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3.d.2. Chapter 112.664 Compliance Report - 2018 July 1, 2019 Board of Trustees City of Okeechobee Firefighters’ Retirement System c/o Mr. Scott Baur Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, Florida 33410 Re: City of Okeechobee Firefighters’ Retirement System Dear Scott: As requested, we are pleased to enclose twelve (12) copies of the October 1, 2018 Chapter 112.664 Compliance Report for the City of Okeechobee Firefighters’ Retirement System (System). As required, we will timely upload the required data to the State’s online portal prior to the filing deadline. Please note we understand the following items must be posted on the System’s website and must be posted on any website containing budget information relating to the City or actuarial or performance information relating to the System: • this compliance report • most recent financial statement • most recent actuarial valuation report • a link to the Division of Retirement Actuarial Summary Fact Sheet http://www.dms.myflorida.com/workforce_operations/retirement/local_retirement_plans/local_ret irement_section/actuarial_summary_fact_sheets • for the previous five years - a side-by-side comparison of the System’s assumed rate of return compared to the actual rate of return as well as the percentages of cash, equity, bond and alternative investments in the System portfolio • the System’s funded ratio as determined in the most recent actuarial valuation – 111.6% defined as the ratio of the market value of System assets to the entry age normal actuarial accrued liability as of October 1, 2018 We appreciate the opportunity to work with the Board on this important assignment. If you should have any questions concerning the above, please do not hesitate to contact us. Sincerest regards, Jennifer M. Borregard, E.A. Consultant and Actuary Enclosures Cit Fir CHA In Conn Financia ty of refig PTER 11 nection with al Reporting f f Oke hter 12.664, h the Octobe for the Year E eech rs’ Re  F.S. CO er 1, 2018 F Ended Septem hobe etire OMPLIA Funding Actu mber 30, 201 ee  eme ANCE RE uarial Valuat 18 nt Sy EPORT  tion Report  yste and the Sys m stem’s       GRS Retirement Consulting               July 1, 20     Board of  City of Ok c/o M Resource 4360 Nor Palm Bea   Re: O   Dear Boa   Gabriel, R City of Ok satisfy the Chapter 6   This repo those des Board on   The purp and to su any purpo   Future ac in this rep by the ec increases measurem requirem law.  The  measurem   This repo provision Dates ind reviewed data.  The 19  Trustees  keechobee F Mr. Scott Bau e Centers, LLC rthlake Blvd., ach Gardens,  October 1, 20 rd Members Roeder, Smit keechobee F e requiremen 60T‐1.0035, F ort was prepa signated or a ly in its entir ose of the re upplement th ose other tha ctuarial meas port due to s onomic or de s or decrease ments (such  ments based o scope of this ments.  ort is based u ns and System dicated.  Fina d the informa e System is r irefighters’ R r  C  , Suite 206  Florida  334 018 Chapter 1 :  h & Compan irefighters’ R nts set forth i F.A.C.   ared at the re approved by  rety and only eport is to pro his informatio an the purpo surements m such factors a emographic  es expected a as the end o on the system s engagemen pon informa m members a ncial informa ation provide esponsible fo Retirement Sy 10  112.664 Com y (GRS) has b Retirement Sy in Chapter 11 equest of the the Board.  T y with the pe ovide the req on with addit ose described may differ sign as the follow assumptions as part of the of an amortiza m’s funded st nt does not i tion furnishe as used in the ation was pro ed for interna or the accura ystem  mpliance Rep been engage ystem (Syste 12.664, F.S. a e Board and i This report m rmission of t quired inform tional exhibit d above.    nificantly fro wing: system e s; changes in  e natural ope ation period  tatus); and c nclude an an ed by the Boa e correspond ovided by th al and year‐to acy of the da port  ed by the Boa em) to prepar and as furthe is intended f may be provid the Board.  mation specif ts.  This repo om the curren experience d economic o eration of the or additiona hanges in sys nalysis of the ard concerni ding Actuaria e Board as o o‐year consis ta.  ard of Truste re a disclosur r required pu for use by the ded to partie fied in Chapt ort should no nt measurem differing from r demograph e methodolo al cost or con stem provisio  potential ra ing System b al Valuations  of September stency, but d es (Board) of re report to  ursuant to  e Board and  es other than ter 112.664,  ot be relied o ments presen m that anticip hic assumptio gy used for t ntribution  ons or applic nge of such  enefits, Syste for the Valu r 30, 2018.  W did not audit  f the   the  F.S.  n for  nted  pated  ons;  these  cable  em  ation  We  this      Board of  July 1, 20 Page Two     Except w using act assumpti estimate    The inves the Actua of the est Chapter 1 investme additiona results as   If all actu are paid S expected contribut Public Em determin   The Syste of System   The Syste the suffic be appro   The unde Standard   The signin   This repo employee report is  required  actuarial  Standard   With resp Section 1 Trustees  019  o  here specific uarial assum ons are base of future Sys stment retur arial Valuatio timates inhe 112.664, F.S. nt return ass al 2% higher a s opposed to  arial assump System, asse  to remain re tions are dete mployee Retir ned as a level em’s funded  m assets to th em’s funded  ciency of Syst priate for ass ersigned are m s of the Ame ng actuaries  ort has been p e retirement accurate and by statute.  A principles an s Board and  pect to the re 12.664(1), F. c assumption ptions adopt ed upon past  stem experie n assumption ons does not  rent in marke requiremen sumption uti assumption s the one‐side ptions are me ts will be suf elatively stab ermined in c rement Bene  percent of c ratio as of O he entry age  ratio and the tem assets to sessing the n members of  erican Academ are indepen prepared by   systems.  To d fairly prese All calculatio nd practices,  with applica eporting stand S., the actuar s are require ted by the Bo and expecte ence.  The mo n of 2% highe represent an et data.  