2020-04-07 Ex 02Law Offices
Christiansen & Dehne>r9 P.A.
Scott R. Christiansen 63 Sarasota Center Blvd. Suite 107 H. Lee Dehner
Sarasota, Florida 34240 (1952.2019)
941.377.2200
Fax 941.377.4848
February 27, 2020
Mr. Marcos Montes De Oca
City Administrator
City of Okeechobee
55 S.E. 3rd Avenue
Okeechobee, FL 34974-2032
Re: City of Okeechobee Municipal Firefighters' Pension Fund - Proposed Ordinance
Dear Mr. Montes De Oca:
Enclosed please find a proposed ordinance amending the City of Okeechobee Municipal
Firefighters' Pension Fund. This ordinance amends Section 8, Disability, to include language
regarding the Firefighter Cancer Presumption recently adopted by the Florida Legislature in F.S.
§112.1816(1)(a).
I am enclosing a copy of the actuarial impact statement from the Board's actuary, Gabriel
Roeder Smith & Company, that must accompany this ordinance when it is presented to the Council
for consideration and adoption. If you or any member of your staff have any questions with regard
to this ordinance, please feel free to give me a call. In addition, if you feel it would be appropriate
for me to be present at the meeting at which this ordinance is considered by the City Council, please
contact my office to advise me of the date that the ordinance would be considered.
Yours vy,
Scott R. Christiansen
SRC/dm
enclosure
cc: Shelly Jones, with enclosures
Carlyn Kowalsky, with enclosures V//
AN ORDINANCE OF THE CITY OF OKEECHOBEE
FURTHER AMENDING THE CITY OF OKEECHOBEE
MUNICIPAL FIREFIGHTERS' PENSION FUND, ADOPTED
PURSUANT TO ORDINANCE 889, AS SUBSEQUENTLY
AMENDED; AMENDING SECTION 8, DISABILITY;
PROVIDING FOR CODIFICATION; PROVIDING FOR
SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City of Okeechobee Firefighter employees are presently provided
pension and certain other benefits under Ordinances of the City of Okeechobee; and
WHEREAS, it becomes necessary from time to time to amend said ordinances in
order to clarify or restate certain provisions of the ordinance, or to enact amendments to
comply with revised Federal regulations;
NOW THEREFORE, be it ordained before the City Council of the City of
Okeechobee, Florida; presented at a duly advertised public meeting; and passed by
majority vote of the City Council; and properly executed by the Mayor or designee, as Chief
Presiding Officer for the City:
SECTION 1: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 8, Disability, subsection 2., In -Line of Duty Presumptions
by adding subsection 2.C., Firefighter Cancer Presumption, to read as follows:
C. Firefighter Cancer Presumption
uuuumbtances inai arise out of the treatment of cancer will be conclusive)
presumed to be disabled in-line of duty
SECTION 2: Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Okeechobee.
SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 4: If any section, subsection, sentence, clause, phrase of this ordinance,
or the particular application thereof shall be held invalid by any court, administrative
agency, or other body with appropriate jurisdiction, the remaining section, subsection,
sentences, clauses, or phrases under application shall not be affected thereby.
SECTION 5: That this Ordinance shall become effective upon adoption.
Introduced on first reading and set for public hearing this day of
, 2020.
Dowling Watford, Jr., Mayor
ATTEST:
Lane Garniotea, City Clerk
Passed
ATTEST:
on second reading after public hearing this day of
,2020.
Dowling Watford, Jr., Mayor
Lane Garniotea, City Clerk
APPROVED FOR LEGAL SUFFICIENCY:
Carlyn Kowalsky, City Attorney
dm/ok/fire/l 2-12-19.ord
January 31, 2020
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, FL 33410
Re: City of Okeechobee Firefighters' Retirement System
Actuarial Impact Statement
Dear Scott:
As requested, we are pleased to enclose an Actuarial Impact Statement as of October 1, 2018 to
illustrate the first year impact of the attached proposed Ordinance which amends the Okeechobee
Firefighters' Retirement System (System) as described below.
Background —The System currently does not include cancer diagnoses in the in-line of duty
disability presumptions.
