OCEAN CITY-WRIGHT FIRE CONTROL DISTRICT
FIREFIGHTERS’ PENSION TRUST FUND
ACTUARIAL VALUATION
AS OF OCTOBER 1, 2017
CONTRIBUTIONS APPLICABLE TO THE PLAN/
FISCAL YEAR ENDED SEPTEMBER 30, 2019
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 · (239) 433-5500 · Fax (239) 481-0634 · www.foster-foster.com
November 21, 2017
Board of Trustees
Ocean City-Wright Fire Control District
Firefighters’ Pension Board
2 Racetrack Rd. N.E.
Ft. Walton Beach, FL 32547
Re: Firefighters’ Pension Trust Fund
Dear Board:
We are pleased to present to the Board this report of the annual actuarial valuation of the Ocean City-
Wright Fire Control District Firefighters’ Pension Trust Fund. Included are the related results for GASB
Statements No. 67 and No. 68. The funding valuation was performed to determine whether the assets and
contributions are sufficient to provide the prescribed benefits and to develop the appropriate funding
requirements for the applicable plan year. The calculation of the liability for GASB results was
performed for the purpose of satisfying the requirements of GASB Statements No. 67 and No. 68. Use of
the results for other purposes may not be applicable and may produce significantly different results.
The valuations have been conducted in accordance with generally accepted actuarial principles and
practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial Standards
Board, and reflects laws and regulations issued to date pursuant to the provisions of Chapters 112 and
175, Florida Statutes, as well as applicable federal laws and regulations. In our opinion, the assumptions
used in this valuation, as adopted by the Board of Trustees, represent reasonable expectations of
anticipated plan experience. Future actuarial measurements may differ significantly from the current
measurements presented in this report for a variety of reasons including: changes in applicable laws,
changes in plan provisions, changes in assumptions, or plan experience differing from expectations.
In conducting the valuations, we have relied on personnel, plan design, and asset information supplied by
the Board of Trustees, financial reports prepared by the custodian bank, and the actuarial assumptions and
methods described in the Actuarial Assumptions section of this report. While we cannot verify the
accuracy of all this information, the supplied information was reviewed for consistency and
reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the
information and believe that it has produced appropriate results. This information, along with any
adjustments or modifications, is summarized in various sections of this report.
The total pension liability, net pension liability, and certain sensitivity information shown in this report
are based on an actuarial valuation performed as of October 1, 2016. The total pension liability was
rolled-forward from the valuation date to the plan’s fiscal year ending September 30, 2017 using
generally accepted actuarial principles. It is our opinion that the assumptions used for this purpose are
internally consistent, reasonable, and comply with the requirements under GASB No. 67 and No. 68.
The undersigned is familiar with the immediate and long-term aspects of pension valuations, and meets
the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial
opinions contained herein. All of the sections of this report are considered an integral part of the actuarial
opinions.
To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the program has any
direct financial interest or indirect material interest in the Ocean City-Wright Fire Control District, nor
does anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the Ocean City-Wright
Fire Control District Firefighters’ Pension Trust Fund. Thus, there is no relationship existing that might
affect our capacity to prepare and certify this actuarial report.
If there are any questions, concerns, or comments about any of the items contained in this report, please
contact me at 239-433-5500.
Respectfully submitted,
Foster & Foster, Inc.
By: ___________
Drew D. Ballard, EA, MAAA
Enrolled Actuary #17-8193
DDB/lke
Enclosures
TABLE OF CONTENTS
Section Title Page
I Introduction
a. Introductory Discussion 5
b. Changes Since Prior Valuation 7
c. Contribution Impact of Annual Changes 8
d. Comparative Summary of Principal Valuation Results 9
II Valuation Information
a. Reconciliation of Unfunded Actuarial Accrued Liabilities 15
b. Detailed Actuarial Gain/Loss Analysis 17
c. Actuarial Assumptions and Methods 18
d. Valuation Notes 20
e. Partial History of Premium Tax Refunds 22
f. Excess State Monies Reserve 23
III Trust Fund 24
IV Member Statistics
a. Statistical Data 28
b. Age and Service Distribution 29
c. Valuation Participant Reconciliation 30
V Summary of Plan Provisions 31
VI Governmental Accounting Standards Board Disclosure Information 33
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 4
INTRODUCTORY DISCUSSION
The regular annual actuarial valuation of the Ocean City-Wright Fire Control District Firefighters’
Pension Trust Fund, performed as of October 1, 2017, has been completed, and the results are presented
in this Report. The results of this valuation are applicable to the plan/fiscal year ended September 30,
2019.
The contribution requirements developed in this valuation, compared with amounts developed in the
November 8, 2017 actuarial impact statement, are as follows:
Valuation Date 10/1/2017 10/1/2016
Applicable Fiscal Year End
9/30/2019 9/30/2018
Total Required Contribution
% of Total Projected Payroll
54.5% 50.6%
Member Contributions (Est.)
% of Total Projected Payroll
Required District and State Contribution
% of Total Projected Payroll
7.0%
47.5%
7.0%
43.6%
State Contributions (Est.)¹
% of Total Projected Payroll
261,635
12.5%
261,635
12.5%
Balance from District²
% of Total Projected Payroll 35.0% 31.1%
¹ Estimate based on amounts received during fiscal 2017. Reflects mutual consent of the
members’ collective bargaining agreement and the District on how State Monies are to be
allocated. It was agreed upon that all of the State money can be used towards plan funding.
² The required contribution from the combination of District and State sources for the year ending
September 30, 2019, is 47.5% of the actual payroll realized in that year. As a budgeting tool, the
District may contribute 35.0% of each Member’s Salary and then make a one-time adjustment to
account for the actual State Monies received.
As can be seen, the City’s Required Contribution has increased as a percentage of Total Annual Payroll.
This increase is due to actuarial assumption changes made in conjunction with the experience study dated
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 5
June 1, 2017 and a rise in assumed administrative expenses since the prior valuation. Partially offsetting
these increases were decreases attributable to net favorable experience realized by the plan during the
year, relative to the plan’s actuarial assumptions.
The plan experienced net favorable experience during the year. The principal components of favorable
experience were a 8.21% investment return (Actuarial Asset Basis) that exceeded the 7.75% assumption
and the termination of employment of participants not yet eligible for retirement with a substantial
amount of service. These participants must wait until age 55 to begin receiving benefits. These gains
were offset in part by losses caused by salary increases that were greater than assumed and the
disablement of an active firefighter.
The balance of this Report presents additional details of the actuarial valuation and the general operation
of the Fund. The undersigned would be pleased to meet with the Board of Trustees in order to discuss the
Report and answer any pending questions concerning its contents.
Respectfully submitted,
FOSTER & FOSTER, INC.
By:__________________________
Jason L. Franken, FSA, EA, MAAA
By:________________________
Drew D. Ballard, EA, MAAA
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 6
CHANGES SINCE PRIOR VALUATION
Plan Changes
Since the prior valuation, the plan was amended as follows:
• Amending the requirements for Normal Retirement eligibility from age 52 with completion of 25
years of service to age 50 with completion of 25 years of service. Please note the alternative of
age 55 with completion of 10 years of service will remain unchanged.
• Increasing the member contribution rate from 5.00% to 7.00% of Salary.
Actuarial Assumption/Method Changes
Since the prior valuation the following assumption changes were made:
• As mandated by Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed
from the rates used by the Florida Retirement System actuary in the July 1, 2015 actuarial
valuation to the rates used in the July 1, 2016 actuarial valuation for special risk lives.
• The investment return assumption was reduced from 7.75% to 7.50%.
• The salary increase assumption was changed from a flat 6.25% rate to a service-based table of
rates.
• The assumption that Members eligible for normal retirement at the valuation date will continue
working for one additional year was removed.
