Item 5B - Police Officers Actuarial Valuation ReportGRS
AGENDA ITEM# SB
MARCH 9, 2015
Gabriel Roeder Smith & Company
Consu ltants & Actuaries
CITY OF ATLANTIC BEACH POLICE OFFICERS' RETIREMENT
SYSTEM
ACTUARIAL VALUATION REPORT
SEPTEMBER 30, 2 01 4
ANNUAL EMPLOYER CONTRIBUTION
IS DETERMINED BY THIS VALUATION
TO BE PAID IN THE EMPLOYER FISCAL YEAR ENDING
SEPTEMBER 30, 2016
GRS
Febr uary 17, 20 I 5
Gn bricl Roeder Smi th & Compnny
C:un~ult.mt~ & Actmlr!l'\
Th e Board of Trus tees
City of At lantic Beac h
Police Office rs' Reti remen t Syste m
Atlan tic Beach, Florid a
D ea r Boa 1·d Members:
One Ea~t Brt~wnnl BlvJ.
~ui te505
Fr. l.nudc rd a lc, Fl. 3330 1·1 804
954.527.1616 phone
~54.525.0083 I:~x
www.!lil bricl roc dcr.co m
We are pleased t o sub mi t here in our September 30, 20 14 Actua r ia l Valua ti on Repo rt fo r the City of A tlantic Beach
Po lice O ffi cers' Retirement System. T he co ntributi on res ults apply to the City's ti sca l yea r end ing Se ptember JO,
20 16.
Th is repor t was prepa red at th e request of the Board of T ru stees and is intended for usc by th e Retiremen t Sys tem
and th ose designated or approved by the Board of T rustees. T hi s repo rt may be provided to parties oth er th an the
Retirement Sys tem on ly in its entirety and on ly w ith th e pe rmi ss i on of th e Board of T ru stees.
T he pur pose of th e valuati on is to meas ure th e Pl an's fun ding progress, to determi ne th e empl oye r co nt ri bution r ate
fo r the fi sca l yea r end in g Sep tember 30, 20 16.
Thi s report shoul d not be rel ied on f or any purp ose other than the purpose descr i bed above.
The developed find in gs i ncluded in thi s report co nsider data or other information through Sept em ber 30, 2014.
future actuar ial meHs urements may differ significantl y from th e curren t meas ure ments presented in thi s report due
to such fac tors as th e fo llowing: plan experience di ffering from th at anti cipa ted by th e eco nomi c or demo grap hic
ass umption s; changes in econo mi c or demograph i c ass umpti ons; i ncreases or decreases expec ted as part of th e
natural ope ration of th e meth odo l ogy used for these measurement s (such as th e end of an amorti zat ion pe ri od or
ad di ti onal cost or co nt ri but i on requ i rement s based on th e plan 's fund ed status); and cha nges in plan provi si ons or
applicable law. The scope of an ac l uar i al valua ti on docs not include an analysis of the potential range of such
fut ure measureme nts. Because of our rei iance on other so urces we d isclaim responsibi lity for any mate rial
ass umpti on or method sclectccl by oth er par ties.
T he ca lcul atio ns are base d upo n ass umpti ons rega rdin g future even ts, which may or may not ma teriali ze. T hey are
also ba se d upon plan prov isions th at arc outlin ed in thi s repo rt. l fyou have reason to believe th at the assump ti ons
th at we re used are unreasonab le, that th e pla n provisions are incor rec tl y described, or that co ndi t ions have changed
since th e ca lcu lat i ons were made, you should co ntact the auth or of this repott pri or to relyin g on in formati on in lh e
repott.
T he va luati on was based up on information fu rni shed by the City, co ncerni ng Pl an beneti ts, financ ial t ran sac tions,
pl an provi sions and active memb ers, termin ated memb ers, retirees and benefi ci ari es. We checked fo r internal and
year-to-ye ar co nsistency, but di d not oth erw ise audit th e data. We are not respo nsible for the acc uracy or
comp leteness of th e infonnat i on provid ed by th e City.
T he un dersigned actuaries are members of the Ame r ica n A cademy of A ctuar i es and meet the Qualification
Sta nd ards of th e American Academy of Act uaries to re nder the act uar i al opinions contained here in . The
The Board of Trustees
February 17,2015
Page 2
signing actuaries are independent of the plan sponsor.
This report has been prepared by actuaries who have substantial experience valuing public employee retirement
systems. To the best of our knowledge the information contained in this report is accurate and fairly presents
the actuarial position of the Retirement Plan as of the valuation date. All calculations have been made in
conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice
issued by the Actuarial Standards Board and with applicable statutes.
Respectfully submitted,
GABRIEL, ROEDER, SMlTH AND COMPANY
James J. Rizzo, ASA, MAAA
Senior Consultant & Actuary
Piotr Krekora, ASA, MAAA
Consultant & Actuary
Gabriel, Roeder, Smith and Company
STATEMENT BY ENROLLED ACTUARY
This actuarial valuation and/or cost determination was prepared and completed by me or under my direct
supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are
complete and accurate. In my opinion, the techniques and assumptions used are reasonable, meet the requirements
and intent of Part VII, Chapter 112, Florida Statutes, and are based on generally accepted actuarial principles and
practices. There is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which
liabilities or current costs have not been established or otherwise taken into account in the valuation. All known
events or trends which may require a material increase in plan costs or required contribution rates have been taken
into account in the valuation.
Signature
February 17,2015
Date
14-03355
Emollment Number
GRS
TABLE OF CQNTENTS
SECTION I.li!.]_ UQ!l
A EXECUTIVE SUMMARY A-I
B VALUATION RESULTS
I. Participant Data B-1
2. An nu al Req uired Co ntributi on B-2
3. Ac tuari al Val ue of Bcne tit s and Asse ts B-3
4. State Prem ium Tax Revenues B-4
5. Fin ancia l Soundness B-5
6. Ac tu aria l Gains and Losses B-9
7. Rece nt l li story of Valuati on Re s ult s B-13
8. Rece nt Hi story of Requit·ed and Act ual Co ntributions B-15
9. Act ua ri al Assump ti ons and Cos t Method B-16
c PENS I ON FUND INFORMATION
I. Summary o f Asse ts C-1
2. Summ ary of Fund 's In come and Di sbursement s C-2
3. Reco nci I iati on o f DROP Accou nt s C-3
4 . Actuaria l Valu e of As sets C-4
5. Inve stment Rate of Return C-6
D MISCELLANEOUS I NFORMAT I ON
I. Rec onc i I iati on of Membe rship Data D-1
2. Stati sti ca l Da ta D-2
E SUMMARY OF PLAN PROV I S IONS E-1
f COMPARATIVE SUMMARY OF PRINCIPAL F-1
VALUATION RESULTS
Circular 230 No tice: Pursuant to reg ulations issued by th e IRS, to lh e extent this communication (o r any
attachment) conce m .v tax molters, it is not intended or wril/en t o he used, and cannot be us ed, for th e purpose
of (i) avoiding tax-related penalties under th e Int emal Revenue Code or (ii) marketing or recommeuding to
another party any tc1x-re lated matter addressed within. J:.:och taxpayer should seek advice based on th e
individual 's circ umstonces from 011 independent tax advisor.
GRS
SECTION A
EXECUTIVE SUMMARY
GRS
EXECUTIVE SUMMARY
Comparison of Required Employer Contributions
The following is a comparison of required contributions developed in this year's and the last actuarial valuations:
Gross Contribution Requirement
As% of Expected Payroll
Expected Employee Contribution
As % of Covered Payroll
Required Employer/State Contribution
As% of Expected Payroll
Estimated State Contribution
As % of Covered Payroll
Required Employer Contribution
(If Made in Equal Monthly Installments)
As % of Covered Payroll
Required Employer Contribution
(If Made in Whole at the Beginning of the Year)
As % of Covered Payroll
$
$
$
$
$
$
935,544
68.14 %
109,844
8.00 %
825,700
60.14 %
96,217
7.01 %
729,483
53.13 %
702,834
51.19 %
$
$
$
$
$
$
780,505 $ 155,039
54.10 % 14.04 %
115,414 $ (5,570)
8.00 % 0.00 %
665,091 $ 160,609
46.10 % 14.04 %
96,217 * $ 0
6.67 % 0.34 %
568,874 * $ 160,609
39.43 % 13.70 %
545,246 *
37.79 %
157,588
13.40 %
*Results have been updated to reflect higher than expected State Contribution.
Minimum Required Contribution
As illustrated in the preceding chmi, the contribution necessary from the City and State to suppoti the current
benefits for the Police Officers is $825,700 for the fiscal year ending September 30, 2016. The City may be able to
use State premium tax moneys to satisfy part of that requirement, leaving the City contribution at $729,483
(assumed receipts are the same as in 2014). However, the City may need to contribute more, should receipts fi·om
the State fall short of the expected amount presented in the table above. Please note that the Required Employer
Contribution for that fiscal year is assumed to be deposited in monthly intervals throughout the year. For
completeness, we are also presenting an amount required to be contributed if deposited in a single sum at the
beginning of the contribution year.
GRS
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I A-1
Revisions in Benefits
There were no revisions in benefits for the current year.
