Agenda 09-20-11
BOYNTON BEACH POLICE OFFICERS' PENSION FUND
SPECIAL BOARD MEETING
Tuesday, September 20,2011 @ 9:30 AM
Renaissance Executive Suites - Conference Room #1
1500 Gateway Blvd., Suite # 220
Boynton Beach, FL 33426
AGENDA
I. CALL TO ORDER - Lt. Gary Chapman, Chairman
II. AGENDA APPROVAL
III. APPROVAL OF MINUTES - Quarterly Meeting of 8-9-2011
IV. FINANCIAL REPORTS: N/A
V. CORRESPONDENCE:N/A
VI. OLD BUSINESS: Tabled from August 9, 2011 Quarterly Meeting
1) Gabriel Roeder Smith & Co - Steve Palmquist, Actuary
a) Review Revised October 2010 Actuarial Valuation Report of 5-31-201l.
b) Discussion on Interest Assumption and PR-2000 Mortality Table - Experience
Study dated 2-201l.
c) New page in Val Report using assumed rate of return by State.
d) Est Payroll/Annual Deposit.
2) Review future Employee/Employer contribution direction -
3) Financial Statements - For review - Oct, Nov & Dec 2010, Jan, Feb & Mar
2011, and Apr, May & Jun 2011.
VII. NEW BUSINESS:
A. Invoices for review and approval:
1) Perry & Jensen, LLC - Service Aug 2011 - $1,424.38
B. Attorney Report - Bonni Jensen
1) Commission on Ethics Review -
c. Verification of Benefits - Frank Danysh for review and approval
VIII. PENSION ADMINISTRATOR'S REPORT: N/A
IX. COMMENTS:
x. ADJOURNMENT:
Next Regular Meeting Date - Tuesday, November 8,2011 @ 9:30 a.m.-
Renaissance Commons
If you cannot attend, please call Barbara @ 561-739-7972
1
NOTICE
IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE POLICE OFFICERS' PENSION BOARD WITH RESPECT TO ANY MATTER
CONSIDERED AT THIS MEETING, HE/SHE WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE/SHE MAY NEED TO
ENSURE THAT A VERBATIM RECORD OF THE PROCEEDING IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON
WHICH THE APPEAL IS TO BE BASED. (F.s.286.0105)
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
BY THE CITY. PLEASE CONTACT CITY CLERK'S OFFICE, (561) 742-6060 AT LEAST TWENTY-FOUR HOURS PRIOR TO THE PROGRAM OR
ACTIVITY IN ORDER FOR THE CITY TO REASONABL Y ACCOMMODATE YOUR REQUEST.
THE BOARD (COMMITTEE) MAY ONLY CONDUCT PUBLIC BUSINESS AFTER A QUORUM HAS BEEN ESTABLISHED. IF NO QUORUM IS
ESTABLISHED WITHIN TWENTY MINUTES OF THE NOTICED START TIME OF THE MEETING THE CITY CLERK OR DESIGNEE WILL SO NOTE
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EVEN WHEN PURPORTEDL Y ACTING IN AN INFORMAL CAPACITY.
S:\CC\WP\JANET\POLICE PENSION FUND.doc
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~ 9-1-1/
MINUTES OF THE BOYNTON BEACH POLICE OFFICERS' PENSION FUND
QUARTERLY BOARD MEETING HELD ON TUESDAY, AUGUST 9,2011 AT 9:30 AM
RENAISSANCE EXECUTIVE SUITES - CONFERENCE ROOM #1,
1500 GATEWAY BOULEVARD, SUITE #220, BOYNTON BEACH, FLORIDA
PRESENT:
Gary Chapman, Chair
Toby Athol, Secretary
Scott Caudell
Jason L10pis
Frank Ranzie
Barbara LaDue, Pension Administrator
Bonni Jensen, Board Attorney
I. CALL TO ORDER
Chair Chapman called the meeting to order at 9:29 a.m.
II. AGENDA APPROVAL
Chair Chapman added Old Business, Item 1. RP2000 Tables; and Item 2. Assumed
Rate of Return. Attorney Jensen, added Commission on Ethics as Item 3 under
Attorney Report.
Motion
Mr. Athol made a motion to approve the agenda as amended and was seconded by Mr.
L1opis. The motion passed unanimously.
III. APPROVAL OF MINUTES - Special Meeting March 1,2011
Special Meeting June 14, 2011
Chair Chapman advised he had a change to the March 1, 2011 minutes. On the last
page, second paragraph from the bottom, beginning with "The plan does not have a
cost of living........ it should read "they would adopt the State cost of living percentage"
rather than the State Street percent per year cost of living.
Motion
Mr. Athol made a motion to approve the minutes of March 1, 2011 as amended. The
motion was seconded by Mr. L10pis and unanimously passed.
Chair Chapman advised he had changes to the June 14, 2011 minutes. On page 4,
Item OJ line 6,6% increase for the employee or a 2% increase after five years. The "or"
should read "for". Also, a 9% increase in contribution "or" a 2% increase after one year
in retirement, should read "for".
Meeting Minutes
Police Officers' Pension Board
Boynton Beach, FL
August 9, 2011
Motion
Mr. Athol made a motion to approve the minutes of June 14, 2011 as amended The
motion was seconded by Mr. L10pis and unanimously passed.
IV. FINANCIAL REPORTS
A) Quarterly Investment Review - June 30, 2011
1) Russell Investment Group - Glenn Harris
a) Len Brennan - New President and CEO of Russell Investments
- Memo of July 13, 2011
Glenn Harris, Client Executive, Russell Investments, advised Len Brennan was the
new leader of Russell Investment Group. He came to Russell Investments from Rainier
Asset Management in Seattle. Previously with Russell Investments, he led the private
client services group which was part of the mutual fund business where mutual funds
were sold to financial advisors throughout the country. He also ran some of the
businesses in Canada. Currently, he was in a dual role. He was the global CEO of the
company, but also the CEO of the Europe/Middle East business. The focus would be to
grow the Defined Contribution business, our non profit business, and launch the ETF
Funds. American Institutional is the biggest business and that would also receive a lot of
attention under Mr. Brennan's leadership. He would be attending the Northeast
Regional Conference in October in New York and the Summit in California in the spring.
b) Portfolio Review
Mr. Harris indicated he wanted to discuss the recent events in the markets, provide a
quick review of the second quarter, and the asset allocationJ and what changes should
be contemplated. He also expressed concerns on the fund-to-fund product, the private
real estate fund, and would discuss the changes made to that in the last few years, as
well as the current positioning of the fund. He felt there should still be exposure there
and the product was in good shape. From the previous two quarters, it was in good
shape and on the right track. This fund is yielding approximately 6%. The fund was up
the first half of the year over 9%. He also wanted to discuss some comments on Listed
Infrastructure and how there was discussion about adding those products over a year
ago. There should be something ready by October 1,2011
Mr. Harris reviewed figures in his presentation of the Quarterly Investment Report. U.S
Companies, in general were doing well and were meeting or exceeding earnings
expectations over the last two quarters. It comes at a cost as the unemployment rate
suffers. Because companies are doing well with the employees they now have and
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Meeting Minutes
Police Officers' Pension Board
Boynton Beach, FL
August 9, 2011
because there was so much uncertainty where the Government was going in all
different industries, and concern of what the future tax policy would be, they were not
hiring. Interest rates were also a concern due to the issues in Congress, the debt
ceiling, and the recent downgrade in the U.S. Government debt. With the recent QE 2
ending, there was concern where the monetary policy was heading. Because of this
uncertainty, there was fear that rates would begin to rise. Yields, as a result, may
continue to fall and Treasury bond prices may start to rise, which would impact
everything else. Small companies borrow money to run their businesses, so if rates
begin to go up, that could also stall economic growth.
Chair Chapman commented on the rating agencies and how ratings seemed to create a
panic in selling. Obviously people were making money during the process that stocks
were being sold. He inquired if there was an advantage to that and if so, what was the
advantage? Mr. Harris advised the vast majority of people were losing money. Those
were the ones that were short trading stocks. People were beginning to shift away from
equities and fixed income and favor other alternative strategies. The attraction could be
real estate, both public and private infrastructure, commodities and other diversification
strategies that minimize risk.
Chair Chapman commented on the Defined Contribution (DC) and Defined Benefit (DB)
funds and how he felt that survival would be better in a DB, rather than a DC for
employee and retirement in the long term. Mr. Harris disagreed. He felt it was being
actively managed and the risk was being dialed down as one gets near retirement.
Russell's portfolio had the gamut of Equity Funds, International Funds, Fixed Income
and TIFS. Real estate and infrastructures were being added. It was a very diversified
portfolio of investments in one fund.
Chair Chapman inquired if companies, with insider buy backs, were utilizing that cash.
Mr. Harris indicated many companies are taking advantage of that. Mr. Harris advised
the fixed income allocation in the police fund was almost 5% overweight in fixed income.
The question was if it should be rebalanced now just to jump back into equities. It would
be a short term decision. The bond portfolio was previously addressed. In fixed income
funds, Treasury bond yields were fairly low and there was an underweight there. It had
nothing to do with the downgrade. It was due to the fact that Treasury bonds are not
favored, rather a credit spread product was favored, which included mortgage backed
securities and high yields.
At the beginning of the year, there were some riskier debt securities in the portfolio,
including higher exposure to high yield, bank loans, and subprime type loans. In the last
six months, a few percentage pOints were trimmed with some of the riskier fixed income
securities. There was a term referred to as Barbell Strategies, which included exposure
to the riskier items like emerging market debt, high yield, some non-agency mortgage
backed securities, all of which have contributed to returns the last three years. On the
other hand, there had been an increase in exposure to cash and short term futures,
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Meeting Minutes
Police Officers' Pension Board
Boynton Beach, FL August 9, 2011
keeping the product in a little shorter duration. Regardless of the downgrade on
Treasuries, there was still underweight
Currently, the portfolio was up to 40% because equities had declined so much.
However, commodity exposure was being increased, as there was private real estateJ
and exposure of the global real estate securities. Perhaps in the next few months, two
or three percent in Infrastructure would be added. Mr Harris felt that allocation across
the board was still good.
Mr. Harris continued that in the Concentrated Equity One Fund to Large Cap Funds
currently held, the main strategy was to invest in companies that had, over the past
year, seen their earnings grow. Over the next three or five years, it was expected to see
a certain growth rate from these types of companies. He commented that as quickly as
this had come down, it would go right back up again.
Mr. Harris advised investors favored more defensive areas in the markets such as
health care, consumer staples and companies that would do well, regardless of the
economy. He advised that in the Financial Review, commodities helped diversify some
of the risk with respect to equities, as well as fixed income Commodities are tied to the
price of everything from wheat, cotton, and gold, among others.
At the end of the second quarter, the Russell managers were favoring companies with
long term growth prospects and emerging market equities. There had been some very
selective buying opportunities in the Euro Zone because there had been a big sell off
internationally. They were more concerned with fixed income because many of the
returns had already been achieved
There was a gain in the real estate fund of approximately $100,000. The fund was just
short of $2.4 million, from $2.3 million as of March 31st Assets had dropped
significantly from $56.3 million down to approximately $50.9 million. The only area
significantly overweight, as previously stated, were fixed incomes. The fiscal year
period added $5.9 million from the same fiscal year period last year, which included the
net cash flow activity of $3.6 million
The numbers were favorable even before factoring in private real estate. Year to date
period showed about 4.8% netted fees for the first six months of the year versus
Russell's benchmark of 4.7%. If private real estate was factored in, it would bring it up
to 5%. For the fiscal year period, the net return is 11.34%, but factoring in private real
estate and positive gain in the quarter, the net return was actually 11.55%. For the most
part, all funds had a good quarter. Equities, as a whole, were up 17.7%J factoring in
both U.S. and non-U.S. Fixed income was up 2.9% and total alternatives, which factors
in REITs and private real estate were up 13.7%. Private real estate returns for the
quarter were up 4.92%. There was a strong return from private real estate, which was
due to the income components such as ongoing short and long term leases of
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Meeting Minutes
Police Officers' Pension Board
Boynton Beach, FL
August 9, 2011
underlying investments. The plan year was up 15.3% versus 14.1%. Mr. Harris
commented that his expectations would be even if the returns were flat from the
appreciation aspect, there would still be an income return which could be 2% or 3% for
the quarter. If that was factored into the 15.3%, it could bring it up to 17% or 18% for a
one-year period. Commodities had a very short term return due to the additional
allocation in June, and therefore, there was not a full month return.
Mr. Harris continued to review the portfolio and stated that a decision was made to
terminate the Quantitative Fund. to the fact that the long-term numbers were weak.
Reallocation was made to the two other core multi-style funds and also exposure to
commodities was added.
All the investments, with the exception of fixed income and private real estate show that
there was an underweight in Europe of about 6.9%. The Americas, which consisted
mostly of U.S., with some exposure to Canada and Mexico, allocations were overweight
due to the higher allocation to U.S. equities. Emerging markets are roughly at 4.4%, still
underweight of the world benchmark of approximately 9%. With respect to country
deviations, there was an underweight. There was a still a significant exposure to some
of the smaller securities around the world. A question might be why were the large caps
funds slightly behind their benchmarks for the quarter, and why were they slightly
behind for year to date? First, there were overweights to technology and financials
which were the worst performing sectors in the market. Second, consumers were
favoring staples and utilities and that was where the two largest underweights were.
As mentioned earlier, Russell recently launched ten Exchange Trade Funds, and as of
right now, were mostly geared towards the institutional market, primarily in large plan
sponsors that were running in multi-billion dollar funds, as well as hedge funds. The
purpose of these strategies was they were unique and also very specific. This means
all the equity stocks that are trading in the U.S. are evaluated and are weighted based
on how volatile they are relative to the overall market. Mr. Harris commented that
adding some more defensive type strategies into the fund line up could be investigated.
Mr. Harris summarized as to where the fund was now. As correlations go up, there was
less of a diversification benefit. In the beginning of the year, the correlations were low,
but picked up quite a bit toward the end of the first quarter. At the beginning of the
second quarter, they came down significantly and then rose towards the end of the
second quarter. The theory was that the higher correlations go up, diversification
benefits decrease. On the Equity 1 Fund, the fund was moving more towards the
consumer, so even though the consumer was not spending money, it was still believed
that they would spend on staples and discretionary buying, and save money by going to
the discount chains. There were some concerns in the technology market with certain
segments of the market topping out.
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Meeting Minutes
Police Officers' Pension Board
Boynton Beach, FL
August 9, 2011
The benefit of having two funds was they have similar strategies but different managers,
different number of holdings, and some of the positioning was different. Concentrated
Equity takes more extreme sector bets. Equity 1 would be more of a stable fund.
Without providing a recommendation, it was Mr. Harris' opinion that the exposure to the
AIM Fund, as well as the World Equity Fund gave sufficient exposure. The Core
International Fund, which was already invested in through the AIM Fund, had two
underlying managers that were currency specialists. A year ago, the returns were
phenomenal. Currencies were trading enormous amounts of money on a daily basis. It
would be a way to diversify further. More recently, currencies had been a difficult trade.
The Swiss Franc and the New Zealand dollar were depreciating.
Another strategy available to the Board to investigate would be to pursue the Active
Currency manager. The core fund was the International Fund, so there was still that
diversification of the managers, and investing with any other International non-U.S.
developed fund, but the difference was there would now be a cash collateral account
with two managers actively buying and going short on a number of currencies.
Chair Chapman inquired what the term "cash equitization techniques utilized with
derivatives meant". Mr. Harris advised when there was cash of 5%, cash could be
considered, particularly on an equity investment, a drag. So as equity markets go up,
that cash would invest in equity so there would be some return. On the other hand, if
equities were decliningJ the cash was not a drag but it was actually helping. What
managers did was utilize futures. The futures indicate jf the market was up or down, so
cash holdings could be invested in equity futures, and basically remain invested in the
market. By using cash equitization, the cash was invested in futures overnight. It would
not be invested in other currencies. There was definitely risk involved and the fund was
not 100% to currency money. Mr. Harris indicated this fund would carry a much higher
fee. In the portfolio, Mr. Harris pointed out that active currency for the one year was up
29.23%, but the one year for the core international was up 32.4%
Mr. Harris concluded his presentation reviewing the Real Estate Equity Fund. This was
the one fund invested in that was utilizing underlying managers but were actual funds
He reviewed the changes to the private real estate fund and what had been impacting
performance because some of the longer term performances were average. There were
a lower number of funds so the portfolio was reduced from nine underlying funds to six
The number of properties had also declined. At one point, there were over 1,200
underlying properties, now there were over 800 properties. At one point, the mortgage
queue was over $50 million, and was now zero. The figures in this section of the
portfolio were compared to three years ago. The biggest changes were the number of
funds that were utilized and two enhanced core products were eliminated, which were
types of funds that had higher risk. Mr. Harris continued his review of items and graphs
on the Real Estate Equity Fund pages. He advised that although the housing market
was remaining flat, rents were rising as the demand was up. Much of it was regior~
6
Meeting Minutes
Police Officers' Pension Board
Boynton Beach, FL
August 9, 2011
specific. Where the fund was weak was in retail as consumers were not buying and
there was presently not a strong demand for new retail space. Currently, the portfolio
would be set up so there would be space to accept $200 million in new investments,
which would also include one Property Fund to redeem to reimburse the Russell Fund.
The EBS Fund, which had not been invested in yet, would likely make a commitment on
November 1 because there was an entry queue. The demand had increased so much
that there is no room to take new dollars and invest those dollars.
The goal on the income yield was to maintain the annual income yield of 6%. Over the
last one-year period, through March 31st, the yield of income was 6%. Capital
depreciation was 14%.
The meeting adjourned for a brief recess at 11 :00 a.m.
The meeting was reconvened at 11 :13 a.m.
2) Burgess Chambers & Associates (BCA), Frank Wan, Head of
Research
Frank Wan reviewed the Economic Summary and why equities had the advantage over
bonds. Unfortunately, although the numbers were slightly off this quarter to date, it was
felt in the long term equity would become credibly attractive. Mr. Wan explained why
the market would go up. The dollar had been very weak for the past year and a half. It
brought the dollar index to approximately the 70-72 range. Having a weak dollar meant
U.S. stocks were cheaper, exports would go up, and the bottom line would help the
GDP. A good indicator on what may happen in wrapping up this year was possibly
retail sales and how much was being manufactured out of this country in overseas
exports. It would partially fix the deficit that was being experienced and would boost the
bottom line GDP.
He continued to explain there was $8 trillion of cash on the sidelines; $2 trillion pulled
out in the second quarter of this year and then more pulled out after the end of the
second quarter. Companies were buying back their stocks because the stocks were
cheap, which was good for the current shareholders. In addition, there was a big
increase in mergers and acquisitions. These two things would continue to drive stock
values and market values and help the economy.
Mr. Wan advised the quarter ended on a positive note. Continuing with the review, he
advised the Total Fund Investment Performance for the quarter, 1.2% was earned. For
the fiscal year period, it was up 12% and for the one year, it was up 22%. The
consultant benchmark was in line with what happened to the fund. The net investment
return for the fiscal year was 11.7% which meant approximately 3% could be given back
and would still be above the actual assumption this year.
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Meeting Minutes
Police Officers' Pension Board
Boynton Beach, Fl
August 9, 2011
On the compliance checklist, Small Cap real estate was underperforming, but Small
Cap had made a significant rebound since its underperformance in the real estate. Mr.
Wan commented that there was an awareness of the real estate performance for
Russell, and he wanted to advise that there was a massive demand for commercial
properties. People did not want to put their money in stocks or bonds, so they bought
real estate. Mr. Harris commented on Mr. Wan's references on performance versus
benchmark. The benchmarks in the three and five year figures in Burgess Chambers
review packet are comparing net return versus a benchmark. He wanted to point out
possibly putting in parenthesis next time that Russell's "net performance versus gross
benchmark" would be more appropriate. There was more discussion on the different
benchmarks. Mr. Wan reminded the group that everything in the booklet he handed out
reflected current investment policies, which served as a communication tool between
the trustees, consultant and manager.
Mr. Wan continued to review the performance handout and pointed out the Large Cap
Equity and Concentrated Equity Fund. For the one year period, the Large Cap Equity
Fund was at 33.3%; the Concentrated was at 35.6%, outperforming the benchmark of
32%. The Small Cap Fund for the past year was up 41 %, beating the benchmark by
close to 4%. International Funds had also done well. For the one year period, they were
up 32.3% and the World Equity was up 32.1 %. The World Equity consists of about 40%
U.S. and 60% foreign. The reason for the domestic equity outperformance was the
growth tilt. Over the past quarter, financial companies, as well as energy companies
were hurt. This helped bring the fund positive versus negative on the value side. Multi-
manager bond funds had been one of the better performers. For the past year, it was up
7%J while the benchmark was only 4%.
