Agenda 11-22-10
ùúú
óèã íö íãîèíî ÷ûùô
úèõ÷½ ìì
íûêø íö êçéè÷÷é ÷î÷êûð ïìðíã÷÷é÷îéóíî ðûî
ëÇÛÊÈ×ÊÐà úÍÛÊØ ï××ÈÓÎÕ
ïÍÎØÛà îÍÆ×ÏÚ×Ê
ðÍÙÛÈÓÍÎ ùÍÏÏÓÉÉÓÍÎ ùÔÛÏÚ×ÊÉ ùÓÈà ôÛÐÐ
÷ úÍÃÎÈÍÎ ú×ÛÙÔ úÐÆØ
úÍÃÎÈÍÎ ú×ÛÙÔ öð
ìÐÛÎ ûØÏÓÎÓÉÈÊÛÈÍÊ
èÓÏ×
ìï
û
õ÷îøû
óùÛÐÐ ÈÍ íÊØ×Ê ïÛÃÍÊ êÍØÊÓÕÇ× ùÔÛÓÊÏÛÎ
óóûÌÌÊÍÆÛÐ ÍÖ ûÕ×ÎØÛ
óóóûÌÌÊÍÆÛÐ ÍÖ ïÓÎÇÈ×É
û ê×ÕÇÐÛÊ ï××ÈÓÎÕ ûÇÕÇÉÈ
ú éÌ×ÙÓÛÐ ï××ÈÓÎÕ é×ÌÈ×ÏÚ×Ê
óæóÎÆ×ÉÈÏ×ÎÈ ê×ÌÍÊÈ
û û ëÇÛÊÈ×ÊÐà óÎÆ×ÉÈÏ×ÎÈ ì×ÊÖÍÊÏÛÎÙ× ê×ÌÍÊÈ óÎÆ×ÉÈÏ×ÎÈ ïÛÎÛÕ×Ê
ûÐÐÓÛÎÙ× ú×ÊÎÉÈ×ÓÎ ¼ òÍ× ðÛÅÊ×ÎÙ×
ù ëÇÛÊÈ×ÊÐà óÎÆ×ÉÈÏ×ÎÈ ì×ÊÖÍÊÏÛÎÙ× ê×ÌÍÊÈ óÎÆ×ÉÈÏ×ÎÈ ùÍÎÉÇÐÈÛÎÈ
éÍÇÈÔ×ÛÉÈ×ÊÎ ûØÆÓÉÍÊà é×ÊÆÓÙ×É ò×ÖÖ éÅÛÎÉÍÎ
ïÛÎÛÕ×ÊÉ ìÊ×É×ÎÈÛÈÓÍÎÉ øÓÉÙÇÉÉÓÍÎ
æíÐØ úÇÉÓÎ×ÉÉ
æóùÍÊÊ×ÉÌÍÎØ×ÎÙ×
æóóî×Å úÇÉÓÎ×ÉÉ
û ûØÏÓÎÓÉÈÊÛÈÓÆ× ê×ÌÍÊÈ
öÓÎÛÐ ûÆ×ÊÛÕ× ùÍÏÌ×ÎÉÛÈÓÍÎ ÷ÛÊÎÓÎÕÉ çÌØÛÈ×
åÛÊÊÛÎÈ ÖÍÊ óÎÆÍÓÙ×É
ú×Î×ÖÓÈ ûÌÌÊÍÆÛÐÉ
ï××ÈÓÎÕ ùÛÐ×ÎØÛÊ
å×ÐÐÉ öÛÊÕÍ ¼ ÇÌØÛÈ× ÉÓÕÎÛÈÇÊ× ÙÛÊØ
û ûÈÈÍÊÎ×à ê×ÌÍÊÈ
ê×ÆÓÉ×Ø éÇÏÏÛÊà ìÐÛÎ ø×ÉÙÊÓÌÈÓÍÎ
é÷ù õûéú ï×ÏÍ
öïóÆè ûÌÌÐÓÙÛÈÓÍÎ ÖÍÊ ÷Ä×ÙÇÈÓÍÎ
õÛÊÙÓÛ ôÛÏÓÐÈÍÎ ûÉÉÍÙÓÛÈ×É ûÉÉÓÕÎÏ×ÎÈ ûÉÉÇÏÌÈÓÍÎ ÖÍÊ ×Ä×ÙÇÈÓÍÎ
çÌØÛÈ× ÍÎ óêé íÊØÓÎÛÎÙ×
ù úÍÛÊØ óÉÉÇ×É
æóóó ìÇÚÐÓÙ ùÍÏÏ×ÎÈÉ
óä ûØÒÍÇÊÎÏ×ÎÈ
î÷äè ëçûêè÷êðã ï÷÷èóîõ øûè÷
è×ÎÈÛÈÓÆ× å×ØÎ×ÉØÛà ö×ÚÊÇÛÊÃ
ìï
óÖ Û Ì×ÊÉÍÎ Ø×ÙÓØ×É ÈÍ ÛÌÌ×ÛÐ ÛÎà Ø×ÙÓÉÓÍÎ ÏÛØ× Úà ÈÔÓÉ úÍÛÊØ ÅÓÈÔ Ê×ÉÌ×ÙÈ ÈÍ ÛÎà ÏÛÈÈ×Ê ÙÍÎÉÓØ×Ê×Ø ÛÈ ÈÔÓÉ Ï××ÈÓÎÕ
Ô×
ÉÔ× ÅÓÐÐ Î××Ø Û Ê×ÙÍÊØ ÍÖ ÈÔ× ÌÊÍÙ××ØÓÎÕÉ ÛÎØ ÈÔÛÈ ÖÍÊ ÉÇÙÔ ÌÇÊÌÍÉ× Ô×
ÉÔ× ÏÛà Î××Ø ÈÍ ×ÎÉÇÊ× ÈÔÛÈ Û Æ×ÊÚÛÈÓÏ Ê×ÙÍÊØ
ÍÖ ÈÔ× ÌÊÍÙ××ØÓÎÕÉ ÓÉ ÏÛØ× ÅÔÓÙÔ Ê×ÙÍÊØ ÓÎÙÐÇØ×É ÈÔ× È×ÉÈÓÏÍÎà ÛÎØ ×ÆÓØ×ÎÙ× ÇÌÍÎ ÅÔÓÙÔ ÈÔ× ÛÌÌ×ÛÐ ÓÉ ÈÍ Ú× ÚÛÉ×Ø
öé
îÍÈÓÙ×
èÔ× ùÓÈà ÉÔÛÐÐ ÖÇÊÎÓÉÔ ÛÌÌÊÍÌÊÓÛÈ× ÛÇÄÓÐÓÛÊà ÛÓØÉ ÛÎØ É×ÊÆÓÙ×É ÅÔ×Ê× Î×Ù×ÉÉÛÊà ÈÍ ÛÖÖÍÊØ ÛÎ ÓÎØÓÆÓØÇÛÐ ÅÓÈÔ Û
ØÓÉÛÚÓÐÓÈà ÛÎ ×ËÇÛÐ ÍÌÌÍÊÈÇÎÓÈà ÈÍ ÌÛÊÈÓÙÓÌÛÈ× ÓÎ ÛÎØ ×ÎÒÍà ÈÔ× Ú×Î×ÖÓÈÉ ÍÖ Û É×ÊÆÓÙ× ÌÊÍÕÊÛÏ ÍÊ ÛÙÈÓÆÓÈà ÙÍÎØÇÙÈ×Ø Úà ÈÔ×
ùÓÈà ìÐ×ÛÉ× ÙÍÎÈÛÙÈ ÈÔ× ùÓÈà ùÐ×ÊÑ½É ÍÖÖÓÙ× ÛÈ
ÛÈ Ð×ÛÉÈ
ÍÊ ÛÙÈÓÆÓÈà ÓÎ ÍÊØ×Ê
ÖÍÊ ÈÔ× ùÓÈà ÈÍ Ê×ÛÉÍÎÛÚÐà ÛÙÙÍÏÏÍØÛÈ× ÃÍÇÊ Ê×ËÇ×ÉÈ
Meeting Minutes
General Employees' Pension Fund
Boynton Beach, Florida
August 23, 2010
MINUTES OF THE GENERAL EMPLOYEES' PENSION PLAN QUARTERLY BOARD
MEETING HELD ON MONDAY AUGUST 23, 2010 AT 1:30 PM IN COMMISSION
CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA
Trustees:Jose Rodriguez, Chair
Kurt Bressner
Lisa Jensen
Cathy McDeavitt
Laurie Fasolo
Virginia Shea
I. OPENINGS:
Others: Janna Hamilton, Garcia Hamilton & Associates
Jeff Swanson, Southeastern Advisory Services
Bonni Jensen, Perry & Jensen, LLC
Dixie Martinez, Resource Centers
Scott Baur, Resource Centers (2:30 pm)
Barry Atwood, Finance Director
Members of Public
A. Call to Order — Mayor Jose Rodriguez, Chairman
Chair Rodriguez called the meeting to order at 1:30 p.m.
II. AGENDA APPROVAL:
A. Additions, Deletions, Corrections
Ms. Bonni Jensen added items; VII.B.2. IRS Determination Letter and item VII.B.3. W-9 JP
Morgan. Ms. McDeavitt added item; VII.C.1. FPPTA Trustee School.
Mr. Bressner reported that he will have to leave the meeting at 2:30 pm and he would like to
be present for items; VI.A. Letter from Participant Katherine Jenkins and item VI I.A.1. Final
Average Compensation & Earnings. Ms. Martinez reported that Mr. Baur was running about
20 minutes late and he had additional information regarding Ms. Jenkins.
Motion
Ms. McDeavitt moved to approve the Agenda
unanimously passed 6-0.
III. APPROVAL OF MINUTES
A. Regular meeting May 19, 2010.
1
Ms. Shea seconded the motion that
Meeting Minutes
General Employees' Pension Fund
Boynton Beach, Florida August 23, 2010
Motion
Ms. Shea moved to approve the minutes of the regular meeting on May 19, 2010. Ms. Fasolo
seconded the motion that unanimously passed 6-0.
IV. INVESTMENT REPORTS
A. Quarterly Investment Review — Garcia Hamilton & Associates (Formerly
Davis Hamilton Jackson & Associates — Janna Hamilton (Manager)
Ms. Hamilton reported that stock process retreated during the quarter, following four quarters
of uninterrupted gains off the March 2009 bottom. She reported that economic measures
such as industrial production and corporate profits remain healthy and valuations are
attractive. Ms. Hamilton reported that there are still concerns on the European debt but there
are still positive things going on in the market. Ms. Hamilton reviewed the performance report
for quarter ending June 30, 2010. The market value equity portfolio as of the end of the
quarter is $15,020,046.88 with 96.9% inequities and 3.1% in cash. For the quarter the equity
account was down -11.1 % versus the Russell 1000 growth -11.7% and the S&P 500 -11.4%.
Ms. Hamilton reported that equity markets are apt to move higher once the current correction
has played out and that traditional growth stocks remain favorably positioned to deliver strong
relative performance. Ms. Hamilton reported that the fixed income portfolio market value as of
the end of the quarter is $15,341,844.62, with 99.2% in fixed income and 0.8% in cash. For
the quarter the fixed income account was 2.9% versus the Barclays Capital Aggregate 3.5%
and the Barclays Capital Int Gov/Credit at 3.0%. Ms. Hamilton reported that this quarter we
saw a revival of the safe -haven bid for treasuries as the events in Europe weighted heavily on
investors. She reported that investors steadily moved to a neutral position from their previous
outlook in rates. She also reported that monetary growth has fallen to normal historical levels.
Ms. Hamilton reported that she believes the worst is behind us now but that recovery will take
longer then anyone expected.
B. Quarterly Investment Performance Report: (Investment Consultant)
Southeastern Advisory Services: Jeff Swanson
Mr. Swanson reported that the markets had panicked in March of 2009 and that it's looking
much more positive now but in terms of the economy there are many concerns. He reported
that the June quarter was negative and that the first two quarter had some nice gains but
these had been taken back by the 3rd quarter. Mr. Swanson estimates that after July and
August the fund is positive 2% to 3%. He recommended eliminating Calamos Growth and
Touchstone Mid Cap Growth. He reported that all of the managers are performing within the
acceptable range except for Alliance Bernstein equity portfolio. He recommended putting
them under review. He explained that what this means is that they will be looking for them to
improve going forward and if they don't they should seek a replacement. Mr. Swanson
reported that it had been a very difficult quarter. He reported that the total fund was down -
6.6% versus the target index at -6.5%.Total Domestic Equity was down -11.8% versus the
index at -11.2% and Total International Equities was at -12.4% versus the index at -14.0%.
E
Meeting Minutes
General Employees' Pension Fund
Boynton Beach, Florida August 23, 2010
Total Real Estate was up by 4.0% versus the index at 3.3% and Total Fixed Income was 2.5%
versus the index at 3.5%. Mr. Swanson reviewed each manager individually.
1. Review of Small- Mid Capitalization Managers.
Mr. Swanson reported that we are looking to replace the two managers which are holding the
Mutual Funds, Calamos Growth, and Touchstone Mid Cap Growth. He reported that the Plan
has had these holdings for a long time now and they have grown over time. He reported that
he had six candidates for the Boards review to replace these managers. Mr. Swanson
reported that Atlanta Capital has a fee of 80 basis points, Eagle has a fee of 92 basis points,
Loomis Sayles has a fee of 84 basis points, Mutual of America Capital Management has a fee
of 9 basis points, Tradewinds has a fee of 69 basis points, and Wells Capital has a fee of 95
basis points. Mr. Swanson explained that he recommends going with at least two managers
that complement each other. Mr. Swanson compared and contrasted each manager. He
reviewed each manager in detail. The Board discussed the differences between the
managers in detail. The Board would like to interview Atlanta Capital, Mutual of America
Capital Management, Tradewinds, and Wells Capital. The Board instructed the administrator
to schedule a Special Board Meeting to interview the managers.
Action
Consensus of the Board to interview Atlanta Capital, Mutual of America Capital Management,
Tradewinds, and Wells Capital.
Action
Consensus of the Board to schedule a Special Board Meeting to interview the managers.
V. OLD BUSINESS
VI. CORRESPONDENCE
Mr. Bressner left the meeting at 2:32 pm.
A. Letter from Participant Katherine Jenkins — Request for Buying Additional
Time.
Mr. Baur reported that the ordinance describes eligibility and benefits for a vested deferred
member as follows:
If he has completed five (5) or more years of credited service or is totally and
permanently disabled he shall be fully vested and entitled to a deferred annuity
commencing at his normal retirement date. The monthly amount of such deferred
3
Meeting Minutes
General Employees' Pension Fund
Boynton Beach, Florida August 23, 2010
annuity shall be an amount computed in the same manner as the deferred annuity
described for early retirement in section 18-114. For the purpose of such calculation,
the member's date of termination of employment shall be considered as his early
retirement date.
According to the ordinance, the benefit begins at the normal retirement date for the member.
The amount of the benefit, on the other hand, is determined in the same manner as a benefit
for an early retirement, with the date of termination considered the member's "early retirement
date". Section 18-114 then describes eligibility and benefits for early retirement:
(a) The early retirement date of an employee shall be the first day of any month prior to
his or her normal retirement date and following, or coinciding with, the date of actual
retirement, provided (s)he has then completed less than thirty (30) years of service, but
at least: (a) ten (10) years of credited service and has attained his or her fifty-fifth
(55th) birthday; or (b) twenty-five (25) years of service and has attained fifty-two (52)
years of age. An employee who retires on an early retirement date shall be entitled to a
deferred annuity payable beginning at his or her normal retirement date or, if (s)he so
elects, to an immediate annuity beginning at his or her early retirement date. The
amount of the deferred annuity will be equal to a benefit determined as for normal
retirement under the provision of section 18-111, but based on the employee's final
average monthly compensation as of his or her early retirement date and his or her
credited service as of such early retirement date. If the retiring employee elects to
receive an immediate annuity commencing at his or her early retirement date, the
amount of such immediate annuity shall be the deferred annuity described in the
preceding sentence, less one-quarter of one percent (.25%) times the number of
months preceding his or her normal retirement date.
Vested deferred members commenced benefits at age 62 with less than 10 years of service,
age 55 with 10 or more years of service, and age 52 with 25 years or more of service. Normal
eligibility requires a member to retire at age 62 with less than 10 years of service, age 55 with
25 years or more of service, or 30 years of service regardless of age. The reduction for early
retirement, meanwhile, was determined. Mr. Baur reported that he does not believe the
member can buy time as she had requested under the current ordinance therefore the only
option to the member would be to receive a refund of the elective benefit contributions. Ms.
Bonni Jensen agreed. Ms. Martinez reported that Ms. Jenkins was present and she would like
to adress the Board. Mayor Rodriguez asked Ms. Jenkins to adress the Board.
Katherine Jenkins, 414 S.W. 8t" Ave — Ms. Jenkins explained that her intentions are not to
request a refund of her elective benefits. She explained that she wanted to remain with the
City for another 8 months so that she can receive her full retirement benefits. Mayor
Rodriguez explained that this was the Pension Board and they did not have any say regarding
her employment. Ms. Jenkins explained that she would like to buy the 8 months that she need
in order to retire. Mayor Rodriguez asked Ms. Sharin Goebelt who is the Resources Director,
if there was a time line before the Board had to make a decision regarding Ms. Jenkins'
request. Ms. Goebelt explained that Ms. Jenkins' position will be terminated as of October 1,
4
Meeting Minutes
General Employees' Pension Fund
Boynton Beach, Florida August 23, 2010
2010. Ms. Bonni Jensen reported that she did not believe that Ms. Jenkins could buy the time
but if the Board wanted to look into this a little bit further and see if there were any other
options for Ms. Jenkins they could table this item to the Special Meeting that the Board will be
having to interview investment managers. Ms. Jenkins son, Jerrill Harris asked the Board if he
could speak.
Jerrill Harris, 414 SW 8t" Ave — Mr. Harris explained that Ms. Jenkins' primary concern was
that in 8 months she would be able to retire but by not being able to purchase the time she will
have to wait additional years to retire. He explained that he does not know if the Ordinance
allows for any exceptions for members whose separation is not voluntary because their
positons have been eliminated. Ms. Bonni Jensen reported that there isn't anything in the
Ordinance for this type of situation but she could research it further if the Board would like her
to do so. The Board discussed Ms. Jenkins situation.
Motion
Ms. McDeavitt moved to table this item to the Special Meeting to be held prior to October 1,
2010. Ms. Lisa Jensen seconded the motion that unanimously passed 5-0.
VII. NEW BUSINESS
A. Administrator Report
1. Final Average Compensation & Earnings - Discussion
Mr. Baur reported that he needed clarification from the Board regarding the final average
salary. He explained that the Boynton ordinance contains the following definition for "Final
Average Compensation" and "Earnings":
(4) "Final average monthly compensation," for the purposes of this section, shall mean
the monthly average of the employee's earnings during the highest sixty (60)
consecutive calendar months occurring in the one hundred twenty (120) calendar
months immediately preceding his normal retirement date if such date falls on or after
January 1, 1979, and based upon compensation immediately preceding actual
retirement date if normal retirement date preceded January 1, 1979, or he elected to
continue to contribute after normal retirement date as provided in section 18-95.
"Earnings" as used in the above sentence shall mean gross earnings received by the
employee as compensation for service to the city including overtime pay and sick pay
paid in the lump sum at termination or retirement but excluding bonuses.
Calculations now and in the past add the lump sum sick and vacation pay out to the final
payroll. In other words, the lump -sum payment generally forces the highest consecutive five
years to be the last five years when the lump sum sick and vacation pay is added at the end.
5
Meeting Minutes
General Employees' Pension Fund
Boynton Beach, Florida August 23, 2010
Most general employees do not have significant variations in payroll due to overtime or other
pay, unlike public safety workers. The last five years is commonly the highest five years as a
result. Even though past practice dictates that the lump -sum payments become part of the
final pay (and force the selection of the final average salary period), we do not particularly
agree with this interpretation.
Mr. Baur explained that he had consulted with the Plan's actuary and he advised that neither
method affects how he values the Plan assets and liabilities. He explained that the ordinance
itself does not specifically determine how the final average salary should be calculated
therefore he is asking the Board for their determination as to a policy on how the final average
salary should be calculated. Ms. Martinez reported that she had used Ms. Sharon Vicky as a
sample so that the Board could see how it affects the members. Ms. Bonni Jensen reported
that Mr. Bressner had left his option regarding this matter before he left the meeting and he
felt that under the strictest interpretation of the Ordinance that in the highest five years had to
be consecutive to the sick and vacation payout in order to include it. Ms. McDeavitt asked
Ms. Vicky if she had anything unusual regarding her sick and vacation. Ms. Vicky explained
that when she went from an upper management position to an entry level position and as
collective bargaining member she could only accrue in her sick bank 1040 hours but she
already had accumulated 1500 hours of sick time therefore Finance created a personal bank
and every month she can carry any excess hours into her personal bank. The Board had a
lengthy discussion regarding how the final average salary is calculated and past practices.
