LTC 264-2015 Actuarial Valuation Reports for the City's Two Pension Plans o
1915 • 2015
MIAMIBEACH
OFFICE OF T HE CITY MANAGER
NO. LTC# 264-2015 LETTER TO COMMISSION
TO: Mayor Philip Levine and Members o the City ommission
FROM: Jimmy L. Morales, City Manager
DATE: June 24, 2015
SUBJECT: Actuarial Valuation Reports forth: city's Two Pension Plans: City pension Fund
For Firefighters and Police Officers in the City of Miami Beach and the Miami Beach
Employees Retirement Plan
The purpose of this Letter to Commission (LTC) is to provide the Mayor and the City Commission
with the City's Annual Required Contributions payable October 1, 2015 for both of the City's
pension plans.
The Annual Actuarial Valuation Report for the city's Pension Fund for Firefighters and Police
Officers was adopted during the May 21,2015 Pension Board meeting. Based on the results of
the valuation, the City's Annual Required Contribution (ARC) towards the pension Fund for Fire
and Police Officers payable October 1, 2014 for FY 2014/15 is $34.85 million, an increase of
$1.8 million.
It is important to note that the ARC for the City's Pension Fund for Firefighters and Police
Officers for FY 2014/15 (based on the 10/1/12 valuation), increased by $2.2 million due to
changes in return and amortization assumptions. Without these changes, the ARC would have
decreased from the prior year.
The Annual Actuarial Valuation Report for the Miami Beach Employees' Retirement Plan was
adopted during the May, 2014 Pension Board meeting. Based on the results of the valuation, the
City's Annual Required Contribution (ARC) towards the Miami Beach Employees' Retirement
Plan payable October 1, 2014 for FY 2014/15 is 27.78 million, an increase of$1.5 million. Similar
to the Fire and Police item, the ARC increased by $1.1 million due to changes in the investment
rate of return assumption.
Attached, please find a summary of past valuation data for both of the city's pension plans, as
well as an updated version of the pension component of the benefits briefing presented to the
Commission. Should you require additional information, please do not hesitate to contact
Assistant City Manager Kathie Brooks or myself.
Than se u.
/'
JLM:Ke
Attachment
CITY OF MIAMI BEACH
VALUATION DATA OF CITY'S PENSION PLANS
FIRE AND POLICE
ARC Payable Valuation Actuarial Projected % of Unfunded % Funded/
October 1 of 10/1 Required Pensionable Payroll Actuarial Net Position
Fiscal Year City Payroll Accrued as a
Contribution Liability Percentage of
(UAAL) Total Pension
Liability*
2009-2010 2008 $23,283,269 $53,153,934 43.80% $176,368,131 74.2%
2010-2011 2009 $34,416,519 $51,636,070 66.66% $266,792,988 66.0%
2011-2012 2010 $36,176,910 $49,718,966 72.76% $291,931,506 64.3%
2012-2013 2011 $39,371,501 $49,186,724 80.04% $339,297,448 61.1%
2013-2014** 2012 $41,077,586 $46,313,650 88.70% $377,671,869 59.1%
2013-2014*** 2012 $35,839,777 $46,313.650 77.40% $357,710,800 60.4%
2013-2015 2013 $33,028,839 $47,164,032 70.00% $292,005,152 69.4%176.16%
2015-2016 2014 $34,850,092 $50,491,405 69.00% $288,053,485 75.99%
* Methodology changed in 10/1/13 Valuation Report- %funded uses actuarial value while net position uses market value.
** Prior to 2013 Pension Reform
*** Net of 2013 Pension Reform
GENERAL EMPLOYEES
ARC Payable Valuation Actuarial Covered % of Unfunded % Funded/
October 1 of 10/1 Required Payroll Payroll Actuarial Net Position
Fiscal Year City Accrued as a
Contribution Liability Percentage of
(UAAL) Total Pension
Liability*
2009-2010 2008 $17,137,394 $68,009,550 25.20% $100,767,021 80.9%
2010-2011 2009 $14,474,678 $70,097,549 20.65% $125,016,843 77.1%
2011-2012 2010 *$17,583,191 $68,844,264 25.54% $148,766,860 74.4%
2012-2013 2011 $21,222,051 $66,346,904 31.99% $176,796,453 70.7%
2013-2014** 2012 $26,212,015 $65,053,945 40.29% $215,987,733 66.1%
2013-2013*** 2012 $25,558,989 $65,053,945 39.29% $210,827,698 66.7%
2014-2015 2013 $26,456,580 $63,526,903 41.65% $208,884,470 67.9%/77.59%
2015-2016 2014 $27,783,852 $64,115,083 43.33% $211,807,979 77.42%
* Methodology changed in 10/1/13 Valuation Report- %funded uses actuarial value while net position uses market value.
** Prior to 2013 Pension Reform
*** Net of 2013 Pension Reform
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