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File Ref. #192 (2 of 3) r!JZr [~~ f{., Ib-l if /1'J-- f't-tz,t,(1 3{ )dzJl) :J- eft ] OCTOBER 1, 1999 ACTUARIAL VALUATION REPORT FOR THE CITY OF MIAMI BEACH RETIREMENT SYSTEM FOR GENERAL EMPLOYEES ANNUAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION FOR THE PLAN YEAR ENDING SEPTEMBER 30, 2000 TO BE PAID IN THE EMPLOYER FISCAL YEAR ENDING SEPTEMBER 30, 2001 EEm GABRIEL, ROEDER, SMITH & COMPANY 1[(1931 GABRIEL. ROEDER. SMITH & COMPANY Consultants 8< Actuaries 301 East Las Dlas Blvd.. Suite 200. Ft Lauderdale. FL 33301 .954-527-1616. FAX 954-525-0083 January 28,2000 Board of Trustees City of Miami Beach Retirement System for General Employees Miami Beach, Florida Dear Board Members: We are pleased to present our October 1, 1999 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 L~f2 'ft:::.- Stephen Palmquist, ASA, Enrolled Actuary No. 99-1560 ,FCA 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. r~L~ Signature I j.JJ/ )J.o()O . Date 99-1560 Enrollment Number ItEm GABRIEL, ROEDER, SMITH & COMPANY TABLE OF CONTENTS Section Title Paae 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 12 7. Recent History of Contributions 13 8. Actuarial Assumptions and Cost Method 14 9. Glossary of Terms 16 C Pension Fund Information 1. 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 D 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 rEGJ GABRIEL, ROEDER, SMITH & COMPANY SECTION A DISCUSSION OF VALUATION RESULTS ~ GABRIEL, ROEDER, SMITH & COMPANY DISCUSSION OF VALUATION RESULTS Comoarison of Reauired Emolover Contributions The required employer contributions developed in this and last year's actuarial valuations are as follows: ForFYE ForFYE Increase 9/30/2001 9/30/2000 (Decrease) Required Employer Contribution $ 0 $ 0 $ 0 As % of Covered Payroll - - - 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, 1999 was $1,008,615. Revisions in Benefits There have been no revisions in benefits since the last actuarial valuation. Revisions in Actuarial Assumotions and Methods There have been no changes in assumptions since the last actuarial valuation. Actuarial Exoerience There was a net actuarial gain of $11,197,306 for the year which means actual experience was more favorable than expected. The gain is due to investment return based on the actuarial value of assets of 14.4% which exceeded the assumed rate of 8.5%. The total rate of return based on the market value of assets was approximately 13.1%. The investment gain was offset by losses from salary increases in excess of the assumed rate of 6%. The actuarial gain translates into a decrease in employer contribution equal to $1,348,385, or 6.96% of covered payroll. lEm GABRIEL, ROEDER, SMITH & COMPANY 2 Analvsis of Chance in EmDlover Contribution The required employer contribution has decreased by 7.47% 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 (2.42)% 0.29 (0.80) (6.96) (9.89) The remainder of this Report includes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a summary of plan provisions. ma GABRIEL, ROEDER, SMITH & COMPANY SECTION B VALUATION RESULTS rEm GABRIEL, ROEDER, SMITH & COMPANY 3 SUMMARY OF VALUATION RESULTS As of October 1 1999 1998 COVERED GROUP A. Number Included in the Valuation 1. Active Members 526 554 2. Inactive Members 947 961 B. Covered Annual Payroll $ 19,363,474 $ 19,137,108 LONG RANGE COST C. Actuarial Present Value of Projected Benefits 220,976,248 213,978,481 D. Actuarial Value of Assets 225,773,053 207,060,995 E. Actuarial Present Value of Future Contributions 1. Total: C - 0 (4,796,805) 6,917,486 2. Portion Assigned to Unfunded Actuarial Accrued Liability (UAAL) (37,316,243) (25,405,871 ) 3. Portion Assigned to Future Normal Costs 32,519,438 32,323,357 CURRENT ANNUAL COST F. Annual Payment Needed to Amortize