Mayor Rodriguez reported that the Board did not have to make a decision today regarding this
matter he would like to see two different scenarios from an impact analysis to see the how this
could impact the Plan. He wants to make sure that the Board sees the financial risk impacts
before making a decision. Mayor commented that this item could be tabled until further
analysis can be done. Mr. Baur reported that he will work with the actuary and will bring it
back to the Board for their consideration.
Motion
Ms. McDeavitt moved to table this item to the next quarterly meeting. Ms. Lisa Jensen
seconded the motion that unanimously passed 5-0.
2. Warrant for Invoices
The Board reviewed the Disbursements presented for approval by the Administrator
Motion
Mr. McDeavitt moved to approve the invoices that were presented by the Administrator. Ms.
Lisa Jensen seconded the motion that unanimously passed 5-0.
3. Benefit Approvals
0
Meeting Minutes
General Employees' Pension Fund
Boynton Beach, Florida August 23, 2010
The Board reviewed the Benefit Approvals presented for approval by the Administrator.
Motion
Ms. Lisa Jensen moved to approve the Benefit Approval presented by the Administrator. Ms.
McDeavitt seconded the motion that unanimously passed 5-0.
B. Attorney Report
1. Benefits Unassignable and Not Subject to Process — Lewis Askins
Ms. Bonni Jensen reported that a letter had been sent to Ms. Askins. She explained that Ms.
Askins was looking for a Qualified Domestic Relations Order against Mr. Lewis Askins. MS.
Bonni Jensen explained that in general governmental plans are not subject to anything other
then income deductions orders for alimony or child support. Ms. Bonni Jensen reported that
the Board did not have to take any action regarding this matter.
2. IRS Determination Letter
Ms. Bonni Jensen reported that the Plan had received a Compliance Statement from the IRS
in response to the Plan's request for an IRS Determination Letter. She reported that it had
been discovered as the letter was filed that there were technical IRS amendments that were
not made in the past. Therefore in order for the Plan to be in compliance they had to go
through the Compliance Voluntary Program. She reported that the Plan had received the
approval and that the IRS has indicated that the Plan can be amendment to include those
compliance statements that had not been made. The Plan will need to be amended before
November 24, 2010. Ms. Bonni Jensen reviewed with the Board the proposed IRS
compliance amendments to the Plan with the Board. Ms. Bonni Jensen reported that the
Board will need to make a motion to forward the amendments to the Municipality so that the
Plan can implement this in accordance with the IRS compliance Statement.
Motion
Ms. Lisa Jensen moved to forward the amendments to the Municipality. Ms. McDeavitt
seconded the motion that unanimously passed 5-0.
3. W-9 JP Morgan
Ms. Bonni Jensen reported that she had the JP Morgan W-9 form and signature card ready
for execution.
7
Meeting Minutes
General Employees' Pension Fund
Boynton Beach, Florida
D. Board Issues
1. FPPTA Conference
August 23, 2010
Ms. McDeavitt reported that she would like to attend the FPPTA Trustee School in September
at the PGA Resort. Mayor Rodriguez commented that he may want to go as well. He will
confirm with the administrator.
Motion
Ms. Lisa Jensen moved to grant permission to Trustee McDeavitt and Mayor Rodriguez to
attend the FPPTA conference. Ms. Shea seconded the motion that unanimously passed 5-0.
VIII. PUBLIC COMMENTS
No public comments.
IX. ADJOURNMENT
There being no other business and the next meeting having been previously scheduled for
Monday, November 22 at 1:30 PM, the Trustees adjourned the meeting at 3:34 pm.
MINUTES APPROVED: November 22, 2010
Jose Rodriguez, Chair
Boynton Beach General Employees' Pension
Board
Dixie Martinez, Administrator
Boynton Beach General Employees' Pension
Board
ï××ÈÓÎÕ ïÓÎÇÈ×É
õ×Î×ÊÛÐ ÷ÏÌÐÍÃ××ɽ ì×ÎÉÓÍÎ öÇÎØ
úÍÃÎÈÍÎ ú×ÛÙÔ öÐÍÊÓØÛ é×ÌÈ×ÏÚ×Ê
ïóîçè÷é íö èô÷ õ÷î÷êûð ÷ïìðíã÷÷é½ ì÷îéóíî ìðûî éì÷ùóûð úíûêø ï÷÷èóîõ ô÷ðø íî
ïíîøûã é÷ìè÷ïú÷ê
ðóúêûêã úíãîèíî ú÷ûùô
öðíêóøû
òÍÉ× êÍØÊÓÕÇ× ùÔÛÓÊ ò×ÖÖ éÅÛÎÉÍÎ éÍÇÈÔ×ÛÉÈ×ÊÎ ûØÆÓÉÍÊà é×ÊÆÓÙ×É
èÊÇÉÈ××ÉíÈÔ×ÊÉ
ñÇÊÈ úÊ×ÉÉÎ×Ê úÍÎÎÓ ò×ÎÉ×Î ì×ÊÊà ò×ÎÉ×Î ððù
ðÓÉÛ ò×ÎÉ×Î éÙÍÈÈ úÛÇÊ ê×ÉÍÇÊÙ× ù×ÎÈ×ÊÉ
ùÛÈÔà ïÙø×ÛÆÓÈÈ øÓÄÓ× ïÛÊÈÓÎ× ê×ÉÍÇÊÙ× ù×ÎÈ×ÊÉ
ïÓÙÔÛ×Ð ðÍÅ øÛÎÎ éÏÓÈÔ å×ÐÐÉ öÛÊÕÍ
æÓÊÕÓÎÓÛ éÔ×Û ñ×ÆÓÎ õÛÇÕÔÛÎ å×ÐÐÉ öÛÊÕÍ
ùÔÊÓÉ ùÍÚÇÊÎ èÊÛØ×ÅÓÎØÉ
ïÛÊà ïÙèÛÕÇ× ûÈÐÛÎÈÛ ùÛÌÓÈÛÐ ïÛÎÛÕ×Ï×ÎÈ
òÍÉ×ÌÔ í½ê×ÓÐÐà ïÇÈÇÛÐ ÍÖ ûÏ×ÊÓÙÛ ùÛÌÓÈÛÐ ïÛÕ×Ï×ÎÈ
òÍÉ×ÌÔ õÛÖÖÍÕÓÛ ïÇÈÇÛÐ ÍÖ ûÏ×ÊÓÙÛ ùÛÌÓÈÛÐ ïÛÎÛÕ×Ï×ÎÈ
úÛÊÊà ûÈÅÍÍØ öÓÎÛÎÙ× øÓÊ×ÙÈÍÊ
ï×ÏÚ×ÊÉ ÍÖ ìÇÚÐÓÙ
ó íì÷îóîõé
û
ùÛÐÐ ÈÍ íÊØ×Ê ¼ ïÛÃÍÊ òÍÉ× êÍØÊÓÕÇ× ùÔÛÓÊÏÛÎ
ùÔÛÓÊ êÍØÊÓÕÇ× ÙÛÐÐ×Ø ÈÔ× Ï××ÈÓÎÕ ÈÍ ÍÊØ×Ê ÛÈ
ÌÏ
óó ûõ÷îøû ûììêíæûð
û ûØØÓÈÓÍÎÉ ø×Ð×ÈÓÍÎÉ ùÍÊÊ×ÙÈÓÍÎÉ
èÔ×Ê× Å×Ê× ÎÍ ÛØØÓÈÓÍÎÉ Ø×Ð×ÈÓÍÎÉ ÍÊ ÙÍÊÊ×ÙÈÓÍÎÉ ÈÍ ÈÔ× ûÕ×ÎØÛ
ïÍÈÓÍÎ
ïÉ ïÙø×ÛÆÓÈÈ ÏÍÆ×Ø ÈÍ ÛÌÌÊÍÆ× ÈÔ× ûÕ×ÎØÛ ïÉ ðÓÉÛ ò×ÎÉ×Î É×ÙÍÎØ×Ø ÈÔ× ÏÍÈÓÍÎ ÈÔÛÈ ÇÎÛÎÓÏÍÇÉÐÃ
ÌÛÉÉ×Ø
óóó íðø úçéóî÷éé
û ð×ÈÈ×Ê ÖÊÍÏ ìÛÊÈÓÙÓÌÛÎÈ ñÛÈÔ×ÊÓÎ× ò×ÎÑÓÎÉ ¼ ê×ËÇ×ÉÈ ÖÍÊ úÇÃÓÎÕ ûØØÓÈÓÍÎÛÐ
èÓÏ×
ï××ÈÓÎÕ ïÓÎÇÈ×É
õ×Î×ÊÛÐ ÷ÏÌÐÍÃ××ɽ ì×ÎÉÓÍÎ öÇÎØ
úÍÃÎÈÍÎ ú×ÛÙÔ öÐÍÊÓØÛ é×ÌÈ×ÏÚ×Ê
ïÊ úÛÇÊ Ê×ÌÍÊÈ×Ø ÈÔÛÈ Ô× ÔÛØ ÌÊÍÆÓØ×Ø ÈÔ× úÍÛÊØ ÅÓÈÔ ÛÎ ÇÌØÛÈ×Ø ÉÇÏÏÛÊà ÍÖ ÈÔ× ÍÌÈÓÍÎÉ ÛÆÛÓÐÛÚÐ× ÈÍ
ïÉ ò×ÎÑÓÎÉ ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÍÊÓÕÓÎÛÐÐà Ô× ÔÛØ ÉÈÛÈ×Ø ÈÔÛÈ ïÉ ò×ÎÑÓÎÉ Æ×ÉÈ×Ø Ø×Ö×ÊÊ×Ø Ú×Î×ÖÓÈ ÅÍÇÐØ
ÉÈÛÊÈ ÛÈ ÛÕ× ûÖÈ×Ê ÖÇÊÈÔ×Ê Ê×ÆÓ×Å ÛÎØ ØÓÉÙÇÉÉÓÍÎÉ ÅÓÈÔ ÙÍÇÎÉ×Ð ÛÎØ ÅÓÈÔ ÈÔ× ÛÙÈÇÛÊà ÈÔ×à ÛÕÊ××Ø ÈÔÛÈ
ÈÔ× ÍÊØÓÎÛÎÙ× ÛÙÈÇÛÐÐà ØÓÊ×ÙÈÉ ÈÔ×Ï ÈÍ Ú×ÕÓÎ Û Ú×Î×ÖÓÈ ÖÍÊ Û Æ×ÉÈ×Ø Ø×Ö×ÊÊ×Ø Ï×ÏÚ×Ê ÛÈ ÈÔ× ×ÛÊÐÓ×ÉÈ ÎÍÊÏÛÐ
Ê×ÈÓÊ×Ï×ÎÈ ØÛÈ× ÅÔÓÙÔ ÓÎ ïÉ ò×ÎÑÓÎÉ½É ÙÛÉ× ÓÈ ÅÍÇÐØ Ú× ÛÈ ÛÕ×
Ã×ÛÊÉ ÖÊÍÏ Ô×Ê ÍÊÓÕÓÎÛÐ ÔÓÊ× ØÛÈ×
ïÊ úÛÇÊ Ê×ÌÍÊÈ×Ø ÈÔÛÈ ïÉ ò×ÎÑÓÎÉ ÔÛÉ ÈÅÍ ÍÌÈÓÍÎÉ ÛÈ Ð×ÛÉÈ ÖÊÍÏ ÈÔ× ì×ÎÉÓÍÎ öÇÎØ½É ÉÈÛÎØ ÌÍÓÎÈ íÌÈÓÍÎ
ÍÎ× ÅÍÇÐØ Ú× ÈÔÛÈ ÉÔ× ÙÛÎ ÈÛÑ× Û Ê×ÖÇÎØ ÍÖ ÈÔ× ÙÍÎÈÊÓÚÇÈÓÍÎÉ ÈÔÛÈ ÉÔ× ÏÛØ× ÓÎÈÍ ÈÔ× ×Ð×ÙÈÓÆ× Ú×Î×ÖÓÈ ÛÎØ
ÅÛÓÈ ÇÎÈÓÐ ÉÔ× ÓÉ ×ÐÓÕÓÚÐ× ÈÍ ÙÍÐÐ×ÙÈ Ô×Ê Æ×ÉÈ×Ø Ø×Ö×ÊÊ×Ø Ú×Î×ÖÓÈ ÖÊÍÏ ÈÔ× ùÓÈà èÔ× É×ÙÍÎØ ÍÌÈÓÍÎ ÓÉ ÈÔÛÈ ÉÔ×
ÙÛÎ ÚÇà ÛÎÍÈÔ×Ê ×Ð×ÙÈÓÆ× Ú×Î×ÖÓÈ ÍÖ Ô×Ê ÙÔÍÓÙ× ÅÓÈÔ ÈÔ× ÙÍÎÈÊÓÚÇÈÓÍÎÉ ÈÔÛÈ ÉÔ× ÏÛØ× ÓÎÈÍ ÈÔ×
Ã×ÛÊ
É×ÊÆÓÙ× Ê×ËÇÓÊ×Ï×ÎÈ ×Ð×ÙÈÓÆ× Ú×Î×ÖÓÈ ÉÓÎÙ× ÉÔ× ÅÓÐÐ Î×Æ×Ê Ø×ÊÓÆ× ÛÎà Ú×Î×ÖÓÈÉ ÖÊÍÏ ÈÔ×
×
Ê×ËÇÓÊ×Ï×ÎÈ ×Ð×ÙÈÓÆ× Ú×Î×ÖÓÈ éÔ× ÙÛÎ ÛÐÉÍ Ê×ËÇ×ÉÈ Û Ê×ÖÇÎØ ÍÖ Ô×Ê ÙÍÎÈÊÓÚÇÈÓÍÎÉ ÛÎØ ÖÍÊÖ×ÓÈ Ô×Ê Æ×ÉÈ×Ø
Ú×Î×ÖÓÈ ïÛÃÍÊ êÍØÊÓÕÇ× ÛÉÑ×Ø ïÊ úÛÇÊ ÓÖ Ô× ÔÛØ Ú××Î ÛÚÐ× ÈÍ ÙÍÏ× ÇÌ ÅÓÈÔ ÛÎà Î×Å ÍÌÈÓÍÎÉ ÛÆÛÓÐÛÚÐ×
ÈÍ ïÉ ò×ÎÑÓÎÉ ïÊ úÛÇÊ Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ× ÍÎÐà ÈÔÓÎÕ ÈÔÛÈ ÔÛØ ÙÔÛÎÕ× ÉÓÎÙ× ÈÔ× ÐÛÉÈ Ï××ÈÓÎÕ ÅÛÉ ÈÔÛÈ ïÉ
ò×ÎÑÓÎÉ ÙÛÎ ÉÈÛÊÈ ÙÍÐÐ×ÙÈÓÎÕ Ô×Ê Æ×ÉÈ×Ø Ø×Ö×ÊÊ×Ø Ú×Î×ÖÓÈ ÛÈ ÛÕ×
Ã×ÛÊÉ ÖÊÍÏ ÈÔ× ØÛÈ× ÉÔ× ÅÛÉ ÔÓÊ×Ø
ÛÈ ÈÔ× ùÓÈà ÈÔ×Ê×ÖÍÊ× ÉÔ× ÅÓÐÐ Ú× ÛÚÐ× ÈÍ ÙÍÏÏ×ÎÙ× Ô×Ê Ú×Î×ÖÓÈ
Ã×ÛÊÉ ×ÛÊÐÓ×Ê ÈÔÛÎ Ô× ÔÛØ ÍÊÓÕÓÎÛÐÐÃ
Ê×ÌÍÊÈ×Ø ïÊ úÛÇÊ Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ× ì×ÎÉÓÍÎ öÇÎØ ØÍ×É ÎÍÈ Î×Ù×ÉÉÛÊÓÐà ÔÛÆ× Û ÉÍÐÇÈÓÍÎ ÈÍ ïÉ ò×ÎÑÓÎÉ
ÉÓÈÇÛÈÓÍÎ ûÎà ÍÈÔ×Ê ÉÍÐÇÈÓÍÎÉ Ú×ÃÍÎØ ÅÔÛÈ Ô× ÔÛÉ Ø×ÉÙÊÓÚ×Ø ÅÓÐÐ ÔÛÆ× ÈÍ ÙÍÏ× ÖÊÍÏ ÈÔ× ùÓÈà ïÛÃÍÊ
êÍØÊÓÕÇ× ÉÈÛÈ×Ø ÈÔÛÈ ÉÓÎÙ× ÈÔ× ÍÌÈÓÍÎÉ ÛÊ× ÛÆÛÓÐÛÚÐ× ÈÍ ïÉ ò×ÎÑÓÎÉ Ê×ÕÛÊØÐ×ÉÉ ÛÎØ ÉÓÎÙ× ÈÔ× úÍÛÊØ ÙÛÎ
ÎÍÈ Ô×ÐÌ Ô×Ê ÅÓÈÔ ÛÎ ÛÐÈ×ÊÎÛÈÓÆ× ÛÉ ÉÔ× ÔÛØ Ê×ËÇ×ÉÈ×Ø Ô× ØÓØ ÎÍÈ ÈÔÓÎÑ Û ÏÍÈÓÍÎ ÅÛÉ Î××Ø×Ø ïÉ úÍÎÎÓ
ò×ÎÉ×Î ÛÕÊ××Ø
ïÊ úÛÇÊ Ð×ÖÈ ÈÔ× Ï××ÈÓÎÕ
óä î÷å úçéóî÷éé
û óÎÈ×ÊÆÓ×Å ÍÖ éÏÛÐÐïÓØ ùÛÌÓÈÛÐÓÂÛÈÓÍÎ ïÛÎÛÕ×ÊÉ
ïÊ éÅÛÎÉÍÎ Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÙÇÊÊ×ÎÈÐà ÈÔ× ìÐÛÎ ÔÛÉ ÏÓÐÐÓÍÎ ÅÓÈÔ ÈÅÍ ÉÏÛÐÐ ÙÛÌ ÖÇÎØÉ ô× ×ÄÌÐÛÓÎ×Ø ÈÔÛÈ
ÈÔ×É× ÖÇÎØÉ ÔÛÆ× Ì×ÊÖÍÊÏ×Ø ÉÛÈÓÉÖÛÙÈÍÊÓÐà ÚÇÈ Å× ÛÊ× ÐÍÍÑÓÎÕ ÈÍ ÙÔÛÎÕ× ÈÔ× ÏÛÎØÛÈ× ÖÊÍÏ ÉÏÛÐÐ ÙÛÌ ÈÍ
éïóø ÉÏÛÐÐ ÈÍ ÏÓØ ÙÛÌ óÎ ØÍÓÎÕ ÉÍ ÈÔ× ìÐÛÎ ÏÛà Ú× ÛÚÐ× ÈÍ ÕÍ ÖÊÍÏ ÏÓÐÐÓÍÎÉ ÈÍ
ÏÓÐÐÓÍÎÉ ïÊ
éÅÛÎÉÍÎ Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×à ÅÓÐÐ Ú× ÓÎÈ×ÊÆÓ×ÅÓÎÕ ÏÛÎÛÕ×ÊÉ ÈÍØÛà ô× ×ÄÌÐÛÓÎ×Ø ÈÔÛÈ ÈÔ× ÖÓÊÉÈ ÈÔÊ×× ÛÊ×
ÛÙÈÓÆ× ÏÛÎÛÕ×ÊÉ ÛÎØ ÈÔÛÈ ÈÔ× Ú×ÎÙÔÏÛÊÑ ÖÍÊ ÈÔÓÉ ÛÉÉÓÕÎÏ×ÎÈ ÓÉ ÈÔ× êÇÉÉ×ÐÐ
ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×Ã
ÛÊ× ÐÍÍÑÓÎÕ ÈÍ ÛØØ ÈÍ ÖÓÊÏÉ
Û å×ÐÐÉ öÛÊÕÍ ¼ øÛÎÎ éÏÓÈÔ ñ×ÆÓÎ õÛÇÕÔÛÏ
ïÊ øÛÎÎ éÏÓÈÔ ÛÎØ ïÊ ñ×ÆÓÎ õÛÇÕÔÛÏ ÓÎÈÊÍØÇÙ×Ø ÈÔ×ÏÉ×ÐÆ×É ÈÍ ÈÔ× úÍÛÊØ ïÊ éÏÓÈÔ ÈÔÛÎÑ×Ø ÈÔ×
úÍÛÊØ ÖÍÊ ÈÔ× ÍÌÌÍÊÈÇÎÓÈà ÈÍ Ï××È ÅÓÈÔ ÈÔ×Ï ÈÍØÛà ïÊ éÏÓÈÔ ×ÄÌÐÛÓÎ×Ø ÓÎ Ø×ÈÛÓÐ ÈÔ× ÔÓÉÈÍÊà ÍÖ ÈÔ× ÖÓÊÏ
ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÛÉ ÍÖ òÇÎ×
×Ê
ÚÓÐÐÓÍÎÉ ÍÎ Ú×ÔÛÐÖ ÍÖ ÈÔ×ÓÊ ÙÐÓ×ÎÈÉ ô× Ê×ÌÍÊÈ×Ø
ÈÔÛÈ ÓÎ öÐÍÊÓØÛ ÈÔ×à ÏÛÎÛÕ× ÛÉÉ×ÈÉ ÖÍÊ ÈÔ× ùÓÈà ÍÖ íÊÐÛÎØÍ ùÓÈà ÍÖ èÛÏÌÛ éÈ ì×È×ÊÉÚÇÊÕ å×ÉÈ ìÛÐÏ
ú×ÛÙÔ ìÍÐÓÙ× ì×ÎÉÓÍÎ öÇÎØ éÛÊÛÉÍÈÛ öÓÊ×ÖÓÕÔÈ×ÊÉ ÛÎØ ÈÔ× éÈÛÈ× úÍÛÊØ ÍÖ ûØÏÓÎÓÉÈÊÛÈÓÍÎ
ïÊ õÛÇÕÔÛÏ ÙÍÏÏ×ÎÈ×Ø ÈÔÛÈ Ô× ÅÍÇÐØ Ú× ÈÔ× É×ÎÓÍÊ ÌÍÊÈÖÍÐÓÍ ÏÛÎÛÕ×Ê ÛÎØ Ô× ÔÛÉ
Ã×ÛÊÉ ÍÖ
×ÄÌ×ÊÓ×ÎÙ× ô× ×ÄÌÐÛÓÎ×Ø ÓÎ Ø×ÈÛÓÐ ÈÔ× ÓÎÆ×ÉÈÏ×ÎÈ ÌÔÓÐÍÉÍÌÔà ÍÖ ÈÔ× ÖÓÊÏ ô× ÌÍÓÎÈ×Ø ÍÇÈ ÈÔÛÈ ÈÔ×à ÛÊ×
ï××ÈÓÎÕ ïÓÎÇÈ×É
õ×Î×ÊÛÐ ÷ÏÌÐÍÃ××ɽ ì×ÎÉÓÍÎ öÇÎØ
úÍÃÎÈÍÎ ú×ÛÙÔ öÐÍÊÓØÛ é×ÌÈ×ÏÚ×Ê
ÛÙÈÓÆ× ÏÛÎÛÕ×ÊÉ ÛÎØ ÈÔ×ÓÊ ÕÍÛÐ ÓÉ ÈÍ ÍÇÈÌ×ÊÖÍÊÏ ÈÔ× êÇÉÉ×ÐÐ
×Ø
ÈÔÛÈ ÉÓÎÙ× ÓÎÙ×ÌÈÓÍÎ ÈÔ×à ÔÛÆ× ÍÇÈ Ì×ÊÖÍÊÏ×Ø Úà ÍÆ×Ê
ÚÛÉÓÉ ÌÍÓÎÈÉ Û Ã×ÛÊ ÅÓÈÔ ÐÍÅ×Ê ÊÓÉÑ ô×
×ÄÌÐÛÓÎ×Ø ÈÔÛÈ ÈÔ× ÓÎÓÈÓÛÐ ÉÙÊ××ÎÉ ÈÍ ÉÙÊ××Î ÍÇÈ ÙÍÏÌÛÎÓ×É ÛÊ× ÏÛÊÑ×È ÙÛÌ ÕÊÍÅÈÔ Ê×ÈÇÊÎÉ ÛÎØ Î×ÕÐ×ÙÈ
ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×à ÙÍÇÐØ ÍÖÖ×Ê Û É×ÌÛÊÛÈ× ÏÛÎÛÕ×Ø ÛÙÙÍÇÎÈ ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×ÓÊ Ö××É ÛÊ× ÚÛÉÓÉ
ÌÍÓÎÈÉ ÛÎØ ÈÔÛÈ ÈÔ×à ÅÍÇÐØ ÔÛÌÌà ÈÍ ÅÛÓÆ× ÈÔ×
ÏÓÐÐÓÍÎ ÏÓÎÓÏÇÏ ÛÙÙÍÇÎÈ ÉÓÂ× ÛÎØ ÈÔ×
ÛÎÎÇÛÐ
Ö×× ô× Ê×ÉÌÍÎØ×Ø ÈÍ ÆÛÊÓÍÇÉ ËÇ×ÉÈÓÍÎÉ Úà ÈÔ× èÊÇÉÈ××É
Ú èÊÛØ×ÅÓÎØÉ ¼ ùÔÊÓÉ ùÍÚÇÊÎ
