Item 5C- Pension Actuarial Report- Police OfficersGRS
AGENDA ITEM #SC
JUNE 13, 2016
Gabriel Roeder Smith & Company
Consultants & Actuaries
CITY OF ATLANTIC BEACH POLICE OFFICERS ' RETIREMENT
SYSTEM
ACTUARIAL VALUATION REPORT
SEPTEMBER 30, 2015
ANNUAL EMPLOYER CONTRIBUTION
IS DETERMINED BY THIS VALUATION
TO BE PAID IN THE EMPLOYER FISCAL YEAR ENDING
SEPTEMBER 30, 2017
GRS
May 26,20 16
Gabriel Roeder Smith & Co rnp~n y
<.:ons ul mnr) & Actu a ri es
The B oa rd o f T rus tees
City o f A tlan ti c Bea ch
Po lice Officers' Retire ment System
Atl an t ic Beach, Florida
IJear B oa rd M embers:
One Ea\t Orow11rd Bl vd.
Suite 505
Fr. l.nud crdo lc, fL 3330 1-1804
954 .527.1(,1(; phone
954.525.0083 fax
www.~a brid rocdcr.com
We are pleased to sub mit herein our September 30,201 5 Actuar i al Va luat ion Report for the C ity of Atlantic Beach
Po lice Otlicers' Retirement Sy stem . The contribu ti on res ults apply to the C ity's fisca l yea r end ing Se ptem ber 30,
2017.
T his repo rt was prepa red at th e r eques t of th e Boa rd of Trustees and is inten ded for usc by the Ret ireme nt System
and those des ignat ed o r approved by th e B oa rd of Trustees. Th is report m ay be provid ed to par ti es o th er th an the
Retirement Sys tem o nly in its enti rety and o nly w i th the permissi on of th e 13oard of T rustees. GRS i s not
res po ns i bl e fo r un aut hori zed use of this report.
The pmposc of the va luati on is to meas ure the Pl an's fu nd i ng prog re ss, to determine th e emp loyer contribution r ate
tbr th e fi scal year ending Sep tember 30, 20 17 and ce rtain state reporting requirements und er F.S. C h. 112.63.
T h is report should not be relied on for any purpose other th an the pur pose desc ribed above. Dete rm i r1at io ns of
fin ancia l res ul ts assoc iated with t he benefi ts d escribed in t his report , for purposes other th an those iden ti fied above
may be significantly different.
The comp uted co ntribution rate show n on page A -1 may be co nsidered as a minimum contributio n r ate that
comp lies w ith the Board's funding po licy and the Sta te stat ute. U sers of thi s repo11 should be aware th at
co nt r ibutions made at that rate do not guarant ee be nefit security. G i ven the impor ta nce of be ne fit sec urity to any
retire ment system, we suggest th at co nt ributions to th e Trust in excess of tbose prese nted in t his report be
co nsi dere d.
T he co nt ribut ion rate in t his report is determ ined usi ng the ac tu arial ass um pti ons and meth od s di sc l ose d in Sec tion
"Actuari al A ss um ptions an d Cost M eth od" of thi s report. This report does no t inc lu de a r obust assess ment or th e
ri sks of future experience not mee ting th e ac lu a ri <~l ass umptions. Additional assess m ent of risks was outside th e
sc ope o f this ass ignm ent. W e encourage a rev i ew and assessment of investm ent an d oth er si gni fica nt ri sks t hat
may have a material effect o n the pl an's finan cia l co nditi o n.
T he deve l ope d findings included in U1is report co nsider data or othe r information through Sep tember 30, 20 15.
Fu ture ac tuarial measu remen ts m ay d iffer significa ntly from the cmrcnt measureme nts prese nt ed i n thi s repo rt due
to such factors as the followi ng: pl an exper ience d i f fe ring f ro m tha t an ti cipated by th e econom ic or demographic
ass umptions; changes in economic or demograp hi c assumpti ons; increases or decreases ex pected as part o f the
natural operation o f the meth odology used for th ese measu rements (s uch as the en d of an amortizatio n per iod o r
additional cost or con trib uti on requirement s based on th e plan 's funded sta tus); and cha nges in pl an prov isio ns o r
appli cab le law. The sc ope of an act uari al va l uat io n docs not include an analys is of the potential ra nge of such
The Board of Trustees
May 26,2016
Page 2
future measurements.
This valuation assumed the continuing ability of the plan sponsor to make the contributions necessary to fund this
plan. A determination regarding whether or not the plan sponsor is actually able to do so is outside our scope of
expertise and was not perfonned.
In addition, this repott was prepared using assumptions approved by the Board as described in the section of this
report entitled Actuarial Assumptions and Methods.
The valuation was based upon information fumished by the City, concerning Plan benefits, financial transactions,
plan provisions and active members, terminated members, retirees and beneficiaries. We checked for intemal and
year-to-year consistency, but did not otherwise audit the data. We are not responsible for the accuracy or
completeness of the infmmation provided by the City.
The calculations are based upon assumptions regarding future events, which may or may not materialize. They are
also based upon plan provisions that are outlined in this report. If you have reason to believe that the assumptions
that were used are unreasonable, that the plan provisions are incoJTectly described, or that conditions have changed
since the calculations were made, you should contact the author of this repott prior to relying on infotmation in the
repott.