Revisions in Actuarial Assumptions or Methods
Beginning with this September 30, 2014 Valuation DROP balances are being included in Actuarial Accrued
Liability and in Plan Assets. This change has been made for consistency with GASB Statements 67 and 68 in
treatment ofDROP Balances.
In addition, upon the Board's approval, the investment return assumption has been lowered from 8.0% to 7.0%
per year and assumed rate of inflation has been lowered from 3.0% to 2.5% per year. These changes increased
the required contribution by approximately $131,000.
Actuarial Experience
Actuarial gains occur in a year whenever the experience of the plan is better than was assumed. For example, if
investment performance were better than the level being assumed in the actuarial valuation and costing process,
then an actuarial gain results and would have the effect oflowering the Minimum Required Contribution for the
year. Whenever more employees terminate employment than were assumed would terminate, fewer employees
are then expected to actually retire from the City, resulting in an actuarial gain for the plan.
Actuarial losses occur in a year whenever the experience of the plan is worse than was assumed. In the examples
given above, if the reverse were to occur, then actuarial losses would result. As another example, if salaries
increased in one year were higher than assumed, an actuarial loss would occur.
The actuarial valuation cost method which determines the Minimum Required Contribution is designed to produce
contribution requirements which remain level as a percent of payroll whenever the experience of the plan matches
the actuarial assumptions used and in the absence of plan changes. Contribution Requirements are also level
whenever actuarial losses exactly offset actuarial gains.
Analysis of Change in Employer Contribution
The components of change in the actuarially required contribution are as follows:
Contribution rate last year
Payment on UAAL
Experience (gain)/loss
Change in administrative expense
Change in normal cost before expenses
Revision in benefits
Revision in assumptions/methods (Employee Contr. Rate)
Change in State Revenue
Contribution rate this year
39.43 %
4.73
1.19
(0.25)
(0.63)
0.00
9.00
(0.34)
53.13 %
The Employer Contribution increased from the last valuation due to the change in assumptions and for reasons
related to the Plan experience as discussed in the next paragraph.
There was a net actuarial gain (Unfunded Actuarial Accrued Liability is lower than projected), primarily due to
GRS
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I A-2
fewer retirements and more terminations than assumed. The gain was partially offset by losses from lower than
assumed investment return of 6.3% on the actuarial value of assets (compared to the 8.0% assumed) and higher
than expected salary increases of 7.8% versus a 7.5% assumption. A small increase in the assumed dollar amount
of the State Revenue is also helping to lower the City contribution and due to a recent payroll reduction it will
represent a larger percentage of the projected payroll.
One of the reasons for a contribution increase relates to changes in factors used in development the amortization of
the Unfunded Actuarial Accrued Liability. The current funding method employs amortizing unfunded actuarial
accrued liability as a level percent of payroll with the annual payroll growth rate assumed to be 3.5% in the long
term. However, in accordance with the requirements of Ch. 112.64 (5) (a), F.S. this assumed payroll growth
used in developing the amortization payments, cannot exceed the actual average annual payroll growth rate
based on the last 10 years. This limit has been affecting ammtization amounts for the last several years. With
the continued payroll contraction, the 1 0-year average payroll growth rate decreased from 1.88% as of the last
valuation to (0.49)% for the year ending 9/30/2014. With a negative 10-year change in total payroll, the payroll
growth rate used in development of amortization payment is set at 0%, which is equivalent to a level dollar
ammtization method. As a result, the ammtization payment of the UAAL increased this year significantly
contributing to an increase in the contribution requirement. In addition, the decrease in the payroll caused the
payment of the UAAL to be a greater percent of payroll.
The remainder of this Report includes detailed actuarial valuation results, financial information, miscellaneous
information and statistics, and a summary of plan provisions.
GRS
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation! A-3
SECTION B
VALUATION RESULTS
GRS
Number 21
Covered Annual Payroll $ 1,294,600
Average Annual Payroll $ 61,648
Average Age 38.3
Average Past Se1vice 9.5
Average Age at Hire 28.7
RETIREES; BE~mFI(:IARIEs, & DROPl\fEMBERS ·
Number
Annual Benefits
Average Annual Benefit
Average Age
Number
Annual Benefits
Average Annual Benefit
Average Age
Number
Annual Benefits
Average Annual Benefit
Average Age
City of Atlantic Beach Police Officers'
Retirement System
$
$
$
$
$
$
16
592,341
37,021
62.0
4
74,159
18,540
57.1
5
64,761
12,952
50.8
$
$
$
$
$
$
$
$
22
1,360,245
61,829
39.3
9.2
30.1
16
592,341
37,021
61.0
4
74,159
18,540
56.1
4
41,865
10,466
49.9
9/3 0/2014 Actuarial Valuation I B-1
A. Valuation Date September 30, 2014 September 30,2014 September 30, 2013
After Changes Prior to Changes
B. ARC to Be Paid During
Fiscal Year Ending 9/30/2016 9/30/2016 9/30/2015
c. Assumed Date(s) of Employer Contrib. Monthly Monthly Monthly
D. Annual Payment to Amortize
Unfunded Actuarial Liability
if Paid on the Valuation Date $ 535,271 $ 458,627 $ 414,495
E. Employer Normal Cost
(including Administrative Expenses)
ifpaid on the Valuation 208,220 164,527 175,752
F. Annual Required Contribution (ARC)
ifpaid on the Valuation Date: D+E 743,491 623,154 590,247
G. ARC Adjusted for Frequency of
Payments and Interest to Required Time
of Contribution 825,700 702,170 665,091
H. Covered Payroll for Contribution Year 1,373,048 1,373,048 1,442,670
I. ARC as % of Expected Covered
Payroll in the Contribution Year G + H 60.14 % 51.14 % 46.10 %
J. Estimate of State Revenue in
Contribution Year** 96,217 96,217 96,217 *
K. Required Employer Contribution (REC)
in Contribution Year 729,483 605,953 568,874 *
L. REC as % of Covered Payroll in
Contribution Year: K + J 53.13 % 44.13 % 39.43 %
M. Required Employer Contribution (REC)
if Paid on the First Day of the Contribution Year 702,834 580,786 545,246 *
*Results have been updated for the increase in the State Revenue.
**Chapter 185 Florida Statutes. The City contribution amount may need to be increased if the amount
received under the provisions of Chapter 185, Florida Statutes, is not sufficient to meet the total employer
contribution requirement.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-2
A. Valuation Date September 30, 2014 September 30,2014 September 30, 2013
After Changes Prior to Changes
B. Actuarial Present Value of All Projected
Benefits for
I. Active Members
a. Service Retirement Benefits $6,062,400 $5,183,557 $5,192,002
b. Vesting Benetits 495,685 403,097 411,721
c. Disability Benefits 205,831 180,238 199,745
d. Preretirement Death Benefits 47,624 40,954 43,825
e. Retum of Member Contributions 90,560 87,064 75,452
f. Total 6,902,100 5,894,910 5,922,745
2. Inactive Members
a. Service Retirees & Beneticiaries 6,755,105 6,199,609 6,280,862
b. Disability Retirees 799,683 734,720 746,335
c. Terminated Vested Members 398,047 339,265 210,876
d. Total 7,952,835 7,273,594 7,238,073
3. DROP Balances 346,448 * 346,448 * NIA
4. Total for All Members 15,201,383 13,514,952 13,160,818
c. Actuarial Accrued (Past Service)
Liability per GASB No. 25 12,656,462 11,422,126 10,895,233
D. Actuarial Value of Accumulated Plan
Benefits per FASB No. 35 11,006,207 9,942,741 9,438,659
E. Plan Assets
I. Market Value 8,128,264 * 8,128,264 * 7,331,629
2. Actuarial Value 8,269,551 * 8,269,551 * 7,428,849
F. Actuarial Present Value of Projected
Covered Payroll 11,713,889 11,380,585 12,024,091
G. Actuarial Present Value of Projected
Member Contributions 937,111 910,447 921,938
* Beginning with September 30, 2014 Valuation DROP balances are being included in Present Value
GRS
of Projected Benefits, Actuarial Accrued Liability and in Plan Assets.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation\ B-3
STATE PREMIUM TAX REVENUES
Year Ending 9/30/2014 Cumulative
A. Accumulated Excess Premium Tax Revenues
at the Beginning of the Year
B. Chapter 185 Receipts During Fiscal
Year Ending 9/30/20 14
C. Chapter 185 "Frozen" Receipts During
Fiscal Year Ending 9/30/1998
D. QualifYing Benefit Improvements
Since Chapter 99-1 Effective Date
E. Additionall85 Receipts During Fiscal
Year Ending 9/30/20 14 *
F. Accumulated Excess Premium Tax Revenues
as of 9/30/20 14 not less than beginning
of the year.
Minimum Compliance ($18,517)
A. Early retirement eligibility at 50 & 10
B. Normal retirement eligibility at 55 & 10
C. 10 year certain and life normal form
$ 120,454
96,217
70,289
18,517
7,411
120,454
Potential Future Benefits
Extra Benefits
A. None proposed
$
1,513,984
1,185,652
203,687
*Note: During the Fiscal Year ended 9/30/2014, "Chapter 185 receipts" totaled $96,217. This amount is
greater than the base amount of State premium tax moneys that was available in the past to be used by the City
to satisfy pmi of the Annual Required Contribution. However, per the current interpretation of the law, subject
to an actuarial certification, the City has now access to all Chapter 185 revenue to fund contribution
requirements and consequently there was no increase in the Accumulated Excess Premium Tax Revenues
(item E above).