ùÔÊÓÉ ùÍÚÇÊÎ ÓÎÈÊÍØÇÙ×Ø ÔÓÏÉ×ÐÖ ÈÍ ÈÔ× úÍÛÊØ ô× ×ÄÌÐÛÓÎ×Ø ÓÎ Ø×ÈÛÓÐ ÈÔ× ÔÓÉÈÍÊà ÍÖ ÈÔ× ÖÓÊÏ ô× Ê×ÌÍÊÈ×Ø
ÈÔÛÈ ÈÔ×à ÏÛÎÛÕ× ÍÆ×Ê
ÛÐÖ ÍÖ ÈÔ×ÓÊ ÙÐÓ×ÎÈÉ ô× ×ÄÌÐÛÓÎ×Ø ÓÎ Ø×ÈÛÓÐ ÈÔ×
ÓÎÆ×ÉÈÏ×ÎÈ ÌÔÓÐÍÉÍÌÔà ÍÖ ÈÔ× ÖÓÊÏ ô× ÌÍÓÎÈ×Ø ÍÇÈ ÈÔÛÈ ÈÔ×à Ú×ÐÓ×Æ× ÈÔÛÈ ÈÔ× ÏÛÊÑ×ÈÉ ÛÊ× ÎÍÈ ÛÐÅÛÃÉ
×ÖÖÓÙÓ×ÎÈ ô× ×ÄÌÐÛÓÎ×Ø ÈÔÛÈ ÈÔ×ÓÊ ÍÚÒ×ÙÈÓÆ× ÓÉ ÈÍ ÛØØ ÆÛÐÇ× Úà ÚÇÓÐØÓÎÕ Û ØÓÆ×ÊÉÓÖÓ×Ø ÌÍÊÈÖÍÐÓÍ ÍÖ ÛÈÈÊÛÙÈÓÆ×ÐÃ
ÆÛÐÇ×Ø ÍÌÌÍÊÈÇÎÓÈÓ×É ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×à É×Ð×ÙÈ ×ËÇÓÈà É×ÙÇÊÓÈÓ×É Úà ÙÍÎØÇÙÈÓÎÕ ÊÓÕÍÊÍÇÉ ÓÎØ×Ì×ÎØ×ÎÈ
ÛÎÛÐÃÉÓÉ ô× ÌÍÓÎÈ×Ø ÍÇÈ ÈÔÛÈ ÆÛÐÇ× ÓÉ Û ÌÊ× Ê×ËÇÓÉÓÈ× ÛÎØ ÓÉ ÎÍÈ Û ÉÈÃÐ× èÔÛÈ ÈÔ×à ÅÓÐÐ ÚÇà ÍÎÐà ÕÍÍØ ÉÍÐÓØ
ÙÍÏÌÛÎÓ×É ïÊ ùÍÚÇÊÎ Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÛÈ ÈÔ× ÈÍÌ ÍÖ ÔÓÉ Ô×ÛØ Ô× ÙÍÇÐØ ÎÍÈ Ê×Ï×ÏÚ×Ê ÛÐÐ ÍÖ ÈÔ×ÓÊ öÐÍÊÓØÛ
ÙÐÓ×ÎÈÉ ÚÇÈ Ô× ÙÍÇÐØ É×ÎØ Û ÐÓÉÈ ÈÍ ïÊ éÅÛÎÉÍÎ
ïÊ éÅÛÎÉÍÎ Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×à ÛÊ× ÈÔ× Ú×ÉÈ Ì×ÊÖÍÊÏ×Ê ÍÖ ÛÐÐ ÈÔ× ÙÛÎØÓØÛÈ×É ÈÍØÛà ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×ÓÊ
ÌÍÊÈÖÍÐÓÍ ÅÛÉ Æ×Êà ØÓÖÖ×Ê×ÎÈ ÈÔÛÎ ÈÔ× Ú×ÎÙÔÏÛÊÑ ÛÎØ ÈÔÓÉ ÔÛÉ ÛÐÐÍÅ×Ø ÈÔ×Ï ÓÎ ÈÔ× ÌÛÉÈ ÈÍ Ú× Û ÏÇÙÔ Ú×ÈÈ×Ê
Ì×ÊÖÍÊÏ×Ê ÚÇÈ ÓÈ ÛÐÉÍ ÍÌ×ÎÉ Û ØÍÍÊ ÖÍÊ ÈÔ× ÌÍÉÉÓÚÓÐÓÈà ÍÖ Û ÚÓÕ ÏÓÉÉ ÓÎ ÈÔ× ÖÇÈÇÊ× ô× ÛÉÑ×Ø ïÊ ùÍÚÇÊÎ ÓÖ
Ô× ÙÍÇÐØ ÛØØÊ×ÉÉ ÈÔÓÉ ïÊ ùÍÚÇÊÎ ÙÍÏÏ×ÎÈ×Ø ÈÔÛÈ ÛÉ ÈÔ× ÅÍÊÐØ ÓÉ ÈÍØÛà ÈÔ×Ê× ÅÓÐÐ ÛÐÅÛÃÉ Ú× Û ÐÍÈ ÍÖ
ÍÌÌÍÊÈÇÎÓÈÓ×É ÖÍÊ ÓÎÆ×ÉÈÍÊÉ ÐÓÑ× ÈÔ×Ï ÍÇÈ ÈÔ×Ê× ×Æ×Î ÅÓÈÔ Û ÆÍÐÛÈÓÐ× ÏÛÊÑ×È ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×à ÙÍÇÐØ
ÍÖÖ×Ê Û É×ÌÛÊÛÈ× ÏÛÎÛÕ×Ø ÛÙÙÍÇÎÈ èÔ×ÓÊ Ö××É ÛÊ× ÚÛÉÓÉ ÌÍÓÎÈÉ ÅÓÈÔ Û ÏÓÎÓÏÇÏ ÓÎÆ×ÉÈÏ×ÎÈ ÍÖ
ÍÎ
ØÍÐÐÛÊÉ ô× Ê×ÉÌÍÎØ×Ø ÈÍ ÆÛÊÓÍÇÉ ËÇ×ÉÈÓÍÎÉ Úà ÈÔ× èÊÇÉÈ××É
Ù ûÈÐÛÎÈÛ ùÛÌÓÈÛÐ ïÛÎÛÕ×Ï×ÎÈ ¼ ïÛÊà ïÙèÛÕÇ×
ïÛÊà ïÙèÛÕÇ× ÓÎÈÊÍØÇÙ×Ø Ô×ÊÉ×ÐÖ ÈÍ ÈÔ× úÍÛÊØ éÔ× ×ÄÌÐÛÓÎ×Ø ÓÎ Ø×ÈÛÓÐ ÈÔ× ÔÓÉÈÍÊà ÍÖ ÈÔ× ÖÓÊÏ éÔ×
Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×à ÏÛÎÛÕ× ÍÆ×Ê ÚÓÐÐÓÍÎ ÓÎ ÛÉÉ×ÈÉ ÍÎ Ú×ÔÛÐÖ ÍÖ ÈÔ×ÓÊ ÙÐÓ×ÎÈÉ éÔ× ÌÍÓÎÈ×Ø ÍÇÈ ÈÔÛÈ ÈÔ×Ã
ÔÛÆ× ÍÆ×Ê
ÐÉÍ ÓÎÆÍÐÆ×Ø ÅÓÈÔ ÈÔ× öììèû éÔ× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×à ÛÊ×
ÍÅÎ×Ø Úà ÷ÛÈÍÎ æÛÎÙ× ùÍÊÌÍÊÛÈÓÍÎ ÛÎØ ×ËÇÓÈà ÌÛÊÈÎ×ÊÉ éÔ× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÷ÛÈÍÎ æÛÎÙ× ÓÉ Û ÐÛÊÕ×
ïÇÈÇÛÐ öÇÎØ ÓÎ úÍÉÈÍÎ ÛÐÈÔÍÇÕÔ ÈÔ×à ÛÊ× ÓÎØ×Ì×ÎØ×ÎÈ ÓÎ ÈÔ×ÓÊ ØÛà ÈÍ ØÛà ÌÊÍÙ×ÉÉ×É ÈÔ× Ú×Î×ÖÓÈ ÍÖ ÅÍÊÑÓÎÕ
ÅÓÈÔ ÷ÛÈÍÎ æÛÎÙ× ÔÛÉ ÛÐÐÍÅ×Ø ÈÔ×Ï ÈÍ ÏÍÆ× ÓÎÈÍ ÈÔ× ØÓÉÈÊÓÚÇÈÓÍÎ ÙÔÛÎÎ×ÐÉ ÍÖ ÏÇÈÇÛÐ ÖÇÎØÉ ÅÔÓÙÔ ÓÉ
ÅÍÎØ×ÊÖÇÐ ÖÍÊ Û ùÓÈà ÐÓÑ× úÍÃÎÈÍÎ éÔ× ×ÄÌÐÛÓÎ×Ø ÓÎ Ø×ÈÛÓÐ ÈÔ× ÓÎÆ×ÉÈÏ×ÎÈ ÌÔÓÐÍÉÍÌÔà ÍÖ ÈÔ× ÖÓÊÏ éÔ×
ÌÍÓÎÈ×Ø ÍÇÈ ÈÔÛÈ ÈÔ×à ÍÎÐà ÓÎÆ×ÉÈ ÓÎ ÔÓÕÔ ËÇÛÐÓÈà ÙÍÏÌÛÎÓ×É éÔ× ×ÄÌÐÛÓÎ×Ø ÈÔÛÈ ÖÍÊ ÈÔ×Ï ÔÓÕÔ ËÇÛÐÓÈÃ
ÙÍÏÌÛÎÓ×É ÛÊ× ÙÍÏÌÛÎÓ×É ÅÔÓÙÔ ÔÛÆ× Ø×ÏÍÎÉÈÊÛÈ×Ø Û ÔÓÉÈÍÊà ÍÖ ÙÍÎÉÓÉÈ×ÎÈ ÕÊÍÅÈÔ ÛÎØ ÉÈÛÚÓÐÓÈà ÓÎ
×ÛÊÎÓÎÕ éÔ× ×ÄÌÐÛÓÎ×Ø ÈÔÛÈ ÈÔ×à ÔÛÆ× Û Å×ÐÐ ØÓÆ×ÊÉÓÖÓ×Ø ÌÍÊÈÖÍÐÓÍ ÛÎØ ÈÔÛÈ ÈÔ×à Î×Æ×Ê ÓÎÆ×ÉÈ ÏÍÊ× ÈÔÛÎ
ÓÎ ÛÎà ÌÍÉÓÈÓÍÎ ÛÎØ ÈÔ×Ê× ÓÉ Î×Æ×Ê ÏÍÊ× ÈÔÛÎ Û
ÏÛÄÓÏÇÏ ÓÎ Û É×ÙÈÍÊ éÔ× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÓÖ ÈÔ×
ìÐÛÎ ÙÔÍÍÉ×É ÈÍ ÅÍÊÑ ÅÓÈÔ ûÈÐÛÎÈÛ ùÛÌÓÈÛÐ ÈÔ×à ÅÓÐÐ ÔÛÆ× Û ÙÍÇÌÐ× ÍÖ ØÓÖÖ×Ê×ÎÈ ÍÌÈÓÍÎÉ éÔ× ×ÄÌÐÛÓÎ×Ø ÈÔÛÈ
ÈÔÊÍÇÕÔ ÈÔ×ÓÊ ÌÛÊ×ÎÈ ÙÍÏÌÛÎà ÈÔ×à ÔÛÆ× Û ÏÇÈÇÛÐ ÖÇÎØ ÅÔÓÙÔ ÓÉ ÙÛÐÐ×Ø ÈÔ× ÷ÛÈÍÎ æÛÎÙ× ûÈÐÛÎÈÛ ùÛÌÓÈÛÐ
éïóø ùÛÌ öÇÎØ ÛÎØ ÓÈ ÅÍÇÐØ Ú× ÛÆÛÓÐÛÚÐ× ÛÈ ÛÎ ÓÎÉÈÓÈÇÈÓÍÎÛÐ ÊÛÈ× ÍÖ ÚÛÉÓÉ ÌÍÓÎÈÉ éÔ× Ê×ÌÍÊÈ×Ø ÈÔÛÈ
ï××ÈÓÎÕ ïÓÎÇÈ×É
õ×Î×ÊÛÐ ÷ÏÌÐÍÃ××ɽ ì×ÎÉÓÍÎ öÇÎØ
úÍÃÎÈÍÎ ú×ÛÙÔ öÐÍÊÓØÛ é×ÌÈ×ÏÚ×Ê
ÛÎÍÈÔ×Ê ÍÌÈÓÍÎ ÅÍÇÐØ Ú× ÈÍ ÕÍ ÈÔÊÍÇÕÔ ÈÔ× öÐÍÊÓØÛ ïÇÎÓÙÓÌÛÐ óÎÆ×ÉÈÏ×ÎÈ èÊÇÉÈ ÅÔÓÙÔ ÔÛÉ ÈÔ× ÉÛÏ×
ÉÈÊÛÈ×Õà ÖÍÊ ÛÌÌÊÍÄÓÏÛÈ×Ðà ÚÛÉÓÉ ÌÍÓÎÈÉ ÅÓÈÔ Û ÏÓÎÓÏÇÏ ÓÎÆ×ÉÈÏ×ÎÈ ÍÖ
ÛÎØ ÎÍ ÏÛÄÓÏÇÏ
Ø ïÇÈÇÛÐ ÍÖ ûÏ×ÊÓÙÛ ùÛÌÓÈÛÐ ïÛÎÛÕ×Ï×ÎÈ ¼ òÍÉ×ÌÔ í½ê×ÓÐÐà òÍÉ×ÌÔ õÛÖÖÍÕÐÓÍ
ïÊ í½ê×ÓÐÐà ÛÎØ ïÊ õÛÖÖÍÕÐÓÍ ÓÎÈÊÍØÇÙ×Ø ÈÔ×ÏÉ×ÐÆ×É ÈÍ ÈÔ× úÍÛÊØ ïÊ í½ê×ÓÐÐ×à ÌÍÓÎÈ×Ø ÍÇÈ ÈÔÛÈ ÈÔ×Ã
ÛÊ× ÌÛÉÉÓÆ× ÏÛÎÛÕ×ÊÉ ô× ×ÄÌÐÛÓÎ×Ø ÓÎ Ø×ÈÛÓÐ ÈÔ× ÔÓÉÈÍÊà ÍÖ ÈÔ× ÖÓÊÏ ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ×à ÏÛÎÛÕ× ÍÆ×Ê
ÚÓÐÐÓÍÎ ÓÎ ÛÉÉ×ÈÉ ÍÎ Ú×ÔÛÐÖ ÍÖ ÈÔ×ÓÊ ÙÐÓ×ÎÈÉ ô× Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÉÍÏ× ÍÖ ÈÔ×ÓÊ ÙÐÓ×ÎÈÉ ÓÎ öÐÍÊÓØÛ ÛÊ× ÈÔ×
ùÓÈà ÍÖ ø×ÐÊÛà ú×ÛÙÔ ìÍÐÓÙ× ÛÎØ öÓÊ×ÖÓÕÔÈ×Êɽ ÛÎØ ÈÔ× ùÓÈà ÍÖ éÇÎÊÓÉ× ìÍÐÓÙ× íÖÖÓÙ×Êɽ ê×ÈÓÊ×Ï×ÎÈ éÃÉÈ×Ï
ïÊ õÛÖÖÍÕÐÓÍ Ê×ÌÍÊÈ×Ø ÈÔ× ïÓØùÛÌ ÷ËÇÓÈà óÎØ×Ä ÉÈÊÛÈ×Õà É××ÑÉ ÓÎÆ×ÉÈÏ×ÎÈ Ê×ÉÇÐÈÉ ÈÔÛÈ ÙÍÊÊ×ÉÌÍÎØ ÈÍ ÈÔ×
ÓÎÆ×ÉÈÏ×ÎÈ Ì×ÊÖÍÊÏÛÎÙ× ÍÖ ÈÔ× éï ïÓØùÛÌ
óÎØ×Ä Úà ÓÎÆ×ÉÈÓÎÕ ÓÎ ÈÔ×
ÌÇÚÐÓÙ ÈÊÛØ×Ø ÉÈÍÙÑÉ ÈÔÛÈ
½
ÙÍÏÌÊÓÉ× ÈÔ× óÎØ×Ä ô× ×ÄÌÐÛÓÎ×Ø ÓÎ Ø×ÈÛÓÐ ÈÔ× ÓÎÆ×ÉÈÏ×ÎÈ ÌÔÓÐÍÉÍÌÔà ÍÖ ÈÔ× ÖÓÊÏ ô× Ê×ÆÓ×Å×Ø ÈÔ×
Ã×ÛÊ Ã×ÛÊ ÛÎØ Ã×ÛÊ Ì×ÊÖÍÊÏÛÎÙ× ô× ØÓÉÙÇÉÉ×Ø ÈÔ× ÛØÆÛÎÈÛÕ×É ÍÖ ÌÛÉÉÓÆ× ÓÎÆ×ÉÈÏ×ÎÈÉ
ïÊ í½ê×ÓÐÐà Ê×ÌÍÊÈ×Ø ÈÔÛÈ ÈÔ× Ö×× ÓÉ
ÚÛÉÓÉ ÌÍÓÎÈÉ ÖÍÊ Û É×ÌÛÊÛÈ× ÛÙÙÍÇÎÈ ÅÓÈÔ Û ÏÓÎÓÏÇÏ ÍÖ ÏÓÐÐÓÍÎ
ô× Ê×ÉÌÍÎØ×Ø ÈÍ ÆÛÊÓÍÇÉ ËÇ×ÉÈÓÍÎÉ Úà ÈÔ× èÊÇÉÈ××É
ïÊ éÅÛÎÉÍÎ Ê×ÙÛÌÌ×Ø ÈÔ× ÌÊ×É×ÎÈÛÈÓÍÎÉ èÔ× èÊÇÉÈ××É ØÓÉÙÇÉÉ×Ø ÈÔ× ÌÊ×É×ÎÈÛÈÓÍÎÉ ÓÎ Ø×ÈÛÓÐ
ïÍÈÓÍÎ
ïÊ úÊ×ÉÉÎ×Ê ÏÍÆ×Ø ÈÍ ÓÎÆ×ÉÈ ÏÓÐÐÓÍÎÉ ÈÍ ïÇÈÇÛÐ ÍÖ ûÏ×ÊÓÙÛ ÏÓÐÐÓÍÎÉ ÈÍ èÊÛØ×ÅÓÎØÉ ÛÎØ ÏÓÐÐÓÍÎÉ ÈÍ
ûÈÐÛÎÈÛ ùÛÌÓÈÛÐ ïÛÎÛÕ×Ï×ÎÈ ÈÔÊÍÇÕÔ ÈÔ× öÐÍÊÓØÛ ïÇÎÓÙÓÌÛÐ óÎÆ×ÉÈÏ×ÎÈ èÊÇÉÈ ïÉ éÔ×Û É×ÙÍÎØ×Ø ÈÔ×
ÏÍÈÓÍÎ
èÔ× úÍÛÊØ ØÓÉÙÇÉÉ×Ø ÈÔ× ÏÍÈÓÍÎ ïÊ éÅÛÎÉÍÎ ÎÍÈ×Ø ÈÔÛÈ ÓÖ ÈÔ× úÍÛÊØ ÙÍÇÐØ ×Æ×ÎÐà ØÓÉÈÊÓÚÇÈ× ÈÔ× ÖÇÎØÉ
Ú×ÈÅ××Î ÈÔ× ÈÔÊ×× ÏÛÎÛÕ×ÊÉ ÓÈ ÅÍÇÐØ Ú× ÈÔ× Ú×ÉÈ ÉÓÈÇÛÈÓÍÎ ô× ÅÓÐÐ ÔÛÆ× ÈÍ ÛÉÑ ïÇÈÇÛÐ ÍÖ ûÏ×ÊÓÙÛ ÓÖ ÈÔ×Ã
ÅÓÐÐ ÛÙÙ×ÌÈ Ð×ÉÉ ÈÔÛÎ ÏÓÐÐÓÍÎ
ïÊ úÊ×ÉÉÎ×Ê ÛÏ×ÎØ×Ø ÔÓÉ ÏÍÈÓÍÎ ÈÍ ÓÎÆ×ÉÈ ÏÓÐÐÓÍÎÉ ÈÍ ïÇÈÇÛÐ ÍÖ ûÏ×ÊÓÙÛ ÏÓÐÐÓÍÎÉ ÈÍ èÊÛØ×ÅÓÎØÉ ÛÎØ
ÏÓÐÐÓÍÎÉ ÈÍ ûÈÐÛÎÈÛ ùÛÌÓÈÛÐ ïÛÎÛÕ×Ï×ÎÈ ÈÔÊÍÇÕÔ ÈÔ× öÐÍÊÓØÛ ïÇÎÓÙÓÌÛÐ óÎÆ×ÉÈÏ×ÎÈ èÊÇÉÈ ïÉ éÔ×Û
É×ÙÍÎØ×Ø ÈÔ× ÏÍÈÓÍÎ ÈÔÛÈ ÇÎÛÎÓÏÍÇÉÐà ÌÛÉÉ×Ø
ïÉ úÍÎÎÓ ò×ÎÉ×Î ÅÓÐÐ ÅÍÊÑ ÅÓÈÔ ÈÔ× ÏÛÎÛÕ×ÊÉ ÍÎ ÈÔ× ÛÕÊ××Ï×ÎÈÉ
ä ûøòíçêîï÷îè
èÔ×Ê× Ú×ÓÎÕ ÎÍ ÍÈÔ×Ê ÚÇÉÓÎ×ÉÉ ÛÎØ ÈÔ× Î×ÄÈ Ï××ÈÓÎÕ ÔÛÆÓÎÕ Ú××Î ÌÊ×ÆÓÍÇÉÐà ÉÙÔ×ØÇÐ×Ø ÖÍÊ ïÍÎØÛÃ
îÍÆ×ÏÚ×Ê
Ï××ÈÓÎÕ ÛÈ
ÌÏ
ï××ÈÓÎÕ ïÓÎÇÈ×É
õ×Î×ÊÛÐ ÷ÏÌÐÍÃ××ɽ ì×ÎÉÓÍÎ öÇÎØ
úÍÃÎÈÍÎ ú×ÛÙÔ öÐÍÊÓØÛ é×ÌÈ×ÏÚ×Ê
ïóîçè÷é ûììêíæ÷ø îÍÆ×ÏÚ×Ê
ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ
òÍÉ× êÍØÊÓÕÇ× ùÔÛÓÊ
úÍÃÎÈÍÎ ú×ÛÙÔ õ×Î×ÊÛÐ ÷ÏÌÐÍÃ××ɽ ì×ÎÉÓÍÎ
úÍÛÊØ
ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ
øÓÄÓ× ïÛÊÈÓÎ× ûØÏÓÎÓÉÈÊÛÈÍÊ
úÍÃÎÈÍÎ ú×ÛÙÔ õ×Î×ÊÛÐ ÷ÏÌÐÍÃ××ɽ ì×ÎÉÓÍÎ
úÍÛÊØ
Board & Service Providers
I -J,
Board and Plan
Administration
Administration
of
Meetings
Service Providers:
Communication
& Coordination
Member
Communication
Processing Benefits
Records and Data
Administration
Overview of Plan Administration
Board and Plan Administration
Administration of Meetings:
♦ Meetings
Scheduling Meetings
Meeting Materials and Meeting Packets
Additional Copies of Meeting Materials
Additional Copies of Agendas
♦ Agenda Items
Meeting Time, Date, Location
Facility or Administrator Contact Information
Notice Requirements for Public Meeting
Order of Items on Agenda
ADA (Americans Disability Act) Notice
♦ Minutes
Listing of Trustees, Service Providers, Visitors
Summarize Discussion
Motions: First, Second, Vote
Trustee organization:
♦ Board Contact List
Name, Address, Phone, Fax, Email
Trustee Type and Term Expiration
♦ Trustee Materials
4 Contact Lists (Trustees and Service Providers)
Summary of Plan Provisions
Summary Plan Description
LocalOrdinance(s)
Internal Controls and Procedures
4 Board Policies
Calendar or Timeline
♦ Pending Matter List
Trustee Election Procedures:
♦ Election Procedure
Notice of Election, Nominations
Ballot Procedures
o Privacy of Ballot
o Prevention of Fraud
♦ Board Appointments
♦ Fifth Trustee
Trustee Travel and Conference Arrangements and Reimbursements:
♦ Travel Policy
♦ Reservations and Arrangements
♦ Documentation
♦ Reimbursements
Trustee and Board Considerations:
♦ Sunshine Laws
♦ Gifting and Ethics Concerns
♦ Annual Financial Disclosure
♦ Voting Conflicts
♦ Fiduciary Liability Insurance
Plan and Policy Changes:
♦ Ordinance Change
Cost Estimates, Negotiation, Drafting of Ordinance
Scheduled First and Second Readings
Impact Statement
Filing Ordinance and Impact Statement to Division
♦ Investment Policy Change
Action by Board
4 Implementation 30 Days After Filing with Municipality
Professional Organization Memberships:
♦ FPPTA (Florida Public Pension Trustee Association)
♦ NCPERS (National Conference Public Employee Retirement Systems)
♦ IFEBP (International Foundation Employee Benefit Plans)
Communication and Coordination
Review Of Statements And Documents:
♦ Correspondence, Statements And Documents Received From:
Money Managers
Performance Monitors
Attorneys
Actuaries
Accountants
4 Others
♦ Bank Statements
♦ Custodial Statements
2
Coordination of Service Providers:
♦ Projects and Pending Issues
♦ Coordination for Meetings as Necessary
♦ Investment Changes
Funding New Managers
Replace Existing Managers
4 Rebalance Assets
♦ Requests For Proposals For Service Providers
Means of Coin ununication:
♦
Conversation or Meeting
♦
Phone
♦
Email
♦
Fax
♦
Regular Mail
♦
Certified Mail
♦
Overnight Mail
♦
Website
Processing of Benefits
Forms and Applications:
♦ Active
Members
Beneficiary Form
Buyback Application
Disability Application
DROP Agreement
Refund of Contributions
Retirement Application
Retirement Checklist
4
Other Plan Specific Member Elections
♦ Retired
Members
Authorization for Deductions
4
Benefit Election Form
4
Confidentiality Request
Direct Deposit
Retiree Premium Election (PPA)
Special Tax Notice
Tax Withholding (W4 -P)
Withdrawal (DROP or Other Distributions)
3
Plait Provisions:
♦ Written Procedures
Interpretation of Ordinance
Calculation Procedures
♦ Documentation
Benefit Calculations and Estimates
Communication with Members
Benefit Calculations:
♦ Benefit Estimates
♦ Final Calculations
♦ Web Access
Procedures for Processing and Approval:
♦ Communication with Members
♦ Calculation Process and Review
♦ Certification of Benefits by Actuary
♦ Approval of Benefits by Board
