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HomeMy WebLinkAbout2011 03 31 Other Winter Springs Defined Benefit Plan Updated March 11, 2011 Date: March 31, 2011 The attached document was provided to the Board of Trustees Members and was discussed during Regular Agenda Item "601" at the Special Meeting of March 31, 2011. GRS Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com March 11, 2011 Mr. Shawn Boyle Finance and Administrative Services Director City of Winter Springs 1126 East State Road 434 Winter Springs, Florida 32708 Re: City of Winter Springs Defined Benefit Plan Actuarial Study as of October 1, 2009 — Phase II Dear Shawn: As requested, we are pleased to enclose six (6) copies of the updated Phase 11 of our Actuarial Study including ten (10) year projections for the City of Winter Springs Defined Benefit Plan. This update reflects additional options for eligibility for the unreduced early retirement benefit. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, jr43/ Lawrence F. Wilson, A.S.A. Peter N. Strong, A.S.A. Senior Consultant and Actuary Consultant and Actuary Enclosures CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 I TABLE OF CONTENTS I Page I. Executive Summary 1 II. Projection Results 11 III. Outline of Principal Provisions of the Retirement Plan 62 IV. Actuarial Assumptions and Cost Methods 65 Gabriel Roeder Smith & Company CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 1 EXECUTIVE SUMMARY 1 At the request of the City of Winter Springs, we have completed ten (10) year projections illustrating the financial impact of several proposed plan provisions of the City of Winter Springs Defined Benefit Plan (Plan). Background — The benefit accrual rate is currently three percent (3.0 %) for each year of credited service - maximum thirty (30) years. Final average salary (FAS) used to calculate retirement benefits is currently the average of the highest three (3) consecutive years of total compensation during employment with the City/ County. Total compensation includes but is not limited to commissions, overtime pay and bonuses. Vesting of benefits is currently phased in from three (3) to seven (7) years at twenty percent (20 %) per year of service — twenty percent (20 %) vesting after three (3) years of service, forty percent (40 %) vesting after four (4) years - grading to one hundred percent (100 %) vesting upon completion of seven (7) years of service. Employees are currently eligible for early retirement benefits upon the earlier of (a) attainment of age fifty -five (55) with completion of ten (10) years of service or (b) completion of twenty -five (25) years of service. Benefits are unreduced if early retirement occurs after attainment of age fifty -five (55). Early retirement benefits are actuarially reduced for benefit commencement prior to age fifty -five (55). Proposed Changes — We understand the City wishes to determine the effect on current and future City and County's Plan contributions of the following proposed changes. > Scenario 1— Reduce the benefit accrual rate to two and a half percent (2.5 %) per year of credited service after September 30, 2009 - maximum thirty (30) years of total service. > Scenario 2 — Change the final average salary (FAS) used to calculate retirement benefits to the average of the highest five (5) consecutive years of basic compensation out of the last ten (10) years - not less than the average of the highest three (3) consecutive years of total compensation as of September 30, 2009. Basic compensation excludes commissions, overtime pay and bonuses. > Scenario 3 — Change the vesting schedule for future benefit accruals to a seven (7) year cliff vesting schedule. Under this schedule, members are zero percent (0 %) vested until completion of seven (7) years of service. Upon completion of seven (7) years of service members are one hundred percent (100 %) vested. Accrued benefits as of September 30, 2009 remain subject to the current graded vesting schedule of twenty percent (20 %) upon completion of three (3) years of service increasing 20% per year until 100% vested upon completion of seven (7) years of service. GRS Gabriel Roeder Smith & Company - 1 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 > Scenario 4 , — Change the unreduced early retirement eligibility for future benefit accruals to: o Scenario 4(a) • For General Employees — eligible upon attainment of age fifty -five (55) with completion of fifteen (15) years of service. • For Police Officers and Firefighters — eligible upon completion of thirty (30) years of service. o Scenario 4(b) • For General Employees — eligible upon attainment of age fifty -five (55) with completion of fifteen (15) years of service. • For Police Officers and Firefighters — eligible upon attainment of age fifty -five (55) with completion of fifteen (15) years of service. o Scenario 4(c) • For General Employees — eligible upon attainment of age fifty -five (55) with completion of fifteen (15) years of service. • For Police Officers and Firefighters — eligible upon the earlier of (a) attainment of age fifty -five (55) with completion of fifteen (15) years of service or (b) completion of thirty (30) years of service. Accrued benefits as of September 30, 2009 remain payable unreduced upon attainment of age fifty -five (55) with completion of ten (10) years of service. Accrued benefits as of September 30, 2009 remain payable after completion of twenty - five (25) years of service prior to attainment of age fifty -five (55) with an actuarial reduction for each year early retirement benefit commencement precedes age fifty -five (55). Benefits accrued after September 30, 2009 are payable under the above proposed unreduced early retirement eligibility dates. For purposes of this Study, we have assumed members will be able to commence receipt of the portion of their benefit accrued after September 30, 2009 at the current early retirement eligibility date — attainment of age fifty -five (55) with completion of ten (10) years of service or upon completion of twenty -five (25) years of service — subject to reduction in the amount of one fifteenth (1 /15` per year for the first five (5) years and one thirtieth (1 /30 per year for years in excess of five (5) years for early retirement benefit commencement. ➢ Scenario 5 — All above changes above combined as follows. o Scenario 5(a) — Scenarios 1, 2, 3 and 4(a) combined. o Scenario 5(b) — Scenarios 1, 2, 3 and 4(b) combined. o Scenario 5(c) — Scenarios 1, 2, 3 and 4(c) combined. GRS Gabriel Roeder Smith & Company - 2 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 To illustrate sensitivity of the net City / County contribution to investment return, we have projected each of Scenarios 5(a), 5(b) and 5(c) assuming investment return of eight percent (8 %) per