HomeMy WebLinkAbout2016 02 09 Other, 2014 Chapter 112.664 Compliance ReportDate: February 9, 2016
The attached document was referenced and
discussed with the Board Members at the
February 9, 2016 Board of Trustees Regular
Meeting.
RS Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.161.6 phone
Consultants & Actuaries Suite 505 954.525.4083 fax
Ft. Lauderdale, FL 33301 -1804 www.gabrielroeder.com
October 28, 2015
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
October 1, 2014 Chapter 112.664 Compliance Report
Dear Board Members:
As requested, we are pleased to enclose eleven (11) copies of the October 1, 2014 Chapter 112.664
Compliance Report for the City of Winter Springs Defined Benefit Plan.
As required, we will timely upload the required data to the State's online portal prior to the filing
deadline.
Please note we understand the following items must be posted on the Plan's website and must be
posted on any website containing budget information relating to the City or actuarial or performance
information relating to the Plan:
• this compliance report
• most recent financial statement
• most recent actuarial valuation report
• a link to the Division of Retirement Actuarial Summary Fact Sheet
http://www.dms.myflorida.com/workforce operations/retirement/local—retirement—Plans/loca
1_retirement section /actuarial_summary_fact_ sheets
• for the previous five years - a side -by -side comparison of the Plan's assumed rate of return
compared to the actual rate of return as well as the percentages of cash, equity, bond and
alternative investments in the Plan portfolio
• the Plan's funded ratio as determined in the most recent actuarial valuation — 76.1% on a
market value of assets basis as of October 1, 2014
We appreciate the opportunity to work with the Board on this important assignment.
If you should have any questions concerning the above, please do not hesitate to contact us.
Sincerest regards,
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosures
G'C Gabriel Roeder Smith & Company
JConsultants & Actuaries
CITY OF WINTER SPRINGS DEFINED BENEFIT PLAN
CHAPTER 112.664, F.S. COMPLIANCE REPORT
In Connection with the October 1, 2014 Funding Actuarial Valuation Report
and the Plan's Financial Reporting for the Year Ended September 30, 2014
GRS
GRS
RS 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
October 28, 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
Re: October 1, 2014 Chapter 112.664 Compliance Report
Dear Board Members:
Gabriel, Roeder, Smith & Company (GRS) has been engaged by the Board of Trustees (Board)
of the City of Winter Springs Defined Benefit Plan (Plan) to prepare a disclosure report to satisfy
the requirements set forth in Chapter 112.664, F. S. and as further required pursuant to Chapter
60T- 1.0035, F.A.C.
This report was prepared at the request of the Board and is intended for use by the Board and
those designated or approved by the Board. This report may be provided to parties other than the
Board only in its entirety and only with the permission of the Board.
The purpose of the report is to provide the required information specified in Chapter 112.664,
F.S. and to supplement this information with additional exhibits. This report should not be relied
on for any purpose other than the purpose described above.
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 that anticipated
by 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 or additional cost or
contribution requirements based on the plan's funded status); and changes in plan provisions or
applicable law. The scope of this engagement does not include an analysis of the potential range
of such measurements.
This report was based upon information furnished by the City and the Board concerning Plan
benefits, Plan provisions and Plan members as used in the corresponding Actuarial Valuation
Reports for the Valuation Dates indicated. Financial information was provided by the City and
Board as of September 30, 2014. We reviewed the information provided for internal and year -
to -year consistency, but did not otherwise audit the data. We are not responsible for the accuracy
or completeness of the information provided by the City and Board.
Except where specific assumptions are required by Chapter 112.664, F. S, this report was
prepared using actuarial assumptions adopted by the Board as described in Section C. The
Board's assumptions are based on past and expected future Plan experience and represent an
estimate of future Plan experience. The investment return assumption of 2% higher than the
Board of Trustees
October 28, 2015
Page 2
investment return assumption utilized in the Actuarial Valuation Report does not represent an
estimate of future Plan experience nor observation of the estimates inherent in market data. This
assumption is provided as a counterpart to the Chapter 112.664, F.S. requirement to utilize an
investment return assumption of 2% lower than the investment return assumption utilized in the
Actuarial Valuation Report. Inclusion of an investment return 2% higher than the investment
return assumption utilized in the Actuarial Valuation Report shows a more complete assessment
of the range of results as opposed to the one -sided range required by statute.