This t to utilize an lized in the A shows a mor ed range requ et and if all c fficient to pa ble as a perce ompliance w efits Act and  covered payr ctober 1, 201 normal actua e GASB Net P o meet the e need for or th the America my of Actuar dent of the S actuaries wh o the best of  nts the actua ns have been with the Act ble statutes. dards for def rial disclosure ed by Chapte oard as descr ed future Sys ortality assum er than the i n estimate of s assumption n investment Actuarial Valu re complete a uired by stat urrent and fu y all System ent of payrol with the requ Firefighters R roll.  18 is 111.6%  arial accrued Pension Liabi stimated cos he amount o n Academy o ries to rende System spons ho have subs our knowled arial position n made in co tuarial Stand   fined benefit  es required u er 112.664, F ribed in Sect stem experie mptions are  nvestment re f future Syste n is provided  t return assu uation Repor assessment o tute.  uture minim benefits and l.  System m irements of  Retirement C  defined as t d liability.   lity may not  st of settling  f future cont of Actuaries a r the actuari sor.  stantial expe dge the infor n of the Syste onformity wit ards of Pract retirement p under this sec .S, this repor ion C.  The B nce and repr prescribed b eturn assum em experien as a counter umption of 2% rt.  The inclu of the range  um required d future cont inimum requ the Florida P Chapter 175  the ratio of th be appropria benefit oblig tributions.  and meet th ial opinions c rience valuin rmation cont em as of the  th generally  tice issued by plans or syste ction were pr rt was prepa Board’s  resent an  by statute.   ption utilized ce or observ rpart to the  % lower than sion of the  of potential   contribution ributions are uired  Protection of  with normal he market va ate for asses gations but m e Qualificatio contained he ng public  ained in this  valuation da accepted  y the Actuari ems containe repared and  red  d in  vation  n the  ns  e  f   cost  alue  ssing  may  on  erein.    ate as  ial  ed in      Board of  July 1, 20 Page Thre     complete To the be requirem   Respectfu   GABRIEL,  By                Je  E  C   D    Trustees  019  ee  ed by us or un est of our kno ents of Sectio ully submitte ROEDER, SM ennifer M. Bo nrolled Actua onsultant & A Date:  July 1, 2   nder our dire owledge, the  on 112.664(1 d,  MITH AND CO orregard, M.A ary No. 17‐07 Actuary   2019  ct supervisio results are co 1), F.S., and S MPANY               A.A.A  7624  n and we ack omplete and  ection 60T‐1 By                    Shel  Enro  Cons knowledge re  accurate, an .0035, F.A.C.                         ly L. Jones, M olled Actuary  sultant & Act esponsibility  nd in our opin                           M.A.A.A  No. 17‐0864 tuary   for the result nion, meet th                      46  ts.   he          TABLE OF CONTENTS        Section  Title           Page      A  Chapter 112.664, F.S. Results              Net Pension Liability   1. Using financial reporting assumptions per GASB Statement No. 67 and No. 68  and using assumptions required under Section 112.664(1)(a), F.S.    1  2. Using assumptions required under Section 112.664(1)(b), F.S.    2  3. Using assumptions required under Section 112.664(1)(a), F.S. plus 2%  3       Asset and Benefit Payments Projection  1. Using financial reporting assumptions per GASB Statement No. 67 and No. 68  and using assumptions required under Section 112.664(1)(a), F.S.    4  2. Using assumptions required under Section 112.664(1)(b), F.S.    5  3. Using assumptions required under Section 112.664(1)(a), F.S. plus 2%  6      Actuarially Determined Contribution            7    B  Summary of System Provisions            8    C  Actuarial Assumptions and Cost Methods Used for Funding      12      D  Glossary           15            SECTION A  CHAPTER 112.664, F.S. RESULTS   City of Okeechobee Firefighters’ Retirement System 1  GRS Retirement Consulting Measurement  Date September 30, 2018 A.Total  Pension Liability (TPL) Service Cost 136,825$                       Interest 257,407                         Benefit Changes 0                                      Difference Between Actual and Expected Experience (162,443)                       Assumption Changes 0                                      Benefit Payments (107,105)                       Contribution Refunds (16,027)                          Other 19,828                           Net Change  in Total  Pension Liability 128,485$                       Total  Pension Liability (TPL) ‐ (beginning of year)3,811,073                     Total  Pension Liability (TPL) ‐ (end of year)3,939,558$                   B.System Fiduciary Net Position Contributions ‐ City 115,253$                       Contributions ‐ State 52,793                           Contributions ‐ Member 23,446                           Net Investment Income 308,920                         Benefit Payments (107,105)                       Contribution Refunds (16,027)                          Administrative Expenses (59,878)                          Other 0                                      Net Change  in System Fiduciary Net Position 317,402$                       System Fiduciary Net Position ‐ (beginning of year)3,961,903                     System Fiduciary Net Position ‐ (end of year)4,279,305$                   C.Net Pension Liability (NPL) ‐ (end of year): (A) ‐ (B)(339,747)$                     Valuation Date October 1, 2017 Certain Key Assumptions Investment Return Assumption 7.0% Mortality  Table: Forhealthy participantsduringemployment, RP 2000Combined HealthyParticipant Mortality Tables, with90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP 2000 Annuitant Mortality Tables, with 90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants,60%RP‐2000Disabled Male Mortality Table setback fouryears / 40% RP‐2000 Annuitant Male Mortality  Table  with White  Collar Adjustment with no setback, without projected mortality improvements.  For  disabled female participants, 60% RP‐2000 Disabled Female Mortality Table setforward two years / 40% RP‐ 2000 Annuitant Female Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements.   Net Pension Liability  Using Financial Reporting Assumptions per GASB Statements No. 67 and No. 68 and Using Assumptions Required Under 112.664(1)(a), F.S.   