James J. Rizzo and Piotr Krekora are members of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained
herein. The 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, SMITH 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
May 26,2016
Date
14-03355
Emollment Number
GRS
TABLE QF CONTENTS
sg~'(ION T LTL£ PAGE
A EXECUT I VE SUMMARY A-1
B VALUATION RESULTS
I. Participant Data B-1
2. Actua rially Determ in ed Contr ibut ion B-2
3. Actua ri al Value of Benefits and Assets B-3
4. State Premium Tax Revenu es BA
5. Financial Soundness B-5
6. Actuarial Gains an d Losses B-9
7 . Rece nt Hi story of Va lu ation Result s B-1 3
8. Recent 1 Ii story ofRequ ircd and Actual Contributions 8-15
9. Actuarial Assumpt ions and Cost Me thod 8-16
c PENSION FUND INFORMATION
I. Summa ry o f Assets C-1
2. Summary of found's ln come and Di sburse ment s C-2
3. Reconciliati on of DROP Accounts C..3
4. Actuarial Value of Asse ts C..4
5. Investmen t Rate of Return C-6
D MISCELLANEOUS INFORMATION
I. Rc conci I iation of Memb ership Data D-1
2. Stati sti ca l Data D-2
E SUMMARY OF PLAN PROVISIONS E-1
F COMPARATIVE SUMMARY OF PRINCIPAL F-1
VALUATION RESULTS
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:
For FYE 9/30/2017 For FYE 9/30/2016
Based on 9/30/2015 Based on 9/30/2014 Increase
Valuation Valuation (Decrease)
Gross Contribution Requirement $ 954,072 $ 935,544 $ 18,528
As% of Expected Payroll 72.68 % 68.14 % 4.54 %
Expected Employee Contribution $ 105,011 $ 109,844 $ ( 4,833)
As % of Covered Payroll 8.00 % 8.00 % 0.00 %
Required Employer/State Contribution $ 849,061 $ 825,700 $ 23,361
As% of Expected Payroll 64.68 % 60.14 % 4.54 %
Estimated State Contribution $ 103,528 $ 103,528 * $ 0
As % of Covered Payroll 7.89 % 7.54 % 0.35 %
Required Employer Contribution
(If Made in Equal Monthly Installments) $ 745,533 $ 722,172 * $ 23,361
As % of Covered Payroll 56.79 % 52.60 % 4.19 %
Required Employer Contribution
(If Made in Whole at the Beginning ofthe Year) $ 718,298 $ 695,790 * 22,508
As % of Covered Payroll 54.72 % 50.67 % 4.05 %
*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 support the current
benefits for the Police Officers is $849,061 for the fiscal year ending September 30, 2017. The City may be able
to use State premium tax moneys to satisfY pmi of that requirement, leaving the City contribution at $745,533
(assumed receipts are the same as in 2015). However, the City may need to contribute more, should receipts from
the State fall shmi 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 in lieu of periodic installments.
Revisions in Benefits
There were no revisions in benefits for the current year.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I A-1
Revisions in Actuarial Assumptions or Methods
There were no revisions in actuarial assumptions or methods for the cunent year. In the prior year a method
change was made to include DROP reserves in the value of Plan Assets and liabilities for better comparability with
GASB 67 and 68. Consistent with the new method, a one-time adjustment was also made this year to include the
Excess Premium Tax Liability into the value of Plan Assets and liabilities since the same adjustment was
recognized in the GASB 67 disclosures for fiscal year ending September 30, 2015. This adjustment had no effect
on the Unfunded Actuarial Accrued Liability or the required contribution.
Recommendations
We recommend a review of demographic assumptions including salmy scale, retirement, and tetmination rates.
The last such study was based on plan experience for the period ending September 30, 2010. An updated study is
wananted to ensure actuarial assumptions remain in line with emerging demographic trends and the assumed long
term rate of return reflects revisions in the Plan's investment policy.
Actuarial Experience
Actuarial gains occur in a year whenever the experience of the plan is better than was assumed. For example, a
gain would occur if investment performance were better than the rate being assumed in the actuarial valuation
and costing process and this gain would have the effect of lowering the Minimum Required Contribution for the
year. Furthermore, 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 a given year were higher than assumed, an actuarial loss would occur.
The actuarial valuation cost method which detetmines the Minimum Required Contribution is designed to produce
contribution requirements which remain level as a percent of payroll in the absence of plan changes and whenever
the experience of the plan matches the actuarial assumptions used. 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
52.60 %
1.91
1.34
1.21
0.08
0.00
0.00
(0.35)
56.79 %
The Employer Contribution increased from the last valuation for reasons related to the Plan experience as
discussed in the next paragraph.
There was a net actuarial loss (Unfunded Actuarial Accrued Liability is higher than projected), primarily due to a
lower than expected recognized investment return on the actuarial value of assets (5.3% recognized, compared to
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I A-2
the 7.0% assumed). In addition, the decrease in the payroll caused the payment on the UAAL to be a greater
percent of payroll. A small increase in the assumed dollar amount of the State Revenue is helping to lower the City
contribution and due to the decrease in payroll from the prior year it will represent a larger percentage of the
projected payroll.
The remainder of this Repmt includes detailed actuarial valuation results, financial infonnation, miscellaneous
infmmation and statistics, and a summary of plan provisions.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I A-3
SECTION B
VALUATION RESULTS
I
GRS
PARTICIPANT DATA I
September 30, 2015 September 30, 2014
ACTIVE MEMBERS
Number 19
Covered Annual Payroll $ 1,246,622
Average Annual Payroll $ 65,612
Average Age 37.4
Average Past Service 10.2
Average Age at Hire 27.2
RETIREES, BENEFICIARIES, & DROP MEMBERS
Number
Annual Benefits
Average Annual Benefit
Average Age
DISABILITY RETIREES
Number
Annual Benefits
Average Annual Benefit
Average Age
TERMINATED VESTED MEMBERS
Number
Annual Benefits
Average Armual Benefit
Average Age
City of Atlantic Beach Police Officers'
Retirement System
17
$ 612,738
$ 36,043
62.6
4
$ 74,159
$ 18,540
58.1
6
$ 71,724
$ 11,954
50.5
21
$ 1,294,600
$ 61,648
38.3
9.5
28.7
16
$ 592,341
$ 37,021
62.0
4
$ 74,159
$ 18,540
57.1
5
$ 64,761
$ 12,952
50.8
9/30/2015 Actuarial Valuation I B-1
GRS
ACTUARIALLY DETERMINED CONTRIBUTION (ADC)
A. Valuation Date September 30, 2015 September 30, 2014
B. ADC to Be Paid During
Fiscal Year Ending 9/30/2017 9/30/2016
c. Assumed Date(s) of Employer Contrib. Monthly Monthly
D. Annual Payment to Amortize
