The URL can be used to link to this page

Home My WebLink About2009 10 27 Regular 602 Distributed To Board Of Trustees For Gabriel Roeder Smith & Company's PresentationDate: October 27, 2009 This document was distributed to the Board of Trustees at the October 27, 2009 Regular Meeting during Regular Agenda Item 602. ACTUARIAL SERVICES FOR THE CITY OF WINTER SPRINGS ww,-1 October 27, 2009 Larry Wilson Pete Strong Gabriel Roeder Smith Company GRS Consultants Actuaries www.gabirielroeder.com Copyright 2009 GRS All rights reserved. io The GRS Story Owned and operated by its Employees Incorporated in 1962 in Michigan Partnership and Sole Proprietorship Founded in 1938 Full Spectrum Employee Benefits Consulting Firm Governmental Employers —Our Primary Business State of Florida Presence (Fort Lauderdale) Fee for Services Only No Products to Sell Approximately 120 GRS Employees 40 Consulting Actuaries Credentialed Personnel Specializing in Computer Technology and Communication GRS Public Sector Market Leader GRS is the largest provider of pension and healthcare consulting services to the public sector in the United States We provide actuarial and benefit consulting services to over 600 public sector clients nationally We serve as the actuary to over 40 statewide retirement and healthcare plans Nearly 100% of our client base is in the public sector Our Florida experience and client list is second to none Research Capabilities GRS is the recognized expert for the public sector At GRS, public sector clients aren't a "line of business" they ARE our business GRS GRS Our Firm's Experience Frequent speakers and active participants in public sector meetings and task forces: FMPOFRTF FPPTA NCPERS NCTR NASRA GFOA GASB IFEBP GRS Your GRS Team Larry Wilson, ASA Primary Consulting Actuary Overall responsibility for all aspects of GRS' services Pete Strong, ASA Consultant and Valuation Actuary Jennifer Borregard t Senior Analyst Alex Smith Valmiki Ramsewak Analyst Analyst G16 GRS Your Team's Experience *Experience with a wide range of special topics ►Changing trends in assumptions ►DROPs ►PLOPs ►Ad hoc COLAs Do- Plan redesigns Do-Problems of underfunded systems GRS Florida Pension Experience 1 *Within the last three (3) years GRS has provided actuarial and benefit consulting services to over 160 public retirement systems in the State of Florida. GRS 101 GRS Research Group GRS is unique among our competitors in supporting research specifically related to public- sector pension and retiree health care plans We are dedicated to providing clear and concise information on a regular basis through print and electronic formats We have hands -on experience in applying our research to address public retirement issues —our approach is practical and based on the long -term perspective We have on -line access to information related to plan design, federal regulations, accounting standards and other technical topics GRS Recent GRS Research Projects NCPERS Assisting with position paper on financial economics (FE) Updated evolution of public pension plans study SOA Pension Section News Summarized Academy /SOA FE Roundtable IRC 415 Summary Summarized 415 final regulations related to public plans Helped draft response related to 415 proposed regulations MERS OPEB Survey Collaborated on survey of local government OPEB plans NASRA With Keith Brainard, drafted response to Chicago Federal Reserve Board regarding public plans GRS Actuarial Services Actuarial Valuation Data Preparation and Reconciliation Determination of Plan Liabilities and Asset Values Calculation of Plan Costs Measurement of Financial Soundness of System GASB Accounting Expense Disclosure Compliance with the Florida Protection of Public Employees Retirement Benefits Act and Chapters 175 and 185 Attend meetings with the Board to review Actuarial Reports 1� GRS 1 Actuarial Services Prepare Annual Employee Benefit Statements Prepare Individual Retirement, Death, Disability and Vested Calculations Prepare Pension Service Time Buy -back Calculations Prepare Biannual Summary Plan Description Perform Actuarial Studies and Prepare Actuarial Impact Statements Review Plan mortality tables used to calculate 11 actuarial equivalent benefit options GRS Actuarial Services Ad Hoc Calculations and Analysis Actuarial Impact Statements for Benefit Structure Changes Advice and Counsel on Plan and Benefit Structures Respond to Inquiries from the State regarding Actuarial Valuation Report Review of Plan Design Meeting City Goals Benefits Costs Team with Other Retained Professionals to Ensure Efficient Plan Administration 12 GL%,0 t, 0 Fees •Fees and Basic Services Actuarial Valuation including attendance at a Retirement Board meeting to present the results and respond to any questions Respond to any inquiries from the State Telephone conversations on issues that may affect our Actuarial Valuations Reports or other services that do not result in a work assignment Prepare annual employee benefit statements $8,862 Per Year •Fee guaranteed for two years thereafter increasing by cost of living (CPI) 13 GL%'O t, 0 Fees *Summary Plan Description ($1,950) •Benefit Determinations Preparation of Benefit Calculations ($300) Preparation of Pension Service Buy -back Calculations ($400) Process Documents for Terminating and Retiring Employees ($150) *Special Consulting Services Special Studies Review Plan Design