Looking at the Private Equity Fund, real estate was where more assets should be in
order to move closer to the target. People were placing their assets in gold, commodity
related assetsJ or cash. They were avoiding anything related to stocks and bonds and
were investing in real estate, resulting in the valuation for real estate increasing. In
Global REITs, the European REITs had done well, but the Chinese REITs had not
Commodities were funded with $272,000 on June 9th At the end of June 30th. it was
down by 5%, at $256,000. This fits the investment criteria to triple the money over a
certain period, but if that was not working, it would be stopped. This was a very small
allocation and was due to risk management. Mr. Wan commented he felt that
commodities were a direct link to interest rates, so that if interest rates were to rise
commodities would fall.
Chair Chapman advised the commodities and the deposits made to the funds were
going to change on September 30th and felt there should be discussion regarding that
before that time. Attorney Jensen commented that at the beginning of October, It
appeared there would be $3.8 million to invest in addition to the state money that would
8
Meeting Minutes
Police Officers' Pension Board
Boynton Beach, Fl
August 9,2011
be coming in. There was discussion on the rebalancing of the funds to put into real
estate and commodities.
Mr. Wan discussed the review of the Total Fund versus the BNY Mellon Public Funds
Universe. This particular universe consists of 120 Public Funds across the country,
ranging from $10 million to $10 billion; with total assets of this universe at approximately
$900 billion dollars worth of Public Funds. In the past two years, this fund had been
more aggressive and had been one of the top funds in the country, ranking in the top
21st percentile. For the two year period, the fund is up 19%.
Mr. Wan pointed out two changes on the Investment Policy Statement. On page 5 of
the handout, foreign investments are limited to 25% of the Total Pension Fund, at
market, rather than 20%. Also on page 8, Non-US Equities, Policy Range Allocation is
changed to 5-25, rather than 5-20.
There were no questions on the Investment Policy Statement and Chair Chapman
requested a motion to approve the changes.
Motion
Mr. Athol moved to approve the changes and was seconded by Mr. L1opis. The motion
was unanimously passed.
Chair Chapman suggested tabling the following items to a special meeting as they
called for lengthy discussion.
3) Gabriel, Roeder, Smith & Co - For Review ~1{t'~11)
a) Revised October 2010 Actuarial Valuation
b) Dated 5-31-2011 - Est Payroll/Annual Deposit
4) Financial Statements - For Review Oct, Nov and Dee 2010, JanJ
F~b a,nd March 2011 and April, May and June 2011 (J'libfilUo
~~)
v. CORRESPONDENCE
1) State Street letter of 6-6-2011 - The Berwyn Group Death
Searches
There was no action taken on this item.
9
Meeting Minutes
Police Officers' Pension Board
Boynton Beach, FL
August 9, 2011
VI. OLD BUSINESS
1) RP2000 Tables (1iIIfJIM~~H
2) Assumed Rate of Return ~.~1j
VII. NEW BUSINESS
A. Invoices for review and approval
1) Russell Investment Group - Quarter End 6-30-11 $101,819
2) Russell Payment Services - Quarter End 6-30-11 $985.38
3) Burgess Chambers & Assoc - Second Quarter 2011 $5,000
4) Gabriel Roeder Smith & Co - Service 5-31-11 $1,182
5) Perry & Jensen, LLC - Service June/July 2011 $1,250.40
Motion
Mr. Athol moved to pay the invoices and was seconded by Mr. L1opis. The motion
unanimously passed.
B. Attorney Report - Bonni Jensen
1) Senate Bill 1128 - Memo of 6-3-11
Attorney Jensen advised the Senate Bill had passed. There would have to be a new
page in the Actuarial Evaluation for next year which sets the expected rate of return at
the Florida Retirement System rate of return. Chair Chapman wanted to add that item
to the Agenda when the Actuarial Report would be discussed.
2) IRS Mileage Rate for 2011 - memo of 7 -7 -11
Attorney Jensen advised the IRS mileage rate increased July 1st to 55.5 cents.
3) Commission on Ethics
Attorney Jensen indicated she had the information but suggested that this item be
discussed at the same time the Actuarial Evaluation would be discussed. As a preview
to the discussion, she advised she had already had correspondence with the
Commission on Ethics regarding the bus drivers in Palm Beach County and their
pension plan. She had stated it was not c1eaf from the law whether they, in fact, had
jurisdiction and she advised they would have an answer to her on September 1 st. They
were asked a sefies of questions about going to confefences and what may and may
10
Meeting Minutes
Police Officers' Pension Board
Boynton Beach, FL
August 9, 2011
not be expected. She advised she would wait to ask them questions about other
pension plans, including this one, once a ruling was made.
Attorney Jensen advised she needed approval on the Auditing Services Agreement.
Motion
Mr. Athol made a motion to execute the agreement and was seconded by Mr. Ranzie.
The motion unanimously passed.
There was consensus to hold a special meeting to discuss the tabled items on
September 20th at 9:30 a.m.
VIII. Pension Administrator's Report
1) Benefrts, terminations as of August 1, 2011
2) Alive & Well Outstanding Statements - second request mailed 8-3-
2011
This item was not discussed.
IX. COMMENTS
None.
x.
ADJOURNMENT
There being no further business to discuss, the meeting properly adjourned at 11 :57
a.m.
rJ1u: (~
Ellie Caruso
Recording Secretary
11
GRS
Gabriel Roeder Smith & Company
Consultants & Actuaries
One East Broward Blvd.
Suite 505
Ft. Lauderdale, FI. 33301-1827
954.527.1616 phone
954.525.0083 fax
www.gabrielroeder.com
May 31, 2011
d/~ I)
t f"t' I
~'~i
~;
fv.- p~
Ms. Barbara La Due
Pension Administrator
Renaissance Executive Suites
1500 Gateway Blvd. Suite 220
Boynton Beach, Florida 33426
Dear Barbara:
Enclosed are 15 copies of our revised October 1, 2010 Actuarial Valuation Report pertaining to the Police
Officers' Retirement System. The Report was revised due to the request by the Finance Director to use his
estimated payroll for the 2011-12 fiscal year and to determine the required contribution as of the beginning of
the fiscal year.
Please take the following actions:
1.
Distribute a copy of the Report to Board members and other interested parties.
tf' J 10#. \ ( 1Mt~/
2.
Send a copy of the Actuarial Report to:
J'
Bureau of Local Retirement Systems
Division of Retirement
P.O. Box 9000
Tallahassee, Florida 32315-9000
Office of Municipal Police Officers'
& Firefighters' Retirement Fund
P.O. Box 3010
Tallahassee, Florida 32315-3010
· ~C
'; J/.. (I t~1t\1"
(,;.~
We welcome your questions and comments.
Sincerely yours,
I
~u~7~
Senior Consultant and Actuary
Enclosures
CITY OF BOYNTON BEACH MUNICIPAL POLICE OFFICERS' RETIREMENT FUND
REVISED ACTUARIAL VALUATION REPORT AS OF OCTOBER 1,2010
ANNUAL EMPLOYER CONTRIBUTION IS DETERMINED BY THIS VALUATION FOR THE
PLAN YEAR ENDING SEPTEMBER 30,2012
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Gabriel Roeder Smith & Company
Consultants & Actuanes
Olle East Broward Blvd.
Suite 50S
Ft. Lauderdale, FL 33.)01-1[\27
'J ')4.527.1616 phone
C''i4.52S.0083 fax
www.gabrielroeder.l.:om
May 31, 2011
Board of Trustees
City of Boynton Beach Municipal
Police Officers' Retirement Fund
Boynton Beach, Florida
Dear Board Members:
Weare pleased to present our revised October I, 2010 Actuarial Valuation Report for the Plan. The purpose
of the Report is to set forth required contribution levels, to disclose plan assets and actuarial liabilities, to
comment on funding progress and to provide supporting information regarding the operation of the Plan.
This Report is also designed to comply with requirements ofthe State.
The valuation was performed on the basis of employee, retiree and financial information supplied by the
Plan's Administrator. Although we did not audit this information, it was reviewed for reasonableness and
comparability to prior years.
The benefits valued are outlined at the end of the Report. Actuarial assumptions and the actuarial cost
method are also described herein. Any changes in benefits, assumptions or methods are described in the
first section.
This actuarial valuation and/or cost detennination was prepared and completed by me or under my direct
supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are
complete and accurate. In my opinion, the techniques and assumptions used are reasonable, meet the
requirements and intent of Part vn, Chapter 112, Florida Statutes, and are based on generally accepted
actuarial principles and practices. There is no benefit or expense to be provided by the plan and/or paid
from the plan's assets for which liabilities or current costs have not been established or otherwise taken into
account in the valuation. All known events or trends which may require a material increase in plan costs or
required contribution rates have been taken into account in the valuation.
As indicated below, the undersigned is a Member of the American Academy of Actuaries (MAAA) and
meets the Qualification Standards of the Academy of Actuaries to render the actuarial opinion herein.
We will be pleased to answer any questions pertaining to the valuation and to meet with you to review this
Report.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
~
TABLE OF CONTENTS
Section Title Paee
A Discussion of Valuation Results I
Chapter Revenue 4
B Valuation Results
I. Participant Data 5
2. Annual Required Contribution (ARC) 6
3. Actuarial Value of Benefits & Assets 7
4. Calculation of Employer Normal Cost 8
5. Liquidation of the Unfunded Frozen
Actuarial Accrued Liability 9
6. Actuarial Gains and Losses 10
7. Actual Compared to Expected Decrements 16
8. Cost of Living Adjustment 17
9. Recent History of Valuation Results 18
10. Recent History of Required and
Actual Contributions 19
II. Actuarial Assumptions and Cost Method 20
12. Glossary ofTenns 24
C Pension Fund Information
I. Summary of Assets 27
2. Summary of Fund's Income and Disbursements 28
3. Calculation of Actuarial Value of Assets 29
4. Investment Rate of Return 31
D Financial Accounting Information
I. F ASB No. 35 32
2. GASB No. 25 33
3. GASB No. 27 35
E Miscellaneous Information
I. Reconciliation of Membership Data 37
2. Age/Service/Salary Distributions 38
F Summary of Plan Provisions 40
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SECTION A
DISCUSSION OF VALUATION RESULTS
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DISCUSSION OF VALUATION RESULTS
Comparison of Required Employer Contributions
The following is the required contribution developed in this year's actuarial valuation as compared to
last year.
For FYE 9/30/12 For FYE 9/30/11
Based on Based on
10/1/2010 10/1/2009 Increase
Valuation Valuation (Decrease)
Required Employer/State Contribution $ 4,262,661 $ 3,997,173 $ 265,488
As % of Covered Payroll 33.85 % 31.78 % 2.07 %
Estimated State Contribution $ 465,087 $ 465,087 $ 0
As % of Covered Payroll 3.69 % 3.70 % (0.01) %
Required Employer Contribution $ 3,797,574 $ 3,532,086 $ 265,488
As % of Covered Payroll 30.16 % 28.08 % 2.08 %
The required employer contribution has been computed under the assumption that the amount to be
received from the State next year will be at least $465,087. The City may not take credit for State revenue in
excess of $465,087. If the next payment from the State falls below $465,087, the City must raise its
contribution by the difference.
The employer contributions listed above is for the City's fiscal year ending September 30,2012 and has
been calculated assuming the employer contribution is made biweekly. Alternatively, if the employer
contribution is paid in a single lump sum. on October 1,2011, the required payment is $3,633,868, or 28.86% of
payroll. The actual employer contribution for the fiscal year ending September 30, 2010 was $3,688,516, an
amount equal to the required contribution.
Required Contributions in Later Years
The current calculated City contribution requirement is 30.16% of payroll starting October 1, 2011.
For long-term planning purposes, the City contribution rate would be expected to remain near this level if the
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current actuarial assumptIons are realized after September ~(l ,~( I i q I
It is importal1l to keep in mind that under the asset smoothing method, gains and losses are recob'11l1cd
over five years. As of September 30, 2010. the actuarial value of assets exceeded the market value n\
$3,766,428. Once all the losses through September 30, 2010 are fully recognized in the actuarial asset values.
the contribution rate will increase by roughly 1.7% of payroll unless there are offsetting gains
Relationship to Market Value
If Market Value had been the basis for the valuation, the City contribution rate would have been 32.0%
for the fiscal year ending 2012 and the funded ratio would have been 54.1 %. In the absence of other gains and
losses, the City contribution rate should increase to that level over the next several years.
Revisions in Benefits
There have been no revisions in benefits since the last valuation.
Revisions in Actuarial Assumptions and Methods
There have been no revisions in actuarial assumptions and methods since the last valuation. The Board
has authorized an experience study which will indicate recommended changes in assumptions.
Actuarial Experience
There was a net actuarial loss of $1 ,404,570 for the year which means that actual experience was less
favorable than expected. The actuarial loss is primarily due to a lower than expected return on investments.
Salary increases that were less than expected partially offset losses due to investment returns.
The net actuarial loss for the year translates into an increase in annual employer contributions of 0.66%
of covered payroll.
Funded Ratio
The funded ratio was 58.7% this year compared to 59.1 % last year. The funded ratio is equal to the
actuarial value of assets divided by the actuarial accrued liability.
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3
Analvsis of Chani!e in Emplover Contribution
The components of change in the required employer contribution are as follows:
Contribution Rate Last Year
Actuarial Experience
Change in Administrative Expense
Amortization Payment on UAL
Change in State Contribution
Change in Normal Cost Rate
Change in Assumptions and Methods
Contribution Rate This Year
28.08 %
0.66
0.08
1.20
(0.01)
0.15
0.00
30.16
The remainder of this Report includes detailed actuarial valuation results, financial information,
miscellaneous information and statistics, and a summary of plan provisions.
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CHAPTER REVENUE
Increments in Chapter revenue over that received in 1998 must first be used to fund the cost 01
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. Base Amount Previous Plan Year $ 465,087
2. Amount Received for Previous Plan Year 641,483
3. Benefit Improvements Made in Previous Plan Year (I
4. Excess Funds for Previous Plan Year: (2) - (1) - (3) 176,396
5. Accumulated Excess at Beginning of Previous Year 109,354
6. Prior Excess Used in Previous Plan Year 230,718
7. Accumulated Excess as of Valuation Date
(Available for Benefit Improvements) 55,032
8. Base Amount This Plan Year 465,087
r"DC
SECTION B
VALUATION RESULTS
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5
I PARTICIPANT DATA I
October 1, 2010 October 1, 2009
ACTIVE MEMBERS
Number 148 151
Covered Annual Payroll $ 12,134,525 $ 12,537,968
Average Annual Payroll $ 81,990 $ 83,033
Average Age 36.4 35.8
Average Past Service 8.1 7.6
Average Age at Hire 28.2 28.1
RETIREES & BENEFICIARIES & DROP
Number 91 88
Annual Benefits $ 3,812,891 $ 3,458,997
Average Annual Benefit $ 41,900 $ 39,307
Average Age 56.5 56.2
DISABILITY RETIREES
Number 15 15
Annual Benefits $ 311,885 $ 311 ,885
Average Annual Benefit $ 20,792 $ 20,792
Average Age 60.0 59.0
TERMINATED VESTED MEMBERS
Number 3 4
Annual Benefits $ 56,783 $ 87,127
Average Annual Benefit $ 18,928 $ 21,782
Average Age 42.6 43.5
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-- rl
ANNUAL REQUIRED CONTRIBUTION (ARC)
II
---rl
A. Valuation Date
October I. 20] ()
October 1. 2010
October I.. 20Uf)
d
II
'1
B. ARC to Be Paid During
Fiscal Year Ending 9/3012012 9/30/2012 9/30/20 I I
C. Assumed Date of Employer Contrib. 10/1 /201 ] Biweekly Biweekly
D. Annual Payment to Amortize I
I
Unfunded Actuarial Liability 1$ 2,054,091 $ 2,054,091 $ 1,902,222
I
I
,
E. Employer Normal Cost I 1.895,893 1,895,893 1. 931.395
F. ARC if Paid on the Valuation
Date: D+E 3.949,984 3,949,984 3.833,6] 7
G. ARC Adjusted for Frequency of
Payments 3,949,984 4,107,983 3,984,010
H. ARC as % of Covered Payroll 32.55 0/0 33.85 0' i 'I 7S 0/0
iO I
1. Assumed Rate of Increase in Covered N/A %1 I
Payroll to Contribution Year N/A % N;A%II
I
,
.1
J. Covered Payroll for Contribution Year 12,592,795 * 12,592,795 * 12,577,637 * I
I
i
i
K. ARC for Contribution Year: H x J 4,098,955 4,262,661 3,997. ] 73 .j
I
L. Estimate of State Revenue in II
II
Contribution Year 465,087 465,087 465,OR7
1.1
J
I
M. Required Employer Contribution (REe) .1
g
in Contribution Year 3,633,868 3,797,574 3,532.086 n
"
Ii
Ii
"
I
N. REC as % of Covered Payroll in I
Contribution Year: M -7- J 28.86 % 30.16 0/0 28.08 %
* Estimated payroll for the year per the City's Finance Department.
~"D~
7
I ACTUARIAL VALUE OF BENEFITS AND ASSETS I
A. Valuation Date October 1, 2010 October 1, 2009
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 51,530,350 $ 51,735,425
b. Vesting Benefits 2,628,219 2,518,288
c. Disability Benefits 2,823,092 2,959,327
d. Preretirement Death Benefits 934,789 958,277
e. Return of Member Contributions 98,024 142,361
f. Total 58,014,474 58,313,678
2. Inactive Members
a. Service Retirees & Beneficiaries 41,264,959 37,424,949
b. Disability Retirees 2,787,964 2,842,188
c. Terminated Vested Members 514,713 819,746
d. Total 44,567,636 41,086,883
3. Total for All Members 102,582,110 99,400,561
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25 81,957,204 78,055,403
D. Actuarial Value of Accumulated Plan
Benefits per F ASB No. 35 70,670,498 65,849,052
E. Plan Assets
1. Market Value 44,363,165 39,319,885
2. Actuarial Value 48,129,593 46,116,985
F. Unfunded Actuarial Accrued
Liability: C - E2 33,827,611 31,938,418
G. Actuarial Present Value of Projected
Covered Payroll 94,279,971 97,808,454
H. Actuarial Present Value of Projected
Member Contributions 6,599,598 6,846,592
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ENTRY AGE NORMAL METHOD
CALCULATION OF EMPLOYER NORMAL COST
A. Valuation Date October 1 , 2010 October 1, 2009
I
B. Normal Cost for I
!
1. Service Retirement Benefits $ 1,983,777 $ 2,033,274
2. Vesting Benefits 272,081 279,629
3. Disability Benefits 237,822 244,319
4. Preretirement Death Benefits 56,636 58,564
5. Return of Member Contributions 72,571 76,508
,.--- .--------
6. Total for Future Benefits 2,622,887 2,692,294
7. Assumed Amount for Administrative
Expenses ~ J 22,423 -..... J 16,759
8. Total Normal Cost 2.745,310 2,809,053
C. Expected Member Contribution 849,417 877,658
D. Employer Normal Cost: B8-C J ,895,893 I 1,931,395
,
I
E. Employer Normal Cost as a % of
Covered Payroll J 5.62% J 5.40%
i
~DC
9
LIQUIDATION OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY
IA. UAAL Amortization Period and Payments I
Original UAAL Current UAAL
Amortization
Date Period Years
Established (Years) Amount Remaining Amount Payment
10/1/98 30 $ 1,331,353 18 $ 1,454,485 $ 109,260
10/1/99 30 1,656,722 19 1,807,930 130,829
1011/00 30 185,619 20 200,518 14,015
10/1/01 30 46,601 21 50,488 3,417
10/1/04 30 1,166,935 24 1,265,798 78,691
1011105 30 2,985,574 25 3,220,186 195,281
1011/05 30 13,646,165 25 14,718,504 892,572
10/1/06 30 2,307,394 26 2,471,831 146,442
10/1/07 30 16,404 27 17,373 1,007
10/1108 30 3,582,504 28 3,726,689 211,563
10/1/09 30 3,419,100 29 3,489,239 194,250
1011110 30 1,404,570 30 1,404,570 76,764
$ 31,748,941 $ 33,827,611 $ 2,054,091
B. Amortization Schedule
The VAAL 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
Year Expected UAAL
2010 $ 33,827,611
2011 34,315,421
2012 34,753,500
2013 35,134,339
2014 35,449,667
2015 35,690,405
2020 35,391,372
2025 31,258,161
2030 21,495,477
2035 4,935,004
2037 -
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ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality. employment turnover, Investment mcome. expenSt:~
salary increases. and other factors have been based on long range trends and expectations. /\clual
experience can vary from these expectations. The variance IS measured by the gain and loss for the penod
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) fix
the past year is computed as follows:
I A. Derivation ofthe Current VAAL I
l. Last Year's VAAL $ 31,938,418
2. Last Year's Employer Normal Cost 1.931.395
3. Last Year's Contributions 4.153.603
4. Interest at the Assumed Rate on:
a. 1 and 2 for one year 2,709,585
b. 3 from dates paid 2,754
c. a-b 2,706,831
5. This Year's Expected VAAL:
1 + 2 - 3 + 4c 32,423,041
6. This Year's Actual VAAL (Before any
changes in benefits and assumptions) 33,827,611
7. Net Actuarial Gain (Loss): (5) - (6) ( 1,404,570)
8. Gain (Loss) due to investments (2,604,) 92)
9. Gain (Loss) due to other sources 1,199,622
Net actuarial gains in previous years are detailed in the table on the next page.
