The URL can be used to link to this page

Agenda 02-13-13 BOYNTON BEACH FIREFIGHTERS’ PENSION FUND QUARTERLY BOARD MEETING Wednesday, February 13, 2013 @ 9:00 AM Renaissance Commons Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 AGENDA I. CALL TO ORDER – Luke Henderson, Chairman I A) Congratulations to Matt Petty, Trustee, for another term on the Fire Pension Board. II. AGENDA APPROVAL - III. APPROVAL OF MINUTES –Quarterly meeting November 8, 2012 IV. FINANCIAL REPORTS: A). Bogdahn Consulting – John Thinnes, Consultant 1) InvestmentPerformance Review for Quarter12-31-2012 2) Acquisition of STW by Schroder US Holdings Inc. 3) ASB Allegiance Real Estate Fund 12-31-2012 Flash Report B) Davidson, Jamieson & Cristini, PL – Richard Cristini, CPA & Jeanine Bittinger, CPA – / Audit ReportFinancial Statements for PYE 9-30-2012. C) Gabriel Roeder Smith & Co – Pete Strong, Consultant & Actuary Actuarial Valuation for PYE 9-30-2012 D) Attorney Report – Adam Levinson 1) Four Year Terms for Trustees - Status ththth 2) 15 Annual Client Conference – March 10 – 13, 2013 3) Florida Supreme Court Upholds Prospective Changes to State Retirement Benefits. V. CORRESPONDENCE – 1) FPPTA Announcement – The Public Pension Institute Web Site 1-31-2013 VI. OLD BUSINESS – 1) Summary Plan Description – Review of updated SPD Dec 2012 and approval for distribution. VII. NEW BUSINESS : A.Invoices for review and approval: 1. STW Fixed Income Mgt – Qtry fee 3-31-13 - $7500.40 2 DSM Capital Partners LLC – Qtry fee 3-31-2013 - $15543.94 4. Bogdahn Group – Qtry fee 12-31-2012 - $8,375 5. Tegrit Administration – Qtry fee 12-31-2012 - $500 6. DGHM – Management fee 12-31-2012 - $12827.04 1 7. Klausner & Kaufman – Service Nov. 2012 - $1830.00 9. Ellen Schaffer –Annual Support Fee - $1650 and Programming Service $345 and $690. – $ 10 Anchor Capital Advisors – Quarterly fee - 2012 11. Davidson Jamieson & Cristini – Audit Progress - $5000.00 12. GRS Service Oct 2012 - $1142, Nov 2012 - $924 & Dec 2012 -$2777 13.Intercontinental- Management Quarterly fee 9-30-2012- withheld from dividend reinvestment plan. $8045.37 B) Renewal Fiduciary Liability Coverage/ Payment of Premium April 2013 C) Verification of Retirement Benefits – Thomas R Murphy VIII. PENSION ADMINISTRATOR’S REPORT: 1.Salem Trust Co. letter of 2-1-2013 – Service Enhancement— Direct deposit of retirement Plan benefits via ACH or Debit Card 2.Benefits as of 02-01-2013 IX. COMMENTS X. ADJOURNMENT Next Meeting Date – Thursday, May 9, 2013 @ 2:00PM – Renaissance Commons Executive Suites If you cannot attend, please call Barbara @ 561/739-7972. NOTICE F’PB IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE IREFIGHTERS ENSION OARD WITH RESPECT TO ANY MATTER ,/,,/ CONSIDERED AT THIS MEETING HESHE WILL NEED A RECORD OF THE PROCEEDINGS AND FOR SUCH PURPOSE HESHE MAY NEED TO , ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON .(..286.0105) WHICH THE APPEAL IS TO BE BASED FS THE CITY SHALL FURNISH APPROPRIATE AUXILIARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A ,, DISABILITY AN EQUAL OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE PROGRAM OR ACTIVITY CONDUCTED .CC’(561)742-6060- BY THE CITY PLEASE CONTACT ITY LERKS OFFICE AT LEAST TWENTYFOUR HOURS PRIOR TO THE PROGRAM OR . ACTIVITY IN ORDER FOR THE CITY TO REASONABLY ACCOMMODATE YOUR REQUEST TB(C).I HE OARD OMMITTEE MAY ONLY CONDUCT PUBLIC BUSINESS AFTER A QUORUM HAS BEEN ESTABLISHED F NO QUORUM IS CC ESTABLISHED WITHIN TWENTY MINUTES OF THE NOTICED START TIME OF THE MEETING THE ITY LERK OR DESIGNEE WILL SO NOTE .B THE FAILURE TO ESTABLISH A QUORUM AND THE MEETING SHALL BE CONCLUDED OARD MEMBERS MAY NOT PARTICIPATE FURTHER . EVEN WHEN PURPORTEDLY ACTING IN AN INFORMAL CAPACITY S:\CC\WP\JANET\FIREFIGHTERS' PENSION FUND.doc 2 POLICE & FIRE PENSION FUNDS OF Boynton Beach PENSION ADMINISTRATION MEMO TO: All Members of the FIREFIGHTERS' PENSION FUND FROM: Barbara La Due, Pension Administrator DATE: December 17, 2012 Subject: Trustee Election — Firefighters' Pension Board At the close of the nomination period, December 14, 2012, one nomination was received for the expiring trustee position. MATT PETTY's nomination was received for another term on the Fire Pension Board. In the absent of any other nominations, MATT PETTY will continue to service as a Trustee of the Plan for another term, December 2012 to December 2014. CONGRATULATIONS!!!! There being only one candidate the election process is not necessary. The Board's certification of this position will be on the next agenda. Thank you. r ii;v4 ,,e,9,..e____ ig —e7 — /Z MINUTES OF THE BOYNTON BEACH FIREFIGHTERS' PENSION FUND QUARTERLY MEETING, HELD ON THURSDAY, NOVEMBER 8, 2012 AT 2:00 PM IN RENAISSANCE COMMONS EXECUTIVE SUITES 1500 GATEWAY BLVD., SUITE 220, BOYNTON BEACH, FLORIDA PRESENT: Luke Henderson, Chair John Malvin, Board Counsel Matthew Petty Barbara LaDue, Pension Administrator Jonathan Raybuck Robert Taylor 1. CALL TO ORDER Chair Henderson called the meeting to order at 1 :53 p.m. 11. AGENDA APPROVAL Ms. LaDue advised she had additions to the Agenda. Under New Business, invoice amounts were filled in and one invoice added. Under Pension Administrators Report, add item #3. Motion Mr. Taylor moved to approve the agenda as amended. Mr. Petty seconded the motion that unanimously passed. 111. APPROVAL OF MINUTES — Quarterly meeting May 10, 2012 Motion Mr. Taylor moved to approve the minutes. Mr. Petty seconded the motion that unanimously passed. IV. FINANCIAL REPORTS A). Bogdahn Consulting — Dave West 1) Investment Performance Review for PYE & Quarter 9 -30 -2012 Dave West, Certified Financial Planner, Bogdahn Consulting, commented that it was a good news year. The actuarial rate of return had doubled. Equities were up tremendously and the altematives were up quite a bit. During the quarter, the new real estate fund was funded. The Princeton Managed Futures outperformed the benchmark Meeting Minutes Florida Firefighters' Pension Fund Boynton Beach, Florida November 8, 2012 although the first month was marginally down. He commented that after a year of fighting pessimism, the equity markets rallied in a huge way, based on the Federal stimulus that was utilized. There was the surprise QE3 announcement during the September quarter so that the Feds were buying 40 trillion dollars worth of mortgages every month indefinitely, until the economy turned around. Before that, the bond program to the Euro Zone was announced to get money flowing in Europe. Every quarter up until the last quarter, eamings were a surprise to the upside. Companies reported better earnings than was expected In summary, focusing on the one year, the average stock in the international market was up 14 %. The S &P 500 was up 30 %, bonds rallied, and treasury squeaked out 3 % but all the non - treasuries were up 10.8 %. Another big factor influencing managers in the portfolio, was a low quality rally with risk on, risk off activity. High yield was up 18.6% and two of the bond manager alternatives that were added were heavily invested in the areas so they also benefitted. STW grade portfolio was also up 10.5 %. Lower quality was the biggest item that drove the bond manager returns. During this period of time, interest rates continued to come down as the Fed continued to lower the rates and flood the markets with money. The year started with $50,292,820 There were contributions for the year totaling $5,439,000 and distributions totaled $4,253,000. Investment management fees that went out were $280,817. Other line item expenses were $309,132. Total combined return on investment was over $9 million. Although the benefit would be gradual, it was moving in the right direction. Total domestic equity finished in the 45 percentile, ahead of the benchmark. The combined portfolio received a huge boost from the global bonds that were added and ended in the top 7 percentile. The STW with the domestic fixed income portfolio outperformed about 75% and ended in the 79 percentile. Both value managers struggled. Anchor Capitol took a conservative, top -down approach as there was concern with volatility in the environment. As a result, they did not have any of the financials that rocketed back and there were no higher beta value stocks in the portfolio. Dalton, by default, buys low - leveraged companies and that was where the underperformance came from with these two companies. There was a brief discussion regarding the advantages of staying with these two companies. There was concern, however, of performance issues with Dalton and Mr. West would send correspondence to them upon direction from the Board. All in all, everything was solid and should be able to weather whatever was around the corner. There was discussion about the fiscal cliff. There was pessimistic news about Europe. Under the current administration, anyone who needed to take a capital gains deduction would take it in 2012. Dividend paying stocks were the worst performers, and there may be a change on how dividend income was taxed, as well. It would not affect this portfolio, but personal investors who were trying to avoid a capital gain event probably would not transact. Those that do need to transact between now and next year would probably be liquidating. Meeting Minutes Florida Firefighters' Pension Fund Boynton Beach, Florida November 8, 2012 2) Review Status ASB Capital Management — Statement of Account 9 -30 -12 Chair Henderson inquired where the account was funded from. Mr. West advised the capital call came very quickly. Intercontinental, like most of the other real estate managers, had a 90 -day notification requirement. When the capital call came in, he advised he contacted Intercontinental and inquired about the flexibility. They agreed to waive the 90 day notification and the wire was able to go out the same day and went to the other real estate manager. 3) Valuation Statement 8 -31 -12 Princeton Futures Fund (6800 Capital) Chair Henderson inquired the status of Princeton Futures and what would happen next quarter. Mr. West advised the Princeton Fund would be entirely a function of the various future markets trending or not. If equities happen to roll over, financial futures start to roll over and begin to trend down. Princeton would adjust, would short and would then adjust the portfolios to take the other positions, thus appreciating on their short positions to the extent the financial future was going down. There would have to be a trending event in order for this to occur. If there was a market as was last year, where nothing was trending, these strategies do not perform well. Mr. West provided an example of what could happen in this scenario. B) Attorney Report — John Malvern (for Adam Levinson) 1) Four -Year Terms for Trustees - Status Attorney Malvern indicated he understood the Board was trying to work with the City to pass some legislation. His understanding was that Attorney Levinson was still working with the City attorney's office and information was still pending. Hopefully, there would be more of an update by the next meeting. 2) Class Action Processing by Salem Trust — Various letters Attomey Malvern provided a summary of what had happened. In September, Salem Trust sent out a letter to all of its clients. They stated they would now outsource the class action services to a third party company based in Chicago and the Chicago company would charge a 20% fee. They phrased the letter in a way that seemed as if they were providing more benefit. The contract with Salem states they are obligated to perform the services, which was included in the fee already paid them. Attorney Malvern stated their office sent a letter to Salem Trust that indicated disapproval and that they could not change the agreement. A response was received from Salem Trust stating they were not going forward with changing the agreement. 3 Meeting Minutes Florida Firefighters' Pension Fund Boynton Beach, Florida November 8, 2012 3) Letter of 10 - - — LeRoy Collins Institute Sept. 2012 Report Attorney Malvern indicated there was a copy of the memo sent out to all clients m response to the most recent Collins Institute report included in the handouts The challenge, along with the methodology used by the Collins Institute, point out a series of flaws in their reasoning. This was more of an information only item. Leroy Collins Institute is associated with Florida State University and provides a yearly report They tend to publish various methodologies and pass them on as fact. V. CORRESPONDENCE 1) STW Guideline Exceptions Report as of 9 -30 -12 Mr. West indicated there was only one exception which was a percentage of a rating below AA -. He explained the corporate bonds were part of the result of numerous bank downgrades and the corporate bonds appreciated so much that it became a disproportionate amount as they were already pushing their limits Necessary adjustments would be made. VI. OLD BUSINESS 1) Summary Plan Description — Modifications or additions before update. (SPD dated Dec. 2008) Chair Henderson explained that the Summary Plan Description was due for a reprint and advised the investment manager list needed to be updated to add the 575 ad hoc benefit. If, after review by the Board members anything would need to be updated inform Ms. LaDue, VII. NEW BUSINESS A) Invoices for review and approval: r STW Fixed Income Mgt — Quarterly fee 12-31-2012-- $7,573.59 2 DSM Capital Partners LLC — Quarterly fee 12 -31 -2012 - $15,603.56 4 Bogdahn Group — Quarterly fee 09 -30 -2012 - $8,375 5 Tegrit Administration — Quarterly fee 09 -30 -2012 - $500 6 DGHM — Management fee 09 -30 -2012 - $12,838.18 7 Klausner & Kaufman — Service Aug /Sept/Oct 2012 - $7 110 and $930. 9 Exact (Macola) Annual Maintenance - $463.75 10 Anchor Capital Advisors — Quarterly fee — $19,958 05 11 FPPTA membership renewal for 2013 - $600 12 Micro Focus — Support line renewal - $133.61 4 Meeting Minutes Florida Firefighters' Pension Fund Boynton Beach, Florida November 8, 2012 13 Intercontinental - Management Quarterly fee 6 -30 -2012- $12,469.66 withheld from dividend reinvestment plan. 14. Ellen Schaffer — reprogramming fields for vacation and sick - $920. Motion Mr. Taylor moved to pay the bills as approved. Mr. Petty seconded the motion that unanimously passed. B) Steve Palmquist, GRS, Retirement — Letter of 10- 15 -12. Chair Henderson announced that after 40 years, Steve Palmquist was retiring. Pete Strong would be his replacement. C) Scheduled 2013 Fire Pension Board Meetings — review There were no objections to the 2013 meeting schedule. There was a suggestion made to change the February 14, 2013 meeting. The meeting was tentatively set for Wednesday, February 13, 2013 at 9:00 a.m. VIII. PENSION ADMINISTRATOR'S REPORT 1. Benefits as of 11 -30 -2012 Chair Henderson advised all of the "alive and well" statements had been received. One payment was stopped and the next day, the statement was received. 2. Article — "Dead -but Still Getting a Pension ". Chair Henderson stated this was an article Ms. LaDue distributed for information only. 3. Sample of vacation and sick accumulation that is maintained on each active firefighter for future use. Chair Henderson advised this was due to the state legislation that changed the sick and vacation accruals. The accruals cannot go into the average final compensation, but only what was earned to the end of the contract. A test run was performed to determine how to track for the future. IX. COMMENTS Chair Henderson advised that Mr. Petty's position was up for reelection and will post notices at the fire station if anyone chooses to run. Mr. Taylor submitted his application for reappointment. 5 Meeting Minutes Florida Firefighters' Pension Fund Boynton Beach, Florida November 8, 2012 X. ADJOURNMENT There being no further business to discuss, the meeting was adjourned at 2:49 p.m '. C ; Ellie Caruso Recording Secretary 6 p c Cm) 0 W x� H W ' c c "' O N N N O _ • E L- O O E a) 2 m ,L O 0 0 O U 0 > z C4 FEao C.7 C.7 r J E O L •... w 2 O N a ...- za, m coo - - ° x E N O O C o o N .e C E M -. v , — ao M Q L co r o o o V L Q N c p a V 7 M .0 - O c0 (O .— . C a) 0 O O W CL d (O 0 T I�/�1 w+ x o (0 o w L O _ _ / L 0 2 o o co L O O) 0 Q N o ., co co O c O o F,' O O r V o N 0 i ____ ca 0 o O o N V N V O � _ U _ I a' O o 0 Cl. O D. N O 1. 0 0 ` N — N ( O 0 0 O 3 1 O 0 o r o _ O 1 O r N (J) W c') 0 0 0 0- 0 0) T 0) V) O O (/) W ' 1 0 0 O. O d1 T (/) (/) 0 _ LL Y O O O c0 O 07 N a �] m D W Y 1 0 0 co o o) to d m m x Q In o o U N Q N °• H Q ( ° U N Q~ a F W 0 d_ ° - _ N O 1n 0 , co _ _ v U W S t7a 2 )) >>( i U w Q U m w ti 2 y y w D m -) o U N ) y 0 – N V) N C 0) E N 0 N 2 T T N a T Q CO E N N N H T T N ` co 0 U 2 W 0 0 y m f0 T co U 2 W Q' (0 Q' (0 f6 N c0 N 2 (n G! 7 (7%3 m 9 c7 i cc V 7 ,T, E ` m ('7 w a! co co co - cci cC a m m m m n m m m c ( c C cc_c a te ) E_c > c > - -w c o E, u) u) o x w u) co rn - «, co F- m ° rn -0 a a) a) >, c o 0 3 mQ 3u- -a c m co L u ) C a m U ° U C C1 O a) a) 0 C X O 0- V) C i V) p (v V) N 03 C + m . x w a) U a) LL c Q a3 E to a) - M (v a U ( 3 cv u c v U �� c ° L �0Y , _ 0i) ) -,--> a " Q - } ca ) _ -a a ` )a_ W c ° C W Q) m c a�x a),- ,co000`_'i _c a)0.= ,c m(ncE o `� a 0- d E - mc c.-° 3 v a) .= E _rnE>, (n .r a� ,� � cop o(n - o60>, c ,_, '° a) a) 43 i a) -E O N O a) a) N N C 0 c a) a) a) u) N (/) a a) C a) a) L L - d 5 a) T M a) > + O 3 d c 0 = • >, O a) O a L w O ` N 3 L C ( U ( ry O C a 1.- c p ° Q N (d N O L �, 3 O �, a) cv m u) a 0° u) a 1_ = O U N0 w a ` ) � - 0-aai_c 00 a) °)s -0° w z E E L as a) a) c E a) - - ca ° L N - a U C" 2 0 a L L a E O a) as N c 0 I- co —O IL', ca `C L N Zr) E 2 N L O C , 2 ` �0 O Y co > O N u) C a) N ?, ' a) a) c0 a) 0 0 co V) C cD = T a 0 N c a L 0 cv C 0 L ~ C m (v N " a) cv m> a) = k) CC N C T r 3 a c a ° ` ms c E co rn oac D c m o > -0:`�w �o ° m a co m c E E L 0 , E.0) o a)c0 .W Q C a)W E EL o a Cn E a) a C a) U ' L j C a O ) a) E a) X C L X a) c v p m C � U a) > o 0 v0- 3a) U a E rn -_ ` m -0rn Q a c c u >, s_ CO ` o o Q` 0)(r _ c >,04)....03 a a ) c al u) CD o m 3 C� o C p ; N m U c U E C (� a: L a) U O U a N 0 C T 3 m U X _a u) r 3 , — a) o,. E E c ° 0 m a w _ w E ci a) ° - () _ a) • — E x oo w a -0 c cn - N o co ° ` - L a) Y V) C 3 N C V E C C N y c_o 0 a, a N C . C O D ,- 0 N" E_c c° E o a) C, ,a 0" a) ' 0-c N rn 0 Z C c c a) v C o > 5(0 ¢ 3-c E_c .- o ° E O >, O 4- N = d C - w (v 0 a a) a) p ,. u) O Q +_ m U X O L 0 ` -O > .N u) m > 0 CI u) • L 2 7 a - - a) w c u) E C 'p m a ^ 7 u) _ c o- N N Q d C W >, E O a) - C = W 0" = 03 0 U c t O 0 N N_o - a a) C o L =-, c = 20° E 3 a> v 0 m ° ° = = a ° E 3 x v (`n a) E c -t o o ,., 0 =V p w_o �rn 2 eL Qa) ry _ � a)ch E co 0) a D Q O W E E a �o E m 3- 4-c u7 cv o cu o .r a) O E G E O a) 0 rn O a) a 1 C O U L U E a) L X u) a) N •t c ° 3 a) p -° a) p C ( a) . . p > () -c a) a l 7- -c a ��c c c w _c - i5 °c a)ci c u_ rn a To a) ° oc� �N m (n a > E a) E a) a)-° _c, Loa)a =--> E3 c•)ccN � E _ �, a , c> 0 > v a) (I) -C c ° ) 3Y � u) ° E u'L- - N o 0 p N C F__ O ,� O O O L Y O a) a (0 - a) u) - 0 10 ` O O -c a) U (�`a 1 c V Q `= = u) 0 (A ++ 3 co " a S C a) E - o Y c) a) O CO a) ` c a as c N,_ C c'v a) L 10) 23 o c ti E N O L N a) ' C a u- a) 3 m N a) 0) L ` O 0 ` ~ C> C N C N - a) a) C � C � _ - +L.. a) Cr 4- O E L fA U L O m 3 C> N N 6 m � O "N a)w o ° °E EO c _o a)N _ca) a)OLo�L2O 3 a) C n ° c a > c 0 v -C , - L -0 1_ > c � `� �N 0) -a °tea cs u) > a) 5 i1 2 a) U (u an d co _ a a) Eu_ (A O 0 m d• O a) O c 0 a) a) a) C p) O Q 0 C 0 L c w 2 N5Lk u (u zL ..� Q E.n L 3 ° Q.S o ca .Q c. 0 cn • • Co • ■ • c cn n CO 0 g n) - o m n) < a) O 2 K - I C7 m o O G) - 0 p� TI S S ;p (] a) 3 (n C a) o, (D o 0 = 3 - 3 (D O a) 0- ,,. (D o 0 (D fn °° a) c a) O 3 3 < 3 0 _ O n 0 _ 7, ° - -, 0 = O0 co c 0_ c n co < a co u) c 3' - o -, 5 (D 0 a) fn c O ,•, (D - 0 Q _ 3 - - 0 (D 3 N -O x 3 3- H9 0 3 < (D ` A• ° (D = 3 ( D R co -0 (D 3 v N ° 0 -0 a) N (D (D 3 N g c co o m CD c + - 3 v a) a) u) s< 5 = m < a) 0 0° `043 9_ v � 3 k N an m � 5 () (n 3 ° O 0 o Q c a ) , 0 O c O 3 'a N 0 O o (0 3 c cn N ( Q 0 C 0 N w (D o_ 0, (0 — a) CD — (D 0 7- % O � (D (D + (D -0 3 3 CO G) 3 (D a _ N co O ,•, O 0 W ,3. „� (D (D (D ,•' m c -p 3 Q x a) a) 0 3 O 0 N 3" -0 x° a °,. O a) a) .0 0 3 ° ^" O co 3 * 2 co (0 (D 0. 7 < - 1 (0 D 3 N ( "0 D o =+ O 0- (0 -, `� C C Q0) ( D o - A. 5:,) fD O N C Q 0 0 v, n 0 St .7 3 (D (fl - 0 5 (0 3- ( D ca 0 T I 3 cn a) (D -0 j_ O -1l 3 v 3 S a) 3 p (D (0 V) ° O a (D 0 0 3 N 3 N O 3 fD t 0 N c 3 a) 0 (D , N j 73 = , , 0 fD a) _o "a 0. 73 a) 5 3 5' , (A 3 (D (D -, n m � co � < (Dm QN R m C C0 0 3 v 5 a c ) a x — , * m v Ti D m CD �o �' v g c a < ) .n o < ( ( D N N co 0 w X COD .0 ° - 0 4 `< u) (D N (D fD (7) c • - 0 x ,-, 3 S cn N ( D ( n a C a) N 0 n N 3 n — C a) - p (D N O 7 ' ,7 ( ' N a) 3 c ( O n 0 (0 3 ' n N 0 fD ` G (D p. ° 3 o y, ° „ IN cn °- `< _, 3 3 (° n) c ,-). � 0 ° co (0 Via) x- __ 0 3 O ° m -, 0 0 O a) O 0 (D Q fD O a) O 0 D v o (D 3 p • a a) n 0 o_ o N 0 3 3 3 0 a C 3 N °+ 3 ( c 3' O 0 a) a) 0)) a a ) ) a) - o 0_= C 73 a) N O (Q v N x c Q) 0 cD a) N a 0,„ 3 (D 0 � • N O O c u D < cD 3 n N 3 3 0 N C cD N O N O v N 3 5 . O ui 3 0 * ,•, ,. — (D 0 CD 0 N + a) < C 3 — a (D -0 a) o a' v-0 v ° 7- 3 CD 3 ° ° �°' n� c ° fD'< � � a, ('' o� + fl 3 a � o 5- 8= ° x ° w ,. ° ° n v gN 5 a) 3 a) a) ° ° 3 rn w a) cQ -„o m u) m 3 ° v 0) = 0 T3 � � cD m 0 0 - ca. nN w �u —0 O c X o 3 Q v m o O 3 � u, <m � ° v o0) v w v m- 5 o 0 C7 0 a) 3 0 " (n — ( c D n) r► n O Q N c 3 � 6 —I ° cu O _ o (D o r. •0 o (p c 3 7 N 3 a) Q 0 - a c 0 O co ( N 3 3 (Dv � c0� 3- a v �N 3Ka m m * 3 cn o N �a3 ao a) � co 0 (0 a) 0 . 0 O ui 0 .-. (7 a 0. (n < (n CD N 0. 3 a) 0 co (D -� a) 5 Q (D -, -) A. u N a) ° a) c fD ( C- c-I a N a) Q N a) p n° ,. p cn - a; p. a 0_ O mil) =-0 N '0 0 CA 2 7 N X— O 1 X n 0_ O° N cD N o a) ,0 ,. a) t 3 a) O 09 3 ? co 0- 0 °< 0 N N 0 A- N `< c N 5 O 0 , a) C ° a) O a N (D a n a) ° oOc) 0 0- 7m Na) CO 3 o7, - =00 � to O O " a O a) < 3 (D (D O O _ 3 9, u) .� 7 O = "0 3 (D (D (D = O (D O O 3 Q (D 3' 3 << 3 (D 0. N a K N 0 a. a K ' co O N 0 a G. O W O o 0 o 0 a 0 0 0 0 0 0 oo 0 0 0 0 y0a 0 0 o 8 0 0 0 0 0 0 0 a y D, 0 0 0 0 0 0 o m D) 0 0 0 0 0 o 0 0 0 0 V D 0 0 0 0 0 0 O o 0 0 0 o 0 0 0 O o 0 o a o a * y o a o n v a ° � n °<' F v F n - F m c - (D C (D c f m C m c m c co f D c m c 0 S X CD X m 3 X ( 5 X fD r:.. ? X CD S X fD 7 X (D 3 X CD 0 1 1 1 1 • 0 0 W j c c N im m o a. m I m Z co c co (n O O 0 g 0 = o u 0 0 o 1 7 3 0 O n O o N (D A o co o X co 0 u) w m o = m .c - _ N _ _ c _� O V o m ( n Z , o z N 47 (D Z 4 ,r1� N ( y = a co a 0 w o N O (D VZ S N __ N o og m 8 o- m �� w o-4 A o 3 0 w v a - O 0 m . -, p O > N o ; 3 3 a , 3 • x �Z N(D re Cl +. S 0 o 0 C ON N O O C. d M -7-- o I� C• _ M o } ao CO .1 -- C N o } v * ,'3.' 0 C -a. E p _ o N N ° ' V V i[? ❑ N N O W N N N N N N y 0 o o y — CO Y 'a C = p p o o a o L r.. H : e .. O N - O a vs W a v--- CO — N • U e- ° w . N 1 G o N .L T o o -O a '- ^ O r N r O) a O 0 O O ( 0 _ ^ O a) O 0 O O o o a o - CO C` o O) ` CO N Lo E ° t 7 ff o - — o G 0 , ) -,- O O) o O 0 N ^ ") N N N ") Q. o 0 II o Is , , 0 0 • p 0 , p O 0 o f 0 O) a) o o - N 4— o N - CO ^ O N O d N N 0 ° 0) N en o - c o MI U u) N N CV 0 M 0 CG R 0 ( 0 0 l 0 0 0 0 0 0 0 ' 0 0 0 0 0 0 0 0 0 0 0 0 '„ U) CO V 0 00 CO N CO 0 0 CO CO CA CO CO 0 O r C N Cq N T N U 40 (0 >. f0 V) U N N t0 T N 0) O) co CA CI) N 0)) V) >, CI 0) t ,,c2) m N a to m °) _ -c O) m D m m m 5) C_� a) d Q U U 2 - c a) c fl 0 U O 2 r w `° 0 m f0 m ° c a) w m `m (0 c 0 a) D in t N g E v) t N ).- C E a) a) LL N E C N N a) LL N E E i F' $ o E 1 f- o 0 N _ O N U N O a) I.. U o C 1- O C s... o 0 a) ( h a) ,-3§, ki c a) Na ) >, O a) C o O 0 >, -C C .0 a) T — O -- . N' -c N 0) .c • N L C C w> 0 o 0 a -00 0 0 43° N L T ` M A (6 a C 0 . a U o co Q. -0 0 C (a 0 N N _c c O N >, N a c a) a) N N c•o ___a) N 2 O O 3 O- to c\ C O "-±. = p N 0 NCO 0 N N a) 0 - N N0 > -0 ' cn. - a) ,_ 0 N e c " C O C O • C-s C (0 .-• f0 u s - 0.- O �' + O O 0 c� O L O (6 0) U + C`-'•- EE N ` 0 0 N co O N .0 Q a— N U C O C c c -- 0 N \ N >+ a) V ') � x 2 a)` a� ° U a) o °'3. = g � w cn N � ° s c `n P as_ c o (.— o a) a �aC N ko may to � c uo) t° ac r... a) 0 U a) >, O . u ) rn > a) { = c Q. m 0 it N O CO ' • co 3 0 C N (0 ' us O N 0 o co E AD 2) „,,= a) -g,,, o c . a c 3 >, -0 (0 fl N a) 2 `m c u) Q�u� CO c N (0 -5 N N 0) 0 O— -C 4 _, b CA O a) U N a) a) C/1 -C U O l a c N 0 o o a W a a) N c "- ..--' = 3 N E 0 - t co C 0 0 C m 0 0) C (n .. Y 7 Q C O N N O a N L O O' C 2 d t o @ N O (O C Q 0 O a U O O __, p) a) a E c N 0 Q O O \° 0 O a U Q p 0 L_ , N C O a) a) T O O c ,. N O 0 0 0 0) N Q V C N O Q N N =? = US a) o L , O U 3 O C> a) .. E > @ / M1 L L C s._ -s- z a) O O _ •o C i+ a O C O N m > _ U N L O N a 0) Q - L a) (0 a N L .0 -0 (0 a s O U O - C C `- O N U O a) Q O N N N O N O O c c0 'c > 2 w O E O C O C O C a) N N "-- (p o c a) C > -C a) (0 0 3 N 0 a O N ( O N O a O O 2"c N O N 00 O E N= U p c O 9 ._ ►►��ff .c e - O U a a) O U N N U N O a) O N N 0 v N N N ` O a N a) s ►1..1 (0 o a ) Q a) (A :r . . _ N .4 a) 7) N f— CO O NCO N O O N = U z .. a) m as u) O C ` N 0 1..- w Q >, c N 0 a) a i O `- 3 O a N a 0 C a N -TA O) a (a U 'C a) r = > CA c a) co co 03 (/) O v t c N O O C C 0 3 c N _ C O ; iUL C E C T ) C0 a) a) o) (0 O O O :t' >, _ (0 a) ° 'N d j N 3 N = -C N N c a N Q O o c 0 f6 c a (a 0 C ) X ",-C C C o C )✓ 0 Ti) 1 O 0 a N U t E a ( a) a) a) a) t a) N A 0 Q N O N m O N 0 00(0(0(0(0 N (1O v a) N> a) .c - c a) N . c O 0 c a) (O O X c7 N p v 0 c LLQ'sa ›..0 Q U 00 49- .0 a 0a I– 3sa 1 --... _ >.. t_. - o a)N4.Q ,` ,..N >_ i > f c » > ƒ � __ m , , \ . ' A ' ' £ � \ ` / . K o - , § k o 7 \ ' ) § - £ ] m - 2 s \ } k ' ` ( \ \ \ - - . \ 2 § 3 $ . ?(S- » ° 1E1 @ o I 1 I co 2 e ) § s e $ 7 \ \ J \ 000000000V1 2 J z 2 3 \ \ z 3 \ \ \ 1100100000 IX \ m A ` 1110011110 5 co �— � o n n VA' ƒ _ \ } 11111 ' a Q . . o= f m . I 1i t f 2 co _ o � ° 2 � # O � § _ P- ] 2 J § q 2 Co \ § / § > _ / ., 11118 ° -, o) § ) � q E - § › i 2 } 0 g \ { i / CD - ; » 7 \ . . !I1 ' » o k & : _ \ m : 2 : : r+ - I 0E0000000a a 01E01E0111 i \ > E E � ) ) ) ( m _. _ ' ) , . ) il k . k ' k ' a $ A en 9 ., 9 9 o o Q m. tri / g § § ) m Q ` } - . o E cr k n ) J ) k § § 4. 0 r.3 ] §o■ \ ! Z � o i. 9 DI 3 ' I x m �� m 0- -1 D0 �� m e m x -, D (I) - - . cn N -. c- N • m -- 31 CD X o � :, g a ) ! n l �� °. 3m ° 1: )..., ohm �� i � D m '� ° " a - �� o �� cnm � m � m m N`< a � � I �, u) (15 " C � m ❑ cn vi . a> •rnv � O V m � ID o� m o m m a) N a => �' 0 � c .-� — a � m 0 �� a - nc_D 0 c N � ' a'v'� �o CL (D O O p N a C2 ,c 7 3 m o og c C (D ca p. 3 x O � 4 1 N cD fl1 cD tn coon" -"' 0) T :cog N co o cn °' m o'.* Fc_cp m m in � `° \ ;� =.vim �� a o @ � ° — o 4. o cb cn co ■ m m p cncc =� o m (7) o ooh � �3 C Nm ca m� ° m c. cc O.. 0 O R o (1) C p Q O 0 7 O v cD cQ `� " N 0 3 y Q 0 O O � � v A c 3 N N cD N °'v cn :::::: 3 °�° ��3� +m�u,3� m -- g� ` o� O °'� � o u) m � rn� �_ m 40 cD 0 O 3 p "� TI o 3 C 0 - 1 -p o N fD a fD fD N 3 43a r 1 — — � m ?� �3 � m o �o�m — XI CD co SD v v oc �� w m °� ? w' c ° a � m Q� �( m m.< v aa� m v, CA acn ° � �1 y H J m m n m m 3 r m m o m m Si 0 cu CD m m c c a m m c m o a 7 �' CCn y v 3 CD M C c cn n 0 d m 6 v m j j N N ,,pp C S T OD ��i ' CT OD U 1 CT N W A O 1» ° t l t l D) c � = a su N m O 1 ■ O O - , d 3 o D Pr CO 0 iN eJ • A A n CD a A rF N O' ` o A 0 o a ■ o o o. o N o Ut a 0) N i N CD c, a) a) o C O C O 0 o V 07 j e 0 c li _ O - a V -- V fD V • �D O 00 co A co " I 0 ' ii C LO 0 0 , cn D 0 0 ❑ .► 7C N ° o Ei W p r+ cn 0:I IN) 2 c m 0 ° - n N . 3 c 0 N co o 0 C �. — J n Ot �/ Ri ID 0 I > � I w K V .< 0 F� O �_.._ __� A O o .� C Z ° ° Nv a -a c 1 g -n x 0 0 5 M m 3 -c- g„ x 0 0 3 3 m 3 1 c 1 g T x o 0> E 3 o _ m 9 m O o n m ( o _ m 3 m O o n w cp cn o _ m 9 m 0 0 on cn N » A O f 0) 0 7 N m n d - W O = N 7 7 C N m — y .r 2 g N s N N C m m C> > N 0 -, (per g 0 , 7 5 5 V1 f0 m n 3 C C •N — m O 0 0 C C o n 0 C C c::, 3 v d 0 3 3 w N rn �' 3 o- v 0 3 3 0 m D �' 3 °» w 0 3 3 w H m 3 o c o m m N 3 o m m m m H 0 3 0( m m m m D C) c' m i n c 3 c m m v) g * c 1 m cn Cr m I 3 (n 0 0, ■ y 8 N y N m m m O W V ' N O V O O O W U) O N V ' (0 ' ' O O W A A? O _. O N CO -4 O 0 O O . O CC 01 A V co 0 W O (O 01 O O A A co O ° W O O W O t0 (O Co J CO 0 V O O V < 1 0 0 0 0 . 0 0 0 0 0 , 0 ...0°' 0 0 0 e o ,e'7' o 0 0 0 0 0 ° o 0 • 0 0 m o m La a El 1 A A 0 07 0 co co 0) -. O Co 'O 01 V A O 0 -• A co N V 0O N A 'O V Ut p N 0) -, A (O N CO N Co O O m i c{ 0) V A 0 O) O W O 0 it co A 0) A N — W (0 (0 T 0) 01 J co A -• W A A Co 0 0 . 0 , 0 0 0 0 0 o 71 0 0 0 0 0 0 0 0 ., 0 0 o , 0 c 0 0 . 0 0 0 0 A m m c c c 3 3 3 N N CO N .. m r W N m OD O A O 0) CO 0i O V O co O d V A (T CO O CO CO W V O N d V A O W co V co V W A z) 0) ., c 0 0 0 0 0 0 0 0 0 7) "It CO ° 'It -4 o ° c- 0 0 A 0 0 0 0 og 0 0 0 0 .1). CO 0 A a° i; m c c c 3 3 3 v 11Kxmo oovC)115KMM3 cn1 W X 0 o C) Qzv m Tz W p(n (i .0 0 * � cnDTy = 0 0 0 c CO N m 3• o o p: c g 0. N • c _ a O N o? d m o c m 9 o m m 9 v o 0 m c y c? o cr) O m c R- N O x N C N > m 7 N c = c N c m O (O '� = Co 7 @ O 0 C m m 'o (c o 2 v o 0 m m 0 m (� °� _ � i v w c >> — 0 3 m m 9 (° a �' 0 n T n rn bi.2 m m m n • c a al m w D c o w ° T w m m° n-< 3-,o m o o 0, a m j (° -p m (° m (1 ) ( n (o o. CA ( 0 Cr LS 0 n = 3 C) 0 C) O 0 0 C . C C 0 (/) .4 . 0 C m ;T)'. N CA N N N v 0 or 3 -I O O O O O O O O O-• -• N N CO Co CO CO Co CO (O N O N 0 rt O-• -. N CO W CT CO O N N CO CO 0) O-• N V O co O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0. 0 0 0 0 0 0 m 0 m m pU 0 A) N 3 0 0 O ," 0 0 0 0 0 0 0 0 0 0 0 0 0 -). --- N co CO A 0 1 V 0 0 0 0 0 0 0 0 0 0-- -+ N N N 0) O O O w 0, rD D ( 7 N N W? A (T O 0) co W N O O O V A O A N N? 0 0 41 cg V N ( O ( O 4,8 p �( o0 0 e 0 a� 0000000a°000 0 (O 000000 0 O — 00a0a ° a) 0) 00000 — 1 00 0 ( ° c a 0 = . —1 cS ' � 1 O( 0) -+ L O N ( p V N ■ co Ut W U( N O co W A N O) O O) " A "" co (p w- co co co co (O Ut co 0) co co O ' co A p D 0 / p W W O O 01 O O V O A (O J O Vt Ut O O O co O O O V O O pp N W W N W 0) J (O co O ()1 O co ° N C ( y e o 0 0 0 0 ° 0 0 0 0 0 0 0 0 0 0 0 W 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 Q • 0 90 7C v0r° H n 0 M ^' N A N A W O W N ( a? 1.3 W N A -• N N N Co N -+ XI N rF 1 • yr V co N V L'' O J 0) O A A (n A (O A c0 V O V (O J (r O (n V O 0 O (O 0 W O A' W N N N O 0) 1 0 /VI o C) O co o N O co O o co co o co A O O V 0 0n -+ O 0 (0 V A 0 O o (O (T V J CO O 01 N W,I A W cg O o W C ry CO 3 0 e o 0 0 0 ° 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ° o a o 0 ° 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 2 _ 0 7 N 7 N =' z - C V o ° N W C N 0 E - O C c E M N a7 o L N j 2 as > O N Fll I- W d 46 0 a-i — Y Y O - o 0 L L N N Q n d MS o .i12 t C r Z F- 0 CO o _ o 9_) F as --c: o rn o O c o — ° of o X 0 a) - --'': iii ,^ N N N C V C p O 0 as O - � N 0 V ' c d a) co ea_ 03 - o o C o E N G O ' O O o o e V e O L ois L o _ O � N o ,- O C O O ^ L co v a C r ..I t O -4 O c7 M O ). ea) O o n 47 CL Q> o N E L a o 8 L L N ca ca m o i V ° , ° m 47, Q Q CO - o a. w 0 co m ° v) a) Q Q 0 -o a) CD U) a) m U) m ° ► y Q m N m m Q a m N m m a ° < O ) C L N o as m r m 0) 4. E O = n Q o Q _ 0 Q 1)- > 0 0 N N O t 6 C ( 0 U € a' - m p o 0 1- ~' c-C O as U) L a) - o < D >, - >,D 0 LL() p"dL u) D C 7 c I.- _ L L '++ C . O C a) -:. 0 L= N o r 0 -C C c CD in c c o N u) 0 �. C L Q) -o L O y O C (0 Q) C L a) a co m O N 0 a cli - a H O a) W_c co as u) c L.s cn c o CO c c ID Q co a o . 2 O1 N .- a) m _c -0 c a -c F. u) a) Q C - 0 C ... 0 O c � L a cv o o as E � > , • ^ u) ` 0 0 T 0 0 0 0 � 4- 0 . ) L E L E L O 0 D W s V Q > 0 a) w o 0 > `- c = -c 0) O a` o io E O 0 0 0 o-0 u) L' 't @ 0 0 L (13 a - ' O O C M o u) N O) co U a. ° CO o L L . - p ro _ m c� o c E o y s ►.... N E 1.12 a O Q o j u x °- a) O 3 L o > U a) ° 0 � L M a) - L O> o L 0 -0 0 p ) a m N •-t O (�0 C _ • D_•- D) O o o • a) ° u) E co Y _ co Es • C L CA a a) N '' U) C ) N c0 a) E 61 r E U 7 Q Q C ' L U) o a o co o Q L O L Q) Q as (0 E Xi co - 0 0 0 0 a N 3 c N L c � O n N c D x a . c � 0 O N o al 0 D u `� ( Da X 0 0 0 io , o o 6 0 0 a) 70 (0 N N > co - O co .J c 13 co -d . - O d O a E . O L,- U) U) CO . O L C U) .U) 0 L C Q) C O O o c c 0 a > a) c0 0)O) a) c0 . O a O >, a L >, m a) o -p c E a O (o O co U C >, N ui c0 T co o O n U • m L _ 'T'y a +� O -SID O 0 O Q ..q.2 0 L a) E C . a) O M c T .0 C (0 O - (0 = L a ) ,n _0 L c C D -c f— ' C - 0 2 (0 L a) .Q O 2 E c > m 0 a) a) cn 0 2 O .-u) it n L 0 > i s co 0 u , co 0 0 a) >, -c 0 >, _ 0) O co -- a 7 c F2 > L . N U) 4) N cc) 3 0)�._ a aa) o o> D o c o_ 3 y 00_ N M o 0 Q-c c) 0 0 0 o >, O u) 0 6 L o 9--c N 3 C/) 0I 't ( 0) .c m O E () cr Dm a) " > ti o L 'u 3 > a (n u) 2 cM c (-I- >, coamL D2 ao n(ia u 3 - oc) > , - 0 (2 o a (' u) m co O O 0_ -c a) (3 Q (o N E .° �' - o ° . L a o o . co ru = m • N o , o 0 a) -0 -- C/) L_ T Q 0 O N D (0 U Q • N Z n Q L co c co O 0 c0 c Cn o c 0 ,._>, o 0 0 c io cn c0 > 70 D c0 0 o 0 (0 Hocnomco>,E 50carna u c iOE — _ �EOE> uo . • • • • ■ ■ • • 0 P M11. _ 33 -In) u) a 5co m N0 > N3� 3 * U 11 5.0 0 -I * a) m d)� • 0 0 3m on) > � •oF6��<o o e,,cnmvc - off a, 0 9 �in v �o no (D � m am 3 � N � � 6 0 cow a c m� m � c 0 m � m o a0 � o c r' 0 0 Do v 12,)2 •< g, o 7. 3 7 (D o c 0 -` m F N O in N N (D- 6- F( ((n o o_ a S • gi v ' 3= c 5 a) 5 `< < - 7 Q m v o D m (m o T,' OC a) N < < N (D * < p) ( (n o lD ) = (D (D (D O p N 7 c (n n ,_ 7 0 ( D (D 7 , • N (n ,-� 5 ,..< 5 C 7 (n D (n `< (n 7 x N C D < .- u) O 0 (D 7= O 0 `< ( -' a N 7 N 3 (D c0 O 0 a °- _ a O -a (D `< o N -n v v - O C N a n ( D co (D 3 5 . a _ co vii m C 7 m _ a Q 0° * m A W D v m m v m 3 0 O O 0 7 (D N 5 N v . 3 A N (D 0 (n O 3 3 (n N (D m (D C <' - 0 (0 ( m r (D 3 O S 3 l/) (/) () -.- O Q C N 3 p (D N O -' tU -' N N 0 L (D 0- 3 7 7 N O � a-2 n 3 � ( m v 3 N O D v (D N O N j C n.) < _ j a (D 3. O 3 (D O < - ( 0 O 0 o - cD a `< o (D N (D N (D 7-N 7 N (Q cD 0 Q CD O n ` `G (n N a a S a (D 7 .� (D C a zi (D ( D ( Q N o (D O (p `< . N � + (D .+ 0- o G (9 (n N 3 3 .•+ O D x 3 0. * . () < CO - 0 O C (D �< .. 0 m- (n (n 3 ) n) 3 i, * (D 0- o (D _ -0 n _ Q Curl, O fD ` 3 < n. v (D O fD O w 7 ' o (D v ;c ^) a m N " 3c o 57 0 D)o7o va) ?0 c - * u,, O wm( D0 iy 2 30 -0 ( in (nc3amO o� vC(0v - ` � 3 a0 0 w 3 m v N 0 3 (7) � Q .---h m v 3 0 �(D� �� m 0 3 m �� CI; CD 7.... aFd D) u) °. • � � COo c n v N _AD 0 (n D— a?, _,0 N x (D ,--� N `G . � _, 4) • CO CO 7 7- C 0 3 N (D '< 0 m 7 "o v W 7- n 7- O 0- O (D N _, 0 7 3 cr (D a 7 7 N O O C 7 0- 0 la) (D v � CD n a 5 ' 0 . 7 - o 0 (D ( CD 3 n) o 0 0)) cD 0 , O o 0 cr, cc) ( < D 3 - 0 ( 3 co I-- -0 v O 0- to (D. (° 00 O a a a N () _, 7 C 0--= CAD N (j 00 o _ R. (D N o 0 7* o a N S 3 (n N O� a)< (n cQ < 0 D) o 0 C 3 - v im , = Q 7 v) in' -, 5 (D a (-D 7 0 - 0 if 7 0 7 0 a) 0 0 7 03 7 7 v (D co 0 0 O 0 3 x ! w 3 3 .� D 3 n 7 N S 3 m X05' �m_ (nv m x _� m cu 0 . 3 < o c (n < , = 0 3 5 _a v c3o (n 5" 0 m am m 0. 0 - ( < D 7 O7.°`<< a) a) (D O . (n Cn - I & z� N a - -, Cen C7 CO . m • c < - 3 CD a) :r ( CD O3 3 ��o ° u;o o ( . q u (D ) r ; o .mm• - < (0 a) 3 R 0 m -0 o o ? °' -u) o � � °' 3 m m `n C D - CD 3( oc (7) 0 n l ) 0 k ( (D D 3 w t o p (D O 7. (n W (� . F3 3 T. 0 5 O 3 0 * s< 0 _ 6-0 n (D (D 0 v m 0 a (D 5 a (D S 0 (D .--1- 0 ) (D v m <' m v o N U 7 (D a (D (D a ) -i `< (D 9' o m (D -, u) O (D (D a ( Q (D a (n _ O (n 7 _,, - 0 CO 1 O O 0 — — N N CO () A A CT CT j O in O in O Cn O in O Cr O Cn O O O N N ca W A A ZJ O O O O O O O O O O O O O.. . f 1 O O 0 0 0 0 O O 0 O O 0 O O 0 O O 0 N O O O O O O 'c -I 7 O O CO N o C Q �, g ► 1 Q N I Il W o - - K W N o w N (D v a - ry m l O E3 Q. c ° ' O 3 O' N N O 7 u2 O ° ° 0 > a N O C . 1 cf 0 3 cu •< (D N n m 7C K rt v .< ■ c._ Fl; N N z 7 o m co O i ■ N 0-) 77 C. (D C _ N (D re. N N N N so- N N D (D O O C O N c co Q go L��1 ,‘ N O 1 H ` I w / O 1 `\ -i 7 2 (D S N 0) r ( M co 17�� ° M Z o ;0M ^ 0 - < 30 < �4 J ` r g ' N ` 1 O p 1:0 7 n � � x y N 2o Z N = ,I. Z : E u. • („)t E "' w (I) O sI� W O a1 27)7%i O Ln 0 O In C O a0 M 1� V O O D Q eh N N C O) tD E M y to w M O N c o O Lo •0 T N lC m N V 0 y N- 0) O (0 W 0) C N O V U O � QE a) ▪ L> N a) Q ❑ C T O U N 6 c > W a) c W m E N a) S U O O X m p LL N a) v) cu W E a) c o Q E c c a ) m N 0 O p c i% C9 Q m N ■ ■ ■ ■ Q is t- O O c"> Lti V � O O O '1"") O Q O N O m N c O y rn EL 7 r N N a0 O 7 m O a C" 1 O) Q) O) V O c .. i,- a0 O) t0 L0 (N M R N d O Q *6 'EL (11 N N a) a) 3 O 1) 6 W a) c a E m N c O X co O U LL _ N m W @ E a) c -a s c - c m E m x —° p 5 ii Co cc Q ■ • • • Q D • • • • • II ■ 0 � m � H D v 5 w O 0> _ 0 C (D < C7 -O 0 n 0 O 3 ] N - '� -I ( (D O O C r ] O T co f m ' 7 0 0 1 Q— y D R C/) ] = co — — m 4o 1 Q m < (D — ° C 0 m 7 o 0 v n O i 5 Z co 00- c i 5 N' N O -0 0 a S y N Q a O of N 3 CD x o (o m O m ° 0 C) a) � m m Co O (0 3 c (D N - N a C < m (D m 0 a 0 m - co O -J X O 3 D_ X m O O P N 7 O CO N "( N N N N W W CT O O V co co co vi a) C) N O N A (fl -+ A W W N F O G) CT 0 (P A O CO ( 01 W W fl V CT A cn A V 0 (D 02 V m O A A (D CO A A CT O CO (3) •" 4, 0 (O A O (T - co (D W O O W O A- A G N ] A N O (D CO W V -+ A -+ V A O Cn co - 0) CD Ni O A in W (T Ni co A A O A G 0 O O > 0 O O W W A Cn Cn Cn 0o - -- N W CT, 0 CO A W V -� 0 CO (p (0 -+ A -- (T 0 +, 0 > • • • • • ! • t 0 0) - 0 - ( • M D Q) D - o 3 N o CoCu o 3 - 0 0 E m CO *] 3 m o S 0 -1{0 ] 7 °—' -1 �' m 0 0 v r ] o T c 9 o m = 0 0 '. Q - D D m 0 0_ O �' c O m 7 o 0 0 - z ED 0 - 5 5 N 4) C) 0) N C 0 E o w N Q D- N N 3 N 3 ° x 0 m m O CD a o (0 ]-s a w CD c (o m - c m c "< = T < < N 0 c W x 0 3 D X << e chi X s ID O N 0 O N `< W Na N N W W W (n O O) V W CO - a) W O N A -, N "co W O Co N O A F W y A O) (T N O) W Ni N A CO O CO (0 ID • CO CO W N O CO A CO N A CO A O A W (D - co A O (0 A A (I1 O— N) O< A A 01 6) co 0) co Na A IV W Na co O 0) A W co A 01 co W N 01 A CO CO V 0 N N (D W 0 D CA CD 1°.--1 ai D D O = y O (T W W W A CT (T (b O O -71 N A n CO .'! O T -+ W Ni (T 0o CD V A A V A 01 (O (D O / ^ o _ 3 3 � 4 J^ a) 0 N ca °' 3 JD x • JD 0 74 11...11.111111111.1.11111111.10L IIIIII■ o >� K � 5 —I - 0 CI) U) o> o� > n W0C $ . 0 -n 0 =o - 0 7 CD T (D X ° o = p - t = o c c - co K 3. o m a R co Q. D D m o_ 3 0 2° Q 0 13 G7 m -5- z n cu 0 o m p Z n E 0 6 d o N 0 to - o O 0 m (D n) C Q r o < a 7 co "0 N o n w m m v n O rn a n m w o o m a a. CC < m m f V) Q m o CD a) Q o m m a rn o N C m N 6 0_ U N N 0 o X C> ca co 0_ c X o T a -, CD n n m m D X 0 co c rn W ' O < 0 C n o t 0") pp c w rn 3 D 0 —1 0 o m n u) o X x N c u p X x -0 3 X c c X 5 0 m m s N m m rn 3 111 o a D C 0 CO o' Co O o 3 m • o W • jr W W W W N CO CO 01 J W tT , 7 6 m O A W d7 N N O A - co N O W 0 6 t0 CO -, A 0) 0) - D) N 0 CO A Co N NJ 0 A N Co CO W IV A t0 O O A A Co A m ID -J A 0) - CO A OD - CO - CO N CO 0 -• C.J1 A y N O cn N O co W O O co N N A p) 0) Co Co A W Ni CO W A J 0 CO OD A 0) c O A O W N 0 o i 0 0 i r. O W W O U7 CT A al W N A O-. O CO Qo .t II O N W W J 0 j (T Cr) CO J A A A j , II o 0 0 o V • N A O 0 0 A O • • ( N 6) • (3) 2° O i O i — I d P�1 o o o // O co (St A 0 0 t71 W W (T A (r O O O tT e�i > 0 0 0 0 0 0 en VJ 0 0 0 0 0 0 0 e H �' co 0 O 0 W M r ^� L T 3 M , l O • > O m o O J �"! 7 N a o " N C r e I. CV b CO n N u) CO h r- O N A() V r r O '� 0 N u) co co CO N CO CO 0 1O r CO O) r 00 N N O • M o U2 ui . r - - . u7 CD t` { er M N (O M O) to v 0) a) 0 a. c 1.. r r .� 1.- E o 0 u • O Q 0 co CO 00 CO 0) tt e7 co co co N CO CO 0 n N ' e1+ 0 0 t0 eV V) N et 03 3 CD N r Co N r CO N 0 0 (0 C n co r O i- O 00 M M 10 r u) '4) et CO n 0) 0) 5E (A W 02 r CO et ) O ( ( 0 � e- co C Op O O C Q 0 O N C)) C 0 02 (7) 00 M N r 10 OD (O r r- O M 10 (D (D N u) v 1. t- co r 0) N )A N N N u) M N r r CO (.3 Q r (D e-- u) M n O 0 u) r 00 co O M O V N N O P. r CO u) r CO 0 10 u) 1O (D O (O CO 0 00 OD 00 O tit a Of vf r O O O 0c() W O M CO Of u) el' O 03 O N 10 r r .- r e-- N r e N N Q r O N ii ii t- M ( 40 C et O CO N O r 0) M M CO ' r 0) O u) N N N N a N N A u) 0 u) O et N O O N O O M C) M CO M CO r O O � ^ (D M et O M O co M CD N u) 0 O st Tr 4 02 10 O O N (O et et a O CO M et r ti V et et N O 03 0 v N N CC '- O r 00 0) 00 N N O (D (D CO (0 (O 0) 0) (D r 00 N 0 N N 0 u) M N r r CV CD co 0 0 0 ) N N t• 00 0 0 7- ( e- M OD M M CD et et O 0 0) 1 N r O O 0 e* 4 O O (O co O u) d O) 0) O ._ N r r r r r r M N r T- N r O N C 7 02 CA 0 O O) ' CO O Ti r O) M 0) e7 CO CO ' to O) CO CO N (O 0 u) t+ N 0 r 10 � n CO c0 ) (D CO CO 0) O (() N N et CO N CO (D CO N N N € 10 O M 0 n 46 ui C O (D O) (O (' 4 ( 0 ( 0 O O N '(t O O O CO O r 7 (D 0) et 4.. r` O CO O d' r N CO M 10 M r O O OD (+) (e) TF 0 O O (O CO CO M r - r o N 0 M N 0 u) M N r r ( Me 1 0 e et 0) r O 0) O) 1D r e4' 0 M CO O r 0 7 M ►r e N V N e co r 0 e d' N CO CO O (0) u) O) u) co 1 C N r r r r O N O. �{ _ co M h et ti V V 1C) O 0 O C am ) co M CO r N 0 et Of V CD O (D et et co (D r u) (D CD 0) O O _ 0 �^ co r (D u) v v (D co r) r) 0) Ti 0) 0) 0) r 0 ti r (O V V u) (D (O t` O) n t• 7 0) 0 u) O O r N CO CO CO O) 0) et N O N r r 6) et O O (D t` (O u7 (O OD 00 co O 00 N (D M N 4C) M N CO N r r ^, CO 'Cr V et CO O r ti (O CO 0) N M 0) M O N P.) 00 O) et !-- M et O 0) O) 0 O u) et O r 00 CO h N c 1D O r 0 0 0 0 e' V (D (D N CO O u) V CO u1 M 01■111 0 r r r r r N r r r ~4 N PV O N V) V N 0) CO O) O) O V ' O O N r n 'V r CO CO 0 N CO ❑ CO CO N 00 d' N 0 O N 1- O (D 1D OD (O e0' N O .- r O et u) O) O) O r N o) co O) co r o n �^ M CO V Ti OD O T co r O 0 e7 or Ti 0 N N f` N co `tt N N O) 0) O N O N O CO r O CO (() 0 O N CO CO (D V Tr co N O N co N r to (D O O ti n (6 u) M W O) (O O 00 N (D M M M CM N CO N r r X X X = cn w 0 a C7 co r� > 6 W C) C H C y Y _ W u! E N 1.1- c C/� w o 0 E2 o _� N X p U W d m C c 0 Pe'r Q Q— d A K E '0 m c A (6 'O (6 = 0 p LL N i 2 o W > c U x a. r N p N N In ri C 7. 