♦ Claims and Appeals
Overview of Records and Data
Physical and Electronic Records
Physical Records:
♦ Incoming Correspondence, Documents, and Records
♦ Organization of Physical Files
Organization of Current Records
o Board Files and Service Providers
o Member Files
Archived Files and Records
♦ Current Issues and Pending Matters
Electronic Records:
♦ Correspondence and Documents
♦ Data and Member Records
4 Data or File Formats
Security of Electronic Media
♦ Computer Programs or Calculation Systems
♦ File Organization and Retrieval
♦ Data Organization and Retrieval
♦ Security and Backup of Systems
4
Public Records Custodian:
♦ Compliance With The Public Records Act
♦ Access to Plan Records and Information
♦ Records Retention Schedule
♦ Privacy Issues
Conversion to Paperless:
♦ Proper Identification and Retrieval of Imaged Documents
♦ Maintenance of Media
♦ Future Retrieval of Imaged Documents
Plan Financials
Interim Financial Statements:
♦ Reconciliation Of Accounts
♦ Internal Controls and Procedures
♦ Maintenance of General Ledger
♦ Financial Statements
Formatting and Presentation
Auditing and Accounting Standards
Accounts Payable:
♦ Review of Invoices
♦ Approval of Expenses by Board
Signed Warrant
Specific Reference to Minutes
♦ Raise Cash
♦ Payment of Invoices
Payment by Custodian
Payment from Local Checking Account
o Controls and Procedures to Issue Checks
o Signatures on Checks
Employer Contributions:
♦ Contribution Amounts
♦ Monitor Deposits at Least Quarterly
Annual Report Preparation:
♦ Preparation by Auditor
♦ Preparation by Administrator
5
Data Recordkeeping
Systems to Receive and Record Contributions:
♦ Timely Deposit of Member Contributions
♦ Contribution and Member Data
Data Format Issues
o Integrity of Data
o Continuity of Data
o Data Controls and Procedures
¢ Transmission of Data
Reconciliation of Data to Deposits
Record Keeping Systems:
♦ Maintain Data For Benefit Eligibility Of Participants
♦ Maintain Participant Service, Payroll, and Contribution Data
♦ Data for Annual Report and Actuarial Valuation
♦ Benefit Calculation System
Benefit Estimates and Calculations
Review and Certification Procedures
Online Calculations and Access
Systems to Record Payments and Distributions:
♦ Accounts Payable
♦ Periodic Benefit Payments
♦ Non -Periodic Distributions
♦ Changes to Payments
New Benefits
Deceased Members and Beneficiaries
Supplemental Distributions
Scheduled Changes
Tracking Eligibility
Share and DROP Accounts:
♦ Contributions and Additions
♦ Frequency of Statements or Accounting Period
♦ Calculation of Earnings
O Single or Multiple Credit Rates
O Plan Return and Expenses
Timing of Statements
♦ Distributions
4 Periodic or Recurring Distributions
4 Non -Periodic Distributions and Requirements
Holdback on Distributions
Tax Reporting
♦ Online Access
104
Payment of Benefits
Systems to Process Distributions:
♦ Issue of Checks
4 Maintenance of Local Checking Account
Cash Availability
Signatures on Checks
o Consecutively Numbered Drafts
o Signed by Chair and Secretary
o Stated Purpose for Draft
Benefit Payment Controls and Procedures
♦ Benefit Payments
Check
4 Direct Deposit (EFT)
Authorized Deductions from Checks
♦ Reports and Statements
♦ Posting to General Ledger
♦ Tax Deposits, 1099Rs, and IRS Reporting
Death Searches
♦ Part of Process for Benefit Payments
♦ Frequency
♦ Available Methods
Affidavits
Electronic Search
7
Agenda Sample: Municipal Police Pension Plan
MEETING OF FRIDAY, AUGUST 27, 2007
LOCATION: Conference Room
Street Address Meeting Time, Date,
City, State Zip Code Location, and Contact
(561) 624-3277 Information Clearly Marked
TIME: 8:15 AM
AGENDA
1. Call Meeting to Order
2. Approval of Minutes
a. Meeting Held June 22, 2007
b. Workshop of July 20, 2007
3. Reporting of Plan Financials
a. Statement of Income and Expense
b. Disbursements: Warrant Dated 08/27/07
4. Benefit Applications & Approvals
5. Investment Manager Reports
a. LG, NWQ
b. JW, Davis Hamilton Jackson
6. Investment Consultant Report
a. Quarterly Investment Report
b. Asset Allocation
c. Alternative Strategies
7. Attorney Report:
a. Summary Plan Description Update
b. Gift Reporting Requirements
S. Administrative Report
9. Adjourn
Required Approval
Items for Each Agenda
Visitors/ Service Providers
With Travel Arrangements
Appear Next on Agenda
Regular Monthly Meeting Schedule,
REGULAR MONTHLY MEETING SCHEDULE: Time and Date for Next Meeting
Third Friday of Every Month (8:15 AM) 1 11
NEXT REGULAR MONTHLY MEETING DATE:
Friday, September 21, 2007 at 8:15 AM Notice Regarding Appeals,
Required Accommodations for
Americans With Disabilities Act
MUNICPAL FIREFIGHTERS' PENSION FUND
SAMPLE MINUTES OF MEETING HELD Board, Meeting Date
September 6, 2007 Clenrly Identified
Chairperson DM called the meeting to order at 1:30 PM in the Third Floor Conference Room at Station 1,
Street Address, City, Florida. Those persons present were:
Meeting Start Time,
TRUSTEES OTHERS Location Noted in Minutes
]i
DM, Chairperson BJ, Attorney
TS, Secretary Scott Baur & Jeff Vaughn, Administrator (PRC)
RS BG, Investment Manager (Oppenheim
MY Investment Consultant Trustees and Visitors/ Service
APPROVAL OF MINUTES I
Providers in Attendance
MY made a motion to approve the Minutes of August 2, 2007. RS seconded the motion, passed by
the Trustees 4-0.
Motions highlighted, easily
REPORTING OF PLAN FINANCIALS identifiable. Trustee making
motion and second, vote.
The Trustees asked about the status of theap 1. — -1 - ---- .--,ipt of the premium tax
monies for 2006. The Board received and filed the unaudited financial statement through June 2007
TS made a motion to approve the warrant for disbursements dated September 6, 2007. RS
oved by the Trustees 4-0.
Format Follows Items
Appearing on Agenda
ATTORNEY REPORT
BJ presented the retainer agreement for Scott & Scott to provide portfolio monitoring services, along with
a letter of direction to Salem Trust to allow electronic access to information on the holdings in the
investment portolio.
Brief Summary
TS made a motion to execute the retainer agreement with Scott & Scott of Issues tion,
approved by the Trustees 4-0.
TS made a motion to allow Scott & Scott to have electronic access to the portfolio holdings at the
custodian. RS seconded the motion, approved by the Trustees 4-0.
i
ADMINISTRATOR REPORT
SB stated that notices had gone out for vested members to make their annual election on how earnings get
credited to Share or DROP Accounts, and for retired members to take optional withdrawals from their
Share or DROP Accounts ...
Next Meeting Date,
There being no further business and the Time Meetine Ends cheduled for October 4, 2007, the
meeting was adjourned at 2:47 P.
Signature Line]
TS, Secretary
Minutes Sample: Page 1 of 1
MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND
Sample Pending Matters as of January 5, 2007
Next Meeting: Friday, March 23, 2007 at 8:30 AM (L hearing)
Completed
Item
Draft minutes from meeting.
Draft agenda for next meeting. Discussion on guaranteed fixed option, JL
Hearing.
to Trustees, R and others to attend meeting with a copy of the
Task Check List s. Need to send minutes to the City Clerk too. Send in mail one
Includes Completion vance with financial statements, disbursement list and tracking
Date For Pending Items
oda for posting as a public meeting. Agenda Only, and not draft
minutes. Fax 954-480-4323.
1-12 MA Process disbursements from meeting. Task Check List of
Pending Items For Next
lidfinEancial
Fax agenda to stations. Meeting of Board
Warrant for next meeting. (Make sur
statements).
1-12 MA
Send signed minutes to City after approval. Fax 954-480-4323
See if application for DROP is changed to include provision that if do not
comply with 90 days limit, understand that 10 -year certain and life is the
default optional form.
E-mailed R on 1-12 to confirm that he will correspond with JL regarding
minimum one month notice for hearing and advising him of the next meeting
date. R also supposed to get court reporter.
Board voted at November meeting for AR as investment manager. R and
investment consultant working out contract and negotiating fee.
No action
Advised SSgA of May meeting by e-mail to CM on 1-8-07. Need to confirm
before mtg.
meeting date after March meeting.
Post approved minutes to web site.
Update tracking chart of benefit approvals for meeting. Redact SSN from
tracking sheet
Send out signed minutes to retirees.
1-8 MA e-mail
Advise SG of next meeting date for audit.
1-8 MA e-mail
Tell J of next meeting date.
• Board authorized payment of standard invoices (attorney, manager, monitor and
administrator) when received.
• Board decided that when a member retires, administrator can set them up to receive the
normal form amount (10 year certain) until member selects an o tion.
• Board approved standing disbursement for sick Trustees or 3`d Summary of Relevant
• Board authorized payment of up to two (2) subscriptions per Policies of Board Related
the Wall Street Journal. to Pending Items
• Travel expense: 6/11/19 (36 a day) effective October 1, 2006.
• Administrator has 30 days from DROP or retirement date to get salary into to actuary.
Actuary has 30 days to certify calculation. Member has 90 days from date of letter. At 60
days, attorney sends a notice to member. Applications copied to actuary when submitted.
