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GRS- 2016 Share Plan Allocation 7-13-18cGooRs Retirement Consulting July 13, 2018 CONFIDENTIAL Board of Trustees City of Okeechobee Firefighters' Retirement System c/o Mr. Scott Baur The Resource Centers, LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Re: City of Okeechobee Firefighters' Retirement System Dear Scott: P: 954.527.1616 I F: 954.525.0083 I www.grsconsulting.com [iti JUL 1 8 2018 By As requested, we have prepared the enclosed calculations showing the Share Plan balances as of September 30, 2016 and September 30, 2017. Individual Share Plan Statements will be sent separately. The enclosed calculations are based on Ordinance No. 1133, as well as the following: 1) The Share Plan balance as of September 30, 2016 is based on the initial Share Plan allocation totaling $7,660 (as shown on the top exhibit on page 12 of our October 1, 2017 Actuarial Valuation Report dated March 22, 2018) Tess the administrative expenses allocated to each member as described in item 3. 2) Members eligible for a Share Plan allocation as of September 30, 2016 include the following: • Active members as of September 30, 2016, including new members who joined the Plan between October 1, 2015 and September 30, 2016 • DROP members as of September 30, 2016 • Members who retired between October 1, 2015 and September 30, 2016 • DROP members who exited the program between October 1, 2015 and September 30, 2016 • Beneficiaries of active or DROP members who died between October 1, 2015 and September 30, 2016 Any members who were already terminated, retired, or deceased as of October 1, 2015 are not eligible for an allocation. Since there were no DROP members as of September 30, 2016, and there were no changes to the active or DROP membership during 2016, the initial share was allocated amongst the 12 active members as of 9/30/2016. One East Broward Blvd. Suite 505 I Ft. Lauderdale, FL 33301 Board of Trustees, City of Okeechobee Firefighters' Retirement System July 13, 2018 Page 2 3) The September 30, 2016 calculations reflect the following: • The beginning balance is $0 for each eligible member. • Investment earnings are $0 for each member since there is no money in each member's account until 9/30/2016. • The forfeiture amount is $0 for each member since there were no non -vested terminations during the year ending 9/30/2016. • Each eligible member's Share Plan allocation is equal to: $7,660 x (Member's Credited Service as of 9/30/2016 _ Sum of Credited Service as of 9/30/2016 for all eligible Share Plan members). • The only administrative expenses are $2,000 (actuarial fees). • Each member's expense allocation is equal to $2,000 x (Member's Account Balance at end of year _ Total of all Share Plan Accounts at end of year). 4) There is no Share Plan allocation for the fiscal year ending September 30, 2017 (see bottom exhibit on page 12 of our October 1, 2017 Actuarial Valuation Report dated March 22, 2018). 5) Share Plan balances as of September 30, 2017 reflect interest of 11.4% (the net return on market value of assets for fiscal year ending on the September 30, 2017, as shown page 31 of the 10/1/2017 Actuarial Valuation Report). Members eligible for interest are only members who are also eligible for a Share Plan allocation for the year (i.e., terminated vested members are not eligible). 6) There was one vested member who terminated employment during the year ending September 30, 2017 (John Wooten), and he did not receive interest on his September 30, 2016 Share Plan balance since he was not an eligible member as of September 30, 2017. This member is entitled to receive a distribution of $355.70, which is his Share Plan balance as of September 30, 2016. Accordingly, his Share Plan balance as of September 30, 2016 was not reduced for administrative expenses for year ending September 30, 2017. 7) Members eligible for interest on the September 30, 2016 balance include the following: • Active members as of September 30, 2017, including new members who joined the Plan between October 1, 2016 and September 30, 2017 • DROP members as of September 30, 2017 • Members who retired between October 1, 2016 and September 30, 2017 • DROP members who exited the program between October 1, 2016 and September 30, 2017 • Beneficiaries of active or DROP members who died between October 1, 2016 and September 30, 2017. 