to Ensure the Program is meeting the goals of the City Fee Quoted Up -Front Not -to- Exceed Basis 14 GRS Transition Plan •Board Provides Available Background Material Copy of Plan Documents or Governing Ordinances Statutes Copy of most recent Summary Plan Description (SPD) Employee Census Data as of October 1, 2008 and census data prior to October 1, 2008 (generally available from prior firm) GRS Evaluates Background Material •Board Requests Additional Needed Information and /or Files From Prior Firm GRS Transition Plan GRS Re- Performs Most Recently Completed Actuarial Valuation (as of October 1, 2007 or October 1, 2008) to Test Results Any Significant Differences Resolved GRS Prepares Required Reports for Subsequent Actuarial Valuations As Needed or Desired, GRS Meets with Board and /or Prior Firm to Ensure a Smooth Transition Pension Board /City Will Not Incur GRS Fees for Any Work Related to the Transition GRS Why GRS? Quality Timelines Public Sector Consulting Leadership Independent Employee -owned Firm Your GRS Team's Experience with Public Sector Plans in Florida Strong Board Communication Firm Stability Credibility Fair Price 17 GRS Larry Wilson Larry Wilson is a Senior Consultant and Actuary with Gabriel, Roeder, Smith Company. Prior to joining GRS, Larry worked as a Consulting Actuary and Director of Public Plan Practice in the Boca Raton, Florida, office of a national consulting firm. Mr. Wilson has over 25 years of employee benefits consulting experience for public pension retirement systems, corporations and tax exempt organizations. His responsibilities have included valuations for funding and accounting purposes, cost analyses of proposed plan changes, experience studies, actuarial audits, stochastic projections, ERISA reporting and disclosure and defined contribution plan allocations. Larry is a Member (and former Chair) of the Public Plans Subcommittee of the American Academy of Actuaries and a founding Member of the Public Plans Committee of the Conference of Consulting Actuaries. He is a frequent guest speaker at meetings of employee benefit professionals, including the Enrolled Actuaries Meeting and the Florida Public Pension Trustees Association. He was a speaker on OPEB GASB requirements at a recent Stars and Stripes forum and is scheduled to speak at the 41s' Annual Police Officers' and Firefighters' Pension Conference sponsored by the State of Florida Department of Management Services Division of Retirement on October 21 -23, 2009. Larry is active in the community, serving as a frequent volunteer and a member of the YATC Advisory Board. In the past, his community commitments have included serving as Broward County's Director for the Project MEGSSS Program for secondary mathematics education. Mr. Wilson is an Associate of the Society of Actuaries (A.S.A.), a Member of the American Academy of Actuaries (M.A.A.A.), a Fellow of the Conference of Consulting Actuaries (F.C.A.) and an Enrolled Actuary (E.A.) under ERISA. Larry holds a Bachelor of Arts degree in mathematics from the State University of New York, Binghamton. 18 GRS Pete Strong Pete is a Consultant in GRS' Fort Lauderdale, Florida, office. He provides actuarial and consulting services for public employee retirement systems and OPEB. Pete is responsible for the preparation and presentation of valuations and plan design studies. His clients include cities, counties, hospitals and public authorities. Pete has over 13 years of actuarial and benefits consulting experience. Early in his career, he gained a strong background in the development of valuation liabilities and modeling techniques for long -term disability programs and life insurance reserve calculations. He further strengthened this valuation and modeling experience while working on middle market pension plans. Pete's pension plan experience includes defined benefit plans and hybrid arrangements, covering plan design features such as final average pay, career average pay, target benefit, and early retirement windows. Pete's actuarial modeling experience also includes asset /liability studies using deterministic and stochastic approaches. His pension plan administration experience includes a thorough understanding of the Pension Protection Act of 2006 and Internal Revenue Code Section 401(a), 410 and 415 testing. Pete has many years of experience with retiree health (OPEB) valuations, derived from providing clients with FAS 106 valuations. This experience has prepared Pete to provide GASB 45 valuations in the public sector. Pete's knowledge of actuarial software is an added strength. In addition to experience with GRS' internal actuarial software, he has many years of experience working with ProVal and other actuarial valuation systems. He also has experience converting actuarial valuations and models from one valuation system to another. His conversion experience is valuable in transitioning new clients in an efficient and timely fashion, including ensuring that initial replication work is produced seamlessly. Mr. Strong is an Associate of the Society of Actuaries (A.S.A.), a Member of the American Academy of Actuaries (M.A.A.A.), a Fellow of the Conference of Consulting Actuaries (F.C.A.) and an Enrolled Actuary under ERISA (E.A.). Pete holds a Bachelor of Science degree in mathematical sciences from the University of North Carolina at Chapel Hill. 19 GRS Discussion GRS