UAAL (4,186,450) (2,768,218) As % of B (21.62)% (14.47)% G. Annual Employer Normal Cost 2,422,217 2,341,733 As % of B 12.51% 12.24% H. Interest on F and G from Valuation Date to Contribution Date( s) (149,960) (36.251 ) As % of B (0.78)% (0.19)% I. Required Employer Contribut: F+ G+ H (1,914,193) (462,736) As % of B (9.89)% (2.42)% J. Year to Which Contributions Apply 1. Plan Year Ending 9/30/2000 9/30/1999 2. Employer Fiscal Year Ending 9/30/2001 9/30/2000 3. Assumed Date(s) of Employer Contributions 10/1/2000 10/1/1999 rEm GABRIEL, ROEDER, SMITH & COMPANY 4 ACTUARIAL PRESENT VALUE OF BE:NEFITS AND CONTRIBUTIONS As of October 1 1999 1998 A. Actuarial Present Value of Projected Benefits for 1. Active Members a. Service Retirement Benefits $ 78,368,256 $ 76,314,540 b. Vesting Benefits 10,519,561 10,521,088 c. Disability Benefits 6,064,865 5,396,078 d. Preretirement Death Benefits 2,325,708 2,262,009 e. Return of Member Contr. 613,207 569,296 f. Other 0 0 g. Total 97,891,597 95,063,011 2. Inactive Members a. Service Retirees & Beneficiaries 112,065,680 108,561,357 b. Disability Retirees 7,656,979 7,366,498 c. Terminated Vested Members 3,361 ,992 2,987,615 d. Total 123,084,651 118,915,470 3. Total for All Members 220,976,248 213,978,481 B. Actuarial Present Value of Projected Normal Costs 32,519,438 32,323,357 C. Actuarial Accrued Liability: A3 - B 188,456,810 181,655,124 D. Actuarial Value of Assets 225,773,053 207,060,995 E. Unfunded Actuarial Accrued Liability (UAAL): C - D (37,316,243) (25,405,871 ) F. Actuarial Present Value of Projected Member Contributions 16,380,219 16,226,602 G. Actuarial Present Value of Projected Covered Payroll 163,802,200 162,266,100 [EGJ GABRIEL, ROEDER, SMITH & COMPANY 5 COMPARISON OF NORMAL COSTS As of October 1 1999 1998 A. Total Normal Cost for 1. Normal Retirement Benefits $ 2,749,082 $2,711,041 2. Vesting Benefits 634,417 641,966 3. Disability Benefits 370,600 340,130 4. Preretirement Death Benefits 129,491 128,091 5. Return of Member Contributions 118,388 115,320 6. Administrative Expenses 244.497 208.904 7. Total 4,246,4 75 4,145,452 As % of Covered Payroll 21.93% 21.66% B. Expected Member Contributions (Discounted to Beginning of Year) 1,824,258 1,803,719 As % of Payroll 9.42% 9.42% C. Net Employer Normal Cost: A 7 - B 2,422,217 2,341,733 As % of Payroll 12.51% 12.24 % rEm GABRIEL, ROEDER, SMITH & COMPANY 6 LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY A. Derivation of the Current UAAL 1. Actuarial Present Value of Projected Benefits for All Members 10/1/99 10/1/98 $ 220,976,248 $213,978,481 32,519,438 32,323,357 188,456,810 181,655,124 225,773,053 207,060,995 (37,316,243) (25,405,871 ) 2. Actuarial Present Value of Projected Normal Costs 3. Actuarial Accrued Liability: 1 - 2 4. Actuarial Value of Assets 5. Unfunded Actuarial Accrued Liability: 3 - 4 B. UAAL Amortization Period and Pavments Original UAAL Current UAAL Years Date Source Amount Remaining Amount Payment Original $ (534,543) 8 $ (527,868) $(86,274) 10/1/92 Exp.(Gain) Loss (5,006,180) 8 (4,973,583) (812,876) 10/1/93 Exp.(Gain) Loss (3,006,333) 9 (2,893,666) (435,847) 10/1/93 Change Assump. 5,324,154 9 5,124,632 771,878 10/1/93 Change Bens. 2,587,206 9 2,490,248 375,084 10/1/94 Exp.(Gain) Loss 1,654,392 10 3,152,126 442,773 10/1/94 Change Assump. 8,743,997 10 16,660,000 2,340,200 10/1/95 Exp.(Gain) Loss (3,893,388) 11 (6,796,201 ) (898,809) 10/1/96 Exp.(Gain) Loss (6,757,095) 12 (13,110,068) (1,645,138) 10/1/96 Change Assump. (1,455,487) 12 (2,823,927) (354,365) 10/1/97 Exp.(Gain) Loss (11,502,918) 13 (12,684,024) (1,520,014) 10/1/98 Exp.(Gain) Loss (9,492,383) 14 (9,736,606) (1,120,311) 10/1/99 Exp.