G O G E B I C C OUNTY EMPLO Y E E S R E T I R E M E N T S YS T EM

Transcription

1 G O G E B I C C OUNTY EMPLO Y E E S R E T I R E M E N T S YS T EM G A S B S T A T E M E N T NOS. 6 7 A N D 6 8 A C C O U N T I N G A N D F I N A N C I A L R E P O R T I N G F O R P E N S I O N S D E C E M B E R 3 1,

2 June 27, 2016 Board of Trustees Gogebic County Employees Retirement System Dear Board Members: This report provides accounting and financial reporting information that is intended to comply with the Governmental Accounting Standards Board (GASB) Statement Nos. 67 and 68 for the Gogebic County Employees Retirement System. These calculations have been made on a basis that is consistent with our understanding of these Statements. GASB Statement No. 67 is the accounting standard that applies to the stand-alone financial reports issued by retirement systems. GASB Statement No. 68 establishes accounting and financial reporting for state and local government employers who provide their employees (including former employees) pension benefits through a trust. Our calculation of the liability associated with the benefits described in this report was performed for the purpose of providing reporting and disclosure information that satisfies the requirements of GASB Statement Nos. 67 and 68. The calculation of the plan s liability for this report is not applicable for funding purposes of the plan. A calculation of the plan s liability for purposes other than satisfying the requirements of GASB Statement No. 67 may produce significantly different results. This report may be provided to parties other than the Gogebic County Employees Retirement System only in its entirety and only with the permission of the County. This report is based upon information, furnished to us by the County, concerning retirement and ancillary benefits, active members, deferred vested members, retirees and beneficiaries, and financial data. This information was checked for internal consistency, but it was not audited. This report complements the actuarial valuation report that was provided to the County and should be considered in conjunction with that report. Please see the actuarial valuation report as of December 31, 2015 for additional discussion of the nature of actuarial calculations and more information related to participant data, economic and demographic assumptions, and benefit provisions. To the best of our knowledge, the information contained with this report is accurate and fairly represents the actuarial position of the Gogebic County Employees Retirement System. All calculations have been made in conformity with generally accepted actuarial principles and practices as well as with the Actuarial Standards of Practice issued by the Actuarial Standards Board.

3 Board of Trustees June 27, 2016 Page 2 The signing individuals are independent of the plan sponsor. Abra D. Hill is a Member of the American Academy of Actuaries (MAAA) and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. Respectfully submitted, Abra D. Hill, ASA, MAAA R. Michael Gano David L. Hoffman ADH/RMG/DLH:dj

4 TABLE OF CONTENTS Section A Section B Section C Executive Summary Executive Summary Discussion Financial Statements Statement of Fiduciary Net Position... 7 Statement of Changes in Fiduciary Net Position... 8 Required Supplementary Information General County Schedule of Pension Expense... 9 Statement of Outflows and Inflows Arising from Current Reporting Period Statement of Outflows and Inflows Arising from Current and Prior Reporting Periods Schedule of Changes in Net Pension Liability and Related Ratios Multiyear Schedule of Net Pension Liability Multiyear Schedule of Contributions Multiyear Notes to Schedule of Contributions Road Commission Schedule of Pension Expense Statement of Outflows and Inflows Arising from Current Reporting Period Statement of Outflows and Inflows Arising from Current and Prior Reporting Periods Schedule of Changes in Net Pension Liability and Related Ratios Multiyear Schedule of Net Pension Liability Multiyear Schedule of Contributions Multiyear Notes to Schedule of Contributions Medical Care Facility Schedule of Pension Expense Statement of Outflows and Inflows Arising from Current Reporting Period Statement of Outflows and Inflows Arising from Current and Prior Reporting Periods Schedule of Changes in Net Pension Liability and Related Ratios Multiyear Schedule of Net Pension Liability Multiyear Schedule of Contributions Multiyear Notes to Schedule of Contributions Mental Health Schedule of Pension Expense Statement of Outflows and Inflows Arising from Current Reporting Period Statement of Outflows and Inflows Arising from Current and Prior Reporting Periods Schedule of Changes in Net Pension Liability and Related Ratios Multiyear Schedule of Net Pension Liability Multiyear Schedule of Contributions Multiyear Notes to Schedule of Contributions Page

5 TABLE OF CONTENTS Page Grand View Hospital Statement of Pension Expense Statement of Outflows and Inflows Arising from Current Reporting Period Statement of Outflows and Inflows Arising from Current and Prior Reporting Periods Schedule of Changes in Net Pension Liability and Related Ratios Multiyear Schedule of Net Pension Liability Multiyear Schedule of Contributions Multiyear Notes to Schedule of Contributions Section D Notes to Financial Statements Asset Allocation Single Discount Rate Sensitivity of Net Pension Liability to the Single Discount Rate Assumption Reconciliation of DROP Accounts Summary of Population Statistics Section E Summary of Benefits Section F Actuarial Cost Method and Actuarial Assumptions Valuation Methods, Entry Age Normal Actuarial Assumptions, Input to Discount Rates, Mortality Assumptions, and Experience Studies Miscellaneous and Technical Assumptions Section G Calculation of the Single Discount Rate General County Projection of Contributions Projection of Plan Fiduciary Net Position Present Values of Benefits Projection of Plan Net Position and Benefit Payments Road Commission Projection of Contributions Projection of Plan Fiduciary Net Position Present Values of Benefits Projection of Plan Net Position and Benefit Payments Medical Care Facility Projection of Contributions Projection of Plan Fiduciary Net Position Present Values of Benefits Projection of Plan Net Position and Benefit Payments Mental Health Projection of Contributions Projection of Plan Fiduciary Net Position Present Values of Benefits Projection of Plan Net Position and Benefit Payments... 83

