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ENGLEWOOD AREA FIRE CONTROL DISTRICT
FIREFIGHTERS' PENSION TRUST FUND
ACTUARIAL VALUATION
AS OF OCTOBER 1, 2015
CONTRIBUTIONS APPLICABLE TO THE
PLAN/FISCAL YEAR ENDING SEPTEMBER 30, 2017
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 · (239) 433-5500 · Fax (239) 481-0634 · www.foster-foster.com
April 21, 2016
Board of Trustees
Firefighters’ Pension Board
Englewood Area Fire Control District
516 Paul Morris Dr.
Englewood, FL 34223-3960
Re: Englewood Area Fire Control District
Firefighters’ Pension Trust Fund
Dear Board:
We are pleased to present to the Board this report of the annual actuarial valuation of the Englewood Area
Fire Control District Firefighters’ Pension Trust Fund. The 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(s). Please note that this valuation may not
be applicable for any other purposes.
The valuation has 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 valuation, we have relied on personnel, plan design, and asset information supplied by
the Englewood Area Fire Control District, 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 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 Englewood Area Fire Control District, nor does
anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the Englewood Area 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:
Douglas H. Lozen, EA, MAAA
Enrolled Actuary #14-7778
DHL/lke
Enclosures
TABLE OF CONTENTS
Section Title Page
I Introduction
a. Summary of Report 5
b. Contribution Impact of Annual Changes 7
c. Changes Since Prior Valuation 8
d. Requirements of Chapter 112, Part VII, Florida Statutes 9
II Valuation Information
a. Reconciliation of Unfunded Actuarial Accrued Liabilities 14
b. Detailed Actuarial (Gain)/Loss Analysis 16
c. Actuarial Assumptions and Methods 17
d. Valuation Notes 19
e. Partial History of Premium Tax Refunds 20
f. Excess State Monies Reserve 21
III Trust Fund 22
IV Member Statistics
a. Statistical Data 28
b. Age and Service Distribution 29
c. Valuation Participant Reconciliation 30
V Summary of Plan Provisions 31
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 4
SUMMARY OF REPORT
The regular annual actuarial valuation of the Englewood Area Fire Control District Firefighters' Retirement
Pension Trust Fund, performed as of October 1, 2015 has been completed and the results are presented in
this Report. The contribution amounts set forth herein are applicable to the plan/fiscal year ended
September 30, 2017.
The contribution requirements, compared with those developed in the October 1, 2014, actuarial valuation,
are as follows:
Valuation Date
Applicable Plan/Fiscal Yr. End
10/1/2015
9/30/2017
10/1/2014
9/30/2016
Total Required Contribution
% of Total Annual Payroll
63.91% 61.47%
Member Contributions (Est.)
% of Total Annual Payroll 7.00% 7.00%
District and State Required Contribution
% of Total Annual Payroll 56.91% 54.47%
State Contribution ¹
396,874
396,874
% of Total Annual Payroll 13.07% 13.07%
Balance from District ¹
% of Total Annual Payroll 43.84% 41.40%
¹ The District may use up to $396,874 in State Contributions for determining its minimum funding
requirements, based on the traditional interpretation of Chapter 99-1, Florida Statutes. For budgeting
purposes, the required Sponsor Contribution (District and State) is 56.91% of Pensionable Earnings for
the fiscal year ending September 30, 2017. The precise District requirement for the year is this amount,
less actual State Contributions (up to the maximum $396,874).
Please note that there is a District receivable contribution of $300,987 required for the fiscal year ending
September 30, 2015. Our review of the Plan’s Custodial Records show a deposit for this amount was
made in December, 2015.
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 5
Experience in the last twelve months has been more favorable than expected, relative to the Plan’s
actuarial assumptions. The primary sources of favorable experience included a 10.15% investment return
(Actuarial Asset Basis), exceeding the 7.50% assumption, average increase in pensionable compensation
that was less than the assumption by more than 4%, and greater than expected inactive mortality. There
were no material sources of actuarial loss.
