Erin Rock, Secretary

Transcription

1 Erin Rock, Secretary

2 Florida Government Finance Officers Association 2017 Annual Conference Retirement System Updates June 26, 2017

3 Florida Retirement System and Retiree Health Insurance Subsidy Program

4 2017 LEGISLATIVE UPDATE SB 7022 Employer Contribution Rates New employer contribution rates are established for the fiscal year. Investment Plan In-Line-of-Duty (ILOD) Death Benefits Creates ILOD death benefits for all classes except the Special Risk Class. Benefit eligibility for surviving spouse or child retroactive to July 2002 (all classes) for benefit payments beginning July 2017 or after. Renewed Membership Re-opens renewed membership for defined contribution plan retirees who are initially enrolled on or after July 1, Default Membership and Election Period Effective January 1, 2018, default membership changes and the first election period is extended. 4

5 2017 Legislative Update SB 7022 FRS UNIFORM (BLENDED) EMPLOYER CONTRIBUTION RATES Membership Class Enacted Rates for Change from Normal Cost UAL Rate Total Normal Cost UAL Rate Total Regular Class 2.90% 3.30% 6.20% -0.07% 0.47% 0.40% Special Risk Class 11.86% 9.69% 21.55% 0.06% 0.64% 0.70% Special Risk Administrative Support Class Elected Officers Class 3.83% 29.08% 32.91% -0.04% 6.61% 6.57% Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys and Public Defenders 6.45% 42.69% 49.14% -0.18% 8.94% 8.76% Justices and Judges 11.67% 26.25% 34.98% -0.01% 2.95% 2.94% County Officers 8.54% 35.24% 43.78% -0.01% 3.04% 3.03% Senior Management Service Class 4.29% 16.70% 20.99% -0.09% 1.03% 0.94% Deferred Retirement Option Program 4.17% 7.43% 11.60% -0.06% 0.33% 0.27% Retiree Health Insurance Subsidy 1.66% 0.00% Administrative Assessment for FRS Investment Plan and Financial Guidance Program Administration 0.06% 0.00% 5

6 2017 Legislative Update SB 7022 Total contribution rates by plan code were provided to employers on June 15, 2017, in Information Release This information release includes rates for the FRS, closed existing retirement systems, reemployed retirees without renewed membership, and the non-integrated state-administered defined contributions plans for the State University System, the State Community College System, and state senior managers. Information Release may also be found under Information Releases on the Employers page of the Division of Retirement s website at: Information Release describing the legislative changes in this presentation was provided to employers on June 15, 2017, and is also available from the division s website as noted above. 6

7 2017 LEGISLATIVE UPDATE SB 7022 FRS INVESTMENT PLAN IN-LINE-OF- DUTY SURVIVOR BENEFITS The right of the surviving spouse or dependent children under age 18 supersede the beneficiary designation if someone else is named as the member s beneficiary. For members in classes other than the Special Risk Class, the surviving spouse is eligible for a lifetime monthly benefit or a benefit is payable on behalf of the dependent child(ren) until the youngest child reaches age 18. Benefit is 50 percent of the base salary at the time of the member s in-line-ofduty death. For member deaths occurring on or after July 1, 2017, the Investment Plan account balance must be surrendered to receive a monthly benefit under the Pension Plan. For members whose death occurred between July 1, 2002 and June 30, 2017, if the account balance is paid out to the surviving spouse or child, the monthly benefit is actuarially adjusted to account for the value of the payout. Benefits are payable beginning July 2017 if the application is received prior to that date and approved for member deaths that occurred prior to July 1, Otherwise, benefit is effective the month after the application is received and approved. 7