annum (current Valuation assumption), seven percent (7 %) per annum and nine percent (9 %) per annum, respectively, during the projection period. ➢ Scenario 6 — Freeze the Plan effective October 1, 2009. Members who are participants of the Plan as of October 1, 2009 continue to accrue benefits under the Plan. No new participants will enter the Plan after September 30, 2009. > Scenario 7 — Terminate the Plan effective October 1, 2009. For Members who are participants of the Plan as of October 1, 2009, benefits are frozen as of October 1, 2009. All frozen benefits are 100% vested as of October 1, 2009. No new participants will enter the Plan after September 30, 2009. GRS Gabriel Roeder Smith & Company - 3 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Results — The following table shows the current net City and County contribution (cost) and the sum of the projected net City and County contributions (costs) over the next ten (10) years for the baseline (current Plan) forecast and for each Scenario described above separately and combined as a dollar amount ($thousands) and as a percentage of projected covered payroll, respectively. Net ('its ('•unto ('nisi - .Accumulalc(l Net ( its / ('uunix Gust cs111( usan(ls) Next 1 l car Next 10 l cars . kinouill De case) knunuit (Decrease) Baseline (Current Plan) - Net City and County Cost $ 2,746 N/A $ 31,806 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Payroll 24.8% N/A 25.3% N/A Scenario 1: 2.5% Benefit Accrual Rate for Future Service - Net City and County Cost $ 2,510 ($ 236) $ 28,882 ($ 2,924) - Covered Payroll $ 11,083 $ 125,652 - % of Covered Payroll 22.6% (2.2 %) 23.0% (2.3 %) Scenario 2: FAS Based on Average of Highest 5 Years of Base Pay - Net City and County Cost $ 2,381 ($ 365) $ 27,982 ($ 3,824) - Covered Payroll $ 10,175 $ 116,508 - % of Covered Payroll 23.4% (3.6 %) 24.0% (3.3 %) Scenario 3: 7 -Year Cliff Vesting for Future Service - Net City and County Cost $ 2,744 ($ 2) $ 31,773 ($ 33) - Covered Payroll $ 11,083 $ 125,652 - % of Covered Payroll 24.8% (0.0 %) 25.3% (0.0 %) Scenario 4(a): Revised Early Ret Eligibility for Future Service (General — 55 & 15, Police / Fire — 30 Years Service) - Net City and County Cost $ 2,588 ($ 158) $ 29,938 ($ 1,868) - Covered Payroll $ 11,096 $ 126,416 - % of Covered Payroll 23.3% (1.4 %) 23.7% (1.5 %) Scenario 4(b): Revised Early Ret Eligibility for Future Service (General / Police / Fire — 55 & 15) - Net City and County Cost $ 2,700 ($ 46) $ 31,286 ($ 520) - Covered Payroll $ 11,096 $ 126,416 - % of Covered Payroll 24.3% (0.4 %) 24.7% (0.4 %) Scenario 4(c): Revised Early Ret Eligibility for Future Service (General — 55 & 15, Police / Fire — 55 & 15 or 30 Years Service) - Net City and County Cost $ 2,715 ($ 31) $ 31,449 ($ 357) - Covered Payroll $ 11,096 $ 126,416 - % of Covered Payroll 24.5% (0.3 %) 24.9% (0.3 %) GRS Gabriel Roeder Smith & Company - 4 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 No ('iIN ('uu ('u.l - .Accunllllalcll Net (il, ! ( mini, (nst (`+l11 , n(1.) \csl 1 1 car \cN.l 11) l car. kn (1)ccrca.c) Amount (Uccrcasc) Baseline (Current Plan) - Net City and County Cost $ 2,746 N/A $ 31,806 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.8% N/A 25.3% N/A Scenario 5(a): Scenarios 1, 2, 3 and 4(a) Combined - Net City and County Cost $ 2,052 ($ 694) $ 23,985 ($ 7,821) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.1% 6.8% 20.5% 6.7% Scenario 5(b): Scenarios 1, 2, 3 and 4(b) Combined - Net City and County Cost $ 2,108 ($ 638) $ 24,688 ($ 7,118) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.7% 6.3% 21.1% 6.1% Scenario 5(c): Scenarios 1, 2, 3 and 4(c) Combined - Net City and County Cost $ 2,118 ($ 628) $ 24,799 ($ 7,007) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.8% 6.2% 21.2% 6.0% Scenario 6: Freeze Plan (No New Entrants) effective 10/1/2009 - Net City and County Cost $ 2,667 ($ 79) $ 28,096 ($ 3,710) - Covered Payroll $ 10,322 $ 90,408 - % of Covered Pa oll 25.8% 0.8% 31.1% 4.1% Scenario 7: Terminate Plan effective 10/1/2009 - Net City and County Cost $ 1,068 ($ 1,678) $ 12,172 ($ 19,634) - Covered Payroll $ 10,322 $ 90,408 - % of Covered Pa oll 10.3% 16.3% 13.5% 21.7% GRS Gabriel Roeder Smith & Company - 5 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Sensitivity Analysis Net ( its ( ounK Gist - \ccunnulatcil Nut ( it■ / ('ounR ('ost ltitliousanols) \cvt 1 1 car \cvl 10 1 cars ■Hlum (1)ccrcast') kniount (Decrease) Baseline (Current Plan — 8 %) - Net City and County Cost $ 2,746 N/A $ 31,806 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.8% N/A 25.3% N/A Scenario 5(a): Scenarios 1, 2, 3 and 4(a) Combined (8 %) - Net City and County Cost $ 2,052 ($ 694) $ 23,985 ($ 7,821) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.1% 6.8% 20.5% 6.7% Baseline (Current Plan — 7 %) - Net City and County Cost $ 2,749 N/A $ 32,768 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.8% N/A 26.1% N/A Scenario 5(a): Scenarios 1, 2, 3 and 4(a) Combined (7 %) - Net City and County Cost $ 2,055 ($ 694) $ 24,869 ($ 7,899) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.2% 6.8% 21.2% 6.7% Baseline (Current Plan — 9 %) - Net City and County Cost $ 2,743 N/A $ 30,799 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.7% N/A 24.5% N/A Scenario 5(a): Scenarios 1, 2, 3 and 4(a) Combined (9 %) - Net City and County Cost $ 2,049 ($ 694) $ 23,059 ($ 7,740) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.1% 6.8% 19.7% 6.6% GRS Gabriel Roeder Smith & Company - 6 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Sensitivity Analysis (continued) \cI ( itv ( ( nsl - \ccuniulalcd \et (itx / (' 1111111v (0st 1'"ih()1i,an(1k) \c\1 1 \ car \c\1 10 1 cars \n1minl (I)ccr(au•) \1111)11111 (I)ccrcase) Baseline (Current Plan — 8 %) - Net City and County Cost $ 2,746 N/A $ 31,806 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.8% N/A 25.3% N/A Scenario 5(b): Scenarios 1, 2, 3 and 4(b) Combined (8 %) - Net City and County Cost $ 2,108 ($ 638) $ 24,688 ($ 7,118) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.7% 6.3% 21.1% 6.1% Baseline (Current Plan — 7 %) - Net City and County Cost $ 2,749 N/A $ 32,768 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.8% N/A 26.1% N/A Scenario 5(b): Scenarios 1, 2, 3 and 4(b) Combined (7 %) - Net City and County Cost $ 2,111 ($ 638) $ 25,580 ($ 7,188) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.7% 6.3% 21.8% 6.1% Baseline (Current Plan — 9 %) - Net City and County Cost $ 2,743 N/A $ 30,799 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.7% N/A 24.5% N/A Scenario 5(b): Scenarios 1, 2, 3 and 4(b) Combined (9 %) - Net City and County Cost $ 2,104 ($ 639) $ 23,753 ($ 7,046) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.7% 6.3% 20.3% 6.0% GRS Gabriel Roeder Smith & Company - 7 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Sensitivity