In spite of the net actuarial gain for the year, the funding requirement, when expressed as a percentage of
Total Annual Payroll, increased due to a 3.2% decrease in Total Annual Payroll, combined with a
reduction in the payroll growth assumption (utilized for amortization of the Unfunded Actuarial Accrued
Liability). These decreases have the effect of increasing the percentage of payroll funding rate for
payment of the Unfunded Actuarial Accrued Liability.
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:
Douglas H. Lozen, EA, MAAA
By:
Christine M. O’Neal, ASA, EA, MAAA
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 6
(1) Contribution Determined as of October 1, 2014 41.82%
(2) Summary of Contribution Impact by component:
Change in Available State Money 0.0%
Investment Return (Actuarial Asset Basis) -2.1%
Salary Increases -1.2%
Payroll Change 2.9%
Payroll Growth Assumption 2.0%
Change in Administrative Expense 0.7%
New Entrants 0.0%
Active Decrements -0.4%
Inactive Mortality -0.5%
Change in Normal Cost 0.1%
Assumption Change 0.0%
Other 0.5%
Total Change in Contribution 2.02%
(3) Contribution Determined as of October 1, 2015 43.84%
CONTRIBUTION IMPACT OF ANNUAL CHANGES
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 7
CHANGES SINCE PRIOR VALUATION
Plan Changes
There have been no changes in benefits since the prior valuation.
Actuarial Assumption/Method Changes
There were no changes in methods or assumptions since the prior valuation. However, in order to
comply with Part VII of Chapter 112, Florida Statutes, the payroll growth assumption was
lowered from 5.00% per year to 3.58% per year, equal to the actual average increase in payroll
over the past 10 years.
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 8
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
10/1/2015 10/1/2014
A. Participant Data
Number Included
Actives 41 43
Service Retirees 12 11
DROP Retirees 9 10
Beneficiaries 0 1
Disability Retirees 1 1
Terminated Vested 0 1
Total 63 67
Total Annual Payroll $3,036,261 $3,136,647
Payroll Under Assumed Ret. Age 3,036,261 3,136,647
Annual Rate of Payments to:
Service Retirees 636,808 560,568
DROP Retirees 538,802 594,468
Beneficiaries 0 22,968
Disability Retirees 46,272 17,649
Terminated Vested 0 0
B. Assets
Actuarial Value ¹ 22,526,604 19,663,872
Market Value ¹ 22,054,769 21,257,192
C. Liabilities
Present Value of Benefits
Actives
Retirement Benefits 17,082,284 16,822,247
Disability Benefits 128,868 136,587
Death Benefits 153,543 158,116
Vested Benefits 1,113,702 1,128,002
Refund of Contributions 35,306 59,134
Service Retirees 8,396,619 7,378,658
DROP Retirees¹ 8,885,153 9,457,843
Beneficiaries 0 22,224
Disability Retirees 518,274 171,233
Terminated Vested 0 23,837
Excess State Monies Reserve 279,282 187,372
Total 36,593,031 35,545,253
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 9
C. Liabilities - (Continued) 10/1/2015 10/1/2014
Present Value of Future Salaries 22,794,524 25,270,172
Present Value of Future
Member Contributions 1,595,617 1,768,912
Normal Cost (Retirement) 688,544 706,212
Normal Cost (Disability) 12,291 12,954
Normal Cost (Death) 8,867 9,085
Normal Cost (Vesting) 70,931 69,555
Normal Cost (Refunds) 12,111 16,798
Total Normal Cost 792,744 814,604
Present Value of Future
