:05 AM by Jay Spencer in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT OTHERS PRESENT Jay Spencer, Chairman Audrey Ross (Resource Centers) David Pierson, Secretary Bonni Jensen (Law Offices of Perry & Jensen) Brad Seidensticker, Trustee Donna Kramer (PBG Clerk’s Office) Greg Mull, Trustee Max Cann (SSGA) Marc Glass, Trustee Steve Stack (ICC Capital) John McCann (Thistle Asset Consulting) Pete Strong (GRS) PRESENTATION OF THE 9/30/2012 ACTUARIAL VALUATION REPORT GRS – Presented by Pete Strong Mr. Strong reintroduced himself and stated that the first time he met the board was late last year when Mr. Palmquist was retiring. He reviewed the valuation for the fiscal year ending September 30, 2012 and stated that the City’s required contributions for the fiscal year ending September 30, 2014 is $2,712,635 or 52.62% of payroll. He noted that this is a slight increase from this year’s contributions of $2,700,762 or 44.93% of payroll. Mr. Strong explained that the increase in the City’s contributions is mainly due to the salary increases being less than expected by 15%. He reviewed the benefit changes and the assumption changes that were made during the year and how they impacted the plan this year. The plan lowered their investment assumed rate of return from 7.4% to 7.3% this year and will continue to lower it by 0.1% each year until their goal of 6.5% is met. Mr. Strong reported that the plan had a net actuarial gain of $751,599 this year due to a mix of lower than expected salary increases and also a great investment year. The plans funded ratio also increased this year to 69.1% from 66.4% last year. He reviewed the Chapter 185 monies and commented that the plan received in $455,534 from the State, which gives them a new amount of $538,552 that is being held in the reserve account for future benefit improvements (after the base amount of $412,644 is accounted for). The plans total unfunded liability this year is $22M which is an annual payment of $1.9M. Mr. Strong noted that 2008 will now fall off the 5 year smoothing chart. This will be very beneficial to the plan because 2008 was a bad investment year and we will now be replacing it with the 2012 numbers which were much better. Mr. Strong reviewed the participant data and stated that the active members decreased from 84 to 74 during the year and the DROP members and retirees increased from 46 to 54. He also reported that this plan has had an actuarial gain the last 4 years out of the last 6 years, in which Mr. Strong noted he has not seen this with any of his other clients. Lastly Mr. Strong reviewed the new reporting that is required under the SB 1128. The State now requires the plan to report its present value of benefits compared to the FRS benefits. He noted that this is not an accurate comparison because the FRS does not put in their Minutes 4-23-13.doc Page 2 of 5 required contribution amount each year and defined benefit plans are required to fund fully each year. MOTION: Mr. Seidensticker made a motion to approve the September 30, 2012 Actuarial Valuation Report as presented by the Plan’s Actuary. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5-0. Mr. Strong reviewed his memo regarding the new GASB 67 changes that were passed last summer and will be effective for the fiscal year ending September 30, 2014. The new GASB 68 changes are not in effect for City’s until the fiscal year ending September 30, 2015. He stated that the new GASB 67 requirements basically require additional footnotes and disclosures for the investment managers, but they will not be incorporated in the regular valuation and will more than likely require a separate valuation to be completed. This new valuation will be for reporting purposes only and not for pension use. Mr. Strong noted that GRS will more than likely come back in the near future with a proposed fee increase due to the new reporting requirements. Mr. Strong stated that his office prepared a response and a study in regards to the letter that the Plan received from the Division of Retirement regarding the use of their Chapter 185 revenue (know as the “Naples Letter”). He explained that based on GRS’s findings, the plan should continue to receive the Chapter 185 monies. Mr. Strong stated that this letter and study should be sent to the Division of Retirement and if approved then the Chapter 185 money (base amount) will be sent to the City to offset their contributions. Ms. Ross noted that she will send the letter to the State and await a response. PRESENTATION ON EMERGING MARKETS SSGA – Presented by Max Cann Mr. Cann introduced himself and stated that his firm is specializes in spider ETF’s. SSGA works with many institutional clients and his job is to educate clients on ETF’s and to make sure that they are using them properly. SSGA has a total of $2T in assets with 27 offices and 10 investment centers country wide. SSGA is the second largest ETF provider. Mr. Cann explained in great detail what an ETF is and how they work. All ETF’s are managed by the same managers that mange the active funds as well. Currently their ETF has 67 products within their fund and their returns can or cannot be inline with the index. Mr. Cann explained how ETF’s are invested and how they produce returns. ETF’s provide more diversification within a portfolio and they are completely transparent. Mr. Cann reported that the 1 year return for ETF’s is .8%, 3 years is 2.57%, and 5 years is 1.19%. Also the fee for ETF’s is 59 basis points. The Trustees had a lengthy discussion on ETF’s and when it is a good time to fund them. Mr. Cann noted that ETF’s are placed in a portfolio with long term intentions and they are like mutual funds, but they can be traded on a daily basis if needed. The Trustees thanked Mr. Cann for his time and presentation and stated that they will discuss ETF’s with their Consultant. Board Discussion: The Trustees had a lengthy conversation regarding ETF’s and if they would be a fit for their portfolio. Mr. McCann passed out information on other firms that offer ETF’s as well (such as Vanguard) and compared it to SSGA’s product and noted that over long term SSGA has outperformed. Mr. McCann noted that ETF’s are volatile no Minutes 4-23-13.doc Page 3 of 5 matter what company you go with, although it is a great industry to be in. The Trustees concurred that they would like to revisit ETF’s at a later time because right now they do not think it would be a good fit for their portfolio. INVESTMENT MANAGER REPORT ICC Capital – Presented by Steve Stack Mr. Stack stated that during the quarter equities out performed bonds and the amount of money that came from bonds into equities was tremendous. As of March 31, 2013 the total fund (fixed income) was negative but ahead of the benchmark at -0.10% versus -0.17%, but for the fiscal year to date they are negative and also behind the benchmark at -0.13% versus 0.21%. He noted that they are being very conservative on the fixed income side. The growth fund had a better quarter and outperformed the benchmark for the quarter at 12.38% versus 9.54%, and for the fiscal year to date they are also ahead at 14.96% versus 8.10%. Their largest weighting is in IBM and not apple. They are underweighted to the technology sector and they are also keeping their duration low. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting – Presented by John McCann Ms. McCann noted that they currently have a lot of cash sitting on the side lines because American Realty did not take the full amount during their recent capital call. Therefore Mr. McCann is recommending that the board move the cash over to the ICC Capital fixed income portfolio. The Trustees discussed and noted that they will keep the money in cash until the next capital call from American Realty. Mr. McCann reviewed the funds performance for the quarter ending March 31, 2013 and stated that the total fund net of fees outperformed the benchmark at 6.98% versus 6.51%, and for the fiscal year to date they are also ahead at 8.31% versus the benchmark at 7.61%. He reviewed the managers performance during the quarter and noted that all managers either outperformed the benchmark or where inline. ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen passed out the memo regarding a retiree that recently passed away, Charles K. Sharon. Mr. Sharon retired on May 1, 2004 with a 50% joint and survivor option, naming his wife, Catherine Sharon as the joint annuitant. In June 2005, Mr. Sharon was divorced from Catherine and in the final judgment she was not awarded to her 50% if Mr. Sharon’s pension. Then in 2007 Mr. Sharon completed a designation of beneficiary form listing his son as the beneficiary, but there was no indication at that time to change his joint annuitant. Therefore his benefit was never recalculated to take into account the younger age of the son. Ms. Jensen wanted the Trustees to confirm that based upon the facts and provisions of the plan, no benefits are payable to anyone as a result of Mr. Sharon’s death. The Trustees concurred. Ms. Ross noted that she would explain this to Mr. Sharon’s son who was listed as the beneficiary at the time of his death. Ms. Jensen provided the board with the revised DROP distribution policy. The policy now allows retirees to take DROP distributions on a monthly basis instead of a quarterly basis. The policy does state that any distribution over $35K would need to be approved by the board of Trustees before it is paid out. All other distributions under $35K can be paid out in between meetings, but must be ratified by the board of trustees at the next meeting. MOTION: Mr. Seidensticker made a motion to approve the revised DROP distribution policy as presented. Minutes 4-23-13.doc Page 4 of 5 SECOND: Mr. Mull seconded the motion. CARRIED: The motion carried unanimously 5-0. Ms. Jensen reviewed the memo regarding Senate Bill 458 and House Bill 1399. Both bills have been stalled in the house and has not been approved as of yet. Ms. Jensen noted that she will keep the board updated as more information is available. ADMINISTRATOR REPORT Resource Centers – Presented by Audrey Ross N/A MINUTES MOTION: Mr. Mull made a motion to approve the minutes from the January 31, 2013 regular meeting. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5-0. DISBURSEMENTS APPROVALS MOTION: Mr. Seidensticker made a motion to approve the disbursements. SECOND: Mr. Mull seconded the motion. CARRIED: The motion carried unanimously 4-0. FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through March 2013. The board received and filed the financial statements through March 2013. OTHER BUSINESS Mr. Glass stated that Union and the City are currently in negotiations and he would like the board to approve for GRS to complete a study reflecting what the costs would be to change the normal retirement age to 55, or 25 years of service regardless of age, and to also increase the multiplier from 2.75% to 3%. MOTION: Mr. Glass made a motion to allow GRS to perform a study on the cost of changing the normal retirement age to 55, or 25 years of service regardless of age and to also increase the multiplier from 2.75% to 3% per the Union and the City’s request. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5-0. Ms. Ross noted that the VEBA fund closed and all members have been refunded their contributions. Minutes 4-23-13.doc Page 5 of 5 Ms. Ross explained that the board uses the carrier Ullico Insurance Group for their fiduciary liability insurance. The plan just received communication that the parent company of Ullico Insurance Group, Ullico Casualty Company went into a rehabilitation order. Ms. Jensen commented that this order does not have any effect on this plan because it is the parent company that received the order, it was just for informational purposes. PUBLIC COMMENTS N/A AJOURN There being no further business, the Trustees officially adjourned the meeting at 12:08 PM. The next meeting is scheduled for Friday August 2, 2013 at 9AM. Respectfully submitted, _____________________________ DAVID PIERSON, Secretary 1 Quarter 1 Year 3 Year 5 Year Fund -3.25%1.21%5.26%7.11% Policy -3.44%-5.72%2.57%2.55% Differences 0.19%6.93%2.69%4.56% Universe n/a 39 23 12 Quarter 1 Year 3 Year 5 Year Fund -2.09%4.87%5.84%6.73% Policy -3.83%-2.16%3.33%2.28% Differences 1.74%7.03%2.51%4.45% Universe n/a 46 36 17 www.Dreyfus.com Received a good rating from Morningstar. The fund is managed by David C. Leduc, he has been the portfolio manager since 1995. Brendan Murphy serves as an additional portfolio manager, a position he has held since February 2010.The fund seeks to maximize total return through capital appreciation and income. The fund normally invests at least 80% of assets in fixed-income securities; 65% of assets in non-U.S. dollar denominated fixed-income securities of foreign governments and companies located in various countries, including emerging markets. The fund, at times, may invest up to 25% of assets in emerging markets and up to 5% of assets in any single emerging market country. It is non diversified. No change recommended. Palm Beach Gardens Police Review of International Equity & Bond Funds June 30, 2013 1. Dreyfus International Bond A (DIBAX) [1.02%] June 30, 2013 MorningStar Rating: (out of 207 funds over 5-years) Comparative Index: Citi Non US & World Government March 31, 2013 MorningStar Rating: (out of 201 funds over 5-years) Comparative Index: Citi Non US & World Government Pension Resource Centers Accounts Payable Check Register FOR: PALM BEACH GARDENS POLICE Check Number DatePayee and DescriptionAmount 2493May 3, 2013ICC Capital Management $26,300.59 Investment Management Fees- 1st Qtr 2013 2494May 3, 2013Gabriel Roeder Smith and Company $4,020.00 Actuarial Services Rendered 3/31/13 2495May 3, 2013Rhumbline Advisers $4,957.00 Investment Management Fee- 1st Qtr 2013 2496May 3, 2013Thistle Asset Consulting Inc $4,812.00 Performance Monitoring thru 3/31/13 2497May 3, 2013Perry & Jensen, LLC $1,040.20 Legal Services Rendered through 1/15/13 2498May 3, 2013Pension Resource Centers $2,597.20 Administration Fee- May 2013 2499June 1, 2013City of Pam Beach Gardens $13,650.70 Retiree Insurance 2500May 28, 2013Jay Spencer $1,569.09 Travel Expense - May 2013 2501June 4, 2013FPPTA $500.00 Conf Jay Spencer 2502June 4, 2013Omni Orlando Resort at ChampionsGate $600.00 Registration 6/23/13 - 6/26/13 for Jay Spencer 2503June 4, 2013Pension Resource Centers $2,614.86 Administration Fee- June 2013 2504June 4, 2013Perry & Jensen, LLC $2,448.12 Legal Services Rendered through 5/15/13 2505June 4, 2013Gabriel Roeder Smith and Company $11,458.00 Actuarial Services Rendered 4/30/13 2506July 1, 2013City of Palm Beach Gardens $13,650.70 Retiree Insurance 2507July 1, 2013Pension Resource Centers $2,598.24 Administration Fee- June 2013 2508July 1, 2013Gabriel Roeder Smith & Company $7,486.00 Actuarial Services Rendered 5/31/13 2509July 1, 2013Perry & Jensen, LLC $445.10 Legal Services Rendered through 6/15/13 $57,377.69 Chair___________________________ Secretary___________________________ Date_______________________________ PAGE Market Snapshot 1 Index Comparisons 2 Compliance Report 3 Total Portfolio Pie Chart 4 Manager Pie Chart 5 Asset Allocation Table 6 Gain/Loss Table 7 Total Ranks Table 8 Manager Ranks 9 Scatterplot Graphs: Total Fund Graph 11 Rhumbline Equities Graph 12 ICC Fixed income Graph 13 Beta Graph 14 Alpha Graph 15 Beta/Alpha Table 16 Batting Average Graph 17 Batting Average/R-Squared Table 18 Other Managers' Page 19 Palm Beach Gardens Police Pension Fund Executive Summary Report Table of Contents SECTION Page 2 Index Comparison June 30, 2013 -10.00 0.00 10.00 20.00 30.00 3 Months Last 12 Months Last 3 Years (Annualized) Re t u r n ( % ) Barclays Gov/Credit Bond Barclays Gov/Credit-Intermediate S&P 500 Russell 1000 Growth Russell 1000 Value Russell 2000 Growth Russell 2000 Value Russell 3000 MSCI EAFE 3.74% R2000G -2.51% BCGC 25.32% R1000V 3.14% BCIGC 19.97% R2000G -0.69% BCGC 1. 2. 3. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. Page 3 Did the equity return, over the trailing 5-year period, exceed the 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4% R1000G index and 15.4% EAFE? [7.32 vs. 6.82] Did the equity return, over the trailing 3-year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [8th] Did the equity return, over the trailing 5-year period, rank in the top 40% of the Mobius 38.4% Broad Large Cap, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [6th] TOTAL FUND Did the total return, over the trailing 3-year period, exceed the policy, which is comprised of 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 29% BCGC , 4% Non US $ World Gov. Bond & 2% RE? [11.53 vs. 12.84] TOTAL EQUITY Did the total return, over the trailing 3-year period, rank in the top 40% of the Universe comprised of 25% Mobius Broad Large Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Cap Growth, 10% International Equity, 29% Broad Fixed, 4% International Fixed Income & 2% NCREIF? [87th] Palm Beach Gardens Police Pension Fund Compliance Report June 30, 2013 YES NO Did the equity return, over the trailing 3-year period, exceed the 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4% R1000G index and 15.4% EAFE? [17.75 vs. 17.76] Is the minimum quality rating of the domestic bond investments BBB from Standard & Poor's or BAA from Moody's? Did the fixed income return, over the trailing 5-year period, rank in the top 40% of the Mobius Broad Fixed Income Universe? [66th] Did the total return of the fund over the trailing 3-year period equal or exceed 7.3% (actuarial assumption rate of return)? [11.53 vs. 7.50] TOTAL FIXED INCOME Did the fixed income return, over the trailing 3-year period, exceed the 89% BCGC and 11% Non-US World Gov't Bond? [3.36 vs. 3.44] Is the amount invested in any single security less than or equal to 5% of the market value of the total equity portfolio? Is the amount invested in any single industry less than or equal to 20% of the market value of the total equity portfolio? Did the fixed income return, over the trailing 5-year period, exceed the BCGC? [4.34 vs. 4.93] Did the fixed income return, over the trailing 3-year period, rank in the top 40% of the Mobius Broad Fixed Income Universe? [68th] Is the amount invested in any single security (with exception of U.S. Government and its agencies) less than or equal to 5% of the market value of the total fixed income portfolio? 1. There has been no changes in ownership. ICC hired James O'Mealia, Managing Director, Portfolio Manager. Andrew Richey resigned from ICC. 2. No 3. ICC hired James O'Mealia, Managing Director, Portfolio Manager. Andrew Richey resigned from ICC. 4. ICC lost roughly 20% of AUM. 5. No 6. No 7. No 8. No 9. 0.00% 10. No 11. Steven Stack, CRCP - Chief Compliance Officer Page 3a Manager Compliance Questionnaire June 30, 2013 Have there been any changes in your organization? Have you undergone any change in ownership or control? Are you invested in any unhedged and/or levereged derivatives? What percentage of equity is international? The manager must immediately notify the Board and the Consultant when the international exposure reaches ten percent (10%). An explanation will be needed as to why the manager is changing their discipline. (This does not apply to managers that are 100% international equity and to those that have been previously given permission by the board and the consultant) Are you invested in any companies on the SBA's website? (Please review list of scrutinized companies on the following website: http://www.sbafla.com/fsb/Home/ProtectingFloridasInvestmentAct/tabid/751/Default.aspx Name of person completing this form (please include company name)? Have there been any changes in your investment philosophy? Have there been any changes in your staff of investment professionals? Have you lost a substantial amount of business (amount of percentage of assets under management)? Have you gained a substantial amount of business (amount of percentage of assets under management)? Have there been any new investigations begun by any state or federal government or their agencies, or any charges filed, with regard to any division or unit of your company, and in particular anyone who directly or indirectly performs services for this client? Please provide details (if there is any doubt, please err on the side of providing too much information). For managers, with fixed income portfolios that we monitor, are you currently invested in commercial mortgage backed securities (CMBS)? (If yes, please give % of fixed portfolio) Page 4 Palm Beach Gardens Police Pension Fund Total Assets June 30, 2013 Equities 66% Fixed Income 29% Real Estate 2% Cash 3% Equities Fixed Income Real Estate Cash Page 5 Palm Beach Gardens Police Pension Fund Total Assets June 30, 2013 Rhumbline S&P500 26% Rhumbline S&P400 11% Rhumbline S&P600 11% Intl. Equity 7% ICC Lg. Growth 12% Intl. Bonds 2% ICC Fixed 29% American Realty 2% Rhumbline S&P500 Rhumbline S&P400 Rhumbline S&P600 Intl. Equity ICC Lg. Growth Intl. Bonds ICC Fixed American Realty Manager Equities Fixed Income Real Estate Cash Total % of Total Rhumbline S&P500 $15,537,000 $0 $0 $0 $15,537,000 25.9% 25.0% Rhumbline S&P400 $6,528,000 $0 $0 $0 $6,528,000 10.9% 10.0% Rhumbline S&P600 $6,591,000 $0 $0 $0 $6,591,000 11.0% 10.0% Intl. Equity $4,075,000 $0 $0 $0 $4,075,000 6.8% 10.0% ICC Lg. Growth $6,937,000 $0 $0 $0 $6,937,000 11.6% 10.0% Intl. Bonds $0 $1,487,000 $0 $0 $1,487,000 2.5% 4.0% ICC Fixed $0 $15,859,000 $0 $1,607,000 $17,466,000 29.1% 29.0% $0 $0 $1,306,000 $0 $1,306,000 2.2% 2.0% Total $39,668,000 $17,346,000 $1,306,000 $1,607,000 $59,927,000 100.0% 100.0% % of Total 66.2%28.9%2.2%2.7%100.0% Target %65.0%33.0%2.0%0.0%100.0% Page 6 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2013 American Realty Portfolio Last Qtr. MV Net Flows Inv G(L)This Qtr. MV Total Fund $59,336,000 $840,000 -$249,000 $59,927,000 Total Equities $38,937,000 -$83,000 $814,000 $39,669,000 ICC Large Growth $6,929,000 -$93,000 $101,000 $6,937,000 Rhumbline S&P 500 $15,099,000 $0 $438,000 $15,537,000 Rhumbline S&P 400 $6,466,000 $0 $63,000 $6,528,000 Rhumbline S&P 600 $6,345,000 $0 $246,000 $6,591,000 International Equity $4,099,000 $0 -$24,000 $4,075,000 International Bonds $1,555,000 $0 -$68,000 $1,487,000 ICC Fixed Income $15,226,000 $1,130,000 -$496,000 $15,859,000 Real Estate $1,054,000 $213,000 $40,000 $1,306,000 Page 7 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2013 Current Fiscal Year Quarter FYTD One Year Three Years Five Years 2012 2011 2010 2009 2008 Return -0.41%7.86%12.68%11.53%6.59%18.63%0.22%10.09%5.62%-13.73% Ranking (*)98 90 93 87 22 86 33 41 6 31 Policy Return (**)0.62%8.29%13.32%12.84%6.71%19.60%1.76%10.82%1.64%-12.83% Policy Ranking (*)69 82 84 44 18 71 5 28 50 16 Return 2.09%15.65%22.46%17.75%7.32% 28.59%-2.62%12.36%-1.00%-23.28% Ranking (***)51 16 21 8 6 12 49 18 17 78 Policy Ranking (***)49 45 42 8 16 27 9 31 71 32 Return -3.20%-3.45%-1.05%3.36%4.34%5.83%4.78%7.63%11.10%0.54% Ranking (Broad Fixed)69 91 82 68 66 71 14 45 53 28 Policy Return (89% BCAB and 11% Non-US World Gov't Bond)-2.45%-3.04%-1.24%3.44%4.93%4.98%5.21%7.79%11.19%3.85% Policy Ranking (Broad Fixed)43 84 85 66 46 76 10 44 53 13 Page 8 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2013 21.29%-21.04% TOTAL FUND (Net of Fees)[Inception 3-31-1992] TOTAL EQUITIES(Net of Fees)[Inception 6-30-2000] ** 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Intl. Bond, 29% BCAB & 2% NCREIF -4.36% Policy Return (38.4%S&P500, 15.4%S&P400, 15.4%S&P600, 15.4% R1000G, 15.4% EAFE)6.82%27.80% Red indicates bottom 40% of universe 11.44%17.76% *** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth, 15.4% International TOTAL FIXED INCOME(Net of Fees)[Inception 3-31-1994](International Fixed Inception 9-30-2010) Gold indicates equal to or beat the index, or in upper 40% of universe 2.11%14.29%-0.50% * 25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 4% Intl. Bond, 29% Broad Fixed & 2% RE Current Fiscal Year Quarter FYTD One Year Three Years Five Years 2012 2011 2010 2009 2008 2.90%13.37%20.53%18.44%7.16%30.17%1.19%10.21%-6.49%-21.72% Ranking (Br.Large Cap Core)38 50 49 22 23 21 20 29 55 36 