File Ref. #042
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CITY OF
MIAMI
BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
RETIREMENT SYSTEM FOR
GENERAL EMPLOYEES
(305) 673-7437
MEMORANDUM
DATE:
March 19, 1998
TO:
Robert Parcher
City Clerk
FROM:
Margaret A. Arculeo ~
Pension Administrator
RE:
General Employees Retirement System of the City of Miami Beach
Annual Report
------------------------------------------------------------------------------------------------------------------
The General Employees Retirement System Ordinance No. 1901, Article 7, Paragraph (q), provides
for an Annual Report to be filed along with the appropriate statistical information. The report
contains the names of the Board members, how often they meet, their mission, objectives, strategies
and accomplishments as a Board during the past fiscal year. The statistical information is reported
in the Actuarial Valuation as of 10/1/97 and the Independent Auditor's Report as of 9/30/97 attached.
Ifthere are any questions, please do not hesitate to contact me at the Pension Office 673-7437.
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ANNUAL STATUS REPORT
RETIREMENT SYSTEM FOR THE GENERAL EMPLOYEES
OF THE CITY OF MIAMI BEACH
For the Year Ended September 30, 1997
The Board of Trustees. listed below, meet on the second Tuesday of each Month:
Jorge Montes, Vice Chairman
Judy Ford, Secretary
James Boyd, Chairman
Ronald Helphand, Trustee
Dean Mielke, Trustee
Robert Thomas, Trustee
Mark Slattery, Trustee
Tom Womble, Trustee
John Woods, Trustee
Term Expires: 2/28/99
2/28/99
9/30/2000
9/30/98
10/31/99
10/31/99
9/30/99
9/30/98
9/30/99
Appointed
Appointed
Elected
Elected
Appointed
Appointed
Elected
Elected
Elected
The Board of Trustees consists of nine persons; four are appointed by the City Manager, three
Members of the System are elected by Employees who are Members of the System, and two are
Retirants elected by the retired Members of the System Trustees serve for a term of three years with
the annual election of a Chairman and Vice Chairman from its membership and Secretary from the
City Manager's appointees. In September 1996 Robert Thomas and Dean Mielke were re-appointed
to three year terms by the City Manager. At their April 8, 1997 meeting the Trustees elected Mr.
Boyd to act as Chairman, Mr. Montes as Vice Chairman and Ms. Ford as Secretary for the Board.
The Trustees are responsible for the proper operation and management of the system and for carrying
out the wishes of the City Commission by administering the provisions of the Pension Plan
Ordinances. They are assisted by contracted professionals in all areas concerning pension. From the
law firm ofCypen & Cypen, Mr. Steve Cypen is legal counsel for the Board and an expert in pension
law.
The Ordinance and Investment Guidelines govern the investment strategy for the Fund's six
investment managers. Mr. Bill Cottle, of Dorn, Helliesen & Cottle, is the fund evaluator and
monitors the managers' peIformance and compliance with the Investment Guidelines. He reviews this
information and advises the Board through quarterly performance reports. The Trustees evaluated
the asset allocation of the Fund and with the assistance ofthe Fund Evaluator indexed 50% of the
Equity portion of the Fund and 50% of the Fixed Income portion. The Portfolio is managed by:
I.C.C. Capital Management managing 15% of the assets in equities; Cadence Capital managing 7.5%
of the assets in small cap equities; Gratry & Co. managing 2.5% of the assets in international
investments; RhumbLine Advisers managing 25% of the assets in an S&P Equity Index Fund;
Wellington Management Co. managing 25% of the assets in a core bond position; and PanAgora
Asset Management managing 25% of the assets in an Enhanced Fixed Income Index Fund. The Fund
experienced a real rate ofretum for the year ended 9/30/97 of approximately 23%. Even with the
payment of approximately $13.3 million in pension benefits, lump sum payments and investment and
administrative expenses, the total assets of the Fund were up from $185,914,732 at 9/30/96 to
$219,626,839 at 9/30/97.
ANNUAL STATUS REPORT
For Plan Year Ended 9/30/97
Page 2 of2
The Actuary for the System is the firm of Gabriel, Roeder, Smith & Company, formerly Kruse,
O'Connor & Ling, Inc., located in Fort Lauderdale. The Actuarial Valuation for the Year Ended
9/30/97 has been completed and filed the State Actuary in Tallahassee. The actuary reported that the
City's contribution rate for 98/99 Plan Year was reduced to 5.19% of covered payroll from 13.46%
for the 97/98 Plan Year. A copy of the Actuarial Valuation has been forwarded to the Budget
Department.
An independent audit was conducted by the accounting firm of Spear, Safer, Harmon & Company
located in Miami. The auditors statistics reconcile to those reported by the actuary. A copy of their
report has been forwarded to the Budget Department.
The mission of the Board is to properly administer the Plan as directed through the Ordinance and
to insure that the original purpose for which the Pension Ordinance was created, which was to
provide retirement and other benefits for eligible employees of the City and their beneficiaries or
dependents, is accomplished.
The objectives for meeting this mission are to coordinate the desires of the Administration along with
the performance of the Plan's professionals, to continue to maximize investments and to secure a
funding process, assisted by actuarially calculated contributions and closely monitored investments,
to meet the operations and liabilities of the Plan.
The General Retirement System and the Unclassified System share an Administrative Staff of three
employees along with other combined administrative and office expenses. Each System is responsible
for those administrative expenses specifically directed to their System.
The System professionally processed the retirement of 17 employees and/or beneficiaries during the
year. The number of Retirants, Disability Retirees and Beneficiaries totals 898. For all those
Members who retired during the fiscal year the following provisions applied:
Normal Retirement Eligibility was age 50 with five years of Creditable Service; benefit was
3 % of Final Average Monthly Earnings for the first 15 years of creditable service plus 4% of
Final Average Monthly Earnings for the years thereafter, not to exceed 90%. Final Average
Monthly Earnings was 1/12 of the average annual earnings of the two highest years.
All benefits in pay status for at least 12 months are subject to a 1 1/2% cost of living increase each
year as of October 1st. based on the original benefit amount.
Terminated employees or those employees who resigned were eligible to request a refund of
accumulated contributions. There were 30 such requests processed for lump sum payments. Vested
Terminations with at least 5 years of creditable service were eligible to request a refund of
accumulated contnbutions, or receive an accrued benefit beginning at age 50, or at age 62 with less
than five years.
c:lw\w\genboardlannoalrpt96
CITY OF MIAMI BEACH, FLORIDA
GENERAL EMPLOYEES
RETIREMENT SYSTEM
FINANCIAL STATEMENTS
FOR THE YEARS ENDED
SEPTEMBER 30,1997 AND 1996
Cerebrating 50 9'ears Of '.Dedicated Service
1947-1997
SPEAR
SAFER ' co..
"ARMON
PROFESSIONAL ..
ASSOCIATION
CERTIFIED PUBLIC ACCOUNTANTS
8350 N. W. 52nd Terrace, Suite 301
Miami. Florida 33166
1-800-776-1099
Tel: (305) 591-8850
Fax: (305) 593-9883
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees of City
of Miami Beach, Florida, General
Employees Retirement System
Miami Beach, Florida
We have audited the accompanying statements of plan net assets of the City of Miami Beach, Florida,
General Employees Retirement System (the "Plan") as of September 30, 1997 and 1996, and the related
statements of changes in plan net assets for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opInIOn.
In our opinion, the financial statements referred to above present fairly, in all material respects,
information regarding the Plan's net assets as of September 30, 1997 and 1996, and changes therein for
the years then ended in conformity with generally accepted accounting principles.
The supplementary schedules of analysis of funding progress and employer contributions by type are not
required parts of the basic financial statements, but are supplementary information. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the supplementary information. However, we did not audit
the information and express no opinion on it.
