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HomeMy WebLinkAbout2016 02 09 Other, 2014 Actuarial ValuationDate: February 9, 2016 The attached document was referenced and discussed with the Board Members at the February 9, 2016 Board of Trustees Regular Meeting. GRGabriel S Roeder Smith & Company Consultants & Actuaries CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN ACTUARIAL VALUATION AS OF OCTOBER 1, 2014 This Valuation Determines the Annual Contribution for the Plan Year October 1, 2015 through September 30, 2016 to be Paid in Plan Year October 1, 2015 to September 30, 2016 September 2, 2015 Gabriel Raeder Smith & Company City of Winter Springs Defined Benefit Plan TABLE OF CONTENTS Page Commentary 1 I. Summary of Retirement Plan Costs ............................................ ............................... 5 II. Comparison of Cost Data of Current and Prior Valuations ........ ............................... 7 III. Characteristics of Participants in Actuarial Valuation ................ ............................... 8 IV. Statement of Assets .................................................................... ............................... 9 V. Reconciliation of Plan Assets 10 VI. Actuarial Gain / (Loss) ............................................................. ............................... 12 VII. Amortization of Unfunded Actuarial Accrued Liability .......... ............................... 13 VIII. Accounting Disclosure Exhibit ................................................. ............................... 14 IX. Outline of Principal Provisions of the Retirement Plan ........... ............................... 23 X. Actuarial Assumptions and Actuarial Cost Methods Used ...... ............................... 26 XI. Distribution of Plan Participants by Attained Age Groups and Service Groups..... 35 XII. Statistics for Participants Entitled to Deferred Benefits and Participants ReceivingBenefits ................................................................... ............................... 40 XIII. Reconciliation of Employee Data ............................................. ............................... 41 XIV. Projected Retirement Benefits .................................................. ............................... 42 XV. Recent Plan Experience ............................................................ ............................... 43 XVI. State Required Exhibit .............................................................. ............................... 45 Gabriel Roeder Smith & Company RS Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite 505 954.525.4083 fax Ft. Lauderdale, FL 33301 -1804 www.gabrielroedercom September 2, 2015 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, 2014 Actuarial Valuation We are pleased to present our October 1, 2014 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, 2015 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 $2,422,121 (34.1 %). The figure in parentheses is the Plan cost expressed as a percentage of projected covered annual payroll for fiscal year beginning October 1, 2015 ($7,093,513). This total cost is to be met by member, County and City contributions. We anticipate member contributions will be $354,676 (5.0% of projected covered payroll for fiscal year ending September 30, 2016). The resulting minimum required County and City contribution is $2,067,445 (29.1 %). We recommend the City continue to contribute the dollar amount of required contribution due to the closing of the Plan to future general employees. Changes in Actuarial Assumptions, Methods and Plan Provisions Plan provisions remain unchanged from our October 1, 2013 Actuarial Valuation. Plan provisions are outlined on Table IX. Board of Trustees September 2, 2015 Page 2 Assumed disability rates have been updated to reflect the disability assumptions used in the July 1, 2014 FRS Actuarial Valuation. The remaining actuarial assumptions and methods are unchanged from our October 1, 2013 Actuarial Valuation. The actuarial assumptions and methods are outlined on Table X. Government Accounting Standards Board Statement Number 68 (GASB No. 68) expense and projected disclosures are included. Comparison of October 1, 2013 and October 1, 2014 Valuation Results Table 11 of our report provides information of a comparative nature. The left columns of the Table indicate the costs as calculated for October 1, 2013. The center columns indicate the costs as calculated for October 1, 2014 prior to the change in actuarial assumptions. The right columns indicate the costs as calculated for October 1, 2014 after the change in actuarial assumptions. Comparing the left and center columns of Table 11 shows the effect of Plan experience during the year. The number of active participants decreased by approximately 7% - covered payroll decreased by approximately 5 %. Total normal cost decreased both as a dollar amount and as a percentage of covered payroll. The unfunded actuarial accrued liability decreased both as a dollar amount and as a percentage of covered payroll. The net County and City minimum funding requirement also decreased both as a dollar amount and as a percentage of covered payroll. Comparing the center and right columns of Table 11 shows the effect of the update in actuarial assumptions. Total normal cost increased slightly as a dollar amount but remains unchanged as a percentage of covered payroll. The unfunded actuarial accrued liability increased slightly both as a dollar amount and as a percentage of covered payroll. The net County and City minimum funding requirement increased slightly as a dollar amount but remains unchanged as a percentage of covered payroll. The value of vested accrued benefits exceeds Plan assets, resulting in a Vested Benefit Security Ratio (VBSR) of 83.5% (83.4% prior to update in actuarial assumptions) which is an increase from 77.4% as of the October 1, 2013 Actuarial Valuation. The VBSR is measured on a market value of assets basis. Plan Experience The Plan experienced an actuarial gain in the amount of $863,149 this year. This indicates actual overall Plan experience was more favorable than expected. Table XV (salary, turnover and investment yield) provides figures on recent Plan experience. Salary experience indicates actual salary increases averaged approximately 2.5% for General and Forensic Employees and 1.8% for Firefighters and Police Officers for the Plan Year ended September 30, 2014. Salary experience was generally