(Gain) Loss (11.197,306) 15 (11,197,306) (1,242,751 ) (34,535,884) (37,316,243) (4,186,450) rEm GABRIEL, ROEDER, SMITH & 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: Year Expected UAAL 1999 $(37,316,243) 2000 (35,945,825) 2001 (34,458,922) 2002 (32,845,632) 2003 (31,095,213) 2004 (29,196,008) 2009 (18,248,456) 2014 0 rEm GABRIEL, ROEDER, SMITH & 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 UAAL $ (25,405,871) B. Last Year's Employer Normal Cost 2,341,733 C. Last Year's Employer Contributions 1,008,615 o. Interest at Assumed Rate on: 1. A and B for one year 2. C from dates paid 3. 1 - 2 (1,960,452) 85,732 (2,046,184 ) (26,118,937) E. This Year's Expected UAAL: A + B - C + 03 F. This Year's Actual UAAL (Before any Changes in Benefits or Assumptions) (37,316,243) G. Net Actuarial Gain (Loss): E - F 11,197,306 Net actuarial gains in previous years have been as follows: Year Net Ending 9/30 Gain (Loss) 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 1997 11,502,918 1998 9,492,383 Figure 81 shows the figures from the previous table in graphic form. rm3 GABRIEL, ROEDER, SMITH & COMPANY en c: o ~ Actuarial Gain (+) or Loss (-) $50 9 -- --- $50 $40 $30 - , , 1 $20 ~ , : *' / / / / / /+,' 1___.' ~/ : ._~-,----- -- -, /.y- ~// $10 -' J J $0_ -$10 ---1 ,---'- - ~OJt;) ~OJ~ ~OJfl;, ~OJ":J ~ ~ ~ ~ ~Oj ~Oj ~o; ~OJ ~OJCO ~ ~Oj Plan Year End ~G-;i~ Or Loss 1+'C~;:;'~~~tive) Figure 81 i- $40 $30 3: $20 - 0 ~ en $10 $0 -$10 mD GABRIEL, ROEDER, SMITH & 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: Investment Return Salary Increases Year Ending Actual Assumed Actual Assumed 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 9/30/98 12.5 8.5 5.0 6.0 9/30/99 14.4 8.5 7.3 6.0 Average 11.2% 5.2% * 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. mD GABRIEL, ROEDER, SMITH & COMPANY 11 History of Investment Return Based on Actuarial Value of Assets 16% j- ,----- ----) -.------, ----- 16% ::: ;. /~j //.~~}~~/ A::: ':V:~/--1' -+--+ \\;/+-+ . +- + .. 6% 0% --~-_.._-~----,-- -- ------- -----;-- 10% + 8% 6% 4% 2% 0% 4% --: 2% ~'b'b ~'b~ !:I ~o; .... ~~ ~~'l, ~~":I ~f.Jt;. ~~~ !O ~o; ~~~ 10 ~O:J ~ ~o; Plan Year End ~--- ---------, Lt!-ctlJal_+~!i!u':'!.e.d) Figure 83 History of Salary Increases 12% 10% 8"1. 6% 4"1. 2"1. 0% ~'b'b ~'bq, 12"1. 10% 6 .% + + +/ ~7~'% ~ ~. 4"1. ~ 2% 0% q,f'o::. q,f'''' q,f'''' OJf'''' ~~ ~ ~Oj b q,fJ :\ ~OJ q,f''b III ~Oj Plan Year End Compared to Previous Year rt'Actual + Assumed Figure B4 rEGJ GABRIEL, ROEDER, SMITH & COMPANY en I- ..J ::) en w a: z o < ::) ..J ~ U. o .... Q: o I- en i: I- Z W o w a: - I/) o o jij E ... o z ... CD :>. o 1i E w CD ::::I jij I/) >Q; jij I/) .t: ~ CIS_ .a 0 :J. '0 'tJ!::. CD ca ;0.. >- o CIS o ~ c1 - o ... CD .a E ::::I Z CD ~ > CD :;::.a U E CIS CD .E:E '0 ... :>. CIS a.. - o ~ o -::R. o -.:t-.:t-.:t0l'-- C")C")C")O>O> MMMNM ~~~-r-"- CX>I.O 0> <O-.:t CX>ON<ON M-q:MNN .,- .,- .,- .,- .,- <OC")I'--I'--C") I'--<OI"-I"-C") CX>NC")OI"- ....:N"O~.~ I'---.:t <0 <O-.:t ~C")-.:t-.:tC") NNNNN OC")~N;:- I.O-.:tNCX>I'-- CX>I.OO>~CX> NaiCO~"O O>CX>C")C") 0 O>O>O><O-.:t ai cO ~- .,j ..0 -~N -- NO>CX>-.:t1O <OC") O>N 0> ":. O. "":. N.. 0>. -.:tO~<OO 10 10 O>C") <0 -.:t_ ~. 1'--. ~. O. -.:tC")I.ONI'-- 10<01"-0>0 .,.-,-.,-.,.-N N 10 ~ 0> to O>~<O-.:tO <OIONO>~ ..0 McOcO"": 0>1"--.:t-.:tC") <O<OI.O-.:t~ ..ocOcOaiai .,- ,..... or- ..- .,- I'--Ol'---.:t~ <0 <0 <0 10 <0 0> 0> 0> 0> 0> ~C")O><O-.:t <0<0101'--10 101010101.0 -.:t 10<0 I"-tO 0> 0> 0> 0> ()) ----.........---- .,.... .,- .,- .,.... ,.- -- -- -- -- -- 00000 .,.... .,.... .,.... .,.... .,..... 12 ~ 10 N ~ I'-- ~ N N N -.:t. N M -.:t N <0 ~ C") I"- ~ C") 10 o C") I'-- I'-- 1.0 N N -.:t I"- "":. C") <0 C") 0> ~ I'-- -.:t 0> <0 N 1.0 0> ()) - ~ - o ~ I/) CD ... > CD ._ .a 1:) E <t CD :E c o .- CD -- CIS CIS '=0 CIS > - C ::::I o ci <(<(<(-.:tC") zzz~~ cO.,j C") ~ ~~ NN ~ ..J ~ ::) ...-.. ...-.. .-.. ..-.. ..-.. OOC")I'--N 0> <O-.:t 00> ~ N.. ~ ~ -.:t_ <OCX>-.:tl"-<O I.OO>C")C")I.O O>~IOIOO .