• The assumed termination rates were changed from an age-based table to a service-based table.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 7
(1) Contribution Determined as of October 1, 2016 31.2%
(2) Summary of Contribution Impact by component:
Change in Available State Money -0.1%
Change in Normal Cost Rate -0.4%
Change in Administrative Expense Percentage 1.9%
Payroll Change Effect on UAAL Amortization -1.1%
Investment Return (Actuarial Asset Basis) -0.1%
Salary Increases 0.7%
Active Decrements -1.2%
Inactive Mortality 0.1%
Sponsor Contributions More Than Required -0.9%
Assumption Change 4.9%
Other 0.0%
Total Change in Contribution 3.8%
(3) Contribution Determined as of October 1, 2017 35.0%
CONTRIBUTION IMPACT OF ANNUAL CHANGES
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COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
New Assump Old Assump
10/1/2017 10/1/2017 10/1/2016
A. Participant Data
Actives 37 37 36
Service Retirees 15 15 14
Beneficiaries 0 0 0
Disability Retirees 1 1 0
Terminated Vested 11 11 5
Total 64 64 55
Total Annual Payroll $2,244,828 $2,232,840 $2,108,455
Payroll Under Assumed Ret. Age 2,095,594 2,232,840 2,108,455
Annual Rate of Payments to:
Service Retirees 855,085 855,085 779,279
Beneficiaries 0 0 0
Disability Retirees 18,363 18,363 0
Terminated Vested 116,084 116,084 25,407
B. Assets
Actuarial Value (AVA) 10,759,573 10,759,573 9,599,383
Market Value (MVA) 11,441,263 11,441,263 9,537,261
C. Liabilities
Present Value of Benefits
Actives
Retirement Benefits 10,552,644 9,950,609 10,279,264
Disability Benefits 88,201 84,082 87,243
Death Benefits 51,177 111,940 120,954
Vested Benefits 864,303 791,976 1,112,038
Refund of Contributions 91,750 79,482 42,897
Service Retirees 10,054,269 9,819,067 9,087,919
Beneficiaries 0 0 0
Disability Retirees 248,005 240,934 0
Terminated Vested 691,952 664,578 195,948
Total 22,642,301 21,742,668 20,926,263
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New Assump Old Assump
C. Liabilities - (Continued) 10/1/2017 10/1/2017 10/1/2016
Present Value of Future Salaries 16,644,422 15,338,157 14,349,852
Present Value of Future
Member Contributions 1,165,110 1,073,671 1,004,490
Normal Cost (Retirement) 294,251 279,378 259,531
Normal Cost (Disability) 6,009 6,075 5,858
Normal Cost (Death) 2,594 5,788 5,512
Normal Cost (Vesting) 58,685 54,431 69,004
Normal Cost (Refunds) 13,508 12,853 7,681
Total Normal Cost 375,047 358,525 347,586
Present Value of Future
Normal Costs 2,884,273 2,482,672 2,409,039
Accrued Liability (Retirement) 8,242,512 7,976,230 8,446,955
Accrued Liability (Disability) 41,175 42,354 47,143
Accrued Liability (Death) 31,240 73,749 84,858
Accrued Liability (Vesting) 439,604 434,114 631,921
Accrued Liability (Refunds) 9,271 8,970 22,480
Accrued Liability (Inactives) 10,994,226 10,724,579 9,283,867
Total Actuarial Accrued Liability (AL) 19,758,028 19,259,996 18,517,224
Unfunded Actuarial Accrued
Liability (UAAL) 8,998,455 8,500,423 8,917,841
Funded Ratio (AVA / EAN AL) 54.5% 55.9% 51.8%
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D. Actuarial Present Value of New Assump Old Assump
Accrued Benefits 10/1/2017 10/1/2017 10/1/2016
Vested Accrued Benefits
Inactives 10,994,226 10,724,579 9,283,867
Actives 4,072,603 3,748,026 4,844,628
Member Contributions 1,062,371 1,062,371 1,174,737
Total 16,129,200 15,534,976 15,303,232
Non-vested Accrued Benefits 1,081,339 1,030,834 283,632
Total Present Value
Accrued Benefits (PVAB) 17,210,539 16,565,810 15,586,864
Funded Ratio (MVA / PVAB) 66.5% 69.1% 61.2%
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments 0 0
Assumption Changes 644,729 0
New Accrued Benefits 0 642,826
Benefits Paid 0 (839,338)
Interest 0 1,175,458
Other 0 0
Total 644,729 978,946
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New Assump Old Assump
Valuation Date 10/1/2017 10/1/2017 10/1/2016
Applicable to Fiscal Year Ending 9/30/2019 9/30/2019 9/30/2018
E. Pension Cost
Normal Cost (with interest) $389,111 $372,418 $361,055
% of Total Annual Payroll ¹ 18.6 16.7 17.1
Administrative Expenses (with interest) 70,883 70,968 27,306
% of Total Annual Payroll ¹ 3.4 3.2 1.3
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 30 years
(as of 10/1/2017, with interest) 681,834 662,671 677,921
% of Total Annual Payroll ¹ 32.5 29.7 32.2
Total Required Contribution 1,141,828 1,106,057 1,066,282
% of Total Annual Payroll ¹ 54.5 49.6 50.6
Expected Member Contributions 146,692 156,299 147,592
% of Total Annual Payroll ¹ 7.0 7.0 7.0
Expected District and State Contribution 995,136 949,758 918,690
% of Total Annual Payroll ¹ 47.5 42.6 43.6
F. Past Contributions
Plan Years Ending: 9/30/2017
Total Required Contribution 1,014,906
District and State Requirement 902,139
Actual Contributions Made:
Members (excluding buyback) 112,767
District 869,937
State 281,985
Total 1,264,689
G. Net Actuarial (Gain)/Loss (206,944)
¹ Contributions developed as of 10/1/2017 are expressed as a percentage of total
annual payroll at 10/1/2017 of $2,095,594.
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H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability as of:
Projected Unfunded
Year Actuarial Accrued Liability
2017 8,998,455
2018 8,966,859
2019 8,918,056
2026 7,942,831
2033 5,251,795
2040 1,369,709
2047 0
I. (i) 3 Year Comparison of Actual and Assumed Salary Increases
Actual Assumed
Year Ended 9/30/2017 13.01% 6.25%
Year Ended 9/30/2016 7.61% 6.25%
Year Ended 9/30/2015 3.03% 6.25%
(ii) 3 Year Comparison of Investment Return on Actuarial Value
Actual Assumed
Year Ended 9/30/2017 8.21% 7.75%
Year Ended 9/30/2016 6.40% 7.75%
Year Ended 9/30/2015 7.78% 7.75%
(iii) Average Annual Payroll Growth
(a) Payroll as of: 10/1/2017 $2,244,828
10/1/2007 1,600,239
(b) Total Increase 40.28%
(c) Number of Years 10.00
(d) Average Annual Rate 3.44%
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STATEMENT BY ENROLLED ACTUARY
This actuarial valuation 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 otherwise taken into account in the valuation. All known events or trends which may
require a material increase in plan costs or required contribution rates have been taken into account in the
valuation.
_____________________________
Drew D. Ballard, EA, MAAA
Enrolled Actuary #17-8193
Please let us know when the report is approved by the Board and unless otherwise directed we will
provide copies of the report to the following offices to comply with Chapter 112 Florida Statutes:
Mr. Keith Brinkman
Bureau of Local
Retirement Systems
Post Office Box 9000
Tallahassee, FL 32315-9000
Ms. Sarah Carr
Municipal Police and Fire
Pension Trust Funds
Division of Retirement
Post Office Box 3010
Tallahassee, FL 32315-3010
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 14
RECONCILIATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITIES
(1) Unfunded Actuarial Accrued Liability as of October 1, 2016 $8,917,841
(2) Sponsor Normal Cost developed as of October 1, 2016 242,163
(3) Expected administrative expenses for the year ended September 30, 2017 26,287
(4) Expected interest on (1), (2) and (3) 710,919
(5) Sponsor contributions to the System during the year ended September 30, 2017 1,151,922
(6) Expected interest on (5) 37,921
(7) Expected Unfunded Actuarial Accrued Liability as of
September 30, 2017 (1)+(2)+(3)+(4)-(5)-(6) 8,707,367
(8) Change to UAAL due to Assumption Change 498,032
(9) Change to UAAL due to Actuarial (Gain)/Loss (206,944)
(10) Unfunded Actuarial Accrued Liability as of October 1, 2017 8,998,455
Type of Date Years 10/1/2017 Amortization
Base Established Remaining Amount Amount
Initial Base 10/1/2004 27 3,726,131 249,131
Benefit Change 10/1/2005 18 81,492 6,771
Method Change 10/1/2006 19 419,095 33,716
Prior Losses 10/1/2006 19 419,095 33,716
Benefit Change 10/1/2006 19 1,314,558 105,756
Actuarial Gain 10/1/2007 20 (722,137) (56,392)
Benefit Change 10/1/2007 20 196,061 15,310
Actuarial Loss 10/1/2008 21 2,667,796 202,682
Method Change 10/1/2008 21 (743,683) (56,500)
Actuarial Loss 10/1/2009 22 1,571,097 116,366
Actuarial Gain 10/1/2010 23 (59,558) (4,309)
Assum. Changes 10/1/2010 23 759,099 54,915
Actuarial Loss 10/1/2011 24 782,806 55,405
Actuarial Gain 10/1/2012 25 (496,912) (34,462)
Actuarial Gain 10/1/2013 26 (1,044,825) (71,102)
Actuarial Gain 10/1/2014 27 (524,316) (35,056)
Benefit Change 10/1/2014 27 (332,366) (22,222)
Actuarial Gain 10/1/2015 28 (56,074) (3,688)
Actuarial Loss 10/1/2016 29 279,908 18,127
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Type of Date Years 10/1/2017 Amortization
Base Established Remaining Amount Amount
Assum. Changes 10/1/2016 29 392,966 25,449
Benefit Change 10/1/2016 29 77,134 4,995
Actuarial Gain 10/1/2017 30 (206,944) (13,210)
Assum. Changes 10/1/2017 30 498,032 31,791
8,998,455 657,189
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 16
(1) Unfunded Actuarial Accrued Liability (UAAL) as of October 1, 2016 $8,917,841
(2) Expected UAAL as of October 1, 2017 8,707,367
(3) Summary of Actuarial (Gain)/Loss, by component:
Investment Return (Actuarial Asset Basis) (45,000)
Salary Increases 223,166
Active Decrements (399,425)
Inactive Mortality 22,974
Other (8,659)
Increase in UAAL due to (Gain)/Loss (206,944)
Assumption Changes 498,032
(4) Actual UAAL as of October 1, 2017 $8,998,455
DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 17
ACTUARIAL ASSUMPTIONS AND METHODS
Mortality Rate Healthy Lives (Inactive):
Female: RP2000 Generational, 100% Annuitant White
Collar, Scale BB.