8 2017 Legislative Update SB 7022 RENEWED MEMBERSHIP RE-OPENED EFFECTIVE JULY 1, 2017, FOR SPECIFIED RETIREES Eligibility is limited to retirees of the FRS Investment Plan or the non-integrated the state-administered defined contribution plans for the State University System, the State Community College System, and state senior managers initially enrolled on or after July 1, Enrollment is automatic and is limited to the FRS Investment Plan or the option program for state universities or state community colleges depending upon position held at the time of enrollment. Once enrolled in the Investment Plan, the renewed member must remain in the Investment Plan unless employed in a mandatory SUSORP position with a university. All FRS membership classes are open for this tier of renewed membership. No credit allowed for any employment as a reemployed retiree without renewed membership between July 1, 2010 and June 30, Pension Plan retirees remain ineligible for renewed membership. Pension Plan remains closed to new renewed membership. Renewed members initially enrolled prior to July 1, 2010, are not covered by these provisions. 8

9 2017 Legislative Update SB 7022 DEFAULT MEMBERSHIP CHANGE AND EXTENSION OF FIRST ELECTION PERIOD Members initially enrolled, or going through their first complete election period, on or after January 1, 2018, will have eight calendar months instead of five calendar months after the month of hire to make an active election. If no active election for the Pension Plan or the Investment Plan is made then default membership is the Investment Plan for members except for members in Special Risk Class positions at the time of default. The default membership for members employed in a Special Risk Class position remains the Pension Plan. The second election continues to be available for members to elect the other retirement plan. 9

10 2017 Legislative Update Miscellaneous Public Records Exemption Reminder The Florida Legislature provides an exemption to public records requests for personal identifying information about members employed in specified positions in addition to information about the spouse or children of members in these positions. Except for the information about the current Tax Collector, the exemption applies to members who are currently employed or were formerly employed in the specified positions. Generally these exemptions are for records held by the employing agency which means they do not apply to the same information held by another agency like the Division of Retirement. Unless the Division of Retirement receives a request to extend these exemptions from the agency on behalf of its members or from the members directly, we do not have a basis to exempt information that would otherwise be included in the response to a public records request. There is a secure indicator available on the payroll file format for the employer to indicate the employee s information is exempt from public records requests. The agency is not required to specify the specific exemption to the division, this information should be on file with the employer. 10

11 GASB STATEMENTS 67 AND 68 FINANCIAL REPORTING Florida Retirement System (FRS) Pension Plan Section 401(a), Internal Revenue Code, qualified multi-employer defined benefit plan. Retirement benefits are prefunded and accrue on a pre-tax basis. Benefits governed by Chapter 121, Florida Statutes. Retiree Health Insurance Subsidy Program (HIS) Nonqualified plan funded on a pay-as-you-go basis, small residual fund balance to accommodate cash flow. Benefits governed by Section , Florida Statutes. HIS is considered a pension plan for GASB reporting purposes. 11

12 Membership by Employer Group ACTIVE FRS MEMBERSHIP DATA - 6/30/ % 3.2% 4.1% School Districts 311,219 members $12.2 billion payroll 49.4% State 100,932 members $4.0 billion payroll Counties 141,782 members $7.3 billion payroll 22.5% Cities & Special Districts 30,141 members $1.5 billion payroll Community Colleges 20,279 members $1.0 billion payroll State Universities 25,997 members $1.3 billion payroll 16.0% FY 2015/16 Total Members - 630,350 Payroll - $27,316,079,786 12

13 GASB 67/68 The most recent FRS and HIS measurement dates are as of June 30, The Pension CAFR as of June 30, 2016 is on posted to the Division of Retirement s website at under Publications/Annual Reports. Employers with a June 30 FY end and a 2016 reporting date have all their reporting information posted except for: The employer contributions after the measurement date (the 12 months of the fiscal year). This will be available after the close of the fiscal year. Separate sample guidance will be posted for the employers with a June 30 FY end. Tools will be provided to calculate employer contributions for pension funding. Employers with a September 30 FY end have all their information on the website based on the these most recent valuations. State of Florida Auditor General performed the audit for both FRS and HIS 2016 Valuations, 2016 Pension CAFR and related schedules. 13

