CITY OF PLANTATION POLICE OFFICERS RETIREMENT SYSTEM Chapter , F.S. Compliance Report In Connection with the October 1, 2016 Funding Actuarial

Transcription

1 CITY OF PLANTATION POLICE OFFICERS RETIREMENT SYSTEM Chapter , F.S. Compliance Report In Connection with the October 1, 2016 Funding Actuarial Valuation Report And the Plan s Financial Reporting for the Year Ending September 30, 2016

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4 TABLE OF CONTENTS Title Page Ch , F.S. Results Schedule of Changes in Net Pension Liability 1. Using financial reporting assumptions per GASB Statement No Using assumptions prescribed in Section (1)(a), F.S Using assumptions prescribed in Section (1)(b), F.S Using the mandated mortality and funding interest rate +2% 4 Assets Versus Benefit Payments Projections 1. Using assumptions from the Plan s latest actuarial valuation 5 2. Using assumptions prescribed in Section (1)(a), F.S Using assumptions prescribed in Section (1)(b), F.S Using the mandated mortality and funding interest rate +2% 8 Actuarially Determined Contribution 9

5 CH , Florida Statutes RESULTS

6 Schedule of Changes in the Employers' Net Pension Liability Using Financial Reporting Assumptions per GASB Statement No. 67 Fiscal year ending September 30, Total pension liability a. Service Cost $ 3,084,847 b. Interest 11,952,044 c. Benefit Changes - d. Difference between actual & expected experience & Other 1,587,630 e. Assumption Changes - f. Benefit Payments (7,959,121) g. Contribution Refunds (45,464) h. Other (Increase in State Reserve) (180,907) i. Net Change in Total Pension Liability 8,439,029 j. Total Pension Liability - Beginning 171,660,931 k. Total Pension Liability - Ending $ 180,099, Plan Fiduciary Net Position a. Contributions - Employer $ 5,956,105 b. Contributions - Non-Employer Contributing Entity 802,736 c. Contributions - Member 875,249 d. Net Investment Income 14,081,428 e. Benefit Payments (7,959,121) f. Contribution Refunds (45,464) g. Administrative Expense (227,065) h. Other - i. Net Change in Plan Fiduciary Net Position 13,483,868 j. Plan Fiduciary Net Position - Beginning 119,849,078 k. Plan Fiduciary Net Position - Ending $ 133,332, Net Pension Liability / (Asset) 46,767,014 Valuation Date 10/01/2015 Measurement Date 09/30/2016 Investment Return Assumption 7.00% Mortality Table RP-2000 fully generational using Scale City of Plantation Police Officers Retirement System 1

7 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under (1)(a), F.S. Fiscal year ending September 30, Total pension liability a. Service Cost $ 3,084,847 b. Interest 11,952,044 c. Benefit Changes - d. Difference between actual & expected experience & Other 1,587,630 e. Assumption Changes - f. Benefit Payments (7,959,121) g. Contribution Refunds (45,464) h. Other (Increase in State Reserve) (180,907) i. Net Change in Total Pension Liability 8,439,029 j. Total Pension Liability - Beginning 171,660,931 k. Total Pension Liability - Ending $ 180,099, Plan Fiduciary Net Position a. Contributions - Employer $ 5,956,105 b. Contributions - Non-Employer Contributing Entity 802,736 c. Contributions - Member 875,249 d. Net Investment Income 14,081,428 e. Benefit Payments (7,959,121) f. Contribution Refunds (45,464) g. Administrative Expense (227,065) h. Other - i. Net Change in Plan Fiduciary Net Position 13,483,868 j. Plan Fiduciary Net Position - Beginning 119,849,078 k. Plan Fiduciary Net Position - Ending $ 133,332, Net Pension Liability / (Asset) 46,767,014 Valuation Date 10/01/2015 Measurement Date 09/30/2016 Investment Return Assumption 7.00% Mortality Table RP-2000 fully generational using Scale City of Plantation Police Officers Retirement System 2

8 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under (1)(b), F.S. Fiscal year ending September 30, Total pension liability a. Service Cost $ 4,809,937 b. Interest 10,882,044 c. Benefit Changes - d. Difference between actual & expected experience & Other - e. Assumption Changes - f. Benefit Payments (7,959,121) g. Contribution Refunds (45,464) h. Other (Increase in State Reserve) (180,907) i. Net Change in Total Pension Liability 7,506,489 j. Total Pension Liability - Beginning 216,833,228 k. Total Pension Liability - Ending $ 224,339, Plan Fiduciary Net Position a. Contributions - Employer $ 5,956,105 b. Contributions - Non-Employer Contributing Entity 802,736 c. Contributions - Member 875,249 d. Net Investment Income 14,081,428 e. Benefit Payments (7,959,121) f. Contribution Refunds (45,464) g. Administrative Expense (227,065) h. Other - i. Net Change in Plan Fiduciary Net Position 13,483,868 j. Plan Fiduciary Net Position - Beginning 119,849,078 k. Plan Fiduciary Net Position - Ending $ 133,332, Net Pension Liability / (Asset) 91,006,771 Valuation Date 10/01/2015 Measurement Date 09/30/2016 Investment Return Assumption 5.00% Mortality Table RP-2000 fully generational using Scale City of Plantation Police Officers Retirement System 3