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-4
FINANCIAL SOUNDNESS
The purpose of this pmtion of the Report is to provide certain measures which indicate the financial soundness of
the program. These measures relate to shmt term solvency and long term solvency.
The various percentages listed in this Section as of a single valuation date are not that significant. What is
significant, however, is the trend of the rates over a period of years. It is also important to keep in mind that each
time benefits or assumptions are revised; actuarial liabilities are created or diminished. Any newly created
liabilities are financed systematically over a period of future years. All actuarially computed values in this analysis
are based on the actuarial assumptions utilized in the respective years' actuarial valuations.
Short Term Solvency
The ultimate test of financial soundness is the program's ability to pay all promised benefits when due. The
program's progress in accumulating assets to pay all promised benefits can be measured by comparing the market
value of assets with:
1. The actuarial present value of projected benefits payable to those already receiving benefits and to vested
terminations, and
2. The actuarial present value of accrued benefits payable to active pmticipants. This amount is based on
benefits earned to date without future credited service or salary increases.
The total of the two items should generally be fully covered by assets. That portion of the total of the two items
covered by assets should increase over time. Often assets continue to grow beyond the actuarial present value of
these two items.
Increases in benefits will, of course, adversely affect the trend in the years when such increases are first reflected
in the actuarial values. Although different actuarial assumptions would be used in the event of a termination of the
program, this test shows how much of the benefits accrued to date might be covered by assets in the event of a plan
freeze using the valuation assumptions.
GRS
'
..
· .. · . Police Officers ... .. . .· . ·•' · .. · .
9/30/2014 •.. ! .. 9/30/2013 ' ......... 9/30/2012 > .
I. Accumulated Contributions
of Active Members $ 432,695 $ 405,604 $ 381,408
2. APV of Projected Benefits in
Pay Status and for Vested
Terminations 8 299 283 1'2
' ' 7,238,073 6,752,314
3. APV of Accrued Benefits for
Active Pmticipants
(Employer Portion) 2,274,229 2 1,794,982 1,934,476
4. Total 11,006,207 9,438,659 9,068,198
5. Market Value of Assets 8,128,264 1 7,331,629 6,934,693
6. Assets as% of Total 74% 78% 76%
1 DROP balances are being included in Actuarial Accrued Liability and in Plan Assets.
2 Reflects changes in actuarial assumptions.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-5
GRS
$12.0
$10.0
$8.0
~
0
~ $6.0
$4.0
$2 .0
$0 .0
Ratio ofMarl{et Value of Assets to
Present Value of Accrued Benefits
20 10 201 1 20 12 20 13 2014
Ac tu nr ial Valtlal io n Dale (Sep tember 30)
-Markel Vn lnc of Asse ts PV Accrued 13ene fi 1s -+-Rati o
JOO %
~ ..... 5'
SO%
City of Atlant ic Beac h Po li ce Office rs'
Retiremen t Sys tem
9/30/20 14 Actuaria l Valuation I B-6
Long Term Solvency
Over the longer term, the solvency of an ongoing plan can be measured by comparing the Actuarial Value of
Assets to an amount known as the Actuarial Accrued Liability (AAL) under the Entry Age Actuarial Cost Method.
This item has often been called the "past service liability". Its derivation differs from the shmi term solvency value
derivation in several ways. The shmi term solvency liability number is based on the benefits accrued to date by the
participants while the long term solvency liability number is based on what the nmmal costs accrued to date by the
employer. In addition, the short term solvency asset number is the market value, while the long term asset number
is the actuarial value of assets. As in the case of the short term solvency values, the AAL is affected immediately
by any revisions in benefits or assumptions. The accumulation of assets to equal the AAL can be considered a
long range funding goal.
GRS
I .. < ·•.. · ... · .·.·•· . • • •••· . • ·... . . .• < •. > •> .. · .·· / . . < .
. . . . . . . I ;.\:ctuariaiValue of .1-~tuarialAccrued .%ofA~ ..
YaluatiO:n .. · •.. .Ass~ts . . •.. • • I.;iabili.ty~ . .. > Covet·ed )Jy
I Date (ill Thousands) · {in Tbouslfnds) . • As.sets ·.·.·.·
9/30/03 * $ 4,373 $ 5,986 73%
9/30/04 4,534 6,405 71
9/30/05 4,775 6,997 68
9/30/06 5,175 7,034 74
9/30/07 * 5,663 7,620 74
9/30/08 5,764 8,112 71
9/30/09 * 5,922 8,689 68
9/30/10 * 6,164 9,449 65
9/30/11 6,305 10,065 63
9/30/12 * 6,880 10,559 65
9/30/13 7,429 10,895 68
9/30/14 *'* * 8,270 12,656 65
*Reflects change in benefits, actuarial assumptions and/or method.
**DROP balances are included in Actuarial Accrued Liability and in Plan Assets.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-7
GRS
$14.0
$12.0
$10.0
$8.0
$6.0
$4 .0
$2.0
$0 .0
Ratio of Actuarial V;llue of Assets
to Actuarial Accrue(l Liability •
2008 2009 2010 20 II 2012 2013 2014
Ac tua r ial Yaluat ion Date (Septe mber 30)
-At1llitrin l Assc ls c:::::J Accrued Lia bilily --e-1~n1io
150%
LOO%
50%
0%
City of Atlantic Beach Poli ce Oflicers'
Retirem en t System
9/30/20 14 Actuarial Va luation I B-8
ACTUARIAL GAINS AND LOSSES
The assumptions used to anticipate mortality, employment turnover, investment income, expenses, salary
increases, and other factors have been based on long range trends and expectations. Actual experience can vary
from these expectations. The variance is measured by the gain and loss for the period involved. If significant long
term experience reveals consistent deviation from what has been expected and that deviation is expected to
continue, the assumptions should be modified. The net actuarial gain (loss) for the past year is computed as
follows:
GRS
Derivation of'Experiellce<G~in(Loss) ) ... · · ..... ·.·····.•· •< .•
I. Last Year's UAAL
2. Last Year's Employer Normal Cost (mid-year)
3. Last Year's Actual City Contibution
4. Interest at the assumed rate on:
a. I for one year
b. 2 for half a year
c. 3 fi·om dates paid
d. a+ b-c
5. This Year's Expected UAAL
I+ 2-3 + 4d
6. This Year's Actual UAAL (before any
changes in benefits or assumptions)
7. Net Actuarial Gain (Loss): (5)-(6)
8. Gain (Loss) due to investments
9. Gain (Loss) due to other sources
City of Atlantic Beach Police Officers'
Retirement System
$3,466,384
182,782
659,420
277,311
7,311
26,377
258,245
3,247,991
3,152,575
95,416
(119,028)
214,445
9/30/2014 Actuarial Valuation I B-9
GRS
Net acLLiaria l ga in s (losses) in prev ious years have been as fol lows :
Cumula tiv e Ga in
Ycat' End ed Actuarial Ga in (Loss) (Loss)
9/3 0/1998 95 ,019 95,0 19
9/30/1999 117,618 212,637
9/3 0/2 000 (I 03,87 1) I 08 ,7 66
9/3 0/2 001 1,389 110,15 5
9/3 0/2 00 2 (128,2 12) (18,057)
9/3 0/2 00 3 (339,5 63) (357,620)
9/3 0/2 004 (207,808) (565,428)
9/3 0/2 005 (2 87 ,225) (852,653)
9/30/2006 4 11 ,559 (441 ,094)
9/3 0/2 007 (1 37,906) (5 78,999)
9/3 0/2 008 (308,022) (887,021)
9/30/2009 (323,5 82) (I ,2 1 0,60 3)
9/3 0/2 0 I 0 154,73 1 (I ,055,872)
9/30/20 II (45 1,2 01) (1 ,507 ,073)
9/30/20 12 (32,697) (1,539,77 0)
9/30/20 13 11 5,061 (1,424,7 09)
9/30/20 14 95,416 (I ,329,292)
Actuarial Ga in(+) or Loss ( -)
$1
$1
fg
Q $0
~
~
$0 = 0 :.= := ~
($1)
($2)
Plan Year End
-Gnin or Loss -Cumulative
City of Atlant ic Bea ch Police Office rs'
Retire ment Sys tem
9/30/2014 A ctu ari al Va l uation I B-1 0
The fund eamings and salary increase assumptions have considerable impact on the cost of the Plan so it is
important that they are in line with the actual experience. The following table shows the histmy of actuarial fund
eamings and salary increase rates compared to the assumed rates.