Normal Costs 5,589,024 6,171,873
Accrued Liability (Retirement) 12,113,281 11,346,280
Accrued Liability (Disability) 50,107 48,117
Accrued Liability (Death) 94,012 92,154
Accrued Liability (Vesting) 656,239 626,784
Accrued Liability (Refunds) 11,040 18,878
Accrued Liability (Inactives) ¹ 17,800,046 17,053,795
Excess State Monies Reserve 279,282 187,372
Total Actuarial Accrued Liability 31,004,007 29,373,380
Unfunded Actuarial Accrued
Liability (UAAL) 8,477,403 9,709,508
Funded Ratio (AVA / AL) 72.7% 66.9%
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactives ¹ 17,800,046 17,053,795
Actives 5,478,416 4,754,329
Member Contributions 1,948,771 1,835,717
Total 25,227,233 23,643,841
Non-vested Accrued Benefits 2,372,143 2,481,969
Total Present Value Accrued Benefits 27,599,376 26,125,810
Funded Ratio (MVA / PVAB) 79.9% 81.4%
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments 0
Assumption Changes 0
New Accrued Benefits 463,038
Benefits Paid (914,610)
Interest 1,925,138
Other 0
Total 1,473,566
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 10
Valuation Date 10/1/2015 10/1/2014
Applicable to Fiscal Year Ending 9/30/2017 9/30/2016
E. Pension Cost
Normal Cost (with interest) $822,472 $845,152
% of Total Annual Payroll ² 27.09 26.94
Administrative Expenses (with interest) 53,516 31,769
% of Total Annual Payroll ² 1.76 1.01
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 25 years
(as of 10/1/2015, with interest) 1,064,553 1,051,545
% of Total Annual Payroll ² 35.06 33.52
Total Required Contribution 1,940,541 1,928,466
% of Total Annual Payroll ² 63.91 61.47
Expected Member Contributions 212,538 219,565
% of Total Annual Payroll ² 7.00 7.00
Expected District and State Contribution 1,728,003 1,708,901
% of Total Annual Payroll ² 56.91 54.47
F. Past Contributions
Plan Years Ending: 9/30/2015
Total Required Contribution 1,699,737
District and State Requirement 1,494,914
Actual Contributions Made:
Members (excluding buyback) 204,823
District 1,098,040
State 396,874 ³
Total 1,699,737
G. Net Actuarial (Gain)/Loss (1,096,876)
¹ The asset values and liabilities for DROP Members include accumulated DROP
Balances as of 9/30/2015 and 9/30/2014.
² Contributions developed as of 10/1/2015 are expressed as a percentage of total
annual payroll at 10/1/2015 of $3,036,261.
³ Reflects traditional interpretation of Chapter 99-1, Florida Statutes.
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 11
H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability as of:
Projected Unfunded
Year Accrued Liability
2015 8,477,403
2016 8,010,177
2017 7,468,425
2023 5,449,127
2029 1,704,031
2040 0
I. (i) 3 Year Comparison of Actual and Assumed Salary Increases
Actual Assumed
Year Ended 9/30/2015 1.65% 6.00%
Year Ended 9/30/2014 1.28% 6.00%
Year Ended 9/30/2013 1.57% 6.00%
(ii) 3 Year Comparison of Investment Return on Actuarial Value
Actual Assumed
Year Ended 9/30/2015 10.15% 7.50%
Year Ended 9/30/2014 10.22% 7.50%
Year Ended 9/30/2013 10.07% 7.50%
(iii) Average Annual Payroll Growth
(a) Payroll as of: 10/1/2015 $3,036,261
10/1/2005 2,136,591
(b) Total Increase 42.11%
(c) Number of Years 10.00
(d) Average Annual Rate 3.58%
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 12
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.