6 TABLE OF CONTENTS Page Grand View Hospital Projection of Contributions Projection of Plan Fiduciary Net Position Present Values of Benefits Projection of Plan Net Position and Benefit Payments Section H Glossary of Terms

7 SECTION A EXECUTIVE SUMMARY Executive Summary 0

8 Section A EXECUTIVE SUMMARY AS OF DECEMBER 31, 2015 General County (Including Manpower) Road Commission Medical Care Facility Mental Health Grand View Hospital Actuarial Valuation Date December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 Measurement Date of the Net Pension Liability December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 Employer's Fiscal Year Ending Date (Reporting Date) December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 TOTAL Membership Number of - Retirees and Beneficiaries Inactive, Nonretired Members Active Members Total Covered Payroll $ 2,954,942 $ 1,335,178 $ 4,702,067 $ 1,996,796 $ - $ 10,988,983 Net Pension Liability Total Pension Liability $ 19,658,030 $ 10,035,002 $ 15,152,001 $ 17,157,386 $ 80,874 $ 62,083,293 Plan Fiduciary Net Position 12,745,678 6,359,700 12,215,907 10,841, ,993 42,270,404 Net Pension Liability $ 6,912,352 $ 3,675,302 $ 2,936,094 $ 6,316,260 $ (27,119) $ 19,812,889 Plan Fiduciary Net Position as a Percentage of Total Pension Liability % % % % % % Net Pension Liability as a Percentage of Covered Payroll % % % % N/A % Development of the Single Discount Rate Single Discount Rate 7.50 % 7.50 % 7.50 % 7.50 % 7.50 % 7.50 % Long-Term Expected Rate of Return 7.50 % 7.50 % 7.50 % 7.50 % 7.50 % 7.50 % Long-Term Municipal Bond Rate* 3.57 % 3.57 % 3.57 % 3.57 % 3.57 % 3.57 % Last year ending December 31 in the 2016 to 2115 projection period for which projected benefit payments are fully-funded Total Pension Expense $ 978,262 $ 487,790 $ 714,843 $ 806,225 $ 8,857 $ 2,995,978 * Source: State & local bonds rate from Federal Reserve statistical release (H.15) as of December, The statistical release describes this rate as "Bond Buyer Index general obligation 20 years to maturity, mixed quality." In describing this index, the Bond Buyer notes that the bond's saverage credit quality is roughly equivalent to Moody s Investors Service s Aa2 rating and Standard & Poor s Corp. s AA. 1

9 Section A EXECUTIVE SUMMARY AS OF DECEMBER 31, 2015 Deferred Outflows and Deferred Inflows of Resources by Source to be recognized in Future Pension Expenses Deferred Outflows of Resources General County Road Commision Medical Care Facility Mental Health Deferred Inflows of Resources Deferred Outflows of Resources Deferred Inflows of Resources Deferred Outflows of Resources Deferred Inflows of Resources Deferred Outflows of Resources Deferred Inflows of Resources Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $ - $ 113,782 $ - $ 222,763 $ 68,600 $ - $ 94,604 $ - $ - $ - Changes in assumptions - 279,752-74, , , Net difference between projected and actual earnings Grand View Hospital on pension plan investments 1,214, ,623-1,163,518-1,012,637-11,078 - Total $ 1,214,635 $ 393,534 $ 609,623 $ 297,049 $ 1,232,118 $ 294,050 $ 1,107,241 $ 147,778 $ 11,078 $ - 2

10 Section A DISCUSSION Accounting Standard For pension plans that are administered through trusts or equivalent arrangements, Governmental Accounting Standards Board (GASB) Statement No. 67 establishes standards of financial reporting for separately issued financial reports and specifies the required approach for measuring the pension liability. Similarly, GASB Statement No. 68 establishes standards for state and local government employers (as well as non-employer contributing entities) to account for and disclose the Net Pension Liability, pension expense, and other information associated with providing retirement benefits to their employees (and former employees) on their basic financial statements. The following discussion provides a summary of the information that is required to be disclosed under these accounting standards. A number of these disclosure items are provided in this report. However, certain information, such as notes regarding accounting policies and investments, is not included in this report and the retirement system and/or plan sponsor will be responsible for preparing and disclosing that information to comply with these accounting standards. Financial Statements GASB Statement No. 68 requires state or local governments to recognize the Net Pension Liability and the pension expense on their financial statements. The Net Pension Liability is the difference between the Total Pension Liability and the plan s Fiduciary Net Position. In traditional actuarial terms, this is analogous to the accrued liability less the market value of assets (not the smoothed actuarial value of assets that is often encountered in actuarial valuations performed to determine the employer s contribution requirement). Paragraph 57 of GASB Statement No. 68 states, Contributions to the pension plan from the employer subsequent to the measurement date of the collective Net Pension Liability and before the end of the employer s reporting period should be reported as a deferred outflow of resources related to pensions. The information contained in this report does not incorporate any contributions made to the County subsequent to the measurement date of December 31, The pension expense recognized each fiscal year is equal to the change in the Net Pension Liability from the beginning of the year to the end of the year, adjusted for deferred recognition of the liability and investment experience. Pension plans that prepare their own, stand-alone financial statements are required to present two financial statements a statement of Fiduciary Net Position and a statement of changes in Fiduciary Net Position in accordance with GASB Statement No. 67. The statement of Fiduciary Net Position presents the assets and liabilities of the pension plan at the end of the pension plan s reporting period. The statement of changes in Fiduciary Net Position presents the additions, such as contributions and investment income, and deductions, such as benefit payments and expenses, and net increase or decrease in the Fiduciary Net Position. 3