8) For DROP members, Credited Service used for the allocation is frozen as of DROP entry date (i.e., same Credited Service used to determine the retirement benefits). 9) The September 30, 2017 calculations reflect the following: • Interest on the beginning of year balance, with the exception of terminated vested members as described above. • The forfeiture amount is $0 for each member, since there were no non -vested terminations CGieR S Red Bring the year ending 9/30/2017. Consulting Board of Trustees, City of Okeechobee Firefighters' Retirement System July 13, 2018 Page 3 • Expenses were assumed to be comprised of only actuarial fees of $2,000. Each member's expense allocation as of September 30, 2017 is equal to $2,000 x (Member's Account Balance at end of year before expenses - Total of all Share Plan Accounts at end of year before expenses). Terminated vested members' balances are excluded for purposes of this calculation, and no expenses are allocated to terminated vested members as of September 30, 2017. Please review the above procedures, as well as the data on the enclosed exhibit and inform us of any discrepancies. We also recommend the Plan attorney's review the above procedures. Any inaccuracies will affect the amount allocated to all members. We welcome your questions and comments. Sincerely yours, Melissa R. Moskovitz tj? MCSIak,s( J,LAC7`11/t-7(.44— Rhonda Hart Senior Analyst Consultant & Actuary Enclosures This communication shall not be construed to provide tax advice, legal advice or investment advice. Cie RS Consult ngt CITY OF OKEECHOBEE FIREFIGHTERS' RETIREMENT SYSTEM 9/30/2016 SHARE PLAN ALLOCATION Name Status as of 9/30/2016 Date of Hire Service on 9/30/2016 10/1/2015 Balance Investment Earnings Forfeitures 9/30/2016 Initial Allocation' Expenses During FYE 9/30/2016 9/30/2016 Balance BRYDEBELL, MITCH Active 2/16/2007 9.6244- - - 514.85 (134.43) 380.42 CONROY, PJ Active 5/31/1994 22.3333 - - - 1,194.69 (311.93) 882.76 CRUM, ADAM D Active 6/11/2003 13.3048- - - 711.72 (185.83) 525.89 HODGES, GW Active 6/17/1994 22.2884- - - 1,192.29 (311.30) 880.99 MCGEE, LESTER Active 1/4/2008 8.7406- - - 467.57 (122.08) 345.49 PALMER, TIMMY G. Active 2/2/2014 2.6628- - - 142.44 (37.19) 105.25 RODRIGUEZ, HILARIO Active 11/27/2007 8.8443- - - 473.12 (123.53) 349.59 SANDERS, JOSHUA Active 12/16/2010 5.7911- - - 309.79 (80.89) 228.90 SKIPPER, MICHAEL T Active 9/18/2010 6.0356- - - 322.87 (84.30) 238.57 SMITH, HE Active 2/3/1992 24.6600- - - 1,319.16 (344.43) 974.73 WEEKS, LARRY STEVE Active 11/3/2006 9.9100- - - 530.12 (138.41) 391.71 WOOTEN, JOHN R Active 10/1/2007 8.9989- - - 481.39 (125.69) 355.70 Total 143.1942 0 0 0 7,660.01 (2,000.01) 5,660.00 1 Based on the default rules of SB 172, $7,660, equal to 50% of the Chapter 175 Reserve as of September 30, 2016 ($15,320), is transferred to the Share Plan. Gabriel, Roeder, Smith & Company July 13, 2018 CITY OF OKEECHOBEE FIREFIGHTERS' RETIREMENT SYSTEM 9/30/2017 SHARE PLAN ALLOCATION Name Status as of 9/30/2017 Date of Hire Service on 9/30/2017 10/1/2016 Balance Investment Earnings' Forfeitures 9/30/2017 Allocation 9/30/2017 Balance (Before Expenses) Expenses During FYE 9/30/2017 9/30/2017 Balance BRYDEBELL, MITCH Active 2/16/2007 10.6244 380.42 43.37 - - 423.79 (143.44) 280.35 CONROY, PJ Active 5/31/1994 23.3333 882.76 100.63 - - 983.39 (332.85) 650.54 CORTEZ, DAVID Active 6/9/2017 0.3103 -- - - - - - CRUM, ADAM D Active 6/11/2003 14.3048 525.89 59.95 - - 585.84 (198.29) 387.55 HODGES, GW Active 6/17/1994 23.2884 880.99 100.43 - - 981.42 (332.18) 649.24 MCGEE, LESTER Active 1/4/2008 9.7406 345.49 39.39 - - 384.88 (130.27) 254.61 PALMER, TIMMY G. Active 2/2/2014 3.6628 105.25 12.00 - - 117.25 (39.69) 77.56 RODRIGUEZ, HILARIO Active 11/27/2007 9.8443 349.59 39.85 - - 389.44 (131.81) 257.63 SANDERS, JOSHUA Active 12/16/2010 6.7911 228.90 26.09 - - 254.99 (86.31) 168.68 SKIPPER, MICHAEL T Active 9/18/2010 7.0356 238.57 27.20 - - 265.77 (89.95) 175.82 SMITH, HE DROP 2/3/1992 25.6600 974.73 111.12 - - 1,085.85 (367.53) 718.32 WEEKS, LARRY STEVE Active 11/3/2006 10.9100 391.71 44.65 - - 436.36 (147.69) 288.67 WOOTEN, JOHN R Term Vested 10/1/2007 N/A 355.70 - - - - - 355.70 Total 145.5056 5,660.00 604.68 0 0 5,908.98 (2,000.01) 4,264.67 1 Based on net return on market value of assets for the year of 11.4% Z Based on the default rules of SB 172, there amount to be transferred to the Share Plan for the year is $0. Gabriel, Roeder, Smith & Company July 13, 2018