9 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions under (1)(b), F.S. except 2% higher investment return assumption Fiscal year ending September 30, Total pension liability a. Service Cost $ 2,058,437 b. Interest 12,722,663 c. Benefit Changes - d. Difference between actual & expected experience & Other - e. Assumption Changes - f. Benefit Payments (7,959,121) g. Contribution Refunds (45,464) h. Other (Increase in State Reserve) (180,907) i. Net Change in Total Pension Liability 6,595,608 j. Total Pension Liability - Beginning 143,306,779 k. Total Pension Liability - Ending $ 149,902, Plan Fiduciary Net Position a. Contributions - Employer $ 5,956,105 b. Contributions - Non-Employer Contributing Entity 802,736 c. Contributions - Member 875,249 d. Net Investment Income 14,081,428 e. Benefit Payments (7,959,121) f. Contribution Refunds (45,464) g. Administrative Expense (227,065) h. Other - i. Net Change in Plan Fiduciary Net Position 13,483,868 j. Plan Fiduciary Net Position - Beginning 119,849,078 k. Plan Fiduciary Net Position - Ending $ 133,332, Net Pension Liability / (Asset) 16,569,441 Valuation Date 10/01/2015 Measurement Date 09/30/2016 Investment Return Assumption 9.00% Mortality Table RP-2000 fully generational using Scale AA City of Plantation Police Officers Retirement System 4

10 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions From the Latest Actuarial Valuation FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) ,419,471 7,569,334 9,016, ,972, ,972,434 7,449,701 9,564, ,857, ,857,158 7,288,718 9,967, ,178, ,178,836 7,090,072 10,326, ,942, ,942,078 6,856,638 10,570, ,227, ,227,898 6,586,345 10,920,689 95,893, ,893,554 6,274,988 11,211,908 90,956, ,956,634 5,925,647 11,391,040 85,491, ,491,241 5,538,993 11,587,012 79,443, ,443,222 5,113,982 11,721,480 72,835, ,835,724 4,652,523 11,785,889 65,702, ,702,358 4,154,096 11,862,381 57,994, ,994,074 3,617,209 11,895,790 49,715, ,715,493 3,039,845 11,953,426 40,801, ,801,912 2,417,425 12,037,644 31,181, ,181,693 1,742,541 12,218,331 20,705, ,705,903 1,013,341 12,250,916 9,468, ,468, ,572 12,215, ,166, ,103, ,004, ,881, ,763, ,639, ,445, ,222,040 - Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: Valuation Investment return assumption 6.95% Valuation Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Note: As required in Section (c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. City of Plantation Police Officers Retirement System 5

11 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under (1)(a), F.S. CYE aarket Value of Assets (.hy) Expected Investment Return trojected.enefit tayments aarket Value of Assets (EhY) ,419,471 7,569,334 9,016, ,972, ,972,434 7,449,701 9,564, ,857, ,857,158 7,288,718 9,967, ,178, ,178,836 7,090,072 10,326, ,942, ,942,078 6,856,638 10,570, ,227, ,227,898 6,586,345 10,920,689 95,893, ,893,554 6,274,988 11,211,908 90,956, ,956,634 5,925,647 11,391,040 85,491, ,491,241 5,538,993 11,587,012 79,443, ,443,222 5,113,982 11,721,480 72,835, ,835,724 4,652,523 11,785,889 65,702, ,702,358 4,154,096 11,862,381 57,994, ,994,074 3,617,209 11,895,790 49,715, ,715,493 3,039,845 11,953,426 40,801, ,801,912 2,417,425 12,037,644 31,181, ,181,693 1,742,541 12,218,331 20,705, ,705,903 1,013,341 12,250,916 9,468, ,468, ,572 12,215, ,166, ,103, ,004, ,881, ,763, ,639, ,445, ,222,040 - bumber of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Clorida Statutes and tlan provisions: Valuation Investment return assumption 6.95% Valuation aortality Table CRS aortality Rates from 7/1/16 CRS Valuation bote: As required in Section (c) of the Clorida Statutes, the projection of the Cund assets do not include contributions from the Employer, Employee or State, which is contrary to Clorida Statutes and tlan provisions. Cor this reason, these projections should not be viewed as a representation of the amount of time the Cund can sustain benefit payments. Under the GAS. standards which Dh include contributions from the employer, employee and State, the Cund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. City of Plantation Police Officers Retirement System 6