11 Section A Notes to Financial Statements GASB Statement No. 68 requires the notes of the employer s financial statements to disclose the total pension expense, the pension plan s liabilities and assets, and deferred outflows and inflows of resources related to pensions. GASB Statement Nos. 67 and 68 require the notes of the financial statements for the employers and pension plans, to include certain additional information. The list of disclosure items should include: a description of benefits provided by the plan; the type of employees and number of members covered by the pension plan; a description of the plan s funding policy, which includes member and employer contribution requirements; the pension plan s investment policies; the pension plan s Fiduciary Net Position, Net Pension Liability, and the pension plan s Fiduciary Net Position as a percentage of the Total Pension Liability; the Net Pension Liability using a discount rate that is 1% higher and 1% lower than used to calculate the Total Pension Liability and Net Pension Liability for financial reporting purposes; significant assumptions and methods used to calculate the Total Pension Liability; inputs to the discount rates; and certain information about mortality assumptions and the dates of experience studies; and a description of the terms of the plan s deferred retirement option program (DROP) and the total DROP balance for those members currently participating in the DROP. Retirement systems that issue stand-alone financial statements are required to disclose additional information in accordance with GASB Statement No. 67. This information includes: the composition of the pension plan s Board and the authority under which benefit terms may be amended; a description of how fair value is determined; information regarding certain reserves and investments, which include concentrations of investments greater than or equal to 5%, receivables, and insurance contracts excluded from plan assets; and annual money-weighted rate of return. Required Supplementary Information GASB Statement No. 67 requires a 10-year fiscal history of: sources of changes in the Net Pension Liability; information about the components of the Net Pension Liability and related ratios, including the pension plan s Fiduciary Net Position as a percentage of the Total Pension Liability, and the Net Pension Liability as a percent of covered-employee payroll; and a comparison of the actual employer contributions to the actuarially determined contributions based on the plan s funding policy. 4

12 Section A General Implications of Contribution Allocation Procedure or Funding Policy on Future Expected Plan Contributions and Funded Status Given the plan s contribution allocation procedure, if all actuarial assumptions are met (including the assumption of the plan earning on the actuarial value of assets), then the following outcomes are expected: 1. The employer normal cost as a percentage of pay is expected to remain level as a percentage of payroll. 2. The unfunded liability is expected to be paid off in approximately 13 years for Community Mental Health and 23 years for other divisions, which is the number of years remaining in the closed amortization schedule of the unfunded liability. 3. The funded status of the plan is expected to reach a 100% funded ratio in approximately 13 years for Community Mental Health and 23 years for other divisions years, which is the number of years remaining in the closed amortization schedule of the unfunded liability. This funding policy results in the expectation that the plan s assets will be able to fully pay for promised benefits through at least The projections in this report are strictly for the purpose of determining the GASB single discount rate and are different from a funding projection for the ongoing plan. Measurement of the Net Pension Liability The Net Pension Liability (NPL) is to be measured as the Total Pension Liability (TPL), less the amount of the pension plan s Fiduciary Net Position (FNP). In actuarial terms, this will be the accrued liability less the market value of assets (not the smoothed actuarial value of assets that is often encountered in actuarial valuations performed to determine the employer s contribution requirement). Timing of the Valuation An actuarial valuation to determine the Total Pension Liability is required to be performed at least every two years. The Net Pension Liability and pension expense should be measured as of the pension plan s fiscal year end (measurement date) on a date that is within the employer s prior fiscal year. If the actuarial valuation used to determine the Total Pension Liability is not calculated as of the measurement date, the Total Pension Liability is required to be rolled forward from the actuarial valuation date to the measurement date. The Total Pension Liability shown in this report is based on an actuarial valuation performed as of December 31, 2015 and a measurement date of December 31,

13 Section A Single Discount Rate benefit payments are required to be discounted to their actuarial present values using a Single Discount Rate that reflects: (1) a long-term expected rate of return on pension plan investments (to the extent that the plan s Fiduciary Net Position is projected to be sufficient to pay benefits); and (2) tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of this valuation, the expected rate of return on pension plan investments is 7.50%; the municipal bond rate is 3.57% (based on the weekly rate closest to but not later than the measurement date of the state & local bonds rate from Federal Reserve statistical release (H.15)); and the resulting Single Discount Rate is 7.5%. 6

14 SECTION B FINANCIAL STATEMENTS Financial Statements Auditor s Note This information is intended to assist in preparation of the financial statements of the Gogebic County Employees Retirement System. Financial statements are the responsibility of management, subject to the auditor s review. Please let us know if the auditor recommends any changes. 7

