HomeMy WebLinkAboutLetter - Actuarial ReportStanley,
Holcombe
& Associates, Inc.
June 16, 2011
Board of Trustees
City of Miami Fire Fighters' and
Police Officers' Retirement Trust
1895SW3Avenue
Miami, FL 33129-1456
nyhart
October 1, 2010 Actuarial Report
Dear Board Members:
Enclosed is our report on the actuarial valuation of the City of Miami Fire Fighters' and Police
Officers' Retirement Trust as of October 1, 2010, for the fiscal year beginning October 1, 2011.
The report is based upon the terms of Ordinance No. 10002-and the Amended Final Judgment in the
matter of Gates v. City of Miami, as well as ordinance 13202, as applicable. This report reflects 10%
member contributions from Fire Fighters as well as the 70 point retirement eligibility requirement for •
Fire Fighters who had not attained 68 points as of September 30, 2010.
The City contribution requirement for the 2011/2012 fiscal year is $42,353,775, compared to
$65,551,615 for the 2010/2011 fiscal year.
When expressed as a percentage of total payroll (for active members and members in DROP), the City
contribution rate decreased from 44.18% as of October 1, 2009 to 29.89% as of October 1, 2010. The
percentages of total payroll reflect the hypothetical impact on funding if there were no DROP, since
members who are presently in DROP could well be more likely be retired and replaced with active
members. The ordinance and State law do not permit funding after members enter DROP.
Respectfully submitted,
/tL&jf
Randall L. Stanley, FSA,
Actuary
RLS/FC/di
MIAMIO1B
Enclosures (20)
Frans Christ, FSA, MAAA, EA
Actuary
2000 RiverEdge Parkway/Suite 540 • Atlanta, GA 30328
(770) 933-1933 • Fax (770) 933-8918 6 www.stanleyholcombe.com