Proposed Ordinance — In compliance with newly adopted Florida Statute Chapter 112.1816, the
following additional provision is added to the System:
➢ As provided and subject to the limitations in Chapter 112.1816, Florida Statutes,
effective July 1, 2019, a Firefighter member who becomes totally and permanently
unable to perform useful and efficient service as a Firefighter due to a diagnosis of
cancer or circumstances that arise out of the treatment of such cancer will be presumed
to be disabled in-line of duty.
Summary of Findings — Please note that the impact of the proposed System change is being shown
on the actuarially determined contribution for the fiscal year ending September 30, 2020 for
illustrative purposes, using the valuation results as of October 1, 2018, the most recent actuarial
valuation. Since the proposed Ordinance will be adopted in fiscal year ending September 30, 2020,
the change is not required to be funded until the fiscal year ending September 30, 2021. The
upcoming actuarial valuation as of October 1, 2019 will show the actuarially determined
contribution for the fiscal year ending September 30, 2021 reflecting the System amendment.
➢ Asa result of the System change, the required employer contribution amount for
Firefighters for the fiscal year ending September 30, 2020 increased by $85, from $104,579,
to $104,664.
Mr. Scott Baur
January 31, 2020
Page Two
➢ As a result of the System change, the Unfunded Actuarial Accrued Liability (UAAL) for
Firefighters decreased by $1,068, from ($339,341) to ($340,409).
➢ As a result of the System change, the funded ratio of the System (actuarial value of assets
divided by actuarial accrued liability) remains unchanged at 108.9%.
Filing Requirements— We have prepared the Actuarial Impact Statement for filing with the State of
Florida. Please note that this Statement must be signed and dated on behalf of the Board of
Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated
Actuarial Impact Statement are generally required to be filed with the State at the following
address:
Mr. Douglas E. Beckendorf, A.S.A.
Bureau of Local Retirement Services
Division of Retirement
Building 8
Post Office Box 9000
Tallahassee, Florida 32315-9000
We understand the State requires funding any increases in costs no later than the fiscal year next
following the effective date of the Ordinance.
Please forward a copy of the Ordinance upon passage to update our files.
Other Considerations — Under Governmental Accounting Standards Board (GASB) Statement
Number 68, we understand the cost / income of benefit changes must be recognized immediately
in pension expense (accounting not funding). Therefore, the pension expense is expected to
increase the first year and then is expected to return to lower levels in fiscal years following initial
recognition of the benefit change.
Actuarial assumptions and methods, financial data, System provisions and member census data —
The actuarial assumptions and methods, financial data and member census data employed for
purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods,
financial data and member census data utilized for the October 1, 2018 Actuarial Valuation of the
System with the following exception:
➢ The proportion of disabilities that are assumed to be service -connected (versus non -service
connected) was increased from 75% to 85%.
The System provisions employed for purposes of our Actuarial Impact Statement are the same
System provisions utilized in the October 1, 2018 Actuarial Valuation of the System with the
exception of the proposed changes described above.
Fr
Mr. Scott Baur
January 31, 2020
Page Three
Risk Assessment— Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic
modeling, and a comparison of the present value of benefits at low-risk discount rates. We are
prepared to perform such assessment to aid in the decision-making process. Please refer to the
October 1, 2018 Actuarial Valuation Report dated April 29, 2019 for additional discussion regarding
the risks associated with measuring the liability and the minimum funding payment.
This Actuarial Impact Statement is intended to describe the estimated future financial effects of the
proposed benefit changes on the System and is not intended as a recommendation in favor of the
benefit changes nor in opposition to the benefit changes.
If all actuarial assumptions are met and if all current and future minimum required contributions
are paid, System assets will be sufficient to pay all System benefits and future contributions are
expected to remain relatively stable as a percent of payroll. System minimum required
contributions are determined in compliance with the requirements of the Florida Protection of
Public Employee Retirement Benefits Act and Firefighters' Retirement Chapter 175 with normal cost
determined using the Aggregate Cost Method.
These calculations are based upon assumptions regarding future events. However, the System's
long term costs will be determined by actual future events, which may differ materially from the
assumptions made. These calculations are also based upon present and proposed System
provisions that are outlined or referenced in this Actuarial Impact Statement.