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11
Change in Employer
Year Ended Cost Rate * Gain (Loss)
12/31/82 (0.46) % $ (56,551)
12/31/83 (1.92) (265,213)
12/31/84 0.04 6,977
12/31/85 0.85 185,443
12/31/86 0.59 158,678
12/31/87 (1.67) (516,444)
12/31/88 (0.74) (254,892)
12/31/89 0.52 206,590
9/30/90 (0.24) (94,609)
9/30/91 0.74 286,744
9/30/92 (0.35) (142,237)
9/30/93 1.34 564,365
9/30/94 (2.57) (1,370,604)
9/30/95 1.01 574,379
9/30/96 1.56 938,153
9/30/97 1.60 1,008,362
9/30/98 2.85 1,694,077
9/30/99 0.88 568,386
9/30/00 3.16 1,596,887
9/30/01 (3.92) (1,978,307)
9/30/02 (9.58) (5,069,210)
9/30/03 (3.22) (1,870,014)
9/30/04 (2.75) (1,615,637)
9/30/05 ( 1.85) (1,083,369)
9/30/06 ( 1.46) (2,307,394)
9/30/07 (0.02) (16,404)
9/30/08 (1.84) (3,582,504)
9/30/09 (1.54) (3,419,100)
9/30/10 (0.66) (1,404,570)
* Before 9/30/06, change in Employer Normal Cost.
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Actuarial Gain (+) or Loss (-I
$8
$6
$4
$2
$0
($2)
~ ($4)
:S ($6)
~ ($8)
($10)
($12)
($14)
($16)
($18)
($20)---..----..- ... ..__M_ ....
'V ~'? I). <L":l <L1o '\ 'b <LO) ~ " :'v :? I). ~ Ie (\ 'b ~ ~ " :'v :? I). ~ Ie (\ ~ ~ ...,
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
'\. " " " " " " "
\
\.
Plan Year End
- Gain or Loss -+- Cumulative
$6
$4
$2
$0
($2)
($4) ~
($6) :S
($8) ~
($10)
($12)
($14)
($16)
($18)
($20)
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Change in Employer Cost Rate
22%
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
13
22%
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan
~ ~ ~ ~ ~ ~ ~ ~ ~ ..... ~ ~ ~ ~ ~ ~ ~ ~ ~ , ~ ~ ~ ~ b ~ ~ ~ ~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"""" ..,
Plan Year End
- Employer Cost Rate - Cumulative
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:
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Investment Return Salary Increases
Year Ending Actual Assumed Actual Assumed
12/31/1977 '1,.-:';' " " '" it ,.
If (l
12/31/1978 R ~ 0 Il 11.3"0 (2 VIS f
12/31/1979 7.:'
12/31/1980 S.O .: i' 21.2 I U (2 yrsl
12/3 1/1981 S.2 iI n.h ' ()
12/31/1982 9.3 '(1 14.6 l)
12/3I/1983 9.0 7 Ii 14.1< (j
12/31/1984 11.5 10.U 6.X 10.0
12/3I/1985 16.8 IO.n 18.6 10.0
12/31/1986 17.6 10.0 16.3 lU.O
12/31/1987 4.4 10.0 15..~ ]0.0
12/31/1988 9.0 10.U 67 10.0
12/31/1989 15.4 10.0 12.4 J () 0
9/30/1990 (9 mos.) 1.7 'I " 6.1 10.0
9/30/1991 11.6 10.0 2.5 10.n
9/30/1992 9.7 10.n 54 lllll
9/30/1993 11.9 lo.n .:; I I D.n
9/30/1994 3.5 ,'i.O 7.0 () .~
9/30/1995 12.9 1<.0 1<." " X
9/30/1996 10.8 8.0 4.9 h ~
9/30/1997 13.1 S.O 1<7 * tJ '
9/30/1998 12.9 R.O 4.6 fl. _~
9/30/1999 13.5 S.) 10.9 6. i
9/30/2000 12.1 R.5 34 h. ~
9/30/2001 7.5 S.'. 6.0 5(~
9/30/2002 (4.7) SS 172 " l)
9/30/2003 2.8 85 9.5 "9
9/30/2004 2.6 S.'i 11.5 h.U
9/30/2005 3.0 S.5 9.6 h.O
9/30/2006 5.7 S.O 14.4 n.O
9/30/2007 9.9 X.O '17 61
9/30/2008 4.2 R.O 13.1 h 1
9/30/2009 2.8 8.U 9.3 6.]
9/30/2010 3.0 X.O 0.2 hi
. .
Averages 8.2 0/0 9.6 %
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.
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15
History oflnvestment Return Based on Actuarial Value of Assets
18%
18%
13% 13%
8% 8%
3% 3%
-2% -2%
-7% -7%
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~'~~I~~~~~~~~~~~~~~~
Plan Year End
~ Actual ~ Assumed
History of Salary Increases
25% 25%
15% 15%
20% 20%
10% 10%
5% 5%
0% 0%
,.v~.v'b~'b~'b~'b~.v'b~.v~'b~~'b~.v'b\*,~*, \*'\*''''01 *,b-Cl*'''Cl*'~Cl*'\*''bCl*'\~~Cl ~\~\~"'Cl~~~"Cl~~Cl ~\~'bCl ~\\'~
Plan Year End Compared to Previous Year
--- Actual ~ Assumed I
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II
Ii
Actual (A) Compared to Expected (E) Decrements Ii
II
Among Active Employees
~ I
I!
Number Ii
Added Service & Active 'I
I
During DROP Disability Terminations Members i
Year Year Retirement Retirement Death Vested Other Totals End of .1
Ended A E A E A E A E A A A E Year II
I
9/30/2002 14 17 1 1 0 0 0 0 i. ]5 ]6 8 Ill) Ii
jl
9/30/2003 14 9 6 4 0 0 () 0 I 2 -"\ t) 124 n
n
il
9/30/2004 8 23 14 0 0 () 0 () 2 "7 9 9 109 H
11
9/30/2005 21 14 1 1 0 () 0 0 j 10 13 8 lIt! a
9/30/2006 25 10 3 2 0 0 0 0 I 6 , L} 131 !I
l!
9/30/2007 17 4 3 .) 0 0 0 0 0 1 I 11 144 J.
9/30/2008 14 9 2 1 0 () 0 0 () 7 7 12 ]49 Ii
"
"
9/30/2009 8 3 3 Ii
6 7 0 () 0 () (\ \ 1 j 151 i;
,.
9/30/2010 5 X 4 2 () I) 0 0 i \ 4 11 148 Ii
'"
9/30/2011 4 0 10 Ii
lj
9 Yr Totals * 126 100 37 21 0 0 0 0 9 54 63 88 il
* Totals are through current Plan Year only
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17
SUPPLEMENTAL PENSION DISTRIBUTION
Cumulative Actuarial Gains (Losses)
Balance at
Year Ending Beginning Gain (Loss) Supplemental Balance at
9/30 of Year Interest for Year Payment End of Year
2000 $ 0 $ 0 $ 1,596,887 $ 0 $ 1,596,887
2001 1,596,887 135,735 (1,978,307) 0 (245,685)
2002 (245,685) (20,883) (5,069,210) 0 (5,335,778)
2003 (5,335,778) (453,541) (1,870,014) 0 (7,659,333)
2004 (7,659,333) (651,043) (1,615,637) 0 (9,926,013)
2005 (9,926,013) (843,711) (1,083,369) 0 (11,853,093)
2006 (11,853,093) (948,247) (2,307,394) 0 (15,108,735)
2007 (15,108,735) (1,208,699) (16,404) 0 (16,333,838)
2008 (16,333,838) (1,306,707) (3,582,504) 0 (21,223,049)
2009 (21,223,049) (1,697,844) (3,419,100) 0 (26,339,992)
2010 (26,339,992) (2,107,199) (1,404,570) 0 (29,851,762)
Under certain conditions, participants in payment status can receive a supplemental distribution per Section
18-177 of the Plan. The cumulative actuarial gain for plan years beginning after 9/30/1999 must be a positive
amount for a supplemental payment to occur.
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I RECENT HISTORY OF VALVA TION RESULTS -"""':-'11
Emolover Normal Cost II
Number of I I
Active Inactive r , !!
Valuation Members Members Covered Actuarial Value u;, oj ii
Date Annual Pavroll of Assets UFAAL Amount Payroll I
1/1 /77 67 I $ 903.341 S ')]4,988 $ \ 7.80h I
'11 l) 4 I 'I, " I
I
1/1/79 60 I 935,532 71n.2r 341,930 4iU6~) " i :1
11 1 /81 67 2 l,Ioo,537 I ~022..3 7~ 679,836 '-:(U53 oli.: ii
H
1/1/82 71 4 1,542.723 1.235.501 h7X,314 162.821 10 S" ii
Ii
111/83 75 4 1.768.419 ] .60h.141 lQ')234 11 D4 tl
I,
1/1/84 76 6 I 2,000,834 1.992,244 75.269 237.5T: 1] h' II
"
1/1/85 78 8 2.109,424 2506.277 09,847 255.451 12 i "
"
111186 88 8 2.700,315 3,239.052 63,709 n 7.5 5'7 1 ] .c ( Ii
1/1/87 97 10 3,306.137 4.191.766 55,706 3h3.436 10.')<1 I'
ii
Ii
1/1/88 10] 12 3.830.624 4.791.236 47.074 4 '7:'; 126 124\ :1
"
1/1/89 115 14 4.394.160 5,806.225 35,670 ,)74.l67 ]31: ~ ;
1/1/90 121 15 5.111.017 7,334224 20,768 67224h 1.3 H
I"
10/1/90 119 15 5.214,104 X.l nO,443 II 696.652 13 -,h L,
10/1/91 118 In 5.288,71:'; 9.961.491 I) /)50.512 1 :?J( d
j'
10/1/92 121 19 5.627.95h 11.619.301 Ii heh 12(! 121, ! U
ii
10/1/93 124 25 5,493,434 I3,670.A51 1.1 67U,U21 12.21 Ii
10/1/94 114 29 5,430,866 14.n29,045 II S!7 74" 1 " Of,
10/1/95 121 30 5.957,17" In.9h7.AI7 841.331' 14. : "
, II i'
10/1/96 127 34 6,298,250 19.439.074 0 820.603 13.u, Ii
q
10/1/97 130 47 6.329.65 ] 22.898.830 () S Il.hOh 12.x lj
Ii
10/1/98 121 48 6,225,413 25,462,061 1,331,353 715.944 11.51! lj
I:
I'
10/1/99 128 49 7,121,387 28,956,h5 ] 1,358,222 "62.124 1O~11 i;
i'
10/1/00 124 56 6,907,740 32.559,614 3,279,968 464.164 6.'1' "
Ii
10/1/01 122 75 6.555,316 34.331,760 3,358,086 726,204 11.OX ,!
i!
OJ
10/1/02 119 75 7.382,088 32. 133.373 3,371,705 1.538.895 20.8'\ "
;,
I 1;
10/1/03 124 81 7,917,021 33,206,438 3,374,199 1.935,704 24.4" Ii
n
] 0/1/04 109 94 7,207.008 34,49.5,794 4,580,926 2.043.434 2iU i'
"
10/1/05 116 96 7,836,390 35.445.474 21,245,873 1.238.339 15.iW Ii
IJ
10/1/06 131 100 9,302,405 37.691,909 23,776,358 1 .441.3 P 154lj Ir
!'
10/1/07 144 103 10,296.812 41.981.125 24,087,631 I 587 552 1') 4.' Ij
I'
iJ
10/1 /08 149 104 11,532.888 44,277,726 28,071,917 1.77Hl31 15 ~x f~
II
;,
10/1/09 151 107 12,537,968 46.116,985 31,938,418 ],1.)31.395 15.41 "
I,
10/1/10 148 109 12,134,525 48.129,593 33,827,61 I 1,895,893 15JL' Ii
I Ii
GRS
~
RECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
End of Required Contributions
Year To Employer & State Estimated State Net Employer Actual Contributions
Valuation Which
Valuation %of %of %of
Applies Amount Payroll Amount Payroll Amount Payroll Employer State Total
1/1/84 12/31/84 $ 269,484 13.47 % $ 79,017 3.95 % $ 190,467 9.52 % $ 173,480 $ 96,004 $ 269,484
1/1/85 12/31/85 288,620 13.68 96,004 4.55 192,616 9.13 178,638 109,982 288,620
1/1/86 12/31/86 363,893 13.48 109,982 4.07 253,911 9.40 227,719 136,694 364,413
1/1/87 12/31/87 405,979 12.28 136,694 4.13 269,285 8.15 228,299 177,681 405,980
1/1/88 12/31/88 531,306 13.87 177,681 4.64 353,625 9.23 335,812 195,494 531,306
1/1/89 12/31/89 635,650 14.47 195,494 4.45 440,156 10.02 411,568 224,082 635,650
1/1/90 12/31/90 742,566 14.53 224,082 4.38 518,484 10.14 518,484 240,948 759,432
10/1 /90 9/30/91 784,138 15.04 240,948 4.62 543,190 10.42 543,190 252,430 795,620
10/1/91 9/30/92 732,204 13.84 252,430 4.77 479,774 9.07 477,465 254,739 732,204
10/1/92 9/30/93 761,028 13.52 254,739 4.52 506,289 9.00 493,999 267,029 761,028
10/1/93 9/30/94 737,276 13.42 267,029 4.86 470,247 8.56 459,026 278,250 737,276
10/1/94 9/30/95 899,826 16.57 270,088 4.97 629,738 11.60 583,113 316,713 899,826
10/1/95 9/30/96 925,780 15.54 316,713 5.32 609,067 10.22 608,067 348,374 956,441
10/1/96 9/30/97 888,999 14.12 348,374 5.53 540,625 8.59 527,274 403,134 930,408
10/1/97 9/30/98 879,252 13.89 403,134 6.37 476,118 7.52 451,378 427,874 879,252
10/1/98 9/30/99 863,996 13.88 427,874 6.87 436,122 7.01 426,129 427,874 854,003
10/1/99 9/30/00 920,372 12.92 427,874 6.00 492,498 6.92 490,425 429,945 920,370
10/1/00 9/30/01 742,646 10.75 429,945 6.22 312,701 4.53 312,701 430,572 743,273
10/1/01 9/30/02 1,053,863 16.08 443,454 6.77 610,409 9.31 610,409 443,454 1,053,863
10/1/02 9/30/03 1,929,458 26.14 443,454 6.01 1,486,004 20.13 1,486,004 465,087 1,951,091
10/1/03 9/30/04 2,343,601 29.60 465,087 5.87 1,878,514 23.73 1,878,514 465,087 2,343,601
10/1/04 9/30/05 2,571,109 35.67 465,087 6.45 2,106,022 29.22 2,106,022 465,087 2,571,109
10/1/05 9/30/06 2,808,957 35.85 465,087 5.93 2,343,870 29.92 2,343,870 465,087 2,808,957
10/1/06 9/30/07 3,030,547 32.58 465,087 5.00 2,565,460 27.58 2,685,841 465,087 3,150,928
10/1/07 9/30/08 3,236,241 31.43 465,087 4.52 2,771,154 26.91 2,771,154 465,087 3,236,241
10/1/08 9/30/09 3,710,169 32.17 465,087 4.03 3,245,082 28.14 3,245,082 465,087 3,710,169
10/1/09 9/30/1 0 4,153,603 33.13 465,087 3.71 3,688,516 29.42 3,688,516 465,087 4,153,603
10/1/09 9/30/11 3,997,173 31.78 465,087 3.70 3,532,086 28.08 na na na
10/1/10 9/30/12 4,262,661 33.85 465,087 3.69 3,797,574 30.16 na na na
.......
\0
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuation Methods
Actuarial Cost Method - Normal cost and the allocation of benefit values between serVIce rendered
before and after the valuation date were determined using an Individual Entry-Age Actuarial Cost
Method having the following characteristics
(i) the annual normal cost for each individual active member, payable from the date of
employment to the date of retirement, is sufficient to accumulate the value of the member's
benefit at the time of retirement:
(ii) each annual normal cost is a constant percentage of the member's year by year projected
covered pay.
Actuarial gains/(losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability.
Financing of Unfunded Actuarial Accrued Liabilities - Unfunded Actuarial Accrued Liabilities (full
funding credit if assets exceed liabilities) were amortized 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 phase in the difference between the expected
actuarial value and actual market value of assets at the rate of 20% per year. The Actuarial Value of
Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80%
of the Market Value of plan assets and whose upper limit is 120% of the Market Value of plan assets.
During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will
tend to be less than Market Value. During periods when investment performance is less than assumed
rate, Actuarial Value of Assets will tend to be greater than Market Value.
Valuation Assumptions
The actuarial assumptions used in the valuation are shown in this Section.
Economic Assumptions
The investment return rate assumed in the valuation is 8.0% per year, compounded annually (net after
investment expenses).
The Wage Inflation Rate assumed in this valuation was 4% per year. The Wage Inflation Rate IS
defined to be the portion of total pay increases for an individual that are due to macro economic forces
including productivity, price inflation, and labor market conditions. The wage inflation rate does not
include pay changes related to individual merit and seniority effects.
The assumed real rate of return over wage inflation is defmed to be the portion of total investment
return that is more than the assumed wage inflation rate. Considering other economic assumptions, the
8% investment return rate translates to an assumed real rate of return over wage inflation of 4%.
The rates of salary increase are as follows:
GRS
21
% Increase in Salary
Age Merit and Base Total
Seniority (Economic) Increase
20 2.5% 4.0% 6.5%
25 2.5% 4.0% 6.5%
30 2.5% 4.0% 6.5%
35 2.5% 4.0% 6.5%
40 1.5% 4.0% 5.5%
45 1.0% 4.0% 5.0%
50 1.0% 4.0% 5.0%
55 1.0% 4.0% 5.0%
Projected service retirement benefits are increased by 7% to allow for for the inclusion of unused sick and
vacation pay in average final earnings.
For purposes of financing the unfunded liabilities, total payroll is assumed to grow at 4% per year. The
most recent ten-year average is over 4.0%.
Demographic Assumptions
The mortality table was the 1983 Group Annuity Mortality Table for males and females.
Sample
Attained
Ages
50
55
60
65
70
75
80
Probability of
Dying Next Year
Men Women
0.39 % 0.16 %
0.61 % 0.25 %
0.92 % 0.42 %
1.56 % 0.71 %
2.75 % 1.24 %
4.46 % 2.40 %
7.41 % 4.30 %
Future Life
Expectancy (years)
Men Women
29.23 34.96
24.87 30.28
20.68 25.71
16.73 21.33
13.22 17.17
10.20 13.42
7.68 10.24
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 (75% of deaths are assumed to be service-connected).
For disabled retirees, the regular mortality tables are set forward 5 years in ages to reflect impaired
longevity.
The rate of retirement used to measure the probability of eligible members retiring under early retirement
is 5% per year. For normal retirement these rates are as follows:
GRS
Number of\' ears
After First Eligibility
for Normal Retirement
Probability of
Normal Retirement
I.{I) 0."
n
(} J"
\; (I'j)
() 11'11
,~
II "'0
":;j
(, {)'o
(,
(i 0'0
1 ()() 0/0
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
Ages
20
25
30
35
40
45
50
55
% of Active Members
Separating Within Next Year
20.0%
17.0%
13.2%
8.0%
0.0%
0.0%
0.00/0
0.0%
Rates of disability among active members (90% of disabilities are assumed to be service connected).
Sample
Ages
20
25
30
35
40
45
50
55
% Becoming Disabled
within Next Year
0.14 %
0.15 %
0.18 %
0.23 %
0.30 %
0.51 (JIO
1.00 %
1.55 %
GRS
Administrative &
Investment Expenses
Benefit Service
Decrement Operation
Decrement Timing
Eligibility Testing
Forfeitures
Incidence of
Contributions
Liability Load
Marriage Assumption
Normal Form of Benefit
Pay Increase Timing
23
Miscellaneous and Technical Assumptions
The investment return assumption is intended to be the return net of
investment 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 payable.
Disability and mortality decrements operate during retirement eligibility.
Decrements of all types are assumed to occur at the beginning of the year.
Eligibility for benefits is determined based upon the age nearest birthday and
service nearest whole year on the date the decrement is assumed to occur.
For vested separations from service, it is assumed that 0% of members
separating will withdraw their contributions and forfeit an employer
financed benefit. It was further assumed that the liability at termination is
the greater of the vested deferred benefit (if any) or the member's
accumulated contributions.
Employer contributions are assumed to be made biweekly effective October
1, 2010. Member contributions are assumed to be received continuously
throughout the year based upon the computed percent of payroll shown in
this report, and the actual payroll payable at the time contributions are made.