0 lL O 26 to t, P NU O U 0 Cz d5 a iC� W C a E Q U - LC) 0 rn :) 0 C C U _ 0 0 o R c CL w W 0 O c 7 J B . c LL 0 L. F a O N -- O ct U C= c6 ? m n hh -- d L O EP (6 � c [D H 1-- 1 Q co > co Q o 2 ° ° u) u) 1-- d F- ° E co w n • c n N 3 3 c CO = Q Illirillinill"."1--- ) '+ D? O tD 3 0 4O 0 W 7 7 tD Q 11 0) n 6 r. S co C c co 0 7. al co co a .. _ w tD 0 y —4 O N C 7 Q 00) W N rn is A_ co CO W CO - 1,3 A W f 0 C) N O_ N { o O (T C.1 a 0 0 03 CO O t N N O a) A - O CO N al co N O N o O O Ja e o co A al p) -4 O w co CO G OD N N O) 03 CO 1 C 7 N O N o O O O c o O W 0 O CO N 0 N tp j V A ? A O H! V Ol N Co 0 . M N O_ N D N co o O N O e C O co O O D O 0 CO a G 1 w CO 0 co W 0 = OD O c c o 0 ci o tD _, c co O n '� 0 3 Q o 0 1 o 0 0 0 o e w a! O I ° o w- 0 j C 0 N C 3 N O. 0 1 C4 z E N ( CD CD fn p m E V d1 1• Q 0 N O O N co N ✓ _ Q y N N � r Q I N C O LL • 9 U O (p M � a7 O N E T O O � U_ O N W _ (o E O 0 CO • • O) O M u) E >' in 3 cr °o > w O N N - O C > O CO C C O (15 Q) O) Q C CO • O CO 00 O co N (n E G) O r C .o y r N U) Q (p X 0 i.= O r as O - O O O O O O O O O O O O O O O O O O O O O Q O O to O Lri O u O O O O O Lri O O ▪ O O1 O) co 00 r (O CO (0 V M M N N y ( %) UOI ;2OOfd 0 ( O ( - 0 1 -I o a cD o I St p v 0 m 0 A ( %) (D 4) 7 4) n C n Z (D 7 -• -- N) N W 0) A A 01 CT 0) 0) 0) (D (D , D 7 0- ( fl O (T O CT O (T O 01 O cT O Ui O � J _ O O O O O O O . O O O O O O O O (0 (D cD W A A (-T A OD O CO c0 O C ,, W -- CO O A O CO m . C „,. .n U1 � 5 ', N N J O (T O J A 7 N CO A 01 (T -% tX m ZIC 5 c CO –• N N W A --, o) W co (T co O _ T! O OD J N (o O x N O) CT O A c.n G � n O 3 co V K A O OD 0) O 3D 1 C) O C O k; co D w 0) w O w if V O) �I O) CO 3 CO 0) CO W O 44 (T L — 5 : l it,,,, , , 0 _ Iy N A Ut OD - CO N a: 'co v CO C A o CO C r:) m : „' Q iu 2:1 N Iii N D 'a 0 r1 = y J Ds O O - N O 01 S' �.�.1 -i D W °J '4 w°Dwo my ® O ru 0 O T W O D O N C Z NQ.7 Al 2 z _ _ 0 3 N 7 N 0) 00 0) m (D V O O N r I (0 r M 00 O N CO O M V M 1 1 - co O O N O er N 0 0 N Is 0 CO 10 00 CO at N O O N o _ r R C p r .- O V' O 0) O O r N O O O 00 r Nr h O m M 0) 4 - co M > N M 00 v v 00 V' v 40 r O O et 0) d' 11) N N 0 0 M 00 ei L 4- a) w- A h co a N N 0) 0) O N 0 N CO CO r CO M O r co et 0) (' M1 • 2 Y 0.) to O N CO M CO Q et (O N O N (+1 N r CO (D O V' M t0 U v to (O r CO to O O) O (0 O 00 N (0 M M to M N N M M O 2 r co N r r t0 MM c co 0 = " a a) O C 1 as c C C r to V N N O (O O et O 01 M 00 O h O c0 O O a r ` W O m (0 O O N v V' N. M co O) a O co N O CO V O i E n t0 -t r (n V N O et 10 N M 0) et h r C '5 y t0 r 00 V O to c0 O r (O O) (O (o O 7 O N- N CO ■ c t ., d 0) M N N N N CO et M O 0) a- P to t0 (o O 7 > a to O N N N N 0) d 0 re r as 0 (a y c a) a a CD M ' 1.0 t , N N _ _ t , 1 1 1 '1-1.0 r co''' "' r r (n o) CO N N 0 N (0 A Iy G r r CO CD O O ao N CO O O O 0 N N •r ( N r x W I a) 0) O O CO CO N. R Of 0) N E y O O (t) M 0 N. 10 10 N N N 0) 0) n a) 0 a V' 0) 00 CO CO 10 (l) 0) O) O N O fi Ni. (O (D M C 11 M M M M O CO 2 co C , t , , , , 11 1 t , , 111 111 . CO. CO O n n 7 W c0 C a O 1 co y O 4 c M M n NZ' ^ to O Z O) O C M O 0 0 M M 0) (0 M .1, 0 to O O O O 0) 0 - - to n co r r e- co r r N it j N h V CO V V - M O CO (f') M N N 0 to (-4 O) O r M n V t` t1) O O) O O) 0 N M r 0 co N V O N 1 V O) 0) CO V V M (0 r tl) CO CO O) O O O 0) V a) r co O r (D (4) V•c t (O M M O) V 0) O) O) r O e (O N- N d %- A r co V In (0 CO n 0) n r n t` co (0 in O co V (0 0 Y p O r N 0 (M CO 0) 0) V' N O N r a 0) V O a N 0) t- p t0 (0 r: (O (0 (D O O t0 O O N (0 M N N C) N N 0) r M N r ..- to o -o m c O X X t c 2 0 Q t u_ O X a C7 0 W a) c H N )o > c y �� co o 0LL c d s To m o E a) li °) 0 a rn r 5 y C E a c m ' a) W W> a) c o J N d N N a ) it co N 7 Q� 7 X O y x ' CO m y N ,- >> a o °� o 0 o x 0 0 � y c 0 '47 N @ O U ( (5 m C y 0 LL N H : 0 R cu 1?' o 0 U to m i z •o a) o Ti a) 0 W a s L1 a -2 m To rG 6 O Q - -a E .6 p) K E x a. o 0 o m c W 0 LL c v W D o c J c c LL 0 L I= 0 O a) IX 0 a) °-- 5 r c s o rn c V a o u .c c c O O C co N (n 0 y O O O a) O -- u) c co ' a) O ii F. I- < 0 > o H 2 1- H (n (n I- O H )- s a a U cc 2 m W K 73 C) D D F — I —I -0 —I W CO —1 —I O < O > —I —I "1 O c (D sD =. (n O O O O O sn O su su 3 0 O O 0 ° ' a to o m O G) - _ m p Z _ 1— su -° p m o O SN O m W o O 0 N O x O t o a D D p .a m W = O O w =< o a 3 O Sp " m (1' n 3 c 0. a 0 n w C) N O N -n n . 5 co ,. O ff ) O - op -0 • 0 y c x o O a < n 7! 3 N ( L2 D. T y ''n so m C) W X co O p X C C II = co -a n o = o. co Q * ) m m co .. . co T = m 3 0 (D 3 3 T (D O to `G , c "1 N fl co 1;0 - 1) O X su C X O. O 0 so m _ , 3 ( N N W N N W N co O O) co 00 co O rn V 01 (n O Al 10 - N A O A A (O s s IV O N A - CO (0 0) CJ 03 N s O 0 A- o O O) A 00 O (n - -.1 01 (O V s V V CO (O CD 0) CT A A 0) N V O) A O s -. co co co A CO G1 4/ 0) O) A A 0) O) s 00 s (O A 10 O O O CD 0) O) 01 s O) W A A 0) CO - CO A 1O A O y co A N 00 O s -- W V 0 (0 0 (O 0 (n (j) A A A A V i N C O CO N CT 0 N N (W (n 00 A 0 CJ s A. --• N - N : a - 31 - W ' s .4 7 Z V (n . V V co CD U1 O 0) 01 n co tD j 0) j Co.) (•) N . 1 . 1 . 1 . 1 s s . . . . . . . . 0 A 0.) O 3 O co O -+ W W O CO V V V co - N O (O co C CO ▪ — V in V v O W Cn 0 0 at A . s . I I . I . I . A A A A. CO 00 0 0 O 7 CI) co CI s to .� O b �, o op c V V 01 (n 0 CID . Co . ■ . . ■ . . . 1 . . . . . ■ . 0) N 3 m W W 0 W ) V V J (n - N O ( ( ( CO N N N In N N O) ao O A (O (D fD V CO CD V V V O G1 (n O O co 3 N , . . (O ID . . . . A A A . . A . CO 00 O O co 3 m T x W N V :a N 0 N O = O O 00 N Cb O O 0) O) V s s 3 NJ " - C ▪ W J1 s , . . . . s 0 N N . . 00) . W 0) A A (D 0 N 01 XI O m () 0 CT 0 5 73 ( 0 01 0) (71 - V s co O CO A CO N N N N i W Ili 0) •* = s 0) N V O A co C11 co co 0) s 0o 00 (n O A CO s O) ! C s S1 j \ A in V V A (O W N in A O N A A A In s A O) V 3 7 N \l A • A a s O N Co O A (O W W V A A N O CO A V V s s CO O op O V CA CO W O O A (P Of to N N A O s O O 0 O O+ O N O -1 �.�y y W = O C) s11 T s 3 so D) s ,,I) W co N N W co W W co N (b O O) CO CO W N O V 0) 01 N 3 ° 0) W A O 0) O) s N W N O N G) A A W W Cn N O U1 W S d (0 A O) :o, (n W (10 s O) CO N O N 0 CO (D N N A aD V V s , r "7 y. A CO W CD N N 01 A CO A 0 O s 0) A A CO A s A CO W / (O W CO A V A s OD - co OD - co N s O (O t0 - co A O s s co 0 y i O O 9 N 01 s 0 s N A O) 00 O W O V N O O N A O N CO CO - - n W A W 01 00 N 0 (b W s A V s N 0 0 A 0) CO (O 00 CO N C Z N C N w - c 1 z I �- - Q O d Q O O 1••• Is. O 1.- O r I� `,/ -I `/ I- E C N N 0 0 0 0 0 N O y • ` O O O O O O O O 1- O e- 0 O 0 O O M • w O 0 e- r r e - T- O N O V co a ..J co co n v N <o rn C O d7 <O M Of M M N.-- CO CO r- CO CO 9 G d N 0 e- O R 0 1)) O O 0 O) 0) O O CO V 0 1- CO 00 e- oD CO N O) CO ID M O (0 CO O. CO O 0- O O 10 O O N r a N (0 O et N,- N a CO O N O CO N O CO V Co M V O a V O O e- O N O .- '- O CO M O V CO 1!) O CO (0 10 0 CO co O co O O3 L R O V e- O F.- N W R h •� Q' CO CO (0 CO O) CO Col N- co 0) O O d' U Lo _ — h 0- r._ V M O) 0) M M V .- co N 0) CO N 10 CO CO 0) CM M O M 4 0) - O N O I- O M CO 0) 0) 10 O O h 0 CO O a- O CO 0) CO O M O C O e- CO 7 N CO 7 co O O 7 O N 7 ti co V V 10 O O O IO O O (fl Z O Z O i O O O a O O O M I- O CO N CO N d' N h a ` V 0) CO rr v re } M a- I) CO V 0) M N e• N O 0) M 0) O O 0) 0) 0) N r N a N 0 0) Q CO < v- 1 LO N s LO N I - O N N O a O O N O Of N CO 0) N O V I� ti 0 0 0) N 0) A 0) O O) co 10 0) .- O r- O N V co (0 O O 10 16 O O (0 Z O Z O O CO 1O O 1'1 V .0 O O co O to (O ,- CO . N r - v - - �, m IX } N 1- O V r r e- V CO O N N N CO N CO CO O CO N- O CI C') O O 10 O O N (a* CO 0 0) M O 0) 0 CO CO 0) V 10 C) N O N N CO - (0 0) N CO (0 N CO O N N O N N O N (0 Co O 4 CO ,- O O) 0- N t` co V V V (0 V r O 1Cj V r- 1---- O N CO �) O ti CO (0 O N IO (0 0) LL n - CO O 0) 10 N CO V N O I0 0) O 0) 1 CO CO O 10 CD 0) N-- N 0) V C) CO 0 O CO I a CO N e• N CO ,- CO 0) O V N N N' a N V M V CO a- O - O 1- e- .-- O 0 0 0 10 O 9 Cfl e- O- O O O O O M O C) O) ID CO Cfl CO CO CO . 1- N CO O ` O 10 O N I� v I- CO d' l- a P () 0 0) O N (fl N 1f) h- ,- 0) CO 0) N- (0 O O 1O CO 0) I" N 0) r V' m M CO O 1P) M I. a CO N e- N M O 0) O V N N V a CV - V C) V 0,- m ` -,- O e- ,- O ,- r- O O O O 1O O O CO (c- O �- O O O O O C) O CO .- I a a i0 co d a) N 2 a a _ ill (0 LL d a U `m a) a co Q x c CO a a u) a) n C a3 U_ a) v "O K C y LL o Y N 1 U c o a 0 + T a CO a) n O 2 Lu Q O 2 -o 75 + () O a) m a) u_ U N d x co 2 N W 2 T 0 O O 0) a) LL O LL al I- U Q a- U ip E E m i . N a a . N 0 C) 0 U E Q a) C LL >, ' = U o Q O O o co it' CL 7 0 W LL1 N N Y 0 t 0 T >, I ( Q w W m m a x as 'O ( L j -, t O to 0 v) W C a 0 a) LL 2 N c w cn O 0 eL O Co N d y O O T) a d V ca O a 0 a E V 'a J a) m O. Z a a co w w in U +-I i0 O C : + in a) LL j a 0 a a) d Z.,' - a) N E a) fl N c d C c c c= 7 o c Q N x - £ - o 7 L L 0 , LL 0 Q Q W a) O CI 0 (n K LL (n O a, (n , a) _ a Q . LL m LL m a) a w m m D m E LL a w D m D (7 Q a) 0 - E 2 0 m o "- o o 2 2 0 2 .3 o w 2 o o 0 w O O H 0 o H 0 Q O 0 O H O H O 1- a O F- O O m i 0 H 1- 1- 1- 1- 1- 1- 1- c cc m 3 0 _ < - 0 _ > 0 o O C po 0, o X c g 2 c c o - 5 m m C m N co m U (o C m N J C m N o c u - co .. � CD CI) m Q° - D co , Lk' J J o J = a m= o n . m D 0 m— n ,'1,-) m Q0 v o <° o ° (n D o o C) > m o (7 m m o n ° o w ° 0 o o o o a c v m o 5 .0 G7 ° Q' x Q a G v - o « ..' m E v c v o X G c G 3 _ _ CD G� ? - m J- CD o m m O 0 C a p - n J Q Q C ' m Q w m (D - m (D - m x x N a - 0 (1) 3 x CD C C `G n < - - o o m m o_ Q X 1 0 c i c DJ m X > > X 0 C) co CU N > m _ a 0 m co Q v v 3 E o N co N Q p 0) 0 0 N it G1 U ID n Cr O 01 O O O L O O O O O N O N- - O m A 0 CO CO 0) O () Ca A 0 (a 0) N V 0) O N A 0) N f° V (fl CO (0 N A N CO CO 0 CO CO 01 -, 01 0) 01 0 U) (P m N -1 73 O V CO Ca O V CO V 0) O O 01 01 O O- O O O o O N- - 0 N -+ --, O A 0 CO CO 0) CO 0) W A 0 (a 0) N V 0) O N A 0) N -1 (O a) (O N A N CO CO 0 (b CO 01 - • (J) 0) 01 0 (J1 01 T 0 O) C O A V O) CO CD CO 0) V CO CA O V CO V O N f - N V N V CO (T - 0) 01 - (T O 0) - (71 (31 CO V CO 01 (a V 0) N N O N 0) N N (Jt A O CO V N 01 N V CO U) 0) Ca 0) N CO O 0) O) N V CO O - , V (0 01 0) V CO 01 0) M U1 N 01 v N C W CO W A V Ca CO O O 00 (a O A 0) 0 - 0) -> - A 000 0 0 N O CO 0 0 0 CO CO N N 0) N 0.) 01 (a -, CO V -, CO CO 0 - CO CO V CD 0) 0) CO N O (J1 01 01 N V 01 0) -, N - Ca CT N V Ca XI A O W A CO A N 01 O CO O CO O CO A Z C Z N 0.) W Z - p er N Z 0 Z N Z O Z 0 O U1 N 0 0) CT) 0) 0) 0) Co N D CO D N D N D N 0) 0) D (a D D (a D cyl 0 73 O is W A - 03 OD 3 N a) O O ) O ()1 O LT) CT (a - -, A 0) - O -, - (a -, (a N Ca 0 (a A 0) CA V V O V 0) 0 0 (71 A - V V O -, N V O 5 A O co CO 10 (0 V (O 01 (J) O (1 V (T CO (a V A CO Ca o CD CD '0 O 1 � A A N-, A CO - , CO ) A A 0 3 C) 0 0 O n O C _, N co o co o 0 -I ed = o 0 0 0 0 0 0) rn N° 0 N° CO 0 CO m Cr O m CO CO P:J m _et w 0> Dy , � Naa r ■Ilow• w 'Q z , �N x o I T re • �M x = n--- d Q C. m , 2 2 yQ O O - E - N N N N y O •as V O O O O � L d . co co O — O 0 N. d O V N E Q c co (1/4,..._....." G c0 N Lo CD N CO O 0. t w O c co N N 0) CO 0) - CO CO LO 00 00 0 LC) Cc) CO d 0) CD CO .- N CO N N O I� LO CO u) -- co co (0 (0 O CO (O I-- - CO O Cr) ( V LC) r L N CO CO CD L CO -- Q LC) O ce U >- N 0) �) °v Cr) CO o CCD v < CO Q° < 0 Q° (0 (0 O I- (0('4(0- (0(0(0(0 r .- LC) O Z Lo Z u - ) Z in Z Co O N N CD f-- CO CO } M 1 v N N N- co O 0)° CO v < CV- 0) Q CO Q 0) CO LC) O LO CO 00 N CD O Z if) Z CD Z lf) Z Lo 1 M Y 'Cr CD c0 00 00 t c0 0) LO 'Cr N LO LC) O N N LO (D 0) T- 0) CO O 0) N f- LO - N 0) LO if) C) .- V in co — u) O V V' O N. (o V .- r I CV — N CO r Lo to CI >.• LL O O0 N 0 0 0) Cr) c0 c0 V (7) co V (..) CT) N V 4) - CO V CO CO C) t7 .- 00 V' (0 .- CO V c0 T- O 0 O 0 O 0 0 0 0 N O (0 7 - 0) O V .-- CO r CO CO CO O) xi' 6) Cr l— a O 0) N O 0 0) 0) CO CD V 0) C0 V CO 0) N V m CO c0 V' CO CD C) V .- CO V M .- c0 V co .- m O 0 0 0 0 0 0 0 0 N O (0 el O V — m N O N t N tn 1 P. d m 1 0 0 co X x E C 0 N o a m - 0 0 m a c cc x > U - O _O X y C Y 0 N + r Q (6 c6 c6 ca CJ) d N CI. 0) m a N m - Q) N 2 0 O C O O N o c!) Z LL T D 0 LL m 2 m 2 O o N E 00 N LL -CD N c E @ @ O m C O U p 0 s ! C N E - 2 T £ U m O C m O a) u '° a - C N .a E pp O H z N u N c T CV c6 T N N X U (n c N J x � J x o TS -0 N N = LL = LL LL U O v c D U I v m N .= N O N 0 > _ '. °- . x L L c 0 m a) LL a) o ° 2 a _ o a ci) m _ w ~ U a OU o n o cu 0 o co momo a m o � F ° - m0 _ 00 5 m 1 > F 73 ,, co 7 C Z W C Z CD co o CD a o C CD 71 Z7 C cD O m CD m g m m 0 m= M m 7 = m m = y a cDD co m - a ` m - O O. co D co 0m - C Z Q n i c> 7D m — m m Q Q a o < O < m tv 0 v m Co 0 CD gni 71 m 7) co CD m v m m (1) cn E Cv z n) a cn cn m + + c + + N 11 -n `,'-o" — E x (D CD Q Q N E. 0) J 7 fD a N - o N m 3 O L N N O N N N CO N 01 o) Co Q) O) 01 co co O) 01 0 W W m C7) Co CO J N) N A J Co N -+ 0 0 -- 1 71 o) W O 0 O— N N O N N N CO N o) Co 4) in 01 W W 6) CP Co W CO (0 Cfl CO J N NJ A J Co N m v a) w o) 0 N W Z L Z N Z O Z N W O A ■ D D C J 7t > CO > 0', o - CO 73 co 00 CZ 0 co rn Z o Z n Z A Z u, Z A Z D_. D a D ' 53 , D a D c D to X rn at 0 0 Z-s Z Z f Z Z Z D co D w co D o D w co D o D c XI XI o 3 go su 0) O W W N O N N CO W 01 N CD 0) Co N 01 W (...J 0) w 0 A A 3 0) N O) J N N A U) O (0 Co C) CD CD a ' o W � Cr. 3 o w o 3 CI) w� su 0 0 � 1.r co o A G —I W S o 0 0 O T `° /�\ o 0 0 c -I 3 co so (�) N N o CD 5 G t al iO "' c C Z CO 3 3 N a 0 N 12 N r�" L C O • M 0 ON (rh��CM) • 0 O ~ w co CD N CO CD CD N CO (0 << <10<10 Q CO < CO w a 0) Q CO Q CO LO Q CO M < CC) V �/ cu 0 N Z Z Z Z Z Z Z Z Z Z Z Z ... o E 10 tp N 10 CO N O „„,m O r M M M M M N >- a) - '- c MM 0 Q ^ N p v 00 CV CO v Iv n LO CO LL 0 a 0 m a N (1/4 C 0 N O N M r--- V CO < N< Q 01 < M Q co Q Q _ Q O Q < CO Q_ _ Q V a> M N I M M V O OJ N M CO M 1 M O V E N N O N N O V' Z co Z Z Z r Z Z Z Z Z Z �� Z Z E r r r .- _ _ - �- N N O d ,- rn of re) u� v n r� m • O. G co O cc 1n CO 01 CO CO V ttO 0) > NON .t+ V O• 10 0) CO 10 0) CD ID 0) N r at ti 0- CO 0 co r CO M N O) M M N 0) CO < O < 0- CO 0) CO r O CO r 0 I t0 O CO •r r co CO N < - O 10 CO CO 00 N t0 10 W 10 CO r-- 0 N t0 N V t0 N V co 0 M M ( 4 - N M O) O O <- O M N rM O M N N Z Z N CO r r N N N N N C? M M E 0 ✓ O. co-4 h c) N; mi. O Ch 03 CO 0 0 LO C fl . (D CO V ` W M 0) .f) 0 0 N O N V ~ O. CO CO O 10 40 O CO 0 V CO t0 CO ,- n O 0- O 0) O) O O 0) 0) O N Q (fl < V N M LO h 40 N N h CD O N < - < - CV CO CO CD CO N < - CO N . - (0 co V o 0 O O O 0 0 0- 14 R co 00 CD (NI V 4 co co M a) V' ,- M D7 V N Z co Z co r r • c n 0) a Ch u) 0 0 0o v co 11) r too N 'Cr 00 CO LO CO CO 0) o ? NON U y CO 1` t` 0- O CO r N 0) CO CO N 0) N C' N M 10 co r V 0 CD r O < N < CO O 0 CO O 00 C") CD M 0) 00 LO 0 0) ,- N t0 CD , - N N I` V N N r V CV N 0) O 0/0 0) 0) O 0) r 0) - M 0 N O N V N C[) 10 0- O CO 00 1- O O) Z CD Z r r r O r V — O 00 M O) 0) , r r N T CO In W N V • a t0 CO t0 CO .- M 0) 0 C 10 CO CO M CO CU C0 0 CO (fl O c0 10 L0 Q of < co N CD V '- r V 0 N CO I-- O 0) CO CO 00 N (D CO O CD < - CO CO to r N N V 'Cr 0 N O (V CO O 04 N O M s - O N viol-- r CO M co M CO CO Z V Z <- N r ✓ N co V .7 M C tD CO 0)) CD CO r r .... - .... - .... .. NON ... Q. t0 N 0- M N 0) CO t") d ,- 10 O CO co N 0 - 10 0- M N r CO 0- O 1. O r 0) O 0 CO CO V at CO CO 0) O 0 N M CO CO V N. CO 0- CO CO - r CD n CO V t0 W- h oO O 1 4 (D N h O M C0 t0 V ----r 10 Cf) M t0 t0 CO O (fl Q Lo 0) 0- r r N N N M N r e- 1 0) r M CD n CO CD N CO .. LO CO 1 ID CD CD N I� 10 I, CD � H LL r• CD 0 r O LC) N CD V N 10 r 0) 00 0) 1-- att CO CO O 10 CD 0) 0- N 0) ,- V a) e) CO O 10 co - r CO N r N CO r- CO 0) O V t0 N N V a N V M V CO < - r 0 a- r <- O 0 0 CD ,- 0 CO O (fl r 0 O O O O ID M O M S ii a i c m t CO N a CU g c m @ W d 73 U to a) 0 + C co Q x 7 LL N - - m CC a 2 a) c - v ' Cr) T LL 0 0 C N O LL 7 U T c (l) ca 1 >- 0 W Q 0 2 a 10 a) Co ✓ N LL U 2 Co cL x (0 2 ro N T U O c 0 0) N LL O` LL m LL 0 + ° U EE E a, CO a om a Q LL m 1.) d w T m U E o 1 LL Y . 3 0 U ° o c 0 o E 0 E ° 3 W W LL ° ° , c o ° N o > H � H o Cr W W as 2 E o -5 LL LL m d ° D °' O U Q n C N c a m cm , 0 0 Z a C7 a d d o W co o o o c p a) co a o LL J E a > a CU a) .' '. CU CD N - C a) (E 'O N N E O) N m c el.) 0 c c ° c 0 ° U - n U E O U Q t_ N U c y x U- E E O U m Q I0 U @ N c c c c d o c X _ c a) V) O 2 a) _ a 1. LL N 3 LL lU Q Cr W O 0 N (� .... LL O [� O❑ Q. LL (0 1) LL m a) a. W @ a) ❑ @ a� m a) LL a a) D ❑ c$ o Q a� C5 ° E or oF- 75-6 a c1- o- o1-o- o o1-o- 002 o 1- f- 1- F- r t- 1- 1- CC 2. K 3 0 _ < _ 0 — > o 2. O o p C Zl O 3 O °? D 0 3 L,"' C m N (n m e C m N C m N o (9 (u m — (Q .. o m Sp p T w m m y n m n z == m � . O a — o = D n cn o v m (D z 7 v 0 0 0 ° cn D o o n D m o a C7 m j Z d O = CU ° m m ° °�' m a n ° ° m °1 ° c m w o m .0 G� Q x a - a < - o < < (u CU m CD J c L) O 4 ° g o x x m m m m m 0 `G ' a) Q x e 9 (D C — 0 ° s x c x C x ` o ° m m 0 < % m X 4 c 0 m . � °1 01 > > 0 X CI + n - y -n n, + m co m ?� CZ (Z c N m 0 Q — v 0) 0 = Q 0 0 m m a m 0 N N O O Ui (J, 0 0 L 0 O O O O N O N O FS A O CO 03 O (fl W W A 0 W W N V 0) O N A 0) N -4 CD CO CO N A N CO W O N 03 01 — CT (3) (T co CT U, T - v t 6) c0 6) A J 0) co 6) co W V CO W O J CO V O N N W N W N N j N N A A O V 0) CO (T CO O O co V CO N V J W -4 0) W 0 A A O) O N N CO V V O N J 0 O CO CI) O { V J J A J CO (0 Co W O CO 0 J CT OD co (b CT V 0 O O _, ,-- - -.• -• J J Co A (O A A N -. N — W 0o N A W O co O -• O -, CO ■ ( T -, CT N CO CA O (T 0 CO Cr) (T N O) J 0) co — _, (o CO N N A W CO N 0) CD CT 0) 03 A N O CO N — (T A (O N N N A N CO N - _ O ° 0 NI N V N V IV — O (0 0) � _ i .s W -+ CO N 0) N O N Co -1 0 CT N A N A N -4 _, _, (0 0 0 0 O CO CO V O W CO N e IV — 0) CT N CO 0) A (0 O- • V (.W — A J (n) — A N 0 W N A N -4 G) (T (0 0) O 0) 0) CT —, 0) 0) CST N (T -4 0 DJ ° 0 0 CO W OO A A — W j A -• O O CI CT O O OD ■ - Z W Z W Z"" Z ( � O 6) O) W Z O Z W z O Z CO O co OJ O co CO CO CO A J A J CD O > O > CO > CT > J --> o CO > (o > CO > (0 > C 0 m. 0 ° o A W N - C O 0 0 0 00 c O A A O O C) 0 3 W W N N N N L N L N CO Z O Z O Z O Z N Z Z O Z N Z CO Z N Z 0 O 1 O D w D M D CO 0 D w D ow 5,-; ( D o D ( D o D CD , . M DJ ° o CD c.) ( v v a r --- - (D 4 0 Z W Z ° N Z W Z _, Z A Z Z Z 0' Z 7 Z N 0) Liiiiii D b D o D (T D J D A D O D w D o D w D a 0 — i � 1:3 D N V N -4 J tN v n CO x _ _ _ _ _, _ _ _ so -< O V Z CO Z O) Z W Z O Z O Z O Z A Z O Z A Z 3 <D J n o 'D T D o D A D w D CO D J D 01 D J D (T D o 0 0 O 0 0 0 O ' "' Ui W A W Oo o — i 3 7 Z Al a 0 N 'a N Z E =T x 3? N O O O ( i-,-5 O a .+ L L _ - 0 0 d M N O N W 2 �,,� VII w A 0 4i 0 0 Q co Q O Q Q c Q Q (C) Q (f") Q CC Q (n w ~ E 0 N Z M Z Z Z N Z Z co Z N Z M Z co O� cv m w m . O rsso N 0 w is. 0 ,t V k LL N 0 Q 0 F N o + C 0 a) Q Q o Q Q Q Q Q v Q Q v co O O Z Z Z Z Z Z ° Z Z Z vr a; L t CD a o co C M O 0 �- N F N co 0 O N M.- 0 CO Q o Q co Q Q co Q N Q co Q N- O V 'V M Z co Z r— Z Z N Z Z N Z co 0. E O _ V co — co Lo tli H N L.) co 0) r O O r 1\ N N Q O Q V Q (0 Q ,3- O (/) CO CC) (n CO 0 N O N co V co V rf 0) L<7 .- M 0 7 C O Z Z Z c Z co 0) 0 a) O r O T V O N H N o ▪ N Nt N N �t O) 0) O O 0) Q N Q M Q N < cc') O (1) co (f) (0 N 0 N M V N O N O ao N- o m r` c0 7 r` O Z (C) Z Z m Z o T o T T NO O N N N O (0 (O co - - ( a a V Q Q V CO M V co r-- 6) N 1--- O Z C Z r- Z Z (V T N O V c0 co co T T c0 CO c0 (- co N F (V w (J N co N N. (0 O V N V 0 O (n 0) (0 O u) 0) O ( 1) O M M (!) O c M CC) N , - , - V N r V 0 V - LO (O 0) N (0 O (0 (C) ,- r ( 0 M r (D N u') — (n co co v 0) R a) CI F LL O 00 N O O (7) 0) (O (C) NI 0) CO v M CO N V a) U7 7 co V M co co V 7 c0 ' M (0 V co 7 m co co co co 0 0 0 0 0 N O M - co O V' U (D .a. l0 N N a C co cc x x E 'O a) 0 c j a) ` a a �, x a >- c cc U- -0 (0 N N P U c ,- ?< Y c s c + (a (0 n) ca H °) m 2 0 0 2 o v7 Z ° u_ ° (� m >, m D c ti m 2 c m 2 a U O 0 (6 O (6 a , O O , (B a) LL S a) c E d a) O E C 0 0 V a) o ca C 0 0 U t c C co E a a) �. 0 -o ° m ° 9 U c E C w J X 0 J X N co — (n m (� -0 x c°i - (f) N ° ~ 0 X ? a) ° ' 0) )D 0 m c E to LL L ~ m U O o C7 a Q C7 O (n p m o m o O 2 m p m p E o (n v) 0 a H ce t ilir xi - . > 5 P3 \ E} 4 2 j i 2\ 0$ ( J m cm == c£2 m E e: m m _ o§ m a ® ) \% : o ( � o % j � 7 og ) - c ( ai -0 2 m - CD m G • & } } 1 2 0 2 0 \ / \ cA \ / m ro \ \ \ 91 > > + \ -0 \ \ ai \ ■ a e o e NJ »_ »_ 01 2± s s N) CO G 0) 1 e e- , -4 /\ / s v z § 2 G z t 2 % G 4G %se$ w \ 22 $ 0 I o \/ z z » z z - G � -4 » $ > G » % > e a / G ) Cn 2 §o§ a \/ o Z z ° z z ° z z > m To 2> 5> 2> 0 4 O \ ƒ 0 S Z z z z z 01 z CO a > > % 4 G $ / > t > - 0 o(0 co Co n 0 3 Z z / z\ z ® z z ) 0 -' a 2 a > e> E a 2$ ..c• o 0 / \ \ ID 0 z\ z \ z» z » z\ z CO o § La%) $ o a > 2* d s$ m 0 0 o 0 co co q 8 ® CD a ■ n �\ 2 \ "' z z % z 3 y % y 3 2 ■ ■ a . it; %& t s S> A$ $ 0 C 0% o2 E Xi C , § ] Z 1 CL ■ -0 N z w C • L. N m O o N r d d co V ol Id. e M 7N 7 CO i s 0 ry a d 0 d > N O1 > N a) [D CD r O N 0 C; d M [") III ‘ 1, - , c _CIr 01 a) cm CO o C '� p N I. M .n w Q • 7.. r u 0 O CO O O CL Q co = (-....sel s ° o • d CD ` 0 O 1' < 0M Qom a o 4- r co � $ rnr-4-N 2:-., \ C N d v Q W 0. co co 0 4. o w N o co o C at,„ N D CD d R ' U' E co E co 0 o 0 o O (D 0 CO '° M l i C L. o y co m CL 0) � .. I N 47, O RI N 0 E 8 8 8 8 8 8 8 8 8 8 8 8 0^ o N W C 0 0 0 0 0 0 0 0 0 0 0 o O) N C' C , r 0 N V CO N O CD OD " C N CO .0 0 .0 0 N- 0 w 0 » c» c» f» vi u3 d c 0 CO OD • X 0 W d u') co 0 u0 Co Cfl W W 0 C CO CO ... C C • N ,_ CO d d N CO) M CD y co d d co CT d CD Cr) d 0 C LL ea LL N u7 M CO CO ` C G v . 2 2 co D C) o d 9 N C r C A p) r- OD C» v) CO W m co N a o to N N N C c c • co Lc, .0 tn 47 . N M V r N O O O N CD CO CA CD N to M CD re- O y C p 5 :6 , C C • re O V r W 7 co CO O O O >- CO N- 0 N (0 CD N CO LO .0 O O o I o V N C 'C V C e. C O O O U N U o CO a. >- 0 v CO Ce .0 r m M 0) E 04 NI NI 0 Ti 1.. 0) y 0 ` O1 ,- 0 co a) co z c G z c — rn C7a T. O o Q (O r W N co rip r I- I- ! 7 V V N U O V, D r ti) LL C[') ch t` o L. t O. CD o v t0 7 _ 7 N 0 r N O N w co N 7 a ' C6 0 o d . O d = a � c � o c �o a IP 2 r }, 2 r : ea � ca E LL 0 7. o C N • C w t0 ° o ° o ° o 0 8 ° o ° o ° o ° o 0 0 0 m o T H O N N C r CO V N 0 0) CO V N 0 N LL O. u , - N u 2 v o Q o O o o o l UJ II4Ba LL LL C 4+ - 0 j R c V To To 'O 1.• C LL 4 . 61 C LL • C LL I- I- 2 G LL m LL CO m ea a) E 7o o - C O C o 0 •• 0 O I- Q ii ~ 'u. I- d 0 F- O X H 0 3. o m Return (° /,) 0 Total Fund (Gross) ( %) -< N T 0 T r' • • co CO CD UJ 1 j l � O (T o N O 61 0 N O N O ry 0 0 o O T j T j ( �'� M 0 0 1 o O O O O o O O S a 6t 3 a n) co O v m C ai N G1 N T n o 'O t o 13 N 5i o o �'t >> co • m m a s n 7 C N a - t 1 0 m O CA W ID ' Co A - I —I -< 3 3 • 0 o N an to o , r-11 m y o to m m ° O rn o x: 3 o 0 x 3 > > O CO CO d w � 0 + . m . co o Co N w o w o II N co N co C F 0 y 0 • O to N - -A A = O w • O1 Y CD a a. T c•-, N y 3 0 0 3 a Q o o OD (0 o a o o 'o 3.„ o v o co C 0 A 0 o m m o .. o o .. y m ° n o O o O o X a 2° r Cu m O o 0 ro co 0 -s m 3 0 - su 3 0 ° O o m o w'a 0 CO a . o m CO 5 a' 0 01 au sv a co CT N ' o � o 7 a a m o _ o C 0 00 3 a 0 s m _ m O N _ O D D cm 0, O ,0 0 -0 N 0 CO y 0 CD y CO W Return (%) 3D • • Return Percentile Rank _< . • N N W CO CO ; - 1 O CT O 01 V //�� O O O O O O O - '� O V Co N O O y) p U O CO p O O O O N N 8 O O O 8 a v v _ c T 7 C N O 0 W tc CA 3 7 Q a O t7 a O i g„ °r ■ _ o " ,'' m .ZIP .'0C - S1 Y 1 o 0 0 N 1 0 J 7 7 d `� tD 3 M 71 N N 0 tV 01 ° y ( 0 0 N @ O o w a m'S N CA 01 C/1 U1" `" 0 0 .� = O o = CO CO N N a) 3" g0 Cr' O O 0� Cr CO W "� C.J V F N - O O -4 to Co Co = W Co C N 7 W N O "" W '''' LL o o O Y ,� a. < N 3 A jj 0 CO A 0 O A CO , i 0 CO Of 0 pt Cn LIIIIIIIIIII) - - - -s 1 m " � �„ D N co N • CP • OD a ..R....; 0 CO CT — V 7 a' 5 '�" 0 CD O �'`" 00 00 cn m co • n V • 0 3 F F N CO O N co /� �a xw co c:7 mo _� 3 O co {1J� a a rn a u, m cr O m co N O Ol N M: 1 .-1- T PV t; N o "ka • GI d N O I1 m N " tD no C < 1 � z NQ » a Z § co C — — 2 co fa � > ( ° > . C; C.) E § \ � ) \ A \ § o Q £ � £ .- . ® — �]BG § / o0 � ,.. \ •W (n .- ( ! - ` L ƒ ± m ƒ 0 . Q '0 a. . ® � � /±9t u . a 0 El u5 .., co CD o — o — E ` \ \ ` 't . � ) § > / | | CO E \ 2 8 - - - 8 _ co % CO § / \ CD .c � C � Qe _ � LL J 0 0 c s §( o L L � \ } § \ � ƒ ®\ aw § � 22\\ o) , _ � 2 £ 0\ re � � � §// an an 0 i • O,_ � 0 \ CZ -',,. 04 co sr co CO CO C C CO In CD 2 .2 (6 o6 cri ` ? \ \ CO 2 ® —c co _C2 u_ 4. 5 / /\ � co . 2 = . + o \/ � �A j )§ ) \ z \ e [2 # 7 e .- o ~ J _� c0 co co O. �� ) k )� j ) � - a �§ / ; 3 2\ g > \ / ' ¥ + 2 I § m 0 i ( m = t c � ) % ) § ■ § ® 8 8 8 8 a_ k ® « — N N 0 )0� % « f E » E = ± \ » u _ti }/ ƒ » / 2 @ a c s 0 0 a) a J J S J S J ] « a J f ) — — 0 0 4.1 - ® ) — k — k § — - G % E 0 < C C §§ k '/3 3\ ƒ ) ƒ ƒ } ee 0 / 7■ -1 m --1 = - 0 W o o a o o, ti, Ret (%) CD rota) Domestic Equity ( %) ..< w O t7 o • m o o G 00 0 - 0 (0 .'0 0 O o H -i 0 3 o n t o 3 y ( � D o o O o CO o 0 0 0 o CO O O fn ° 3 0 — 3 m — m m � C • 0 17).' N �. Cn N �. .. o o t )v CO m y m e 0 m N m m rn 0 m O o 7 c c . ty m < O m g < t1 c ) c 2 n 5 ° m co .< N Z u) O O to ° W G C 5) m Q r cc o ° 13 c7 5 w o C y W -< (D • O J to O N mC, mfl, 7 O U O O A\ N c O X. ( ea 5 p O a 01 0 N m O _ _ 3 -< m m o m no n 3 m a) O) N O C m y , A W O 3 a o C 0°' p < • ■ V d 3 0 3 o m °- _. I e CO C 0 N d C a p ` < 0 O o C g a O _a o gz O co (D .. 0 N N r. m w 0 0 0 0) No m o 54 o 0 03 dap _. - ( < O V d O o W 7: a) O CO O) .... CL N o W C ID 3 co C (D 7 U, A W A -o • O A a "� v W n 7 0. 00 O m O c 3 a N j N N O m O co D D o 4 " 0. 0 0 m a) Return (%) • • Return Percentile Rank W N I W -I -I •• p - O O CO A 0 CD O O O p 0 a o --I a m y °0 8 8 ° ° O _a a d o o = 0 O O 0 0 0 3 3 >;' CO (D 3 O (7 N N m 0 CD N . N 0 0 S E 3 (5 m m m O m to 2,3 z o m3 cc v • a o:., O z _ D o ° D a o °: z ° m 0 O o ' o v • o O 5) 3 O j 5 5 t71 7 w O tu N O O a O c . � z TI ° O ID F, y m O N y O O m 0 Vl ' O (�/) x O O (.0 -• 0 10 -.+1\70 97 3 ° O 0 c y -• O 0 N O 0 CO A W a C N 0 N O N 0 <. 00 • ? c � 0 i 41 0 O at N -, 0) O v p A A O 0. w C N V A 3 G O co -, O co O O .+ m O (0 2: O (O :P. N e c O O 01 e) O A e) N N O 3 �� •® 111 N vt CO a N C T t7N O N m 7 7 N K V N na N< C, N o V W 0 O tD W O 7 Cr 0 (J) 9w .-] N A O O d W N C (e O �x o v • 0 m 0 3 �I J O n a x w w E 0 N o O o c • e 3 0 n c. rrq m (n 0 o o .. ' � 0 0. 0> ° N ; ma N = � o . .o N K N d O 0 O — O .� N W M 7 N 7 N CO c'. ti l0 �0 0 _^ r �y d • G) > N O > N OD WI `- .- 0 (c; U ■ .0 41 N N ‘- N i co !- 63 ` M r L 0 (� C O • d W N C N N N /.0.1 C Q V ` F.-0 W 7 e-'. (O N W L co 0 7 O O (t U o CL Ali . < ( , I 0 ---, . u U U U O( _c ,d_ E i 0) U a s ch as(') c QO QD a 0 0 O c C O 7 X O 'O r' O) co O Q W , C 0- O (O IN G( C W CO ) p m 3 E E v 0 m > C c = 5 — E Q (n L Co" U( O r m CD K CD Q O- W IP cr „ CO CO N co (0 • co :1-) t � 8 S 8 8 8 8 8 8 S 8 a�6 cr c, O r d `- d f 7 E m O t 0 0 0 N 0 O m 0) (n co CO 0 a 0 0 0 co (n (» (a to w to w (n (9 0 D) w w (o C C m O E } 1 0) CD 0) 01 co (O m O W 0) C) U. Z W CO C LL C LL O N L 0) r 0 C C O 0 (0 5 , N _ — C R O� O r W CC } a Q o o M N N Z (n (O C C .- O 0 7 7 a .0 rn o N N i. Y O 0 f n 0 rn • c Cr c c to CO CO O 0 , ISI 0 W 7 = N Q C C v v 7 O N V O O W 3 7 • } N (O CO .0 .0 '- • N n CO N OD 0 r- C 0 O 0 U U n1 CO (O M N LL • O (n r a- 0 (D (n � CS N E M CO + () N. (0 cm 0 Q co w y .._° N) CJ N 4-, • N � .0 0 0 ,- C O. ,- V r Z L E Z` n w m v CO Of = 0 cO CO N vi (o 6 F O H Q W LL N ( N 0 O a) O — N H 7 N_ @ c 7 N 0 7 N Q (D I N N CO .— 0 CO y > N (O r > N (O 0 0 ) d N N a (O N (O i 0 1� N Y O r Q 4, O,- N LL cc m o .0 @o U (Y �� v 2 c 7 x (..) 4, O O c 2 8 0 0 8 O 8 0 2 a , C T O >. - 8 O O O O O O O Y 7 r--: Q O N V O v W ' f6 N a' w r '.0. 7 N N N N a, E Q -C W Cr CZ cr W @ W m 0 W 0) 'v a) CI m > , Lum > m 't 0 0 , a) z • 2 7 a > co v > v > O ( 00 d > > co O a 0 a Q — 0 6) a O U co IX �_ co a— c :+ co o 0 — ` o a) m (o - (n Q (4 Q - Q O ` U y "� f"9 a N co c o c ` 8 C 7 a cc 2 a r y co c co c y • 0 O ( E ) ct 2 LL a 1 a d 0 Q 1 Ila > S > 1 - 0 w x n y o' N Return (% nchor All Cap Value Equity (% .+ — _ CD N O 0 co o 0 o• O O N ' 0 — — N N N CO xi ( g D n (D D 0 C 3 O O O O N Q) O A N 0 tv — 0) O O a . O at (/) o p) (n N (D O C ' 3 << ± << CO D 0 m x 0 O C E m m m o d o o R ' m 0 o < m D CD 21 • G t a) • a m Q CD z CM x W 7 N 1 N A -< -< n m CD d X C , V) a) ` 7 0 -< A O 1 1 d d 3 ma O A. mm' u@ D - 7 0 o Z o �I ' F 0 - 7 o D 0 0) o _ m rn 0 co to p , " c , 0 0 0 in - a + -< o o - co N ? ° � J co CD v c a a ) N V 7 O O N„ O m m O y y ^X` 0 0 a N d c O N " O C 3 X co r . - Z C x L O m c x D O 0 O A ,.., N A 0 O N 0) N cn - d 3 t7 - d 3 v O y m 0 m 7 d - d - W < . 7 O O Z c X" 0 F CO m-a C 7 0 co OD c F W W . 0 O D w 3 (O . 3 c0 W W C D) W V 7 O N O 0 o C 3 a T m w 0 8 N 0 O co W o Z D 0 W D W 0 0 D N 0 0 o m Return (%) o eD • • Return Percentile Rank 1 • • -. -t 0 0 0 o OJ V) c 3 oo . 0) p o Cn o CO M XI C 3 O co n O O O o o O N a w D w (Q w D m Oa o n 0ao '9 0 o 0 o CD 0o 0 y < v e m C) 0 0 D < - m = Z Z d 3 Z O . 3 (D O N (D O ._r > D c D 0) c co 5 m o Q, m m m CT 0( C w CD p CO -} co 0 0 W O N d ? . W O cn A 0 ( CD s w O. , CU • z cu d d N o N D co (D Q O N O Z N a 0 - 0) w D c m o o O N 0 a c i, 0 w o O .. m o o c CO m 0 • e o 3 N u. W W N O• w 0 CO - o W - z O D O N - V O o O ci a, st o 3 o D ', 0 N O f 0 0 co E c) O A 0 0 O' -, '1 D N N 0 7 3 Cl) D W • < \ ° .r N � N N �1 V1 ao Z . a 0 N ^ ,A 0 ..) W 0) D D d o v !v �x v v 3 a II m 3 0 ° N Z 87 7 J co (n 7 W O O OI 4, D cc cc 7C N N O » N l ( Q D = n I D (D o N ° �040 ' ( O o xi O � j m i • Z N ha c '.G `• Z z '. - ,o x (.4 O N Q a) w co o N �/ W 7 N 7 N !) _ _ W C) L R O r @ O - ^ r d > N > N fA ,_ ^ C D U C., co O L/ C IC E y co co L co (O - C O •... . O E a1 !O @N N Q , C N O co r M L Q. m — 2 • f� 1-. = O V Q '-' O O O a a a _ _ • O O V o U rn 0 N O CD N co a av a ac ad ad aQ a O _ M O En ,. 0 CNI a Ira C_ O Q d Z N o co O uJ r c a rn co co C W 0 n co co 2 a1 a) 0) > TO E _ E _ tt o m o u V t f6 Z.- U 8 E a M L � O y t N J Q) 0 CO > 0 I t CD M N 8 8 8 8 8 8 8 8 8 O L N (D M O cc O L C L C G m 8 Q M N O = W Q M N 69 O % o X V EA EA 63 fA t9 to 69 1A 69 3— .— r W W 60 0 co E w co w M u Q co 0) d d 0 c, N (O CO CO CO C7 01 Z O N1 ` C)� C 0 CU LL � co C) CO U.. C C y , C O CO CO N 2 2 C N O (" ) tp c0 n W 2 m co I r r V Q O O N H Z r) tD c C r r O O a .0 co 0 . ao _ IA m ® _ } Q 3 N M l) O O) 6 LO co O O 0) r CO •—• C O O iTS N r C LC) N 0 C C en CO M w 7 c0 N V ix .2 0 J] S? N CO M CO co aO n C = O O U U N cc O) M N ci • U N LO H M N + co i C) ,- N CO L a a. C O w y a) CO O ii N d 60 Ja N W � r C a 00 V r Z E Z m � _ O) h W c0 V OD H c) F 7 Q °� 0 UJ LL O U) N I- ' O r N N CO c cD _ 7 N N 7 N to c co n co /0 o a7 .. @ M ar ... .-- N d 5 N co d N 0 d CD CD CD t Y O c0 d Y O c0 a O 0 N U- c o o r �i U c @r O @r + v y y 0 M 2> m o z... o 2 • - 8 8 8 8 8 8 8 S CO , 6 = } a+ _ CV v N co 0) v 0 4 C CO E w CO l L a) W N N N N 0 7 C a) L W • 60 a) Q 6.) a) �' 1).1,140H > To 't 0) C To C = c = as a > 0 = > o > v > Q U o d >> m d m d m d — M j a o U Ce To m U o y m V o a Q Q L L m c cc c c O cc 2 fl- c 0 3 D C m c m y •• o m - LL ° LL 0 a 0 v ? v ? C w y N Return (%) ∎ alton All Cap Value Equity (% -< • 0 7 O w- O •• m o o - w m 0 - N., D m D j • m 0 8 8 8 8 8 0 o 0 0 0 o O O co O ' t'n 7 CD 7 - m (Q < < <� D (/� m o C N N q N N -. o fl °� O 0 O 0 v D, 3 N 0 - CD W =. O -o oi (» r N o CD • m o m 0 y G 0 o m 3 N N so (O O 0 - C i a C C 1 x N x W N CD O m • 3 CD (D -< -A m cD N U, o X C 0 -I 1 0 oil 3 0 m'm o w m'm 2 d au oo D 2, 5. o_ oo d o C M O CC) O o m c CD g A a w (n z w m O 0 co e , 3 0 0 - m O c a o @ CO N 3 • - < n m u m o m S. 3 w CL O - a, J LY 3 e 8 " d c O A-t d c 7 x 0 o D m � ° O m 'm ^ m — m N O O co N Y W I• o o 0 - 0, 0 0 0 J O G, 0 O -a -4 -a A 0, O '6 O (n in O o V 7 Z c x * _ 0 c A- 2 W CO CO °1 8 5 ,-- - 5 7 -> 0 fD F.P. CO W a, 0 O- d _ N 0 O. OD 0 o C 0 3 a S' m + 8 J O 0) D D 01 0 Z IF O N .0 W ° o D y ° 0 a y Return (%) m • • Return Percentile Rank _ •• g o o g m G7 c m 8- o tA o 0 C m 0 v 0 8 8 8 8 8 °= Q N O =, CD 7 0 Fd m 7 N 'O w D (0 W D 0 Cn o 0 0 - 0 o O 0 O O m ' -, O c, G *'. 0 7 7 < 'O Z co N A 3 A O O N G N C to M o C 7 D D m D 8 od m " Iv a a m Co 0 ° 3 0 .m 8 x2 7 0 0 x C N •••• W `.. X 1 g - a 5 w N .O. CO 0 O N :.j „�` 13 O ° o Q W A O D) N o Z m 7 o o m 7 x N v (T N O DD N D W CA 0 13 N O Z M 3 0 s” ID cD o� c Y o ic O w D 3 a N »� 0 W O < No u 86 1 o 2 N a N N W O S (. W C O O O O G f p ID O O 0 0 o D Si o m 0 N 3 co 71. O w 0 o A G O. J €, ` . 7 • CO N 0 0 N �. j N O O Cn 0 M �.�y W 0, D a d 0 N v tv 0 W 2 7 0- n 3 0 T O O ° u, CD N .7l =' c0 0 '�.F W O G, ® O 3 2, 0 Z x M A- H D CO CO m N a, n C 0. m m o 0 0 73 0> N 'm� IJ C y x 0 = CD V z N < G N z CD ��" N a) ¢O � y > M 7 N 7 N - c A / y > N •N > N N - V m M ` M ,, c (V'] y M M Y M Lo LA 6- ' N M CI E y tt) " to co N W M O L • uJ 7 O .- O . O O O O (-.....02, LL � a d O V V V V O tvtn rn dd rn o in a Q-r Q a� N d N 2 N Q� Q❑ co 5Z 3 in co O C `O m rn CO c ` 0) 9- c rn rn CO U CI iTs N d y O N C a tp W a)i £ co y t p W N c+i 2 c2 c c R c m CL y > v) co in N y I1 d > N N r L . L_ d = 0 8 8 8 0 0 0 0 ci .,- Q K %. E °:1 t] e m m N i (O N W W !o /o to 69 fo C O V w » w a cci N to W c 00 O O C C O a) O_ • N RI LL ' t0 LL >- ,- O N C C N O O N 2 2 4 4 . O R' Qt >. _ C O C C v u) u') O Q N O O ci.4 - ,- c 0• ,°)O V to 7 7 DJ r L A N N f7 a a H us / — _ :!! 4 N w • CO O CO to M ` O) o co W M C O 0 0 c c CO LO to CO W -3 N N N N N O } 6 O • .- CO O V L N to • yi tD La CD ' Cr) Z I! co Z 0 I- `y 1= p 7.. C 0 F 5) 4 LL co co 0 t1 O O O O ^ N o d t L c o 7 N -6 O 7 N O 2 v _ C O. M LO N O tO ~ O u) re W d M M N N•- M T d,_ M d f a O tD o , N (� (O (O O tO O I O u) M M e. Q N m p C 0 9'' 0 0 O CD y 10 X CC -0 a 8 8 8 8 8 8 8 0 8 u_ co v t to v co v) " 't ?...- CXp c LL Q u N fu G) LL @ c V c Z c Z a,maa c Z o _ _ to m �' _ c TO cf) v1 x E c0 t4 m . y i o) t T c x c ) c 5) c0 x x p -o O -o C o - d - y o a o V V C Q LO c C N c y o y o Q "o o > O a O CC 0 0 _ ? u c Y t o t p is 2 i s a 2 0) a i a ° o a C = 0 z m °0 d O. = LL u) CC m C m y •• p m N 'u. > 'u. > a U > < _ < 2 71 to N y cn o y Return (%) 03 it'd 500 Index Signal (VIF; .. clo 90 f� O fC O o• O O O 0 ' 0 0 CO N - - (D A y o 1 A o p) <p GI O O O O O O O o to � ° N - o_ -a p c^pp C 1 O 7 0_ O N Q O M 7 o N W - 0 ■ • o m co N < 3 N 0 N N a 0 - " m m G. X K X 'Y O N (.J 0 CD to W 0 X F f o 4 o - m 0. tQ m g ID 0 m < a) d x SU 3 < co CD 2 -< 2 -< 8 3 - n O 7 0 CD cn 1 N 0 N W CD I X N -- to 2 0 CD T m x• Co 3 to :v X O cn m c 0 - ' o CD CD n o 0 m00 0 0 and m 0 p v o C.71 n n co w 0 7 0 0 ? m m o w 9. -< (.0 a 3 v o to CD a % o N 01 � o a 0 0 0 N 0 co 4 C m o , cn V f, 7 0 . x N 7 O 0 — 0 - r n 3 - 0 3 O O V L d pp C O O C 0 O CD to C. O W 0 0 f la N P cy' O co ap A 0 N _ O O CD m y 0, CO CO < 7 N • o - ° -0 °� 0 0 0 0 0 'O d 0 m° o C O 0 m C 7Z' f O N C x F 7 Cl. O ° 0 0 ID 7 O (r ',DI. 7 3 a 3 N 0 V 0 0 0 CO CO W J 7 twi 0 o > 0 o D Return )%) m • • Return Percentile Rank - O (T O N S •• N A (P J / O (n O I ) O N p1 61 O O O W Y♦ Q. p p p 8 Q (D Ib N 3 f0 8 O 8 8 O -- v 0 0 a Z o o 'O o o Q tQ 0 0 N 5 to g • • a CD CL co W X O • X 2 , N d O p 7 7 0. tQ x _ A O O x d co • tD z ° m3 �3 u? 3 7 • O O 0 8 CI1 2 W x 7 7 < o - T (0 m • 3 x C.12 O x X to Of O o - • ZI N H CD CD x m O O 1 to to m -, O O 7' O 3) o i O c • o w J O cn p 5 - cn p cl 6 t1 0 0 A a • E o o t0 0 01 N co O __ c N _ N = w' m i» N a 1 CO O O O G 3 0 O O 0 0 • 0 N 7 tri co O O O M • c CO - -• ED - c CD ID 0 - 0 at 0 0 !L.' co 0 0 7 0- • 0 0 0 o 0 m . o o ~ 3 L]. o `O • 01 - 0 I^1 0 o o = • N 7 CD / O fn 0 0 7 7 W M �, IC _, _, _, m m m m � . 7 • o c p X O a3 CO CD tO v 0 po po o m ° • n _� /O _ T _ _ O O 7 G � CD IQ t1) � Ca W A O (0 A F O O O p1 10 3 = = 0 4 , J JC N 07 CO 7C 41 CD a a o 0 co o o N •0 wA CO y C O ° 1,3 N ci V z N .c r.1 zP .92 .5 x > o 0 N Q i— ,— co N -43- N �/ CZ V CO 3 r 7r A y,C .— Q, O. G7 N N 7 N N CD .. C'/ V C 0 E . c0 _,[ M co- C O V d N O E w C. d 1 2 N R N ,— C C N CO M S M �� W' O I� CO f.rw L 0 , O O 0 J o N o_ 2 .:2 ( .r. U U U U N tc O d d m Q Q Q Q C n L O),- N C O °: y 0 'O N O Q co � C Q M ._ u7 � C W� Q CO V o C i O C 0: E L O y co Q. ° {t n CO .4 C O CO c'.' co ,- co en d 3 , 8 8 8 8 8 �W ; N 9 C) N N E 0 8 8 ( O N e ° 0 0 t W 7 t d 3 CO iA di f9 (A of 0 5 0- 0 W W M c c } cu m Q CO y Lc) C1 y (fl N y (O Z • N C O 01 0 7 C3 CI d '6 N O W CO co (L co L.L. C ( p Q co N co as W 2 N Q Lo co co ix co Lo •I d CD M M • I- r (O M N u) r C c O O 7 7 N CO u (0 N L CO 4 N - N N CO CD ° ° • • L M ; C O C , O N W 7 W O M Q (O co CO N 0 N CO C C ® } O O r r • N m n (O a m .0 fD of 0 N. c C C O N O IL U • U U r p + N Q } 6) , N T V) N CJ O C 0 M • 0 N ( 0 d :a N L Z' N,- .-- W 0. M r2 .0 i 7 N co m N N E 0) N W CO CO Z c) Z . 0 v m CO d m Q F F- CI F 2 >- co N N • LL CO CO (0 O 7 O c co N O. :o (6 N c 0 2 C4 CO CO ►. 7N r 3N Q1 0 M 0 t' > N u7 d > N 0 J RS N d M CO (O Q CO (o .12 (0 • . 7 O N c Y O u) .2 ` O (O CO T E p 0 2 p X d cr N V W O O , 2 8 8 8 8 8 8 8 8 C (0 p L (C L (0 L H N N N .- N Q) Q O v O L E L 0 3 '5 cn p o 2 uJ mea 0. C7 't 0 -.F.. n O 0 0 0 C 0 0 0 .. �` U X 0. X 0. 0 m _ > U e i ) ai (6 2' (C 2' 2 N co co J C J C J O R M Q J N co • u) C cn o •• C y tx o ? o ? m cn H m Return (%) A SM Large Cap Growth (% .< _ _ _ _ F/1 3 0 01 0 • • O W A N / ' N 0) NJ A 0 XI (p r 1 (P r 1 o o O W o l7 O O O O O 0 (D a) C 73 o O O O O O 1 d (D m Q o rn 0 N _ ■ 11 i0 • 7 A. o 0 N 0 0 ° N w r ' T 0 0) a o D N 01 a - w m 0 CD C (' O o 0 o n t o o ? a 0 ° M m m ° 3 m CL SS = o = 0 0 " m °' 0 co o 0 7 co ° to ° a X D O m c n m Co) ° 3 N. o co CD CD a 2 0 to to o CD DAD A o 4 4 c X• O • 3 o rnd w En, d a) 3 0 0 D E o u) O x m N n o � � o (O , (0 W m m a w x o o v s° 0 _ _ _ M N m o -< O A C g l Na a Ot a Y m n Q OD 1 a a m ° T m o ° d '� r .a N 3 O O N 0 0 . `i C 0 0 a) C 7 K O O z C F 9 O o) C 9 e co ae o 0D a". oAm co N N O co N 0 CO A D to O 0 O d m l7 O (0 a) m 0 co J (O < 1 ._. • oD ' oco ��W3a • N 0 o c 3 a m m m8 N O 0) O O Z T 0 O) 1 "0 w o D y 0 J y Return (%) M • • Return Percentile Rank ..< I • M 0 0 8 o 0 c co °o CT 8 c"n o XI co c c p y 8 8 8 8 8 Q co m C - o 3 o o N o O c O o ° �� O a 0. 7 7 'n co s • f '� 7 O 3 t o et ° D D O d D m Oow @ a O r 0 m x Ot w O X: W a m of N m 0 t0 J 0 CI 1 0 a a c O d F p Z m a) 0 O a) °, N N j. w D p •a rn Co p 'a iv 5'3 Z N 1 ( 8 0 W O ID A N N D c Y o O w 0 ? O -11 7 C N a o rn » CA O S o O < N v c (0 0 y o) O 7 ° N _ N a w — O 3 Ca is O 0 Z A 0 0 a _. 011 0 7 J w a) ° 0 D a o O N J O l v, n 3 N �• 0 o o N r N O Z m a N Q CO A D O m 0 1 � s o 0 o N 0 t p 3 M CU �� Z y 3 A W m 3 c tS 133 0 \/ V D a 0 co 0 o v, N 0 • co m ti a o C4 0 7J ry PV N'o co Z N 3" * ID N ��// Cr ( T a) Y v 8 Q W Et _ 7 N 7N I / � � W <a a) > (v rn } N m CS) N U C _ \./ C o E = Mm Y �� M y 0 C V d a) N C (V N C3 :a N C @ v 2 E - ,- W 7 _ S MI CL 0 Q j w F�- y m a) m o 0Q QQ rn o m W V ` O)r O N O C O O_ a '5N co V 6 a T ,- C C. (n T CO W a) M 0 O Cr j N N O W W O CD d 0 M O O E O E O C . O 0 0 M E E C C co L O C 8 O o W 1 O O N H F CD o i I ,_ - N 01� w C O +a i p p N ftl d CO C 3 C c +) O O O O 0 O 0 O u y C LO . .0 C t C E O O OW to 69 N M V a) a7 7 c7, w O x OX U w W 0) N C A l7 C C } v E • u) E u) In N. O O 01 fl c O al 0) ' h M V N u. C C — W (C — LO N a) a) E (D O re } T O 0) a M O CO o O U) W k. c c O o 3 7.. O , 0 h N eh N N m L 0 , m 6 6 N ' M C O d 'a N W 7 N OM) 2 0 CO (D W )53' n CO C C O O N CO CO CO 7 0 0 - 0 a a c c ii O N 0 2 r--. LO T 0 Ce O Z CO N M N N CO N N O N i �� CO N C C O cri C5 i3 'I M W c a M � rn L W a) 0 CO M a) w N N -- I� D a) w O (0 (0 a) m E me, , 0 Z ` c. Z` Q > a)) co v co it. w CI ui ui m o tO 3 a) N g m a a) O 0 6 O 2 (a a) N co C Q O aO h u_ r. _ N r _ N Q co O V M } N (O d � N 0 M Z' _ °) _ rn C • O_ cc; o . O c 41 W CI ea O Y O +' - T O 2 ¢ C O O O O O 8 8 8 8 a d (-) C c c O o (a M M N N 4,-- O O u7 O Z Z. C O U CL a a R (n u,n ;ea w w E Z' '3 co c W c w <a 0 0 CD W N 2 o To 0 To C m m a. m o a) O d O Q c c w 4 i6 0 X m C co 2 ` m > E . c c 7 c c c i:+ m m - m c d c A a) ( _ s a) 2 o m a) c 6 c _ C7 0 o a a c @ C N m (a N y H ~ E m o c o c o a) •• Q o ii i- it 1— d 0 1— - I = 1 = w H ° N 31 ° y Return (%) m Total International Equity ( %) co? O ° 5 O 0 0 0 ° O o G7 0 0 0 0 o 70 0 0 0 0 o O m 0 3 m c� 0 o o G _ m m 3 0� 0. co m = m O �1 to d CO 7 7 7 RS • 0 XI d 3 3 o= ' 3 0 l 9 IT (.1) ° a C j m =! g m 7 j Q c o O 3 o. M w m co © f m o 2 0 cr w m m 0 o o o c c 3 3 r Cr (1) 4.7 n N ` - G w .< w 8 w N O co N Vf o 0 ' O co + 3 � m 2, - and O A mod . 0 _ co / Co w - O F O A O �. x ° u . an O A , j O A c Y ° CO 0:1 g m 3 -< 7 _. 0 C • m W A N m m p co Y o • M co 0 c 'co C p o C ° 3 < ;v ¢ X' 4 n - - n az o 3 O c0 . p0 O o i m p m r So 63 C m O co A r 0 V . - o m N 0 0 • O N 0 CD O N 0 N v U) ° . 0 nc 2 E m w 0 <3 a' O O m o) ". O O w m Co OD . Q o O w ° o ao ' J co • w • 0 1 O J C x O C x ° f 3 Q • 7, O 3 O 0 . O N O C N a m .^ 0 3 a 0 0 S m 2 N N co tv O N ? 1 w o w a Return (94) • • • Return Percentile Rank 3 Z 1 - O J m N m •• Uo 6 I, N 8 O V CT N -i ° o ° 0 8 0 , ID d 0 5n o o 8 C co 0 o p 0 0 8 8 8 0 = a m en c >> 3 iv N a m m (0 o 5 3 CD m oo co 0 ' ' w w °m m r= 3 7 O 0 _ >> • co ID 3 S 3 m m w ca m m = � ■ po ° mm N o cc c 0 co z° °: Z° °3 a° ° o 3 - a N v O w F o w 5' 0 O co . � CD m 1 M -, 9. O c71 co to co z o O co E _ . 0 o • an d ° co N y y N a O A m O� A 09 X a o N . A W J . P 'o O N o O J C a O O O 0 N u7 N 3 p w N�- 2 o O 0 O 9 O O O 3 O k ot `, N O \ N 0 IV 0 0 0 'Ti W 0 CO W 0 ° ° � m O u) at 0 0 A O 7 . 0 //'� O J m O CO m o '% `: N E 0 O U 8 o w 0a • 0 y m C m p y ^ o W > > j tD ° . • 0 c� 4 CO CA) O 0 7 O v° U. N v 7 -• • o �i o v J 01 N , 3 8 O 3 T ° ° y /�� /� (P .Z 7 O J m N O J C N • O 0' = n 4 , iy J N cT d W J a Q O v . iv CD m CD A. • O r,, N m 7 • = tv = < • z N < N ; d w d m O N 3 r 3 N .o N W ~ > N W > N O) C4 d ,- T:17 fM T CO LO N C.) v C N Y M a x M 05 _ , - O C O 0 3 0 d R N R N Y �: d CO w • ' o a) N CL a _ • _ d N C oolizi ? Q a) m N t V Co Z a d ") ad *CC Cl ao X 05 cn CM co M m 0 C O • C co 0. Q a N M V O C m .- C 7- n CO CO ni w d CO m 0 C O N > 0 - (. 0 4 ' N'7 N C E O E O O W O co O a) Z13 C C) a V O m O C C C D 2 0 0 co E ai 0, c c 't m m o II N C O L C i L C a 5 E< N Q O. 0 Q 7 M S S S S S S g O O W CD O LC) W W N N .- O 0 0) O CO M O V 69 tO CR t9 69 to to C C N w E u, E 0 isi O) d O) N r W LL CO LL N O N CO CO Z O O ` 0) � N CO (+j ▪ C O a N C R — o- ) N N W r2 O O V r r r N N C C Q CO O O O Z .0 O O N . . _ N 0 (O LO D 6 0 NI re M N N O) N O R M <f M ` OI,_ O u7 ▪ C O us co C C o 'D N O O ,— C C CO M N O co w 3 N CA W 7 7 .�. -3 CA t0 (O R. .0 >- 0 .0 N c o r' C C CO CO CO O 0 0 ,_ O O 0 NI' u) LL v O N M e - y.2 . N O N .m• C Z. r N N CO d W N 5 p) � .- N N 2 C - z C C O M E a co CJ a t' C C. CO N. O it L t' W O (fl CD w CO CO M CO Y o) m t` co ro 0 LL co o) v d 0 ui ui 0 0 0. C) CD w R 3 N 0 3 N U n CO > ° co O >° (0 i+ m CO N O F N co 3 IX C O) 0) I- 0) CO n (0 Y O co r Y o co to O) V N R O O (0 0 F Lei 1O <O 2 22 N M C; LL r .2 X d 1.. CO X to 0 O O o 0 00 o o O CO W C 0o O o 0 0 0 0 0 o O 7 O ri M N N N 6 0 6 u] 0 j( T X ZT U 0 c 0 " ( U 0 w w o W - uJn1aa a d O X 0 2 C c 2 � u w o 0 O co N RS w 0) w 0 > or 0 _ > t6 0 N 0 N N O W N U c.) - > u 2 °- c > w 0 C O C O co co o 0 O m 2 2 m d N O O 0 y C o m (. 