If all actuarial assumptions are met and if all current and 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 Plan's funded ratio as of October 1, 2014 is 76.1% defined as the ratio of the market value
of Plan assets to the actuarial accrued liability.
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
herein. The signing actuaries are independent of the Plan sponsor.
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 presents the actuarial position of the Plan as of the valuation date as
required by statute. 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.
With respect to the reporting standards for defined benefit retirement plans or systems contained in
Section 112.664(l), F.S., the actuarial disclosures required under this section were 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, meet the
requirements of Section 112.664(l), F.S., and Section 60T- 1.0035, F.A.C.
Respectfully submitted,
GABRIEL, ROEDER, SMITH AND COMPANY
` t tv-1 L�
By "� . � � BY
Lawrence F. Wilson, M.A.A.A Jennifer M. Borregard, M.A.A.A
Enrolled Actuary No. 14 -02802 Enrolled Actuary No. 14 -07624
Senior Consultant & Actuary Consultant & Actuary
Date: October 28, 2015
Gabriel Roeder Smith & Company
TABLE OF CONTENTS
Section Title Page
A Chapter 112.664, F.S. Results
Net Pension Liability
1. Using financial reporting assumptions per GASB Statement No. 67 and No. 68 1
2. Using assumptions required under Section 112.664(1)(a), F.S. 2
3. Using assumptions required under Section 112.664(1)(b), F.S. 3
4. Using assumptions required under Section 112.664(1)(a), F.S. plus 2% 4
Asset and Benefit Payments Projection
1. Using financial reporting assumptions per GASB Statement No. 67 and No. 68 5
2. Using assumptions required under Section 112.664(1)(a), F.S. 6
3. Using assumptions required under Section 112.664(1)(b), F.S. 7
4. Using assumptions required under Section 112.664(1)(a), F.S. plus 2% 8
Actuarially Determined Contribution
0
Unfunded Actuarial Accrued Liabilities Bases and Amortization Payments 10
B Summary of Plan Provisions 11
C Actuarial Assumptions and Cost Methods Used for Funding 14
Glossary
GRS
23
SECTION A
CHAPTER 112.664, F.S. RESULTS
GRS
Net Pension Liability
Using Financial Rcportin2 Assumptions per GASB Statements No. 67 and No. 68
Measurement Date
9/30/2014
A. Total Pension Liabilit y (TPL)
Service Cost
$
886,819
Interest
3,666,120
Benefit Changes
0
Difference Between Actual and Expected Experience
(581,481)
Assumption Changes
0
Benefit Payments
(1,974,208)
Contribution Refunds
0
Other
0
Net Change in Total Pension Liability
1,997,250
Total Pension Liability - (beginning of year)
46,508,261
Total Pension Liability - (end of year)
$
48,505,511
B. Plan Fiduciary Net Position
Contributions - County and City
$
2,527,508
Contributions - State
0
Contributions - Member
369,500
Net Investment Income
3,885,344
Benefit Payments
(1,974,208)
Contribution Refunds
0
Administrative Expenses
(159,424)
Other
0
Net Change in Plan Fiduciary Net Position
4,648,720
Plan Fiduciary Net Position - (beginning of year)
32,172,541
Plan Fiduciary Net Position - (end of year)
$
36,821,261
C. Net Pension Liabili y (NPL) - (end ofd): (A) - (B)
$
11,684,250
Valuation Date
10/1/2013
Certain Key Assumptions
Investment Return Assumption 8.0%
Mortality Table:
Healthy General Members: 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.
Healthy Firefighter and Police Officer Members: 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. Disabled Members: 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.
GRS 1
Net Pension Liability
Using Assumptions Required Under 112.664(1)(a), F.S.
Measurement Date
9/30/2014
A. Total Pension Liability (TPL)
Service Cost
$
901,304
Interest
3,700,285
Benefit Changes
0
Difference Between Actual and Expected Experience
(647,143)
Assumption Changes
0
Benefit Payments
(1,974,208)
Contribution Refunds
0
Other
0
Net Change in Total Pension Liability
1,980,238
Total Pension Liability - (beginning of year)
46,986,505
Total Pension Liability - (end of year)
$
48,966,743
B. Plan Fiduciary Net Position
Contributions - Employer
$
2,527,508
Contributions - State
0
Contributions - Member
369,500
Net Investment Income
3,885,344
Benefit Payments
(1,974,208)
Contribution Refunds
0
Administrative Expenses
(159,424)
Other
0
Net Change in Plan Fiduciary Net Position
4,648,720
Plan Fiduciary Net Position - (beginning of year)
32,172,541
Plan Fiduciary Net Position - (end of year)
$
36,821,261
C. Net Pension Liability(NPL) - (end ofd): (A) - (B)
$
12,145,482
Valuation Date
10/1/2013
Certain Key Assumptions
Investment Return Assumption 8.0%
Mortality Table:
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.