Sample Pending Matters Task List: Page 1 of l
Firefighters' Municipal Retirement System: Calculation Procedure Sample
(Effective 10/01/07)
Average Final Compensation: Average final compensation includes the highest 2 consecutive years of
compensation in the last 5 years of credited service. The average final compensation does not include
payments to a member for workers compensation or long-term disability, except these breaks in service
shall not interrupt the computation of the highest 2 consecutive years. Compensation includes base salary
or wages; longevity pay; cost -of -living allowances; salary or wages while absent from work on account of
vacation, holiday, or illness; overtime pay; special assignment overtime pay; shift premiums; and educational
incentive payments. Compensation shall not include lump sum payments for accumulated leave paid
subsequent to the actual date of a member's retirement.
Credited Service: Credit is given for years and months, rounded to the nearest month. Credited
service is calculated from the entry date, excepting any adjustments for breaks in service of less than 1 year.
Buyback: Members terminated for less than one year can restore prior credited service
following a refund of contributions, by repaying the refunded amount with interest from the date of
withdrawal within one year from the date of reemployment. Members can purchase up to five years of
military or prior qualifying fire service credit by paying the full actuarial cost for the benefit increase, including
the cost of the calculation by the actuary, by lump -sum, transfer, rollover, or installment payments deducted
from payroll over no more than 5 years. Purchased service counts for all purposes except vesting.
Vesting: A participant becomes vested following completion of 10 years service.
Normal Retirement: Any age with 20 years service, age 50 with 10 years service, or age + service > 65
(Rule of 65) for vested plan participants.
Early Retirement: No provisions for early retirement.
Vested Deferred: After completion 10 years service, the accrued benefit commences at the normal
retirement date.
Benefit Formula: Credit 3.5% per year for service up to 25 years, with 2% per year of service for each
year in excess of 25 years. (The 2% per year of service for each year in excess of 25 years is pending. The
current ordinance has a maximum benefit of 87.5%.)
Transfer of Service: Service in the Town is combined for eligibility and vesting, although not for pension
calculations. Each plan will pay the benefit to the member accrued under that system at the normal
retirement date for that plan.
Duty Disability: Benefit computed as if service continued to earliest normal retirement age based on
current final average compensation, with a minimum benefit of 60% of average final compensation. Disability
benefit payments cannot exceed the difference between the average final compensation and other earned
income until the member reaches normal retirement age.
Non -duty Disability: Accrued benefit available after 10 years of service.
Duty Death: Each surviving child under age 18 receives 25% of average final compensation or
an equal share of 75% of average final compensation when the deceased member has 4 or more eligible
children. The surviving spouse receives the difference, if any, between amounts paid to children and 75% of
the average final compensation. The beneficiaries receive the full benefit payable until the 10`h anniversary
following commencement of benefit payments, after which the total benefit payable reduces to 75%.
Non -duty Death: After completion 10 years of service, the accrued benefit is payable on the same
terms as duty death benefit. The benefit to a surviving spouse does not commence until the date that the
member would otherwise have become eligible for normal retirement.
Interest on Contributions: 5.5% annual rate by Board policy.
Calculation Procedure Sample: Page 1 of 1
Account Balances: Balances are updated bi-weekly based on payroll data provided by the Town.
Participants contribute 6.82% of payroll.
Refunds: A non -vested participant receives a refund of contributions upon termination with interest.
Pension Payment Day: Retired members receive benefit payments at the end of each month in
arrears, with all deductions taken in advance for the next month.
Commencement: Benefit payments commence the day following retirement. Participants receive all
benefit payments pro -rated to the day at retirement, exit from the DROP, disability, and death.
Optional Forms Payment: The normal form of benefit payment is 10 years certain and life. Each
surviving child under age 18 receives 25% of the benefit payable or an equal share of 75% of the benefit
when the deceased member has 4 or more eligible children. Surviving children receive a 25% share up to
age 25 if no spousal benefits are payable. The surviving spouse receives the difference, if any, between
amounts paid to the children and 75% of the monthly benefit if married at death. In any case, the total
benefit payable to the beneficiaries remains at 100% of the monthly benefit to the retired member for 10
years from the date of retirement. Other optional forms of benefit payments are calculated as follows:
100% Survivor Pension
The amount of reduced pension is a percentage of the amount of pension under the standard form of payment
(SL). The percentage is 80 percent if the retirant and designated beneficiary are the same age on their last
birthdays. The 80 percent is reduced by 0.5 percent for each year the age of the retirant exceeds the age of the
designated beneficiary, to a minimum of 60 percent for differences in age of 40 or more years. The 80 percent
is increased by 0.5 percent for each year the age of the designated beneficiary exceeds the age of the retired
member, to a maximum of 90 percent for differences in age of 20 or more years.
(50% Survivor Pension)
The amount of reduced pension is a percentage of the amount of pension under the standard form of payment.
The latter percentage is 90 percent if the retirant and designated beneficiary are the same age at their last
birthdays. The 90 percent is reduced by 0.25 percent for each year the age of the retirant exceeds the age of
the designated beneficiary, to a minimum of 80 percent for differences in age of 40 or more years. The 90
percent is increased by 0.25 percent for each year the age of the designated beneficiary exceeds the age of the
retired member, to a maximum of 95 percent for differences in age of 20 or more years.
Other optional forms of benefit payment include Straight Life, Joint and 66-2/3% Survivor, and Social Security
offset at age 65 determined as actuarial equivalents..
Supplemental Distributions: A supplemental distribution is payable on May 1 depending on the net
investment return for the plan for the preceding fiscal year and the cumulative actuarial experience since
September 30, 2001. Earnings from investments generated by net returns between 8% and 10% are
distributed to eligible persons in equal shares, pro -rated in the year of retirement or death and reduced in
proportion to beneficiaries.
DROP Plan: Members can DROP for a maximum of 5 years but not beyond 120 months from the
normal retirement date. The member must make the election within 84 months after completion of 20 years
of service. Some participants retired prior to January 1, 2003, may have chosen to leave their DROP
contributions on deposit with the plan with earnings credited at the annual rate of 7.5% compounded
monthly. The plan will remit DROP contributions to a third party for investment in self-directed accounts for
all participants retired after January 1, 2003. Members with DROP accounts on deposit with the plan must
take a full distribution of their accounts upon separation from service.
Cola's: Members retired prior to 10/1/1990 receive an annual increase of 1% computed on
the base benefit each October 1, while members retired after 9/30/1990 receive a 2% cola compounded
annually at each anniversary starting after 3 years from the date of retirement.
Share Accounts: Firefighters have share accounts with annual contributions of Chapter 175 premium
tax receipts in excess of the 1997 frozen amount. Participants invest the Share Account assets in self-
directed accounts provided by a third party.
Calculation Procedure Sample: Page 2 of 2
Sample Internal Controls & Procedures
Administrative Unit
Assigned Personnel
Administrative Manager
Primary Administrator
Administrative Assistant
Payment Manager
Manager: DM
Assistant: EB
Accounting Manager
Senior Accountant: ES
Accounting Assistant: BL
Data Administration
Data Manager: BG
Systems Manager: SG
Programmer: ES
Actuary
Actuarial Firm
Town
Municipality
Contributions (Employer)
Actuary The Actuary determines the required employer contributions based on the
liabilities identified in the annual valuation.
Accounting Manager The accounting manager receives and reconciles the amounts deposited to
the Retirement System by the Town.
Accounting Assistant The accounting assistant posts the entries to the general ledger and
updates the unaudited monthly financial statement for the plan.
Related Documentation The actuarial valuation identifies the required contributions annually. The
local checking account statements reflect the dates and amounts for the
deposits.
Related Reports The accounting manager completes and records the reconciliation of the
checking account. The general ledger reflects the employer deposits to
the plan.
Contributions (State): Police and Fire Plans Only
Division of Retirement The Division of Retirement reports the amount of premium tax receipts
available for distribution each year and approves the disbursement of
receipts to the plan. The comptroller disburses the funds to the Town,
which must then transfer the funds to the plan within three business days
of receipt.
Accounting Manager The accounting manager receives and reconciles the amounts deposited to
the Retirement System by the Town.
Accounting Assistant The accounting assistant posts the entries to the general ledger and
updates the unaudited monthly financial statement for the plan.
Related Documentation The Division of Retirement authorizes the distribution of funds on
approval of the Annual Report. The local checking account statements
reflect the dates and amounts for the deposits.
Related Reports The accounting manager competes and records the reconciliation of the
checking account. The general ledger reflects the premium tax deposits to
the plan.
Sample Internal Controls and Procedures: Page I of I
Contributions (Emplovee)
Town
The Town administers the payroll for the active members of the plan.
The Town reports employee contributions bi-weekly in two data files, one
containing a member record and the other containing cumulative payroll
and contribution data for the fiscal year.
Data Manager
The data manager reviews the data files and posts the updated
contributions to the systems maintained by the administrator. The data
manager also checks the data files for internal coherence: the member
record contains fiscal year totals of employee contributions that must
match the contribution detail for that member. The programmer has
separate responsibility for the coding and maintenance of the data and
calculation systems, under the direction of the primary administrator.
Accounting Manager
The accounting manager receives and reconciles the employee
contributions deposited to the Retirement System by the Town.
Accounting Assistant
The accounting assistant posts the entries to the general ledger and
updates the unaudited monthly financial statement for the plan.
Related Documentation
The data files, cumulative for the fiscal year, become the basis for all
fiscal year reports generated by the systems. The local checking account
statements reflect the dates and amounts for each deposit.
Related Reports
The fiscal year end reports for active members compile the data received
for the fiscal year from the Town. Special reports can be generated to
allow further testing of contributions associated with a particular date or
member.
Assets Held by Custodian
Investment Manager The Boards employ investment managers with discretionary control over
the investment of assets on behalf of the plan. The investment managers
initiate all sales and purchases of securities within the investment account,
while the custodian records and settles the trades.
Custodian The custodian values the assets for the plan and records and settles trades
initiated by the investment managers.
Related Reports The monthly and annual custodial statements reflect all transactions
through the custodian. The custodial statements include a balance sheet
to record the value of the assets by account at the end of each period,
along with a composite statement that reflects all of the transactions and
assets for the plan at the end of the period. The general ledger reflects
and consolidates all of the plan assets monthly at market.
AccPt Tramferc
Primary Administrator The primary administrator provides instructions to initiate all transfers of
assets between managers or accounts held by the plan. Tile administrator
has discretionary control to transfer assets only between the local
checking account and the custodial account, either to invest cash or raise
cash as needed. All other transfers require the direction of the Board.
Verification The Town independently acts as a verifier on all transfers of assets,
including movement of cash between the local checking account and the
custodial accounts.
Related Documentation The administrator provides written instruction to authorize transfers of
assets. The local checking account statements and the custodial
statements reflect all such transactions.
Sample Internal Controls and Procedures: Page 2 of 2
Payment of Benefits & Refunds
Town
The Town provides all data for determination and payment of benefits,
reported bi-weekly for active members of the plan.
Administrator
The administrator performs benefit calculations at retirement or
eligibility. The member of the plan receives a copy of all information
used to determine benefits payable under the plan. The administrator
communicates the payment of benefits to the payment manager.
Actuary
The actuary reviews and certifies benefit calculations.
Payment Manager
The payment manager and the payment assistant reconcile and pay
benefits and distributions due to members of the plan.
Accounting Manager
The accounting manager independently reconciles the accounts monthly.
Accounting Assistant
The accounting assistant posts the entries to the general ledger and
updates the unaudited monthly financial statement for the plan.
Board
The Board of Trustees reviews and approves the payment of all benefits
from the plan.
Related Documentation
The member files an application with the plan for benefits. The
administrator generates a detailed calculation with the corresponding
backup. The actuary provides certification of the benefit. The payment
manager generates reports to record each payment, as well as fiscal year
and annual summary reports.
Related Reports
The general ledger reflects all benefit payments, summarized on the
monthly unaudited financial statement. The Board signs a warrant upon
approval of benefits.
Payment of Invoices
Administrator The administrator reviews invoices for compliance with the agreements
on behalf of the Board of Trustees. The administrator approves items for
payment by the payment manager.
Payment Manager The payment manager and the payment assistant pay invoices and other
obligations of the plan. The payments post to the general ledger.
Accounting Manager The accounting manager independently reconciles the accounts monthly.
Accounting Assistant The accounting assistant posts the entries to the general ledger and
updates the unaudited monthly financial statement for the plan.
Board The Board of Trustees reviews and approves the payment of all invoices
from the plan.
Related Documentation The administrator maintains copies of invoices along with the
corresponding payments.
Related Reports The general ledger reflects all payments for invoices or other plan
obligations, summarized on the monthly unaudited financial statement.
The Board signs a warrant upon approval of the payments.
Sample Internal Controls and Procedures: Page 3 of 3
Participant Data
Town
The Town administers the payroll for the active members of the plan.
The Town reports employee contributions bi-weekly in two data files, one
containing a member record and the other containing cumulative payroll
and contribution data for the fiscal year.
Data Manager
The data manager posts the files to the systems maintained by the
administrator. Certain data fields refresh with each posting to reflect
updated information provided by the Town, while other fields containing
certain member information to not change. The programmer has separate
responsibility for the coding and maintenance of the data and calculation
systems, under the direction of the primary administrator.
Administrator
The administrator has the responsibility to update the active member
records for changes that affect reporting or payment of benefits.
Payment Manager
The payment manager maintains the data records for the inactive
members of the plan.
Actuary
The actuary annually completes an independent reconciliation of the
member records based on the data provided by the administrator.
Related Reports
The administrator generates reports at the end of each fiscal year
summarizing the data for active members of the plan. The payment
manager generates reports at the end of each fiscal year summarizing the
data for the inactive members of the plan, in addition to the regular
reports associated with the payment of benefits.
Benefit Obligations
Primary Administrator The primary administrator reports the data each year to the actuary for the
active and the inactive members of the plan.
Actuary The actuary independently reconciles the data received from the
administrator. The actuary uses the data, along with the information on
the plan assets, to value and report the liabilities of the plan. The actuary
determines the contributions required by the employer based on the
liabilities.
Related Documentation The reports generated by the administrator and the payment manager
provide the data required by the actuary for the annual valuation. The
reports also become the required attachments for the Annual Reports
required by the Division of Retirement.
Related Reports The annual actuarial valuation reports the liabilities of the plan.
Cash Receipts and Disbursements
Staff Staff receives and processes incoming and outgoing mail each day related
to the receipt or disbursement of funds.
Payment Manager The payment manager records and deposits any cash receipts to the plan.
Accounting Manager The accounting manager records and reconciles any receipt of funds by
wire. The accounting manager also reconciles accounts and deposits by
the payment manager.
Accounting Assistant The accounting assistant posts the entries to the general ledger and
updates the unaudited monthly financial statement for the plan.
Related Documentation The plan retains copies of receipts other than incoming wires. The local
checking account statement reflects the receipt of any incoming wires.
Related Reports The general ledger reflects all cash receipts and disbursements,
summarized on the monthly unaudited financial statement.
Sample Internal Controls and Procedures: Page 4 of 4
Financial Reporting
Accounting Manager
Accounting Assistant
Auditor
Board
Related Documentation
Related Reports
The accounting manager reconciles transactions and accounts for the plan.
Investment manager accounts are reported monthly at market value.
The accounting assistant posts the entries to the general ledger and
updates the unaudited monthly financial statement for the plan.
The auditor provides an opinion letter annually based on the consolidated
financial statement maintained by the administrator on behalf of the plan.
The Board receives and files the monthly unaudited financial statement.
The Trustees approve the audited financial statement.
The general ledger records all financial transactions, asset transfers, and
changes in asset values.
The monthly unaudited financial statement provides a summary of the
general ledger at market reporting on a cash basis. The auditor provides
the financial statement and opinion for the plan following the close of
each fiscal year.
Sample Internal Controls and Procedures: Page 5 of 5
CITY OF BOYNTON BEACH PENSION PLAN FOR GENERAL EMPLOYEES
ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2010
ANNUAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION FOR THE
PLAN YEAR ENDING SEPTEMBER 30, 2012
--
RS Gabriel Roeder Smith & Company One East Broward Blvd. 954.52 7. 1616 phone
l;nnsultants & Actuaries Suite 505 954.525.0083 fax
Ft. Lauderdale, FL 33301-1827 w ww.gabrielroeder.com
February 4, 2011
Board of Trustees
City of Boynton Beach Pension Plan
for General Employees
Boynton Beach, Florida
Dear Board Members:
We are pleased to present our October 1, 2010 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 and the Plan's administrator. 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.
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.
As indicated below, the undersigned is a Member of the American Academy of Actuaries (MAAA) and
meets the Qualification Standards of the Academy of Actuaries to render the actuarial opinion herein.
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
J t hen Palm uist ASA AAA FCA
� q Duane Howison, FSA
Enrolled Actuary No. 08-1560 Enrolled Actuary No. 08-6169
TABLE OF CONTENTS
Section Title Page
A Discussion of Valuation Results 1
B Valuation Results
1.
Participant Data
4
2.
Annual Required Contribution
5
3.
Actuarial Value of Benefits and Assets
6
4.
Calculation of Employer Normal Costs
7
5.
Liquidation of the Unfunded Actuarial
3. GASB No. 27
33
Accrued Liability
8
6.
Actuarial Gains and Losses
10
7.
Actual Compared to Expected Decrements
14
8.
Cumulative Gains and Losses (13`t' check)
15
9.
Recent History of Valuation Results
10.
Recent History of Required Contributions
17
11.
Actuarial Assumptions and Cost Method
18
12.
Glossary of Terms
22
C Pension Fund Information
1. Summary of Assets
25
2. Summary of Fund's Income and Disbursements
26
3. Actuarial Value of Assets
28
4. Investment Rate of Return
29
D Financial Accounting Information
1. FASB No. 35
30
2. GASB No. 25
31
3. GASB No. 27
33
E Miscellaneous Information
1. Reconciliation of Membership Data
35
2. Age and Service Distribution
36
F Summary of Plan Provisions
38
C
SECTION A
DISCUSSION OF VALUATION RESULTS
GR
DISCUSSION OF VALUATION RESULTS
Comparison of Required Employer Contributions
The required employer contributions developed in this and last year's actuarial valuations are as
follows:
The employer contribution listed above is for the City's fiscal year ending September 30, 2012 and
has been calculated assuming employer contributions are made on a biweekly basis. The actual City
contribution for 2010 was $5,415,919, an amount equal to the required contribution.
Funded Ratio
The funded ratio this year is 76.4% compared to 74.8% last year. The funded ratio is equal to the
actuarial value of assets divided by the actuarial accrued (past service) liability.
Required Contributions in Later Years
It is important to keep in mind that under the asset smoothing method, asset gain and losses are
recognized over five years. As of September 30, 2010 the actuarial value of assets exceeded the market
value by $10,469,046. Once all the losses through September 30, 2010 are fully recognized in the
actuarial asset values, the contribution rate will increase by roughly 3.7% of payroll unless there are
offsetting gains. It is also worth noting that under the funding method, gains and losses are amortized
over 15 years. Over the next five years, amortization credits caused by gains from 1996 to 2000 will
expire and this will cause an additional increase in funding requirements by roughly $1,230,000 by the
end of that period. We recommend combining amortization bases to avoid large fluctuations in the
GRS
For FYE 9/30/12
For FYE 9/30/11
Based On
Based On
10/1/2010
10/1/2009
Increase
Valuation
Valuation
(Decrease)
Required Employer Contribution
$ 5,458,778
$ 4,694,544
$ 764,234
As % of Covered Payroll
20.17 %
18.43 %
1.74
The employer contribution listed above is for the City's fiscal year ending September 30, 2012 and
has been calculated assuming employer contributions are made on a biweekly basis. The actual City
contribution for 2010 was $5,415,919, an amount equal to the required contribution.
Funded Ratio
The funded ratio this year is 76.4% compared to 74.8% last year. The funded ratio is equal to the
actuarial value of assets divided by the actuarial accrued (past service) liability.
Required Contributions in Later Years
It is important to keep in mind that under the asset smoothing method, asset gain and losses are
recognized over five years. As of September 30, 2010 the actuarial value of assets exceeded the market
value by $10,469,046. Once all the losses through September 30, 2010 are fully recognized in the
actuarial asset values, the contribution rate will increase by roughly 3.7% of payroll unless there are
offsetting gains. It is also worth noting that under the funding method, gains and losses are amortized
over 15 years. Over the next five years, amortization credits caused by gains from 1996 to 2000 will
expire and this will cause an additional increase in funding requirements by roughly $1,230,000 by the
end of that period. We recommend combining amortization bases to avoid large fluctuations in the
GRS
amortization payment on the UAL increased.
The remainder of this Report includes detailed actuarial valuation results, financial information,
miscellaneous information and statistics, and a summary of plan provisions.