14 GASB 67/68 The process to perform the valuations, CAFR, and reporting as of June 30, 2017, begins after the close of the fiscal year. June payroll reports are not due until the fifth working day of July. The payroll reports must be balanced and posted to the members records along with the related financial statement preparation. There is a schedule later in this presentation for providing information as of June 30, 2017: Employers with a September 30 FY end will have information available including the employer pension funding contributions for the three months after the plans June 30 measurement date and these employers reporting date. Separate sample guidance will be posted for the employers with a September 30 FY end. Tools will be available to calculate employer contributions for pension funding. The data will be complete for the employers with a June 30 FY end except for the 12 months of employer pension funding contributions for the period after the measurement date (June 30, 2017) and the reporting date (June 30, 2018). State of Florida Auditor General is engaged to perform the audit for both FRS and HIS 2017 Valuations, 2017 Pension CAFR and related schedules. 14

15 CONTRIBUTIONS TO THE PLANS FRS Pension Plan - Required GASB reporting covers only employer contributions that fund benefits paid from the Pension Plan. These include contributions for: * Normal cost of Pension Plan benefits. * Unfunded actuarial liability in the FRS blended rate (both Pension Plan and Investment Plan) * Unfunded actuarial liability on the payroll of members in the optional retirement programs for the State University System, State College System, and state senior managers. * Investment Plan disability and in line of duty death benefit programs. - Required employee contributions are not included in employer reporting. Retiree Health Insurance Subsidy (HIS Program - Funded only by the HIS employer contribution rate. Note: Both FRS and HIS benefits are accounted for on an accrual basis for the plan year of July June. 15

16 PENSION FUNDING FOR FRS AND HIS FRS Pension Plan funding is part of the employer contribution rate paid on both Pension Plan members and Investment Plan members due to the blended rate structure. Pension Plan members From the total employer contributions paid, deduct the HIS contributions and the Investment Plan administrative assessment that is 0.06%. The remaining contributions are all Pension Plan funding. Investment Plan members From the total employer contributions paid, deduct the HIS contributions, the Investment Plan administrative assessment, and the employer contributions to the Investment Plan member s account (these rates vary by membership class). The remaining contributions are all Pension Plan funding. SUSORP, SMSOAP, SCCSORP Employers pay an unfunded actuarial liability contribution for the FRS Pension Plan on the salaries of these members. HIS funding is the employer contribution 1.66%. 16

17 FRS PENSION PLAN Total Employer Contribution Rate Components FRS employers have a total rates by membership class owed on FRS payrolls that include: FRS Blended Employer Rate (varies by membership class) HIS Employer Contribution Rate (single rate for fiscal year) Investment Plan/Financial Guidance Employer Assessment Total Employer Contributions Submitted on Payroll (sum of above) The required employee contribution rate is not an employer funding obligation under GASB 67/68 when deducted from the employee s compensation. 17

18 Based upon SB 7022 Blended Rate Contribution Components Uniform FRS CONTRIBUTION RATES EFFECTIVE JULY 1, 2017 TO JUNE 30, 2018 Regular Class (%) Special Risk Class (%) Elected Officers' Class (%) SMSC (%) DROP (%) 1 SR Regular SR Admin Support State - Judicial State - L/A/C Local FRS Defined Benefit Program (FRS Pension Plan) Cost - Employer Contribution Rates Before Blending Normal Cost Rate Valuation Based used in Blended Rates UAL Cost - Valuation Based Additional UAL Cost SB 7022 ER Total Pension Plan Cost FRS Investment Plan Rates - Employer Contribution Rates Before Blending Employer Contribution to Investment Plan Account N/A Disability Program Funding to FRS Trust Fund N/A ILOD Death Benefit Funding (all classes) to FRS Trust Fund N/A Total Investment Plan Employer Contribution Rates N/A Blended Employer Contribution Rate Covering FRS Pension Plan and FRS Investment Plan Members Blended Rates as Enacted Uniform UAL on all payroll bases* Investment Plan Administration and Financial Guidance Assessment N/A HIS Contribution Total Employer Contribution Rate Total Employee Contribution Rate Total Contribution Rate Submitted to the Division of Retirement Effective July 1, *(Payroll base includes SMSOAP, SUSORP, and SCCORP) Comparison to the Total Contributions Submitted by Employer for Difference in total employer contribution rates for Reemployed Retirees Without Renewed Membership UAL HIS Contribution Total Employer Contribution Rate Submitted to the Division of Retirement Effective July 1, Comparison to Employer Contribution Rates for Reemployed Retirees Without Renewed Membership for Difference in Employer Contribution Rates for Reemployed Retirees Without Renewed Members for Non-Integrated Defined Contribution Plans Required Employee Contribution Rate to Member Account Employer Contribution Rate to Member Account Total Contribution to DC Investment Account Employer UAL Contribution - to FRS Trust Fund Non-Integrated DC Plan Administrative Assessment Total Contribution Rate Submitted SUSORP (%) SMSOAP (%) SCCSORP (%) Voluntary employee contributions are limited to the employer contribution to the account. SCCSORP is administered by each state college that sets any administrative assessment. Total Contribution Rate Submitted by Employer for Difference effective DROP rates are special charges to cover the assumed cost of DROP participants; they are not Normal Cost or UAL Cost in the traditional sense. 2 Amount deposited into Investment Plan account by the employer is based upon Investment Plan account rate in law, not the blended rate that is paid by the employer