~/J~ H~~&_
Miami, Florida
December 2, 1997
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CITY OF MIAMI BEACH, FLORIDA
GENERAL EMPLOYEES RETIREMENT SYSTEM
Statements of Plan Net Assets
September 30, 1997 and 1996
ASSETS
Cash
1997 1996
$ 4.949 $ 29.495
1.248.000 1.231.000
54,922,236 90,648,111
54,995,497
80,338,527 71,638,250
26,094,791 14,735,145
13,133,501 7,141,903
392.420 490.828
229.876.972 184.654.237
(11.503.082 )
Interest and dividends receivables
Investments, at fair value:
Common stocks
Common stock index funds
United States Government securities
Corporate bonds
Short-term investments
Other
Total Investments
Payable for Securities Purchased
Net Assets Held in Trust for Pension
Benefits (a schedule of funding progress
is presented on Page 7)
$ 219.626.839
$ 185.914.732
See notes to fmancial statements.
1
CITY OF MIAMI BEACH, FLORIDA
GENERAL EMPLOYEES RETmEMENT SYSTEM
Statements of Changes in Plan Net Assets
Years Ended September 30, 1997 and 1996
1997 1996
Additions:
Contributions -
Employer $ 3,409,645 $ 3,549,633
Employee 1.852.763 1.800A06
5,262,408 5,350,039
Library / Metro Dade 31.024 32.013
Total Contributions 5.293.432 5.382.052
Investment income -
Net appreciation in fair value of investments 33,741,647 9,149,597
Interest income 6,954,602 6,289,393
Dividends 1.063.149 1.477.921
41,759,398 16,916,911
Less investment management expenses 644.479 804.968
Net Investment Income 41.114.919 16.111.943
Total Additions 46.408.351 21.493.995
Deductions:
Benefit paid 12,012,093 11,755,343
Contributions refunded 207,757 133,723
Transfers to other systems 279,975 759,986
Administrative expenses 196.419 196.771
Total Deductions 12.696.244 12.845.823
Net Increase 33.712.107 8.648.172
Net Assets Held in Trust for Pension Benefits:
Beginning of Year 185.914.732 177 .266.560
End of Year $219.626.839 $185.914.732
See notes to financial statements.
2
CITY OF MIAMI BEACH, FLORIDA
GENERAL EMPLOYEES RETIREMENT SYSTEM
Notes to Financial Statements
Years Ended September 30, 1997 and 1996
NOTE 1 - PLAN DESCRIPTION
All full-time employees of the City of Miami Beach, Florida (the "City") who hold classified
positions, except for Policemen and Firemen, are covered by the City of Miami Beach, Florida,
General Employees Retirement System (the "Plan"). A classified employee is one who is
employed by the City on a regular basis, receives compensation from the City for personal
services, and who is within a group or classification of employees designated by the Board of
Trustees as eligible for membership in the Plan. The Plan is the administrator of a single-
employer pension plan that was established by the City in accordance with City Ordinance #1901
(November 1, 1971), as amended through January 10, 1996. At October 1, 1996 and 1995,
membership consisted of:
1996 1995
Retirees and beneficiaries currently receiving
benefits and tenninated employees entitled to
benefits but not yet receiving them -2.Q1 960
Current Employees:
Vested 389 401
Nonvested --11Q ~
Total Current Employees 559 563
Principally all full-time classified employees of the City, except those joining the 401(a) Plan,
must participate in the Plan.
The Plan provides retirement benefits as well as death and disability benefits at two different
levels depending on when the employees entered the Plan. Under the first level (which comprises
all employees in the Plan prior to the dates stated below), employees who retire on or after age 50
with five years of credited service are entitled to an annual retirement ~enefit, payable monthly
for life, in an amount equal to 3% of their fmal average monthly earnings (FAME), for each year
of credited service for the first 15 years, and equal to 4% for every year thereafter, not to exceed
90% of their FAME. FAME is the employee's earnings during the two (2) highest paid years of
creditable service. An annual 1.5% COLA is provided to benefit recipients. All employees are
required to contribute 10% of their salary to the Plan. Employee contributions include buybacks.
Vesting for employees under the first level occurs with five years of credited service and a
retirement age of 50. Upon tennination, the employee may also choose to receive a return of
accumulated contributions with any amount of years of creditable service. An early retirement
benefit is offered, payable for life, that provides for benefits subjected to a reduced scale.
3
CITY OF MIAMI BEACH, FLORIDA
GENERALEMPLOYEESRE~MENTSYSTEM
Notes to Financial Statements (Continued)
NOTE 1 - PLAN DESCRIPTION (Continued)
All employees in the Plan, under either level, are segregated into two unions: American
Federation of State, County, and Municipal Employees (AFSCME) and CW A (formerly
Benevolent). The employees may also be segregated into an "Other" category. Employees who
joined the Plan on or after April 30, 1993 for members of AFSCME, August 1, 1993 for members
of "Other," and February 21, 1994 for members of CWA retire with a benefit of 3% of final
average monthly earnings per year of creditable service. Effective on such dates, each union
bargained with the City to establish new guidelines for retirement benefits. These new guidelines
prescribe for the benefits to begin at or aftp.r age 60 with 10 years of credited service, payable
monthly for life, in an amount equal to 3% of their FAME, for each year of credited service, not
to exceed 80% of their FAME. FAME is now revised to equal the employee's earnings during
their highest 3 years of credited service. These employees are also required to contribute 10% of
their salary to the system.
New employees to the Plan will vest in this new benefit, incrementally, over ten years instead of
five years and the retirement age for them will be age 60 instead of age 50. An early retirement
window option was put into effect for employees with five or more years of service and ages 48
or older. This option granted an additional two years of service to those at or above the normal
retirement age of 50. It also granted a two-year age credit to any employee between ages 48 and
50, which gave them the ability to commence their pension payments up to two years earlier than
normally permitted. This window period lasted 60 days.
If a new employee leaves covered employment, the member may either receive a return of
accumulated employee contributions or the accrued benefit at age 60 with 10 years of credited
service, age 62 with any amount of credited service, or age 60 with any amount subject to a
special vesting schedule which provides for a reduced benefit of 10% per year of credited service
with a maximum of 100%.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The Plan's fmancial statements are prepared using the accrual basis of
accounting. Employee and employer contributions are recognized as revenues in the period in
which employee services are performed. Benefits and refunds are recognized when due and
payable in accordance with the terms of the Plan. Effective October 1, 1996, the Plan has
implemented Statement 25 of the Governmental Accounting Standards Board for financial
statement presentation.
Investments - Investments in common stocks, index funds, and bonds are recorded at fair value as
determined by latest published prices. Short-term investments are recorded at cost which
approximates fair value. Dividend and interest income are recognized when earned. Gains and
losses on sales and exchanges of investments are recognized on the trade date.
Investments may be made as deemed appropriate by the investment managers of the pension plan.
4
CITY OF MIAMI BEACH, FLORIDA
GENERAL EMPLOYEES RETmEMENT SYSTEM
Notes to Financial Statements (Continued)
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Administrative Exoenses - Administrative and investment expenses are paid directly by the Plan.
These expenses include, but are not limited to, all attorney fees and costs incurred by or on behalf
of the Plan. The Plan is responsible for reimbursing the Unclassified Retirement Plan for 60% of
the expenses paid by that Plan that benefit both the Unclassified and General Plans.
Estimates - The preparation of financial statements in conformity with generally accepted
accounting principles requires the plan administrator to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results may differ from
those estimates.
Reclassifications - Certain prior year financial information has been reclassified to conform with
current year presentation.
NOTE 3 - CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE
The Plan's funding policy provides for periodic employer contributions at actuarially determined
rates that, expressed as percentages of annual covered payroll, are sufficient to accumulate
sufficient assets to pay benefits when due. Level percentage of payroll employer contribution
rates are determined using the entry age actuarial cost method. The Plan also uses the level
percentage of payroll method to amortize any unfunded actuarial accrued liability over a 15-year
period.
Effective October 1, 1996, the asset valuation method was changed to the difference between
actual investment return and expected return and will be recognized over five (5) years.
Significant actuarial assumptions used include (a) investment return of 8.5%, net after
administrative expenses, (b) 1983 Group Annuity Mortality Table; for those who have terminated
employment before October 1, 1993, rates are based on the Plan's own experience, (c) for
retirement, once a member is eligible to retire, a probability of retirement based on age is used
(effective October 1, 1996), (d) projected salary increases of 6% per year compounded annually,
attributable to inflation, and (e) cost of living increases of 1.5% per year.
