City of Gainesville Consolidated Police Officers and Firefighters Retirement Plan

Transcription

1 City of Gainesville Consolidated Police Officers and Firefighters Retirement Plan Actuarial Valuation Report As of October 1, 2014 July 2015

2 July 16, 2015 Board of Trustees City of Gainesville Consolidated Police Officers and Firefighters Retirement Plan 200 East University Avenue Gainesville, FL Joseph L. Griffin Principal, Atlanta Retirement Practice Leader Buck Consultants, LLC Suite Galleria Parkway SE Atlanta, GA tel fax This report presents the results of the actuarial valuation of the City of Gainesville Consolidated Police Officers and Firefighters Retirement Plan ( Plan ) as of October 1, The purpose of this report is to provide a summary of the funded status of the Plan as of October 1, 2014, and to determine the minimum required contribution amount for the fiscal year ending September 30, 2016, and to satisfy State reporting requirements. In addition, this report provides a record of any plan amendments or other plan changes affecting the financial status of the Plan. Summary of Valuation Results Currently, the Plan receives contributions from the City of Gainesville, the State of Florida through Chapter 175/185 and active members. The amount of the City contribution varies from year to year, while the member contributions are equal to a fixed percentage of payroll. For the 2016 fiscal year, the percentage is 7.50% for police officers and 9.00% for firefighters, for a composite rate of 8.06%. After taking into account expected member contributions and expected State contributions of 4.64% of payroll, the total required contribution from the City for the 2015/2016 fiscal year is 15.57% of projected payroll. For comparative purposes, the required City contribution for the 2014/2015 fiscal year was 15.39% of payroll. Discussion of Valuation Results The contributions received by the Plan are used to pay for the normal cost of the Plan plus provide a payment toward the unfunded actuarial accrued liability. Currently, the Plan has $243,066,019 in accrued liability and $207,898,069 in assets at actuarial value, resulting in an unfunded accrued liability of $35,167,950. The City s contribution of $3,820,540 is determined as the normal cost (including administrative expenses) of $4,334,615 plus the amortization of the unfunded liability of $2,603,490, reduced for the expected Chapter 175/185 contribution of $1,139,280 and expected employee contributions $1,978,285. The City s contribution amounts to 15.57% of projected payroll and is payable during 2015/2016 fiscal year. Asset Allocation As requested by the Board and Plan Sponsor, assets were allocated to police officers and firefighters separately as of the October 1, The allocation was performed based on the accrued actuarial liability of each group (net of DROP accounts) with recognition that certain assets (DROP account and State Premium Tax Revenue) are already designated specifically to each group. The purpose of the allocation is to allow contribution rates, funded status, experience, and other changes to be tracked separately for police officers and firefighters. Future investment returns will be allocated to each group such that the investment return as a percentage will be the same as the return on the total assets by taking into account the cash flow of each group separately.

3 Consolidated Police Officers and Firefighters Retirement Plan July 16, 2015 City of Gainesville Page 2 Actuarial Experience The Plan s unfunded liability was projected to be $36,233,476 as of October 1, However, the unfunded liability of $35,167,950 is $1,065,526 less than expected, which is due to $3.6 million in actuarial gains offset by a $2.5 million increase in liability due to the reduction in the investment rate of return assumption. The return on the actuarial value of assets was approximately 9.31%, which compares to the assumed return on the actuarial value of assets of 8.40%. The greater than expected asset return resulted in an actuarial gain of approximately $1.8 million. Also, salary increases were lower than expected (5.01% average assumed salary increases vs. actual salary increases of 2.90%) resulting in a liability gain of about $0.2 million. The remainder of the gains was due to fewer retirements than expected and other actuarial experience. A reconciliation of the actuarial experience can be found in Table II. Changes in Plan Provisions In preparing the actuarial valuation as of October 1, 2014, we have used the same plan provisions as were used to complete the valuation as of October 1, A summary of the plan provisions can be found in Table XI. Changes in Actuarial Assumptions and Methods as of October 1, 2014 In preparing the actuarial valuation as of October 1, 2014, we have used the same assumptions as were used to complete the valuation as of October 1, 2013, except for the following: The investment rate of return assumption was decreased from 8.40% to 8.30%. The payroll growth assumption was changed to 3.00% as of October 1, 2014 to reflect the City s expectations for future payroll increases, which is higher than the assumed rate of 2.94% used in the prior year. The City expects future payroll growth to exceed the historical 10-year average of 1.64%. This change is based on the recent lift of hiring/pay freezes, the creation of additional positions, and increased participation in the DROP program. The payroll growth assumption does not affect the total liability, but changes how the unfunded liability is amortized over time in the City s contribution. A summary of the actuarial methods and assumptions used in the valuation can be found in Tables X. The effect of the assumption changes is summarized as follows: Original Investment Rate of Return Payroll Growth Entry Age Normal Accrued Liability $240,541,709 $243,066,019 $243,066,019 Entry Age Normal Cost 3,829,045 3,912,383 3,912,383 City Contribution 3,603,218 3,836,124 3,820,540

4 Consolidated Police Officers and Firefighters Retirement Plan July 16, 2015 City of Gainesville Page 3 Financial and Member Data This valuation was performed using employee and financial data supplied by the City of Gainesville. The census data was received as of October 1, Buck did not audit this data, although it was reviewed for reasonableness and consistency with the prior year s information. The results of the valuation are dependent on the accuracy of the data. Tables VIII through VIIIf provide a summary of the data used in the valuation. Estimated Impact of Pension Obligation Bond As requested, we have estimated the City s contribution rate without reflecting the pension obligation bond contribution. For this purpose we have excluded from the Plan s assets the special contribution of $47,728,526 and investment earnings of $85,210,879 as reported by the Plan. On this basis, the City s contribution rate would have been 57.93% of projected payroll for the fiscal year ending In Table Ia we present a comparison of the contribution requirements with and without the pension obligation bond contribution. Contents of the Report A summary of the results of the valuation is presented in Table I. Information for the auditors can be found in Table III. The disclosure information required by Chapter 112, Florida Statutes, is presented in Table IV-IVb. Tables V through VII provide information about the Plan s assets. Table VII provides a historical record of the growth, expenditures, and annual returns of the Plan. Tables VIII through VIIIf provide information regarding the participant population.