19 Net Pension Liability FRS PENSION PLAN NET PENSION LIABILITY Net Pension Liability June 30, 2015 June 30, 2016 Total pension liability $161,370,735,088 $167,030,999,000 Fiduciary net position 148,454,393, ,780,920,515 Net pension liability 12,916,341,186 25,250,078,485 Fiduciary net position as a % of total pension liability 92.00% 84.88% Covered payroll* 32,726,034,000 33,214,217,000 Net pension liability as a % of covered payroll 39.47% 76.02% Discount Rate Discount rate 7.65% 7.60% Long-term expected rate of return, net of investment expense 7.65% 7.60% Municipal bond rate N/A N/A Other Key Actuarial Assumptions The actuarial assumptions that determined the total pension liability as of June 30, 2016 were based on the results of an actuarial experience study for the period July 1, June 30, Valuation date July 1, 2015 July 1, 2016 Measurement date June 30, 2015 June 30, 2016 Inflation 2.60% 2.60% Salary increases including inflation 3.25% 3.25% Mortality Generational RP-2000 with Generational RP-2000 with Projection Scale BB Projection Scale BB Actuarial cost method Individual Entry Age Individual Entry Age 19

20 FRS Pension Plan Total Pension Plan Fiduciary Net Pension Liability Net Position Liability Changes in Net Pension Liability (a) (b) (a) - (b) Balances as of June 30, 2015 $ 161,370,735,088 $ 148,454,393,902 $ 12,916,341,186 Changes for the year: Service cost 2,132,905,650 2,132,905,650 Interest on total pension liability 12,109,113,805 12,109,113,805 Effect of plan changes 32,310,000 32,310,000 Effect of economic/demographic gains or losses 980,191, ,191,881 Effect of assumptions changes or inputs 1,030,667,368 10,306,673,368 Benefit payments 1 (10,624,924,792) (10,624,924,792) 0 Employer contributions 2,438,659,458 (2,438,659,458) Member contributions 710,716,815 (710,716,815) Net investment income 850,582,372 (820,582,372) Administrative expenses (18,507,240) 18,507,240 Balances as of June 30, 2016 $ 167,030,999,000 $ 141,780,920,515 $ 25,520,078,485 1 Benefit payments shown above include outbound transfers to the Investment Plan and returns of contributions, net of $54,889,558 inbound transfers from the Investment Plan. 20