If you have reason to believe the assumptions used are unreasonable, the System provisions are
incorrectly described or referenced, important System provisions relevant to this Actuarial Impact
Statement are not described or that conditions have changed since the calculations were made, you
should contact the undersigned prior to relying on information in this Actuarial Impact Statement.
If you have reason to believe that the information provided in this Actuarial Impact Statement is
inaccurate, or is in any way incomplete, or if you need further information in order to make an
informed decision on the subject matter of this report, please contact the undersigned prior to
making such decision.
Future actuarial measurements may differ significantly from the current measurements presented
in this report due to such factors as the following: System experience differing from that anticipated
by the economic or demographic assumptions; changes in economic or demographic assumptions;
increases or decreases expected as part of the natural operation of the methodology used for these
measurements (such as the end of an amortization period) and changes in System provisions or
applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the
potential range of such future measurements.
Mr. Scott Baur
January 31, 2020
Page Four
This Actuarial Impact Statement should not be relied on for any purpose other than the purpose
described in the primary communication. Determinations of the financial results associated with
the benefits described in this report in a manner other than the intended purpose may produce
significantly different results.
This Actuarial Impact Statement has been prepared by actuaries who have substantial experience
valuing public employee retirement systems. To the best of our knowledge the information
contained in this report is accurate and fairly presents the actuarial position of the System as of the
valuation date. All calculations have been made in conformity with generally accepted actuarial
principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards
Board and with applicable statutes.
This Actuarial Impact Statement may be provided to parties other than the Board only in its entirety
and only with the permission of an approved representative of the Board.
The signing actuaries are independent of the System sponsor.
The undersigned are Members of the American Academy of Actuaries and meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.
If you should have any question concerning the above or if we may be of further assistance with this
matter, please do not hesitate to contact us.
Sincerest regards,
//)&d -,d6
Shelly L. Jones, A.S.A., E.A., M.A.A.A, F.C.A.
Consultant and Actuary
Enclosures
rM
n l� 40M"-dz&—
Jennifer M. Borregard, E.A., M.A.A.A., F.C.A.
Consultant and Actuary
Actuarial Impact Statement as of October 1 2018
A. Description of Proposed Amendment
In compliance with newly adopted Florida Statute Chapter 112.1816, the following additional provision is added to
the System:
(1) As provided and subject to the limitations in Chapter 112.1816, Florida Statutes, effective July 1, 2019, a
Firefighter member who becomes totally and permanently unable to perform useful and efficient service as a
Firefighter due to a diagnosis of cancer or circumstances that arise out of the treatment of such cancer will be
presumed to be disabled in-line of duty.
B. An estimate of the cost implementing this amendment is attached.
C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14,
Article X of the Statement Constitution.
Chairman, Pension Board Date
.GRS
City of Okeechobee Firefighters' Retirement System
Actuarial Impact Statement as of October. 1 2018
A. Participant Data
1. Active participants
2. Retired, disabled and beneficiaries receiving benefits
(including DROPS)
3. Terminated vested participants
4. Annual payroll of active participants
5. Annual benefits payable to those currently
receiving benefits (including DROPs)
B. Assets
1. Smoothed actuarial value
2. Market value
Valuation
10/01/2018
12
5
1
$ 512,885 $
$ 153,183 $
$ 4,146,331 $
$ 4,248,914 $
C. Liabilities
1.
Actuarial present value of future expected benefit
5,747,525
payments for active members
21.439%
a. Retirement benefits $
109,957
b. Vesting benefits
c. Disability benefits
d. Death benefits
e. Total $
2.
Actuarial present value of future expected benefit payments
for terminated vested members and miscellaneous $
3.
Actuarial present value of future expected benefit
payments for members currently receiving benefits
a. Service retired including DROPs $
b. Disability retired
c. Beneficiaries
d. Total $
4.
Share Plan Liability $
S.
Total actuarial present value of future expected
benefit payments $
6.