GRS 2
Net Pension Liability
Using Assumptions Required Under 112.664(1)(b), F.S.
Measurement Date
9/30/2014
A. Total Pension Liabilit y (TPL)
Service Cost
$
1,474,697
Interest
3,574,587
Benefit Changes
0
Difference Between Actual and Expected Experience
(1,077,380)
Assumption Changes
0
Benefit Payments
(1,974,208)
Contribution Refunds
0
Other
0
Net Change in Total Pension Liability
1,997,696
Total Pension Liability - (beginning of year)
60,166,230
Total Pension Liability - (end of year)
$
62,163,926
B. Plan Fiduciary Net Position
Contributions - Employer
$
2,527,508
Contributions - State
0
Contributions - Member
369,500
Net Investment Income
3,885,344
Benefit Payments
(1,974,208)
Contribution Refunds
0
Administrative Expenses
(159,424)
Other
0
Net Change in Plan Fiduciary Net Position
4,648,720
Plan Fiduciary Net Position - (beginning of year)
32,172,541
Plan Fiduciary Net Position - (end of year)
$
36,821,261
C. Net Pension Liability((NPL) - (end ofd): (A) - (B)
$
25,342,665
Valuation Date
10/1/2013
Certain Key Assumptions
Investment Return Assumption 6.0%
Mortality Table:
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.
GRS 3
Net Pension Liability
Using Assumptions Required Under 112.664(1)(a), F.S. Plus 2% on Investment Return Assumption
Measurement Date
9/30/2014
A. Total Pension Liabilit y (TPL)
Service Cost
$
566,136
Interest
3,690,596
Benefit Changes
0
Difference Between Actual and Expected Experience
(415,703)
Assumption Changes
0
Benefit Payments
(1,974,208)
Contribution Refunds
0
Other
0
Net Change in Total Pension Liability
1,866,821
Total Pension Liability - (beginning of year)
37,742,629
Total Pension Liability - (end of year)
$
39,609,450
B. Plan Fiduciary Net Position
Contributions - Employer
$
2,527,508
Contributions - State
0
Contributions - Member
369,500
Net Investment Income
3,885,344
Benefit Payments
(1,974,208)
Contribution Refunds
0
Administrative Expenses
(159,424)
Other
0
Net Change in Plan Fiduciary Net Position
4,648,720
Plan Fiduciary Net Position - (beginning of year)
32,172,541
Plan Fiduciary Net Position - (end of year)
$
36,821,261
C. Net Pension Liability((NPL) - (end of d): (A) - (B)
$
2,788,189
Valuation Date
10/1/2013
Certain Key Assumptions
Investment Return Assumption 10.0%
Mortality Table:
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.
GRS 4
Asset and Benefit Payment Projection
Not Reflecting Any Future Contributions
Using Financial Reporting Assumptions per GASB Statements No. 67 and No. 68
Certain Key Assumptions
Investment return assumption 8.0%
Mortality Table:
Healthy General Members: 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. Healthy Firefighter and Police
Officer Members: 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. Disabled
Members: 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.
Note: As required in Section 112.664(c) of the Florida Statutes, the projection of Plan assets does not include future
contributions from the City, County or Members. For this reason, this projection should not be viewed as representative of
the amount of time the Plan can sustain benefit payments. Under the Government Accounting Standards Board standards
which include City, County and Member contributions, the Plan is expected to be able to pay all future benefit payments.