The October 1, 1996 assumption and method changes resulted in a $241,926 reduction in required
contributions for the Plan year September 30, 1997.
The contribution made to the Plan during the year ended September 30, 1997 was $5,262,408 and
was made in accordance with actuarially determined requirements computed through an actuarial
valuation performed as of October 1, 1995. The contribution was attributable to amortization of
unfunded actuarial accrued liability of $867,046 and normal costs of $4,395,362. For the year
ended September 30, 1997, the City contributed $3,409,645 and employees contributed
$1,852,763 which represents 18.4% and 10%, respectively, of covered payroll.
5
CITY OF MIAMI BEACH, FLORIDA
GENERAL EMPLOYEES RETIREMENT SYSTEM
Notes to Financial Statements (Continued)
NOTE 4 - INVESTMENTS
As of September 30, 1997 and 1996, the level of credit risk of the Plan's investments is in
Category 1 as defined by the Governmental Accounting Standard Board, which includes
investments that are incurred or registered or securities held by the Plan or its agent in the Plan's
name. There are no investments, loans to or leases with parties related to the pension plan. There
were no investments in anyone company which exceeded 5% of the net assets available for plan
benefits.
The carrying amounts of investments held at September 30, are as follows:
1997
Common stocks
Common stock index funds
United States Government securities
Corporate bonds
Short-term investments
Other
$ 36,920,494
45,445,671
79,287,400
25,603,073
13,133,501
21.208
$200.411.347
1996
$ 65,899,202
72,628,264
14,996,453
7,141,903
537.248
$161.203.070
Net appreciation (depreciation) in fair value of the Plan's investments (including investments
bought, sold, and held during the year) for the years ended September 30, 1997 and 1996 is as
follows:
1997
Common stocks
Common stock index Funds
United States Government securities
Corporate bonds
Other
$ 21,580,979
10,120,762
1,476,682
556,404
6.820
$33.741.647
1996
$ 10,629,368
(1,108,891)
(336,784)
(34.096)
$ 9.149.597
The calculation of realized gains and losses is independent of the calculation of net appreciation
(depreciation) in fair value of Plan investments. Realized gains and losses on investments that
had been held in more than one fiscal year and sold in the current year were included as a change
in the fair value of investments in the prior years and current year.
Net realized gains on the sale of investments, using the historical cost method of accounting, for
the years ended September 30, 1997 and 1996, amounted to $27,727,189 and $14,187,849,
respectively.
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CITY OF MIAMI BEACH, FLORIDA
GENERALEMPLOYEESRE~MENTSYSTEM
Required Supplementary Information - Schedule of Employer Contributions
Year Ended Annual Required Percentage
Septem ber 30 Contribution Contributed
1994 $ 1,494,969 100%
1995 2,235,227 100
1996 3,549,633 100
8
CITY OF MIAMI BEACH, FLORIDA
GENERALEMWLOYEESRETIrnE~NTSYSTEM
Notes to Required Supplementary Infonnation
The infonnation in the required supplementary schedules was detennined as part of the actuarial valuations
at the dates indicated. For funding progress, October 1993 was the earliest year for which infonnation,
according to the parameters, was available to the actuary. The annual required contribution is reflected for
the corresponding years. Additional infonnation as of October 1, 1996, the latest actuarial valuation,
follows:
Actuarial Cost Method
Entry Age
Equivalent Single Amortization Period
32 years
Amortization Method
Level Dollar Method
Amortization Period
Closed
Actuarial Asset Valuation Method
Difference between actual and expected
return recognized over five years.
Actuarial Assumptions:
Investment rate of return
Projected salary increases
Inflation
Cost of living adjustment (COLA)
8.5%
6%
4%
1.5%
9
OCTOBER 1,1997
ACTUARIAL VALUATION REPORT
FOR THE
CITY OF MIAMI BEACH
RETIREMENT SYSTEM FOR
GENERAL EMPLOYEES
Gabriel, Roeder, Smith and Company
ANNUAL EMPLOYER CONTRIBUTION
IS DETERMINED BY THIS VALUATION
FOR THE PLAN YEAR ENDING
SEPTEMBER 30,1998
TO BE PAID IN THE EMPLOYER
FISCAL YEAR ENDING
SEPTEMBER 30, 1999
Gabriel, Roeder, Smith and Company
GABRIEL, ROEDER, SMITH & COMPANY
Consultants & Actuaries
301 East Las Olas Blvd. . Suite 200 . Ft. Lauderdale, FL 33301 .954-527-1616. FAX 954-525-0083
January 7, 1998
Board of Trustees
City of Miami Beach Retirement
System for General Employees
1700 Convention Center Drive
Miami Beach, Florida 33139
Dear Board Members:
We are pleased to present our October I, 1997 Actuarial Valuation Report for the Plan. The purpose
of the Report is to set forth required contribution levels, to disclose plan assets and actuarial liabilities,
to comment on funding progress and to provide supporting information regarding the operation of the
Plan. This Report is also designed to comply with requirements of the State.
The valuation was performed on the basis of employee, retiree and financial information supplied by
the City. Although we did not audit this information, it was reviewed for reasonableness and
comparability to prior years.
The benefits valued are outlined at the end of the Report. Actuarial assumptions and the actuarial cost
method are also described herein. Any changes in benefits, assumptions or methods are described
in the first section.
We will be pleased to answer any questions pertaining to the valuation and to meet with you to review
this Report.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
By
Statement by Enrolled Actuary
This actuarial valuation and/or cost determination 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. In my opinion, the techniques and assumptions used are
reasonable, meet the requirements and intent of Part VII, Chapter 112, Florida Statutes, and are based
on generally accepted actuarial principles and practices. There is no benefit or expense to be provided
by the plan and/or paid from the plan's assets for which liabilities or current costs have not been
established or otherwise taken into account in the valuation. All known events or trends which may
require a material increase in plan costs or required contribution rates have been taken into account
in the valuation.
~~
Signatu re
1/7/PJ
Date
96-1560
Enrollment Number
Gabriel, Roeder, Smith and Company
TABLE OF CONTENTS
Section Title Pa!e
A Discussion of Valuation Results 1
B Valuation Results
1. Summary of Valuation Results 3
2. Actuarial Present Value of Benefits
and Contributions 4
3. Comparison of Normal Costs 5
4. Liquidation of the Unfunded Actuarial
Accrued Liability 6
5. Actuarial Gains and Losses 8
6. Recent History of Valuation Results It:
7. Recent History of Contributions 13
8. Actuarial Assumptions and Cost Method 14
9. Glossary of Terms 16
C Pension Fund Information
l. Summary of Assets 17
2. Summary of Fund's Income and Disbursements 18
3. Actuarial Value of Assets 19
4. Investment Rate of Return 20
0 Financial Accounting Information
1. FASB No. 35 21
2. GASB No. 25 22
3. GASB No. 27 25
4. Other Disclosures 27
E Miscellaneous Information
1. Reconciliation of Membership Data 28
2. Statistical Data 29
3. Age and Service Distribution 31
F Summary of Plan Provisions 37
Gabriel, Roeder, Smith and Company
SECTION A
DISCUSSION OF VALUATION RESULTS
Gabriel, Roeder, Smith and Company
1
DISCUSSION OF VALUATION RESULTS
Comparison of Reauired Emplover Contributions
The required employer contributions developed in this and last year's actuarial valuations are
as follows:
,---_.... ........"....
....""............... .,..,.-,..".
...-....... ..."'.,---.....--..".....
..... F.......FY E...........
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...,.,....,.,: ..or..... :......::"
."."...... -- .... ,.., ---...
'.................. .......,....,
........ . .",--. ----...
UU.(9/30/99..........>
...".,-......." ",.....
...............-.....".........--.....,.
..............................,'- .,."......
................--.. ....."....,..... .... ,.,"
..................... .................~.. .... .........................................
...................(B"Ilrt~)...................