City of Okeechobee Firefighters’ Retirement System 2  GRS Retirement Consulting Measurement Date September 30, 2018 A.Total  Pension Liability (TPL) Service Cost 220,164$                       Interest 238,667                         Benefit Changes 0                                      Difference Between Actual and Expected Experience 271,363                         Assumption Changes 0                                      Benefit Payments (107,105)                       Contribution Refunds (16,027)                          Other 19,828                           Net Change in Total  Pension Liability 626,890$                       Total  Pension Liability (TPL) ‐ (beginning of year)4,430,832                     Total  Pension Liability (TPL) ‐ (end of year)5,057,722$                   B.System Fiduciary Net Position Contributions ‐ City 115,253$                       Contributions ‐ State 52,793                           Contributions ‐ Member 23,446                           Net Investment Income 308,920                         Benefit Payments (107,105)                       Contribution Refunds (16,027)                          Administrative Expenses (59,878)                          Other 0                                      Net Change in System Fiduciary Net Position 317,402$                       System Fiduciary Net Position ‐ (beginning of year)3,961,903                     System Fiduciary Net Position ‐ (end of year)4,279,305$                   C.Net Pension Liability (NPL) ‐ (end of year): (A) ‐ (B)778,417$                       Valuation Date October 1, 2017 Certain Key Assumptions Investment Return Assumption 5.0% Mortality  Table: Forhealthyparticipantsduringemployment,RP 2000Combined HealthyParticipant MortalityTables, with90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP 2000 Annuitant Mortality Tables, with 90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants,60%RP‐2000 Disabled Male Mortality Table setback four years / 40% RP ‐2000 AnnuitantMale Mortality  Table  with White  Collar Adjustment with no setback, without projected mortality improvements.  For  disabled female participants, 60% RP‐2000 Disabled Female Mortality Table setforward two years / 40% RP ‐ 2000 Annuitant Female Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements.   Net Pension Liability  Using Assumptions Required Under 112.664(1)(b), F.S.   City of Okeechobee Firefighters’ Retirement System 3  GRS Retirement Consulting Measurement Date September 30, 2018 A.Total  Pension Liability (TPL) Service Cost 87,575$                         Interest 263,285                         Benefit Changes 0                                      Difference Between Actual and Expected Experience (121,351)                       Assumption Changes 0                                      Benefit Payments (107,105)                       Contribution Refunds (16,027)                          Other 19,828                           Net Change in Total  Pension Liability 126,205$                       Total  Pension Liability (TPL) ‐ (beginning of year)3,042,886                     Total  Pension Liability (TPL) ‐ (end of year)3,169,091$                   B.System Fiduciary Net Position Contributions ‐ City 115,253$                       Contributions ‐ State 52,793                           Contributions ‐ Member 23,446                           Net Investment Income 308,920                         Benefit Payments (107,105)                       Contribution Refunds (16,027)                          Administrative Expenses (59,878)                          Other 0                                      Net Change in System Fiduciary Net Position 317,402$                       System Fiduciary Net Position ‐ (beginning of year)3,961,903                     System Fiduciary Net Position ‐ (end of year)4,279,305$                   C.Net Pension Liability (NPL) ‐ (end of year): (A) ‐ (B)(1,110,214)$                 Valuation Date October 1, 2017 Certain Key Assumptions Investment Return Assumption 9.0% Mortality  Table: Forhealthyparticipantsduringemployment,RP 2000Combined HealthyParticipant MortalityTables, with90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP 2000 Annuitant Mortality Tables, with 90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants,60%RP‐2000 Disabled Male Mortality Table setback four years / 40% RP ‐2000 AnnuitantMale Mortality  Table  with White  Collar Adjustment with no setback, without projected mortality improvements.  For  disabled female participants, 60% RP‐2000 Disabled Female Mortality Table setforward two years / 40% RP ‐ 2000 Annuitant Female Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements.   Net Pension Liability  Using Assumptions Required Under 112.664(1)(a), F.S. Plus 2% on Investment Return Assumption   City of Okeechobee Firefighters’ Retirement System 4  GRS Retirement Consulting FYE  Market Value of  Assets (BOY)  Expected Investment  Return  Projected Benefit  Payments   Market Value of  Assets (EOY)  2019  $              4,182,158 $                    286,844 $                  157,427  $              4,311,575  2020                  4,311,575                        294,390                      197,732                   4,408,233  2021                  4,408,233                        299,867                      232,092                   4,476,008  2022                  4,476,008                        304,620                      231,862                   4,548,766  2023                  4,548,766                        309,731                      231,387                   4,627,110  2024                  4,627,110                        315,242                      230,664                   4,711,688  2025                  4,711,688                        321,197                      229,735                   4,803,150  2026                  4,803,150                        327,649                      228,432                   4,902,367  2027                  4,902,367                        334,654                      226,829                   5,010,192  2028                  5,010,192                        342,288                      224,532                   5,127,948  2029                  5,127,948                        350,645                      221,483                   5,257,110  2030                  5,257,110                        358,832                      244,258                   5,371,684  2031                  5,371,684                        367,094                      237,811                   5,500,967  2032                  5,500,967                        