GRS 5
Market Value of
Expected Investment
Projected Benefit
Market Value of Assets
FYE
Assets (BOY)
Return
Payments
(EOY)
2015
36,821,261
2,845,124
2,348,608
37,317,777
2016
37,317,777
2,878,351
2,500,273
37,695,855
2017
37,695,855
2,900,995
2,677,801
37,919,049
2018
37,919,049
2,912,651
2,822,553
38,009,147
2019
38,009,147
2,907,889
3,102,084
37,814,952
2020
37,814,952
2,886,092
3,248,282
37,452,762
2021
37,452,762
2,850,509
3,402,594
36,900,677
2022
36,900,677
2,795,177
3,663,310
36,032,544
2023
36,032,544
2,717,784
3,848,766
34,901,562
2024
34,901,562
2,621,254
3,990,081
33,532,735
2025
33,532,735
2,504,942
4,149,019
31,888,658
2026
31,888,658
2,367,756
4,281,169
29,975,245
2027
29,975,245
2,210,190
4,386,088
27,799,347
2028
27,799,347
2,032,644
4,467,226
25,364,765
2029
25,364,765
1,835,139
4,531,167
22,668,737
2030
22,668,737
1,616,578
4,598,399
19,686,916
2031
19,686,916
1,376,916
4,624,452
16,439,380
2032
16,43 9,380
1,116,598
4,636,497
12,919,481
2033
12,919,481
835,273
4,630,253
9,124,501
2034
9,124,501
533,642
4,584,325
5,073,818
2035
5,073,818
211,326
4,543,710
741,434
2036
741,434
2,376
4,464,912
-
Number of years for which current market value of assets are adequate to sustain the
payment of expected
retirement benefits reflecting no contributions from the Employer, Employee or State:
21.08
Certain Key Assumptions
Investment return assumption 8.0%
Mortality Table:
Healthy General Members: 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. Healthy Firefighter and Police
Officer Members: 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. Disabled
Members: 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.
Note: As required in Section 112.664(c) of the Florida Statutes, the projection of Plan assets does not include future
contributions from the City, County or Members. For this reason, this projection should not be viewed as representative of
the amount of time the Plan can sustain benefit payments. Under the Government Accounting Standards Board standards
which include City, County and Member contributions, the Plan is expected to be able to pay all future benefit payments.
GRS 5
FYE
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
Asset and Benefit Payment Projection
Not Reflecting Any Future Contributions
Using Assumptions Required Under 112.664(1)(a), F.S.
Market Value of
Assets (BOY)
36,821,261
37,317,660
37,695,505
37,917,904
38,006,279
37,809,010
37,442,071
36,883,128
36,005,241
34,860,988
33,475,012
31,808,919
29,868,000
27,658,244
25,182,773
22,437,816
19,398,367
16,083,580
12,485,816
8,601,463
4,449,117
1,746
Expected Investment
Return
2,845,120
2,878,332
2,900,935
2,912,493
2,907,542
2,885,441
2,849,407
2,793,430
2,715,145
2,617,437
2,499,609
2,360,510
2,200,573
2,020,140
1,819,168
1,596,496
1,352,019
1,086,105
798,334
489,342
158,680
Projected Benefit
Payments
2,348,721
2,500,487
2,678,536
2,824,118
3,104,811
3,252,380
3,408,350
3,671,317
3,859,398
4,003,413
4,165,702
4,301,429
4,410,329
4,495,611
4,564,125
4,635,945
4,666,806
4,683,869
4,682,687
4,641,688
4,606,051
4,531,926
Number of years for which current market value of assets are adequate to sustain the payment of expected
retirement benefits reflecting no contributions from the Employer, Employee or State:
Market Value of Assets
(EOY)
37,317,660
37,695,505
37,917,904
38,006,279
37,809,010
37,442,071
36,883,128
36,005,241
34,860,988
33,475,012
31,808,919
29,868,000
27,658,244
25,182,773
22,437,816
19,398,367
16,083,580
12,485,816
8,601,463
4,449,117
1,746
21.00
Certain Key Assumptions
Investment return assumption 8.0%
Mortality Table:
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.
Note: As required in Section 112.664(c) of the Florida Statutes, the projection of Plan assets does not include future
contributions from the City, County or Members. For this reason, this projection should not be viewed as representative of
the amount of time the Plan can sustain benefit payments. Under the Government Accounting Standards Board standards
which include City, County and Member contributions, the Plan is expected to be able to pay all future benefit payments.
GRS
FYE
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
Asset and Benefit Payment Projection
Not Reflecting Any Future Contributions
Using Assumptions Required Under 112.664(1)(b), F.S.