Required Employer Contribution
As % of Covered Payroll
$1,008,615
5.19%
$2,496,704
13.46%
$(1,488,089)
(8.27)%
The contribution has been adjusted for interest on the basis that employer contributions are
made in a single payment on the first day of the fiscal year. The actual employer contribution for the
year ending September 30, 1997 was $3,409,645.
Revisions in Benefits
There have been no revisions in benefits since the last actuarial valuation.
Revisions in Actuarial Assumptions and Methods
There have been no changes in assumptions since the last actuarial valuation.
Actuarial Experience
There was a net actuarial gain of $11,502,918 for the year which means actual experience
was more favorable than assumed. The great majority of the gain is due to the investment return
based on the actuarial value of assets of 13.8% which exceeded the assumed rate of 8.5%. The total
rate of return based on the market value of assets was approximately 23.0%.
The actuarial gain translates into a decrease in employer contribution equal to $1,385,187,
or 7.12% of covered payroll.
Gabriel, Roeder, Smith and Company
2
Analysis of Chamze in Employer Contribution
As previously indicated, the required employer contribution has decreased by 8.27% of covered
payroll. The components of this change are as follows:
Contribution rate last year
Change in Normal Cost rate
Change in payment on UAL
Experience gain or loss
Contribution rate this year
13.46%
(0.69)
(0.46)
(7.12)
5.19
The remainder of this Report includes detailed actuarial valuation results, financial information,
miscellaneous information and statistics, and a summary of plan provisions.
Gabriel, Roeder, Smith and Company
SECTION B
VALUATION RESULTS
Gabriel, Roeder, Smith and Company
3
A. Number Included in the Valuation
1. Active Members
2. Inactive Members
576
949
559
967
B. Covered Annual Payroll
$19,446,949
$18,548,261
C. Actuarial Present Value of Projected Benefits
D. Actuarial Value of Assets
210,618,118
192,136,224
206,063,694
175,791,498
E. Actuarial Present Value of Future Contributions
1. Total: C - D
2. Portion Assigned to Unfunded Actuarial
Accrued Liability (UAAl)
3. Portion Assigned to Future Normal Costs
18,481,894
(14,631,182)
33,113,076
30,272,196
(1,938,924)
32,211,120
(' ~. F. Annual Payment Needed to Amortize UAAL (1,531,478) (164,267)
As%ofB (7.88)% (0.89)%
G. Annual Employer Normal Cost 2,461,077 2,465,377
As % of B 12.66% 13.29%
H. Interest on F and G from Valuation Date to
Contribution Date(s) 79,016 195,594
As % of B 0.41% 1.05%
I. Required Employer Contribut: F+ G+ H 1,008,615 2,496,704
As%ofB 5.19% 13.46%
J. Year to Which Contributions Apply
1. Plan Year Ending 9/30/98 9/30/97
2. Employer Fiscal Year Ending 9/30/99 9/30/98
3. Assumed Date(s) of Employer Contributions 10/1/98 10/1/97
Gabriel, Roeder, Smith and Company
4
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Service Retirement Benefits
b. Vesting Benefits
c. Disability Benefits
d. Preretirement Death Benefits
e. Return of Member Contr.
f. Other
g. Total
2. Inactive Members
a. Service Retirees & Beneficiaries
b. Disability Retirees
c. Terminated Vested Members
d. Total
3. Total for All Members
B. Actuarial Present Value of Projected
Normal Costs
C. Actuarial Accrued Liability: A3 - B
D. Actuarial Value of Assets
E. Unfunded Actuarial Accrued Liability
(UAAL): C - D
F. Actuarial Present Value of Projected
Member Contributions
G. Actuarial Present Value of Projected
Covered Payroll
$76,214,814 $72,158,389
11,015,138 11,097,243
5,389,249 5,175,938
2,277,156 2,175,946
491,019 349,317
0 0
95,387,376 90,956,833
106,031,204 106,332,629
7,171,785 7,396,153
2.027.753 1.378.079
115,230,742 115,106,861
210,618,118 206,063,694
33,113,076 32,211,120
177,505,042 173,852,574
192,136,224 175,791,498
(14,631,182) (1,938,924)
16,413,353 15,743,803
164,133,500 157,438,100
Gabriel, Roeder, Smith and Company
5
.. .
. . . ......
... .. .
. .. ..
'.. .
" . .... .. ... . ..
I
,..\..)\..............................
I
. .... . .,
......... ..... ...................:....:...................../..... ./.
A. Total Normal Cost for
1 Normal Retirement Benefits
2 Vesting Benefits
3 Disability Benefits
4 Preretirement Death Benefits
5. Return of Member Contributions
6. Administrative Expenses
7 Total
As % of Covered Payroll
B Expected Member Contributions
(Discounted to Beginning of Year)
As % of Payroll
C. Net Employer Normal Cost: A7 - B
As % of Payroll
As of October 1
)(<1997 ...........1.. .....:...:......1996
I
I
$ 2,786,574
659,381
346,383
132,687
112,980
252.667
4,290,672
22.06%
1,829,595
9.41%
2,461,077
12.66%
Gabriel, Roeder, Smith and Company
$ 2,716,822
646,636
333,117
127,107
101,861
291.968
4,217,511
22 74%
1,752,134
9.45%
2,465,377
13.29%
6
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY
A. Derivation of the Current UAAL
1. Actuarial Present Value of Projected
Benefits for All Members
2. Actuarial Present Value of Projected
Normal Costs
3. Actuarial Accrued Liab!!ity: 1 - 2
4. Actuarial Value of Assets
5. Unfunded Actuarial Accrued Liability: 3-4
$210,618,118
33,113,076
177,505,042
192,136,224
(14,631,182)
B. UAAL Amortization Period and Payments
Years
Date Source Amount Remaining Amount Payment
Original $ (534,543) 10 $ (515,863) $(72,462)
10/1/92 Exp.(Gain) Loss (5,006,180) 10 (4,860,463) (682,739)
10/1/93 Exp.(Gain) Loss (3,006,333) 11 (2,767,991) (366,071)
10/1/93 Change Assump. 5,324,154 11 4,902,062 648,305
10/1/93 Change Bens. 2,587,206 11 2,382,093 315,035
10/1/94 Exp.(Gain) Loss 1,654,392 12 2,963,570 371,888
10/1/94 Change Assump. 8,743,997 12 15,663,420 1,965,548
10/1/95 Exp.(Gain) Loss (3,893,388) 13 (6,299,535) (754,916)
10/1/96 Exp.(Gain) Loss (6,757,095) 14 (12,008,838) (1,381,763)
10/1/96 Change Assump. (1,455,487) 14 (2,586,719) (297,633)
10/1/97 Exp.(Gain) Loss (11.502.918) 15 (11.502.918) n,276,670)
(13,846,195) (14,631,182) (1,531,478)
Gabriel, Roeder, Smith and Company
7
C. Amortization Schedule
The UAAL is being liquidated as a level dollar amount over the number of years remaining in the
amortization period. The expected amortization schedule is as follows:
1997 $(14,631,182)
1998 (14,213,177)
1999 (13,759,644)
2000 (13,267,560)
2001 (12,733,650)
2002 (12,154,356)
2007 (8,430,062)
2012 0
Expected Unfunded Liability
$0 $0
-$2 -$2
-$4 -$4
(I) -$6 -$6 (I)
c: c:
.Q .Q
:E -$8 -$8 ~
-$10 -$10
-$12 -$12
-$14 -$14
-$16 -$16
# # ~ #' q,# ~q,
...-: ~
Valuation Date
Figure 81
Gabriel, Roeder, Smith and Company
8
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment turnover, investment income,
expenses, salary increases, and other factors have been based on long range trends and expectations.
Actual experience can vary from these expectations. The variance is measured by the gain and loss
for the period involved. If significant long term experience reveals consistent deviation from what has
been expected and that deviation is expected to continue, the assumptions should be modified. The
net actuarial gain (loss) for the past year is computed as follows:
A.
Last Year's UML
$ (1,938,924)
2,465,377
B.
Last Year's Employer Normal Cost
c.