2.91%13.39%20.60%18.45%7.01%30.20%1.15%10.16%-6.91%-21.98% Policy Ranking (Br.Large Cap Core)38 49 49 22 28 20 20 30 62 40 0.97%18.61%25.00%19.57%9.06%28.90%-1.17%17.77%-2.77%-16.54% 75 50 50 20 17 28 26 12 100 9 1.00%18.72%25.18%19.45%8.92%28.54%-1.28%17.78%-3.10%-16.68% 73 48 48 22 18 30 27 12 100 9 3.88%18.68%25.05%20.20%9.81%33.27%0.21%14.14%-10.54%-13.64% Ranking (Broad Small Cap)20 48 45 21 46 18 26 37 86 22 3.92%18.77%25.18%20.27%9.95%33.35%0.21%14.21%-10.61%-13.83% Policy Ranking (Broad Small Cap)20 47 43 20 43 18 26 36 86 23 1.44%19.11%25.55%17.24%9.12%27.52%-6.48%14.62%15.30%-30.79% Ranking (Broad Large Cap Growth)77 1 3 52 10 55 94 8 1 100 2.06%10.33%17.07%18.68%7.47%29.18%3.78%12.65%-1.85%-20.88% 60 56 61 22 26 40 14 20 35 32 -0.59%10.72%18.44%11.52%1.09%19.38%-11.11%9.09%2.30%-29.10% 46 37 31 19 26 20 50 32 48 36 -0.73%11.36%19.14%10.55%-0.16%14.33%-8.94%3.71%3.79%-30.12% 49 26 25 35 43 68 25 65 39 45 Page 9 Policy Ranking (Broad Large Cap Growth) Policy Ranking (International Equity) Return Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2013 RHUMBLINE S&P 500 EQUITY PORTFOLIO(Inception 6-30-2000) RHUMBLINE S&P 400 EQUITY PORTFOLIO(Inception 12-31-2002) Policy(S&P500) RHUMBLINE S&P 600 EQUITY PORTFOLIO(Inception 10-31-2003) INTERNATIONAL EQUITY(Inception 9-30-2006) Return Ranking (International Equity) Policy (MSCI EAFE) Return Gold indicates equal to or beat the index, or in upper 40% of universe Policy (S&P 400) Red indicates bottom 40% of universe Return Policy (R1000G) Policy (S&P 600) Ranking (Broad Mid Cap) ICC LARGE CAP GROWTH EQUITY PORTFOLIO(Inception 9-30-2007) Return Policy Ranking (Broad Mid Cap) Current Fiscal Year Quarter FYTD One Year Three Years Five Years 2012 2011 2010 2009 2008 -2.98%-3.12%-0.88%3.82%4.92%6.07%5.66%8.10%11.96%1.22% Ranking (Broad Fixed)63 86 80 58 46 69 8 42 46 25 -2.33%-2.24%-0.69%3.52%5.20%5.16%5.29%8.17%10.56%3.66% Policy Ranking (Broad Fixed)39 63 76 64 39 75 9 41 57 13 Two Years -4.37%-3.83%1.08%0.52%n/a 7.89%0.33%n/a n/a n/a -3.44%-9.33%-5.72%-2.69%n/a 3.46%4.14%n/a n/a n/a 3.10%7.73%10.21%n/a n/a n/a n/a n/a n/a n/a 3.91%9.29%11.84%n/a n/a n/a n/a n/a n/a n/a Page 10 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary June 30, 2013 ICC FIXED INCOME PORTFOLIO(Inception 3-31-1994) Return Policy(BCAB) INTERNATIONAL FIXED INCOME PORTFOLIO(Inception 9-30-2010) Return Policy (Non-US World Bond) Gold indicates equal to or beat the index, or in upper 40% of universe Red indicates bottom 40% of universe AMERICAN REALTY PORTFOLIO(Inception 6-30-2012) Return Policy (NCREIF) June 30, 2013 EXPLANATION OF RISK/REWARD SCATTERPLOT GRAPHS The crossing lines represent the 5-year return (horizontal line) and 5-year standard deviation or volatility or risk (vertical line) of the index against which the Fund is being measured. Each point represents the Fund's 5-year return (vertically) and standard deviation or volatility (horizontally), relative to the index. If a point is in the southwest quadrant, for example, the 5 -year return of the Fund has been less than (below) the index line, and the 5 -year standard deviation (volatility) has also been less than (to the left of) the index line. There are four points, one for each of the last four quarters. The earliest one is the smallest and the quarter just ended being the largest. Each point shows the 5-year relative position of the Fund versus the index for that quarter. The movement of the points shows the trend, or direction, over time. As noted in the graph, the best place to be is the northwest quadrant (less risk and a higher return); the worst place to be is the southeast quadrant (more risk and a lower return). Page 11 Palm Beach Gardens Police Pension Fund Total Fund Trailing 5-Years June 30, 2013 (versus 25% S&P500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Bond, 29% BCGC, 2% RE) -3 0 3 -3 0 3 Di f f e r e n c e i n R e t u r n s ( M a n a g e r - In d e x ) Risk (Difference in Standard Deviations) 6/30/2013 3/31/2013 12/31/2012 9/30/2012 Good Aggressive Conservative Bad Page 12 Palm Beach Gardens Police Pension Fund Total Equity Trailing 5-Years June 30, 2013 (versus 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4% R1000G & 15.4% Intl. ) -3 0 3 -3 0 3 Di f f e r e n c e i n R e t u r n s ( M a n a g e r - In d e x ) Risk (Difference in Standard Deviations) 6/30/2013 3/31/2013 12/31/2012 9/30/2012 Good Aggressive Conservative Bad Page 13 Palm Beach Gardens Police Pension Fund Total Fixed Income 5-Year Trailing June 30, 2013 (versus 89% BCGC, 11% Non-US World Gov't Bond) -3 0 3 -3 0 3 Di f f e r e n c e i n R e t u r n s ( M a n a g e r - In d e x ) Risk (Difference in Standard Deviations) 6/30/2013 3/31/2013 12/31/2012 9/30/2012 Good Aggressive Conservative Bad 15451000 15451000 123518000 123518000 264000 264000 139233000 Page 14 Palm Beach Gardens Police Pension Fund Beta: Trailing 5-Year Risk (or Inception if Less) June 30, 2013 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 Jun-13 Mar-13 Dec-12 Sep-12 Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth Page 15 Palm Beach Gardens Police Pension Fund Alpha: Trailing 5-Year Reward (or Inception if Less) June 30, 2013 -2.0% -1.0% 0.0% 1.0% 2.0% Jun-13 Mar-13 Dec-12 Sep-12 TOTAL FUND & INDIVIDUAL MANAGERS Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth Jun-13 Mar-13 Dec-12 Sep-12 Total Fund 0.88 0.88 0.88 0.88 Managers, Fixed Income Total Fixed 0.91 0.88 0.88 0.88 Managers, Equities Large Cap 0.99 0.99 0.99 0.99 Mid Cap 0.99 0.99 0.99 0.99 Small Cap 0.99 0.99 0.99 0.99 International 0.41 0.41 0.40 0.39 Large Growth 1.08 1.10 1.09 1.10 Real Estate NCREIF 0.58 0.00 0.00 0.00 Total Fund 0.70%0.99%0.66%0.41% Managers, Fixed Income Total Fixed -0.13%0.36%0.15%0.15% Managers, Equities Large Cap 0.19%0.19%0.17%0.18% Mid Cap 0.20%0.21%0.18%0.21% Small Cap -0.07%0.04%0.08%0.06% International 1.16%1.11%-0.54%-1.56% Large Growth 1.05%1.51%0.53%-1.82% Real Estate NCREIF 3.36%0.00%0.00%0.00% Page 16 Palm Beach Gardens Police Pension Fund Alpha & Beta: 5-Years Trailing (or Inception if Less) June 30, 2013 Current BETA * BCAB R1000G BCAB S&P500 * ALPHA S&P400 * 25% S&P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Gov't Bond, 29% BCAB, 2% RE S&P600 EAFE R1000G Policy S&P500 S&P600 EAFE S&P400 Page 17 Palm Beach Gardens Police Pension Fund Batting Average: 5-Years Trailing (or Inception if Less) June 30, 2013 0 10 20 30 40 50 60 70 80 90 100 Jun-13 Mar-13 Dec-12 Sep-12 TOTAL FUND & INDIVIDUAL MANAGERS Total Fund Large Cap Mid Cap Small Cap Total Fixed International Large Growth Jun-13 Mar-13 Dec-12 Sep-12 Total Fund 30.00 35.00 35.00 30.00 Managers, Fixed Income Total Fixed 50.00 55.00 50.00 45.00 Managers, Equities Large Cap 55.00 60.00 65.00 65.00 Mid Cap 60.00 60.00 65.00 70.00 Small Cap 30.00 35.00 40.00 45.00 International 55.00 55.00 55.00 55.00 Large Growth 50.00 55.00 50.00 45.00 Real Estate NCREIF 0.00 33.33 0.00 0.00 Total Fund 0.98 0.98 0.98 0.98 Managers, Fixed Income Total Fixed 0.77 0.74 0.73 0.74 Managers, Equities Large Cap 1.00 1.00 1.00 1.00 Mid Cap 1.00 1.00 1.00 1.00 Small Cap 1.00 1.00 1.00 1.00 International 0.28 0.28 0.26 0.26 Large Growth 0.92 0.92 0.91 0.91 Real Estate NCREIF 0.94 0.00 0.00 0.00 Page 18 June 30, 2013 EAFE Palm Beach Gardens Police Pension Fund Batting Average: 5-Years Trailing (or Inception if Less) BATTING AVERAGE S&P500 S&P400 Current Policy * S&P500 S&P400 * 25% S&P 500, 10% S&P400, 10% S&P600, 10% R1000G, 10% EAFE, 4% Non-US World Gov't Bond, 29% BCAB, 2% RE S&P600 EAFE R1000G BCAB BCAB * S&P600 R1000G R-SQUARED Qtr YTD 1Yr 3Yr 5Yr 10Yr Advanced Investment Partners - Large Cap - Gross Size 4.53 15.93 22.01 18.94 8.03 8.42 Atlanta Capital Management Co., LLC - High Quality Growth Plus - Gross Size 1.76 10.42 18.16 17.65 6.42 7.46 ICC Capital Management, Inc - Core Value - Gross Size 3.20 20.46 28.35 15.05 5.61 7.80 Logan Capital Management - Large Core 60/40 - Gross Size 2.31 9.40 13.15 21.38 9.61 9.57 Madison Investment Advisors, Inc. - Large Cap Equity (Instl) - Gross Size 2.63 15.67 22.75 17.20 8.68 7.04 Rhumbline Advisers Corporation - Russell 1000 