Actuarial accrued liabilities (Entry Age Normal) $
7. Unfunded actuarial accrued liabilities (Entry Age Normal) $
D. Normal Cost
1. Present Value of Future Normal Costs (C.5. - B.1.)
2. Present Value of Future Salaries
3. Normal Cost Accrual Rate (D.1. / D.2.)
4. Normal Cost (A.4. x D.3.)
3,197,176 $
167,910
96,391
13,565
Actuarial Impact
Statement
10/01/2018
12
5
1
512,885
153,183
4,146,331
4,248,914
3,197,176
167,892
97,285
13,565
3,475,042 $ 3,475,918
108,521 $ 108,521
1,476,399 $
0
315,222
1,791,621 $
2,496 $
5,377,680 $
3,806,990 $
(339,341) $
1,476,399
0
315,222
1,791,621
2,496
5,378,556
3,805,922
(340,409)
$ 1,231,349 $
1,232,225
$ 5,747,525 $
5,747,525
21.424%
21.439%
$ 109,880 $
109,957
G RS
,, City of Okeechobee Firefighters' Retirement System 1
Actuarial Impact Statement as of October 1, 2018
E. Statement of Accumulated Plan Benefits
1. Actuarial present value of accumulated vested benefits
a. Participants currently receiving benefits
b. Terminated vested members and miscellaneous
(including share plan liability)
c. Other participants
d. Total
2. Actuarial present value of accumulated non -
vested plan benefits
3. Total actuarial present value of accumulated
plan benefits
F. Pension Cost
1. Total normal cost
2. Estimated administrative expenses
3. Interest adjustment
4. Total required contributions
5. Item 4 as a percentage of payroll
6. Estimated employee contributions
7. Item 6 as a percentage of payroll
8. Expected State contribution
9. Item 8 as a percentage of payroll
10. Net amount payable by City
11. Item 10 as a percentage of payroll
G. Disclosure of Following Items:
1. Actuarial present value of future salaries
- attained age
2. Actuarial present value of future employee
contributions - attained age
3. Actuarial present value of future contributions
from other sources
4. Amount of active members' accumulated
contributions
5. Actuarial present value of future salaries and
future benefits at entry age
6. Actuarial present value of future employee
contributions at entry age
Valuation
10/01/2018
$ 1,791,621 $
111,017
1,221,859 _
$ 3,124,497 $
58,730
$ 3,183,227 $
109,880 $
59,878
13,258
Actuarial Impact
Statement
10/01/2018
1,791,621
111,017
1,222,320
3,124,958
59,827
3,184,785
109,957
59,878
13,266
$ 183,016
$
183,101
35.7%
N/A
35.7
$ 25,644
$
25,644
5.0%
N/A
5.0
$ 52,793
$
52,793
10.3%
10.3%
$ 104,579
$
104,664
20.4%
20.4
$ 5,747,525 $
5,747,525
$ 287,376 $
287,376
N/A
N/A
$ 275,819 $
275,819
N/A
N/A
N/A
N/A
City of Okeechobee Firefighters' Retirement System 2
Actuarial Impact Statement as of October 1, 2018
This Actuarial Valuation and/or cost determination was prepared and completed by us or under our
direct supervision, and we acknowledge responsibility for the results. To the best of our knowledge,
the results are complete and accurate, and in our 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 System and/or paid from the System's assets for which
liabilities or current costs have not been established or otherwise provided for in the valuation. All
known events or trends which may require material increase in System costs or required contribution
rates have been taken into account in the valuation.
1nt,r-,-Ub jzr�
Shelly L. Jones, A.S.A, E.A.
Enrollment Number: 17-08684
Date: January 31, 2020
Jennifer M. Borregard, E.A.
Enrollment Number: 17-07624
City of Okeechobee Firefighters' Retirement System 3
Outline of Principal Provisions of the Retirement System
A. Effective Date:
January 1, 1972. Most recently amended by Ordinance No. 1133 adopted February 2, 2016.
B. Eligibility:
All actively employed full time Firefighters of the City are eligible on date of employment;
Participation is mandatory.
C. Contributions:
Employee: 5.0% of Salary.
State: Premium Tax Revenue.
City: Balance required to maintain System on sound actuarial basis.
D. Credited Service:
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.
E. Salary:
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.
F. Average Final Compensation:
Average Final Compensation (AFC) is determined by the average basic salary over the highest 5 years
of the last 10.