Last Year's Employer Contributions
3,409,645
o.
Interest at Assumed Rate on:
1. A and B for one year
2. C from dates paid
3. 1 - 2
44,748
289,820
(245,072)
(3,128,264)
E.
This Year's Expected UML: A + B - C + 03
F.
This Year's Actual UML (Before any Changes
in Benefits or Assumptions)
G.
Net Actuarial Gain (Loss): E - F
(14,631,182)
11,502,918
Net actuarial gains in previous years have been as follows:
1990 $ (6,876,123)
1991 521,757
1992 5,006,180
1993 3,006,333
1994 (1,654,392)
1995 3,893,388
1996 6,757,095
Figure B1 shows the figures from the previous table in graphic form.
Gabriel, Roeder, Smith and Company
9
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Gabriel, Roeder, Smith and Company
10
The fund earnings and salary increase assumptions have considerable impact on the cost of the
Plan so it is important that they are in line with the actual experience. The following table shows the
actual fund earnings and salary increase rates compared to the assumed rates for the last several
years:
9/30/88 8.0% 8.0% 9.8% 6.0%
9/30/89 11.6 8.0 1.9 6.0
9/30/90 7.3 8.5 7.5 6.0
9/30/91 8.1 8.5 3.0 6.0
9/30/92 13.7 8.5 2.0* 6.0
9/30/93 11.4 8.5 3.1 6.0
9/30/94 6.8 8.5 3.9 6.0
9/30/95 11.4 8.5 8.8 6.0
9/30/96 15.3 8.5 4.2 6.0
9/30/97 13.8 8.5 6.0 6.0
Average 10.7% 5.0%
* Approximate rate
Note: Figures before 1992 were taken from Reports of Buck Consultants.
The actual investment return rates shown above are based on the actuarial value of assets. The
actual salary increase rates shown above are the increases received by those active members who
were included in the actuarial valuation both at the beginning and the end of each period. Figures 83
and 84 show the figures from the previous table in graphic form.
Gabriel, Roeder, Smith and Company
11
History of Investment Return
Based on Actuarial Value of Assets
16%
14%
12%
10%
8%
6%
4%
2%
0%
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Figure B3
History of Salary Increases
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8%
12%
10%
10%
8%
6%
6%
4%
4%
2%
2%
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-- Actual *" Assumed
Figure 84
Gabriel, Roeder, Smith and Company
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10/1/94
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10/1/96
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.-.'." .,.-... .... . ..... '..
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13
9/30/94 $ 1,494,969 9.59% $ 1,494,969
9/30/95 2,235,227 14.77 2,235,227
9/30/96 3,549,633 22.62 3,549,633
9/30/97 3,409,645 20.45 3,409,645
9/30/98 2,496,704 13.46
9/30/99 1,008,615 5.19
Gabriel, Roeder, Smith and Company
14
ACTUARIAL ASSUMPTIONS AND COST METHOD
A. Cost Method
1. Funding
2. Accumulated Benefit Obligation
B. Investment Earnings*
C. Salary Increases*
D. Inflation
E. Retirement Age
F. Turnover Rates
G. Mortality Rates
H. Disability
1. Rates
2. Percent Service Connected
3. Mortality
I. Asset Value
J. Administrative Expenses
K. Increase in Covered Payroll
L. Cost of Living Increase
M. Changes Since Last Valuation
* Including inflation
Entry Age Actuarial Cost Method.
Accrued Benefit Method
8.5% per year, compounded annually; net rate after
investment related expenses.
6% per year up to the assumed retirement age.
4 % per year.
See Table below for rates of retirement.
See Table below.
1983 Group Annuity Mortality Tables for males and
females; for those who have terminated employment
before 10/1/93, rates are based on the group's own
experience; see Table below.
See Table below.
50%
Regular rates set ahead five years.
Difference between actual and expected return recognized
over 5 years; see later page for cietails.
Non-investment related expenses are assumed to be the
average of such expenses over the last two years.
NA
1.5% per year.
None.
Gabriel, Roeder, Smith and Company
15
M.ale Fernale Male
25 0.05% 0.03% 0.22% 0.05% 14.6% 0.07% NA NA
30 0.06 0.03 0.22 0.06 7.8 0.08 NA NA
35 0.09 0.05 0.26 0.08 5.7 0.13 NA NA
40 0.12 0.07 0.36 0.10 4.7 0.20 NA NA
45 0.22 0.10 0.55 0.15 3.3 0.31 NA NA
50 0.39 0.16 0.81 0.26 2.1 0.46 30.0% 5.0%
55 0.61 0.25 1.22 0.47 1.1 0.64 12.0 5.0
60 0.92 0.42 1.81 0.78 0.4 1.04 20.0 60.0
65 1.56 0.71 2.70 1.19 NA NA 100.0 100.0
70 2.75 1.24 4.05 1.97 NA NA NA NA
75 4.46 2.40 5.75 3.13 NA NA NA NA
80 7.41 4.29 7.41 4.29 NA NA NA NA
85 11.48 6.99 11.48 6.99 NA NA NA NA
90 16.63 11.18 16.63 11.18 NA NA NA NA
95 23.41 18.24 23.41 18.24 NA NA NA NA
100 31.92 29.52 31.92 29.52 NA NA NA NA
* For those eligible to retire.
Gabriel, Roeder, Smith and Company
16
GLOSSARY OF TERMS
Actuarial Present Value is the value of an amount or series of amounts payable at various times,
determined as of the valuation date by the application of the set of actuarial assumptions.
Actuarial Assumptions are assumptions as to the occurrence of future events affecting pension costs.
The previous page outlines the Actuarial Assumptions utilized in this valuation.
Actuarial Cost Method is a procedure for determining the Actuarial Present Value of pension plan
benefits and for developing an actuarially equivalent allocation of such value to time periods, usually
in the form of a Normal Cost and Actuarial Accrued Liability.
Entry Ar!.e Actuarial Cost Method is a method under which the current year's cost, or Normal Cost,
is calculated for each individual. This Normal Cost is the amount, determined as a level percentage
of pay, which if deposited each year from the time an employee was first included in the actuarial
valuation (or would have been had the plan been in effect) until retirement, would fully fund his or her
benefit.
Entry Af!.e Actuarial Accrued Liabilitv at any given time is equal to the Actuarial Present Value of
Projected Benefits minus the Actuarial Present Value of future Normal Costs. Under the Entry Age
Actuarial Cost Method, experience gains (losses) reduce (increase) the Actuarial Accrued Liaoility.
Increases or decreases in the Actuarial Accrued Liability will also occur as a result of changes in
pension plan benefits, actuarial assumptions, or asset value methods.
Unfunded Actuarial Accrued Liabilitv is the Actuarial Accrued Liability, less assets.
Gabriel, Roeder, Smith and Company
SECTION C
PENSION FUND INFORMATION
Gabriel, Roeder, Smith and Company
17
Cash and Securities - Market Value
Cash and Savings Accounts $ 4,949 $ 29,495
Money Market Funds 13,133,501 7,141,903
Treasury Bills
Commercial Paper
Treasury and Agency Bonds & Notes 80,338,527 71,638,250
Corporate Bonds 26,094,791 14,735,145
Common & Preferred Stocks ~09,917,733 90,189,111
Pooled Equity Funds
Pooled Bond Funds
Other Securities 392.420 949.828
Total 229,881,921 184,683,732
Receivables and Accruals
Member Contribution
Employer Contribution
Interest and Dividends 1,248,000 1,231,000
Other
Total 1,248,000 1,231,000
Payables
Benefits
Refunds
Expenses
Other - Pending Securities Purchased 11.503.082
Total 11,503,082
Net Assets - Market Value
Net Assets - Cost Value
219,626,839
190,161,214
185,914,732
162,463,565
Gabriel, Roeder, Smith and Company
18
Year Ending Year Ending
9/30/97 9/30/96
Market Value at Beginning of Period $ 185,914,732 $ 177,266,560
Income
Member Contributions 1,852,763 1,800,406
Employer Contributions 3,409,645 3,549,633
Other Contributions 0 0
Investment Earnings 41,759,398 16,916,911
Other Income 31.024 32.013
Total Income 47,052,830 22,298,963
Disbursements
Monthly Benefit Payments 12,012,093 11,755,343
Lump Sum Distributions
Refunds of Contributions 207,757 133,723
Investment Related Expense 644,479 692,825
Other Administrative Expense 196,419 308,914
Insurance Premiums 0 0
other Expense-Transfers to
Other Systems 279.975 759.986
Total Disbursements 13,340,723 13,650,791
Net Increase During Period 33,712,107 8,648,172
Market Value at End of Period 219,626,839 185,914,732
Gabriel, Roeder, Smith and Company
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20
INVESTMENT RATE OF RETURN
The investment rate of return has been calculated on the following basis:
Basis 1 - Interest, dividends, realized gains (losses) and unrealized appreciation (depreciation) divided
by the weighted average of the market value of the fund during the year. This figure is
normally called the Total Rate of Return.