Index Fund - Gross Size 2.52 13.86 21.03 18.09 7.03 7.61 Robeco Investment Management, Inc. - WPG Disc Equity Large Cap - Gross Size 3.91 15.46 22.73 18.13 6.70 7.73 South Texas Money Management - Large Cap Core - Gross Size 2.22 11.12 16.71 13.81 4.37 7.37 Valley Forge Asset Management - Large Cap Core - Gross Size -0.56 4.51 10.67 13.16 5.48 8.17 Russell 1000 2.65 14.04 21.34 18.63 7.12 7.67 S&P 500 2.91 13.39 20.60 18.45 7.01 7.30 Dana Investment Management - Large Growth - Gross Size 2.93 10.56 16.87 17.90 6.52 9.14 Denver Investment Advisors, LLC - Growth - Gross Size 1.29 6.79 14.13 18.07 5.94 8.24 Garcia Hamilton & Associates - Quality Growth - Gross Size 0.83 5.88 13.01 16.19 5.84 6.27 ICC Capital Management, Inc - Large Cap Growth Equity - Gross Size 1.32 16.68 22.87 15.94 8.87 7.44 Logan Capital Management - Large Cap Growth - Gross Size 1.08 11.09 16.27 17.12 5.38 8.67 Montag & Caldwell, Inc. - Large Cap Growth - Gross Size 0.59 9.45 16.60 16.74 6.48 7.60 Polen Capital Management - Large Cap Growth - Gross Size -2.19 2.87 8.31 17.82 9.63 8.51 Rhumbline Advisers Corporation - Russell 1000 Growth Index Fund - Gross Size 2.08 10.30 17.06 18.66 7.50 7.45 Sawgrass Asset Management, LLC - Large Cap Growth Equity - Gross Size 2.18 12.56 18.79 8.97 7.92 7.81 Silvant Capital - Select LCG Stock - Grosss Size 2.15 4.59 10.02 14.24 4.72 7.36 Russell 1000 Growth 2.06 10.33 17.07 18.68 7.47 7.40 S&P 500/Citigroup Growth 2.48 9.75 16.78 18.89 7.57 7.18 Rhumbline Large Cap(FYE)2.90 13.37 20.53 18.44 7.16 7.41 Rhumbline Mid Cap(FYE)0.97 18.61 25.00 19.57 9.06 10.85 Rhumbline Small Cap(FYE)3.88 18.68 25.05 20.20 9.81 n/a International Equity(FYE)-0.59 10.72 18.44 11.52 1.09 n/a ICC Large Growth(FYE)1.44 19.11 25.55 17.24 9.12 n/a Page 19 Performance of Other Managers June 30, 2013 CORE EQUITY GROWTH EQUITY Qtr YTD 1Yr 3Yr 5Yr 10Yr BRC Investment Management Large Cap Value - Gross Size 0.29 14.65 20.94 19.32 7.71 10.95 Buckhead Capital Management - Value Equity - Low P/E - Gross Size 3.19 13.35 19.94 14.44 6.43 7.09 Ceredex Value Ad Large Cap Value 3.35 18.12 26.08 18.50 9.26 9.64 Eagle Asset Management - Value - Institutional - Gross Size 7.34 22.58 30.70 18.77 6.47 8.88 Earnest Partners - Large Cap Value - Gross Size 4.15 13.78 17.23 15.35 6.14 8.09 ICC Capital Management, Inc - Core Value - Gross Size 3.20 20.46 28.35 15.05 5.61 7.80 Missouri Valley Partners - Large Cap Value - Gross Size 3.15 15.30 23.00 17.38 5.25 6.48 Rhumbline Advisers Corporation - Russell 1000 Value Index Fund - Gross Size 3.24 17.64 25.29 18.48 6.76 7.85 The Boston Company Asset Mgmt., LLC - US Large Cap Value Equity Management 5.36 22.80 33.41 18.59 6.75 10.01 RBC Global Asset Management, Inc. - Large Cap Value - Gross Size 3.11 16.48 23.70 18.65 6.74 9.13 RNC Genter Capital - Dividend Income Equity - Gross Size 4.26 14.31 20.40 18.39 10.16 Westwood Management Corporation - LargeCap Equity - Gross Size 4.18 17.33 24.18 18.25 5.07 9.34 Russell 1000 Value 3.20 17.67 25.32 18.51 6.67 7.79 S&P 500/Citigroup Value 3.36 17.64 25.04 18.10 6.47 7.34 Amalgamated Bank - LongView 400 MidCap Index Fund - Gross Size 1.02 18.75 25.19 19.43 8.89 10.73 Batterymarch Financial Mgmt., Inc. - US Mid Cap Russell - Gross Size 2.50 19.50 27.02 20.09 6.57 10.72 Chicago Equity Partners, LLC - Mid Cap Core Equity - Gross Size -0.34 18.13 25.33 21.92 8.83 9.99 Rhumbline Advisers Corporation - S&P 400 Index Fund - Gross Size 0.97 18.62 25.01 19.46 8.14 10.37 Robeco Investment Management, Inc. - BPAM Mid Cap Value Equity - Gross Size 3.96 22.69 29.66 22.69 13.35 13.53 Russell Midcap 2.21 18.77 25.41 19.53 8.28 10.65 S&P Midcap 400 1.00 18.72 25.18 19.45 8.91 10.74 Advanced Investment Partners 2.03 23.64 33.37 24.08 11.54 11.78 AtlantaCapital Management - High Quality SMID - Gross Size 2.43 20.76 26.05 22.72 14.32 Eagle Asset Management - SMID Core - Institutional - Gross Size 1.24 16.96 24.02 17.78 8.08 11.31 Earnest Partners - SMID Core - Gross Size 0.37 14.10 21.62 17.75 8.67 Kayne AndersonRudnick - SMID Core - Gross Size -0.23 13.21 16.74 16.27 11.09 8.38 Westwood Management Corporation - SMID Cap Equity - Gross Size 0.06 17.71 25.49 18.44 10.45 15.22 Russell 2500 2.27 18.99 25.61 19.57 9.12 10.34 Rhumbline Large Cap(FYE)2.90 13.37 20.53 18.44 7.16 7.41 Rhumbline Mid Cap(FYE)0.97 18.61 25.00 19.57 9.06 10.85 Rhumbline Small Cap(FYE)3.88 18.68 25.05 20.20 9.81 n/a International Equity(FYE)-0.59 10.72 18.44 11.52 1.09 n/a ICC Large Growth(FYE)1.44 19.11 25.55 17.24 9.12 n/a Page 20 Performance of Other Managers June 30, 2013 VALUE EQUITY MID-CAP EQUITY SMID-CAP EQUITY Qtr YTD 1Yr 3Yr 5Yr 10Yr Advanced Investment Partners - AllCap - Gross Size 3.10 14.85 2.36 20.12 7.77 7.80 BuckheadCaptial Management - All Cap - Gross Size 3.23 13.67 19.72 14.81 5.13 7.82 Chartwell Investment Partners - Premium Yield Equity - Gross Size 2.98 13.95 20.36 18.85 8.75 7.72 Diamond Hill Capital Management, Inc. - Diamond Hill Select Equity - Gross Size 7.60 26.00 33.18 18.52 8.26 12.14 HGK Asset Management - All Cap - Gross Size 3.97 16.72 22.66 17.48 6.75 ICC Capital Management, Inc - Multi-Cap Eq. - Gross Size -2.38 9.31 16.11 9.80 8.30 11.48 Intrepid Capital Management, Inc. - Intrepid Multi-Cap Equity - Gross Size 1.12 10.39 15.10 13.17 10.46 10.00 Oak Ridge Investments, LLC - All-Cap - Gross Size 1.76 11.05 13.97 16.76 6.50 8.57 Russell 3000 2.69 14.34 21.46 18.63 7.25 7.81 Dow Jones Wilshire 5000 (Full Cap)2.77 14.10 21.13 18.46 7.19 7.96 Atlanta Capital Management Co., LLC - High Quality Small Cap - Gross Size 4.31 19.35 24.38 22.44 14.89 13.05 BuckheadCaptial Management - Small Cap Value - Gross Size 3.97 22.68 22.83 14.80 7.45 9.79 Ceredex - Value Ad Small Cap Value - Gross Size 0.28 19.29 24.42 18.38 12.36 13.61 DePrince, Race, Zollo, Inc. - Small Cap Value - Gross Size 3.06 19.42 26.68 17.47 12.33 11.70 Eagle Asset Management - Small Cap Core - Institutional - Gross Size 0.04 15.06 22.84 18.06 8.15 10.93 GW Capital, Inc. - Small Cap Value Equity - Gross Size -0.64 21.28 29.83 19.90 8.82 14.57 Intrepid Capital Management, Inc. - Intrepid Small Cap - Gross Size -0.39 5.90 10.34 12.38 13.48 11.53 Kayne Anderson Rudnick Invst. - Small Cap - Gross Size 1.30 13.48 15.94 20.14 13.18 11.87 Missouri Valley Partners 2.70 20.49 29.00 23.45 13.92 10.94 Sawgrass Asset Management, LLC - Small Cap Growth Equity - Gross Size 3.63 17.20 18.45 19.89 4.19 6.18 Silvant Capital - Small Cap Growth - Gross Size 5.05 18.22 25.61 21.98 8.43 9.99 Russell 2000 3.08 18.01 24.21 18.67 8.77 9.53 S&P SmallCap 600 3.92 18.77 25.18 20.27 9.95 10.77 American Realty Advisors - Core Equity Real Estate-Sep. Accts. - Gross Size 2.48 5.04 10.68 13.67 -0.90 Cornerstone Real Estate Advisors, Inc. - US REIT TR - Gross Size 7.32 10.33 13.90 17.61 8.28 14.91 Intercontinental - US REIF - Gross Size 2.75 9.22 15.07 12.57 -0.87 JPMorgan Asset Management - Strategic Property Fund - Gross Size 3.40 6.28 12.85 15.12 0.51 8.00 Principal Global - Real Estate Core - Gross Size 3.14 5.40 13.22 16.60 -0.89 6.45 Dow Jones Wilshire REIT Index 7.43 10.10 14.02 17.35 6.32 12.24 NCREIF Property Index 2.57 5.18 10.52 13.30 2.32 8.51 Altrinsic Global Advisors - International Equity - Gross Size -1.66 8.32 16.57 9.62 2.98 8.81 DePrince, Race, Zollo, Inc. - International Equity - Gross Size -0.83 10.25 17.90 7.04 1.93 8.76 Harding Loevner - International Equity - Gross Size -1.92 7.15 15.45 11.31 4.17 10.76 Harding Loevner - Emerging Mkts. Equity - Gross Size -5.13 0.87 8.64 8.12 1.66 16.37 ICC Capital Management, Inc - International ADR Equity - Gross Size -0.61 11.05 18.64 11.11 2.62 7.69 INVESCO - International EM Equity - Gross Size -10.19 -10.21 -5.18 -1.29 -2.82 OFI Institutional Asset Mgmt. - Emerging Mkts.Equity - Gross Size -3.70 1.40 8.97 9.23 6.62 The Boston Company Asset Mgmt., LLC - International Core Equity Management 2.05 14.52 24.60 13.81 -0.01 8.94 Thornburg Investment Mgmt. - International Equity - Gross Size -1.31 7.08 13.92 8.93 1.37 10.94 WHV - WHV International Equity - Gross Size -4.15 3.67 10.85 10.34 -3.85 13.96 WHV - WHV Emerging Mkts. Equity - Gross Size -7.54 -5.16 2.83 4.73 MSCI EAFE -0.73 11.36 19.14 10.55 -0.16 8.16 MSCI EMERGING MARKETS -7.95 -4.32 3.23 3.72 -0.11 14.02 Rhumbline Large Cap(FYE)2.90 13.37 20.53 18.44 7.16 7.41 Rhumbline Mid Cap(FYE)0.97 18.61 25.00 19.57 9.06 10.85 Rhumbline Small Cap(FYE)3.88 18.68 25.05 20.20 9.81 n/a International Equity(FYE)-0.59 10.72 18.44 11.52 1.09 n/a ICC Large Growth(FYE)1.44 19.11 25.55 17.24 9.12 n/a Page 21 Performance of Other Managers June 30, 2013 ALL CAP EQUITY SMALL CAP EQUITY REAL ESTATE (3/31/2013) INTERNATIONAL EQUITY Qtr YTD 1Yr 3Yr 5Yr 10Yr Atlanta Capital Management Co., LLC - High Quality Broad Market - Gross Size -1.91 -1.96 -0.73 3.01 4.62 4.45 Denver Investment Advisors - Core Bond Gov't/Corp. - Gross Size -2.51 -2.20 -0.23 4.08 5.65 4.92 Eagle Asset Management - Core Fixed Institutional - Gross Size -2.67 -2.49 -0.67 3.66 5.41 4.74 Garcia Hamilton & Associates - Fixed Aggregate - Gross Size -2.36 -0.52 3.24 5.62 7.61 6.11 ICC Capital Management, Inc - Core Fixed Income - Gross Size -2.90 -2.85 -0.72 3.70 4.71 4.16 Integrity Fixed Income Mgmt, LLC - Core Fixed Income - Gross Size -2.23 -1.36 0.77 4.39 6.30 Montage & Caldwell Inc. - Core Fixed Income - Gross Size -1.90 -1.81 -0.68 2.93 4.73 4.54 Sawgrass Asset Management, LLC - Core Fixed Income - Gross Size -2.03 -1.39 0.37 3.95 6.00 4.99 RBC Global Asset Management, Inc. - Broad Market Core - Gross Size -2.44 -2.14 -0.20 3.96 5.50 4.35 Rockwood Capital - Aggregate Bond - Gross Size -2.36 -1.33 -0.38 3.74 5.25 4.41 Seix Advisors - Core Fixed Income - Gross Size -2.45 -2.29 -0.70 3.95 6.18 5.14 Wedge Capital Management - Core Fixed Income - Gross Size -2.17 -1.13 0.79 4.19 6.34 5.23 Barclays Aggregate Bond -2.32 -2.24 -0.69 3.51 5.19 4.52 Barclays Gov/Credit Bond -2.51 -2.31 -0.62 3.88 5.29 4.43 Barclays High Yield US Corporate Bond -1.44 4.75 9.49 10.74 10.94 8.91 Buckhead Capital Management - Intermediate Fixed - Gross Size -1.80 -1.15 0.58 3.13 4.89 Denver Investment Advisors - Intermediate Fixed - Gross Size -1.80 -1.04 0.93 3.92 5.25 4.75 Eagle Asset Management - Institutional Conservative - Gross Size -1.90 -1.40 0.17 3.32 5.17 4.48 Garcia Hamilton & Associates - Intermediate Fixed Income - Gross Size -2.01 -0.28 3.22 4.90 6.63 5.39 Missouri Valley Partners - Intermediate Government/Credit Fixed Income - Gross Size -1.90 -1.41 0.02 3.27 5.24 4.60 RBC Global Asset Management, Inc. - Intermediate Core - Gross Size -1.75 -0.92 0.80 3.62 4.64 3.71 Sawgrass Asset Management, LLC - Intermediate Fixed Income - Gross Size -1.60 -0.90 0.79 3.30 5.01 4.32 Seix Advisors - Intermediate Fixed Income - Gross Size -1.75 -1.20 0.14 3.01 5.43 4.69 Sit Investment Associates, Inc. - Intermediate Govt/Corp - Gross Size -1.52 -0.36 1.54 4.76 6.72 5.26 Barclays Intermediate Aggregate -1.78 -1.46 -0.12 3.03 4.76 4.30 Barclays Gov/Credit-Intermediate -1.70 -1.11 0.28 3.14 4.57 4.03 Brandywine Global - International Fixed Invst. Grade - Gross Size -2.27 -0.04 4.96 7.98 6.47 6.96 Federated Investors - Non-US Fixed Income Unhedged - Gross Size -2.97 -9.69 -5.79 2.58 2.93 4.59 PIMCO - Non US Fixed Income Unhedged - Gross Size -4.82 -10.17 -3.73 5.64 5.90 6.56 Wells Capital Mgmt. - Global Fixed Income Ex-US - Gross Size -4.14 -6.47 -1.83 4.51 5.41 6.21 Citigroup World Government Ex-US -3.44 -9.33 -5.72 2.57 2.56 4.78 International Bonds(FYE)-4.37 -3.83 1.08 n/a n/a n/a ICC Fixed Income(FYE)-2.98 -3.12 -0.88 3.82 4.92 4.29 American Realty(FYE)3.10 7.73 10.21 n/a n/a n/a Page 22 INTERMEDIATE FIXED INCOME INTERNATIONAL FIXED INCOME Performance of Other Managers June 30, 2013 CORE FIXED INCOME SUPPLEMENTAL ACTUARIAL VALUATION REPORT Plan City of Palm Beach Gardens Police Officers' Pension Fund Valuation Date October 1, 2012 Date of Report May 29, 2013 Report Requested by Board of Trustees Prepared by Peter N. Strong Group Valued All active and inactive members of the Plan. Benefit Provisions Being Considered for Change  Increasing the benefit multiplier for service earned after September 13, 2012 from 2.75% per Year of Credited Service to 3.0% per Year of Credited Service, regardless of the eligibility conditions for Normal Retirement (this change is incorporated into both Scenarios 1 and 2).  Scenario 1: Changing the eligibility conditions for Normal Retirement for members with less than 10 Years of Credited Service on September 13, 2012 from age 59 with 10 Years of Credited Service to the earlier of age 55 with 10 Years of Credited Service or 25 Years of Credited Service regardless of age.  Scenario 2: Changing the eligibility conditions for Normal Retirement for members with less than 10 Years of Credited Service on September 13, 2012 from age 59 with 10 Years of Credited Service to the earlier of age 52 with 10 Years of Credited Service or 25 Years of Credited Service regardless of age. Actuarial Assumptions and Methods Being Considered for Change Same as October 1, 2012 Actuarial Valuation Report with the following exceptions: Under Scenario 1, the probability of normal retirement for members affected by the proposed change in Normal Retirement eligibility has been changed from 100% when first eligible (at age 59 with 10 Years of Credited Service) to the following rates: Age 42 - 4950 - 54555657585960 10 0.0%2.5%20.0%20.0%20.0%55.0%65.0%100.0% 11 - 19 0.0%2.5%10.0%10.0%10.0%47.5%57.5%100.0% 20 0.0%2.5%30.0%40.0%45.0%70.0%80.0%100.0% 21 - 22 0.0%2.5%12.5%15.0%15.0%47.5%65.0%100.0% 23 - 24 0.0%2.5%15.0%15.0%15.0%47.5%65.0%100.0% 25 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% S e r v i c e Revised Retirement Rates Under Scenario 2, the probability of normal retirement for members affected by the proposed change in Normal Retirement eligibility has been changed from 100% when first eligible (at age 59 with 10 Years of Credited Service) to the following rates: Age 42 - 4950 - 51525354555657 - 5960 10 0.0%2.5%20.0%20.0%20.0%55.0%65.0%65.0%100.0% 11 - 19 0.0%2.5%10.0%10.0%10.0%47.5%57.5%60.0%100.0% 20 0.0%2.5%30.0%40.0%45.0%70.0%80.0%80.0%100.0% 21 - 22 0.0%2.5%12.5%15.0%15.0%47.5%65.0%65.0%100.0% 23 - 24 0.0%2.5%15.0%15.0%15.0%47.5%65.0%65.0%100.0% 25 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% S e r v i c e Revised Retirement Rates Amortization Period for Any Change in Actuarial Accrued Liability 15 years Summary of Data Used in Report See attached page Actuarial Impact of Proposal(s) See attached page(s) Special Risks Involved with the Proposal That the Plan Has Not Been Exposed to Previously None Other Cost Considerations As of October 1, 2012 the Actuarial Value of Assets exceeds the Market Value of Assets by $714,862. This difference will be gradually recognized over the next several years. In turn, the computed employer contribution rate will increase by approximately 1.6% of covered payroll in the absence of offsetting gains. A.Valuation Date B.ARC to Be Paid During Fiscal Year Ending9/30/20149/30/20149/30/2014 C.Assumed Date of Employer Contrib.QuarterlyQuarterlyQuarterly D.Annual Payment to Amortize Unfunded Actuarial Liability$1,905,316$1,945,163$1,965,425 E.Employer Normal Cost944,7431,026,8281,042,919 F.ARC if Paid on the Valuation Date: D+E2,850,0592,971,9913,008,344 G.ARC Adjusted for Frequency of Payments2,976,6303,103,9773,141,945 H.ARC as % of Covered Payroll60.62%63.22%63.99% I.Assumed Rate of Increase in Covered Payroll to Contribution Year5.00%5.00%5.00% J.Covered Payroll for Contribution Year5,155,5245,155,5245,155,524 K.ARC for Contribution Year: H x J3,125,2793,259,3223,299,020 L.Estimate of Annual State Revenue in Contribution Year412,644445,534*445,534* M.Required Employer Contribution (REC)2,712,6352,813,7882,853,486 in Contribution Year N.REC as % of Covered Payroll in Contribution Year: M ÷ J52.62%54.58%55.35% O.Change in REC from Baseline101,153140,851 P.Change in REC as % of Covered Payroll from Baseline1.96%2.73% * This is equal to the actual amount of State Chapter Revenue received in 2012. The revised base amount under the proposed benefit improvements is estimated to be $546,687 (up from $412,644). ANNUAL REQUIRED CONTRIBUTION (ARC) October 1, 2012October 1, 2012 55 & 10, 25 & out Plan Provisions: BaselineProposed October 1, 2012 Proposed Plan Provisions: 52 & 10, 25 & out A.Valuation Date B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits$26,846,938$28,464,540 $28,497,863 b. Vesting Benefits1,217,2711,400,469 1,586,500 c. Disability Benefits4,133,2423,370,978 3,171,323 d. Preretirement Death Benefits457,605401,497 384,081 e. Return of Member Contributions14,34914,349 14,349 f. Total32,669,40533,651,833 33,654,116 2.Inactive Members a. Service Retirees & Beneficiaries48,572,874 48,572,874 48,572,874 b. Disability Retirees2,920,636 2,920,636 2,920,636 c. Terminated Vested Members279,574 279,574 279,574 d. Total51,773,084 51,773,084 51,773,084 3. Total for All Members84,442,48985,424,917 85,427,200 C.Actuarial Accrued (Past Service) Liability per GASB No. 2572,156,731 73,077,423 73,271,743 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35N/AN/AN/A E.Plan Assets 1.Market Value49,144,43649,682,988*49,682,988* 2. Actuarial Value49,859,29850,397,850*50,397,850* F.Unfunded Actuarial Accrued Liability: C-E222,297,43322,679,57322,873,893 G.Actuarial Present Value of Projected Covered Payroll52,548,80947,426,38246,084,289 H.Actuarial Present Value of Projected Member Contributions4,519,1974,078,6693,963,249 I.Funded Ratio: E2/C69.1%69.0%68.8% ACTUARIAL VALUE OF BENEFITS AND ASSETS 55 & 10, 25 & out Plan Provisions: BaselineProposed October 1, 2012October 1, 2012 * It is anticipated that the proposed benefit improvements would allow utilization of the accumulated excess Chapter revenue (which is available for benefit improvements). The accumulated excess Chapter revenue was $538,552 as of October 1, 2012, so assets have been increased by this amount to reflect the expected release of these funds. October 1, 2012 Proposed Plan Provisions: 52 & 10, 25 & out A.Valuation Date B.Normal Cost for 1.Service Retirement Benefits$887,980 $980,864 $993,907 2.Vesting Benefits89,091 99,648 108,056 3.Disability Benefits230,964 210,251 205,085 4.Preretirement Death Benefits25,544 24,425 24,126 5.Return of Member Contributions9,859 10,335 10,440 6.Total for Future Benefits1,243,438 1,325,523 1,341,614 7.Assumed Amount for Administrative Expenses123,567 123,567 123,567 8.Total Normal Cost1,367,005 1,449,090 1,465,181 As % of Covered Payroll27.84%29.51%29.84% C.Expected Member Contribution422,262 422,262 422,262 As % of Covered Payroll8.60%8.60%8.60% D.Net Employer Normal Cost: B8-C 944,743 1,026,828 1,042,919 As % of Covered Payroll19.24%20.91%21.24% October 1, 2012 Proposed Plan Provisions: 52 & 10, 25 & out CALCULATION OF EMPLOYER NORMAL COST 55 & 10, 25 & out Plan Provisions: BaselineProposed October 1, 2012October 1, 2012 ACTIVE MEMBERS Number747474 Covered Annual Payroll$4,910,023$4,910,023$4,910,023 Average Annual Payroll$66,352$66,352$66,352 Average Age40.240.240.2 Average Past Service10.710.710.7 Average Age at Hire29.529.529.5 RETIREES, BENEFICIARIES & DROP* Number545454 Annual Benefits$3,934,797$3,934,797$3,934,797 Average Annual Benefit$72,867$72,867$72,867 Average Age54.854.854.8 DISABILITY RETIREES Number101010 Annual Benefits$272,822$272,822$272,822 Average Annual Benefit$27,282$27,282$27,282 Average Age56.256.256.2 TERMINATED VESTED MEMBERS Number111 Annual Benefits$49,452$49,452$49,452 Average Annual Benefit$49,452$49,452$49,452 Average Age41.041.041.0 * Does not include deferred supplemental benefits for DROP members October 1, 2012 Proposed Plan Provisions: 52 & 10, 25 & out PARTICIPANT DATA October 1, 2012October 1, 2012 BaselineProposed Plan Provisions: 55 & 10, 25 & out Va l u a t i o n Da t e Fi s c a l Ye a r E n d i n g Es t i m a t e d Ac t u a l P a y r o l l du r i n g F i s c a l Ye a r Ac t u a l 1 0 ye a r pa y r o l l gr o w t h $ A m o u n t % o f Pa y r o l l AA L o n Va l u a t i o n Da t e Fu n d e d Ra t i o o n Va l u a t i o n Da t e Es t i m a t e d Ac t u a l P a y r o l l du r i n g F i s c a l Ye a r Ac t u a l 1 0 ye a r pa y r o l l gr o w t h $ A m o u n t % o f Pa y r o l l AA L o n Va l u a t i o n Da t e Funded Ratio on Valuation Date$ Amount% of Payroll 10 / 1 / 2 0 1 2 2 0 1 4 5 , 1 5 5 , 5 2 4 - 1 . 2 6 % 2 , 7 1 2 , 6 3 5 5 2 . 6 2 % 7 2 , 1 5 6 , 7 3 1 6 9 . 1 0 % 5 , 1 5 5 , 5 2 4 - 1 . 2 6 % 2 , 8 1 3 , 7 8 8 5 4 . 5 8 % 7 3 , 0 7 7 , 4 2 3 6 8 . 9 7 % 1 0 1 , 1 5 3 1 . 9 6 % 10 / 1 / 2 0 1 3 2 0 1 5 5 , 4 4 4 , 3 9 4 - 1 . 2 4 % 2 , 6 8 1 , 9 0 9 4 9 . 2 6 % 7 5 , 2 2 2 , 9 6 3 7 0 . 0 8 % 5 , 4 4 5 , 2 9 7 - 1 . 2 4 % 2 , 8 2 8 , 2 8 7 5 1 . 9 4 % 7 6 , 3 1 6 , 1 5 9 6 9 . 2 6 % 1 4 6 , 3 7 8 2 . 6 9 % 10 / 1 / 2 0 1 4 2 0 1 6 5 , 8 1 5 , 5 8 6 - 1 . 7 7 % 2 , 8 5 0 , 2 1 9 4 9 . 0 1 % 7 8 , 4 4 8 , 8 0 8 7 0 . 8 0 % 5 , 8 1 7 , 4 8 4 - 1 . 7 7 % 3 , 0 4 6 , 0 3 5 5 2 . 3 6 % 7 9 , 7 3 4 , 9 4 3 6 9 . 5 1 % 1 9 5 , 8 1 6 3 . 3 7 % 10 / 1 / 2 0 1 5 2 0 1 7 6 , 1 5 5 , 7 6 4 - 1 . 9 3 % 3 , 0 1 4 , 4 7 8 4 8 . 9 7 % 8 1 , 8 2 8 , 4 1 9 7 1 . 3 6 % 6 , 1 5 8 , 5 4 0 - 1 . 9 3 % 3 , 2 5 4 , 1 7 3 5 2 . 8 4 % 8 3 , 3 2 6 , 8 4 9 6 9 . 7 0 % 2 3 9 , 6 9 5 3 . 8 9 % 10 / 1 / 2 0 1 6 2 0 1 8 6 , 5 4 6 , 2 2 3 - 2 . 6 1 % 3 , 2 4 8 , 2 3 6 4 9 . 6 2 % 8 5 , 2 5 1 , 2 8 3 7 1 . 5 0 % 6 , 5 4 8 , 1 1 7 - 2 . 6 1 % 3 , 5 4 2 , 5 3 1 5 4 . 1 0 % 8 7 , 0 0 6 , 6 0 7 6 9 . 6 2 % 2 9 4 , 2 9 5 4 . 4 9 % 10 / 1 / 2 0 1 7 2 0 1 9 6 , 9 5 5 , 5 2 4 - 2 . 6 8 % 3 , 4 4 0 , 8 9 8 4 9 . 4 7 % 8 8 , 7 7 6 , 3 5 7 7 2 . 2 7 % 6 , 9 5 7 , 0 7 1 - 2 . 6 8 % 3 , 7 7 9 , 0 8 1 5 4 . 3 2 % 9 0 , 8 2 6 , 6 3 7 7 0 . 2 2 % 3 3 8 , 1 8 3 4 . 8 6 % 10 / 1 / 2 0 1 8 2 0 2 0 7 , 2 5 9 , 3 3 4 - 3 . 0 6 % 3 , 5 7 0 , 1 4 0 4 9 . 1 8 % 9 2 , 4 3 0 , 5 4 5 7 3 . 1 6 % 7 , 2 6 0 , 4 4 2 - 3 . 0 5 % 3 , 9 4 1 , 6 9 4 5 4 . 2 9 % 9 4 , 8 1 1 , 2 3 7 7 1 . 0 5 % 3 7 1 , 5 5 4 5 . 1 2 % 10 / 1 / 2 0 1 9 2 0 2 1 7 , 6 8 8 , 3 2 5 - 2 . 0 8 % 3 , 7 9 3 , 4 1 9 4 9 . 3 4 % 9 6 , 0 2 5 , 8 7 1 7 4 . 0 4 % 7 , 6 8 3 , 5 3 1 - 2 . 0 8 % 4 , 2 1 4 , 4 1 7 5 4 . 8 5 % 9 8 , 7 8 0 , 6 1 8 7 1 . 9 6 % 4 2 0 , 9 9 8 5 . 4 8 % 10 / 1 / 2 0 2 0 2 0 2 2 7 , 7 9 1 , 8 0 3 - 0 . 6 3 % 3 , 8 2 1 , 1 0 0 4 9 . 0 4 % 9 9 , 6 6 7 , 6 6 7 7 4 . 9 5 % 7 , 7 9 5 , 3 1 0 - 0 . 6 4 % 4 , 2 6 0 , 1 3 7 5 4 . 6 5 % 1 0 2 , 8 3 3 , 0 5 1 7 2 . 9 6 % 4 3 9 , 0 3 7 5 . 6 3 % 10 / 1 / 2 0 2 1 2 0 2 3 8 , 3 1 1 , 4 1 8 3 . 5 1 % 3 , 5 6 0 , 6 1 1 4 2 . 8 4 % 1 0 2 , 1 3 2 , 7 3 7 7 6 . 6 6 % 8 , 3 0 8 , 8 5 2 3 . 5 2 % 4 , 0 0 4 , 0 3 6 4 8 . 1 9 % 1 0 5 , 7 3 7 , 9 5 4 7 4 . 7 7 % 4 4 3 , 4 2 5 5 . 3 4 % 10 / 1 / 2 0 2 2 2 0 2 4 8 , 6 8 6 , 4 6 5 5 . 7 9 % 3 , 4 7 0 , 2 4 3 3 9 . 9 5 % 1 0 4 , 5 8 2 , 3 2 5 7 8 . 4 2 % 8 , 6 6 8 , 6 4 5 5 . 7 9 % 3 , 9 4 5 , 1 0 1 4 5 . 5 1 % 1 0 8 , 6 7 2 , 5 8 5 7 6 . 6 1 % 4 7 4 , 8 5 8 5 . 4 8 % 10 / 1 / 2 0 2 3 2 0 2 5 9 , 0 1 2 , 0 4 4 5 . 4 8 % 3 , 2 3 3 , 5 2 1 3 5 . 8 8 % 1 0 7 , 0 6 6 , 8 3 9 7 9 . 8 2 % 9 , 0 0 9 , 2 4 8 5 . 4 6 % 3 , 7 1 4 , 5 1 3 4 1 . 2 3 % 1 1 1 , 6 6 1 , 0 6 4 7 8 . 0 8 % 4 8 0 , 9 9 2 5 . 3 4 % 10 / 1 / 2 0 2 4 2 0 2 6 9 , 4 0 6 , 5 8 7 5 . 1 7 % 3 , 3 7 8 , 8 4 6 3 5 . 9 2 % 1 0 9 , 4 5 2 , 9 6 6 8 1 . 0 5 % 9 , 3 8 8 , 8 8 2 5 . 1 6 % 3 , 9 3 0 , 1 8 6 4 1 . 8 6 % 1 1 4 , 6 2 4 , 6 1 7 7 9 . 4 0 % 5 5 1 , 3 4 0 5 . 8 7 % 10 / 1 / 2 0 2 5 2 0 2 7 9 , 6 9 7 , 2 7 3 4 . 9 3 % 3 , 3 8 6 , 2 8 8 3 4 . 9 2 % 1 1 1 , 8 3 5 , 9 3 9 8 2 . 0 1 % 9 , 6 9 0 , 2 4 3 4 . 9 0 % 3 , 9 5 5 , 5 5 7 4 0 . 8 2 % 1 1 7 , 6 4 2 , 1 4 1 8 0 . 4 3 % 5 6 9 , 2 6 9 5 . 8 7 % 10 / 1 / 2 0 2 6 2 0 2 8 1 0 , 0 7 0 , 9 7 4 4 . 6 5 % 4 , 3 1 3 , 3 9 8 4 2 . 8 3 % 1 1 4 , 1 6 7 , 9 2 5 8 3 . 0 4 % 1 0 , 0 2 1 , 1 0 2 4 . 6 4 % 5 , 0 3 8 , 6 1 0 5 0 . 2 8 % 1 2 0 , 6 3 3 , 6 6 9 8 1 . 5 4 % 7 2 5 , 2 1 2 7 . 2 4 % 10 / 1 / 2 0 2 7 2 0 2 9 1 0 , 4 8 6 , 3 0 4 4 . 4 0 % 4 , 6 8 2 , 1 3 5 4 4 . 6 5 % 1 1 6 , 4 4 0 , 0 8 9 8 4 . 0 2 % 1 0 , 3 5 8 , 2 6 6 4 . 3 5 % 5 , 3 9 3 , 5 4 9 5 2 . 0 7 % 1 2 3 , 5 6 7 , 9 7 3 8 2 . 5 9 % 7 1 1 , 4 1 4 6 . 8 7 % 10 / 1 / 2 0 2 8 2 0 3 0 1 0 , 7 9 0 , 3 7 1 4 . 1 9 % 4 , 7 6 3 , 9 4 9 4 4 . 1 5 % 1 1 8 , 7 3 6 , 0 5 2 8 5 . 7 8 % 1 0 , 4 3 5 , 2 4 2 4 . 0 6 % 5 , 4 3 1 , 5 4 4 5 2 . 0 5 % 1 2 6 , 4 5 7 , 6 2 4 8 4 . 4 7 % 6 6 7 , 5 9 5 6 . 4 0 % 10 / 1 / 2 0 2 9 2 0 3 1 1 1 , 2 4 5 , 7 1 1 4 . 