376,291                      233,891                   5,643,367  2033                  5,643,367                        385,987                      241,130                   5,788,224  2034                  5,788,224                        395,507                      257,649                   5,926,082  2035                  5,926,082                        405,217                      256,060                   6,075,239  2036                  6,075,239                        415,736                      253,977                   6,236,998  2037                  6,236,998                        427,040                      254,497                   6,409,541  2038                  6,409,541                        439,301                      249,607                   6,599,235  2039                  6,599,235                        452,772                      244,502                   6,807,505  2040                  6,807,505                        467,634                      236,933                   7,038,206  2041                  7,038,206                        483,914                      233,454                   7,288,666  2042                  7,288,666                        501,669                      227,515                   7,562,820  2043                  7,562,820                        521,101                      221,096                   7,862,825  2044                  7,862,825                        542,164                      219,416                   8,185,573  2045                  8,185,573                        564,914                      215,214                   8,535,273  2046                  8,535,273                        589,635                      208,780                   8,916,128  2047                  8,916,128                        616,536                      202,336                   9,330,328  2048                  9,330,328                        645,761                      196,178                   9,779,911  99.99 Certain Key Assumptions Investment return assumption 7.0% Mortality Table: Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits reflecting no contributions from the City, Members  or State: Note: As required in Section 112.664(c) of the Florida Statutes, the projection of System assets does not include contributions from the City, Member or State. For this reason, this projection should not be viewed as representative of the amount of time the System can sustain benefit payments. Under the Government Accounting Standards Board standards which include City, Member and State contributions, the System  is expected to be able  to pay all future  benefit payments. For healthy participants during employment, RP 2000Combined HealthyParticipant MortalityTables, with90% BlueCollar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP 2000 Annuitant Mortality Tables, with 90% Blue Collar Adjustment / 10% White Collar Adjustment for malesand100%White CollarAdjustmentforfemales. Fullygenerational mortalityimprovements projectedto eachfuture decrement date with Scale BB. For disabled male participants, 60% RP‐2000 Disabled Male Mortality Table setback four years / 40% RP‐2000 Annuitant Male Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements. For disabled female participants, 60% RP‐2000 Disabled Female Mortality Table setforward two years / 40% RP‐2000 Annuitant Female Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements.   Asset and Benefit Payment Projection  Not Reflecting Any Future Contributions Using Financial Reporting Assumptions per GASB Statements No. 67 and No. 68 and Using Assumptions Required Under 112.664(1)(a), F.S.   City of Okeechobee Firefighters’ Retirement System 5  GRS Retirement Consulting FYE  Market Value of  Assets (BOY)  Expected Investment  Return  Projected Benefit  Payments   Market Value of  Assets (EOY)  2019  $              4,182,158 $                    204,876 $                  157,427  $              4,229,607  2020                  4,229,607                        206,165                      197,732                   4,238,040  2021                  4,238,040                        205,663                      232,092                   4,211,611  2022                  4,211,611                        204,348                      231,862                   4,184,097  2023                  4,184,097                        202,985                      231,387                   4,155,695  2024                  4,155,695                        201,584                      230,664                   4,126,615  2025                  4,126,615                        200,155                      229,735                   4,097,035  2026                  4,097,035                        198,711                      228,432                   4,067,314  2027                  4,067,314                        197,268                      226,829                   4,037,753  2028                  4,037,753                        195,852                      224,532                   4,009,073  2029                  4,009,073                        194,500                      221,483                   3,982,090  2030                  3,982,090                        192,538                      244,258                   3,930,370  2031                  3,930,370                        190,126                      237,811                   3,882,685  2032                  3,882,685                        187,847                      233,891                   3,836,641  2033                  3,836,641                        185,350                      241,130                   3,780,861  2034                  3,780,861                        182,117                      257,649                   3,705,329  2035                  3,705,329                        178,383                      256,060                   3,627,652  2036                  3,627,652                        174,555                      253,977                   3,548,230  2037                  3,548,230                        170,570                      254,497                   3,464,303  2038                  3,464,303                        166,505                      249,607                   3,381,201  2039                  3,381,201                        162,487                      244,502                   3,299,186  2040                  