5 Consolidated Police Officers and Firefighters Retirement Plan July 16, 2015 City of Gainesville Page 4 Certification This actuarial valuation was prepared under our direct supervision and we acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate and, in our opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. 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. Future actuarial measurements may differ significantly from current measurements due to plan experience differing from that anticipated by the economic and demographic assumptions, increases or decreases expected as part of the natural operation of the methodology used for these measurements, and changes in plan provisions or applicable law. Because of limited scope, Buck performed no analysis of the potential range of such future differences. This valuation was prepared in accordance with the standards of practice prescribed by the Actuarial Standards Board, based on the current provisions of the Plan and on actuarial assumptions that are internally consistent and reasonably based on the actual experience of the Plan. We are members of the American Academy of Actuaries and meet the Academy s qualification standards to issue this Statement of Actuarial opinion. We are available to answer questions regarding any of the content within this report. BUCK CONSULTANTS, LLC Joseph L. Griffin, ASA, EA, MAAA, FCA Principal, Retirement Consulting Actuary Enrollment No Timothy G. Bowen, EA, MAAA, FCA Director, Retirement Actuary Enrollment No

6 Table of Contents Liabilities Table I Summary of Valuation Results... 1 Table Ia Valuation Results With and Without Pension Bond... 3 Table II Gain and Loss Analysis... 4 Table III Present Value of Accrued Benefits... 6 Table IV Information Req. by Florida Statute Chapter Table IVa Projection of Benefit Payments Table IVb Unfunded Liability Bases Assets Table V Assets Table Va Asset Reconciliation Table Vb Reconciliation of DROP Accounts Table Vc Use of State Premium Tax Contributions Table Vd Actuarial Value of Assets Table VI Historical Asset Information Table VIa Revenues by Source and Expenses by Type Table VII Contributions vs. Payments Data Table VIII Summary of Member Data Table VIIIa Active Data Table VIIIb Retiree Data Table VIIIc Data Reconciliation Table VIIId Age-Service-Salary Table (All Active Members) Table VIIIe Age-Service-Salary Table (Active Police Officers) Table VIIIf Age-Service-Salary Table (Active Firefighters) Table IX Historical Contribution Rate Assumptions Table X Actuarial Assumptions and Methods Table Xa Assumption and Method Changes Plan Provisions Table XI Plan Provisions Table XIa Plan Amendments... 42

7 Summary of Valuation Results - Total Plan Table I October 1, 2013 October 1, Number of Members a. Active Members b. Deferred Vested Members c. Retired Members: i. Non-disabled ii. Disabled iii. Beneficiaries iv. Sub-total d. Total Members Total Annual Compensation $ 23,668,480 $ 23,826, Valuation Payroll $ 24,364,333 $ 24,540, Total Retired Member Benefits $ 13,359,178 $ 14,075, Annual Cost a. Present Value of Future Benefits $ 262,309,639 $ 275,601,791 b. Present Value of Future Normal Cost 31,302,302 32,535,772 City Portion 15,631,171 16,425,807 Member Portion 15,671,131 16,109,965 c. Actuarial Accrued Liability (AAL) 231,007, ,066,019 d. Actuarial Value of Assets (194,732,675) (207,898,069) e. Unfunded AAL (UAAL) $ 36,274,662 $ 35,167,950 f. Normal Cost $ 3,761,255 $ 3,912,383 g. Payment to Amortize Unfunded Liab/(Surpl) 2,667,837 2,603,490 h. Administrative Expenses 416, ,232 i. Total $ 6,846,078 $ 6,938,105 j. Expected Member Contributions $ 1,956,676 $ 1,978,285 k. Expected State Contributions 1,139,280 1,139,280 l. Estimated City Contributions 3,750,122 3,820,540 m. Total $ 6,846,078 $ 6,938, Annual Cost (as a % of Valuation Payroll) a. Total Required Contributions 28.10% 28.27% b. Expected Member Contributions 8.03% 8.06% c. Expected State Contributions 4.68% 4.64% d. Estimated City Contributions 15.39% 15.57% 1

8 Summary of Valuation Results - Allocated Table I Police Officers Firefighters 1. Number of Members a. Active Members b. Deferred Vested Members 14 5 c. Retired Members: i. Non-disabled ii. Disabled 17 8 iii. Beneficiaries iv. Sub-total d. Total Members Total Annual Compensation $ 14,912,843 $ 8,913, Valuation Payroll $ 15,360,228 $ 9,180, Total Retired Member Benefits $ 8,169,319 $ 5,906, Annual Cost a. Present Value of Future Benefits $ 160,181,725 $ 115,420,066 b. Present Value of Future Normal Cost 19,779,311 12,756,461 City Portion 10,203,740 6,222,067 Member Portion 9,575,571 6,534,394 c. Actuarial Accrued Liability (AAL) 140,402, ,663,605 d. Actuarial Value of Assets (122,743,633) (85,154,436) e. Unfunded AAL (UAAL) $ 17,658,781 $ 17,509,169 f. Normal Cost $ 2,308,626 $ 1,603,757 g. Payment to Amortize Unfunded Liab/(Surpl) 1,322,432 1,281,058 h. Administrative Expenses 237, ,184 i. Total $ 3,868,106 $ 3,069,999 j. Expected Member Contributions $ 1,152,017 $ 826,268 k. Expected State Contributions 558, ,919 l. Estimated City Contributions 2,157,728 1,662,812 m. Total $ 3,868,106 $ 3,069, Annual Cost (as a % of Valuation Payroll) a. Total Required Contributions 25.18% 33.44% b. Expected Member Contributions 7.50% 9.00% c. Expected State Contributions 3.64% 6.33% d. Estimated City Contributions 14.04% 18.11% 2

9 Valuation Results With and Without Pension Bond Table Ia With Pension Bond Without Pension Bond October 1, 2014 October 1, Number of Members a. Active Members b. Deferred Vested Members c. Retired Members: i. Non-disabled ii. Disabled iii. Beneficiaries iv. Sub-total d. Total Members Total Annual Compensation $ 23,826,193 $ 23,826, Valuation Payroll $ 24,540,979 $ 24,540, Total Retired Member Benefits $ 14,075,369 $ 14,075, Annual Cost a. Present Value of Future Benefits $ 275,601,791 $ 275,601,791 b. Present Value of Future Normal Cost 32,535,772 32,535,772 City Portion 16,425,807 16,425,807 Member Portion 16,109,965 16,109,965 c. Actuarial Accrued Liability (AAL) 243,066, ,066,019 d. Actuarial Value of Assets (207,898,069) (96,932,619) e. Unfunded AAL (UAAL) $ 35,167,950 $ 146,133,400 f. Normal Cost $ 3,912,383 $ 3,912,383 g. Payment to Amortize Unfunded Liab/(Surpl) 2,603,490 12,999,551 h. Administrative Expenses 422, ,232 i. Total $ 6,938,105 $ 17,334,166 j. Expected Member Contributions $ 1,978,285 $ 1,978,285 k. Expected State Contributions 1,139,280 1,139,280 l. Estimated City Contributions 3,820,540 14,216,601 m. Total $ 6,938,105 $ 17,334, Annual Cost (as a % of Valuation Payroll) a. Total Required Contributions 28.27% 70.63% b. Expected Member Contributions 8.06% 8.06% c. Expected State Contributions 4.64% 4.64% d. Estimated City Contributions 15.57% 57.93% 3