Projected normal and early retirement benefits are loaded by 7% to allow for
the inclusion of unused sick and vacation pay in final average earnings.
100% of males and 100% of females are assumed to be married for purposes
of death-in-service benefits. Male spouses are assumed to be three years
older than female spouses for active member valuation purposes.
A 10-year certain and life annuity is the normal form of benefit.
Middle of fiscal year. This is equivalent to assuming that reported pays
represent amounts paid to members during the year ended on the valuation
date.
GRS
Actuarial Accrued Liability
(AAL)
Actuarial Assumptions
Actuarial Cost Method
Actuarial Equivalent
Actuarial Present Value
(APV)
Actuarial Present Value of
Future Benefits (APVFB)
Actuarial Valuation
Actuarial Value of Assets
Amortization Method
GLOSSAR'
The difference between the Actuarial Present Value or Future Benefit,
and the Actuarial Present Value of Future Normal Costs.
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.
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.
Of equal Actuarial Present Value, determined as of a given date and based
on a given set of Actuarial Assumptions.
The amount of funds required to provide a payment or series of payments
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.
The Actuarial Present Value of amounts which are expected to be paid at
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.
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).
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).
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
GRS
Amortization Payment
Amortization Period
Annual Required
Contribution (ARC)
Closed Amortization Period
Employer Normal Cost
Equivalent Single
Amortization Period
Experience GainILoss
Funded Ratio
GASB
GASB No. 25 and
GASB No. 27
25
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.
That portion of the plan contribution or ARC which is designed to pay
interest on and to amortize the Unfunded Actuarial Accrued Liability.
The period used in calculating the Amortization Payment.
The employer's periodic required contributions, expressed as a dollar
amount or a percentage of covered plan compensation, determined under
GASB No. 25. The ARC consists of the Employer Normal Cost and
Amortization Payment.
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.
The portion of the Normal Cost to be paid by the employer. This is
equal to the Normal Cost less expected member contributions.
For plans that do not establish separate amortization bases (separate
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.
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.
The ratio of the Actuarial Value of Assets to the Actuarial Accrued
Liability.
Governmental Accounting Standards Board.
These are the governmental accounting standards that set the accounting
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.
GRS
Normal Cost
Open Amortization Period
Unfunded Actuarial Accrued
Liability
Valuation Date
Ihc annual "psI a,"sl,~ncd under the Actuanal /. ost iVlethod. I" ihe ,-'Wi
plan veal
An open amoliization penod IS one which IS used to detenmnt'
Amortization Payment but which does not change over time In otlK~i
words, if the initial period is set as 30 years, the same 30-year period
used in determining the Amortization Period each year. In theory, It iHi
Open Amortization Period is used to amortize the tJnfunded Actuanal
Accrued Liability, the UAAL will never completely disappear. but II Ii
become smaller each year. either as a dollar amount or in relation (;
covered payroll
The difference between the Actuarial Accrued Liability and Actuanal
Value of Assets.
The date as of which the Actuarial Present Value of Future Benefits arc
determined. The benefits expected to be paid in the future are discounted
to this date.
GRS
SECTION C
PENSION FUND INFORMATION
GRS
GRS
27
SUMMARY OF ASSETS
September 30
Item 2010 2009
A. Cash and Cash Equivalents (Operating Cash) $ 81,380 $ 12,479
B. Receivables:
1. Member Contributions $ $
2. Employer Contributions 3,688,516 3,245,082
3. State Contributions
4. Buy-Backs 18,398 38,631
5. Receivable for Securities Sold 281,119 266,766
6. Total Receivables $ 3,988,033 $ 3,550,479
C. Investments
1. Short-Term Investments $ $
2. Domestic Equities 15,784,213 18,768,495
3. International Equities 12,008,954 6,271,872
4. Domestic Fixed Income 15,631,912 14,456,738
5. International Fixed Income
6. Alternative Investments 3,078,053 1,416,658
7. Private Equity
8. Total Investments $ 46,503,132 $ 40,913,763
D. Liabilities and Reserves
1. Benefits Payable $ $
2. Accrued Expenses and Other Payables (174,601) (74,753)
3. Total Liabilities and Reserves $ (174,601) $ (74,753)
E. Total Market Value of Assets Available for Benefits $ 50,397,944 $ 44,401,968
F. Reserves
1. State Contribution Reserve $ (55,032) $ (109,354)
2. DROP Accounts (4,603,461) (3,957,870)
3. Supplemental Benefit Reserve (1,376,286) (1,014,859)
$ (6,034,779) $ (5,082,083)
G. Market Value Net of Reserves $ 44,363,165 $ 39,319,885
H. Allocation of Investments
1. Short Term Investments 0.00% 0.00%
2. Domestic Equities 33.95% 45.88%
3. International Equities 25.82% 15.33%
4. Domestic Fixed Income 33.61 % 35.33%
5. International Fixed Income 0.00% 0.00%
6. Alternative Investments 6.62% 3.46%
7. Private Equity 0.00% 0.00%
8. Total Investments 100.00% 100.00%
GRS
PENSION FUND DISBURSEMENTS & INCOME
September 30
Item 2010 2009
A. Market Value of Assets at Beginning of Year S 44,40 I. 96X '" 43,6ll. I
,-+
B. Revenues and Expenditures
1. Contributions
a. Employee Contributions 51 J ,014,693 S 850,4(j3
b. Employer Contributions 3,688,516 3,245,082
c. State Contributions 641,483 698,135
d. Buy Back Contributions 40,124 25.499
e. Health Subsidy Contributions J 21 ,364 J23.847
f. Increase in Value of Future Buy Backs (20,233) (6,581)
g. Total $ 5,485,947 $ 4.936,475
2. Investment Income
a. Interest, Dividends, and Other Income $ 69 1; 4"'"
f -.,
b. Net Realized and Unrealized Gains/(Losses) 4,923,271 (87,156)
c. Investment Expenses (344,259) (253,716 )
d. Net Investment Income $ 4,579,081 $ (340,399)
3. Benefits and Refunds
a. Refunds $ (38,620) $ (29,890 )
b. Regular Monthly Benefits (3,355,163) (3,448,170)
c. DROP Distributions (552,787) (204,858 )
d. Total $ (3,946,570) $ (3,682,918)
4. Administrative and Miscellaneous Expenses $ (122,482) 'j; o 22.364l
5. Transfers $ S
C. Market Value of Assets at End of Year $ 50,397,944 $ 44,401.968
D. Reserves
1. Supplemental Benefit Reserve $ (1,376,286) $ (1,014,859)
2. State Contribution Reserve (55,032) (109,354)
3. DROP Accounts (4,603,461) (3,957,870)
4. Total Reserves $ (6,034,779) $ (5,082,083)
E. Market Value Net of Reserves $ 44,363,165 $ 39,319,885
GRS
ACTUARIAL VALUE OF ASSETS
~ Valuation Date - September 30 2009 2010 2011 2012 2013
r:.n
A. Actuarial Value of Assets Beginning of Year $48,675,119 $ 51,199,068 $ - $ - $
B. Market Value End of Year 44,401,968 50,397,944
C. Market Value Beginning of Year 43,611,174 44,401,968
D. Non-Investment! Administrative Net Cash Flow 1,131,193 1,416,895
E. Investment Income
El. Actual Market Total: B-C-D (340,399) 4,579,081
E2. Assumed Rate of Return 8.00% 8.00% 8.00% 8.00% 8.00%
E3. Assumed Amount of Return 3,939,257 4,152,601
E4. Amount Subject to Phase-In: E1-E3 (4,279,656) 426,480
F. Phase-In Recognition of Investment Income
Fl. Current Year: 0.2 x E4 (855,931 ) 85,296
F2. First Prior Year (2,275,993) (855,931) 85,296
F3. Second Prior Year 496,332 (2,275,993) (855,931) 85,296
F4. Third Prior Year (53,896) 496,332 (2,275,993) (855,931 ) 85,296
F5. Fourth Prior Year 142,987 (53,896) 496,332 (2,275,993) (855,931)
F6. Total Phase-Ins (2,546,501) (2,604,192) (2,550,296) (3,046,628) (770,635)
G. Actuarial Value of Assets End of Year
Gl. Preliminary Actuarial Value of Assets: $51,199,068 $ 54,164,372 $ - $ - $
G2. Upper Corridor Limit: 120%*B 53,282,362 60,477,533
G3. Lower Corridor Limit: 80%*B 35,521,574 40,318,355
G4. Funding Value End of Year 51,199,068 54,164,372
G5. Less: State Contribution Reserve (109,354) (55,032)
G6. Less: DROP Account Balances (3,957,870) (4,603,461)
G7. Less: Supplemental Benefit Reserve (1,014,859) (1,376,286)
G8. Final Funding Value End of Year 46,116,985 48,129,593
H. Difference between Market & Actuarial Value $(6,797,100) $ (3,766,428) $ - $ - $
I. Actuarial Rate of Return 2.83% 2.98% 0.00% 0.00% 0.00%
J. Market Value Rate of Return -0.77% 10.15% 0.00% 0.00% 0.00%
K. Ratio of Actuarial Value to Market Value 115.31 % 107.47% 0.00% 0.00% 0.00%
tv
\0
RECONCILIA nON OF DROP ACCOUNTS
Value at beginning of year ) \957.870
Payments credited to accounts 857,913
Investment Earnings credited 308,658
Withdrawals from accounts .- 520,980
Value at end of year 4,603.461
GRS
31
INVESTMENT RATE OF RETURN
The investment rate of return has been calculated on the following bases:
Basis 1 -
Interest, dividends, realized gains (losses) and unrealized appreciation
(depreciation) divided by the weighted average of the market value of the fund
during the year. This figure is normally called the Total Rate of Return.
Basis 2 -
Investment earnings recognized in the Actuarial Value of Assets divided by the
weighted average of the Actuarial Value of Assets during the year.
Investment Rate of Return
Year Ended Basis 1 Basis 2
12/31/82 16.4 % 9.3 %
12/31/83 12.3 9.0
12/31/84 11.9 11.5
12/31/85 23.0 16.8
12/31/86 19.0 17.6
12/31/87 0.3 4.4
12/31/88 10.4 9.0
12/31/89 20.6 15.4
9/30/90 (9 mos.) (1.9) 1.7
9/30/91 14.4 11.6
9/30/92 10.0 9.7
9/30/93 12.6 11.9
9/30/94 1.1 3.5
9/30/95 19.1 12.9
9/30/96 12.8 10.8
9/30/97 20.2 13.1
9/30/98 10.1 12.9
9/30/99 10.5 13.5
9/30/00 9.8 12.1
9/30/01 (9.1) 7.5
9/30/02 (9.2) (4.7)
9/30/03 16.1 2.8
9/30/04 8.3 2.6
9/30/05 10.6 3.0
9/30/06 6.9 5.7
9/30/07 13.1 9.9
9/30/08 (15.1) 4.2
9/30/09 (0.8) 2.8
9/30/10 10.2 3.0
Average Compounded Rate of
Return for Number of Years
Shown 8.8 % 8.3 %
Average Compounded Rate of
Return for Last 5 Years 2.3 % 5.1 %
GRS
GRS
SECTION D
FINANCIAL ACCOUNTING INFORMATION
GRS
GRS
32
I FASB NO. 35 INFORMATION I
A. Valuation Date October I, 20 I 0 October I, 2009
B. Actuarial Present Value of Accumulated
Plan Benefits
1. Vested Benefits
a. Members Currently Receiving Payments $ 44,052,923 $ 40,267,137
b. Terminated Vested Members 514,713 819,746
c. Other Members 24,719,841 23,064,003
d. Total 69,287,477 64,150,886
2. Non-Vested Benefits 1,383,021 1,698,166
3. Total Actuarial Present Value of Accumulated
Plan Benefits: Id + 2 70,670,498 65,849,052
4. Accumulated Contributions of Active Members 5,299,542 4,904,175
C. Changes in the Actuarial Present Value of
Accumulated Plan Benefits
I. Total Value at Beginning of Year 65,849,052 62,538,394
2. Increase (Decrease) During the Period
Attributable to:
a. Plan Amendment 0 0
b. Change in Actuarial Assumptions 0 0
c. Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period 8,768,016 6,993,576
d. Benefits Paid (3,946,570) (3,682,918)
e. Net Increase 4,821,446 3,310,658
3. Total Value at End of Period 70,670,498 65,849,052
D. Market Value of Assets 44,363,165 39,319,885
E. Actuarial Assumptions - See page entitled
Actuarial Assumptions and Methods
GRS
SCHEDULE OF FUNDING PROGRESS
(GASB Statement No. 25)
~
~
'J')
Actuarial Actuarial Accrued VAAL As %
Valuation Actuarial Value of Liability (AAL) - Unfunded AAL of Covered
Date Assets Entry Age (U AAL) Funded Ratio Covered Payroll Payroll
(a) (b) (b) - (a) (a) / (b) ( c ) (b - a) / r
.- ._. "'~-- ~.-._.-- ,- -- -~- --C' ,,~,- ._-. -"~'"'--- ~= ~'-._- -----==
10/1/1991 $ 9,961,491 $ 11,327,787 $ 1,366,296 87.9 % $ 5,288,735 25.S "'0
10/1/1992 11,619,301 13,177,747 1,558,446 88.2 5,627,956 27,7
10/1 /1993 13,670,651 15,280,714 1,610,063 89.5 5,493,434 29.3
10/1/1994 14,629,045 17,988,346 3,359,301 81.3 5,430,866 h 1.'>
10/1 /1995 16,967,617 19,789,584 2,821,967 85.7 5,957,175 rei
1 0/1 /1996 19,439,074 21,087,463 1,648,389 92.2 6,298,250 'I-.
m\; _
10/1/1997 22,898,830 24,413,410 1,514,580 93.8 6,329,651 ~; 1, t :
10/1/1998 25,462,061 25,932,365 470,304 98.2 6,225,413 - l>
10/1/1999 28,956,651 29,770,819 814,168 97.3 7.121,387
10/1/2000 32,559,614 33,726,879 L167,265 96.5 6,907,740 h ",1
10/1/2001 34,331,760 37,715,963 3,384,203 91.0 6,555,316 ~\ 1 l"
10/1/2002 32,133,373 40,604,148 8,470,775 79.1 7,382,088 1'+
10/1/2003 33,206,438 44,029,168 10,822,730 75.4 7,917,021 ;'6 "
10/1/2004 34,495,794 48,154,162 13,658,368 71.6 7,207,008 ,k9
10/1/2005 35,445,474 56,691,347 21,245,873 62.5 7,836,390 ,
10/1/2006 37,691,909 61,468,267 23,776,3513 61.3 9,302,405 ~ ~ '\ :~
10/1 /2007 41,981,125 66,068,756 24,087,631 63.5 10,296,812 233 q
10/1 /2008 44,277,726 72,349.643 28,071,917 61.2 11,532,888 :A3..;
] 0/1/2009 46,116,985 78,055,403 31,938,418 59.1 [2,537,968 '54 ,
10/1 /20 10 48,129,593 81,957,204 33,827,611 58.7 12,134,525 '\: JI
.~".-,.,~ ' . _."-~- .' ,"..- ~..,,'._._. ,~.- -~---'_.._'_._~ '.-,-, .- , --.,. -,-.--. _._.~.-"-_. - =.' ,.- '.--. ""
34
Year Ended Annual Required Actual Percentage
September 30 Contribution Contribution Contributed
1990 $ 742,566 $ 759,432 102.3 %
1991 784,138 795,620 101.5
1992 732,204 732,204 100.0
1993 761,028 761,028 100.0
1994 737,276 737,276 100.0
1995 899,826 899,826 100.0
1996 925,780 956,441 103.3
1997 888,999 930,408 104.7
1998 879,252 879,252 100.0
1999 863,996 854,003 98.8
2000 920,372 920,370 100.0
2001 742,646 743,273 100.1
2002 1,053,863 1,053,863 100.0
2003 1,929,458 1,951,091 101.1
2004 2,343,601 2,343,601 100.0
2005 2,571,109 2,571,109 100.0
2006 2,808,957 2,808,957 100.0
2007 3,030,547 3,150,928 104.0
2008 3,236,241 3,236,241 100.0
2009 3,710,169 3,710,169 100.0
2010 4,153,603 4,153,603 100.0
GRS
ANNUAL PENSION COST AND NET PENSION OBLIGATION
(GASB STATEMENT NO. 27\
Employer FYE September 30 .2011 .2010 ?009
Annual Required Contribution (ARC)* ~ 3.997.171, $ 4,153,603 $ 3,710.169
Interest on Net Pension Obligation (NPO) 113,316) (13,991 ) ( 14.720)
Adjustment to ARC (21,423) (22,42] ) (2'-Ui34)
Annual Pension Cost (APC) 4,005280 4,162,033 3,71lJ.2X3
Contributions made ** 4,153,603 3,71 0.169
Increase (decrease) in NPO ** X,430 'l.114
NPO at beginning of year (166,453) (174,883) ( Iln.997)
NPO at end of year ** ( 166,453 ) (J 74.883)
* Includes expected State contribution
** To be determined
THREE YEAR TREND INFORMATION
Fiscal Annual Pension Actual Percentage of Net Pension
Year Ending Cost (APe) Contribution APC Contributed Obligation
9/30/2008 $ 3,244,817 $ 3,236,241 99.7% $ ( 183,997)
9/30/2009 3,719,283 3,710,169 99.8% (174,883)
9/30/2010 4,162,033 4,153,603 99.8% (166,453)
c;RS
36
REQUIRED SUPPLEMENTARY INFORMATION
GASB Statement No. 25 and No. 27
The information presented in the required supplementary schedules was determined as part of the actuarial
valuations at the dates indicated. Additional information as of the latest actuarial valuation:
Valuation Date
October 1, 2010
Contribution Rates:
Employer (and State)
Plan Members
33.85%
7.00%
Actuarial Cost Method
Entry Age Normal
Amortization Method
Level percent of
payroll, closed
Remaining Amortization Period
30 years
Asset Valuation Method
5-year smoothed market
Actuarial Assumptions:
Investment rate of return
Proj ected salary increases
8.0%
5.0% to 6.5% depending
on age
4.0%
NA
Includes inflation and other general increases at
Cost of Living adjustments
GRS
------------------
_.......r<
SECTION E
MISCELLANEOUS INFORMATION
GRS
GRS
37
I RECONCILIATION OF MEMBERSHIP DATA I
From 10/1/09 From 10/1108
To 10/1110 To 10/1109
IA. Active Members I
1. Number Included in Last Valuation 151 149
2. New Members Included in Current Valuation 5 8
3. Non-Vested Employment Terminations (3) (3)
4. Vested Employment Terminations (1) 0
5. DROP Participation (4) (3)
6. Service Retirements 0 0
7. Disability Retirements 0 0
8. Deaths 0 0
9. Number Included in This Valuation 148 151
lB. Terminated Vested Members I
1. Number Included in Last Valuation 4 4
2. Additions from Active Members 1 0
3. Lump Sum Payments/Refund of Contributions (1) 0
4. Payments Commenced (1) 0
5. Deaths 0 0
6. Other--Retum to Actives 0 0
7. Number Included in This Valuation 3 4
Ie. DROP Plan Members I
1. Number Included in Last Valuation 11 9
2. Additions from Active Members 4 3
3. Retirements (3) (1)
4. Deaths Resulting in No Further Payments 0 0
5. Other 0 0
6. Number Included in This Valuation 12 11
I D. Service Retirees, Disability Retirees and Beneficiaries I
1. Number Included in Last Valuation 92 91
2. Additions from Active Members 0 0
3. Additions from Terminated Vested Members 1 0
4. Additions from DROP Plan 3 1
5. Deaths Resulting in No Further Payments (2) 0
6. Deaths Resulting in New Survivor Benefits 0 0
7. End of Certain Period - No Further Payments 0 0
8. Other -- Lump Sum Distributions 0 0
9. Number Included in This Valuation 94 92
GRS
\CTIVE PARTICIPANT SCATTER
I Years of Service to Valuation Date I
Age Group 0-1 1-2 2-3 3-4 4-5 5-9 10-14 15-19 20-24 25+ Totals
I
20-24 NO. I 0 1 I) II !I I) n !) ,
-
TOT PAY 53,352 () 62,462 0 il " I) II <I i ".X 14
AVG PAY 53,352 0 62,462 I) ,I il I) Il il ,-' 9()7
25-29 NO. 1 4 6 4 (1 h II I) 'I ~7
TOT PAY 49,502 223,506 355, I 72 266,288 .3 78,546 486,90'i II 0 ji 0 1.754.':)23
AVG PAY 49,502 55.877 59,195 66,572 h3,091 x 1.15:.' 1,1 Ii il 115.1 X2
30-34 NO. ] 0 1 , II 16 " I) ~ ) q ,<4
.'
TOT PAY 51,742 0 60,885 183,322 739,270 1,229,000 164,044 I) n II 2,428.263
AVG PAY 51,742 0 60,885 61,107 67206 70,81 J 82J122 !I i, 'I "inO
!