3,299,186                        158,590                      236,933                   3,220,843  2041                  3,220,843                        154,767                      233,454                   3,142,156  2042                  3,142,156                        150,992                      227,515                   3,065,633  2043                  3,065,633                        147,338                      221,096                   2,991,875  2044                  2,991,875                        143,696                      219,416                   2,916,155  2045                  2,916,155                        140,022                      215,214                   2,840,963  2046                  2,840,963                        136,436                      208,780                   2,768,619  2047                  2,768,619                        132,992                      202,336                   2,699,275  2048                  2,699,275                        129,690                      196,178                   2,632,787  99.99 Certain Key Assumptions Investment return assumption 5.0% Mortality Table: Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits reflecting no contributions from the City, Members  or State: For healthy participants during employment, RP 2000Combined HealthyParticipant MortalityTables, with90% BlueCollar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP 2000 Annuitant Mortality Tables, with 90% Blue Collar Adjustment / 10% White Collar Adjustment for malesand100%WhiteCollarAdjustmentforfemales. Fullygenerational mortalityimprovements projectedto eachfuture decrement date with Scale BB. For disabled male participants, 60% RP‐2000 Disabled Male Mortality Table setback four years / 40% RP ‐2000 Annuitant Male Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements. For disabled female participants, 60% RP‐2000 Disabled Female Mortality Table setforward two years / 40% RP‐2000Annuitant Female Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements.   Note: As required in Section 112.664(c) of the Florida Statutes, the projection of System assets does not include contributions from the City, Member or State. For this reason, this projection should not be viewed as representative of the amount of time the System can sustain benefit payments. Under the Government Accounting Standards Board standards which include City, Member and State contributions, the System is expected to be  able  to pay all future  benefit  payments. Asset and Benefit Payment Projection  Not Reflecting Any Future Contributions Using Assumptions Required Under 112.664(1)(b), F.S.   City of Okeechobee Firefighters’ Retirement System 6  GRS Retirement Consulting FYE  Market Value of  Assets (BOY)  Expected Investment  Return  Projected Benefit  Payments   Market Value of  Assets (EOY)  2019  $              4,182,158 $                    368,821 $                  157,427  $              4,393,552  2020                  4,393,552                        385,907                      197,732                   4,581,727  2021                  4,581,727                        401,190                      232,092                   4,750,825  2022                  4,750,825                        416,420                      231,862                   4,935,383  2023                  4,935,383                        433,053                      231,387                   5,137,049  2024                  5,137,049                        451,238                      230,664                   5,357,623  2025                  5,357,623                        471,134                      229,735                   5,599,022  2026                  5,599,022                        492,923                      228,432                   5,863,513  2027                  5,863,513                        516,804                      226,829                   6,153,488  2028                  6,153,488                        543,012                      224,532                   6,471,968  2029                  6,471,968                        571,822                      221,483                   6,822,307  2030                  6,822,307                        602,257                      244,258                   7,180,306  2031                  7,180,306                        634,787                      237,811                   7,577,282  2032                  7,577,282                        670,703                      233,891                   8,014,094  2033                  8,014,094                        709,668                      241,130                   8,482,632  2034                  8,482,632                        751,042                      257,649                   8,976,025  2035                  8,976,025                        795,524                      256,060                   9,515,489  2036                  9,515,489                        844,176                      253,977                 10,105,688  2037                10,105,688                        897,269                      254,497                 10,748,460  2038                10,748,460                        955,353                      249,607                 11,454,206  2039                11,454,206                     1,019,116                      244,502                 12,228,820  2040                12,228,820                     1,089,195                      236,933                 13,081,082  2041                13,081,082                     1,166,066                      233,454                 14,013,694  2042                14,013,694                     1,250,287                      227,515                 15,036,466  2043                15,036,466                     1,342,645                      221,096                 16,158,015  2044                16,158,015                     1,443,666                      219,416                 17,382,265  2045                17,382,265                     1,554,050                      215,214                 18,721,101  2046                18,721,101                     1,674,855                      208,780                 20,187,176  2047                20,187,176                     1,807,112                      202,336                 21,791,952  2048                21,791,952                     1,951,838                      