Unfunded Actuarial Liability
if Paid on the Valuation Date $ 550,295 $ 535,271
E. Employer Normal Cost
(including Administrative Expenses)
if Paid on the Valuation 214,231 208,220
F. Actuarially Determined Contribution (ADC)
if Paid on the Valuation Date: D+E 764,526 743,491
G. ADC Adjusted for Frequency of
Payments and Interest to Required Time
of Contribution 849,061 825,700
H. Covered Payroll for Contribution Year 1,312,639 1,373,048
I. ADC as % of Expected Covered
Payroll in the Contribution Year G + H 64.68 % 60.14 %
J. Estimate of State Revenue in
Contribution Year** 103,528 103,528 *
K. Actuarially Determined Contribution
in Contribution Year 745,533 722,172 *
L. ADEC as % of Covered Payroll in
Contribution Year: K + J 56.79 % 52.60 %
M. Actuarially Determined Contribution
if Paid on the First Day of the Contribution Year 718,298 695,790 *
*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.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-2
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date September 30, 2015 September 30, 2014
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $6,140,916 $6,062,400
b. Vesting Benefits 651,201 495,685
c. Disability Benefits 191,223 205,831
d. Preretirement Death Benefits 47,033 47,624
e. Return of Member Contributions 28,462 90,560
f. Total 7,058,835 6,902,100
2. Inactive Members
a. Service Retirees & Beneficiaries 6,910,601 6,755,105
b. Disability Retirees 785,713 799,683
c. Terminated Vested Members 453,362 398,047
d. Total 8,149,676 7,952,835
3. DROP Balances* 488,041 346,448
4. Excess Premium Tax Liability* 120,454 N/A
5. Total for All Members 15,817,006 15,201,383
c. Actuarial Accrued (EAN Past Service)
Liability (including reserves)* 13,399,853 12,656,462
D. Actuarial Value of Accumulated Plan
Benefits 11,688,360 11,006,207
E. Plan Assets (including reserves)*
1. Market Value 8,493,122 8,128,264
2. Actuarial Value 9,029,746 8,269,551
F. Actuarial Present Value of Projected
Covered Payroll 11,205,487 11,713,889
G. Actuarial Present Value of Projected
Member Contributions 896,439 937,111
* Beginning with September 30, 2014 Valuation DROP balances are being included in Present Value of
Projected Benefits, Actuarial Accrued Liability and in Plan Assets. The Excess Premium Tax Liability is being
included in Present Value of Projected Benefits, Actuarial Accrued Liability and in Plan Assets beginning with
the September 30, 2015 Valuation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-3
STATE PREMIUM TAX REVENUES
A. Accumulated Excess Premium Tax Revenues
at the Beginning of the Year
B. Chapter 185 Receipts During Fiscal
Year Ending 9/30/2015
C. Chapter 185 "Frozen" Receipts During
Fiscal Year Ending 9/30/1998
D. Qualifying Benefit Improvements
Since Chapter 99-1 Effective Date
E. Additional 185 Receipts During Fiscal
Year Ending 9/30/20 15*
F. Accumulated Excess Premium Tax Revenues
as of 9/30/2015 not less than beginning
of the year.
Minimum Compliance ($18,517)
A. Early retirement eligibility at 50 & I 0
B. Normal retirement eligibility at 55 & 10
C. I 0 year certain and life normal form
Year Ending 9/30/2015
$ 120,454
103,528
70,289
18,517
14,722
120,454
Potential Future Benefits
Extra Benefits
A. None proposed
*Note: During the Fiscal Year ended 9/30/2015, "Chapter 185 receipts" totaled $103,528. 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 part of the Actuarially Determined Contribution. However, pursuant to the agreement between the
City and the Police Benevolent Association, the City has now access to all Chapter 185 revenue to fund the
Unfunded Actuarial Accrued Liability, subject to an actuarial certification, 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
9/30/2015 Actuarial Valuation I B-4
FINANCIAL SOUNDNESS
The purpose of this portion of the Report is to provide cetiain measures which indicate the financial soundness of
the program. These measures relate to short term solvency and long tetm 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 impmiant 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:
I. 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 participants. 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.
GRS
Police Officers
9/30/2015 9/30/2014 9/30/2013
1. Accumulated Contributions
of Active Members $ 471,030 $ 432,695 $ 405,604
2. APV ofprojected Benefits in
Pay Status and for Vested
Terminations l 8,758,171 8,299,283 7,238,073
3. APV of Accrued Benefits for
Active Participants
(Employer Portion) 2,459,159 2,274,229 1,794,982
4. Total 11,688,360 11,006,207 9,438,659
5. Market Value of Assets 1 8,493,122 8,128,264 7,331,629
6. Assets as% of Total 73% 74% 78%
1 DROP balances are being included in Actuarial Accrued Liability and in Plan Assets beginning with the September
30, 2014 Valuation. The Excess Premium Tax Liability is being included in Actuarial Accrued Liability and in Plan
Assets beginning with the September 30, 2015 Valuation.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-5
$12.0
$) 0.0
$8 .0
lf! ~ $6.0
::E
$4.0
$2.0
$0.0
Ratio of Market Value of Assets to
Present Value of Accrued Benefits
2010 20 11 20 12 20 13 2014 20 15
Actuaria l Valuatio n Date (Sep tember 30)
-MRrkc t Va lue of Assets = PV AccT ucd Benefits -Ra ti o
150%
100%
::0
Ill
5·
50%
0%
In creases in be nefits wi II , of course, adverse ly a ffec t th e trend in the yea rs when such in creases arc first refl ected
in the act uari al values. Althou gh diffe ren t act uari a l ass umpti ons would be used in th e eve nt of a termin at ion of the
program, thi s te st shows how mu ch of th e benefits acc ru ed to date mi ght be covered by asse ts in the eve nt of a plan
freeze us in g th e va lu atio n ass umpti ons.
GRS City o f At lant ic Beac h Police Offi ce rs'
Ret irement System
9/30/2 0 15 Ac t uarial Va lu ation 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 short term solvency value
derivation in several ways. The shmt term solvency liability number is based on the benefits accrued to date by the
participants while the long te1m 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 tenn 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
Actuarial Value of Actuarial Accrued %ofAAL
Valuation Assets Liability Covered by
Date (in Thousands) (in Thousands) Assets
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
9/30/15 ** 9,030 13,400 67
*Reflects change in benefits, actuarial assumptions and/or method.
**DROP balances are being included in Actuarial Accrued Liability and in Plan Assets beginning
with the September 30, 2014 Valuation. The Excess Premium Tax Liability is being included in
Actuarial Accrued Liability and in Plan Assets beginning ·with the September 30, 2015 Valuation.