- I'--~ I.O~ --- '-"" "'-" '-" ~ ~~NC")O NCX>C")NC") ":. -.:t_ ~ ~ N.. -.:t~<O-.:t-.:t I'--NI'--O>I'-- N~C")~O> ----- CX>O>C")-.:tN NNC")-.:t1O .,- ,.... .,- or- .,- ~ -.:t-.:t<OOIO C") 0> to ~ C") OtOl"-~~ -.:t- cO 1'--- ~ cO o 0> 0> tOC") ~CX>O>IO~ cO"":cOcO..o .,.... .,- .,.... ..- .,- ~ -.:tl'--tO~C") <OCX>N-.:tO to to 0> 0> 0 ~ 0> I'--NCX> <0 IO~I'---.:t-.:t 1'--1'--<0<010 O>O~NC") to 0> ()) 0> 0> -- -- -- -- -- .,.....,....,.....,.....,- -- -- -- -- -- 00000 .,.... .,.... ..- ,.- ...- EEm GABRIEL, ROEDER, SMITH & COMPANY 13 RECENT HISTORY OF CONTRIBUTIONS Applies to Required Employer Contribution Fiscal Year Actual Valuation Date Ending Amount % of Payroll Contribution 10/1/92 9130/94 $ 1,494,969 9.59% $ 1,494,969 10/1/93 9/30/95 2,235,227 14.77 2,235,227 10/1/94 9130/96 3,549,633 22.62 3,549,633 10/1/95 9/30/97 3,409,645 20.45 3,409,645 10/1/96 9/30/98 2,496,704 13.46 2,496,704 10/1/97 9/30/99 1,008,615 5.19 1,008,615 10/1/98 9/30/00 0 -- - 10/1/99 9/30/01 0 -- - rEm GABRIEL, ROEDER, SMITH & 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 details. Non-investment related expenses are assumed to be the average of such expenses over the last two years. NA 1.5% per year. None. lEGI GABRIEL, ROEDER, SMITH & COMPANY 15 Annual Rate of Mortality Retirement* After 10/1/93 Before 10/1/93 Aae Male Female Male Female Turnover Disabilitv GrouD A Group B 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. mB GABRIEL, ROEDER, SMITH & 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 AssumDtions 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 Aae 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 Aae 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 Liability. 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. lEm GABRIEL, ROEDER, SMITH & COMPANY SECTION C PENSION FUND INFORMATION EEm GABRIEL, ROEDER, SMITH & COMPANY 17 SUMMARY OF ASSETS 9/30/99 9/30/98 Cash and Securities - Market Value Cash and Savings Accounts $ 55,601 $ 19,733 Money Market Funds 6,117,456 3,032,607 Treasury Bills - - Commercial Paper - -- Treasury and Agency Bonds & Notes 81,516,307 95,243,227 Corporate Bonds 37,561,103 22,447,917 Common & Preferred Stocks 60,554,792 52,198,603 Pooled Equity Funds 60,542,080 55,287,177 Pooled Bond Funds -- - Other Securities 1.475 1,744 Total 246,348,814 228,231,008 Receivables and Accruals Member Contribution - - Employer Contribution - - Interest and Dividends 1,790,290 1,611,000 Other - - Total 1,790,290 1,611,000 Payables Benefits - - Refunds - - Expenses - - Other - Pending Securities Purchased 928.114 1,101,593 Total 928,114 1,101,593 Net Assets - Market Value 247,210,990 228,740,415 Net Assets - Cost Value NA 200,954,159 mm GABRIEL, ROEDER, SMITH & COMPANY 18 PENSION FUND INCOMIE AND DISBURSEMENTS Year Ending Year Ending 9/30/99 9/30/98 Market Value at Beginning of Period $ 228,740,415 $ 219,626,839 Income Member Contributions 1,940,672 1,824,996 Employer Contributions 1,008,615 2,496,704 Other Contributions 16,385 25,241 Investment Earnings 29,335,479 18,170,565 Other Income 0 0 Total Income 32,301,151 22,517,506 Disbursements Monthly Benefit Payments 12,683,844 12,243,096 Lump Sum Distributions 0 0 Refunds of Contributions 291,879 333,418 Investment Related Expense 572,084 553,253 Other Administrative Expense 267,605 221,388 Insurance Premiums 0 0 Other Expense-Transfers to Other Systems 15,164 52,775 Total Disbursements 13,830,576 13,403,930 Net Increase During Period 18,470,575 9,113,576 Market Value at End of Period 247,210,990 228,740,415 rEm GABRIEL, ROEDER, SMITH & COMPANY en I- W en en ~ LL o W ;:) ..J ~ > ..J ~ a:: ~ ;:) I- o ~ 0) 0) 0) 't"'" I() I() ......0> "<:to> cici "<:t CD I'- 0 cOr--: NO NN ~ -I< CIl CIl C- O a:5 :SE .0 Q) E~ C ::J 0.0 () .~ -0 o CIl -CIl Q) Q) Z..J al ..-.. o N 00 N 0> N ci ...... -- ..-.. 