0. c) .0. Q E m co d to Q o m@ o IX z z c c c z o CC co - C t s co '° O € m �0 `° Os ` c c U c 0 co o o 0) a) c c g c E 2 I— 2 Q . @ LL LL ) E U W -I K N —I w P) Return (%) CD ing & Napier Overseas (EX OS: W W A A ; - - N N W W A A 1 L ; j . v � . • O o o ° o O1D 0 o in o in o en o en Z1 5 � 7 5 � n 3a g O m ¢° E m Q a au o °° O o b, C B m N > > ° '8 m o (O 0 (D at j W M 7 Q° ref d 5 ° 3 .y. m M D m M al a a m 0 o v _ m o m m o N H @ 0 m m o 0 t 0 Pi. in Q N t y ■ p m m v v c (D 3 o X -< ° m -< `' N x ...< °' ...< x nl w N G'1 CD cn y y O CO 0 .< r O 4. X x 5 m CO CD d N 3 X N O 0 y o -i a) O = X c 6 n A ° CD 1 1 x to o o Z m o o A m n n Y N -< o D 0 O (.n O ' > > (O 10 CO o CO D. 2 in m a a S C.0 A w o_ i C 01 C 7 G 0 G W 7 O p o az e CD d c o° v m c o Z E. x-0 O C 7c9 A D ,g N o N ^ O A) ^' w U N 0 V 0 v (A N < 03 A CO CO O rd-r 7 j 0 N v - m 3 0 m N • m e .O d 0 N 12 d 0 V c0 0 a. O 0 j oZEirf o c xF g X o D : 3 m m ; ° R m N A o W A W 'D W o D D Return (%) t 0D • • Return Percentile Rank Z 1 O ° L •• A W W N ' ° o ■ m ° y ° 0 0 0 n 2. w 0 <, o sr. o p o f p °—' . °0 8 8 8 8 m c 5 5 7 of 'a ii CO (D c to 3 Q° 0 'v 03 CD m Z w d O - O O n 0 a o m m m m 0 cc m o tO S o m 0 . c CD o° Z Z m g Z o w 3 c m 3 y m Xi D D G.. D- o . c o w W O 7 7 = O v+ w -< m ° m 0 7 M o a) p cO X 0 N x x w o N O 13 W O 0 ' m S CA O o A S C w 5. G O ° a D O a' O d o 0 co o. MI o 0 C N O N CO D 3 O O O» 91 O) N o o 0 0 - A 0 0 N G O N _ CO — 03 o 0 o 3 c m 0 o Z ; ; o o » o a 0 . o D m o co m O O .. '• 3 z O ZS c allill O N 3 ° O N o O . CD ., C 01 O o O (J) o O 3 CD e O N W W Z - j ... v O • �= n 3 v v V N D O A Q' ° �, 5 fl N v 3 y IN J Z N 3 W A w O O O O, O cr N o M/ N D X' tn N O C D R. m �o N wxXi Q X N O < /Z _. x� N ...r G > oN x � 8 N O d Et 0 r m m A � M c N c N a r ` ' CI) - a N 11- To > N O > N O p 1 � ) CC ' V O O. T CIS T V C K Y M c0 ` M cO U c 0 v O d Z -74 R N — a_ c c +I- N O y d 2 ce O 0) Lu ) N V 0 14 L • R 0 ■ E 7 N N N O O F a Q a) LL c� _ _ la U V ° V O F a s 7 as W Q D CD Q a O r; CO O rnr rn N co , Q'5 N c d O CO O W (1) O N N O 0 d M • o to C c R C ( )) • N t N C (a m c c L 0 LL t -a- a> d n 0) ° Z5 L on.- CC co - 5 8 8 8 8 8 8 8 8 8 8 8 8 8 a a.0 W N C V O cp 6 aD 7 O c0 N CO V O (p a) LO N O d d E V ,, CO N N N O O O W Q 'CS L CD c L c 1 U CO to Vi t9 Vi 4) 69 69 19 t9 19 to •- •- a) m Oa o . X X W W 1 , co N. c c N (o N- co en 0 0 un 0 w E co E co ( ui (0 } co a N d a0 a a) CO 5 :p N ch a) O) d 00 LL A LL " c a) N. co O a) C c W co CO (o I, 2 N O 2 r 2 Q . 0 m CO • ad N N c c O O o h 3 O re .0 >1- CA N N • M N OD I L CS) v N CO N O cn a „ O 0 o 5nN W 7 7 c r 0 CO • n o C u) co c • N O O O c0 ? O O (0 (0 M) _a • co Q co N ...1 r c o O N 0 U y r _ + c 0 ` 0.).- V M Q L Cl) • O V V C y 5 c r c a rn v r- cu N E N 0 W 0 N .. w 0 v w co i O V O a) w d aI u! 7 H z c o z c O to 0 ›- U( (.0 O F Y-- a dc • LL - o O N c6 a 0 o a) : N C N 0) .. +O+ IZ t al d a) c co c N Q 3 N • a O O Q 7 A o co To o co o v D cii m CO ` o O Lo ( > c ) o O m° O as ° ° co a m E w. E y N 8 8 8 8 8 8 ° 0 (6 (E • 00 0 Q cV 0 L O 0 H 7 0 LL Y .� . � >, E 0 t a) m c a) c a) o U.1 met, 8 c 0 a) E N o E o E • 8 0 8 Q 0) 0 C E IX c a I C Q X X c Y C a1 C LL LL (C x ) N N 2 l 00 ' O L a) u_ V) ° d m C LL C LL 0 F F LL L = o co 0 a) • E LL ~ LL ~ d o ~ w I . 4 IMIIII. _, o y _, o vj Return (%) CI Total Fixed Income( %) -< O 0) . « o o� M u , ° rn w A N rn -4 m ,0 m N T O O T O 8 O 0 8 c) O O O O O A x X D) X p) ry O O Q O o a _ o a _ a E. w O • 3 " 0 3 9 * a s o 0 ` ? ] o 3 3 m ur 3 m m 0. CD • v In • • O- M - CD - 5 3 n . ?' i 3 3 '3 N 0) o m o N . -1 -I N Di ("IC' O Di o w mn o N mn cn N m 0) O W O O N C x m 3 O co _. s O m 3 m 1 0, r) to CO • 0 o co Fl 0 F N N -,1! al cn u, co Ql a ° A O V W N C 2 a m • y N Al CO D en p • • N 3 O . o O N o 1 <. an X o T _ p " O J --• S O A C am ) °O O su ,- 03 r , ° 0 o C g O _ x'O e o O O 74 A. O CO ID a N • CO J tD ,P N CO U O CP - -• A O V - d O _ O N N N <. 3 A N O A» a A CT O al Ti N 7 - W= f 3 O V N d o Ti "" fD "' 3 a • C ` 3 a N 0 j N A 2 N 0 A A 5 O O D O -+ D v 0 - m ° ° m R eturn )%) m • • Return Percentile Rank .< CD - 1 I O V N N 0 m-I 0 0 o 0 0 0 8 8 8 8 0 a v v c T T T -p x x O T X R N (/) a a I la 0 a a o 0 �ll O o 00 m 33I m o �° ° A 3 3 ® to ° ° ,c. )' M 117 g 0 D o �' rt..) y '= 0) N N o so o m )7) O O O O ,' O d 01 —I W F <D N Si '' CO o N 0 0 A O N A w G . O co A - O w O -a C m m o d XI W ,ZI "iii O a: O y W CT T V 0 a O) - O e) 1, n N W re e) CD W m C a O W C o O 7 Y W • M N a ° O v . o u _ -- 0 w N to ° A N O 3 O W - o W o 0 "m N m o im N A o o O 01 0 CO O) ° O • O 1 Fs O !1 N - C g / A N • 7 7 O • H co N A< o o 0 • �, o 4. N O W w d ' N 0 IL 0 CO CO G�� 0 a 0 0 T - w �f �f ao ov, a ' c0 7C 4 D o N 3 A N C Q y�yJ a a o ' N .. O ® 7 �1 O co D A v w N O < � • z N 3 D w N zc aEa x� > ° C4 °l0 C n/ C M 7 N 3N :.f Z C Er; IL > N N > N • N r \� N N L CO A- V x E m o m o co C • K E Y M 5 le N R d Ca N CO N \ , N r c c O N N E C.7 r Ch W ' 7 N N N [ gicl L 0 N ' t VI "ii ( ) a E • a \\L 6- U V V V L d d CO i d to O CO Q. a C Y C1 Q N o Q ° Q ° O O r N f ` CTr a co a y CI�N c� E E rcC• m r) 0E. o W a) o C C co N N co 9 V C C � X X C , _ E ,- a) LL LL co V y U ~ E g m o II" E 0 0 ❑ O d m m O I- I- r N O) LO CD N I 1 ` C O C CO O _ > C7 a •CO CO r r W N a N N N a, co 7 `� 8 8 8 S 8 8 8 8 8 8 $ ° y c c L a) 7 -c m 7 E V V 8 8 N N N O O 8 LS o x X ,_= f9 C9 VI CO f9 Vf f9 V) V! VI W W n .. - N CO N- C C 01 N N L 0) r N .. CO C O Y N a) 0) CO N o, 00 N coo o co _ el 0) N C) CD CO CD an i0 CO W O V CO O co CL Ca W 2 — O .- C C Co R O ce V 01 v o o n o ■ n N CO OD n c c O O _ G 3 3 O CO N O c N fp V N 0) d : N 0 O n ao 0 r c c M •m LO cO CC) CO W 3 T- N I"- (D 0) 0) c c 0 Y O 0 N CN CD 0 7 3 LL 0 CO CO co .0 co .o co U C C O M O O Q U U fA a . i p).-- ao 0) nq c O N E ! - co C0 5 -O N G E � ::_ Li) .4- ( r W 0 rn v N N V i W - .- cv ` e H L a N CO w CD L N CO ' Cr) N O K Z c Z c - 0 l E I LL LL V Cal V 0 i' L • O O O c a 0 i CO O a) o Y m LL L 0.1 c- d (0 O n + = N Q 7 N 2 V N 4 Q 7. 0 0) N j 0 0 C] Cn a L N 0) N N AI F a) i 0 L ` O 2 U O 0 0 -0 0 0 m 'D > C CO • 2 O 2 N S 8 O 0 O S S 0 a .0 co N N O CO CO O O N 0 N O a) 0 a x c d c m u�n�ea 0 0 0 a) E a ) O E O E ca E O o c 8 8 y X 0 c U E o tu •� ._ j , L L U O - a) Y O a) • c a) co U U N a) x o • LL u _ C i 9 c o d LL o Q N CD Ce • N X w O. O O > y (L) O a) a) 0 ❑ ❑ C = a) E co Ta E f0 E O L : YO 'O cri 03 L O ❑ co C ❑ C ❑ F 1 2 O. ° m❑ CO w6 R To a) • O To, F 2 • c o c o m LL i— ii )- a 0 La o y —I o N Return (%) CD 1 Domestic F ixed Income _< O rd . O s) M 0) 0) V -1 N 0) J m co f0 0 0 v O O• 0 0 o 8 G7 0 0 bb o m xi 0 3 a a ) 0 3 co g ° 3 C a m ° v 0 N . to m . to E o o ° co • a � � c e e i � + ,. 0 d 0 0 ! m 0 o O C o • :t _ o T ,-' 3 3 c) m ; N § m 3 T X N x y N at • m O. co 0 a m n , A o m CD a' - co a 7 b) T T o fa Q o 0 m 0 < o 3 al o 3 W a s 17 , o <D 0 , 0 , 3 3 5. u) 5 . to m m ° N • p a) x• -I 3 o 5 y v 0 m _ m • 0 A N N m 0 0 co x o m ul O N n O O ' 1 � y �, N • O Co J O , O Cn O 7 7 3 -1 0) • co co in a . • N • ,v • 0 m 6 ,7) a N 1 rn cn cn m o° n T t N OD V A C < e V 3 v S 0 0 o n) ° • O J m 3 0 2° it O O „, C O A c) C o Co a i ra o o 0 x o cn al o 'm,=. N 0 D. 0 0 P A Ch N N N N .- < 7 0 -, cn o Oa 0)a v C O 'O d 0 0 0 a) 0 A J c0 0 O . p O C O aD C x f > C FF 3 2 O co ; ti J 7,3 . 3 N ? • 11 tP N 0 t0 to A V W 0 0 ^ D D Return (%) CD • • Return Percentile Rank ° O '-.1 S O W a' •• O 8 o t o o GI o o O c o o N 0 N o. N N O O 5 3 0 0 N) 9 3 3 w ca 3 3 o 0 a m m 0 CD CD CD N ur .. 0 ° S 0 • ' 71 - n �' 0 co T T - N N CO K W f° Eli 0 7 X X a s ' Z O . co 3 Z° N. g 7 J ° o 0 0 d D IV o °: 53 =, o' w ° a) O) ID CD W 0 0 cD CD -.< 0 0 w CD O CO CO 3 o cn ) 0 O 0 -< ° m 0 co A N 0 N co m w O O 0 x co N Ao N _. .xi 3 N N .I S a 0 w ' .. A O K c) 6) C +, D) a 0 W A o-a (n 0 0-0 m ° co a xi a w O) fn LT CD O N •• • 0) O> 00 • 0 1 0 0 N W W W i C N 0 e; 0 O . . e N 0 0 0 0 o w o to W O) W N O '_ > co > O co ; N; Q o • 0 N a O 0) e co O — y 0 0 0 m O J e) A o 0 0 D) o 2 .1 ° vt CO w O O. • y • CD C 0 (n O N 0 p fD n 1 e�ryy it N Co o 3 W m o ° o -01 m _. 0) w �f o o �f a t7 3 x 7 (0 0 01 F N Cn J 7C o ID 0 0. CI y a a O O M N CD ► Xv m m a o o N 7 XI 0 0 C 01 c p < ' � z N d N g . 3. o N / F W Ts CI _ 3 N _ 7 N co CD CO p ( L R O O CO O (") �J d N O N p N ` �� V a) O O a) R It' N iV O 5 a N 2 as Q 0 ` O W 7 OD O r E N CV .0 F- o m )Cl) h 1 Li d Q O u_ J V U 0 U H CI) y co N y M n D.Q N a s N Z. ao ao cO 6- co CO C O p d , 5 N c a 0) o w a) 0) M O CO N N N d O E O co O co E d c> c x C C L O 1L o f 3 CL) cn CL CD o mu; c � c o C C ca 8 8 8 8 8 8 8 8 8 8 8 a� CI' N N i0 O O N O .6 O N O , n C V CO o. 7 V co M N N O O A W N CO rn o 'Cr) H a) N = 9) 69 M 9) 91 M 69 69 69 19 69 O O O ra 7 cm 7 U O °- O a x W w Il O N CO CO re C C 0) 0) 0) a) a) N- 0 O) N n O LO )L) 00 i C7,- CO E, E 5) co C)N o0 C)N p 0' N C U. c CO LL � a3 R c0 7 ea ea r2 a 0) n 2 - O ix } CO • V rn U) CD I: O 6 co 0 c c O 0 C C O n 3 7 IX a .0 'C 'C ). C) N N W m ). o M U) U) 0 D) c0 CO Q C o Q C 5 :p N C = C) N CO W = M M 7 ao N 7 N N } M u) C C N N I� NI- 0 0 V 00 .— :0 S .0 CO Q CO r. N .0 C e - c _ U N 0 LL M CO CO CO Q N N 0)) co � vr co L 0 • u7 M V = 0 C N d .0 d C C. p •t E O ' L c o vs 1. O 2 LP m n d u) d N = i 1- Z c- 0 Z C 7 Q �{ �. } O co O L 0 N y 0 LL O ci O F f" H w N c6 a co o - 0 co N N v L r d L e tr a) a) a) C O CO O _Cr CO 7N .O CN )f) V' + � C N C) V C O O O O V > N d O O N,- O M 5 C co C f- O N C y 0 of ct U 0 O 0 co c' la - 8 8 T fa W r+ .- o O O 8 8 e O U (5 c N - O OD t0 Ni N 0 LL E 7 L co N O d : o : � T 't m m E. 0 E 0 E 0 w n�aa a E E to Q - o -0 8'2 E 7 i_ i.c. N ' a X c a N c0 N G >? 25 — V i t C.1 LL c.D r a) X W y C c ZZ v) co 2 0- t Z D CO CO F o E cn = y ? -o w y --5{{ y Return (%) STW Fixed Income (%) -< O T O • • cn cn o cn % cn a' m (n <o 0 0 0 CO 0 0 0 0 o m K cn cn X -n R co o x 1 N - o F. m 0- m — °: . 2 • v 3 0- F N °- 5 CA m-n cn a , co co 5 * i ° o n x x fn o o ° O C 3 m u) 3 m C O -- 0) • X ° G = ! 7 7 i at n r, o o <O • c a D = 51 C l) 52., M N ( 3 D (a w 0 0 N < W O m cD cD a • N • D) D) '< O c ,., 0 c, N FA -< 0 • o • o w m c ., o o m r �i N y m si p . O F O V O ' F 0 ai O C', co co 7) ,..c.., 7 m x cn (T V1 CD N N • fD O 6 N N ( 3 b J e 0 • • N 0 a. 3 O e r N x O J O 6 in O W - ',. D, C C. ^ �_ D1 C 7 p, O A C ? O 'o c A 9 n:, a• O A ..r - % CO A ... "' .C1 N 0 N 0 W R O N D, W (P A y O CT o D, o O N N o N N < N N O 0D M 0. u) o V C F o A c * o o co . y ' 0 o W ..n - O A al . - 0 a (O m 1 C 3 N co ( T N cn m N N N m W CO o D o o D 0 o y 0 y R eturn (%) tD • • Return Percentile Rank .< CO • • 8 8 8 8 CI) rn 0 V (T N XI m-I < < 8 8 8 8 8 ° _ o N O < < j T1 T cD 0 N N R. N co o. O. m ' 1 0 o '� O O ,3 3 O • c CD (D 0 }y w Z ° : 3 Z CO • � . d CD CD 0 o g O iF D O. p 0 ■ D CO o o = 0 N • . tu V7 W -< c a O W H O N N r 0 G7 rn cn x O N N .- 7 Km ,EL) .11 ci O (T cn cn co W W W W N O o CO CO CO 6 o O W g N =O O • C O N W o .. 07 0 < 0. O O oe O N 3 1r O • a N N o E w ^^ gO. O • i 0 •' CO - o CO 0 3 A C .P. <O N W d Ct, 0 N , 0 c• " . 0 o cn v O O r ll ) t7y (.7' ? O O N fD m CO CO " :v N W N -1). .C a o o N ' 0 0 0 _.. A a op.cooD, N v v ° a • O © r, 3 CO v m o o n A tv - w �f o �* CO o o CO 3 x 3 N (T N 3 J N y A j C a (D n A N ]c a. N F C m O 7 q 0 0. co co O (T - H '= PO 0 A o0 < � Z N tD < (n N mao 2 - - N = S o d cc th 7 NI 7 N _ v v) N 1∎ lv N N > N N . di V N N N ` Ql 4- W O Y CO N Y M N C O E f., N `J d `' CO • ,- C C W - i"' w ' � 0 W = co 1 _ rn � a < ....: . _.: . a . . . . _ a. 0- a a � < < _ o a ~ m 0) , c_ O 0) 0 f7 •O ell C y N in O N W N N R C a a R vi E E E 8 a O m 0 m / H O I 1- m CL CD o I 1 > n = 8 8 8 8 8 8 8 8 8 8 8 C G V V M M N N a O ' O 0 0) � � � c9 d) <9 69 69 M 69 c9 di 19 4.13 c9 d L N N 2 V r C y 0 0 cc. C � .c C W d O) 0 N c O c O ow x W W I N m O) CD } OD K O U) r- O N co N n • C C N O) E. E. LC) o G O)N O )C) .. C O LL c I.L. ›- as ca a n- N V CO CI C N cL O O (0 II f 4) 01 W OS N W to M 00 a0 U7 Q r L N N } O O 0) 0 C r) O 0) 0) O O co ao a0 70 . ' �,, >- N c' N N N CO CT) .4- $ ', 1` O O d C O O N C C n W 7 c? 7 - C) co co 0 co C 0 co N c O N 0 d' T NY a • N a co N rn vi co r` C T C O M 0 U O 0 N N E O C F y )- O 0) 0 LL co c0 I` 4) O 0 O N a i 0 /L) 0 L" LL C7 :a N N co N N N + O) (0 C O N re A 1 — N 1 — Cl) 0 0 0 L T VJ m a a . u) o ci 8 8 8 8 8 8 8 8 8 = T 0 O N O OJ c0 Q N 0 (V Co N c 7 N C; 7 N 2 j C.1 C ., > N ,- w > O 1 UJfl BUJ 7 0 N N c0 N (� N 7 L t Y Y O N 11) N O = O N ) p . p >. O) 'C C A c ea 1- o 0 2� 0 2' a a a a > cn cn = P m m " - f° a • A 0- o v a a c H c C7 cn m 2 0 - LL LL d •• p c En U w 1 17 W es {{ y W y y Return (%) STW TIPS ( %) -< n 0 N o m w a 0) oe A - rZ1 o) v c O cn o o o c. C) o 0 0 o a O C v = ai d o. a O — c co f.0 -i fii _i CD C Ul c W o C co cp n o O cu N 23 ( ! ) 0) E. 3 < M m m c O rt c 0 • v A R N R N N (C 7, 1 ) o C . C C A • < CD (n -< (n -< . N 3 a - - CD - in C o m � N 0) N -1 -< O co 3 N o CU CO • = N m o ° CO rnm -> N m a m v o A 0 N m (0° -< (0 (C 7 m -i co a o 0) co Q 6) W 73 6 A C N O CO i0 ' CO DO 0 O -I O o 3 N a X V e N N CI C o-• 9 N c O O m .2.. O - S - ')' = m� °o w a A a o 'm m m m N 8 • 1D • N N -. < O - m 3 0 = a)) 30 co co ao .m.a • o v �^. - A O W d O OD (.11 O O Ot co N • A 0 ry 7 (o 3 (D ' 3 C O g, j • m ^' m ^ 3 n 0) N 0 O n � w (T w o o > o D Return (%) CD • • Return Percentile Rank _< ° O N m o (0 N • 0) c o a 0 0 m o o N 0 XI CO (/) ° a °0 8 8 8 ° C cu Q: C7 r2 = a _1 3 7 v a 0 C t0 C V cn U) Co y °m &y ( 0) -I cu co ci) O n 0 7 O N p • aQ C 0 x O 23 O C o 3 `Z CO A z ° co z° dg ' Z 3 c `fl m ▪ A o d D coo 0 d C (1) ,e, co 3 7 7 F .D c o n (1) t (Q y C � 0 c1 N G) O O co A A o co 9 (D 0) cT co 0 0 N y -- IV d y O d W 0 o °J c)) p y' -4 N p' ix cp V V cn a) 6 A i...) O V C O ( O 0 0 O O A Co 3 < w N O fi ` O O a O O o o ° 0 A' , - '' V N O N co - 0 03 _ , 0 c N y o co .- o W �' o .. a .. O O V O O A o o e8 O CO co Co O 0) 0) 07 CO 0 ii-li) --• n w o o a D N. C = J O CO i. "V1' ccoo • O .4' 7 W O 0 Vt A A A < . % ° c ._. N N M o r-( V W CO A .r. d ,. 0 -1 tIV 0 CD / ' 1 � °' x a' rn x W o C i I a p J N C. C O ▪ Co N -. O C T N co a. o O N j C N O � m N -I< r.. Z ( • 7 O V N CO N 0 'V � li -I T O N 3 • • m ow: S7 d D) 6- D y m O O C7 0 0 n c (D 0 m ti D- O a- ° v AI — 0 3 G1 C w y m IV m G T m -.. N X m XI 73 X m a o a X D N 0 m 0 T a 7 a 0 O o 8 O S y 0 = 8 CD N N 7 N ' 3 M 3 M m 0 3 3 c O m 7 3 (D W O co co 0 3 o _ s 0 m v CD CT Q a) ° x 0 ° x C f x o 0- - o v M Return D7 -' CD ;: a ... x' T O N U N< (D 0. " N (n Co A �l s K N C N C X 7 0 8 8 8 8 8 8 1 C (D O N a CD x 7 N O co 3 O A ( N Q • m v W W A y xi 3 v (D n'i A CO N m (CT O1 .. 1 7 Z O Z U O) V 'O 7 ti co ti N ? m is m co 3 1° — co CO O co • N -cc y CO A N . CO A W T j A N -1 CID m 0 N U Q - V A U O N O U N U _. • 7 7 N U U i. _ < a 7. CO V C C cn O 5 0 o O L '. 7 7 Cn -, 1 CO C m co w 0, 0, 7 7 U U Z O 3 p co D j A A —co XI O N - 53 to v , O O I � N U U Z i m is) D w C O' < _ C xi O O N 7 7 N co (T W V U Z N O U W ( N T A A (T V V m -< O V CO , 7 ."O 3 E N a Q A 41 Cl 1. v O (C 1 T 0 7 i M 91 ito N U U Z (CD CO N f o ' m D °' w 3 w 3 < m m A M m O O N 0 6(p9 re fA EA b. W 6.9 (A (H = 0 0 ' N 0 co N N 0 7 01 ,00 8 N WW - 8 J CO 3 0 e N ID G 7 0 8 8 8 8 8 8 8 8 SI C N' ou W co K II CD W O m j m 0 E L7 0, 0 0 3 7 7 N — D) 0 0 0 O (O 0 T 3 3 4 i m m co at • & to 0 5 a co rn co 01 s 8 m m 7 m co 7 ▪ A W m N 6 . � (C ~ 3 N .. m m a 3 m - -0 — as CD 0 /�� N A A 0 N y �_ N CO CO a p d 0 N O 0 C m (D W U A 7 7' N 3 0 - O T _ N 0 N d N m m gy ._ 0 -c., ;mw m ; x 3 x ' 7 ^ / , v0 V O � N e W .�i CT 0 J M/ N �o n �i o ,< o ,�, O (0 A N C co N C co 3 XI co c CD �., = n) 3 C D 0 fr""z N cD < �Xa z d 0 N 0 d N Q. O N 7 N _ Tv LL M o O O c co a) a) ..1-'5, N > N r-- ••• N N N r n 0 r y C i M M Y M M W - ` r3),- V v v CO LL cy Zs N O N C O O E 0) N 2 r E CO O O M N LO CO O N = M ICI E 0 ` O) W -, N M N F E O c d a =y � co a 1 • N a o Q Q N X m L M O N a) a f ' C L N l i O ` 0),- CCO W C Tom N 0 y 0 U O d= N (O <'. C _ 2 u c� :13 r - E La - a L C. 0 n 8 , a) O w C C C = w J Q 8 * zi5 0 w d s a m ° 4) N a) L3 I I d� d� r o ° x ° x = 8 8 S 8 8 S S S 8 aLoN W W E N L- .- L- 0 0 0 m r C 0 CC) CO CO w U 69 69 96 69 99 di di 99 69 0 CO O O c c a) a) y in O)N rn IX c LL a an Z V co 0 N u., _ N r-•• ITr 0) C O CO 5 c? N N > ._. r W a) V C... LO O O a r N 1 O N Z LO 1� J7 H N N O O } Q M Z N O) MI u) h N N >= C N O O co N 7 7 } i C O - sr N Q r C d L N _ - Z r O C C u7 CO C C N W 7 N. U) O O n N O O ,-. U 0 0 CD cr rn } O) N N 0 r 0) N OD V V 1-- N N 0) r a) T w a) 0 O d 0 o) Z C N Z G v o) T H M ~ LL N O CO • N O r i O) r co a) C O .0 (J :p N E LL CO r C C. CO CID u) y 2 a: - CO W u ) a ri ai _ N y 7 N 0 I- 0 0 O 0 O Q7 a a V N �p N O pp 0 • N O , O M I— ` co M V c N p C X C5' r N r S S S S S S 8 S S 8 S c a K co O O N o m co 7 N 0 N X a r LE _ Y d L Q _ X X UJ II�Ba d, X Y C as • p Q .G - m E a 0_ O c ce ° a b v O v T C7 W CO a) 10 m .. c a) 0 LL o u_ - E D C u_ m L.L. = a) = a) 8 ca a) 7„- — �a E co 8 w . U E E a a) .0 C 8 0 2 N U C U 0 V C C 4 - C C C o w 0_ a a) 0 a a) �, a) m Q ' = a) - -J x O i p To 0 2 U 0 m To C O C U L ° ° G O Q 0 U U L l m c _ 2 co 2 a) � m ° 2 ii a ii a a ° a U - n - 0 H n -I T W O Q o• 0 m 7' N 3 G7 D m a m o m 0 7 7 T, m z M m > m c o El' ' ni i(' r O CD ( D O M 71 XI O ID Q j �+ r 7 D) 0 N Q - n N •.< O D) 7 7 O ,n O7 O N 'G O 0 p n N 5 47 °I O S W y a a g - m a c C a a 0 0 n • T g 7 a 7 O 1 CD CO c cu m o- G) o °- C) G) 0 0 0 a 3 W a O Cr co G co a m m W R e turn s? x - • CD D T co X a L N N m A V ,0 CD x co N O 8 S S S S S 1 - - - ' s y 0 8 d O " O x O N Q O N O W • 3 O Oa >v O O d A O CO p CD N c v N C D CD CD D 1 CO w CO (I) 73 ; g a a a m m ? - 3 cn rn o Na a a7 "� - O CO (O N . N � ' - A OD T • - I W -1 A CO Co 1 7 d a i. CI m ( N u 7 i N O -, N _, w N y V A 0) CT N - • N CO (T j M 40 CT O O O O O C- 7 7 m m m a c 3 D " - D -< .- �. A (, 0 (n N O) .Z1 7 7 N to y (T CT Z t O a D W v o 01 a c_ c V _,' Z O O I) O V ( A D A y N c . m -C O v O N 7 a A A 0 7 14 CO A -"la 1 d z O ( D{ -I d T N U CD co (D N CO 3 `A 3 a) co 3 7 O O -, EA in V) ER ER ER ER ER ER C aD W N O M co ( ( te a O O O O -, -• -, -+ m m W N W n 7' A W Co O N A S CO O N A CO 3 14 Cl . 8 8 8 8 8 8 8 8 8 8 8 0 E -0 o 4 o c� , O O O K ' 1D S ' N S O A s 7 0 A lD N y • co m - co 0 3 m a -1 I N O 7 D) r 0 7 > •c o C'f n d (a (D - 0 - O c n ci m ° 3 °) 3 CD A W V 7 Q 7 (D ID 07 W Na D) T v O 7 , W N CO - ~ O a N M co O. H J O c m 7 x co a Cr J x 0 o :v n) N 0 - I N CO . W c m ° p Q O M `D m 3 V� CO CO A 7 7 N n O T Nap NO d J CO ID al NO `I ' OD N CO O N E N E ' T Q co CD • z oWXC C z 0 co IN -1111111.111111111111111111111 - C) - 0 - _T - T - __ O O Q • y O O 7 • 0 m 3 w CO v 0) C v z a o o 0 A A 73 10 O CO m c► A A C m m m m a < m m D a ) 0 0 en m m CD m 0 ai m 0) m -0 1 w Return 0 m O O o_ m 0 N D) 4t 7 0 O O co m O 8 O 8 O CO V C) 3 - 0 0 0 0 0 0 0 i.) y 0 3 O 0 0 O 0 0 o m y co M d M O_ e _.--, m = `G , cn O .m. > al W m y N N A • C -' C A d 0 ! d A • � N = ' N C �' N C) p m O m y m A 4 0 m A. co v m D 0 m T 0 O N N A • Q 7.1 N -I N cm W co n Q co — I 133 V N co m < N (D 0 4. CD v (D ( CD fA C) N XI N m 3 m a r m N 0 N (D ., N N 3D V -, N j M W J rn m m j A co O V co 'O 0 Oo W _ N -. A O O CD O IV 0 O O ' 3 O 0 N co o h.) o D d ^D , 0 + c C W W A • 0 O O CO A A N l 0 0 CD N cD j CO 4) --.1 A A 6) v v v N N N L � A N N W _ Z co W cn 0 0— A c0 D Q Q ,;.) ° A , c c rn rn °m o 0 0 A N N 0 0 y cn II ' Z A v 0 m D a 7.1 3 3 (,,) D) m 0 0 m e) mm c ;, co co (a eD (O CO N N m m m p) m m A 0 cO D) m N Z N m y m n) G O w 0 D u( - C - 0 —‘ N co A • w cn m m v O v O EN el 92 ED (n CD M CA ce el cn (A c n N rA rD y 3D co O O —. N N W CO A A N N 3 N ' co N O cT O cn O o, O Ut O N O N o 43 A 0m 8 8 8 8 8 8 8 8 8 8 8 8 8 c A --I cn 0 N ° _:A < O 7 " I N 0 N A ' ' O -1 CD m 3) Z 3 3 m 3 O rn O N m 0 m c n m N co 0 ca ca co 0) - c„ — mm Cr N a 0 IV a O 0 0 -, I �`° I o moo 0c co -1 A a s A a p A (p fD A (, N 4r---:) a m N C m O O m rn —1, — I O n p w c m n n _, 3 j 3 a O m cD N 0 0 3 N d N FP, ( 0) 3 0 a 0 3° ; ; 3 2i 3 A v0 o c cn 03 O y ttO a) <D �-y N N N m N m 0— XI co co co O y `° x ` 1..'z NM t k 2 2 . § J / el ! � ! c m Q co CO N k / k E. • \ ro \ . . — — A3 as l- ( � �� \ §§§ \ 2 0 ` CI a. J i , (1/4„. }a. k L . 0 « <0 u_ ( 3 \)f CD | � a Z.: — k m ( CO k — - ƒ co _ . 7 a | � E _ CA LO a7§ k - � ;m % J 8 8 8 a a a 8@§§ a ,6 • . . J 69 69 69 69 09 69 co) - - - - _ " ...MC § uJ w cn _ ____ 7 o ¥ 61 ii ° 2 2 � � W \ � � ) § \/ co Li. £ ■ $ 7 IX Y. ¥© CO 22 \ c _ § f 7 / co CO k k ›.- ��aa § § � j 2 � \\ 0 + "m CD CV .0 - . �� co § ® A \§ CO . E & �� / /\( / — �c6 E § ® A ■ # Z \ / Z . \ ( ® 3 % o E \ / .a- 3 [2 ) . • : Q.) / k = a a \ 2 o k m f m @ - § � �� \ ` - o f a ix \\ § C ) g $ = g ) c,- , \ ) k ] § E ) } \ . To Id \ -0 } 0 n , , , ° k\ } » k} _ , . . ± E/ ■ - - 2 w _. ( ) % o \ \ £k } k k)/ ƒ - ƒ - } ee § k g■ ` ` Q S. 4111111 > 0 1 m 4 §g 3 oe § w ( =mm = £ z> © w s m E. %@ ® m m $ - o # = m _ $ (3 _ 0 F ` $ m m � \ • f _ ) - ƒ ( E . } — ƒ _ - 0,- £ m _ a � , co 0 C ) ) 0 0o. �� \ m ; 0 ' c o E 0 , Q Return ° ° ' ! _ G / / / 2 0 o iii ,D z / , 0 0 8 ) \ C \ — CD ; -I a -1 -I ( I , , § z K w \ 2 \ , ! -I } ■ cD 0. & / v « ƒ CD ~ \§ 0 7 g =jf /k 7 - C. NJ 4z } ] = ® a e »� en 1-:8 3 . XI 43 z f v v a r> q ■ . £ , 7 = j\ I 0 0 \ .A (0 > 4. Nu - : \ S 2z ■ s e III @ ) k 43 C § 4 ! CD CD = \ f , 2 - — — 3 ao c., } (' \ k ° 2 ..< • \ 10 0 o 69 69 ® 2 • ® { ® ® - y 3 J). \ (7 2 o 8 ( % § \ , 0 0 0 0 ( [ 2, 0 | | Z CD z > Co _ ƒ ' / ` § § ) 0. / ( o. zz $m 0 a "o \" { ] o� o» a a . 0 a ° §X 9 70 ) ƒ a i ° 0 � \ = \i ce§ R‘.> ~ co cn P. 2� 2f 7 ] � � ( • ( ill �/( } ( �» m I. .. @ ■ - 2 ! ( 1 70 Z �q¢ ( N 13 N z C c c 0 0 ,�. N a 0CD 0 U ao) o 0 .... O O 0 0 CO 1`.- M r �, 0 0 M CO M co .� ._ .0 ▪ O O O O W W- co M O O • Q ca O O ,--- irt..1....o i co E t V C CD m ca x x O a) a) c0 •` a 'B a) c c x > x • O C 2 c - c u) c CD C..) v a a) a) a a) o m > 0 I- m C13 m H a) co U U co N Z a ui U N U _ u) O (n O C O U C m cy) O < D Q Q O Q co a m m a) = a) — c° a) > 0 E a) a) a) N c0 l6 N co C a) N w a) » co u c E E E E E= E E c) c O E � E a) a) a) cn a) cu a) cri E u) of '0 C C C C C C • C — � - � C � x O r T O >, ° >. >..(n O >, ~ O >, >. x O n a) O T EL co co O co O co c0 N co N as co u_ ° co N co O O C N N c • L L O c 2 C co 00 U co ca 3 co U a) a) W F. — co co 3 N F< CO - 7 m Omm mm u.mm toe -m - , m 0 0 — O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 O o 0 0 0 o 0 (0 0 0 0 s 0 0 0 0 0 0 0 0 0 o O O o 0 0 0 0 0 0 0 0 0 0 0 O o 0 0 0 a) ui o u u O o 0 0 0 0 Lri u o u i o o )ri Lri i cc) cc) ui 1ri u o u i i ui u o i cri - O M c') - a7 (V N M 10 N V N ,- ,- V N �-- c6 co a) a) x > > x a) a) _ x x- x 0 a) O a) D 1 ) - o 7 a) a N Q) C C c .. C e- z c in c z m a) a °) (D ' a § - a) a x x 0 ) o ) . a ) 0 x w c ) 0 w 0)F- w N O N x N z " W °) z w Cr w 0 c Q a) 0 Q= Q o U Q o a U Q U Z m m m c m m ccaa mO a) am O :> > H H x a) 3 x m E H a x c ° x a x m co cn a 0 m w £ a a o a �i a x i a S a x i w -0 m m e a ID a) a O co x 2 0 o E c E > 0 x E E- 2 S E c o E N ° E x ag a)1- �) — o 00- a) (f) o w m -g C o o c 0 a) vi a) o 0 0 C C (7 M M C w O O O c c D w O `) w co 3 O C 7 O C c 0 0 " o j n n n co Q C) N- CO o c in Q °) CO N Q o w 0 v, 1_ w 0 O (1 fn o l L w 0 7 0 3 >. W— 0 -— o > > W p — > V W 3 w O >` (/ ) 0 Q w p — > > w RI fir) co O O O to a) N m a) co co N N ca _ O w N a) co W N a) ( co W - 05 Ti To p a a) m N m U ti d U c v = U co fY Q u u) ) , U . N 0 X O co > - :. 5 :. ca c/) 3 u = 3 ces m co u 0 0 cO 0 0) 0 a) = CO U U 0 0 = CO CO 0 F < - )03C" - )0 - 3 0 C 0 I I O C C C C (n m m 2 - C C m m 0 z W cc m m 2 z 2 rx m m 2 z K cnc= Xacncno 0 cn0) — o T C — ( D C — CD C co co cn - o - CO cD o cn 0 d m < O — — 0 D O W—° CD V 0 0 N . .. d 0 0 CA 0 T 0 co 0 O T V T O - 7 C °' o m o O o a m m 0 0_ 3 q co j. a j O G co a a x 7 d d 0. C o (D co 3 in X X X• (D X X X o c- 7 (o X X (D 0I (T 0) CO (n (T (T (T (T (T 0 O _ S 0 0 0 (J 0000 O O O O O J (.3 O O O O O O O e W CO T c. D C D - I a cn 7 O p c c Qo c c �1 O c � 7 � po N =o w (n = co co • • (1) 7 -0 ? o �i 2 D V o 00 -_ 0 - V 0 0 N O p. O m 0 = 3 O co - O O V o 7 0 N 3s' o m o0 0 m 30 X co a 7 0 F x 0< 7 X 7 n C 0 0) N co E X s) rn N m )( S CD C .0 c 3 = ,? .0 fD X O0 X O n (1 N .' O 1 n SD ID 0 0 . _. CD CO ° o °o o oo 0 o o 0 0 S 0 0 0 0 0 0 0 0 0 0 0 3 ID C.44 > co 0 a cr owt = D a n p cp o nn a -I 3 ; °� �� -co N N C. N U = Q o w z N o N o a) o _ x + C. ° U a) a) C 'L O a) ` a) > O ' co 0 C a E U a: N E a) 1�1 C CO 7 a) C 0) _c a U U Q� O O Y (a a) �) C C 0 Q "' C a) 7 a7 a1 Q. a E a) n > t a) L E E Q O .L �/ = C O a O O L • C 't 't = /') N a) O N 't 7 0 O � - W _ O - a N 7 O L CO 7 O n > o a a C a) = .c � N - 0 0 O 2 O kji m a) a) - a) a) n a d a) D Lc co C m c (0 . co 0 a) ((0 C ` E .0 .0 U a3 .LO. N N O C a) a o O N a) Q) N O co C _ 2 a) an a) a7 Y N as as O N E CO a) L + L ' E >, U U ` .-. 7 .L..I a) L L as • c 5 o- a`) c U c - - N of y . Y � .. N _c O a) a) Y Y L O O a) m L �a - T ( T j N as a) L Q o n > > 0) 9 ` U E - > a a3 n Y) O a) N a) 9 a0 Q a L E . E a 0 ( > a 7 O E O U a) N N O O U a) O O o L Q . > N a5 o as E U a 'C Q a u) U S co E (a L 0 0 1 = m a) C 7 8 N (o C U (p (n N = N n E 7 0 _ n N 7 x c O `� a a O Z a ) a) i N cu o N 9 -- a a5 .-� Q N O Y 5 O N > n O a) a) O 2 (a a O w 7 O K's n to O N a) N E CO a) N C 4 L 2 d 9 (-5 U U 7 C a C • C. n a) to 7 U C a) O 7 N �° n a U a7 a) n 7 O O 9 • a) a7 N a) v a) OL . . _ (a a3 a a Q a a o a m L ... a) `� a) E w O O a) a a) m a) C 7 a) c O > L U-c a) O a5 (y `8 n 0 0 a) a) > C D . O L O y > u1 . L - � a) a) 0) X a7 > > C w a) w, U CO Q a ) O a c 7 .0 O C C V) o c _ L a 0) E C � . LO • a) . 0 0 c co . ._ . N S) CD L > O a _ a) a) O Y a) C a) a) a) Q ° as > Q) C as a) 2 la a) as > o m "'- a) m y 172 o o ) Y > 9 E n C .p CO N > 7 C a L N -O a a) U U N "0 a3 co C T o a E _° O W O CO — o a) a) 2 C C N L L V) Q) a) > E E a . L-. C U a5 .--• N Q E o a) co 7 . . Q L a) ° o `o a) c ( p aa)) o c c a 7 as ` ` 0 c c N N U i C n L a) O a a i a) Iii ro a3 7 n Q C N N 2 . N (o a) a) a) a) a) c c E N a o Q a) a) — N E T o (a 7 f6 c C O O) 0) N 8 c co C 't V7 N t m t o > c o o o ' o i o t E (a co co a a - a a n x -o (a c 0 U a c °) a) o o a) a) a o o ) ! d d V) ` co !o a5 �O N > Q . a > 't �t O .9 0 2 m C — m a a) o a) a) N O as w L .. a) a) j (Oj �O a) n n N U) .L O 0 U •C E 0 a� L 9 (a c C C a) a7 N N 0 0 0 a 0 U) U 0 O O c co a3 a) to o L U 0) n 0 O n O O aS O a) c O j C (5 N = a) (0 w C C 1 47) @ c n E O O O O > a) a c c O as as co 2 as as a o r o ' n m ((0 0 -o o c m n 9 E c E E a _ > 8 _ o `o L -. N o w n a N Y CD a a a) a E a ) . w (0 a) N o m o m v, o o °) = a) ° m c a Y w c c aa) n n E 47, 9 O O L a) L T — 7> as .0 m - 4= o N a) a) a O O = w 2 c 0 - ° y = a c Q • o 3 - a o 0 N - a) _o a ca N a as a t N N in c a w O O u/ c r m N 0 Q c 0 a O c C N a) C m ( o p > « Q C a) a) a) ill m a a) 7 (1) ° a0 o a) 2 w 6 ° E c a c i a) CO 9 " 2 w a) E- 7 N Y a E ya U ° ° co >, E @ m o a) d > > a) m 0 o E L io t o m m - C 0 C 3 75 N 2 C T to N N N E • C O .. _° - ° N O O T a) U (a ° as a v, a o o ( —° o �' O E a c E E Ili m w E N CD C E c E m E E a) `� �' `o a) o L_ E a) a) 0 U < a L Q c Q H L U) 1 O Q o H ,-= H n Q Q < H F- O Q ` C 0 (a a2 'O O Y 8 O T C C Y a) a) ▪ N Q N l�6 C 3 7 N 7 7 S... a) a) C' Q CO 7 CC W Q' r N d O C . O . _ a) S Q O c 0 N H U U cu • co d' T C V N 0 d > X d m O N o X a w JIG -1C C O F o w g 2 y c ? c -0 O o iii z V co U • ' o o E:3 O O ( N (D lD co O) W L � 2 N — YTI N C C z O N O N 1 0 H C Q Q co _ Q is Q Y 3 N Z Z Z O Z c Z > >> z d M y c = C -C C13 U O d Z> Z Z > Z > .47. Z E Z 45 to L L E E o a Q o Q Z O Z> >> 2 Z • ° az (440.--.0 E a) axiz > > >>> Z> > c O O U O c) Z E Z LO a > r r \ > Q Q > > z . z U a Q oz ° > > 3 z °> c „ 4.-1. Q 6 > 11 z P 0 a) o 'NO < p O O a o z Z U Z > vi a) N O N n c N H 0 T o N Q 0 > > > > > > > > > a) N > 6 n T a O 0 — N c a) > co N >. N N a a) O_ a) > a C > O V L T a w D. ) co C U) m 0) a) a) -p a . 4= N N a) T O) O c C w Q 2 N= a) > a N (a c w N to L .. a) N= T O N CO C_ a7 .L... co a) — CO -C C ° N N a) a) Y Y p C- 'C a) w p E m a) _ . L N 8 co O-( a) o 7 > L L E • a) O a) > a) = ° C C N C N - a y L O p (6 O) p -p .t N 17 N N p - �1 O 8 L-. Q .c Q � L .. a Q L -. O) C Y N a) N N N j O j O E N N N " N a) > E a) O O ca E Q N _C a) y O p 7 T > > > a) L N N O _ a) Y a) E a) CO m a) CO CO To C a) a) N C a) C t � a) � w j L a) c0 O O Q 0 U E • a .L-. a) O a . a) C) a) C d Y N U fa 0 N 0 a N c0 N co — 0 a) Q > a) > a) a7 a) > a7 ca c ° U E U C L m ° ° E o E o E-c ° a3 U 1.- N N O� L L-. N �O N Y N 8 O N o e - 0 O_ a) C - w V N U N U N O a) a) L ) 0.- a O_ C C 0 a) N C 0 a) N c .4 0 O O a) — o- O = a O a s Q\ C. N N E a) a) N N (a o ) o to a C.0 8 L-. a a) ) a) a C a) a) aC) c N 3 CD a a s N a) O C x C > .L-. 7 w Lc 7 a a) a) a) a O a) ..E '— N 7 Q a) -4C T N U w N O a) Y p. N N a° Q- LL N O- ° O- l: x x c . L ... a . N 3 E > L N U d > L E U d 0 CD N • co N c N N a U ° o a ) L X O L - O `o o . 3 N ' L -' N 7 Y C " d a) Y . 3 D a N Y '3 O a) v . 3 m c o Q m a) c o cr c4 a) a To E U E U Y N N a N N a) a) a) c a) a) O C Q Q ca> 7 Y o 0 c E w c m Y y c m a `° i V -p 3 • • T c E E E . aa) a `6 a N m m o ui E w N - E ui E N - E aa) . £ c-0 1) a) a) 0 0 c c m E E E f0 c c 0 ` a c ° ) > . N m C a $ > N w a) 7 7 ° U U E — a) a ) a) - a) N a) p O 0 c c c w 63 a3 (a (a c — `) ` 7 c c > O. Q c 7 w Q a a C 7 a ✓ a a C rn o. T T m ' m E 7 ca ° a) E 7 m o� m m ' N E '3 , 3 O E - o - N 0 ° c - o O O c a o c o 0 0 O (1) ( 1) ° w w n U rn Zr) m o) U rn m L° . m rn m H H H — V o c a) a ` ) ca a3 a) CO C)) co c0 a) CO > U. y0 r6 Y �0 (0 N a) c c N `) c o) C C N N c ca L L L O O O L a o 0— N c0 t0 N L a) c0 O a7 N L a) co T-0 H H H H . H H H x H H Q N 2 2 J H 2 c 2 2 J H 2 t0 H — (V M 4 W= N M LL= N M 2 = N c• 4 to E N M 4 tf) AIIIIIIIIIIIIIII 6 (T A W fV 3 D) N m- N N CD W N CO N S (O CU CU (O f - D (D 7 N N (D a = O O (D FD" O 0 j C 3 0 o (D _ m m a N (D O Q AT o N 7 * O 7 O N FD. 3 o. m m m m' co 7 < 3 S O co co o co O_ = (-D c O X (D o "m N N 3 O 3 T 'O O 'O (D `< D c m n c 0 s c m m m O 6 (p' N o — o CD 7 (D ! O A - a N O 8 s ' s 3 o m d m < CD n 0 m v CD o o 1 ) st n m CT) (. ' ^. m CD o m s ID (D c (D v °i o (D ( Q 7 (D N O () m- 3 v i ( 0) cn < m N D Z CO O W 73 m < < < z D 1 4 2 N Z 3 O O (D O C (D N Z 0 Z D m m N Z 1! O // Z N O T m o n 3 CD a CD ,"C7 z (Do n O 0 3. • ,`T, m O Z N C "�Z' D o 3 N Q- M C n GC? O • 41111.111.1'111 CD CD ■o G co ON 0 n c CD °` 4 z ►^! CD c 0 7d t � 7 C C N z O ^. = �• z 0 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN FINANCIAL STATEMENTS September 30, 2012 DAVIDSON, JAMIESON & CRISTINI, P.L. Certified Public Accountants CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS STATEMENTS OF PLAN NET ASSETS 3 STATEMENTS OF CHANGES IN PLAN NET ASSETS 4 NOTES TO FINANCIAL STATEMENTS 5 REQUIRED SUPPLEMENTAL INFORMATION SCHEDULE OF FUNDING PROGRESS 21 SCHEDULE OF CONTRIBUTIONS FROM THE CITY 22 NOTES TO THE ADDITIONAL SCHEDULES 23 ADDITIONAL INFORMATION SCHEDULES OF INVESTMENT AND ADMINISTRATIVE EXPENSES 24 i Davidson, Jamieson & Cristini, P.L. Certified Public Accountants 1956 Bayshore Boulevard Dunedin, Florida 34698 -2503 (727)734 -5437 or 736 -0771 FAX (727) 733 -3487 Member Members of the Firm Amencan Institute of John N Davidson, CPA, CVA Certified Public Accountants Harry B. Jamieson, CPA Florida Institute of Richard A Cristini, CPA, CPPT, CGFM Certified Public Accountants Jeanine L. Bittinger, CPA, CPPT The Board of Trustees City of Boynton Beach Firefighters' Pension Plan Boynton Beach, Florida INDEPENDENT AUDITOR'S REPORT We have audited the accompanying statements of plan net assets of the City of Boynton Beach Firefighters' Pension Plan (Plan) as of September 30, 2012 and 2011 and the related statements of changes in plan net assets for the years then ended. These financial statements are the responsibility of the Board of Trustees. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the plan net assets of the Boynton Beach Firefighters' Pension Plan as of September 30, 2012 and 2011 and the changes in plan net assets for the year then ended in conformity with accounting principles generally accepted in the United States of America. 1 The Board of Trustees City of Boynton Beach Firefighters' Pension Plan Boynton Beach, Florida Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying required supplementary information on pages 21 through 23 of the City of Boynton Beach Firefighters' Pension Plan is required by Governmental Accounting Standards Board Statement No. 25 and is not a required part of the basic financial statements. The additional information on page 24 is presented for purposes of additional analysis and is also not a required part of the basic financial statements. The above information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The City of Boynton Beach Firefighters' Pension Plan has not presented the Management's Discussion and Analysis that the Governmental Accounting Standards Board under its Statement No. 34 has determined is necessary to supplement, although not required to be a part of the basic financial statements. • et January 16, 2013 2 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN STATEMENTS OF PLAN NET ASSETS September 30, 2012 and 2011 Assets 2012 2011 Cash $ 25,437 $ 4,653 Receivables: Employer 29,486 - Interest and dividends 116,066 127,196 Broker - dealers 182,563 49,613 Total receivables 328,115 176,809 Investments at fair value: U.S. Government and agency obligations 4,623,825 4,357,162 Municipal obligations 154,805 182,396 Domestic corporate bonds 5,184,307 6,454,213 Domestic fixed income investment fund 3,168,036 2,722,231 International fixed income investment fund 2,999,933 2,649,047 Domestic stocks 19,324,608 18,680,368 Domestic equity investment funds 8,129,021 1,393,797 Real estate investment funds 5,451,012 4,929,677 International equity investment fund 8,966,454 6,826,286 Temporary investments 1,659,594 1,994,596 Total investments 59,661,595 50,189,773 Prepaid expenses 4,566 4,571 Total assets 60,019,713 50,375,806 Liabilities Accounts payable 45,852 49,743 Accounts payable, broker - dealers 58,628 73,766 Total liabilities 104,480 123,509 Plan net assets held in trust for pension benefits $ 59,915,233 $ 50,252,297 See Notes to Financial Statements. 3 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN STATEMENTS OF CHANGES IN PLAN NET ASSETS Years ended September 30, 2012 and 2011 2012 2011 Additions: Contributions: Employer $ 3,148,122 $ 3,026,506 Plan members 1,098,741 1,254,028 Plan members, buy -back 20,097 145,950 Rollover to DROP 57,799 468,979 Total contributions 4,324,759 4,895,463 Intergovernmental revenue: Chapter 175 state excise tax rebate 1,004,143 944,530 Chapter 175 state excise tax rebate supplement - - Total intergovernmental revenue 1,004,143 944,530 Investment income (loss): Net appreciation (depreciation) in fair value of investments 7,467,351 (1,567,875) Interest 318,512 399,018 Dividends 1,156,256 981,779 Commission recapture 1,823 2,508 Litigation settlement 1,968 2,699 Other 783 710 Total investment income (loss) 8,946,693 (181,161) Less investment expenses 260,201 271,366 Net investment income (loss) 8,686,492 (452,527) Total additions 14,015,394 5,387,466 Deductions: Benefits: Age and service 3,716,302 3,465,705 Disability 44,278 39,373 Beneficiaries 188,952 155,334 Drop payments 299,032 624,000 Refunds 12,001 1,215 Administrative expenses 91,893 96,735 Total deductions 4,352,458 4,382,362 Net increase (decrease) 9,662,936 1,005,104 Plan net assets held in trust for pension benefits: Beginning of year 50,252,297 49,247,193 End of year $ 59,915,233 $ 50,252,297 See Notes to Financial Statements. 4 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 1. Description of the Plan The following brief description of the Boynton Beach Firefighters' Pension Plan (Plan) is provided for general information purposes only. Participants should refer to the Plan Agreement for more complete information. General - The Plan was created in 1958 by Section 21 -95 of an Ordinance adopted by the City of Boynton Beach, Florida. This Ordinance was substantively amended in 1978, 1983, 1993, 2000 and 2002. The Plan is a defined benefit pension plan covering all full -time firefighters of the City of Boynton Beach, Florida (City). Participation in the Plan is required as a condition of employment. The Plan provides for pension, death and disability benefits. In addition, the Plan is a local law plan subject to provisions of Chapter 175 of the State of Florida Statutes. The Plan, in accordance with the above statutes, is governed by a five member pension board. Two firefighters, two City residents and a fifth member elected by the other four members constitute the pension board. The Fire Chief occupies an exofficio, non - voting position on the board of trustees. The Chief shall have the opportunity to participate in all board discussions and activities but shall not be counted for the purpose of a quorum nor shall he be entitled to move or second the adoption of any issue or vote on any matter before the board. The City and the Plan participants are obligated to fund all Plan costs based upon actuarial valuations. The City establishes benefit levels while the board establishes the actuarial methods followed by the Plan. During the fiscal year ended September 30, 2012 the Plan's membership consisted of: Retirees and beneficiaries: Currently receiving benefits 81 Drop Retirees 25 Terminated employees entitled to benefits but not yet receiving them 1 Total 107 Current employees: Vested 46 Nonvested 70 Total 116 At September 30, 2011, the date of the most recent actuarial valuation, there were 105 retirees and beneficiaries receiving benefits. 5 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 1. Description of Plan (Continued) Pension Benefits - The pension plan provides retirement, death and disability benefits for its participants. A participant may retire with normal benefits after reaching age 55 and accumulating 10 or more years of credited service or at 20 years of service without regard to age. Normal retirement benefits are based on 3.0% of the participant's final average salary times the number of his or her credited years of service. The final average salary for purposes of calculating benefits is the participant's average salary during the three highest years of the last ten years of creditable service prior to retirement. Salary excludes bonuses and incentive pay received by a firefighter during that three year period. A participant with 10 or more years of credited service is eligible for early retirement. These benefits begin upon application on or after reaching age 50 and are computed the same as normal retirement, based upon the participant's final average salary and credited service at the date of termination. Benefits are reduced 3% per year for each year by which the participant's age at retirement preceded the participant's normal retirement age. Cost of Living Adjustment - The Plan provides for a 2% annual cost -of- living adjustment (COLA) commencing five years after retirement from the City or entry into the DROP Plan. This becomes available effective December 1, 2011 for all members who retire or enter into the DROP on or after December 1, 2006; eligible members also includes all retirees electing early retirement and all disability retirees who enter pay status on or after December 1, 2006. The actuarial cost of this benefit was financed by an increase in the participants contribution rate from 7% to 12 %. Ad Hoc Supplemental Benefits - Certain retirees are eligible to receive annual distributions funded exclusively with available Chapter 175 premium tax revenue. Terms of the benefit provide that each eligible retiree shall receive a distribution of available funds for up to five hundred dollars per year of credited service for each year of credited service in the Plan not to exceed twenty years. Deferred Retirement Option Plan - Any Plan participant who is eligible to receive an early or normal retirement pension may elect to participate in a deferred retirement option plan (DROP) while continuing his or her active employment as a firefighter. Upon participation in the DROP, the participant becomes a retiree for all Plan purposes so that he or she ceases to accrue any further benefits under the pension plan. Normal retirement payments that would have been payable to the participant as a result of retirement are accumulated and invested in the DROP to be distributed to the participant upon his or her termination of employment. Participation in the DROP ceases for a Plan participant after the earlier of 5 years or the attainment of 30 years of service. 