a source of actuarial gain. Gabriel Roeder Smith & Company Board of Trustees September 2, 2015 Page 3 Employee turnover this year was 120% of the assumed turnover for General and Forensic Employees and 230% of the assumed turnover for Firefighters and Police Officers. Employee turnover was generally an additional source of actuarial gain. The smoothed value investment return of 10.5% was greater than the investment return assumption of 8.0 %. Smoothed value investment return was a source of actuarial gain during the year. The three, five and ten -year average annual smoothed value investment returns are 7.0 %, 6.1% and 7.3 %, respectively. The one, three, five and ten -year average annual market value returns are 11.9 %, 15.8 %, 11.5% and 7.2 %, respectively. Member Census and Financial Data The City submitted the Member census data used for this actuarial valuation to us as of October 1, 2014. This information contains name, Social Security number, date of birth, date of hire, October 1, 2014 rate of pay, actual salary paid and member contributions for the previous year. Dates of termination and retirement are provided where applicable. The City updated information on inactive participants including retirees, beneficiaries and vested terminees. We used financial information concerning Plan assets as provided by the City as of September 30, 2014. We do not audit the Member census data and asset information provided to us. However, we perform certain reasonableness checks and on this basis we believe the information 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. If all actuarial assumptions are met and if all future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits. Plan minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act with normal cost determined as a level percent of covered payroll and a level dollar amortization payment using an initial closed amortization period of 30 years. The VBSR may be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations based upon funding assumptions but may not be appropriate for assessing the need for or the amount of future contributions. The funded ratio is for informational purposes and is not appropriate for assessing the sufficiency of Plan assets to cover the estimated cost of settling the Plan's benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. Gabriel Roeder Smith & Company Board of Trustees September 2, 2015 Page 4 The GASB Plan Fiduciary Net Position as a Percentage of Total Pension Liability may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from anticipated under the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of the actuary's assignment, the actuary did not perform an analysis of the potential range of such future measurements. This report should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This report may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of the Plan sponsor. 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., E.A. Jennifer M. Borregard, E. A. Senior Consultant and Actuary 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, 2014 -5- Gabriel Roeder Smith & Company Prior Assumptions Current Assumptions Cost % of Cost % of Data Payroll Data Payroll A. Participant Data Summary (Table III) 1. Active Employees 141 N/A 141 N/A 2. Terminated Vested 142 N/A 142 N/A 3. Receiving Benefits 85 N/A 85 N/A 4. Total Annual Payroll of Active Employees $ 7,093,513 100.0% $ 7,093,513 100.0% B. Total Normal Costs 1. Age Retirement Benefits $ 597,597 8.4% $ 612,482 8.6% 2. Termination Benefits 185,693 2.6% 185,877 2.6% 3. Death Benefits 23,924 0.3% 24,273 0.3% 4. Disability Benefits 24,471 0.3% 11,770 0.2% 5. Estimated Expenses 159,424 2.2% 159,424 2.2% 6. Total Annual Normal Costs $ 991,109 14.0% $ 993,826 14.0% C. Total Actuarial Accrued Liability 1. Age Retirement Benefits Active Employees $ 19,637,808 276.8% $ 19,923,745 280.9% 2. Termination Benefits Active Employees 204,045 2.9% 199,338 2.8% 3. Death Benefits Active Employees 499,571 7.0% 505,334 7.1% 4. Disability Benefits Active Employees 524,563 7.4% 245,677 3.5% 5. Retired or Terminated Vested Participants Receiving Benefits 20,292,178 286.1% 20,292,178 286.1% 6. Terminated Vested Participants Entitled to Future Benefits 5,544,795 78.2% 5,544,795 78.2% 7. Deceased Participants Whose Beneficiaries are Receiving Benefits 1,675,000 23.6% 1,675,000 23.6% 8. Disabled Participants Receiving Benefits 0 0.0% 0 0.0% 9. Miscellaneous Liability (Refunds in Process) 20,038 0.3% 20,038 0.3% 10. Total Actuarial Accrued Liability $ 48,397,998 682.3% $ 48,406,105 682.4% D. Assets (Table V) 1. Smoothed Actuarial Value of Assets $ 33,841,977 477.1% $ 33,841,977 477.1% 2. Market Value of Assets $ 36,821,261 519.1% $ 36,821,261 519.1% E. Unfunded Actuarial Accrued Liability (C. -D.1.) $ 14,556,021 205.2% $ 14,564,128 205.3% -5- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Summary of Retirement Plan Costs as of October 1, 2014 F. Minimum Required Contribution 1. Total Normal Cost (including expenses) 2. Amortization of Unfunded Liability 3. Interest Adjustment 4. Total Payment Table I (Cont'd) Prior Assumptions Current Assumptions Cost % of Cost % of Data Payroll Data Payroll $ 991,109 14.0% $ 993,826 14.0% 1,318,777 18.6% 1,319,444 18.6% 108,687 1.5% 108,851 1.5% $ 2,418,573 34.1% $ 2,422,121 34.1% G. Expected payroll of active employees for 2015 / 2016 year (1.000 x $7,093,513) $ 7,093,513 H. Contribution Sources (percent of expected 2015 / 2016 payroll) 1. County and City $ 2,063,897 2. Member 354,676 3. Total required contribution $ 2,418,573 I. Actuarial Gains / (Losses) $ 863,149 J. Actuarial Present Value of Vested Accrued Benefits 1. Retired, Terminated Vested, Beneficiaries and Disabled Receiving Benefits $ 21,967,178 2. Terminated Vested Participants Entitled to 100.0% $ 7,093,513 100.0% 29.1% $ 2,067,445 29.1% 5.0% 354,676 5.0% 34.1% $ 2,422,121 34.1% 12.2% $ 863,149 12.2% 309.7% $ 21,967,178 309.7% Future Benefits and Miscellaneous 5,564,833 78.4% 5,564,833 78.4% 3. Active Participants Entitled to Future Benefits 16,600,310 234.0% 16,584,727 233.8% 4. Total Actuarial Present Value of Vested Accrued Benefits $ 44,132,321 622.2% $ 44,116,738 621.9% K. Unfunded Actuarial Present Value of Vested Accrued Benefits Q. - D.2., not less than zero) $ 7,311,060 103.1% $ 7,295,477 102.8% L. Vested Benefit Security Ratio (D.2. - J.) 83.4% N/A 83.5% N/A -6- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Comparison of Cost Data of October 1, 2013 and October 1, 2013 _ Cost % of Data Compensation A. Participants Table II )ctober 1, 2014 Valuations Prior Assumptions Current Assumptions October 1, 2014 October 1, 2014 Cost % of Cost % of Data Compensation Data Compensation -7- Gabriel Roeder Smith & Company 1. Active Employees 152 N/A 141 N/A 141 N/A 2. Terminated Vested 135 N/A 142 N/A 142 N/A 3. Receiving Benefits 79 N/A 85 N/A 85 N/A 4. Total Annual Payroll of Active Employees $ 7,431,031 100.0% $ 7,093,513 100.0% $ 7,093,513 100.0% B. Total Normal Costs $ 1,064,360 14.3% $ 991,109 14.0% $ 993,826 14.0% C. Actuarial Accrued Liability $ 45,926,780 618.0% $ 48,397,998 682.3% $ 48,406,105 682.4% D. Present Value of Future Benefits $ 53,323,387 717.6% $ 55,175,581 777.8% $ 55,265,695 779.1% E. Smoothed Actuarial Value of Assets $ 29,908,683 402.5% $ 33,841,977 477.1% $ 33,841,977 477.1% F. Market Value of Assets $ 32,172,541 432.9% $ 36,821,261 519.1% $ 36,821,261 519.1% G. Unfunded Actuarial Accrued Liability $ 16,018,097 215.6% $ 14,556,021 205.2% $ 14,564,128 205.3% H. County and City Minimum Funding Payment $ 2,230,908 30.0% $ 2,063,897 29.1% $ 2,067,445 29.1% I. Ratios 1. Vested Benefit Security Ratio 77.4% N/A 83.4% N/A 83.5% N/A 2. Funded Ratio (F. / C.) 70.1% N/A 76.1% N/A 76.1% N/A -7- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Characteristics of Participants in Actuarial Valuation as of October 1, 2014 A. Active Plan PartiCiDants Summ 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 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 Table III 111 15 15 141 $ 7,093,513 73 142 12 0 1. Retired or terminated vested receiving benefits $ 1,942,342 2. Terminated vested entitled to future benefits $ 1,193,633 3. Beneficiaries of deceased participants $ 167,078 4. Disabled participants $ 0 0 Gabriel Roeder Smith & Company Table IV City of Winter Springs Defined Benefit Plan Statement of Assets as of October 1, 2014 A. Cash and Cash Equivalents $ 4,133,794 B. General Investments 1. Common Stock $ 22,185,809 2. Bonds 7,120,059 3. Real Estate 2,986,539 C. Receivables 1. Accrued Interest $ 0 2. Employee Contribution Receivable 13,783 3. City and County Contributions Receivable 381,277 4. Accounts Receivable 0 D. Payables 1. Accounts Payable $ 0 2. Due to Broker 0 E. Plan Assets (A + B + C - D) $ 36,821,261 -9- 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, 2013 $ 32,172,541 B. Receipts During Period 1. Contributions a. Member $ 369,500 b. City and County 2,527,508 c. Total $ 2,897,008 2. Investment Income a. Interest and dividends $ 470,452 b. Realized / unrealized gains / ( losses) 3,414,892 c. Net investment income $ 3,885,344 3. Total receipts during period $ 6,782,352 C. Disbursements During Period 1. Pension payments and contribution refunds $ 1,974,208 2. Administrative expenses 159,424 3. Total disbursements during period $ 2,133,632 D. Total Market Value of Assets as of September 30, 2014 $ 36,821,261 -10- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Development of Smoothed Actuarial Value of Assets as of September 30 A. Preliminary total smoothed 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 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 smoothed actuarial value end of year 1. Preliminary total smoothed actuarial value end of year A. + D. + E.2. + F.6. 2. Upper corridor limit: 120% of C. 3. Lower corridor limit: 80% of C. 4. Total smoothed 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 smoothed actuarial value 1. Smoothed actuarial value rate of return J. Market value rate of return Table V (font' d) 2013 2014 2015 2016 2017 2018 $ 26,852,721 $ 29,908,683 $ 33,841,977 27,039,803 32,172,541 36,821,261 32,172,541 36,821,261 744,786 763,376 4,387,952 3,885,344 21192,976 2,604,338 2,194,976 1,281,006 438,995 256,201 515,483 438,995 256,201 (393,471) 515,483 438,995 (251,629) (393,471) 515,483 (191,178) (251,628) (393,473) 118,200 565,580 817,206 29,908,683 33,841,977 38,607,049 44,185,513 25,738,033 29,457,009 29,908,683 33,841,977 2,263,858 2,979,284 8.5% 10.5% 16.0% 11.9% -11- Gabriel Roeder Smith & Company 256,201 438,995 256,201 515,483 438,996 1,210,679 695,197 256,202 256,202 City of Winter Springs Defined Benefit Plan Actuarial Gain / (Loss) for Plan Year Ended September 30, 2014 A. Derivation of Actuarial Gain / (Loss) 1. City and County net normal cost 2. Unfunded actuarial accrued liability 3. City and County contributions previous year 4. Interest on: (a) City and County net normal cost (b) Unfunded actuarial accrued liability (c) City and County contributions (d) Net total: (a) + (b) - (c) 5. Increase (decrease) in unfunded actuarial accrued liability due to assumption changes 6. Expected unfunded actuarial accrued liability current year: (1. +2.- 3. +4. +5.) 7. Actual unfunded actuarial accrued liability current year 8. Actuarial gain (loss): (6. - 7.) B. Approximate Portion of Gain / (Loss) due to Investments 1. Smoothed actuarial value of assets previous year 2. Contributions during period 3. Benefits and administrative expenses during period 4. Expected appreciation for period 5. Expected smoothed actuarial value of assets current year: (1. +2.- 3. +4.) 6. Actual smoothed actuarial value of assets current year 7. Approximate investment gain (loss) due to investments: (6. - 5.) C. Approximate Portion of Gain / (Loss) due to Liabilities: A. - B. -12- Gabriel Roeder Smith & Company Table VI $ 692,808 16, 018, 097 2,527,508 $ 55,425 1,281,448 101,100 $ 1,235,773 $ 8,107 $ 15,427,277 14, 564,128 $ 863,149 $ 29,908,683 2,897,008 2,133,632 2,423,229 $ 33,095,288 $ 33,841,977 $ 746,689 $ 116,460 Table VII City of Winter Springs Defined Benefit Plan Amortization of Unfunded Actuarial Accrued Liability A. Unfunded Actuarial Accrued Liabili B. Covered Payroll History* Unfunded Amortization Date Liability Increase Payment $ October 1, 2014 $ 14,564,128 $ 1,319,444 October 1, 2015 $ 14,304,259 $ 1,319,444 October 1, 2016 $ 14,023,600 $ 1,319,444 October 1, 2017 $ 13,720,488 $ 1,319,444 October 1, 2018 $ 13,393,128 $ 1,319,444 October 1, 2044 $ 0 $ 0 B. Covered Payroll History* Ten -Year Average Annual Increase (2.3 %) * Information prior to October 1, 2008 as reported by prior actuary. -13- Gabriel Roeder Smith & Company Covered Annual Date Payroll Increase October 1, 2014 $ 7,093,513 (4.5 %) October 1, 2013 $ 7,431,031 (9.6 %) October 1, 2012 $ 8,216,342 (7.4 %) October 1, 2011 $ 8,875,836 (13.9 %) October 1, 2010 $ 10,304,054 (4.2 %) 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 N/A Ten -Year Average Annual Increase (2.3 %) * Information prior to October 1, 2008 as reported by prior actuary. -13- Gabriel Roeder Smith & Company 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 II. Financial Accounting Standards Board Allocation as of October 1, 2014 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, 2013 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, 2014 C. Significant Matters Affecting Calculations 10/01/2013 Prior Assumptions 10/01/2014 Table VIII Current Assumptions 10/01/2014 79 85 85 135 142 142 152 141 141 366 368 368 $ 20,569,268 $ 21,967,178 $ 21,967,178 21,001,590 22,165,143 22,149,560 $ 41,570,858 $ 44,132,321 $ 44,116,738 $ 536,915 $ 478,281 $ 471,910 $ 42,107,773 $ 44,610,602 $ 44,588,648 1. Assumed rate of return used in determining actuarial present values 2. Change in plan provisions 3. Change in actuarial assumptions -14- Gabriel Roeder Smith & Company $ 42,107,773 $ 0 (21,954) (1,974,208) 4,477,037 $ 2,480,875 $ 44,588,648 8.0% None. See Table X. Item L. City of Winter Springs Defined Benefit Plan Accounting Disclosure Exhibit III. Net Pension Liability and Related Ratios (GASB No. 67 & No. 68) Measurement date A. Total Pension Liability (TPL) Service Cost Interest Benefit Changes Difference Between Actual and Expected Experience Assumption Changes Benefit Payments, including Refunds of Member Contributions Net Change in Total Pension Liability Total Pension Liability (TPL) - (beginning of year) Total Pension Liability (TPL) - (end of year) B. Plan Fiduciary Net Position Contributions - County and City Contributions - Member Net Investment Income Benefit Payments, including Refunds of Member Contributions Administrative Expenses Other Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position - (beginning of year) Plan Fiduciary Net Position - (end of year) C. Net Pension Liability MQ - (end of year) (A) - (B) D. Plan Fiduciary Net Position as a Percentage of TPL: (B) (A) E. Covered Employee Payroll * * F. NPL as a Percentage of Covered Employee Payroll (C) / (E) G. Notes to Schedule: Actual 9/30/2014 $ 886,819 3,666,120 Table VIII (Cont'd) Proj ected 9/30/2015* $ 834,402 3,845,296 0 0 (581,481) (107,513) 0 8,107 (1,974,208) (2,348,608) 1,997,250 2,231,684 46,508,261 48,505,511 $ 48,505,511 $ 50,737,195 $ 2,527,508 3 69, 500 3,885,344 (1,974,208) (159,424) 0 4,648,720 32,172,541 $ 36,821,261 11,684,250 75.91 % i" naigw 144.53 % Valuation Date 10/01/2013 Update procedures were used to roll forward the TPL to the measurement date. No assumption or benefit changes during FYE 2014. $ 2,230,908 3 54, 676 2,948,803 (2,348,608) (159,424) 0 3,026,355 36,821,261 $ 39,847,616 10,889,579 78.54% $ 7,093,513 153.51 % 10/01/2014 See Table X, Item L. for assumption changes during FYE 2015. No benefit changes during FYE 2015. * Projected - actual amounts will be available after fiscal year end * * As reported for valuation - GASB No. 67 & No. 68 reference total payroll -15- Gabriel Roeder Smith & Company Table VIII (Cont'd) City of Winter Springs Defined Benefit Plan Accounting Disclosure Exhibit IV. Schedule of Employer Contributions (GASB No. 67 & No. 68) ' Information prior to 2008 reported by prior actuary 2 Per City CAFR prior to September 30, 2014 s Projected prior to fiscal year ended September 30, 2014. As reported for valuation - GASB No. 67 & No. 68 reference total payroll. 4 Projected - actual amounts will be available after fiscal year end -16- Gabriel Roeder Smith & Company Actuarially Contribution Actual Contribution Fiscal Year Determined Actual Deficiency / Covered as a % of End 9/30 i Contribution Contribution 2 (Excess) Payroll 3 Covered Payroll 2005 $ 1,424,101 $ 1,260,626 $ 163,475 $ 8,982,189 14.03% 2006 1,564,228 1,505,020 59,208 9,659,446 15.58% 2007 1,807,722 1,843,147 (35,425) 10,489,087 17.57% 2008 2,005,100 2,009,085 (3,985) 11,190,013 17.95% 2009 1,781,651 1,781,197 454 10,767,596 16.54% 2010 2,311,058 2,311,058 0 10,752,720 21.49% 2011 2,616,924 2,616,924 0 10,304,054 25.40% 2012 1,965,643 1,913,717 51,926 8,875,836 21.56% 2013 2,258,769 2,258,798 (29) 8,216,342 27.49% 2014 2,474,578 2,527,508 (52,930) 8,084,054 31.27% 2015 4 2,230,908 2,230,908 0 7,093,513 31.45% ' Information prior to 2008 reported by prior actuary 2 Per City CAFR prior to September 30, 2014 s Projected prior to fiscal year ended September 30, 2014. As reported for valuation - GASB No. 67 & No. 68 reference total payroll. 4 Projected - actual amounts will be available after fiscal year end -16- Gabriel Roeder Smith & Company Table VIII (Cont'd) City of Winter Springs Defined Benefit Plan Accounting Disclosure Exhibit V. Notes to Schedule of Contributions (GASB No. 67 & No. 68 Valuation Date: Actuarially determined contributions are calculated as of October 1st - two year(s) prior the fiscal year end in which contributions are reported. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level dollar, closed Amortization Period 30 years Asset Valuation Method 5 -year smoothed market Inflation 3.0% Salary Increases 3.0%-7.5% Investment Rate of Return 8.0% Retirement Age Experience -based table of rates that are specific to the type of eligibility condition Mortality For healthy General Employee participants, RP -2000 Combined Healthy Participant Mortality Tables, separate rates for males and females, with fully generational mortality improvements projected to each future payment date with Scale AA. For healthy Firefighter and Police Officer participants, RP -2000 Combined Healthy Participant Mortality Tables with Blue Collar Adjustment, separate rates for males and females, with fully generational mortality improvements projected to each future payment date with Scale AA. For disabled participants, RP -2000 Disabled Mortality Tables, separate rates for males and females, with fully generational mortality improvements projected to each future payment date with Scale AA. Other Information: Benefit Changes 2011: Plan closed to future general employees; pensionable earnings to base pay, overtime - maximum 150 hours and accrued leave balance as of July 1, 2011; vesting schedule updated; unreduced early retirement eligibility updated; final average pay updated to five year average and future service benefit accrual rate reduced for general employees. 2008: Benefit accrual rate increased. Assumption Changes 2014: Disability rates updated. 