HomeMy WebLinkAbout2010 11 09 Regular 600 Actuarial Valuation As Of October 1, 2009GR Gabriel S Roeder Smith & Company
Consultants & Actuaries
CITY OF WINTER SPRINGS
DEFINED BENEFIT PLAN
ACTUARIAL VALUATION AS OF OCTOBER 1, 2009
This Valuation Determines the Annual Contribution for the Plan Year October 1, 2010 through September 30, 2011 to be
Paid in Plan Year October 1, 2010 to September 30, 2011
September 24, 2010
Gabriel Raeder Smith & Company
City of Winter Springs
Defined Benefit Plan
TABLE OF CONTENTS
Page
Commentary 1
I. Summary of Retirement Plan Costs .................................................. ............................... 4
II. Comparison of Cost Data of Current and Prior Valuations .............. ............................... 6
III. Characteristics of Participants in Actuarial Valuation ..................... ............................... 7
IV. Statement of Assets .......................................................................... ............................... 8
V. Reconciliation of Plan Assets ........................................................... ............................... 9
VI. Actuarial Gains (Losses) ................................................................ ............................... 11
VII. Amortization of Unfunded Actuarial Accrued Liability ................ ............................... 12
VIII. Accounting Disclosure Exhibit ......................................................... .............................13
IX. Outline of Principal Provisions of the Retirement Plan ................. ............................... 17
X. Actuarial Assumptions and Actuarial Cost Methods Used ............ ............................... 20
XI. Distribution of Plan Participants by Attained Age Groups and Service Groups........... 27
XII. Statistics for Participants Entitled to Deferred Benefits and Participants
ReceivingBenefits ......................................................................... ............................... 31
XIII. Reconciliation of Employee Data ................................................... ............................... 32
XIV. Projected Retirement Benefits ........................................................ ............................... 33
XV. Recent Plan Experience .................................................................. ............................... 34
XVI. State Required Exhibit .................................................................... ............................... 36
Gabriel Roeder Smith & Company
Gabriel Roeder Smith & Company one East Broward Blvd. 954.527.1616 phone
GRS Consultants & Actuaries Suite 505 954.525.0083 fax
Ft. Lauderdale, FL 33301 -1804 www.gabrielroe<fer.com
September 24, 2010
Board of Trustees
c/o Mr. Shawn Boyle
Finance and Administrative Services Director
City of Winter Springs Defined Benefit Plan
1126 East State Road 434
Winter Springs, Florida 32708
Dear Board Members:
October 1, 2009 Actuarial Valuation
We are pleased to present our October 1, 2009 Actuarial Valuation for the City of Winter Springs
Defined Benefit Plan (Plan). The purpose of this report is to indicate appropriate contribution
levels, comment on the actuarial stability of the Plan and to satisfy State requirements. The Board
of Trustees has retained Gabriel, Roeder, Smith and Company (GRS) to prepare an annual actuarial
valuation under Section 3.02 of the Plan.
This report consists of this commentary, detailed Tables I through XV and the State Required
Exhibit on Table XVI. The Tables contain basic Plan cost figures plus significant details on the
benefits, liabilities and experience of the Plan. We suggest you thoroughly review the report at
your convenience and contact us with any questions that may arise.
Retirement Plan Costs
Our Actuarial Valuation develops the required minimum Plan payment for the plan year beginning
October 1, 2010 under the Florida Protection of Public Employee Retirement Benefits Act. The
minimum payment consists of payment of annual normal costs including amortization of the
components of the unfunded actuarial accrued liability over various periods as prescribed by law.
The minimum payment is 27.1% of covered payroll ($2,912,511). The figure in parentheses is
the Plan cost expressed as a dollar amount based on projected covered annual payroll for fiscal year
beginning October 1, 2010 ($10,752,720).
This total cost is to be met by member, County and City contributions. We anticipate member
contributions will be 2.6% of covered payroll for fiscal year ending September 30, 2011
($284,852). The resulting minimum required County and City contribution is 24.4% of covered
payroll for fiscal year ending September 30, 2011 ($2,627,659).
Board of Trustees
September 24, 2010
Page 2
Changes in Actuarial Assumptions, Methods and Plan Benefits
The Plan provisions are unchanged from the previous actuarial valuation. Plan provisions are
summarized on Table IX.
The actuarial assumptions and methods are unchanged from the previous actuarial valuation. The
actuarial assumptions and methods are outlined on Table X.
Comparison of October 1, 2008 and October 1, 2009 Valuation Results
Table II of our report provides information of a comparative nature. The left columns of the Table
indicate the costs as calculated for October 1, 2008. The right columns indicate the costs as
calculated for October 1, 2009.
Comparing the left and right columns of Table H shows the effect of Plan experience during the
year. The number of active participants decreased by approximately 4% while covered payroll
decreased by less than 1 %. Total normal cost increased both as a dollar amount and as a percentage
of payroll. The unfunded actuarial accrued liability increased both as a dollar amount and as a
percentage of covered payroll. The net County and City minimum funding requirement increased
both as a dollar amount and as a percentage of covered payroll.
The value of vested accrued benefits exceeds Plan assets, resulting in a Vested Benefit Security
Ratio (VBSR) of 61.2% which is a decrease from 64.6% as of the October 1, 2008 Actuarial
Valuation. The VBSR is measured on a market value basis.
Plan Experience
The Plan experienced an actuarial loss in the amount of $2,804,664 this year. This indicates actual
overall Plan experience was less favorable than expected.
Table XV (salary, turnover and investment yield) provides figures on recent Plan experience.
Salary experience indicates actual salary increases averaged approximately 6.4% for General
Employees and 11.6% for Firefighters and Police Officers for the Plan Year ended September 30,
2009. Salary experience was generally a source of actuarial loss.
Employee turnover this year was 110% of the assumed turnover for General Employees and 110%
of the assumed turnover for Firefighters and Police Officers. Employee turnover was generally a
minor offsetting source of actuarial gain.
The actuarial value investment return of 3.5% was less than the investment return assumption of
8.0 %. Investment return was an additional source of actuarial loss during the year. The three and
Gabriel Roeder Smith & Company
Board of Trustees
September 24, 2010
Page 3
five year average annual actuarial value investment returns are 9.6% and 8.5% respectively. The
one, three and five year average annual market value returns are 2.1 %, -1.1 % and 3.2 %,
respectively.
Member Census and Financial Data
The City submitted the Member census data used for this actuarial valuation to us. This
information contains name, Social Security number, date of birth, date of hire, October 1, 2009 rate
of pay, actual salary paid and member contributions for the previous year. Dates of termination and
retirement are provided where applicable. The Board updated information on inactive participants
including retirees, beneficiaries and vested terminees.
We used financial information concerning Plan assets from the City's Comprehensive Annual
Financial Report (CAFR). We do not audit the Member census data and asset information that is
provided to us. However, we perform certain reasonableness checks and on this basis we believe
that the information that we received is reliable.
Summary
In our opinion the benefits provided for under the current Plan will be sufficiently funded through
the payment of the amount as indicated in this and future Actuarial Valuation reports. We will
continue to update you on the future payment requirements for the Plan through our actuarial
reports. These reports will also continue to monitor the future experience of the Plan.