City of Atlantic Beach Police Officers'
Retirement System
9/3 0/2015 Actuarial Valuation J B-7
GRS
$14.0
$1 2.0
$10.0
§ $8.0
F-1 ~
$6 .0
$4 .0
$2 .0
$0 .0
Ratio of Actmuial Value of Assets
to Actuarial Accruetl Liabilin· •
2008 2009 20 10 20 II 20 12 20 13 20 14 20 15
Actu aria l Va luation Date (September 30)
-Actu aria l Asse ts 1=:::1 Accrued Linbility --.-Ra ti o
100%
~ Ill g.
50%
Ci ty of At la nti c Beach Pol ice Officers'
Retirement Sy stem
9/30/20 15 Actu ar ial Va lu atio n 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 vruy
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 Experience Gain (Loss)
1. Last Year's UAAL
2. Last Year's Employer Normal Cost
3. Last Year's Actual City Contibution
4. Interest at the assumed rate on:
a. 1 for one year
b. 2 for one year
c. 3 from dates paid
d. a+ b-c
5. This Year's Expected UAAL
1 + 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
$4,386,911
208,220
677,542
307,084
14,575
23,714
297,945
4,215,534
4,370,107
(154,573)
(145,570)
(9,003)
9/30/2015 Actuarial Valuation I B-9
GRS
Net actu ari al ga in s (losses) in previous yea rs have bee n as fo llows:
C umulative G uin
Year Ended Act uarial G ain (Loss) (Loss)
9/3 0/1998 95,0 19 95 ,0 19
9/3 0/1999 117,618 2 12,637
9/3 0/2 000 (10 3,87 1) 108,766
9/30/2001 1,389 110,155
9/3 0/2 002 (128,212) (18,057)
9/30/2003 (339,563) (357,620)
9/30/2004 (207,808) (565,428)
9/30/2005 (287 ,225) (852 ,653 )
9/3 0/2006 4 11,559 (441,094)
9/3 0/2 007 (137,906) (578,999)
9/3 0/2 008 (308 ,022 ) (887 ,02 1)
9/3 0/2 009 (3 23,582) (I ,2 1 0,603)
9/3 0/20 I 0 154,73 1 (I ,055,872)
9/30/201 1 (45 1,201) (1,507,073)
9/3 0/2 012 (3 2,697) (I ,539,770)
9/30/2013 115,061 (I ,424,709)
9/3 0/2 014 95,4 16 (I ,329,292)
9/3 0/201 5 (154,573) (I ,483,865)
Actuarial Gain(+) o r Loss ( -)
Plan Yea r End
-GA in o r Lo ss
C ity of A tl antic Beach Poli ce Ofncers'
Retirement Sys tem
-Cum ulalivc
9/30 /2 01 5 Ac tu ar ial Va luat io n I B -10
The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan so it is
important that they are in line with the actual experience. The following table shows the history of actuarial fund
earnings and salary increase rates compared to the assumed rates.
Investment Return (A VA) Salary Increases
Year Ending Actual Assumed Actual 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
9/30/2015 5.3 7.0 8.6 7.5
Average 5.2 % ---6.4 % ---
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.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-11
GRS
History of Investment Return -Actuarial Value of Assets
15%
10% 10%
5% 5%
0%
-5% -5%
# $ # # # # ~ # ~ # ~ ~ ~
Plan Year End
-Adunl -AMODncd
History of Sa lary Increases
20% ~----------------------------------------------------~ 20%
15%-15%
10%-10%
-5%-5%
-0% -~--4----+--~~--+---~---4--~----~--~~--~--4----+ 0%
-5% -5%
# $ ~ # # # ~ # ~ # ~ ~ ~
Plan Year End Compa r ed to Pr evious Year
---Actual ~ Asstun td
City of Atlantic Beach Police Officers'
Ret ireme nt Sys tem
9/30/20 15 Actuarial Va l uation I B -12
Valuation
Date
9/30/03 *
9/30/04
9/30/05
9/30/06
9/30/07 *
9/30/08
9/30/09 *
9/30110 *
9/30/11
9/30/12 *
9/30/13
9/30/14 *
9/30/15
RECENT HISTORY OF V ALUATIQN RESULTS
Number of Employer Normal Cost**
Active Inactive Reported Covered Actuarial Value of
Members Members Annual Payt·oll Assets UAAL Amount %of Covered
(in Thousands) (in Thousands) (in Thousands) (in Thousands)
22 15 $ 1,129 $ 4,373 $ 1,613 $ 182
27 16 1,360 4,534 1,871 220
26 18 1,402 4,775 2,222 228
24 19 1,254 5,175 1,859 211
25 19 1,453 5,663 1,957 200
26 19 1,476 5,764 2,348 207
27 20 1,697 5,922 2,767 244
27 21 1,639 6,164 3,285 247
26 22 1,606 6,305 3,760 260
26 23 1,548 6,880 3,679 208
22 24 1,360 7,429 3,466 176
21 25 1,295 8,270 4,387 208
19 27 1,247 9,030 4,370 214
*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.
Payroll
16.12 %
16.21
16.25
16.84
13.74
13.99
14.36
15.08
16.17
13.44
12.92
16.08
17.18
~ .Q
~
GRS
50
45
40
35
30
25
20
15
10
5
Recent History of N umbe r of Members
0 ~~-=~~-=~~~=-~~~~~~~~~-=~
Actuarial Valuation Date
a Aaive Members
Recent History of Covered Annual Payroll
$1.8
$1.5
$1.3
/ 1111111 • • 111:1 ,.. (Ill. ~ ,.:: ,..
,0111 ~ ~
$1.0
$0.8
$0.5
$0.3
~ 1-~ 1-r-r-r-r-r--r-
$0 .0 -1.--...... -...._ -...._ ...._ ...._ ...._ -...._
Actuarial Valuation Date
l7
City of Atlanti c Beac h Po li ce Officers '
Retirement Syste m
9/30/20 15 Act uari a l Va lu at ion I B-14
GRS
RECENT IDSTORY OF REQUIRED AND ACTUAL CONTRIBUTIONS
End of Year To
Required Employer/State
Contributions Actual Which Valuation Valuation Employer/State
Applies % of Expected Contributions
Amount Payroll
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 46.10 677,542
9/30/14 • 9/30/16 825,700 60.14 ----
9/30/15 9/30/17 849,061 64.68 ----
• Reflects change in benefits, actuarial assumptions and/or method.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 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. Normal cost and the allocation of benefit values between service
rendered before and after the valuation date were detennined using the Entry-Age Actuarial Cost Method.