URS
SECTION B
VALUATION RESULTS
GRS
PARTICIPANT DATA
October 1, 2010
October 1, 2009
ACTIVE MEMBERS
Number
479
510
Covered Annual Payroll
$
26,148,644
$
28,182,460
Average Annual Payroll
$
54,590
$
55,260
Average Age
46.8
46.7
Average Past Service
10.5
9.7
Average Age at Hire
36.4
37.0
RETIREES & BENEFICIARIES & DROP
Number
273
261
Annual Benefits
$
5,779,818
$
5,349,025
Average Annual Benefit
$
21,171
$
20,494
Average Age
68.9
68.9
DISABILITY RETIREES
Number
2
2
Annual Benefits
$
23,645
$
23,645
Average Annual Benefit
$
11,823
$
11,823
Average Age
67.9
66.9
TERMINATED VESTED MEMBERS
Number
24
22
Annual Benefits
$
315,473
$
299,212
Average Annual Benefit
$
13,145
$
13,601
Average Age
54.3
53.8
GRS
ANNUAL REQUIRED CONTRIBUTION (ARC)
A. Valuation Date
B. ARC to Be Paid During
Fiscal Year Ending
C. Assumed Date of Employer Contrib.
D. Annual Payment to Amortize
Unfunded Actuarial Liability
E. Employer Normal Cost
F. ARC if Paid on the Valuation
Date: D+E
G. ARC Adjusted for Frequency of
Payments
H. ARC as % of Covered Payroll
I. Assumed Rate of Increase in Covered
Payroll to Contribution Year
J. Covered Payroll for Contribution Year
K. ARC for Contribution Year: H x J
L. ARC as % of Covered Payroll in
Contribution Year: K - J
October 1. 2010 1 October 1, 2009
9/30/2012 9/3012011
Biweekly Biweekly
$ 3,129,514 $ 2,867,976
1,942,513 2,130,708
*Estimated payroll for year per City's Finance Department.
rRC
5,072,027 4,998,684
5,274,908 5,194,782
20.17 %1 18.43 %
3.50 % N/A %
27,063,847 25,472,297
5,458,778 4,694,544
20.17 %1 18.43 %
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date
October 1, 2010
October 1, 2009
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits
$ 91,468,576
$ 93,062,628
b. Vesting Benefits
3,875,177
3,951,541
c. Disability Benefits
-
-
d. Preretirement Death Benefits
2,970,814
3,078,403
e. Return of Member Contributions
155,014
236,484
98,469,581
100,329,056
f. Total
2. Inactive Members
a. Service Retirees & Beneficiaries
53,384,364
49,690,382
b. Disability Retirees
234,445
238,424
c. Terminated Vested Members
2,102,095
2,163,739
55,720,904
52,092,545
d. Total
3. Total for All Members
154,190,485
152,421,601
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25
125,794,845
121,689,666
D. Actuarial Value of Accumulated Plan
Benefits per FASB No. 35
106,514,955
99,634,298
E. Plan Assets
1. Market Value
85,659,035
77,752,019
2. Actuarial Value
96,128,081
90,974,549
F. Unfunded Actuarial Accrued Liability
29,666,764
30,715,117
G. Actuarial Present Value of Projected
Covered Payroll
208,184,080
224,399,335
H. Actuarial Present Value of Projected
Member Contributions
14,572,886
15,707,954
CALCULATION OF EMPLOYER NORMAL COST
A. Valuation Date October 1, 2010 October 1. 2009
B. Normal Cost for
1. Service Retirement Benefits
IS 3,110,475
$ 3,381,460
2. Vesting Benefits
I 277,776
290,958
3. Disability Benefits
4. Preretirement Death Benefits
129,116
140,866
5. Return of Member Contributions
124,905
136,775
6. Total for Future Benefits
3,642,272
3,950,059
7. Assumed Amount for Administrative
Expenses
130,646
i
153,421
8. Total Normal Cost
3,772,918
4,103,480
C. Expected Member Contribution
? 1,830,405
1,972,772
D. Employer Normal Cost: B8 -C
y f
1,942,513
2,130,708
E. Employer Normal Cost as % of
E �
Covered Payroll
7.43 %
7.56 %
CID C
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY
Original UAAL
Current UAAL
Date
Years
Established
Source
Amount
Remaining
Amount
Payment
1/1/82
Assump. Change
$ (66,998)
1
$ (8,500)
$ (8,500)
1/1/87
Assump.Change
2,962
6
1,930
359
1/1/88
Assump. Change
(428,705)
7
(316,939)
(51,609)
1/1/88
Amendment
579,921
8
463,554
67,464
1/1/89
Amendment
1,739,764
9
1,523,508
201,285
9/30/90
Assump. Change
4,221,728
10
4,089,552
496,546
9/30/95
Change Assump.
(192,032)
15
(199,815)
(17,910)
9/30/96
Exp. Gain
(1,853,217)
1
(253,451)
(253,451)
9/30/97
Exp. Gain
(2,337,348)
2
(598,128)
(305,788)
9/30/97
Amendment
1,040,965
17
1,081,420
88,986
9/30/98
Exp. Gain
(1,110,255)
3
(380,686)
(132,644)
9/30/99
Exp. Gain
(2,841,714)
4
(1,211,694)
(323,657)
9/30/00
Amendment
3,335,872
20
3,112,663
230,761
9/30/00
Exp. Gain
(2,043,219)
5
(972,053)
(212,280)
10/1/01
Exp. Loss
5,127,867
6
2,789,747
518,761
10/1/02
Exp. Loss
4,227,408
7
3,027,169
492,929
10/1/03
Exp. Loss
5,398,187
8
4,185,821
609,193
10/1/04
Exp. Loss
4,994,196
9
4,128,097
545,403
10/1/04
ERIP
1,554,502
9
1,284,918
169,763
10/1/05
Exp. Loss
1,174,319
10
1,022,011
124,091
10/1/06
Exp. Loss
2,594,867
11
2,354,262
265,306
10/1/07
Exp. Gain
(1,095,313)
12
(1,027,614)
(108,358)
10/1/08
Exp. Loss
4,187,334
13
4,035,014
400,840
10/1/09
Exp. Loss
7,545,634
14
7,425,395
698,949
10/1/09
Method Change
(5,406,664)
29
(5,498,608)
(331,895)
10/1/10
Exp. Gain
(390,808)
15
(390,808)
(35,030)
$ 29,959,253
$ 29,666,764
$ 3,129,514
The UAAL is being liquidated as a level percent of payroll over the number of years remaining in
the amortization period. The expected amortization schedule is as follows:
GRS
Amortization Schedule
Year Expected UAAIL
2010
29,666,764
2011
28 ,660,227
2012
'A ",1.2-1
201 3
25,088,1212
2014
22,542,346
2015
19,247,687
2020
—326,209
2025
(1,708,272)
2030
(4,762,492)
2035
(2,764.144)
2040
WIM
10
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:
1
--7
1 .
Last Year's UAAL
$ 30,715,117
2.
Last Year's Employer Normal Cost
2,130,708
3.
Last Year's Contributions
5,415,919
4.
Interest at the Assumed Rate on:
a. 1 and 2 for one year
2,627,666
b. 3 from dates paid
0
c. a - b
2,627,666
5.
This Year's Expected UAAL
1 + 2 - 3 + 4c
30,057,572
6.
This Year's Actual UAAL (Before any changes
in benefits or assumptions)
29,666,764
7.
Net Actuarial Gain (Loss): (5) - (6)
390,808
8.
Gain (Loss) due to investments
(3,443,770)
9.
Gain (Loss) due to other sources
3,834,578
GRS
S18
$13
$8
$3
($2)
(S7)
(S12)
($17)
($22)
WPM
Actuarial Gain or Loss
9/94 9/95 9/96 9/97 9/98 9/99 9/00 9/01 9/02 9/03 9/04 9/05 9/06 9/07 9/08 9109 9/10
Plan Year End
Gain or Loss —�— Cumulative
S18
S13
$8
$3 y
-S2
-S7
-S12
-Sl
-$22
12
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:
Year Ending
Investment Return
Salary Increases
Actual
Assumed
Actual
Assumed
12/31/1988
10.8 %
8.0 %
6.7 %
6.5 %
12/31/1989
17.4
8.0
8.8
6.5
9/30/1990 *
(2.3)
8.0
11.0
6.5
9/30/1991
9.9
8.0
10.3
7.5
9/30/1992
9.5
8.0
5.3
7.9
9/30/1993
11.0
8.0
2.5
7.9
9/30/1994
8.0
8.0
5.8
7.9
9/30/1995
9.3
8.0
3.6
7.9
9/30/1996
9.4
8.0
2.4
7.4
9/30/1997
13.3
8.0
4.3
7.4
9/30/1998
14.5
8.0
8.0
7.4
9/30/1999
13.2
8.0
4.8
7.4
9/30/2000
12.3
8.0
10.8
7.3
9/30/2001
3.9
8.0
8.0
5.6
9/30/2002
0.2
8.0
4.4
5.6
9/30/2003
0.8
8.0
7.1
5.6
9/30/2004
0.5
8.0
8.1
5.6
9/30/2005
6.2
8.0
4.5
5.6
9/30/2006
9.7
8.0
14.8
5.6
9/30/2007
9.3
8.0
5.8
5.6
9/30/2008
4.6
8.0
5.7
5.4
9/30/2009
0.1
8.0
4.8
5.4
9/30/2010
4.3
8.0
(0.7)
5.4
Averages
7.6 %
---
6.4 %
---
* 9 months
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.
rAff -DIN
► _
20%
15%
10%
5%
0%
-5%
�O
Plan Year End
History of Investment Return Based on Actuarial Value of Assets
16°i°
14%
12%
10%
8%
6%
4%
2%
0%
-2%
���� ���� ���� q��� qq���� Vq,\ 1? QA�� ���� Q��� ���� q��� q��� ���� q��� Q51') 111�1
Plan Year End Compared to Previous Year
Actual --0— Assumed
Im Actual —* Assumed
History of Salary Increases
(-R C
16%
14%
12%
10%
8%
6%
4%
2%
0%
14
* Totals are through current Plan Year only
GRS
Actual (A) Compared to Expected (E) Decrements
Among Active Employees
Number
Added
Service &
Active
During
DROP
Disability
Terminations
Members
Year
Year
Retirement
Retirement
Death
Vested
Other
Totals
End of
A
E
A
E
A
E
A
E
A
A
A
E
Ended
Year
9/30/2002
41
48
15
8
0
0
1
0
6
26
32
53
542
9/30/2003
40
45
11
11
0
0
0
1
9
25
34
44
537
9/30/2004
50
77
39
10
0
0
1
1
7
30
37
39
510
9/30/2005
54
53
12
9
0
0
1
1
11
29
40
37
511
9/30/2006
70
56
9
11
0
0
1
1
17
29
46
36
525
9/30/2007
65
50
10
11
0
0
2
1
15
23
38
40
540
9/30/2008
35
49
10
11
0
0
1
1
14
24
38
41
526
9/30/2009
18
34
13
15
0
0
1
1
3
17
20
34
510
9/30/2010
10
41
21
21
0
0
2
1
7
11
18
34
479
9/30/2011
15
1
20
9 Yr Totals *
383
453
140
107
0
0
10
8
89
214
303
358
* Totals are through current Plan Year only
GRS
13 "° Check Provision
i
Cumulative Actuarial Gains (Losses) I
Balance at
Year Ending
Beginning
Gain (Loss)
Balance at i
9/30
of Year
Interest
for Year
13th Check
End of Year
2001
' (5,127,867)
0
(5,127,867)
2002
(5,127,867)
(410,229)
(4,227,408)
0
(9,765,504)
2003
(9,765,504)
(781,240)
(5,398,187)
0
(15,944,932)
2004
(15,944,932)
(1,275,595)
(4,994,196)
229,585
("22,444,306)
2005
(22,444,306)
(1,795,544)
(1,174,319)
0
(25,414,170)
2006
(25,414,170)
(2,033,134)
(2,594,867)
0
(30,042,170)
2007
(30,042,170)
(2,403,374)
1,095,313
0
(31350,23 1)
2008
(31,350,231)
(2,508,018)
(4,187,334)
0
(38,045,583)
2009
(38,045,583)
(3,043,647)
(7,545,634)
0
(48,634,864)
2010
(48,634,864)
(3,890,789)
390,808
0
(52,134,84.5)
Note: The 13"' check provision was enacted by Ordinance No. 02-026.
The first year that the 13'h check was based on is the year ended 9/30/2001.
V
GRS
z
da
t`
N
10
�
t`
�-+
It
�
M
O
t`
r'-
�
O1
O1
-� N m
N � m
7a
y
N
W)
m
t-
O
00
le)
01
—
to
t-
m
It
00
00
r+ N M
M tn lzt
p
V
�
00
00
00
00
O\
O1
00
o0
r`
` r-:` �
t` rt
` r-:10
rt`
d
w
.�
00
0\
00
M
't
r`
t
10
V1
t`
r`
a,
00
O M N O (7\
W) Ln t-
01
.-+
M
't
01
d
O
00
t`
O1
01
d'
N
dt
to . N Wn —
10 r-, 10
r-�,
kr)
o
N
—
O
1q
M
M
00
00
M
00
O
M
M't O N V1
00 r- 1D
N
00
r`
1�6
M
N
vItiC4M
t`
elONNNN
06 M
N N
609
v�
w
O
[�
10
O
�t
M
O
N
00
t`
t`
It
r`
O1 v) t` N
N vl 00
O
y
r
O
Ntr)
O
00
M
t-
O
t`
Wl
O
O
m
M
O
N
O\
N
N
t-
a1
Ittr)
O �
�t
O1
—
N
N
01 It t`
't 00 �t O 00
Zt t` N
O O1 —
,�
y
M
t`
10
0�
N
10
co
cn
16
N
t`
M
O
N
N
N N 16 M Ci
ct O 1D
y
r-'
—
—
—
N
N
N
M
M
Wn
10
t`
00 O1 O1
O
V
Q
W
�
OO
N
It
O
N
—
01
It
N
10
v1
10
RT
'T
00
t`
tf) 01 N -+
m N 01
O
,r
00
It
N
O
'IT
—
N
.
—
00
�
O\
00
It
M
O\ M d O
V1 00 IZT
N
O
It
--
O\
O
10
CN
N
't
O1
O
0�,
tf)
O\
a\ N t- O1 �,O
Oo — .
Q
y.
--
N
N
ri
N
Oo
O
O
- 'Ir 16
r` oo 6
—
N
N
N N N N N
N N N
44
L
a
W
z
w
609
v
O1
N
rl-00
V
O1
O
N
kn
r-
00
O It VI
�
1-
oo
C'
O1
a1
D,
kO
vml
000
10
000 0C1
CFyl
--+
—
,-�
--�
,_.,,
—
—
—
N N N N N
N N N
A
�
Z
�
d
,C
00
00
N
r-+
O
O
It
O1
v1
10
O
01
�O
O1
N
r- O ' , kf) O
10 O a\
t`
00
00
t`
N
10
10
10
r`
r`
r`
01
N
T
't
M -- N q:T
N — t`
ct
c!
t
�
It
'IT
qt
It
Wn
V1
Wn
to Wn to kn to
1n v') V
b
O
0
O
N
M
d'
W)
10
t`
00
O1
O
-�
N
M It W) IC r`
00 O1 O
Q
00
001
0',
a,,
C�
C,
C,
O1
O1
O1
0,
O1
O
O
O
O O O O OO
O O
id
A
o
0
0
0
0
0
0
0
0
0
0
0
0
00000
000
GRS
RECENT HISTORY OF REQUIRED AND ACTUAL, CONTRIBUTIONS j
Required Employer Contribution
Applies to Fiscal
Valuation
j
Year Ending
}
/o of Actual
Amount Payroll Contribution
1/1/89
9/30/90
$ 1,184,478
10.50 % $ 1,184,478
1/1/90
9/30/91
1,249,624
10.50 !,291,072
10/1/90
9/30/91
1,503,350
11.17 11,503,350 C
10/1/91
9/30/92
1.551,773
10.43 1,551,773
10/1/92
9/30/93
1,611,251
11.49 1,611,251
10/1/93
9/30/94
1,539,169
10.91 1,539,169
10/1/94
9/30/95
1,505,804
10.20 1,505,804
10/1/95
9/30/96
1,339,622
8.95 11,339,622
10/1/96
9/30/97
1,168,158
7.81 1,180,810
10/1/97
9/30/98
1,069,863
7.02 1,069,863
10/1/98
9/30/99
952,994
F3
5.68 952,994 Q
10/1/99
9/30/00
f 686,732
3.82 686,732
10/1/00
9/30/01
595,970
3.03 595,970
10/1/01
9/30/02
1,039,900
4.88 1,039,900
10/1/02
9/30/03
1,542,574
737 1,542,574 �!
10/1/03
9/30/04
2,243,356
10.20 2,243,356
10/1/04
9/30/05
2,851,454
13.44 2,851,454
10/1/05
9/30/06 1
2,805,595 3
12.91 2,805,595
10/1/06
9/30/07
3,584,452
14.37 3,584,452
10/1/07
9/30/08
3,909,961
14.70 3,909,961 `
10/1/08
9/30/09
4,800,411
17.24 4,800,411
10/1/09
9/30/10
5,415,919
19.22 5,415,919
10/1/09
9/30/11
4,694,544
18.43 na i.
10/1/10
9/30/12
5,458,778
20.17 na 3
CTR C
18
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuation Methods
Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered
before and after the valuation date were determined using an Individual Entry -Age Actuarial Cost
Method having the following characteristics:
(i) the annual normal cost for each individual active member, payable from the date of
employment to the date of retirement, is sufficient to accumulate the value of the member's
benefit at the time of retirement;
(ii) each annual normal cost is a constant percentage of the member's year by year projected
covered pay.
Actuarial gains/(losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability.
Financing of Unfunded Actuarial Accrued Liabilities - Unfunded Actuarial Accrued Liabilities (full
funding credit if assets exceed liabilities) were amortized as a level (principal & interest combined)
percent of payroll. The actual payroll growth average over the last 10 years was 3.25% compared to the
assumed rate of 3.5%. Florida administrative code requires using the lesser of the two rates for purposes
of amortizing unfunded liabilities as a level percent of pay.
Actuarial Value of Assets - The Actuarial Value of Assets phase in the difference between the expected
investment earnings and actual investment earnings at the rate of 20% per year. The Actuarial Value of
Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is
80% of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan
assets. During periods when investment performance exceeds the assumed rate, Actuarial Value of
Assets will tend to be less than Market Value. During periods when investment performance is less than
assumed rate, Actuarial Value of Assets will tend to be greater than Market Value.
Valuation Assumptions
The actuarial assumptions used in the valuation are shown in this Section.
Economic Assumptions
The investment return rate assumed in the valuation is 8.0% per year, compounded annually (net after
investment expenses).
The Wage Inflation Rate assumed in this valuation was 3.5% per year. The Wage Inflation Rate is
defined to be the portion of total pay increases for an individual that are due to macro economic forces
including productivity, price inflation, and labor market conditions. The wage inflation rate does not
include pay changes related to individual merit and seniority effects.
The assumed real rate of return over wage inflation is defined to be the portion of total investment
return that is more than the assumed wage inflation rate. Considering other economic assumptions, the
8.0% investment return rate translates to an assumed real rate of return over wage inflation of 4.5%.
The assumed rate of salary increases are shown in the table below. Part of the assumption is for merit
and/or seniority increase, and the other 3.5% recognizes wage inflation, including price inflation,
productivity increases, and other macroeconomic forces. This assumption is used to project a member's
GRS
current salary to Inc salaries upon whtc!t s)enefits .NW he hasco. Prgjected reurentew henetitS r4
increased by 10"o 1:o allow for the inclusion in average final compensation of lump gum payment,,
unused leave.
Attributable to:
Annual Rates of Salary
Increase For Sample Ages
20
30
40 50
60
Merit & Seniority
4.3%
32%
2.6% 1.6% f
0.716 e
General Increase in
NRD + 4
30
NRD + 5
i
Wage Level Due to:
Inflation
_ 3.5
3.5
_3_5 3.5
_3_5
Total
7.8%
6.7%
6.1% ± 5.1%
4.2%
Demographic Assumptions
The mortality table was the 1983 Group Annuity Mortality Table for males and females.
This assumption is used to measure the probabilities of each benefit payment being made after retirement.
For active members, the probabilities of dying before retirement were based upon the same mortality table
as members dying after retirement.
The rates of retirement used to measure the probability of eligible members retiring during the next year are
shown below.
Year of
Rate
Attainment
of NRD
80%
NRD + 1
30
NRD +2
30
NRD + 3
30
NRD + 4
30
NRD + 5
100
Assumed rate is 5% for each year eligible for Early Retirement.