Male: RP2000 Generational, 10% Annuitant White
Collar / 90% Annuitant Blue Collar, Scale BB.
Healthy Lives (Active):
Female: RP2000 Generational, 100% Combined
Healthy White Collar, Scale BB.
Male: RP2000 Generational, 10% Combined Healthy
White Collar / 90% Combined Healthy Blue Collar,
Scale BB.
Disabled Lives:
Female: 60% RP2000 Disabled Female set forward two
years / 40% Annuitant White Collar with no setback, no
projection scale.
Male: 60% RP2000 Disabled Male setback four years /
40% Annuitant White Collar with no setback, no
projection scale.
The above assumption rates were mandated by Chapter
2015-157, Laws of Florida. This law mandates the use
of the assumption used in either of the two most recent
valuations of the Florida Retirement System (FRS). The
above rates are those outlined in Milliman’s July 1, 2016
FRS valuation report for special risk employees. We
feel this assumption sufficiently accommodates future
mortality improvements.
The prior year rates were those outlined in Milliman’s
July 1, 2015 FRS valuation report for special risk
employees.
Interest Rate 7.50% per year compounded annually, net of investment
expenses. This is supported by the target asset class
allocation of the trust and the expected long-term return
by asset class.
Retirement Age Earlier of 1) Age 50 and 25 years of service or 2) age 55
and 10 years of service. This assumption is deemed
reasonable based on plan provisions.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 18
Early Retirement It is assumed that Members who are eligible for Early
Retirement will retire at the rate of 5% per year. This
assumption is deemed reasonable based on plan
provisions.
Disability Rate See table below (1201). It is assumed that 75% of
disablements and active Member deaths are service
related. This assumption is deemed reasonable based on
plan provisions.
Termination Rate See table below. This assumption was adopted in
conjunction with the experience study dated June 1,
2017.
Salary Increases See table below. This assumption was adopted in
conjunction with the experience study dated June 1,
2017. Projected salary at retirement is increased 20% to
account for non-regular pay.
Payroll Growth Up to 5.0% annually. Assumption is limited by historical
10-year payroll growth. (2.10% for 2017 valuation;
2.10% for 2016).
Administrative Expenses $68,321 annually. This assumption is equal to the
amount paid out of the trust in the prior year.
Funding Method Entry Age Normal Actuarial Cost Method.
Actuarial Asset Method Each year, the prior Actuarial Value of Assets is brought
forward utilizing the historical geometric four-year
average Market Value return (net of fees). It is possible
that over time this technique will produce an
insignificant bias above or below Market Value of
Assets.
% Terminating
During the Year % Becoming Disabled
During the Year
Service Rate
Age Rate
<=9 9.00%
20 0.03%
10-19 4.50%
25 0.03%
>=20 2.00%
30 0.04%
35 0.05%
40 0.07%
45 0.10%
50 0.18%
55 0.36%
60 0.90%
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 19
VALUATION NOTES
Total Annual Payroll is the annual rate of pay for the fiscal year following the valuation date of all
covered Members.
Present Value of Benefits is the single sum value on the valuation date of all future benefits to be paid to
current Members, Retirees, Beneficiaries, Disability Retirees and Vested Terminations.
Total Required Contribution is equal to the Normal Cost plus an amount sufficient to amortize the
Unfunded Accrued Liability over no more than 30 years. The required amount is adjusted for interest
according to the timing of contributions during the year.
Entry Age Normal Cost Method - Under this method, the normal cost is the sum of the individual normal
costs for all active participants. For an active participant, the normal cost is the participant’s normal cost
accrual rate, multiplied by the participant’s current compensation.
(a) The normal cost accrual rate equals
(i) the present value of future benefits for the participant, determined as of the participant’s entry age,
divided by
(ii) the present value of the compensation expected to be paid to the participant for each year of the
participant’s anticipated future service, determined as of the participant’s entry age.
(b) In calculating the present value of future compensation, the salary scale is applied both
retrospectively and prospectively to estimate compensation in years prior to and subsequent to the
valuation year based on the compensation used for the valuation.
(c) The accrued liability is the sum of the individual accrued liabilities for all participants and
beneficiaries. A participant’s accrued liability equals the present value, at the participant’s attained
age, of future benefits less the present value at the participant’s attained age of the individual normal
costs payable in the future. A beneficiary’s accrued liability equals the present value, at the
beneficiary’s attained age, of future benefits. The unfunded accrued liability equals the total accrued
liability less the actuarial value of assets.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 20
(d) Under this method, the entry age used for each active participant is the participant’s age at the time
he or she would have commenced participation if the plan had always been in existence under current
terms, or the age as of which he or she first earns service credits for purposes of benefit accrual under
the current terms of the plan.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 21
PARTIAL HISTORY OF PREMIUM TAX REFUNDS
Received During Increase from
Fiscal Year Amount Previous Year
2005 23,346.92 N/A
2006 81,748.84 250.1%
2007 117,833.20 44.1%
2008 240,958.80 104.5%
2009 267,235.56 10.9%
2010 208,041.34 -22.2%
2011 212,600.02 2.2%
2012 261,902.86 23.2%
2013 256,099.63 -2.2%
2014 271,574.54 6.0%
2015 293,053.63 7.9%
2016 296,666.27 1.2%
2017 281,984.74 -4.9%
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 22
Actual Applicable Excess State
State Contribution "Frozen" Amount Monies Reserve
1998 $0.00 $0.00 $0.001999 0.00 0.00 0.002000 0.00 0.00 0.002001 0.00 0.00 0.002002 0.00 0.00 0.002003 0.00 0.00 0.002004 0.00 0.00 0.002005 23,346.92 89,920.00 0.002006 81,748.84 94,138.00 0.002007 117,833.20 94,138.00 23,695.20
2008 240,958.80 165,086.00 75,872.802009 267,235.56 185,828.00 81,407.562010 208,041.34 185,828.00 22,213.342011 212,600.02 185,828.00 26,772.022012 261,902.86 185,828.00 76,074.862013 256,099.63 185,828.00 70,271.632014 271,574.54 185,828.00 85,746.542015 293,053.63 293,053.63 0.002016 296,666.27 296,666.27 0.002017 281,984.74 281,984.74 0.00
462,053.95
Accumulated Regular Excess 462,053.95Accumulated Special Excess 0.00
Total Excess State Monies 462,053.95
Less Excess Used in FundingOrdinance No. 14-01 (Suppl. Elig.) (438,358.75)
Less Excess Used in Funding
Ordinance No. 08-01 (23,695.20)
Equals Current State Monies Reserve $0.00
EXCESS STATE MONIES RESERVE
Regular DistributionFirefighters' Distribution
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 23
ASSETS COST VALUE MARKET VALUECash and Cash Equivalents: Short Term Investments 419,460.08 419,460.08
Total Cash and Equivalents 419,460.08 419,460.08
Receivables: Investment Income 19,988.42 19,988.42
Total Receivable 19,988.42 19,988.42
Investments: U. S. Bonds and Bills 75,860.00 79,623.20 Corporate Bonds 2,257,794.12 2,336,065.96 Municipal Obligations 44,500.00 48,188.50 Stocks 6,184,569.11 8,537,936.85
Total Investments 8,562,723.23 11,001,814.51
Total Assets 9,002,171.73 11,441,263.01
LIABILITIES
Total Liabilities 0.00 0.00
NET POSITION RESTRICTED FOR PENSIONS 9,002,171.73 11,441,263.01
STATEMENT OF FIDUCIARY NET POSITIONSEPTEMBER 30, 2017
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 24
STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONFOR THE YEAR ENDED SEPTEMBER 30, 2017
Market Value Basis
ADDITIONSContributions: Member 112,767.38 District 869,937.36 State 281,984.74
Total Contributions 1,264,689.48
Investment Income: Net Realized Gain (Loss) 483,648.94 Unrealized Gain (Loss) 947,308.65 Net Increase in Fair Value of Investments 1,430,957.59 Interest & Dividends 180,756.07
Less Investment Expense¹ (64,742.20)
Net Investment Income 1,546,971.46
Total Additions 2,811,660.94
DEDUCTIONSDistributions to Members: Benefit Payments 839,194.07 Lump Sum DROP Distributions 0.00 Refunds of Member Contributions 143.79
Total Distributions 839,337.86
Administrative Expense 68,321.38
Total Deductions 907,659.24
Net Increase in Net Position 1,904,001.70
NET POSITION RESTRICTED FOR PENSIONSBeginning of the Year 9,537,261.31
End of the Year 11,441,263.01
¹Investment related expenses include investment advisory, custodial and performance monitoring fees.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 25
ACTUARIAL ASSET VALUATIONSEPTEMBER 30, 2017
Actuarial Assets for funding purposes are developed by increasing the Actuarial Assets used in the most recent actuarial valuation of the Fund by the average annual market value rate of return (net of investment related expenses) for the past four years. Actuarial Assets shall not be less than 80% nor greater than 120% of Market Value of Assets.