2008: Mortality, salary increase, withdrawal, disability and retirement rates updated; administrative expense assumption introduced and actuarial cost method updated. -17- Gabriel Roeder Smith & Company Table VIII (Cont'd) City of Winter Springs Defined Benefit Plan Accounting Disclosure Exhibit VI. Discount Rate (GASB No. 67 & No. 68) A discount rate of 8.0% was used to measure the TPL. This discount rate was based on the expected rate of return on Plan investments of 8.0 %. The projection of cash flows used to determine this discount rate assumed member contributions will be made at the current member contribution rate and employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member contribution rate. Based on these assumptions, the pension Plan's fiduciary net position was projected to be available to make all projected future expected benefit payments of current Plan members. Therefore, the long -term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the TPL. VII. Sensitivitv of the NPL to the Discount Rate ASSUmntlon (GASB No. 67 & No. 6 Discount Rate NPL Measurement date: 9/30/2014 1% Decrease 7% $ 17,593,921 Current Discount Rate 8% $ 11,684,250 Measurement date: 9/30/2015 * Current 1% Decrease Discount Rate —I% Increase 9% $ 6,701,110 Discount Rate 7% 8% NPL $ 16,972,156 $ 10,889,579 $ * Projected - actual amounts will be available after fiscal year end -18- Gabriel Roeder Smith & Company 1% Increase 9% 5,754,982 Table VIII (Cont'd) City of Winter Park Defined Benefit Plan Accounting Disclosure Exhibit VIII. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (GASB No. 68) Pension Expense for Fiscal Year Ending September 30, 2015 $ 1,355,915 Summary of Outstanding Deferred Inflows and Outflows of Resources as of September 30, 2015 Differences between actual and expected experience on liabilities Changes of assumptions or other inputs Net difference between projected and actual earnings on pension plan investments Total Deferred Outflows of Resources 0 0 0 $ 0 Deferred Inflows of Resources 455,072 0 1,024,805 $ 1,479,877 Summary of Deferred Outflows and Inflows of Resources that will be Recognized in Pension Expense in Future Years. Year Ending 30 -Sep Amount 2016 $ (382,610) 2017 (382,610) 2018 (382,610) 2019 (332,047) 2020 0 Thereafter 0 -19- Gabriel Roeder Smith & Company Table VIII (Cont'd) City of Winter Park Defined Benefit Plan Accounting Disclosure Exhibit The following information is not required to be disclosed but is provided for informational purposes. IX. Components of Pension Expense GASB No. 68) Proj ected Measurement Date 9/30/2014 9/30/2015* Service Cost $ 886,819 $ 834,402 Interest on Total Pension Liability 3,666,120 3,845,296 Current -Period Benefit Changes 0 0 Contributions - Member (369,500) (354,676) Projected Earnings on Plan Investments (2,604,338) (2,948,803) Administrative Expenses 159,424 159,424 Other Changes in Plan Fiduciary Net Position 0 0 Recognition of Beginning Deferred Outflows / (Inflows) due to Liabilities (126,409) (149,527) Recognition of Beginning Deferred Outflows / (Inflows) due to Assets (256,201) (256,201) Total Pension Expense $ 1,355,915 $ 1,129,915 * Projected - actual amounts will be available after measurement date -20- Gabriel Roeder Smith & Company Table VIII (Cont'd) City of Winter Park Defined Benefit Plan Accounting Disclosure Exhibit The following information is not required to be disclosed but is provided for informational purposes. X. Recognition of Deferred Outflows and (Inflows) Due to Liabilities (GASB No. 68) Recognition of Deferred Outflows due to Differences Between Actual and Expected Experience on Liabilities Remaining Initial Recognition Recognition Recognition Period as of Amount for Balance as of Established Initial Balance Period 9/30/2014 2013/2014 9/30/2014 2013/2014 $ 0 4.6 3.6 $ 0 $ 0 TOTAL $ 0 $ 0 Recognition of Deferred (Inflows) due to Differences Between Actual and Expected Experience on Liabilities Remaining Initial Recognition Recognition Recognition Period as of Amount for Balance as of Established Initial Balance Period 9/30/2014 2013/2014 9/30/2014 2013/2014 $ (581,481) 4.6 3.6 $ (126,409) $ TOTAL $ (126,409) $ Recognition of Deferred Outflows due to Changes of Assumptions or Other Inputs Remaining Initial Recognition Recognition Recognition Period as of Amount for Established Initial Balance Period 9/30/2014 2013/2014 2013/2014 $ 0 4.6 3.6 $ 0 $ TOTAL $ 0 $ Recognition of Deferred (Inflows) due to Changes of Assumptions or Other Inputs Remaining Initial Recognition Recognition Recognition Period as of Amount for Established Initial Balance Period 9/30/2014 2013/2014 2013/2014 $ 0 4.6 3.6 $ 0 $ TOTAL $ 0 $ -21- Gabriel Roeder Smith & Company (455,072) (455,072) Balance as of 9/30/2014 Balance as of 9/30/2014 1 1 1 01 Table VIII (Cont'd) City of Winter Park Defined Benefit Plan Accounting Disclosure Exhibit The following information is not required to be disclosed but is provided for informational purposes. XI. Recognition of Deferred Outflows and (Inflows) Due to Assets (GASB No. 68) Recognition of Deferred Outflows / (Inflows) due to Difference Between Projected and Actual Earnings on Pension Plan Investments Remaining Initial Recognition Recognition Recognition Period as of Amount for Balance as of Established Initial Balance Period 9/30/2014 2013/2014 9/30/2014 2013/2014 $ (1,281,006) 5 4 TOTAL -22- $ (256,201) $ (1,024,805) $ (256,201) $ (1,024,805) Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Outline of Principal Provisions of the Retirement Plan A. Effective Date Table IX 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 2011 -57 adopted December 12, 2011. B. Eligibility Requirements General Employees hired prior to October 1, 2011, Police Officers and Forensic Professionals 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. Electing transferring Firefighters as of October 2, 2008 under the Agreement with the County. C. Accrual Service Years of Accrual Service are any Plan Years during which an Employee completes at least 1,000 hours of service, including years of service completed prior to participation in the Plan. D. Compensation Wages, salaries and other amounts received (whether or not paid in cash) for personal services actually rendered in the course of employment. Effective October 10, 2011 Compensation shall exclude commissions, bonuses, overtime pay in excess of one hundred fifty (150) hours per Plan year and payments for accrued leave in excess of the dollar amount of an Employee's accrued leave balance on July 1, 2011. E. Final Average Compensation Average earnings during the best five (5) consecutive years out of the last ten (10) years preceding termination or retirement, but not less than the three (3) highest consecutive compensation periods during employment with the City as of September 30, 2011. 