21 2015 to 2016 FRS NPL TO NPL RECONCILIATION ST Johns County Board of County Commisioners - Employer-Specific NPL to NPL 29,307,551 6/30/15 NPL 2015 Employer Exhibits, Pension Plan Exhibit C, Column K* 62,481,102 6/30/16 NPL 2016 Employer Exhibits, Pension Plan Exhibit C, Column N 33,173,551 Increase / (Decrease) in NPL During Year --- Short way to calculate [B7-B6] (A) 9,944,212 Pension Expense (Share of Collective plus Employer-Specific) 2016 Employer Exhibits, ExE - PP, Column Q (B) 16,066,087 6/30/15 Deferred Outflows (Share of Collective plus Employer-Specific) 2015 Employer Exhibits, Pension Plan Exhibit C, Column K 40,320,599 6/30/16 Deferred Outflows (Share of Collective plus Employer-Specific) 2016 Employer Exhibits, ExE - PP, Sum of Columns E through H 24,254,512 Increase / (Decrease) in Collective Deferred Outflows [B14-B13] 18,737,945 6/30/15 Deferred Inflows (Share of Collective plus Employer-Specific) 2015 Employer Exhibits, Pension Plan Exhibit E * use the opposite of 13,728,677 6/30/16 Deferred Inflows (Share of Collective plus Employer-Specific) 2016 Employer Exhibits, ExE - PP, Sum of Columns J through M * use the opposite of (C) (5,009,268) Increase / (Decrease) in Collective Deferred Inflows (B18-B17) (D) 6,034,442 Employer Contributions During Year 2016 Employer Exhibits, ExC - PP, Column I (A) + (B) - (C) - (D) 33,173,550 Increase / (Decrease) in NPL During Year --- Long way to calculate [B11+B15-B19-B21] *The same information is carried forward in the 2016 Employer Exhibits 21

22 FRS Pension Plan Sensitivity Analysis The following presents the net pension liability of the FRS, calculated using the discount rate of 7.60%, as well as what the FRS's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.60%) or 1 percentage point higher (8.60%) than the current rate. 1% Current 1% Decrease Discount Rate Increase 6.60% 7.60% 8.60% Total pension liability $ 188,268,024,512 $ 167,030,999,000 $ 149,353,979,968 Fiduciary net position 141,780,920, ,780,920, ,780,920,515 Net pension liability $ 46,487,103,997 $ 25,250,078,485 $ 7,573,059,453 22

23 GASB 67 INVESTMENT RETURN ASSUMPTION Depletion Date Projection for FRS Pension Plan GASB 67 generally requires that a blended discount rate be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan s Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate under GASB 67 will often require that the actuary perform projections of future benefit payments and asset values. GASB 67 (paragraph 43) does allow for alternative evaluations of projected solvency, if such evaluation can reliably be made. GASB does not contemplate a specific method for making an alternative evaluation of sufficiency; it is left to professional judgment. The following circumstances justify an alternative evaluation of sufficiency for the Florida Retirement System: - The Florida Retirement System has a formal written policy to calculate an Actuarially Determined Contribution (ADC), which is articulated in the actuarial valuation report. - The ADC is based on a closed, layered amortization period, which means that payment of the full ADC each year will bring the plan to a 100% funded position by the end of the amortization period if future experience follows assumption. - GASB 67 specifies that the projections regarding future solvency assume that plan assets earn the assumed rate of return and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projections would not reflect any adverse future experience which might impact the plan s funded position Based on these circumstances, it is Milliman's professional opinion that the detailed depletion date projections outlined in GASB 67 would clearly indicate that the Fiduciary Net Position is always projected to be sufficient to cover benefit payments and administrative expenses. As such, the detailed projections were not developed. 23

24 RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Net Pension Liability Net Pension Liability June 30, 2015 June 30, 2016 Total pension liability $10,249,201,290 $11,768,444,801 Fiduciary net position 50,774, ,859,055 Net pension liability 10,198,426,975 11,654,585,746 Fiduciary net position as a % of total pension liability 0.50% 0.97% Covered payroll 30,340,449,100 30,875,273,947 Net pension liability as a % of covered payroll 33.61% 37.75% The total pension liability was determined by an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial assumptions below, and was then projected to the measurement date. Any significant changes during this period have been reflected as prescribed by GASB 67. Discount Rate Discount rate 3.80% 2.85% Long-term expected rate of return, net of investment expense N/A N/A Municipal bond rate 3.80% 2.85% In general, the discount rate for calculating the total pension liability under GASB 67 is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the plan sponsor. Other Key Actuarial Assumptions The actuarial assumptions that determined the total pension liability as of June 30, 2016 were based on the results of an actuarial experience study of the FRS for the period July 1, June 30, Valuation date July 1, 2014 July 1, 2015 Measurement date June 30, 2015 June 30, 2016 Inflation 2.60% 2.60% Salary increases including inflation 3.25% 3.25% Mortality Generational RP-2000 with Projection Scale BB Generational RP-2000 with Projection Scale BB Actuarial cost method Individual Entry Age Individual Entry Age 24