196,178                 23,547,612  99.99 Certain Key Assumptions Investment return assumption 9.0% Mortality Table: Number of years for which current market value of assets are adequate to sustain the  payment  of expected retirement benefits reflecting no contributions from the City, Members  or State: For healthy participants during employment, RP 2000 Combined Healthy Participant Mortality Tables, with 90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP 2000 Annuitant Mortality Tables, with 90% Blue Collar Adjustment/ 10% White CollarAdjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each futuredecrementdatewithScale BB. Fordisabledmale participants,60% RP‐2000Disabled MaleMortality Table setback four years / 40% RP ‐2000 A nnuitant Male Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements. For disabled female participants, 60% RP‐2000 Disabled Female Mortality Table setforward two years / 40% RP‐2000Annuitant Female Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements.   Note: As required in Section 112.664(c) of the Florida Statutes, the projection of System assets does not include contributions from the City, Member or State. For this reason, this projection should not be viewed as representative of the amount of time the System can sustain benefit payments. Under the Government Accounting Standards Board standards which include City, Member and State contributions, the System  is expected to be able  to pay all future  benefit  payments. Asset and Benefit Payment Projection  Not Reflecting Any Future Contributions Using Assumptions Required Under 112.664(1)(a), F.S. Plus 2% on Investment Return Assumption  City of Okeechobee Firefighters’ Retirement System 7  GRSRetirementConsultingA. Valuation DateB. Actuarial Determined Contribution to Be Paid During Fiscal Year Ending C. Annual Payroll of Active Employees 512,885$               512,885$               512,885$               D. Total Minimum Funding Requirement1.  Total Normal Cost 109,880$               280,701$               0$                            2.  Estimated Administrative Expenses 59,878 59,878 59,8783.  Interest Adjustment 13,258 22,281 2,2124.  Total Minimum Funding Requirement    (1. + 2. + 3., not less than 1.) 183,016$               362,860$               62,090$                 E. Expected Payroll of Active Employees forFollowing Plan Year ($ / % of pay)(C x 1.000) 512,885$               100.00% 512,885$               100.00% 512,885$               100.00%F. Expected Contribution Sources ($ / % of pay)1.  City 104,579$               20.39% 284,423$               55.46% 0$                            0.00%2.  Member 25,644                   5.00% 25,644                   5.00% 25,644                   5.00%3.  State 52,793 10.29% 52,793 10.29% 52,793 10.29%4.  Total 183,016$               35.68% 362,860$               70.75% 78,437$                 15.29%September 30, 2020 September 30, 2020September 30, 2020October 1, 2018ACTUARIALLY DETERMINED CONTRIBUTIONOctober 1, 2018October 1, 2018Valuation Assumptions and 112.664(1)(a), F.S. Assumptions112.664(1)(b), F.S. Assumptions112.664(1)(a), F.S. Assumptions Plus 2% on Investment Return Assumption SECTION B  SUMMARY OF SYSTEM PROVISIONS   City of Okeechobee Firefighters’ Retirement System 8  GRS Retirement Consulting A. Effective Date: B. Eligibility: C. Contributions: 5.0% of  Salary. Premium Tax Revenue. City: Balance required to maintain System on sound actuarial basis. D. Credited Service: E. Salary: F. Average Final  Compensation: G. Normal Retirement: 1. Eligibility: Earlier of: (a) Attainment of  age 55 with completion of 10 years  of Credited Service. (b) Completion of  25 years  of  Credited Service. 2. Benefit: 3.0% times  AFC  times  Credited Service. State: Service is measured as the total  number of  years  and completed months  of  continuous  service as  a Member. No service is credited for any periods of employment for which the Member received a refund of employee contributions. Basic compensation including tax deferred, tax sheltered and tax exempt income which would otherwise be included in base income, derived from elective employee payroll deductions or salary reductions. Average Final Compensation (AFC) is determined by the average basic salary over the highest 5 years  of the last 10. Outline of Principal Provisions of the Retirement System as of October 1, 2018 January 1, 1972.  Most recently amended by Ordinance No. 1133 adopted February 2, 2016. All actively employed full time Firefighters of the City are eligible on date of employment; Participation is mandatory. Employee:   City of Okeechobee Firefighters’ Retirement System 9  GRS Retirement Consulting H. Early Retirement: 1. Eligibility: 2. Benefit: I. Delayed Retirement: J. Disability Retirement: 1. Service Incurred: 2. Non‐Service Incurred: a. Eligibility: b. Benefit: The  greatest of: (iii) 25% of  AFC K. Pre‐Retirement Death Benefit: a. b. c. Vested but Not Eligible  for Early or Normal   Retirement: Greater of (a) 50% of the present value of vested accrued benefit or (b) refund of accumulated contributions. Eligible for Early or  Normal  Retirement: Greater of (a) accrued benefit, determined as though the deceased had retired immediately preceding date of death and elected the 10 year certain and life form of payment or (b) 50% of present value of vested accrued benefit. In the event a vested Member's spouse is the sole beneficiary, the beneficiary shall be entitled to the accrued normal or early retirement benefit payable at the deceased Member's early or normal retirement age less the value of any benefits  paid above. Accrued benefit, but not less than 42% of AFC. 5 or more  years  of Credited Service; totally and permanently disabled. (i)    Accrued benefit (ii)   2% of  AFC  times  Credited Service Not Vested: Refund of accumulated contributions. Outline of Principal Provisions of the Retirement System as of October 1, 2018 Attainment of  age 50 with completion of 10 years  of Credited Service. Benefit accrued to date of retirement, reduced by 3% for each year early retirement date precedes age 55. Computed the same as set forth under Normal  Retirement, based upon AFC  and Credited Service as  of   dela yed retirement date.   