6 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 1. Description of Plan (Continued) An employee's account in the DROP program shall earn interest in one of three ways. The selection of the earnings program may be changed each year in January. The options are summarized as follows: A. Gain or loss interest at the same rate as the Plan; or, B. At an annual fixed rate of seven percent (7 %); or, C. A combination of the fixed and variable rates Supplemental Pension Distributions - The Board of Trustees each year may approve a supplemental distribution from a net actuarial gain as calculated by the Plan's actuary. The distribution shall be paid to the extent of the actuarial gains attributable to retirees and beneficiaries which have been set aside in a supplemental pension reserve. In years in which the Plan's actuarial gain is sufficient to support the payment of a thirteenth check, the payment shall be made in December. The Board did not approve a supplemental distribution for the fiscal years ended September 30, 2012 and 2011. Disability Benefits - Disability benefits for service related disabilities are paid to a participant for life. Benefits are calculated as 66 2/3% of the participant's salary at the time of retirement. This amount is reduced by any social security and workers' compensation benefits received and will not be less than 42% of the participant's average monthly salary. Disability benefits for non - service related disabilities are paid to a participant for life. Benefits are calculated using a 2 1/2% accrual rate with a minimum of 25% of the participant's final average salary. Death Benefits - Preretirement death benefits for participants with at least 10 years of service are payable until the spouses death or remarriage. Benefits are calculated at 2 1 /2% of the participant's average final salary at the time of death. Beneficiaries of participants who die prior to vesting will receive a refund of the participants accumulated contributions. Post retirement death benefits are payable to the participant's eligible widow depending on the survivor's benefit selected. Refund of Participant Contributions - A participant who terminates employment and is ineligible for pension benefits is refunded his or her contribution without interest. 7 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 2. Summary of Significant Accounting Policies Basis of Accounting - Basis of accounting is the method by which revenues and expenses are recognized in the accounts and are reported in the financial statements. The accrual basis of accounting is used for the Plan. Under the accrual basis of accounting, revenues are recognized when they are earned and collection is reasonably assured, and expenses are recognized when the liability is incurred. Plan member contributions are recognized in the period in which the contributions are due. City contributions to the plan as calculated by the Plan's actuary, are recognized as revenue when due and the City has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Basis of Presentation - The accompanying financial statements are presented in accordance with Governmental Accounting Standards Board (GASB) Statement 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans and the Codification of Governmental Accounting and Financial Reporting Standards which covers the reporting requirements for defined benefit pensions established by a governmental employer. The accompanying financial statements include solely the accounts of the Plan which include all programs, activities and functions relating to the accumulation and investment of the assets and related income necessary to provide the service, disability and death benefits required under the terms of the Plan Ordinance and the amendments thereto. Valuation of Investments - Investments in common stock and bonds traded on a national securities exchange are valued at the last reported sales price on the last business day of the year; securities traded in the over -the- counter market and listed securities for which no sale was reported on that date are valued at the mean between the past reported bid and asked prices; investments in securities not having an established market value are valued at fair value as determined by the Board of Trustees. The fair value of an investment is the amount that the Plan could reasonably expect to receive for it in a current sale between market participants, other than in a forced or liquidation sale. Purchases and sales of investments are recorded on a trade date basis. The Plan's investments include an alternative investments in the U.S. Real Estate Investment Fund, the ASB Real Estate Fund and the Princeton Futures Fund. These funds are privately placed and operates in a manner comparable to a mutual fund in many respects. The funds invest in a diverse portfolio of real estate, futures, options and certain other investments with varying market capitalizations. 8 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 2. Summary of Significant Accounting Policies (Continued) The investments in the underlying funds are generally valued daily at fair value as determined by the management of the fund by reference to the value of the underlying securities, if available, or by the valuation of a security as provided by the general partner or investment manager, if the securities are not publicly traded. While the fund manager use its best judgment in estimating the fair values of underlying securities, there are inherent limitations in any estimation technique. Therefore, the values of such securities are not necessarily indicative of the amount that could be realized in a current transaction. The fair values may differ significantly from the values that would have been used had a ready market for the underlying securities existed, and the differences could be material. Future confirming events will also effect the estimates of fair value, and the effect of such events on the estimates of fair value could be material. These alternative investment funds expose the Plan to certain risks, including liquidity risks, counterparty risks, foreign political, economic and governmental risks, and market risk. In addition, these investments may have initial lock -up periods, as well as restrictions for liquidating positions in these funds, that make the investments non - current and non - marketable. Investment income is recognized on the accrual basis as earned. Unrealized appreciation in fair value of investments includes the difference between cost and fair value of investments held. The net realized and unrealized investment appreciation or depreciation for the year is reflected in the Statement of Changes in Plan Net Assets. Custody of Assets - Custodial and investment services are provided to the Plan under contract with a national trust company having trust powers. The Plan's investment policies are governed by Florida State Statutes and ordinances of the City of Boynton Beach, Florida. Authorized Plan Investments - The Board recognizes that the obligations of the Plan are long -term and that its investment policy should be made with a view toward performance and return over a number of years. The general investment objective is to obtain a reasonable total rate of return defined as interest and dividend income plus realized and unrealized capital gains or losses commensurate with the prudent investor rule and Chapter 175 of the Florida Statutes. 9 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 2. Summary of Significant Accounting Policies (Continued) Permissible investments include obligations of the U.S. Treasury and U.S. agencies, high capitalization common or preferred stocks, pooled equity funds, high quality bonds or notes, foreign securities and fixed income funds. In addition, the Board requires that Plan assets be invested with no more than 70% in stocks and convertible securities measured at cost at the end of each reporting period. Further information regarding the permissible investments from the Plan can be found in the Statement of Investment Policies and Objectives. Actuarial Cost Method - The Plan changed its actuarial cost method from the Frozen Entry Age to the Entry Age Normal Method for funding purposes as of October 1, 2003. This method allocates the actuarial present value of each participant's projected benefit on a level basis over the participant's earnings from the date of entry into the Plan through the date of retirement. Reporting Entity - The financial statements presented are only for the Plan and are not intended to present the basic financial statements of the City of Boynton Beach, Florida. The Plan is included in the City's Comprehensive Annual Financial Report (CAFR) for the years ended September 30, 2012 and 2011, which are separately issued documents. Anyone wishing further information about the City is referred to the City's CAFR. The Plan is a pension trust fund (fiduciary fund type) of the City which accounts for the single employer defined benefit pension plan for all City Firefighters. The provisions of the Plan provide for retirement, disability, and survivor benefits. Funding Policy - Participants are required to contribute 12.0% of their annual earnings to the Plan. Prior to 1986, contributions to the Plan were made on an after -tax basis. Subsequent to this date, contributions are made on a pre -tax basis pursuant to an amendment to the Plan. These contributions are designated as employee contributions under Section 414(h)(2) of the Internal Revenue Code. Contribution requirements of the Plan's participants are established and may be amended by the City of Boynton Beach, Florida. A rehired member may buy back one or more years of continuous past service by paying into the Plan the amount of contributions that the participant would otherwise have paid for such continuous past service, plus the interest that would have been earned had such funds been invested by the Plan during that time. 10 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 2. Summary of Significant Accounting Policies (Continued) The City's funding policy is to make actuarially computed monthly contributions to the Plan in amounts, such that when combined with participants' contributions and the State insurance excise tax rebate, all participants' benefits will be fully provided for by the time that they retire. The City's actuarially determined contribution rate for the year ended September 30, 2012 and 2011 was 34.91% and 29.35 %, respectively. This rate consists of 18.33% and 16.56% of member salaries to pay normal costs plus 16.58% and 12.79% to amortize the unfunded actuarially accrued liability pursuant to the September 30, 2011 actuarial valuation. Administrative Costs - All administrative costs of the Plan are financed through employee contributions and charges against the DROP accounts and supplemental distributions. Cash - The Plan considers money market and demand account bank and broker - dealer deposits as cash. Temporary investments, shown on the balance sheet are composed of investments in short-term custodial proprietary money market funds. Federal Income Taxes - A favorable determination letter indicating that the Plan is qualified and exempt from Federal income taxes was not issued by the Internal Revenue Service. The Board believes that the Plan is designed and continues to operate in compliance with the applicable requirements of the Internal Revenue Code. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Subsequent Events - Management has adopted the provisions set forth in GASB Statement No. 56, Subsequent Events and considered subsequent events through the date of the audit report which is the date that the financial statements were available to be issued. 11 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 3. Deposits and Investments Deposits At year end September 30, 2012 the carrying amount of the Plan's deposits was $25,437 and the bank balance was $27,342. The bank balance was covered by federal depository insurance and, for the amount in excess of such federal depository insurance, by the State of Florida' s Security for Public Deposits Act. Provisions of the Act require that public deposits may only be held at qualified public depositories. The Act requires each qualified public depository to deposit with the State Treasurer eligible collateral equal to or in excess of the required collateral as determined by the provisions of the Act. In the event of a failure by a qualified public depository, losses in excess of federal depository insurance and proceeds from the sale of the securities pledged by the defaulting depository, are assessed against the other qualified public depositories of the same type as the depository in default. Salem Trust Company (Salem) periodically holds uninvested cash in its capacity as custodian for the Plan. These funds exist temporarily as cash in the process of collection from the sale of securities or mutual funds. Investments Investments that are not evidenced by securities that exist in physical or book -entry form include investments in open -ended mutual or alternative investment funds. The Plan's investments other than cash held by its administrative manager, are segregated into a separate account and managed under separate investment agreements with STW Fixed Income Management, Ltd., STW Tips Fixed Income Management, LTD, Dalton, Greiner, Hartman, Maher & Co., L.L.C., Anchor Capital Advisors, L.L.C., and DSM Capital Partners, L.L.C. All of these accounts give Salem the custodianship, but give STW Fixed Income Management, Ltd, STW Tips Fixed Income Management, LTD, Dalton, Greiner, Hartman, Maher & Co., L.L.C., Anchor Capital Advisors, L.L.C., and DSM Capital Partners the authority to manage the investments. 12 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 3. Deposits and Investments (Continued) The Vanguard 500 Index Fund is an open -ended exchange traded fund and the Manning and Napier Overseas International Fund, PIMCO Diversified Domestic Fixed Income Fund and the Templeton Global Bond Fund are mutual funds. These assets are invested in accordance with the specific investment guidelines as set forth in the Statement of Investment Policies and Objectives. Investment management fees are calculated quarterly as a percentage of the fair market value of the Plan's assets managed. The Plan's investments are uninsured and unregistered and are held in custodians' or the Bank's accounts in the Plan's name. The U.S. real estate investment fund, the ASB Real Estate Fund and the Princeton Futures Fund are privately placed funds, which operate as an alternative investment fund which offers their shares at the net asset value (NAV) of the fund. The NAV is based on the value of the underlying assets owned by the fund minus its liabilities and then divided by the number of shares or percentage of ownership outstanding. The exchange traded fund is commonly referred to as "ETF ". ETFs are funds that trade like other publicly- traded securities and are designed to track an index. Similar to shares of an index mutual fund, each share of the Fund represents a partial ownership in an underlying portfolio of securities intended to track a market index. Unlike shares of a mutual fund, which can be bought and redeemed from the issuing fund by all shareholders at a price based on NAV, only authorized participants may purchase or redeem shares directly from the Fund at NAV. Also, unlike shares of a mutual fund, the shares of the Fund are listed on a national securities exchange and trade in the secondary market at market prices that change throughout the day. The Fund invests in a particular segment of the securities market and seeks to track the performance of a securities index that generally is not representative of the market as a whole. The Plan had no investments that individually represented 5% or more of the Plan's net assets available for benefits as of September 30, 2012. Further, the Plan has no instrument that, in whole or in part, is accounted for as a derivative instrument under GASB statement No. 53, Accounting and Financial Reporting for Derivative Instruments during the current Plan year. 13 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 3. Deposits and Investments (Continued) The Plan held the following fixed income investments as of September 30, 2012: Rating Standard Effective Fair & Duration Investment Type Value Poor's (Years) U.S. Government and agency obligations $ 4,623,825 AA 5.8 Municipal obligations 154,805 A 2.8 Domestic corporate bonds 5,184,307 BBB - AA 3.6 Domestic fixed income investment fund 3,168,036 - International fixed income investment fund 2,999,933 - Temporary investment funds 1,659,594 AAA Daily Total $ 17,790,500 Interest Rate Risk - Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment in debt securities. Generally, the longer the time to maturity, the greater the exposure to interest rate risk. Through its investment policies the Plan manages its exposure to fair value losses arising from increasing interest rates. The Plan limits the effective duration of its investment portfolio through the adoption of nationally accepted risk measure bench marks. Credit Risk - Credit risk is the risk that a debt issuer will not fulfill its obligations. Consistent with state law the Plan's investment guidelines limit its fixed income investment to a quality rating of `A' or equivalent as rated by one ore more recognized bond rating service at the time of purchase. The Plan's fixed income portfolio may not include more than 10% of its investments in securities having a quality rating of Baa. 14 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 3. Deposits and Investments (Continued) Custodial Credit Risk - Custodial credit risk is defined as the risk that the Plan may not recover cash and investments held by another party in the event of a financial failure. The Plan requires all securities to be held by a third party custodian in the name of the Plan. Securities transactions between a broker - dealer and the custodian involving the purchase or sale of securities must be made on a "delivery vs. payment" basis to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. The investments in mutual funds and investment partnerships are considered unclassified pursuant to the custodial credit risk categones of GASB Statement No. 3, because they are not evidenced by secunties that exist in physical or book -entry form. Investing in Foreign Markets - Investing in foreign markets may involve special risks and considerations not typically associated with investing in companies in the United States of Amenca. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and future adverse political, social, and economic developments. Moreover, securities of foreign governments may be less liquid, subject to delayed settlements, taxation on realized or unrealized gains, and their prices are more volatile than those of comparable securities in U.S. companies. Foreign Tax Withholdings and Reclaims - Withholding taxes on dividends from foreign securities are provided for based on rates established via treaty between the United States of America and the applicable foreign jurisdiction, or where no treaty exists at the prevailing rate established by the foreign country. Foreign tax withholdings are reflected as a reduction of dividend income in the statement of operations. Where treaties allow for a reclaim of taxes, the Fund will make a formal application for refund. Such reclaims are included as an addition to dividend income. Investing in Real Estate - The Plan is subject to the risks inherent in the ownership and operation of real estate. These risks include, among others, those normally associated with changes in general economic climate, trends in the industry including creditworthiness of tenants, competition for tenants, changes in tax laws, interest rate levels, the availability of financing and potential liability under environmental and other laws. 15 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 4. Plan's Funded Status The Plan's funded status as of the September 30, 2011 actuarial valuation is presented below: Actuarial Value of Actuarial Unfunded Assets as a Ratio of the Valuation Actuarial Actuarial Actuarial Percentage of the Annual Unfunded Actuanal Date Value of Accrued Accrued Actuarial Accrued Covered Liability to Covered September 30, Assets Liability Liability Liability Payroll Payroll 2011 $ 49,140,415 $ 84,384,761 $ 35,244,346 58.2% $ 9,781,772 360.3% The required schedule of funding progress immediately following the notes to the financial statements presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The actuarial methods and significant assumptions used are summarized as follows: (a) Actuarial cost method - Entry Age Normal (b) Asset valuation method - Five years smoothed market (c) Actuarial assumptions: Investment rate of return - 7.95% Post retirement benefit increases - 2.0% starting 5 years after retirement Projected salary increases - 4.0% per year, but limited to average annual increase over most recent ten years (4.0% this year) Inflation rate - 4.0% (d) Amortization method - Level percent of pay - closed (e) Remaining amortization period - 30 years 16 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 5. Net Increase (Decrease) in Realized and Unrealized Appreciation (Depreciation) of Investments The Plan's investments appreciated (depreciated) in value during the years ended September 30, 2012 and 2011 as follows: 2012 2011 Realized Unrealized Realized Unrealized Appreciation Appreciation Appreciation Appreciation (Depreciation) (Depreciation) Total (Depreciation) (Depreciation Total Investments at fair value as determined by quoted market price U S. Govemment oglibations and agency obligations $ 70,825 $ (34,340) $ 36,485 $ 24,292 $ 127,293 $ 151,585 Municipal obligations 97,544 (3,038) 94,506 (18,325) 1,121 (17,204) Domestic corporate bonds 131,345 38,108 169,453 326,689 (502,309) (175,620) Domestic fixed income investment fund 10,205 294,330 304,535 - (135,995) (135,995) International fixed income investment fund 16,679 157,065 173,744 - (210,177) (210,177) Domestic stock 2,124,366 2,968,436 5,092,802 1,075,982 (2,053,544) (977,562) Domestic equity investment fund 304,321 247,130 551,451 (203,006) 635,769 432,763 Real estate investment fund - 103,754 103,754 477,254 477,254 International equity investment fund 192,660 747,961 940,621 - (1,112,919) (1,112,919) Net increase (decrease) in realized and unrealized appreciation (depreciation) of investments $ 2,947,945 $ 4,519,406 $ 7,467,351 $ 1,205,632 $ (2,773,507) $(1,567,875) The calculation of realized gains and losses is independent of the calculation of net appreciation (depreciation) in the fair value of plan investments. Unrealized gains and losses on investments sold in 2012 that had been held for more than one year were included in net appreciation (depreciation) reported in the prior year. 17 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 6. Investments The Plan's investments at both carrying value and cost or adjusted cost as of September 30, 2012 and 2011 are summarized as follows: 2012 2011 Market Market Investment Cost Value Cost Value U S. Government and agency obligations $ 4,446,409 $ 4,623,825 $ 4,145,406 $ 4,357,162 Municipal obligations 137,498 154,805 162,051 182,396 Domestic corporate bonds 4,758,826 5,184,307 6,066,839 6,454,213 Domestic fixed income investment fund 3,009,701 3,168,036 2,858,226 2,722,231 International fixed income investment fund 3,053,046 2,999,933 2,859,224 2,649,047 Domestic stocks 1 5,718,408 19,324,608 18,1 95,397 18,680,368 Domestic equity investment fund 7,823,431 8,129,021 1,335,336 1,393,797 Real estate investment fund 4,891,564 5,451,012 4,473,983 4,929,677 International equity investment fund 8,809,814 8,966,454 7,417,608 6,826,286 Temporary investments 1,659,594 1,659,594 1,994,596 1,994,596 Total investments $ 54,308,291 $ 59,661,595 $ 49,508,666 $ 50,189,773 18 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 7. Designations A portion of the plan's net assets are designated for benefits that accrue in relation to the DROP account as further described in Note 1. Allocations to the DROP plan account for the years ended September 30, 2012 and 2011 are presented below as determined in the TPA's most recent accounting and valuation available for the fiscal years ended September 30, 2012 and 2011: 2012 2011 Designated for DROP accounts (fully funded) $ 7,086,706 $ 6,185,518 Designated for the supplemental pension distribution reserve (13 check) - - Total designated plan net assets 7,086,706 6,185,518 Undesignated plan net assets 52,828,527 44,066,779 Total plan net assets $ 59,915,233 $ 50,252,297 8. Plan Amendments There were no Plan amendments during the fiscal years ended September 30, 2012 and 2011. 9. Plan Termination Although it has not expressed an intention to do so, the City may terminate the Plan at any time by a written ordinance of the City Commission of Boynton Beach, duly certified by an official of the City. In the event that the Plan is terminated or contributions to the Plan are permanently discontinued, the benefits of each firefighter in the Plan at such termination date would be non- forfeitable. 19 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO FINANCIAL STATEMENTS September 30, 2012 and 2011 10. Commitments and Contingencies As described in Note 1, certain members of the Plan are entitled to refunds of their accumulated contributions, without interest, upon termination of employment with the City prior to being eligible for pension benefits. At September 30, 2012 and 2011, aggregate contributions from active members of the Plan were approximately $8,799,000 and $7,701,000, respectively. The portion of these contributions which are refundable to participants who may terminate with less than ten years of service has not been determined. 11. Risk and Uncertainties The Plan invests in a variety of investment funds. Investments in general are exposed to various risks, such as interest rate, credit, and overall volatility risk. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits. 12. Revisions in Actuarial Assumptions or Methods The investment return assumption was lowered from 8.10% last year to 7.95% as of October 1, 2011. This assumption will be reduced by 0.15% each year until the 7.5% goal is attained as of October 1, 2014. This change caused the required contribution to increase by 1.31% of covered payroll. 20 REQUIRED SUPPLEMENTARY INFORMATION CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN SCHEDULE OF FUNDING PROGRESS September 30, 2002 through September 30, 2011 Actuarial Accrued (Funded) Active UAAL as Actuarial Actuarial Liability Unfunded Participant Percentage of Valuation Value (AAL) AAL Funded Covered Active Participant Date of Assets Entry Age (UAAL) Ratio Payroll Covered Payroll September 30 (a) (b) _ (b -a) alb (c) (b- a) /(c) 2002 $ 3,387,702 $ 39,432,154 $ 5,555,126 85 9 $ 5,143,446 108 0% 2003 34,694,072 42,431,717 7,737,645 81 9 6,079,095 127 3 2004 35,118,847 47,240,329 12,121,482 74 3 6,135,813 197 6 2005 35,386,328 49,620,257 14,233,929 7L3 6,763,318 210.5 2006 36,863,141 55,565,182 18,702,041 66.3 8,152,400 2294 2007 40,504,910 59,480,217 18,975,307 68.1 8,806,744 215 5 2008 45,330,615 67,141,898 21,811,283 67 5 10,130,185 215 3 2009 46,446,813 72,211,379 25,764,566 64 3 10,350,054 248 9 2010 48,521,964 78,046,241 29,524,277 62.2 10,506,008 2810 2011 49,140,415 84,384,761 35,244,346 58.2 9,781,772 360 3 Analysis of the dollar of actuarial value of assets , actuarial accrued liability, or unfunded actuarial accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage ofthe actuarial accrued liability provides one indication ofthe system's funded status on a going- concern basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the plan. The unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued liability as a percentage of covered payroll approximately adjusts for the effects of inflation and aids analysis of the progress being made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the plan. 21 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN SCHEDULE OF CONTRIBUTIONS FROM THE CITY September 30, 2003 through September 30, 2012 City Year Actual Ended Required Percentage September 30 Contribution Contributed 2003 $ 886,659 100.0% 2004 1,155,699 100.0 2005 1,439,048 100.0 2006 1,750,025 100.0 2007 2,074,830 100.0 2008 2,255,749 100.0 2009 2,790,613 100.0 2010 3,108,723 100.0 2011 3,026,500 100.0 2012 3,148,122 100.0 22 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN NOTES TO THE ADDITIONAL SCHEDULES September 30, 2002 through September 30, 2012 The information presented in the supplementary schedules on pages 21 and 22 was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Valuation date October 1, 2011 Actuarial cost method Entry Age Normal Amortization method Level percent of payroll, closed Remaining amortization period 30 years Asset valuation method Five year smoothed market Actuarial assumptions: Investment rate of return 7.95% Projected salary increases attributable to: Inflation 4.0% 4.0% per year, but limited to average annual increase over the most recent ten years (4.0% this year)) Cost of living adjustments 2.0% starting 5 years after retirement. The activities of the Pension Plan and its members generated an experience (net actuarial) loss of $3,739,943 during the plan year ended September 30, 2011, which increased the City's contribution requirements by 2.12% of covered payroll. The principal source of the loss was a funding value return on investments less than 7.95% expected and salary increases greater than the expected. 23 ADDITIONAL INFORMATION CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN SCHEDULES OF INVESTMENT AND ADMINISTRATIVE EXPENSES Years ended September 30, 2012 and 2011 2012 2011 Investment Admimstrative Investment Administrative Expenses Expenses Expenses Expenses Expenses: Actuary fees $ - $ 6,471 $ - $ 22,143 Administrator's fees - 21,910 - 20,442 Audit fees - 13,200 - 9,200 Bank charges - 23 - - Computer supplies - 6,373 - 5,549 Custodial fees 20,907 - 23,237 - Directors' liability insurance - 7,805 - 7,905 DROP Administration 2,000 - 2,000 - Dues and subscriptions - 600 - 600 Investment managers' fees: STW 34,626 - 39,063 - DGHM 49,491 - 48,274 - Anchor Capital 41,870 - 38,923 - DSM Capital 55,615 - 53,411 - Rigel Capital - - - - Atalanta 22,192 - 32,958 - Legal fees - 21,605 - 15,600 Office expenses - 1,140 - 704 Office rent - 7,045 - 6,371 Pension program maintenance - 1,833 - 1,546 Performance monitor 33,500 - 33,500 - Seminars and training - 2,688 - 5,475 Awards reception - 1,200 - 1,200 $ 260,201 $ 91,893 $ 271,366 $ 96,735 Percentage of plan net assets 0,43% 0.15% 0,54% 0.19% 24 CITY OF BOYNTON BEACH FIREFIGHTERS' PENSION PLAN MEMORANDUM ON REVIEW OF INTERNAL CONTROL STRUCTURE September 30, 2012 DAVIDSON, JAMIESON & CRISTINI, P.L. Certified Public Accountants Davidson, Jamieson & Cristini, P.L. Certified Public Accountants 1956 Bayshore Boulevard Dunedin, Florida 34698 -2503 (727)734 -5437 or 736 -0771 FAX (727) 733 -3487 Member Members of the Firm American Institute of John N Davidson, CPA, CVA Certified Public Accountants Harry B Jamieson, CPA Florida Institute of Richard A Cristini, CPA, CPPT, CGFM Certified Public Accountants Jeanine L Bittinger, CPA, CPPT January 16, 2013 Board of Trustees City of Boynton Beach Firefighters' Pension Plan Boynton Beach, Flonda In planning and performing our audits of the financial statements of the City of Boynton Beach Firefighters' Pension Plan (Plan) (a component 'unit of the City of Boynton Beach, Florida) for the years ended September 30, 2012 and 2011, we considered the Plan's internal control structure to determine our auditing procedures for the purpose of expressing an opinion on the financial statements and not to provide assurance on the internal control structure. However, during our audits, we observed certain matters that are opportunities for strengthening internal controls and operating efficiency. We present our observation for your consideration: Sales Tax 1 Sales Tax During our review of the Plan's terminated office lease agreement we observed that Florida sales tax was being collected from the Fund. It is our understanding that the Plan has not paid the sales tax since the February 2010 rent payment. Since the state's sales tax regulations provide for a refund of these taxes the Board may wish to pursue this refund. At a minimum, the Board should strike any reference to sales tax on any lease renewal. This recommendation has been implemented. 2 We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with Plan personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. DAVIDSON, JAMIESON & CRISTINI, P.L. 3 GRS Gabriel Roeder Smith & Company One East Broward Blvd 954 527.1616 phone Consultants & Actuaries Suite 505 954 525 0083 fax Ft Lauderdale, FL 33301-1804 www.gabrielroeder corn February 13, 2013 Ms. Barbara La Due Pension Administrator Renaissance Executive Suites 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Re: City of Boynton Beach Municipal Firefighters' Pension Trust Fund Dear Barbara: Enclosed is a Supplemental Actuarial Valuation Report illustrating the impact of a reevaluation of the cost of the 2% COLA, which was first implemented by Ordinance 06 -092. The results are based on census and asset data as of October 1, 2012. This report was prepared in compliance with Ordinance 06 -092, which requires an actuarial reevaluation of the cost of the COLA every three years. The last time this reevaluation was completed was as of October 1, 2009. A copy of this report should be provided to the City. This report may be provided to parties other than the City only in its entirety and only with the Board's permission. The purpose of this report is to describe the financial effect of the changes summarized above. This report should not be relied on for any purpose other than the purpose described above. The calculations are based upon assumptions regarding future events, which may or may not materialize. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. If you have reason to believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described, or that conditions have changed since the calculations were made, you should contact the author of the report prior to relying on information in the report. The calculations in this report are based upon information furnished by the Plan Administrator for the October 1, 2012 Actuarial Valuation concerning Plan benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We reviewed this information for internal and year -to -year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or completeness of the information provided by the Plan Administrator. The undersigned are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The undersigned actuaries are independent of the plan sponsor. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, and with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. We welcome your questions and comments. Sincerely yours, 27 eter N. Strong, ASA, M./ AA ef fr y Amrose, MAAA Consultant & Actuary ' Senior Consultant & Actuary PNS /tnr Enclosures Gabriel Roeder Smith & Company SUPPLEMENTAL ACTUARIAL VALUATION REPORT Plan City of Boynton Beach Municipal Firefighters' Pension Trust Fund Valuation Date October 1, 2012 Date of Report February 13, 2013 Report Requested by Automatic actuarial reevaluation of the cost of the COLA under Ordinance 06 -092, which must be completed every three years Prepared by Peter N. Strong Group Valued All active and inactive Firefighters Plan Assumptions and Methods Being Considered for Change None Plan Provisions Being Considered: D Reevaluation of the actuarial cost of the 2% annual COLA deferred 5 years for members who retire or enter the DROP after October 1, 2006 ➢ Reevaluation of the increase in member contributions from 7% to 12% Participants Affected All active participants as well as inactive participants who are currently receiving the COLA Actuarial Assumptions and Methods Same as October 1, 2012 Actuarial Valuation Report. Some of the key assumptions /methods are: Investment Return — 7.80% Salary increase — 4.0% to 18.4% per year depending on service Cost Method — Entry Age Normal Amortization Period for Any Change in Actuarial Accrued Liability 30 years Summary of Data Used in Report See attached page Actuarial Impact of Proposal(s) See attached page(s) Other Cost Considerations None PARTICIPANT DATA October 1, 2012 October 1, 2012 Valuation Reevaluation of Cost of COLA ACTIVE MEMBERS Number 115 115 Covered Annual Payroll $ 9,375,520 $ 9,375,520 Average Annual Payroll $ 81,526 $ 81,526 Average Age 37.2 37.2 Average Past Service 9.6 9.6 Average Age at Hire 27.6 27.6 RETIREES, BENEFICIARIES & DROP Number 91 91 Annual Benefits $ 4,742,403 $ 4,742,403 Average Annual Benefit $ 52,114 $ 52,114 Average Age 59.4 59.4 DISABILITY RETIREES Number 1 1 Annual Benefits $ 39,373 $ 39,373 Average Annual Benefit $ 39,373 $ 39,373 Average Age 47.3 47.3 TERMINATED VESTED MEMBERS Number 2 2 Annual Benefits $ 82,895 $ 82,895 Average Annual Benefit $ 41,448 $ 41,448 Average Age 45.2 45.2 ANNUAL REQUIRED CONTRIBUTION (ARC) - CURRENT ASSUMPTIONS A. Valuation Date October 1, 2012 October 1, 2012 October 1, 2012 Valuation Valuation Valuation 12 0 % Member Without COLA Increase in use Contributions and 7 0% Member of State Chapter with COLA Contributions 175 Funds B. ARC to Be Paid During Fiscal Year Ending 9/30/2014 9/30/2014 9/30/2014 C. Assumed Date of Employer Contrib. 10/1/2013 10/1/2013 10/1/2013 D. Annual Payment to Amortize Unfunded Actuarial Liability $ 2,392,604 $ 2,183,057 $ 2,392,604 E. Employer Normal Cost 1,787,181 1,872,178 1,787,181 F. ARC if Paid on the Valuation Date: D +E 4,179,785 4,055,235 4,179,785 G. ARC Adjusted for Frequency of Payments 4,179,785 4,055,235 4,179,785 H. ARC as % of Covered Payroll 44.58 % 43.25 % 44.58 °A) I. Estimate of Regular Base Chapter 175 Contributions in Contribution Year 623,344 579,772 704,322 J Required Employer Contribution 3,556,441 3,475,463 3,475,463 in Contribution Year K. Increase in Use of Chapter 175 Funds N/A N/A $ 80,978 ACTUARIAL VALUE OF BENEFITS AND ASSETS - CURRENT ASSUMPTIONS A. Valuation Date October 1, 2012 October 1, 2012 October 1, 2012 Valuation Valuation Valuation 12 0 % Member Without COLA Increase in use Contributions and 7 0% Member of State Chapter with COLA Contributions 175 Funds 13. Actuarial Present Value of All Projected Benefits for 1. Active Members a. Service Retirement Benefits $ 48,892,234 $ 42,673,422 $ 48,892,234 b. Vesting Benefits 4,184,561 3,626,367 4,184,561 c Disability Benefits 2,374,763 2,086,557 2,374,763 d. Preretirement Death Benefits 685,676 582,638 685,676 e. Return of Member Contributions 374,963 331,138 374,963 f. Total 56,512,197 49,300,122 56,512,197 2. Inactive Members a. Service Retirees & Beneficiaries 54,084,232 50,905,200 54,084,232 b. Disability Retirees 642,295 503,770 642,295 c. Terminated Vested Members 981,826 834,845 981,826 d. Total 55,708,353 52,243,815 55,708,353 3. Total for All Members 112,220,550 101,543,937 112,220,550 C. Actuarial Accrued (Past Service) Liability per GASB No. 25 88,420,130 80,996,890 88,420,130 D Actuarial Value of Accumulated Plan Benefits per FASB No. 35 N/A N/A N/A E. Plan Assets 1. Market Value 50,354,746 46,850,422 50,354,746 2. Actuarial Value 50,548,749 47,044,425 50,548,749 F. Unfunded Actuarial Accrued Liability: 37,871,381 33,952,465 37,871,381 G. Actuarial Present Value of Projected Covered Payroll 79,515,659 79,515,659 79,515,659 H. Actuarial Present Value of Projected Member Contributions 9,541,879 5,566,096 9,541,879 I. Funded Ratio E2 /C 57.2 % 58.1 % 57.2 % CALCULATION OF EMPLOYER NORMAL COST - CURRENT ASSUMPTIONS A Valuation Date October 1, 2012 October 1, 2012 October 1, 2012 Valuation Valuation Valuation 12 0 % Member Without COLA Increase in use Contributions and 7. 0% Member of State Chapter with COLA Contributions 175 Funds B. Normal Cost for 1. Service Retirement Benefits $ 2,234,790 $ 1,951,904 $ 2,234,790 2. Vesting Benefits 265,382 229,842 265,382 3. Disability Benefits 198,904 173,102 198,904 4. Preretirement Death Benefits 37,608 31,908 37,608 5. Return of Member Contributions 81,245 47,394 81,245 6. Total for Future Benefits 2,817,929 2,434,150 2,817,929 7. Assumed Amount for Administrative Expenses 94,314 94,314 94,314 8. Total Normal Cost 2,912,243 2,528,464 2,912,243 As % of Covered Payroll 31.06 % 26.97 % 31.06 % C. Expected Member Contribution 1,125,062 656,286 1,125,062 As % of Covered Payroll 12.00 % 7.00 % 12.00 % D. Net Employer Normal Cost: B8 -C 1,787,181 1,872,178 1,787,181 As % of Covered Payroll 19.06 % 19.97 % 19.06 % CITY OF BOYNTON BEACH MUNICIPAL FIREFIGHTERS’ PENSION TRUST FUND ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2012 ANNUAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2014 TABLE OF CONTENTS Section TitlePage A Discussion of Valuation Results 1. Comparison of Required Employer Contributions 1 2. Chapter Revenue 5 B Valuation Results 1. Participant Data 6 2. Annual Required Contribution (ARC) 7 3. Actuarial Value of Benefits and Assets 8 4. Calculation of Employer Normal Cost 9 5.Liquidation of the Unfunded Actuarial Accrued Liability 10 6. Actuarial Gains and Losses 11 7. Actual Compared to Expected Decrements 16 8. Cumulative Actuarial Gains (Losses) 17 9. Recent History of Valuation Results 18 10. Recent History of Required and Actual Contributions 19 11. Actuarial Assumptions and Cost Method 20 12. Glossary of Terms 25 C Pension Fund Information 1. Summary of Assets 28 2. Pension Fund Income and Disbursements 29 3. Actuarial Value of Assets 30 4. Reconciliation of DROP Accounts 31 5. Investment Rate of Return 32 D Financial Accounting Information 1. FASB No. 35 33 2. GASB No. 25 34 3. GASB No. 27 37 E Miscellaneous Information 1. Reconciliation of Membership Data 39 2. Age/Service/Salary Distributions 40 F Summary of Plan Provisions 42 SECTION A DISCUSSION OF VALUATION RESULTS 1 DISCUSSION OF VALUATION RESULTS Comparison of Required Employer Contributions A comparison of the required employer contribution developed in this and the last actuarial valuation is shown below. The required contribution dollar amounts shown below are estimates only. The contribution policy of the City is to contribute the dollar amount determined by multiplying the required percentage of payroll determined as of the valuation date by the projected pensionable payroll for the year. For FYE 9/30/14For FYE 9/30/13 Based onBased on Increase 10/1/201210/1/2011 (Decrease) ValuationValuation if contributed onif contributed on 10/1/201310/1/2012 Required Employer/State Contribution$4,226,469$4,272,215$(45,746) As % of Covered Payroll44.58%40.87%3.71% Estimated State Contribution$704,322$704,322$0 As % of Covered Payroll7.43%6.74%0.69% Required Employe r Contribution$3,522,147$3,567,893$(45,746) As % of Covered Payroll37.15%34.13%3.02% The required employer contribution has been computed under the assumption that the amount to be received from the State this year will be at least $704,322. If the State revenue is less than this amount, the City will have to make up the difference. The required employer required contribution for the fiscal year ending September 30, 2013 calculated based on the October 1, 2011 valuation was revised to reflect this estimated State contribution. The employer contribution listed above is for the City's fiscal year ending September 30, 2014 and has been calculated as though payment is made in a single lump sum on October 1, 2013. Alternatively, if the employer contribution is paid in biweekly payments beginning October 1, 2013, the required payment is $3,687,110, or 38.89% of payroll.The actual employer contribution for the fiscal year ending September 30, 2012 was $3,148,122, which was equal to the minimum required contribution. 