35-39 NO. 0 0 0 2 1 16 ] 7 I ., I) ~I
TOT PAY 0 0 0 103,070 70,060 1,286,12'i 1,620,877 99,802 II I) 3.179.938
AVG PAY 0 0 0 51.535 70,060 80,383 95,346 99,802 , I) .'\5.<)44
,
40-44 NO. ) () :.' () ] J2 '7 oe (, j()
TOT PAY 42,064 0 112,014 () 65,290 971,318 670,484 756,799 , ~ j 2,61'7.%<)
AVGPAY 42,064 () 56,007 0 05,290 80,943 95.783 108,114 , II ,\7.26h
I
45-49 NO. 0 ] I () 1/ , 2 i (J j 1
TOT PAY 0 52,667 59,059 () II 219,1 'iO 222,154 102,663 371,600 0 l,or/,D3
AVG PAY 0 52,667 59,059 () 0 73,063 111,077 102,663 123,867 1,1 q:;394
50-54 NO. 0 0 0 1 () I) , I 0 6
.'
IrOT PAY 0 0 0 64,291 I) I) 239,870 93.071 128,OT () 525..,09
AVG PAY 0 0 0 64,291 II Il 79,957 93,071 128,OT (l ;.{7.)''i2
55-59 NO. 0 0 0 () () <I i I) ;) \) !
TOT PAY 0 0 () I) II 0 140,470 0 {I 140.4 70
AVG PAY 0 0 0 0 () 0 140,470 0 0 \I 140,470
- --.-.-- - --_.~- -.--.. -~ -~--- - -- ~ -. n_
~
i
TOT NO. 4 5 II 10 l'i 53 32 10 ,4 (I 1411
TOT AMT 196,660 276,173 649,592 616,971 1,253,166 4,1 n,546 3,057,899 1,052,335 499,677 0 11,795,019
AVG AMT 49,165 55,235 59,054 61,697 65,956 79,105 95,559 105,234 124,919 0 79,696
GRS
39
INACTIVE PARTICIPANT SCATTER
Deceased with
Terminated Vested Disabled Retired Beneficiary
Total Total Total Total
Age Group Number Benefits Number Benefits Number Benefits Number Benefits
Under 20 - - - - - - - -
20-24 - - - - - - - -
25-29 - - - - - - - -
30-34 - - - - - - - -
35-39 - - - - - - - -
40-44 3 56,693 - - 4 236,244 - -
45-49 - - - - 16 718,517 1 23,843
50-54 - - 4 83,21 7 28 1,364,047 - -
55-59 - - 3 61,035 14 552,691 - -
60-64 - - 4 101,599 12 506,659 1 9,397
65-69 - - 3 40,948 8 206,460 - -
70-74 - - 1 25,086 4 98,846 - -
75-79 - - - - 3 96,187 - -
80-84 - - - - - - - -
85-89 - - - - - - - -
90-94 - - - - - - - -
95-99 - - - - - - - -
100 & Over - - - - - - - -
Total 3 56,693 15 311,885 89 3,779,651 2 33,240
A vera2e A2e 43 60 56 54
GRS
GRS
SECTION F
SUMMARY OF PLAN PROVISIONS
GRS
GRS
40
SUMMARY OF PLAN PROVISIONS
A. Ordinances
Plan established under the Code of Ordinances for the City of Boynton Beach, Florida, Chapter 18,
Article III, and was most recently amended under Ordinance No.09-021 passed and adopted on its
second reading on April 21, 2009. The Plan is also governed by certain provisions of Chapter 185,
Florida Statutes, Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code.
B. Effective Date
August 15, 1981
C. Plan Year
October 1 through September 30
D. Type of Plan
Qualified, govenunental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time police officers are eligible to participate on the first day of employment.
F. Credited Service
Service is measured as the aggregate numbers of years and fractional parts of years of service for
which a police officer 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
Total cash remuneration including overtime and lump sum payments for accumulated sick and
vacation leave, but exclusive of any payments for extra duty or special detail work.
H. Average Final Compensation (AFe)
The average of Compensation over the highest 5 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 earliest of:
(1) age 55 and 10 years of Credited Service, or
(2) age 50 and 15 years of Credited Service, or
(3) 20 years of Credited Service regardless of age.
GRS
Benefit
Normal Form
of Benefit:
COLA
Supplemental
Benefit:
J. Early Retirement
Eligibility:
Benefit:
Normal Form
of Benefit:
COLA:
Supplemental
Benefit:
3.5~iO of AFC multiplIed by years ot Credited ServIce. Benetit ]~ ImlIled \(1 100",.
AFC and the provisions of lntemal Revenue ('ode SectIon 41 "
10 Years Certain and Life thereafter; other options are also available.
None
All retirees in pay status are entitled to a monthly supplemental pension benefit
paid in a lump sum on October 1 of each year. The supplemental benefit is funded
by a 1 % of pay contribution from the members and a 1 % of pay contribution from
the Chapter 185 money. The benefit pool is divided according to the total number
of shares of all eligible retirees on a pro-rata basis. The number of shares allotted to
each eligible retiree is the sum of credited service at retirement (maximum of 20
years) and the number of years the participant has been retired (maximum of 20
years). An individual retiree's distribution is the number of shares multiplied by the
share value. The benefit ceases upon the later of the death of the retired member
or beneficiary.
A member may elect to retire earlier than the Normal Retirement Eligibility upon
attainment of age 50 and 10 years of Credited Service.
The Normal Retirement Benefit is reduced by 1.5% for each year by which the
Early Retirement date precedes the Normal Retirement date. For this purpose, the
Normal Retirement date is the earlier of the date the member would have attained
age 55 or completed 20 years of Credited Service had the member continued
employment as a police officer,
10 Years Certain and Life thereafter; other options are also available.
None
All retirees in pay status are entitled to a monthly supplemental pension benefit
paid in a lump sum on October 1 of each year. The supplemental benefit is funded
by a 1 % of pay contribution from the members and a 1 % of pay contribution from
the Chapter 185 money. The benefit pool is divided according to the total number
of shares of all eligible retirees on a pro-rata basis. The number of shares allotted to
each eligible retiree is the sum of credited service at retirement (maximum of 20
years) and the number of years the participant has been retired (maximum of 20
years). An individual retiree's distribution is the number of shares multiplied by the
share value. The benefit ceases upon the later of the death of the retired member
or beneficiary
K. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited until the
date of actual retirement.
GRS
42
L. Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
COLA:
Supplemental
Benefit:
Any member who becomes totally and permanently disabled and unable to render
useful and efficient service as a police officer as a result of an act occurring in the
performance of service for the City is immediately eligible for a disability benefit.
662/3% of the member's basic rate of earnings in effect on the date of disability,
reduced by amounts payable under Worker's Compensation and Social Security
PIA with a minimum benefit being the greater of the accrued Normal Retirement
benefit on the date of disability or 42% of APe.
10 Years Certain and Life thereafter; other options are also available.
None
All retirees in pay status are entitled to a monthly supplemental pension benefit
paid in a lump sum on October 1 of each year. The supplemental benefit is funded
by a 1 % of pay contribution from the members and a 1 % of pay contribution from
the Chapter 185 money. The benefit pool is divided according to the total number
of shares of all eligible retirees on a pro-rata basis. The number of shares allotted to
each eligible retiree is the sum of credited service at retirement (maximum of 20
years) and the number of years the participant has been retired (maximum of 20
years). An individual retiree's distribution is the number of shares multiplied by the
share value. The benefit ceases upon the later of the death of the retired member
or beneficiary.
M. Non-Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
COLA:
Supplemental
Benefit:
Any member with 10 years of Credited Service who becomes totally and
permanently disabled and unable to render useful and efficient service as a police
officer is eligible for a disability benefit.
The accrued Normal Retirement Benefit taking into account compensation earned
and service credited as of the date of disability with a minimum benefit equal to
25% of APC and a maximum benefit equal to 60% of APe.
10 years Certain and Life thereafter; other options are also available.
None
All retirees in pay status are entitled to a monthly supplemental pension benefit
paid in a lump sum on October 1 of each year. The supplemental benefit is funded
by a 1 % of pay contribution from the members and a 1 % of pay contribution from
the Chapter 185 money. The benefit pool is divided according to the total number
of shares of all eligible retirees on a pro-rata basis. The number of shares allotted to
each eligible retiree is the sum of credited service at retirement (maximum of 20
years) and the number of years the participant has been retired (maximum of 20
years). An individual retiree's distribution is the number of shares multiplied by the
GRS
share value. lhe hcncjil reas,:" up'ln Ille !aler nllhc dentl. ;'1 fi1< letlfed mCl11t\
(11' benefiClan
N. Death in the Line of Duty
Eligibility:
Benefit:
Normal Form
of Benefit:
COLA:
Supplemental
Benefit:
Any member whose death is determined to be the result of a senilce mculTed inn!; \
is eligible for survivor benefits regardless of Credited Service.
Spouse will receive the accrued Normal Retirement Benefit taking into account
compensation earned and service credited as of the date of death with a minimum
benefit equal to 30% of APe. If there is no spouse, benefits will be paid to the
deceased member's estate.
Paid until death of spouse.
None
All retirees and beneficiaries in pay status are entitled to a monthly supplemental
pension benefit paid in a lump sum on October I of each year. The supplemental
benefit is funded by a I % of pay contribution from the members and a 1 % of pay
contribution from the Chapter 185 money. The benefit pool is divided according to
the total number of shares of all eligible retirees on a pro-rata basis. The number of
shares allotted to each eligible retiree is the sum of credited service at retirement
(maximum of 20 years) and the number of years the participant has been retired
(maximum of 20 years). An individual retiree's distribution is the number of shares
multiplied by the share value. The benefit ceases upon the later of the death of the
retired member or beneficiary.
o. Other Pre-Retirement Death
Eligibility:
Benefit:
Normal Form
of Benefit:
COLA:
Supplemental
Benefit:
Members are eligible for survivor benefits after the completion of IO or more years
of Credited Service.
Spouse will receive the accrued Normal Retirement Benefit taking into account
compensation earned and service credited as of the date of death. If there is no
spouse, benefits will be paid to the deceased member's estate.
Paid until death or remarriage of spouse; or 10 years to the member's estate.
None
All retirees and beneficiaries in pay status are entitled to a monthly supplemental
pension benefit paid in a lump sum on October I of each year. The supplemental
benefit is funded by a 1 % of pay contribution from the members and a 1 % of pay
contribution from the Chapter 185 money. The benefit pool is divided according to
the total number of shares of all eligible retirees on a pro-rata basis. The number of
shares allotted to each eligible retiree is the sum of credited service at retirement
(maximum of 20 years) and the number of years the participant has been retired
(maximum of 20 years). An individual retiree's distribution is the number of shares
multiplied by the share value. The benefit ceases upon the later of the death of the
retired member or beneficiary.
GRS
44
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, the 50%, 66 2/3%, 75% and 100% Contingent Annuitant options and the
50%,662/3%,75% and 100% Survivor Annuity options.
R. Vested Termination
Eligibility:
Benefit:
Normal Form
of Benefit:
COLA:
Supplemental
Benefit:
A member has earned a non-forfeitable right to Plan benefits after the completion of
5 years of Credited Service if they elect to leave their accumulated contributions in
the fund.
The benefit is the member's accrued Normal Retirement Benefit as ofthe date of
termination.
For members with at least 5 years of Credited Service, the benefit begins on the date
that would have been the member's Normal Retirement date had they continued
employment until attaining age 55 with 10 years of Credited Service or upon
reaching what would have been 20 years of Credited Service. Alternatively,
members with at least 10 years of Credited Service can elect a reduced Early
Retirement benefit any time after age 50.
1 0 Years Certain and Life thereafter; other options are also available.
None
Once in pay status, all retirees are entitled to a monthly supplemental pension
benefit paid in a lump sum on October 1 of each year. The supplemental benefit is
funded by a 1 % of pay contribution from the members and a 1 % of pay
contribution from the Chapter 185 money. The benefit pool is divided according to
the total number of shares of all eligible retirees on a pro-rata basis. The number of
shares allotted to each eligible retiree is the sum of credited service at retirement
(maximum of 20 years) and the number of years the participant has been retired
(maximum of 20 years). An individual retiree's distribution is the number of shares
multiplied by the share value. The benefit ceases upon the later of the death of the
retired member or beneficiary.
Members terminating employment with less than 5 years of Credited Service will receive a refund of
their own accumulated contributions.
GRS
s. Refunds
Eligibility
All members tenninating employment wIth less than 5 years of ('redIted ServIce art
eligible. Optionally, vested members (those with 5 or more years of ('reelltni
Service) may elect a refund in lieu of the vested benefits otherwise due
Benefit:
Refund of the member's contributions
T. Member Contributions
7% of Compensation
u. Employer Contributions
Chapter 185 Premium Tax Refunds and any additional amount detennined by the actuary needed to
fund the plan properly according to State laws.
V. Changes from Previous Valuation
There have been no changes since the last valuation.
w. 13th Check
As described under the Supplemental Benefit subsections, a thirteenth check will be paid to retirees
on each October 1 of each year following December 1, 2006.
x. Deferred Retirement Option Plan
Eligibility:
Plan members who have less than 30 years of Credited Service but have met one of
the following criteria are eligible for the DROP:
(1) age 55 and 10 years of Credited Service, or
(2) age 50 and 15 years of Credited Service, or
(3) 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 F AC.
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 I of the 3 following options:
1. Gain or loss at the same rate earned by the Plan, or
2. Guaranteed rate of 7%, or
3. A percentage of the DROP credited at the same rate earned by the Plan and
the remaining percentage credited with earnings at a guaranteed rate of 7%).
GRS
46
Normal Form
of Benefit:
Options include a lump sum, equal annual payments over 5 years, or montWy
installments based upon actuarial tables until the balance is paid out.
COLA:
None
Supplemental
Benefit:
DROP retirees are entitled to a montWy supplemental pension benefit paid in a
lump sum on October 1 of each year. The supplemental benefit is funded by a 1 %
of pay contribution from the members and a 1 % of pay contribution from the
Chapter 185 money. The benefit pool is divided according to the total number of
shares of all eligible retirees on a pro-rata basis. The number of shares allotted to
each eligible retiree is the sum of credited service at retirement (maximum of 20
years) and the number of years the participant has been retired (maximum of 20
years). An individual retiree's distribution is the number of shares multiplied by the
share value. The benefit ceases upon the later of the death of the retired member
or beneficiary.
Y. Other Ancillary Benefits
There are no ancillary benefits not required by statutes but which might be deemed a City of
Boynton Beach Municipal Police Officers' Retirement Fund liability if continued beyond the
availability of funding by the current funding source.
GRS
GRS
Gabriel Roeder Smith & Company
Consultants & Actuaries
CITY OF BOYNTON BEACH
MUNICIPAL POLICE OFFICERS' RETIREMENT FUND
NINE YEAR EXPERIENCE STUDY
COVERING THE PERIOD
OCTOBER 1, 2001 - SEPTEMBER 30, 2010
February 15,2011
Board of Trustees
City of Boynton Beach Municipal
Police Officers' Retirement Fund
Boynton Beach, Florida
Dear Board Members:
Weare pleased to present herein our nine year Experience Study Report. The period covered by this study
is October 1, 2001 through September 30,2010.
The study was performed on the basis of participant data and [mancial information supplied by the plan
sponsor in cOIll1ection with the valuations performed during the years studied, and has been prepared in
accordance with generally accepted actuarial methods and procedures.
This actuarial valuation and/or cost determination was prepared and completed by me or under my direct
supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are
complete and accurate. In my opinion, the techniques and asswnptions used are reasonable, meet the
requirements and intent of Part VD, Chapter 112, Florida Statutes, and are based on generally accepted
actuarial principles and practices. There is no benefit or expense to be provided by the plan and/or paid
from the plan's assets for which liabilities or current costs have not been established or otherwise taken into
account in the valuation. All known events or trends which may require a material increase in plan costs or
required contribution rates have been taken into account in the valuation.
Gabriel, Roeder, Smith & Company will be pleased to answer any questions pertaining to the study and to
meet with you to review the Report.
Respectfully submitted,
GABRIEL, ROEDER, SMITH & COMPANY
By J ':,1!1;,~ r al'"?ii/:.)j .[)>};,~
J. Steph Palmquist, ASA, 'AM, FCA
Enrolled Actuary No. 08-1560
'il \
By JJ.~~ t-y (J11,.e?--!J-t.
Duane Howison, FSA )
Enrolled Actuary No. 08-6169
TABLE OF CONTENTS
I. Introduction............................................................................................................... 1
II. Summary of Recommendations .............................................................................. 3
III. Study Categories
A. Investment Rate of Retum .................................................................................... 5
B. Rates of T ennination............................................................................................. 7
C. Rates of Retirement ............................................................................................... 9
D. Rates of Salary Increase .................................................................................. ...10
E. Rates of Mortality ............................................................................................ ...11
IV. Appendices
A. Asset Allocation Analysis
SECTION I
INTRODUCTION
INTRODUCTION
Back2round
This Report presents the results of an actuarial experience study during the period of October 1,
2001 through September 30, 2010. The demographic experience of the Plan, including termination rates,
retirement rates and deaths, has been studied. In addition, the economic experience, including investment
return and annual pay increases, has been analyzed.
Purpose of the Experience Study
The goal of this Report is to review the recent experience of the Plan in order to serve as a guide
in setting actuarial assumptions concerning the future.
The assumptions determined by the Board of Trustees, based on this Report and their long-term
perspectives, will be used to determine future plan liabilities and costs and to evaluate proposed changes
in benefits, eligibility conditions, and other aspects of the Plan's operation.
Methodolo2V
In this Report we compute the probability of terminations based on age or service for active
members. To this end, we proceed as follows:
· We count the number of members leaving for each cause during the term of the study.
This is the number of decrements.
. We count the number of members who could have left for each cause during the study.
This is the exposure.
· When there have been enough decrements, we divide the number of decrements by the
exposure for an age or service group to determine the probability of leaving due to the
cause in question.
2
. When there are insufficient decrements to compute reliable rates, we compare the total
number of actual decrements with the total number of decrements predicted by an
actuarial table, and adopt the table that predicts decrements, in total, reasonably close
to those observed.
. Actual salary increases for each year in the study period were obtained and compared
to our salary increase assumption.
On!anization of Report
The cost to the Plan of recommended changes is found in Section II of this Report. This
introductory section broadly describes the scope of the experience study.
Section III contains a separate sub-section for each assumption analyzed. Each such sub-section
contains data tables showing our findings, and other explanatory information, including our
recommendation based on the specific data and assumption analyzed.
SECTION n
SUMMARY OF RECOMMENDATIONS
3
CITY OF BOYNTON BEACH
MUNICIPAL POLICE OFFICERS' RETIREMENT FUND
NINE YEAR EXPERIENCE STUDY
SUMMARY OF RECOMMENDATIONS
The nine year period (October 1, 2001 through September 30, 2010) covered by this experience
study provided sufficient data to form a basis for recommending changes in the economic and
demographic assumptions used in the actuarial valuation of the Retirement Plan.
The recommendations resulting from this experience study are summarized below:
· Lower the assumed rate of return net of investment related expenses from 8.0%
to either 7.75% or 7.50%.
.
Adopt new rates of assumed employment tennination based on age and service.
.
Change retirement rate for first year of eligibility to 40% from 80%.
.
Change the mortality table from the 1983 Group Annuity Mortality table to the
RP-2000 Generational Mortality table.
4
The estimated cost or savings associated with each of these recommendations is summarized
below. For comparison purposes, the required City contribution for the fiscal year ending September 30,
2012 is $3,806,751 or 30.16% of covered payroll. It should be noted that all changes do not have to be
made in one year. Such changes can be stretched over four or five years if the Board wishes.
Increase/(Decrease)
Actuarial in Contribution
Assumption Current Proposed as a Percent of Payroll *
Investment Return 8.0% net of 7.75% net of 1.71 %
investment expenses investment expenses
Investment Return 8.0% net of 7.5% net of 3.47%
investment expenses investment expenses
Retirement Rates Retirement rate for Reduce retirement rate -1.28%
1 st year is 80% for 1 st year to 40%
Termination Rates All rates based on Revised rates based on 3.48%
age age and service
Mortality 1983 Group Annuity RP-2000 Generational 2.62%
Mortality Mortality
Combined Effect Using 7.75% Return Assumption 6.71%
Combined Effect Using 7.50% Return Assumption 8.83%
For detailed discussions of each of these assumptions, see the complete analysis in the balance of this
Report.
* These calculations reflect the change in the unfunded accrued liability amortized over a 30 year period
SECTION m
STUDY CATEGORIES
5
INVESTMENT RATE OF RETURN
The investment rate of return of the fund has been calculated on the following basis:
ACTUARIAL VALUE BASIS: Investment earnings recognized in the Actuarial Value of Assets
divided by the weighted average of the Actuarial Value of Assets during the year.
MARKET VALUE BASIS: Interest, dividends, realized gains (losses) and unrealized appreciation
(depreciation) divided by the weighted average of the market value of the fund during the year.