": ,,
1
, ... ~nveshl1~nt Retllrn(AYt\) j "c", .... , Salarymcreas~ .~3_ ~C··C·"·' ... < < :. ,c .. ,"·c" · Year Ending ' .. ,, ,Actual·•",•"",• ••c Assumed :, Ac(u;ll
c,c
1 >Assumed
9/30/2003 2.2 8.0 8.8 6.5 %
9/30/2004 2.4 8.0 11.2 6.5
9/30/2005 4.4 8.0 15.1 6.3
9/30/2006 7.8 8.0 1.5 6.7
9/30/2007 9.4 8.0 12.8 6.6
9/30/2008 4.6 8.0 2.1 6.6
9/30/2009 3.8 8.0 11.0 6.4
9/30/2010 4.7 8.0 (0.0) 6.4
9/30/2011 2.2 8.0 3.8 7.4
9/30/2012 7.9 8.0 (0.8) 7.6
9/30/2013 7.5 8.0 2.3 7.5
9/30/2014 6.3 8.0 7.8 7.5
Average 5.2 % ---6.2 % ---
The actual investment retum 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.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-11
GRS
History oflnvestmcnt Return -Actuarial Value of Assets
15%
10% 10%
5% 5%
0%
-5% ~----------------------------------------------------~ -5%
C)~"J o;~ o,~'-> o.,~~ o..~" o,~'t> c-,'flo,
Plan Y ear End
-AM IIIH:d
History of Salary Increases
20% ~-----------------------------------------------------. 20%
15% . 15%
10 % 10 %
5% 5%
-Oo/o -r---~----~--~--~~--~--~r---~--~r-~~._~----~ 0%
-5% ~----------------------------------------------------~ -5%
0,~,., 0,~ o,~" 0,~~ 0,~
Plan Y ea r End Compared to Previous Year
-e-Acturu -i\sstumxl
City of Atlantic Beach Poli ce Officers'
Retiremen t Sys tem
9/30/20 14 A ctuarial Valuati on 1 B-12
Number of Employer Normal Cost**
Active Inactive Reported Covered Actuarial Value of
Valuation Members Members Annual Payroll Assets UAAL Amount %of Covered
Date in Thousands in Thousands in Thousands (in Thousands) Payroll
9/30/03 22 15 $ 1,129 $ 4,373 $ 1,613 $ 182 16.12 %
9/30/04 27 16 1,360 4,534 1,871 220 16.21
9/30/05 26 18 1,402 4,775 2,222 228 16.25
9/30/06 24 19 1,254 5,175 1,859 211 16.84
9/30/07 * 25 19 1,453 5,663 1,957 200 13.74
9/30/08 26 19 1,476 5,764 2,348 207 13.99
9/30/09
.
27 20 1,697 5,922 2,767 244 14.36
9/30/10 • 27 21 1,639 6,164 3,285 247 15.08
9/30/11 26 22 1,606 6,305 3,760 260 16.17
9/30/12 • 26 23 1,548 6,880 3,679 208 13.44
9/30/13 22 24 1,360 7,429 3,466 176 12.92
9/30/14 • 21 25 1,295 8,270 4,387 208 16.08
• Reflects change in benefits, actuarial assumptions and/or method .
.. For Valuations prior to 2009, Normal Cost is a mid-year amount, excluding any administrative expenses. Beginning
with 9/30/2009 valuation, Normal Cost is a beginning of the year figure, including administrative expenses. For all
years, %of Covered Payroll is Normal Cost shown expressed as a% of Covered Valuation Payroll.
IJ:I
I
w
~ ~ ~
GRS
50
45
40
35
30
25
20
15
10
5
Recent His tory of N umber of Members
0 ~~------~~~~~~~~~~~~--~~~~~
Actuarial Valuation Date
• Aaiv< Mcmlltrs •lm.:•ivt Mc:mbcrs
Recent History of Covered Annual Payroll
$1.8
$1.5
$1.3
/ ~ .. IIIII ~
~ ~ ~ ,411 '
,4i
~ II ,.&
$1.0
$0.8 I
$0.5 I ~
'
$0.3 1--1-I""' ,~ 1-r-1-r-1-
$0.0 '-----.. '-.._ '-· -.:.. .:.. ..
Actuarial Valuation Date
v
City or At lant ic Beac h Poli ce Office rs'
Re tirement Sys tem
9/30/2014 Ac tuarial Va lu ation ! B-14
GRS
End of Year To Required Contributions
Valuation Which
Valuation
Applies % of Expected Actual
Amount Payroll Contributions
9/30/06 9/30/08 $ 309,841 22.80 % $ 309,842
9/30/07 9/30/09 345,280 21.93 345,280
9/30/08 9/30/10 425,823 26.62 425,823
9/30/09 9/30/11 487,032 26.49 487,032
9/30/10 9/30/12 628,909 36.18 628,898
9/30/11 9/30/13 606,741 35.63 609,012
9/30/12 9/30/14 654,280 39.99 659,420
9/30/13 9/30/15 665,091 46.10
9/30/14 9/30/16 825,700 60.14
• Reflects change in benefits, actuarial assumptions and/or method.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-15
ACTUARIAL ASSUMPTIONS AND COST METHOD
Valuation Methods
Actuarial Cost Method-The actuarial cost method is a procedure for allocating the actuarial present value of
benefits and expenses to time periods. Nmmal cost and the allocation of benefit values between service
rendered before and after the valuation date were determined using the Entry-Age Actuarial Cost Method.
The entry-age actuarial cost method allocates the actuarial present value of each member's projected benefits on
a level basis over the member's pensionable compensation between the entry age of the member and the
estimated active status exit ages. The pmiion of the actuarial present value allocated to the valuation year is
called the normal cost. The portion of the actuarial present value not provided for by the actuarial present value
of future normal costs is called the actuarial accrued liability. Deducting accrued assets from the actuarial
accrued liability determines the unfunded actuarial accrued liability.
Financing of Unfunded Actuarial Accrued Liabilities -The unfunded actuarial accrued liability was financed
as a level percent of member payroll.
Actuarial Value of Assets-The Actuarial Value of Assets phases in the difference between the expected and
actual return on market value of assets at the rate of 25% 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.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-16
Economic Assumptions
The investment return rate assumed in the valuations is 7.00% per year, compounded annually (net of
investment expenses).
The price inflation rate assumed in this valuation was 2.5% per year. This assumption has been changed from
3% beginning with 9/30/2014 valuation.
The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree benefits.
Ad-hoc COLA increases have been adopted in the past upon approval by the City. Most recently, such
increases have been granted in 1987, 1996 and 2001. No assumptions are made regarding future adjustments.
Any such increases will be recognized as they occur.
The payroll growth rate would be 3.5%, except that it is limited this year due the lower actual payroll growth
rate over the last 10 years in accordance with the requirements of Ch. 112.64 (5) (a), F.S. The rate used to
amortize the unfunded actuarial accrued liabilities is 0.00% per year.
The total rate of return is defined as earnings resulting from interest, dividends, realized gains (losses) and
unrealized appreciation (depreciation) divided by the beginning market value of the fund, adjusted for cash flow
during the year. Total rate of return is as the assumed to be 7.00% per year, net of investment-related expenses.
This assumption has been changed from 8% beginning with 9/30/2014 valuation.
The rates of salary increases used in the valuation are illustrated in the following table. These rates include
price inflation of 2.5%.
Annual Rates for Salary Increase for Sample Ages
Age: 20 30 40 50 60
Expected Increase 22.5% 9.3% 6.1% 5.2% 4.5%
GRS City of Atlantic Beach Police Officers'
Retirement Syst(fm
9/30/2014 Actuarial Valuation I B-17
Demographic Assumptions
The mortali(V rates used were taken from the gender specific RP-2000 Combined Healthy Participant Mortality
Tables for males and females, with generational projections from the year 2000 Projection Scale AA. Sample
mortality rates and life expectancy factors illustrated below apply to the valuation year and are projected to
change in the future years.
Sample Probability of Future Life
Attained Dying Next Year Expectancy (years)
Ages (in 2014) Men Women Men Women
50 0.17% 0.13% 34.26 35.63
55 0.28 0.24 29.14 30.66
60 0.54 0.47 24.21 25.89
65 1.05 0.90 19.60 21.40
70 1.80 1.56 15.41 17.28
75 3.11 2.51 11.63 13.56
80 5.59 4.16 8.41 10.25
This assumption is used to measure the probabilities of each benefit payment being made after retirement. For
active members, the probabilities of dying before and after retirement were based upon the same mortality table as
members dying after retirement. All deaths before retirement are assumed to be non-service connected.
The rates of retirement used to measure the probability of eligible members retiring under normal and early
retirement eligibility during the next year were as follows:
GRS
Normal Retirement/DROP
Retirement
Ages
45
46
47
48
49
50
51
52-58
59
60
61-64
65
City of Atlantic Beach Police Officers'
Retirement System
Percent of Eligible
Employees Retiring
40%
10%
10%
10%
40%
50%
50%
50%
50%
50%
50%
100%
9/30/2014 Actuarial Valuation I B-18
Early Retirement/DROP
Retirement Percent of Eligible
Ages Employees Retiring
50 10%
51 10%
52 10%
53 10%
54 10%
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 is used to model the
probabilities of members remaining in employment.