_____________________________
Douglas H. Lozen, EA, MAAA
Enrolled Actuary #14-7778
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
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 13
RECONCILIATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITIES
(1) Unfunded Actuarial Accrued Liability as of October 1, 2014 $9,709,508
(2) Sponsor Normal Cost developed as of October 1, 2014 595,039
(3) Expected administrative expenses for the year ended September 30, 2015 30,621
(4) Expected interest on (1), (2) and (3) 773,989
(5) Sponsor contributions to the System during the year ended September 30, 2015 1,494,914
(6) Expected interest on (5) 39,964
(7) Expected Unfunded Actuarial Accrued Liability as of
September 30, 2015 (1)+(2)+(3)+(4)-(5)-(6) 9,574,279
(8) Change to UAAL due to Assumption Change 0
(9) Change to UAAL due to Actuarial (Gain)/Loss (1,096,876)
(10) Unfunded Accrued Liability as of October 1, 2015 8,477,403
Type of Date Years 10/1/2015 Amortization
Base Established Remaining Amount Amount
12/1/1995 20 $291,328 $20,263
10/1/1998 13 65,141 6,202
10/1/1999 14 99,293 8,929
10/1/2000 15 (46,983) (4,011)
method change 10/1/2004 19 1,204,700 86,769
prior losses 10/1/2004 13 1,074,646 102,313
benefit change 10/1/2004 19 1,973,675 142,155
actuarial loss 10/1/2005 13 570,862 54,350
actuarial loss 10/1/2006 13 605,252 57,624
actuarial loss 10/1/2007 13 439,736 41,866
actuarial loss 10/1/2008 3 485,092 167,740
method change 10/1/2008 13 (169,502) (16,138)
benefit change 10/1/2008 23 2,835,783 180,011
actuarial loss 10/1/2009 4 746,779 197,223
actuarial loss 10/1/2010 5 653,431 140,571
assumption change 10/1/2010 15 2,188,105 186,778
benefit change 10/1/2010 25 (3,274,720) (197,403)
actuarial loss 10/1/2011 6 528,631 96,485
actuarial gain 10/1/2012 7 (150,525) (23,972)
Englewood Area 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, 2014 $9,709,508
(2) Sponsor Normal Cost developed as of October 1, 2014 595,039
(3) Expected administrative expenses for the year ended September 30, 2015 30,621
(4) Expected interest on (1), (2) and (3) 773,989
(5) Sponsor contributions to the System during the year ended September 30, 2015 1,494,914
(6) Expected interest on (5) 39,964
(7) Expected Unfunded Actuarial Accrued Liability as of
September 30, 2015 (1)+(2)+(3)+(4)-(5)-(6) 9,574,279
(8) Change to UAAL due to Assumption Change 0
(9) Change to UAAL due to Actuarial (Gain)/Loss (1,096,876)
(10) Unfunded Accrued Liability as of October 1, 2015 8,477,403
Type of Date Years 10/1/2015 Amortization
Base Established Remaining Amount Amount
actuarial gain 10/1/2013 8 (326,769) (46,349)
software change 10/1/2013 18 340,589 25,471
actuarial gain 10/1/2014 9 (560,265) (71,893)
actuarial gain 10/1/2015 10 (1,096,876) (128,909)
8,477,403 1,026,075
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 15
(1) Unfunded Actuarial Accrued Liability (UAAL) as of October 1, 2014 $9,709,508
(2) Expected UAAL as of October 1, 2015 9,574,279
(3) Summary of Actuarial (Gain)/Loss, by component:
Investment Return (Actuarial Asset Basis) (531,532)
Salary Increases (307,396)
Active Decrements (95,861)
Inactive Mortality (133,578)
Other (28,509)
Increase in UAAL due to (Gain)/Loss (1,096,876)
Assumption Changes 0
(4) Actual UAAL as of October 1, 2015 $8,477,403
DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 16
ACTUARIAL ASSUMPTIONS AND METHODS
Mortality Rate RP 2000 Combined Healthy Mortality Table,
Sex Distinct. Disabled lives are set forward 5
years.
We believe this assumption sufficiently
accommodates future mortality improvements.
Interest Rate 7.5% per year compounded annually, net of
investment-related expenses. This assumption is
supported by the target asset allocation of the
trust and the expected long-term return by asset
class.
Retirement Age Earlier age 55 and 10 years of service or 23
years of service, regardless of age. Also, any
member who has reached Normal Retirement is
assumed to continue employment for one
additional year.
Early Retirement Commencing with eligibility for Early
Retirement Age (Age 50 with 10 years of
service), members are assumed to retire with an
immediate subsidized benefit at the rate of 5%
per year.
Non-Investment Expenses $51,582 per year, based on actual
Administrative Expenses incurred during the
prior fiscal year.
Cost-of-Living Adjustment 1.7% beginning one year after retirement, for
Normal and Early Retirees.
Payroll Growth 3.58% per year (5.00% utilized for the 10/1/14
valuation). This assumption is limited by State
Statute to not exceed the ten-year average
payroll growth determined as of the valuation
date.