The undersigned are Members of the American Academy of Actuaries and meet the qualification
standards of the American Academy of Actuaries to render the actuarial opinions contained in this
report. We are available to respond to any questions with regards to matters covered in this report.
Very truly yours,
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
1 A ,
Peter N. Strong, A.S.A.
Consultant and Actuary
Gabriel Roeder Smith & Company
Table I
City of Winter Springs
Defined Benefit Plan
Summary of Retirement Plan Costs as of October 1, 2009
Cost % of
Data Payroll
A. Participant Data Summary (Table III)
1. Active Employees 221 N/A
2. Terminated Vested 92 N/A
3. Receiving Benefits (including DROPS) 41 N/A
4. Total Annual Payroll of Active Employees $ 10,752,720 100.0%
B. Total Normal Costs
1. Age Retirement Benefits
$
1,009,378
9.4%
2. Termination Benefits
189,196
1.8%
3. Death Benefits
31,055
0.3%
4. Disability Benefits
10,354
0.1%
5. Estimated Expenses
116,982
1.1%
6. Total Annual Normal Costs
$
1,356,965
12.6%
C. Total Actuarial Accrued Liability
1. Age Retirement Benefits Active Employees
$
23,819,533
221.5%
2. Termination Benefits Active Employees
1,175,076
10.9%
3. Death Benefits Active Employees
737,288
6.9%
4. Disability Benefits Active Employees
1,027,138
9.6%
5. Retired or Terminated Vested Participants
Receiving Benefits (including DROPS)
6,858,478
63.8%
6. Terminated Vested Participants Entitled to
Future Benefits
2,611,419
24.3%
7. Deceased Participants Whose Beneficiaries
are Receiving Benefits
1,399,684
13.0%
8. Disabled Participants Receiving Benefits
0
0.0%
9. Miscellaneous Liability (Refunds in Process)
22,401
0.2%
10. Total Actuarial Accrued Liability
$
37,651,017
350.2%
D. Assets (Table V)
1. Actuarial Value of Assets
$
20,788,655
193.3%
2. Market Value of Assets
$
17,323,879
161.1%
E. Unfunded Actuarial Accrued Liability
(C. - D.1.)
$
16,862,362
156.8%
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Gabriel Roeder Smith & Company
Table I
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Summary of Retirement Plan Costs as of October 1, 2009
J. Actuarial Present Value of Vested Accrued Benefits
1. Retired, Terminated Vested, Beneficiaries
Cost
% of
S 8,258,162
76.8%
Data
Payroll
F. Minimum Required Contribution
Future Benefits and Miscellaneous
2,633,820
24.5%
1. Total Normal Cost (including expenses)
$
1,356,965
12.6%
2. Amortization of Unfunded Liability
1,423,345
13.2%
3. Interest Adjustment
K. Unfunded Actuarial Present Value of Vested
132,201
1.2%
4. Total Payment
$
2,912,511
27.1%
G. Expected payroll of active employees for 2010/2011 year
$
10,752,720
100.0%
H. Contribution Sources (percent of expected 2010/2011 payroll)
1. County and City
$
2,627,659
24.4%
2. Member
284,852
2.6%
3. Total required contribution
$
2,912,511
27.1%
1. Actuarial Gains (Losses)
$
(2,804,664)
(26.1 %)
J. Actuarial Present Value of Vested Accrued Benefits
1. Retired, Terminated Vested, Beneficiaries
and Disabled Receiving Benefits (including DROPs)
S 8,258,162
76.8%
2. Terminated Vested Participants Entitled to
Future Benefits and Miscellaneous
2,633,820
24.5%
3. Active Participants Entitled to Future Benefits
17,431,855
162.1%
4. Total Actuarial Present Value of Vested
Accrued Benefits
$ 28,323,837
263.4%
K. Unfunded Actuarial Present Value of Vested
Accrued Benefits Q. - D.2., not less than zero)
$ 10,999,958
102.3%
L. Vested Benefit Security Ratio (D.2. - J.)
61.2%
N/A
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Gabriel Roeder Smith & Company
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Gabriel Ruet4er Smith 6C Cumpany
Table II
City
of Winter Springs
Defined Benefit Plan
Comparison of Cost Data of October 1, 2008 and October 1, 2009 Valuations
October 1, 2008
October 1, 2009
Cost %
of
Cost
% of
Data Compensation
Data
Compensation
A.
Participants
1. Active Employees
231
N/A
221
N/A
2. Terminated Vested
84
N/A
92
N/A
3. Receiving Benefits
31
N/A
41
N/A
4. Total Annual Payroll of Active Employees
$
10,767,596
100.0%
$
10,752,720
100.0%
B.
Total Normal Costs
$
1,387,362
12.9%
$
1,356,965
12.6%
C.
Actuarial Accrued Liability
$
32,414,255
301.0%
$
37,651,017
350.2%
D.
Present Value of Future Benefits
$
43,401,442
403.1%
$
48,530,001
451.3%
E.
Actuarial Value of Assets
$
18,746,975
174.1%
$
20,788,655
193.3%
F.
Market Value of Assets
$
15,622,479
145.1%
$
17,323,879
161.1%
G.
Unfunded Actuarial Accrued Liability
$
13,667,280
126.9%
$
16,862,362
156.8%
H.
County and City Minimum Funding Payment
$
2,331,360
21.7%
$
2,627,659
24.4%
I.
Vested Benefit Security Ratio
64.6%
N/A
61.2%
N/A
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Gabriel Ruet4er Smith 6C Cumpany
Table III
City of Winter Springs
Defined Benefit Plan
Characteristics of Participants in
Actuarial Valuation as of October 1, 2009
A. Active Plan Participants Summary
1. Active participants fully vested
2. Active participants partially vested
3. Active participants non - vested
4. Total active participants
5. Annual rate of pay of active participants
B. Retired and Terminated Vested Participant Summary
1. Retired or terminated vested participants receiving
benefits (including DROPS)
2. Terminated vested participants entitled to
future benefits
3. Deceased participants whose beneficiaries are
receiving benefits
4. Disabled participants receiving benefits
C. Projected Annual Retirement Benefits
125
69
27
221
$ 10,752,720
M
92
7
0
1. Retired or terminated vested receiving benefits (including DROPS) $ 642,856
2. Terminated vested entitled to future benefits $ 687,722
3. Beneficiaries of deceased participants $ 127,919
4. Disabled participants $ 0
IN
Gabriel Roeder Smith & Company
Table IV
City of Winter Springs
Defined Benefit Plan
Statement of Assets as of October 1, 2009
Assets Market Value
A. Cash and Cash Equivalents $ 342,009
B. General Investments
1. Common Stocks $ 10,806,520
2. Bonds 6,087,443
C. Receivables
1. Accrued Interest $ 0
2. Member Contributions Receivable 87,907
3. Accounts Receivable 0
D. Payables
1. Accounts Payable $ 0
2. Due to Broker 0
E. Plan Assets
(A + B + C - D) $ 17,323,879
11:1
Gabriel Roeder Smith & Company
Table V
City of Winter Springs
Defined Benefit Plan
Reconciliation of Plan Assets
A. Total Market Value of Assets as of October 1, 2008 $ 15,622,479
B. Receipts During Period
1. Contributions
a. Member $ 306,420
b. City and County 1,781,197
c. Total $ 2,087,617
2. Investment Income
a. Interest and dividends $ 163,200
b. Realized gains /(losses) (2,664,309)
c. Unrealized gains /(losses) 2,849,148
d. Net investment income $ 348,039
3. Total receipts during period S 2,435,656
C. Disbursements Duriniz Period
1. Pension payments $ 606,832
2. Contribution refunds 10,442
3. Administrative expenses 116,982
4. Total disbursements during period $ 734,256
D. Total Market Value of Assets as of September 30, 2009 $ 17,323,879
191
Gabriel Roeder Smith & Company
Table V
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Development of Actuarial Value of Assets as of September 30