10 Gain and Loss Analysis Table II Police Officers Firefighters 1. Actual Unfunded Accrued Liability as of October 1, 2013 $ 19,799,996 $ 16,474, Expected Change in Unfunded Liability During the 2013/2014 Plan Year a. Due to Employer Normal Cost and Administrative Expenses* $ 1,372,705 $ 743,097 b. Due to Interest on the Unfunded Liability 1,663,200 1,383,872 c. City and State Contributions** (2,869,773) (2,124,527) d. Due to Interest on City and State Contributions (120,530) (89,230) e. Total Expected Change $ 45,602 $ (86,788) 3. Expected Unfunded Accrued Liability as of October 1, 2014 $ 19,845,598 $ 16,387, Change in Unfunded Liability During the 2013/2014 Plan Year Due to: a. Method Changes $ 0 $ 0 b. Assumption Changes 1,506,307 1,018,003 c. Plan Amendments 0 0 d. Experience (Gain)/Loss (3,693,124) 103,288 e. Total Change $ (2,186,817) $ 1,121, Actual Unfunded Accrued Liability as of October 1, 2014 $ 17,658,781 $ 17,509, Development of Outstanding Amortization Obligations as of October 1, 2014 a. Expected Outstanding Obligations as of October 1, 2014 $ 20,001,523 $ 16,652,373 b. Assumption Changes 1,506,307 1,018,003 c. Plan Amendments 0 0 d. Experience (Gain)/Loss (3,693,124) 103,288 e. (Gain)/Loss due to Contribution Timing (155,925) (264,495) f. Total Outstanding Obligations as of October 1, 2014 $ 17,658,781 $ 17,509, Items Affecting Calculation of Accrued Liability a. Plan provisions reflected in the accrued liability (see Table XI on page 38) b. Plan amendments reflected in item 4.c. above (see Table XIa on page 42) c. Actuarial assumptions and methods used to determine accrued liability (see Table X on page 33) d. Changes in actuarial assumptions and methods reflected in items 4.a. and 4.b. above (see Table Xa on page 36) * As requested by the State Actuary, the normal cost represents the employer portion only, net of actual employee contributions and includes actual administrative expenses. ** City and State Contributions of $5,115,015 less State Contributions reserve of $120,715 for future benefit improvements. (see Table Vc on page 20) 4

11 Gain and Loss Analysis Table II (continued) Police Officers Firefighters Total 8. Expected Unfunded Accrued Liability Contribution Rate as of 9.29% 13.99% 10.95% October 1, Net Actuarial (Gains)/Losses During the 2013/2014 Plan Year a. Due to Salary/Service/Data (0.76%) 1.15% (0.05%) b. Due to Investment Performance (0.67%) (0.18%) (0.49%) c. Due to Turnover/Mortality 0.17% 0.47% 0.28% d. Due to New Retirements (0.42%) (1.39%) (0.78%) e. Due to Difference and Timing in Contributions (0.07%) (0.20%) (0.12%) f. Due to New Members 0.05% 0.03% 0.04% g. Total (1.70%) (0.12%) (1.12%) 10. Change in Unfunded Accrued Liability Rate During the 2013/2014 Plan Year Due to: a. Method changes 0.00% 0.00% 0.00% b. Assumption changes 0.67% 0.76% 0.70% c. Plan amendments 0.00% 0.00% 0.00% d. Total Change 0.67% 0.76% 0.70% 11. Other Effects 0.35% (0.68%) 0.08% 12. Unfunded Accrued Liability Contribution Rate as of October 1, % 13.95% 10.61% 13. Comments on Change in Unfunded Accrued Liability Contribution Rate: Salary/Service/Data: For Police, average salary decreases of 1.17% compared to expected increases of 5.07%. For Firefighters, average salary increases of 10.12% compared to expected increases of 4.90%. Also adjustments in the reported data. Investment Performance: 9.31% actual vs. 8.40% expected return on the actuarial value of assets. Turnover/Mortality: Net effect on the valuation liabilities of actual deaths, terminations of employment and disabilities different from what was anticipated in the aggregate by the assumptions related to those events. New retirements: Net effect on the valuation liabilities of retirements (including DROP) and refund of employee contributions. New members: Liability created from new members entering the plan. Due to Differences and Timing of Contributions: Due to the one year lag of when the required contribution is determined and when it is deposited into the fund. Assumption changes: Please refer to Table Xa for a summary of changes. Plan amendments: None. Other effects: Overall payroll increases and adjustments in the amortization of the unfunded actuarial accrued liability. 5

12 Present Value of Accrued Benefits Table III 1. Actuarial Present Value of Accrued Benefits a. Vested Accrued Benefits: i. Inactive members and October 1, 2013 October 1, 2014 beneficiaries $ 160,401,810 $ 170,788,292 ii. Active members 46,469,155 46,701,187 iii. Sub-total $ 206,870,965 $ 217,489,479 b. Non-vested Accrued Benefits 9,339,868 9,620,824 c. Total Benefits $ 216,210,833 $ 227,110,303 d. Market Value of Assets $ 201,461,721 $ 216,089,584 e. Percentage Funded 93.2% 95.1% f. Interest Rate 8.40% 8.30% 2. Statement of Changes in Total Actuarial Present Value of All Accrued Benefits a. Actuarial Present Value as of October 1, 2013 $ 216,210,833 b. Increase (Decrease) During 2013/2014 Plan Year Attributable to: i. Interest $ 17,628,972 ii. Benefits accumulated 3,667,555 iii. Benefits paid (12,684,235) iv. Plan amendments 0 v. Changes in actuarial assumptions or methods 2,287,178 vi. Net increase (decrease) $ 10,899,470 c. Actuarial Present Value as of October 1, 2014 $ 227,110, Items Affecting Calculation of Actuarial Present Value of Accrued Benefits a. Plan provisions reflected in the accrued benefits (see Table XI page 38) b. Plan amendments reflected in item 2.b.iv. above (see Table XIa on page 42) c. Actuarial assumptions and methods used to determine present values (see Table X on page 33) d. Changes in actuarial assumptions and methods reflected in item 2.b.v. above (see Table Xa on page 36) 6

