3.b.2. Exhibit B.06-04-19 FireCity/District Name:Okeechobee Employee group(s) covered:Fire
Current actuarial valuation date:10/1/2017
Market Value of Plan Assets (MVA):$3,961,903
Unfunded Accrued Liability (UAL):($223,350)
Number of plan participants:17
7.10%
Assumed 7.00%
Funding requirement as percentage of payroll:29.76%
Percentage of payroll contributed by employee:5.35%
Benefit Formula Description:3.00% X AFC X SC
MVA Funded Ratio (5-year history):
Rate of
Return:
8.24%
7.31%
65.02%
6.45%
Employees covered by Social Security?Yes
*Adjusted by excluding plans from average whose Funded Ratios were not within two standard deviations from the mean
Actuarial Value of Plan Assets (AVA):$3,919,108
AFC Averaging Period (years):5
2/13/2019Date prepared:
Actuarial Accrued Liability (AAL):$3,695,758
Actuarial Value, Actual (2017 Plan Year)
Averages for all plans with 2017
current actuarial valuation date
107.20%
100.48%
98.02%
108.20%
103.64%
85.89%*
82.03%*
81.82%*
85.66%*
81.51%*
Market Value, Actual 11.40%11.78%
**
**
**Excludes plans with zero payroll
Current valuation
1 year prior
2 years prior
3 years prior
4 years prior
Florida
Statute
Chapter
Discount
Rate
Pension
Liability
Market
Value of
Plan
Assets
Net
Pension
Liability
Years
assets
sustain
benefit
payments
Total
Dollar
Contribution
Total
% of Pay
Contribution
3,811,073 3,961,903 -150,830 99.99 165,873 33.20
4,430,832 3,961,903 468,929 99.99 355,764 71.21
99.99 165,873 33.20
112.664(1)(a)
112.664(1)(b)
7.00%
Valuation Basis
5.00%
7.00%
Additional actuarial disclosures required by section 112.664, Florida Statutes:
N/A N/A N/A
Link to annual financial statements:
(For explanation of terms, see glossary on page 2)
3,811,073
3,961,903
-150,830
GASB 67 Reporting
7.00%
https://www.rol.frs.state.fl.us/forms/LOC5340586PDF10012017N1.pdf
Discount Rate
Total Pension Liability
Net Pension Liability
Market Value of Plan Assets
GASB 67 Funded Ratio 103.96%
EXHIBIT B
Market Value of Plan Assets (MVA):The fair market value of assets, including DROP accounts.
Unfunded Accrued Liability (UAL):The difference between the actuarial accrued liability and the actuarial value
of assets accumulated to finance the obligation.
MVA Funded Ratio:Market Value of Plan Assets divided by Actuarial Accrued Liability (GASB)
Rate of Return (Assumed):Assumed long-term rate of return on the pension fund assets.
Funding requirement as
percentage of payroll:
Total Required Contribution (employer and employee) divided by total
payroll of active participants
AFC:Average Final Compensation or some variant of compensation
(e.g., AME [Average Monthly Earnings], FAC [Final Average
Compensation], FMC [Final Monthly Compensation] etc.)
Actuarial Value of Plan Assets (AVA):Assets calculated under an asset valuation method smoothing the effects of
volatility in market value of assets. Used to determine employer contribution.
Actuarial Accrued Liability (AAL):Portion of Present Value of Fully Projected Benefits attributable to service
credit earned as of the current actuarial valuation date.
SC:Service Credit
Years assets sustain benefit
payments:
Assuming no future contributions from any source, the number of years the
market value of assets will sustain payment of expected retirement
benefits. The number of years will vary based on the Florida Statute
Chapter assumption.
Florida Statute Chapter:112.664(1)(a) – uses mortality tables used in either of the two most recently
published FRS valuation reports, with projection scale for mortality
improvement
112.664(1)(b) – uses same mortality assumption as 112.664(1)(a) but using
an assumed discount rate equal to 200 basis points (2.00%) less than
plan’s assumed rate of return.
Valuation Basis – uses all the assumptions in the plan's valuation as of the
current actuarial valuation date.
Discount Rate:Rate used to discount the liabilities. Typically the same as assumed rate of
return on assets.
Total Pension Liability:Actuarial Accrued Liability measured using the appropriate assumptions as
specified above and the Traditional Individual Entry Age Normal Cost
Total Dollar Contribution:Required contribution from all sources (i.e., employee and sponsor).
Contribution will vary based on the Florida Statute Chapter assumption.
Total % of Pay Contribution:Total Dollar Contribution divided by total payroll of active participants
Net Pension Liability:Total Pension Liability minus Market Value of Plan Assets.
Section 112.664 – Glossary of Terms
Actuarial Summary Fact Sheet – Glossary of Terms
Annual financial statements:A report issued which covers a local government retirement system or plan
to satisfy the financial reporting requirements of section 112.664(1), F.S.