Funding Method Entry Age Normal Actuarial Cost Method.
Asset Smoothing Methodology The Actuarial Value of Assets is brought
forward using the historical four-year geometric
average of Market Value Returns (net-of-fees).
Over time, this may result in an insignificant
bias that is above or below the Market Value of
Assets.
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 17
Disability Rate See table below (1201). 75% of Disability
Retirements are assumed to be Line-of-Duty
related. This assumption is consistent with rates
utilized by other Florida Municipal Defined
Benefit Plans for Firefighters.
Termination Rate See table below (1302). This assumption is
consistent with rates utilized by other Florida
Municipal Defined Benefit Plans for
Firefighters.
Salary Increases 6.0% per year until the assumed retirement
age; see table below. This assumption is
consistent with the Plan’s long-term experience.
% Terminating % Becoming Disabled Current Salary as %
Age During the Year During the Year of Salary at age 53
20 6.0% 0.03% 14.6%
30 5.0 0.04 26.2
40 2.6 0.07 46.9
50 0.8 0.18 84.0
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 18
VALUATION NOTES
Total Annual Payroll is the projected annual rate of pay as of 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.
Normal (Current Year's) Cost is determined for each participant as the present value of future benefits,
determined as of the Member’s entry age, amortized as a level percentage of compensation over the
anticipated number of years of participation, determined as of the entry age.
Individual Entry Age Normal Actuarial Cost Method (Level Percent of Compensation) is the method used
to determine required contributions under the Plan. The use of this method involves the systematic
funding of the Normal Cost (described above) and the Unfunded Accrued (Past Service) Liability.
The actuarial accrued liability for active participants is the difference between the present value of
future benefits and the present value of future Normal Costs. The actuarial accrued liability for
inactive participants is the present value of future benefits.
Unfunded Actuarial Accrued Liability (UAAL) is the difference between the actuarial accrued liability
(described above) and the actuarial value of assets. Under the Entry Age Normal Actuarial Cost
Method, an actuarial gain or loss, based on actual versus expected UAAL, is determined in
conjunction with each valuation of the plan.
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.
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 19
PARTIAL HISTORY OF PREMIUM TAX REFUNDS
Received During Increase from
Fiscal Year Amount Previous Year
1996 20,929.32 _____%
1997 45,459.89 117.2%
1998 51,446.44 13.2%
1999 50,617.76 -1.6%
2000 93,178.26 84.1%
2001 107,623.20 15.5%
2002 122,563.49 13.9%
2003 144,260.17 17.7%
2004 175,152.10 21.4%
2005 226,110.94 29.1%
2006 266,526.13 17.9%
2007 361,092.49 35.5%
2008 481,783.20 33.4%
2009 448,435.76 -6.9%
2010 418,639.65 -6.6%
2011 406,217.60 -3.0%
2012 457,151.32 12.5%
2013 486,198.18 6.4%
2014 434,645.78 -10.6%
2015 488,784.67 12.5%
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 20
EXCESS STATE MONIES RESERVE
Actual Applicable Excess State Actual Applicable Excess State
State Contribution "Frozen" Amount Monies Reserve State Contribution "Frozen" Amount Monies Reserve
1998 $51,446.44 $51,446.44 $0.00 N/A N/A N/A
1999 50,617.76 51,446.44 0.00 0.00 0.00 0.00
2000 93,178.26 110,382.44 0.00 0.00 0.00 0.00
2001 100,041.84 102,801.08 0.00 7,581.36 7,581.36 0.00
2002 111,362.82 110,382.44 980.38 11,200.67 0.00 11,200.67
2003 117,640.62 110,382.44 7,258.18 26,619.55 0.00 26,619.55
2004 125,827.11 110,382.44 15,444.67 49,324.99 0.00 49,324.99
2005 150,544.04 183,320.54 0.00 75,566.90 75,566.90 0.00
2006 179,579.66 171,940.97 7,638.69 86,946.47 86,946.47 0.00
2007 253,331.36 151,126.31 102,205.05 107,761.13 107,761.13 0.00