City of Okeechobee Firefighters’ Retirement System 10  GRS Retirement Consulting L. Termination Benefits: 1. Eligibility: 2. Benefit: M. Normal  Form of  Retirement Income: N. Optional  Forms  of  Retirement Income: O. Deferred Retirement Option Program (DROP) 1. Eligibility: 2. Benefit: In lieu of electing the normal form of payment, the optional forms of payment available are the Single Life Annuity option and the 50%, 66 2/3%, 75% and 100% Joint and Contingent options. A Social Security option is available for Members retiring prior to being eligible for Social Security retirement benefits. A 20% Partial Lump Sum is available for Members who do not participate in the DROP. Member must be eligible for Normal  Retirement. Retirement benefits are transferred to a hypothetical DROP account within the pension fund. Interest is credited or debited based upon either the quarterly rate of return earned by the Fund or a monthly 6.5% fixed rate of return, as elected by the Member. Members may elect to change their interest crediting election once during the DROP period. The period of participation in the DROP is limited to no more than 60 months. The benefit is paid as a lump sum upon actual termination of  employment. Outline of Principal Provisions of the Retirement  System as of October 1, 2018 100% vesting upon the completion of 10 years of credited service. Employees who have not completed 10 years of credited service at date of termination of employment shall only be entitled to the return of  their accumulated contributions  with 3.0% interest. Accrued benefit based upon credited service and AFC  as  of  date  of  termination, payable  at age  55. Monthly benefit payable  for ten (10) years  certain and life thereafter.   City of Okeechobee Firefighters’ Retirement System 11  GRS Retirement Consulting P. Cost of  Living Adjustment (COLA) Q. Changes  Since Previous  Valuation Outline of Principal Provisions of the Retirement  System as of October 1, 2018 Beginning October 1, 1999 and October 1 of every odd‐numbered year thereafter, monthly benefits of  all retirees  (service, disability, DROP), beneficiaries  and vested terminated participants  who have   been in the DROP or in pay status for at least one year on the adjustment date will be increased by 0.5%. None. SECTION C  ACTUARIAL ASSUMPTIONS AND COST METHODS USED FOR  FUNDING   City of Okeechobee Firefighters’ Retirement System 12  GRS Retirement Consulting A. Mortality Sample Ages (2018) Men Women Men Women 55 29.84 33.57 29.33 33.34 60 24.96 28.54 24.76 28.44 62 23.09 26.58 22.97 26.52 Sample Ages (2038) Men Women Men Women 55 32.06 35.41 31.57 35.21 60 27.21 30.38 27.03 30.30 62 25.34 28.40 25.23 28.35 B. Interest to be Earned by Fund C. Allowances for Expenses  or Contingencies 7.0% (net of  investment expenses), compounded annually ‐ includes  inflation at 2.5%. Actual  administrative expenses  incurred during  the prior System year. Pre‐retirement Post‐retirement Future Life Future  Life Expectancy (Years) Expectancy (Years) Expectancy (Years) Expectancy (Years) Actuarial Assumptions and Actuarial Cost  Methods Used  in the Valuation as of October 1, 2018 For healthy participants during employment, RP 2000 Combined Healthy Participant Mortality Tables, with 90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date  with Scale BB. For healthy participants post employment, RP 2000 Annuitant Mortality Tables, with 90% Blue Collar Adjustment / 10% White Collar Adjustment for males and 100% White Collar Adjustment for females. Fully generational mortality improvements projected to each future decrement date with Scale BB. Fordisabled male participants, 60% RP‐2000 Disabled Male Mortality Table setback four years / 40% RP‐2000 Annuitant Male Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements. For disabled female participants, 60% RP‐2000 Disabled Female Mortality Table setforward two years / 40% RP‐2000 Annuitant Female Mortality Table with White Collar Adjustment with no setback, without projected mortality improvements.   Pre‐retirement Post‐retirement Future Life Future  Life   City of Okeechobee Firefighters’ Retirement System 13  GRS Retirement Consulting D. Salary Increase Factors E. Disability Rates Disability Rates Per 100 Employees 0.14 0.18 0.30 1.00 F. Employee Withdrawal Rates G. Rates  of  Retirement 60 0.2% All active members on the valuation date are assumed to have a minimum of one year of future service. 100% at normal  retirement age. 30 5.0% 40 2.6% 50 0.8% Age Withdrawal Rate 20 6.0% Withdrawal rates for males and forfemales were used in accordance with the following illustrative example. Actuarial Assumptions and Actuarial Cost  Methods Used  in the Valuation as of October 1, 2018 Current salary is assumed to increase at a rate of  7.0% ‐ includes wage inflation of  3.5%. Disability rates for males and for females were used in accordance with the following illustrative example. Age 20 30 40 50   City of Okeechobee Firefighters’ Retirement System 14  GRS Retirement Consulting H. Cost Method Normal  Retirement, Termination, Disability, and Death Benefits: Aggregate I. Asset Valuation Method J. Changes  Since Previous  Valuation Actuarial Assumptions and Actuarial Cost  Methods Used  in the Valuation as of October 1, 2018 Under this method the excess of the Actuarial Present Value of Projected Benefits of the group included in the valuation, over the sum of the Smoothed Value of Assets is allocated as a level percentage of earnings of the group between the valuation date and the assumed retirement age. This allocation is performed for the group as a whole, not as a sum of individual allocations. The portion of this Actuarial Present Value allocated to a specific year is called the Normal Cost. Under this method, actuarial gains (losses) reduce (increase) future Normal  Costs. The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 25% per year. The smoothed value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair market value of System assets and whose upper limit is 120% of  the fair market value of System assets. None SECTION D  GLOSSARY    City of Okeechobee Firefighters’ Retirement System 15  GRS Retirement Consulting GLOSSARY      Actuarial Accrued Liability  The difference between the Actuarial Present Value of Future Benefits,  and the Actuarial Present Value of Future Normal Costs.       