Rates of separation from active membership were as shown on the next page (rates do not apply to
members eligible to retire and do not include separation on account of death or disability). This
assumption measures the probabilities of members remaining in employment.
CRC
20
Sample
Ages
Years of
Service
Percent Separating within Next
Year
ALL
0
34.0%
1
21.3
2
12.8
3
8.5
4
6.0
25
5 & Over
5.1
30
5.1
35
5.1
40
5.1
45
3.0
50
1.3
55
1.3
60
1.3
Miscellaneous and Technical Assumptions
Administrative & Investment The investment return assumption is intended to be the return net o
Expenses investment expenses. Annual administrative expenses are assumed to
be the same as last years actual non -investment expenses. Assumed
administrative expenses are added to the Normal Cost.
Benefit Service Exact fractional service is used to determine the amount of benefit
payable.
Decrement Operation Mortality decrements operate during retirement eligibility.
Decrement Timing Decrements of all types are assumed to occur at the beginning of the
year.
Eligibility Testing Eligibility for benefits is determined based upon the age nearest
birthday and service nearest whole year on the date the decrement is
assumed to occur.
Forfeitures For vested separations from service, it is assumed that 0% of members
separating will withdraw their contributions and forfeit an employer
financed benefit. It was further assumed that the liability at
termination is the greater of the vested deferred benefit (if any) or the
member's accumulated contributions.
Incidence of Contributions Employer contributions are assumed to be made biweekly effective
October 1, 2010. Member contributions are assumed to be received
continuously throughout the year based upon the computed percent of
payroll shown in this report, and the actual payroll payable at the time
contributions are made.
Marriage Assumption 100% of males and 100% of females are assumed to be married for
purposes of death -in-service benefits. Male spouses are assumed to be
three years older than female spouses for active member valuation
purposes.
Normal Form of Benefit
Pay Increase Timing
Service Credit Accruals
C`U C
A life annuity is the normal form of benefit.
Beginning of fiscal year. This is equivalent to assuming that reported
pays represent amounts paid to members during the year ended on the
valuation date.
It is assumed that members accrue one year of service credit per year.
22
GLOSSARY
Actuarial Accrued Liability The difference between the Actuarial Present Value of Future Benefits,
(AAL) and the Actuarial Present Value of Future Normal Costs.
Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities,
such as: mortality, withdrawal, disablement, and retirement; future
increases in salary; future rates of investment earnings; future investment
and administrative expenses; characteristics of members not specified in
the data, such as marital status; characteristics of future members; future
elections made by members; and other items.
Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits
between the Actuarial Present Value of Future Normal Costs and the
Actuarial Accrued Liability.
Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and based
on a given set of Actuarial Assumptions.
Actuarial Present Value The amount of funds required to provide a payment or series of payments
(API) in the future. It is determined by discounting the future payments with an
assumed interest rate and with the assumed probability each payment will
be made.
Actuarial Present Value of The Actuarial Present Value of amounts which are expected to be paid at
Future Benefits (APVFB) various future times to active members, retired members, beneficiaries
receiving benefits, and inactive, non retired members entitled to either a
refund or a future retirement benefit. Expressed another way, it is the
value that would have to be invested on the valuation date so that the
amount invested plus investment earnings would provide sufficient assets
to pay all projected benefits and expenses when due.
Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial
Accrued Liability, Actuarial Value of Assets, and related Actuarial
Present Values for a plan. An Actuarial Valuation for a governmental
retirement system typically also includes calculations of items needed for
compliance with GASB No. 25, such as the Funded Ratio and the Annual
Required Contribution (ARC).
Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for
valuation purposes. This may be the market or fair value of plan assets
or a smoothed value in order to reduce the year-to-year volatility of
calculated results, such as the funded ratio and the actuarially required
contribution (ARC).
Amortization Method A method for determining the Amortization Payment. The most common
methods used are level dollar and level percentage of payroll. Under the
Level Dollar method, the Amortization Payment is one of a stream of
payments, all equal, whose Actuarial Present Value is equal to the UAAL.
Under the Level Percentage of Pay method, the Amortization Payment is
one of a stream of increasing payments, whose Actuarial Present Value is
equal to the UAAL. Under the Level Percentage of Pay method, the
stream of payments increases at the rate at which total covered payroll of
ill nClivc members 2ti assumed w i ncrcas(
Amortization Payment 1 -hat portion of the plan contribution or ARC which is designed to pla r
interest on and to amortize the tinfiinded Actuarial Accrued Liability.
Amortization Period The period used in calculating the Amortization Payment.
Annual Required The employer's periodic required contributions, expressed as a dollar
Contribution (ARC) amount or a percentage of covered plan compensation, determined
under GASB No. 25_ The ARC consists of the Employer Normal Cost
and Amortization Payment.
Closed Amortization Period A specific number of years that is reduced by one each year, and declines
to zero with the passage of time. For example if the amortization period is
initially set at 30 years, it is 29 years at the end of one year, 28 years at the
end of two years, etc.
Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is
equal to the Normal Cost less expected member contributions.
Equivalent Single For plans that do not establish separate amortization bases (separate
Amortization Period components of the UAAL), this is the same as the Amortization Period.
For plans that do establish separate amortization bases, this is the period
over which the UAAL would be amortized if all amortization bases were
combined upon the current UAAL payment.
Experience Gain/Loss A measure of the difference between actual experience and that expected
based upon a set of Actuarial Assumptions, during the period between two
actuarial valuations. To the extent that actual experience differs from that
assumed, Unfunded Actuarial Accrued Liabilities emerge which may be
larger or smaller than projected. Gains are due to favorable experience,
e.g., the assets earn more than projected, salaries do not increase as fast as
assumed, members retire later than assumed, etc. Favorable experience
means actual results produce actuarial liabilities not as large as projected
by the actuarial assumptions. On the other hand, losses are the result of
unfavorable experience, i.e., actual results that produce Unfunded
Actuarial Accrued Liabilities which are larger than projected.
Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued
Liability.
GASB Governmental Accounting Standards Board.
GASB No. 25 and These are the governmental accounting standards that set the accounting
GASB No. 27 rules for public retirement systems and the employers that sponsor or
contribute to them. Statement No. 27 sets the accounting rules for the
employers that sponsor or contribute to public retirement systems, while
Statement No. 25 sets the rules for the systems themselves.
Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current
plan year.
24
Open Amortization Period An open amortization period is one which is used to determine the
Amortization Payment but which does not change over time. In other
words, if the initial period is set as 30 years, the same 30 -year period is
used in determining the Amortization Period each year. In theory, if an
Open Amortization Period is used to amortize the Unfunded Actuarial
Accrued Liability, the UAAL will never completely disappear, but will
become smaller each year, either as a dollar amount or in relation to
covered payroll.
Unfunded Actuarial Accrued The difference between the Actuarial Accrued Liability and Actuarial
Liability Value of Assets.
Valuation Date The date as of which the Actuarial Present Value of Future Benefits are
determined. The benefits expected to be paid in the future are discounted
to this date.
GRS
SECTION C
PENSION FUND INFORMATION
C
25
STATEMENT OF PLAN ASSETS
September 30
Item
2010
2009
A. Cash and Cash Equivalents (Operating Cash)
$
-
$
-
B. Receivables:
1. Member Contributions
$
-
$
-
2. Employer Contributions
5,415,919
4,800,411
3. Investment Income and Other Receivables
270,657
242,417
4. Prepaid Expenses
8,279
9,401
5. Total Receivables
$
5,694,855
$
5,052,229
C. Investments
1. Short Term Investments
$
2,278,418
$
2,120,367
2. Domestic Equities
51,685,323
47,159,486
3. International Equities
-
-
4. Domestic Fixed Income
24,212,629
20,919,736
5. International Fixed Income
-
-
6. Real Estate
5,315,051
5,076,185
7. Private Equity
-
-
8. Total Investments
$
83,491,421
$
75,275,774
D. Liabilities
1. Benefits Payable
$
-
$
-
2. Accrued Expenses and Other Payables
3. Accounts Payable
(53,371)
(49,558)
4. Due to Brokers
(216,582)
(324,656)
5. Total Liabilities
$
(269,953)
$
(374,214)
E. Total Market Value of Assets Available for Benefits
$
88,916,323
$
79,953,789
F. Reserves
1. Elective Benefits
(429,240)
(538,230)
2. DROP Accounts
(2,828,048)
(1,663,540)
3. Total Reserves
$
(3,257,288)
$
(2,201,770)
G. Market Value Net of Reserves
$
85,659,035
$
77,752,019
F. Allocation of Investments
1. Short Term Investments
2.7%
2.8%
2. Domestic Equities
61.9%
62.7%
3. International Equities
0.0%
0.0%
4. Domestic Fixed Income
29.0%
27.8%
5. International Fixed Income
0.0%
0.0%
6. Real Estate
6.4%
6.7%
7. Private Equity
0.0%
0.0%
8. Total Investments
100.0%
100.0%
RECONCILIATION OF PLAN ASSETS
Item
A. Market Value of Assets at Beginning of Year
B. Revenues and Expenditures
1. Contributions
a. Employee Contributions
b. Employer Contributions
c. State Contributions
d. Other Income
e. Total
2. Investment Income
a. Interest, Dividends, and Other Income
b. Realized Gains/(Losses)
c. Unrealized Gains/(Losses)
d. Investment Expenses
e. Net Investment Income
3. Benefits and Refunds
a. Refunds
b. Regular Monthly Benefits
c. DROP Distribution
d. Total
4. Administrative and Miscellaneous Expenses
C. Market Value of Assets at End of Year
D. Reserves
1. Elective Benefits
2. DROP Accounts
3. Total Reserves
E Market Value Net of Reserves
* Beginning balance adjusted by $399 to match financial statements.
GRS
September 30
_ 2010 2009
$ 79,954.188 * S 78,07 ? ,772
1,957,816
5,415,919
12,628
7,386,363
$ 2,065.382
4,800,411
680
$ 6,866,473
S
2,167,038
S
2,191,281
$ (3,257,288) S
(107,816)
S 85,659,035 $
77,752,019
5,139,038
(2,045,129)
(350,274)
(392,996)
S
6,847,986
$
(250,180)
$
(495,984)
$
(170,244)
(4,550,455)
(4,337,945)
(95,129)
(72,666)
$
(5,141,568)
$
(4,580,855)
S
(130,646)
S
(153,421)
$
88,916,323
S
79,953 789
(429,240) S
(538,230)
(2,828,048)
(1,663,540)
$ (3,257,288) S
(2,201,770)
S 85,659,035 $
77,752,019
RECONCILIATION OF DROP ACCOUNTS
Value at beginning of year
$ 1,663,540
Payments credited to accounts
+ 1,098,212
Investment Earnings credited
+ 161,424
Withdrawals from accounts
- 95,128
Value at end of year
2,828,048
GRS
27
M
O
N
O
O
N
C
00 O h oc
G
M O C
Q1 O � �
GT ('
�O �6
r- 00 00 O
0o M
rte: M �f
— O M kr)
^ � a
6Q
._
0
M 00 cp (-I
Vl N r
M O r^
4` o0 r -
x
� �
00 l� l�
•.�
^-'
i [
0
O O O
o0
00 (r) O
^ V cx
Hr
h
^ N oo
00 O h oc
M_ O
M M
Q1 O � �
ON
�O �6
r- 00 00 O
0o M
— O M kr)
01
O M ^ N
00 r!1
M 00 cp (-I
Vl N r
M
4` o0 r -
V
C C C
— O M kr)
01
O M ^ N
O 00 O\ O`.
kr) kr) (` M
Vl N r
M
v') C7\
N
00 l� l�
•.�
^-'
y
Y
3 1
r �
o bCI
M O a L > R
al W `n
N yN w c
R W w d
O tir1
clr Q w w
� d o � .� a� � a°i o a°i • � p c� � ami °' � � `" " o o a� Q � a� � P�" °+.3 .
ul)ado y' o o° o o> O>
ami ami «, �" ° w '~ ci, s~ U U oA P4 a� as
In
� as,�.x � �ddd �Ui1.cr�F•�wQF-� � �, � �
m ctsp j M V .�
>d zSwNw 'W't wwwwwdc7U7 3(2)0(SS 0d c
dwUC�w u.: � �•:�;
GRS
C C C
M
i [
O O O
M
M
O C C
M
<fr
O
Qv 00 00 O� o0 O ^
l�
IO 00 V1 11O 't 1- 00
IT v) v') �
[�
M vl O M O N O
O M S C-
M
V1 O� M k!1 00 O\ oc
O1 d' oG ^
V'
00 CII M o0 N N N
�O
V
_
M D .-- M oo It
7
r
c, �o - rn ri ljo
c
O. O P— Q1 (:7'
_
O J
M It
M'IT N It
D\
M U1 O M V'1 N Vl
V) M rn kr)
M M o0 �t
N �O O "O
M
CN
.�•. CN CO
M � M M .-. O
N•>
y
Y
3 1
r �
o bCI
M O a L > R
al W `n
N yN w c
R W w d
O tir1
clr Q w w
� d o � .� a� � a°i o a°i • � p c� � ami °' � � `" " o o a� Q � a� � P�" °+.3 .
ul)ado y' o o° o o> O>
ami ami «, �" ° w '~ ci, s~ U U oA P4 a� as
In
� as,�.x � �ddd �Ui1.cr�F•�wQF-� � �, � �
m ctsp j M V .�
>d zSwNw 'W't wwwwwdc7U7 3(2)0(SS 0d c
dwUC�w u.: � �•:�;
GRS
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.
Year Ended
Investment Rate of Return
Basis 1
Basis 2
12/31/88
NA
10.8
12/31/89
NA
17.4
9/30/90 (9 mos.)
NA
(2.3)
9/30/91
NA
9.9
9/30/92
NA
9.5
9/30/93
NA
11.0
9/30/94
NA
8.0
9/30/95
NA
9.3
9/30/96
NA
9.4
9/30/97
24.6 %
13.3
9/30/98
8.6
14.5
9/30/99
11.5
13.2
9/30/00
9.8
12.3
9/30/01
(9.4)
3.9
9/30/02
(6.4)
0.2
9/30/03
14.8
0.8
9/30/04
6.9
0.5
9/30/05
10.5
6.2
9/30/06
6.8
9.7
9/30/07
14.3
9.3
9/30/08
(15.0)
4.6
9/30/09
(0.3)
0.1
9/30/10
8.5
4.3
Average Compounded Rate of
Return for Number of Years
Shown
5.6 %
7.6 %
Average Compounded Rate of
Return for Last 5 Years
2.3 %
5.5 %
GRS
29
SECTION D
FINANCIAL ACCOUNTING INFORMATION
A
FASB NO. 35 INFORMATION
A. Valuation Date
B. Actuarial Present Value of Accumulated
Plan Benefits
1. Vested Benefits
a. Members Currently Receiving Payments
b. Terminated Vested Members
c. Other Members
d. Total
2. Non -Vested Benefits
3. Total Actuarial Present Value of Accumulated
Plan Benefits: 1 d + 2
4. Accumulated Contributions of Active Members
C. Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1. Total Value at Beginning of Year
2. Increase (Decrease) During the Period
Attributable to:
a. Plan Amendment
b. Change in Actuarial Assumptions
c. Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period
d. Benefits Paid
e. Net Increase
3. Total Value at End of Period
D. Market Value of Assets
E. Actuarial Assumptions - See page entitled
Actuarial Assumptions and Methods
OW LN—W
October 1, 2010 1 October 1, 2009
$ 53,618,809
2,102,095
29,301,215
85,022,119
21,492,836
106,514,955
13,781,502
99,634,298
111
12,022,225
(5,141,568)
6,880,657
106,514,955
85,659,035
$ 49,928,806
2,163,739
29,301,215
81,393,760
18,240,538
99,634,298
13,107,477
93,309,351
10,905,802
(4,580,855)
6,324,947
99,634,298
77,752,019
30
O
(as
fl)
(11
10
kf)
Irl
dT
'T
00
t-
tf)
al
r 4
N C, I
00
It
ON
00
m
a1m
O kr) 00 It
'A
dt
Cr
C>
(71
(n
CN
(01
N
r-
ol
00 —
r1l e,) N rl
O
O
O
:7\
kf)
C
C,
"t
It
'T
11)
It) It 00 It
Do*
M
ON
00
Lf)
all
rq
kn
kn
It
r--
00
00
ol
ON
C)
C)
C)
O
�
00
00
r-
r-
r--
r- r-- r- r -
(y
O
00
m
I-
kn
kr)
r-
r-
C1
00
C)
m
"
C)
C1 kr) W-) r --
I-
C,
Tt
C)
00
r-
CN
01
"t
N
1:t
kn
—
(11
V)
— � — 1,0
C�
110
Mm
00
00
m
00
O
m
m
'IT
C)
N
V) 00 r- \�o
"t
N
rq
rl
(11
r, I rA m
M
'D
(r)
C
,c
�c
V1
M
kr)
00
00
CN
N
C, O 'n
tr)
7r
"t
't
W)
Tt
C)
CA
r-
It
W)
OIN
rl-
�c C) ON �
00
C)
N
V')
r-
a,,
r-
V)
ON
k4O
M
00
00
It CA (n
(,q
rn
m
M
m
"t
"t
"t
V)
�v
�o
r-
00
00
a,
C) r. rq
O
wM
O
C14
00
r-
cl)
N
It
r-
�
kf)
r-
CIA
CA tn 00
rl
"It
tr)
all
N
r-
C11
Tt r-
r'!
a\
00 lo,
>
cq
I'D
cq
r-
m
C)
cq
N
rq
N
IC
M
(ON dt C>
U
rq
rn
ct
W')
110
r--
00
�
0
en
to
IC
r-- 00 C1 C)
O
C\
C1
C\
C1
C\
�
�
C>
C>
C)
C)
C)
0
C)
0 (=> C> —
C1
oll
oll
c1
C\
01
(71
C)
C>
C)
(=>
C)
C)
C>
0 C) C> C)
cc
—
—
N
N
N
N
rq
N
cli
C--) rq cq rq
32
SCHEDULE OF EMPLOYER CONTRIBUTIONS
(GASB Statement No. 25)
Year Ended
Setember 30
Annual Required
Contribution
Actual
Contribution
Percentage
Contributed
1991
$ 1,503,350
$ 1,503,350
100.0 %
1992
1,551,773
1,551,773
100.0
1993
1,611,251
1,611,251
100.0
1994
1,539,169
1,539,169
100.0
1995
1,505,804
1,505,804
100.0
1996
1,339,622
1,339,622
100.0
1997
1,168,158
1,180,810
101.1
1998
1,069,863
1,069,863
100.0
1999
952,994
952,994
100.0
2000
686,732
686,732
100.0
2001
595,970
595,970
100.0
2002
1,039,900
1,039,900
100.0
2003
1,542,574
1,542,574
100.0
2004
2,243,356
2,243,256
100.0
2005
2,851,454
2,851,454
100.0
2006
2,805,595
2,805,595
100.0
2007
3,584,452
3,584,452
100.0
2008
3,909,961
3,909,961
100.0
2009
4,800,411
4,800,411
100.0
2010
5,415,919
5,415,919
100.0
N01361
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT NO. 27)
Employer FYE September 30
201 1
2010
2009
Annual Required Contribution (ARC)*
S 4,694,544
$ 5,415,919
$ 4,800.411
Interest on Net Pension Obligation (NPO)
(330)
(36.5)
[402)
Adjustment to ARC
(721)
(796)
(871)
Annual Pension Cost (APC)
4,694,935
5,416,350
4,800,880
Contributions made
**
5,415,919
4,800,411
Increase (decrease) in NPO
* *
431
469
NPO at beginning of year
(4,129)
(4,560)
(5.029)
NPO at end of year
**
(4,129)
(4,560)
** To be determined
THREE YEAR TREND INFORMATION
Fiscal
Annual Pension
Actual
Percentage of
Net Pension
Year Ending
Cost (APC)
Contribution
APC Contributed
Obligation
9/30/2008
$ 3,910,462
$ 3,909,961
100.0 %
$ (5,029)
9/30/2009
4,800,880
4,800,411
100.0
(4,560)
9/30/2010
5,416,350
5,415,919
100.0
(4,129)
GRS
34
REQUIRED SUPPLEMENTARY INFORMATION
GASB 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, 2010
Contribution Rates:
Employer 20.17%
Plan Members 7.00% of compensation
Actuarial Cost Method Entry Age
Amortization Method Level percent, closed
Remaining amortization period 29 years
Asset valuation method 5 year smoothed market
Actuarial assumptions:
Investment rate of return 8.0%
Projected salary increases 4.2% to 7.8%, depending
on service
Includes inflation and other general increases at 3.5%
Cost -of -living adjustments NA
SECTION E
MISCELLANEOUS INFORMATION
GRS
35
RECONCILIATION OF MEMBERSHIP DATA
From 10/1/09
From 10/1/08
To 10/1/10
To 10/1/09
A. Active Members
1. Number Included in Last Valuation
510
526
2. New Members Included in Current Valuation
10
18
3. Non -Vested Employment Terminations
(11)
(17)
4. Vested Employment Terminations
(7)
(3)
5. DROP Participation
(12)
(10)
6. Service Retirements
(9)
(3)
7. Disability Retirements
0
0
8. Deaths
(2)
(1)
9. Number Included in This Valuation
479
510
B. Terminated Vested Members
1. Number Included in Last Valuation
22
30
2. Additions from Active Members
7
3
3. Lump Sum Payments/Refund of Contributions
(3)
(7)
4. Payments Commenced
(3)
(4)
5. Deaths
0
0
6. Other --Return to Active
1
0
7. Number Included in This Valuation
24
22
C. DROP Plan Members
1. Number Included in Last Valuation
26
23
2. Additions from Active Members
12
10
3. Retirements
(3)
(7)
4. Deaths Resulting in No Further Payments
0
0
5. Other
0
0
6. Number Included in This Valuation
35
26
D. Service Retirees, Disability Retirees and Beneficiaries
1. Number Included in Last Valuation
237
223
2. Additions from Active Members
9
3
3. Additions from Terminated Vested Members
3
4
4. Additions from DROP Plan
3
7
5. Deaths Resulting in No Further Payments
(10)
0
6. Deaths Resulting in New Survivor Benefits
0
0
7. End of Certain Period - No Further Payments
0
0
8. Other
(2)
0
9. Number Included in This Valuation
240
237
GRS
ACTIVES --- DISTRIBtJTION OF SERVICE & SALARN
CTR
Years of Service to Valuation Date
Age Group
0-1
1-2
2-3
3-4
4-5
5-9
10-14
15-19
20-24
25-29
35&U
Totals
15-19 NO.