A. Preliminary total actuarial value from prior year
B. Market value beginning of year
C. Market value end of year
D. Non - investment net cash flow
E. Investment return
1. Total market value return: C. - B. - D.
2. Amount for immediate recognition (8 %)
3. Amount for phased -in recognition: E.1. - E.2.
F. Phased -in recognition of investment return:
1. Current year: 20% of E.3.
2. First prior year
3. Second prior year
4. Third prior year
5. Fourth prior year
6. Total phased -in recognition of investment return
G. Total actuarial value end of year
1. Preliminary total actuarial value end of year:
A. + D. + E.2. + F.5.
2. Upper corridor limit: 120% of C.
3. Lower corridor limit: 80% of C.
4. Total actuarial value end of year:
G.1., not more than G.2., nor less than G.3.
H. Difference between total market value and total actuarial value
L Actuarial value rate of return
J. Market value rate of return
2009
$ 18,759,317
15,622,479
17,323,879
1,353,361
2010 2011 2012
$ 21,409,499
17,323,879
2013
348,039
1,303,933
(955,894)
(191,179)
(885,152)
(191,179)
480,905
(885,152)
(191,179)
346,980
480,905
(885,152) (191,179)
241,334
346,984
480,907 (885,153) (191,178)
(7,112)
(248,442)
(595,424) (1,076,332) (191,178)
21,409,499
20,788,655
13,859,103
20,788,655
(3,464,776)
3.5%
2.1%
-to-
Gabriel Roeder Smith & Company
Table VI
City of Winter Springs
Defined Benefit Plan
Actuarial Gains (Losses) for
Plan Year Ending September 30, 2009
A. Derivation of Actuarial Gain (Loss)
1. City and County net normal cost
$
1,064,334
2. Unfunded actuarial accrued liability
13,667,280
3. City and County contributions previous year
1,781,197
4. Interest on:
(a) City and County net normal cost
$
85,147
(b) Unfunded actuarial accrued liability
1,093,382
(c) City and County contributions
71,248
(d) Net total: (a) + (b) - (c)
$
1,107,281
5. Expected unfunded actuarial accrued liability current year:
(1. + 2. - 3. + 4.)
$
14,057,698
6. Actual unfunded actuarial accrued liability current year
16,862,362
7. Actuarial gain (loss): (5. - 6.)
$
(2,804,664)
B. Approximate Portion of Gain (Loss)
Due to Investments
1. Actuarial value of assets previous year $ 18,746,975
2. Contributions during period 2,087,617
3. Benefits and administrative expenses during period 734,256
4. Expected appreciation for period 1,553,893
5. Expected actuarial value of assets current year:
(1. + 2. - 3. + 4.) $ 21,654,229
6. Actual actuarial value of assets current year $ 20,788,655
7. Approximate investment gain (loss): (6. - 5.) $ (865,574)
C. Approximate Portion of Gain (Loss)
Due to Liabilities: A. - B. $ (1,939,090)
NNE
Gabriel Roeder Smith & Company
Table VII
City of Winter Springs
Defined Benefit Plan
Amortization of Unfunded Actuarial Accrued Liability
A. Unfunded Actuarial Accrued Liability
B. Covered Payroll History*
Covered
Unfunded
Amortization
Date
Increase
Liability
$ 10,752,720
Payment
October 1, 2008
October 1, 2009
$
16,862,362
$
1,423,345
October 1, 2010
$
16,674,138
$
1,423,345
October 1, 2011
$
16,470,856
$
1,423,345
October 1, 2012
$
16,251,312
$
1,423,345
October 1, 2013
$
16,014,204
$
1,423,345
October 1, 2039
$
0
$
0
B. Covered Payroll History*
* Information prior to October 1, 2008 as reported by prior actuary.
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Gabriel Roeder Smith & Company
Covered
Annual
Date
Payroll
Increase
October 1, 2009
$ 10,752,720
(0.1 %)
October 1, 2008
$ 10,767,596
(3.8 %)
October 1, 2007
$ 11,190,013
6.7%
October 1, 2006
$ 10,489,087
8.6%
October 1, 2005
$ 9,659,446
7.5%
October 1, 2004
$ 8,982,189
11.0%
October 1, 2003
$ 8,094,829
22.9%
October 1, 2002
$ 6,586,077
0.3%
October 1, 2001
$ 6,569,263
N/A
Eight Year Average Annual Increase
6.4%
* Information prior to October 1, 2008 as reported by prior actuary.
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Gabriel Roeder Smith & Company
Table VIII
City of Winter Springs
Defined Benefit Plan
Accounting Disclosure Exhibit
I. Number of Plan Members
a. Retirees and beneficiaries receiving benefits
b. Terminated plan members entitled to but not yet receiving benefits
c. Active plan members
d. Total
H. Financial Accounting Standards Board Allocation as of October 1, 2009
A. Statement of Accumulated Plan Benefits
1. Actuarial present value of accumulated vested plan benefits
a. Participants currently receiving benefits
b. Other participants
c. Total
2. Actuarial present value of accumulated
non - vested plan benefits
3. Total actuarial present value of accumulated plan benefits
B. Statement of Change in Accumulated Plan Benefits
1. Actuarial present value of accumulated plan benefits
as of October 1, 2008
2. Increase (decrease) during year attributable to:
a. Plan amendment
b. Change in actuarial assumptions
c. Benefits paid including refunds
d. Other, including benefits accumulated, increase
for interest due to decrease in the discount period
e. Net increase
3. Actuarial present value of accumulated plan benefits
as of October 1, 2009
C. Significant Matters Affecting Calculations
1. Assumed rate of return used in determining actuarial present values
2. Change in plan provisions
3. Change in actuarial assumptions
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10/01/2008
31
84
231
10 /01 /2009
41
92
221
346
354
$ 5,383,427 $ 8,258,162
18,789,474 20,065,675
$ 24,172,901 $ 28,323,837
$ 525,243 $ 489,901
$ 24,698,144 $ 28,813,738
$ 24,698,144
$ 0
0
(617,274)
4,732,868
$ 4,115,594
$ 28,813,738
8.0%
None.
None.