The ently-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 portion 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
fmther 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
9/30/2015 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.
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 I 0 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 assumed to be 7.00% per year, net of investment-related expenses.
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 System
9/30/2015 Actuarial Valuation I B-17
Demographic Assumptions
The mortality 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 2015) Men Women Men Women
50 0.16% 0.13% 34.35 35.68
55 0.27 0.24 29.23 30.71
60 0.53 0.47 24.29 25.93
65 1.03 0.90 19.68 21.44
70 1.77 1.55 15.48 17.32
75 3.06 2.49 11.68 13.59
80 5.54 4.13 8.45 10.28
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 mortality table was set forward ten years for projecting the expected mortality of disabled lives.
The rates of retirement used to measure the probability of eligible members retiring under normal and early
retirement eligibility were as follows:
Normal Retirement/DROP
Year of Percent of Eligible
Eligibility Employees Retiring
1 40%
2 10%
3 10%
4 10%
5 40%
6-19 50%
20 and over 100%
Additionally, the rate of retirement is assumed to be 100% upon attainment of age 60 and completion of 5 years
of service.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 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 Separation 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 active members ( 67% of disability incidences are assumed to be service-connected)
GRS
Percent Becoming Disabled
Sample
Ages
20
25
30
35
40
45
50
55
60
City of Atlantic Beach Police Officers'
Retirement System
Within Next Year
Men Women
0.14% 0.14%
0.15% 0.15%
0.18% 0.18%
0.23% 0.23%
0.30% 0.30%
0.51% 0.51%
1.00% 1.00%
1.55% 1.55%
0.00% 0.00%
9/30/2015 Actuarial Valuation I B-19
Administrative & Investment
Expenses
Benefit Service
Decrement Operation
Decrement Timing
Eligibility Testing
Forfeitures
Incidence of Contributions
Marriage Assumption
Normal Form of Benefit
Pay Increase Timing
Service Credit Accruals
Miscellaneous and Technical Assumptions
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 determined based upon the age nearest
biiihday and service nearest whole year on the date the decrement is
assumed to occur.
Vested members who terminate with a benefit worth 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 normal form of benefit is a life annuity with 10 year ce1iain.
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
9/30/2015 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 mmiality, 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
mmiality 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 portion of unrealized appreciation or depreciation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I B-21
SECTION C
PENSION FUND INFORMATION
SUMMARY OF ASSETS
Y eal' Ending Yeal' Ending
9/30/2015 9/30/2014
Cash and Secul'ities-Mal'ket Value
Cash and Cash Equivalents $ 68,372 $ 9,581
Short Term Investments 2,577,334 2,045,177
Treasury and Agency Bonds & Notes 0 0
Corporate Bonds 434,533 2,858,312
Common & Preferred Stocks 4,921,487 2,965,659
Other Fixed Income 0 0
Mutual or Pooled Bond Funds 0 0
Mutual Funds 0 0
Other Securities -Pmiicipant Directed 488,041 346,448
Total 8,489, 767 8,225,177
Receivables and Accmals
Member Contribution 0 0
Additional Employer Contribution 0 0
Interest and Dividends 3,355 23,541
Total 3,355 23,541
Payables
Benefits-DROP Reserve * 0 0
Lump Sum Distributions 0 0
Excess Premium Tax Liability* 0 120,454
Other 0 0
Total 0 120,454
Net Assets-Mal'ket Value $ 8,493,122 $ 8,128,264
* For consistency with GASB Statements 67 and 68 DROP balances are being included in Plan Assets
beginning with the September 30, 2014 Valuation. Similarly, the Excess Premium Tax Liability is being
included in Plan Assets beginning with the September 3 0, 2015 Valuation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I C-1
GRS
PENSION FUND INCOME AND DISBURSEMENTS
Year Ending Year Ending
9/30/2015 9/30/2013
Market Value at Beginning of Period $ 8,128,264 $ 7,331,629
Income
Member Contributions 112,354 103,095
State Contributions 103,528 96,217
Employer Contribution 574,014 563,203
Interest and Dividends 51,010 146,026
Realized and Unrealized Gain (Loss) 36,774 332,582
Total Income 877,680 1,241,123
Disbursements
Monthly Benefit Payments 524,537 524,537
Lump Sum Distributions 0 0
Refund of Contributions 28,505 61,079
Increase in Excess Premium Tax Liability 0 0
Investment Related Expenses 44,250 35,290
Other Administrative Expenses 35,984 22,742
Insurance Premiums 0 0
Total Disbursements 633,276 643,648
Adjustment for new accounting principle * 120,454 199,160
Net Increase During Period $ 364,858 $ 796,635
Market Value at End of Period $ 8,493,122 $ 8,128,264
* For consistency with GASB Statements 67 and 68 DROP balances are being included in Plan
Assets beginning with the September 30, 2014 Valuation. Similarly, the Excess Premium Tax
Liability is being included in Plan Assets beginning with the September 30,2015 Valuation.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 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
RECONCILIATION OF DROP ACCOUNTS
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
$
+
+
346,448
141,962
(369)
0
488,041
9/30/2015 Actuarial Valuation I C-3
ACTUARIAL VALUE OF ASSETS
As of September 30, 2015
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 current 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
9/30/2015 Actuarial Valuation! C-4
UEVBLOPMENT 011 JIUNDlNG VALUJ OJi ASSUPI AS OF S ·rrEMrttm 30
2013
A. Preliminar y act uarial va lu e from prior yea r $ 6,880,124 $
B. Market va lu e beginning of prior Yt!81' 6,934,693
C. Marke t val ue end of pri or ye<H 7,33 1,629
D. No n-investme nt ne t cuS it flow
[ co ntributi ons-(benefit s & expe nses)] 33,969
E. Inves tm ent rel UJ'n
L Actua l market va lue l'e turn net of in ves tm ent
ex penses: C-B-0 362,967
2. ~x pected re turn of7.00% (8 .00% befo rt: 20 15) 556,134
3. Excess/( shortfall) to be phased-in: E I -1)2 (193, 167)
F'. Ph ased-in recog nition of investment rctum
(4 Year Recognit ion)
I. Current yca 1·: 25% o f E3 (4 S,292)
2. 25%orexcess/(shortra ll ) from fir st priOI' year 79,27 7
3. 25% o f excess/( shortfa ll ) from seco nd pr ior year (11 0,90 1)
4. 25%ofexcess/(shorlfa ll ) from third pri oi·yca1· 38,538
S. Total pha sed-in recog niti on o f investment return (4 1,378)
G. Actuar ial value end of year
I. Pre I im inary actuarial valu e en d of year:
A + D+ E2 + F5 7,428,849
2. Upper corr idor limit: 120% ofC 8,797,955
3. Lowe r corri dor limit: 80% of C 5,865,303
4. Act uar ial value end of yea r 7,428,849
1-(. DifH:re nce betwee n market va lu e and act uar ial va lue (97 ,22 0)
I. Rati o of Fundi ng Value to Market Va lu e 10 1%
*Includes adjustm ent for adopting new A ccounting }J1.inciple.