Actuarial Assumptions Assumptions about future plan experience that affect costs or liabilities,  such as: mortality, withdrawal, disablement, and retirement; future  increases in salary; future rates of investment earnings; future  investment and administrative expenses; characteristics of members not  specified in the data, such as marital status; characteristics of future  members; future elections made by members and other items.     Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits  between the Actuarial Present Value of Future Normal Costs and the  Actuarial Accrued Liability.     Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and  based on a given set of Actuarial Assumptions.     Actuarial Present Value  The amount of funds required to provide a payment or series of  payments in the future.  It is determined by discounting the future  payments with an assumed interest rate and with the assumed  probability each payment will be made.     Actuarial Present Value of  Future Benefits  The Actuarial Present Value of amounts which are expected to be paid at  various future times to active members, retired members, beneficiaries  receiving benefits and inactive, non‐retired members entitled to either a  refund or a future retirement benefit.  Expressed another way, it is the  value that would have to be invested on the valuation date so that the  amount invested plus investment earnings would provide sufficient  assets to pay all projected benefits and expenses when due.     Actuarial Valuation The determination, as of a valuation date, of the Normal Cost, Actuarial  Accrued Liability, Actuarial Value of Assets, and related Actuarial Present  Values for a plan.  An Actuarial Valuation for a governmental retirement  system typically also includes calculations of items needed for  compliance with GASB No. 67.     Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for  valuation purposes.  This may be the market or fair value of plan assets  or a smoothed value in order to reduce the year‐to‐year volatility of  calculated results, such as the funded ratio and the actuarially required  contribution.         City of Okeechobee Firefighters’ Retirement System 16  GRS Retirement Consulting Amortization Method A method for determining the Amortization Payment.  The most  common methods used are level dollar and level percentage of payroll.   Under the Level Dollar method, the Amortization Payment is one of a  stream of payments, all equal, whose Actuarial Present Value is equal to  the UAAL. Under the Level Percentage of Pay method, the Amortization  Payment is one of a stream of increasing payments, whose Actuarial  Present Value is equal to the UAAL.  Under the Level Percentage of Pay  method, the stream of payments increases at the rate at which total  covered payroll of all active members is assumed to increase.     Amortization Payment That portion of the plan contribution which is designed to pay interest on  and to amortize the Unfunded Actuarial Accrued Liability.     Amortization Period The period used in calculating the Amortization Payment.     Annual Required  Contribution  The employer’s periodic required contributions, expressed as a dollar  amount or a percentage of covered plan compensation.  The annual  required contribution consists of the Employer Normal Cost and  Amortization Payment plus interest adjustment.     Closed Amortization Period A specific number of years that is reduced by one each year, and declines  to zero with the passage of time.  For example if the amortization period  is initially set at 30 years, it is 29 years at the end of one year, 28 years at  the end of two years, etc.      Employer Normal Cost The portion of the Normal Cost to be paid by the employer.  This is  equal to the Normal Cost less expected member contributions.     Equivalent Single  Amortization Period  For plans that do not establish separate amortization bases (separate  components of the UAAL), this is the same as the Amortization Period.   For plans that do establish separate amortization bases, this is the period  over which the UAAL would be amortized if all amortization bases were  combined upon the current UAAL payment.     Experience Gain/Loss A measure of the difference between actual experience and that  expected based upon a set of Actuarial Assumptions, during the period  between two actuarial valuations.  To the extent that actual experience  differs from that assumed, Unfunded Actuarial Accrued Liabilities emerge  which may be larger or smaller than projected.  Gains are due to  favorable experience, e.g., the assets earn more than projected, salaries  do not increase as fast as assumed, members retire later than assumed,  etc.  Favorable experience means actual results produce actuarial  liabilities not as large as projected by the actuarial assumptions.  Losses  are the result of unfavorable experience, i.e., actual results that produce  Unfunded Actuarial Accrued Liabilities which are larger than projected.     Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued  Liability.    City of Okeechobee Firefighters’ Retirement System 17  GRS Retirement Consulting    GASB Governmental Accounting Standards Board.     GASB No. 67 and     GASB No. 68  These are the governmental accounting standards that set the  accounting rules for public retirement plans and the employers that  sponsor or contribute to them.  Statement No. 67 sets the accounting  rules for the plans themselves, while Statement No. 68 sets the  accounting rules for the employers that sponsor or contribute to public  retirement plans.     Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the  current plan year.     Open Amortization Period An open amortization period is one which is used to determine the  Amortization Payment but which does not change over time. In other  words, if the initial period is set as 30 years, the same 30‐year period is  used in determining the Amortization Period each year.  In theory, if an  Open Amortization Period is used to amortize the Unfunded Actuarial  Accrued Liability, the UAAL will never completely disappear, but will  become smaller each year, either as a dollar amount or in relation to  covered payroll.     Unfunded Actuarial Accrued  Liability  The difference between the Actuarial Accrued Liability and Actuarial  Value of Assets.       Valuation Date  The date as of which the Actuarial Present Value of Future Benefits are  determined. The benefits expected to be paid in the future are  discounted to this date.