Gabriel Roeder Smith & Company
Table VIII
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Accounting Disclosure Exhibit
III. Annual Pension Cost For the Current Year and Related Information:
Contribution rates:
City
Members
Actuarial valuation date
Annual pension cost
Contributions made
Actuarial cost method
Amortization method
Remaining amortization period
21.7%
2.6%
October 1, 2009
$ 2,331,410
To be determined
Entry Age Normal
Level percent, closed
30 years
Asset valuation method 5 year smoothed market
Actuarial assumptions:
Investment rate of return * 8.0%
Projected salary increases * 3.0%-7.5%
* Includes expected inflation at 3.0%
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Gabriel Roeder Smith & Company
Table VIII
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Accounting Disclosure Exhibit
IV. Historical Trend Information
A. Schedule of Emblover Costs (GASB No. 25
Fiscal Year
Annual Required
Percentage of
Ended
Contribution (ARC)
ARC Contributed
09/30/2004
% 1,156,923
88%
09/30/2005
S 1,424,101
89%
09/30/2006
S 1,564,228
96%
09/30/2007
S
1,807,722
102%
09/30/2008
S
2,005,100
100%
09/30/2009
S
1,781,651
100%
B. Schedule of Employer
Costs (GASB No. 27)
Fiscal Year
Annual Pension
Percentage of
Ended
Cost (APC)
APC Contributed
09/30/2004
S
1,133,309
89%
09/30/2005
S
1,410,081
89%
09/30/2006
S
1,562,165
96%
09/30/2007
S
1,810,230
102%
09/30/2008
S
2,004,975
100%
09/30/2009
S
1,781,197
100%
V. Annual Pension Cost and Net Pension Asset
Fiscal Year Ended
Annual Required Contribution (ARC)
Interest on Net Pension Asset (NPA)
Adjustment to ARC
APC
City Contributions
(Increase) Decrease in NPA
NPA (beginning of year)
NPA (end of year)
9/30/2009*
$ 1,781,651
(454)
0
$ 1,781,197
$ (1,781,197)
$ 0
(5,673)
$ (5,673)
Net Pension
Oblitiation/(Asset
$ (175,246)
$ (25,791)
$ 31,354
$ (1,563)
$ (5,673)
$ (5,673)
9/30/2010
$ 2,331,360
(454)
504
$ 2,331,410
* As reported in Comprehensive Annual Financial Report (CAFR)
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Gabriel Roeder Smith & Company
Table VIII
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Schedule of Funding Progress
(Dollar Amounts in Thousands)
VL Schedule of Funding Progress'
I Information prior to October 1, 2008 as reported by prior actuary.
2 Frozen Initial Liability prior to change in method as of October 1, 2008
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Gabriel Roeder Smith &c Company
Actuarial Accrued
Unfunded
UAAL as a
Actuarial
Liability (EAN
AAL
Funded
Percentage of
Actuarial
Value
of Assets
(AAL)
(UAAL)
Ratio
Payroll
Payroll
Valuation Date
(a)
(b)
(b - a)
(a/b)
(c)
((b -a) /c)
10/01/2004
$
8,135
$
10,932
$
2,797
74.4%
$
8,982
31.1%
10/01/2005
$
9,716
$
13,178
$
3,462
73.7%
S
9,659
35.8%
10/01/2006
$
11,951
$
16,043
$
4,092
74.5%
$
10,489
39.0%
10/01/2007
$
15,527
$
20,114
$
4,587
77.2%
$
11,190
41.0%
10/01/2008
$
18,747
$
32,414
$
13,667
57.8%
$
10,768
126.9%
10/01/2009
$
20,789
$
37,651
$
16,862
55.2%
$
10,753
156.8%
I Information prior to October 1, 2008 as reported by prior actuary.
2 Frozen Initial Liability prior to change in method as of October 1, 2008
-16-
Gabriel Roeder Smith &c Company
Table IX
City of Winter Springs
Defined Benefit Plan
Outline of Principal Provisions of the Retirement Plan
A. Effective Date
Plan adopted as a Money Purchase Floor Offset plan on October 1, 1997. Plan amended and
restated as a Defined Benefit Plan effective October 1, 2000. Plan most recently amended by
Resolution 2007 -20 effective April 23, 2007.
B. Eli ig bility Requirements
Employees working 30 or more hours per week are eligible to join the Plan on the first day of the
month following completion of six (6) months of service.
C. Accrual Service
Years of Accrual Service are any Plan Year during which an Employee completes at least 1,000
hours of service, including years of service completed prior to participation in the Plan.
D. Total Compensation
Wages, salaries and other amounts received (whether or not paid in cash) for personal services
actually rendered in the course of employment. This includes but is not limited to commissions,
overtime pay and bonuses.
E. Final Average Compensation
Average earnings during the three (3) highest consecutive compensation periods during
employment with the City.
F. Normal Retirement
1. Eligibility:
(a) Attainment of age 65; or
(b) Completion of 30 years of service and determined to be disabled under the City's long term
disability insurance policy.
2. Benefit:
3.00% times Final Average Compensation multiplied by Accrual Service, up to a maximum of
30 years.
-17-
Gabriel Roeder Smith & Company
Table IX
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Outline of Principal Provisions of the Retirement Plan
G. Early Retirement
1. Eligibility:
(a) Attainment of age 55 and completion of ten (10) years of service; or
(b) Completion of 25 years of service.
2. Benefit:
Benefit accrued to date of early retirement, actuarially reduced for each year early retirement
benefit commencement precedes age 55.
H. Late Retirement
1. Eli ig bility:
Continued employment beyond Normal Retirement Date.
2. Benefit:
Greater of (a) and (b):
(a) Accrued benefit calculated as for Normal Retirement based upon service and pay at Late
Retirement Date.
(b) Actuarially increased benefit as of Late Retirement Date.
I. Disabilitv Retirement
1. Eligibility:
Completion of 30 years of service and determined to be disabled under the City's long term
disability insurance policy.
2. Benefit:
3.00% times Final Average Compensation multiplied by Accrual Service.
J. Death Benefit
Beneficiary entitled to a monthly benefit supported by the present value of the non - forfeitable
accrued benefit at the time of the participant's death. If death occurs after actual retirement, the
beneficiary receives whatever is payable under the form of benefit option elected.
-18-
Gabriel Roeder Smith & Company
Table IX
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Outline of Principal Provisions of the Retirement Plan
K. Participant Contributions
Three percent (3 %) of compensation for General Employees and Police Officers.
L. Vested Benefit Upon Termination
100% vested in required participant contributions. Participant contributions made after October 1,
2000 are included in the deferred vested benefit payable at normal or early retirement date.
Upon termination of service prior to normal or early retirement date a participant shall be entitled
to a benefit payable at normal or early retirement date calculated as for normal retirement. Based
on pay and service at date of termination multiplied by a percentage from the following table.
Years of Service Vested Percentage
Less Than 3 0%
3 20%
66 4 40%
5 60%
6 80%
7 100%
M. Normal Form of Payment of Retirement Income
Monthly benefit payable for life.