Details of the derivation are set forth as follows:
Plan Year End Rate of Return¹
09/30/2014 12.85%
09/30/2015 -6.14%
09/30/2016 11.55%
09/30/2017 16.06%
Annualized Rate of Return for prior four (4) years: 8.21%
(A) 10/01/2016 Actuarial Assets: $9,599,383.06
(I) Net Investment Income:
1. Interest and Dividends 180,756.07 2. Realized Gains (Losses) 483,648.94 3. Change in Actuarial Value 203,496.50 4. Investment Related Expenses (64,742.20)
Total 803,159.31
(B) 10/01/2017 Actuarial Assets: $10,759,572.61
Actuarial Asset Rate of Return = 2I/(A+B-I): 8.21%
10/01/2017 Limited Actuarial Assets: $10,759,572.61
10/01/2017 Market Value of Assets: $11,441,263.01
Actuarial Gain/(Loss) due to Investment Return (Actuarial Asset Basis) $45,000.40
¹Market Value Basis, net of investment related expenses.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 26
SEPTEMBER 30, 2017Actuarial Asset Basis
REVENUESContributions: Member 112,767.38 District 869,937.36 State 281,984.74
Total Contributions 1,264,689.48
Earnings from Investments: Interest & Dividends 180,756.07 Net Realized Gain (Loss) 483,648.94Change in Actuarial Value 203,496.50
Total Earnings and Investment Gains 867,901.51
EXPENDITURESDistributions to Members: Benefit Payments 839,194.07 Lump Sum DROP Distributions 0.00 Refunds of Member Contributions 143.79
Total Distributions 839,337.86
Expenses:
Investment related¹ 64,742.20 Administrative 68,321.38
Total Expenses 133,063.58
Change in Net Assets for the Year 1,160,189.55
Net Assets Beginning of the Year 9,599,383.06
Net Assets End of the Year² 10,759,572.61
¹Investment related expenses include investment advisory, custodial and performance monitoring fees.
²Net Assets may be limited for actuarial consideration.
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 27
STATISTICAL DATA
10/1/2014 10/1/2015 10/1/2016 10/1/2017
Actives - Hired before 10/1/2014
Number 34 35 30 24
Average Current Age 38.7 39.3 40.2 41.2
Average Age at Employment 26.2 25.7 25.9 25.9
Average Past Service 12.5 13.6 14.3 15.3
Average Annual Salary $56,363 $57,551 $61,155 $68,224
Actives - Hired on or after 10/1/2014
Number N/A 2 6 13
Average Current Age N/A 28.9 28.3 27.8
Average Age at Employment N/A 27.9 27.6 26.8
Average Past Service N/A 1.0 0.7 1.0
Average Annual Salary N/A $43,478 $45,635 $46,726
Service Retirees
Number 11 11 14 15
Average Current Age N/A 59.6 58.8 59.3
Average Annual Benefit $52,493 $52,315 $55,663 $57,006
Beneficiaries
Number 0 0 0 0
Average Current Age N/A N/A N/A N/A
Average Annual Benefit N/A N/A N/A N/A
Disability Retirees
Number 0 0 0 1
Average Current Age N/A N/A N/A 34.7
Average Annual Benefit N/A N/A N/A $18,363
Terminated Vested
Number 5 5 5 11
Average Current Age N/A 45.3 43.8 44.1
Average Annual Benefit ¹ $16,578 $16,578 $12,704 $23,217
¹ The Average Annual Benefit excludes participants awaiting a refund of contributions.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 28
AGE AND SERVICE DISTRIBUTION
PAST SERVICE
AGE 0 1 2 3 4 5-9 10-14 15-19 20-24 25-29 30+ Total
15 - 19 0 0 0 0 0 0 0 0 0 0 0 0
20 - 24 4 3 0 1 0 0 0 0 0 0 0 8
25 - 29 1 0 0 1 0 1 0 0 0 0 0 3
30 - 34 2 1 0 0 0 0 1 1 0 0 0 5
35 - 39 1 0 0 0 1 2 2 0 0 0 0 6
40 - 44 0 0 0 0 0 0 1 2 0 0 0 3
45 - 49 0 1 0 0 0 1 2 2 1 0 0 7
50 - 54 0 0 0 0 0 0 0 1 1 2 1 5
55 - 59 0 0 0 0 0 0 0 0 0 0 0 0
60 - 64 0 0 0 0 0 0 0 0 0 0 0 0
65+ 0 0 0 0 0 0 0 0 0 0 0 0
Total 8 5 0 2 1 4 6 6 2 2 1 37
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 29
VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation 10/1/2016 36
b. Terminations
i. Vested (partial or full) with deferred benefits (5)
ii. Non-vested or full lump sum distribution received 0
c. Deaths
i. Beneficiary receiving benefits 0
ii. No future benefits payable 0
d. Disabled (1)
e. Retired (1)
f. Continuing participants 29
g. New entrants 8
h. Total active life participants in valuation 37
2. Non-Active lives (including beneficiaries receiving benefits)
Service
Retirees,
Vested Receiving Receiving
Receiving Death Disability Vested
Benefits Benefits Benefits Deferred Total
a. Number prior valuation 14 0 0 5 19
Retired 1 0 0 0 1
Vested Deferred 0 0 0 5 5
Death, With Survivor 0 0 0 0 0
Death, No Survivor 0 0 0 0 0
Disabled 0 0 1 0 1
Refund of Contributions 0 0 0 0 0
Rehires 0 0 0 0 0
Expired Annuities 0 0 0 0 0
Hired/Term Same Year 0 0 0 1 1
b. Number current valuation 15 0 1 11 27
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 30
SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 2017-12)
Credited Service Total years and fractional parts of years of contributing
employment with the District as a Firefighter.
Salary Total W-2 Compensation, including lump sum sick and
vacation payouts at retirement.
Average Final Compensation Members hired before October 1, 2014: average Salary
for the best 3 years during the 5 years immediately
preceding retirement or termination.
Members hired on or after October 1, 2014: average base
pay plus Paramedic or EMT incentive pay.
Member Contributions 7.0% of Salary.
District and State Contributions Remaining amount required in order to fund to actuarial
soundness. District contributions shall not be less than
Member contributions.
Normal Retirement
Date Earlier of: 1) Age 50 and 25 years of Credited Service,
or 2) age 55 and 10 years of Credited Service.
Benefit 3.0% of Average Final Compensation times Credited
Service.
Form of Benefit Ten Year Certain and Life Annuity
(options available).
Early Retirement
Eligibility Age 50 and 10 Years of Credited Service.
Benefit Accrued benefit, reduced 3% per year.
Supplement $10 for each year of Credited Service. Commencing
immediately after Retirement and ceasing at the earlier
of death or age 65.
Vesting
Schedule Members hired before October 1, 2014: 100% after
seven (7) years of Credited Service.
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Members hired on or after October 1, 2014: 100% after
ten (10) years of Credited Service
Disability
Eligibility
Service Incurred Covered from Date of Employment.
Non-Service Incurred 10 years of Credited Service.
Exclusions Disability resulting from use of drugs, illegal
participation in riots, service in military, etc.
Benefit Benefit accrued to date of disability but not less than
42% of Average Final Compensation for service-
incurred disability, and 30% of Average Final
Compensation for non-service-incurred disability.
Duration Payable for life with 10 years certain (options available)
or until recovery (as determined by the Board).
Death Benefits
Vested Monthly accrued benefit payable to
designated beneficiary for 10 years at Member's Normal
or Early Retirement Date.
Non-Vested Refund of accumulated contributions without interest.
Deferred Retirement Option Plan
Eligibility Satisfaction of Normal Retirement requirements.
Participation Not to exceed 60 months.
Rate of Return Participant’s election:
a) 6.5% annually, or
b) Actual net rate of investment return (total return net
of brokerage commissions, transaction costs, and
management fees) credited each fiscal quarter.
Form of Distribution Cash lump sum (options available) at termination of
employment.
Share Plan
Funded Status Not currently funded.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 32
GASB 67STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2017
ASSETSCash and Cash Equivalents: Short Term Investments
Total Cash and Equivalents
Receivables: Investment Income
Total Receivable
Investments: U. S. Bonds and Bills Corporate Bonds Municipal Obligations Stocks
Total Investments
Total Assets
Total Liabilities
NET POSITION RESTRICTED FOR PENSIONS
MARKET VALUE
419,460
419,460
19,988
19,988
79,6232,336,066
48,1898,537,937
11,001,815
11,441,263
0
11,441,263
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 33
GASB 67
ADDITIONSContributions: Member 112,767 District 869,937 State 281,985
Total Contributions 1,264,689
Investment Income: Net Increase in Fair Value of Investments 1,430,958 Interest & Dividends 180,756 Less Investment Expense¹ (64,742)
Net Investment Income 1,546,972
Total Additions 2,811,661
DEDUCTIONSDistributions to Members: Benefit Payments 839,194 Lump Sum DROP Distributions 0 Refunds of Member Contributions 144
Total Distributions 839,338
Administrative Expense 68,321
Total Deductions 907,659
Net Increase in Net Position 1,904,002
NET POSITION RESTRICTED FOR PENSIONSBeginning of the Year 9,537,261
End of the Year 11,441,263
¹Investment related expenses include investment advisory, custodial and performance monitoring fees.
STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONFOR THE YEAR ENDED SEPTEMBER 30, 2017
Market Value Basis
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 34
GASB 67
Plan Description
Plan Administration
Plan Membership as of October 1, 2016:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 14 Inactive Plan Members Entitled to But Not Yet Receiving Benefits 5 Active Plan Members 36
55
Benefits Provided
Normal Retirement:
Early Retirement:
Disability:
Death Benefits:
Share Plan:
ContributionsMember Contributions: 7.0% of Salary.
The Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund is a single-employer defined benefit pension plan administered by a Board of Trustees which acts as the administrator of the Plan. The Board consists of 5 Trustees, 2 of whom shall be legal residents of the District who are appointed by the District Board of Fire Commissioners, 2 of whom are Members of the Plan who are elected by a majority of the Firefighters who are Members of the Plan and a fifth Trustee who is chosen by a majority of the first 4 Trustees.
(For the Year Ended September 30, 2017)
The Plan provides retirement, termination, disability and death benefits.
Date:Earlier of: 1) Age 50 and 25 years of Credited Service, or 2) age 55 and 10 years of Credited Service.Benefit: 3.0% of Average Final Compensation times Credited Service.
Eligibility: Age 50 and 10 Years of Credited Service.Benefit: Accrued benefit, reduced 3% per year.
Vesting:Schedule: Members hired before October 1, 2014: 100% after seven (7) years of Credited Service.
Eligibility: Service Incurred: Covered from Date of Employment.Non-Service Incurred: 10 years of Credited Service.Benefit: Benefit accrued to date of disability but not less than 42% of Average Final Compensation for service-incurred disability, and 30% of Average Final Compensation for non-service-incurred disability.
Members hired on or after October 1, 2014: 100% after ten (10) years of Credited Service.
NOTES TO THE FINANCIAL STATEMENTS
Vested: Monthly accrued benefit payable to designated beneficiary for 10 years at Member's Normal or Early Retirement Date.Non-Vested: Refund of accumulated contributions without interest.
Supplemental Benefit:$10 for each year of Credited Service. Commencing immediately after Retirement and ceasing at the earlier of death or age 65.
District and State Contributions: Remaining amount required in order to fund to actuarial soundness. District contributions shall not be less than Member contributions.
Funded Status: Not currently funded.
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GASB 67
InvestmentsInvestment Policy:The following was the Board's adopted asset allocation policy as of September 30, 2017:
Asset Class Target AllocationDomestic Equity 60%Broad Market Fixed Income 40%Total 100%
Concentrations:
Rate of Return:
Deferred Retirement Option Program
The DROP balance as September 30, 2017 is $0.
Eligibility: Satisfaction of Normal Retirement requirements.
Rate of Return: Participant’s election:a) 6.5% annually, orb) Actual net rate of investment return (total return net of brokerage commissions, transaction costs, and management fees) credited each fiscal quarter.
Participation: Not to exceed 60 months.
For the year ended September 30, 2017, the annual money-weighted rate of return on Pension Plan investments, net of Pension Plan investment expense, was 16.06 percent.
The Plan did not hold investments in any one organization that represent 5 percent or more of the Pension Plan's Fiduciary Net Position.
The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 36
GASB 67
The components of the Net Pension Liability of the Sponsor on September 30, 2017 were as follows:
Total Pension Liability 19,778,527$ Plan Fiduciary Net Position (11,441,263)$ Sponsor's Net Pension Liability 8,337,264$ Plan Fiduciary Net Position as a percentage of Total Pension Liability 57.85%
Actuarial Assumptions:
Inflation 2.50%Salary Increases Service basedDiscount Rate 7.50%Investment Rate of Return 7.50%
Mortality Rate Healthy Inactive Lives:Female: RP 2000 Generational, 100% Annuitant White Collar, Scale BB.Male: RP 2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB.Mortality Rate Healthy Active Lives:Female: RP2000 Generational, 100% Combined Healthy (previously Annuitant) White Collar, Scale BB.
Mortality Rate Disabled Lives:Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale.Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale.
The most recent actuarial experience study used to review the other significant assumptions was dated June 1, 2017.
Domestic EquityBroad Market Fixed Income
The Total Pension Liability was determined by an actuarial valuation as of October 1, 2016 updated to September 30, 2017 using the following actuarial assumptions:
NET PENSION LIABILITY OF THE SPONSOR
The Long-Term Expected Rate of Return on Pension Plan investments can be determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of Pension Plan investment expenses and inflation) are developed for each major asset class.
These ranges are combined to produce the Long-Term Expected Rate of Return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of geometric real rates of return for each major asset class included in the Pension Plan's target asset allocation as of September 30, 2017 are summarized in the following table:
Asset Class
For 2017 the inflation rate assumption of the investment advisor was 2.50%.
Long Term Expected Real Rate of Return
7.5%2.5%
Male: RP2000 Generational, 10% Combined Healthy (previously Annuitant) White Collar / 90% Combined Healthy Blue Collar, Scale BB.
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GASB 67
Discount Rate:The Discount Rate used to measure the Total Pension Liability was 7.50 percent.
1% Decrease Current
Discount Rate 1% Increase 6.50% 7.50% 8.50%
Sponsor's Net Pension Liability 10,838,809$ 8,337,264$ 6,263,954$
The projection of cash flows used to determine the Discount Rate assumed that Plan Member contributions will be made at the current contribution rate and that Sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the Member rate. Based on those assumptions, the Pension Plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the Long-Term Expected Rate of Return on Pension Plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 38
GASB 67
09/30/2017 09/30/2016 09/30/2015Total Pension LiabilityService Cost 372,747 356,559 324,974 Interest 1,405,503 1,305,113 1,235,278 Change in Excess State Money - - - Changes of benefit terms 101,759 - (358,128) Differences between Expected and Actual Experience 219,507 (51,218) (466,348) Changes of assumptions 437,658 362,326 - Benefit Payments, including Refunds of Employee Contributions (839,338) (751,402) (574,097) Net Change in Total Pension Liability 1,697,836 1,221,378 161,679 Total Pension Liability - Beginning 18,080,691 16,859,313 16,697,634 Total Pension Liability - Ending (a) 19,778,527$ 18,080,691$ 16,859,313$
Plan Fiduciary Net PositionContributions - Employer 869,937 767,020 751,628 Contributions - State 281,985 296,666 293,054 Contributions - Employee 112,767 103,249 98,883 Net Investment Income 1,546,972 955,354 (511,711) Benefit Payments, including Refunds of Employee Contributions (839,338) (751,402) (574,097) Administrative Expense (68,321) (26,287) (31,115) Net Change in Plan Fiduciary Net Position 1,904,002 1,344,600 26,642 Plan Fiduciary Net Position - Beginning 9,537,261 8,192,661 8,166,019 Plan Fiduciary Net Position - Ending (b) $ 11,441,263 $ 9,537,261 $ 8,192,661
Net Pension Liability - Ending (a) - (b) 8,337,264$ 8,543,430$ 8,666,652$
Plan Fiduciary Net Position as a percentage of the Total Pension Liability 57.85% 52.75% 48.59%
Covered Employee Payroll¹ 2,255,348$ 2,064,973$ 1,977,651$ Net Pension Liability as a percentage of Covered Employee Payroll 369.67% 413.73% 438.23%
Notes to Schedule:
¹ The Covered Employee Payroll numbers shown are in compliance with GASB 82.
Changes of benefit terms:For measurement date 09/30/2017, the plan was amended as follows:
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOSLast 10 Fiscal Years
For measurement date 09/30/2015, amounts reported as changes of benefit terms were resulted from the Actuarial Impact Statement, effective July 9, 2015. This Statement reflected the change to immediate commencement for the Supplemental Benefit. In addition, the new provisions for Members hired on or after October 1, 2014, as reflected in the No Impact Letter dated December 10, 2014. Members hired on or after October 1, 2014 will be 100% vested after ten years of service.
• Amending the requirements for Normal Retirement eligibility from age 52 with completion of 25 years of service to age 50 with completion of 25 years of service. Please note the alternative of age 55 with completion of 10 years of service will remain unchanged.• Increasing the member contribution rate from 5.00% to 7.00% of Salary.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 39
GASB 67
Changes of assumptions:For measurement date 09/30/2017, amounts reported as changes of assumptions resulted from the following:
• The assumed termination rates were changed from an age-based table to a service-based table.
For measurement date 09/30/2016, as a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for special risk employees.The inflation assumption rate was lowered from 3.00% to 2.50%, matching the long-term inflation assumption utilized by the Plan's investment consultant.
• As mandated by Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed from the rates used by the Florida Retirement System actuary in the July 1, 2015 actuarial valuation to the rates used in the July 1, 2016 actuarial valuation for special risk lives.• The investment return assumption was reduced from 7.75% to 7.50%.• The salary increase assumption was changed from a flat 6.25% rate to a service-based table of rates.• The assumption that Members eligible for normal retirement at the valuation date will continue working for one additional year was removed.