Market Value of
Assets (BOY)
36,821,261
36,606,162
36,221,502
35,629,979
34,852,693
33,739,035
32,406,236
30,832,475
28,892,851
26,642,710
24,108,907
21,255,559
18,090,912
14,623,978
10,860,999
6,801,520
2,424,339
Expected Investment
Return
2,133,622
2,115,827
2,087,013
2,046,832
1,991,153
1,919,581
1,834,589
1,731,693
1,609,257
1,469,610
1,312,354
1,136,782
943,395
732,632
504,646
258,764
31,594
Projected Benefit
Payments
2,348,721
2,500,487
2,678,536
2,824,118
3,104,811
3,252,380
3,408,350
3,671,317
3,859,398
4,003,413
4,165,702
4,301,429
4,410,329
4,495,611
4,564,125
4,635,945
4,666,806
4,683,869
4,682,687
4,641,688
4,606,051
4,531,926
Number of years for which current market value of assets are adequate to sustain the payment of expected
retirement benefits reflecting no contributions from the Employer, Employee or State:
Certain Key Assumptions
Market Value of Assets
(EOY)
36,606,162
36,221,502
35,629,979
34,852,693
33,739,035
32,406,236
30,832,475
28,892,851
26,642,710
24,108,907
21,255,559
18,090,912
14,623,978
10,860,999
6,801,520
2,424,339
16.50
Investment return assumption 6.0%
Mortality Table:
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.
Note: As required in Section 112.664(c) of the Florida Statutes, the projection of Plan assets does not include future
contributions from the City, County or Members. For this reason, this projection should not be viewed as representative of
the amount of time the Plan can sustain benefit payments. Under the Government Accounting Standards Board standards
which include City, County and Member contributions, the Plan is expected to be able to pay all future benefit payments.
GRS
Asset and Benefit Payment Projection
Not Reflecting Any Future Contributions
Using Assumptions Required Under 112.664(1)(a), F.S. Plus 2% on Investment Return Assumption
Note: As required in Section 112.664(c) of the Florida Statutes, the projection of Plan assets does not include future
contributions from the City, County or Members. For this reason, this projection should not be viewed as representative of
the amount of time the Plan can sustain benefit payments. Under the Government Accounting Standards Board standards
which include City, County and Member contributions, the Plan is expected to be able to pay all future benefit payments.
GRS g
Market Value of
Expected Investment
Projected Benefit
Market Value of Assets
FYE
Assets (BOY)
Return
Payments
(EOY)
2015
36,821,261
3,556,756
2,348,721
38,029,296
2016
38,029,296
3,669,458
2,500,487
39,198,267
2017
39,198,267
3,776,852
2,678,536
40,296,583
2018
40,296,583
3,878,912
2,824,118
41,351,377
2019
41,351,377
3,969,409
3,104,811
42,215,975
2020
42,215,975
4,047,992
3,252,380
43,011,587
2021
43,011,587
4,119,228
3,408,350
43,722,465
2022
43,722,465
4,176,279
3,671,317
44,227,427
2023
44,227,427
4,216,736
3,859,398
44,584,765
2024
44,584,765
4,244,782
4,003,413
44,826,134
2025
44,826,134
4,260,256
4,165,702
44,920,688
2026
44,920,688
4,262,467
4,301,429
44,881,726
2027
44,881,726
4,252,758
4,410,329
44,724,155
2028
44,724,155
4,232,449
4,495,611
44,460,993
2029
44,460,993
4,202,475
4,564,125
44,099,343
2030
44,099,343
4,162,477
4,635,945
43,625,875
2031
43,625,875
4,113,482
4,666,806
43,072,551
2032
43,072,551
4,057,239
4,683,869
42,445,921
2033
42,445,921
3,994,639
4,682,687
41,757,873
2034
41,757,873
3,928,023
4,641,688
41,044,208
2035
41,044,208
3,858,559
4,606,051
40,296,716
2036
40,296,716
3,787,766
4,531,926
39,552,556
Number of years for which current market value of assets are adequate to sustain the
payment of expected
retirement benefits reflecting no contributions from the Employer, Employee or State:
99.99
Certain Key Assumptions
Investment return
assumption
10.0%
Mortality Table:
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.
Note: As required in Section 112.664(c) of the Florida Statutes, the projection of Plan assets does not include future
contributions from the City, County or Members. For this reason, this projection should not be viewed as representative of
the amount of time the Plan can sustain benefit payments. Under the Government Accounting Standards Board standards
which include City, County and Member contributions, the Plan is expected to be able to pay all future benefit payments.