TOT PAY
0
)
0
AVG PAY
20-24 NO.
TOT PAY
0
79,495
42,055
134,525
109,649
f)
)
1'z
i
U
365,724
AVG PAY
0
26,498
42,055
33,631
36,550
{)
e
)
0
33,248
25-29 NO.
I
2
2
4
0
20
TOTPAY
38,675
74,103
86,111
137,648
167,768
296,045
O
}
1)
800,350
AVG PAY
38,675
37,052
43,056
34,412
33,554
49,341
40,018
30-34 NO.
3
2
0
(
10
{)
0
;5
TOT PAY
122,506
75,334
0
297,828
201,479
373,770
489,504
0
0
0
1,560,421
AVG PAY
40,835
37,667
0
49,638
40,296
41,530
48,950
0
U
ti
0
44,583
35-39 NO.
3
3
7
5
14
14
1
0
0
11
54
TOT PAY
116,588
155,464
351,394
217,138
271,064
624,295
696,052
40,791
>
0
0
",472,786
AVG PAY
38,863
51,821
50,199
43,428
38,723
44,593
49,718
40,791
u
)
i1
45,792
4
40-44 NO.
0
2
6
;
7
23
8
)
0
{1
00
TOT PAY
0
88,277
243,480
114,616
310,002
500,163
1,222,177
383,564
574,188
0
0
3,436,467
AVGPAY
0
44,139
40,580
38,205
44,286
62,520
53,138
47,946
63,799
{)
0
52,068
45-49 NO.
2
1
9
23
18
16
18
2
0
98
TOT PAY
67,624
87,499
463,817
296,195
102,046
1,072,256
1,048,295
848,089
1,180,635
115,808
0
5,282,264
AVG PAY
33,812
87,499
51,535
42,314
51,023
46,620
58,239
53,006
65,591
57,904
0
53,901
50-54 NO.
0
2
1
4
2 3
15
10
15
2
0
77
TOT PAY
0
67,214
62,811
160,137
238,025
1,410,725
871,183
602,923
1,032,921
158,695
0
4,604,634
AVG PAY
0
33,607
62,811
40,034
47,605
61,336
58,079
60,292
68,861
79,348
0
59,800
55-59 NO.
0
0
1
3
11
15
12
10
2
0
61
TOT PAY
0
0
34,721
132,285
397,292
627,171
806,336
692,435
744,584
149,314
0
3,584,138
AVG PAY
0
0
34,721
44,095
56,756
57,016
53,756
57,703
74,458
74,657
0
58,756
60-64 NO.
0
0
2
4
0
10
12
8
S
0
1
46
TOT PAY
0
0
131,984
149,909
302,498
526,633
894,991
463,300
174,337
0
53,442
2,697,094
AVG PAY
0
0
65,992
37,477
50,416
52,663
74,583
57,913
58,112
0
53,442
58,632
65-99 NO.
0
0
1
1
2
6
1
0
0
0
0
i 1
TOT PAY
0
0
102,920
67,368
93,025
305,708
122,440
0
0
0
0
691,461
AVG PAY
0
0
102,920
67,368
46,513
50,951
122,440
0
0
0
0
62,860
TOT NO.
9
15
30
41
49
110
108
55
55
6
1
479
TOT AMT
345,393
627,386
1,519,293
1,707,649
2,192,848
5,736,766
6,150,978
3,031,102
3,706,665
423,817
53,442
25,495,339
AVG AMT 1
38,377
41,826
50,643
41,650
44,752
52,152
56,954
55,111
67,394
70,636
53,442
53,226
CTR
37
INACTIVES - DISTRIBUTION OF AGES & ANNUAL BENEFITS
GRS
Deceased with
Terminated Vested
Disabled
Retired
Beneficiary
Total
Total
Total
Total
Age
Number
Benefits
Number
Benefits
Number
Benefits
Number
Benefits
Under 20
-
-
-
-
-
-
-
-
20-24
-
-
-
-
-
-
-
-
25-29
-
-
-
-
-
-
-
-
30-34
1
14,531
-
-
-
-
-
-
35-39
-
-
-
-
-
-
-
-
40-44
-
-
-
-
-
-
-
-
45-49
1
12,156
-
-
10
354,014
1
6,184
50-54
13
216,729
-
-
13
471,801
1
17,545
55-59
5
43,307
-
-
21
680,643
1
21,750
60-64
4
28,750
-
-
44
1,261,275
2
27,175
65-69
-
-
1
17,928
64
1,375,741
1
4,456
70-74
-
-
1
5,717
37
585,818
3
28,040
75-79
-
-
-
-
31
433,309
3
47,985
80-84
-
-
-
-
25
271,387
2
31,895
85-89
-
-
-
-
9
112,363
1
3,813
90-94
-
-
-
-
3
39,099
-
-
95-99
-
-
-
-
1
5,525
-
-
100 & Over
-
-
-
-
-
-
-
-
Total
24
315,473
2
23,645
258
5,590,975
15
188,843
Average Age
54
67
68
70
Liability
2,102,095
234,445
51,792,316
1.592.064
GRS
SECTION F
SUMMARY OF PLAN PROVISIONS
m 0bl
SUMMARY OF PLAN PROVISIONS
A. Ordinances
38
Plan established under the Code of Ordinances for the City of Boynton Beach, Florida, Chapter
18, Article H, and was most recently amended under Ordinance No.07-022 passed and adopted
on its second reading on September 4, 2007. The Plan is also governed by certain provisions of
Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code.
B. Effective Date
April 1, 1968
C. Plan Year
October 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All general employees who work at least 30 hours per week are eligible to participate on the first
day of employment.
F. Credited Service
Service in the employment of the City is measured as years and months and is computed to the
nearest whole month. No service is credited for any periods of employment for which the member
received a refund of their contributions.
G. Compensation
Gross earnings including overtime, but excluding bonuses and flexible benefits.
H. Final Average Monthly Compensation (FAMC)
The average of Compensation over the highest 60 consecutive months during the last 120 months of
Credited Service; includes lump sum payouts of accumulated sick pay upon termination or
retirement.
I. Normal Retirement
Eligibility: A member may retire on the first day of the month coincident with or next
following the earliest of:
(1) age 62 and 5 years of Credited Service, or
(2) age 55 and 25 years of Credited Service, or
(3) 30 years of Credited Service regardless of age.
GRS
Benefit: 3% of FAMC multiplied by nears ofCredited Service with ._� lnaxtmum eqm
75°% of FAM(
Normal Form
of Benefit: Single life annuity; other options are also available.
COLA: In lieu of receiving a COLA, a supplemental benefit may be paid in years that
investment return exceeds the assumed rate of return. The amount that investment
return exceeds the assumed return will be divided equally among all participants.
The supplemental benefit will not be paid if the Plan has experienced cumulative
losses from all sources after October 1. 2001.
J. Early Retirement
Eligibility: A member who has less than 30 years of Credited Service may elect to retire earlier
than the Normal Retirement Eligibility upon the earlier of:
(1) age 55 and 10 years of Credited Service, or
(2) age 52 and 25 years of Credited Service.
Benefit: The Normal Retirement Benefit is reduced by 3% for each year by which the Early
Retirement date precedes the Normal Retirement date.
Normal Form
of Benefit: Single life annuity; other options are also available.
COLA: In lieu of receiving a COLA, a supplemental benefit may be paid in years that
investment return exceeds the assumed rate of return. The amount that investment
return exceeds the assumed return will be divided equally among all participants.
The supplemental benefit will not be paid if the Plan has experienced cumulative
losses from all sources after October 1, 2001.
K. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited until the
date of actual retirement.
L. Service Connected Disability
Eligibility: Any member who becomes totally and permanently disabled and is unable to
perform all the material duties of their occupation as a result from an act occurring
in the performance of service for the City is eligible for a disability benefit.
Benefit: The accrued Normal Retirement Benefit taking into account compensation earned
and service credited as of the date of disability. The benefit is payable on the
member's Normal Retirement date.
Normal Form
of Benefit: Single life annuity; other options are also available.
COLA: In lieu of receiving a COLA, a supplemental benefit may be paid in years that
investment return exceeds the assumed rate of return. The amount that investment
return exceeds the assumed return will be divided equally among all participants.
The supplemental benefit will not be paid if the Plan has experienced cumulative
WWO4
Ent
losses from all sources after October 1, 2001.
M. Non -Service Connected Disability
Eligibility: Any member who becomes totally and permanently disabled and is unable to
perform all the material duties of their occupation is eligible for a disability benefit.
Benefit: The accrued Normal Retirement Benefit taking into account compensation earned
and service credited as of the date of disability. The benefit is payable on the
member's Normal Retirement date.
Normal Form
of Benefit: Single life annuity; other options are also available.
COLA: In lieu of receiving a COLA, a supplemental benefit may be paid in years that
investment return exceeds the assumed rate of return. The amount that investment
return exceeds the assumed return will be divided equally among all participants.
The supplemental benefit will not be paid if the Plan has experienced cumulative
losses from all sources after October 1, 2001.
N. Death in the Line of Duty
Eligibility: Any member with 5 or more years of Credited Service whose death is determined
to be the result of a service incurred injury is eligible for survivor benefits.
Benefit: Beneficiary will have the choice of receiving either an immediate lump sum
payment or a monthly survivor benefit.
The immediate lump sum payment will be the greater of a refund of the member's
contributions with interest at the annual rate of 5%, or the lump sum value of the
member's accrued Normal Retirement Benefit payable at the earliest retirement
date.
The monthly survivor benefit will be equal to the accrued Normal Retirement
Benefit taking into account compensation earned and service credited as of the date
of death with payments starting at the earliest retirement date. If the "earliest date"
precedes the member's Normal Retirement Date, then the accrued benefit will be
subject to the Early Retirement reduction.
Normal Form
of Benefit: Optional lump sum or a monthly benefit payable for the life of the beneficiary.
COLA: In lieu of receiving a COLA, a supplemental benefit may be paid in years that
investment return exceeds the assumed rate of return. The amount that investment
return exceeds the assumed return will be divided equally among all participants.
The supplemental benefit will not be paid if the Plan has experienced cumulative
losses from all sources after October 1, 2001.
The beneficiary of a plan member with less than 5 years of Credited Service at the
time of death will receive a refund of the member's accumulated contributions with
interest at 5.0%.
GRS
O. Other Pre -Retirement Death
Eligibility: Members are eligible for survivor benefits after the completion of 5 or more years
of Credited Service.
Benefit: Beneficiary will have the choice of receiving either an immediate lump sum
payment or a monthly survivor benefit.
The immediate lump sum payment will be the greater of a refund of the member`s
contributions with interest at the annual rate of 5%, or the lump sum value of the
member's accrued Normal Retirement Benefit payable at the earliest retirement
date.
The monthly survivor benefit will be equal to the accrued Normal Retirement
Benefit taking into account compensation earned and service credited as of the date
of death with payments starting at the earliest retirement date. If the "earliest date"
precedes the member's Normal Retirement Date, then the accrued benefit will be
subject to the Early Retirement reduction.
Normal Form
of Benefit: Optional lump sum or a monthly benefit payable for the life of the beneficiary.
COLA: In lieu of receiving a COLA, a supplemental benefit may be paid in years that
investment return exceeds the assumed rate of return. The amount that investment
return exceeds the assumed return will be divided equally among all participants.
The supplemental benefit will not be paid if the Plan has experienced cumulative
losses from all sources after October 1, 2001.
The beneficiary of a plan member with less than 5 years of Credited Service at the
time of death will receive a refund of the member's accumulated contributions with
interest.
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
Q. Optional Forms
In lieu of electing the Normal Form of benefit, the optional form of benefit available to all retirees is
the 66 2/3% Joint and Survivor Annuity option. A Social Security option is also available for
members retiring prior to the time they are eligible for Social Security retirement benefits. Upon
approval of the Plan Administrator, other options are also available as long as actuarial equivalence
is maintained.
R. Vested Termination
Eligibility: A member has earned a non -forfeitable right to Plan benefits after the completion of
5 years of Credited Service if they elect to leave their accumulated contributions in
the fund.
CTRS
42
Benefit: The benefit is the member's accrued Normal Retirement Benefit as of the date of
termination. The benefit begins at age 62, or at age 55 if the member had 25 or
more years of Credited Service.
Normal Form
of Benefit: Single life annuity; other options are also available.
COLA: In lieu of receiving a COLA, a supplemental benefit may be paid in years that
investment return exceeds the assumed rate of return. The amount that investment
return exceeds the assumed return will be divided equally among all participants.
The supplemental benefit will not be paid if the Plan has experienced cumulative
losses from all sources after October 1, 2001.
Members terminating employment with less than 5 years of Credited Service will receive a refund of
their own accumulated contributions with interest.
S. Refunds
Eligibility: All members terminating employment with less than 5 years of Credited Service are
eligible. Optionally, vested members (those with 5 or more years of Credited
Service) may elect a refund in lieu of the vested benefits otherwise due.
Benefit: Refund of the member's contributions with interest. Interest is currently credited at
5% per annum.
T. Member Contributions
7% of Compensation
U. Employer Contributions
The amount determined by the actuary needed to fund the plan properly according to State laws.
V. Cost of Living Increases
In lieu of receiving a COLA, a supplemental benefit may be paid in years that investment return
exceeds the assumed rate of return. The amount that investment return exceeds the assumed return
will be divided equally among all participants. The supplemental benefit will not be paid if the Plan
has experienced cumulative losses from all sources after October 1, 2001.
W. Changes from Previous Valuation
There are no changes from the previous valuation.
X. 13`n Check
As described under the COLA subsections, in lieu of COLA increases a thirteenth check will be
paid to retirees on each July l' following a fiscal year in which the net investment return exceeds
the assumed rate of investment return and the Plan has experienced a cumulative gain.
GRS
Y. Deferred Retirement Option Plan
Eligibility: Plan members who have met one of the following criteria are eligible fox 0w
DROP-
(1) age 62 and 5 years of Credited Service, or
(2) age 55 and 25 years of Credited Service, or
(3) 30 years of Credited Service regardless of age.
Members must make a written election to participate in the DROP within the first 30 years
of employment.
Benefit: The member's Credited Service and FAMC are frozen upon entry into the DROP.
The monthly retirement benefit as described under Normal Retirement is calculated
based upon the frozen Credited Service and FAMC.
Maximum
DROP Period: 5 years
Interest
Credited: The member's DROP account is credited at an interest rate based upon the option
chosen by the member. Members must elect from 1 of the 3 following options:
1. Gain or loss at the same rate earned by the Plan, or
2. Guaranteed rate of 7%, or
3. A percentage of the DROP credited at the same rate earned by the Plan and
the remaining percentage credited with earnings at a guaranteed rate of 7%,
Normal Form
of Benefit: Options include a lump sum or an annuity.
COLA: In lieu of receiving a COLA, a supplemental benefit may be paid in years that
investment return exceeds the assumed rate of return. The amount that investment
return exceeds the assumed return will be divided equally among all participants.
The supplemental benefit will not be paid if the Plan has experienced cumulative
losses from all sources after October 1, 2001.
Z. Other Ancillary Benefits
There are no ancillary retirement type benefits not required by statutes but which might be deemed
a City of Boynton Beach Employees' Pension Plan liability if continued beyond the availability of
funding by the current funding source.
l 71X.
Fiduciary Roles of Your
Pension Professionals
Bonni S. Jensen
The Law Offices of Perry &
Jensen,LLC
400 Executive Center Drive,
Suite 207
West Palm Beach, FL 33401
Fiduciary Duty
■Fla. Stat 112.656(1) requires:
■Discharge of duties solely in
interest of participants and
beneficiaries
■For exclusive purpose of
— providing benefits to
participants & beneficiaries;
and
Fiduciary Duty
■Defraying reasonable
expenses of administering the
plan.
Prudent Man Standard
oFiduciary must act with care,
skill, prudence & diligence that
a prudent man would use in
similar circumstances.
EStandard codified in ERISA
Elf Fiduciary does not have
sufficient expertise, then
experts should be retained.
Pension Service Providers
■Actuary
■Attorney
■Auditor
■Custodian
■Investment Manager
■Performance Monitor
■Plan Administrator
Actuary
■Determine annual contribution
requirement
■Prepare cost studies regarding
impact of pension law changes
■Perform benefit calculations
_ ■Determine compliance with IRS
provisions especially limits on
benefit payments
Attorney
mProvide written and verbal lerl gal
opinions on:
■Plan document
■State Laws
■Federal Laws
—
oRepresent Board in litigation
mDraft Pension Plan document
(as Ordinance, Resolution or
Special Act)
Attorney continued
■Draft policies, procedures, and
forms
m Draft and/or review written
correspondence on behalf of
m Draft contracts with Service
providers
■Review insurance policies
Auditor
oPrepare an annual audit in
accordance with the
requirements of the Florida
Statute
EComplete the Annual Report
oProvide consulting services
regarding tax matters
Auditor continued
mCoordinate with other service
providers regarding other
annual plan reports and
necessary governmental filings
Custodian
■Hold property of the Trust.
■Collect all interest, dividends &
proceeds.
■Make investments and
payments at direction of the
Managers or the Trustees.
Custodian continued
mMake benefit payments and
annual 1099R filings
m P v. Fund expenses
mFile Class actions
Investment Manager
■Invests Plan assets
■Follows investment policy
guidelines
■Duty to comply
■If guidelines are too
restrictive, investment
manager should be under
duty to discuss with Board
Investment Manager
■Most investment manager's
earnings are asset based
■Votes Proxies
■Make trades on a " best
execution" basis
Performance Monitor
mHelp create IPG
mHelp select investment
managers
mProvide measurement tools to
analyze performance:
■On a Relative basis
■Within a universe
■Within a market environment
Performance Monitor
■Provide asset allocation studies
■Bring forward new investment
ideas
■Help to educate Trustees
— ■Help establish guidelines for
liquidity
Performance Monitor
mMonitor the investments to
make certain that they meet the
investment policy as set by the
Board.
Performance Monitor
■Provide a continuing overview
of the current investment
environment with comments on
the present investment strategy
and recent performance.
Plan Administrator
oPerforms all administrative
functions for Board
ols contact person with
participants
oSchedules meetings
oPrepare agenda and minutes
mHas working knowledge of Plan
Document
10
Plan Administrator
mMaintain Trustee term
information
mHelp create Board Policies
NObtain quotes for fiduciary
liability insurance and fidelity
bonding
mAssist in RFP process
Plan Administrator
mManage benefits and Fund
expenses
mAdminister Travel Policy
mAssist Active Members
oProcess Retirees
mAct as records custodian
Plan Administrator
oPrepare unaudited plan
financial statements
mMaintain Fund website
Contract Provisions
EFiduciary Acknowledgment
mScope of Duties
minsurance Provisions
■Fiduciary Liability
■Errors and Omissions
■Fidelity Bond
oGoverning Law
Contract Provisions
oVenue
mAttorney's Fees
m Indemnification
m287.133 Disclosure
—
ELimitation of Liability
Questions