15 Section B STATEMENT OF FIDUCIARY NET POSITION AS OF DECEMBER 31, 2015 General County Road Commission Medical Care Facility Mental Health Grand View Hospital TOTAL Assets Cash and Deposits $ 152,029 $ 75,858 $ 145,710 $ 129,312 $ 1,288 $ 504,197 Receivables Investments Accounts Receivable - Sale of Investments $ - $ - $ - $ - $ - $ - Accrued Interest and Other Dividends Contributions Accounts Receivable - Other Total Receivables $ - $ - $ - $ - $ - $ - Fixed Income $ 2,504,266 $ 1,249,552 $ 2,400,177 $ 2,130,061 $ 21,218 $ 8,305,274 Equities 9,404,683 4,692,646 9,013,780 7,999,366 79,686 31,190,161 Real Estate 689, , , ,153 5,839 2,285,457 Other Total Investments $ 12,598,077 $ 6,286,051 $ 12,074,441 $ 10,715,580 $ 106,743 $ 41,780,892 Total Assets $ 12,750,106 $ 6,361,909 $ 12,220,151 $ 10,844,892 $ 108,031 $ 42,285,089 Liabilities Payables Accounts Payable - Purchase of Investments $ - $ - $ - $ - $ - $ - Accounts Payable - Other Accrued Expenses 4,428 2,209 4,244 3, ,685 Total Liabilities $ 4,428 $ 2,209 $ 4,244 $ 3,766 $ 38 $ 14,685 Net Position Restricted for Pensions $ 12,745,678 $ 6,359,700 $ 12,215,907 $ 10,841,126 $ 107,993 $ 42,270,404 7

16 Section B STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR YEAR ENDED DECEMBER 31, 2015 General County Road Commission Medical Care Facility Mental Health Grand View Hospital TOTAL Additions Contributions Employer $ 630,493 $ 453,909 $ 472,188 $ 1,094,316 $ - $ 2,650,906 Employee 80,205 18,833 85, , ,527 Other Investment Income Total Contributions $ 710,698 $ 472,742 $ 557,503 $ 1,232,490 $ - $ 2,973,433 Net Appreciation in Fair Value of Investments $ - $ - $ - $ - $ - $ - Interest and Dividends (455,583) (231,046) (444,101) (383,269) (4,241) (1,518,239) Less Investment Expense (52,065) (25,979) (49,901) (44,285) (441) (172,671) Net Investment Income $ (507,648) $ (257,025) $ (494,002) $ (427,554) $ (4,682) $ (1,690,910) Other $ - $ - $ - $ - $ - $ - Total Additions $ 203,050 $ 215,717 $ 63,501 $ 804,936 $ (4,682) $ 1,282,523 Deductions Benefit Payments, including Refunds of Employee Contributions $ 1,124,628 $ 691,105 $ 719,518 $ 856,217 $ 18,801 $ 3,410,269 Pension Plan Administrative Expense 29,978 14,958 28,732 25, ,422 DROP Reimbursement , ,539 Total Deductions $ 1,154,606 $ 706,063 $ 748,250 $ 1,048,255 $ 19,055 $ 3,676,230 Net Increase in Net Position $ (951,556) $ (490,346) $ (684,749) $ (243,319) $ (23,737) $ (2,393,707) Net Position Restricted for Pensions Beginning of Year $ 13,697,234 $ 6,850,046 $ 12,900,656 $ 11,084,445 $ 131,730 $ 44,664,111 End of Year $ 12,745,678 $ 6,359,700 $ 12,215,907 $ 10,841,126 $ 107,993 $ 42,270,404 8

17 SECTION C REQUIRED SUPPLEMENTARY INFORMATION Required Supplementary Information Auditor s Note This information is intended to assist in preparation of the financial statements of the Gogebic County Employees Retirement System. Financial statements are the responsibility of management, subject to the auditor s review. Please let us know if the auditor recommends any changes. 9

18 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION EXPENSE GENERAL COUNTY A. Expense 1. Service Cost $ 411, Interest on the Total Pension Liability 1,431, Current-Period Benefit Changes 0 4. Employee Contributions (made negative for addition here) (80,205) 5. Earnings on Plan Investments (made negative for addition here) (1,010,646) 6. Pension Plan Administrative Expense 29, Other Changes in Plan Fiduciary Net Position 0 8. Recognition of Outflow (Inflow) of Resources due to Liabilities (107,423) 9. Recognition of Outflow (Inflow) of Resources due to Assets 303, Total Pension Expense $ 978,262 9

19 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT REPORTING PERIOD FISCAL YEAR ENDED DECEMBER 31, 2015 GENERAL COUNTY A. Outflows (Inflows) of Resources due to Liabilities 1. Difference between expected and actual experience of the Total Pension Liability (gains) or losses $ (144,841) 2. Assumption Changes (gains) or losses $ (356,117) 3. Recognition period for Liabilities: Average of the expected remaining service lives of all employees {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense for the difference between expected and actual experience of the Total Pension Liability $ (31,059) 5. Outflow (Inflow) of Resources to be recognized in the current pension expense for assumption changes $ (76,364) 6. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Liabilities $ (107,423) 7. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for the difference between expected and actual experience of the Total Pension Liability $ (113,782) 8. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for assumption changes $ (279,753) 9. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Liabilities $ (393,535) B. Outflows (Inflows) of Resources due to Assets 1. Net difference between projected and actual earnings on pension plan investments (gains) or losses $ 1,518, Recognition period for Assets {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense due to Assets $ 303, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Assets $ 1,214,635 10

