Exh 11City of Atlantic Beach Police Officers' Retirement System
Summary Annual Report
The City of Atlantic Beach Police Officers' Retirement System is a defined benefit pension plan
administered by a Board of Trustees. It was created by Chapter 99-1, Florida Statutes from City
Ordinance No. 58-75-4 and its amendments. It is intended to comply with Chapters 112 and 185, F.S.
The plan year ends on September 30, and records are maintained on a plan year basis.
The Board of Trustees is the Retirement System Administrator. The following individuals are
members of the Board of Trustees:
Henry Bartle Chair
B. Dale Hatfield Chair Pro-Tern
Tony F. Downing Secretary
Harry E. McNally Member
Richard T. Downes Member
The Board of Trustees is the agent for the service of legal process. Their address is:
Atlantic Beach City Hall
800 Seminole
Atlantic Beach,Florida 32233
A description of the benefits of the Retirement System and the sources of funding are attached. Claims
for benefits (retirement) should be filed with the Board of Trustees at the Human Resources
Department. If a claim is denied, you will be notified and informed of the procedure to request a
hearing before the Board of Trustees. Claim denials are generally limited to failure to meet the
eligibility requirements for a benefit.
As of September 30, 2003 there were 11 retired participants receiving annual benefits of$235,310 from
the Retirement System. Active members (sworn Police Officers) totaled 22 with an annual payroll of
1,129,034. There were also 4 vested terminated members eligible for future benefits.
City of Atlantic Beach Police Officers'Retirement System 1-
The City contributed $155,752 and $88,641 was received under the provisions of Chapter 185, F.S.,
during the 2002-2003 fiscal year. The additional premium tax revenue under Chapter 99-1, Laws of
Florida, as of September 30, 2003 was $33,782. The taxpayer contribution rates for the fiscal year,
expressed as percents of payroll were as follows:
Percents of
Contribution for Active Member Payroll
Normal Cost and Administrative Expenses 14.81%
Temporary full funding credit 0.26
Unfunded Actuarial Accrued Liabilities 2.98
Total 18.05%
The September 30, 2003 actuarial report indicated that the actuarial accrued liability under
Governmental Accounting Standard No. 25 was 73.1% funded.
Contributions to the System during the year were equal to or greater than the actuarially determined
amount needed to comply with the provisions of Chapter 112, Florida Statutes.
The actuary concluded that the contribution requirement is sufficient to meet the system's level
percent-of-payroll funding objective, presuming continued receipt of contribution requirements when
due.
A copy of the annual audit report is available for inspection in the Finance Department.
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Summary of Benefit Provisions
September 30, 2003)
Normal Retirement (No reduction factor for age):
Eligibility
Any age with 25 years of service or age 50 with 20 or more years of service or age 55 with
10 or more years of service or age 60 with 5 or more years of service.
Annual Pension
Total service times 3.00% of final average salary.
Total pension cannot exceed 100% of final average compensation. The normal form of
pension is payable for life. Optional forms are available on an actuarial equivalent basis.
Type of Final Average Salary
One-sixtieth (1/60) of the aggregate amount of compensation paid a member during the
period of sixty (60) months of the member's credited service in which the aggregate
amount of compensation paid is greatest. The sixty (60) months of credited service must
be contained within the member's last one hundred twenty (120) months of credited
service. If a member has less than sixty (60) months of credited service, final average
compensation means the aggregate amount of compensation paid the member divided by
the member's months of credited service.
Early Retirement:
Eligibility—Age 50 with 5 or more years of service.
Annual Pension — Computed as a normal retirement pension with an actuarially equivalent
reduction per year by which the member's age at retirement precedes the member's normal
retirement age.
DROP (Deferred Retirement Option Plan):
Eligibility—Upon obtaining normal or early retirement eligibility(see above).
Members may continue employment for a maximum of 5 years.
Member contributions cease.
Actuarial equivalent reduction for entering the DROP prior to normal retirement age.
DROP accounts will be self directed for investment purposes.
DROP members are not eligible for death or disability benefits.
Deferred Retirement(Vested Benefit):
Eligibility- 5 or more years of service. Pension begins at normal retirement eligibility.Annual Pension - Computed as a normal retirement pension but based upon service and
final average salary at time of termination of employment.