GRS g
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SECTION B
SUMMARY OF PLAN PROVISIONS
GRS
City of Winter Springs Defined Benefit Plan
Outline of Principal Provisions of the Retirement Plan
(as of October 1, 2014)
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 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 (15 0) 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.
GRS 11
City of Winter Springs Defined Benefit Plan
Outline of Principal Provisions of the Retirement Plan
(as of October 1, 2014)
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. Early 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.
L 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.
GRS 12
City of Winter Springs Defined Benefit Plan
Outline of Principal Provisions of the Retirement Plan
(as of October 1, 2014)
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.
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.
GRS 13
SECTION C
ACTUARIAL ASSUMPTIONS AND COST METHODS
USED FOR FUNDING
GRS
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
A. 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.
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.
GRS 14
General
Firefighters and
Service
Employ
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%
GRS 14
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
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:
IIIIW
or 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.
GRS 15
IIIIW
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.
GRS 15
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
E. Employee Withdrawal Rates (continued)
RP
Withdrawal Rates per 100 Employ
Service
AZe
0
3. Withdrawal
rates for
male Firefighters and Police Officers were used in accordance with the following illustrative
4
example:
6
7
8
9
10+
Withdrawal Rates per 100 Employ
21.3
15.5
12.3
10.3
9.7
6.1
5.9
5.0
4.2
4.2
Service
25
21.3
14.2
11.6
9.8
9.2
Age
0
1
2
3
4
5
6
7
8
9
10
6.1
20
21.4
10.3
8.6
8.4
7.5
5.3
5.2
3.1
2.9
2.6
2.3
5.9
25
20.6
9.8
8.1
7.9
7.0
5.3
5.2
3.1
2.9
2.6
2.3
5.0
30
20.6
9.5
7.7
7.5
6.7
5.3
5.2
3.1
2.9
2.6
2.1
4.1
35
20.6
8.8
7.4
7.2
6.5
5.3
5.1
3.1
2.9
2.6
2.0
4.0
40
20.6
8.0
6.8
6.7
6.0
4.8
4.6
3.1
2.9
2.6
1.9
4.0
45
20.6
7.3
6.0
6.0
5.5
4.3
4.1
3.1
2.9
2.6
1.8
65
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.
GRS 16
RP
Withdrawal Rates per 100 Employ
Service
AZe
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.
GRS 16
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
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%
65
0.010%
0.010%
2. Non -duty disability rates for General Employees were used in accordance with the following illustrative
example.
Age
Male RWFemale
20
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.
GRS 17
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
F. Disability Rates (continued)
3. Line -of -duty disability rates for Firefighters and Police Officers were used in accordance with the following
illustrative example.
pr 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
0.100%
0.080%
60
0.140%
0.150%
6
0.260%
0.150%
4. Non -duty disability rates for Firefighters and Police Officers were used in accordance with the following
illustrative example.
The disability assumptions are the disability assumptions used in the July 1, 2014 FRS Actuarial Valuation.
GRS 18
Male
Female
7
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.
GRS 18
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
G. Assumed Retirement Ate
Retirement rates were used in accordance with the following tables.
1. For Police Officers and Firefighters:
Age
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:
Age
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.
GRS 19
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
I 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.
Awe
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%
GRS 20
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
L. Chances Since Previous Valuation (continued)
2. Non -duty disability rates for General Employees were used in accordance with the following illustrative
example.
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.
Aye
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.
Aye
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%
GRS 21
City of Winter Springs Defined Benefit Plan
Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation
(as of October 1, 2014)
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.
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 disability assumptions were the disability assumptions used in the July 1, 2013 FRS Actuarial Valuation.
GRS 22
GLOSSARY
Actuarial Accrued Liability The difference between the Actuarial Present Value of Future Benefits,
and the Actuarial Present Value of Future Normal Costs.
Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities,
such as: mortality, withdrawal, disablement, and retirement; future
increases in salary; future rates of investment earnings; future investment
and administrative expenses; characteristics of members not specified in
the data, such as marital status; characteristics of future members; future
elections made by members and other items.
Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits
between the Actuarial Present Value of Future Normal Costs and the
Actuarial Accrued Liability.
Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and based
on a given set of Actuarial Assumptions.