20 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT AND PRIOR REPORTING PERIODS FISCAL YEAR ENDED DECEMBER 31, 2015 GENERAL COUNTY A. Outflows and Inflows of Resources due to Liabilities and Assets to be Recognized in Current Pension Expense Outflows Inflows Net Outflows of Resources of Resources of Resources 1. Due to Liabilities $ - $ 107,423 $ (107,423) 2. Due to Assets 303, , Total $ 303,659 $ 107,423 $ 196,236 B. Outflows and Inflows of Resources by Source to be Recognized in Current Pension Expense Outflows Inflows Net Outflows of Resources of Resources of Resources 1. Differences between expected and actual experience $ - $ 31,059 $ (31,059) 2. Assumption Changes - 76,364 (76,364) 3. Net Difference between projected and actual earnings on pension plan investments 303, , Total $ 303,659 $ 107,423 $ 196,236 C. Deferred Outflows and Deferred Inflows of Resources by Source to be Recognized in Future Pension Expenses Deferred Outflows Deferred Inflows Net Deferred Outflows of Resources of Resources of Resources 1. Differences between expected and actual experience $ - $ 113,782 $ (113,782) 2. Assumption Changes - 279,752 (279,752) 3. Net Difference between projected and actual earnings on pension plan investments 1,214,635-1,214, Total $ 1,214,635 $ 393,534 $ 821,101 D. Deferred Outflows and Deferred Inflows of Resources by Year to be Recognized in Future Pension Expenses Year Ending December 31 Net Deferred Outflows of Resources 2016 $ 196, , , , Thereafter - Total $ 821,101 11

21 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS MULTIYEAR GENERAL COUNTY Ultimately 10 Fiscal Years will be displayed Fiscal year ending December 31, Total Pension Liability Service Cost $ 411,585 $ 419,625 Interest on the Total Pension Liability 1,431,314 1,380,650 Benefit Changes - - Difference between Expected and Actual Experience (144,841) (20,558) Assumption Changes (356,117) - Benefit Payments (1,076,022) (1,070,137) Refunds & Other Distributions (48,606) (5,578) Net Change in Total Pension Liability 217, ,002 Total Pension Liability - Beginning 19,440,717 18,736,715 Total Pension Liability - Ending (a) $ 19,658,030 $ 19,440,717 Plan Fiduciary Net Position Employer Contributions $ 630,493 $ 642,549 Employee Contributions 80,205 72,868 Pension Plan Net Investment Income (507,648) 362,783 Benefit Payments (1,076,022) (1,070,137) Refunds (48,606) (5,578) Pension Plan Administrative Expense (29,978) (89,042) Other - - Net Change in Plan Fiduciary Net Position (951,556) (86,557) Plan Fiduciary Net Position - Beginning 13,697,234 13,783,791 Plan Fiduciary Net Position - Ending (b) $ 12,745,678 $ 13,697,234 Net Pension Liability - Ending (a) - (b) 6,912,352 5,743,483 Plan Fiduciary Net Position as a Percentage of Total Pension Liability % % Covered-Employee Payroll $ 2,954,942 $ 2,848,571 Net Pension Liability as a Percentage of Covered-Employee Payroll % % Notes to Schedule: N/A 12

22 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE NET PENSION LIABILITY MULTIYEAR GENERAL COUNTY Ultimately 10 Fiscal Years will be displayed Total Plan Net Position Net Pension Liability FY Ending Pension Plan Net Net Pension as a % of Total Covered as a % of December 31, Liability Position Liability Pension Liability Payroll Covered Payroll 2014 $ 19,440,717 $ 13,697,234 $ 5,743, % $ 2,848, % 2015 $ 19,658,030 $ 12,745,678 $ 6,912, % $ 2,954, % 13

23 Section C SCHEDULE OF CONTRIBUTIONS MULTIYEAR GENERAL COUNTY Ultimately 10 Fiscal Years will be displayed Actuarially Contribution Actual Contribution FY Ending Determined Actual Deficiency Covered as a % of December 31, Contribution Contribution (Excess) Payroll Covered Payroll 2014 $ 642,549 $ 642,549 $ - $ 2,848, % 2015 $ 630,493 $ 630,493 $ - $ 2,954, % 14

24 Section C NOTES TO SCHEDULE OF CONTRIBUTIONS GENERAL COUNTY Valuation Date: December 31, 2015 Notes Actuarially determined contribution rates are calculated as of December 31, which is 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Level Percentage of Payroll, Closed 23 years Investment Rate of Return 7.50% Retirement Age Mortality 5-Year smoothed market; 20% corridor 3.50% wage inflation; 2.75% price inflation 3.50% to 8.0% including inflation Experience-based table of rates that are specific to the type of eligibility condition. The RP-2000 Mortality table (combined healthy), projected to 2017 using projection scale BB, set back 0 years for men and 0 years for women. At the date of adoption, mortality rates were adjusted to include margin for five years of future life improvement. Last updated for the 2012 valuation. Other Information: Notes The wage inflation assumption was decreased from 4.50% to 3.50% and the Disability minimum benefit to age 60 was reduced from 16% to 15%. 15

25 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION EXPENSE ROAD COMMISSION A. Expense 1. Service Cost $ 203, Interest on the Total Pension Liability 745, Current-Period Benefit Changes 0 4. Employee Contributions (made negative for addition here) (18,833) 5. Earnings on Plan Investments (made negative for addition here) (505,004) 6. Pension Plan Administrative Expense 14, Other Changes in Plan Fiduciary Net Position 0 8. Recognition of Outflow (Inflow) of Resources due to Liabilities (104,831) 9. Recognition of Outflow (Inflow) of Resources due to Assets 152, Total Pension Expense $ 487,790 16