Disability Retirement:
Eligibility - 5 or more continuous years of service. Service requirement waived for member
if disability is incurred in the line of duty.
Annual Pension - Computed as a normal retirement pension. Minimum benefit is 42% of
final average salary for members if disability is incurred in the line of duty.
City of Atlantic Beach Police Officers'Retirement System 3-
Death Before Retirement:
Eligibility- 5 or more years of service.
Annual Pension - Computed as a normal retirement pension.
Member Contributions:
Police Bargaining Unit: 1.000% of salary
Police - Other: 4.815% of salary
If you terminate employment and receive a refund of your own contributions, you forfeit
any rights to future benefits from the Retirement System. The taxable portion (moneycontributedonapre-tax basis) of any refund you receive is subject to an automatic 20%
withholding for federal income tax purposes, and a possible 10% excise tax. These taxes
can be avoided, however, if you roll the taxable portion over to an Individual Retirement
Account(IRA) of another qualified employer plan. This rollover will result in no tax beingdueuntilyoubeginwithdrawingfundsfromtheIRAofotherqualifiedemployerplan. The
rollover of the distribution, however, MUST be made directly by the Plan to your chosenIRAorotherqualifiedemployerplan.
Premium Tax Monies: A distribution of casualty insurance premium tax monies collectedbytheStatepursuanttoChapter185FloridaStatutes.
City Contributions: Actuarially determined amounts which together with Chapter 185
monies are sufficient to cover the requirements of the funding objective.
Overall Contributions: Following are the overall contribution rates for 2002, 2003 and2004:
Union *
Effective City Sec 185 Employee Total
10/01/2002 12.44% 5.61% 1.00%19.96%*10/01/2003 13.31% 5.43% 1.00%20.65%*10/01/2004 17.05% 7.26% 1.00%26.33%*
Totals also include the non-union contribution rate of 4.815%.
Forfeiture of Retirement Benefits: Retirement benefits granted by the Retirement System
are subject to forfeiture if an employee is convicted of an offense specified in Sections
112.3173 and 185.185, Florida Statutes, pursuant to procedures set forth in the cited statutes.
Claims Procedure: Claims for benefits (retirement) should be filed with the Board ofTrusteesattheHumanResourcesDepartment. If a claim is denied, you will be notified andinformedoftheproceduretorequestahearingbeforetheBoardofTrustees.
The preceding summary briefly describes the principal benefits of the Retirement System.
Said summary is not binding and should not be relied upon in any action concerning yourparticipationintheSystemofbenefitthereunder. Detailed benefit conditions and limitationsarecontainedinthePensionOrdinancewhichestablishedtheSystem. Interpretations of theOrdinancearemadebytheBoardofTrustees. The Ordinance and Board interpretations
govern the operation of the System and should not be consulted before you take any actionconcerningyourparticipationorbenefits. Copies are available at the Human ResourcesDepartment.
City ofAtlantic Beach Police Officers'Retirement System
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Accounting Information Submitted for Valuation
Revenues and Expenditures
September 30, 2003 September 30, 2002
Revenues:
a. Member Contributions 24,283 24,076
b. City Contribution 155,752 154,523
c. Premium taxes from State 88,641 85,719
Total Contributions 268,676 264,318
d. Investment income
1. Interest and dividends 2,732 7,271
2. Gain (loss) on investments 377,307 227,068)3. Investment expenses 34,705) 39,982)Total Investment Income 345,334 259,779)
e. Total revenues 614,010 4,539
Expenditures:
a. Refunds of member contributions 551 2,581
b. Benefit payments 220,258 205,164
c. Administrative expenses 0 0
d. Total expenditures 220,809 207,745
Net Income:
Total revenues minus total expenditures 393,201 203,206)
Summary of Assets (Market Value)
September 30, 2003 September 30, 2002
Cash and equivalents 22,389
Receivables
none none
Short term investment funds 100 2,557
U.S. government securities
none none
Bonds government
none
corporate
none
none none
mutual fund 1,785,672 1,708,037
Stocks common
none
preferred
none
none none
mutual fund 2,204,685 1,91 1,063
Payables
8,611) 10,623)
Total assets
4,004,235 3,61 1,034
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