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 40
GASB 67
09/30/2014 09/30/2013Total Pension LiabilityService Cost 334,644 310,574 Interest 1,188,991 1,118,143 Change in Excess State Money 85,747 - Changes of benefit terms - - Differences between Expected and Actual Experience - - Changes of assumptions - - Benefit Payments, including Refunds of Employee Contributions (543,077) (534,162) Net Change in Total Pension Liability 1,066,305 894,555 - Total Pension Liability - Beginning 15,631,329 14,736,774 Total Pension Liability - Ending (a) 16,697,634$ 15,631,329$ -$
Plan Fiduciary Net PositionContributions - Employer 675,794 751,271 Contributions - State 271,575 256,100 Contributions - Employee 98,300 94,763 Net Investment Income 886,217 515,106 Benefit Payments, including Refunds of Employee Contributions (543,077) (534,162) Administrative Expense (16,744) (14,235) Net Change in Plan Fiduciary Net Position 1,372,065 1,068,843 Plan Fiduciary Net Position - Beginning 6,793,954 5,725,111 Plan Fiduciary Net Position - Ending (b) $ 8,166,019 $ 6,793,954
Net Pension Liability - Ending (a) - (b) 8,531,615$ 8,837,375$
Plan Fiduciary Net Position as a percentage of the Total Pension Liability 48.91% 43.46%
Covered Employee Payroll¹ 1,965,995$ 1,895,259$ Net Pension Liability as a percentage of Covered Employee Payroll 433.96% 466.29%
Notes to Schedule:
¹ The Covered Employee Payroll numbers shown are in compliance with GASB 82.
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOSLast 10 Fiscal Years
Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 41
GASB 67
09/30/2017 09/30/2016 09/30/2015 09/30/2014 09/30/2013Actuarially Determined Contribution 902,139 830,119 761,399 829,650 756,208 Contributions in relation to the Actuarially Determined Contributions 1,151,922 1,063,686 1,044,682 861,622 756,208 Contribution Deficiency (Excess) (249,783)$ (233,567)$ (283,283)$ (31,972)$ -$
Covered Employee Payroll¹ 2,255,348$ 2,064,973$ 1,977,651$ 1,965,995$ 1,895,259$ Contributions as a percentage of Covered Employee Payroll 51.08% 51.51% 52.82% 43.83% 39.90%
¹ The Covered Employee Payroll numbers shown are in compliance with GASB 82.
Notes to Schedule
Valuation Date: 10/01/2015
Methods and assumptions used to determine contribution rates:
Funding Method:Amortization Method:Remaining Amortization Period:Mortality:
Interest Rate:
Retirement Age:
Early Retirement:
Disability Rates:
Termination Rates:
Salary Increases:
Payroll Growth:
Actuarial Asset Method:
Level Percentage of Pay, Closed.Entry Age Normal Actuarial Cost Method.
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported.
SCHEDULE OF CONTRIBUTIONSLast 10 Fiscal Years
Each year, the prior Actuarial Value of Assets is brought forward utilizing the historical geometric four-year average Market Value return (net of fees). It is possible that over time this technique will produce an insignificant bias above or below Market Value of Assets.
30 Years (as of 10/01/2014 valuation).
See table on following page (1201). It is assumed that 75% of disablements and active Member deaths are service related. This assumption is deemed reasonable based on plan provisions.
RP-2000 Table with no projection (Disabled lives set forward 5 years). We feel this assumption sufficiently accommodates mortality improvements.7.75% per year compounded annually, net of investment expenses. This is supported by the target asset class allocation of the trust and the expected long-term return by asset class.Earlier of 1) Age 52 and 25 years of service or 2) age 55 and 10 years of service. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year. This assumption is deemed reasonable based on plan provisions.It is assumed that Members who are eligible for Early Retirement (age 50) will retire at the rate of 5% per year. This assumption is deemed reasonable based on plan provisions.
6.25% per year until the assumed Retirement age; see table below. Projected salary at retirement is increased 20% to account for non-regular pay.
See table on following page (1304). This assumption is deemed reasonable based on plan provisions.
Up to 5.0% annually. Assumption is limited by historical 10-year payroll growth. (3.00% for 2015 val; 3.60% for 2014).
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Termination and Disability Rate Table:
Age
% Becoming Disabled During
the Year
% Terminating During the
Year20 0.03% 12.4%30 0.04% 10.5%40 0.07% 5.7%50 0.18% 1.5%
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09/30/2017 09/30/2016 09/30/2015 09/30/2014 09/30/2013Annual Money-Weighted Rate of ReturnNet of Investment Expense 16.06% 11.55% -6.14% 12.85% 8.46%
SCHEDULE OF INVESTMENT RETURNSLast 10 Fiscal Years
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General Information about the Pension Plan
Plan Description
Plan Membership as of October 1, 2016:
Inactive Plan Members or Beneficiaries Currently Receiving Benefits 14 Inactive Plan Members Entitled to But Not Yet Receiving Benefits 5 Active Plan Members 36
55
Benefits Provided
Normal Retirement:
Early Retirement:
Vesting:
Eligibility: Service Incurred: Covered from Date of Employment.Non-Service Incurred: 10 years of Credited Service.
NOTES TO THE FINANCIAL STATEMENTS(For the Year Ended September 30, 2018)
Disability:
Vested: Monthly accrued benefit payable to designated beneficiary for 10 years at Member's Normal or Early Retirement Date.Non-Vested: Refund of accumulated contributions without interest.
ContributionsMember Contributions: 7.0% of Salary.District and State Contributions: Remaining amount required in order to fund to actuarial soundness. District contributions shall not
The Plan provides retirement, termination, disability and death benefits.
Date:Earlier of: 1) Age 50 and 25 years of Credited Service, or 2) age 55 and 10 years of Credited Service.
Share Plan:Funded Status: Not currently funded.
Benefit: Accrued benefit, reduced 3% per year.Eligibility: Age 50 and 10 Years of Credited Service.
Benefit: Benefit accrued to date of disability but not less than 42% of Average Final Compensation for service-incurred disability, and 30% of Average Final Compensation for non-service-incurred disability.Death Benefits:
Schedule: Members hired before October 1, 2014: 100% after seven (7) years of Credited Service.
Supplemental Benefit:$10 for each year of Credited Service. Commencing immediately after Retirement and ceasing at the earlier of death or age 65.
Members hired on or after October 1, 2014: 100% after ten (10) years of Credited Service.
Benefit: 3.0% of Average Final Compensation times Credited Service.
The Ocean City-Wright Fire Control District Firefighters' Pension Trust Fund is a single-employer defined benefit pension plan administered by a Board of Trustees which acts as the administrator of the Plan. The Board consists of 5 Trustees, 2 of whom shall be legal residents of the District who are appointed by the District Board of Fire Commissioners, 2 of whom are Members of the Plan who are elected by a majority of the Firefighters who are Members of the Plan and a fifth Trustee who is chosen by a majority of the first 4 Trustees.Each person employed by the District Fire Department, except those who opt out of the Plan, as a full-time Firefighter, except for those who elect to opt out of the Plan, becomes a member of the Plan as a condition of his employment. All Firefighters are therefore eligible for plan benefits as provided for in the plan document and by applicable law.
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Net Pension Liability
The measurement date is September 30, 2017.The measurement period for the pension expense was October 1, 2016 to September 30, 2017.The reporting period is October 1, 2017 through September 30, 2018.
The Sponsor's Net Pension Liability was measured as of September 30, 2017.The Total Pension Liability used to calculate the Net Pension Liability was determined as of that date.
Actuarial Assumptions:
Inflation 2.50%Salary Increases Service basedDiscount Rate 7.50%Investment Rate of Return 7.50%
Asset Class Target AllocationLong Term Expected Real Rate of Return
Domestic Equity 60% 7.5%Broad Market Fixed Income 40% 2.5%Total 100%
Mortality Rate Healthy Inactive Lives:
The Total Pension Liability was determined by an actuarial valuation as of October 1, 2016 updated to September 30, 2017 using the following actuarial assumptions:
The most recent actuarial experience study used to review the other significant assumptions was dated June 1, 2017.
The Long-Term Expected Rate of Return on Pension Plan investments can be determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of Pension Plan investment expenses and inflation) are developed for each major asset class.
These ranges are combined to produce the Long-Term Expected Rate of Return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of geometric real rates of return for each major asset class included in the Pension Plan's target asset allocation as of September 30, 2017 are summarized in the following table:
Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale.Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale.
For 2017 the inflation rate assumption of the investment advisor was 2.50%.
Female: RP 2000 Generational, 100% Annuitant White Collar, Scale BB.Male: RP 2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB.
Mortality Rate Disabled Lives:
Mortality Rate Healthy Active Lives:Female: RP2000 Generational, 100% Combined Healthy (previously Annuitant) White Collar, Scale BB.Male: RP2000 Generational, 10% Combined Healthy (previously Annuitant) White Collar / 90% Combined Healthy Blue Collar, Scale BB.