26 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT REPORTING PERIOD FISCAL YEAR ENDED DECEMBER 31, 2015 ROAD COMMISSION A. Outflows (Inflows) of Resources due to Liabilities 1. Difference between expected and actual experience of the Total Pension Liability (gains) or losses $ (301,378) 2. Assumption Changes (gains) or losses $ (100,503) 3. Recognition period for Liabilities: Average of the expected remaining service lives of all employees {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense for the difference between expected and actual experience of the Total Pension Liability $ (78,615) 5. Outflow (Inflow) of Resources to be recognized in the current pension expense for assumption changes $ (26,216) 6. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Liabilities $ (104,831) 7. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for the difference between expected and actual experience of the Total Pension Liability $ (222,763) 8. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for assumption changes $ (74,287) 9. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Liabilities $ (297,050) B. Outflows (Inflows) of Resources due to Assets 1. Net difference between projected and actual earnings on pension plan investments (gains) or losses $ 762, Recognition period for Assets {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense due to Assets $ 152, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Assets $ 609,623 17

27 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT AND PRIOR REPORTING PERIODS FISCAL YEAR ENDED DECEMBER 31, 2015 ROAD COMMISSION A. Outflows and Inflows of Resources due to Liabilities and Assets to be Recognized in Current Pension Expense Outflows Inflows Net Outflows of Resources of Resources of Resources 1. Due to Liabilities $ - $ 104,831 $ (104,831) 2. Due to Assets 152, , Total $ 152,406 $ 104,831 $ 47,575 B. Outflows and Inflows of Resources by Source to be Recognized in Current Pension Expense Outflows Inflows Net Outflows of Resources of Resources of Resources 1. Differences between expected and actual experience $ - $ 78,615 $ (78,615) 2. Assumption Changes - 26,216 (26,216) 3. Net Difference between projected and actual earnings on pension plan investments 152, , Total $ 152,406 $ 104,831 $ 47,575 C. Deferred Outflows and Deferred Inflows of Resources by Source to be Recognized in Future Pension Expenses Deferred Outflows Deferred Inflows Net Deferred Outflows of Resources of Resources of Resources 1. Differences between expected and actual experience $ - $ 222,763 $ (222,763) 2. Assumption Changes - 74,286 (74,286) 3. Net Difference between projected and actual earnings on pension plan investments 609, , Total $ 609,623 $ 297,049 $ 312,574 D. Deferred Outflows and Deferred Inflows of Resources by Year to be Recognized in Future Pension Expenses Year Ending December 31 Net Deferred Outflows of Resources 2016 $ 47, , , , Thereafter - Total $ 312,574 18

28 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS MULTIYEAR ROAD COMMISSION Ultimately 10 Fiscal Years will be displayed Fiscal year ending December 31, Total Pension Liability Service Cost $ 203,945 $ 181,541 Interest on the Total Pension Liability 745, ,706 Benefit Changes - - Difference between Expected and Actual Experience (301,378) 111,104 Assumption Changes (100,503) - Benefit Payments (685,481) (692,203) Refunds (5,624) (14,005) Net Change in Total Pension Liability (143,892) 307,143 Total Pension Liability - Beginning 10,178,894 9,871,751 Total Pension Liability - Ending (a) $ 10,035,002 $ 10,178,894 Plan Fiduciary Net Position Employer Contributions $ 453,909 $ 347,757 Employee Contributions 18,833 16,272 Pension Plan Net Investment Income (257,025) 184,701 Benefit Payments (685,481) (692,203) Refunds (5,624) (14,005) Pension Plan Administrative Expense (14,958) (44,530) Other - - Net Change in Plan Fiduciary Net Position (490,346) (202,008) Plan Fiduciary Net Position - Beginning 6,850,046 7,052,054 Plan Fiduciary Net Position - Ending (b) $ 6,359,700 $ 6,850,046 Net Pension Liability - Ending (a) - (b) 3,675,302 3,328,848 Plan Fiduciary Net Position as a Percentage of Total Pension Liability % % Covered-Employee Payroll $ 1,335,178 $ 1,429,111 Net Pension Liability as a Percentage of Covered-Employee Payroll % % Notes to Schedule: N/A 19

29 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE NET PENSION LIABILITY MULTIYEAR ROAD COMMISSION Ultimately 10 Fiscal Years will be displayed Total Plan Net Position Net Pension Liability FY Ending Pension Plan Net Net Pension as a % of Total Covered as a % of December 31, Liability Position Liability Pension Liability Payroll Covered Payroll 2014 $ 10,178,894 $ 6,850,046 $ 3,328, % $ 1,429, % 2015 $ 10,035,002 $ 6,359,700 $ 3,675, % $ 1,335, % 20

30 Section C SCHEDULE OF CONTRIBUTIONS MULTIYEAR ROAD COMMISSION Ultimately 10 Fiscal Years will be displayed Actuarially Contribution Actual Contribution FY Ending Determined Actual Deficiency Covered as a % of December 31, Contribution Contribution (Excess) Payroll Covered Payroll 2014 $ 347,757 $ 347,757 $ - $ 1,429, % 2015 $ 453,909 $ 453,909 $ - $ 1,335, % 21