Basis 2 - The amount of investment earnings recognized in the Actuarial Value of Assets divided by the
weighted average of the Actuarial Value of Assets during the year.
':lri"~b;i~ritRi~;R~tti~rii<
.."........,..., ' , ' , ,-' .",' " ". - ,._,......
... ... ..... '.--, ......-... .. ... ..... -." ,....... - .-.-. --. ,',
9/30/88 NA 8.0%
9/30/89 NA 11.6
9/30/90 NA 7.3
9/30/91 NA 8.1
9/30/92 12.2% 13.7
9/30/93 14.6 11.4
9/30/94 1.4 6.8
9/30/95 20.0 11.4
9/30/96 9.8 15.3
9/30/97 23.0 13.8
Average Compounded Rate
of Return:
- For All Years Shown 13.3% 10.7%
- For Last 5 Years 13.5% 11.7%
Gabriel, Roeder, Smith and Company
SECTION 0
FINANCIAL ACCOUNTING INFORMATION
Gabriel, Roeder, Smith and Company
21
A. Valuation Date 1011197 10/1/96
B. Actuarial Present Value of Accumulated Plan
Benefits
1. Vested Benefits
a. Members Currently Receiving Payments $113,202,989 $113,728,782
b. Terminated Vested Members 2,027,753 1,378,079
c. Other Members 41,755,301 37,591,852
d. Total 156,986,043 152,698,713
2. Non-Vested Benefits 391,223 523,587
3. Total Actuarial Present Value of
Accumulated Plan Benefits: 1d + 2 157,377,266 153,222,300
4. Accumulated Contributions of Active
Members 12,811,683 11,564,514
C. Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1. Total Value at Beginning of Year 153,222,300 145,059,057
2. Increase (Decrease) During the Period
Attributable to:
a. Plan Amendment NA NA
b. Change in Actuarial Assumptions NA (29,230)
c. Latest Member Data, Benefits
Accumulated and Decrease in the
Discount Period 16,654,791 20,841,525
d. Benefits Paid (12.499.825) (12.649.052)
e. Net Increase 4,154,966 8,163,243
3. Total Value at End of Period 157,377,266 153,222,300
D. Market Value of Assets 219,626,839 185,914,732
E. Assets as % of Value of Accumulated Benefits 140% 121%
F. Actuarial Assumptions - See page Entitled
Actuarial Assumptions and Methods
Gabriel, Roeder, Smith and Company
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Gabriel, Roeder, Smith and Company
23
Schedule of Funding of Progress
GASS Statement No. 25
$250.0 120%
$200.0 100%
80%
Q) $1 so.o
c
.Q 60%
:::E $100.0
40%
$50.0 20%
$0.0 0%
!!l ....~~ ~ ....~~ {\
....~'f.s ....~~ ....~~
Actuarial Valuation Date
m Value of Assets . (ML) Entry Age "* Funded Ratio
Figure C10
Schedule of Funding of Progress
GASB Statement No. 25
$25.0 80%
$20.0 60%
$15.0 40%
$10.0 20%
Q) $5.0
c .Q
~ 0% "ii
:E $0.0 a:
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-$20.0 -80%
....~~ ....~~ ~ ....~~ $'
....~~
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Actuarial Valuation Date
lm Unfunded ML . Covered Payroll "* UML as % of Payroll
Figure C11
24
SCHEDULE OF EMPLOYER CONTRIBUTIONS
(GASB Statement No. 25)
. .-- ,....,.........-... .......".--.............
....."...............,.......-. -. ...........,...............
..,.....,'......,'..'.............'.'.....'...',',....-...... ....... ........,......'.....................................'>>>>>>:-:-:.;.
..........................A~tijalCCC> .C....:..i..)
.\/<:ont~iJ:)~tiojl ......... ....e"t~13i~............
..>)>R~eivea...:.... .......... .Ctontr1buted:.
1994
1995
1996
1997
$ 1,494,969
2,235,227
3,549,633
3,409,645
$ 1,494,969
2,235,227
3,549,633
3,409,645
100%
100
100
100
Gabriel, Roeder, Smith and Company
25
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT NO. 27)
Employer FYE September 30
1998
Annual required contribution*
$2,496,704
Interest on net pension obligation
o
Adjustment to annual required contribution
o
Annual pension cost
2,496,704
Contributions made
Increase (decrease) in net pension obligation
Net pension obligation at beginning of year
o
Net pension obligation at end of year
* Includes expected State contribution
THREE-YEAR TREND INFORMATION
Fiscal Annual Pension Percentage of Net Pension
Year Ending Cost (APC) APC Contributed Obligation
9/30/98 $2,496,704 % $
9/30/99
9/30/00
Gabriel, Roeder, Smith and Company
Contribution Rates
Employer (and State)
Plan members
Actuarial valuation date
Actuarial cost method
Amortization method
RELATED INFORMATION
Remaining amortization period (years)
Asset valuation method
Actuarial assumptions
Investment rate of return*
Projected salary increases*
*Includes inflation at
Cost of Living adjustments
Gabriel, Roeder, Smith and Company
26
13.46%
10.00%
10/1/96
Entry Age Normal
Level dollar, closed
14
5-year smoothed market
8.50%
6.00%
4%
1.5%
27
OTHER DISCLOSURES
A. Required Annual Contributions for Fiscal Year Ending September 30, 1997.
Employer Normal Cost
$2,342,263
Payment Towards Unfunded
Actuarial Liability
800,267
Interest on These Amounts from
Actuarial Valuation Date to
Expected Payment Dates
267,115
3,409,645
Total Required Contribution
Effect on Contribution of
Changes in Actuarial Assumptions
or Methods
NA
Effect on Contribution of
Changes in Plan Provisions
NA
B. Description of Changes in Actuarial Assumptions or Methods - None.
C. Description of Changes in Plan Provisions - None.
D. Description of Employee Groups Covered - See Section entitled Summary of Plan Provisions.
E. Description of Covered Employees Who Are Not Included in Valuation - None.
F. Number and Compensation of Participants - See Section entitled Miscellaneous Information.
G. Has Actuary Been Notified of Any Decision by Plan Sponsor to Terminate the Plan? Response
- No.
H. Net Actuarial Gain or Loss - See page entitled Actuarial Gains and Losses. See Glossary of
Terms for methods of recognizing such gains and losses. Any unrealized appreciation
(depreciation) included in the actuarial value of assets is recognized in the same manner as
any other gains or losses.
I. All responses in this Section have been made in accordance with our understanding of FASB
No.35, GASB No.25, GASB No. 27 and APB Opinion No.8.
Gabriel, Roeder, Smith and Company
SECTION E
MISCELLANEOUS INFORMATION
Gabriel, Roeder, Smith and Company
,
28
From 10/1/96
To 10/1/97
From 10/1/95
To 10/1/96
IA.
,.", <.'.,.._,'.-....-..;.'...','..._-..--.."
....>.,'...........-::..........:...........'.....'.....................-.................>.....