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Discount Rate:The Discount Rate used to measure the Total Pension Liability was 7.50 percent.The projection of cash flows used to determine the Discount Rate assumed that Plan Member contributions will be made at the current contribution rate and that Sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the Member rate. Based on those assumptions, the Pension Plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the Long-Term Expected Rate of Return on Pension Plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability.
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Total Pension Liability
Plan Fiduciary Net Position
Net Pension Liability
(a) (b) (a)-(b)Reporting Period Ending September 30, 2017 $ 18,080,691 $ 9,537,261 $ 8,543,430 Changes for a Year:
Service Cost 372,747 - 372,747 Interest 1,405,503 - 1,405,503 Differences between Expected and Actual Experience 219,507 - 219,507 Changes of assumptions 437,658 - 437,658 Changes of benefit terms 101,759 - 101,759 Contributions - Employer - 869,937 (869,937)Contributions - State - 281,985 (281,985)Contributions - Employee - 112,767 (112,767)Net Investment Income - 1,546,972 (1,546,972)Benefit Payments, including Refunds of Employee Contributions (839,338) (839,338) - Administrative Expense - (68,321) 68,321
Net Changes 1,697,836 1,904,002 (206,166)Reporting Period Ending September 30, 2018 $ 19,778,527 $ 11,441,263 $ 8,337,264
Sensitivity of the Net Pension Liability to changes in the Discount Rate.
1% Decrease Current Discount
Rate 1% Increase 6.50% 7.50% 8.50%
Sponsor's Net Pension Liability 10,838,809$ 8,337,264$ 6,263,954$
Pension Plan Fiduciary Net Position. Detailed information about the pension Plan's Fiduciary Net Position is available in a separately issued Plan financial report.
Increase (Decrease)
CHANGES IN NET PENSION LIABILITY
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For the year ended September 30, 2017, the Sponsor has recognized a Pension Expense of $1,012,670.
Deferred Outflows of Resources
Deferred Inflows of Resources
Differences between Expected and Actual Experience - 353,581 Changes of assumptions 301,939 - Net difference between Projected and Actual Earnings on Pension Plan investments 318,648 - Employer and State contributions subsequent to the measurement date 1,151,922 Total 1,772,509$ 353,581$
OUTFLOWYear ended September 30:2018 (86,261)$ 103,849$ 77,973$ 2019 (49,680)$ (54,951)$ 77,975$ 2020 (49,676)$ (54,952)$ 146,147$ 2021 (49,676)$ 13,220$ (86,941)$ 2022 (49,676)$ (219,868)$ 51,852$ Thereafter (68,612)$ 531,350$ -$
FINAL PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS
On September 30, 2017, the Sponsor reported Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions from the following sources:
The outcome of the Deferred Outflows of resources related to pensions resulting from Employer and State contributions subsequent to the measurement date has been recognized as a reduction of the Net Pension Liability in the year ended September 30, 2017.Other amounts reported as Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions will be recognized in Pension Expense as follows:
FISCAL YEAR SEPTEMBER 30, 2017
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For the year ended September 30, 2018, the Sponsor will recognize a Pension Expense of $1,111,289.
Deferred Outflows of Resources
Deferred Inflows of Resources
Differences between Expected and Actual Experience 182,925 267,319 Changes of assumptions 606,267 - Net difference between Projected and Actual Earnings on Pension Plan investments - 420,400 Employer and State contributions subsequent to the measurement date TBDTotal TBD 687,719$
OUTFLOW INFLOWYear ended September 30:2019 (49,676)$ 133,331$ (54,952)$ 28,703$ 2020 (49,676)$ 133,331$ 13,220$ 96,875$ 2021 (49,676)$ 133,331$ (219,868)$ (136,213)$ 2022 28,049$ 133,331$ (158,800)$ 2,580$ 2023 36,585$ 72,943$ -$ 109,528$ Thereafter -$ -$ -$ -$
PRELIMINARY PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS
On September 30, 2018, the Sponsor reported Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions from the following sources:
Other amounts reported as Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions will be recognized in Pension Expense as follows:
The outcome of the Deferred Outflows of resources related to pensions resulting from Employer and State contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the year ended September 30, 2018.
FISCAL YEAR SEPTEMBER 30, 2018
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Reporting Period Ending 09/30/2018 09/30/2017 09/30/2016Measurement Date 09/30/2017 09/30/2016 09/30/2015Total Pension LiabilityService Cost 372,747 356,559 324,974 Interest 1,405,503 1,305,113 1,235,278 Change in Excess State Money - - - Changes of benefit terms 101,759 - (358,128) Differences between Expected and Actual Experience 219,507 (51,218) (466,348) Changes of assumptions 437,658 362,326 - Benefit Payments, including Refunds of Employee Contributions (839,338) (751,402) (574,097) Net Change in Total Pension Liability 1,697,836 1,221,378 161,679 Total Pension Liability - Beginning 18,080,691 16,859,313 16,697,634 Total Pension Liability - Ending (a) $ 19,778,527 $ 18,080,691 $ 16,859,313
Plan Fiduciary Net PositionContributions - Employer 869,937 767,020 751,628 Contributions - State 281,985 296,666 293,054 Contributions - Employee 112,767 103,249 98,883 Net Investment Income 1,546,972 955,354 (511,711) Benefit Payments, including Refunds of Employee Contributions (839,338) (751,402) (574,097) Administrative Expense (68,321) (26,287) (31,115) Net Change in Plan Fiduciary Net Position 1,904,002 1,344,600 26,642 Plan Fiduciary Net Position - Beginning 9,537,261 8,192,661 8,166,019 Plan Fiduciary Net Position - Ending (b) $ 11,441,263 $ 9,537,261 $ 8,192,661
Net Pension Liability - Ending (a) - (b) 8,337,264$ 8,543,430$ 8,666,652$
Plan Fiduciary Net Position as a percentage of the Total Pension Liability 57.85% 52.75% 48.59%
Covered Employee Payroll¹ 2,255,348$ 2,064,973$ 1,977,651$ Net Pension Liability as a percentage of Covered Employee Payroll 369.67% 413.73% 438.23%
Notes to Schedule:
¹ The Covered Employee Payroll numbers shown are in compliance with GASB 82.
Changes of benefit terms:For measurement date 09/30/2017, the plan was amended as follows:
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOSLast 10 Fiscal Years
For measurement date 09/30/2015, amounts reported as changes of benefit terms were resulted from the Actuarial Impact Statement, effective July 9, 2015. This Statement reflected the change to immediate commencement for the Supplemental Benefit. In addition, the new provisions for Members hired on or after October 1, 2014, as reflected in the No Impact Letter dated December 10, 2014. Members hired on or after October 1, 2014 will be 100% vested after ten years of service.
• Amending the requirements for Normal Retirement eligibility from age 52 with completion of 25 years of service to age 50 with completion of 25 years of service. Please note the alternative of age 55 with completion of 10 years of service will remain unchanged.• Increasing the member contribution rate from 5.00% to 7.00% of Salary.
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Changes of assumptions:For measurement date 09/30/2017, amounts reported as changes of assumptions resulted from the following:
• The investment return assumption was reduced from 7.75% to 7.50%.• The salary increase assumption was changed from a flat 6.25% rate to a service-based table of rates.
For measurement date 09/30/2016, as a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for special risk employees.The inflation assumption rate was lowered from 3.00% to 2.50%, matching the long-term inflation assumption utilized by the Plan's investment consultant.
• As mandated by Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed from the rates used by the Florida Retirement System actuary in the July 1, 2015 actuarial valuation to the rates used in the July 1, 2016 actuarial valuation for special risk lives.
• The assumption that Members eligible for normal retirement at the valuation date will continue working for one additional year was removed.• The assumed termination rates were changed from an age-based table to a service-based table.
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Reporting Period Ending 09/30/2015 09/30/2014Measurement Date 09/30/2014 09/30/2013Total Pension LiabilityService Cost 334,644 310,574 - Interest 1,188,991 1,118,143 - Change in Excess State Money 85,747 - - Changes of benefit terms - - - Differences between Expected and Actual Experience - - - Changes of assumptions - - - Benefit Payments, including Refunds of Employee Contributions (543,077) (534,162) - Net Change in Total Pension Liability 1,066,305 894,555 - Total Pension Liability - Beginning 15,631,329 14,736,774 - Total Pension Liability - Ending (a) $ 16,697,634 $ 15,631,329 $ -
Plan Fiduciary Net PositionContributions - Employer 675,794 751,271 - Contributions - State 271,575 256,100 - Contributions - Employee 98,300 94,763 - Net Investment Income 886,217 515,106 - Benefit Payments, including Refunds of Employee Contributions (543,077) (534,162) - Administrative Expense (16,744) (14,235) - Net Change in Plan Fiduciary Net Position 1,372,065 1,068,843 - Plan Fiduciary Net Position - Beginning 6,793,954 5,725,111 - Plan Fiduciary Net Position - Ending (b) $ 8,166,019 $ 6,793,954 $ -
Net Pension Liability - Ending (a) - (b) 8,531,615$ 8,837,375$ -$
Plan Fiduciary Net Position as a percentage of the Total Pension Liability 48.91% 43.46% #DIV/0!