2008 266,026.97 43,131.21 222,895.76 215,756.23 215,756.23 0.00
2009 239,627.15 268,749.83 0.00 208,808.61 208,808.61 0.00
2010 291,004.87 349,923.66 0.00 127,634.78 127,634.78 0.00
2011 299,234.97 370,575.81 0.00 106,982.63 106,982.63 0.00
2012 340,652.09 280,375.21 60,276.88 116,499.23 116,499.23 0.00
2013 349,953.63 260,629.89 89,323.74 136,244.55 136,244.55 0.00
2014 320,569.17 282,797.83 37,771.34 114,076.61 114,076.61 0.00
2015 337,917.73 246,007.50 91,910.23 150,866.94 150,866.94 0.00
635,704.92 87,145.21
Accumulated Regular Excess 635,704.92
Accumulated Special Excess 87,145.21
Less Excess Used in Funding
Ordinance No. 05/04-1039 (110,828.44)
Less Excess Used in Funding
Ordinance No. 09/04-1223A (332,739.50)
Equals Current State Monies Reserve $279,282.19
Regular Distribution Special Distribution
Firefighters' Distribution
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 21
ASSETS COST VALUE MARKET VALUE
Cash and Cash Equivalents:
Short Term Investments 346,853.50 346,853.50
Total Cash and Equivalents 346,853.50 346,853.50
Receivables:
District Contributions 276,323.89 276,323.89
Additional District Contributions 24,663.38 24,663.38
State Contributions 337,917.73 337,917.73
Investment Income 58,527.10 58,527.10
Total Receivable 697,432.10 697,432.10
Investments:
U. S. Bonds and Bills 680,537.01 684,409.80
Federal Agency Guaranteed Securities 1,498,670.00 1,502,111.84
Corporate Bonds 3,427,975.45 3,249,559.11
Stocks 8,798,077.11 10,030,407.79
Mutual Funds:
Fixed Income 993,053.95 866,635.37
Equity 2,018,039.90 1,857,090.75
Pooled/Common/Commingled Funds:
Real Estate 2,626,086.23 2,846,536.98
Total Investments 20,042,439.65 21,036,751.64
Total Assets 21,086,725.25 22,081,037.24
LIABILITIES
Payables:
Investment Expenses 24,005.21 24,005.21
Administrative Expenses 2,263.36 2,263.36
Total Liabilities 26,268.57 26,268.57
NET POSITION RESTRICTED FOR PENSIONS 21,060,456.68 22,054,768.67
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2015
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STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Market Value Basis
ADDITIONS
Contributions:
Member 204,822.88
District 1,098,039.98
State 488,784.67
Total Contributions 1,791,647.53
Investment Income:
Net Realized Gain (Loss) 399,764.44
Unrealized Gain (Loss) (905,522.89)
Net Increase in Fair Value of Investments (505,758.45)
Interest & Dividends 640,379.33
Less Investment Expense¹ (162,499.23)
Net Investment Income (27,878.35)
Total Additions 1,763,769.18
DEDUCTIONS
Distributions to Members:
Benefit Payments 657,097.52
Lump Sum DROP Distributions 206,330.77
Refunds of Member Contributions 51,181.38
Total Distributions 914,609.67
Administrative Expense 51,582.35
Total Deductions 966,192.02
Net Increase in Net Position 797,577.16
NET POSITION RESTRICTED FOR PENSIONS
Beginning of the Year 21,257,191.51
End of the Year 22,054,768.67
¹Investment related expenses include investment advisory, custodial and performance monitoring fees.
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ACTUARIAL ASSET VALUATION
SEPTEMBER 30, 2015
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 Return*
09/30/2012 17.90%
09/30/2013 12.38%
09/30/2014 11.24%
09/30/2015 -0.13%
Annualized Rate of Return for prior four (4) years: 10.15%
(A) 10/01/2014 Actuarial Assets: $19,663,872.32
(I) Net Investment Income:
1. Interest and Dividends 640,379.33
2. Realized Gains (Losses) 399,764.44
3. Change in Actuarial Value 1,159,632.08
4. Investment Related Expenses (162,499.23)
Total 2,037,276.62
(B) 10/01/2015 Actuarial Assets: $22,526,604.45
Actuarial Asset Rate of Return = 2I/(A+B-I): 10.15%
10/01/2015 Limited Actuarial Assets: $22,526,604.45
10/01/2015 Market Value of Assets: $22,054,768.67
Actuarial Gain/(Loss) due to Investment Return (Actuarial Asset Basis) $531,531.61
*Market Value Basis, net of investment related expenses.