13 Information Required by Florida Statute (Chap. 112) Table IV October 1, 2014 Police Officers Firefighters Total 1. Participant Data a. Active members: i. Number ii. Total annual payroll $ 14,912,843 $ 8,913,350 $ 23,826,193 iii. Valuation annual payroll 15,360,228 9,180,751 24,540,979 b. Retired members and beneficiaries: i. Number ii. Total annualized benefit $ 7,898,347 $ 5,753,455 $ 13,651,802 c. Disabled members receiving benefits: i. Number ii. Total annualized benefit $ 270,972 $ 152,595 $ 423,567 d. Terminated vested members: i. Number ii. Total annualized benefit $ 154,255 $ 67,793 $ 222, Assets a. Actuarial Value of Assets $ 122,743,633 $ 85,154,436 $ 207,898,069 b. Market Value of Assets 127,014,857 89,074, ,089, Liabilities a. Present value of all future expected benefit payments: i. Active members: Retirement benefits $ 52,972,461 $ 43,836,467 $ 96,808,928 Vesting benefits 1,635, ,873 2,273,771 Disability benefits 2,875,955 1,463,264 4,339,219 Death benefits 572, , ,508 Return of member contributions 386, , ,073 Sub-total $ 58,443,212 $ 46,370,287 $ 104,813,499 ii. Terminated vested members $ 1,065,236 $ 342,073 $ 1,407,309 iii. Retired members and beneficiaries: Retired (other than disabled) and beneficiaries $ 98,429,659 $ 67,305,659 $ 165,735,318 Disabled members 2,243,618 1,402,047 3,645,665 Sub-total $ 100,673,277 $ 68,707,706 $ 169,380,983 iv. Total present value of all prospective benefits $ 160,181,725 $ 115,420,066 $ 275,601,791 7

14 Information Required by Florida Statute (Chap. 112) Table IV (continued) October 1, 2014 Police Officers Firefighters Total b. Liabilities due and unpaid $ 0 $ 0 $ 0 c. Actuarial accrued liability $ 140,402,414 $ 102,663,605 $ 243,066,019 d. Unfunded actuarial accrued liability $ 17,658,781 $ 17,509,169 $ 35,167, Actuarial Present Value of Accrued Benefits $ 130,993,577 $ 96,116,726 $ 227,110,303 (refer totable IV for further details) 5. Pension Cost a. Normal cost Retirement benefits $ 1,839,016 $ 1,393,238 $ 3,232,254 Vesting benefits 113,501 50, ,375 Disability benefits 204, , ,854 Death benefits 25,839 17,265 43,104 Return of member contributions 126,114 27, ,796 Total normal cost $ 2,308,626 $ 1,603,757 $ 3,912,383 As a % of valuation payroll 15.03% 17.47% 15.94% Administrative expenses 237, , ,232 Total normal cost including admin expenses $ 2,545,674 $ 1,788,941 $ 4,334,615 As a % of valuation payroll 16.57% 19.49% 17.66% b. Payment to amortize unfunded liability $ 1,322,432 $ 1,281,058 $ 2,603,490 As a % of valuation payroll 8.61% 13.95% 10.61% c. Expected State Contribution $ 558,361 $ 580,919 $ 1,139,280 As a % of valuation payroll 3.64% 6.33% 4.64% d. Amount to be contributed by members $ 1,152,017 $ 826,268 $ 1,978,285 As a % of valuation payroll 7.50% 9.00% 8.06% e. Expected City Contribution: $ 2,157,728 $ 1,662,812 $ 3,820,540 As a % of valuation payroll 14.04% 18.11% 15.57% 6. Past Contributions (for year ending September 30, 2014) a. Required Employer and State contribution N/A N/A $ 4,880,970 b. Actual contribution made by: i. Employer $ 2,311,412 $ 1,543,608 $ 3,855,020 ii. State 558, ,919 1,139,280 iii. Members 1,162, ,336 2,067,685 8

15 Information Required by Florida Statute (Chap. 112) Table IV (continued) October 1, 2014 Police Officers Firefighters Total 7. Net actuarial (gain)/loss $ (3,849,049) $ (161,207) $ (4,010,256) 8. Other disclosures a. Present value of active members': i. Future salaries: ii. at attained age $ 127,674,281 $ 72,604,373 $ 200,278,654 at entry age n/a n/a n/a Future contributions: at attained age $ 9,575,571 $ 6,534,394 $ 16,109,965 at entry age n/a n/a n/a b. Present value of future contributions from City $ 10,203,740 $ 6,222,067 $ 16,425,807 and State c. Present value of future expected benefit payments n/a n/a n/a for active members at entry age d. Amount of active members' accumulated $ 9,225,932 $ 5,894,093 $ 15,120,025 contributions 9

16 Information Required by Florida Statute (Chap. 112) Table IV (continued) October 1, 2013 Police Officers Firefighters Total 9. Participant Data a. Active members: i. Number ii. Total annual payroll $ 15,291,395 $ 8,377,085 $ 23,668,480 iii. Valuation annual payroll 15,740,962 8,623,371 24,364,333 b. Retired members and beneficiaries: i. Number ii. Total annualized benefit $ 7,674,163 $ 5,261,448 $ 12,935,611 c. Disabled members receiving benefits: i. Number ii. Total annualized benefit $ 270,972 $ 152,595 $ 423,567 d. Terminated vested members: i. Number ii. Total annualized benefit $ 169,178 $ 47,341 $ 216, Assets a. Actuarial Value of Assets $ 114,686,875 $ 80,045,800 $ 194,732,675 b. Market Value of Assets 118,571,330 82,890, ,461, Liabilities a. Present value of all future expected benefit payments: i. Active members: Retirement benefits $ 51,249,609 $ 42,854,289 $ 94,103,898 Vesting benefits 1,650, ,779 2,206,549 Disability benefits 2,873,160 1,327,719 4,200,879 Death benefits 565, , ,293 Return of member contributions 433, , ,210 Sub-total $ 56,772,739 $ 45,135,090 $ 101,907,829 ii. Terminated vested members $ 976,128 $ 285,202 $ 1,261,330 iii. Retired members and beneficiaries: Retired (other than disabled) and beneficiaries $ 94,611,027 $ 60,876,567 $ 155,487,594 Disabled members 2,251,553 1,401,333 3,652,886 Sub-total $ 96,862,580 $ 62,277,900 $ 159,140,480 iv. Total present value of all prospective benefits $ 154,611,447 $ 107,698,192 $ 262,309,639 10