Rates of Separationg from Active Employment
Sample
Ages
ALL
25
30
35
40
45
50
55
60
Years of
Service
0
2
3
4
5 & Over
Assumptions
34.00%
23.00%
16.00%
12.00%
9.00%
5.88%
5.32%
4.40%
3.70%
3.20%
2.40%
1.40%
1.00%
Rates of Disability among after members
Percent Becoming Disabled
Within Next Year
Sample
Ages Men Women
20 0.14% 0.14%
25 0.15% 0.15%
30 0.18% 0.18%
35 0.23% 0.23%
40 0.30% 0.30%
45 0.51% 0.51%
50 1.00% 1.00%
55 1.55% 1.55%
60 0.00% 0.00%
The mortality table was set forward ten years for projecting the expected mortality of disabled lives.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-19
Miscellaneous and Technical Assumptions
Administrative & Investment
Expenses
Benefit Service
Decrement Operation
Decrement Timing
Eligibility Testing
Forfeitures
Incidence ofContributions
Marriage Assumption
Normal Form of Benefit
Pay Increase Timing
Service Credit Accmals
Annual administrative expenses are assumed to be equal to the actual
expenses paid during the preceding fiscal year. Investment expenses
are offset against gross investment income. Assumed administrative
expenses are added to the Normal Cost.
Exact fractional service is used to determine the amount of benefit
payable.
Disability and mmiality decrements do not operate during the first 5
years of service. Disability and separation do not operate during
retirement eligibility.
Decrements of all types are assumed to occur mid-year.
Eligibility for benefits is dete1mined based upon the age nearest
birthday and service nearest whole year on the date the decrement is
assumed to occur.
Vested members who te1minate with a benefit wmih less than 100%
of their own accumulated contributions were assumed to forfeit their
vested benefit.
Employer contributions are assumed to be received in 12 equal
monthly installments. 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.
80% of members are assumed to be married for purposes of death-in-
service benefits. Male spouses are assumed to be three years older
than female participants and female spouses are assumed to be three
years younger than male participants for active member valuation
purposes.
The nonnal form of benefit is a life annuity with 10 year certain.
Beginning of fiscal year. This is equivalent to assuming that reported
pays represent the actual amount paid during the previous fiscal year.
It is assumed that members accrue one year of service credit per year.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I B-20
GLOSSARY OF TERMS
Actuarial Accrued Liability The difference between (i) the actuarial present value of future plan benefits,
and (ii) the actuarial present value of future normal cost. Sometimes referred to
as "accrued liability" or "past service liability."
Accrued Service The service credited under the plan which was rendered before the date of the
actuarial valuation.
Actuarial Assumptions Estimates of future plan experience with respect to rates of mortality, disability,
turnover, retirement, rate or rates of investment income and salary increases.
Decrement assumptions (rates of mortality, disability, turnover and retirement)
are generally based on past experience, often modified for projected changes in
conditions. Economic assumptions (salary increases and investment income)
consist of an underlying rate in an inflation-free environment plus a provision
for a long-term average rate of inflation.
Actuarial Cost Method A mathematical budgeting procedure for allocating the dollar amount of the
"actuarial present value of future plan benefits" between the actuarial present
value of future normal cost and the actuarial accrued liability. Sometimes
referred to as the "actuarial funding method."
Actuarial Equivalent
Actuarial Present Value
Amortization
Experience Gain (Loss)
Normal Cost
Reserve Account
Unfunded Actuarial
Accrued Liability
Valuation Assets
A single amount or series of amounts of equal value to another single amount
or series of amounts, computed on the basis of the rate(s) of interest and
mortality tables used by the plan.
The amount of funds presently required to provide a payment or series of
payments in the future. It is determined by discounting the future payments at a
predetermined rate of interest, taking into account the probability of payment.
Paying off an interest-bearing liability by means of periodic payments of
interest and principal, as opposed to paying it off with a lump sum 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
valuation dates, in accordance with the actuarial cost method being used.
The annual cost assigned, under the actuarial funding method, to current and
subsequent plan years. Sometimes referred to as "current service cost." Any
payment toward the unfunded actuarial accrued liability is not part of the
normal cost.
An account used to indicate that funds have been set aside for a specific
purpose and is not generally available for other uses.
The difference between the actuarial accrued liability and valuation assets.
Sometimes referred to as "unfunded accrued liability."
The value of current plan assets recognized for valuation purposes. Generally
based on market value plus a pmiion of unrealized appreciation or depreciation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation J B-21
SECTION C
PENSION FUND INFORMATION
Cash and Securities-Market Value
Cash and Cash Equivalents $ 9,581 $ 85,328
Short Term Investments 2,045,177 277,547
Treasury and Agency Bonds & Notes 0 0
Corporate Bonds 2,858,312 2,754,559
Common & Preferred Stocks 2,965,659 4,306,946
Other Fixed Income 0 0
Mutual or Pooled Bond Funds 0 0
Mutual Funds 0 0
Other Securities -Participant Directed 346,448 199,160
Total 8,225,177 7,623,540
Receivables and Accruals
Member Contribution 0 0
Additional Employer Contribution 0 0
Interest and Dividends 23,541 27,703
Total 23,541 27,703
Payables
Benefits-DROP Reserve 0 * 199,160
Lump Sum Distributions 0 0
Excess Premium Tax Liability 120,454 120,454
Other 0 0
Total 120,454 319,614
Net Assets-Market Value $ 8,128,264 $ 7,331,629
* For consistency with GASB Statements 67 and 68 DROP balances are now being included in Plan Assets.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/20 14 Actuarial Valuation I C-1
GRS
Market Value at Beginning of Period $ 7,331,629 $ 6,934,693
Income
Member Contributions 103,095 77,406
State Contributions 96,217 91,077
Employer Contribution 563,203 517,935
Legal Settlement 0 26,587
Interest and Dividends 146,026 146,121
Realized and Unrealized Gain (Loss) 332,582 247,703
Total Income 1,241,123 1,106,829
Disbursements
Monthly Benefit Payments 524,537 651,941
Lump Sum Distributions 0 0
Refund of Contributions 61,079 0
Increase in Excess Premium Tax Liability 0 0
Investment Related Expenses 35,290 30,857
Other Administrative Expenses 22,742 27,095
Insurance Premiums 0 0
Total Disbursements 643,648 709,893
Adjustment for new accounting principle * 199,160 N/A
Net Increase During Period $ 796,635 $ 396,936
Market Value at End of Period $ 8,128,264 $ 7,331,629
* For consistency with GASB Statement 67 DROP balances are now being included in Plan
Assets.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I C-2
DEFERRED RETIREMENT OPTION PLAN (DROP)
BENEFITS HELD IN RESERVE
A reconciliation of the accumulated DROP account balances is provided in the table below.
GRS
Value at beginning of year
Payments credited to accounts
Investment Earnings credited
Withdrawals from accounts
Value at end of year
City of Atlantic Beach Police Officers'
Retirement System
$ 199,160
+ 141,962
+ 5,326
0
346,448
9/30/2014 Actuarial Valuation I C-3
ACTUARIAL VALUE OF ASSETS
As of September 30, 2014
Valuation assets are calculated using a smoothed market value over a period of four (4) years, as prescribed
under Internal Revenue Procedure 2000-40. The asset value determined under this method will be adjusted to
be no greater than 120% and no less than 80% of the fair market value.
Under this method, the actuarial value of assets is equal to the market value of assets less a decreasing fraction
( 1/nth per year, where n equals the number of years in the smoothing period) of the gain or loss for each of the
preceding 3 years.
Under this method, a gain or loss for a year is determined by calculating the difference between the expected
market value of the assets at the valuation date and the actual market value of the assets at the valuation date.
The expected value of the assets for the year is the market value of the assets at the valuation date for the prior
year brought forward with interest at the valuation interest rate to the valuation date for the cmTent year plus
contributions minus disbursements (i.e., benefits paid and expenses), all adjusted with interest at the valuation
rate to the valuation date for the current year. If the expected value is less than the market value, the difference
is a gain. Conversely, if the expected value is greater than the market value, the difference is a loss.
Calculation of Valuation Assets is shown on the following page.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I C-4
DEVELOPMENT OF FUNDING VALUE OF ASSETS AS OF SEPTEMBER 30
2012 2013 2014 2015
A. Preliminary actuarial value from prior year $ 6,305,176 $ 6,880,124 $ 7,428,849 $ 8,269,551
B. Market value beginning of prior year 6,056,405 6,934,693 7,331,629 8,128,264
C. Market value end of prior year 6,934,693 7,331,629 8,128,264
D. Non-investment net cash flow
[ contributions-(benefits & expenses)] 73,718 33,969 353,317 *
E. Investment return
1. Actual market value return net of investment
expenses: C -B -D 804,570 362,967 443,318
2. Expected return of 8.00% 487,461 556,134 608.629
3. Excess/(shortfall) to be phased-in: E I -E2 317,109 (193,167) (165,311)
F. Phased-in recognition of investment return
(4 Year Recognition)
1. Current year: 25% of E3 79,277 (48,292) (41,328)
2. 25% of excess/( shmtfall) from first prior year (110,901) 79,277 (48,292) (41,328)
3. 25% of excess/(shmtfall) from second prior year 38,538 (110,901) 79,277 (48,292)
4. 25% of excess/(shmtfall) fi·om third prior year 6,855 38,538 (110,901) 79,277
5. Total phased-in recognition of investment return 13,769 (41,378) (121,244) (10,343)
G. Actuarial value end of year
1. Preliminary actuarial value end of year:
A+ D+ E2+ F5 6,880,124 7,428,849 8,269,551
2. Upper corridor limit: 120% ofC 8,321,632 8,797,955 9,753,917
3. Lower cmTidor limit: 80% of C 5,547,754 5,865,303 6,502,611
4. Actuarial value end of year 6,880,124** 7,428,849* 8,269,551
H. Difference between market value and actuarial value 54,569 (97,220) (141,287)
I. Ratio of Funding Value to Market Value 99% 101% 102%
*Includes adjustment for adopting new Accounting Principle.