*._In c lud es adjustment fo r inclusion of exces~· premiwn lax liability.
GRS City o f At lan ti c Beac h Police Officel's '
Retirelll ent System
2014 2015 201 6
7,428 ,849 $ 8,269,55 1 $ 9,029 ,746
7,33 1,629 8,128,264 8,493,122
8,128,264 8,493,122
353,3 17"' 32 1,324 **
44 3,3 18 43,5 34
608 .629 584.44 1
( 165 ,3 11 ) (540,907)
(41 ,3 28) (135,227)
(48 ,292.) (4 1,3 28) (I 35,227)
79 ,277 (48 ,292) (4 1,328)
~II 0,90 I) 79 ,277 ~48,292}
( 12 1 ,244) ( 145,570} (224,8 •17)
8,269,55 1 9,029 ,746
9,753,9 17 10,19 1,746
6,5 02 ,6 11 6,7 94,498
8,269,55 1 9,029,746
(14l,287) {536,624)
102% 106%
9/30/20 15 Actuari al 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
Year Ended
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
9/30/12
9/30/13
9/30/14
9/30/15
Average Compounded
Rate of Return for
5 Years
10 Years
City of Atlantic Beach Police Officers'
Retirement System
Investment Rate of Return
Market Value Actuarial Value
9.5 % 2.2 %
6.7 2.4
8.5 4.4
8.8 7.8
14.2 9.4
(11.7) 4.6
8.5 3.8
10.8 4.7
1.2 2.2
13.9 7.9
5.7 7.5
5.8 6.3
0.5 5.3
5.3% 5.8%
5.5% 5.9%
9/30/2015 Actuarial Valuation I C-6
SECTION D
MISCELLANEOUS INFORMATION
GRS
RECONCILIATION OF MEMBERSHIP DATA
I A. Active Members
I. Number Included in Last Valuation
2. New Members Included in Current Valuation
3. Non-Vested Employment Terminations
4. Vested Employment Terminations
5. Service Retirements
6. Disability Retirements
7. Deaths
8. DROP Retirement
9. Vested Employment Terminations-Refunded
10. Number Included in This Valuation
I B. Terminated Vested Members
I. Number Included in Last Valuation
2. Additions from Active Members
3. Lump Sum Payments/Withdrawals
4. Payments Commenced
5. Deaths
6. Other-Returned to Work
7. Number Included in This Valuation
I From 9/30/14
To 9/30/15
21
2
(1)
(I)
0
0
0
(1)
(1)
19
5
1
0
0
0
0
6
I C. Service Retirees, Disability Retirees, Beneficiaries & DROP
I. Number Included in Last Valuation 20
2. Additions from Active Members 0
3. Additions entering the DROP 1
4. Additions from Terminated Vested Members 0
5. Deaths Resulting in No Further Payments 0
6. Deaths Resulting in New Survivor Benefits 0
7. End of Cetiain Period -No Further Payments 0
8. Other--Lump Sum Distributions 0
9. Number Included in This Valuation 21
From 9/30/12
To 9/30/13
22
2
0
(1)
0
0
0
0
(2)
21
4
1
0
0
0
0
5
20
0
0
0
0
0
0
0
20
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I D-1
STATISTICAL DATA
Active Members as of September 30, 2015
Age Group 0-4 5-9 10-14 15-19
20-24 NO. I 0 0 0
25-29NO. 4 0 0 0
30-34 NO. 0 I 0 0
35-39 NO. 0 2 I 0
40-44 NO. 0 0 3 3
45-49 NO. 0 0 I I
50-54 NO. 0 0 0 I
55-59 NO. 0 0 0 0
60-64 NO. 0 0 0 0
65&UPNO 0 0 0 0 -- ------
TOT NO. 5 3 5
GRS City of Atlantic Beach Police Officers'
Retirement System
5
20-24 25-29 30 &Up Totals Avg.Pay
0 0 0 I 47,946
0 0 0 4 43,752
0 0 0 I 62,145
0 0 0 3 59,660
0 0 0 6 75,258
I 0 0 3 82,133
0 0 0 I 84,595
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0 ----------
I 0 0 19 65,612
9/30/2015 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
2015
5-yr. Totals
2010-2015
Expected
for2016
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 3
1 .1
12 20
A Represents actual number.
Service
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
! 0.5
5 4.3
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 1 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 1* 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
0 0.1 0 0.0 3 0 3 2.2
Q 0.1 Q 0.0 1 ! J. 1.5
1 0.4 0 0.0 15 12.5
0.0 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
19
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I 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 I 48,017 0 I 48,017
2014 0 0 0 0
2015 1 20,397 0 1 20,397
Expected for
2016
* One-time acijustment 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
21 686,897 0.2 6,119
0.3 6,815
9/30/2015 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, Part 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 depatiments heads who have elected
not to patiicipate, 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 (FA C)
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
9/3 0/2015 Actuarial Valuation I E-1
I. Normal Retirement
Eligibility:
Benefit:
Normal Form
of Benefit:
For members hired prior to January 1, 2013
A pmticipant may retire on the first day of the month coincident with or next following the
earlier of:
(I) 25 years of Credited Service regard! ess of age, or
(2) age 50 with 20 years of Credited Service, or
(3) age 55 with IO years of Credited Service, or
( 4) age 60 with 5 years of Credited Service.
For members hired on or after January l, 2013
A pmticipant may retire on the first day of the month coincident with or next following the
earlier of:
(1) Age 55 with I 0 years of Credited Service, or
(2) age 52 with 25 years of Credited Se1vice.
For members hired prior to January 1, 2013
3.00% ofFAC times Credited Service. Benefit is limited to IOO% ofFAC.