31 Section C NOTES TO SCHEDULE OF CONTRIBUTIONS ROAD COMMISSION Valuation Date: December 31, 2015 Notes Actuarially determined contribution rates are calculated as of December 31, which is 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Level Percentage of Payroll, Closed 23 years Investment Rate of Return 7.50% Retirement Age Mortality 5-Year smoothed market; 20% corridor 3.50% wage inflation; 2.75% price inflation 3.50% to 8.0% including inflation Experience-based table of rates that are specific to the type of eligibility condition. The RP-2000 Mortality table (combined healthy), projected to 2017 using projection scale BB, set back 0 years for men and 0 years for women. At the date of adoption, mortality rates were adjusted to include margin for five years of future life improvement. Last updated for the 2012 valuation. Other Information: Notes The wage inflation assumption was decreased from 4.50% to 3.50% and the Disability minimum benefit to age 60 was reduced from 16% to 15%. 22

32 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION EXPENSE MEDICAL CARE FACILITY A. Expense 1. Service Cost $ 416, Interest on the Total Pension Liability 1,087, Current-Period Benefit Changes 0 4. Employee Contributions (made negative for addition here) (85,315) 5. Earnings on Plan Investments (made negative for addition here) (960,396) 6. Pension Plan Administrative Expense 28, Other Changes in Plan Fiduciary Net Position 0 8. Recognition of Outflow (Inflow) of Resources due to Liabilities (63,448) 9. Recognition of Outflow (Inflow) of Resources due to Assets 290, Total Pension Expense $ 714,843 23

33 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT REPORTING PERIOD FISCAL YEAR ENDED DECEMBER 31, 2015 MEDICAL CARE FACILITY A. Outflows (Inflows) of Resources due to Liabilities 1. Difference between expected and actual experience of the Total Pension Liability (gains) or losses $ 87, Assumption Changes (gains) or losses $ (376,805) 3. Recognition period for Liabilities: Average of the expected remaining service lives of all employees {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense for the difference between expected and actual experience of the Total Pension Liability $ 19, Outflow (Inflow) of Resources to be recognized in the current pension expense for assumption changes $ (82,754) 6. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Liabilities $ (63,448) 7. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for the difference between expected and actual experience of the Total Pension Liability $ 68, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for assumption changes $ (294,051) 9. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Liabilities $ (225,452) B. Outflows (Inflows) of Resources due to Assets 1. Net difference between projected and actual earnings on pension plan investments (gains) or losses $ 1,454, Recognition period for Assets {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense due to Assets $ 290, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Assets $ 1,163,518 24

34 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT AND PRIOR REPORTING PERIODS FISCAL YEAR ENDED DECEMBER 31, 2015 MEDICAL CARE FACILITY A. Outflows and Inflows of Resources due to Liabilities and Assets to be Recognized in Current Pension Expense Outflows Inflows Net Outflows of Resources of Resources of Resources 1. Due to Liabilities $ 19,306 $ 82,754 $ (63,448) 2. Due to Assets 290, , Total $ 310,186 $ 82,754 $ 227,432 B. Outflows and Inflows of Resources by Source to be Recognized in Current Pension Expense Outflows Inflows Net Outflows of Resources of Resources of Resources 1. Differences between expected and actual experience $ 19,306 $ - $ 19, Assumption Changes - 82,754 (82,754) 3. Net Difference between projected and actual earnings on pension plan investments 290, , Total $ 310,186 $ 82,754 $ 227,432 C. Deferred Outflows and Deferred Inflows of Resources by Source to be Recognized in Future Pension Expenses Deferred Outflows Deferred Inflows Net Deferred Outflows of Resources of Resources of Resources 1. Differences between expected and actual experience $ 68,600 $ - $ 68, Assumption Changes - 294,050 (294,050) 3. Net Difference between projected and actual earnings on pension plan investments 1,163,518-1,163, Total $ 1,232,118 $ 294,050 $ 938,068 D. Deferred Outflows and Deferred Inflows of Resources by Year to be Recognized in Future Pension Expenses Year Ending December 31 Net Deferred Outflows of Resources 2016 $ 227, , , , Thereafter - Total $ 938,068 25

35 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS MULTIYEAR MEDICAL CARE FACILITY Ultimately 10 Fiscal Years will be displayed Fiscal year ending December 31, Total Pension Liability Service Cost $ 416,549 $ 427,258 Interest on the Total Pension Liability 1,087,841 1,050,359 Benefit Changes - - Difference between Expected and Actual Experience 87,905 (271,948) Assumption Changes (376,805) - Benefit Payments (710,216) (643,843) Refunds (9,302) (37,762) Net Change in Total Pension Liability 495, ,064 Total Pension Liability - Beginning 14,656,029 14,131,965 Total Pension Liability - Ending (a) $ 15,152,001 $ 14,656,029 Plan Fiduciary Net Position Employer Contributions $ 472,188 $ 464,736 Employee Contributions 85,315 84,727 Pension Plan Net Investment Income (494,002) 342,734 Benefit Payments (710,216) (643,843) Refunds (9,302) (37,762) Pension Plan Administrative Expense (28,732) (83,864) Other - - Net Change in Plan Fiduciary Net Position (684,749) 126,728 Plan Fiduciary Net Position - Beginning 12,900,656 12,773,928 Plan Fiduciary Net Position - Ending (b) $ 12,215,907 $ 12,900,656 Net Pension Liability - Ending (a) - (b) 2,936,094 1,755,373 Plan Fiduciary Net Position as a Percentage of Total Pension Liability % % Covered-Employee Payroll $ 4,702,067 $ 4,559,126 Net Pension Liability as a Percentage of Covered-Employee Payroll % % Notes to Schedule: N/A 26