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. -23- Gabriel Roeder Smith & Company Table IX (Cont'd) City of Winter Springs Defined Benefit Plan Outline of Principal Provisions of the Retirement Plan 2. Benefit: For Firefighters, Police Officers and Forensic Professionals, 3.00% times Final Average Compensation multiplied by Accrual Service, up to a maximum of 30 years. For General Employees, 3.00% times Accrual Service earned through September 30, 2011 times Final Average Compensation plus 2.50% times Accrual Service earned after September 30, 2011 times Final Average Compensation, up to a maximum of 30 years of Accrual Service. G. Earlv Retirement 1. Eligibility (a) Attainment of age 55 and completion of 15 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: Accrued benefit calculated as for Normal Retirement based upon service and pay at Disability Retirement Date. -24- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Outline of Principal Provisions of the Retirement Plan J. Death Benefit Table IX (Cont'd) 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. K. Participant Contributions Five percent (5 %) of compensation for all employees. 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 7 0% 7 or More 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. -25- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation A. Mortality Table X For healthy General Employee participants, RP -2000 Combined Healthy Participant Mortality Tables, separate rates for males and females, with fully generational mortality improvements projected to each future payment date with Scale AA. For healthy Firefighter and Police Officer participants, RP -2000 Combined Healthy Participant Mortality Tables with Blue Collar Adjustment, separate rates for males and females, with fully generational mortality improvements projected to each future payment date with Scale AA. For disabled participants, RP -2000 Disabled Mortality Tables, separate rates for males and females, with fully generational mortality improvements projected to each future payment date with Scale AA. 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. -26- 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% -26- 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: V PF Withdrawal Rates per 100 Employees Service Age 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: The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2014 Florida Retirement System (FRS) Actuarial Valuation. -27- Gabriel Roeder Smith & Company 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, 2014 Florida Retirement System (FRS) Actuarial Valuation. -27- 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 example: Withdrawal Rates per 100 Employees Service Awe 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: The withdrawal assumptions are the withdrawal assumptions used in the July 1, 2014 FRS Actuarial Valuation. -28- Gabriel Roeder Smith & Company 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, 2014 FRS Actuarial Valuation. -28- 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. Age Male Female 20 0.000% 0.000% 25 0.001% 0.001% 30 0.001% 0.001% 35 0.001% 0.001% 40 0.001% 0.001% 45 0.004% 0.001% 50 0.006% 0.006% 55 0.006% 0.006% 60 0.010% 0.013% IL 65 0.010% 0.010% 2. Non -duty disability rates for General Employees were used in accordance with the following illustrative example. Age Male Female 20 7 0.000% 0.000% 25 0.010% 0.010% 30 0.010% 0.010% 35 0.020% 0.010% 40 0.020% 0.020% 45 0.080% 0.060% 50 0.160% 0.100% 55 0.250% 0.160% 60 0.300% 0.260% 65 0.100% 0.080% The disability assumptions are the disability assumptions used in the July 1, 2014 FRS Actuarial Valuation. -29- 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. Age Male Female 20 0.010% 0.000% 25 0.010% 0.004% 30 0.010% 0.004% 35 0.010% 0.004% 40 0.020% 0.040% 45 0.060% 0.040% 50 0.140% 0.050% 55 it45 0.100% 0.080% 60 0.140% 0.150% 65 0.260% 0.150% 4. Non -duty disability rates for Firefighters and Police Officers were used in accordance with the following illustrative example. Age Male Female 20 0.020% 0.000% 25 0.020% 0.020% 30 0.030% 0.020% 35 0.030% 0.030% 40 0.030% 0.030% 45 0.030% 0.060% 50 0.080% 0.110% 55 0.050% 0.110% 60 0.050% 0.110% 65 0.050% 0.110% The disability assumptions are the disability assumptions used in the July 1, 2014 FRS Actuarial Valuation. -30- 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 Age Retirement rates were used in accordance with the following tables. 1. For Police Officers and Firefighters: Age Years of Service Years of Service 0 -10 10 -15 15 -25 25 -30 30 or more Under 55 0% 0% 0% 4% 5% 55 0% 10% 15% 40% 50% 56-64 0% 10% 15% 15% 20% 65 and above 100% 100% 100% 100% 100% 2. For General Employees: 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. -31- Gabriel Roeder Smith & Company Years of Service 0 -10 10 -15 15 -25 25 -30 30 or more Under 55 0% 0% 0% 2% 2% 55 0% 5% 10% 20% 25% 56-64 0% 5% 10% 4% 5% 65 and above 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. -31- 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 J. Asset Valuation Method The method used for determining the smoothed actuarial value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The smoothed 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 - adjusted for equation of balance October 1, 2010. 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 Disability Rates were: 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% -32- 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 L. Changes Since Previous Valuation (continued) 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 disability assumptions were the disability assumptions used in the July 1, 2013 FRS Actuarial Valuation. 