Investment Rate of Return
Year Ended Basis 1 Basis 2
12/31/82 16.4 % 9.3 %
12/31/83 12.3 9.0
12/31/84 11.9 11.5
12/31/85 23.0 16.8
12/31/86 19.0 17.6
12/31/87 0.3 4.4
12/31/88 10.4 9.0
12/31/89 20.6 15.4
9/30/90 (9 mos.) (1.9) 1.7
9/30/91 14.4 11.6
9/30/92 10.0 9.7
9/30/93 12.6 11.9
9/30/94 1.1 3.5
9/30/95 19.1 12.9
9/30/96 12.8 10.8
9/30/97 20.2 13.1
9/30/98 10.1 12.9
9/30/99 10.5 13.5
9/30/00 9.8 12.1
9/30/01 (9.1) 7.5
9/30/02 (9.2) (4.7)
9/30/03 16.1 2.8
9/30/04 8.3 2.6
9/30/05 10.6 3.0
9/30/06 6.9 5.7
9/30/07 13.1 9.9
9/30/08 (15.1) 4.2
9/30/09 (0.8) 2.8
9/30/1 0 10.2 3.0
Average Compounded Rate of
Return for Number of Years
Shown 8.8 % 8.3 %
Average Compounded Rate of
Return for Last 5 Years 2.3 % 5.1 %
6
It must be recognized that the investment return assumption is of a long-term nature. Short-term
periods should not overly influence its level. The current assumed rate is 8.0% net of investment related
fees. The results of our asset allocation analysis are shown in Appendix A. To summarize these results,
there would be more than an 80% chance that the current net rate of 8.0% will not be realized over a 30
year period of time based on the current asset allocation. If the net investment return assumption is
lowered to 7.0% there would be a 60% chance of failing to meet the assumed return over a 30 year period.
If investment returns fall short of the assumption for an extended number of years, losses will
tend to push up the recommended contribution. One source of loss which must be considered is the
historically low rate of return currently available on fixed income investments. Based on this, it may be
more realistic to lower the assumed rate for purposes of the actuarial valuation. A lower rate will result in
a higher probability of meeting the assumption.
RECOMMENDATION
We recommend a decrease in the annual investment return assumption from 8.00% to either
7.75% or 7.50%.
7
RATES OF TERMINATION
The actual number of members terminating employment for reasons other than retirement,
disability, or death was less than the total number expected. However, termination behavior frequently
differs depending on longevity. For instance, there was a significant drop in the actual rates of
termination for those who were close to becoming vested. This can be seen from the table on the
following page.
Termination of Employment for Reasons Other
Than Retirement, Disability or Death
for Nine Years Ending October 1, 2010
Actual Expected
Age Number (A) Number (E)* AlE
15-19 0 0 0.00
20-24 2 10 0.20
25-29 21 34 0.62
30-34 21 37 0.57
35-39 12 9 1.33
40-44 5 0 0.00
45-49 2 0 0.00
63 90 0.70
* Based on present assumption.
RECOMMENDATION
Weare recommending new decrement tables for terminations from employment. The new
termination rates will be dependent on the amount of service and age of each participant. The proposed
rates of termination are shown on the next page:
8
RECOMMENDED TERMINATION RATES
These rates are based on service for the first five years of employment, thereafter based on age.
Expected Number of
Actual Rates Terminations
Years of for Last Recommended Based on
Service 9 Years Rates Recommended Rates
0-1 15.6 % 15.0 % 20
1 - 2 10.9 10.0 13
2-3 6.8 7.0 8
3-4 4.5 5.0 5
4-5 4.1 4.0 4
Ages for Those
with at Least 5
Years of Service
25 - 29 0.0 4.0 1
30 - 34 3.4 3.0 3
35 - 39 2.0 2.0 4
40 - 44 2.1 1.0 1
45 - 49 0.0 0.0 0
Expected Number of Terminations 59
Actual Number of Terminations 63
Actual/Expected 1.07
9
SERVICE RETIREMENT EXPERIENCE
For each year in our nine year study, we determined which participants were eligible to retire
based on the plan provisions, and compared that number to the number of participants who actually
retired. The Plan provisions are:
Normal Retirement (NRD):
Age 55 and completion of 10 years of service, or age 50 and completion of 15 years of
service, or 20 years of service regardless of age.
Early Retirement (ERD):
Age 50 and completion of 10 years of service.
Normal Retirement
The table below shows actual experience for normal retirements as compared to the assumption,
along with proposed rates for the future.
Actual
Number of Years Present Experience Recommended
After NRD Assumption 2001 - 2010 Rates
0-1 80 % 33 % 40 %
1 - 2 10 21 10
2-3 10 25 10
3-4 10 0 10
4-5 10 0 10
5-6 10 67 10
6-7 10 0 10
7+ 100 0 100
Number of Normal
Retirements 38 expected 20 actual 20 expected
Actual/Expected 0.53 1.00 1.00
10
RATES OF SALARY INCREASE
Actual salary increases varied from those expected during the study period. The annual salary
increase has been assumed to vary based on age between 6.5% and 5.0% for all participants, regardless of
service, from all sources (inflation, merit, promotion, productivity, etc.). In fact, salary increases due to
merit, promotion, and productivity have tended to increase more rapidly as a percent of pay during the
early years of employment when the dollar levels are lower. As a result, a table of salary increases tied to
length of service would better predict future experience.
Salary Increase Experience for
Nine Years Ending October 1, 2010
Proposed Total
Years of Actual Average Real Proposed Increase Including
Service Increase CPI Increase Real Increase Expected Inflation of 3%
I 15.1 % 2.2 % 12.9 % N/A% N/A%
2 7.5 2.2 5.3 N/A N/A
3 7.8 2.2 5.6 N/A N/A
4 8.6 2.2 6.4 N/A N/A
5 9.7 2.2 7.5 N/A N/A
6 8.8 2.2 6.6 N/A N/A
7 11.8 2.2 9.6 N/A N/A
8 7.2 2.2 5.0 N/A N/A
9 5.7 2.2 3.5 N/A N/A
10 7.1 2.2 4.9 N/A N/A
15 7.8 2.2 5.6 N/A N/A
20 + 7.1 2.2 4.9 N/A N/A
All Years 8.3 2.2 6.1 N/A N/A
On average, the experience for salary increases has been greater than assumed. However, a
memorandum of understanding ratified September 27,2010 negated pay raises for 2010. The result of the
next collective bargaining agreement would be a better basis for determining future pay increases than the
prior plan experience shown above. Therefore, we recommend waiting to revise this assumption until
after the next collective bargaining agreement.
11
RATES OF MORTALITY AMONG ACTIVE AND INACTIVE MEMBERS
The number of deaths during the study period was not large enough to be statistically significant
for purposes of establishing a mortality table. Unless there is solid evidence to the contrary, a generally
accepted mortality table should be used.
The mortality table currently being used for actuarial valuation purposes is the 1983 Group
Annuity Mortality Table. We recommend use of a more current mortality table - the RP-2000
Generational Mortality Table. This mortality table is more up to date and also projects how mortality
rates will decrease in future years. The RP-2000 generational mortality table will reflect that someone
who is age 55 in 10 years will be expected to live longer than someone who is age 55 today. The overall
trend is that people are living longer, and this will cause an increase in cost.
RECOMMENDATION
We recommend adopting the RP-2000 Generational Mortality Table, set forward five years for
disabled lives.
12
Old Mortality Table and New Mortality Table
Old Mortality Table -1983 Group Annuity Mortality Table
Sample Life Ex) ectancy
Ages Male Female
50 29.18 34.92
55 24.82 30.24
60 20.64 25.67
65 16.69 21.29
70 13.18 17.13
New Mortality Table - RP-2000 Generational Mortality Table
Life Ex Jectancy
Sample 2010 2015 2020 2025
Ages Male Female Male Female Male Female Male Female
50 33.90 35.42 34.35 35.68 34.79 35.93 35.22 36.17
55 28.79 30.47 29.23 30.71 29.66 30.94 30.07 31.18
60 23.88 25.70 24.29 25.93 24.70 26.16 25.1 0 26.39
65 19.30 21.22 19.68 21.44 20.05 21.66 20.42 21.88
70 16.13 17.73 15.48 17.32 15.81 17.53 16.13 17.73
SECTION IV
APPENDICES
Asset Allocation Analysis
Investment Alternatives
Feb
11, 2011
Bo nton Beach Police Retirement Fund
Asset Class
Inter-Term Govt Bond
Corporate Bonds
Large Value Stocks
Large Growth Stocks
Real Estate
International Stocks
Retum
Std Deviation
Yield
Sharpe Ratio
Present
20.00%
15.00
20.00
15.00
5.00
25.00
6.77%
10.95%
3.11%
0.39
Asset Allocation Analysis
Scenario Assumptions
Feb 11, 2011
Asset Cla'ls
Tnter-Tenn Govt Bond
Corporate Bonds
Large Value Stocb
Large Growth Stocks
Real Estate
International Stocks
Inflation
Boynton Beach Pol
Proxy
em Treas/ Agy 1 -1 Oy
BarCap Credit Bond
RUSS 1000 Value
RUSS 1000 Growth
Wilshire RESl
MSCI EAFE Index-$
Bo nton Beach Police Retirement Fund
Return
4.50%
5.75
8.75
8.50
8.75
9.00
2.50
Risk
6.25%
8.25
15.75
19.00
22.00
20.00
Yield
4.50%
5.75
2.40
1.65
3.65
1.75
Mgmt
Fees
0.70%
0.70
0.70
0.70
0.70
0.70
Asset Allocation Analysis
Distribution of Annual Returns
Feb 11, 2011
Beach Police Retirement Fund
Bo noon
Retul11
10
Time Horizon: 30 Years
9
8
7
6
5
4
3
2
Present
9.53%
7.56
6.22
4.89
3.01
6.24
95th Pctl
75th Pctl
50th Pctl
25th Pctl
5th Pet!
Mean
Asset Allocation Analysis
Target Returns
Feb 11 2011
Bo nton Beach Police Retirement Fund
Probability of Falling Below Target Retul11 for Present
100%
80
60
40
20
o
1 Year
- 7.00%
10 Years
- 8.00%
20 Y cars
30 Years
Barbara Ladue
From:
Sent:
To:
Cc:
Subject:
Gary Chapman [chappy@microchap.com]
Friday, August 19,2011 8:48 AM
Peter Delyanis
Barbara Ladue
Employer deposit
Hello Peter and Barbara, (see email below) the Cities 2011-2012 contribution deposit will need to go via algorithm
investment protocol. Future employee contributions and real asset/commodities deposits will be reviewed at our
scheduled special meeting 9.20.2011.
From: Atwood, Barry
Sent: Thursday, August 18, 2011 5:12:41 PM
To: Rodriguez, Jose; Chapman, Gary; Henderson, Luke
Cc: LaVerriere, Lori; Barbara LaDue; Dixie Martinez; Moroney, Sue;
Howard, Tim; Davidson, Anthony
Subject: City's Annual Required Contribution to Pension Plans
Importance: High
Auto forwarded by a Rule
To Chairs of the City's Three Pension Boards,
I'm providing each Board of Trustees advance notice for investment and cash flow planning purposes. We will be making
the City's Annual Required Employer Contribution for the year ending September 30,2012 to each Pension Plan by the
end ofthis September rather than making a biweekly payment as is the current practice or at the end of the year that has
been the practice for the prior 10 years.
This accomplishes two things;
1. Provides the resources for your investment for a full year at the beginning of the year and
2. Saves the City an actuarially computed interest charge for not paying at the beginning of the year.
The amount each Board will receive and the City's interest savings follows.
Sept 2011 Payment
City Interest Savinas
. Pension Plan for General Employees
. Municipal Police Officers' Retirement Fund
. Municipal Firefighters' Pension Trust Fund
$ 4,502,590
$ 3,633,868
$ 3,118,636
$ 178,711
$ 163,706
$ 152,317
I suggest you provide your investment managers with notice of the above September 2011 payment.
Barry
E. Barrett (Barry) Atwood, Sr., CPA, Finance Director
DeparlmentofFmanda/SeN~es
City of Boynton Beach
100 East Bovnton Beach Boulevard
P.D Box 310
Bovnton Beach. Florida 33425-0310
E-mail -AtwoodB(ijJ.bbfl.us
Phone - 561-742-6311
Cell - 561-603-2290
Fax - 561-742-6316
City Hall Hours:
1
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FUND RESERVES
BALANCE SHEET
Year-To-Date As Of
06/30/2011
I~
rt1~ -
127,316.30,rJ
266, 766.11
56,067,171.11
56,461,253.52
------------------
------------------
50,379,544.67
6,081,708.85
56,461,253.52
56,461,253.52
------------------
------------------
7-,19-'1
~~
p~
f~'~
R~ ~.Q,.t.. T~
~~
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 06/01/2011 To 06/30/2011
ADDITIONS TO RESERVE
DROP LOAN REPAYS
UNREALIZED G/L RUSSELL
RUSSELL REALIZED G/L
MISCELLANEOUS INCOME
CONTRIBUTIONS - MEMBERS
CONTRIBUTIONS - EMPLOYER
R/O MONEY
TOTAL ADDITIONS
DEDUCTIONS FROM RESERVE
PAYMENT TO RETIREES (~'8S~)
DROP LOANS
DROP WITHDRAWALS
REFUNDS TERM EMPLOYEES
INVESTMENT FEES
ACTUARIAL FEES
OFFICE EXPENSES
COMPUTER/SUPPLY/SOFTWARE/MAINT
AUDIT FEES
SUNTRUST/BANK CHGS
PROFESSIONAL SERVICES
PENSION ADMINISTRATOR
BUSINESS MEETINGS
PENSION PROGRAM MAINT (ES)
MISCELLANEOUS
TOTAL DEDUCTIONS
NET CHANGE IN FUND RESERVE
Current
Amount
4,278.72
(782,841.11)
103,844.35
705.28
105,408.08
407,548.38
.00
(161,056.30)
332,838.69"'-
.00
28,696.52'"
.00
5,000.00/
.00 ...,.....-
1,284.71
825.00 r,.,/
.00
15.00 ..........
1,546.351/
1,754.56v
1,563.56'-"
472.50 v
839.25
374,836.14
(535,892.44)
YTD
Amount
33,988.48
3,639,938.42
2,259,917.34
813.74
792,346.42
2,581,139.74
75,423.28
9,383,567.42
2,592,924.32
50,000.00
299,780.81
28,642.18
209,633.62
27,800.00
5,994.35
5,618.79
15,750.00
75.00
11,011.11
15,607.89
24,096.57
2,018.50
12,905.43
3,301,858.57
6,081,708.85
J--?' /1
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FUND RESERVES
BALANCE SHEET
Year-To-Date As Of
05/31/2011
I~
of #~ ~
5,217.77
266,766.11
56,725,162.08
56,997,145.96
------------------
------------------
50,379,544.67
6,617,601.29
56,997,145.96
56,997,145.96
------------------
------------------
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 05/01/2011 To 05/31/2011
ADDITIONS TO RESERVE
DROP LOAN REPAYS
UNREALIZED G/L RUSSELL
RUSSELL REALIZED G/L
MISCELLANEOUS INCOME
CONTRIBUTIONS - MEMBERS
CONTRIBUTIONS - EMPLOYER
R/O MONEY
TOTAL ADDITIONS
DEDUCTIONS FROM RESERVE
PAYMENT TO RETIREES
DROP LOANS
DROP WITHDRAWALS
REFUNDS TERM EMPLOYEES
INVESTMENT FEES
ACTUARIAL FEES
OFFICE EXPENSES
COMPUTER/SUPPLY/SOFTWARE/MAINT
AUDIT FEES
SUNTRUST/BANK CHGS
PROFESSIONAL SERVICES
PENSION ADMINISTRATOR
BUSINESS MEETINGS
PENSION PROGRAM MAINT (ES)
MISCELLANEOUS
TOTAL DEDUCTIONS
NET CHANGE IN FUND RESERVE
Current
Amount
4,278.72
(368,962.34)
23,360.52
2.16
116,254.02
271,698.92
.00
46,632.00
281,825.02 V
.00
17,196.52 r/
.00
105,180.75v'
15,280.00 v
1,037.86 v
825.00~
2,750.00
15.00 v'
2,670.15V"
1,754.561/
3,487.30 v
.00
.00
432,022.16
(385,390.16)
YTD
Amount
29,709.76
4,422,779.53
2,156,072.99
108.46
686,938.34
2,173,591.36
75,423.28
9,544,623.72
2,260,085.63
50,000.00
271,084.29
28,642.18
204,633.62
27,800.00
4,709.64
4,793.79
15,750.00
60.00
9,464.76
13,853.33
22,533.01
1,546.00
12,066.18
2,927,022.43
6,617,601. 29
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FUND RESERVES
BALANCE SHEET
Year-To-Date As Of
04/30/2011
I~
;~ ---
8,218.39-t'.tf
266,766.11
57,107,551. 62
57,382,536.12
------------------
------------------
50,379,544.67
7,002,991. 45
57,382,536.12
57,382,536.12
------------------
------------------
7.,ft . / I
p/..
~
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 04/01/2011 To 04/30/2011
ADDITIONS TO RESERVE
DROP LOAN REPAYS
UNREALIZED G/L RUSSELL
RUSSELL REALIZED G/L
MISCELLANEOUS INCOME
CONTRIBUTIONS - MEMBERS
CONTRIBUTIONS - EMPLOYER
I
R/O MONEY ~
TOTAL ADDITIONS
DEDUCTIONS FROM RESERVE
PAYMENT TO RETIREES
DROP LOANS
DROP WITHDRAWALS
REFUNDS TERM EMPLOYEES
INVESTMENT FEES
ACTUARIAL FEES
OFFICE EXPENSES
COMPUTER/SUPPLY/SOFTWARE/MAINT
AUDIT FEES
SUNTRUST/BANK CHGS
PROFESSIONAL SERVICES
PENSION ADMINISTRATOR
BUSINESS MEETINGS
PENSION PROGRAM MAINT (ES) n .
MISCELLANEOUS II~~
TOTAL DEDUCTIONS
NET CHANGE IN FUND RESERVE
Current
Amount
4,278.72
93,651.49
1,506,098.09
.00
104,774.14
407,548.38
17,216.07
2,133,566.89
281,825.02 v
.00 v
22,412.59
.00
.00
.00
79.92 V
.00
.00
.00
.00. /
1,754. 56~
2,037.65
.00/
10,864.43
318,974.17
1,814,592.72
YTD
Amount
25,431.04
4,791,741.87
2,132,712.47
106.30
570,684.32
1,901,892.44
75,423.28
9,497,991. 72
1,978,260.61
50,000.00
253,887.77
28,642.18
99,452.87
12,520.00
3,671.78
3,968.79
13,000.00
45.00
6,794.61
12,098.77
19,045.71
1,546.00
12,066.18
2,495,000.27
7,002,991.45
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FUND RESERVES
BALANCE SHEET
Year-To-Date As Of
03/31/2011
I~
#.9J .,
22,954.95 ..;-
266,766.11 /'
55,278,222.34
55,567,943.40 If f(
------------------
------------------
50,379,544.67
5,188,398.73
55,567,943.40
55,567,943.40
------------------
------------------
1- / -II
It
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 03/01/2011 To 03/31/2011
ADDITIONS TO RESERVE
DROP LOAN REPAYS
UNREALIZED G/L RUSSELL
RUSSELL REALIZED G/L
MISCELLANEOUS INCOME
CONTRIBUTIONS - MEMBERS
CONTRIBUTIONS - EMPLOYER
R/O MONEY
TOTAL ADDITIONS
DEDUCTIONS FROM RESERVE
PAYMENT TO RETIREES
DROP LOANS
DROP WITHDRAWALS
REFUNDS TERM EMPLOYEES
INVESTMENT FEES
ACTUARIAL FEES
OFFICE EXPENSES
COMPUTER/SUPPLY/SOFTWARE/MAINT
AUDIT FEES
SUNTRUST/BANK CHGS
PROFESSIONAL SERVICES
PENSION ADMINISTRATOR
BUSINESS MEETINGS
PENSION PROGRAM MAINT (ES)
MISCELLANEOUS
TOTAL DEDUCTIONS
NET CHANGE IN FUND RESERVE
Current
Amount
4,278.72'<//
70,505.62
113,969.05 ./
.00 t/
109,623.50 i
407,548.38 V
9,622.70v
715,547.97
278,283.72&t
.00/
65,196.52
26,496.86v
.00
.00
1,137.68\./
825.00V
.00
15. OO~
987.90 v
.00
3,966.97\/
. n-M-. 46.00v
,..~- 701.75
377,657.40
337,890.57
YTD
Amount
21,152.32
4,698,090.38
626,614.38
106.30
465,910.18
1,494,344.06
58,207.21
7,364,424.83
1,696,435.59
50,000.00
231,475.18
28,642.18
99,452.87
12,520.00
3,591.86
3,968.79
13,000.00
45.00
6,794.61
10,344.21
17,008.06
1,546.00
1,201.75
2,176,026.10
5,188,398.73
I ~J'!~ f{
:/';7(1 .,
8t
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FUND RESERVES
BALANCE SHEET
Year-To-Date As Of
02/28/2011
,a.