17 Information Required by Florida Statute (Chap. 112) Table IV (continued) October 1, 2013 Police Officers Firefighters Total b. Liabilities due and unpaid $ 0 $ 0 $ 0 c. Actuarial accrued liability $ 134,486,871 $ 96,520,466 $ 231,007,337 d. Unfunded actuarial accrued liability $ 19,799,996 $ 16,474,666 $ 36,274, Actuarial Present Value of Accrued Benefits $ 124,978,358 $ 91,232,475 $ 216,210,833 (refer totable IV for further details) 13. Pension Cost a. Normal cost Retirement benefits $ 1,837,002 $ 1,267,927 $ 3,104,929 Vesting benefits 111,884 48, ,921 Disability benefits 201, , ,193 Death benefits 25,677 15,783 41,460 Return of member contributions 121,715 26, ,752 Total normal cost $ 2,298,006 $ 1,463,249 $ 3,761,255 As a % of valuation payroll 14.60% 16.97% 15.44% Administrative expenses 239, , ,986 Total normal cost including admin expenses $ 2,537,521 $ 1,640,720 $ 4,178,241 As a % of valuation payroll 16.12% 19.03% 17.15% b. Payment to amortize unfunded liability $ 1,461,673 $ 1,206,164 $ 2,667,837 As a % of valuation payroll 9.29% 13.99% 10.95% c. Expected State Contribution $ 558,361 $ 580,919 $ 1,139,280 As a % of valuation payroll 3.55% 6.74% 4.68% d. Amount to be contributed by members $ 1,180,573 $ 776,103 $ 1,956,676 As a % of valuation payroll 7.50% 9.00% 8.03% e. Expected City Contribution $ 2,260,260 $ 1,489,862 $ 3,750,122 As a % of valuation payroll 14.36% 17.28% 15.39% 14. Past Contributions (for year ending September 30, 2013) a. Required Employer and State contribution N/A N/A $ 4,970,792 b. Actual contribution made by: i. Employer $ 2,427,554 $ 1,331,720 $ 3,759,274 ii. State 558, ,439 1,131,800 iii. Members 1,265, ,920 1,952,105 11

18 Information Required by Florida Statute (Chap. 112) Table IV (continued) October 1, 2013 Police Officers Firefighters Total 15. Net actuarial (gain)/loss $ (2,407,466) $ (640,844) $ (3,048,310) 16. Other disclosures a. Present value of active members': i. Future salaries: ii. at attained age $ 133,692,740 $ 64,458,282 $ 198,151,022 at entry age n/a n/a n/a Future contributions: at attained age $ 10,026,956 $ 5,644,175 $ 15,671,131 at entry age n/a n/a n/a b. Present value of future contributions from City $ 10,097,621 $ 5,533,551 $ 15,631,171 and State c. Present value of future expected benefit payments n/a n/a n/a for active members at entry age d. Amount of active members' accumulated $ 8,499,812 $ 5,917,320 $ 14,417,132 contributions 12

19 Projection of Benefit Payments Table IVa Fiscal Year Beginning Active Members Emerging Retirees Retired Members Total Retired Number of Active Members Number of Members Projected Benefits Number of Members Projected Benefits Number of Members Projected Benefits $ 785, $ 14,073, $ 14,859, ,734, ,129, ,864, ,053, ,170, ,224, ,823, ,232, ,056, ,460, ,272, ,733, ,851, ,335, ,186, ,405, ,320, ,725, ,975, ,373, ,348, ,788, ,377, ,166, ,582, ,399, ,981, ,241, ,397, ,638, ,597, ,365, ,962, ,324, ,330, ,655, ,606, ,258, ,865, ,186, ,164, ,350,967 13

20 Unfunded Liability Bases - Police Officers Table IVb Outstanding 2013/2014 Outstanding 2014/2015 Years Original Balance as of Amortization Balance as of Amortization Remaining Description Amount October 1, 2013 Payment October 1, 2014 Payment October 1, /1/2003 Assumption Change $ 1,332,979 $ 1,566,910 $ 132,787 $ 1,565,744 $ 135, /1/2003 Actuarial Losses 860,132 1,011,079 85,684 1,010,326 87, /1/2004 Assumption Change (915,721) (1,064,621) (87,780) (1,066,269) (89,218) /1/2004 Actuarial Losses 544, ,124 52, ,104 53, /1/2005 Actuarial Gains (174,361) (200,071) (16,083) (200,794) (16,338) /1/2006 Actuarial Gains (876,763) (993,367) (77,998) (998,812) (79,198) /1/2007 Assumption Change (194,267) (216,950) (16,667) (218,507) (16,915) /1/2007 Plan Amendment 1,583,252 1,768, ,832 1,780, , /1/2007 Actuarial Gains (3,204,978) (3,579,183) (274,965) (3,604,869) (279,062) /1/2008 Actuarial Losses 1,873,051 2,058, ,963 2,076, , /1/2009 Assumption Change 928,532 1,002,765 74,075 1,012,922 75, /1/2009 Actuarial Losses 7,039,128 7,601, ,557 7,678, , /1/2010 Actuarial Losses 4,121,836 4,368, ,056 4,418, , /1/2010 Assumption Change 222, ,127 17, ,824 17, /1/2011 Actuarial Losses 7,740,489 8,040, ,059 8,141, , /1/2011 Assumption Change (72,207) (75,005) (5,355) (75,950) (5,425) /1/2012 Actuarial Losses 1,046,059 1,063,809 74,793 1,078,376 75, /1/2012 Plan Amendment (2,427,507) (2,468,699) (173,566) (2,502,504) (175,762) /1/2013 Actuarial Gains (2,407,466) (2,407,466) (166,844) (2,442,849) (168,884) /1/2013 Assumption Change 1,454,276 1,454, ,785 1,475, , /1/2014 Actuarial Gains (3,849,049) (3,849,049) (262,195) /1/2014 Assumption Change 1,506,307 1,506, , Total $ 16,131,099 $ 19,799,996 $ 1,461,673 $ 17,658,781 $ 1,322,432 Primary Drivers of Unfunded Liability Bases 21. Return on actuarial value of assets of 9.31% (vs. 8.40% assumed) and average salary decreases of 1.17% (vs. increases of 5.07% assumed). 22. Decrease in valuation rate from 8.40% to 8.30%. Note: Outstanding balance as of October 1, 2002 eliminated with proceeds of the pension obligation bond contribution of $47,728,