Other Options
Actuarially equivalent joint and survivor at 50 %, 75 %, 100 %; or ten (10) years certain and life.
N. Changes Since Previous Valuation
None.
Sol
Gabriel Roeder Smith & Company
Table X
City of Winter Springs
Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
A. Mortality
For healthy General Employee participants, the RP -2000 Combined Mortality Table was used with
separate rates for males and females and fully generational mortality improvements projected to each
future decrement date.
For healthy Firefighter and Police Officer participants, the RP -2000 Combined Mortality Table with
Blue Collar Adjustment was used with separate rates for males and females and fully generational
mortality improvements projected to each future decrement date.
For disabled participants, the RP -2000 Combined Disabled Mortality Table was used with separate rates
for males and females and fully generational mortality improvements projected to each future decrement
date.
B. Investment Return
8.0 %, compounded annually, net of investment expenses.
C. Allowances for Expenses or Contin eg ncies
Prior year's actual administrative expenses are included in Normal Cost.
D. Salary Increase Factors
Current salary is assumed to increase at a rate based on the table below per year until retirement.
-20-
Gabriel Roeder Smith & Company
General
Firefighters and
Service
Employees
Police Officers
Less than 5 years
6.5%
7.5%
5 - 9 years
5.5%
5.5%
10 - 14 years
4.5%
5.5%
15+ years
3.0%
3.5%
-20-
Gabriel Roeder Smith & Company
Table X
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
E. Employee Withdrawal Rates
1. Withdrawal rates for male General Employees were used in accordance with the following illustrative example:
2. Withdrawal rates for female General Employees were used in accordance with the following illustrative example:
Withdrawal Rates per 100 Employees
Service
7ARe
0
1
2
3
4
5
6
_
8
9
10+
32.8
25.4
22.7
18.4
15.8
11.7
11.1
11.1
11.0
10.0
9.8
25
27.2
18.5
17.2
14.6
12.7
9.7
8.5
8.4
7.7
6.3
6.2
30
25.8
15.4
14.0
13.2
11.8
8.8
7.8
7.1
6.4
5.5
4.7
35
25.8
14.3
12.8
12.6
10.9
8.5
7.5
6.8
6.2
5.3
4.2
40
24.4
12.6
12.0
10.7
9.0
7.4
6.7
6.2
5.8
5.3
3.0
45
24.4
12.5
11.6
10.3
8.8
6.8
6.5
6.0
5.1
5.1
2.7
50
23.4
12.2
10.7
9.4
7.9
6.0
5.5
5.3
4.6
4.6
3.0
55
27.4
12.2
10.7
9.3
7.8
6.8
5.4
5.2
4.4
4.3
4.5
60
27.4
12.2
10.7
9.3
7.8
6.8
5.4
5.1
4.3
4.2
5.3
65
27.4
12.2
10.7
9.3
7.8
6.8
5.4
5.1
4.3
4.2
3.7
2. Withdrawal rates for female General Employees were used in accordance with the following illustrative example:
The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2009 Florida Retirement System (FRS)
Actuarial Valuation.
-21-
Gabriel Roeder Smith & Company
Withdrawal Rates per 100 Employ
Service
Age
120
0
1
2
3
4
5
6
7
8
9
10+
30.3
25.8
22.1
17.4
15.4
13.5
11.4
11.3
10.5
10.2
11.6
25
26.6
19.8
17.1
13.0
12.9
10.7
9.7
9.2
7.8
7.1
5.3
30
25.4
16.9
14.5
11.6
11.3
9.4
8.7
8.1
7.1
6.5
5.4
35
25.4
15.9
13.5
11.2
10.9
9.0
8.0
7.8
6.8
6.2
4.6
40
24.4
14.0
12.1
10.0
9.1
7.0
6.5
6.3
6.1
5.0
3.3
45
24.4
13.9
11.9
9.8
8.8
6.7
6.5
6.1
5.8
4.7
3.0
50
23.2
13.4
11.0
8.8
8.4
6.2
5.9
5.5
5.5
4.6
3.0
55
23.2
13.4
11.0
8.7
8.3
6.1
5.8
5.4
5.4
4.5
3.0
60
23.2
13.4
11.0
8.7
8.3
6.1
5.8
5.4
5.4
4.5
3.0
65
23.2
13.4
11.0
8.7
8.3
6.1
5.8
5.4
5.4
4.5
3.0
The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2009 Florida Retirement System (FRS)
Actuarial Valuation.
-21-
Gabriel Roeder Smith & Company
Table X
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
E. Employee Withdrawal Rates (continued)
3. Withdrawal rates for male Firefighters and Police Officers were used in accordance with the following illustrative example:
4. Withdrawal rates for female Firefighters and Police Officers were used in accordance with the following illustrative
45
21.3
10.2
Withdrawal Rates per 100 Employ
Service
7.6
7.0
6.1
7 AARe
0
1
2
3
4
5
6
7
8
9
10+
Age
21.4
10.3
8.6
8.4
7.5
5.3
5.2
3.1
2.9
2.6
2.3
25
20.6
9.8
8.1
7.9
7.0
5.3
5.2
3.1
2.9
2.6
2.3
30
20.6
9.5
7.7
7.5
6.7
5.3
5.2
3.1
2.9
2.6
2.1
35
20.6
8.8
7.4
7.2
6.5
5.3
5.1
3.1
2.9
2.6
2.0
40
20.6
8.0
6.8
6.7
6.0
4.8
4.6
3.1
2.9
2.6
1.9
45
20.6
7.3
6.0
6.0
5.5
4.3
4.1
3.1
2.9
2.6
1.8
50
20.6
6.5
5.3
5.3
5.0
3.8
3.6
3.1
2.9
2.6
1.8
55
20.6
5.8
4.7
4.7
4.6
3.3
3.2
3.1
2.9
2.6
1.8
60
20.6
5.3
4.7
4.7
4.6
3.3
3.2
3.1
2.9
2.6
1.8
65
20.6
5.3
4.7
4.7
4.6
3.3
3.2
3.1
2.9
2.6
1.8
4. Withdrawal rates for female Firefighters and Police Officers were used in accordance with the following illustrative
The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2009 FRS Actuarial Valuation.
- 22-
Gabriel Roeder Smith & Company
45
21.3
10.2
Withdrawal Rates per 100 Employ
7.6
7.0
6.1
5.9
5.0
mp�
4.1
2.5
Service
21.3
9.2
6.6
6.6
6.4
Age
0
1
2
3
4
5
6
7
8
9
10+
20
21.3
15.5
12.3
10.3
9.7
6.1
5.9
5.0
4.2
4.2
1.9
25
21.3
14.2
11.6
9.8
9.2
6.1
5.9
5.0
4.2
4.2
1.9
30
21.3
13.2
10.6
9.3
8.7
6.1
5.9
5.0
4.2
4.2
1.7
35
21.3
12.2
9.6
8.8
8.4
6.1
5.9
5.0
4.2
4.1
1.5
40
21.3
11.2
8.6
8.3
7.6
6.1
5.9
5.0
4.1
4.1
2.5
The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2009 FRS Actuarial Valuation.