..(-
(100,364.75) wr,f';-
266, 766.11 ~
55,063,651.47./0t---
55,230,052.83
------------------
------------------
50,379,544.67
4,850,508.16
55,230,052.83
55,230,052.83
------------------
------------------
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 02/01/2011 To 02/28/2011
Current
Amount
YTD
Amount
ADDITIONS TO RESERVE
DROP LOAN REPAYS 3,374.72 16,873.60
UNREALIZED G/L RUSSELL 1,217,669.81 4,627,584.76
RUSSELL REALIZED G/L 94,960.45 512,645.33
MISCELLANEOUS INCOME I~ 48.00 106.30
CONTRIBUTIONS - MEMBERS \~~~ 34,424.61 356,286.68
CONTRIBUTIO~NS - EMPLOYER \~~ 135,849.46 1,086,795.68
R/O MONEY ~~~ ~ 15,239.71 48,584.51
----------------- -----------------
TOTAL ADDITIONS 1,501,566.76 6,648,876.86
5~ 8 3 t~ - J ;i-,4I-tJ~ )
DEDUCTIONS FROM RESERVE ^ l.n~ a /j;,,;r- tfi"t fi.1 N\ - ,
~.\ g~~
PAYMENT TO RETIREES~ p~ 274,071.88~ 1,418,151.87
DROP LOANS .00 50,000.00
DROP WITHDRAWALS 130,196.52\/' 166,278.66
REFUNDS TERM EMPLOYEES .00 2,145.32
INVESTMENT FEES 94,452.87 V 99,452.87
ACTUARIAL FEES 10,884.00\/ 12,520.00
OFFICE EXPENSES .00 2,454.18
COMPUTER/SUPPLY/SOFTWARE/MAINT .00 3,143.79
AUDIT FEES 8,000. OOV' 13,000.00
SUNTRUST/BANK CHGS .00 30.00
PROFESSIONAL SERVICES 3,763.26~ 5,806.71
PENSION ADMINISTRATOR 3,509.12 / 10,344.21
BUSINESS MEETINGS 569.88v 13,041.09
PENSION PROGRAM MAINT (ES) .00 1,500.00
MISCELLANEOUS .00 500.00
TOTAL DEDUCTIONS
525,447.53
976,119.23
1,798,368.70
NET CHANGE IN FUND RESERVE
4,850,508.16
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FUND RESERVES
BALANCE SHEET
Year-To-Date As Of
01/31/2011
,"
~ ;.f~' '" ---
20,814.38
266,766.11
53,966,353.11
54,253,933.60
------------------
------------------
50,379,544.67
3,874,388.93
54,253,933.60
54,253,933.60
------------------
------------------
~~JI~~J
/;~
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 01/01/2011 To 01/31/2011
Current
Amount
ADDITIONS TO RESERVE
DROP LOAN REPAYS 3,374.72
UNREALIZED G/L RUSSELL 448,413.63
RUSSELL REALIZED G/L 247,904.18
MISCELLANEOUS INCOME .00
CONTRIBUTIONS - MEMBERS 82,053.08
CONTRIBUTIO~S - EMPLOYER~ ~ L 271,698.92
R/O MONEY y~ ~ .~ 6,000.00
-----------------
TOTAL ADDITIONS 1,059,444.53
DEDUCTIONS FROM RESERVE
PAYMENT TO R~~R~E~ fJ
DROP LOANS _~ ~~
DROP WITHDRAWALS
REFUNDS TERM EMPLOYEES
INVESTMENT FEES
ACTUARIAL FEES
OFFICE EXPENSES
COMPUTER!SUPPLY!SOFTWARE!MAINT
AUDIT FEES
SUNTRUST!BANK CHGS
PROFESSIONAL SERVICES
PENSION ADMINISTRATOR
BUSINESS MEETINGS
PENSION PROGRAM MAINT (ES)
MISCELLANEOUS
278,229.85
50,000.00
5,196.52
.00
.00
.00 /"
1,141.10V
223.70V
.00
.00
.OO/,
1,822.06
1,060.00V"
.00
.00
TOTAL DEDUCTIONS
337,673.23
NET CHANGE IN FUND RESERVE
721,771.30
YTD
Amount
13,498.88
3,409,914.95
417,684.88
58.30
321,862.07
950,946.22
33,344.80
5,147,310.10
1,144,079.99
50,000.00
36,082.14
2, 14 5.32
5,000.00
1,636.00
2,454.18
3,143.79
5,000.00
30.00
2,043.45
6,835.09
12,471. 21
1,500.00
500.00
1,272,921.17
3,874,388.93
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FUND RESERVES
BALANCE SHEET
Year-To-Date As Of
12/31/2010
fa
~ j g 1'" ..,..
25,061. 24
266,766.11
53,240,334.95
53,532,162.30
------------------
------------------
50,379,544.67
3,152,617.63
53,532,162.30
53,532,162.30
------------------
------------------
tp,,PC;-I/
it
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 12/01/2010 To 12/31/2010
Current
Amount
ADDITIONS TO RESERVE
DROP LOAN REPAYS
UNREALIZED G/L RUSSELL
RUSSELL REALIZED G/L
MISCELLANEOUS INCOME
CONTRIBUTIONS - MEMBERS
CONTRIBUTIONS - EMPLQ\YER
R/O MONEY ~ J~ ~.
TOTAL ADDITIONS
3,374.72
2,169,382.08
61,087.09
.00
84,849.77
271,698.92
27,344.80
2,617,737.38
DEDUCTIONS FROM RESERVE
YTD
Amount
10,124.16
2,961,501.32
169,780.70
58.30
239,808.99
679,247.30
27,344.80
4,087,865.57
PAYMENT TO RETIREES 310,626.31 865,850.14
DROP WITHDRAWALS 6,492.58 30,885.62
REFUNDS TERM EMPLOYEES .00 2,145.32
INVESTMENT FEES 5,000.00 v' 5, 000.00
ACTUARIAL FEES 1,636. 00 ~ 1,636.00
OFFICE EXPENSES -- 1,275.90 1,313.08
COMPUTER/SUPPLY/SOFTWARE/MAINT l,514.64vr 2,920.09
AUDIT FEES 2,500.00 V 5,000.00
SUNTRUST /BANK CHGS 30.00 v' 30.00
PROFESSIONAL SERVICES 1,413.70 V" 2,043.45
PENSION ADMINISTRATOR 1,671.01 v' 5,013.03
BUSINESS MEETINGS 688.72~ 11,411.21
~~~~~~~A~~g~~ M~~________~~~~~~~~ ~_______~~~~~~~~
TOTAL DEDUCTIONS 334,848.86 935,247.94
NET CHANGE IN FUND RESERVE
2,282,888.52
3,152,617.63
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FOND RESERVES
BALANCE SHEET
Year-To-Date As Of
11/30/2010
,9-
"ti;; 1/ ...-
2,791.21
266,766.11
50,979,716.46
51,249,273.78
------------------
------------------
50,379,544.67
869,729.11
51,249,273.78
51,249,273.78
------------------
------------------
t;,:J<j.f!
6~
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 11/01/2010 To 11/30/2010
ADDITIONS TO RESERVE
DROP LOAN REPAYS
UNREALIZED G/L RUSSELL
RUSSELL REALIZED G/L
MISCELLANEOUS INCOME
CONTRIBUTIONS - MEMBERS
CONTRIBUTIONS - EMPLOYER
TOTAL ADDITIONS
DEDUCTIONS FROM RESERVE
PAYMENT TO RETIREES
DROP WITHDRAWALS
REFUNDS TERM EMPLOYEES
OFFICE EXPENSES
COMPUTER/SUPPLY/SOFTWARE/MAINT
AUDIT FEES
PROFESSIONAL SERVICES
PENSION ADMINISTRATOR
BUSINESS MEETINGS
TOTAL DEDUCTIONS
NET CHANGE IN FUND RESERVE
Current
Amount
3,374.72
(452,047.36)
67,030.59
.00
101,831.24
407,548.38
127,737.57
278,229.8511"
7,196.521/
.00
.00 ,
115.08 ./
2,500.00...........
629.75t--
1,671.01v
5,907.08f...-
296,249.29
(168,511.72)
YTD
Amount
6,749.44
792,119.24
108,693.61
58.30
154,959.22
407,548.38
1,470,128.19
555,223.83
24,393.04
2,145.32
37.18
1,405.45
2,500.00
629.75
3,342.02
10,722.49
600,399.08
869,729.11
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ASSETS
CHECKING - SUNTRUST
RECEIVABLE-SOLD SECURITIES
RUSSELL TRUST INVEST
TOTAL ASSETS
LIABILITIES AND FUND RESERVES
ACCOUNTS PAYABLE
TOTAL LIABILITIES
POLICE PENSION RESERVE
NET CHANGE IN FUND RESERVE
RESERVE BALANCE
TOT. LIABILITY & FUND RESERVES
BALANCE SHEET
Year-To-Date As Of
10/31/2010 vV-' f~l
~O'IV ~(Y
. r,t1.WI
J't
):: t fl'
.; I~;- ., ~~
73,565.05
266,766.11
51,252,055.26
51,592,386.42
------------------
------------------
174,600.92
174,600.92
50,379,544.67
1,038,240.83
51,417,785.50 .
51,592,386.42
------------------
------------------
.,
/~I__; ('. ~ l.
..' -~
tic'---
CITY OF BOYNTON BCH POLICE OFFICERS' PENSION FUND
ANALYSIS OF CHANGE IN FUND RESERVE
For The Period 10/01/2010 To 10/31/2010
Current
Amount
YTD
Amount
ADDITIONS TO RESERVE
DROP LOAN REPAYS
UNREALIZED G/L RUSSELL
RUSSELL REALIZED G/L
MISCELLANEOUS INCOME
CONTRIBUTIONS - MEMBERS
3,374.72
1,244,166.60
41,663.02
58.30
53,127.98
3,374.72
1,244,166.60
41,663.02
58.30
53,127.98
TOTAL ADDITIONS
1,342,390.62
1,342,390.62
DEDUCTIONS FROM RESERVE
PAYMENT TO RETIREES
DROP WITHDRAWALS
REFUNDS TERM EMPLOYEES
OFFICE EXPENSES
COMPUTER/SUPPLY/SOFTWARE/MAINT
PENSION ADMINISTRATOR
BUSINESS MEETINGS
276,993.98
17,196.52
2,145.32
37.18
1,290.37
1,671.01
4,815.41
276,993.98
17,196.52
2,145.32
37.18
1,290.37
1,671.01
4,815.41
TOTAL DEDUCTIONS
304,149.79
304,149.79
NET CHANGE IN FUND RESERVE
1,038,240.83
1,038,240.83
THE LAw OFFICES OF
PERRY ~ JENSEN, LLC
ANN H. PERRY
aperry@perryjensenlaw.com
BONN I SPATARA JENSEN
bsjensen@perryjensenlaw.com
August 22,2011
Via Email
Boynton Beach Police Pension Fund
Sgt Gary Chapman, Chairman
100 East Boynton Beach Boulevard
Boynton Beach, FL 33425
Re: LeQal Services Provided Invoice #70585
Dear Gary:
Enclosed please find the Firm's invoice for services rendered for the
period that ended 8/15/2011. Thank you for your payment of $1,250.40. Your
current balance due is $1,424.38.
If you have any questions, please do not hesitate to contact me.
Sincerely yours,
~/''''''L-
f : I I
1 / ~.;1\q
j. I
B 'SJ ' t./
onnr . ensen
BSJ/lg
Enclosure
Copy to: Barbara LaDue Via Email Only
G [(ry I
please-
~Je (f({.\VJ Vou{
{Qft( ~ b~ \~5 L}Je(t-
~ V\ef+ iilu01le ,,0\\\
',.1'-R..~ .
fe-rltrf ~ (PI --rf~ V\ ~ S .
IV\o. }Y(j
400 EXECUTIVE CENTER DRIVE, SUlTE 207.:- WEST PAlM BEACH, FLORIDA 33401-2922
PH: 561.686.6550 .:. Fx: 561.686.2802
() oft Y0cc-r
P(J~)~
pn {\ tv6d
co'({eG-t/y
~I'
ttlfll;;lffl:;j~fT.kc.
THE LAW OFFICES OF PERRY & JENSEN, LLC
400 Executive Center Drive
Suite 207
West Palm Beach, FL 33401-2922
Invoice submitted to:
Boynton Beach Police Pension
ATTN: Gary Chapman, Chairman - via email
100 E. Boynton Beach Blvd.
Boynton Beach, FL 33425
Copy to: Barbara LaDue - Via Email
August 19,2011
In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS:
Client 1 File No.: 0188
Invoice #70585
Professional Services
Annual Audits
Annual Audits
7/26/2011 BSJ Correspondence with Arianna Godoy with Goldstein Schechter Koch,
PA re: Termination of Auditing Services
Annual Audits
Annual Audits
BSJ Telephone call with Clement Johns
Annual Audits
Annual Audits
7/27/2011 LG E-mail to Arianna Godoy, Gary Chapman, Toby Athol, Barbara LaDue, &
Clement Johns with Goldstein Schechter Koch, PA re: Termination of
Auditing Services
Annual Audits
SUBTOTAL:
H rs/Rate
0.50
200.00/hr
0.35
200.00/hr
0.10
75.00/hr
0.95
Amount
100.00
70.00
7.50
177.50]
Boynton Beach Police Pension
Attendance at Trustee Meetinas
Attendance at Trustee Meetings
8/9/2011 BSJ Attend Meeting
Attendance at Trustee Meetings
SUBTOTAL:
Inv Mar - Frank Russell
Inv Mgr - Frank Russell
8/8/2011 LG E-Mail to Glenn Harris re: SEC Rule "Pay to Play" Compliance
Inv Mgr - Frank Russell
Inv Mgr - Frank Russell
8/9/2011 BSJ Conference with Glenn Harris re: SEC "Pay to Play"
Inv Mgr - Frank Russell
Inv Mgr - Frank Russell
8/11/2011 BSJ Review email from Peter Delyanis
Review Contract
Review Advisers Act
Review Investment Manager Definision under ERISA (3)(38)
Inv Mgr - Frank Russell
SUBTOTAL:
Meetinq Notices and Aaendas
Meeting Notices and Agendas
8/8/2011 LG Prepare Attorney Report, Handouts, and Notebook for upcoming
Meeting - 8/9/11
Meeting Notices and Agendas
Meeting Notices and Agendas
8/15/2011 KS Review Meeting Folder - post meeting
Meeting Notices and Agendas
SUBTOTAL:
Hrs/Rate
3.00
200.00/hr
3.00
0.10
75.00/hr
0.25
200.00/hr
0.50
200.00/hr
0.85
1.50
75.00/hr
0.25
75.00/hr
1.75
Page
2
Amount
600.00
600.00]
7.50
50.00
100.00
157.50]
112.50
18.75
131.25]
Boynton Beach Police Pension
Hrs/Rate
Participant - Jones
Participant - Jones
8/3/2011 BSJ Review email forwarding IA report and PTI Agreement
Participant - Jones
Participant - Jones
0.75
200.00/hr
8/4/2011 BSJ Conference with Larry Fagan, Ernie George, & Gary Lippman re: PTI
Participant - Jones
0.50
200.00/hr
SUBTOTAL:
1.25
State Monies
State Monies
8/10/2011 BSJ Review emailed spreadsheets from Trish Shoemaker
Research last year distribution amounts
E-mail to Trustees re: Amount of State Money
State Monies
0.35
200.00/hr
SUBTOTAL:
0.35
For professional services rendered
8.15
Additional Charges:
Annual Audits
7/27/2011 United Parcel Service Invoice No.: 0000F49280311
Tracking #1ZF492804290713390
to Arianna Godoy, Goldstein Schechter Koch, PA re: Termination of Auditing Services
United Parcel Service Invoice No.: OOOOF49280311
Tracking #1 ZF492804290713390
Pickup Request No.: 293752Q5HSO
Re: Termination of Auditing Services
SUBTOTAL:
Bill File
8/15/2011 Copy Charges
Page
3
Amount
150.00
100.00
250.00]
70.00
70.00]
$1,386.25
8.91
6.57
15.48]
22.65
Boynton Beach Police Pension
SUBTOTAL:
Total additional charges
For professional services rendered
Total amount of this bill
Previous balance
Balance due
"?~~()+ o.\-Jt II (;)50.10 CU"r,vecl tL~(
-+\~ ?, \',,+01..-u+. ~cUl~ vLU e. .~ \ ~ ~ ~ . 3>8':
Page
4
Amount
22.65]
$38.13
8.15 $1,424.38
$1,424.38
$1,250.40
$2,674.78
GRS
Gabriel Roeder Smith & Company
Consultants & Actuaries
One East Broward Blvd.
Suite 505
Ft. Lauderdale, FL 33301-1827
'154.527.1616 phone
'154.525.0083 fax
www.gabrielroeder.com
August 31, 2011
CONFIDENTIAL
Ms. Barbara LaDue
Pension Administrator
Boynton Police & Fire Pension Funds
Renaissance Executive Suites
1500 Gateway Blvd., #220
Boynton Beach, Florida 33426
Re: Boynton Beach Police Retirement System
Dear Barbara:
You have asked us to verify the retirement benefits for the following participant:
DANYSH, Frank J. (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.
The actuarial equivalence assumptions used to compute optional fonns were an 8.0% annual rate of return,
and the 1983 GA Mortality Table blending 80% male rates and 20% female rates.
We welcome your questions and comments.
Sincerely yours,
~~
J. Stephen Palmquist, ASA
Senior Consultant and Actuary
JSP/ib
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, legal advice or investment advice.
BOYNTON BEACH POLICE & FIRE PENSION FUNDS
PENSION ADMINISTRATION MEMO
TO: Rion Broshears, GRS
FROM: Barbara La Due, Pension Administrator
DATE: August 23, 2011
SUBJECT: Boynton Police - Verification of Retirement Benefit
Rion:
Please review and verify the pension benefit for the Boynton Police Officers' Pension Board:
1) Frank J. Danysh, SS# 453-59-XXXX, retired into DROP 7-31-2011, effective 8-1-2011, Life
10YrC&C - $6,790.04.
Thank you.