21 Unfunded Liability Bases - Firefighters Table IVb Outstanding 2013/2014 Outstanding 2014/2015 Years Original Balance as of Amortization Balance as of Amortization Remaining Description Amount October 1, 2013 Payment October 1, 2014 Payment October 1, /1/2003 Assumption Change $ 936,044 $ 1,100,316 $ 93,246 $ 1,099,496 $ 94, /1/2003 Actuarial Losses 604, ,001 60, ,472 61, /1/2004 Assumption Change (643,038) (747,597) (61,641) (748,754) (62,651) /1/2004 Actuarial Losses 382, ,592 36, ,281 37, /1/2005 Actuarial Gains (122,439) (140,494) (11,294) (141,001) (11,474) /1/2006 Actuarial Gains (615,680) (697,563) (54,771) (701,387) (55,614) /1/2007 Assumption Change (136,418) (152,346) (11,704) (153,439) (11,878) /1/2007 Plan Amendment 1,111,791 1,241,601 95,384 1,250,511 96, /1/2007 Actuarial Gains (2,250,598) (2,513,372) (193,086) (2,531,409) (195,963) /1/2008 Actuarial Losses 1,315,294 1,445, ,818 1,458, , /1/2009 Assumption Change 652, ,161 52, ,294 52, /1/2009 Actuarial Losses 4,943,014 5,338, ,336 5,392, , /1/2010 Actuarial Losses 2,894,435 3,067, ,643 3,102, , /1/2010 Assumption Change 156, ,813 12, ,706 12, /1/2011 Actuarial Losses 5,435,523 5,646, ,116 5,717, , /1/2011 Assumption Change (50,705) (52,670) (3,761) (53,333) (3,810) /1/2012 Actuarial Losses 734, ,027 52, ,256 53, /1/2012 Plan Amendment (145,206) (147,670) (10,383) (149,691) (10,513) /1/2013 Actuarial Gains (640,844) (640,844) (44,412) (650,263) (44,956) /1/2013 Assumption Change 956, ,314 66, ,369 67, /1/2014 Actuarial Gains (161,207) (161,207) (10,981) /1/2014 Assumption Change 1,018,003 1,018,003 69, Total $ 16,373,746 $ 16,474,665 $ 1,206,164 $ 17,509,169 $ 1,281,058 Primary Drivers of Unfunded Liability Bases 21. Return on actuarial value of assets of 9.31% (vs. 8.40% assumed) partially offset by average salary increases of 10.12% (vs. increases of 4.90% assumed). 22. Decrease in valuation rate from 8.40% to 8.30%. Projected Unfunded Liability Date Police Firefighters Total October 1, ,658,781 17,509,169 35,167,950 October 1, ,802,029 17,681,370 35,483,399 October 1, ,917,496 17,829,434 35,746,930 October 1, Note: Outstanding balance as of October 1, 2002 eliminated with proceeds of the pension obligation bond contribution of $47,728,

22 Assets Table V October 1, 2013 October 1, Market Value of Assets* a. Cash and cash equivalents (1%) $ 3,144,521 $ 2,049,026 b. U.S. government bonds & notes (1%) 2,192,006 1,746,177 c. Corporate bonds (4%) 8,843,116 9,509,753 d. Equities (71%) 148,561, ,625,022 e. Insurance contracts (0%) 0 0 f. Real Estate (6%) 11,861,734 13,228,783 g. Mortgages/loans (1%) 902,662 1,306,492 h. Other assets (16%) 25,771,978 34,401,309 i. Accrued income receivable (0%) 190, ,168 j. Contributions receivable (0%) 0 0 k. Other receivables (0%) 83, ,119 l. Benefits payable (0%) 0 0 m. Other payables (0%) (90,528) (247,265) n. Other adjustments (0%) 0 0 o. Market Value of Assets $ 201,461,721 $ 216,089,584 * The percentages in parentheses indicate the proportion of assets committed to each type of investment as of October 1,

23 Asset Reconciliation - Plan Table Va Year Ending September 30, 2013 September 30, Market Value of Assets as of the beginning of the year $ 174,857,918 $ 201,461, Adjustments Due to: a. Misclassification of DROP accounts $ 0 $ 0 3. Increases Due to: a. Contributions: i. Employer $ 3,759,274 $ 3,855,020 ii. Members 1,952,105 2,067,685 iii. State 1,170,024 1,259,995 iv. Total $ 6,881,403 $ 7,182,700 b. Investment income (interest and dividends) 2,664,147 2,465,205 c. Realized and unrealized gains/(losses) 29,719,151 19,450,866 d. Inclusion of DROP account 0 0 e. Total increases $ 39,264,701 $ 29,098, Decreases Due to: a. Benefit payments, including DROP payments $ (10,846,174) $ (12,451,263) b. Refund of member contributions (338,003) (232,972) c. Investment expenses (1,059,735) (1,364,441) d. Administrative expenses (416,986) (422,232) e. Total decreases $ (12,660,898) $ (14,470,908) 5. Market Value of Assets as of the end of the year $ 201,461,721 $ 216,089,584 17

24 Asset Reconciliation - Allocated Table Va Police Officers Firefighters Total 1. Market Value of Assets as of the beginning of the year $ 118,571,330 $ 82,890,391 $ 201,461, Adjustments Due to: a. Misclassification of DROP accounts $ 0 $ 0 $ 0 3. Increases Due to: a. Contributions: i. Employer $ 2,311,412 $ 1,543,608 $ 3,855,020 ii. Members 1,162, ,336 2,067,685 iii. State 643, ,730 1,259,995 iv. Total $ 4,117,026 $ 3,065,674 $ 7,182,700 b. Allocated investment return (net of investment expenses) 12,087,608 8,464,022 20,551,630 c. Total increases $ 16,204,634 $ 11,529,696 $ 27,734, Decreases Due to: a. Benefit payments, including DROP payments $ (7,330,407) $ (5,120,856) $ (12,451,263) b. Refund of member contributions (193,652) (39,320) (232,972) c. Administrative expenses (237,048) (185,184) (422,232) d. Total decreases $ (7,761,107) $ (5,345,360) $ (13,106,467) 5. Market Value of Assets as of the end of the year $ 127,014,857 $ 89,074,727 $ 216,089,584 18