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.
.fa��
' City of Okeechobee Firefighters' Retirement System 4
Outline of Principal Provisions of the Retirement System
H. Early Retirement:
1. Eligibility:
Attainment of age 50 with completion of 10 years of Credited Service.
2. Benefit:
Benefit accrued to date of retirement, reduced by 3% for each year early retirement date precedes age
55.
I. Delayed Retirement:
Computed the same as set forth under Normal Retirement, based upon AFC and Credited Service as of
delayed retirement date.
J. Disability Retirement:
1. Service Incurred:
Accrued benefit, but not less than 42% of AFC.
2. Non -Service Incurred:
a. Eligibility: 5 or more years of Credited Service; totally and permanently disabled.
b. Benefit: The greatest of:
(i) Accrued benefit
(ii) 2% of AFC times Credited Service
(iii) 25% of AFC
K. Pre -Retirement Death Benefit:
a. Not Vested: Refund of accumulated contributions.
b. Vested but Not Eligible Greater of (a) 50% of the present value of vested accrued benefit or (b)
for Early or Normal refund of accumulated contributions.
Retirement:
c. Eligible for Early or Greater of (a) accrued benefit, determined as though the deceased had
Normal Retirement: 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.
Q;� City of Okeechobee Firefighters' Retirement System 5
Outline of Principal Provisions of the Retirement System
L. Termination Benefits:
1. Eligibility:
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.
2. Benefit:
Accrued benefit based upon credited service and AFC as of date of termination, payable at age 55.
M. Normal Form of Retirement Income:
Monthly benefit payable for ten (10) years certain and life thereafter.
N. Optional Forms of Retirement Income:
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.
0. Deferred Retirement Option Program (DROP)
1. Eligibility:
Member must be eligible for Normal Retirement.
2. Benefit:
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.
4;;� City of Okeechobee Firefighters' Retirement System 6
Outline of Principal Provisions of the Retirement System
P. Cost of Living Adjustment (COLA)
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%.
Q. Changes Since Previous Valuation
None.
GRS
City of Okeechobee Firefighters' Retirement System 7
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
A. Mortality
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.
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.
Sample
Ages
(2038)
Pre -retirement
Future Life
Expectancy (Years)
Men Women
Post-retirement
Future Life
Expectancy (Years)
Men Women
55
32.06
Pre -retirement
Post-retirement
Sample
60
Future Life
Future Life
Ages
Expectancy (Years)
Expectancy (Years)
(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)
Pre -retirement
Future Life
Expectancy (Years)
Men Women
Post-retirement
Future Life
Expectancy (Years)
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
7.0% (net of investment expenses), compounded annually - includes inflation at 2.5%.
C. Allowances for Expenses or Contingencies
Actual administrative expenses incurred during the prior System year.
4;v
City of Okeechobee Firefighters' Retirement System 8
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
D. Salary Increase Factors
Current salary is assumed to increase at a rate of 7.0% - includes wage inflation of 3.5%.
E. Disability Rates
Disability rates for males and for females were used in accordance with the following illustrative
example.
85% of disabilities are assumed to be service incurred - 15% non -service incurred.
F. _Employee Withdrawal Rates
Withdrawal rates for males and for females were used in accordance with the following illustrative
example.
Age
Disability Rates
Age
Per 100 Employees
20
0.14
30
0.18
40
0.30
50
1.00
85% of disabilities are assumed to be service incurred - 15% non -service incurred.
F. _Employee Withdrawal Rates
Withdrawal rates for males and for females were used in accordance with the following illustrative
example.
Age
Withdrawal Rate
20
6.0%
30
5.0%
40
2.6%
50
0.8%
60
0.2%
G. Rates of Retirement
100% at normal retirement age.
All active members on the valuation date are assumed to have a minimum of one year of future service.
jrGR'S
City of Okeechobee Firefighters' Retirement System 9
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
H. Cost Method
Normal Retirement, Termination Disability, and Death Benefits: Aggregate
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.
I. Asset Valuation Method
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.
J. Changes Since Previous Valuation
75% of disabilities were assumed to be service incurred - 25% non -service incurred.
GRS
City of Okeechobee Firefighters' Retirement System 10