Actuarial Present Value The amount of funds required to provide a payment or series of payments
in the future. It is determined by discounting the future payments with an
assumed interest rate and with the assumed probability each payment will
be made.
Actuarial Present Value of The Actuarial Present Value of amounts which are expected to be paid at
Future Benefits various future times to active members, retired members, beneficiaries
receiving benefits and inactive, non - retired members entitled to either a
refund or a future retirement benefit. Expressed another way, it is the
value that would have to be invested on the valuation date so that the
amount invested plus investment earnings would provide sufficient assets
to pay all projected benefits and expenses when due.
Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial
Accrued Liability, Actuarial Value of Assets, and related Actuarial
Present Values for a plan. An Actuarial Valuation for a governmental
retirement system typically also includes calculations of items needed for
compliance with GASB No. 67.
Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for
valuation purposes. This may be the market or fair value of plan assets
or a smoothed value in order to reduce the year -to -year volatility of
calculated results, such as the funded ratio and the actuarially required
contribution.
GRS 23
Amortization Method A method for determining the Amortization Payment. The most common
methods used are level dollar and level percentage of payroll. Under the
Level Dollar method, the Amortization Payment is one of a stream of
payments, all equal, whose Actuarial Present Value is equal to the UAAL.
Under the Level Percentage of Pay method, the Amortization Payment is
one of a stream of increasing payments, whose Actuarial Present Value is
equal to the UAAL. Under the Level Percentage of Pay method, the
stream of payments increases at the rate at which total covered payroll of
all active members is assumed to increase.
Amortization Payment That portion of the plan contribution which is designed to pay interest on
and to amortize the Unfunded Actuarial Accrued Liability.
Amortization Period The period used in calculating the Amortization Payment.
Annual Required The employer's periodic required contributions, expressed as a dollar
Contribution amount or a percentage of covered plan compensation. The annual
required contribution consists of the Employer Normal Cost and
Amortization Payment plus interest adjustment.
Closed Amortization Period A specific number of years that is reduced by one each year, and declines
to zero with the passage of time. For example if the amortization period is
initially set at 30 years, it is 29 years at the end of one year, 28 years at the
end of two years, etc.
Employer Normal Cost The portion of the Normal Cost to be paid by the employer. This is
equal to the Normal Cost less expected member contributions.
Equivalent Single For plans that do not establish separate amortization bases (separate
Amortization Period components of the UAAL), this is the same as the Amortization Period.
For plans that do establish separate amortization bases, this is the period
over which the UAAL would be amortized if all amortization bases were
combined upon the current UAAL payment.
Experience Gain /Loss A measure of the difference between actual experience and that expected
based upon a set of Actuarial Assumptions, during the period between two
actuarial valuations. To the extent that actual experience differs from that
assumed, Unfunded Actuarial Accrued Liabilities emerge which may be
larger or smaller than projected. Gains are due to favorable experience,
e.g., the assets earn more than projected, salaries do not increase as fast as
assumed, members retire later than assumed, etc. Favorable experience
means actual results produce actuarial liabilities not as large as projected
by the actuarial assumptions. Losses are the result of unfavorable
experience, i.e., actual results that produce Unfunded Actuarial Accrued
Liabilities which are larger than projected.
Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued
Liability.
GASB Governmental Accounting Standards Board.
GRS 24
GASB No. 67 and These are the governmental accounting standards that set the accounting
GASB No. 68 rules for public retirement plans and the employers that sponsor or
contribute to them. Statement No. 67 sets the accounting rules for the
plans themselves, while Statement No. 68 sets the accounting rules for the
employers that sponsor or contribute to public retirement plans.
Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current
plan year.
Open Amortization Period An open amortization period is one which is used to determine the
Amortization Payment but which does not change over time. In other
words, if the initial period is set as 30 years, the same 30 -year period is
used in determining the Amortization Period each year. In theory, if an
Open Amortization Period is used to amortize the Unfunded Actuarial
Accrued Liability, the UAAL will never completely disappear, but will
become smaller each year, either as a dollar amount or in relation to
covered payroll.
Unfunded Actuarial Accrued The difference between the Actuarial Accrued Liability and Actuarial
Liability Value of Assets.
Valuation Date The date as of which the Actuarial Present Value of Future Benefits are
determined. The benefits expected to be paid in the future are discounted
to this date.
GRS 25