**Offset for DROP Reserve made prior to the calculation of valuation assets.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I C-5
INVESTMENT RATE OF RETURN
The investment rate of return has been calculated on the following bases:
Basis 1 -Market Value: Interest, dividends, realized gains (losses) and unrealized appreciation (depreciation)
divided by the beginning market value of the fund, adjusted for cash flow during the year. This figure
is normally called the Total Rate of Return.
Basis 2-Actuarial Value: Investment earnings recognized in the Actuarial Value of Assets divided by the
weighted average of the Actuarial Value of Assets during the year .
GRS
9/30/03
9/30/04
9/30/05
9/30/06
9/30/07
9/30/08
9/30/09
9/30/10
9/30/11
9/30112
9/30113
9/30/14
Average Compounded
Rate of Return for
5 Years
10 Years
City of Atlantic Beach Police Officers'
Retirement System
. Market Value. < •.• Actujiria) Val.
9.5 %
6.7
8.5
8.8
14.2
(l 1.7)
8.5
10.8
1.2
13.9
5.7
5.8
7.4%
6.3%
2.2 %
2.4
4.4
7.8
9.4
4.6
3.8
4.7
2.2
7.9
7.5
6.3
5.7%
5.8%
9/30/2014 Actuarial Valuation I C-6
SECTION D
MISCELLANEOUS INFORMATION
GRS
1. Number Included in Last Valuation
2. New Members Included in Current Valuation 2 0
3. Non-Vested Employment Terminations 0 (3)
4. Vested Employment Terminations (1) 0
5. Service Retirements 0 0
6. Disability Retirements 0 0
7. Deaths 0 0
8. DROP Retirement 0 (!)
9. Vested Employment Terminations-Refunded _.0. 0
10. Number Included in This Valuation 21 22
2. Additions from Active Members 1 0
3. Lump Sum Payments/Withdrawals 0 0
4. Payments Commenced 0 0
5. Deaths 0 0
6. Other-Returned to Work 0 0
7. Number Included in This Valuation 5 4
~e Retirees, ])isabilityRetii·ies, Beneficiariek& DROP.
Number Included in Last Valuation
Additions from Active Members
3. Additions entering the DROP
4. Additions from Terminated Vested Members
5. Deaths Resulting in No Further Payments
6. Deaths Resulting in New Survivor Benefits
7. End of Cetiain Period -No Fwiher Payments
8. Other--Lump Sum Distributions
9. Number Included in This Valuation
City of Atlantic Beach Police Officers'
Retirement System
20
0 0
0 I
0 0
0 0
0 0
0 0
0 0
20 20
9/30/2014 Actuarial Valuation! D-1
GRS
STATISTICAL DATA
Active Members as of September 30, 2014
20-24 NO. 0 0
25-29 NO. 2 0 0
30-34 NO.
5-39NO. 2
0-44 NO. 0 3
5-49 NO. 0 0
50-54 NO. 0 0 0
55-59 NO. 0 0
60-64 NO. 0 0 0
65&UPNO 0 0 0
OTNO. 5 6 5
City of Atlantic Beach Police Officers'
Retirement System
0
0
0
0
2
2
0
0
0
0
4
0 0 0 39,071
0 0 0 2 43,476
0 0 0 3 58,503
0 0 0 4 54,072
0 0 0 6 68,243
0 0 4 75,021
0 0 0 0 0
0 0 0 67,238
0 0 0 0
0 0 0 0
0 0 21 61,648
9/30/2014 Actuarial Valuation I D-2
NUMBER ADDED TO AND REMOVED FROM ACTIVE MEMBERSHIP
Year
Ended
September 30
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
5-yr. Totals
2010-2014
Expected
for 2015
Number
Added
During
Year
A E
3 6
9 4
3 4
2 4
4 3
5 4
5 4
3 3
3 4
2 2
0 4
2 J
10 16
A Represents actual number.
Normal
Retirement
A E
0 0.1
0 0.3
2 0.6
1 1.0
1 0.2
1 0.1
1 0.1
0 0.4
2 1.0
1 1.0
1 1.0
0 0.4
4 3.8
0.5
E Represents expected number.
Terminations During Year
Disability Died-in Withdrawal
Retirement Service Vested Other Total
A E A E A A A E
1 0.1 0 0.0 2 3 5 1.3
0 0.0 0 0.0 2 2 4 1.1
0 0.0 0 0.0 1 1 2 1.9
0 0.0 0 0.0 I 2 3 1.8
0 0.0 0 0.0 0 2 2 1.5
0 0.0 0 0.0 0 3 3 1.6
0 0.0 0 0.0 0 3 3 1.6
1* 0.0 0 0.0 I* 1 3 1.4
0 0.0 0 0.0 0 2 2 2.5
0 0.1 0 0.0 0 1 1 2.5
0 0.1 0 0.0 0 3 3 2.5
Q 0.1 Q 0.0 J 0 J 2.2
1 0.3 0 0.0 12 11.0
0.1 0.0 1.5
*Member retroactively approved for duty disability benefits (previously reported as vested terminated)
Active
Members
End of
Year
22
27
26
24
25
26
27
27
26
26
22
21
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation J D-3
Retired Members and Beneficiary Data
Historical Schedule**
Added Removed Net Increase
September 30 No. Pensions No. Pensions No. Pensions
2003 2 30,148 2 30,148
2004
2005 2 106,731 2 106,731
2006 34,521 9,796 0 24,724
2007 43,455 43,455
2008 2 63,781 2 63,781
2009
2010 6,319 * 14,935 (8,616)
2011 2 84,469 0 2 84,469
2012 2 68,629 0 2 68,629
2013 48,017 0 48,017
2014 0 0 0 0
Expected for
2015
* One-time adjustment correcting past underpayments
GRS City of Atlantic Beach Police Officers'
Retirement System
Expected
End of Year Removals
No. Pensions No. Pensions
II 235,310 0.1 2,072
II 235,310 0.2 2,683
13 342,041 0.2 2,933
13 366,765 0.2 3,809
14 410,220 0.2 3,922
16 474,001 0.2 4,510
16 474,001 0.2 5,200
15 465,385 0.2 5,200
17 549,854 0.2 5,200
19 618,483 0.3 5,761
20 666,500 0.2 4,950
20 666,500 0.2 5,547
0.2 6,119
9/30/2014 Actuarial Valuation I D-4
SECTION E
SUMMARY OF PLAN PROVISIONS
A. Ordinances:
Plan established under the Code of Ordinances for the City of Atlantic Beach, Florida, Pmi II, Chapter 2,
Article VI, Division 4 and was most recently amended and restated under Ordinance No. 58-13-36 passed
and adopted on June 10, 2013. The Plan is also governed by certain provisions of Part VII, Chapter 112,
Florida Statutes (F.S.), F. S. 185 and the Internal Revenue Code.
B. Effective Date
December 22, 1975, Restated under Division 4 on July 10, 2000
C. Plan Year
October 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a sole employer plan.
E. Eligibility Requirements
All full time sworn City police officers, who normally work more than 1,000 hours annually and are not an
elected officials, temporary or contractual employees, or executives or departments heads who have elected
not to participate, will become members on the date of employment.
F. Credited Service
Service is measured as the total number of years and fractional parts of years, but credited to the nearest
one-twelfth (1/12) of a year. No service will be credited for any periods of employment for which the
member received a refund of their employee contributions.
G. Compensation
Base salary or wages paid for services rendered to the City including longevity pay, overtime pay not to
exceed 300 hours, cost of living payments, holiday and personal leave taken and incentive pay.
Compensation excludes payments of unused personal leave, uniform or equipment allowances, extra duty
or special detail pay on behalf of a second party employer, or any reimbursement of expenses.
H. Final Average Compensation (FAC)
Average monthly rate of Compensation during the highest 60 consecutive months of Credited Service out of
the last 120 months preceding the date of termination or retirement.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I E-1
I. Normal Retirement
Eligibility:
Benefit:
Nonnal Form
of Benefit:
For members hired prior to January 1, 2013
A participant may retire on the first day of the month coincident with or next following the
earlier of:
(1) 25 years of Credited Service regardless of age, or
(2) age 50 with 20 years of Credited Service, or
(3) age 55 with 10 years of Credited Service, or
(4) age 60 with 5 years of Credited Service.
For members hired on or after January 1, 2013
A pmticipant may retire on the first day of the month coincident with or next following the
earlier of:
(1) Age 55 with 10 years of Credited Service, or
(2) age 52 with 25 years of Credited Service.