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% -33- 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 L. Changes Since Previous Valuation (continued) 4. Non -duty disability rates for Firefighters and Police Officers were used in accordance with the following illustrative example. W��� 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 disability assumptions were the disability assumptions used in the July 1, 2013 FRS Actuarial Valuation. -34- Gabriel Roeder Smith & Company Table XI -35- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Distribution by Attained Ate Groups and Service Groups as of October 1, 2014 Firefighters Attained ----------------------------------------- CONIPLETED YEARS OF SERVICE----------------------------------------- Age Group 0 -4 5 -9 10 -14 15 -19 20 -24 25 -29 30 & Over Total Under 25 - - - - - - - 0 25 -29 - - - - - - - 0 30 -34 - - - - - - - 0 35 -39 - - - - - - - 0 40 -44 - - - - - - - 0 45 -49 - - - - 1 - - 1 50 -54 - - - 1 5 2 1 9 55 -59 - - - - - - - 0 60 -64 - - - - - - - 0 65 & Over - - - - - - - 0 TOTAL 0 0 0 1 6 2 1 10 10/01/2013 10/01/2014 Average Attained Age 50.92 years 51.92 years Average Hire Age 27.72 years 27.72 years Average Pay $ 66,374 $ 67,234 Percent Female 0.0% 0.0% -35- Gabriel Roeder Smith & Company Table XI (Cont'd) -36- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Distribution by Attained Ate Groups and Service Groups as of October 1, 2014 General Employees Attained ----------------------------------------- CONIPLETED YEARS OF SERVICE------------------------------------- Age Group 00 =4 55 =9 10 -14 15 -19 20 -24 25 -29 30 & Over Total Under 25 1 - - - - - - 1 25 -29 2 2 - - - - - 4 30 -34 1 3 1 - - - - 5 35 -39 1 5 4 3 - - - 13 40 -44 - 2 2 3 1 - - 8 45 -49 - 3 - 1 - - - 4 50 -54 1 5 3 2 1 3 - 15 55 -59 1 1 3 - 5 2 - 12 60 -64 - 1 3 1 - - - 5 65 & Over - 1 1 - - 1 - 3 TOTAL 7 23 17 10 7 6 0 70 10/01/2013 10/01/2014 Average Attained Age 46.84 years 47.50 years Average Hire Age 35.22 years 34.97 years Average Pay $ 43,984 $ 45,858 Percent Female 34.6% 34.3% -36- Gabriel Roeder Smith & Company Table XI (Cont'd) -37- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Distribution by Attained Ate Groups and Service Groups as of October 1, 2014 Police Officers Attained ----------------------------------------- CONIPLETED YEARS OF SERVICE----------------------------------------- Age Group 00 =4 55 =9 10 -14 15 -19 20 -24 25 -29 30 & Over Total Under 25 1 - - - - - - 1 25 -29 6 5 - - - - - 11 30 -34 2 3 2 - - - - 7 35 -39 2 2 5 2 - - - 11 40 -44 - 2 - 4 1 - - 7 45 -49 - - 3 4 1 3 - 11 50 -54 2 - 2 2 - 1 1 8 55 -59 - 1 - - - 1 - 2 60 -64 - - 1 - - - - 1 65 & Over - - - - - - - 0 TOTAL 13 13 13 12 2 5 1 59 10/01/2013 10/01/2014 Average Attained Age 39.72 years 40.11 years Average Hire Age 28.43 years 28.42 years Average Pay $ 52,939 $ 52,973 Percent Female 15.3% 13.6% -37- Gabriel Roeder Smith & Company Table XI (Cont'd) -38- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Distribution by Attained Ate Groups and Service Groups as of October 1, 2014 Forensic Professionals Attained ----------------------------------------- CONIPLETED YEARS OF SERVICE----------------------------------------- Age Group 00 =4 55 =9 10 -14 15 -19 20 -24 25 -29 30 & Over Total Under 25 - - - - - - - 0 25 -29 - - 1 - - - - 1 30 -34 - - - - - - - 0 35 -39 - - - 1 - - - 1 40 -44 - - - - - - - 0 45 -49 - - - - - - - 0 50 -54 - - - - - - - 0 55 -59 - - - - - - - 0 60 -64 - - - - - - - 0 65 & Over - - - - - - - 0 TOTAL 0 0 1 1 0 0 0 2 10/01/2013 10/01/2014 Average Attained Age 32.48 years 33.48 years Average Hire Age 19.48 years 19.48 years Average Pay $ 40,581 $ 42,849 Percent Female 100.0% 100.0% -38- Gabriel Roeder Smith & Company Table XI (Cont'd) -39- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Distribution by Attained Ate Groups and Service Groups as of October 1, 2014 All Members Attained ----------------------------------------- CONIPLETED YEARS OF SERVICE----------------------------------------- Age Group 0 -4 5 -9 10 -14 15 -19 20 -24 25 -29 30 & Over Total Under 25 2 - - - - - - 2 25 -29 8 7 1 - - - - 16 30 -34 3 6 3 - - - - 12 35 -39 3 7 9 6 - - - 25 40 -44 - 4 2 7 2 - - 15 45 -49 - 3 3 5 2 3 - 16 50 -54 3 5 5 5 6 6 2 32 55 -59 1 2 3 - 5 3 - 14 60 -64 - 1 4 1 - - - 6 65 & Over - 1 1 - - 1 - 3 TOTAL 20 36 31 24 15 13 2 141 10/01/2013 10/01/2014 Average Attained Age 44.16 years 44.52 years Average Hire Age 31.89 years 31.49 years Average Pay $ 48,888 $ 50,309 Percent Female 25.7% 24.1% -39- Gabriel Roeder Smith & Company 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 33 35 23 31 10 5 Count 3 0 21 18 25 11 Total Annual Benefit $ 203,752 358,304 234,585 306,518 61,255 18,179 11,040 $ 1,193,633 Total Annual Benefit $ 24,124 823,125 508,448 468,881 219,321 65,521 $ 2,109,420 -40- Gabriel Roeder Smith & Company Average Annual Benefit $ 6,174 10,237 10,199 9,888 6,126 3,636 2,208 $ 8,406 Average Annual Benefit $ 8,041 39,196 28,247 18,755 19,938 9,360 $ 24,817 Table XII City of Winter Springs Defined Benefit Plan Reconciliation of Employee Data A. Active Participants Table XIII 1. Active participants previous year 152 2. Retired during year (6) 3. Died during year 0 4. Disabled during year 0 5. Terminated non - vested during year (2) 6. Terminated vested during year (8) 7. New active participants 5 8. Out on military leave 0 9. Rehired during year 0 10. Transferred to DC Plan 0 11. Active participants current year 141 B. Participants Receiving Benefits 1. Participants receiving benefits previous year 79 2. New retired participants 6 3. New DRO recipient 0 4. New terminated vested receiving benefits 1 5. New beneficiaries receiving benefits 0 6. Died or ceased payment during year (1) 7. Retired or terminated vested receiving benefits current year 85 C. Terminated Vested Participants Entitled to Future Benefits 1. Terminated vested entitled previous year 135 2. Died during year 0 3. Commenced receiving benefits during year (1) 4. New terminated vested 8 5. Terminated vested paid lump sum 0 6. Rehired 0 7. Terminated vested entitled current year 142 ENE Gabriel Roeder Smith & Company Table XIV City of Winter Springs Defined Benefit Plan Proiected 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. -42- Gabriel Roeder Smith & Company Projected Total Fiscal Year Annual Payout 2015 $ 2,348,608 2016 $ 2,511,493 2017 $ 2,701,672 2018 $ 2,866,824 2019 $ 3,171,983 2020 $ 3,355,060 2021 $ 3,556,101 2022 $ 3,919,454 2023 $ 4,185,554 2024 $ 4,415,711 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. -42- Gabriel Roeder Smith & Company Table XV City of Winter Springs Defined Benefit Plan i Information prior to September 30, 2008 as reported by prior actuary. 2 Includes refunds. 3 Values prior to September 30, 2008 include Employee Contributions. -43- Gabriel Roeder Smith & Company Summary of Transaction Information) Smoothed Year Benefits Administrative Employee City / County Actuarial Ending Paid' Expenses Contributions Contributions Value 09/30/2014 $ 1,974,208 $ 159,424 $ 369,500 $ 2,527,508 $ 33,841,977 09/30/2013 1,732,845 177,541 396,374 2,258,798 29,908,683 09/30/2012 1,606,752 309,874 418,635 1,824,431 26,852,721 09/30/2011 1,165,350 196,423 287,090 2,616,924 25,932,292 09/30/2010 886,521 178,530 284,866 2,311,058 23,887,446 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 13 8,3 53 47,477 N/A 903,748 7,279,048 i Information prior to September 30, 2008 as reported by prior actuary. 