25 HIS CHANGES IN NET PENSION LIABILITY Changes in Net Pension Liability Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability Changes in Net Pension Liability (a) (b) (a) - (b) Balances as of June 30, 2015 $ 10,249,201,290 $ 50,774,315 $ 10,198,426,975 Changes for the year: Service cost 256,710, ,710,220 Interest on total pension liability 390,757, ,757,053 Effect of plan changes 0 0 Effect of economic/demographic gains or losses (30,826,289) (30,826,289) Effect of assumptions changes or inputs 1,352,459,162 1,352,459,162 Benefit payments (449,856,635) (449,856,635) 0 Employer contributions 512,563,741 (512,563,741) Member contributions 0 0 Net investment income 565,205 (565,205) Administrative expenses (187,571) 187,571 Balances as of June 30, 2015 $ 11,768,444,801 $ 113,859,055 $ 11,654,585,746 Sensitivity Analysis The following presents the net pension liability of the HIS, calculated using the discount rate of 2.85%, as well as what the HIS's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (1.85%) or 1 percentage point higher (3.85%) than the current rate. 1% Current 1% Decrease Discount Rate Increase 1.85% 2.85% 3.85% Total pension liability $13,484,316,752 $11,768,444,801 $10,344,364,746 Fiduciary net position 113,859, ,859, ,859,055 Net pension liability 13,370,457,697 11,654,585,746 10,230,505,691 25

26 HIS PROGRAM Schedule of Changes in Net Pension Liability and Related Ratios 1 (Dollar Amounts are in 1,000s) June 30, 2014 June 30, 2015 June 30, 2016 Total Pension Liability Service cost $ 190,371 $ 217,519 $ 256,710 Interest on total pension liability 409, , H8:H27 Effect of plan changes Effect of economic/demographic (gains) or losses 0 0 (30,826.00) Effect of assumption changes or inputs 386, ,698 1,352, Benefit payments (407,276) (425,086) (449,857.00) Net change in total pension liability 579, ,572 1,519, Total pension liability, beginning 8,864,244 9,443,629 10,249, Total pension liability, ending (a) 9,443,629 10,249,201 11,768, Fiduciary Net Position Employer contributions $342,566 $382,454 $512, Member contributions Investment income net of investment expenses Benefit payments (407,276) (425,086) (449,857.00) Administrative expenses (54) (188) (188.00) Net change in plan fiduciary net position (64,545) (42,612) 63, Fiduciary net position, beginning 157,929 93,385 50, Fiduciary net position, ending (b) 93,385 50, , Net pension liability, ending = (a) - (b) $ 9,350,244 $ 10,198,427 $ 11,654,586 Fiduciary net position as a % of total pension liability 0.99% 0.50% 0.97% Covered payroll $ 29,676,340 $ 30,340,449 $ 30,875,274 Net pension liability as a % of covered payroll 31.51% 33.61% 37.75% 1 This exhibit will fill in to a ten-year schedule as results for new fiscal years are calculated. 26

27 2016 FRS Pension Plan and HIS Valuations: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive Annual Financial Report as of June 30, 2016 Provides plan level financial statements and note disclosures reported as required under GASB 67. Applies to all employers regardless of the employers fiscal year end. Used by employers with a fiscal year end of September 30 for current year reporting in Used by employers with a fiscal year end of June 30 as retrograde reporting for Go to the Division of Retirement s website at to find the FRS Pension Plan and Other State Administered Systems CAFR 27