For members hired prior to January 1, 2013
3.00% ofFAC times Credited Service. Benefit is limited to 100% ofFAC.
For members hired on or after January 1, 2013
2.00% ofF AC times Credited Service. Benefit is limited to 100% ofF AC.
10 Years Ce1tain and Life thereafter; other options are also available.
J. Early Retirement
Eligibility:
Benefit:
Nonnal Form
of Benefit:
A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of
age 50 with 10 years of Credited Service.
The Normal Retirement Benefit is actuarially reduced by 3% for each year by which the
member's Early Retirement date precedes the member's normal retirement age.
10 year certain and life thereafter; other options are also available.
K. Delayed Retirement
Same as Normal Retirement taking into account compensation earned and service credited until the date of
actual employment termination.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I E-2
L. Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member who becomes totally and pennanently disabled due to a service related injury or
illness and is deemed unable to render useful and efficient service to the City as a police officer
is eligible for a disability benefit.
The benefit is calculated as if the member was eligible for Normal Retirement and is payable
retroactively to the later of; the last day on payroll, or the date of application for disability
benefits. The minimum for a service connected disability benefit is 42% ofFAC.
10 year certain and life thereafter.
M. Non-Service Connected Disability
Eligibility:
Benefit:
Nonnal Form
of Benefit:
Any member with 8 1/3 or more years of Credited Service who becomes totally and
pe1manently disabled and is deemed unable to render useful and efficient service to the City as
a police officer is eligible for a disability benefit.
The benefit is calculated as if the member was eligible for Normal Retirement and is payable
retroactively to the later of; the last day on payroll, or the date of application for disability
benefits. The minimum for a non-service connected disability benefit is 25% ofF AC if the
member had at least 8 1/3 years of Credited Service.
1 0 year certain and life thereafter.
N. Pre-Retirement Death
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member with 5 or more years of Credited Service is eligible for a death benefit.
Upon the death of a member, the designated beneficiary shall be paid an actuarially reduced
standard ten (10) year certain and life survivor pension notwithstanding that the member
may not have satisfied the conditions for retirement. If there are no beneficiaries designated
by the member, then a benefit shall be paid to the surviving spouse or, if no surviving
spouse, a reduced benefit will be paid to the member's unmarried children.
If spouse is receiving benefits described above, no children's benefits are payable.
If spouse is not receiving benefits, children under age 19, or age 23 if an unman·ied full time
student, will receive equal shares of 50% of the member's Normal Retirement Benefit under
the Life Annuity option based upon service and F AC as of the date of death.
Payable for the life of the member's beneficiary or spouse. Children's benefits are payable
until age 19 or age 23 if an unmarried full time student.
0. Post Retirement Death
GRS
Benefit determined by the form of benefit elected upon retirement.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I E-3
P. Optional Forms
In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are a Life
Annuity, or the 50%, 66 2/3%, 75% or 100% Joint and Survivor options. A Social Security option is also
available for members retiring prior to the time they are eligible for Social Security retirement benefits.
Q. Vested Termination
Eligibility:
Benefit:
Normal Form
of Benefit:
For members hired prior to January l, 2013
A participant has earned a non-forfeitable right to Plan benefits after the completion of 5 or
more years of Credited Service.
For members hired on or after January l, 2013
A participant has earned a non-forfeitable right to Plan benefits after the completion of I 0
or more years of Credited Service
The benefit is the member's vested portion of the accrued Normal Retirement Benefit as of the
date oftennination. Benefit begins on the Normal Retirement date.
10 year certain and life thereafter; other options are also available.
Member's terminating employment with less than 5 years of Cl·edited Service will receive a refund of their own
accumulated contributions.
R. Refunds
Eligibility:
Benefit:
All non-vested members are eligible. Optionally, vested participants may also withdraw
their contributions in lieu of the deferred benefits otherwise due. Vested members may
delay withdrawal of funds for up to five years.
The member who terminates employment receives a lump-sum payment of their employee
contributions with interest.
S. Member Contributions
8.0%
T. Premium Tax Monies
A distribution of casualty insurance premium tax monies collected by the State pursuant to Chapter 185
Florida Statutes.
U. Employer Contributions
The amount determined by the actuary to pay the nonnal cost and an amortization of the unfunded actuarial
accrued liabilities, along with employee contributions and Chapter 185 monies. Following are assumed
contribution rates per recent valuations:
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I E-4
Contribution State
Year Beginning City Sec 185 Member Total
IO/I/2009 21.07% 5.55% 4.8I5% 31.44%
IO/I/20IO 21.66% 4.83% 4.8I5% 31.3I%
IO/I/20II 31.07% 5.II% 4.8I5% 41.00%
IO/I/20I2 30.13% 5.2I% 5.1II% 40.45%
IO/I/2013 34.42% 5.57% 7.000% 46.99%
IO/I/20I4 39.43% 6.67% 8.000% 54.IO%
I O/l/20I5 53.I3% 7.0I% 8.000% 68.I4%
v. Cost of Living Increases
The plan does not provide for automatic post-retirement cost of living adjustments (COLA) of retiree
benefits.
W. Changes from Previous Valuation
See the Discussion of Valuation Results Section of this report under the Revisions in Benefits heading.
X. Gain-sharing benefits
Not applicable.
Y. Deferred Retirement Option Plan
Eligibility:
Benefit:
Maximum
DROP Period:
Interest
Credited:
Normal Fonn
of Benefit:
Upon obtaining Normal or Early Retirement eligibility.
All members must make a written election to participate in the DROP.
The member's Credited Service and FAC are frozen upon entiy into the DROP. The monthly
retirement benefit as described under Nmmal Retirement is calculated based upon the frozen
Credited Service and F AC. Benefits for members entering the DROP upon Early Retirement
eligibility will be actuarially reduced as described for Early Retirement.
60 months
Participants' DROP account balances will be credited in accordance with the self-directed
options selected by the pmticipant who entered the program prior to July I, 2013. For all other
pmticipants, DROP account balances will be credited or debited quarterly with interest based
on Plan's net investment earnings or losses for that qumter.
Lump Sum or roll-over to a qualified retirement account.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/20I4 Actuarial Valuation I E-5
SECTION F
COMPARATIVE SUMMARY OF PRINCIPAL
VALUATION RESULTS
A. Valuation Date September 30, 2014 September 30, 2013
B. Actuarial Present Value of Accumulated
Plan Benefits
1. Vested Benefits
a. Members Currently Receiving Payments $ 7,554,788 $ 7,027,197
b. Terminated Vested Members 398,047 210,876
c. DROP Balances* 346,448 NIA
d. Other Members 2,663,136 2,129,095
e. Total 10,962,419 9,367,168
2. Non-Vested Benefits 43,788 71,491
3. Total Actuarial Present Value of Accumulated
Plan Benefits: 1e + 2 11,006,207 9,438,659
4. Accumulated Contributions of Active Members 432,695 405,604
C. Changes in the Actuarial Present Value of
Accumulated Plan Benefits
1. Total Value at Beginning of Year 9,438,659 9,068,198
2. Increase (Decrease) During the Period
Attributable to:
a. Plan Amendment 0 0
b. Change in Actuarial Method* 346,448 0
c. Change in Actuarial Assumptions 1,063,466
d. Latest Member Data, Benefits Accumulated
and Decrease in the Discount Period 743,250 1,022,402
e. Benefits Paid** (585,616) (651 ,941)
f. Net Increase I ,567,548 370,461
3. Total Value at End of Period 11,006,207 9,438,659
D. Market Value of Assets 8,128,264 7,331,629
E. Actuarial Assumptions -See page entitled
Actuarial Assumptions and Methods
*DROP balances are included in Present Value of Accumulated Plan Benefits and in Plan Assets.