2 The Ordinance adopted in 2006 which added the COLA and increased member contributions by 5.0% of covered payroll was intended to be cost neutral. Under the terms of this Ordinance, the actuarial cost of the COLA must be reevaluated every three years to make sure it remains cost neutral. The last reevaluation was completed as of October 1, 2009 for the fiscal year ending September 30, 2010, so another reevaluation has recently been completed as of October 1, 2012 for the fiscal year ending September 30, 2013. This latest reevaluation has shown that the annual actuarial cost of the COLA is $80,978 higher than it was as of October 1, 2009. Therefore, the base amount of Regular Chapter 175 contributions is projected to increase by this amount, from $623,344 to $704,322, beginning in the fiscal year ending September 30, 2013. Revisions in Benefits There have been no revisions in benefits since the last valuation. Revisions in Actuarial Assumptions or Methods The investment return assumption was lowered from 7.95% last year to 7.80% this year. This assumption will be reduced by 0.15% each year until the Board’s goal of 7.5% is attained as of October 1, 2014. This change caused the required contribution to increase by 1.37% of covered payroll. The Actuarial Standard of Practice (ASOP) with regard to the mortality assumption has recently been revised. ASOP No. 35 Section4.1.1 now states “The disclosure of the mortality assumption should contain sufficient detail to permit another qualified actuary to understand the provision made for future mortality improvement. If the actuary assumes zero mortality improvement after the measurement date, the actuary should state that no provision was made for future mortality improvement.” There is currently no margin for future mortality improvement in the current mortality assumption. We recommend an update to the mortality assumption to reflect increased longevity and to reflect future mortality improvements. Actuarial Experience There was a net actuarial gain of $161,237 for the year, which means that actual experience was more favorable than expected. The actuarial gain is primarily due to salary increases that were less than expected. Average salary increases were (2.8%), versus 7.1% expected. This gain was mostly offset by recognized investment earnings below the assumed rate of 7.95%. The recognized investment return on the actuarial value of assets was 2.72%. The investment return on the market value of assets was 17.12%. 3 The net actuarial gain for the year has caused a decrease in the annual required employer contribution of 0.09% of covered payroll. Funded Ratio The funded ratio was 57.2% this year compared to 58.2% last year. Before the change in assumptions described above, the funded ratio was 58.1%. The funded ratio is equal to the actuarial value of assets divided by the actuarial accrued liability. Analysis of Change in Employer Contribution The components of change in the required employer contribution are as follows: Contribution rate last yea34.13% r Revision in Benefits0.00 Experience (Gains) or Losses(0.09) Revision in Assumptions/Methods1.37 Amortization Payment on UAAL2.57 Normal Cost Rate0.02 Administrative Expense(0.16) State Contribution (0.69) Contribution rate this yea37.15% r Required Contributions in Later Years The current calculated City contribution requirement is 37.15% of payroll starting October 1, 2013. For long-term planning purposes, the City contribution rate would be expected to remain near this level if the current actuarial assumptions are realized after September 30, 2012. It is important to keep in mind that under the asset smoothing method, gains and losses are recognized over five years. As of September 30, 2012, the actuarial value of assets exceeded the market value by $194,003. Once all the gains and losses through September 30, 2012 are fully recognized in the actuarial value of assets, the contribution rate will increase by roughly 0.1% of payroll unless there are offsetting gains. 4 Relationship to Market Value If Market Value had been the basis for the valuation, the City contribution rate would have been 37.26% and the funded ratio would have been 56.9%. In the absence of other gains and losses, the City contribution rate should increase to that level over the next several years. th 13 Check Provision th The Plan provides for a 13 check if there is a net actuarial gain for the previous year. The Plan experienced a gain during the prior plan year, but the cumulative balance of actuarial gains and losses is th negative (a net loss), so no funds are available to provide 13 checks in 2012. Conclusion The remainder of this Report includes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a summary of plan provisions. 5 CHAPTER REVENUE Increments in Chapter revenue over that received in 1998 must first be used to fund the cost of compliance with minimum benefits. Once minimums are met, any subsequent additional Chapter revenue must be used to provide extra benefits. As of the valuation date, all minimum Chapter requirements have been met. Actuarial Confirmation of the Use of State Chapter Money 1.Fire Regular$623,344 Fire Supplemental0 Total Base Amount Previous Plan Yea623,344 r 2.Fire Regular1,004,143 Fire Supplemental0 Total Amount Received for Previous Plan Year 1,004,143 3.Adjustment to Base Amount due to reevaluation of COLA cost0 4.Excess Funds for Previous Plan Year380,799 5.Accumulated Excess at Beginning of Previous Year2,230,171 6.Prior Excess Used in Previous Plan Yea137,189 r 7.Accumulated Excess as of Valuation Date (Available for Benefit Improvements)2,473,781 8.Fire Regular623,344 Fire Supplemental0 Base Amount This Plan Year - Fire623,344 Note: The above exhibit confirms the use of State Chapter 175 Money for the fiscal year ending September 30, 2012. In the fiscal year ending September 30, 2013, the Base Amount for Fire Regular State Chapter 175 Money is expected to increase to $704,322 due to the reevaluation of the actuarial cost of the COLA. SECTION B VALUATION RESULTS 6 PARTICIPANT DATA October 1, 2012October 1, 2011 ACTIVE MEMBERS Numbe115114 r Covered Annual Payroll$9,375,520$9,781,772 Average Annual Payroll$81,526$85,805 Average Age37.236.7 Average Past Service9.69.0 Average Age at Hire27.627.7 RETIREES & BENEFICIARIES & DROP Numbe9191 r Annual Benefits$4,742,403$4,624,762 Average Annual Benefit$52,114$50,822 Average Age59.458.9 DISABILITY RETIREES Numbe11 r Annual Benefits$39,373$39,373 Average Annual Benefit$39,373$39,373 Average Age47.346.3 TERMINATED VESTED MEMBERS Numbe21 r Annual Benefits$82,895$47,124 Average Annual Benefit$41,448$47,124 Average Age45.245.3 7 ANNUAL REQUIRED CONTRIBUTION (ARC) A.Valuation DateOctober 1, 2012October 1, 2012October 1, 2012October 1, 2011 7.80% Interest Rate7.80% Interest Rate7.95% Interest Rate B.ARC to Be Paid During Fiscal Year Ending9/30/20149/30/20149/30/20149/30/2013 C.Assumed Date of Employer Contrib.10/1/2013Biweekly10/1/201310/1/2012 D.Annual Payment to Amortize Unfunded Actuarial Liability$2,392,604$2,392,604$2,345,566$2,204,630 E.Employer Normal Cost1,787,1811,787,1811,705,3721,793,275 F.ARC if Paid on the Valuation Date: D+E4,179,7854,179,7854,050,9383,997,905 G.ARC Adjusted for Frequency of Payments4,179,7854,342,9644,050,9383,997,905 H.ARC as % of Covered Payroll44.58%46.32%43.21%40.87% I.Assumed Rate of Increase in Covered Payroll to Contribution YearN/A%N/A%N/A%N/A% J.Covered Payroll for Contribution Year9,480,640*9,480,640*9,480,640*10,453,181* K.ARC for Contribution Year: H x J4,226,4694,391,4324,096,5854,272,215 L.Estimate of State Revenue in Contribution Year704,322704,322704,322704,322 M.Required Employer Contribution (REC) in Contribution Year3,522,1473,687,1103,392,2633,567,893 N.REC as % of Covered Payroll in Contribution Year: M ÷ J37.15%38.89%35.78%34.13% *Estimated payroll from Finance Department. Actual contributions should be no less than the listed percentage of payroll multiplied by actual covered payroll. 8 ACTUARIAL VALUE OF BENEFITS AND ASSETS A.Valuation DateOctober 1, 2012October 1, 2012October 1, 2011 7.80% Interest Rate7.95% Interest Rate B.Actuarial Present Value of All Projected Benefits for 1.Active Members a. Service Retirement Benefits$48,892,234$47,551,213$48,307,378 . Vesting Benefits4,184,5614,056,356 4,209,818 b c. Disability Benefits2,374,7632,319,843 2,507,658 d. Preretirement Death Benefits685,676667,231 702,085 e. Return of Member Contributions374,963374,026 431,158 f. Total56,512,197 54,968,66956,158,097 2.Inactive Members a. Service Retirees & Beneficiaries54,084,23253,357,74152,277,508 . Disability Retirees642,295630,051 621,587 b c. Terminated Vested Members981,826 960,651 615,347 d. Total55,708,353 54,948,44353,514,442 3. Total for All Members112,220,550109,917,112109,672,539 C.Actuarial Accrued (Past Service) Liability per GASB No. 2588,420,13086,973,57084,384,761 D.Actuarial Value of Accumulated Plan Benefits per FASB No. 35 1.Based on Plan's Interest Rate81,842,921 80,483,52876,939,785 2. Based on the FRS Interest Rate82,305,026 N/A78,672,780 E.Plan Assets 1.Market Value50,354,74650,354,74641,836,608 2. Actuarial Value50,548,74950,548,74949,140,415 F.Unfunded Actuarial Accrued Liability: C-E237,871,38136,424,82135,244,346 G.Actuarial Present Value of Projected Covered Payroll79,515,65978,955,25587,018,898 H.Actuarial Present Value of Projected Member Contributions9,541,8799,474,63110,442,268 I.Funded Ratio: E2/C57.2%58.1%58.2% 9 ENTRY AGE NORMAL METHOD CALCULATION OF EMPLOYER NORMAL COST A.Valuation DateOctober 1, 2012October 1, 2012October 1, 2011 7.80% Interest Rate7.95% Interest Rate B.Normal Cost fo r 1.Service Retirement Benefits$2,234,790$2,165,940 $2,260,428 2.Vesting Benefits265,382 257,070 264,902 3.Disability Benefits198,904 194,980 204,344 4.Preretirement Death Benefits37,608 36,546 38,514 5.Return of Member Contributions81,24581,58484,739 6.Total for Future Benefits2,817,9292,736,120 2,852,927 7.Assumed Amount for Administrative Expenses94,31494,314114,161 8.Total Normal Cost2,912,2432,830,434 2,967,088 C.Expected Member Contribution1,125,0621,125,062 1,173,813 D.Employer Normal Cost: B8-C1,787,1811,705,372 1,793,275 E.Employer Normal Cost as a % of Covered Payroll19.06%18.19%18.33% 10 LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY A. UAAL Amortization Period and Payments Original UAALCurrent UAAL Amortization Date PeriodYears Remainin Established(Years)AmountAmountment Pa y g 10/1/199230415,550$ 10315,670$ 36,903$ 10/1/199230795,48310603,70770,576 10/1/199626807,23410699,76781,806 10/1/1997301,201,102151,257,120106,457 10/1/199930613,86517694,81553,631 10/1/200030(1,240,378)18(1,379,812)(102,217) 10/1/200130857,56419972,28169,335 10/1/2003304,337,161215,056,294336,714 10/1/2004304,373,725225,091,711328,768 10/1/2005301,004,416231,166,21073,157 ()()() 10/1/2005303,040,117233,529,828221,427 10/1/2006302,426,747242,789,283170,293 10/1/2006301,889,229242,171,464132,573 10/1/200730(12,675)25(14,314)(852) 10/1/200730(1,424,046)25(1,610,792)(95,869) 10/1/2008304,046,900264,501,695261,579 10/1/2009303,681,910274,021,748228,469 10/1/2010301,249,043281,338,85674,453 10/1/2010302,256,012282,418,233134,477 10/1/201030(43,572)28(46,705)(2,597) 10/1/2011301,378,822291,438,79778,414 10/1/2011303,739,943293,902,622212,693 10/1/2012301,446,560301,446,56077,349 10/1/201230(161,237)30(161,237)(8,621) $ 37,871,38134,670,643$ 2,392,604$ B. Amortization Schedule The UAAL is being amortized as a level percent of payroll over the number of years remaining in the amortization period. The expected amortization schedule is as follows: Amortization Schedule YearExpected UAAL 201237,871,381 $ 201338,246,163 201438,546,968 201538,763,939 201638,886,245 201738,902,041 202236,886,084 202731,573,824 203220,411,314 20377,284,246 11 ACTUARIAL GAINS AND LOSSES The assumptions used to anticipate mortality, employment turnover, investment income, expenses, salary increases, and other factors have been based on long range trends and expectations. Actual experience can vary from these expectations. The variance is measured by the gain and loss for the period involved. If significant long term experience reveals consistent deviation from what has been expected and that deviation is expected to continue, the assumptions should be modified. The net actuarial gain (loss) for the past year is computed as follows: A. Derivation of the Current UAAL 1.Last Year's UAAL$35,244,346 2.Last Year's Employer Normal Cost1,793,275 3.Last Year's Contributions3,148,122 4. Interest at the Assumed Rate on: a.1 and 2 for one year2,944,491 .3 from dates paid247,932 b c. a - b2,696,559 5.This Year's Expected UAAL: 1 + 2 - 3 + 4c36,586,058 6.This Year's Actual UAAL (Before any changes in benefits and/or assumptions)36,424,821 7.Net Actuarial Gain (Loss): (5) - (6)161,237 8.Gain (Loss) due to investments(3,037,836) 9.Gain (Loss) due to other sources3,199,073 12 Net actuarial gains in previous years have been as follows: Change in Employer Cost Rate Year Ended Gain (Loss) 12/31/830.77 %$(111,129) 12/31/840.13 (20,619) 12/31/851.27 (227,011) 12/31/860.50 (99,006) 12/31/87(1.18) 279,837 12/31/880.52 (128,401) 12/31/890.41 (106,588) 9/30/90(1.42) 371,790 9/30/912.09 (638,650) 9/30/921.61 (476,505) 9/30/93(1.07) 483,965 9/30/941.76 (800,443) 9/30/950.56 (270,698) 9/30/96(1.95) 895,789 9/30/97(3.08) 1,049,747 9/30/98(2.78) 1,020,121 9/30/99(1.89) 722,161 9/30/00(2.21) 891,463 9/30/014.44 (1,682,484) 9/30/029.11 (3,495,525) 9/30/0311.31 (5,238,993) 9/30/044.88 (4,373,725) 9/30/053.04 (3,040,117) 9/30/061.44 (1,889,229) 9/30/07(0.01) 12,675 9/30/082.33 (4,056,993) 9/30/092.16 (3,681,910) 9/30/101.25 (2,256,012) 9/30/112.12 (3,739,943) 9/30/12(0.09) 161,237 13 Actuarial Gain (+) or Loss (-) $7$7 $5$5 $3$3 $1$1 -$1-$1 -$3-$3 -$5-$5 -$7-$7 -$9-$9 -$11-$11 -$13-$13 -$15-$15 -$17-$17 -$19-$19 -$21-$21 -$23-$23 -$25-$25 -$27-$27 -$29-$29 -$31-$31 -$33-$33 -$35-$35 Plan Year End Gain or LossCumulative Change in Employer Cost Rate 40%40% 35%35% 30%30% 25%25% 20%20% 15%15% 10%10% 5%5% 0%0% -5%-5% -10%-10% -15%-15% -20%-20% -25%-25% -30%-30% -35%-35% -40%-40% Plan Year End Change in Employer Cost RateCumulative Change 14 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 few years: Investment ReturnSalar Increases y Assumed Year EndingActualAssumedActual 12/31/19777.6 %7.0 %10.3 % 12/31/19787.0 7.0 21.3%(2 years) 12/31/19797.5 7.0 10.3 12/31/19807.9 7.0 19.0(2 years) 12/31/19819.0 7.0 30.57.0 12/31/198211.9 7.0 11.0 7.0 12/31/198313.9 7.0 6.4 7.0 12/31/198411.1 10.0 8.8 10.0 12/31/198518.7 10.0 14.510.0 12/31/198613.4 10.0 11.410.0 12/31/198710.3 10.0 19.7 10.0 12/31/19889.8 10.0 6.1 10.0 12/31/198914.8 10.0 12.810.0 9/30/1990(9 mos.)1.4 7.5 6.7 7.5 9/30/199113.1 10.0 8.0 10.0 9/30/199211.2 10.0 4.9 10.0 9/30/19939.7 8.0 4.0 6.5 9/30/19943.1 8.0 2.0 6.5 9/30/19959.3 8.0 10.36.5 9/30/19969.8 8.0 (0.2) 6.5 9/30/199712.6 8.0 5.9 6.5 9/30/199812.4 8.0 6.1 6.5 13.36.5 9/30/199914.1 8.0 9/30/200013.3 8.5 10.36.5 9/30/20018.0 8.5 4.8 6.5 9/30/20022.3 8.5 12.1 6.5 9/30/20033.5 8.5 10.06.5 9/30/20042.2 8.5 11.06.5 9/30/20052.5 8.5 11.76.5 9/30/20065.3 8.5 13.39.2 9/30/20079.3 8.509.2 8.9 9/30/20083.0 8.2513.68.9 9/30/20090.9 8.257.6 8.9 9/30/20102.5 8.251.8 8.9 9/30/20110.9 8.103.7 8.1 9/30/20122.7 7.95(2.8) 7.1 Averages8.2 % ---8.9 % --- 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 valuations both at the beginning and the end of each year. 15 History of Investment Return Based on Actuarial Value of Assets 20%20% 15%15% 10%10% 5%5% 0%0% Plan Year End ActualAssumed History of Salary Increases 35%35% 30%30% 25%25% 20%20% 15%15% 10%10% 5%5% 0%0% -5%-5% Plan Year End Compared to Previous Year ActualAssumed 16 Actual (A) Compared to Expected (E) Decrements Among Active Employees Number Active AddedService & DuringDROPDisabilityTerminationsMembers YearVestedOtherEnd ofYearRetirementRetirementDeathTotals EndedAEAEAEAEAAAEYear 83 9/30/20021106500001343 97 9/30/20031511500000003 105 9/30/2004221413400000113 102 9/30/2005142100000224 118 9/30/20061930200001234 119 9/30/2007541300000334 123 9/30/2008510510000004 118 9/30/2009165600000114 125 9/30/20101143300000114 114 9/30/201101110800001014 115 9/30/2012321200001014 9/30/20132004 11 Yr Totals *8360424411004131741 * Totals are through current Plan Year only. 17 Cumulative Actuarial Gains (Losses) th check if there is a net actuarial gain for the previous year. There was an The Plan provides for a 13 th actuarial gain during the prior plan year. However, there is a limitation on 13 checks tied to actuarial gains th provided in Chapter 112.61, Florida Statutes. The cumulative amount used to pay for 13 checks may not exceed the cumulative amount of actuarial gains. Since the cumulative amount of gains is negative (a net th loss), no 13 check is payable in 2012. Cumulative Actuarial Gains (Losses) Balance at Year EndingBeginning Gain (Loss)Balance at 9/3013th Checof YearInterestfor YearEnd of Year k 200100(1,682,484)0(1,682,484) 2002 (143,011)(3,495,525)0(5,321,020)(1,682,484) 2003 (452,287)(5,238,993)0(11,012,300)(5,321,020) 2004 (936,045)(4,373,725)(11,012,300) 0(16,322,070) 2005 (1,387,376)(3,040,117)(16,322,070) 0(20,749,563) 2006 (1,763,713)(1,889,229)(20,749,563) 0(24,402,505) 2007(24,402,505)(2,074,213)12,675 0(26,464,043) 2008(26,464,043)(2,183,284)(4,056,993) 0(32,704,319) 2009(32,704,319)(2,698,106)(3,681,910) 0(39,084,336) 2010(39,084,336)(3,224,458)(2,256,012) 0(44,564,805) 2011 (3,609,749)(3,739,943)0(51,914,497)(44,564,805) 2012(51,914,497)(4,127,203)161,237 0(55,880,463) 18 19 20 ACTUARIAL ASSUMPTIONS AND COST METHOD Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered Individual Entry-Age Actuarial Cost before and after the valuation date were determined using an 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 by level (principal & interest combined) percent-of-payroll contributions over a reasonable period of future years. Actuarial Value of Assets - The Actuarial Value of Assets phases in the difference between the actual and expected investment earnings over a period of 5 years. 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 7.80% per year, compounded annually (net after investment expenses). This rate is being reduced by 0.15% each year until 7.50% is attained. Wage Inflation Rate Theassumed in this valuation was 4% per year. The Wage Inflation Rate is defined to be the portion of total pay increases for an individual that are due to macroeconomic 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. real rate of return The assumed 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 7.80% investment return rate translates to an assumed real rate of return over wage inflation of 3.80%. The active member population is assumed to remain constant. For purposes of financing the unfunded liabilities, total payroll is assumed to grow at 4% per year. The average increase over the most recent ten years is 6.19% Pay increase assumptions for individual active members are shown below. Part of the assumption for each age is for merit and/or seniority increase, and the other 4% recognizes wage inflation, including price inflation, productivity increases, and other macroeconomic forces. 21 The rates of salary increase used for individual members are in accordance with the following table. This assumption is used to project a member’s current salary to the salaries upon which benefits will be based. % Increase in Salary Years of Merit and Base Total Service Seniority(Economic)Increase 14.0%14.7%10.7% 24.0%9.2%5.2% 34.0%14.7%10.7% 44.0%9.2%5.2% 54.0%14.7%10.7% 64.0%9.2%5.2% 74.0%9.2%5.2% 84.0%9.2%5.2% 94.0%9.2%5.2% 104.0%18.4%14.4% 114.0%9.2%5.2% 12+4.0%4.0%0.0% Demographic Assumptions The mortality table was the 1983 Group Annuity Mortality. Sample Probability of Future Life AttainedDying Next YearExpectancy (years) AgesMenWomenMenWomen 500.39%0.16%29.2334.96 550.610.2524.8730.28 600.920.4220.6825.71 651.560.7116.7321.33 702.751.2413.2217.17 754.462.4010.2013.42 807.414.307.6810.24 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. This table does not include any margin for future mortality improvements. For disabled retirees, the regular mortality tables are set forward 5 years in ages to reflect impaired longevity. 22 The rates of retirement used to measure the probability of eligible members retiring during the next year were as follows: Number of Years After First EligibilityProbability of Normal Retirement for Normal Retirement 080% 140 240 340 440 5100 The rate of retirement is 5% for each year of eligibility for early retirement. Rates of separation from active membership were as shown below (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. Sample % of Active Members AgesSeparating Within Next Year 206.0% 255.7 305.0 353.8 402.6 451.6 500.8 550.3 Rates of disability among active members (75% of disabilities are assumed to be service-connected). Sample% Becoming Disabled Ageswithin Next Year 200.14% 250.15 300.18 350.23 400.30 450.51 501.00 551.55 23 Miscellaneous and Technical Assumptions Administrative & Investment The investment return assumption is intended to be the return net of Expensesinvestment expenses. Annual administrative expenses are assumed to be equal to the average of the prior two years’ expenses. Assumed administrative expenses are added to the Normal Cost. Exact fractional service is used to determine the amount of benefit Benefit Service payable. Benefits are increased by 2% per year beginning five years after Cost of Living Increases benefit commencement. Disability and mortality decrements operate during retirement Decrement Operation eligibility. Decrements of all types are assumed to occur at the beginning of the Decrement Timing year. Eligibility for benefits is determined based upon the age nearest Eligibility Testing birthday and service nearest whole year on the date the decrement is assumed to occur. For vested separations from service, it is assumed that 0% of members Forfeitures 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. The employer contribution is assumed to be made in one full payment Incidence of Contributions st of each year (at the beginning of the fiscal year). on October 1 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. Projected benefits are loaded by 11.1% to recognize the effect of Liability Load unused leave pay on final average earnings. 100% of males and 100% of females are assumed to be married for Marriage Assumption purposes of death-in-service benefits. Male spouses are assumed to be three years older than female spouses for active member valuation purposes. A ten year certain and life thereafter annuity is the Normal Form of Normal Form of Benefit Benefit. 24 Pay Increase Timing 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. Service Credit Accruals It is assumed that members accrue one year of service credit per year. 25 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 (APV)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, nonretired 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). 26 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 all active members is assumed to increase. Amortization Payment That portion of the plan contribution or ARC which is designed to pay interest on and to amortize the Unfunded 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. 27 Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability. GASBGovernmental Accounting Standards Board. GASB No. 25 andThese 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. 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 LiabilityValue of Assets. Valuation DateThe 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. SECTION C PENSION FUND INFORMATION 28 SUMMARY OF ASSETS September 30 Item20122011 A.Cash and Cash Equivalents (Operating Cash)25,437$ 4,653$ B.Receivables: 1.Member Contributions-$ -$ 2.Employer Contributions29,486 - 3.State Contributions- - 4.Investment Income and Other Receivables298,629 176,809 5.Prepaid Expenses4,566 4,571 6.Total Receivables332,681$ 181,380$ C.Investments 1.Short Term Investments1,659,594$ 1,994,596$ 2.Domestic Equities27,453,629 20,074,165 3.International Equities8,966,454 6,826,286 4.Domestic Fixed Income13,130,973 13,716,002 5.International Fixed Income2,999,933 2,649,047 6.Real Estate5,451,012 4,929,677 7.Private Equity -- 8.Total Investments59,661,595$ 50,189,773$ D.Liabilities 1.Benefits Payable-$ -$ 2.Accrued Expenses and Other Payables(104,480) (123,509) 3.Total Liabilities($ (123,509)104,480)$ E.Total Market Value of Assets Available for Benefits59,915,233$ 50,252,297$ F.Reserves 1.State Contribution Reserve(2,473,781)$ (2,230,171)$ 2.DROP Accounts(7,086,706) (6,185,518) 3.Total Reserves(9,560,487)$ (8,415,689)$ G.Market Value Net of Reserves50,354,746$ 41,836,608$ F.Allocation of Investments 1.Short Term Investments2.78%3.97% 2.Domestic Equities46.01%40.00% 3.International Equities15.03%13.60% 4.Domestic Fixed Income22.01%27.33% 5.International Fixed Income5.03%5.28% 6.Real Estate9.14%9.82% 7.Private Equity0.00%0.00% 8.Total Investments100.00%100.00% 29 PENSION FUND INCOME & DISBURSEMENTS September 30 Item20122011 A.Market Value of Assets at Beginning of Year50,252,297$ 49,247,193$ B.Revenues and Expenditures 1.Contributions a.Employee Contributions1,098,741$ 1,254,028$ b.Employer Contributions3,148,122 3,026,506 c.State Contributions1,004,143 944,530 d.Service Purchase20,097 145,950 e.Rollover to DROP57,799 468,979 f.Total5,328,902$ 5,839,993$ 2.Investment Income a.Interest, Dividends, and Other Income1,479,342$ 1,386,714$ b.Net Realized Gains/(Losses)2,947,945 1,205,632 c.Net Unrealized Gains/(Losses)4,519,406 (2,773,507) d.Investment Expenses(260,201) (271,366) e.Net Investment Income8,686,492$ (452,527)$ 3.Benefits and Refunds a.Refunds(12,001)$ (1,215)$ b.Regular Monthly Benefits(3,949,532) (3,660,412) c.DROP Distributions(299,032) (624,000) d.Total(4,260,565)$ (4,285,627)$ 4.Administrative and Miscellaneous Expenses(91,893)$ (96,735)$ 5.Transfers-$ -$ C.Market Value of Assets at End of Year59,915,233$ 50,252,297$ D.Reserves 1.State Contribution Reserve(2,473,781)$ (2,230,171)$ 2.DROP Accounts(7,086,706)$ (6,185,518)$ 3.Total Reserves(9,560,487)$ (8,415,689)$ EMarket Value Net of Reserves50,354,746$ 41,836,608$ 30 31 RECONCILIATION OF DROP ACCOUNTS Value at beginning of year$6,185,518 Adjustment to beginning of year balance-160,190 Payments credited to accounts+903,587 Investment Earnings credited+456,823 Withdrawals from accounts-299,032 Value at end of year7,086,706 32 INVESTMENT RATE OF RETURN Investment Rate of Return Market ValueActuarial Value Year Ended % % 12/31/1982NA 11.9 12/31/198315.2 13.9 12/31/198411.7 11.1 12/31/198523.1 18.7 12/31/198611.8 13.4 12/31/19875.3 10.3 12/31/198810.9 9.8 12/31/198915.9 14.8 9/30/1990(9 mos.)(1.6) 1.4 9/30/199119.6 13.1 9/30/199212.7 11.2 9/30/199313.1 9.7 9/30/19940.2 3.1 9/30/199518.8 9.3 9/30/199613.1 9.8 9/30/199724.5 12.6 9/30/199811.4 12.4 9/30/199911.8 14.1 9/30/20009.4 13.3 9/30/2001(7.7) 8.0 9/30/2002(5.6) 2.3 9/30/200315.3 3.5 9/30/20046.4 2.2 9/30/20057.9 2.5 9/30/20065.2 5.3 9/30/200712.3 9.3 9/30/2008(17.1) 3.0 9/30/2009(0.2) 0.9 9/30/20108.5 2.5 9/30/2011(0.9) 0.9 9/30/201217.1 2.7 Average Returns: %% 0.82.0 Last Five Years 5.03.3 Last Ten Years %% %% All Years 8.58.2 SECTION D FINANCIAL ACCOUNTING INFORMATION 33 FASB NO. 35 INFORMATION October 1, 2012October 1, 2011 A.Valuation Date B.Actuarial Present Value of Accumulated Plan Benefits 1.Vested Benefits a.Members Currently Receiving Payments$54,726,527$52,899,095 .Terminated Vested Members981,826615,347 b c.Other Members22,651,39720,616,338 d.Total78,359,75074,130,780 2.Non-Vested Benefits3,483,1712,809,005 3.Total Actuarial Present Value of Accumulated Plan Benefits: 1d + 281,842,92176,939,785 4.Accumulated Contributions of Active Members7,395,2336,533,704 C.Changes in the Actuarial Present Value of Accumulated Plan Benefits 1.Total Value at Beginning of Year76,939,78571,187,400 2.Increase (Decrease) During the Period Attributable to: a.Plan Amendment00 b.Change in Actuarial Assumptions1,359,3931,256,220 c.Latest Member Data, Benefits Accumulated and Decrease in the Discount Period8,408,8639,418,616 d.Benefits Paid(4,865,120)(4,922,451) e.Net Increase4,903,1365,752,385 3.Total Value at End of Period81,842,92176,939,785 D.Market Value of Assets50,354,74641,836,608 E.Actuarial Present Value of Accumulated Plan Benefits at FRS rate (7.75%) 1.Vested Benefits78,759,81975,668,653 2.Non-Vested Benefits3,545,2073,004,127 3.Total82,305,02678,672,780 F.Funded Ratio (using FRS rate of 7.75%): D / E361.2%53.2% G.Actuarial Assumptions - See page entitled Actuarial Assumptions and Methods 34 35 Schedule of Funding of Progress GASB Statement No. 25 $95140% $85 120% $75 100% $65 $55 80% $45 60% $35 $25 40% $15 20% $5 -$50% Actuarial Valuation Date Value of Assets(AAL) Entry AgeFunded Ratio Schedule of Funding of Progress GASB Statement No. 25 500% $39 $36 $33 400% $30 $27 300% $24 $21 200% $18 $15 $12 100% $9 $6 0% $3 $0 -$3-100% Actuarial Valuation Date Unfunded AALCovered PayrollUAAL as % of Payroll 36 SCHEDULE OF CONTRIBUTIONS FROM EMPLOYER AND THE STATE OF FLORIDA (GASB Statement No. 25) Year Ended Annual RequiredActualPercentage September 30ContributionContributionContributed 1991$671,784 $676,466 100.7% 1992634,614 634,614 100.0 1993647,325 647,325 100.0 1994626,697 626,697 100.0 1995737,247 737,248 100.0 1996807,150 807,150 100.0 1997776,723 776,724 100.0 1998710,387 710,387 100.0 1999597,198 597,198 100.0 2000512,235 446,493 87.2 2001292,146 365,715 125.2 2002825,167 825,167 100.0 20031,359,690 1,422,244 104.6 20041,655,219 1,705,503 103.0 20051,988,852 2,028,591 102.0 20062,339,568 2,339,568 100.0 20072,664,373 2,664,373 100.0 20082,845,292 2,845,292 100.0 20093,380,156 3,380,156 100.0 20103,678,119 3,688,496 100.3 20113,606,278 3,649,850 101.2 20123,771,466 3,771,466 100.0 37 ANNUAL PENSION COST AND NET PENSION OBLIGATION (GASB STATEMENT NO. 27) Employer FYE September 30201320122011 Annual Required Contribution (ARC)*4,272,215$ 3,771,466$ 3,606,278$ Interest on Net Pension Obligation (NPO)(14,171) (14,935) (12,343) Adjustment to ARC(21,422) (21,118) (17,656) Annual Pension Cost (APC)4,279,466 3,777,649 3,611,591 Contributions made**3,771,466 3,649,850 Increase (decrease) in NPO**6,183 (38,259) NPO at beginning of yea (187,867)(181,684) (149,608) r NPO at end of yea**(181,684) (187,867) r * Includes expected State contribution. ** To be determined. THREE YEAR TREND INFORMATION Fiscal ActualPercentage of Net Pension Annual Pension Year EndingContributionAPC ContributedObligation Cost (APC) 9/30/2010$3,683,246 3,688,496 100.1(149,608) 9/30/20113,611,591 3,649,850 101.1(187,867) 9/30/20123,777,649 3,771,466 99.8(181,684) 38 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, 2012 Contribution Rates: Employer (and State) 44.58% Plan members 12.00% Entry Age Normal Actuarial Cost Method Amortization Method Level percent, Closed Remaining Amortization Period 30 years Asset Valuation Method 5-yr smoothed market Actuarial Assumptions: Investment rate of return 7.80% Projected salary increases See Table in Actuarial Assumptions Section Includes inflation and other general increases at 4.0% Cost of Living adjustments 2.0% starting 5 years after retirement. SECTION E MISCELLANEOUS INFORMATION 39 RECONCILIATION OF MEMBERSHIP DATA From 10/1/11From 10/1/10 To 10/1/12To 10/1/11 Active Members A. 1.Number Included in Last Valuation114125 2.New Members Included in Current Valuation30 3.Non-Vested Employment Terminations00 4.Vested Employment Terminations(1)(1) 5.DROP Participation(1)(9) 6.Service Retirements0(1) 7.Disability Retirements00 8.Deaths00 9.Number Included in This Valuation115114 Terminated Vested Members B. 1.Number Included in Last Valuation10 2.Additions from Active Members11 3.Lump Sum Payments/Refund of Contributions00 4.Payments Commenced00 5.Deaths00 6.Othe00 r 7.Number Included in This Valuation21 C. DROP Plan Members 1.Number Included in Last Valuation118 2.Additions from Active Members19 3.Retirements(1)(6) 4.Deaths Resulting in No Further Payments00 00 5.Other 6.Number Included in This Valuation1111 Service Retirees, Disability Retirees and Beneficiaries D. 1.Number Included in Last Valuation8176 2.Additions from Active Members01 3.Additions from Terminated Vested Members00 4.Additions from DROP Plan16 5.Deaths Resulting in No Further Payments(1)(2) 6.Deaths Resulting in New Survivor Benefits00 7.End of Certain Period - No Further Payments00 8.Other -- Lump Sum Distributions00 9.Number Included in This Valuation8181 40 ACTIVE PARTICIPANT DISTRIBUTION Years of Service to Valuation Date Age GroupTotals 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25+ 20-24 NO.20100000003 TOT PAY76,152054,6310000000130,783 AVG PAY38,076054,631000000043,594 25-29 NO.103027000013 TOT PAY38,0760170,9910115,613461,0040000785,684 AVG PAY38,076056,997057,80765,858000060,437 30-34 NO.0040418100027 TOT PAY00208,8620248,2041,293,68687,2270001,837,979 AVG PAY0052,216062,05171,87187,22700068,073 35-39 NO.00100151300029 TOT PAY0051,833001,134,7041,197,1390002,383,676 AVG PAY0051,8330075,64792,08800082,196 40-44 NO.0010010771026 TOT PAY0058,30100772,472629,168662,679114,84002,237,460 AVG PAY0058,3010077,24789,88194,668114,840086,056 45-49 NO.000002532012 TOT PAY00000150,310452,171322,910223,12301,148,514 AVG PAY0000075,15590,434107,637111,562095,710 50-54 NO.00000031004 TOT PAY000000279,50192,32000371,821 AVG PAY00000093,16792,3200092,955 55-59 NO.00000000000 TOT PAY00000000000 AVG PAY00000000000 60-64 NO.00000100001 TOT PAY00000128,8230000128,823 AVG PAY00000128,8230000128,823 TOT NO.30100653291130115 TOT AMT114,2280544,6180363,8173,940,9992,645,2061,077,909337,96309,024,740 AVG AMT38,076054,462060,63674,35891,21497,992112,654078,476 41 INACTIVE PARTICIPANT DISTRIBUTION Deceased with Terminated VestedDisabledRetiredBeneficiary TotalTotalTotalTotal AgeNumberBenefitsNumberBenefitsNumberBenefitsNumberBenefits Under 20- - - - - - - - 20-24- - - - - - - - 25-29- - - - - - - - 30-34- - - - - - - - 35-39- - - - - - - - 40-441 35,771 - - 1 51,760 - - 45-491 47,124 1 39,373 11 796,122 1 29,935 50-54- - - - 15 1,007,884 1 57,724 55-59- - - - 25 1,143,316 - - 60-64- - - - 20 1,115,255 - - 65-69- - - - 4 182,977 - - 70-74- - - - 4 174,234 3 67,809 75-79- - - - 1 6,951 1 14,517 80-84- - - - 2 71,281 2 22,638 85-89- - - - - - - - 90-94- - - - - - - - 95-99- - - - - - - - 100 & Over -- - - - - - - Total2 82,895 1 39,373 83 4,549,780 8 192,623 Average Age45 47 58 69 Liabilit 642,295981,826 52,572,841 1,511,391 y SECTION F SUMMARY OF PLAN PROVISIONS 42 SUMMARY OF PLAN PROVISIONS A.Ordinances Plan established under the Code of Ordinances for the City of Boynton Beach, Florida, Chapter 18, Article IV, and was most recently amended under Ordinance No. 10-016 passed and adopted on its second reading on August 3, 2010. The Plan is also governed by certain provisions of Chapter 175, Florida Statutes, Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code. Effective Date B. Date was not provided. 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. Eligibility Requirements E. All full-time firefighters are eligible to participate. F.Credited Service Service is measured as the total length of employment for which the firefighter received Compensation from the City and made Member Contributions to the plan. No service is credited for any periods of employment for which the member received a refund of their contributions. G.Compensation Cash compensation exclusive of bonuses and incentive pay, but including lump sum payment of unused leave. Final Average Compensation (FAC) H. The average of Compensation over the highest 3 years during the last 10 years of Credited Service. I.Normal Retirement Eligibility: A member may retire on the first day of the month coincident with or next following the earlier of: (1) age 55 and 10 years of Credited Service, or (2) 20 years of Credited Service regardless of age. 43 Benefit: 3.00% of FAC multiplied by years of Credited Service. Normal Form of Benefit: 10 Years Certain and Life thereafter; other options are also available. COLA: Each retiree, beneficiary and disability retiree who retires or enters the DROP on or st after December 1, 2006 will receive a 2.0% increase in benefits on October 1 of each year beginning 5 years after retirement. Early Retirement J. Eligibility: A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of age 50 and 10 years of Credited Service. Benefit: The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early Retirement date precedes the Normal Retirement date. Normal Form of Benefit: 10 Years Certain and Life thereafter; other options are also available. COLA: Each retiree, beneficiary and disability retiree who retires or enters the DROP on or st after December 1, 2006 will receive a 2.0% increase in benefits on October 1 of each year beginning 5 years after retirement. 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 as a result of an act occurring in the performance of service for the City is immediately eligible for a disability benefit. Benefit: 66 2/3% of Compensation in effect on the date of disability, reduced by amounts payable under Social Security PIA with a minimum benefit equal to 42% of FAC. Normal Form of Benefit: Payable until death or recovery from disability; other options are also available. COLA: Each disability retiree who retires on or after December 1, 2006 will receive a 2.0% st increase in benefits on October 1 of each year beginning 5 years after retirement. M.Non-Service Connected Disability Eligibility: Any member with 10 years of Credited Service who becomes totally and permanently disabled is immediately eligible for a disability benefit. Benefit: 2.5% of FAC multiplied by years of Credited Service with a minimum benefit equal to 25% of FAC. Normal Form 44 of Benefit: Payable until death or recovery from disability; other options are also available. COLA: Each disability retiree who retires on or after December 1, 2006 will receive a 2.0% st increase in benefits on October 1 of each year beginning 5 years after retirement. Death in the Line of Duty N. Eligibility: Members are eligible for survivor benefits after the completion of 10 or more years of Credited Service. Benefit: Spouse will receive 2.5% of the member’s FAC multiplied by years of Credited Service. Normal Form of Benefit: Paid until death or remarriage of spouse. COLA: Each surviving spouse whose benefits began on or after December 1, 2006 will st receive a 2.0% increase in benefits on October 1 of each year beginning 5 years after benefits began. The beneficiary of a plan member with less than 10 years of Credited Service at the time of death will receive a refund of the member’s accumulated contributions. O.Other Pre-Retirement Death Eligibility: Members are eligible for survivor benefits after the completion of 10 or more years of Credited Service. Benefit: Spouse will receive 2.5% of the member’s FAC multiplied by years of Credited Service. Normal Form of Benefit: Paid until death or remarriage of spouse. COLA: Each surviving spouse whose benefits began on or after December 1, 2006 will st receive a 2.0% increase in benefits on October 1 of each year beginning 5 years after benefits began. The beneficiary of a plan member with less than 10 years of Credited Service at the time of death will receive a refund of the member’s accumulated contributions. 