FILt
CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM
FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 1
~~~ August 22, 2011
FiL~
NAME DANYSH, FRANK J # 1180 SSN 453-59-xxxx DEPT 21
ADDRESS 9313 PALOMINO DR YTI: CONTR. 6,286.57
LAKE WORTH, FL 33467 CONTR (TAX) 94,231. 09
BIRTH 09/27/1966 CONTR (NTX) 4,593.71
PEN HIRE 01/24/1992 BALANCE 98,824.80
ADJ HIRE 07/24/1991
RETIRE 07/31/2011 TYPE Nt;>
LAST SERV 07/31/2011 60 MO EARN 581,445.87
ELIG NORM 07/24/2011 AVG MO EARN 9,690.76
ELIG EARLY 00/00/0000 SERV AT TERM 20 0 7
100% VEST 01/24/1997 AGE AT RETIRE 44 10 4
COMMENCE 08/01/2011 COM ANB/DIFF 45 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 146.26/EJ HOURLY RATE 41.050
SIC HRS/CD 127.38 S4 VAC SIC PAYOUT 14,416.43
ACCRUE PER .00 EARLY OPTION
LAST PAY 20110801-20110814
TERM-DATE 00000000 QDRO
BENEFIT
6,790.04
EARLY REDUCTION FACTOR: .00000 EARLY RETIRE BENEFIT
.00
TEN YEAR CERTAIN & LIFE
6,790.04
LIFE ANNUITY FACTOR:
1.00669 MODIFIED LIFE ANNUITY
6,835.47
100% SURVIVOR FACTOR:
.00000 100% SURVIVOR ANNUITY
SURVIVOR BENEFIT
.00
.00
75% SURVIVOR FACTOR:
.00000 75% SURVIVOR ANNUITY
SURVIVOR BENEFIT
.00
.00
50% SURVIVOR FACTOR:
.00000 50% SURVIVOR ANNUITY
SURVIVOR BENEFIT
.00
.00
66% JOINT & LAST FACTOR: .00000 66% JOINT & LAST ANNUITY
SURVIVOR BENEFIT
.00
.00
50% JOINT & LAST FACTOR: .00000 50% JOINT & LAST ANNUITY
SURVIVOR BENEFIT
.00
.00
EXCLUSION RATIO USING SAFE HARBOR METHOD:
NUMBER OF EXPECTED PAYMENTS
TAX-FREE PORTION OF MONTHLY BENEFIT
DATE WHEN BENEFIT BECOMES FULLY TAXABLE
ANNUITY
360
12.76
08/01/2041
JOINT SRV
o
.00
00/00/0000
Prepared by
* indicates manual override
CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM
FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 2
August 22, 2011
H I G H
FRANK J DANYSH
YEA R
PAY EFF
07/04/11
06/20/11
06/06/11
OS/23/11
05/09/11
04/25/11
04/11/11
03/28/11
03/14/11
02/28/11
02/14/11
01/31/11
01/17/11
01/03/11
12/20/10
12/06/10
11/22/10
11/08/10
10/25/10
10/11/10
09/27/10
09/13/10
08/30/10
08/16/10
08/02/10
07/19/10
TOTAL
WEEKS
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
52.0
ONE
WAGES
5,128.18
3,304.56
4,928.24
4,751.60
4,255.85
4,105.05
3,794.02
5,393.22
5,979.83
5,466.85
5,367.37
3,882.90
4,392.42
3,794.02
6,988.86
4,717.67
4,944.23
4,871.61
3,955.74
4,717.67
3,489.29
8,353.82
4,820.29
4,228.21
3,978.76
4,289.78
123,900.04
H I G H
PAY EFF
07/05/10
06/21/10
06/07/10
OS/24/10
05/10/10
04/26/10
04/12/10
03/29/10
03/15/10
03/01/10
02/15/10
02/01/10
01/18/10
01/04/10
12/21/09
12/07/09
11/23/09
11/09/09
10/26/09
10/12/09
09/28/09
09/14/09
08/31/09
08/17/09
08/03/09
07/20/09
TOTAL
YEA R TWO
WEEKS
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
52.0
WAGES
5,918.40
3,858.75
4,532.94
4,628.45
4,963.99
4,228.21
4,532.94
4,782.39
4,269.30
4,081.41
4,802.97
3,404.08
4,623.99
3,958.27
3,899.84
3,773.54
4,023.00
4,943.49
3,653.54
4,758.76
8,559.11
3,838.27
4,184.05
3,284.08
5,251.36
4,207.73
116,962.86
CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM
FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 3
August 22, 2011
FRANK J DANYSH
H I G H Y E A R T H R E E H I G H YEA R F 0 U R
PAY EFF WEEKS WAGES PAY EFF WEEKS WAGES
05/11/09 2.0 4,820.33 05/12/08 2.0 5,636.26
04/27/09 2.0 4,703.47 04/28/08 2.0 3,044.48
04/13 /09 2.0 4,204.57 04/14/08 2.0 4,241. 66
03/30/09 2.0 4,500.78 03/31/08 2.0 3,532.55
03/16/09 2.0 3,823.38 03/17/08 2.0 3,845.10
03/02/09 2.0 4,426.33 03/03/08 2.0 5,336.42
02/16/09 2.0 3,803.25 02/18/08 2.0 4,583.53
02/02/09 2.0 3,701.90 02/04/08 2.0 4,407.40
01/19/09 2.0 4,044.73 01/21/08 2.0 4,077.37
01/05/09 2.0 3,852.82 01/07/08 2.0 3,396.88
12/22/08 2.0 4,547.80 12/24/07 2.0 5,560.95
12/08/08 2.0 3,837.65 12/10/07 2.0 3,478.22
11/24/08 2.0 4,366.70 11/26/07 2.0 4,068.00
11/10/08 2.0 3,762.27 11/12/07 2.0 4,137.32
10/27/08 2.0 3,831.83 10/29/07 2.0 4,233.79
10/13/08 2.0 4,426.33 10/15/07 2.0 3,967.87
09/29/08 2.0 3,535.61 10/01/07 2.0 4,740.98
09/15/08 2.0 6,602.67 09/17/07 2.0 6,966.62
09/01/08 2.0 4,134.52 09/03/07 2.0 4,174.14
08/18/08 2.0 3,044.48 08/20/07 2.0 3,638.73
08/04/08 2.0 3,335.73 08/06/07 2.0 2,985.60
07/21/08 2.0 3,784.34 07/23/07 2.0 3,693.59
07/07/08 2.0 3,864.03 07/09/07 2.0 3,863.29
06/23/08 2.0 5,120.10 06/25/07 2.0 3,583.88
06/09/08 2.0 5,223.20 06/11/07 2.0 3,397.02
OS/26/08 2.0 3,767.54 OS/28/07 2.0 3,529.02
TOTAL 52.0 109,066.36 TOTAL 52.0 108,120.67
CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM
FINAL WORKSHEET OF RETIREMENT BENEFITS PAGE 4
August 22, 2011
FRANK J DANYSH
H I G H Y E A R F I V E
PAY EFF WEEKS WAGES
05/14/07 2.0 3,090.17
04/30/07 2.0 4,356.99
04/16/07 2.0 3,583.88
04/02/07 2.0 4,231.63
03/19/07 2.0 3,831.33
03/05/07 2.0 2,846.40
02/19/07 2.0 4,153.49
02/05/07 2.0 3,943.58
01/22/07 2.0 3,726.83
01/08/07 2.0 3,351.44
12/25/06 2.0 5,296.48
12/11/06 2.0 3,316.61
11/27/06 2.0 4,144.79
11/13/06 2.0 3,518.37
10/30/06 2.0 4,553.10
10/16/06 2.0 4,240.60
10/02/06 2.0 6,268.50
09/18/06 2.0 3,584.73
09/04/06 2.0 4,808.48
08/21/06 2.0 3,026.73
08/07/06 2.0 3,974.47
07/24/06 2.0 4,929.01
07/10/06 2.0 4,927.68
06/26/06 2.0 4,248.27
06/12/06 2.0 4,828.37
OS/29/06 2.0 4,142.74
05/15/06 1.0 2,054.84
TOTAL 53.0 108,979.51
CITY OF BOYNTON BEACH POLICE OFFICERS' RETIREMENT SYSTEM
FINAL STATEMENT OF RETIREMENT BENEFITS
_ August 22, 2011
FiL~
r
Participant's Name: FRANK J DANYSH
Social Security #: 453-59-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 August 1, 2011 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 $ 6835.47 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.
u~6J 2. TEN YEAR CERTAIN AND LIFE THEREAFTER: This option provides
~IY payments of $ 6790.04 to you as long as you live. If you should
die before 120 monthly payments have been made, the monthly payment of
$ 6790.04 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. 75% 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. 66-2/3% 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: 09/27/1966
Date of Termination: 07/31/2011
Avg Final Monthly Comp: $9,690.76
Beneficiary Name:
Pension Hire Date: 01/24/1992
Adjusted Hire Date: 07/24/1991
Years of Credited Service: 20
Date of Birth: 00/0010000
Page 2
Participant's Name: FRANK J DANYSH
Social Security #: 453-59-xxxx
Accumulated Contributions: $98,824.80
After-Tax Contributions:
$4.593.71 Pre-Tax Contributions: $94,231.09
Nontaxable Portion of Life
Annuity Monthly Benefit:
Number of Months Nontaxable
$12.76 Portion Continues:
360
Nontaxable Portion of Joint
Survivor Monthly Benefit:
Number of Months Nontaxable
$.00 Portion Continues:
o
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
confirm the information
above, including my choice
shown above to be correct.
00/ 9~
of annuity form, and
PARTICIPANT'S SIGNATURE:
DATE: <8-).). d
BENEFICIARY'S SIGNATURE:
DATE:
Calculation Date:
D.R.O.P.
DEFERRED RETIREMENT OPTION PLAN
for
THE BOYNTON BEACH POl.ICE PENSION FUND
I have received a copy of the provisions of the DROP contained in the Pension Plan.
I am in full agreement with the terms set forth. I have been advised to seek the counsel of
a qualified tax advisor regarding the tax consequences to me of entering the DROP. I fully
understand that my participation in the DROP shall terminate at the end of five (5) years
or thirty (30) years of service, whichever comes first. Failure to end DROP participation
may result in penalties at the discretion of the Trustees, up to and including forfeiture of the
DROP account.
I, Ff<./JIIJ K. ~ O/ff1J I(Sfj
(Print Namtt)
, have entered the Boynton
Beach Police Officers' Pension Fund DROP on
41( ~ / I c:<(!) / / . My pension
(Entttr Date)
benefit and DROP participation is based on C:<tJ Years &0 Months LDays of
service. In compliance with Ordinance No. 08-008, Sec. 18-175 (passed 05-06-08) this will
establish .:stilL Y .3 f,l c:< () /6 as my irrevocable resignation date with the City of
(Entttr Dattt)
Boynton Beach.
Witness:
aK~
f (Signature)
~R/JI\I K 'Y OAfl!,/SH
(Print Name)
Date: 7-r::l~ -/1
THE LAW OFFICES OF
PERRY ~JENSEN, LLC
ANN H. PERRY
a perry@perryjensenlaw.com
BONNISPATARAJENSEN
bsjensen@perryjensenlaw.com
MEMORANDUM
To:
Board of Trustees
Boynton Beach Police Officers' Pension Fund
From:
BonniS.Jensen
Subject:
Ordinances:
Amending Palm Beach County Code of Ethics;
· Amending the Inspector Generals' Office; and
Amending the Commission on Ethics.
Date:
June 9. 2011
Effective June 1,2011, the Palm Beach County Commission amended the County
Code regarding the Palm Beach County Code of Ethics, the Inspector Generals' Office,
and the Commission on Ethics.
JURISDICTION
This law is applicable to all 38 municipalities and the County. The Ordinances are
applicable to pension plans as follows:
1. Palm Beach County Code of Ethics - The ordinance addresses the ethical
conduct of Officials and Employees of the County and the municipalities of the
County. Officials include members appointed by the county commissioners, mayor
or local municipal governing bodies to serve on any advisory, quasi-judicial, or other
Board of the county, state or other regional local municipal or corporate entity.
Note: This section appears to only cover Trustees appointed by the county or
municipality. Trustees elected by the membership or Union would be
covered as employees. The application to the Trustee appointed by the
Board is not clear.
2. Commission on Ethics - The ordinance provides for the Commission's jurisdiction
to "extend to any person required to comply with the countywide code of ethics, the
county lobbyist registration ordinance, and the county post-employment ordinance"
and may extend to additional local ordinances.
3. Inspector Generalst Office - The ordinance has several jurisdictional provisions:
a. Under Section 2-421, the law applies to:
400 EXECUTIVE CENTER DRIVE, SUITE 207 .:. WEST PALM BEACH, FLORIDA 33401-2922
PH: 561.686.6550 .:. Fx: 561.686.2802
~IJ
t'J~"'''i':,:;t,'';;.r.!t.c
Board of Trustees
Boynton Beach Police Officers' Pension F-unc
Ethics Ordinances
June 9, 2011
Page 2 of 8
Board of County Commissioners and all county departments;
The 38 municipalities that approved the charter amendment on
November 2, 2010;
Any other public entity that elects to be bound by the Article by
entering into a memorandum of understanding; and
Any municipality formed after January 1, 2011
Note: This section does not clearly include pension funds and other
boards.
b. Under Section 2-423, the inspector general has authority to make
investigations of county or municipal matters and conduct audits of "all
elected and appointed county and municipal officials and employees" and
entities receiving county or municipal funds.
LAW PROVISIONS
1. Code of Ethics
2-443 Prohibited Conduct:
a. Misuse of office - Official shall not use his or her office for the special
financial benefit of:
· himself/herself
spouse or domestic partner
· other relatives or their spouses or domestic partners
outside employer
customer or client of outside employer
· substantial debtor or creditor (substantial means at least $10,000)
a not for profit organization that he or she (or their spouse or domestic
partner) is an officer or director.
b. Corrupt misuse of office - corrupt means "done with wrongful intent" and for
purpose of obtaining a benefit inconsistent with the performance of public
duties.
c. Disclosure of voting conflicts - Requires members to file Form 8b for any of
the situations in a above and the form must also be submitted to the County
Commission on Ethics.
d. Contractual relationships - Officials and employees cannot conduct business
Board of Trustees
Boynton Beach Police Officers' Pension Fund
Ethics Ordinances
June 9, 2011
Page 3 of 8
with their respective county or municipality. The prohibition does not apply
to advisory board members if the subject contract or transaction is disclosed
at a public meeting and the advisory board does not regulate such contract
or transaction.
Note: Is the Pension Board an advisory Board?
e. Exceptions and waiver - provides for waivers of subsection d.
f. Travel Expenses - No official or employee shall accept any travel expenses
from any contractor, vendor, service provider, bidder or proposer including
· transportation;
· lodging;
o meals;
· registration fees; and
· incidentals.
Note: The Board of County Commissioners or the local municipal
governing body can waive the requirements of this section by
majority vote.
Note: The provisions do not prohibit expenses paid by other
governmental entities or organizations of which the "county" or
"municipality" is a member if the travel is related to that
membership.
Note: This section does not seem to apply to advisory boards, just
officials and employees in their personal capacity. Vendor
definition refers to County or municipal vendors, service
providers, or contractors.
g. Contingent fee prohibition. No person may pay give or agree to pay a
contingency fee. No person may receive or agree to receive a contingency
fee.
"Contingency fee" means compensation (including non-monetary)
which is dependent upon passage, defeat or modification of a
legislative act, action or decision.
Ordinance does not prohibit real estate brokers acting in the course
of their profession.
Ordinance does not prevent the receipt of a commission to a
salesperson in legitimate governmental business.
Board of Trustees
Boynton Beach Police Officers' Pension FUr1ej
Ethics Ordinances
June 9, 2011
Page 4 of 8
Ordinance does not prohibit an attorney from representing a client in
a judicial proceeding for formal administrative hearing pursuant to a
contingent arrangement.
h. Honesty in applications for positions.
I. Disclosure or use of certain information. Current and former officials and
employees cannot use insider information for their own or another person's
personal gain or benefit.
2-444 Gift Law:
a. No covered person may solicit or accept a gift with a value greater than
$100.00 in the aggregate for the calendar year from anyone who is a vendor
or a lobbyist. No vendor or lobbyist can give a gift with a value greater than
$100.00 in the aggregate for the calendar year to any official or employee
Note: Standard is whether the person knew or should have known that the
donor was a vendor, lobbyist, official or employee.
b. Same rule as a above for advisory boards limited to vendors and lobbyists
of the board.
c. This section prohibits solicitation of gifts by officials or employees for their
personal benefit or the personal benefit of a relative or household member
of the official or employee.
d. This section defines the principal or employer of a lobbyist includes officers,
partners or directors of the principal or employer entity.
e. This section prohibits the giving and receiving of a gift if it is given or received
for the performance or non-performance of official duty.
f. Any official or employee who receives a gift in excess of $1 00 shall report the
gift.
. Reporting individuals shall file a copy of the gift reports required by
S112.3148 with the county commission on ethics
Note: Trustees are reporting individuals.
. Non-reporters under state law:
Board of Trustees
Boynton Beach Police Officers' Pension Fund
Ethics Ordinances
June 9, 2011
Page 5 of 8
o These individuals are not required to report gifts in excess of
$100 from a personal friends or co-worker provided it is not to
influence the performance of the official or employee's duties.
o If the personal friend or co-worker is a vendor, lobbyist, or
principal or employer of a lobbyist, then the official or
employee may not accept a gift in excess of $100.
o All other gifts in excess of $1 00 must be reported by November
1, 2011 of each year beginning November 1, 2011 on a form
created by the county commission on ethics.
g. A gift is the transfer of anything of economic value without adequate and
lawful compensation. Food and beverage at a single sitting is a single gift.
Recipients may consult Florida Statutes 112.3148 and the Florida
Administrative Code for determining the value of gifts.
..
I.
Gift does not include:
.. Political contributions
· Gifts from relatives, domestic partners and dependents named
in the tax return or one's household member.
Awards for professional or civic achievement
Gifts solicited or accepted in performance of official duties for
use solely by the governmental employer for a public purpose
Publicly advertised offers for goods and services available to
the general public
Inheritance or other devise
Registration fees and other costs associated with educational
or governmental conferences, either waived or inapplicable
pursuant to section 2-443(f) provided attendance is for
governmental purpose;
Ticket or admission to public events related to official county
or municipal business if furnished by a non-profit sponsor or
pursuant to contract between event's non-profit sponsor and
the county or municipality, provided the sponsor does not
employ a lobbyist and it is not given by a lobbyist. These
tickets must be disclosed under the gift law reporting.
expenditures made in connection with an event sponsored by
a nonprofit organization funded in whole or in part with public
funds whose primary purpose is to encourage and attract
tourism provided the organization does not employ a lobbyist
and the invitation is made by a representative of the
organization who is not a vendor or lobbyist, principal or
employer of a lobbyist.
.
.
.
.
.
.
.
Board of Trustees
Boynton Beach Police Officers' Pension F uno
Ethics Ordinances
June 9, 2011
Page 6 of 8
h. Solicitation of contributions on behalf a non-profit charitable
organization. This type of solicitation is permissible so long as there
is no quid pro quo. Solicitation is prohibited if the person or entity has
a pending application before the county or municipality
Note: These transactions shall be disclosed on a county commission on
ethics form which will include the entity for whom the funds were
solicited as well as the entity that was contacted for the solicitation
and the amount solicited or pledged.
Note: County or municipal staff and resources may not be used for these
solicitations.
2-445 Anti-Nepotism law - An official or employee may not employ, promote,
advance or advocate for hire, promotion or advancement of a relative or domestic
partner in a county Of' municipal position in which the official or employee is serving
or exercises jurisdiction or control.
Note: This section does not apply to volunteers in police/fire or appointments to
boards other than land use planning or zoning boards if the municipality has
less than 35,000 in population.
Note: Relative means spouse, parent, child, sibling, uncle, aunt, first cousin,
nephew, niece, father-in-law, mother-in-law, son-in-law, daughter-in-law,
brother-in-law, sister-in-law, stepfather, step mother, stepson, stepdaughter.
stepbrother, stepsister, half-brother, or half-sister.
2-446 Ethics Training - Ethics training is available.
2-447 Noninterference - It is a violation of the Ordinance to retaliate against person
cooperating with the commission on ethics or the inspector general or to interfere in an
investigation.
2-448 Administration, enforcement and penalties
a. Commission on ethics is empowered to review, interpret, render advisory
opinions and enforce the code of ethics.
b. A finding of a violation shall subject the person or entity to a public
reprimand, a fine up to $500.00 or both. Restitution may be ordered.
c. If violation resulted in a contract or other benefit, then that contract or benefit
may be rescinded.
Board of Trustees
Boynton Beach Police Officers' Pension Fund
Ethics Ordinances
June 9, 2011
Page 7 of 8
d. Willful violations of Prohibited conduct sections, certain gift law violations and
Noninterference may be reported to the State Attorney's office and may
subject the violator to prosecution for a first degree misdemeanor with a fine
up to $1,000 and up to one year in jail.
2. Commission on Ethics: This ordinance establishes the Palm Beach County
Commission on Ethics to review, interpret, render advisory opinions and enforce the
Palm Beach County Code of Ethics countywide.
3. Inspector General's Office: This Ordinance establishes the Office of the Inspector
General.
2-423 Functions, authority and powers
1. Inspector General has the authority to:
a. make investigations of county or municipal matters and publish the
results;
b. review and audit past, present, and proposed county or municipal
programs; and
c. prepare reports and recommendations to the board of county
commissioners ("board").
Note: Parties receiving county or municipal funds shall fully cooperate with
the Inspector General.
2. Inspector General has the authority to conduct audits of the board, each
municipality, county administrator, city administrator, city manager, or other
municipal executive, all elected and appointed county and municipal
officials and employees, county and municipal departments, divisions,
agencies and instrumentalities, contractors, their subcontractors and lower
tier subcontractors, and other persons and entities doing business with the
county or a municipality and/or receiving county or municipal funds
regarding any such contracts or transactions with the county or municipality.
"Except as otherwise limited in this subsection, the inspector general's
jurisdiction includes but shall not be limited to all projects, programs,
contracts or transactions that are funded in whole or in part by the
county or any municipality."
Note: Terms "officials" and "employees" are not defined.
3. The Inspector General has the authority to require production of documents,
Board of Trustees
Boynton Beach Police Officers' Pension Funo
Ethics Ordinances
June 9, 2011
Page 8 of 8
to require parties receiving county funds to provide statements; and, to
administer oaths.
4. If a violation of any laws are suspected, the Inspector General shall notify the
appropriate law enforcement agency. The county or municipal management
must promptly notify the inspector general of possible wrong doing within the
Inspector General's jurisdiction.
5. Inspector General has the authority to audit, investigate, monitor, inspect and
review the procurement process.
Note: It is not clear which Entities' procurements are subject to this section.
6. Inspector General can receive complaints.
7. Inspector General can initiate investigations on own initiative
8. Inspector General shall be notified in writing prior to any meeting in which
procurement selection committee is meeting related to procurement of goods
or services "by the county or any municipality."
Note: Not clear that this section applies to pension funds.
9. Special districts and other public officials may elect to be subject to the
jurisdiction of the Inspector General by a agreement or memorandum of
understanding.
Note: Entities electing to participate will be subject to fees to fund the office
of the Inspector General.
10. Inspector General records are confidential.
11. Inspector General is considered a "whistleblower" under the law.
12. The Inspector General may recommend remedial action and provide
prevention training.
13. Inspector General shall establish policies and procedures and monitor costs
of investigations.
14. This law is not intended to abridge collective bargaining rights.
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