25 Reconciliation of DROP Accounts Table Vb Year Ending September 30, 2013 September 30, Market Value of Assets as of the beginning of the year $ 3,027,982 $ 5,120, Adjustment Due to: a. Misclassification of DROP accounts 0 (188,494) 3. Increases Due to: a. Contributions to DROP Accounts $ 2,453,593 $ 3,005,876 b. Investment Return 42, ,591 c. Total increases $ 2,496,323 $ 3,140, Decreases Due to: a. Pension Payments $ (403,431) $ (1,527,272) b. Expense Charges 0 0 c. Total decreases $ (403,431) $ (1,527,272) 5. Market Value of Assets as of the end of the year $ 5,120,874 $ 6,545,575 Allocation of DROP Accounts as of September 30, 2014 Police Officers Firefighters 1. Market Value of Assets as of the beginning of the year $ 3,281,204 $ 1,839, Adjustment Due to: a. Misclassification of DROP accounts 0 (188,494) 3. Increases Due to: a. Contributions to DROP Accounts $ 1,708,750 $ 1,297,126 b. Investment Return 80,214 54,377 c. Total increases $ 1,788,964 $ 1,351, Decreases Due to: a. Pension Payments $ (994,370) (532,902) b. DROP repayments 0 0 c. Expense Charges 0 0 d. Total decreases $ (994,370) $ (532,902) 5. Market Value of Assets as of the end of the year $ 4,075,798 $ 2,469,777 19

26 Use of State Premium Tax Contributions Table Vc Year Ending September 30, 2013 September 30, Accumulated balance at the beginning of the year $ 1,948,492 $ 1,986, State Contributions 1,170,024 1,259, One-time use for benefit improvements Amount to be used by the City (1,131,800) (1,139,280) 5. Increase in accumulated balance during the year 38, , Transfers to Supplemental Retirement Program 0 (1,172,915) 7. Accumulated balance at the end of the year $ 1,986,716 $ 934,516 Allocation of Accumulated Balances as of September 30, 2014 Police Officers Firefighters Total 1. Accumulated balance at the beginning of the year $ 1,088,011 $ 898,705 $ 1,986, State Contributions 643, ,730 1,259, One-time use for benefit improvements Amount to be used by the City (558,361) (580,919) (1,139,280) 5. Increase in accumulated balance during the year 84,904 35, , Transfers to Supplemental Retirement Program (1,172,915) 0 (1,172,915) 7. Accumulated balance at the end of the year $ 0 $ 934,516 $ 934,516 20

27 Actuarial Value of Assets Table Vd Police Officers Firefighters Total 1. Actuarial Value of Assets on October 1, 2013 $ 114,686,875 $ 80,045,800 $ 194,732, Accumulated Balance of State Premium Tax 1,088, ,705 1,986, Actuarial Value of Assets on October 1, 2013 ( ) $ 115,774,886 $ 80,944,505 $ 196,719, /2014 Net Cash Flow a. Contributions made during the plan year $ 3,473,761 $ 2,448,944 $ 5,922,705 b. Disbursements (Net of investment expense) (7,761,107) (5,345,360) (13,106,467) c. Net Cash Flow during the plan year (4.a. + 4.b.) $ (4,287,346) $ (2,896,416) $ (7,183,762) d. Contributions receivable 643, ,730 1,259,995 e. Net Cash Flow (4.c. + 4.d.) $ (3,644,081) $ (2,279,686) $ (5,923,767) 5. Inclusion of DROP Account Balances $ 0 $ 0 $ 0 6. Expected Investment Return ([ 3. x 8.40%] + [4.c. x 4.20%]) $ 9,545,022 $ 6,677,689 $ 16,222, Expected Actuarial Value of Assets on October 1, 2014 ( e ) $ 121,675,827 $ 85,342,508 $ 207,018, Market Value of Assets on October 1, 2014 $ 127,014,857 $ 89,074,727 $ 216,089, Excess of Market Value over Expected Actuarial Value ( ) $ 5,339,030 $ 3,732,219 $ 9,071, % Adjustment towards Market (.20 x 9.) $ 1,067,806 $ 746,444 $ 1,814, Actuarial Value of Assets Prior to the Application of the Asset Corridor ( ) $ 122,743,633 $ 86,088,952 $ 208,832, Asset Corridor a. 80% of Market Value $ 101,611,886 $ 71,259,782 $ 172,871,668 b. 120% of Market Value 152,417, ,889, ,307, Actuarial Value of Assets Prior to Reduction of State Premium Tax (11. not less than 12.a. and not greater than 12.b.) $ 122,743,633 $ 86,088,952 $ 208,832, Accumulated Balance of State Premium Tax - 934, , Actuarial Value of Assets on October 1, 2014 ( ) $ 122,743,633 $ 85,154,436 $ 207,898,069 21

28 $ Millions Return Historical Asset Information Table VI Historical Market Value (Assets & Returns) % % 10% 0% -10% -20% Plan Year (Assets as of October 1) -30% Market Value Actuarial Value Market Return Actuarial Return Plan Market Actuarial City, State, and Market Actuarial Year Value as of Value as of Benefit Administrative Member Value Value Ending* October 1 October 1 Payments** Expenses Contributions Return Return 2004 $ 141,119,629 $ 133,518, ,173, ,236,229 $ 7,422,418 $ 209,880 $ 4,209, % 10.73% ,757, ,509,178 8,063, ,546 4,395, % 10.64% ,396, ,434,939 8,780, ,478 4,371, % 11.49% ,940, ,300,297 9,172, ,459 4,983, % 6.22% ,510, ,013,284 9,994, ,278 5,234, % 2.80% ,002, ,925,241 10,431, ,516 4,758, % 5.18% ,061, ,567,199 11,231, ,122 5,383, % 2.19% ,857, ,847,715 12,491, ,578 6,025, % 7.04% ,461, ,732,675 11,184, ,986 6,881, % 9.12% ,089, ,898,069 12,684, ,232 7,182, % 9.31% * Asset values from plan years 2012 and later reflect the inclusion of DROP account balances. ** Includes contributions refunded and payments to DROP accounts. 22