28 2016 FRS Pension Plan and HIS Valuations: GASB 68 Reporting Information for Fiscal Year Ended June 30, 2016 Independent Auditor Report from the State of Florida Auditor General Letter of Certification from Actuary Provides schedules of: Collective Pension Expense Deferred Inflows or Outflows of Resources Employer Allocations Deferred Outflows or (Inflows) for Employer-Specific Adjustments per Paragraph 54 of GASB 68 Pension Amounts by Employer Deferred Outflows for Employer Contributions Subsequent to the Measurement Date for Use by Employers with Fiscal Year Ending September 30 Schedule F-3 A separate Schedule F-12 will be prepared for employer contributions subsequent to the measurement date for use by employers with a fiscal year ending June30. 28

29 2016 FRS Pension Plan and HIS Valuations: GASB 68 Reporting Information for Fiscal Year Ended June 30, 2016 Financial Guidance in the form of sample journal entries and RSI: Current guidance is only for employers with fiscal year ending September 30 who are in their first year of reporting. New guidance only for employers with fiscal year ending June 30 will be available by June 30, Additional guidance is provided to assist employers in determining pension funding in the total contributions reported to the Division of Retirement. Go to the Division of Retirement s website at to find the GASB 68 Reporting Information for Fiscal Year Ended June 30,

30 2016 FRS Pension Plan and HIS Valuations: GASB 68 Reporting Information for Fiscal Year Ended June 30, 2016 Helpful Hints to Completing the GASB 68 Sample Journal Entries Agencies ONLY need to input agency specific information in the HIGHLIGHTED Cells ONLY. The information box at the top of the Journal indicates which Exhibits are to be used to obtain the necessary information to be input in the highlighted cells. 30

31 2016 FRS Pension Plan and HIS Valuations: GASB 68 Reporting Information for Fiscal Year Ended June 30, 2016 The embedded formulas located in the Journal will automatically calculate information in the non-highlighted cells. It is not necessary for any changes to be made to cells that are not highlighted. 31

32 2016 FRS Pension Plan and HIS Valuations: GASB 68 Reporting Information for Fiscal Year Ended June 30, 2016 Information to remember when completing the Journal Entries: Referenced phrases that are abbreviated Deferred Outflow Resources - DOR Deferred Inflow Resources DIR 2015 Deferred Outflows/Inflows must be backed out of the Calculations For the calculations to balance you must remove the 2015 information To back out the prior years information, input the reverse Outflows and Inflows of the information provided in the 2015 Exhibit. If the Outflow shows a positive value on the Exhibit, then input a negative value in the Journal If the agency information is balanced the grey checked box in Column M will indicate 0 or 1 32

33 2016 FRS Pension Plan and HIS Valuations: GASB 68 Reporting Information for Fiscal Year Ended June 30, Financial information is Backed Out of the calculations in the Journal In the example the DOR-Experience is needed for Input values. The 2015 Exhibit shows a value of 42,324 The value in the Journal will be the Reverse of that value, (42,324) The Journal Entry is balanced 33

34 June 30, 2017 SCHEDULE OF UPCOMING DELIVERABLES Publish guidance with RSI and sample journal entries specifically for employers with a June 30 FY end. Publish guidance to help employers calculate the employer contributions that are pension funding for the FRS Pension Plan and the Retiree Health Insurance Subsidy Program for ; is already available. August 31, 2017 Publish an additional Schedule F (F-12 for 6-30 ERs) with the 12 months of employer contributions after the measurement date for employers with a fiscal year ending June 30. This is the last piece of data for the 2016 reporting for these employers. December 15, 2017 Publish Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive Annual Financial Report as of June 30, January 13, 2018 Publish GASB 68 Reporting Information for Fiscal Year Ended June 30,

35 Contact Information Garry Green Chief, Research and Education Division of Retirement Department of Management Services (toll free) your contact information to to have your name added to a GASB information distribution list. Please make your subject line GASB Distribution List. 35

36 Thank you for the opportunity to be here today! 36