- 22-
Gabriel Roeder Smith & Company
45
21.3
10.2
7.6
7.6
7.0
6.1
5.9
5.0
4.1
4.1
2.5
50
21.3
9.2
6.6
6.6
6.4
6.1
5.9
5.0
4.1
4.0
1.6
55
21.3
8.4
5.8
5.6
5.4
5.3
5.1
5.0
4.1
4.0
4.0
60
21.3
8.4
5.8
5.6
5.4
5.3
5.1
5.0
4.1
4.0
4.0
65
21.3
8.4
5.8
5.6
5.4
5.3
5.1
5.0
4.1
4.0
4.0
The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2009 FRS Actuarial Valuation.
- 22-
Gabriel Roeder Smith & Company
Table X
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
F. Disability Rates
1. Line -of -duty disability rates for General Employees were used in accordance with the following
illustrative example.
A e
Male
Female
20
0.002%
0.000%
25
0.002%
0.001%
30
0.003%
0.001%
35
0.005%
0.003%
40
0.009%
0.005%
45
0.014%
0.008%
50
0.022%
0.010%
55
0.034%
0.016%
L0 6
6
0.048%
0.022%
0.050%
0.020%
2. Non -duty disability rates for General Employees were used in accordance with the following illustrative
example.
we
Male
Femal
rMF20
0.000%
0.000%
25
0.027%
0.010%
30
0.053%
0.026%
35
0.066%
0.049%
40
0.092%
0.070%
45
0.122%
0.114%
50
0.203%
0.184%
55
0.339%
0.294%
60
0.445%
0.419%
ke 65
0.215%
0.105%
The disability assumptions are the disability assumptions used in the July 1, 2009 FRS Actuarial Valuation.
-23-
Gabriel Roeder Smith & Company
Table X
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
F. Disability Rates (continued)
3. Line -of -duty disability rates for Firefighters and Police Officers were used in accordance with the
following illustrative example.
4. Non -duty disability rates for Firefighters and Police Officers were used in accordance with the following
illustrative example.
Awe
Male
Female
20
r
0.012%
0.008%
25 Awe
0.012%
0.008%
30
0.017%
0.016%
35
0.029%
0.037%
40
0.051%
0.068%
45
0.087%
0.106%
50
0.138%
0.153%
55
0.215%
0.152%
L0.301%
60
6
0.206%
0.151%
65
0.231%
0.143%
4. Non -duty disability rates for Firefighters and Police Officers were used in accordance with the following
illustrative example.
Awe
Male
Femal
20
0.037%
0.036%
25
0.037%
0.036%
30
0.043%
0.046%
35
0.055%
0.075%
40
0.087%
0.118%
45
0.140%
0.209%
50
0.292%
0.254%
55
0.244%
0.328%
60
0.206%
0.328%
ke 65
0.206%
0.328%
The disability assumptions are the disability assumptions used in the July 1, 2009 FRS Actuarial Valuation.
-24-
Gabriel Roeder Smith & Company
Table X
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
G. Assumed Retirement Abe
Retirement rates were used in accordance with the following tables.
1. For members with less than ten (10) years of service:
General Firefighters and
Age Employees Police Officers
Under 65 0% 0%
65 and above 100% 100%
2. For members with ten (10) or more years, but less than twenty -five (25) years of service:
General Firefighters and
7-5564 e Employees Police Officers
10% 20%
65 and above 100% 100%
3. For members with twenty -five (25) or more years of service:
-25-
Gabriel Roeder Smith & Company
General
Firefighters and
Awe
Employees
Police Officers
Under 55
2%
5%
55
25%
50%
56-64
5%
20%
65 and above
100%
100%
-25-
Gabriel Roeder Smith & Company
Table X
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
H. Marital Assumptions
1. 100% of active members are assumed to be married.
2. Females are assumed to be three (3) years younger than their male spouses.
I. Interest on Future Participant Contributions
3.75 %, compounded annually.
J. Asset Valuation Method
The method used for determining the actuarial value of assets phases in the deviation between the
expected and actual return on assets at the rate of 20% per year. The actuarial value of assets will be
further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair
market value of plan assets and whose upper limit is 120% of the fair market value of plan assets.
K. Cost Method
Normal Retirement, Termination, Disability, and Death Benefits: Entry Age Normal Cost Method
Under this method the normal cost for each active employee is the amount which is calculated to be a
level percentage of pay that would be required annually from his entry age to his assumed retirement
age to fund his estimated benefits, assuming the Fund had always been in effect. The normal cost for
the Fund is the sum of such amounts for all employees. The actuarial accrued liability as of any
valuation date for each active employee or inactive employee who is eligible to receive benefits under
the Fund is the excess of the actuarial present value of estimated future benefits over the actuarial
present value of current and future normal costs. The unfunded actuarial accrued liability as of any
valuation date is the excess of the actuarial accrued liability over the assets of the Fund.
L. Changes Since Previous Valuation
None.
-26-
Gabriel Roeder Smith & Company
Table XI
Attained
Age Group
Under 25
25 -29
30 -34
35 -39
40 -44
45 -49
50 -54
55 -59
60 -64
65 & Over
TOTAL
City of Winter Springs
Defined Benefit Plan
Distribution by Attained Age Groups
and Service Groups as of October 1, 2009
Firefighters
------------------------------------ - - - - -- COMPLETED YEARS OF SERVICE------------------------------------------
0-4 5 -9 10 -14 15 -19 20 -24 25 -29 30 & Over Total
- - - - - - - 0
- - - - - - - 0
1 - - - - - 1
- - - - - - 0
- 1 - 1 - - - 2
1 4 2 1 - 8
1 1 1 1 2 6
- - - - - 0
- - - - - - - 0
- - - - - - - 0
0 2
2 6 3
10/01/2008
46.04 years
27.39 years
$ 60,367
0.0%
2 2 17
10/01/2009
47.04 years
27.39 years
$ 73,980
0.0%
Average Attained Age
Average Hire Age
Average Pay
Percent Female
_Z7_
Gabriel Roeder Smidi & Company
Table XI
(Cont'd)
-28-
Gabriel Roeder Smidi & Company
City of Winter Springs
Defined Benefit Plan
Distribution by Attained Age Grows
and Service Groups as of October 1, 2009
General Employees
Attained
------------------------------------