** Benefits paid during 2013/14 plan year exclude amounts credited to DROP participants.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I F-1
A Participant Data
Number Included:
Actives
Service Retirees & Beneficiaries
Disability Retirees
Terminated Vested Members
Total Members and Beneficiaries
Total Annual Payroll
Expected Annual Payroll in Contribution Year
Total Annualized Benefits
Service Retirees & Beneficiaries
Disability Retirees
Terminated Vested Members
B. Assets (Market Value)*
Cash and Short Term Investments
Treasury and Agency Bonds & Notes
Corporate Bonds
Common & Preferred Stocks
Mutual Fund Bonds
Mutual Fund Stocks
Other Securities
Net Receivables & Payables
Total
Actuarial Value
Assets include:
Accumulated active member contributions
(with interest if applicable)
C. Actuarial present value of accrued benefits
(i) Vested accrued beneftts
Retired members and benefitciaries
Terminated members
DROP Balances
Active members (includes non-forfeitable members
contributions of 432,695 and 405,604)
Total
(ii) Non-vested accrued benefits
(iii) Total actuarial p.v. of accrued benefits
(iv) Actuarial p.v. of accrued benefits at begin. of year
(v) Changes attributable to:
Amendments
Assumption change
Operation of decrements
Benefit payments
Other (Method Change)
(vi) Net change
(vii) Actuarial p.v. of accr. benefits at end of year
21
16
4
5
46
$1,294,600
1,373,048
592,341
74,159
64,761
2,054,758
0
2,858,312
2,965,659
0
0
346,448
(96,913)
8,128,264
8,269,551
432,695
7,554,788
398,047
346,448
2,663,136
10,962,419
43,788
Il,006,207
9,438,659
none
1,063,466
743,250
(585,616)
346,448
1,567,548
11,006,207
21 22
16 16
4 4
5 4
46 46
$1,294,600 $1,360,245
1,373,048 1,442,670
592,341 592,341
74,159 74,159
64,761 41,865
2,054,758 362,875
0 0
2,858,312 2,754,559
2,965,659 4,306,946
0 0
0 0
346,448 199,160
(96,913) (291,911)
8,128,264 7,331,629
8,269,551 7,428,849
432,695 405,604
6,934,329 7,027,197
339,265 210,876
346,448
2,271,849 2,129,095
9,891,891 9,367,168
50,850 71,491
9,942,741 9,438,659
9,438,659 9,068,198
none none
none none
743,250 1,022,402
(585,616) (651,941)
346,448 0
504,082 370,461
9,942,741 9,438,659
*DROP balances are included in Plan Assets and Present Value of Accrued Benefits beginning ·with 9/30/2014
valuation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I F-2
D. Liabilities-Actuarial Present Value of Future Benefits
I. Active Members
Service Retirement Benefits
Vesting Benefits
Disability Benefits
Preretirement Death Benefits
Return of Member Contributions
Total Actives
2. Inactive Members
Service Retirees & Beneficiaries
Disability Retirees
Terminated Vested Members
Total Inactive Members
3. DROP Balances
4. Total Present Value for All Members
Total Present Value of:
Future Salaries
Future Employee Contributions
Future Contributions from Other Sources
· ~e~·ivl)ti6nof9ur:l'~nf:EJ11P!~yer····
a.
b.
c.
d.
e.
f.
g.
GRS
Total UAAL for Prior Valuation Date
Employer Normal Cost for this period
Interest acccrued on (a) and (b)
Contributions for this period
Interest accrued on (d)
Changes due to:
Assumptions
Plan Amendment
Cost Method (Asset Method)
Actuarial (Gain) Loss
Total Current UAAL: a+b+c-d-e+f
City of Atlantic Beach Police Officers'
Retirement System
$6,062,400 $5,183,557 $5,192,002
495,685 403,097 411,721
205,831 180,238 199,745
47,624 40,954 43,825
90,560 87,064 75,452
6,902,100 5,894,910 5,922,745
6,755,105 6,199,609 6,280,862
799,683 734,720 746,335
398,047 339,265 210,876
7,952,835 7,273,594 7,238,073
346,448 346,448 NIA
15,201,383 13,514,952 13,160,818
11,713,889 11,380,585 12,024,091
937,111 910,447 921,938
5,994,721 4,334,954 4,810,031
$3,466,384 $3,466,384 $3,679,313
182,782 182,782 231,884
284,622 284,622 303,620
659,420 659,420 609,012
26,377 26,377 24,360
1,234,336 0 0
0 0 0
0 0 0
(95,416) (95,416) (115,061)
4,386,911 3,152,575 3,466,384
9/30/2014 Actuarial Valuation I F-3
9/30/2000 Experience Loss 16,675
9/30/2001 Experience Gain 2 (226)
9/30/2002 Experience Loss 3 20,329
9/30/2003 Experience Loss 4 52,209
9/30/2004 Experience Loss 5 30,923
9/30/2005 Experience Loss 6 41,334
9/30/2006 Experience Gain 7 (57,259)
9/30/2007 Experience Loss 8 18,547
9/30/2008 Experience Loss 9 40,039
9/30/2009 Experience Loss 10 38,905
9/30/2010 Experience Gain II (17,921)
9/30/2011 Experience Loss 12 49,849
9/30/2012 Experience Loss 13 3,608
9/30/2013 Experience Loss 14 (12,462)
9/30/2014 Experience Gain 15 (10,322)
9/30/1993 Benefit Changes 9 75,334
9/30/1994 Benefit Changes 10 (2,073)
9/30/1996 Benefit Changes 12 5,518
9/30/1997 Benefit Changes 13 1,320
9/30/2001 Benefit Changes 17 10,512
9/30/2003 Benefit Changes 19 16,258
9/30/2007 Benefit Changes 23 (5,071)
9/30/2012 Benefit Changes 28 (3,450)
9/30/1995 Assumption/Method Change II 51,477
9/30/1997 Assumption/Method Change 13 34,399
9/30/2009 Assumption/Method Change 3,791
9/30/2010 Assumption/Method Change 56,384
9/30/2014 Assum !ion/Method Chan e N/A
$458,627
GRS City of Atlantic Beach Police Officers'
Retirement System
103,871 16,675
(1,389) (435)
128,212 56,580
339,563 186,757
207,808 133,345
287,225 206,368
(411,559) (321,962)
137,906 115,107
308,022 270,128
323,582 281,937
(154,731) (138,172)
451,201 405,718
32,697 30,797
(115,061) (110,960)
(95,416) (95,416)
72,906 442,232 508,250
(1,999) (12,597) (15,026)
5,285 35,914 44,914
1,260 8,892 11,265
9,913 81,627 103,556
15,248 144,006 168,624
(4,709) (49,157) (56,798)
(3,170) (40,750) (41,174)
49,466 323,633 396,891
32,835 231,795 293,629
3,505 40,694 43,704
52,023 630,507 658,273
92,963 1,234,336 1,234,336
$535,271
9/30/2014 Actuarial Valuation I F-4
E. Pension Cost
Entry Age Normal Cost for:
Service Retirement Benefits $230,488 $194,076
Vesting Benefits 25,244 20,240
Disability Benefits 13,295 11,703
Preretirement Death Benefits 2,185 1,881
Return of Member Contributions 20,549 20,675
Total Actives 291,761 248,575
Administrative Expenses 22,742 22,742
Expected Member Contributions 106,283 106,790
(Assuming employee contrib rate applicable to the contrib year)
Total Employer Normal Cost 208,220 164,527
Payment Required to Amortize Unfunded Actuarial
Accrued Liability 535,271 458,627
Total Contribution at Valuation Date 743,491 623,154
Total Contribution Adjusted for Frequency of
Payments and Interest to Next Following Fiscal Year 825,700 702,170
% of Expected Payroll 60.14% 51.14%
Amount Expected to be Contributed by Members 109,844 109,844
% of Expected Payroll 8.000% 8.000%
F. Past Contributions-For the Fiscal Years Ended September 30 of 2013 and 2014:
Required Contribution Determined in the Valuation as of
by the Plan Sponsor
by Members
Actual Contribution for the Fiscal Year ended
by the Plan Sponsor
by Members
Net experience (gain) loss during year:
H. I. Plan to Amortize Unfunded Actuarial Accmed Liability
September 30,2012
$654,280
$98,175
September 30, 20 14
659,420
$103 095
($95,416)
20 year funding of the Original Unfunded Actuarial Accrued Liability, 15 year funding of any
Gains or Losses and 30 year of adjustments due to benefit or assumption changes.
2. Schedule Illustrating the Amortization of the Unfunded Actuarial Accrued Liability (UAAL)
Year·· ... ..... Projected UAAL
2015 $4,063,284
2016 3,793,252
2017 3,504,511
2018 3,217,549
2019 2,966,066
2024 1,772,183
2030 1,197,230
2032 1,030,158
2036 702,496
2040 288,349
3. Action taken since last actuarial valuation.
Contribution sufficient to satisfy the total required contribution.
* Results have been updated to reflect the most recent Actuarial Impact Statement.
$207,692
19,264
11,985
1,963
17,924
258,829
26,053
109,129
175,752
414,495
590,247
665,091
46.10%
115,414
8.000%
September 30, 20 II
$606,741
$82,005
September 30, 20 13
$609,012
$77,406
($115,061)
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I F-5
GRS
I. I. Three-Year Comparison of Actual and Assumed Sal my Increases (Annualized)
9/30/2012
9/30/2013
9/30/2014
2.3%
7.8%
7.5%
7.5%
2. Three-Year Comparison of Investment Return (Actuarial Value)
9/30/2012
9/30/2013
9/30/2014
7.9%
7.5%
6.3%
8.0%
8.0%
8.0%
3. Average Annual Growth in Covered Payroll, Last Ten Years (if applicable)
ValuationDate Total Covere(} Paymll
9/30/2004 $1,360,051
9/30/2005 1,402,444
9/30/2006 1,254,264
9/30/2007 1,452,926
9/30/2008 1,476,074
9/30/2009 1,696,746
9/30/2010 1,639,155
9/30/2011 1,605,814
9/30/2012 1,548,109
9/30/2013 1,360,245
9/30/2014 1,294,600
Total% Increase Last Ten Years (4.81)%
Annual % Increase (0.49)%
Thirty-year Forecast 4.00%
J. Benefits and Expenses of Plan not Explicitly or Implicitly Provided in Valuation
NONE
K. Trends not taken into Account but which are likely to Result in Future Cost Increases
NONE
City of Atlantic Beach Police Officers'
Retirement System
9/30/2014 Actuarial Valuation I F-6