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 24
SEPTEMBER 30, 2015
Actuarial Asset Basis
REVENUES
Contributions:
Member 204,822.88
District 1,098,039.98
State 488,784.67
Total Contributions 1,791,647.53
Earnings from Investments:
Interest & Dividends 640,379.33
Net Realized Gain (Loss) 399,764.44
Change in Actuarial Value 1,159,632.08
Total Earnings and Investment Gains 2,199,775.85
EXPENDITURES
Distributions to Members:
Benefit Payments 657,097.52
Lump Sum DROP Distributions 206,330.77
Refunds of Member Contributions 51,181.38
Total Distributions 914,609.67
Expenses:
Investment related¹ 162,499.23
Administrative 51,582.35
Total Expenses 214,081.58
Change in Net Assets for the Year 2,862,732.13
Net Assets Beginning of the Year 19,663,872.32
Net Assets End of the Year² 22,526,604.45
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
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 25
Beginning of the Year Balance 1,058,427.42
Plus Additions 572,450.44
Investment Return Earned 36,128.47
Less Distributions (206,330.77)
End of the Year Balance 1,460,675.56
DEFERRED RETIREMENT OPTION PLAN ACTIVITY
October 1, 2014 to September 30, 2015
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(1) Total Required Contribution Rate 58.09%
(2) Pensionable Payroll Derived from Member Contributions $2,926,041.14
(3) Total Required Contribution (1) x (2) 1,699,737.30
(4) Less Actual Member Contributions (204,822.88)
(5) Less Allowable State Contribution (396,874.44)
(6) Equals Required District Contribution for Fiscal 2015 1,098,039.98
(7) Less 2014 Prepaid Contribution 0.00
(8) Less Actual District Contributions (797,052.71)
(9) Equals District's Shortfall/(Prepaid) Contribution as of $300,987.27
September 30, 2015
RECONCILIATION OF DISTRICT'S SHORTFALL/(PREPAID) CONTRIBUTION
FOR THE FISCAL YEAR ENDED (FYE) SEPTEMBER 30, 2015
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STATISTICAL DATA ¹
10/1/2012 10/1/2013 10/1/2014 10/1/2015
Actives
Number 51 47 43 41
Average Current Age 40.0 40.2 40.1 40.5
Average Age at Employment 28.8 28.9 28.4 28.3
Average Past Service 11.2 11.3 11.7 12.2
Average Annual Salary $72,083 $72,396 $72,945 $74,055
Service Retirees
Number 10 11 11 12
Average Current Age 54.3 54.3 55.3 56.1
Average Annual Benefit $49,066 $50,091 $50,961 $53,067
DROP Retirees
Number 4 7 10 9
Average Current Age 51.6 51.5 52.6 53.7
Average Annual Benefit $67,599 $61,420 $59,447 $59,867
Beneficiaries ²
Number 1 1 1 0
Average Current Age N/A N/A N/A N/A
Average Annual Benefit $22,584 $22,968 $22,968 N/A
Disability Retirees
Number 2 2 1 1
Average Current Age 65.5 66.5 58.4 51.4
Average Annual Benefit $17,212 $17,212 $17,649 $46,272
Terminated Vested ³
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
¹ Prior to 10/1/2015, averages were salary weighted.
² Beneficary payment based on remainder of 120 payment guarantee.
³ Excludes non-vested terminated participants due only a refund of Member Contributions.