36 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE NET PENSION LIABILITY MULTIYEAR MEDICAL CARE FACILITY Ultimately 10 Fiscal Years will be displayed Total Plan Net Position Net Pension Liability FY Ending Pension Plan Net Net Pension as a % of Total Covered as a % of December 31, Liability Position Liability Pension Liability Payroll Covered Payroll 2014 $ 14,656,029 $ 12,900,656 $ 1,755, % $ 4,559, % 2015 $ 15,152,001 $ 12,215,907 $ 2,936, % $ 4,702, % 27

37 Section C SCHEDULE OF CONTRIBUTIONS MULTIYEAR MEDICAL CARE FACILITY Ultimately 10 Fiscal Years will be displayed Actuarially Contribution Actual Contribution FY Ending Determined Actual Deficiency Covered as a % of December 31, Contribution Contribution (Excess) Payroll Covered Payroll 2014 $ 464,736 $ 464,736 $ - $ 4,559, % 2015 $ 472,188 $ 472,188 $ - $ 4,702, % 28

38 Section C NOTES TO SCHEDULE OF CONTRIBUTIONS MEDICAL CARE FACILITY Valuation Date: December 31, 2015 Notes Actuarially determined contribution rates are calculated as of December 31, which is 12 months prior to the beginning of the fiscal year in which contributions are reported. Methods and Assumptions used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Level Percentage of Payroll, Closed 23 years Investment Rate of Return 7.50% Retirement Age Mortality 5-Year smoothed market; 20% corridor 3.50% wage inflation; 2.75% price inflation 3.50% to 8.0% including inflation Experience-based table of rates that are specific to the type of eligibility condition. The RP-2000 Mortality table (combined healthy), projected to 2017 using projection scale BB, set back 0 years for men and 0 years for women. At the date of adoption, mortality rates were adjusted to include margin for five years of future life improvement. Last updated for the 2012 valuation. Other Information: Notes The wage inflation assumption was decreased from 4.50% to 3.50% and the Disability minimum benefit to age 60 was reduced from 16% to 15%. 29

39 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PENSION EXPENSE MENTAL HEALTH A. Expense 1. Service Cost $ 300, Interest on the Total Pension Liability 1,227, Current-Period Benefit Changes 0 4. Employee Contributions (made negative for addition here) (138,174) 5. Earnings on Plan Investments (made negative for addition here) (838,242) 6. Pension Plan Administrative Expense 25, Other Changes in Plan Fiduciary Net Position 0 8. Recognition of Outflow (Inflow) of Resources due to Liabilities (24,361) 9. Recognition of Outflow (Inflow) of Resources due to Assets 253, Total Pension Expense $ 806,225 30

40 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT REPORTING PERIOD FISCAL YEAR ENDED DECEMBER 31, 2015 MENTAL HEALTH A. Outflows (Inflows) of Resources due to Liabilities 1. Difference between expected and actual experience of the Total Pension Liability (gains) or losses $ 137, Assumption Changes (gains) or losses $ (215,482) 3. Recognition period for Liabilities: Average of the expected remaining service lives of all employees {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense for the difference between expected and actual experience of the Total Pension Liability $ 43, Outflow (Inflow) of Resources to be recognized in the current pension expense for assumption changes $ (67,704) 6. Outflow (Inflow) of Resources to be recognized in the current pension expense due to Liabilities $ (24,361) 7. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for the difference between expected and actual experience of the Total Pension Liability $ 94, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses for assumption changes $ (147,778) 9. Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Liabilities $ (53,174) B. Outflows (Inflows) of Resources due to Assets 1. Net difference between projected and actual earnings on pension plan investments (gains) or losses $ 1,265, Recognition period for Assets {in years} Outflow (Inflow) of Resources to be recognized in the current pension expense due to Assets $ 253, Deferred Outflow (Inflow) of Resources to be recognized in future pension expenses due to Assets $ 1,012,637 31

41 Section C SCHEDULES OF REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF OUTFLOWS AND INFLOWS ARISING FROM CURRENT AND PRIOR REPORTING PERIODS FISCAL YEAR ENDED DECEMBER 31, 2015 MENTAL HEALTH A. Outflows and Inflows of Resources due to Liabilities and Assets to be Recognized in Current Pension Expense Outflows Inflows Net Outflows of Resources of Resources of Resources 1. Due to Liabilities $ 43,343 $ 67,704 $ (24,361) 2. Due to Assets 253, , Total $ 296,502 $ 67,704 $ 228,798 B. Outflows and Inflows of Resources by Source to be Recognized in Current Pension Expense Outflows Inflows Net Outflows of Resources of Resources of Resources 1. Differences between expected and actual experience $ 43,343 $ - $ 43, Assumption Changes - 67,704 (67,704) 3. Net Difference between projected and actual earnings on pension plan investments 253, , Total $ 296,502 $ 67,704 $ 228,798 C. Deferred Outflows and Deferred Inflows of Resources by Source to be Recognized in Future Pension Expenses Deferred Outflows Deferred Inflows Net Deferred Outflows of Resources of Resources of Resources 1. Differences between expected and actual experience $ 94,604 $ - $ 94, Assumption Changes - 147,778 (147,778) 3. Net Difference between projected and actual earnings on pension plan investments 1,012,637-1,012, Total $ 1,107,241 $ 147,778 $ 959,463 D. Deferred Outflows and Deferred Inflows of Resources by Year to be Recognized in Future Pension Expenses Year Ending December 31 Net Deferred Outflows of Resources 2016 $ 228, , , , Thereafter - Total $ 959,463 32