12 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under (1)(b), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) ,419,471 5,391,109 9,016, ,794, ,794,209 5,198,080 9,564, ,427, ,427,311 4,971,968 9,967, ,432, ,432,239 4,715,807 10,326,830 94,821, ,821,216 4,432,022 10,570,819 88,682, ,682,420 4,119,493 10,920,689 81,881, ,881,223 3,775,626 11,211,908 74,444, ,444,941 3,403,096 11,391,040 66,456, ,456,998 3,002,843 11,587,012 57,872, ,872,828 2,574,598 11,721,480 48,725, ,725,947 2,120,234 11,785,889 39,060, ,060,291 1,639,890 11,862,381 28,837, ,837,801 1,133,050 11,895,790 18,075, ,075, ,868 11,953,426 6,720, ,720,503 34,733 12,037, ,218, ,250, ,215, ,166, ,103, ,004, ,881, ,763, ,639, ,445, ,222,040 - Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: Valuation Investment return assumption 4.95% Valuation Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Note: As required in Section (c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. City of Plantation Police Officers Retirement System 7

13 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions under (1)(b), F.S. except 2% higher investment return assumption FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) ,419,471 9,747,560 9,016, ,150, ,150,660 9,788,451 9,564, ,374, ,374,133 9,790,460 9,967, ,197, ,197,554 9,758,555 10,326, ,629, ,629,280 9,696,776 10,570, ,755, ,755,237 9,602,893 10,920, ,437, ,437,441 9,471,918 11,211, ,697, ,697,451 9,308,173 11,391, ,614, ,614,584 9,112,986 11,587, ,140, ,140,558 8,885,544 11,721, ,304, ,304,622 8,628,845 11,785,889 99,147, ,147,578 8,342,867 11,862,381 95,628, ,628,064 8,026,375 11,895,790 91,758, ,758,649 7,677,483 11,953,426 87,482, ,482,707 7,291,018 12,037,644 82,736, ,736,080 6,858,109 12,218,331 77,375, ,375,858 6,376,911 12,250,916 71,501, ,501,853 5,852,788 12,215,158 65,139, ,139,482 5,285,550 12,166,113 58,258, ,258,919 4,672,522 12,103,946 50,827, ,827,495 4,011,873 12,004,202 42,835, ,835,166 3,302,050 11,881,503 34,255, ,255,713 2,539,476 11,763,360 25,031, ,031,829 1,719,486 11,639,379 15,111, ,111, ,344 11,445,236 4,507, ,507,044-11,222,040 - Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: Valuation Investment return assumption 8.95% Valuation Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Note: As required in Section (c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. City of Plantation Police Officers Retirement System 8

14 ACTUARIALLY DETERMINED CONTRIBUTION Plans Latest Actuarial Valuation (1)(a) F.S. Assumptions (1)(b) F.S. Assumptions (1)(b) F.S. except 2% higher investment return assumption A. Valuation Date October 1, 2016 October 1, 2016 October 1, 2016 October 1, 2016 B. Actuarially Determined Contribution (ADC) to Be Paid During Fiscal Year Ending 9/30/2018 9/30/2018 9/30/2018 9/30/2018 C. Assumed Dates of Employer Contributions Quarterly Quarterly Quarterly Quarterly D. Annual Payment to Amortize Unfunded Actuarial Liability $ 3,940,661 $ 3,940,661 $ 6,149,653 $ 1,809,254 E. Employer Normal Cost 2,260,541 2,260,541 3,877,360 1,304,150 F. ADC if Paid on Valuation Date: D + E 6,201,202 6,201,202 10,027,013 3,113,404 G. ADC Adjusted for Frequency of Payments 6,463,699 6,463,699 10,331,533 3,281,901 H. ADC Adjusted for Frequency of Payments as % of Covered Payroll % % % % I. Assumed Rate of Increase in Covered Payroll to Contribution Year 4.00 % 4.00 % 4.00 % 4.00 % J. Covered Payroll for Contribution Year 9,729,212 9,729,212 9,729,212 9,729,212 K. ADC for Contribution Year: H x J 6,721,913 6,721,913 10,744,942 3,413,008 L. Allowable Credit for State Revenue in Contribution Year 802, , , ,736 M. Employer ADC in Contribution Year 5,919,177 5,919,177 9,942,206 2,610,272 N. Employer ADC as % of Covered Payroll in Contribution Year: M J % % % % O. Expected Member Contributions 876, , , ,654 P. Total Contribution (including Members) in Contributing Year 7,598,567 7,598,567 11,621,596 4,289,662 Q. Total Contribution as a % of covered payroll in Contribution Year: P J % % % % R. Investment Return Assumption 6.95% 6.95% 4.95% 8.95% Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation FRS Mortality Rates from 7/1/16 FRS Valuation FRS Mortality Rates from 7/1/16 FRS Valuation FRS Mortality Rates from 7/1/16 FRS Valuation City of Plantation Police Officers Retirement System 9