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N 00 C'f) 0> I'- "<:to "<:t ...... ...... 0> 0> I'- LO I() 00 I'- ...... ...... e 00 c.o 00 I() c.o c.o c.o c.o C'f) N c.o I'- "<:t I'- CD ...... ...... 0> I'- 0> I'- e ...... CD c.o 0> 0> ...... "<:to N I() ...... CD I() ...... CIl Q) "c.o CIl ~ u.. CIlQ)-+ <(::Jro ,-ro>o ro>ro+ Q) - -- >-Q)'-al _~ro O...::J+ ro- 'O~UN C..:::<(<( W - . ......N " 19 CIl Q) CIl C Q) a. X W '0 Q) - ro Q) ~ - C Q) E W Q) > C - o - Q) Z -I< SECTION D FINANCIAL ACCOUNTING INFORMATION lE!mI GABRIEL, ROEDER, SMITH & COMPANY 21 I FASB NO. 35 INFORMA-nON ] A. Valuation Date October 1, 1999 October 1, 1998 B. Actuarial Present Value of Accumulated Plan Benefits 1. Vested Benefits a. Members Currently Receiving Payments $ 119,722,659 $ 115,927,855 b. Terminated Vested Members 3,361,992 2,987,615 c. Other Members 44,248,818 42,861,539 d. Total 167,333,469 161,777,009 2. Non-Vested Benefits 680,371 559,264 3. Total Actuarial Present Value of Accumulated Plan Benefits: 1d + 2 168,013,840 162,336,273 4. Accumulated Contributions of Active Members 14,406,351 13,575,378 c. Changes in the Actuarial Present Value of Accumulated Plan Benefits 1. Total Value at Beginning of Year 162,336,273 157,377,266 2. Increase (Decrease) During the Period Attributable to: a. Plan Amendment NA NA b. Change in Actuarial Assumptions NA NA c. Latest Member Data, Benefits Accumulated and Decrease in the Discount Period 18,668,454 17,588,296 d. Benefits Paid (12,990,887) ( 12,629,289) e. Net Increase 5,677,567 4,959,007 3. Total Value at End of Period 168,013,840 162,336,273 D. Market Value of Assets 247,210,990 228,740,415 E. Assets as % of Value of Accumulated Benefits 147% 141% F. Actuarial Assumptions - See page Entitled Actuarial Assumptions and Methods mmJ GABRIEL, ROEDER, SMITH & COMPANY ... l.J o -- ~"cp 00).0 t/)~- ~~= -JOO =: U ~ ::> ~ - ,,~ 0)- ~ - ~ e o >- U~ en en w 0::: C)- 01.() o:::~ Q.O C)Z Zc -0) o E ZO) ::>- LL l'll - LLen Om wen -J~ ::>C) o- W :I: U en o ;: l'll ~ 0:::_0 ".0 I"- 0) jij 0 ,,-0 c: ...... ::J LL -J =:- ,,-J- 0) ~ l'll ,,~. c:......o ::J:::"- ... c: ::> ::JO) "~ -g ~ ~ ~ 2 ~~:C - (,)"- - - (,) (,) == c: ~~iw ::J' 0) ::J n;.! >0) - t/) "~ ~ l'll... .a 0 ~ 0) - _ l'll l'llO "i: c: ~"2 - - (,) l'll ~ ::J l'll > lEmI GABRIEL, ROEDER, SMITH & COMPANY ~ Ol'-O>LON ,...:c-rj~ci..o --<D~"""I"- ---- I.{)C\J I.{)...... 0'> MO'>......<D~ ....... <D. ~ N.. 0'>. co I.{) M co <D MO'>I"-~~ ......<D<DI.{)~ ... ... ... ... ... I.{) I.{) <D co 0'> ~ ~ .,.- .,.- ~ tFt O'>O'>"'":"! c-rj..o......co 0'>0'>00 ...... ...... - -- C\JOM~N O'>I.{)~NCO ~COI.{)O'>""" ----- <DC\JO'>CO...... 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Schedule of Funding of Progress GASS Statement No. 25 $250.0 ~ 140% I : 120% -- -+-+ $200.0 --~ I I I +- 100% III $150.0 80% c: ~ :i $100.0 60% 40% $50.0 20% $0.0 0% ~ ~ b !O ~ !b ~CIJ t;$.CIJ t;$.OJ t;$.0) t;$.0) t;$.CIJ t;$.OJ " " " " " " "l;;S Actuarial Valuation Date .. \ Value of Assets_I!'J~L) Entry ~ge + Funded Ratio Figure C10 Schedule of Funding of Progress GASS Statement No. 25 $30.0 100% III c: ~ :i $20.0 _,r.. $:::: :~I~~,!;-I_~I_I- ::% 1< ." -50% , +" ~'~ -$10.0 -$20.0 -100% -$30.0 J 1 :- -150% i i __~~>l_ - -200% -$40.0 ~~---~~ ~ ~ t;$.CIJ t;$.OJ " " b t;$.0) " ~ t;$.CIJ " !O t;$.0) " !b t;$.OJ " P.> t;$.0) " Actuarial Valuation Date r'-'~---' ----.. . -------- w____ .