29 Revenues by Source and Expenses by Type Table VIa REVENUES Fiscal City State Member Total Net Invest. Year Contrib. Contrib. Contrib. Contrib. Income Total 2005 $ 1,476,918 $ 1,085,890 $ 1,646,805 $ 4,209,613 $ 24,496,929 $ 28,706, ,555,941 1,172,293 1,667,085 4,395,319 18,374,943 22,770, ,401,953 1,253,399 1,716,580 4,371,932 24,311,850 28,683, ,415,225 1,295,411 2,273,181 4,983,817 (27,674,649) (22,690,832) ,322,191 1,254,267 2,658,334 5,234,792 (9,400,067) (4,165,275) ,606,360 1,180,604 1,971,551 4,758,515 15,402,830 20,161, ,299,444 1,182,142 1,902,011 5,383,597 (2,777,600) 2,605, ,961,071 1,177,922 1,886,936 6,025,929 31,647,370 37,673,299 * ,759,274 1,170,024 1,952,105 6,881,403 31,323,563 38,204, ,855,020 1,259,995 2,067,685 7,182,700 20,551,630 27,734,330 EXPENSES Fiscal Benefits Member Administrative Year Paid Refunds Expenses Total 2005 $ 7,255,975 $ 166,443 $ 209,880 $ 7,632, ,926, , ,546 8,262, ,534, , ,478 9,045, ,926, , ,459 9,457, ,839, , ,278 10,264, ,270, , ,516 10,736, ,096, , ,122 11,547, ,230, , ,578 12,905, ,846, , ,986 11,601, ,451, , ,232 13,106,467 * Value excludes the DROP account balances that were added to the assets beginning in

30 $ Millions Contributions vs. Payments Table VII Historical Contributions Versus Benefit Payments & Expenses* Plan Year Contributions Benefit Payments & Expenses * Please reference Table VIa on page 23 for the historical benefit payments, expenses, and contributions. 24

31 Breakdown by Category Summary of Member Data Table VIII 850 Total Number of Members as of October % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Retired Deferred Vested Active October 1, 2013 October 1, 2014 Police Officers Firefighters Police Officers Firefighters 1. Active Members Inactive Members not in Receipt Inactive Members in Receipt a. Retirees (excluding DROP) b. DROP Retirees c. Disabled d. Beneficiaries e. Sub-total Total Members

32 Active Data Table VIIIa Historical Average Age and Service Police Officers Firefighters Total Average Average Average Average Average Average Date Service Age Service Age Service Age 10/01/2006 n/a n/a n/a n/a /01/2007 n/a n/a n/a n/a /01/2008 n/a n/a n/a n/a /01/2009 n/a n/a n/a n/a /01/2010 n/a n/a n/a n/a /01/2011 n/a n/a n/a n/a /01/ /01/ /01/ Historical Salary Rate Police Officers Firefighters Total Payroll for Average Payroll for Average Payroll for Average Date Fiscal Year Salary Fiscal Year Salary Fiscal Year Salary 10/01/2004 n/a n/a n/a n/a 20,229,474 51,871 10/01/2005 n/a n/a n/a n/a 21,307,037 54,633 10/01/2006 n/a n/a n/a n/a 21,579,538 55,190 10/01/2007 n/a n/a n/a n/a 22,739,418 57,423 10/01/2008 n/a n/a n/a n/a 24,045,292 59,666 10/01/2009 n/a n/a n/a n/a 25,211,502 60,027 10/01/2010 n/a n/a n/a n/a 24,342,597 61,162 10/01/2011 n/a n/a n/a n/a 25,133,953 60,857 10/01/ ,202,763 58,248 8,751,214 61,628 23,953,977 59,439 10/01/ ,291,395 60,202 8,377,085 62,052 23,668,480 60,844 10/01/ ,912,843 58,253 8,913,350 63,667 23,826,193 60,167 Historical Salary Increase Assumed Actual Assumed Actual Assumed Actual Salary Salary Salary Salary Salary Salary Date Increase Increase Increase Increase Increase Increase 10/01/2004 n/a n/a n/a n/a 4.85% 10.17% 10/01/2005 n/a n/a n/a n/a 4.95% 8.75% 10/01/2006 n/a n/a n/a n/a 4.95% 5.84% 10/01/2007 n/a n/a n/a n/a 5.14% 6.95% 10/01/2008 n/a n/a n/a n/a 5.06% 9.23% 10/01/2009 n/a n/a n/a n/a 4.88% 5.36% 10/01/2010 n/a n/a n/a n/a 4.91% 8.40% 10/01/2011 n/a n/a n/a n/a 0.00% 1.97% 10/01/ % 1.73% 4.92% 1.70% 5.01% 1.71% 10/01/ % 1.23% 4.94% 1.55% 5.02% 1.35% 10/01/ % -1.17% 4.90% 10.12% 5.01% 2.90% ¹ As of October 1, 2014, the 10-year average of historical payroll growth was 1.64%. 26

33 Age at Retirement Retiree Data Table VIIIb Number of Retirees Less than Over 85 Retirees Beneficiaries Disabled Retirees Police Officers Firefighters Total Average Average Average Avg. Monthly Avg. Monthly Avg. Monthly Age Benefit Age Benefit Age Benefit Non-Disabled Retirees 61.8 $ 3, $ 3, $ 3, Disabled Retirees , , , Beneficiaries , , , All Retired Members , , ,

34 Data Reconciliation Table VIIIc Non-active, Active Non-retired Retired Total 1. Number of members as of October 1, Change in status during the plan year: a. Actives who became inactive (3) 3 b. Actives who retired (10) 10 c. Inactives who became active d. Inactives who retired e. Retirees who became active 3. No longer members due to: a. Death (1) (7) (8) b. Permanent break-in-service (10) (10) c. Receipt of lump sum payment (1) (1) d. Expiration of certain period e. Included in error last year 4. New member due to: a. Initial membership b. Death of another member 5 5 c. Excluded in error last year d. Reinstatement Number of members as of October 1,

35 Age-Service-Salary Table Table VIIId (All Active Members) Attained Completed Years of Service Age Under 1 1 to 4 5 to 9 10 to to to to to to & up Total Under Avg. Pay 36,329 45,836 38, to Avg. Pay 40,480 49,324 51,797 48, to Avg. Pay 34,415 49,874 55,276 63,763 53, to Avg. Pay 31,467 49,829 51,187 64,146 72,877 57, to Avg. Pay 39,544 50,735 61,659 69,577 76,966 62, to Avg. Pay 48,955 53,823 59,757 70,193 86,625 91,331 76,257 74, to Avg. Pay 38,972 52,658 62,298 72,103 96, ,130 ##### 78, to Avg. Pay 60,831 81,694 93,041 79,442 79, to 64 Avg. Pay 65 to 69 Avg. Pay 70 & up Avg. Pay Total Avg. Pay 37,158 49,449 52,801 62,553 70,458 85,544 96,792 88,251 59,649 The average pay shown is the average of the annual rate of pay including any overtime pay and other special compensation. 29