- - - - -- COMPLETED YEARS OF SERVICE------------------------------------------
Age Group
00 = 4
55 -
10 -14 15 -19 20 -24
25 -29 30 & Over
Total
Under 25
4
1
- - -
- -
5
25 -29
7
3
- - -
- -
10
30 -34
6
4
3 -
- -
13
35 -39
5
8
5 1 -
- -
19
40 -44
5
1
1 1 -
- -
8
45 -49
10
4
4 1 3
1 -
23
50 -54
2
9
2 9 4
2 -
28
55 -59
2
5
1 - 3
- 1
12
60 -64
2
3
5 - 1
- -
11
65 & Over
1
2
- - 2
1 -
6
TOTAL
44
40
21 12 13
4 1
135
10/01/2008
10/01/2009
Average Attained Age
45.83 years
45.64 years
Average Hire Age
36.79 years
36.41 years
Average Pay
$ 42,213
$ 42,934
Percent Female
35.0%
35.6%
-28-
Gabriel Roeder Smidi & Company
Table XI
(Cont'd)
-29-
Gabriel Roeder Smidi & Company
City of Winter Springs
Defined Benefit Plan
Distribution by Attained Age Groups
and Service Groups as of October 1, 2009
Police Officers
Attained
------------------------------------
- - - - -- COMPLETED YEARS OF SERVICE------------------------------------------
Age Group
00 = 4 55 -
10 -14 15 -19 20 -24
25 -29 30 & Over
Total
Under 25
3 -
- - -
- -
3
25 -29
7 2
- - -
- -
9
30 -34
5 6
3 - -
- -
14
35 -39
4 1
6 1 -
- -
12
40 -44
1 4
4 1 4
- -
14
45 -49
- 2
2 - 1
1 -
6
50 -54
1 1
- - 3
- -
5
55 -59
- 1
1 - 2
- -
4
60 -64
-
2 - -
- -
2
65 & Over
-
- - -
- -
0
TOTAL
21 17
18 2 10
1 0
69
10/01/2008
10/01/2009
Average Attained Age
38.92 years
3 8.7 8 years
Average Hire Age
29.64 years
29.08 years
Average Pay
$ 52,181
$ 53,608
Percent Female
18.3%
15.9%
-29-
Gabriel Roeder Smidi & Company
Table XI
(Cont'd)
-30-
Gabriel Roeder Smidi & Company
City of Winter Springs
Defined Benefit Plan
Distribution by Attained Age Groups
and Service Groups as of October 1, 2009
All Members
Attained
------------------------------------
- - - - -- COMPLETED YEARS OF SERVICE------------------------------------------
Age Group
0 -4
5 -9
10 -14 15 -19 20 -24
25 -29
30 & Over
Total
Under 25
7
1
- - -
-
-
8
25 -29
14
5
- - -
-
-
19
30 -34
11
11
6 - -
-
-
28
35 -39
9
9
11 2 -
-
-
31
40 -44
6
6
5 3 4
-
-
24
45 -49
10
6
7 5 6
3
-
37
50 -54
3
10
3 10 8
3
2
39
55 -59
2
6
2 - 5
-
1
16
60 -64
2
3
7 - 1
-
-
13
65 & Over
1
2
- - 2
1
-
6
TOTAL
65
59
41 20 26
7
3
221
10/01/2008
10/01/2009
Average Attained Age
43.72 years
43.61 years
Average Hire Age
33.90 years
33.43 years
Average Pay
$ 46,613
$ 48,655
Percent Female
27.3%
26.7%
-30-
Gabriel Roeder Smidi & Company
Table XII
City of Winter Springs
Defined Benefit Plan
Statistics for Participants Entitled to Deferred Benefits
and Participants Receiving Benefits
A. Entitled to Deferred Benefits
Current Age
Group
Less than 40
40 -44
45 -49
50 -54
55 -59
60 -64
65 & Over
TOTAL
B. Receiving Benefits
Current Age
Group
Less than 50
50 -54
55 -59
60 -64
65 -69
70 -74
75 & Over
TOTAL
Count
38
17
19
9
3
5
Count
3
1
8
11
9
6
Total
Annual Benefit
$ 253,422
148,988
195,419
65,949
4,213
17,497
2,234
$ 687,722
Total
Annual Benefit
$ 24,124
69,549
181,804
271,721
174,925
34,788
13,864
S 770,775
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Gabriel Roeder Smith & Company
Average
Annual Benefit
$ 6,669
8,764
10,285
7,328
1,404
3,499
2,234
$ 7,475
Average
Annual Benefit
$ 8,041
69,549
22,726
24,702
19,436
5,798
4,621
$ 18,799
Table XIII
City of Winter Springs
Defined Benefit Plan
Reconciliation of Emplovee Data
A. Active Participants
1. Active participants previous year
231
2. Retired during year
(9)
3. Died during year
0
4. Disabled during year
0
5. Terminated non - vested during year
(4)
6. Terminated vested during year
(11)
7. New active participants
15
8. Out on military leave
(1)
9. Rehired during year
0
10. Active participants current year
221
B. Participants Receiving Benefits
1. Participants receiving benefits previous year 31
2. New retired participants 9
3. New terminated vested receiving benefits 1
4. New beneficiaries receiving benefits 0
5. Died or ceased payment during year 0
6. Retired or terminated vested receiving benefits current year 41
C. Terminated Vested Participants Entitled to Future Benefits
1. Terminated vested entitled previous year 84
2. Died during year 0
3. Commenced receiving benefits during year (1)
4. New terminated vested 12
5. Terminated vested paid lump sum (3)
6. Rehired 0
7. Adjustment 0
8. Terminated vested entitled current year 92
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Gabriel Roeder Smith & Company
Table XIV
City of Winter Springs
Defined Benefit Plan
Projected Retirement Benefits
The above projected payout of Plan benefits during the next ten years is based on assumptions
involving all decrements. Actual payouts may differ from the above estimates depending upon the
death, salary and retirement experience of the Plan. However, since the projected payment is
recomputed each valuation date, there is an automatic correction to the extent that actual experience
varies from expected experience.
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Gabriel Roeder Smith & Company
Projected Total
Fiscal Year
Annual Payout
2010
$ 878,928
2011
$ 1,151,065
2012
$ 1,330,634
2013
$ 1,529,774
2014
$ 1,851,163
2015
$ 2,102,520
2016
$ 2,370,380
2017
$ 2,682,132
2018
$ 2,976,994
2019
$ 3,435,668
The above projected payout of Plan benefits during the next ten years is based on assumptions
involving all decrements. Actual payouts may differ from the above estimates depending upon the
death, salary and retirement experience of the Plan. However, since the projected payment is
recomputed each valuation date, there is an automatic correction to the extent that actual experience
varies from expected experience.
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Gabriel Roeder Smith & Company
Table XV
City of Winter Springs
Defined Benefit Plan
Summary of Transaction Information'