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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 0 0 0 1 0 0 0 0 0 0 0 1
25 - 29 0 0 0 0 0 1 0 0 0 0 0 1
30 - 34 0 0 0 0 1 2 4 0 0 0 0 7
35 - 39 0 0 0 0 0 6 5 1 0 0 0 12
40 - 44 0 0 0 0 0 2 2 1 0 0 0 5
45 - 49 0 0 0 0 0 1 3 4 2 0 0 10
50 - 54 0 0 0 0 0 2 1 1 1 0 0 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 0 0 0 1 1 14 15 7 3 0 0 41
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VALUATION PARTICIPANT RECONCILIATION
1. Active lives
a. Number in prior valuation 10/1/2014 43
b. Terminations
i. Vested (partial or full) with deferred benefits 0
ii. Non-vested or full lump sum distribution received 0
c. Deaths
i. Beneficiary receiving benefits 0
ii. No future benefits payable (1)
d. Disabled (1)
e. Retired 0
f. DROP 0
g. Continuing participants 41
h. New entrants 0
i. Total active life participants in valuation 41
2. Non-Active lives (including beneficiaries receiving benefits)
Service
Retirees,
Vested Receiving Receiving
Receiving DROP Death Disability Vested
Benefits Benefits Benefits Benefits Deferred Total
a. Number prior valuation 11 10 1 1 1 24
Retired 0 (1) 0 0 0 (1)
DROP 1 0 0 0 0 1
Vested Deferred 0 0 0 0 0 0
Death, With Survivor 0 0 0 0 0 0
Death, No Survivor 0 0 0 (1) 0 (1)
Disabled 0 0 0 1 0 1
Refund of Contributions 0 0 0 0 (1) (1)
Rehires 0 0 0 0 0 0
Expired Annuities 0 0 (1) 0 0 (1)
Data Corrections 0 0 0 0 0 0
b. Number current valuation 12 9 0 1 0 22
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SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 2013 – 600)
Latest Amendment Date July 17, 2013.
Eligibility Full-time employees who are classified as full-
time Firefighters shall participate in the System
as a condition of employment.
Credited Service Total years and fractional parts of years of
employment with the District as a Firefighter.
Salary Base pay plus longevity pay and tax
exempt/deferred items.
Average Final Compensation (AFC) Average Salary for the highest 5 years during
the 10 years immediately preceding retirement
or termination.
Accrued Benefit The sum of the following:
a) 3.50% of Average Final Compensation
(using the highest two-year average of
pensionable earnings prior to January 6,
2012) for each year of Credited Service
prior to January 6, 2012, plus
b) 3.25% of Average Final Compensation
(using the highest five-year average of
pensionable earnings earned after January 5,
2012) for each year of Credited Service
earned after January 5, 2012.
Normal Retirement
Date Earlier of age 55 and 10 years of Credited
Service, or 20 years of Credited Service,
regardless of age.
Form of Benefit Ten Year Certain and Life Annuity
(options available).
Early Retirement
Eligibility Age 50 with 10 years of Credited Service.
Benefit Accrued Benefit, reduced 3% per year.
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Cost –of Living Adjustment Each October 1, after one full year of retirement,
Normal and Early Retirees receive a 1.7%
increase in their monthly benefit.
Vesting
Schedule 100% after 10 years of Credited Service.
Benefit Amount Member will receive the vested portion of his
(her) accrued benefit payable at the otherwise
Normal Retirement Date.
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
(Service Incurred).
Duration Payable for life with 120 payments guaranteed
or until recovery (as determined by the Board).
Options available.
Death Benefits
Pre-Retirement
Vested Monthly accrued benefit payable to designated
beneficiary for 10 years.
Non-Vested Refund of accumulated contributions without
interest.
Post-Retirement Benefits payable to beneficiary in accordance
with option selected at retirement.
District Contributions Remaining amount necessary to pay current
costs and amortize past service cost, if any, over
a period up to 30 years. Minimum Contribution
by District is 16.6% of total Salary of the
Members.
Member Contributions 7.0% of Salary.
Englewood Area Fire Control District Firefighters' Pension Trust Fund FOSTER & FOSTER | 32
Board of Trustees a. Two District Board appointees,
b. Two Members of the Department
elected by the membership, and
c. Fifth Member elected by other 4
Trustees.
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