2 Includes refunds. 3 Values prior to September 30, 2008 include Employee Contributions. -43- Gabriel Roeder Smith & Company Table XV (font' d) City of Winter Springs Defined Benefit Plan Recent Compensation, Termination and Investment Return Experience * Information prior to October 1, 2008 as reported by prior actuary -44- Gabriel Roeder Smith & Company General & Forensic Police & Fire General & Forensic Police & Fire Investment Return Compensation Termination Smoothed Valuation % Increase / (Decrease) Ratio of Actual Net Market Net Actuarial Assumed Rate Date Actual Assumed Actual Assumed to Expected Value Yield* Value Yield* of Return* 10/01/2014 2.5% 4.7% 1.8% 4.9% 1.2 2.3 11.9% 10.5% 8.0% 10/01/2013 0.7% 4.7% 0.7% 4.9% 1.4 2.4 16.0% 8.5% 8.0% 10/01/2012 (2.4 %) 4.8% (6.5 %) 5.0% 2.4 2.4 19.5% 2.3% 8.0% 10/01/2011 4.9% 4.8% 3.5% 5.2% 1.9 2.4 (1.0 %) 2.0% 8.0% 10/01/2010 0.9% 5.0% 2.8% 5.3% 1.2 1.7 12.0% 7.3% 8.0% 10/01/2009 6.4% 5.1% 11.6% 5.3% 1.1 1.1 2.1% 3.5% 8.0% 10/01/2008 3.9% 3.0% 5.6% 3.0% 1.2 3.1 (16.8 %) 10.1% 8.0% 10/01/2007 N/A N/A N/A N/A N/A N/A 13.8% 15.4% 8.0% 10/01/2006 N/A N/A N/A N/A N/A N/A 8.6% 9.5% 8.0% 10/01/2005 N/A N/A N/A N/A N/A N/A 11.5% 4.2% 8.0% Last 3 Years 0.2% 4.7% (1.4 %) 4.9% 1.6 2.4 15.8% 7.0% 8.0% Last 5 Years 1.3% 4.8% 0.4% 5.1% 1.6 2.2 11.5% 6.1% 8.0% Last 10 Years N/A N/A N/A N/A N/A N/A 7.2% 7.3% 8.0% * Information prior to October 1, 2008 as reported by prior actuary -44- Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Actuarial Valuation as of October 1, 2014 State Required Exhibit A. Participant Data 1. Active participants 2. Retired participants and beneficiaries receiving benefits 3. Disabled participants receiving benefits 4. Terminated vested participants 5. Annual payroll of active participants 6. Annual benefits payable to those currently receiving benefits B. Value of Assets 1. Smoothed Actuarial Value 2. Market Value C. Liabilities 1. Actuarial present value of future expected benefit payments for active members a. Retirement benefits b. Vesting benefits c. Death benefits d. Disability benefits e. Total 2. Actuarial present value of future expected benefit payments for terminated vested members 3. Actuarial present value of future expected benefit payments for members currently receiving benefits a. Service retired b. Disability retired c. Beneficiaries d. Miscellaneous (Refunds in Process) e. Total Table XVI Prior Current Assumptions Assumptions 10/01/2013 10/01/2014 10/01/2014 152 141 141 79 85 85 0 0 0 135 142 142 $ 7,431,031 $ 7,093,513 $ 7,093,513 $ 1,956,497 $ 2,109,420 $ 2,109,420 $ 29,908,683 $ 33,841,977 $ 33,841,977 $ 32,172,541 $ 36,821,261 $ 36,821,261 $ 24,482,971 $ 24,609,804 $ 25,068,833 1,782,858 1,618,728 1,627,069 710,276 682,087 692,269 751,238 732,951 345,513 $ 27,727,343 $ 27,643,570 $ 27,733,684 $ 5,015,850 $ 5,544,795 $ 5,544,795 $ 18,864,624 $ 20,292,178 $ 20,292,178 0 0 0 1,704,644 1,675,000 1,675,000 10,926 20,038 20,038 $ 20,580,194 $ 21,987,216 $ 21,987,216 -45- Gabriel Roeder Smith Sc Company City of Winter Springs Defined Benefit Plan Actuarial Valuation as of October 1, 2014 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 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 -46- Table XVI (Cont'd) $ 20,569,268 $ 21,967,178 $ 21,967,178 21,001,590 22,165,143 22,149,560 $ 41,570,858 $ 44,132,321 $ 44,116,738 536,915 478,281 471,910 $ 42,107,773 $ 44,610,602 $ 44,588,648 $ Prior Current 991,109 Assumptions Assumptions 10/01/2013 10/01/2014 10/01/2014 $ 53,323,387 $ 55,175,581 $ 55,265,695 $ 45,926,780 $ 48,397,998 $ 48,406,105 $ 16,018,097 $ 14,556,021 $ 14,564,128 $ 20,569,268 $ 21,967,178 $ 21,967,178 21,001,590 22,165,143 22,149,560 $ 41,570,858 $ 44,132,321 $ 44,116,738 536,915 478,281 471,910 $ 42,107,773 $ 44,610,602 $ 44,588,648 $ 1,064,360 $ 991,109 $ 993,826 1,421,056 1,318,777 1,319,444 117,044 108,687 108,851 $ 2,602,460 $ 2,418,573 $ 2,422,121 35.0% 34.1% 34.1% $ 371,552 $ 354,676 $ 354,676 5.0% 5.0% 5.0% $ 2,230,908 $ 2,063,897 $ 2,067,445 30.0% 29.1% 29.1% Gabriel Roeder Smith & Company City of Winter Springs Defined Benefit Plan Actuarial Valuation as of October 1, 2014 State Required Exhibit F. Past Contributions 1. Total contribution required (previous valuation) 2. Actual contributions made: a. Members b. City and County c. Total G. Disclosure of Following Items: 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 Table XVI (Cont'd) -47- Gabriel Roeder Smith & Company Prior Current Assumptions Assumptions 10/01/2013 10/01/2014 10/01/2014 $ 2,844,078 $ 2,602,460 $ 2,602,460 $ 369,500 N/A N/A 2,527,508 N/A N/A $ 2,897,008 N/A N/A $ 64,573,284 $ 60,439,469 $ 60,911,852 $ 3,228,665 $ 3,021,973 $ 3,045,593 N/A N/A N/A $ 2,511,683 $ 2,688,930 $ 2,688,930 N/A N/A N/A N/A N/A N/A -47- 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. 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: 14 -02802 Dated: September 2, 2015 Lawrence F. Wilson, A.S.A. -48- Gabriel Roeder Smith & Company Current Remaining Unfunded Amortization Funding Unfunded Actuarial Accrued Liabilities Liabilities Pa nt Period 10/01/2000 Initial $ 1,938,774 $ 202,812 16 years 10/01/2002 Assumption Change (25,235) (2,493) 18 years 10/01/2003 Plan Amendment 160,503 15,475 19 years 10/01/2004 Plan Amendment 244,512 23,059 20 years 10/01/2005 Plan Amendment 508,789 47,031 21 years 10/01/2006 Plan Amendment 587,429 53,321 22 years 10/01/2007 Plan Amendment 603,142 53,848 23 years 10/01/2008 Plan Amendment and Assumption Change 2,715,598 238,817 24 years 10/01/2008 Method Change 6,069,765 533,791 24 years 10/01/2009 Actuarial Loss / (Gain) 2,602,160 225,710 25 years 10/01/2010 Actuarial Loss / (Gain) (482,198) (41,303) 26 years 10/01/2010 Plan Amendment (2,795,665) (239,462) 26 years 10/01/2011 Actuarial Loss / (Gain) 3,064,228 259,461 27 years 10/01/2012 Actuarial Loss / (Gain) 1,036,560 86,849 28 years 10/01/2013 Actuarial Loss / (Gain) (809,192) (67,147) 29 years 10/01/2014 Actuarial Loss / (Gain) (863,149) (70,992) 30 years 10/01/2014 Assumption Change 8,107 667 30 years TOTAL $ 14,564,128 $ 1,319,444 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: 14 -02802 Dated: September 2, 2015 Lawrence F. Wilson, A.S.A. -48- Gabriel Roeder Smith & Company