Covered Employee Payroll¹ 1,965,995$ 1,895,259$ -$ Net Pension Liability as a percentage of Covered Employee Payroll 433.96% 466.29% #DIV/0!
Notes to Schedule:
¹ The Covered Employee Payroll numbers shown are in compliance with GASB 82.
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOSLast 10 Fiscal Years
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09/30/2017 09/30/2016 09/30/2015 09/30/2014 09/30/2013Actuarially Determined Contribution 902,139 830,119 761,399 829,650 756,208 Contributions in relation to the Actuarially Determined Contributions 1,151,922 1,063,686 1,044,682 861,622 756,208 Contribution Deficiency (Excess) $ (249,783) $ (233,567) $ (283,283) $ (31,972) $ -
Covered Employee Payroll¹ 2,255,348$ 2,064,973$ 1,977,651$ 1,965,995$ 1,895,259$ Contributions as a percentage of Covered Employee Payroll 51.08% 51.51% 52.82% 43.83% 39.90%
¹ The Covered Employee Payroll numbers shown are in compliance with GASB 82.
Notes to Schedule
Valuation Date: 10/01/2015
Methods and assumptions used to determine contribution rates:
Funding Method:Amortization Method:Remaining Amortization Period:Mortality:
Interest Rate:
Retirement Age:
Early Retirement:
Disability Rates:
Termination Rates:
Salary Increases:
Payroll Growth:
Actuarial Asset Method:
SCHEDULE OF CONTRIBUTIONSLast 10 Fiscal Years
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported.
See table on following page (1304). This assumption is deemed reasonable based on plan provisions.6.25% per year until the assumed Retirement age; see table below. Projected salary at retirement is increased 20% to account for non-regular pay.
Each year, the prior Actuarial Value of Assets is brought forward utilizing the historical geometric four-year average Market Value return (net of fees). It is possible that over time this technique will produce an insignificant bias above or below Market Value of Assets.
30 Years (as of 10/01/2014 valuation).
Entry Age Normal Actuarial Cost Method.Level Percentage of Pay, Closed.
RP-2000 Table with no projection (Disabled lives set forward 5 years). We feel this assumption sufficiently accommodates mortality improvements.7.75% per year compounded annually, net of investment expenses. This is supported by the target asset class allocation of the trust and the expected long-term return by asset class.Earlier of 1) Age 52 and 25 years of service or 2) age 55 and 10 years of service. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year. This assumption is deemed reasonable based on plan provisions.It is assumed that Members who are eligible for Early Retirement (age 50) will retire at the rate of 5% per year. This assumption is deemed reasonable based on plan provisions.See table on following page (1201). It is assumed that 75% of disablements and active Member deaths are service related. This assumption is deemed reasonable based on plan provisions.
Up to 5.0% annually. Assumption is limited by historical 10-year payroll growth. (3.00% for 2015 val; 3.60% for 2014).
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Termination and Disability Rate Table:
Age
% Becoming Disabled During
the Year
% Terminating During the
Year20 0.03% 12.4%30 0.04% 10.5%40 0.07% 5.7%50 0.18% 1.5%
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Net Pension Liability
Deferred Inflows
Deferred Outflows
Pension Expense
Beginning balance $ 8,666,652 $ 593,140 $ 1,996,038 $ -
Employer and State Contributions made after 09/30/2016 - - 1,151,922 -
Total Pension Liability Factors:Service Cost 356,559 - - 356,559 Interest 1,305,113 - - 1,305,113 Changes in benefit terms - - - - Differences between Expected and Actual Experience with regard to economic or demographic assumptions (51,218) 51,218 - - Current year amortization of experience difference - (86,261) - (86,261) Change in assumptions about future economic or demographic factors or other inputs 362,326 - 362,326 - Current year amortization of change in assumptions - - (60,387) 60,387 Benefit Payments (751,402) - - -
Net change 1,221,378 (35,043) 1,453,861 1,635,798
Plan Fiduciary Net Position:Contributions - Employer 767,020 - (767,020) - Contributions - State 296,666 - (296,666) - Contributions - Employee 103,249 - - (103,249) Projected Net Investment Income 650,015 - - (650,015) Difference between projected and actual earnings on Pension Plan investments 305,339 305,339 - - Current year amortization - (129,239) (233,088) 103,849 Benefit Payments (751,402) - - - Administrative Expenses (26,287) - - 26,287
Net change 1,344,600 176,100 (1,296,774) (623,128)
Ending Balance $ 8,543,430 $ 734,197 $ 2,153,125 $ 1,012,670
FINAL COMPONENTS OF PENSION EXPENSEFISCAL YEAR SEPTEMBER 30, 2017
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Net Pension Liability
Deferred Inflows
Deferred Outflows
Pension Expense
Beginning balance $ 8,543,430 $ 734,197 $ 2,153,125 $ -
Employer and State Contributions made after 09/30/2017 - - TBD* -
Total Pension Liability Factors:Service Cost 372,747 - - 372,747 Interest 1,405,503 - - 1,405,503 Changes in benefit terms 101,759 - - 101,759 Differences between Expected and Actual Experience with regard to economic or demographic assumptions 219,507 - 219,507 - Current year amortization of experience difference - (86,262) (36,582) (49,680) Change in assumptions about future economic or demographic factors or other inputs 437,658 - 437,658 - Current year amortization of change in assumptions - - (133,330) 133,330 Benefit Payments (839,338) - - -
Net change 1,697,836 (86,262) 487,253 1,963,659
Plan Fiduciary Net Position:Contributions - Employer 869,937 - (869,937) - Contributions - State 281,985 - (281,985) - Contributions - Employee 112,767 - - (112,767) Projected Net Investment Income 752,973 - - (752,973) Difference between projected and actual earnings on Pension Plan investments 793,999 793,999 - - Current year amortization - (288,039) (233,088) (54,951) Benefit Payments (839,338) - - - Administrative Expenses (68,321) - - 68,321
Net change 1,904,002 505,960 (1,385,010) (852,370)
Ending Balance $ 8,337,264 $ 1,153,895 TBD $ 1,111,289
PRELIMINARY COMPONENTS OF PENSION EXPENSEFISCAL YEAR SEPTEMBER 30, 2018
*Employer and State Contributions subsequent to the measurement date made after September 30, 2017 but made on or before September 30, 2018 need to be added.
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Increase (Decrease) in Pension Expense Arising from the Recognition of the of Differences Between Projected and Actual Earnings on Pension Plan Investments
Plan Year Ending
Differences Between Projected and Actual
EarningsRecognition
Period (Years) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026Recognitio 3 4 5 6 7 8 9 10 11 12
2014 (340,859)$ 5 (68,172)$ (68,172)$ (68,172)$ -$ -$ -$ -$ -$ -$ -$ 2015 1,165,439$ 5 233,088$ 233,088$ 233,088$ 233,088$ -$ -$ -$ -$ -$ -$ 2016 (305,339)$ 5 (61,067)$ (61,068)$ (61,068)$ (61,068)$ (61,068)$ -$ -$ -$ -$ -$ 2017 (793,999)$ 5 -$ (158,799)$ (158,800)$ (158,800)$ (158,800)$ (158,800)$ -$ -$ -$ -$
Net Increase (Decrease) in Pension Expense 103,849$ (54,951)$ (54,952)$ 13,220$ (219,868)$ (158,800)$ -$ -$ -$ -$
AMORTIZATION SCHEDULE - INVESTMENTS
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Increase (Decrease) in Pension Expense Arising from the Recognition of the Effects of Changes of Assumptions
Plan Year Ending
Changes of Assumptions
Recognition Period (Years) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Recognitio 3 4 5 6 7 8 9 10 11 122016 362,326$ 6 60,387$ 60,387$ 60,388$ 60,388$ 60,388$ 60,388$ -$ -$ -$ -$ 2017 437,658$ 6 -$ 72,943$ 72,943$ 72,943$ 72,943$ 72,943$ 72,943$ -$ -$ -$
Net Increase (Decrease) in Pension Expense 60,387$ 133,330$ 133,331$ 133,331$ 133,331$ 133,331$ 72,943$ -$ -$ -$
AMORTIZATION SCHEDULE - CHANGES OF ASSUMPTIONS
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Increase (Decrease) in Pension Expense Arising from the Recognition of the Effects of Differences between Expected and Actual Experience
Plan Year Ending
Differences Between Expected and Actual
ExperienceRecognition
Period (Years) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026Recognitio 3 4 5 6 7 8 9 10 11 12
2015 (466,348)$ 6 (77,724)$ (77,725)$ (77,725)$ (77,725)$ (77,725)$ -$ -$ -$ -$ -$ 2016 (51,218)$ 6 (8,537)$ (8,537)$ (8,536)$ (8,536)$ (8,536)$ (8,536)$ -$ -$ -$ -$ 2017 219,507$ 6 -$ 36,582$ 36,585$ 36,585$ 36,585$ 36,585$ 36,585$ -$ -$ -$
Net Increase (Decrease) in Pension Expense (86,261)$ (49,680)$ (49,676)$ (49,676)$ (49,676)$ 28,049$ 36,585$ -$ -$ -$
AMORTIZATION SCHEDULE - EXPERIENCE
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