----~ l c Unfu~~ed ~L ._C~vered Payroll + ~AAL~~ % of ~ar!..ol~ Figure C11 23 ;0 !!L c5" I[B'3 GABRIEL, ROEDER, SMITH & COMPANY 24 SCHEDULE OF EMPLOYER CONTRIBUTIONS (GASS Statement No. 25) Actual Year Ended Annual Contribution Percentage September 30 Required Contribution Received Contributed 1994 $ 1,494,969 $ 1,494,969 100% 1995 2,235,227 2,235,227 100 1996 3,549,633 3,549,633 100 1997 3,409,645 3,409,645 100 1998 2,496,704 2,496,704 100 1999 1,008,615 1,008,615 100 mmJ GABRIEL, ROEDER, SMITH & COMPANY 2: ANNUAL PENSION COST AND NET PENSION OBLIGATION (GASB Statement No. 27) Employer Fiscal Year End September 30: 1999 1998 A. Annual required contribution (ARC) $1,008,615 $ 2,496,704 B. Interest on Net Pension Obligation (NPO) 0 0 C. Adjustment to ARC 0 0 D. Annual Pension Cost (A + B - C) 1,008,615 2,496,704 E. Actual Contributions 1,008,615 2,496,704 F. NPO at beginning of year 0 0 G. Increase (decrease) in NPO (D - E) 0 0 H. NPO at end of year (F + G) 0 0 THREE YEAR TREND INFORMATION Fiscal Annual Pension Actual Percentage of Net Pension Year Endina Cost (APC) Contribution APC Contributed Obliaation 9/30/97 $ 3,409,645 $ 3,409,645 100% $ 0 9/30/98 2,496,704 2,496,704 100 0 9/30/99 1,008,615 1,008,615 100 0 :'{:j GABRIEL, ROEDER, SMITH & COMPANY 26 REQUIRED SUPPLEMENTARY INFORMATION GASS Statement No. 25 and No. 27 The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation: Valuation date October 1, 1998 Contribution Rates: Employer (and State) Plan Members 0.00% 10,00% Actuarial Cost Method Entry Age Amortization Method Level dollar Remaining amortization period 15 years Asset valuation method 5 year smoothed market Actuarial assumptions: Investment rate of return Projected salary increases Includes inflation and other general increases at Cost-ot-Iiving adjustments 8.5% 6.0% 4.0% 1.5% per year. lEml GABRIEL, ROEDER, SMITH & COMPANY 27 OTHER DISCLOSURES A. Required Annual Contributions for Fiscal Year Ending September 30, 1999. Employer Normal Cost $2,461,077 Payment Towards Unfunded Actuarial Liability (1,531,478) Interest on These Amounts from Actuarial Valuation Date to Expected Payment Dates 79,016 Total Required Contribution 1,008,615 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 & COMPANY SECTION E MISCELLANEOUS INFORMATION EEmI GABRIEL, ROEDER, SMITH & COMPANY 28 RECONCILIATION OF MEMBERSHIP DATA From 10/1/98 From 10/1/97 To 10/1/99 To 10/1/98 A. Active Members 1. Number Included in Last Valuation 554 576 2. New Members Included in Current Valuation 24 38 3. Employment Terminations (29) (35) 4. Service Retirements (20) (21) 5. Disability Retirements (1) (1 ) 6. Deaths (1) (1) 7. Other - Transfer to other Plans (1) ~ 8. Number Included in This Valuation 526 554 B. Terminated Vested Members 1. Number Included in Last Valuation 56 51 2. Additions from Active Members 6 7 3. Lump Sum Payments (3) 0 4. Payments Commenced (2) (2) 5. Deaths 0 0 6. Other ~ ~ 7. Number Included in This Valuation 57 56 C. Service Retirees, Disability Retirees and Beneficiaries 1. Number Included in Last Valuation 905 898 2. Additions from Active Members 22 22 3. Additions from Terminated Vested Members 2 2 4. Deaths Resulting in No Further Payments (41 ) (21) 5. Deaths Resulting in New Survivor Benefits 0 0 6. End of Certain Period - No Further Payments 0 0 7. Other 2 ~ 8. Number Included in This Valuation 890 905 EBB GABRIEL, ROEDER, SMITH & COMPANY ~ C ...J < U ~ CJ) S en - - 0) 0) -- .... -- o .... - co 0) -- .... -- o .... - " 0) -- .... -- o .... - to 0) -- .... -- o .... - It) 0) -- .... -- o .... ~ 0) -- .... -- o .... ~t-O ~~O'> C") CO 0 NN l{)~ C") ~ ~ f;fl N~C") I'-t-I'- C") N ~_ - 0'> ~C") l{) ~ ~ f;fl l{) C") C") ~tOl'- ~ to_ 1'-_ l{) t- I'- C") to l{) ~ f;fl l{)0'>C") ~CON ~ N 0_ - to gC") o to ~ f;fl O'>tOt- O'>~tO ~~cq, NO OC") ~- l{) ~ f;fl C. ::::J o ... C) ... CI) j:: ... III ~ u:: I II) ... c: ca c. .u :e ca Q., CI) > .. 