0 4 % 4 , 8 9 5 , 2 5 8 4 3 . 5 3 % 1 2 1 , 0 2 5 , 0 1 2 8 7 . 8 4 % 1 0 , 6 7 3 , 2 4 1 3 . 6 9 % 5 , 6 3 1 , 2 0 2 5 2 . 7 6 % 1 2 9 , 0 4 2 , 0 7 3 8 6 . 5 3 % 7 3 5 , 9 4 4 6 . 9 0 % 10 / 1 / 2 0 3 0 2 0 3 2 1 1 , 4 4 9 , 4 9 7 3 . 8 8 % 4 , 3 7 2 , 5 6 3 3 8 . 1 9 % 1 2 3 , 3 5 4 , 1 6 6 8 9 . 9 7 % 1 0 , 7 3 1 , 3 5 5 3 . 3 4 % 5 , 1 0 1 , 6 8 6 4 7 . 5 4 % 1 3 1 , 3 5 4 , 6 9 2 8 8 . 6 3 % 7 2 9 , 1 2 3 6 . 7 9 % 10 / 1 / 2 0 3 1 2 0 3 3 1 1 , 8 9 4 , 8 8 1 3 . 9 2 % 4 , 2 6 5 , 5 0 4 3 5 . 8 6 % 1 2 5 , 6 5 7 , 5 0 2 9 2 . 1 8 % 1 1 , 1 3 4 , 1 2 7 3 . 2 5 % 5 , 2 0 0 , 7 5 1 4 6 . 7 1 % 1 3 3 , 3 6 6 , 5 4 0 9 0 . 8 5 % 9 3 5 , 2 4 7 8 . 4 0 % To t a l 7 3 , 4 5 5 , 3 5 0 8 3 , 0 2 6 , 8 7 8 9 , 5 7 1 , 5 2 8 To t a l P r e s e n t V a l u e 4 0 , 7 5 9 , 8 7 3 4 5 , 4 8 1 , 4 5 5 4 , 7 2 1 , 5 8 2 Ci t y o f P a l m B e a c h G a r d e n s P o l i c e O f f i c e r s ' P e n s i o n F u n d 20 - Y e a r P r o jec t i o n o f R e qui r e d C i t y C o n t r i b u t i o n s Cu r r e n t P l a n ; 6 . 5 % p h a s e d - i n S c e n a r i o 1 ( 3 % M u l t i p l i e r ; A g e 5 5 & 1 0 o r 2 5 & O u t ) ; 6 . 5 % p h a s e d - i n Re q u i r e d C i t y Co n t r i b u t i o n Re q u i r e d C i t y Co n t r i b u t i o n Cost/(Savings) Va l u a t i o n Da t e F i s c a l Ye a r E n d i n g E s t i m a t e d Ac t u a l P a yro l l du r i n g F i s c a l Ye a r Ac t u a l 1 0 ye a r pa y r o l l gr o w t h $ A m o u n t % o f Pa y r o l l AA L o n Va l u a t i o n D a t e F u n d e d Ra t i o o n Va l u a t i o n D a t e E s t i m a t e d Ac t u a l P a yro l l du r i n g F i s c a l Ye a r Ac t u a l 1 0 ye a r pa y r o l l gr o w t h $ A m o u n t % o f Pa y r o l l AA L o n Va l u a t i o n Da t e Funded Ratio on Valuation Date$ Amount% of Payroll 10 / 1 / 2 0 1 2 2 0 1 4 5 , 1 5 5 , 5 2 4 - 1 . 2 6 % 2 , 7 1 2 , 6 3 5 5 2 . 6 2 % 7 2 , 1 5 6 , 7 3 1 6 9 . 1 0 % 5 , 1 5 5 , 5 2 4 - 1 . 2 6 % 2 , 8 5 3 , 4 8 6 5 5 . 3 5 % 7 3 , 2 7 1 , 7 4 3 6 8 . 7 8 % 1 4 0 , 8 5 1 2 . 7 3 % 10 / 1 / 2 0 1 3 2 0 1 5 5 , 4 4 4 , 3 9 4 - 1 . 2 4 % 2 , 6 8 1 , 9 0 9 4 9 . 2 6 % 7 5 , 2 2 2 , 9 6 3 7 0 . 0 8 % 5 , 4 0 7 , 0 4 2 - 1 . 2 7 % 2 , 8 5 1 , 6 7 4 5 2 . 7 4 % 7 6 , 5 4 1 , 8 7 8 6 9 . 0 5 % 1 6 9 , 7 6 5 3 . 1 4 % 10 / 1 / 2 0 1 4 2 0 1 6 5 , 8 1 5 , 5 8 6 - 1 . 7 7 % 2 , 8 5 0 , 2 1 9 4 9 . 0 1 % 7 8 , 4 4 8 , 8 0 8 7 0 . 8 0 % 5 , 7 5 0 , 3 5 4 - 1 . 8 4 % 3 , 0 5 6 , 8 8 8 5 3 . 1 6 % 7 9 , 9 7 4 , 7 6 3 6 9 . 3 3 % 2 0 6 , 6 6 9 3 . 5 9 % 10 / 1 / 2 0 1 5 2 0 1 7 6 , 1 5 5 , 7 6 4 - 1 . 9 3 % 3 , 0 1 4 , 4 7 8 4 8 . 9 7 % 8 1 , 8 2 8 , 4 1 9 7 1 . 3 6 % 6 , 0 5 1 , 5 2 7 - 2 . 0 4 % 3 , 2 5 3 , 9 0 6 5 3 . 7 7 % 8 3 , 5 7 1 , 1 1 1 6 9 . 5 5 % 2 3 9 , 4 2 8 3 . 9 6 % 10 / 1 / 2 0 1 6 2 0 1 8 6 , 5 4 6 , 2 2 3 - 2 . 6 1 % 3 , 2 4 8 , 2 3 6 4 9 . 6 2 % 8 5 , 2 5 1 , 2 8 3 7 1 . 5 0 % 6 , 3 9 6 , 8 7 6 - 2 . 7 8 % 3 , 5 3 2 , 9 9 4 5 5 . 2 3 % 8 7 , 2 5 0 , 2 4 1 6 9 . 4 7 % 2 8 4 , 7 5 8 4 . 4 5 % 10 / 1 / 2 0 1 7 2 0 1 9 6 , 9 5 5 , 5 2 4 - 2 . 6 8 % 3 , 4 4 0 , 8 9 8 4 9 . 4 7 % 8 8 , 7 7 6 , 3 5 7 7 2 . 2 7 % 6 , 7 5 4 , 6 1 1 - 2 . 9 1 % 3 , 7 5 8 , 2 6 6 5 5 . 6 4 % 9 1 , 0 5 2 , 4 0 0 7 0 . 0 7 % 3 1 7 , 3 6 8 4 . 7 0 % 10 / 1 / 2 0 1 8 2 0 2 0 7 , 2 5 9 , 3 3 4 - 3 . 0 6 % 3 , 5 7 0 , 1 4 0 4 9 . 1 8 % 9 2 , 4 3 0 , 5 4 5 7 3 . 1 6 % 6 , 9 8 8 , 1 0 3 - 3 . 3 4 % 3 , 8 9 8 , 6 6 3 5 5 . 7 9 % 9 4 , 9 9 5 , 5 3 7 7 0 . 8 8 % 3 2 8 , 5 2 3 4 . 7 0 % 10 / 1 / 2 0 1 9 2 0 2 1 7 , 6 8 8 , 3 2 5 - 2 . 0 8 % 3 , 7 9 3 , 4 1 9 4 9 . 3 4 % 9 6 , 0 2 5 , 8 7 1 7 4 . 0 4 % 7 , 3 4 0 , 2 8 5 - 2 . 4 5 % 4 , 1 5 9 , 7 4 0 5 6 . 6 7 % 9 8 , 9 0 0 , 5 9 8 7 1 . 7 8 % 3 6 6 , 3 2 1 4 . 9 9 % 10 / 1 / 2 0 2 0 2 0 2 2 7 , 7 9 1 , 8 0 3 - 0 . 6 3 % 3 , 8 2 1 , 1 0 0 4 9 . 0 4 % 9 9 , 6 6 7 , 6 6 7 7 4 . 9 5 % 7 , 3 4 7 , 2 9 2 - 1 . 0 9 % 4 , 1 6 2 , 9 7 6 5 6 . 6 6 % 1 0 2 , 8 6 0 , 5 0 2 7 2 . 7 6 % 3 4 1 , 8 7 6 4 . 6 5 % 10 / 1 / 2 0 2 1 2 0 2 3 8 , 3 1 1 , 4 1 8 3 . 5 1 % 3 , 5 6 0 , 6 1 1 4 2 . 8 4 % 1 0 2 , 1 3 2 , 7 3 7 7 6 . 6 6 % 7 , 7 7 2 , 7 6 4 2 . 9 1 % 3 , 9 9 0 , 5 3 7 5 1 . 3 4 % 1 0 5 , 6 2 5 , 4 9 9 7 4 . 5 4 % 4 2 9 , 9 2 6 5 . 5 3 % 10 / 1 / 2 0 2 2 2 0 2 4 8 , 6 8 6 , 4 6 5 5 . 7 9 % 3 , 4 7 0 , 2 4 3 3 9 . 9 5 % 1 0 4 , 5 8 2 , 3 2 5 7 8 . 4 2 % 8 , 1 1 3 , 6 5 9 5 . 0 9 % 3 , 8 3 6 , 1 3 8 4 7 . 2 8 % 1 0 8 , 3 6 9 , 1 1 8 7 6 . 3 3 % 3 6 5 , 8 9 5 4 . 5 1 % 10 / 1 / 2 0 2 3 2 0 2 5 9 , 0 1 2 , 0 4 4 5 . 4 8 % 3 , 2 3 3 , 5 2 1 3 5 . 8 8 % 1 0 7 , 0 6 6 , 8 3 9 7 9 . 8 2 % 8 , 4 6 2 , 0 3 5 4 . 8 0 % 3 , 6 3 0 , 2 1 3 4 2 . 9 0 % 1 1 1 , 1 4 6 , 5 6 4 7 7 . 8 6 % 3 9 6 , 6 9 2 4 . 6 9 % 10 / 1 / 2 0 2 4 2 0 2 6 9 , 4 0 6 , 5 8 7 5 . 1 7 % 3 , 3 7 8 , 8 4 6 3 5 . 9 2 % 1 0 9 , 4 5 2 , 9 6 6 8 1 . 0 5 % 8 , 8 6 3 , 2 5 8 4 . 5 8 % 3 , 8 5 9 , 9 4 9 4 3 . 5 5 % 1 1 3 , 9 0 9 , 0 1 5 7 9 . 1 5 % 4 8 1 , 1 0 3 5 . 4 3 % 10 / 1 / 2 0 2 5 2 0 2 7 9 , 6 9 7 , 2 7 3 4 . 9 3 % 3 , 3 8 6 , 2 8 8 3 4 . 9 2 % 1 1 1 , 8 3 5 , 9 3 9 8 2 . 0 1 % 9 , 1 7 6 , 6 3 1 4 . 4 2 % 3 , 9 1 1 , 0 8 0 4 2 . 6 2 % 1 1 6 , 7 4 3 , 3 0 9 8 0 . 1 9 % 5 2 4 , 7 9 2 5 . 7 2 % 10 / 1 / 2 0 2 6 2 0 2 8 1 0 , 0 7 0 , 9 7 4 4 . 6 5 % 4 , 3 1 3 , 3 9 8 4 2 . 8 3 % 1 1 4 , 1 6 7 , 9 2 5 8 3 . 0 4 % 9 , 5 1 3 , 3 9 7 4 . 2 5 % 4 , 9 8 3 , 1 1 7 5 2 . 3 8 % 1 1 9 , 5 2 5 , 4 9 2 8 1 . 3 1 % 6 6 9 , 7 1 9 7 . 0 4 % 10 / 1 / 2 0 2 7 2 0 2 9 1 0 , 4 8 6 , 3 0 4 4 . 4 0 % 4 , 6 8 2 , 1 3 5 4 4 . 6 5 % 1 1 6 , 4 4 0 , 0 8 9 8 4 . 0 2 % 9 , 8 7 2 , 5 1 0 4 . 0 5 % 5 , 3 4 4 , 9 7 7 5 4 . 1 4 % 1 2 2 , 2 5 1 , 0 7 1 8 2 . 4 0 % 6 6 2 , 8 4 2 6 . 7 1 % 10 / 1 / 2 0 2 8 2 0 3 0 1 0 , 7 9 0 , 3 7 1 4 . 1 9 % 4 , 7 6 3 , 9 4 9 4 4 . 1 5 % 1 1 8 , 7 3 6 , 0 5 2 8 5 . 7 8 % 1 0 , 1 2 5 , 4 4 0 3 . 8 7 % 5 , 4 4 9 , 5 1 2 5 3 . 8 2 % 1 2 4 , 9 4 3 , 1 8 7 8 4 . 3 2 % 6 8 5 , 5 6 3 6 . 7 7 % 10 / 1 / 2 0 2 9 2 0 3 1 1 1 , 2 4 5 , 7 1 1 4 . 0 4 % 4 , 8 9 5 , 2 5 8 4 3 . 5 3 % 1 2 1 , 0 2 5 , 0 1 2 8 7 . 8 4 % 1 0 , 4 6 0 , 8 1 4 3 . 7 8 % 5 , 5 9 9 , 6 7 4 5 3 . 5 3 % 1 2 7 , 5 1 9 , 7 1 1 8 6 . 4 7 % 7 0 4 , 4 1 6 6 . 7 3 % 10 / 1 / 2 0 3 0 2 0 3 2 1 1 , 4 4 9 , 4 9 7 3 . 8 8 % 4 , 3 7 2 , 5 6 3 3 8 . 1 9 % 1 2 3 , 3 5 4 , 1 6 6 8 9 . 9 7 % 1 0 , 7 4 6 , 6 0 5 3 . 6 1 % 5 , 1 1 7 , 5 3 3 4 7 . 6 2 % 1 3 0 , 0 0 6 , 8 8 8 8 8 . 6 8 % 7 4 4 , 9 7 0 6 . 9 3 % 10 / 1 / 2 0 3 1 2 0 3 3 1 1 , 8 9 4 , 8 8 1 3 . 9 2 % 4 , 2 6 5 , 5 0 4 3 5 . 8 6 % 1 2 5 , 6 5 7 , 5 0 2 9 2 . 1 8 % 1 1 , 2 0 5 , 0 0 5 3 . 8 8 % 5 , 0 6 8 , 0 2 4 4 5 . 2 3 % 1 3 2 , 4 2 1 , 8 7 2 9 0 . 9 8 % 8 0 2 , 5 2 0 7 . 1 6 % T o t a l 7 3 , 4 5 5 , 3 5 0 8 2 , 3 1 9 , 3 4 7 8 , 8 6 3 , 9 9 7 T o t a l P r e s e n t V a l u e 4 0 , 7 5 9 , 8 7 3 4 5 , 1 6 4 , 8 6 4 4 , 4 0 4 , 9 9 1 C i t y o f P a l m B e a c h G a r d e n s P o l i c e O f f i c e r s ' P e n s i o n F u n d 2 0 - Y e a r P r o jec t i o n o f R e q u i r e d C i t y C o n t r i b u t i o n s C u r r e n t P l a n ; 6 . 5 % p h a s e d - i n S c e n a r i o 2 ( 3 % M u l t i p l i e r ; A g e 5 2 & 1 0 o r 2 5 & O u t ) ; 6 . 5 % p h a s e d - i n Re q u i r e d C i t y C o n t r i b u t i o n Re q u i r e d C i t y C o n t r i b u t i o n Cost/(Savings) 0 1, 0 0 0 , 0 0 0 2, 0 0 0 , 0 0 0 3, 0 0 0 , 0 0 0 4, 0 0 0 , 0 0 0 5, 0 0 0 , 0 0 0 6, 0 0 0 , 0 0 0 Projected City Contribution Fi s c a l Y e a r E n d Ci t y o f P a l m B e a c h G a r d e n s P o l i c e O f f i c e r s ' P e n s i o n F u n d 20 - Y e a r P r o j e c t i o n o f C i t y C o n t r i b u t i o n R e q u i r e m e n t Cu r r e n t P l a n ; 6 . 5 % p h a s e d - i n Sc e n a r i o 1 ( 5 5 & 1 0 o r 2 5 ) ; 6 . 5 % p h a s e d - i n Sc e n a r i o 2 ( 5 2 & 1 0 o r 2 5 ) ; 6 . 5 % p h a s e d - i n 0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % Projected City Contribution (as a % of Pay) Fi s c a l Y e a r E n d C i t y o f P a l m B e a c h G a r d e n s P o l i c e O f f i c e r s ' P e n s i o n F u n d 20 - Y e a r P r o j e c t i o n o f C i t y C o n t r i b u t i o n R e q u i r e m e n t ( % o f P a y ) Cu r r e n t P l a n ; 6 . 5 % p h a s e d - i n Sc e n a r i o 1 ( 5 5 & 1 0 o r 2 5 ) ; 6 . 5 % p h a s e d - i n Sc e n a r i o 2 ( 5 2 & 1 0 o r 2 5 ) ; 6 . 5 % p h a s e d - i n