For members hired on or after January 1, 2013
2.00% ofFAC times Credited Service. Benefit is limited to IOO% ofFAC.
10 Years Ce1iain and Life thereafter; other options are also available.
J. Early Retirement
Eligibility:
Benefit:
Normal Form
of Benefit:
A member may elect to retire earlier than the Nonnal 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.
I 0 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
9/30/2015 Actuarial Valuation I E-2
L. Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member who becomes totally and permanently 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% ofF AC.
10 year certain and life thereafter.
M. Non-Service Connected Disability
Eligibility:
Benefit:
Normal Form
of Benefit:
Any member with 8 1/3 or more years of Credited Service who becomes totally and
permanently 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.
I 0 year certain and life thereafter.
N. Pre-Retirement Death
Eligibility:
Benefit:
Nmmal 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 cetiain 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 unmarried 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 fulltime student.
0. Post Retirement Death
GRS
Benefit determined by the form of benefit elected upon retirement.
City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 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 1, 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 1, 2013
A pmiicipant has earned a non-forfeitable right to Plan benefits after the completion of 10
or more years of Credited Service
The benefit is the member's vested p01iion of the accrued Nonnal Retirement Benefit as ofthe
date of termination. Benefit begins on the Nonnal Retirement date.
10 year certain and life thereafter; other options are also available.
Member's terminating employment with less than 5 years of Credited 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 normal 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
9/30/2015 Actuarial Valuation I E-4
Contribution State
Year Beginning City Sec 185 Member Total
10/1/2009 21.07% 5.55% 4.815% 31.44%
10/1/2010 21.66% 4.83% 4.815% 31.31%
10/1/2011 31.07% 5.11% 4.815% 41.00%
10/1/2012 30.13% 5.21% 5.111% 40.45%
10/1/2013 34.42% 5.57% 7.000% 46.99%
10/1/2014 39.43% 6.67% 8.000% 54.10%
10/1/2015 52.60% 7.54% 8.000% 68.14%
10/1/2016 56.79% 7.89% 8.000% 72.68%
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 repmt under the Revisions in Benefits heading.
X. Gain-sharing benefits
Not applicable.
Y. Deferred Retirement Option Plan
Eligibility:
Benefit:
Maximum
DROP Period:
Interest
Credited:
NmmalFmm
of Benefit:
Upon obtaining Normal or Early Retirement eligibility.
All members must make a written election to pmticipate in the DROP.
The member's Credited Service and F AC m·e frozen upon entry into the DROP. The monthly
retirement benefit as described under Nonnal Retirement is calculated based upon the frozen
Credited Service and FAC. Benefits for members entering the DROP upon Early Retirement
eligibility will be actuarially reduced as described for Early Retirement.
60 months
Pmticipants' DROP account balances will be credited in accordance with the self-directed
options selected by the pmticipant who entered the program prim· 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 emnings or losses for that quarter.
Lump Sum or roll-over to a qualified retirement account.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I E-5
SECTION F
COMPARATIVE SUMMARY OF PRINCIPAL
VALUATION RESULTS
COMPARATIVE SUMMARY OF
PRINCIPLE VALUATION RESULTS September 30, 2015 September 30, 2014
A Participant Data
Number Included:
Actives 19 21
Service Retirees & Beneficiaries 17 16
Disability Retirees 4 4
Terminated Vested Members 6 5
Total Members and Beneficiaries 46 46
Total Annual Payroll $1,246,622 $1,294,600
Expected Annual Payroll in Contribution Year 1,312,639 1,373,048
Total Annualized Benefits
Service Retirees & Beneficiaries 612,738 592,341
Disability Retirees 74,159 74,159
Terminated Vested Members 71,724 64,761
B. Assets (Market Value)*
Cash and Short Term Investments 2,645,706 2,054, 758
Treasury and Agency Bonds & Notes 0 0
Corporate Bonds 434,533 2,858,312
Common & Preferred Stocks 4,921,487 2,965,659
Mutual Fund Bonds 0 0
Mutual Fund Stocks 0 0
Other Securities 488,041 346,448
Net Receivables & Payables 3,355 (96,913)
Total 8,493,122 8,128,264
Actuarial Value 9,029,746 8,269,559
Assets include:
Accumulated active member contributions 471,030 432,695
(with interest if applicable)
C. Actuarial present value of accrued benefits
(i) Vested accrued benefits
Retired members and benefitciaries 7,696,314 7,554,788
Terminated members 453,362 398,047
DROP Balances* 488,041 346,448
Excess Premium Tax Liability* 120,454 N/A
Active members (includes non-forfeitable members
contributions of 471,030 and 432,695) 2,868,753 2,663,136
Total 11,626,924 10,962,419
(ii) Non-vested accrued benefits 61,436 43,788
(iii) Total actuarial p.v. of accrued benefits I 1,688,360 11,006,207
(iv) Actuarial p.v. of accrued benefits at begin. of year 11,006,207 9,438,659
(v) Changes attributable to:
Amendments none none
Assumption change 0 1,063,466
Operation of decrements 1,114,741 743,250
Benefit payments (553,042) (585,616)
Other (Method Change) 120,454 346,448
(vi) Net change 682,153 1,567,548
(vii) Actuarial p. v. of accr. benefits at end of year 11,688,360 11,006,207
*Beginning with September 30, 2014 Valuation DROP balances are being included in Present Value of Accumulated Plan
Benefits and in Plan Assets. The Excess Premium Tax Liability is being included beginning with the September 30, 2015
Valuation.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I F-1
GRS
COMPARATIVE SUMMARY OF
PRINCIPAL VALUATION RESULTS
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. Excess Premium Tax Liability
5. Total Present Value for All Members
Total Present Value of:
Future Salaries
Future Employee Contributions
Future Contributions from Other Sources
Derivation of Cunent Employer
Unfunded Actuarial Accrued Liability (UAAL)
a. Total UAAL for Prior Valuation Date
b. Employer Normal Cost for this period
c. Interest acccrued on (a) and (b)
d. Contributions for this period
e. Interest accrued on (d)
f.
g.