Analysis (concluded) Net ( ih / ( uunR (usI - .Arciiniuulatcdl NCI ( ih ! ( uunlN ( 0s1 (`�lli(1usauuls) \cAI 1 \ car \c't 11) \ ca Aniunnt (I)ccrca c) knihiunl (Decrease) Baseline (Current Plan — 8 %) - Net City and County Cost $ 2,746 N/A $ 31,806 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.8% N/A 25.3% N/A Scenario 5(c): Scenarios 1, 2, 3 and 4(c) Combined - Net City and County Cost $ 2,118 ($ 628) $ 24,799 ($ 7,007) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.8% 6.2% 21.2% 6.0% Baseline (Current Plan — 7 %) - Net City and County Cost $ 2,749 N/A $ 32,768 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.8% N/A 26.1% N/A Scenario 5(c): Scenarios 1, 2, 3 and 4(c) Combined (7 %) - Net City and County Cost $ 2,121 ($ 628) $ 25,692 ($ 7,076) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.8% 6.2% 21.9% 6.0% Baseline (Current Plan — 9 %) - Net City and County Cost $ 2,743 N/A $ 30,799 N/A - Covered Payroll $ 11,083 $ 125,652 - % of Covered Pa oll 24.7% N/A 24.5% N/A Scenario 5(c): Scenarios 1, 2, 3 and 4(c) Combined (9 %) - Net City and County Cost $ 2,115 ($ 628) $ 23,862 ($ 6,937) - Covered Payroll $ 10,186 $ 117,141 - % of Covered Pa oll 20.8% 6.2% 20.4% 5.9% GRS Gabriel Roeder Smith & Company - 8 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Actuarial Assumptions and Methods. System Provisions, Financial Data, Member Census Data — The actuarial assumptions and methods, system provisions, financial data and member census data employed for purposes of our Actuarial Study are the same actuarial assumptions and methods, system provisions, financial data and member census data utilized for the October 1, 2009 Actuarial Valuation with the following modifications. • For Scenarios 4 and 5, assumed retirement rates are based upon rates from the Tables below. For General Employees (percent retiring based on age and years of service): Years of Service Age 0 -10 10 -15 15 -25 25 -30 30 or more Under 55 0% 0% 0% 2% 2% 55 0% 5% 10% 20% 25% 55 — 64 0% 5% 10% 4% 5% 65 100% 100% 100% 100% 100% For Firefighters and Police Officers (percent retiring based on age and years of service): Years of Service Age. 0 -10 10 -15 15 -25 25 -30 30 or more Under 55 0% 0% 0% 4% 5% 55 0% 10% 15% 40% 50% 55 — 64 0% 10% 15% 15% 20% 65 100% 100% 100% 100% 100% • For Scenarios 6 and 7, future gains and losses are amortized over a period of twenty -five (25) years. For Scenarios 1 through 5, throughout the forecast period new Police Officer and General Employee members are assumed to be hired each year at a rate sufficient to maintain a constant active Police Officer and General Employee headcount — stationary population. Active Firefighters are assumed to not be replaced by new active Firefighters. New employees are assumed to have the same average demographic characteristics (age, gender, salary — adjusted each year for inflation) as those members hired over the past five (5) years. Projections are deterministic - throughout the projection period Plan experience is expected to match the assumptions — including a market value 8% annual investment return — we have included a sensitivity analysis for Scenario 5 (all changes combined) where 7% and 9% annual returns are also modeled. GRS Gabriel Roeder Smith & Company - 9 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 This Projection Study is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the change nor in opposition to the change. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be determined by actual future events, which may differ materially from the assumptions made. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Study are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Projection Study. If you have reason to believe that the information provided in this Actuarial Study is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. 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 opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Lawrence F. Wilson, A.S.A. Peter N. Strong, A.S.A. Senior Consultant and Actuary Consultant and Actuary Enclosures GRS Gabriel Roeder Smith & Company - 10 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 PROJECTION RESULTS Scenario 1— Reduce the benefit accrual rate to two and a half percent (2.5 %) per year of credited service after September 30, 2009 - maximum thirty (30) years total service. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 1. Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 1 County Cost County Cost 2012 11,083,213 2,746,240 2,509,847 236,393 236,393 2013 11,467,759 2,913,424 2,663,670 249,754 486,147 2014 11,842,171 3,101,952 2,840,083 261,869 748,016 2015 12,177,484 3,158,995 2,886,878 272,117 1,020,133 2016 12,369,938 3,210,571 2,924,891 285,680 1,305,813 2017 12,708,207 3,254,552 2,956,023 298,529 1,604,342 2018 13,039,669 3,294,074 2,983,504 310,570 1,914,912 2019 13,336,686 3,329,127 3,006,090 323,037 2,237,949 2020 13,693,343 3,373,902 3,037,577 336,325 2,574,274 2021 13,933,458 3,422,843 3,073,256 349,587 2,923,861 5 Year Totals 58,940,565 15,131,182 13,825,369 1,305,813 10 Year Totals 125,651,928 31,805,680 28,881,819 2,923,861 G R S Gabriel Roeder Smith & Company - 11 - ■ Projected Net City and County Cost Scenario 1- 2.5% Accrual Rate for Future Service q) 3,500,000 I et n XI o a. 3,000,000 ,y °c n c x g 2,500,000 Y 'b r M�,y 2,000,000 1 `." "ti7 E ►cz 1,500,000 i ll t 1,000,000 O Z ou 500,000 m to to m m N 0 1 1 i 1 B 1 I 1 1 I O H ti °tip 1 ,49).C)) ti ° � A ti °y � ti ° �� ti ° �� f l , ti ° � ° ti ° �� • Current Plan • Scenario 1 N el Projected Net City and County Cost as a Percentage of Pay Scenario 1- 2.5% Accrual Rate for Future Service A) 30.0% o n o eb 2 5.0% o � n � F. 1 1 l 11 - II � � o 20.0% "' ril "° AI PZ 15.0% P z Od 10.0% p - n z od 5.0% co co m N I--I 0.0% p b 1 3 N'‘‘ <0 1 O C'i O ti C� • Current Plan • Scenario 1 w CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 2 — Change the final average salary (FAS) used to calculate retirement benefits to the average of the highest five (5) consecutive years of basic compensation out of the last ten (10) years - not less than the average of the highest three (3) consecutive years of total compensation as of October 1, 2009. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 2. Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 2 County Cost County Cost 2012 10,175,174 2,746,240 2,381,457 364,783 364,783 2013 10,541,214 2,913,424 2,542,722 370,702 735,485 2014 10,897,174 3,101,952 2,725,767 376,185 1,111,670 2015 11,230,744 3,158,995 2,781,141 377,854 1,489,524 2016 11,444,263 3,210,571 2,827,992 382,579 1,872,103 2017 11,784,431 3,254,552 2,868,229 386,323 2,258,426 2018 12,117,217 3,294,074 2,905,405 388,669 2,647,095 2019 12,438,434 3,329,127 2,939,459 389,668 3,036,763 2020 12,798,163 3,373,902 2,980,923 392,979 3,429,742 2021 13,081,179 3,422,843 3,028,813 394,030 3,823,772 5 Year Totals 54,288,569 15,131,182 13,259,079 1,872,103 10 Year Totals 116,507,993 31,805,680 27,981,908 3,823,772 GRS Gabriel Roeder Smith & Company - 14 - ■ Projected Net City and County Cost Scenario 2 - Change FAS to Final 5 -Year Average of Base Pay c 3,500,000 g' n 7 — o �3 rt a 3,000,000 ,y l n B y O 2,500,000 0 `"" y w no 2,000,000 C ' �-C z 1,500,000 C d LA CA °T1 t 1,000,000 I I I I I I I I I C *- Cml C to to 500,000 Ci7 m m N i--+ 0 , I I 1 , 1 1 I , 1 O p-7 � ,yam tia tih tib �� ti� yo, e -1> `° • Current Plan • Scenario 2 Projected Net City and County Cost as a Percentage of Pay Scenario 2 - Change FAS to Final 5 -Year Average of Base Pay II: 30.0% 25.0% I:11- z 20.0% P 2: W) 15.0% d z c4 cA 10.0% n z od 5.0% CO M M ' N 0.0% b • Current Plan • Scenario 2 rn CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 3 — Change the vesting schedule for future benefit accruals to a seven (7) year cliff vesting schedule. Members are zero percent (0 %) vested until completion of seven (7) years of service. Members are one hundred percent (100 %) vested upon completion of seven (7) years of service. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 3. Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 3 County Cost County Cost 2012 11,083,213 2,746,240 2,743,913 2,327 2,327 2013 11,467,759 2,913,424 2,910,818 2,606 4,933 2014 11,842,171 3,101,952 3,099,104 2,848 7,781 2015 12,177,484 3,158,995 3,156,099 2,896 10,677 2016 12,369,938 3,210,571 3,207,502 3,069 13,746 2017 12,708,207 3,254,552 3,251,201 3,351 17,097 2018 13,039,669 3,294,074 3,290,533 3,541 20,638 2019 13,336,686 3,329,127 3,325,293 3,834 24,472 2020 13,693,343 3,373,902 3,369,744 4,158 28,630 2021 13,933,458 3,422,843 3,418,418 4,425 33,055 5 Year Totals 58,940,565 15,131,182 15,117,436 13,746 10 Year Totals 125,651,928 31,805,680 31,772,625 33,055 GRS Gabriel Roeder Smith & Company - 17 - ■ Projected Net City and County Cost Scenario 3 - Change Vesting Schedule to 7 -Year Cliff Vesting for Future Service c 3,500,000 = n 7d o 4 a 3,000,000 "C n o R° 2,500,000 Z n o '74 "o AI z CA :':::'::: w` b , , 1,000,000 II 1 1 1 1 1 1 1 1 0 Z I Ci7 500,000 N 0. 0 . I e 1 s T 1 r e 1 C • Current Plan • Scenario 3 oo sr Projected Net City and County Cost as a Percentage of Pay Scenario 3 - Change Vesting Schedule to 7 -Year Cliff Vesting for Future Service 30.0% - n o 4 CD CO 25.0% n o 20.0% ~ e 15.0% 72] '" z 10.0% o--+ n z 5.0% Cil Cil m rt 0.0% 1 r 1 r ■ I r r r I C 4D In t oy •I 'O , y �s, � ,��, Q , ti h �tio oy 1 oti � oti oti ti C� `L L 'L `V `L 'L 1 ', 'L 1 2 • Current Plan • Scenario 3 CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 4(a) — Change the unreduced early retirement eligibility for future benefit accruals to attainment of age fifty -five (55) with completion of fifteen (15) years of service (General Employees) - completion of thirty (30) years of service (Police Officers and Firefighters). The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 4(a). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 4(a) County Cost County Cost 2012 11,096,209 2,746,240 2,587,940 158,300 158,300 2013 11,494,237 2,913,424 2,749,947 163,477 321,777 2014 11,881,758 3,101,952 2,932,381 169,571 491,348 2015 12,244,679 3,158,995 2,981,437 177,558 668,906 2016 12,432,212 3,210,571 3,022,435 188,136 857,042 2017 12,787,628 3,254,552 3,062,706 191,846 1,048,888 2018 13,144,264 3,294,074 3,100,342 193,732 1,242,620 2019 13,458,324 3,329,127 3,126,915 202,212 1,444,832 2020 13,819,434 3,373,902 3,164,837 209,065 1,653,897 2021 14,057,546 3,422,843 3,208,569 214,274 1,868,171 5 Year Totals 59,149,095 15,131,182 14,274,140 857,042 10 Year Totals 126,416,291 31,805,680 29,937,509 1,868,171 GRS Gabriel Roeder Smith & Company - 20 - ir Projected Net City and County Cost Scenario 4(a) - Change Unreduced Early Retirement Eligibility to 55 & 15 (General) and 30 Years (Police /Fire) C7 a. 3,500,000 o ~ 4 co 0. 3,000,000 ,y 'C CD y sTi R 2,500,000 14 z � z I 2,000,000 � d � ' z 1,500,000 b y 0 C i l 1,000,000 Z y 0 00 co 500,000 I n Cm1 • M N YI 0 C I V V I, - 1, ) °~ � i ti ° �� ti ° �� ti °tit ti ° � g ti °y � ti ° �� ti °1y • Current Plan • Scenario 4(a) N ■ Projected Net City and County Cost as a Percentage of Pay Scenario 4(a) - Change Unreduced Early Retirement Eligibility to 55 & 15 (General) and 30 Years (Police /Fire) AC 30.0% n 0 Y "< " 25.0% - n o F. g: E o 20.0% "i ca b C" pzril 15.0% d Z cA • Ln O 0 10.0% "./1 O -+ n Z O d 5.0% CC Cd • z N ■--■ 0.0% 0 0 " 0 o �,ti � � ti o' o tih o ti� o ti1 ��� otia o1, Q' ti 2 • Current Plan • Scenario 4(a) N N CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 4(b) — Change the unreduced early retirement eligibility for future benefit accruals to attainment of age fifty -five (55) with completion of fifteen (15) years of service (General Employees, Police Officers and Firefighters). The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 4(b). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 4(b) County Cost County Cost 2012 11,096,209 2,746,240 2,699,510 46,730 46,730 2013 11,494,237 2,913,424 2,866,202 47,222 93,952 2014 11,881,758 3,101,952 3,053,682 48,270 142,222 2015 12,244,679 3,158,995 3,107,689 51,306 193,528 2016 12,432,212 3,210,571 3,153,802 56,769 250,297 2017 12,787,628 3,254,552 3,200,440 54,112 304,409 2018 13,144,264 3,294,074 3,243,103 50,971 355,380 2019 13,458,324 3,329,127 3,274,822 54,305 409,685 2020 13,819,434 3,373,902 3,318,726 55,176 464,861 2021 14,057,546 3,422,843 3,367,585 55,258 520,119 5 Year Totals 59,149,095 15,131,182 14,880,885 250,297 10 Year Totals 126,416,291 31,805,680 31,285,561 520,119 GRS Gabriel Roeder Smith & Company - 23 - ■ Projected Net City and County Cost Scenario 4(b) - Change Unreduced Early Retirement Eligibility to 55 & 15 (General /Police /Fire) AC 3,500,000 cr o 74 a 3,000,000 ^C n O y� 2,500,000 w � 2,000,000 � � C v� 1,500,000 H 1,000,000 H 500,000 Ci7 X CC11 N •.• • Current Plan • Scenario 4(b) N • Projected Net City and County Cost as a Percentage of Pay Scenario 4(b) - Change Unreduced Early Retirement Eligibility to 55 & 15 (General /Police /Fire) c 30.0% PC n 0 q Cl.. CD m 25.0% - n O r. 3 20.0% I x ;€ C4.1° d z 15.0% C4 CA O 10.0% , 1 t O n z z N I■I 0.0% 0 ''d le '19 ti� ti�� ti� ti�� ti��� tio o ti o y L0'Lti C" • Current Plan • Scenario 4(b) N t!% CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 4(c) — Change the unreduced early retirement eligibility for future benefit accruals to attainment of age fifty -five (55) with completion of fifteen (15) years of service (General Employees) - earlier of (a) attainment of age fifty -five (55) with completion of fifteen (15) years of service or (b) completion of thirty (30) years of service (Police Officers and Firefighters). The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 4(c). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 4(c) County Cost County Cost 2012 11,096,209 2,746,240 2,714,714 31,526 31,526 2013 11,494,237 2,913,424 2,881,642 31,782 63,308 2014 11,881,758 3,101,952 3,069,375 32,577 95,885 2015 12,244,679 3,158,995 3,123,647 35,348 131,233 2016 12,432,212 3,210,571 3,169,993 40,578 171,811 2017 12,787,628 3,254,552 3,216,943 37,609 209,420 2018 13,144,264 3,294,074 3,259,879 34,195 243,615 2019 13,458,324 3,329,127 3,291,820 37,307 280,922 2020 13,819,434 3,373,902 3,336,029 37,873 318,795 2021 14,057,546 3,422,843 3,385,103 37,740 356,535 5 Year Totals 59,149,095 15,131,182 14,959,371 171,811 10 Year Totals 126,416,291 31,805,680 31,449,145 356,535 GRS Gabriel Roeder Smith & Company - 26 - • Projected Net City and County Cost Scenario 4(c) - Change Unreduced Early Retirement Eligibility to 55 & 15 (General) and El the Earlier of 55 & 15 or 30 Years (Police /Fire) cr P 3,500,000 n o ~ rD F. 3,000,000 n Q R. c 2,500,000 5: o r� 2,000,000 "d d 1,500,000 CA CA C * MI " 1,000,000 ►•r � o Co to 500,000 I?7 MI N 0-4 • Current Plan • Scenario4(c) N J sr Projected Net City and County Cost as a Percentage of Pay Scenario 4(c) - Change Unreduced Early Retirement Eligibility to 55 & 15 (General) and C) the Earlier of 55 & 15 or 30 Years (Police /Fire) c P• 30.0% - - � 1 7z ^4 i o et yr co n o 25.0% 0 -i "T1 T y � y � 0 4 20.0% C" CI ca LA a vx 15.0% � Z cA o d 10.0% C11 n z od 5.0% _ C 7C N 1--1 0.0% 1 1 1 1 I 1 1 I 1 I 0 I V O�� O O, Oy h Oti Oti s O ti s O A S' O 1 > r ti ti ti ti ti ti 1,° ti ti ti Z • Current Plan • Scenario 4(c) N 00 CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(a) — Scenarios 1, 2, 3 and 4(a) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(a) (all changes combined), assuming investment returns of 8% per annum throughout the projection period (baseline — current valuation assumption). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(a) County Cost County Cost 2012 10,186,427 2,746,240 2,051,881 694,359 694,359 2013 10,563,771 2,913,424 2,198,204 715,220 1,409,579 2014 10,930,660 3,101,952 2,366,627 735,325 2,144,904 2015 11,286,887 3,158,995 2,407,495 751,500 2,896,404 2016 11,495,620 3,210,571 2,434,262 776,309 3,672,713 2017 11,850,982 3,254,552 2,460,175 794,377 4,467,090 2018 12,203,840 3,294,074 2,485,117 808,957 5,276,047 2019 12,539,780 3,329,127 2,500,925 828,202 6,104,249 2020 12,901,662 3,373,902 2,524,603 849,299 6,953,548 2021 13,181,367 3,422,843 2,556,197 866,646 7,820,194 5 Year Totals 54,463,365 15,131,182 11,458,469 3,672,713 10 Year Totals 117,140,996 31,805,680 23,985,486 7,820,194 GRS Gabriel Roeder Smith & Company - 29 - ■ Projected Net City and County Cost Scenario 5(a) - All Proposed Changes Combined AC? [Early Retirement is 55 & 15 (General) and 30 Years (Police /Fire)] cr P• 3,500,000 n 0 CD 06. ; , 3,000,000 n Q y "s1 R ) c 2,500,000 w ed 2,000,000 r7' 1,500,000 CA C d 1,000,000 1 1 1 1 1 1 1 1 C ~" w to 500,000 - Cil M z z 1.-+Cil N M. 0 0) y t:) .0 r, . ti o tia ' , rLO ti otig 1 oti� l oti� ti o`� y • Current Plan (8 %) • Scenario 5(a) (8 %) w 0 I. Projected Net City and County Cost as a Percentage of Pay Scenario 5(a) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General) and 30 Years (Police /Fire)] ' c Po* 30.0% __ n 0 0 "� " n O 25.0% - "=7 F. ^ C © a � ,� 20.0% r v� 15.0% . 2 LA CA 10.0% O MI �, - 0 5.0% M M X ■-,ril 0.0% = " Qtiti o o o o a o ff$ �� a� off~ C" 'L 'L `L 'L 'L `L 'L 'L 'L `L Z I I • Current Plan (8 %) • Scenario 5(a) (8 %) CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(a) — Scenarios 1, 2, 3 and 4(a) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(a) (all changes combined), assuming investment returns of 7% per annum throughout the projection period (sensitivity — 1 %). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(a) County Cost County Cost 2012 10,186,427 2,749,323 2,054,919 694,404 694,404 2013 10,563,771 2,924,178 2,208,695 715,483 1,409,887 2014 10,930,660 3,125,439 2,389,294 736,145 2,146,032 2015 11,286,887 3,200,758 2,447,382 753,376 2,899,408 2016 11,495,620 3,276,623 2,496,730 779,893 3,679,301 2017 11,850,982 3,348,268 2,547,833 800,435 4,479,736 2018 12,203,840 3,418,963 2,600,672 818,291 5,298,027 2019 12,539,780 3,488,805 2,647,161 841,644 6,139,671 2020 12,901,662 3,572,043 2,704,344 867,699 7,007,370 2021 13,181,367 3,663,171 2,772,277 890,894 7,898,264 5 Year Totals 54,463,365 15,276,321 11,597,020 3,679,301 10 Year Totals 117,140,996 32,767,571 24,869,307 7,898,264 GRS Gabriel Roeder Smith & Company - 32 - sr Projected Net City and County Cost Scenario 5(a) - All Proposed Changes Combined w [Early Retirement is 55 & 15 (General) and 30 Years (Police /Fire)] cr ei• 4,000,000 - o n. =; 3,500,000 O 5 g' 3,000,000 -z o r� Al 2,500,000 ew ... ..‹ 2,000,000 : : •2 CA CA 1,500,000 0 t Z " r r 2 1,000,000 C d cc to 500,000 2 N o 0 C `L ti� 'L� ti� 1, f l, ti� `L� `L�� 1, "1, 'LO C" • Current Plan (7 %) • Scenario 5(a) (7 %) w IP Projected Net City and County Cost as a Percentage of Pay Scenario 5(a) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General) and 30 Years (Police /Fire)] o Po• 30.0% n e 4 ep n o B 25.0% "kt x X ~ — z n 20.0% r tT1 1 1 v d� 1 15.0% cA 10.0% O * n C 5.0% tt ih r ICJ N p--I 0.0% .0 ` o< O , -6 o ti � o ti h O O ti1 o yg O �� � Lp Ol • ti ti ti ti ti ti ti ti ti ti ■ Current Plan (7 %) • Scenario 5(a) (7 %) w CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(a) — Scenarios 1, 2, 3 and 4(a) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(a) (all changes combined), assuming investment returns of 9% per annum throughout the projection period (sensitivity + 1 %). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(a) County Cost County Cost 2012 10,186,427 2,743,158 2,048,842 694,316 694,316 2013 10,563,771 2,902,610 2,187,654 714,956 1,409,272 2014 10,930,660 3,078,191 2,343,691 734,500 2,143,772 2015 11,286,887 3,116,482 2,366,875 749,607 2,893,379 2016 11,495,620 3,142,899 2,370,229 772,670 3,666,049 2017 11,850,982 3,157,825 2,369,632 788,193 4,454,242 2018 12,203,840 3,164,175 2,364,803 799,372 5,253,614 2019 12,539,780 3,161,753 2,347,436 814,317 6,067,931 2020 12,901,662 3,164,594 2,334,429 830,165 6,898,096 2021 13,181,367 3,167,022 2,325,753 841,269 7,739,365 5 Year Totals 54,463,365 14,983,340 11,317,291 3,666,049 10 Year Totals 117,140,996 30,798,709 23,059,344 7,739,365 GRS Gabriel Roeder Smith & Company - 35 - sr Projected Net City and County Cost Scenario 5(a) - All Proposed Changes Combined n [Early Retirement is 55 & 15 (General) and 30 Years (Police /Fire)] cr Pt' 3,500,000 n CD CD 3,000,000 n o F . "� pal c 2,500,000 0 ,o o o 2,000,000 'Z7 'z 1,500,000 d� H 1000000 " 0 oo to 500,000 z z N 1--d o O o O O O Og o 0 o C'' ti ti ti ti ti ti ti ti ti z • Current Plan (9 %) • Scenario 5(a) (9 %) L..) rn sr Projected Net City and County Cost as a Percentage of Pay Scenario 5(a) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General) and 30 Years (Police /Fire)] ar Pp' 30.0% n CD CD n0 B 25.0% 's7 �z - � ° 5 2 Zo.o% b d � 15.0% rC 10.0% 0 oil n z o c 5.0% az cc m N 0--, 0.0% . . I o . i 1 1 . I C o 4D IV Oti 'L �ti3 O,� Otih O oN oti O ,0) oh ,~ r ti ti ti ti ti 1, ti ti ti ti I ■ Current Plan (9 %) • Scenario 5(a) (9 %) w v CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(b) — Scenarios 1, 2, 3 and 4(b) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(b) (all changes combined), assuming investment returns of 8% per annum throughout the projection period (baseline — current valuation assumption). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(b) County Cost County Cost 2012 10,186,427 2,746,240 2,107,519 638,721 638,721 2013 10,563,771 2,913,424 2,256,591 656,833 1,295,554 2014 10,930,660 3,101,952 2,428,016 673,936 1,969,490 2015 11,286,887 3,158,995 2,471,890 687,105 2,656,595 2016 11,495,620 3,210,571 2,502,071 708,500 3,365,095 2017 11,850,982 3,254,552 2,532,271 722,281 4,087,376 2018 12,203,840 3,294,074 2,560,367 733,707 4,821,083 2019 12,539,780 3,329,127 2,579,539 749,588 5,570,671 2020 12,901,662 3,373,902 2,607,146 766,756 6,337,427 2021 13,181,367 3,422,843 2,642,266 780,577 7,118,004 5 Year Totals 54,463,365 15,131,182 11,766,087 3,365,095 10 Year Totals 117,140,996 31,805,680 24,687,676 7,118,004 GRS Gabriel Roeder Smith & Company - 38 liv Projected Net City and County Cost Scenario 5(b) - All Proposed Changes Combined [Early Retirement is 55 & 15 (General /Police /Fire)] P c PE,' 3,500,000 n o ~ y a P- CD .-1 3,000,000 n Q B y ' �� 1J !! 5 C g . c 2,500,000 E S r il l 1 I I 2,000,000 b d E �z ::: "n CA C d M 1-1 y M en C d CC 0:7 500,000 Z N 1-I 0 O y ti 'V 1, , , , , L O' ' , L 0 1 ' 00'' r ti • Current Plan (8 %) • Scenario 5(b) (8 %) w RP Projected Net City and County Cost as a Percentage of Pay Scenario 5(b) - All Proposed Changes Combined n m [Early Retirement is 55 & 15 (General /Police /Fire)] c P• 30.0% n o e a. M F. 25.0% y O = o r „1 20.0% PZ ..< � i 7 15.0% 10.0% O III .11 o - n od 5.0% C� Ct M N ■--, 0.0% 1 I I 1 1 I I 1 I I 0 o 'V O O ,''' O O ON ON O ON O O O ,Ly C'� ti ti ti ti ti ti ti ti ti ti • Current Plan (8 %) • Scenario 5(b) (8 %) ■ 0 CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(b) — Scenarios 1, 2, 3 and 4(b) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(b) (all changes combined), assuming investment returns of 7% per annum throughout the projection period (sensitivity — 1%). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(b) County Cost County Cost 2012 10,186,427 2,749,323 2,110,564 638,759 638,759 2013 10,563,771 2,924,178 2,267,108 657,070 1,295,829 2014 10,930,660 3,125,439 2,450,767 674,672 1,970,501 2015 11,286,887 3,200,758 2,511,969 688,789 2,659,290 2016 11,495,620 3,276,623 2,564,913 711,710 3,371,000 2017 11,850,982 3,348,268 2,620,568 727,700 4,098,700 2018 12,203,840 3,418,963 2,676,926 742,037 4,840,737 2019 12,539,780 3,488,805 2,727,242 761,563 5,602,300 2020 12,901,662 3,572,043 2,788,930 783,113 6,385,413 2021 13,181,367 3,663,171 2,861,086 802,085 7,187,498 5 Year Totals 54,463,365 15,276,321 11,905,321 3,371,000 10 Year Totals 117,140,996 32,767,571 25,580,073 7,187,498 GRS Gabriel Roeder Smith & Company - 41 - w Projected Net City and County Cost Scenario 5(b) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General /Police /Fire)] c c P• 4,000,000 o y et a r C CD 3,500,000 O Et. R 3,000,000 n - z § mo 2,500,000 re I I 1 11 1 I II II I II C "C 2,000,000 I II II '' U) V 1,500,000 H " t 1,000,000 H 500000 N I-o 0 c H titi ti� ti� ti � ti ti' ti ti ti ti ti r d o 1 , d o , , d o d o , d o 1, • Current Plan (7 %) in Scenario 5(b) (7 %) N lir Projected Net City and County Cost as a Percentage of Pay Scenario 5(b) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General /Police /Fire)] cr P• 35.0% n C CI. .1 , 30.0% O R c 25.0% - .d so ,� 20.0% V •z 15.0% C CA 0 10.0% ~ O to td 5.0% Cil z ...Cil N ■-I 0.0% o o o o ti °` o o , co o o' , o' o' o1, C" ti ti ti ti ti ti ti ti ti 1, y • Current Plan (7 %) ■ Scenario 5(b) (7 %) w CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(b) — Scenarios 1, 2, 3 and 4(b) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(b) (all changes combined), assuming investment returns of 9% per annum throughout the projection period (sensitivity + 1 %). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(b) County Cost County Cost 2012 10,186,427 2,743,158 2,104,476 638,682 638,682 2013 10,563,771 2,902,610 2,246,014 656,596 1,295,278 2014 10,930,660 3,078,191 2,404,995 673,196 1,968,474 2015 11,286,887 3,116,482 2,431,072 685,410 2,653,884 2016 11,495,620 3,142,899 2,437,659 705,240 3,359,124 2017 11,850,982 3,157,825 2,441,075 716,750 4,075,874 2018 12,203,840 3,164,175 2,439,025 725,150 4,801,024 2019 12,539,780 3,161,753 2,424,538 737,215 5,538,239 2020 12,901,662 3,164,594 2,414,853 749,741 6,287,980 2021 13,181,367 3,167,022 2,408,965 758,057 7,046,037 5 Year Totals 54,463,365 14,983,340 11,624,216 3,359,124 10 Year Totals 117,140,996 30,798,709 23,752,672 7,046,037 GRS Gabriel Roeder Smith & Company - 44 - w Projected Net City and County Cost Scenario 5(b) - All Proposed Changes Combined [Early Retirement is 55 & 15 (General /Police /Fire)] cr Pp' 3,500,000 —_� _ . __..w is ~ CD O . et � 3,000,000 n o c go 2,500,000 y , ca 12 C",� •-e c ,., 2,000,000 t z 1,500,000 r% CA Ci g 1,000,000 H CO 500,000 tit Z N ►-I i t ,ti0,� '19'C') .y0 1 "1, '1,6 1 0 E l 9 ti � `L�ti� '0 L0 ti0 CI • Current Plan (9 %) • Scenario 5(b) (9 %) ■ Projected Net City and County Cost as a Percentage of Pay Scenario 5(b) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General /Police /Fire)] c c P• 30.0% n ft CD 10- no F. 25.0% x' — • z n ,' b 20.0% C t4 ;°: = :::: •- CA CA O d O n z oc 5.0% co co - Ch '=7 N M-0 0.0% `p cz b o oti� o o ti<' o o tiA o oN oti o ti ti ti ti ti ti ti ti ti ti z • Current Plan (9 %) • Scenario 5(b) (9 %) CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(c) — Scenarios 1, 2, 3 and 4(c) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(c) (all changes combined), assuming investment returns of 8% per annum throughout the projection period (baseline — current valuation assumption). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(c) County Cost County Cost 2012 10,186,427 2,746,240 2,117,721 628,519 628,519 2013 10,563,771 2,913,424 2,266,970 646,454 1,274,973 2014 10,930,660 3,101,952 2,438,585 663,367 1,938,340 2015 11,286,887 3,158,995 2,482,659 676,336 2,614,676 2016 11,495,620 3,210,571 2,513,025 697,546 3,312,222 2017 11,850,982 3,254,552 2,543,467 711,085 4,023,307 2018 12,203,840 3,294,074 2,571,774 722,300 4,745,607 2019 12,539,780 3,329,127 2,591,143 737,984 5,483,591 2020 12,901,662 3,373,902 2,618,990 754,912 6,238,503 2021 13,181,367 3,422,843 2,654,310 768,533 7,007,036 5 Year Totals 54,463,365 15,131,182 11,818,960 3,312,222 10 Year Totals 117,140,996 31,805,680 24,798,644 7,007,036 GRS Gabriel Roeder Smith & Company - 47 - w Projected Net City and County Cost Scenario 5(c) - All Proposed Changes Combined P [Early Retirement is 55 a 15 (General) and the Earlier of 55 & 15 or 30 Years (Police /Fire)] c ei• 3,500,000 o q rt 3,000,000 B g. C� 2,500,00 1 — o Z so I.f 2,000,000 t, 'z 1,500,000 .i., 1,000,000 H 500,000 M N I-1 0 0 �] 2 • Current Plan (8 %) • Scenario 5(c) (8 %) cc IP Projected Net City and County Cost as a Percentage of Pay Scenario 5(c) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General) and the Earlier of 55 & 15 or 30 Years (Police /Fire)] c ei• 30.0% n o c. "� CD n o F. 25.0% ' n ??• z b 20.0% 7d gm '4 b vE 15.0% -CZ cA c4 od 10.0% O n -i rii o d 5.0% C' ril X -r Cli 1 N MCI 0.0% \o ''d O O'' O O Oti Otis 01 ' 0 ti ti ti ti ti ti ti ti ti ti 2 • Current Plan (8 %) • Scenario 5(c) (8 %) CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(c) — Scenarios 1, 2, 3 and 4(c) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(c) (all changes combined), assuming investment returns of 7% per annum throughout the projection period (sensitivity — 1 %). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(c) County Cost County Cost 2012 10,186,427 2,749,323 2,120,766 628,557 628,557 2013 10,563,771 2,924,178 2,277,491 646,687 1,275,244 2014 10,930,660 3,125,439 2,461,348 664,091 1,939,335 2015 11,286,887 3,200,758 2,522,767 677,991 2,617,326 2016 11,495,620 3,276,623 2,575,921 700,702 3,318,028 2017 11,850,982 3,348,268 2,631,857 716,411 4,034,439 2018 12,203,840 3,418,963 2,688,477 730,486 4,764,925 2019 12,539,780 3,488,805 2,739,055 749,750 5,514,675 2020 12,901,662 3,572,043 2,801,060 770,983 6,285,658 2021 13,181,367 3,663,171 2,873,509 789,662 7,075,320 5 Year Totals 54,463,365 15,276,321 11,958,293 3,318,028 10 Year Totals 117,140,996 32,767,571 25,692,251 7,075,320 GRS Gabriel Roeder Smith & Company - 50 - ■ Projected Net City and County Cost Scenario 5(c) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General) and the Earlier of 55 & 15 or 30 Years (Police /Fire)] c ei• 4,000,000 7:4 q 0. ft 3,500,000 — yC R. 3,000,000 - — n a 2,500,000 tz .-e 1•• 2 2,000,000 z cA 1,500,000 "T1 t C* 1,000,000 , -i CO CO 500,000 Z 0-■ M N 0 c P '19 1§ ti�� ti ti '19 '19 . ti 9..' ti ti r • Current Plan (7 %) • Scenario 5(c) (7 %) I or Projected Net City and County Cost as a Percentage of Pay Scenario 5(c) - All Proposed Changes Combined a [Early Retirement is 55 & 15 (General) and the Earlier of 55 & 15 or 30 Years (Police/Fire)] c R- 35.0% n '.r o y CD ro ; 30.0% B g n 25.0% P.-: 0 'o C " PZ Da 20.0% 'V d 15.0% CA d '11 t "" 10.0% H 5.0% X2 CII eil 1§ ti�� ,ti ON, ti ' .dy L O ' ' 'V 1, O , ' ,1, 01' 1, 01' i z • Current Plan (7 %) • Scenario 5(c) (7 %) LA N CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 5(c) — Scenarios 1, 2, 3 and 4(c) combined. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 5(c) (all changes combined), assuming investment returns of 9% per annum throughout the projection period (sensitivity + 1 %). Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 5(c) County Cost County Cost 2012 10,186,427 2,743,158 2,114,677 628,481 628,481 2013 10,563,771 2,902,610 2,256,390 646,220 1,274,701 2014 10,930,660 3,078,191 2,415,552 662,639 1,937,340 2015 11,286,887 3,116,482 2,441,814 674,668 2,612,008 2016 11,495,620 3,142,899 2,448,557 694,342 3,306,350 2017 11,850,982 3,157,825 2,452,176 705,649 4,011,999 2018 12,203,840 3,164,175 2,450,286 713,889 4,725,888 2019 12,539,780 3,161,753 2,435,929 725,824 5,451,712 2020 12,901,662 3,164,594 2,426,398 738,196 6,189,908 2021 13,181,367 3,167,022 2,420,605 746,417 6,936,325 5 Year Totals 54,463,365 14,983,340 11,676,990 3,306,350 10 Year Totals 117,140,996 30,798,709 23,862,384 6,936,325 GRS Gabriel Roeder Smith & Company - 53 - ■ Projected Net City and County Cost Scenario 5(c) - All Proposed Changes Combined P [Early Retirement is 55 & 15 (General) and the Earlier of 55 & 15 or 30 Years (Police /Fire)] c PD 3,500,000 - n 7d '--' 0 CD � et 3,000,000 n o F y go c 2,500,000 - i w re 2,000,000 1 d Z 1,500,000 0 0 0 11 t 1,000,000 " 0 co to 500,000 CrJ C=7 Z X Cs7 N -- 0 0 0 --] o • Current Plan (9 %) • Scenario 5(c) (9 %) s Projected Net City and County Cost as a Percentage of Pay Scenario 5(c) - All Proposed Changes Combined ) [Early Retirement is 55 & 15 (General) and the Earlier of 55 & 15 or 30 Years (Police /Fire)] w o ✓ PD* 30.0% n o rt et no B 25.0% " n z b 20.0% il am 0 CA 15.0% i' z 10.0% O M H 5.0% CltCT1 N 1-1 cz 0.0% oti� oti� o oti� o. , (0 A o o''� oti oti 0 ti ti ti ti ti ti ti ti ti ti • Current Plan (9 %) • Scenario 5(c) (9 %) cm cm CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 6 — Freeze the Plan effective October 1, 2009. Members who are participants of the Plan as of October 1, 2009 continue to accrue benefits under the Plan. No new participants will enter the Plan after September 30, 2009. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 6. Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 6 County Cost County Cost 2012 10,321,710 2,746,240 2,667,415 78,825 78,825 2013 10,050,996 2,913,424 2,769,031 144,393 223,218 2014 9,850,158 3,101,952 2,902,140 199,812 423,030 2015 9,624,283 3,158,995 2,900,184 258,811 681,841 2016 9,180,024 3,210,571 2,881,145 329,426 1,011,267 2017 8,896,844 3,254,552 2,855,949 398,603 1,409,870 2018 8,626,977 3,294,074 2,827,996 466,078 1,875,948 2019 8,286,136 3,329,127 2,791,316 537,811 2,413,759 2020 8,000,583 3,373,902 2,763,647 610,255 3,024,014 2021 7,570,302 3,422,843 2,736,736 686,107 3,710,121 5 Year Totals 49,027,171 15,131,182 14,119,915 1,011,267 10 Year Totals 90,408,013 31,805,680 28,095,559 3,710,121 GRS Gabriel Roeder Smith & Company - 56 - IP Projected Net City and County Cost Scenario 6 - Freeze Plan as of October 1, 2009 (No New Entrants) P P 3,500,000 n 0 c a 3,000,000 " � y 0 0 2,500,000 P lz i4) ew -< 2,000,000 y C/1 b d 1,500,000 rn V 0 tnil lit 1,000,000 Z • C 0 d 500,000 H CO M N 1--1 ,1 ti'' ti ti 0 0% ti ticb y °' L D ti's. r ti 0\ 1 ' `- P I, 1 1 `L- fo 1 `ti • Current Plan • Scenario 6 cm • Projected Net City and County Cost as a Percentage of Covered Pay Scenario 6 - Freeze Plan as of October 1, 2009 (No New Entrants) n 40.0% n e 35.0 % - � F. 30.0% R ? II Ill II I II I il r r . c4.0 1 ; w 25.0% ed 20.0% •z L4 C 15.0% C C C - rn 10.0% - v CC CC C C 5.0% X z N or O l 0.0% 1 r r r i 1 I r I I = "ti 'LO,y�, ti�y� rL0 �0 ti0y� 'LO,Y � �O,yo� ti4 � ' C " • Current Plan • Scenario 6 i 00 CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Scenario 7 — Terminate the Plan effective October 1, 2009. For Members who are participants of the Plan as of October 1, 2009, benefits are frozen as of October 1, 2009. All frozen benefits are 100% vested as of October 1, 2009. No new participants will enter the Plan after September 30, 2009. The following Table shows the projected payroll and a comparison of the projected City and County costs under the baseline forecast versus Scenario 7. Projected Projected Cumulative Fiscal City and City and Reduction in Reduction in Year Covered County Cost County Cost City and City and End Payroll Current Plan Scenario 7 County Cost County Cost 2012 10,321,710 2,746,240 1,067,684 1,678,556 1,678,556 2013 10,050,996 2,913,424 1,166,122 1,747,302 3,425,858 2014 9,850,158 3,101,952 1,297,187 1,804,765 5,230,623 2015 9,624,283 3,158,995 1,304,111 1,854,884 7,085,507 2016 9,180,024 3,210,571 1,279,152 1,931,419 9,016,926 2017 8,896,844 3,254,552 1,256,551 1,998,001 11,014,927 2018 8,626,977 3,294,074 1,235,369 2,058,705 13,073,632 2019 8,286,136 3,329,127 1,209,120 2,120,007 15,193,639 2020 8,000,583 3,373,902 1,187,004 2,186,898 17,380,537 2021 7,570,302 3,422,843 1,169,844 2,252,999 19,633,536 5 Year Totals 49,027,171 15,131,182 6,114,256 9,016,926 10 Year Totals 90,408,013 31,805,680 12,172,144 19,633,536 GRS Gabriel Roeder Smith & Company - 59 - Projected Net City and County Cost Scenario 7 - Terminate Plan as of October 1, 2009 c 3,500,000 c 1 :3 1 A a- 3,000,000 B - 0 n 2,500,000 n 2,000,000 CA =7 , .cz 1,500,000 CA CA od 1,000,000 I I O�� �� 0 N. 0 O�� oti O 0 0 1> '' ti ti ti ti ti 1 ti 1 ti ti ■ Current Plan ■ Scenario 7 ■ 0 iir Projected Net City and County Cost as a Percentage of Covered Pay Scenario 7 - Terminate Plan as of October 1, 2009 n c 30.0% o �� CD ow- et '+ 25.0% n 0 F 'J Rc E 4 20.0% C1 no 15.0% 2 cA 0 10.0% `It O n od 5.0% 1 : 1 Z CO z z t 0—I 0.0% 1 I 1 1 I I I 1 i 0 VD . 0 101 'L � 'LO `l0 '1O �0~ % '1 1, ti0y �0 1. ti0ti C-, • Current Pl an • Scenario 7 cn CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 1 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. Eligibility 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. GRS Gabriel Roeder Smith & Company - 62 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 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. Eligibility 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. Disability 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. GRS Gabriel Roeder Smith & Company - 63 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 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% 4 40% 5 60% 6 80% 7 100% M. Normal Form 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. GRS Gabriel Roeder Smith & Company - 64 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 ACTUARIAL ASSUMPTIONS AND METHODS 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 Contingencies 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. General Firefighters and Service Employees Police Officers Less than 5 years 6.5% 7.5% 5- 9years 5.5% 5.5% 10 —14 years 4.5% 5.5% 15+ years 3.0% 3.5% GRS Gabriel Roeder Smith & Company - 65 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 E. Employee Withdrawal Rates 1. Withdrawal rates for male General Employees were used in accordance with the following illustrative example: Withdrawal Rates per 100 Employees Service Agee 0 1 2 3 4 5 6 7 8 9 10+ 20 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: Withdrawal Rates per 100 Employees Service Age 0 1 2 3 4 5 6 7 8 9 10+ 20 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. GRS Gabriel Roeder Smith & Company - 66 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 3. Withdrawal rates for male Firefighters and Police Officers were used in accordance with the following illustrative example: Withdrawal Rates per 100 Employees Service Age 0 1 2 3 4 5 6 7 8 9 10+ 20 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 example: Withdrawal Rates per 100 Employees Service 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 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. GRS Gabriel Roeder Smith & Company - 67 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 F. Disability Rates 1. Line -of -duty disability rates for General Employees were used in accordance with the following illustrative example. Age 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% 60 0.048% 0.022% 65 0.050% 0.020% 2. Non -duty disability rates for General Employees were used in accordance with the following illustrative example. Age Male Female 20 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% 65 0.215% 0.105% The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2009 FRS Actuarial Valuation. GRS Gabriel Roeder Smith & Company - 68 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 3. Line -of -duty disability rates for Firefighters and Police Officers were used in accordance with the following illustrative example. Age Male Female 20 0.012% 0.008% 25 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% 60 0.301% 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. Age Male Female 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% 65 0.206% 0.328% The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2009 FRS Actuarial Valuation. GRS Gabriel Roeder Smith & Company - 69 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 G. Assumed Retirement Age 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 Age Employees Police Officers 55 — 64 10% 20% 65 and above 100% 100% 3. For members with twenty -five (25) or more years of service: General Firefighters and Ag Employees Police Officers Under 55 2% 5% 55 25% 50% 56 -64 5% 20% 65 and above 100% 100% GRS Gabriel Roeder Smith & Company - 70 - CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 Note: For Scenarios 4 and 5, retirement rates were used in accordance with the following tables. 1. For General Employees: Years of Service Age 0 - 10 10 -15 15 -25 25 -30 30 or more Under 55 0% 0% 0% 2% 2% 55 0% 5% 10% 20% 25% 55 — 64 0% 5% 10% 4% 5% 65 100% 100% 100% 100% 100% 2. For Firefighters and Police Officers: Years of Service Ag 0 - 10 10 -15 15 -25 25 -30 30 or more Under 55 0% 0% 0% 4% 5% 55 0% 10% 15% 40% 50% 55 — 64 0% 10% 15% 15% 20% 65 100% 100% 100% 100% 100% 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. GRS Gabriel Roeder Smith & Company - 71 CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL STUDY AS OF OCTOBER 1, 2009 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 Plan had always been in effect. The normal cost for the Plan 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 Plan is the excess of the actuarial present value of 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 Plan assets. GRS Gabriel Roeder Smith & Company - 72 -