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G) I- 0(") CO L()...... <.0 I'-- C") o N N ffl - t;:: 0> a3~ co:5 co5 ~~ C 0> a; <( Ol:::: .D-~Q; E19o>c o > 0> ~I-<((I) Dim GABRIEL, ROEDER, SMITH & COMPANY 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 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 1 16 39 50 53 36 16 9 NUMBER OF PEOPLE o o o o o o 47 68 69 19 20 o o o 224 MAL TOTAL ANNUAL EARNINGS o o 35856 627414 1662040 2213959 2398242 1548853 622595 361435 45775 29794 43088 42841 o 9631891 TABLE A. ANNUAL EARNINGS BY AGE GROUPS E AVERAGE ANNUAL EARNINGS o o 35856 39213 42616 44279 45250 43024 38912 40159 45775 29794 43088 42841 o 43000 F NUMBER OF PEOPLE o o 1 8 23 20 24 21 11 5 2 o E M A TOTAL ANNUAL EARNINGS o o 31010 308122 895299 847254 1041019 9014 7 6 390679 167621 74776 30394 o 33306 o 4720956 L E AVERAGE ANNUAL EARNINGS o o 31010 38515 38926 42363 43376 42927 35516 33524 37388 30394 o 33306 o W350 NUMBER OF PEOPLE o o 2 24 62 70 77 57 27 14 TABLE B, ANNUAL EARNINGS BY SERVICE GROUPS E AVERAGE ANNUAL EARNINGS o o o o o o 40057 41863 43319 47063 49476 o o 29794 43000 F NUMBER OF PEOPLE o o o o o o 41 39 31 4 o 117 E M A TOTAL ANNUAL EARNINGS o o o o o o 1486677 1607299 1321814 232314 39546 o 33306 o 4720956 L E AVERAGE ANNUAL EARNINGS o o o o o o 36260 41213 42639 58078 39546 o 33306 o 40350 NUMBER OF PEOPLE o o o o o o 88 107 100 23 21 o 1 341 31 AS OF 10/1/99 2 A L TOTAL ANNUAL EARNINGS o o 66866 935536 2557339 3061213 3439260 2450329 1013274 529056 120551 60188 43088 76147 o 14 3 52 84 7 L AVERAGE ANNUAL EARNINGS o o 33433 38981 41247 43732 44666 42988 37529 37790 40184 30094 43088 38074 o 42090 L AVERAGE ANNUAL EARNINGS o o o o o o 38288 41626 43108 48979 49003 o 33 3 06 29794 42090 224 MAL TOTAL ANNUAL EARNINGS o o o o o o 1882671 2846670 2989035 894198 989523 o o 29794 9631891 o o 117 trE'ml GABRIEL, ROEDER, SMITH & COMPANY 2 o 341 A L TOTAL ANNUAL EARNINGS o o o o o o 3369348 4453969 4310849 1126512 1029069 o 33306 29794 14352847 MIAMI BEACH GENERAL GROUP B - 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 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 8 27 27 29 11 11 13 5 2 o o o o o 133 NUMBER OF PEOPLE 4 21 22 54 24 125 8 o o o o o o o 133 MAL TOTAL ANNUAL EARNINGS o 162632 698518 763807 795519 293569 298750 330885 120851 46218 o o o o o 3510750 MAL TOTAL ANNUAL EARNINGS 95992 465563 518156 1499843 676929 3256482 254269 o o o o o o o 3510750 TABLE A, ANNUAL EARNINGS BY AGE GROUPS E AVERAGE ANNUAL EARNINGS o 20329 25871 28289 27432 26688 27159 25453 24170 23109 o o o o o 26397 F NUMBER OF PEOPLE o 1 8 19 9 6 3 2 4 o o o o o o 52 E M A TOTAL ANNUAL EARNINGS o 19843 226681 580484 264107 173265 80172 47344 107980 o o o o o o 1499877 L E AVERAGE ANNUAL EARNINGS o 19843 28335 30552 29345 28877 26724 23672 26995 o o o o o o 28844 NUMBER OF PEOPLE o 9 35 46 38 17 14 15 9 2 o o o o o 185 TABLE B, ANNUAL EARNINGS BY SERVICE GROUPS E AVERAGE ANNUAL EARNINGS 23998 22170 23553 27775 28205 26052 31784 o o o o o o o 26397 F NUMBER OF PEOPLE 3 6 14 16 11 50 1 E M A TOTAL ANNUAL EARNINGS 71552 153950 383222 467969 361064 1437756 19843 42277 o o o o o o 1499877 L E AVERAGE ANNUAL EARNINGS 23851 25658 27373 29248 32824 28755 19843 42277 o o o o o o 28844 NUMBER OF PEOPLE 7 27 36 70 35 175 9 o o o o o o 185 32 AS OF 10/1/99 A L TOTAL ANNUAL EARNINGS o 182475 925199 1344292 1059627 466834 378922 378229 228831 46218 o o o o o 5010627 A L TOTAL ANNUAL EARNI~GS 167544 619513 901377 1967812 1037992 4694238 274112 42277 o o o o o o 5010627 L AVERAGE ANNUAL EARNINGS o 20275 26434 29224 27885 27461 27066 25215 25426 23109 o o o o o 27084 L AVERAGE ANNUAL EARNINGS 23935 22945 25038 28112 29657 26824 30457 42277 o o o o o o 27084 o o o o o o 52 itEml GABRIEL, ROEDER, SMITH & COMPANY 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 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 5-9 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 TABLE C, SERVICE GROUPS BY AGE GROUPS S E 10-14 o o 1 12 7 6 6 6 3 4 o o 1 o 47 o o 5 10 4 5 7 6 3 o o o o o 41 R V I 15-19 o o o 3 19 15 11 14 3 2 1 o o o o 68 o o o 3 12 8 8 5 2 F E o o o o C E 20-24 H o o o 1 13 26 10 9 8 2 o o o o o 69 A L o o o o o 3 11 3 1 1 o o o o o 19 G R 0 25-29 E