· Active Members
I
1. Number Included in Last Valuation
2. New Members Included in Current Valuation
3. Employment Terminations
4. Service Retiremants
5. Disability Retirements
6. Deaths
7. Other - Transfer to other Plans
8. Number Included in This Valuation
559
61
(21)
(13)
(1)
o
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576
563
60
(27)
(19)
o
(2)
(16)
559
<->>::.-:':-.---"--'.','.'.',...-,,".'..
.. B. Terrninatec:fVestedl\1ernbers
I
1. Number Included in Last Valuation
2. Additions from Active Members
3. Lump Sum Payments
4. Payments Commenced
5. Deaths
6. Other
7. Number Included in This Valuation
48
5
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(3)
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51
55
2
(5)
(5)
o
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48
.C/~l"Iit~R~lit=~Di~bmtYR~tir~~HdB~ri~fi~i~ti~ .
1. Number Included in Last Valuation
2. Additions from Active Members
3. Additions from Terminated Vested Members
4. Deaths Resulting in No Further Payments
5. Deaths Resulting in New Survivor Benefits
6. End of Certain Period - No Further Payments
7 . Other
8. Number Included in This Valuation
919
14
3
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905
17
4
(16)
2
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919
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o
o
o
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<<
MIAMI BEACH GENERAL EMPLOYEES WITH RATES
AGE
GROUP
0-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
TOTAL
SERVICE
GROUP
o
1
2
3
4
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40+
TOTAL
NUMBER
OF
PEOPLE
o
o
6
25
58
53
66
35
16
15
1
1
1
1
o
278
NUMBER
OF
PEOPLE
o
o
o
11
8
19
84
52
73
38
11
o
1
o
278
MAL
TOTAL
ANNUAL
EARNINGS
o
o
171077
865297
2188933
2116577
2682661
1337498
578498
565636
39138
29892
40274
40274
o
10655755
MAL
TOTAL
ANNUAL
EARNINGS
o
o
o
347068
278048
625117
3037742
2003002
2861668
1629266
469069
o
29892
o
10655755
TABLE A, ANNUAL EARNINGS BY AGE GROUPS
E
AVERAGE
ANNUAL
EARNINGS
o
o
28513
34612
37740
39935
40646
38214
36156
37709
39138
29892
40274
40274
o
38330
F E
NUMBER
OF
PEOPLE
o
o
6
18
23
18
32
24
9
2
3
1
1
o
o
137
M A
TOTAL
ANNUAL
EARNINGS
o
o
204592
625587
861503
701954
1248976
882222
266956
69288
98797
28652
31382
o
o
5019908
L E
AVERAGE
ANNUAL
EARNINGS
o
o
34099
34755
37457
38997
39030
36759
29662
34644
32932
28652
31382
o
o
36642
NUMBER
OF
PEOPLE
o
o
12
43
81
71
98
59
25
17
4
2
2
1
o
415
TABLE B. ANNUAL EARNINGS BY SERVICE GROUPS
E
AVERAGE
ANNUAL
EARNINGS
o
o
o
31552
34756
32901
36164
38519
39201
42875
42643
o
29892
o
38330
F E
NUMBER
OF
PEOPLE
o
o
o
14
3
17
51
36
23
8
1
o
1
o
137
M A
TOTAL
ANNUAL
EARNINGS
o
o
o
426375
123087
549463
1768019
1339244
975892
318454
37454
o
31382
o
5019908
L E
AVERAGE
ANNUAL
EARNINGS
o
o
o
30455
41029
32321
34667
37201
42430
39807
37454
o
31382
o
36642
Gabriel, Roeder, Smith and Company
NUMBER
OF
PEOPLE
o
o
o
25
11
36
135
88
96
46
12
o
2
o
415
31
AS OF 10/1/97
A L
TOTAL
ANNUAL
EARNINGS
o
o
375668
1490884
3050436
2818532
3931636
2219721
845454
634924
137935
58544
71656
40274
o
15675663
A L
TOTAL
ANNUAL
EARNINGS
o
o
o
773444
401135
1174579
4805761
3342246
3837561
1947720
506523
o
61274
o
15675663
L
AVERAGE
ANNUAL
EARNINGS
o
o
31306
34672
37660
39698
40119
37622
33818
37348
34484
29272
35828
40274
o
37773
L
AVERAGE
ANNUAL
EARNINGS
o
o
o
30938
36467
32627
35598
37980
39975
42342
42210
o
30637
o
37773
MIAMI BEACH GENERAL GROUP B
AGE
GROUP
0-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
TOTAL
SERVICE
GROUP
o
1
2
3
4
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40+
TOTAL
M
NUMBER
OF
PEOPLE
o
15
19
25
23
12
10
11
1
2
o
o
o
o
o
118
M
NUMBER
OF
PEOPLE
10
67
31
9
1
118
o
o
o
o
o
o
o
o
118
A L
TOTAL
ANNUAL
EARNINGS
o
331798
445703
606885
518747
251551
252643
283014
24832
40072
o
o
o
o
o
2755243
A L
TOTAL
ANNUAL
EARNINGS
183482
1558821
748337
239772
24832
2755243
o
o
o
o
o
o
o
o
2755243
TABLE A, ANNUAL EARNINGS BY AGE GROUPS
E
AVERAGE
ANNUAL
EARNINGS
o
22120
23458
24275
22554
20963
25264
25729
24832
20036
o
o
o
o
o
23350
F E
NUMBER
OF
PEOPLE
o
5
9
12
6
5
4
1
1
o
o
o
o
o
o
43
M A
TOTAL
ANNUAL
EARNINGS
o
108145
223376
301413
131296
112605
88855
23316
27036
o
o
o
o
o
o
1016043
L E
AVERAGE
ANNUAL
EARNINGS
o
21629
24820
25118
21883
22521
22214
23316
27036
o
o
o
o
o
o
23629
NUMBER
OF
PEOPLE
o
20
28
37
29
17
14
12
2
2
o
o
o
o
o
161
TABLE B, ANNUAL EARNINGS BY SERVICE GROUPS
E
AVERAGE
ANNUAL
EARNINGS
18348
23266
24140
26641
24832
23350
o
o
o
o
o
o
o
o
23350
F
NUMBER
OF
PEOPLE
7
21
13
1
1
43
o
o
o
o
o
o
o
o
43
E
M A
TOTAL
ANNUAL
EARNINGS
144430
483513
348110
21662
18327
1016043
o
o
o
o
o
o
o
o
1016043
L E
AVERAGE
ANNUAL
EARNINGS
20633
23024
26778
21662
18327
23629
o
o
o
o
o
o
o
o
23629
Gabriel, Roeder, Smith and Company
NUMBER
OF
PEOPLE
17
88
44
10
2
161
o
o
o
o
o
o
o
o
161
32
115 OF 10/1/97
A L
TOTAL
ANNUAL
EARNINGS
o
439943
669079
908298
650043
364155
3414 98
306329
51868
40072
o
o
o
o
o
3771286
A L
TOTAL
ANNUAL
EARNINGS
327912
2042334
1096447
261434
43159
3771286
o
o
o
o
o
o
o
o
3771286
L
AVERAGE
ANNUAL
EARNINGS
o
21997
23896
24549
22415
21421
24393
25527
25934
20036
o
o
o
o
o
23424
L
AVERAGE
ANNUAL
EARNINGS
19289
23208
24919
26143
21579
23424
o
o
o
o
o
o
o
o
23424
MIAMI BEACH GENERAL EMPLOYEES WITH RATES
AGE
GROUP
0-19
20-24
25-29
30-34
35-39
40-44
45-49
SO-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
TOTAL
0-19
20-24
25-29
30-34
35-39
40-44
45-49
SO-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
TOTAL
0-4
o
o
2
2
4
1
3
4
1
o
o
o
o
o
o
17
5-9
o
o
4
2
4
3
2
1
1
o
o
o
1
1
o
19
TABLE C, SERVICE GROUPS BY AGE GROUPS
S E
10-14
o
o
2
18
18
13
15
9
2
7
o
o
o
o
o
84
o
o
4
14
10
5
7
5
5
o
1
o
o
o
o
51
R V I
15-19
o
o
o
4
11
13
7
6
6
4
1
o
o
o
o
52
o
o
o
2
7
9
9
6
2
o
1
o
o
o
o
36
F E
o
o
o
o
2
3
8
7
1
1
o
1
o
o
o
23
C E
20-24
G R 0 U P
25-29 30-34
Gabriel, Roeder, Smith and Company
MAL E
o 0 0
o 0 0
o 0 0
1 0 0
25 0 0
16 8 0
15 18 9
9 8 2
5 2 0
2 2 0
o 0 0
o 0 0
o 0 0
o 0 0
o 0 0
73 38 11
M A
o
o
o
o
o
o
4
2
o
1
1
o
o
o
o
8
E
o
o
o
o
o
o
1
o
o
o
o
o
o
o
o
1
L
35-39
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
33
AS OF 10/1/97
40+
o
o
o
o
o
o
o
o
o
o
o
1
o
o
o
1
o
o
o
o
o
o
o
o
o
o
o
o
1
o
o
1
TOTAL
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
6
25
58
53
66
35
16
15
1
1
1
1
o
278
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
6
18
23
18
32
24
9
2
3
1
1
o
o
137
MIAMI BEACH GENERAL GROUP B
AGE
GROUP
0-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
TOTAL
0-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
TOTAL
0-4
o
15
19
25
23
12
10
11
1
2
o
o
o
o
o
118
o
5
9
12
6
5
4
1
1
o
o
o
o
o
o
43
5-9
TABLE C. SERVICE GROUPS BY AGE GROUPS
S E R V I
10-14 15-19