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
September 30, 2015 September 30,2014
$6,140,916 $6,062,400
651,201 495,685
191,223 205,831
47,033 47,624
28,462 90,560
7,058,835 6,902,100
6,910,601 6,755,105
785,713 799,683
453,362 398,047
8,149,676 7,952,835
488,041 346,448
120,454 N/A
15,817,006 15,201,383
11,205,487 11,713,889
896,439 937,111
5,890,821 5,994,721
$4,386,911 $3,466,384
208,220 182,782
321,659 284,622
677,542 659,420
23,714 26,377
0 1,234,336
0 0
0 0
154,573 (95,416)
4,370,107 4,386,911
9/30/2015 Actuarial Valuation I F-2
GRS
Original and Current Unfunded Actuarial Accrued Liabilities
Item Years
Date Description Remaining
9/30/2001 Experience Gain 1
9/30/2002 Experience Loss 2
9/30/2003 Experience Loss 3
9/30/2004 Experience Loss 4
9/30/2005 Experience Loss 5
9/30/2006 Experience Gain 6
9/30/2007 Experience Loss 7
9/30/2008 Experience Loss 8
9/30/2009 Experience Loss 9
9/30/2010 Experience Gain 10
9/30/20 II Experience Loss II
9/30/2012 Experience Loss 12
9/30/2013 Experience Gain 13
9/30/2014 Experience Gain 14
9/30/2015 Experience Loss 15
9/30/1993 Benefit Changes 8
9/30/1994 Benefit Changes 9
9/30/1996 Benefit Changes II
9/30/1997 Benefit Changes 12
9/30/2001 Benefit Changes 16
9/30/2003 Benefit Changes 18
9/30/2007 Benefit Changes 22
9/30/2012 Benefit Changes 27
9/30/1995 Assumption/Method Change 10
9/30/1997 Assumption/Method Change 12
9/30/2009 Assumption/Method Change 24
9/30/2010 Assumption/Method Change 25
9/30/2014 Assumption/Method Change 29
ITOTAL
City of Atlantic Beach Police Officers'
Retirement System
Amortization
Payment
(266)
22,043
54,865
31,919
42,139
(57,823)
18,584
39,851
38,494
(17,637)
48,821
3,517
(12,099)
(9,981)
15,861
74,980
(2,052)
5,405
1,287
10,091
15,505
(4,781)
(3,215)
50,662
33,537
3,557
52,781
94,250
$550295
Original Amount Current Unfunded
(1,389) (266)
128,212 42,644
339,563 154,062
207,808 115,683
287,225 184,874
(411,559) (294,908)
137,906 107,163
308,022 254,620
323,582 268,352
(154,731) (132,548)
451,201 391,716
32,697 29,894
(115,061) (108, 195)
(95,416) (93,399)
154,573 154,573
442,232 479,072
(12,597) (14,302)
35,914 43,364
8,892 10,934
81,627 102,000
144,006 166,884
(49,157) (56,591)
(40,750) (41,241)
323,633 380,738
231,795 285,019
40,694 43,650
630,507 658,145
1,234,336 1,238,170
$4,663,764 $4,370,107
9/30/2015 Actuarial Valuation I F-3
COMPARATIVE SUMMARY OF
PRINCIPAL VALUATION RESULTS
E. Pension Cost
Entry Age Nmmal Cost for:
Service Retirement Benefits
Vesting Benefits
Disability Benefits
Preretirement Death Benefits
Return of Member Contributions
Total Actives
Administrative Expenses
Expected Member Contributions
(Assuming employee contrib rate applicable to the contrib year)
Total Employer Normal Cost
Payment Required to Amortize Unfunded Actuarial
Accrued Liability
Total Contribution at Valuation Date
Total Contribution Adjusted for Frequency of
Payments and Interest to Next Following Fiscal Year
%of Expected Payroll
Amount Expected to be Contributed by Members
% of Expected Payroll
F. Past Contributions-For the Fiscal Years Ended September 30 of2014 and 2015:
Required Contribution Determined in the Valuation as of
For the Year Ending:
by the Plan Sponsor (Including Expected Premium Tax Revenues)
by the Plan Sponsor (Excluding Expected Premium Tax Revenues)
Expected Premium Tax Revenues
by Members
Actual Contribution for the Fiscal Year ended
by the Plan Sponsor
Premium Tax Revenues
by Members
G. Net experience (gain) loss during year:
GRS City of Atlantic Beach Police Officers'
Retirement System
Septembe1· 30, 2015 September 30,2014
$212,124 $230,488
41,516 25,244
12,643 13,295
2,093 2,185
11,487 20,549
279,863 291,761
35,984 22,742
101,616 106,283
214,231 208,220
550,295 535,271
764,526 743,491
849,061 825,700
64.68% 60.14%
105,011 109,844
8.000% 8.000%
September 30, 2013 September 30, 2012
September 30, 2015 September 30, 2014
$665,091 $654,280
$574,014 $563,203
$91,077 $91,077
$115,414 $98,175
September 30, 2015 September 30, 2014
$574,014 $563,203
$103,528 $96,217
$112,354 $103,095
$154,573 ($95,416)
9/30/2015 Actuarial Valuation I F-4
H. I. Plan to Amortize Unfunded Actuarial Accrued Liability
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 PI'Ojected UAAL
2015 $4,370,107
2016 $4,087,216
2017 3,784,221
2018 3,483,602
2019 3,220,645
2020 2,973,435
2025 1,794,130
2031 1,213,343
2033 1,038,987
2037 684,483
2041 261,441
3. Action taken since last actuarial valuation.
Contribution sufficient to satisfy the total required contribution.
GRS City of Atlantic Beach Police Officers'
Retirement System
9/30/2015 Actuarial Valuation I F-5
GRS
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
I. 1. Three-Year Comparison of Actual and Assumed Salary Increases (Annualized)
I Year Ended
9/30/2013
9/30/2014
9/30/2015
I Actual I Assumed I
2.3%
7.8%
8.6%
7.5%
7.5%
7.5%
2. Three-Year Comparison ofinvestment Return (Actuarial Value)
Year Ended
9/30/2013
9/30/2014
9/30/2015
Actual
7.5%
6.3%
5.3%
Assumed
8.0%
8.0%
7.0%
3. Average Annual Growth in Covered Payroll, Last Ten Years (if applicable)
Valuation Date Total Covered P
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
9/30/2015 1,246,622
Total% Increase Last Ten Years (11.11)%
Annual % Increase (1.17)%
Thirty-year Forecast 3.50%
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
9/30/2015 Actuarial Valuation I F-6