L o o o o o o 15 4 1 o o o o o o 20 E o o o o o o o o o o 1 o o o o 1 u P 30-34 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 10/1/99 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 TOTAL o o o o o o o o o o o 1 o o o o o 1 16 39 50 53 36 16 9 1 o o o o o 39 8 9 7 3 M A o o o o o o 2 2 o o o o o o o 4 1 o 224 o o o o o o o o o o o o o o o o o o o o o 31 8 23 20 24 21 11 5 2 o 1 o 117 ItEm GABRIEL, ROEDER, SMITH & COMPANY MIAMI BEACH GENERAL GROUP B - 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 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 8 25 26 27 11 10 12 4 2 o o o o o 125 o o 8 18 9 6 3 2 4 o o o o o o 50 5-9 TABLE C, SERVICE GROUPS BY AGE GROUPS S E 10-14 o o 2 2 o 1 o o o o o o 8 o o o o o o o o o o o o o o R V I 15-19 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 M o o o o o o o o o o o o o o o o A L o o o o o o o o o o o o o o o o G R 0 25-29 E L u P 30-34 o o o o o o o o o o o o o o o o E o o o o o o o o o o o o o o o o 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 AS OF 10/1/99 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 8 27 27 29 11 11 13 5 2 o o o o o 133 o o o o o o o o o o o M A 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 1 8 19 9 6 2 4 o o o o o o 52 rfEJl GABRIEL, ROEDER, SMITH & COMPANY 35 MIAMI BEACH GENERAL INACTIVES BEFORE '93 10/1/99 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 Bene fi t Under 45 5 10505 3 49959 4 37795 0 0 45 to 49 12 35193 5 79681 3 21339 0 0 50 to 54 5 18487 7 163888 9 85287 0 0 55 to 59 2 34 3 49012 44 912057 0 0 60 to 64 4 4115 7 102541 79 1327403 0 0 65 to 69 2 491 7 79834 101 1516744 0 0 70 to 74 288 13 13 7 62 8 165 2279099 0 0 75 to 79 0 0 5 53655 124 1580061 0 0 80 to 84 6500 19897 103 1032447 0 0 85 to 89 0 0 0 0 55 473417 0 0 90 & up 0 0 0 0 24 150775 0 0 Total 32 75612 53 736095 711 9416425 0 0 Average Age 52.0 63,7 72.8 0.0 Average Benefit 2363 13889 13244 0 rEmI GABRIEL, ROEDER, SMITH & COMPANY 36 MIAMI BEACH GENERAL INACTIVES AFTER '93 10/1/99 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 94399 2 4B59B 3 20460 0 0 45 to 49 13 222093 0 0 3 1B432 0 0 50 to 54 1 10350 1 BB14 43 1196569 0 0 55 to 59 1 19B39 0 0 30 649140 0 0 60 to 64 0 0 0 0 21 4364BB 0 0 65 to 69 0 0 0 0 16 255924 0 0 70 to 74 0 0 0 0 6 79517 0 0 75 to 79 0 0 0 0 0 0 0 0 80 to 84 0 0 0 0 1 20024 0 0 85 to 89 0 0 0 0 0 0 0 0 90 &. up 0 0 0 0 0 0 0 0 Total 25 3466B1 3 57413 123 2676555 0 0 Average Age 43.8 44.7 57.4 0.0 Average Benefit 13867 1913 8 21761 0 m3 GABRIEL, ROEDER, SMITH & COMPANY SECTION F SUMMARY OF PLAN PROVISIONS rEm! GABRIEL, ROEDER, SMITH & COMPANY 37 SUMMARY OF PLAN PROVISIONS Effective Date November 17, 1971 under Ordinance No. 1901; supersedes previous system under Ordinance No. 845. Eliaibilitv 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. Earninas 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 Averaae Monthlv Earninas (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. rEm GABRIEL, ROEDER, SMITH & COMPANY 38 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. Earlv Retirement Eligibility When total of age plus service is 75, but at least age 50. 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. Disability 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 FAME 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. Preretirement 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. Termination 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. lEmI GABRIEL, ROEDER, SMITH & COMPANY 39 Post Retirement Adiustments All benefits in pay status are subject to a 1 1/2% increase each year as of October 1 st. Contributions From Members 10% of Earnings. From the City The amount necessary to fund the Plan properly according to the Plan's actuary. Chanaes Since Last Valuation None. rEm! GABRIEL, ROEDER, SMITH & COMPANY