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 forms of benefits available to all retirees are a Single Life Annuity or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options. A Social Security option is also available for members retiring prior to the time they are eligible for Social Security retirement benefits. R.Vested Termination 45 Eligibility: A member has earned a non-forfeitable right to Plan benefits after the completion of 10 years of Credited Service. Benefit: The benefit is the member’s accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the date that would have been the member’s Normal Retirement date had they continued employment. Alternatively, members can elect a reduced Early Retirement benefit any time after age 50. Normal Form of Benefit: 10 Years Certain and Life thereafter; other options are also available. COLA: Each member who retires on or after December 1, 2006 will receive a 2.0% increase st in benefits on October 1 of each year beginning 5 years after retirement. Members terminating employment with less than 10 years of Credited Service will receive a refund of their own accumulated contributions. S. Refunds Eligibility: All members terminating employment with less than 10 years of Credited Service are eligible. Optionally, vested members (those with 10 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. T. Member Contributions 12% of compensation U.Employer Contributions Chapter 175 Premium Tax Refunds and any additional amount determined by the actuary needed to fund the plan properly according to State laws. V.Cost of Living Increases Each retiree, beneficiary and disability retiree who retires or enters the DROP on or after December st 1, 2006 will receive a 2.0% increase in benefits on October 1 of each year beginning 5 years after retirement. W.Changes from Previous Valuation There have been no changes in benefits since the last valuation. th X.13 Check In years in which a cumulative net actuarial gain has been determined, there shall be payable an ad- hoc thirteenth check paid in December. Deferred Retirement Option Plan Y. Eligibility: Plan members who have less than 30 years of Credited Service but have met one of 46 the following criteria are eligible for the DROP: (1) age 55 with 10 years of Credited Service, or (2) 20 years of Credited Service regardless of age. Members who meet eligibility must submit a written election to participate in the DROP. Benefit: The member’s Credited Service and FAC 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 FAC. Maximum DROP Period: The earlier of 5 years of participation in the DROP or 30 years of employment. 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.The rate earned by a self-directed account utilizing mutual funds selected by the Board. Normal Form of Benefit: Options include a lump sum or equal periodic payments. COLA: Each member who enters the DROP on or after December 1, 2006 will receive a st 2.0% increase in benefits on October 1 of each year beginning 5 years after retirement. 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 Municipal Firefighters’ Pension Trust Fund liability if continued beyond the availability of funding by the current funding source. Barbara Ladue From: DoNotReply @FPPTA.Org Sent: Friday, February 01, 2013 2:33 PM To: ladueb @bbpdpension.com Subject: Message from the Florida Public Pension Trustees Association Web Site Offers Free Public Ed to Elected /Appointed Officials The Public Pension Institute @ www.publicpensioninstitute.or,i January 31, 2013 Tallahassee — Video tutorials, webinars and pod -casts will be among the interactive opportunities now available to state and municipal officials at The Public Pension Institute — a new non - partisan website dedicated to educating public leaders about administration and funding of defined benefit ' pension plans. Higher contribution rates and volatile investment markets have magnified many municipalities' liabilities in recent years, rattling taxpayers and perplexing budget managers. The new site will offer information to help develop strategies and guide decision - makers. It will feature data, research and proposals to address the challenges facing state officials and municipalities in maintaining retirement plans for public workers. It will be interactive and will feature content from a wide variety of stakeholders. The Florida Public Pension Trustees Association created The Public Pension Institute as an electronic education platform, expanding its services to now include education for state and municipal government and elected officials. The FPPTA is a 29 -year old 501c (3) not for profit that previously offered educational services only to public pension trustees and administrators. It operates a nationally- recognized certification program for public pension trustees; more than 250 of Florida's 490 municipal pension boards are FPPTA members. Funding comes exclusively from member dues, tuition and conference sponsorships. "We have been training and educating public pension board trustees for 29 years. Our trustee members include municipal finance managers and city pension fund administrators in addition to current and former public workers. In light of current economic conditions, we believe we can share helpful information with public officials and lawmakers who must balance competing i financial pressures to achieve manageable budgets and maintain services," said Ray Edmondson, Jr., CEO of the FPPTA in a statement announcing the new organization. The Public Pension Institute will operate as an open site offering information freely, without requirement for membership or dues. Visitors are invited to use the educational materials posted, but also to submit questions, comments and commentary, and to share their experiences. Educational videos, tutorials and research topics will range widely and will include: • Explanations about the difference between unfunded liabilities and underfunded plans. • How Social Security is funded and the possible impact of changes to Social Security on retirement plans. • Earnings strategies for institutional investment plans. • Fiduciary Ethics. • Compliance with Government Accounting Standards Board (GASB) rules. • New initiatives like private- public sector partnerships for retirement security. • Performance measurement of defined contribution accounts, like the 401(k), the IRA, and guaranteed defined benefit pension plans. • Administrative cost comparisons of defined benefit pension plans and defined contribution savings accounts. • The relative strengths and costs of hybrid retirement plans. Visitors are invited to sign up free of charge for live webcasts, or to download podcasts from industry conferences. All content will be made available via archives. The Public Pension Institute also will seek qualified professionals to answer specific questions, explain historical data, or comparative analysis research. Actuaries, pension and labor lawyers, accountants, financial and investment managers in Florida whose practices focus on institutional investment and retirement plans will respond to specific requests for information. The Public Pension Institute was launched January 28. FOR MORE INFORMATION CONTACT: Additional Contacts: Raymond Edmondson, Jr., CPPT Susan Marden, PR, smard2 @verizon.net 800 - 842 - 4064 or ray ar,fppta.org Sean McKinstry, website, smkinstry @hapgood.biz 2 ,KLAUSN KAUFMA ' .,JENSEN a S L.EVINSO FLORIDA SUPREME COURT UPHOLDS PROSPECTIVE CHANGES TO STATE RETIREMENT BENEFITS In a long awaited decision. the Supreme Court of Florida, by a 4 -3 vote, overturned a trial court decision which had held unconstitutional various benefit changes made in the 2011 legislative session. The case, Scott v Williams, So.2d , Case No, SC12 -520 (Fla. January 17, 2013), reinstated an employee contribution in the previously non - contributory plan, a reduction in the DROP accrual rate, and a sharp reduction in the COLA for that portion of retirement service earned after the effective date of the law. The Court reaffirmed a 1981 decision which had upheld a prospective reduction in public safety pension benefits, Florida Sheriffs Association v. Department of Administration, 408 So.2d 1033 (Fla. 1981). Largely, the case turned on the interpretation of a specific provision in law governing the Florida Retirement System, which covers state, county and school employees (as well as some municipal employees) entitled "preservation of rights." The section deemed participation in the FRS to be a contract. When the benefit reductions were adopted in 2011, a coalition of public employees filed suit in state court in Tallahassee challenging the amendments as an impairment of contract under the federal and Florida constitutions, as an unlawful taking without just 1, ; COI ;?1 (li'i!`' 2 -1 C'mos! <<» L i X11 (,_ 1 O? { v i t '3 1 6- i compensation, and a violation of the collective bargaining provisions in the state constitution. The majority found that the contract provision was meant only to preserve benefits already eamed, leaving the state free to alter the pension contract for future service. The dissenting justices noted that the changes created substantial reductions in future benefits and that even under the view that prospective changes were permitted, the amount of the reductions for some members was so substantial that it arguably met the complete deprivation standard that earlier Florida cases had set as a fact specific benchmark for impairment. NCPERS filed an amicus brief with the Florida Supreme Court urging that the law be declared unconstitutional. The effect of the decision will better be known as the Florida Legislature moves into its 2013 session. The Speaker Designate has expressed a belief that the FRS ought to be closed and new plan instituted. The decision may also embolden municipal governments in Florida, most of which have their own retirement systems, to see the decision as a legal "green light" to engage in substantial prospective reductions of retirement benefits. It is significant that the Supreme Court emphasized again that issues relating to pensions and retirement are mandatory subjects of collective bargaining. Still to be decided is whether a provision in the state bargaining law which allows employers in financial distress to impose contract terms on an expedited basis is consistent with the constitutional right to bargain. A case challenging that law is pending in Miami Dade County and is awaiting a trial date. Challenges to benefit reductions continue nationwide, with recent filed cases pending in federal court in Ohio and Texas. In December, a federal judge in Maryland struck down a change in COLA benefits to retirees in Baltimore City but sustained prospective reductions to active members with less than 15 years of service. Both the City and the plaintiffs have appealed to the U.S Court of Appeals for the 4 Circuit. GRS G riel Roeder Smit & Company One East Broward Blvd. 954.527 1616 phone Co sultants & Actuanes Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 1804 www.gabrielroeder.com j g4 -- 64,,:" December 27, 2012 ,f 4f 1 Ms. Barbara LaDue Pension Administrator ti " li Renaissance Executive Suites l, 1500 Gateway Blvd., #220 Boynton Beach, FL 33426 Dear Barbara: Enclosed are eight copies of the biennial update of the Summary Plan Description for the City of Boynton Beach Municipal Firefighters' Pension Trust Fund. Please have legal counsel and the Pension Boards review the SPD before distribution to participants. We welcome your questions and comments. Sincerely yours, Peter N. Strong, ASA Consultant and Actuary PNS /tnr Enclosures CC: Adam Levinson w /enclosure 1 INTRODUCTION TO YOUR PLAN The City of Boynton Beach has established a defined benefit pension plan to provide eligible employees with retirement and related benefits. This Summary Plan Description is a brief description of that Plan and your rights, obligations and benefits under it. This Summary Plan Description is not meant to interpret, extend or change the provisions of the Plan in any way. The provisions of the Plan may only be determined accurately by reading the actual Plan documents. These documents include appropriate City ordinances, Chapters 112 and 175, Florida Statutes, and any rules and regulations adopted by the Board of Trustees. A copy of these documents is on file at the Office of the Pension Administrator and may be read by you, your beneficiaries or your legal representatives at any reasonable time. If you have any questions regarding the Plan or this Summary Plan Description, you should direct them, in writing, to the Plan's Administrator. In the event of any conflict between this Summary Plan Description and the actual provisions of the Plan documents, the Plan documents control. This Summary Plan Description is solely intended as a guide to your benefits and is not intended to create a contract or promise of any specific benefit. Any examples used in this Summary Plan Description are for illustration purposes only and do not represent the actual benefit to be received by any specific person. 3 regularly attend schools and seminars pertaining to the management of pension funds for public employees. Plan Year Each 12 month period beginning on October 1st and ending on September 30th. The Plan's fiscal records are maintained on this basis. Relevant Provisions of Local and State Laws The Plan is set forth in Section 18 of the Code of Ordinances of the City of Boynton Beach. The most recent amendment to the Plan reflected in this Summary Plan Description is Ordinance No. 08 -009. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes (F.S.), Chapter 175 F.S., and various federal laws. Relevant Provisions of Collective Bargaining Agreements Certain employees covered by the Plan are members of the Local 1891 of the International Association of Firefighters. The current collective bargaining agreement between the unit and the Employer covers the period from October 1, 2010 through September 30, 2013. This agreement does not refer to pension matters. Custodian The custodian of the Plan is responsible for the safe - keeping of securities owned by the Pension Fund. The custodian is: Salem Trust Deerfield Beach, Florida 5 CONTRIBUTIONS TO THE PLAN Benefits of the Plan are financed by contributions that are paid into the pension fund and by investment earnings generated by investments of the pension fund. Contributions to the fund are made by: You Your contribution rate is 12% of your Covered Salary (see later page for definition of Covered Salary). Your contributions will cease upon your retirement, death, or employment termination. Interest is not credited to your contributions. State of Florida Monies are paid each year by the State pursuant to Chapter 175, F.S. Said monies are used for the benefit of firefighters. Your Employer The City of Boynton Beach must contribute an amount determined by the Plan's actuary to be sufficient, along with your contribution and the State contribution, to fund systematically the benefits under the Plan. The Employer's contribution will vary depending on the experience of the Plan. 7 service will count for benefit computation purposes but not vesting. Please note that no service credit may be purchased if you are receiving or will receive any other retirement benefit based on such service, including a military or public pension. Family and Medical Leave Act Should you take a leave of absence under the Family and Medical Leave Act, your service will remain continuous even if you are not in a pay status. Use of accumulated leave time will be treated as Credited Service. A contribution will be picked up from paid leave. Use of unpaid leave, however, will not be treated as Credited Service. Permissive Service Credit If you do not have prior firefighter or military service, you may purchase an enhanced benefit multiplier. Under the provision, your regular benefit multiplier (3.0% for retirement) will be twice as large for the number of years purchased, not to exceed five years. You will receive this benefit once you pay the Fund the full actuarial cost of the enhancement. You will be allowed to purchase the service via biweekly payroll deductions over a period of five years or in one lump. Your purchase does not count for vesting or retirement eligibility purposes. 9 RETIREMENT BENEFITS Normal Retirement Benefit The monthly benefit that you will receive if you continue in employment until your Normal Retirement Date is called your Normal Retirement Benefit. The amount of your Normal Retirement Benefit is based on the following factors: 1. Your Covered Salary - This is the amount of your cash compensation excluding bonuses and incentive pay, but including lump sum payment of unused leave, step -up pay, and overtime pay. 2. Your Average Monthly Salary - This is the average of your Covered Salary during the highest three years during the final ten years of employment. 3. Your years of Credited Service at your Normal Retirement Date. The calculation of your Normal Retirement Benefit is as follows: 3.0% of your Average Monthly Salary multiplied by your years of Credited Service. As an example, if your Average Monthly Salary at your Normal Retirement Date is $4,000 and your Credited Service is 22 years, then the calculation would be as follows: 3.0% x $4,000 x 22 years = $2,640 which would be your Normal Retirement Benefit payable each month. The retirement benefit is paid to you for the rest of your life in accordance with the Normal Form of Benefit Payment as described later. (However, see the sections on Death Benefits After Retirement and Election of Optional Forms of Benefit Payments.) Your benefits from this Plan are paid in addition to any benefits you may receive from Social Security. Accrued Benefit The portion of your Normal Retirement Benefit that you have earned at any point in time is your Accrued Benefit. Your Accrued Benefit is computed in the same way as the Normal 11 into the Plan during his or her DROP participation and is no longer eligible for any increase in pension benefits. If you enter the DROP Plan, the monthly benefit that you would have received if you had retired on your election date will be paid into a DROP account. DROP accounts are invested, at the option of the member, using two investment options: 1) Gain or loss at the same rate earned by the Plan, or 2) Guaranteed rate of 7 %. Under the first option, DROP monies gain or lose interest at the same rate as the Plan. As a result, your DROP account balance will fluctuate with the performance of the financial markets. Although a participant's DROP account may earn more than the 7 %, it is also possible that the DROP account will earn less than 7 %, or even lose money based on the investment performance of the Pension Fund. Under the second option, DROP monies will earn interest at an annual fixed rate of seven percent (7 %). This option should be viewed as a more predictable and safer alternative, as the fixed rate of return is guaranteed with no risk of loss. The selection of an investment option is an important decision and should be made after careful deliberation. Once an option is selected, it may be changed once a year on new money deposits. DROP participants should carefully review the Plan's Frequently Asked Questions booklet, which is available upon request. It is also recommended that each DROP participant consult legal and financial advisers, weigh their options carefully, and make a decision that best suits their personal needs. You may participate in the DROP Plan for five years or, if earlier, until you have a total of 30 years of service. Upon retirement, the balance in your DROP account will become payable. You will have the following options of payment: 1. A single lump sum payment 2. Equal periodic payments Should you pass away during your participation in the DROP Plan, your Beneficiary will receive a single lump sum payment of the balance in the DROP account. DROP payments to your Beneficiary will be in addition to any survivor benefits payable by the Plan. 13 DISABILITY RETIREMENT If you become totally and permanently disabled as provided by the Plan, you may be eligible for a disability benefit. Disability eligibility determinations are made by the Board of Trustees. In the case of a disability incurred in the line of duty, you will be eligible for a benefit regardless of your length of service. In the case of a disability that is not incurred in the line of duty, you will only be eligible for a benefit if you have at least ten years of Credited Service. The amount of your benefit due to a line of duty disability is 66 2/3% of your basic monthly rate of earnings in effect on the date of disability. This amount is reduced by any Social Security benefits you may receive. In no event shall the amount of your benefit be less than 42% of your Average Monthly Salary. This benefit is payable until your death or recovery. The amount of your benefit due to non -line of duty disability is 2.5% of your Average Monthly Salary multiplied by your years of service, with a minimum of 25% of your Average Monthly Salary. This benefit is payable until your death or recovery. If you apply for disability retirement, you will be required to submit to a medical examination as determined by the Plan Administrator. The burden of proving that you are totally and permanently disabled from useful and efficient service as a firefighter will be on you. 15 VESTED RETIREMENT BENEFIT If you terminate employment, other than by reason of retirement, disability or death, you may be entitled to a deferred Vested Retirement Benefit. This benefit is equal to your Accrued Benefit on your termination date multiplied by your vested interest. The following chart shows your vested interest in your Accrued Benefit. Vesting Schedule Completed Years Vested of Credited Service Interest Less than 10 0% 10 or more 100 The vested benefit is payable on the date which would have been your Normal Retirement Date had you continued in full-time employment. If earlier, you may receive your vested benefit, reduced as for Early Retirement, any time after your 50th birthday. If you terminate employment with less than ten years of Credited Service, you will receive a refund of your own contributions without interest. The taxable portion of any refund you receive is subject to an automatic 20% withholding for federal income tax purposes. This tax can be avoided, however, if you roll the taxable portion over to an Individual Retirement Account (IRA) or another qualified employer plan. This rollover will result in no tax being due until you begin withdrawing funds from the IRA or other qualified employer plan. The rollover of the distribution, however, must be made directly by the Plan to your chosen IRA or other qualified employer plan. 17 4. Option 4 - Other You may elect another optional form which is subject to the approval of the Plan Administrator and which is actuarially equivalent to the Normal Form of Benefit. In no event may the total of benefit payments to you and your Beneficiary be less than your own accumulated contributions. 19 IMPORTANT NOTICE There are certain circumstances which may result in the disqualification , ineligibility, denial, loss, forfeiture, suspension or deferral of your benefits in this Plan. The following is a list of these circumstances: 1. If you terminate employment before you have enough Credited Service to have earned a vested interest, no benefits will be payable except for a return of your own contributions without interest. 2. If you die before attaining ten years of Credited Service, no benefits will be payable except for a return of your own contributions without interest. 3. No credit is allowed either for benefit accrual or vesting purposes for any period in which you are not considered a full-time employee. 4. Your retirement benefit will not be payable until your actual retirement date, even if you continue to work beyond your normal retirement date. 5. In the event that this Plan terminates and the available Plan assets are less than the value of all Accrued Benefits, then your Accrued Benefit may be reduced. 6. Your Accrued Benefit may be forfeited if you are convicted of certain felonies as provided by State law (Chapter 112.3173 F.S.). 7. Payment of your benefits may be subject to an income deduction order made pursuant to a state domestic relations law. 21 CLAIMS AND PROCEDURES The Plan Administrator has adopted rules to follow when a member applies for a benefit. These rules may be obtained from the office of the Pension Administrator. 23 PENSION FUND INCOME AND DISBURSEMENTS Year Ending Year Ending 9/30/2011 9/30/2010 Market Value at Beginning of Period $49,247,193 $43,765,330 Income Member Contributions 1,254,028 1,275,667 State Contributions 944,530 990,759 Employer Contributions 3,026,506 3,098,953 Other Contributions (Buy- Backs, DROP Rollovers) 614,929 168,757 Investment Earnings Interest, Dividends and Other 1,386,714 1,084,250 Net Appreciation (1,567,875) 2,949,516 Total Earnings (181,161) 4,033,766 Total Income 5,658,832 9,567,902 Disbursements Monthly Benefit Payments 3,660,412 3,382,009 DROP Distributions 624,000 316,100 Refund of Contributions 1,215 0 Investment Related Expenses 271,366 256,343 Other Administrative Expenses 96,735 131,587 Insurance Premiums 0 0 Other Expenses 0 0 Total Disbursements 4,653,728 4,086,039 Net Incre ase During Period 1,005,104 5,481,863 Market Value at End of Period 50,252,297 49,247,193 Less: DROP Account Balance 6,185,518 5,151,995 Less: State Contribution Reserve 2,230,171 1,908,985 Final Market Value 41,836,608 42,186,213 MEMORANDUM TO: Pension Board — City of Boynton Beach Municipal Firefighters' Pension Trust Fund FROM: Pete Strong, Consultant and Actuary, Gabriel, Roeder, Smith & Company DATE: February 13, 2013 SUBJECT: GASB No. 67 Effective in the fiscal year ending September 30, 2014, Plan financial statements will need to comply with the new GASB Statement No. 67. Employer financial statements will need to comply with the new GASB Statement No. 68 in the following year (the fiscal year ending September 30, 2015). This may seem like a while from now, but it will be here before you know it, and there are certain steps that Pension Boards should start taking or at least start thinking about to prepare for GASB No. 67 compliance. Here is a list of the most important new items that will be required under GASB Statement No. 67: • Disclosure of the expected real rate of return for each asset class and the target investment allocation for each asset class. It will also be required to disclose whether the expected real rates of return for each asset class are arithmetic or geometric expected returns. • Disclosure of the investment return assumption — the long -term expected rate of return on Plan assets — and a description of how it was determined. • Disclosure of the actual investment return for the year, calculated based on the actual timing and amount of all cash flows into and out of the trust fund during the year. This investment return calculation is likely not the same as the one currently provided by your investment consultant. Due to the complexities of the GASB's requirements for this calculation, the best source to provide this return will be your investment consultant. • Determination of the discount rate. The discount rate might be lower than the long -term expected rate of return. A projection of future cash flows over the life of the Plan (for all current members) will need to be performed to see if there is a "cross -over date" (a date on which assets are projected to go to zero). Projected benefit payments after that date will need to be discounted using an AA -rated municipal bond index rate. • Disclosure of the dates of past experience studies prepared with regard to the significant demographic assumptions. • Disclosure of the Plan's funding policy. A funding policy statement should be prepared prior to the effective date of GASB Statement No. 67. • Year -end disclosure of the liabilities, assets and pension expense. A separate "GASB No. 67" valuation report will be prepared. In the absence of significant plan changes during the 12- month period ending September 30, the valuation date used will be the prior October 1S and liabilities will be rolled forward 12 months to the September 30 measurement date. Assets will be reported as of the measurement date (September 30th). STW FIXED INCOME MANAGEMENT Ms. Barbara LaDue Invoice Number: 01133310 Pension Administrator Invoice Date: 01/11/13 City of Boynton Beach Municipal Firefighters' Pension Trust Renaissance Executive Suites 1500 Gateway Boulevard, Suite #220 Boynton Beach, FL 33426 For Account: City of Boynton Beach Municipal Firefighters' Pension Trust Fund Original Invoice Please Pay Period Under Management 01 /01 /13 to 03/31/13 Assets Under Management: 8,000,425 Quarterly Fee Due: $ 7,500.40 Fee Schedule 0 to 30,000,000 0.375% 30,000,001 to 100,000,000 0.250% 100,000,001 to 500,000,000 0.125% 500,000,001 to 1,000,000,000 0.100% 1,000,000,001 and above 0.080% Fee Breakdown Account Assets Fee City of Boynton Beach Municipal Firefighters' Pension Trust Fund 8,000,425 7,500.40 City of Boynton Beach Municipal Firefighters' Pension Trust Fund - TIPS 2,220,652 ✓ 10,221,075 7,500.40 Wire Instructions: Wells Fargo Bank, N.A. Ventura, CA ABA Routing Number: 121000248 Account Number: 4945349280 Account Name: STW Fixed Income Management LLC 6185 Carpinteria Avenue • Carpinteria, California 93013 PH [805) 745 -2400 • FAX (805) 745 -2401 stw @stw.com • www.stw.com INVOICE DSM CAPITAL PARTNERS LLC 116 Radio Circle Drive, Suite 200, Mt. Kisco, NY 10549 Tel: (914) 242 - 1900 16- Jan -13 Invoice No: 10916 Luke Henderson City of Boynton Beach Municipal Firefighters Pension Trust Fund 1500 Gateway Boulevard, Suite 220 Boynton Beach, FL 33426 Billing Period: FROM 01/01/2013 TO 03/31/2013 Account Name City of Boynton Beach Municipal Firefighters Pension Trust Fund ,Z" Portfolio Value $6,623,432 Amount Due $15,543.94 FEE CALCULATION % of Annual Rate Rate Assets Under Management Fee 1.0000 % 0.25 On the first: 5,000,000 12,500.00 0.7500 % 0.25 On the next: 1,623,432 3,043.94 Total $15,543.94 To wire payment: *Please note new wiring instructions* JP Morgan Chase ABA #: 021000021 A/C Name: DSM Capital Partners LLC A/C #: 3241067005 B Invoice GROUP Date Invoice # 12/13/2012 8338 4S')1 Vineland Rd Suite 600 Orlando, FL 32811 B II - o Boyto 1 Beach Firefighters' Pension Plan Attr F arbara Lit Due Description Amount Perfori lance Evaluation and Consulting Services 8,375.00 10/1/2012-12/31/2012 Balance Due $8,375.00 egnt Administrators 41 I TEGRIT c/o Tegnt Group ' GRCSU P Phone (330) 644 -2044 Fax (330) 644 -2705 13680 Cleveland Avenue, NW Actuarial Consulting 1 Retirement Plan Services 'Technologies Date Invoiced Invoice # Due Date 1/16/2013 3075 2/5/2013 BILL TO: Ms. Barbara LaDue 7 4 -1 Boynton Beach Municipal Firefighter's Check Made Payable To: ACH Payment To: Renaissance Exectutive Suites 1500 Gateway Blvd., Suite # 220 Tegnt Administrators Westfield Bank Boynton Beach, FL 33426 ABA #. 041272279 Account #: 1513135 '1 E745,--474 CLIENT BOYNTON BEACH MUNICIPAL FIREFIGHTER'S PLAN BOYNTON BEACH MUNICIPAL FIREFIGHTERS RETIREMENT PLAN Quarterly Invoice for December 31, 2012 Recordkeeping Administration Drop Plan administration for Fixed portion of Plan 500.00 Includes the following Quarterly Statements Mailed and on CD Quarterly Management Reports To ensure your payment is credited to your account, please reference this invoice Sub - Total: $500.00 number on your remittance. Payments Received: $0.00 If you have any questions, contact John Colvard at 864- 699 -6918 or by email to john.colvard @tegritgroup.com Grand Total: $500.00 �... _ - - a A ..,., .., ,.,. -ate .�„ �. Retirement Plan DG January 10, 2013 Ms. Barbara LaDue Invoice ID: 1649 Administrator City of Boynton Beach Firefighters Pension 1500 Gateway Boulvard, Suite 220 Boynton Beach, FL 33426 Email: Ladueb @bbpdpension.com MANAGEMENT FEE: BOYNTON BEACH FF BOYNTON BEACH MUNICIPAL FIREFIRGHTERS PENSION For the Period 10/1/2012 through 12/31/2012 12/31/2012 Portfolio Value: $ 6,841,088.79 Quarterly Fee Based On: 0.75% on the first $25,000,000 ($6,841,089) $ 12,827.04 Quarterly Fee: $ 12,827.04 PLEASE REMIT PAYMENT TO By Wire: Wells Fargo Bank NA ABA Number: 121000248 Account Name: Dalton, Greiner, Hartman, Maher & Co., LLC. Account Number: 2090001865061 Swift Code: WFBIUS6S By ACH/EFT: Wells Fargo Bank NA ABA Number: 063107513 Account Name: Dalton, Greiner, Hartman, Maher & Co., LLC Account Number: 2090001865061 By Check: Dalton, Greiner, Hartman, Maher & Co 3001 Tamiami Trail North, Suite #206 Naples, FL 34103 Attn: Dolores Casaletto • Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 10059 Northwest 1st Court Plantation, Florida 33324 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS November 29, 2012 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 14329 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 11/29/12 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 Professional Fees Date Description Hours Amount 11/01/12 OFFICE CONFERENCE REGARDING UPCOMING 0.40 120.00 MEETING; REVIEW OF ORDINANCE; TELEPHONE CONFERENCE WITH MR. HENDERSON. 11/01/12 RECEIPT AND REVIEW EMAIL AND AGENDA; 0.20 60.00 REVIEW FILE 11/02/12 RECEIPT AND REVIEW EMAIL FROM 0.10 30.00 INTERCONTINENTAL 11/05/12 PREPARATION FOR BOARD MEETING; CONFER 1.00 300.00 WITH SHM 11/07/12 REVIEW OF MEETING PACKAGE; OFFICE 0.30 90.00 CONFERENCE REGARDING SAME. 11/08/12 ATTENDANCE AT BOARD MEETING. 3.60 1,080.00 11/27/12 RECEIPT AND REVIEW EMAIL AND SPD 0.50 150.00 Total for Services 6.10 $1,830.00 CURRENT BILL TOTAL AMOUNT DUE $ 1,830.00 Klausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 10059 Northwest 1st Court Plantation, Florida 33324 Tel. (954) 916 -1202 www.robertdklausner.com Fax (954) 916 -1232 Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS December 27, 2012 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 14399 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 12/27/12 CLIENT: BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE :900334 CURRENT BILL TOTAL AMOUNT DUE $ 0.00 Past Due Balance 1,830.00 AMOUNT DUE $1,830.00 I N V O I C E ELLEN SCHAFFER INVOICE: 2573 339 N.W. 99 WAY DATE: 11/15/2012 CORAL SPRINGS, FL. 33071 REF.: Home: (954) 341 -5032 Fax: (954) 345 -0748 Public Pension Software Consultant Sold to CITY OF BOYNTON BEACH PENSION OFFICE 1500 GATEWAY BLVD. SUITE 220 BOYNTON BEACH, FL. 33426 ATTN: BARBARA LADUE, ADMINISTRATOR QTY DESCRIPTION AMOUNT TOTAL 1.0 SOFTWARE SUPPORT CONTRACT FEE 3,300.00 3,300.00 FOR PC PENSION ACCOUNTING SYSTEM: TERM IS 1/23/2013 - 1/23/2014 /I' 49(7 FOR BOYNTON BEACH POLICE AND FIREFIGHTERS . r SUBTOTAL $ 3,300.00 TAX $ .00 SHIP /HAND $ .00 TOTAL $ 3,300.00 PLEASE MAKE CHECK PAYABLE TO ELLEN SCHAFFER THANK YOU I N V O I C E ELLEN SCHAFFER INVOICE: 2588 339 N.W. 99 WAY DATE: 12/09/2012 CORAL SPRINGS, FL. 33071 REF.: Home: (954) 341 -5032 Fax: (954) 345 -0748 Public Pension Software Consultant Sold to CITY OF BOYNTON BEACH PENSION OFFICE 1500 GATEWAY BLVD. SUITE 220 BOYNTON BEACH, FL. 33426 ATTN: BARBARA LADUE, ADMINISTRATOR QTY DESCRIPTION AMOUNT TOTAL 3.0 HOUR(S) CONSULTING & PROGRAMMING SERVICE 115.00 345.00 TO MODIFY BENEFIT CALCULATION SYSTEM TO HANDLE NEW EXPANDED INPUT FORMAT. FOR BOYNTON BEACH FIREFIGHTERS SUBTOTAL $ 345.00 TAX $ .00 SHIP /HAND $ .00 TOTAL $ 345.00 PLEASE MAKE CHECK PAYABLE TO ELLEN SCHAFFER THANK YOU I N V O I C E ELLEN SCHAFFER INVOICE: 2601 339 N.W. 99 WAY DATE: 1/18/2013 CORAL SPRINGS, FL. 33071 REF.: Home: (954) 341 -5032 Fax: (954) 345 -0748 Public Pension Software Consultant Sold to CITY OF BOYNTON BEACH PENSION OFFICE 1500 GATEWAY BLVD. SUITE 220 BOYNTON BEACH, FL. 33426 ATTN: BARBARA LADUE, ADMINISTRATOR QTY DESCRIPTION AMOUNT TOTAL 6.0 HOUR(S) PROGRAMMING & CONSULTING SERVICE 115.00 690.00 PROVIDE PROGRAM TO POST MISSING PAYROLL OF 12/16/2012 FROM NON- STANDARD INPUT; ADJUST AND BALANCE YTD CONTRIBUTIONS FOR 2012; POST SYSTEM TO CURRENT. FOR BOYNTON BEACH FIREFIGHTERS SUBTOTAL $ 690.00 TAX $ .00 SHIP /HAND $ .00 TOTAL $ 690.00 PLEASE MAKE CHECK PAYABLE TO ELLEN SCHAFFER THANK YOU Davidson, Jamieson & Cristini, P.L. Invoice 1956 Bayshore Blvd. Date Invoice # Dunedin, F134698 Phone # 727- 734 -5437 1/7/2013 R6959 Fax # 727 - 733 -3487 Bill To City of Boynton Beach Firefighters' Pension Plan 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Description Amount Audit of Financial Statements for the year ended September 30, 2012 Progress Billing 5,000.00 Total $5,000.00 Payments /Credits $0.00 Balance Due $5,000.00 Terms Invoices are due and payable upon receipt Any amounts remaining unpaid after 30 days will be assessed a Service Charge equal to 1% per month (12% per annum) Minimum monthly service charge is $5 00 G is Gabriel Roeder Smith & Company Invoice Consultants & Actuaries One East Broward Blvd. Suite 505 Da te Invoice # Ft. Lauderdale, Florida 33301 -1804 (954) 527 - 1616 11/9/2012 120024 Bill To: Please Remit Fo: BOARD OF TRUSTEES, BOYNTON BEACH MUNICIPAL FIREFIGHTERS RETIREMENT FUND Dept. # 78009 Gabriel Roeder Smith & Company Ms. Barbara La Due PO Box 78000 City of Boynton Beach Detroit, Michigan 48278 -0009 Renaissance Executive Suites or 1500 Gateway Blvd., Suite 220 ACH Payment to: Boynton Beach, FL 33426 Gabriel Roeder Smith & Company JPMorgan Chase, ABA #: 072000326 Account #: 0486723 Description Project # Amou For services rendered through 10/31/2012 Charges to date for preparation of the 10/1/2012 Actuarial Valuation 100560 -068 $1,142 Report; total charges to date equal $1,142 Invoice Total $1,142 Paid to Date Client No. 100560 Amount Due $1,142 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. G JS Gabriel Roeder Smith & Company Invoice Consultants & Actuaries One East Broward Blvd. Suite 505 Date oice # Ft. Lauderdale, Florida 33301 -1804 (954) 527 - 1616 12/10/2012 120210 Sill To: Please Remit To: BOARD OF TRUSTEES, BOYNTON BEACH MUNICIPAL FIREFIGHTERS RETIREMENT FUND Dept. # 78009 Gabriel Roeder Smith & Company Ms. Barbara La Due PO Box 78000 City of Boynton Beach Detroit, Michigan 48278 -0009 Renaissance Executive Suites or 1500 Gateway Blvd., Suite 220 ACH Payment to: Boynton Beach, FL 33426 Gabriel Roeder Smith & Company JPMorgan Chase, ABA #: 072000326 Account #: 0486723 Description Project # lmount For services rendered through 11/30/2012 1. DROP retirement benefit calculation: Murphy 100560 -068 $225 2. Charges since 10/31/2012 for preparation of the 10/1/2012 Actuarial 100560 -068 $699 Valuation Report; total charges to date equal $1,841 Invoice Total $924 Paid to Date Client No. 100560 Amount Due $924 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. GRS Gabriel Roeder Smith & Company Invoice Consultants & Actuaries One East Broward Blvd. Suite 505 Date in% ()ice # Ft. Lauderdale, Florida 33301 -1804 (954) 527 - 1616 1/7/2013 120494 Bill To: Please Remit To: BOARD OF TRUSTEES, BOYNTON BEACH MUNICIPAL FIREFIGHTERS RETIREMENT FUND Dept. # 78009 Gabriel Roeder Smith & Company Ms. Barbara La Due PO Box 78000 City of Boynton Beach Detroit, Michigan 48278 -0009 Renaissance Executive Suites or 1500 Gateway Blvd., Suite 220 ACH Payment to: Boynton Beach, FL 33426 Gabriel Roeder Smith & Company JPMorgan Chase, ABA #: 072000326 Account #: 0486723 Description Project # Amount For services rendered through 12/31/2012 Charges since 11/30/2012 for preparation of the 10/1/2012 Actuarial 100560 -068 $2,777 Valuation Report; total charges to date equal $4,618 Invoice Total $2,777 Paid to Date Client No. 100560 Amount Due $2,777 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. t INTERCONTINENTAL REAL ESTATE CORPORATION 1N I I\ / \. O N { t I 1 V F N 1 r A I. 1270 SOLDIERS FIELD ROAD BOSTON, MASSACHUSETTS 02135 -1003 TELEPHONE 617 -782 -2600 FACSIMILE 617-782-9442 www.intercontinental net PAUL J. NASSER Chief Financial Officer and Chief Operating Officer November 16, 2012 Ms. Barbara LaDue, Pension Administrator City of Boynton Beach Firefighters' Pension Fund Renaissance Executive Suites 1500 Gateway Blvd., Suite 220 Boynton Beach, FL 33426 RE: U.S. Real Estate Investment Fund, LLC Dear Ms. LaDue: We are pleased to announce that U.S. Real Estate Investment Fund, LLC (US REIF) has made a distribution to you in the amount of $26,167.39, which constitutes your pro rata gross share of an overall distribution of $4,318,651.81. The Fund has withheld $8,045.37 for payment of asset management fees for the third quarter 2012, resulting in a net distribution to you of $18,122.02. As authorized by your executed Dividend Reinvestment Plan (DRIP) Letter, Intercontinental has reinvested your net distribution of $18,122.02 into US REIF. Intercontinental will report the number of reinvested shares as part of the fourth quarter 2012 reporting. If y , ha any questions or wish to change your method of payment, please contact Thomas Mitchell at .17-77 .inc ely, 'aul J. Nasser (�`�' cc via email: David West, Bogdahn Consulting o.1.222 Klausner, Kaufman, Jensen & Levinson f A Partnership of Professional Associations Attorneys At Law 10059 Northwest 1st Court Plantation, Florida 33324 y . 