Year
Benefits
Administrative
Employee
City
Actuarial
Ending
Paid
Expenses
Contributions
Contributions
Value
09/30/2009
$ 617,274
$ 116,982
$ 306,420
$ 1,781,197
$ 20,788,655
09/30/2008
384,482
70,423
365,288
1,663,951
18,746,975
09/30/2007
233,953
123,197
N/A
1,843,147
15,526,572
09/30/2006
171,697
84,340
N/A
1,505,020
11,951,383
09/30/2005
N/A
N/A
N/A
1,260,627
9,716,089
09/30/2004
140,509
62,225
N/A
1,013,379
8,134,588
09/30/2003
138,353
47,477
N/A
903,748
7,279,048
1 Information prior to September 30, 2008 as reported by prior actuary.
z Includes refunds
3 Values prior to September 30, 2008 include Employee Contributions
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Gabriel Roeder Smith 8c Company
Table XV
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Valuation
10/01/2009
10/01/2008
10/01/2007
10/01/2006
10/01/2005
10/01/2004
Actual
6.4%
3.9%
N/A
N/A
N/A
N/A
Recent Compensation, Termination and Investment Return Experience
Gene Police & Fire General Police & Fire
Compensation
Assumed Rate
Termination
of Return*
3.5%
% Increase / (Decrease)
10.1%
Ratio of Actual
Net Market
Assumed Actual
Assumed
to Expected
4.2%
Value Yield*
5.1% 11.6%
5.3%
1.1
1.1
2.1%
3.0% 5.6%
3.0%
1.2
3.1
(16.8 %)
N/A N/A
N/A
N/A
N/A
13.8%
N/A N/A
N/A
N/A
N/A
8.6%
N/A N/A
N/A
N/A
N/A
11.5%
N/A N/A
N/A
N/A
N/A
12.6%
Net Actuarial
Assumed Rate
Value Yield*
of Return*
3.5%
8.0%
10.1%
8.0%
15.4%
8.0%
9.5%
8.0%
4.2%
8.0%
0.6%
8.0%
Last Years
N/A
N/A
N/A
N/A
N/A
N/A
(1.1 %)
9.6%
8.0%
Last 5 Years
N/A
N/A
N/A
N/A
N/A
N/A
3.2%
8.5%
8.0%
Last 6 Years
N/A
N/A
N/A
N/A
N/A
N/A
4.7%
7.1%
8.0%
* Information prior to October 1, 2008 as reported by prior actuary.
Investment Return
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Gabriel Roeder Smith & Company
Table XVI
City of Winter Springs
Defined Benefit Plan
Actuarial Valuation as of October 1, 2009
State Required Exhibit
10/01/2008 10/01/2009
A. Participant Data
1. Active participants 231 221
2. Retired participants and beneficiaries
receiving benefits 31 41
3. Disabled participants receiving benefits 0 0
4. Terminated vested participants 84 92
5. Annual payroll of active participants S 10,767,596 $ 10,752,720
6. Annual benefits payable to those currently
receiving benefits S 504,444 $ 770,775
B. Value of Assets
1. Actuarial Value $ 18,746,975 $ 20,788,655
2. Market Value $ 15,622,479 $ 17,323,879
C. Liabilities
1. Actuarial present value of future expected
benefit payments for active members
a. Retirement benefits
$
31,544,607
$
32,584,598
b. Vesting benefits
2,960,589
2,924,854
c. Death benefits
973,478
998,687
d. Disability benefits
341,696
1,129,880
e. Total
$
35,820,370
$
37,638,019
2. Actuarial present value of future expected benefit
payments for terminated vested members
$
2,179,784
$
2,611,419
3. Actuarial present value of future expected benefit
payments for members currently receiving benefits
a. Service retired (includes DROPS)
$
3,966,840
$
6,858,478
b. Disability retired
0
0
c. Beneficiaries
1,416,587
1,399,684
d. Miscellaneous (Refunds in Process)
17,861
22,401
e. Total
$
5,401,288
$
8,280,563
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Gabriel Roeder Smith & Company
Table XVI
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Actuarial Valuation as of October 1, 2009
State Required Exhibit
4. Total actuarial present value of future
expected benefit payments
5. Actuarial accrued liabilities
6. Unfunded actuarial accrued liabilities
D. Statement of Accumulated Plan Benefits
1. Actuarial present value of accumulated vested
benefits
a. Participants currently receiving benefits
b. Other participants
c. Total
2. Actuarial present value of accumulated non -
vested plan benefits
3. Total actuarial present value of accumulated
plan benefits
10/01/2008
10/01/2009
$ 43,401,442
$ 48,530,001
$ 32,414,255
$ 37,651,017
$ 13,667,280
$ 16,862,362
$ 5,383,427 $ 8,258,162
18,789,474 20,065,675
$ 24,172,901 $ 28,323,837
525,243 489,901
$ 24,698,144 $ 28,813,738
E. Pension Cost
1. Total normal cost
2. Payment required to amortize unfunded liability
3. Interest adjustment
4. Total required contribution
5. Item 4 as a percentage of base payroll
6. Estimated employee contributions
7. Item 6 as a percentage of base payroll
8. Net amount payable by County and City
9. Item 8 as a percentage of base payroll
$
1,387,362
$
1,356,965
1,147,129
1,423,345
119,897
132,201
$
2,654,388
$
2,912,511
24.7%
27.1%
$
323,028
$
284,852
3.0%
2.6%
$
2,331,360
$
2,627,659
21.7%
24.4%
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Gabriel Roeder Smith & Company
Table XVI
(Cont'd)
City of Winter Springs
Defined Benefit Plan
Actuarial Valuation as of October 1, 2009
State Required Exhibit
F. Past Contributions (Prior Year Valuation)
1. Total contribution required
2. Actual contributions made:
a. Members
b. City
c. Total
G. Disclosure of Following It
1. Actuarial present value of future salaries
- attained age
2. Actuarial present value of future employee
contributions - attained age
3. Actuarial present value of future contributions
from other sources
4. Amount of active members' accumulated
contributions
5. Actuarial present value of future salaries and
future benefits at entry age
6. Actuarial present value of future employee
contributions at entry age
10/01/2008 10/01/2009
$ 2,005,100 $ 2,654,388
$ 306,420 N/A
1,781,197 N/A
$ 2,087,617 N/A
$ 93,841,493 $
94,496,961
$ 2,641,746 $
2,393,429
N/A
N/A
$ 1,948,000 $
2,101,077
N/A
N/A
N/A
N/A
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Gabriel Roeder Smith & Company
Table XVI
(Cont'd)
City of Winter Springs
Defined Benefit Plan
State Required Exhibit
Amortization balances are written down in proportion to amortization payments.
Unfunded Actuarial Accrued Liabilities
10/01/2000
10/01/2002
10/01/2003
10/01/2004
10/01/2005
10/01/2006
10/01/2007
10/01/2008
10/01/2008
10/01/2009
Initial
Assumption Change
Plan Amendment
Plan Amendment
Plan Amendment
Plan Amendment
Plan Amendment
Plan Amendment and Assumption Change
Method Change
Actuarial Loss (Gain)
TOTAL
Current
Remaining
Unfunded
Amortization
Funding
Liabilities
Payment
Period
2,252,060
208,174
21 years
(28,623)
(2,555)
23 years
180,259
15,852
24 years
272,196
23,610
25 years
561,938
48,133
26 years
644,209
54,548
27 years
657,238
55,067
28 years
2,942,191
244,143
29 years
6,576,230
545,696
29 years
2,804,664
230,677
30 years
$ 16,862,362 $ 1,423,345
This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and
I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in
my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII,
Chapter 112, Florida Statutes. There is no benefit or expense to be provided by the plan and/or paid from the plan's
assets for which liabilities or current costs have not been established or other wise provided for in the valuation. All
known events or trends which may require material increase in plan costs or required contribution rates have been taken
into account in the valuation.
Enrollment Number: 08 -02802
Dated: September 24, 2010
Lawrence F. Wilson, A.S.A.
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Gabriel Roeder Smith & Company