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
F E
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
C E
20-24
MAL E
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
o 0
M A
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
G R 0 U P
25-29 30-34
L E
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
Gabriel, Roeder, Smith and Company
35-39
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
34
lIS OF 10/1/97
40+
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
TOTAL
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
15
19
25
23
12
10
11
1
2
o
o
o
o
o
118
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
5
9
12
6
5
4
1
1
o
o
o
o
o
o
43
35
MIAMI BEACH GENERAL INAc:nVES BEFORE '93 10/1/97
Schedule of Non-Active Participant Data
Terminated Terminated
Vested Disabled Retired Non-Vested
Total Total Total Total
Age Number Benefit Number Benefit Number Benefit Number Benefit
Under 45 10 21774 6 90327 4 18166 0 0
45 to 49 11 52867 4 68635 4 27771 0 0
50 to 54 5 12287 7 152567 18 280256 0 0
55 to 59 1450 3 37113 53 1042145 0 0
60 to 64 2 2687 8 104833 102 1626788 0 0
65 to 69 3 779 7 83706 118 1740225 0 0
70 to 74 0 0 13 146005 158 2163538 0 0
75 to 79 0 0 4 33196 142 1580035 0 0
80 to 84 1 6500 2 7948 97 871504 0 0
85 to 89 0 0 1 4597 53 421440 0 0
90 " up 0 0 0 0 15 92105 0 0
Total 35 98344 55 728927 764 9863973 0 0
Average Age 49.7 62.3 71. 7 0.0
Average Benefit 2810 13253 12911 0
Gabriel, Roeder, Smith and Company
36
MIAMI BEACH GENERAL INACTIVES AFTER . 93 10/1/97
Schedule of Non-Active Participant Data
Terminated Terminated
Vested Disabled Retired Non-Vested
Total Total Total Total
Age Number Benefit Number Benefit Number Benefit Number Benefit
Under 45 8 82607 0 0 2 6606 0 0
45 to 49 8 109985 0 0 0 0 0 0
50 to 54 0 0 1 8565 36 770201 0 0
55 to 59 0 0 0 0 18 395019 0 0
60 to 64 0 0 0 0 10 203966 0 0
65 to 69 0 0 0 0 10 184497 0 0
70 to 74 0 0 0 0 1 14280 0 0
75 to 79 0 0 0 0 1 19458 0 0
80 to 84 0 0 0 0 0 0 0 0
85 to 89 0 0 0 0 0 0 0 0
90 " up 0 0 0 0 0 0 0 0
Total 16 192593 1 8565 78 1594027 0 0
Average Age 41.8 50.0 56.5 0.0
Average Benefit 12037 8565 20436 0
Gabriel, Roeder, Smith and Company
SECTION F
SUMMARY OF PLAN PROVISIONS
Gabriel, Roeder, Smith and Company
37
SUMMARY OF PLAN PROVISIONS
Effective Date
November 17,1971 under Ordinance No. 1901; supersedes previous system under Ordinance No. 845.
EIi<<ibilitv
Each general employee who works more than 30 hours per week is eligible for membership on his date
of employment. Members of the Unclassified System, the Fire and Police System, and the City-
sponsored Defined Contribution System are not included.
Creditable Service
Service credited under the predecessor system plus service after such date with respect to which member
contributions are made.
Earnin<<s
For each person who becomes a member after the Second Tier Date, base pay including longevity, but
excluding overtime, shift differential or extra compensation allowances. For each person who became
a member before the Second Tier Date, actual salary or wages received. Earnings does not include lump
sum payments of unused sick or vacation time.
Second Tier Date
April 30, 1993 for members of AFSCME; August 1, 1993 for those classified as "Other"; and February
21, 1994 for members of MBEBA.
Final Avera<<e Monthly Earnin<<s (FAME)
OnE~~-twelfth of average annual Earnings during the two highest paid years of Creditable Service; for those
entering the System after the Second Tier Date, the average is taken over three years.
Normal Retirement
Eligibility
Age 50 and five years of Creditable Service; for those entering after the Second
Tier Date, age 60 and ten years of Creditable Service.
Benefit
3% of FAME multiplied by the first 15 years of Creditable Service plus 4% of
FAME multiplied by years of service in excess of 15, with the total not to exceed
90% of FAME; for those entering after the Second Tier Date, 3% of FAME
multiplied by Creditable Service, with a maximum of'80% of FAME.
Form of Benefit
50% joint and survivor annuity payable only to the spouse or, if no spouse, to
the surviving children until age 21; other options are also available. Spouse's
benefits cease upon remarriage.
Early Retirement
Eligibility
When total of age plus service is 75, but at least age 50.
Gabriel, Roeder, Smith and Company
38
Benefit
Accrued pension actuarially reduced for number of years by which Early
Retirement Date precedes Normal Retirement Date.
Delaved Retirement
Eligibility
Any time after the Normal Retirement Date.
Benefit
Calculated in the same manner as the Normal Retirement Benefit but using the
FAME and Creditable Service as of the actual retirement date.
Jisabilitv Benefits
Eligibility
A total and permanent disability which renders a member incapacitated,
mentally or physically, for the further performance of duty. Five years of
Creditable Service is also required unless the disability is service-connected.
Benefit
Accrued retirement benefit, without reduction, with a minimum of 35% of FAME
if ordinary disability and 75% of t=AME if service-connected. For those entering
after the Second Tier Date, the minimum service-connected benefit is 60% of
FAME. Such amounts are reduced by workers' compensation benefits and, in
certain cases, earned income will be considered in offsetting the benefit. The
period of disability shall be included in Creditable Service for purposes of
computing normal retirement benefits when a disability retiree reaches normal
retirement age.
'reretirement Death Benefits
For a member who has at least three years of Creditable Service but who dies before commencement
of retirement benefits, a monthly benefit is payable to the spouse or, if no spouse, to the children until
age 21. The benefit is equal to 50% of the accrued normal retirement benefit without reduction with the
result being a minimum of 30% of FAME and a maximum of 40% of FAME.
"ermination Benefits
Any member who terminates employment and does not request a refund of his own contributions will
receive his accrued benefit beginning at age 50, if at least five years of Creditable Service are completed,
or at age 62, if less than five years of Creditable Service are completed. For those entering after the
Second Tier Date, and who terminate employment after ten years of Creditable Service, the accrued
benefit is payable at age 60.
)ost Retirement Adiustments
All benefits in pay status are subject to a 1 1/2% increase each year as of October 1st.
:ontributions
From Members
10% of Earnings.
From the City
The amount necessary to fund the Plan properly according to the Plan's actuary.
:hanl!es Since Last Valuation
None.
Gabriel, Roeder, Smith and Company