70 7 Tel. (954) 916 -1202 ww.robertdklausner.com Fax (954) 916 -1232 w Tax I.D.: 45- 4083636 BOYNTON BEACH FIREFIGHTERS January 30, 2013 Attn: MRS. BARBARA LA DUE, ADMIN. Bill # 14470 1500 GATEWAY BOULEVARD, SUITE 220 BOYNTON BEACH, FL 33426 For Legal Services Rendered Through 01/30/13 CLIENT. BOYNTON BEACH FIREFIGHTERS PENSION FUND : BOYNTON MATTER: BOYNTON BEACH FIREFIGHTERS - GENERAL FILE 900334 Professional Fees Date Description Hours Amount 01/11/13 REVIEW PENDING LEGISLATION AND PENDING 0.50 150.00 ISSUES 01/15/13 RECEIPT AND REVIEW EMAILS AND GARCIA FILE 1.00 300.00 01/29/13 RECEIPT AND REVIEW EMAILS; REVIEW FILE 0.40 120.00 Total for Services 1.90 $570.00 CURRENT BILL TOTAL AMOUNT DUE $ 570.00 Past Due Balance 1,830.00 AMOUNT DUE $2,400.00 HCC Global H CC 37 Radio Circle Drive, Mount Kisco, New York 10549 000 main 914 241 8900 facsimile 914 241 8098 January 14, 2013 @@� City of Boynton Beach 1500 Gateway Boulevard, Suite 220 Boynton Beach, FL 33426 Insured: City of Boynton Beach e Policy No: U712- 50978 Policy Period: 04/10/2012 - 04/10/2013 /000, Insurer: U.S. Specialty Insurance Company t1 Coverage: Corporate Fiduciary Liability 7p4 °" baix"'- In compliance with state insurance regulations, please be advised that the above captioned policy may be subject to non - renewal, a change in coverage conditions, or an increase in premium at expiration. This notice is not intended to indicate an unfavorable renewal position by the carrier, but to inform you that the renewal position is subject to the underwriting information we receive. We appreciate your business. To ensure your renewal is reviewed on a timely basis, we recommend that you contact your agent or broker to answer your questions and prepare a renewal submission. Sincerely, HCC GLOBAL CC: Trustee and Fiduciary Insurance Services, Inc 3810 Inverrary Blvd. Suite 303 Lauderhill, FL 33319 Attn: Carolyn Furlong Phone: (800) 452 -2454 Email: CIFurlong @aol.com A Subsidiary of HCC Insurance Holdings, Inc G J$ Gabriel Roeder Smith & Company One East Broward Blvd 954 527 1616 phone Consultants 8c Actuaries Suite 505 954 525 0083 fax Ft Lauderdale, FL 33301 1804 www gabrielroeder com November 19, 2012 CONFIDENTIAL Ms. Barbara La Due Pension Administrator Renaissance Executive Suites 1500 Gateway Blvd. Suite 220 Boynton Beach, Florida 33426 Re: City of Boynton Beach Municipal Firefighters' Pension Trust Fund Dear Barbara: You have asked us to verify the retirement benefits for the following employee: MURPHY, Thomas R. (DROP Retirement) Based on the information provided, we have determined that the retirement benefits that have been calculated for the above participant are in accordance with plan provisions. We welcome your questions and comments. Sincerely yours, r . Stephen Palmquist, ASA Senior Consultant and Actuary JSP /cw Enclosures Circular 230 Notice: Pursuant to regulations issued by the IRS, to the extent this communication (or any attachment) concerns tax matters, it is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax - related penalties under the Internal Revenue Code or (ii) marketing or recommending to another party any tax- related matter addressed within. Each taxpayer should seek advice based on the individual's circumstances from an independent tax advisor. This communication shall not be construed to provide tax advice or legal advice unless it contains one of the following phrases, or substantially equivalent language: "This communication is intended to provide tax advice." Or "This communication is intended to provide legal advice." Barbara Ladue From: Barbara Ladue [ladueb @bbpdpension.com] Sent: Wednesday, October 31, 2012 11:44 AM To: ' Travis .Robinson @gabrielroeder.com' Cc: 'Pete.Strong @gabrielroeder.com' Subject: Boynton Fire - Benefit Verification - Thomas Murphy Attachments: SKMBT_C55012103111200.pdf Travis: Please review the attached benefit for verification for the Fire Pension Board: Thomas R. Murphy, SS# 262 -83 -XXXX, retirement into DROP 9 -30 -2012, initial DROP benefit effective 10 -01- 2012, Life 10 C &C amount $10,282.78. Please note service buy -back of 2 yrs 3months, purchased in December 2005, is included in service credited. Thank you. Barb La Due From: fax@compson.com [mailto:fax0compson.com] Sent: Wednesday, October 31, 2012 11:21 AM To: IaduebCa�bbpdpension.com Subject: Message from KMBT C550 1 BOYNTON BEACH FIREFIGHTERS' PENSION FUND DROP ACCOUNT NAME - TA4m fa-s R. ! t R. y (Print) ss# 02 ?'3 — xX)9. Effective with the first benefit payment due, lo — / . o is , I direct the DROP Pension Benefit to be invested in the Boynton Beach Firefighters' Pension Fund, as follows: Investment Earnings of the Plan Guaranteed 7% Fixed /OC % The investment selection may be changed each year effective January ls` X ' (Signature) Date 9 le / I Witness: * * * PENSION STATUS REPORT * * * CITY OF BOYNTON BEACH FIREFIGHTERS PENSION SYSTEM DATE PREPARED: October 31, 2012 FOR: MURPHY, THOMAS R SSN: 262 -83 -xxxx EMP NO: 1087 BIRTH DATE: AGE: 50 PLAN: FP DEPT: 22 HIRE DATE: 01/31/1991 PENSION HIRE DATE: 01/31/991 VEST DATE: 02/01/2001 ADJUSTED HIRE DATE: 10/31/1988 EARLY RETIRE DATE: 00/0(/0000 LENGTH OF SERVICE: 23 YR 10 MO NORMAL RETIRE DATE: 10/31/2008 TERMINATION DATE: 09/0/2012 BENEFICIARY: BENEFICIARY BIRTH DATE: 00 /00 /0000 VACATION ACCRUED: 129.23 RATE OF PAY: 42.93 SICK TIME ACCRUED: 125.54 * * 9/30/12 ACCRUALS * * VACATION ACCRUED: 1252.00 RATE OF PAY: 42.93 SICK TIME ACCRUED: 2582.92 * * ACCOUNT BALANCE * * POST -TAX CONTRIBUTIONS: $ 4,422.10 PFE -TAX CONTRIBUTIONS: $ 157,980.09 CONTRIBUTION BALANCE: $ 162,402.19 * * ELECTIVE BENEFITS * * PURCHASE PURCHASE SERVICE PLAN YEAR LIFETIME CODE START END YY -MM -DD CONTRIBUTION CONTRIBUTION RATE �O L1 12/01/2CO5 12/01/2005 2 3 0 .00 53,378.00 F1 - SERVICE BUY BACK PAYROLL DEDUCION F5 - AIRTIME PURCHASE PAYROLL DEDUCTION L1 - SERVICE BUY BACK LUMP SUM - PRE -TAX L2 - SERVICE BUY BACK LUMP SUM - POT -TAX UL - UNPAID LEAVE SERVICE REDUCTION L3 - AIRTIME PURCH. LUMP SUM - PRE -TAX L4 - AIRTIME PURCH. LUMP SUM - POSTTAX CITY OF BOYNTON BEACH FIREFIGHTERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 1 October 31, 2012 NAME MURPHY, THOMAS R # 1087 SSN 262 -83 -xxxx DEPT 22 ADDRESS CONTR(NTX) 4,422.10 PEN HIRE 01/31/1991 BALANCE 162,402.19 ADJ HIRE 11/01/1988 RETIRE 09/30/2012 TYPE N LAST SERV 09/30/2012 36 MO EARN 515,995.75 ELIG NORM 11/01/2008 AVG MO EARN 14,333.22 ELIG EARLY 00 /00 /0000 SERV AT TERM 23 10 29 100% VEST 02/01/2001 AGE AT RETIRE 50 8 17 COMMENCE 10/01/2012 COM ANB /DIFF 51 0 LAST EARN 00/00/0000 VESTED TDY /RET 100 100 BEN NAME SERV OVERRIDE BEN BDAY 00 /00 /0000 PAY HIST FLAG IRREGULAR VAC HRS /CD 129.23/N6 HOURLY RATE 42.930 SIC HRS /CD 125.54 F1 VAC SIC PAYOUT .00 ACCRUE PER .00 EARLY OPTION LAST PAY 20120924 - 20121007 TERM -DATE 20120930 QDRO e e BENEFIT 10,282.78 EARLY REDUCTION FACTOR: .00000 EARLY RETIRE BENEFIT .00 TEN YEAR CERTAIN & LIFE 10,282.78/ g... .- ge LIFE ANNUITY FACTOR: 1.01810 MODIFIED LIFE ANNUITY 10,468.90 /a$ 100% SURV. FACTOR: .00000 100% SURV. ANNUITY .00 SURVIVOR BENEFIT .00 66 2/3% SURV. FACTOR: .00000 66 2/3% SURV. ANNUITY .00 SURVIVOR BENEFIT .00 50% SURV. FACTOR: .00000 50% SURV. ANNUITY .00 SURVIVOR BENEFIT .00 75% JOINT LAST FACTOR: .00000 75% JOINT & LAST ANNUITY .00 SURVIVOR BENEFIT .00 50% JOINT LAST FACTOR: .00000 50% JOINT & LAST ANNUITY .00 SURVIVOR BENEFIT .00 EXCLUSION RATIO USING SAFE HARBOR METHOD: ANNUITY JOINT SRV NUMBER OF EXPECTED PAYMENTS 360 0 TAX -FREE PORTION OF MONTHLY BENEFIT 12.28 .00 DATE WHEN BENEFIT BECOMES FULLY TAXABLE 10/01/2042 00 /00 /0000 Prepared by * indicates manual override CITY OF BOYNTON BEACH FIREFIGHTERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 2 October 31, 2012 THOMAS R MURPHY H I G H Y E A R O N E H I G H Y E A R T W O PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES 09/24/12 1.0 111,094.92 03/15/10 2.0 4,237.68 09/10/12 2.0 4,921.48 03/01/10 2.0 4,647.42 08/27/12 2.0 4,701.48 02/15/10 2.0 7,147.13 08/13/12 2.0 9,494.16 02/01/10 2.0 4,267.93 07/30/12 2.0 4,121.85 01/18/10 2.0 4,806.92 07/16/12 2.0 4,379.47 01/04/10 2.0 4,267.93 07/02/12 2.0 4,599.47 12/21/09 2.0 4,047.93 06/18/12 2.0 4,121.85 12/07/09 2.0 5,564.53 06/04/12 2.0 4,599.47 11/23/09 2.0 5,565.90 05/21/12 2.0 5,474.33 11/09/09 2.0 6,102.15 05/07/12 2.0 5,098.60 10/26/09 2.0 7,210.38 04/23/12 2.0 4,186.25 10/12/09 2.0 4,837.17 04/09/12 2.0 4,663.87 09/28/09 2.0 4,079.55 03/26/12 2.0 5,152.31 09/14/09 2.0 6,609.50 03/12/12 2.0 4,341.85 08/31/09 2.0 4,900.42 02/27/12 2.0 4,894.70 08/17/09 2.0 4,870.17 02/13/12 2.0 4,121.85 08/03/09 2.0 9,327.84 01/30/12 2.0 4,341.85 07/20/09 2.0 4,047.93 01/16/12 2.0 4,121.85 07/06/09 2.0 5,785.90 01/02/12 2.0 5,823.14 06/22/09 2.0 5,818.90 12/19/11 2.0 4,379.47 06/08/09 2.0 4,267.93 12/05/11 2.0 5,887.54 05/25/09 2.0 5,249.66 11/21/11 2.0 4,926.90 05/11/09 2.0 5,880.77 11/07/11 2.0 5,372.32 04/27/09 2.0 4,047.93 10/24/11 2.0 4,637.08 04/13/09 2.0 5,565.90 10 /10 /11 2.0 6,402.77 03/30/09 2.0 9,792.10 09/26/11 1.0 2,060.93 00 /00 /00 .0 .00 TOTAL 52.0 237,921.76 TOTAL 52.0 142,947.57 CITY OF BOYNTON BEACH FIREFIGHTERS' RETIREMENT SYSTEM FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 3 October 31, 2012 THOMAS R MURPHY H I G H Y E A R T H R E E PAY EFF WEEKS WAGES 03/16/09 2.0 4,047.93 03/02/09 2.0 5,849.15 02/16/09 2.0 4,806.92 02/02/09 2.0 5,532.91 01/19/09 2.0 6,135.14 01/05/09 2.0 4,267.93 12/22/08 2.0 5,565.90 12/08/08 2.0 4,267.93 11/24/08 2.0 4,142.80 11/10/08 2.0 6,639.76 10/27/08 2.0 5,629.15 10/13/08 2.0 4,267.93 09/29/08 2.0 4,103.38 09/15/08 2.0 5,490.92 09/01/08 2.0 5,066.15 08/18/08 2.0 4,180.59 08/04/08 2.0 9,205.15 07/21/08 2.0 3,993.40 07/07/08 2.0 4,213.40 06/23/08 2.0 3,993.40 06/09/08 2.0 4,213.40 05/26/08 2.0 3,993.40 05/12/08 2.0 7,177.25 04/28/08 2.0 3,993.40 04/14/08 2.0 3,993.40 03/31/08 2.0 9,157.71 03/17/08 .6 1,198.02 TOTAL 52.6 135,126.42 CITY OF BOYNTON BEACH FIREFIGHTERS' RETIREMENT SYSTEM FINAL STATEMENT OF RETIREMENT BENEFITS October 31, 2012 Participant's Name: THOMAS R MURPHY Social Security #: 262 -83 -xxxx You are eligible for a(n) NORMAL Retirement Benefit from the Plan. Your benefit is payable at the beginning of each month com- mencing October 1, 2012 . The amount of your monthly benefit depends on the optional form of annuity which you choose. Please indicate the one optional form listed below which you elect to recieve: 1. MODIFIED CASH REFUND ANNUITY: This option provides monthly pay- ments of $10468.90 to you as long as you live. If you should die before you have received an amount equal to your own contributions to the Plan, payments will continue to your beneficiary until your own contributions have been used up. // CERTAIN AND LIFE THEREAFTER: This option provides monthly payments of $10282.78 to you as long as you live. If you should die before 120 monthly payments have been made, the monthly payment of $10282.78 will continue to be made to your beneficiary until a total of 120 monthly payments have been made in all. 3. 100% SURVIVOR ANNUITY: This option provides monthly payments of $ .00 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ .00 for as long as he /she lives. 4. 66% SURVIVOR ANNUITY: This option provides monthly payments of $ .00 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ .00 for as long as he /she lives. 5. 50% SURVIVOR ANNUITY: This option provides monthly payments of $ .00 to you as long as you live. Your beneficiary, if living at the time of your death, will receive monthly payments of $ .00 for as long as he /she lives. 6. 75% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ .00 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of $ .00 will continue for the life of the remain- ing person. 7. 50% JOINT AND LAST SURVIVOR ANNUITY: This option provides monthly payments of $ .00 to you as long as both you and your bene- ficiary are living. After the death of either you or your beneficiary, monthly payments of $ .00 will continue for the life of the remain- ing person. THESE AMOUNTS ABOVE ARE BASED UPON THE FOLLOWING INFORMATION: Your Date of Birth: 01/13/1962 Pension Hire Date: 01/31/1991 Date of Termination: 09/30/2012 Adjusted Hire Date: 11/01/1988 Avg Final Monthly Comp:$14,333.22 Years of Credited Service: 23 Beneficiary Name: Date of Birth: 00 /00 /0000 Page 2 Participant's Name: THOMAS R MURPHY Social Security #: 262 -83 -xxxx Accumulated Contributions:$162,402.19 After -Tax Contributions: $4,422.10 Pre -Tax Contributions:$157,980.09 Nontaxable Portion of Life Number of Months Nontaxable Annuity Monthly Benefit: $12.28 Portion Continues: 360 Nontaxable Portion of Join Number of Months Nontaxable Survivor Monthly Benefit: $.00 Portion Continues: 0 The Survivor Annuity benefit amounts shown above are based on the beneficiary named above and are payable only to this beneficiary. If you wish to change your beneficiary before your payments begin, new amounts will have to be calculated. BOARD OF TRUSTEES: By DATE: I accept the terms above, including my choice of annuity form, and confirm the information shown above to be correct. PARTICIPANT'S SIGNATURE: .I[ ./� lri/ / DATE : _ y /3 /Al2-- BENEFICIARY'S SIGNATURE: DATE: Calculation Date: C U M ° A N Y February 1, 2013 RE: Salem Trust 2013 Service Enhancements Salem Trust Company's commitment to be the best service provider in the region compels us to invest in new technology to align ourselves with our clients' evolving needs. One of our core principles directs us to "Change, when change is the right thing to do." I am excited to inform you about powerful service enhancements from Salem Trust for 2013, which we began planning last year, after a comprehensive systems review. Salem Trust has decided to move to a robust trust system provided by SunGard. Many of Salem Trust's employees already have experience with SunGard's systems, and believe its current technology will help us deliver more information and service for our clients. We are on track with our timeline to change by the end of May, 2013. Salem Trust is also committed to improved solutions that directly benefit plan retirees. We are pleased to announce that we are moving from benefit payments provided by a paper check system to a safer, more secure ACH direct deposit, or debit card issued by U.S. Bank for Salem Trust. Because an ACH direct deposit and debit card have different benefits, the retiree will be able to choose the one that is their best solution. We have attached a copy of the letter explaining the choices to plan participants currently receiving a check. A list of retirees who are affected by this change is also attached, if applicable. Retirees who do not select the ACH option by March 15, 2013, will be automatically enrolled in the debit card program. They will receive the debit card with the benefit payment for April 1, 2013, along with a reminder that the card will be credited thereafter with their monthly benefit payment. During February, 2013, your relationship manager will be contacting you with more information about these improvements. Our pledge is to provide frequent communication with you over the next few months. We are always proud to serve you in every way possible. Please contact any member of your client service team if you have any immediate questions. Regards, �G a `�}��a r� , Bradley K. Rinsem, President & Chief Executive Officer Attached: Letter to plan participants RE: ACH/new debit cards List of plan participants receiving letter, if applicable to your plan Frequently asked questions about the new debit cards DEERFIELD BEACII TAMPA I 1 i "l c• I l lt)itl 1301:11 A ,Ai 1 L, SI :I 11 750 e 1 :II'.1 11 , 607 a '11I t1377)' ' 1 AA (811)301-1 ,'kr,v r LI• ,'ri SALEM 1 KUS COMPANY IS SUBSID)ARY 01 U S I IDUCIAR SERVICES INC AN EMPLOYEE -OWNED COMPANY Barbara Ladue From: SalemTrustCompany [ SalemTrustCompany @salemtrust.com] Sent: Friday, February 01, 2013 3:12 PM To: Iadueb @bbpdpension.com Subject: Upcoming Service Enhancements Attachments: Boynton Beach Fire.pdf Attached is an important announcement regarding how we are serving your plan and its participants. Attached to this Email is a letter from Brad Rinsem, President and CEO of Salem Trust Company, introducing you to the significant enhancements we have been planning. You will also find a copy of a letter which our service team will be sending to participants in your plan who currently have elected not to receive their monthly benefit payment via ACH /direct deposit. We will be converting our paper check system on April 1, 2013. The letter explains the choices to the participant, and supplies them with the means to switch to ACH, or to understand the debit card option. We are including FAQs for the debit card to the participants, and have also included it here for your reference. If any of your retirees do not currently use ACH, a list has been provided for your benefit. The service team at Salem Trust will be m frequent contact with you during our projects. In the meantime, please do not hesitate to contact your relationship manager. 1 yY1 1—,1 C 0 \1 M A N Y February 4, 2013 RE: Direct deposit of your retirement plan benefits (please act by March 15, 2013) We are sending you this letter because you receive your monthly retirement benefit payment by a check delivered by the U.S. Postal Service. Beginning April 1, 2013, we will no longer issue checks for monthly benefits to be sent through the mail. We will be instead offering quicker and safer methods of receiving your monthly benefit payment. Because of superior safety and convenience, we are making a change from paper to paperless payment methods. Paperless payment systems are used by the largest benefit providers, including the U.S. Social Security Administration, which is scheduled to fully transition away from checks by May, 2013. Salem Trust provides benefit payment services for more than 250 municipal pension plans throughout Florida. One of our most important duties is ensuring that 6,000 plan retirees receive their monthly benefit payments, safely and on time. For more than 15 years, it has been proven to us that the safest and most reliable way to deliver these payments is by direct deposit (ACH). ACH, which stands for Automated Clearing House, is the electronic transfer of funds from bank to bank. The check you have been receiving, just like an ACH, is deposited directly into a checking, savings or investment account at a financial institution of your choice. There are important differences, however. The ACH is immediate and traceable. The check is sent through the mail. It takes days and can be untraceable. We strongly recommend that you take immediate action to switch to the ACH for receiving your next monthly benefit payment. It is simple to do. Please complete the enclosed ACH authorization form and send it to us along with a voided check or deposit slip for the account to which you wish to have your benefit payment sent. Send these documents to us in the enclosed return envelope. Or, if you would like, you may fax the ACH form and check or deposit slip to us at (813) 301 -1295. If for some reason, you are not able to switch to the ACI-I method of receiving your monthly benefit payment, please understand that on April 1, 2013, we will be offering debit cards as a method for receiving your monthly benefit payment. You can use this debit card to make purchases and receive cash back at some merchants, or obtain cash from an ATM. You can also check your current balance online, at an ATM, via an Email or text alert. We will automatically enroll you for the debit card if you do not elect to use the ACH /direct deposit method. Unless we receive the completed form and check or deposit slip by March 15, 2013, a debit card issued by U.S. Bank, and instructions on how to use it, will be sent to you at this address, in a plain envelope, addressed from Fargo, ND. Please contact your plan sponsor if you have further questions. Sincerely, The Salem Trust Client Services Team Attached: Salem Trust Company ACH Authorisation Agreement Form Return envelope Frequently asked questions about the new debit cards DEERFIELD BE>hCII TAMPA 171 N \V'1 101:1 1301:1 I 1' \I.1 ' — 50 a I' 1 \11'.1, 1160 8 11.1 (87 71 zS2 - 326S e 1 `-,A MI) 3+11 -1'93 r NI' CLIPIYItH4 con7 SALEM I RUS 1 COMPANY IS ? SUBSIDIARY d U S FIDUCIARY SER\'ICtS INC AN EMPLOYEE -OWNED COMPANY About AccelaPay — US Bank Debit Card Q. What is the AccelaPay Card? A The AccelaPay Card is a reloadable, prepaid debit card issued by U S Bank. The AccelaPay Card provides an electronic option for receiving your pay or other payments It is not a credit card, but works similarly to other debit cards Q. How does the AccelaPay Card work? A The card may be used to make purchases everywhere debit cards are accepted The card may be used to pay bills, and for online, phone and mail order purchases You can also withdraw cash at ATMs, banks or credit unions or by getting cash back with purchases at Interlink merchants The amounts of purchases, bill payments or cash withdrawals are automatically deducted from the available balance on the card Q. What are the advantages of having an AccelaPay Card? A • Fast — Your money is automatically deposited to your card account • Save Time — Easy and quick access to your funds without waiting in line to cash or deposit a check • Convenient — Withdraw cash at ATMs and make purchases anywhere debit cards are accepted, including retail stores, grocery stores, restaurants and pharmacies • Secure — No need to carry large amounts of cash • Save Money — No more check cashing fees • Track Spending — Account information and customer service 24 hours a day • Extensive Benefits — Enjoy the prestige and purchase protection given to Visa's /Master Card branded cardholders, without a credit check' • Reliable — Receive your money on time No more lost or stolen checks • Safe — Funds are protected by the Visa /MasterCard Zero Liability Policy are FDIC insured Q. How do 1 check my balance? A • Online — View account online at www.accelapay.com • Phone — Call the AccelaPay Customer Care Center at 866 - 363 -4134 • Text — Text shortcode to get your balance. (Log in to www.accelapay.com and click the "Alerts" tab to learn more) • Text/Email — Sign up to receive free email or text alerts when funds have been deposited to your account or when your balance gets low' (Log in to www.accelapay.com and click the "Alerts" tab to learn more) • Mobile Banking App — Download the app online in the !Tunes store or Google Play • ATM — Perform a balance inquiry at an ATM Getting the Card Q. When the card is sent in the mail, what does the envelope look like? A For security reasons, the card will arrive in a plain, white, window envelope with a Fargo, North Dakota (ND) return address Q. What information or instructions come with the card? A The card comes with • Instructions on how to activate the card and fee schedule • The cardholder agreement, which discloses terms and conditions • A usage guide detailing where and how the card can be used • The U S Bank Pnvacy Pledge Q. What do 1 do after I receive the card? A After receiving the card in the mail, you must call the Customer Care Center at 866- 363 -4134 to activate the card and choose your PIN You cannot use the card until it has been activated Be sure to sign your name on the back of your card in ink Your card is not valid unless it's signed Q. Do I receive a new card every time a payment is made? A No Future payments will be deposited automatically onto the initial card If the card is lost or stolen, call the Customer Care Center at 866- 363 -4134 to report it immediately and they will send a new one The remaining balance from the old card is transferred to the new card Future payments will be deposited to the new card Using the Card Q. How do 1 make a purchase with my card? A The card works much like other prepaid or debit cards You can use it online, over the phone, at grocery stores, retail stores, restaurants, medical offices, etc It is important to know your account balance before making purchases Q. When making a purchase, on the authorization machine, which selection (credit or debit) do 1 choose? A Select "Credit" to make a purchase only Select "Debit" to get 'cash back' with your purchase (You will have to enter your PIN ) Q. How can I get cash with my card? A • ATM Withdrawal' — at any ATM • Teller Withdrawal' — at any bank or credit union • Cash Back With Purchases — at participating merchants such as grocery or convenience stores Q. How do I withdraw cash at an ATM? A 1 - Insert or swipe your card and enter your 4 -digit PIN 2 - Select "Withdrawal from Checking" 3 - Enter the amount to be withdrawn Q. How do I get cash at a bank or credit union teller? A You must know your available balance (the teller will not have access to this information) and ask for a cash withdrawal in the amount you wish to withdraw Note you may need to provide your driver's license to verify your identity Q. How do I get cash back with a purchase? A. 1 - When the authorization machine asks for credit or debit, select 'debit' 2 - Enter the 4 -digit PIN 3 - Select 'Yes' for cash back 4 - Enter the amount, press 'OK' Q. Do I have to go to a U.S. Bank ATM or U.S. Bank branch to get cash? A No Cash can be obtained from any ATM or over the counter at any bank or credit union You can also get cash back on purchases made at merchants throughout the United States such as grocery and convenience stores Q. Do I need a PIN to use the card? A Yes & No The card can be used to make signature -based purchases without a PIN However, a PIN must be used for cash withdrawals at ATMs You must choose your own PIN by calling the Customer Care Center at 866- 363 -4134 after you receive your card For security reasons it is important that you pick a PIN that only you would know, and not share the PIN or the card with anyone Q. What should I do if I forget my PIN? A You must contact the Customer Care Center at 866- 363 -4134 Q. Can 1 still get cash if I forget my PIN? A Yes You can go to any bank or credit union and ask the teller for a cash withdrawal Q. How can I be notified when funds are deposited to my card? A You have the option of signing up for optional text or email alerts such as the addition of funds, low balance, zero /negative balance, and change of address online at www.accelapay.com Q. Can I pay bills with my card? A Yes You can use our online bill management service It includes a biller directory that helps you log onto your biliers' websites and complete payment information with just a few clicks After you log onto www.accelapay.com click the Pay Bills tab Q. Can I manage my account with my smart phone? A Yes You can use the AccelaPay Mobile Banking app to check your account balance or view your most recent transactions The app is available to download for free at www.accelapay.com, in the 'Tunes store or Google Play You can also get your balance or mini statement by texting us a shortcode (Log in to www.accelapay.com and click the "Alerts" tab to learn more) Limits Q. Can I make a purchase for more than the amount on my card? A If you need to make a purchase for more than the amount you have on your card, you will need to use two forms of payment Tell the cashier how much you want taken from the balance on your card — the cashier cannot determine your available balance Then, pay the remaining balance with cash, check, credit card or check card Q. Can I use my AccelaPay Card at the gas pump? A Yes However, if you use your card to pay at the pump, a maximum hold of $75 will be placed on your account to initiate your transaction This amount will be held until the actual transaction amount clears If you do not want funds held while waiting for the transaction to clear, please pay the cashier inside for your gasoline purchase Payments made inside clear for the actual transaction amount immediately Q. Can the AccelaPay Card be overdrawn? A Usually a purchase that exceeds the available balance will not be approved In very limited circumstances, if you do not sufficient funds when the final amount clears, it may result in a negative balance, however you will not be charged an overdraft fee, You can call the Customer Care Center or go to your account online to determine the balance remaining on your card Q. Can anyone else view or track my transactions? A No For privacy reasons, U S Bank does not share card account numbers or transaction details However, for reconciliation purposes, they do have access to the amount and date of each deposit Q. Will 1 earn interest on the funds in my AccelaPay Account? A No The account does not earn interest Q. How do I obtain information about fees for my AccelaPay Card? A Fees are located on the Fee Schedule sent to you with you card You may also call the Customer Care Center at 866- 363 -4134 to request fee information Customer Service Q. Can I view my account online? A Yes, at www.accelapay.com The following functions can be performed online • PIN Change • Balance inquiry • View card transactions • View previous statements for last 12 months Q. How do I view my monthly statement? A Monthly statements can be viewed online 24/7 at www.accelapay.com Paper statements may also be available You can make a request to start or stop paper statements anytime Q. What should I do if I change addresses? A Contact the AccelaPay Customer Care Center at 866- 363 -4134 to report an address change Also contact your employer to report an address change so that your mail may also be sent to the correct address Q. Who do I contact if I have questions about my card? A For questions about your pay, such as when you will receive the next deposit to the card, or the amount of a deposit to the card, contact your employer For all other questions about the card, you may contact the AccelaPay Customer Care Center 24 hours a day, toll -free at 866- 363 -4134 This number is on the back of the card Q. What happens if my card gets lost or stolen? A You must call the Customer Care Center at 866- 363 -4134 to report a lost or stolen card A new card will be issued and any remaining balance will be transferred to the new card You may not be responsible for any fraudulent activity that occurs on your card provided that you report the card missing in a timely manner, and have not shared your card or PIN number with anyone Q. Can I contact my local bank for customer service on my AccelaPay Card account? A No. You must direct all AccelaPay questions to the Customer Care Center at 866- 363 -4134, or utilize the web site, www.accelapay.com, for inquiries Q. What services does the AccelaPay 24 -hour Customer Care Center provide? A The following can be done through customer service • Activate the card • Choose /Change PIN (Personal Identification Number) • Balance inquiry • Review recent transaction history, including deposits • Report card lost or stolen and have it reissued • Speak to a live representative if additional assistance is needed Account Number Account Name Last Name First Name USST80103759 BOYNTON BEACH FIRE MITCHELL F. EDWARD USST80103759 BOYNTON BEACH FIRE ALLEN EDWARD K. USST80103759 BOYNTON BEACH FIRE SEIDER GREGG A USST80103759 BOYNTON BEACH FIRE HAGG WALTER J UssT 8 o 103759 BOYNTON BEACH FIRE SNOW MARK USST80103759 _ _ _ _ _ _.._ BOYNTON BEACH LOWERY JOHN D. USST 80103759 BOYNTON BEACH FIRE OXENDINE PHILIP D. USST80103759 BOYNTON BEACH FIRE KIGHT LUDDY G. uloounui00000u1Lnun r-- MN.L/11.0N.MOMMWOHNJW •IOMNOIMr1Nmoisp 00N00NN1OMt11 4- • } r- IOIN.HrIN.O1r1 L1OIOu1Ntor41�ON4HLO lN. • ulNU1v1pN. Nput 0.r-0 Nr- IOOOOL/1I0uICONMO1Olu 'NC0rI u101r-Im1∎N ni-1 -IN f- O)•r MNl00r' Iul0MO101N00r -Iul0mu r1OOmN01d•Md• H N1-- NNu• 1lON .I.NefN HulOwnMHlflr'IOO't 0 W N MHNHd•NH r-I NHHHHNIHHMUl NHNHHNNNd'N W N U \ < O r C O1Olr�Md NUltO lG O 1lOd lO ul� m1�0 \ t-i- moOulMMU100MO1r- IONOulONU1Hu1MN00d •rl1-I,err-IOr-Iu10Ou1OH NI 4- O d•01N 00MHWN1- 1 WOIHC0 uIl0MCOd ' WMulHd'r- IOOM I�d•LncONN UI O O) IOOMHmHHI Nm00I�OO100101..00NMmr. .erm OWo0N O CL d•tOHN rm Lio0m1nd• u100 F 4--MI m.cr NJ O'T'NHM d'MMMNd•MMIOOetd•MU1MM ' ul d'Ol - N H ° C fl << Q O Q <.< Q Q m <<< Q Q 0<0 H W 0 m M H 1 I I it 1 11 1 1 1 ii 1 1 1 MmNrlMmHmHNJrn N MMmHNNMmHNNmmM a. 0 OH 4 O. 0 d W LD V1 n H >, W 0 Z 0 Q0 vCL 0 0 0 HZ OI NH H _ LrL H J V) U HO Z m f- V) W LI- 0) JJZZ J }ZWEWO Jn m >z .tcm HZ 3H W tom W< OW f- Z C Z wow W W Q UUvm w f- W W J >• W J m Y 2 0 0) ZQ MO MO m2 >00 0'OH 0JJ00 U2JW l7 H m W M m W 0. <O W WQ : Z Wx l < 7� U OZ Q 1- Z ZWH .-II- f- •QQO MOUc UZMQU ZQ 4- _J _J CC H Q 0 H W H2E H 04( C) N } < H Q W Q U W f- 0 QQ 2U UUZ <1-00 �L d Q <<H< 0} 0 (n H W t Q a ' 0 0) •2 ZIWO Z }V)l7ZHQCCZ H Z }W ZJ 2200 oC20 VI E V)3 Z U)f - W Q cc Z F- 2r d' Q re g3J Q 1-a c Q1-Z Ct!Z ms W< OHQCC OQJ W m2QQ} = HQQQH HQQQ JQQ W 0 Z SO WQCLLL nC7Qn•m000LJ 0 wxmon OYUU UYV) H l7 Z H W >, LLD. 4- W •r H O •r"O LL W .0 O W M U 21- 1n U= •r QC7 0 W H CO LL W Z Ct: 4---... :1'M01oomood'Ol d•Nd MH01Noocc 0000000 O H O W.0 a 1 Homom00d 1 00 1 0 1 000 1 0d1000000HO00Q10Ucylp1Hm Z LL 0)•r In r Ir 1c 1Hr- Ir- 1r• I1 i 1r- 1r • Ir- 1r 1r - Ir 1r ir ir 1HHc Ir Ir IIr 1 >• 4- 0000000000000000000000000000000000 0 cO 0) O \\\\\\\\\\\\\\\\\\\\\\\\.\\\\\\\\........., m OW NHuIHOHlONWW1-1H uDNNI 0000x• I000000r - 400H000000H0000H0H000r70 LL 0 4- O s 7 M Q H Q H J • H O2 <0 W _10 2 Z J H H W 0 Z W H W > W J H MOH Z Z 3 m J J Dom J2E }f -WJH> f-W23 H - W iJ CC X O J J Q m CC f- } 3 Q Z W In 1- -W Z W J } Q Z} 3 W Z V) Z W V) O J W Q Z} to Q } C L W H n m W V) Q ^O Q W O Z Z m Q CC 0 0 W H W W W W -Q Z 2 0 0 L. •r 0WZZ -7 - WO Q 000Q uJ L7WJ0QJQWZ2H� 0 V) U W 0<7Z ^CC -J } O �o3W0ZX - c00Zl- 03 -2 ZH<r 0 J 0) - Z ^WWQW - -UHJ0} -WHV)Q W -fm < -W - M W 2E W Jc7003 W0LUUcol7C7HZ WHLLul2 Z M J J Z W H O O W Q Q Q W W W W O O} m 2( J Q Q� Q Q W W 2 1 1 W W H J QQQCOm LL�7L7L72222nYY I. I- I- u NNM( 00 u 1 Nd' OOM1OHuimf .O1000,1.OmN00000 1- momui d '1OmHm,N lnd v nN. n - I1.00r. mv- tLrImr- -010HMOc0 >, ZNH1.0 ,O1OHulN0r-0N N 1OHN0 0rn0 1-.4- Wcn1000 N. 4- 0HONNI HOIOOMO INUINHOO .,-.L.0 W U OE W O 03 H V) O) Z 1- V) W W Ln LnulLn LnLn0Ln0LnLn0 b N � L.ONU1Nd "L01�d'd'ry�i+'+000v+�unulunvI�r+ t L O00000000LS+ • r-IW nd , tmOWnl - WWOIN000ONtorn • 4- OOOOu'1NMcrNOQONr1�0 • NI� I�tnM00Nr-lOMd•LOr•Ir-I • I„plO O r V) I � I � I � f � NIOOlfl � 00a1d11 � rI �rII�ONIOMOIOd 10011 lOG1rl 0)•r 00 r-I r-i 00 M0001�T-I N t!'11f1M0• .•t- IMVINO<'IONMd•tf1N- I MM110 N M 0) d' I�Od' OIOMtn Lin M tin tON. LOCO _ 00 u1 d• rl r-I NNMM rirlNrl mNr " l Nr-1rlrl1--INNMrINNN r1 I 0 W N O \ < 1-1 >,C m unr -lu O1LfNLn0001N.000N10r-C•,N. mNHmmmt00'O�NLnd'NQI C 0 r-O 1�0r10.4'0001LnO10 MUOtOtntnd''""I. • L0�N�lOa1 0d MmN000u1u1d•rIM \ ..C.1- • • • • • • • • • • N •Fl M uld'd• uld'm0N00N 0000u1N0MUlr-Id•• •L770N0000MOOd•NNo0Nmoom O cc I�MMI�l01�O�NLnrlrlf�OulNl�Od '1"I00NU11000x--ILnmOunNr- INI-IN O U Old•0010m'Gr- I0LOr- Imd-N'OOOON-M0 - m000mNNd•tOo000t.oH 1 I- Nr -Id•d WN.. MMd•mr- IHNulMUIMMMN , ��M��d'N Mr IM MM N 0 aa-+ 0 0 0 m 0 Q m Q U m m <(<0 O Q Q 0 m Q N CO. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 - )0 rIr-INNNMMMMMmr-IHNmMmmmr -I MMMN- Hmir•Id•d'd'mNMM 0 0 • O N H ce 0 3H - H >, r H0 J Z 3 v L 1 - N Q W H Z - w Ct al d•} HW 3 W D wz z CL NU W }w W Q• 0W 0 vv • 0 u r,w w Z mZ X Q 00 0 D- W •r 03 Z -00 ZQ HZHW>.W 20 0 N d' 4- <0 <0Z F- \ N W Q W 0 0 V) Z QQ W Q WI C C 0) Z 0JW(DZH NZ WZE >ZV)W }ccEm W < w z c O OH QH H F - HQZZ30WCC-1<CNC • 2 N0 • O 0) 2E Crp 0 YC W X QW XW YJOQQ 2E W U CCH H m Q0H000J< L7oCJ ZW0 m Z H Q W N W Q J <H E 0 < Z H W W H d' W N ZQ LL- J2 Z2 E W2 QH •HWQO_ZQW 1 2 ZW V) U.1 f-.. O HC} W Z 2 Ce UCce JC }ZH W HO Q Z M.< Z J H J W H} 0 U Z Q H W W W • J Z Z Z w W 1- 2 H W 0 0) JHH CCCe Ce Z <MCe 2 a N E c 2D HCX2D ce Q Q v)aF - InF - U 0 maNQLL 03 2E -J a -3 WO z xoanoa .JL m l=nma Jxg g C0ce n 3m WO < a-J 1-H 2 V) H L U Uz >, LLD_ a••) w •r C' - r0) H O •r"O LL c e M O W rd U 2F- N U S •r <0 O W H m LL W Z W 4 • r!u1tHLnd•d mr• InO1LONulNmNr100OLO00d• r1d'ulr•1ul00L000r - 1LO OH O WM 000000MOMOMOW000r10 10010100001r10010000r101000 Z LL 0)•r Lof) rHHHHHrHr \\\.\\.\\.\\\\\\\\\\\\.\\\\\\\\\\\\\\\\ • HHr• lHr lHr• llHrr• IHr• 1HI IHr •1HHrHHHHHtIr•Ir•IT --I } I'1 -+•1- 00000000000000000000000000000000000 0 rd 0) O \\\\ \ \ \ \ \ \ \ ■\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \\ m OW 000 4 0 1- 1-00d'mNN.N.00m00r NN' 1Ns •0LnN0Hr NmNd•NLn r- I00r10000000000Hr 40000000r-I00H00000000 LL O 4 > - O }J N >- U Q Z N W ce H 0 CL QN J } SHC'J3 F-2 M < mOC 0< NJZ J X 1-J0Q W3 wF- < n 0Q Z=-1W2 <( H H F- Z WH W - W W W Ln n p - a 3F-l7 +' <QI-00 ZZDYZ3 •0 ZwZI0 1- ce Zmm< -} •Q - 0 cc L) V) JH Q 3 H 200J2 - LLXV)QJZC -W pHJQX •OWJZWWW L Q W C p c 0 0 X 0 H O J -H W W J W -Z X Q Z> H N 0 l J N O O -Mice •1- -Y - -H n F - - n J J F- X p Q Y W O H f Q w L 7 H 2 n J Z N Y O l7 0) W - I - -0> w J -Z - -Q - - -Z N N J - -Y - I - - -0U a - I - • C C Z W Q} W Q Z Z Z W Z n J Z} H Q W W} - 1,5 W Z Z Z Z CL O - E - 20 HHZSQ - SSW JQm0 Z Z - NWWWWQ CCN w Z V) ce x O 3 upcece 0 Ui-ce L N /) 33WWI- 0 0 0H22 H OOOOUF - QH p rd H Z Q W H H O Q Q Q Q U H O W W W> X Q H J O W W S X 2 2 H O W W J YY JJJJJ MEZE7EXZZZOOCC ' W ceOCC'OGCCOCC'OCNN MOLO4O t. u ld' LOr101rnHmct00000NNI .L000r1u1N0100d•■riOd'Olrl r-ld•4•4'010d HOW.tmOOOc4wW INNo00LnOLOrlmNm >, u1001. NNL/ ld' d•r ld• 0O0o0NU 11. o001LO1 -1's0d•d'0m0OLO000mu- sHO1d• r4• L uld'd•LOLnOMrILnrnO1N1.d-00t- ION- ri01LOr1000Oct0Oml000r- lu1001L0 1 1-0) •r L-0 U 3 E O u 3 V) 0)Z 0 000 1lln ul 0 0 0 0 +n u1 III O 111 _ • 0) - u1r10't 00N. 00 N N vrOIN01u101N1O 0 MO . 4-i> 0 - LOOl0l0 H • • 0101 • Lin • OIOONinlflMOil O•r ul 0Ln NO0tDu1 0 (V00 m 0 Ln Md•I.NONI I.u1 0 00 I- W.1- Out 0HmN 0 Nd• N d• 0 Ln0d•rNu1H0 Ln M N u1 M M w1- NO N.n0M u1 u1M - CO - WWP4 0NO1Nd' - - H ce H m N rI N M M 1-I N W H IO H H fV 0 M 0 0 H o0 0 ul W N Q H >,C 0Nto010101001d H Ln 0001Ln00000u1M H a 0 r0 01000NrINNO0mN0001 0 0ONu1r-IMNOrl • =4- N 4- HOd•ulI0mH0O01 H NM u1r100 h0 0 cc 0HM00MNu100001d•01 00 0001d•.4 - 0mH l/) o ) dtHd•Lrl0N-Id fV MNd Mu101d•00 Z F. MID(VU1md•ION1.- md' M HHNr1 HNd W N 0 0 J1 +J <M< < CI <<M0 N < 1- << <M0<< O Q a N C Cl. 1 1 1 1 1 1 1 1 1 E 1 r - 11 1 1 1 1 1 \ wo mMmNm( n'1 -mNI 0) M •r d'MHmd•Mm( Z H a L -0 - 0 0 •r sO +- H \ +.+ V) M N 0 • F 0 0 O Li. H l7 Z H X F- H L H Y N I 0 • 1- W N H J 00 V) a U LL 0 > - E � H Z 3 Z Q UH W Z I 0 0) V1 O � L a z 3 0 o m XXL Z ~ J O 07 w w d Q p w L 1 1 % w Q I > Z Z to v JZQ 2C7 0Q a' w H E >-QZ I WZ < 0 2 wo Z Un< U2 Y 0 v 0 Z MO 0 W Z H W >, In LLa 4•+ w W •r W H - 1-0) ›- H N •r•13 0 LLw MO 0 a 11- ut J E U2 •r w <0 0 W H 0 0O LL W W re Z 0C 4 • IOl0d'NHOOIOId'l'400 N. H O H O WM O1001000vHO00010 0 I- I- LL L M \ \ \ \ \ \ \ \ \ \ \ \ ■ W Z OJ•r V) - r•I rl a' > - 4- +4-+•r 00000000 0 0 ( WO \\\.\-\\\\-- \ L- OO OW vlNNNd•00m01N. H 0 0rI0000000U0O H a c4 0 4- W 0-C 00 J 4•J J H >- < U H Qre w Z O O W zW U ELL < Q }zZz zcC O LL O 2 S W 0 H H >• Y U } o Z U J Lu x +J 2OCCU L/)JI-- p - • aWc H J>- WH ^ V1 V) FW <1-1 - OZ ZQ OC OOWJQZQ3 L - C73E w c < :ozo •r Y R Y -0 - ce z00 - - Q g J a' U v)z2 LL 0J U ZW O <O m m HJW U J (-)0<0 -OQU HO ^Z a' a' - E - 300-1 - C7 }ZHHH W }2ZHW =QH r E0J3CCZUW Y 0 LLFHZ Z v) WE(/)000 } <JUUN Z LLM1-zeew )n • 2 L/1v - » >3 < oYwxmcc 13 m001ON- 00mIDN -I1Od' 01 }M000r 0100 0Nvl00u100I000N.H0d• d• vl00lOd•OulN01 >, d N 0(OHN-rn - OHM 1- tr 00 <00IOu1LDLDI000N r4-1c- Nu100001N-000000d' lID H0 HN-N.0100Ln01N01 c0.1-CU -1 (•) .1-S-..0 H H U 7 E m LL O UO < W v) w Z N Z 1/) H W 0 m fr 1). litt, Barbara Ladue 4:444—'"-- 9 From: Adam Levinson [adam@robertdklausner.com] Sent: Tuesday, February 05, 2013 11 AM To: Barbara Ladue; 'Henderson, Luke' Subject: RE: Boynton Fire Pension Qtry Meeting of 2 -13 -2013 - Agenda Barbara, Please add to the agenda under the attorney's report: Status /ratification of suit against Dell Inc. regarding management sponsored leveraged buyout "MBO" at $13.65 per share I will circulate a memo, draft complaint and retainer agreement with Bernstein Litowitz prior to the meeting. If you are curious, take a look at today's Wall Street Journal which describes the proposed MBO: http: / /online.wsj.com/ article/ SB10001424127887324900204578285582125381660 .html ?mod =WSJ hop LEFTTopStorie s Thanks, Adam Levinson Klausner, Kaufman, Jensen & Levinson 10059 N W 1st Court Plantation, FL 33324 ph (954) 916 -1202 fax (954) 916 -1232 Website www.robertdklausner.com RN Kt :d,l " N\i kt , \ „.„,.:,: .,,,,„,, si Disclaimer This e -mail is intended only for the individual(s) or entity(s) named within the message. This e -mail might contain legally privileged and confidential information. If you properly received this e-mail as a client or retained expert, please hold it in confidence to protect the attorney - client or work product privileges. Should the intended recipient forward or disclose this message to another person or party, that action could constitute a waiver of the attorney - client privilege. If the reader of this message is not the intended recipient, or the agent responsible to deliver it to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this communication is prohibited by the sender and to do so might constitute a violation of the Electronic Communications Privacy Act, 18 U.S.C. section 2510 -2521. If this communication was received in error we apologize for the intrusion. Please notify us by reply e-mail and delete the original message. Nothing in this e -mail message shall, in and of itself, create an attorney - client relationship with the sender. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. From: Barbara Ladue [ mailto :ladueb(abbpdpension.com) Sent: Tuesday, February 05, 2013 8:32 AM To: 'Henderson, Luke'; 'Raybuck, Jon'; 'Petty, Matthew'; 'Robert Taylor'; 'Ginger'; Adam Levinson; 'Dave West'; 'Richard Cristini'; 'Jeanine Bittinger'; Pete.Strong(agabrielroeder.com; Travis. Robinson 'Pyle, Judith'; 'Caruso, Ellie'; 'Cherry- Guberman, Catherine'; iohnt@thogdahngroup.com Subject: Boynton Fire Pension Qtry Meeting of 2 -13 -2013 - Agenda 1 Barbara Ladue From: Billy Williams [billy @STW.COM] Sent: Monday, December 17, 2012 10:25 AM To: Ladueb @bbpdpension.com Subject: STW to be Acquired by Schroders Attachments: Press Release.pdf We have some news here at STW. I will be in touch with all clients shortly but wanted you to hear it directly from me first. STW has entered into an agreement to be acquired by Schroder US Holdings Inc. ( "Schroders "). We have heard the concerns about succession and know first -hand the large and growing challenges of a boutique firm today. We have been determined in our efforts to partner with a firm that values clients the same way we have for over three decades and have found that partner in Schroders. STW's clients will represent a major part of their investment -grade US fixed income management. Critical to this transaction is that the other investment team members and I will continue managing your bonds the same way we have been though with the benefit of some additional resources available through Schroders. We all plan to remain in Carpinteria through the summer of 2013 with the investment team then moving to Schroders' US headquarters in New York. Many operational functions will continue for a time in California. You have my word that I believe, all things considered, this is the best decision for our clients and for STW. Otherwise I would not have done it. I look forward to discussing STW's road ahead with you and answering your questions and am always available on cell at (805) 452 -5496. Attached is the Schroders' press release. Best regards, Billy William H. Williams Principal and CIO STW Fixed Income Management Office: (805) 745 -2400 Cell: (805) 452 -5496 www.stw.com IRS Circular 230 Disclaimer To ensure compliance with IRS Circular 230, any tax advice provided in this communication (including any attachments) is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (o) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein This electronic mail message and any attachments transmitted with it contain confidential information intended only for the named addressee If you are not the intended recipient or the person responsible for delivering this e-mail to the intended recipient, you are hereby notified that any use, distribution, copying or disclosure of this communication is strictly prohibited. If you have received this e-mail in error, please immediately notify the sender by reply e-mail, and delete all copies of this communication from your computer and network Thank you 1 Schroders plc ta-t 31 Gresham Street, London EC2V 7QA Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965 wwwv schroders corn Schroders to acquire STW Fixed Income Management 17 December 2012 Schroders plc (Schroders) announces that it has reached agreement for its subsidiary Schroder U.S. Holdings Inc. to acquire 100 per cent. of the share capital of STW Fixed Income Management LLC (STW), a value - orientated, US investment -grade fixed income manager. As at 30 September 2012 STW manages approximately US$11.9 billion on behalf of more than 100 institutional clients and has delivered top quartile performance across a broad range of fixed income strategies. Michael Dobson, Chief Executive of Schroders said, 'STW's long -term investment approach and its strong performance track record are an excellent fit with Schroders. This acquisition increases our assets under management in US fixed income by 50 per cent. to US$35 billion, broadens our product and service platform in fixed income and extends our institutional client base in the US.' William H. Williams, founder, CEO and CIO of STW said, 'We have been determined in our efforts to partner with a firm that values clients the same way as STW has for over three decades. I believe that this transaction is the best decision for STW clients and employees. I look forward to the continued success of the combined business in the years ahead.' The transaction is expected to be completed in the first quarter of 2013. For further information, please contact: Schroders plc Karl Dasher - Head of Fixed Income +44 (0) 207 658 2581 karl dasher(d schroders.com Emma Holden - Head of Corporate Communications +44 (0) 207 658 2329 emma.holden(dschroders com Schroders plc 1 Registered office at above address Reg 3909886 England For your security, communications may be taped or monitored Schroders plc 44, r 3 Sc, roders 1 Gresham Street, London EC2V 7QA Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965 www schroders com Notes to Editors: Schroders plc Schroders is the UK's largest listed asset management company with £202.8 billion under management as at 30 September 2012. We manage funds on behalf of institutional and retail investors, financial institutions and high net worth clients from around the world, invested in a broad range of asset classes across equities, fixed income, multi -asset and alternatives. Post this acquisition, total fixed income assets under management will be £50 billion. We employ 3,000 talented people worldwide operating from 33 offices in 26 different countries across Europe, the Americas, Asia and the Middle East, close to the markets in which we invest and close to our clients. Schroders has developed under stable ownership for over 200 years and long -term thinking govems our approach to investing, building client relationships and growing our business. Further information about Schroders can be found at www.schroders corn or on Schroders Talking Point http / /talkmgpoint brighttalk com/ For US investors, information can be found at www schroders.comius or on Schroders US Talking Point at http / www.schroders.com/tp-us/homei. For regular updates by e-mail please register online at www.schroders.com for our alerting service. STW STW Fixed Income Management LLC is a specialty fixed income manager founded in 1985, that provides custom solutions to meet the needs of a diverse client base. The firm manages portfolios across the duration spectrum for both taxable and tax - exempt investors. Assets under management are US$11 9 billion as of 30 September 2012. Further information on STW can be found at www stw corn. Schroders plc 2 Registered office at above address Reg 3909886 England For your security, communications may be taped or monitored STW Iti FIXED INCOME MANAGEMENT O i s; o 1,5 January 11, 2013 Ms. Barbara La Due Pension Administrator City of Boynton Beach Municipal Firefighters' Pension Trust 1500 Gateway Boulevard Renaissance Executive Suites Suite #220 Boynton Beach, FL 33426 cc Mr. David West, CFA, The Bogdahn Group, LLC (via email) Re Acquisition of STW Fixed Income Management LLC ( "STW ") by Schroder US Holdings Inc. ( "Schroders ") Dear Barb: We are writing to inform you that Schroders has entered into an agreement to acquire 100% of STW from Williams Holdings, LLC (the "Acquisition "), pursuant to a Purchase Agreement dated as of December 17, 2012. Williams Holdings, LLC was formed as a holding company for STW in connection with the Acquisition and is 100% owned, controlled and managed by our founder William H. Williams. After the consummation of the Acquisition, STW will become a wholly owned subsidiary of Schroders. Under the Investment Advisers Act of 1940, as amended, the Acquisition is a deemed assignment of the investment advisory agreement that you have entered into with STW (the "Investment Advisory Agreement "). The assignment of the Investment Advisory Agreement requires your consent. Accordingly, we are requesting your consent to the assignment of the Investment Advisory Agreement resulting from the Acquisition in order to allow STW to continue providing services to you following the consummation of the Acquisition. The portfolios currently managed by STW on your behalf are listed in Attachment A. It is expected that the investment professionals that currently manage your portfolios and provide investment advisory services to you will continue to manage your portfolios and provide services to you. It is also anticipated that STW will utilize certain resources of Schroder Investment Management North America Inc., a subsidiary of Schroders that is a registered investment adviser ( "SIMNA "), to provide investment advisory services to you in accordance with your Investment Advisory Agreement. The Acquisition will not result in any other substantive changes to the terms of the Investment Advisory Agreement under which STW currently manages your assets, including fee rates. After the closing of the Acquisition, it is anticipated that we will begin a process of integrating STW's business into Schroders' US business. During this period, in order to facilitate this integration, it is expected that STW will assign your Investment Advisory Agreement to SIMNA. This assignment will not require a further consent from you, and also will not result in any substantive changes to the terms of the Investment Advisory Agreement under which your assets are managed, including fee rates. 6185 Carpinteria Avenue ® Carpinteria, California 93013 PH (805) 745 -2400 0 FAX• (805) 745 -2401 stw @stw com • www.stw com STW We see the Acquisition as a positive development for STW and our clients. Schroders is part of a global asset management firm that shares our commitment to a strong investment culture and client service excellence. We believe that the Acquisition will provide our employees with a strong resource from which to continue to serve clients. A copy of SIMNA's Form ADV Part 2 is available upon request and can be located at www.advisennfo.sec.gov. To indicate your consent to the matters set forth above, please countersign this letter below and return it to us at your earliest convenience via email at erin@stw.com or via fax at (805) 745 -2401. We also ask that you mail a copy of the original signed letter m the enclosed, self - addressed envelope by FedEx to my attention at STW Fixed Income Management LLC, 6185 Carpinteria Avenue, Carpinteria, CA 93013 for our records. We would appreciate your making every effort to return the executed letter by February 1, 2013. Please let me know if you do not expect to be able to deliver an executed consent by that date. If (a) you do not notify us in writing by the close of business on March 8, 2013 that you either (i) object to the assignment of your Investment Advisory Agreement resulting from the Acquisition, or (n) are electing to terminate the Investment Advisory Agreement without penalty as of the closing of the Acquisition, and (b) you accept advisory services from STW following March 8, 2013, you will be deemed to have consented to such assignment. Unless you and we agree otherwise, none of the other terms of your Investment Advisory Agreement, including your termination rights, will be affected by either your affirmative or negative consent. We would be happy to discuss any questions you may have regarding this letter, including with respect to Schroders and its role following the completion of the Acquisition. We also are happy to furnish any other mformation that may be helpful for you to make your consent decision. Please contact me by email at enn@stw.com or by phone at (805) 745 -2400 if you have any questions or need any additional information. Sincerely, Erin K. Chrislock Pnncipal, Chief Compliance Officer and General Counsel We hereby consent to the assignment of our Investment Advisory Agreement as descnbed in this letter. By signing below, the signatory represents that he or she is authorized to sign on behalf of the designated entity. Board of Trustees of the Ci of Boynton Beach Municipal Firefighter's Pension Trust Fund By ' +r� �,_ Name: / w�/ Title: C -� 4/ e#i AJ STW Attachment A City of Boynton Beach Municipal Firefighters' Pension Trust Fund City of Boynton Beach Municipal Firefighters' Pension Trust Fund - TIPS (0 E 1 di C a, C C1 E t >,- d o o O U (n f II 0 0 0 t o E O v U m £ C N. r? M f tO O .-1 O C O u c w y6 ti ti rn N N (0 L('1 t w O U - O y} C s u _ O N w r E ° 3 a cn f0Q o o d m O O vl � Q1 IL — M ,, n .3 • ••• m a co in C u w w V) Q V L to 0 (0 — W _ N N tO CO 7 w! N N 0 O 7 IT' (0 C J l0 M co In .--1 C al +' N C T-6 w n H N co 0 co t0 7 N O y > w w - O) K M N .--1 .-1 r1 T-1 .-( .-1 C O X O m C Cr ? d ' Efl 69- 69 H} 69 - 69 - +}} 46/1- m .Cn A ' E v c C o C i F < v C w 0 c ro a N CU m O CO Z N (%I N z .� N (0 v c O V V i . w C L �+ ° y O D — O $ ._ v E S � O H a j m rO .' w W ce Cl o >, w ,. 0 U O ' O O a1 A W � O � � 3 to .5 t• U 1A � �, U (0 (0 N C (0 ` - m o n O M r. n O C C 0 a c �m>- ti .. m C VI 0 VI a ti o �' 55 o Lr3 z a L 2 O o u 41 w E 0 u ._ w v w • H ° c fo N 0( 0 1_ 'I' OL N w C 5 - m $ o vi W C C 01 y p m N o o o Q 3 ^ c c u c Ct) c u . E c on o w ..o v VI Q V1 o w t j- O s w 4 — c ° C7 i c Do (0,73 0' 'O > C C l0 = C ° v .. C 0 a - w C d O p O w o o 0 0 /�� H '° O O O c cu 5 r o c f ° t0 O o 0 0 0 Q t w .0 0 O (0 C L N . w Q M V' h OD 10 C W o -.5 - p ' E O! o O M N N ,.- 3 C E w Ip C row ,0 N .--1 c0 n m (i a } i .- m o • E o. '5 a "I) w 1: 2' L w e 1- n3 H a i- E O t w d .e. W a u o o \ \ wN =.. 0 O w ° q 0 0 0 0 0 0 o U n CI) S i n ° U w .O og .1 L 0 0 0 0 0 ( °� 0 M O 2 0 3u. > M M .--1 111 rn 0 (0 1n 0 .. ■ c o o N M O . -1 M N .-1 l0 3 0 M } ` 'En c v "' ,-.1 L() L!1 Ln t0 C O 0 w p a . \J! N r0 O' w w w 1. s 3 Z O O } w yOOo IL Fo L C M no4 . . F Z .. O O > LL m a) W n cif .F./ (!) t (0 (0 (0 w 0 > > >- >- c_ u v Z..(0 4.1 5 a .-1 M u , ,-1 In .-. D O a a �, ? p- ' C o c'n 0 W T cmminp °` 0 cn f l wavE IY i O O O 0 rn u '� O J' E> 0 •� w w U l 6 v o •±.,- 5L.o [f N • I� o N a o O w @ w 'o Ce O o o E o N _ � L!1 (+1 U p >. w D c a M o a) O O .L C N 10 C 0 10 oi /�� N N M 1-1 0 N 00 - . C a 3 a° rn V/ J-1 iA U} N 0 .-a CO L(( .-4 V j .- .f0 "0 - C e 3 w 0- rn c L - (n a-. 0 0 O) 2 -4S a c ow 'a V 0 N w (o U 0 a w w a Q ,_ O O_' d J w • O N ,-�, p // ice � � J , . H - • (0 O 0 N w u' ` o ■V .,.. K _ C t 0 C 2,.., a m v u V) C W W(0 w (0 '10 a_ t 4-, 0 V) > V - w C ?� m.. � w 0 0 J v E 0 0 C o N C Oo /1� V 0 W (0 > w w W (3 O C (0 E w m N' .. > > a w C O) .0 N N N d a ✓ 6 N ' ' 1 C C C O L a Q° Q N vw w in v o o O m m °��a - 111 01 � C O C J _ M o w C I �' Q O N CO p (n (0 (0 z a a 2 u' O _ a° ° w 0 s c L LL a i Qm m (V 0 > L J H w .-1 > w' ° 0) > (n u E E O c ' .c 0 1- a ` , E w w (0 p V 7 0 o "' 1- O z -O 1- a L °1 0' CY 0 z_1 U o_ O Z Z cc 0 o YL v Q Cf" . ~ n,,_' >c° ASB Allegiance Real Estate Fund Fourth Quarter 2012 Market Commentary Dear Friends and Clients: I am pleased to report that the ASB Allegiance Real Estate This quarter, the Fund generated portfolio income of $21.5 Fund achieved a gross quarterly return of 2.63 %, million, and for the four trailing quarters in 2012, total consisting of 1.03% in income and 1.59% in appreciation'. portfolio income registered $92 million equating to a total For calendar year 2012, the Fund registered a total return income return of 5.1% for calendar year 2012. Year -over- of 12.46 %. While the return results for the broader NFI- year same -store net operating income growth registered ODCE index have yet to be published, the latest available 11% for 2012 due to income gains in the urban office data indicates that the Allegiance Fund's performance portfolio driven by assets such as Two Financial Center in ranks in the top quartile among NFI -ODCE index funds for Boston and 455 Mass Avenue in Washington, D.C., where all relevant time periods. rent commencements came online from prior robust leasing activity. Portfolio income growth was also ,*° significantly aided by continued strength in the Fund's F multifamily portfolio. In Boston, where the Fund's ' residential income growth was largest, fourth quarter rents `'_ were 6.5% higher year- over -year. Due to the impact of iiii. operating leverage, these rent increases had an outsized _ t R �* impact on NOI. Despite moderating from double -digit � � levels in 2011, multi - family rent growth remained well • . a above inflation throughout the portfolio. Looking ahead to -, ' I i .2 2013, as multifamily fundamentals begin to soften, we j expect rent growth to be strongest in high street retail .. ‘i 0 - F ` ::....A.._„'' " "'�� - t" ! E corridors catering to consumers with ample disposable aal income followed by urban office assets located in 0 = ..: Ali- t 11 submarkets with the greatest job growth. Healthy income growth among the Allegiance Fund's urban =, assets has also helped fuel $32.2 million of appreciation gains in the fourth quarter, a theme seen consistently throughout the year. In addition to strong income - driven 72 Greene Street, SoHo, New York City Gross Return, Fourth Quarter 2.63% 4Q12 Returns Gross Return, One Year 12.46% Net Asset Value: Gross Return, Three Years 16.78% $2.14 Billion Gross Return, Inception to Date 7.79% AS B The sum of income and appreciation returns may not equal total return due to the compounding of individual component returns with each other. rill All performance is presented gross of investment fees through 12/31/12. Past performance is not necessarily indicative of future REAL ESTATE INVESTMENTS results. The advisory fees and any other expenses the Fund may incur in the management of its investment advisory account will reduce client returns. ASB Allegiance Real Estate Fund 1 4Q12 Market Commentary I P. 2 appreciation performance among Boston residential acquisitions in New York, Minneapolis, and Chicago. assets, the Fund's Dallas investment, the Infomart, also Overall in 2012, the Fund made eight investments totaling saw appreciation gains in recognition of fervent investor $500 million. All new investments have compelling interest in assets with unique competitive advantages that competitive advantages and are located in six of our drive tenant demand. At 94 %, the Infomart's occupancy target urban markets characterized by superior outperforms the broader market by more than ten fundamentals, a testament to the Fund's strong percentage points. In addition, at its current valuation, investment discipline. the asset generates an accretive income return to the Allegiance Fund's portfolio and also presents meaningful This quarter, the Fund called $167 million from a total of future upside. With a nine -year weighted average lease 17 new investors and nine existing investors. In calendar expiration schedule and a credit tenant rent roll, the year 2012, the Fund called a total of $485 million out of a Infomart is consistently ranked year after year by the total $650 million in commitments. The Fund has portfolio management team as one or the portfolio's top competed with great success in numerous recent assets. searches, in some cases being the top choice from a crowded field of over 20 competitors. We are Another notable performer this quarter was 200 Powell, tremendously proud of the track record of outstanding the Fund's urban retail asset located in the Union Square investment performance that we have built over the past submarket of San Francisco which appreciated 8.2% in ten years and fortunate to have the opportunity to forge 2012. Although the overall impact to returns was modest new relationships and strengthen old ones. We greatly given the asset's size, we are committed to making look forward to the opportunities that that we will pursue investments in this product type. In the fourth quarter, on behalf of our investors in 2013 and beyond. the Fund made two high street retail acquisitions totaling $140mm: 72 Greene Street and 875 Washington located I would like to express my sincere gratitude to our in SoHo and in the Meatpacking District, respectively, in investors, their consultants, and professional advisors for New York City. As the traditional grocery- anchored retail their continued commitment to the Allegiance Fund. model comes under pressure from cornpetition both from high end specialty grocers and from mass market Respectfully, retailers, we believe that pedestrian - oriented high street r� retail corridors provide a vibrant and exciting shopping experience that most regional malls, power centers and r / other retail categories cannot match. Given what we Robert B. Bellinger, CFA perceive to be strong consumer preferences for this type Fund Portfolio Manager and President of shopping experience, we expect that urban retail will ASB Real Estate Investments outperform in the medium -to long -term as national retailers continue a migration to the sector in order to meet consumer demand. Total investment activity for the quarter totaled $180 million across four new For additional information about the ASB Allegiance Real Estate Fund, As please contact our Marketing and Client Service team: McCoy, K. McCoy, Managing ing Di rector Phone one (240) 482 -2908 1 jmccoy @asbcm.com Andrew T. Dietz, Managing Director 1 Phone (240) 482 -2935 1 adietz @asbcm.com REAL ESTATE INVESTMENTS 7501 Wisconsin Avenue Suite 1300W 1 Bethesda, MD 20814 Phone (240) 482 -2900 1 Toll Free (800) 544 -8850 i Fax (240) 482 -2992 1 www.asbrealestate.com 4 51.1" T G TIE 112E5 OF M}4 -C. " N. / ,,,),', 4 4. j et � :mot. 'v. CD ., x ' r . i , �> _ � � �� t iotilti `�Z 41 IIIP," ' PENSION 4 .. , 4, , ,41, . ,,„ ,, ,_ - _ \ , ,,,, ,,,1%,tt,, N _ , Klausner, Kaufman, Jensen & Levinson Presents our 15th Annual Client Conference Join us at the Hyatt Regency Pier 66 in Fort Lauderdale, Florida March 10th - 13th, 2013 BILL: PCS /SB 458 (427674) Page 4 In 1999, the Legislature passed legislation that made virtually all provisions of chapters 175 and 185, F.S., expressly applicable to all participating police officer and firefighter pension plans, except the local law plans established by the cities of Jacksonville, Coral Gables, and Miami." All pension plans falling under these chapters were required to meet the specific "minimum benefit" standards. The law required that insurance premium tax revenues, over the amount received for calendar year 1997, be used to provide additional or "extra benefits" in firefighter and police officer pension plans. The term "extra benefits" means benefits in addition to or greater than those provided to general employees of the municipality, and in addition to those in existence for firefighters and police officers on March 12, 1999. Until August 2012, the division had consistently interpreted the law to require that premium tax revenues be used first to meet any minimum benefit requirements and those other pension benefits that were in place on March 12, 1999. Once the plan was in compliance with the minimum benefits requirements, any additional premium tax revenues had to be used in their entirety to provide extra benefits. Plans were not permitted to reduce pension benefits below the minimum benefits level or the level of pension benefits in effect on March 12, 1999, if greater. Recent Interpretation In response to a letter from the City of Naples in August 2012, the division advised that its ongoing interpretation of s. 185.35(2), F.S., "appears inaccurate." The division was asked, in essence, whether a city that negotiated and mutually agreed with its police officers to reduce benefits below levels in place on March 12, 1999, would jeopardize its premium tax revenues. In its new interpretation, the division advised that for local law plans in effect on October 1, 1998, the law compels the plan to provide chapter minimum benefits only to the extent that those benefits can be funded with "additional premium tax revenues." So, for local law plans in effect on October 1, 1998, chapter minimum benefits must be provided only to the extent that they can be funded with premium tax revenues received in excess of the amount received for calendar year 1997. Under the new interpretation, it appears that the following things are true: • A plan sponsor may redirect, at its discretion, its pre -1997 premium tax revenues from funding minimum pension benefits to funding other non - pension retirement benefits; • The plan's pension benefits could be reduced to the level that can be funded solely by those additional premium tax revenues received in excess of the 1997 level; • A plan sponsor could reduce its mandatory contribution it was previously making to the plan to fund minimum benefits and redirect those monies to other municipal purposes; and • Post -1997 insurance premium tax revenues used previously to fund "extra benefits" would be used to fund the minimum benefits. The division has subsequently provided this new interpretation to other inquiring cities, on a case by case basis. DMS has not adopted this new interpretation as a rule, nor its previous entirely different interpretation of the exact same statutory language. 11 Sections 175.351(3) and 185.35(3), F.S. 12 See ss. 175.351 and 185.35, F.S. Misinformation adds to public pension plan woes - Pensions & Investments rage 101 . Prudential Login 1 Register is.L'.' ..r ... Prudential Brim Your Wlie:,ref Subscribe to P &I Setsce: Prteior al Retlrerner*Pien P &I Daily Print Edition Pmtlelpar3 Stau_y, 2012. Search topics, companies, people.. P &I Research Center P &IQ P &I Careers P &I Conferences I Multimedia White Papers Special Reports Data Store Altematives Asset Owners Consultants Investing /Portfolio Strategies Money Management People Moves Searches /Htres/RFPs More Topics :I = I;r :tlti"" East Coast March 10 -12, 2013 REGISTERTODAY Defined Contribution Conference intercontinental Hotel j Miami Misinformation adds to public pension plan LATEST VIDEO woes II+Y Pen , BY KEITH BRAINARD I JANUARY 21, 2013 COMMENTS — iaftsiLDrir 3Hl', Daniel Fuss If a public or corporate official distributes false financial information that serves as the basis for wko v,a,unon, 1.1n,u.s,;m. unwarranted action by others, they are guilty of either fraud or negligence depending on whether it was signed off on knowingly or carelessly. Why then are academics not held to the same level of Dan Fuss on fixed income strategies for pension funds accountability? To cite one example, in an op -ed piece in the Dec. i0 PRUDENTIAL RETIREMENT& RELATED CONTENT Providence Journal, finance professor Joshua Rauh and WHERE DO PLAN SPONSORS STORIES assistant finance professor Robert Novy -Marx made the TURN TO FOR GUARANTEED New York City expects to contribute $8.1 following Statement: N ? billion to pension funds RETRI ■�• Fresno City Retirement Systems opts for "In Rhode Island, an anticipated annual return of 8.25% in NEPC as investment consultant MONEY MARKET FUNDS pension investment has for the past decade come in at about San Francisco retirement system chooses ° This means that while the state's private markets chief one - third that rate, only 2.4%. pension system already takes io cents out of every state tax dollar — and yet remains deep in the red — it's not nearly enough to pay off the promises." 40 Prunentiai Clie 0228512 moi•oo These academics are well credentialed and are on the staff of highly respected institutions of higher education (the Stanford graduate school of business and the University of Rochester graduate school of LATEST POPULAR RECOMMENDED business, respectively.) Given their backgrounds and positions, one would assume they are capable of basic research and are malting their claims based on solid information. Old Mutual Asset Management taps institutional sales chief for Asia The natural reaction to the red flag they have raised regarding Rhode Island's investment returns would be to demand immediate action. There is only one problem: What they reported is false. How do I know Northrop Grumman eyes 5500 million in 2013 that? Information made public by the Rhode Island retirement office regarding its investment return for contributions the past decade, prepared by an independent consultant, shows the Rhode Island pension fund's annualized return for the io -year period ended last Sept. 3o was 8.3 %, not 2.4 %. In addition, since New York City expects to contribute 58.1 billion to 2010, the Rhode Island retirement plans have used an anticipated annual return of 7.5%, not the 8.25% pension funds rate claimed by the professors. Boeing to add $1.5 billion to pension plans in 2013 This is not an isolated incident. In an earlier report, Mr. Raub produced what were called "run -out — — dates" for public plans, which led readers to believe the dates listed were when the plans were expected PIMCO names Kashkari's replacement for stocks to run out of money. The Pew Center for the States reported it that way, and a congressman cited the information on his website as proof positive of the need for the "reform" legislation he was proposing. view more a Naturally, the run -out dates resulted in high degrees of anxiety among both plan participants and the sponsoring agencies, and no small effort was made to clarify and correct the record for policymakers and the media. More than a year after publication of this report, the Government Accountability Office included the following in a footnote in a report of its own: "However, the (Rauh) study was based on the assumption that benefits earned to date would only be financed out of current plan assets and not from any future contributions. The projected exhaustion dates are thus not realistic estimates of when the funds might actually run out of money." http : / /www.pionline.com/article/20130121/PRINTSUB/301219999 1/31/2013 Facts You Know State and Municipal Bankruptcy • Municipal Bonds • State and Local Pensions 2 0 1 3 F A C T S H E E T FACTS: State and Local Bankruptcy NATIONAL - G OVERNORS Unintended Consequences. The mere suggestion that Congress should enact As oaAnoN preemptive authority for states to file for bankruptcy is pernicious because of its predictable consequences. Any federal law allowing states to declare bank - 1 (j ruptcy would only serve to increase interest rates, rattle investors and markets, raise the costs for state government, create more volatility and uncertainty in financial markets, and erode state sovereignty under the 10th Amendment to 1N'' I L the U.S. Constitution. NATIONAL CUM' tRlNL! of 5 TM L LEGI$LAI'URE> States Versus Municipalities. The bankruptcy conversation further demonstrates (SW a basic misunderstanding about the function and operation of state and local governments. The Council of State Governments The mechanics of bankruptcy are inapplicable to a sovereign entity. Bank - Shaii un capitol ideas, ruptcy is not a legal option for states, as constitutionally recognized sover- eigns, because states have taxing authority and constitutional or statutory NI (10 Natrona :Assocjafion ofCeun.+ia requirements to balance budgets. Alternatively, bankruptcy may be an option for some municipalities under Title IX of the federal Bankruptcy Code because The Vciczo America's municipalities are legal corporations, not sovereign entities. Eligibility for Chapter IX relief is narrowly tailored by several factors. States determine NATIONAL whether their municipalities, as "political subdivisions, public agencies, or LEAGUE instrumentalities of the state," may pursue this option. One key eligibility fac- 0I CITIES 4iiiii tor is that a municipality must be insolvent and unable to meet its obligations when they fall due. . c 4 According to Moody's Investor Service, 21 states and the District of ,I Columbia have not passed laws on municipal bankruptcy while 28 states �( :^ either authorize or provide conditional or limited Chapter IX filings. Cur - r l `v� rently, only Georgia and Puerto Rico legally prohibit municipalities from �y� * 40 filing under Chapter IX. 1 cmA Issued By: NGA - National Governors Association NCSL - National Conference of State Legislatures CSG - The Council of State Governments _ SBO 1 NACo - National Association of Counties # NLC - National League of Cities i USCM - The U.S. Conference of Mayors ICMA - International City /County Management Association o °$'OCAT'c" NASBO - National Association of State Budget Officers NASACT s ' � A, � NASACT - National Association of State Auditors, Comptrollers and Treasurers tom' e GFOA - Government Finance Officers Association ' h` NASRA - National Association of State Retirement Administrators 9^ '°4e � R TR0,,,zs4 NASRA 1 State Actions. Long term fiscal constraints have put Federal Tax - Exemption of Municipal budgetary pressures on most states, which are required Securities to balance their budgets annually or biennially. States Municipal securities existed prior to the formation have risen to this challenge by making tough spend- of the federal income tax. Both when first enacted ing cuts and, in some cases, raising taxes, which is and today, the federal income tax specifically within their power as sovereign entities. During this states that income from municipal bond interest is time, unfunded pension and health care liabilities have exempt from federal taxation. Additionally, many also grown, due chiefly to the lower rate of return states exempt from taxation the interest earned on investments and deferred annual contributions, from municipal securities when their residents Between 2009 and 2011, 43 states have reduced their purchase bonds within their state. pension plan costs, unfunded liabilities, or both, by modifying their pension plans. • Due to the reciprocal immunity principle between Throughout this difficult period, no state contem- the federal government and state and local gov- plated walking away from its obligations to residents ernments, state and local governments are prohib- or the bond markets by requesting that the federal ited from taxing the interest on bonds issued by government allow states to receive bankruptcy the federal government. protection. In 2011, NGA leadership issued a preemptive state- Not All Municipal Debt and Defaults Are ment and a joint leadership letter with the NCSL that the Same declared opposition to any congressional legislation that would permit states to file for bankruptcy protec- • Municipal debt takes two forms: (1) General tion. Opposition to such legislation remains in 2013. Obligation, or GO Debt, that is backed by the full faith and credit (taxing power) of a general purpose government like a state, city or county, and (2) FACTS: Municipal Bonds Non -GO debt that is issued by govemments and special entities that is usually backed by a specific Municipal securities are predominantly issued by state revenue source (special taxes, fees or loan repay - and local governments for governmental infrastructure ments) associated with the enterprise or borrower, and capital needs purposes. Most debt is issued not • There are two types of default: (1) the more minor for operating budgets, but rather for capital projects "technical default," where a covenant in the bond that help governments pay for public projects, such as agreement is violated, but there is no payment the construction or improvement of schools, streets, missed and the structure of the bond is the same, highways, hospitals, bridges, water and sewer systems, and (2) defaults where a bond payment is missed ports, airports and other public works. or in the rare event that debt is restructured at a loss to investors. Municipal Securities • There are approximately 1.5 million municipal Defaults Are Rare bonds outstanding, totaling $3.7 trillion, 70 percent • From 1970 through 2012, there were 71 rated of which are owned by individual investors. municipal bond defaults. Only five rated city or ■ On average, 12,000 issuances are completed each county governments defaulted during this period. year. The majority of rated defaulted bonds were issued by not - for -profit hospitals or housing project • Municipal securities are considered to be second financings. (Moody's) to Treasuries in risk level as an investment instrument. • In the first nine months of 2011, municipal bond defaults were down 69 percent compared to the • While most municipal securities are issued for same period in 2010 (S &P). governmental infrastructure and capital needs purposes, state and local governments and other • Historically, municipals have had lower average types of government authorities may issue bonds cumulative default rates than global corporates over - for other purposes, which include transactions in all and by like rating category. Between 1970 and which the proceeds are borrowed by non -profit 2012, the average 10 -year default rate for Moody's institutions (e.g., health care and higher education) Aaa -rated municipal bonds was zero compared to and for economic development purposes. a 0.48 percent default rate for Moody's Aaa -rated f corporate bonds. Additionally, the average one -year mented public retirement system pension distributions default rate for all municipals was just 0.01 percent annually generate over $73.4 billion in federal tax rev - versus 1.61 percent for corporates, and in the double- enue, more than $59.7 billion in annual state and local A rating category to which the majority of municipal government tax revenue, and a total economic impact ratings are assigned, average cumulative default rates of more than $1 trillion.' are much lower for municipals than for corporates With nearly $3 trillion set aside in pension IN with the same double -A symbol (Moody's ). trusts for current and future retirees, most states • Except for Arkansas in 1933, no state has defaulted and cities have substantial assets to weather the on its debt in the past century. It is important to economic crisis note that in the 1933 Arkansas default, bondhold- ers were paid in full. • Public pensions are paid out over decades; state and local government retirees do not draw is The recovery rate of payment for governmental down their pensions all at once. debt exceeds the corporate recovery rate, with a recovery rate for general obligation and tax- backed • State and local employee retirement systems debt at 100 percent. do not seek federal financial assistance. One - size- fits -all federal regulation is neither needed • Reports of a growing number of defaults in the state nor warranted and would only inhibit recovery and local government sector are not based on facts, efforts at the state and local levels. nor current budget estimates and economic data. • State and local governments are taking steps to Debt Service is a Small and strengthen their pension reserves and have a Well- Protected Share of State and long-term time horizon. Municipal Budgets • Between 2009 and 2011, 43 states have made changes to benefit levels, contribution rate • Debt service is typically only about 5 percent of structures, or both; many local governments the general fund budgets of state and municipal have made similar fixes to their plans.' governments. • While pension obligations are often backed by • Most state and municipal governments operate explicit state constitutional or statutory guar - under a standard practice of paying their debt antees, states are generally free to change any service first before covering all other expenses; in provision of their retiree health plans, includ- some cases this is required by law or ordinance. ing termination, as they do not carry the same legal protections. It is misleading to combine Bankruptcy Does Not Necessarily Mean unfunded pension liabilities with unfunded Default retiree health benefits as an argument that a pension meltdown is impending. • In many municipal bankruptcies, the jurisdic- tions have not defaulted on their debt /municipal ■ Long -term investment returns of public funds bonds and investors have been paid, includ- continue to exceed expectations. ing the well - publicized bankruptcy of Orange • Over the last 25 years, which saw three eco- County, CA in 1994. nomic recessions and four years of negative median public fund investment returns, actual FACTS: State and Local public pension investment returns averaged 8.8 percent, which exceeded projections. G overnment Pensions • These actual returns exceed the 7.8 percent average public pension investment return Pension dollars help the economy of every jurisdiction. assumption, as well as the average assumed Public employees live in every city and county in the rate of return used by the largest corporate nation. More than 90 percent retire in the same juris- pension plans.' diction where they worked. The $200 billion in annual benefits distributed from pension trusts are a critical • Retirement systems remain a small portion of source of economic stimulus to communities through- state and local government budgets. out the nation, and act as an economic stabilizer in • The portion of combined state and local govern - difficult financial times. Recent studies have docu- ment spending dedicated to retirement system contributions is about four percent.s. Pensions pension, and these contribution rates are being are a trust to which public retirees and their raised by many state and local governments. employers contributed while they were working. • While there are pension trusts that are fully Endnotes funded with enough assets for current pension 1 Moody's Investors Service, 2013. obligations, there also are legitimate concerns 2 Pension. *Hies: Measuring the Economic Im.pa.ct of Defined about the extent of underfunding, due primar- Benefit Expenditures, National Institute on Retirement Security, ily to the Great Recession and stock market March 2012. declines. In most cases, a modest increase 3 State Pension Reform, 2009 -2011, National Conference of State in contributions to take advantage of com- Legislatures, March 2012. pounded interest, modifications to employee 4 Median Returns for Periods Ended 09/30/2012, Callan Associates. eligibility and benefits, or both, will be suffi- 5 Milliman 2010 Pension Funding Study. cient to remedy the underfunding problems 6 N ASRA Issue Brief: Pension Plan Investment Return Assumption, August 2012. • The unprecedented number of benefit and financ- 7 The Impact of Public Pensions on State and Local Budgets, Center ing changes in public plans over the last few years for Retirement Research at Boston College, Alicia H. Munnell, Jean-Pierre Aubry, and Laura Quinby. October 2010. will help to minimize any required increases. The 8 State and Local Pensions: An Overview of Funding Issues and vast majority of public employees are required Challenges, Center for State and Local Government Excellence, to contribute a portion of their wages — typically, January 2013. five to ten percent —to their state or local For More Information National Governors Association David Quam • (202) 624 -5300, dquam@nga.org David Parkhurst • (202) 624 -5300. dparkhurst @nga.org National Conference of State Legislatures Bankruptcy: Susan Parnas Frederick • (202) 624 -3566, susan.frederick @ncsl.org Pensions and Defaults: Michael Bird • (202) 624-8686, michael.bird @ncsl.org The Council of State Governments Chris Whatley • (202) 624 - 5460, cwhatley @csg.org National Association of Counties Michael Belarmino • (202) 942 -4254. mbelarmino @naco.org Pensions: Deseree Gardner • (202)942 -4204, dgardner @naco.org National League of Cities Bankruptcy and Bonds: Lars Etzkom ■ (202) 626 - 3173, etzkom@nlc.org Pensions: Neil Bomberg • (202) 626 -3042, bomberg@nic.org The U.S. Conference of Mayors Larry Jones • (202) 202 - 861 - 6709, Ijones @usmayors.org International City /County Management Association Elizabeth Kellar • (202) 962 - 3611, ekellar @icma.org National Association of State Budget Officers Scott Pattison • (202) 624 - 8804. spattison@nasbo.org National Association of State Auditors, Comptrollers and Treasurers Cornelia Chebinou • (202) 624 - 5451, cchebinou @nasact.org Government Finance Officers Association Dustin McDonald • (202) 393 - 8020, dmcdonald@gfoa.org National Association of State Retirement Administrators Jeannine Markoe Raymond • (202) 624-1417, jeannine @nasaa_org