HomeMy WebLinkAboutSubmittal-Commissioner Carollo-Actuarial Valuation Report for GESE PensionSubmitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
Cavanaugh Macdonald
CONSULTING, LLC
The experience urd dedicating, you deserve
CITY OF MIAMI GENERAL EMPLOYEES'
AND SANITATION EMPLOYEES'
RETIREMENT TRUST
Actuarial Valuation Report
as of
October 1, 2014
www.CavMacConsulting.com
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19--t100/-r' eCiY bESE Ptasi orn
Submitted into the public
Record for item(s) D3_1
on 02/26/2015, City Clerk
TABLE OF CONTENTS
Page
Number
Letter to the Board of Trustees 1
Liabilities
Table I Summary of Valuation Results 4
Table II Gain and Loss Analysis 5
Table III Unfunded Liability Bases 6
Table IV Accounting Disclosures (GASB 25/27) 7
Table Va Present Value of Accrued Benefits (SB 1128) 9
Table Vb Present Value of Accrued Benefits (Plan Assumptions) 10
Table Vc Progress of Funding 11
Table VI Information Req. by Florida Statute (Chap.112) 12
Assets
Table VIIa Development of Actuarial Value of Assets 18
Table VIIb Assets of the Fund 19
Table VIIIa Historical Asset Information 20
Table VIIIb Revenues By Source and Expenses by Type 21
Table [Xa Contributions vs. Fund Payouts 22
Table IXb Historical Contribution Rate 23
Data
Table Xa Summary of Member Data 24
Table Xb Data Reconciliation 25
Table Xc Active Data 26
Table Xd Age -Service Salary Table 27
Table Xe Retiree Data 28
Table Xf Projected Benefit Payments 29
Table Xg Comprehensive Annual Financial Report Information
Schedule of Active Data, Schedule of Retiree Data, Solvency Test
& Analysis of Financial Experience 30
Assumptions
Table XIa Actuarial Assumptions and Methods 33
Table XIb Assumption and Method Changes 38
Plan Provisions
Table XIIa Plan Provisions 48
Table XIIb Plan Amendments 56
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
Cavanaugh Macdonald
CONSULTING,LLC
The experience and dedication you deserve
January 22, 2015
Board of Trustees
City of Miami General Employees' and
Sanitation Employees' Retirement Trust
2901 Bridgeport Avenue
Coconut Grove, Florida 33133
Dear Members of the Board:
This report presents the results of the actuarial valuation of the City of Miami General Employees' and
Sanitation Employees' Retirement Trust for the plan year beginning October 1, 2014. The purpose of this
report is to provide a summary of the funded status of the plan as of October 1, 2014 and to determine the
minimum required contribution amount for the 2015/2016 fiscal year. In addition, this report provides a
record of any plan amendments or other plan changes affecting the financial status of the fund. Our
calculations were prepared based on member data and financial information provided by the Retirement
Trust office.
Summary of Valuation Results
Currently, the trust receives contributions from the City of Miami and from active members. The amount
of the City contributions varies from year to year, while the member contributions are equal to 10% of
payroll. After taking into account expected member contributions, the total required contribution from the
City is $32,881,500, or 45.72% of covered payroll, for the 2016 fiscal year payable on October 1, 2015.
In comparison, the required contribution for the 2015 fiscal year was $33,036,318, or 49.78% of covered
payroll. The change in City contribution reflects a decrease in cost due to an investment gain during the
year partially offset by a decrease to the interest rate assumption. The impact of assumption changes was
to increase the City's contribution requirement for fiscal year 2015 by $619,392.
The City Ordinance requires that, as a minimum, all fiscal year contributions made by the City to the
Retirement Trust shall be made quarterly, in equal payments, on the first day of each quarter. On this
basis, the total required City contribution for the 2015/2016 fiscal year is $33,801,748, and the City is
required to make minimum quarterly contributions of $8,450,437 beginning on October 1, 2015.
The valuation is based on a series of actuarial assumptions, including an interest (actuarial asset return)
rate of 7.70% per year and annual pay increases ranging between 4.00% and 8.75%. Actuarial gains and
losses result when the actual experience of the plan (such as asset return, pay increases, turnover, deaths,
etc.) is different from that expected by the actuarial assumptions.
3550 Busbee Pkwy, Suite 250, Kennesaw, GA 30144
Phone (678) 388-1700 • Fax (678) 388-1730
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Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
The plan's unfunded liability was projected to be $302,387,248 as of October 1, 2014, taking into account
expected contributions from the City of $33,036,318 based on the October 1, 2013 valuation. The actual
unfunded liability is $289,061,972. The decrease of ($13,325,276) in the unfunded liability is primarily
due to an actuarial asset return of 10.46% compared to the expected 7.80% return partially offset by
reducing the interest rate assumption to 7.70%. A summary of the amortization payments is presented in
Table III.
A summary of the results of the valuation and the contribution requirements is presented in Table I.
Disclosure information required by GASB statements 25 and 27 can be found in Tables IV, Va, and Vb.
The disclosure information required by Chapter 112, Florida Statutes, is presented in Table VI. Tables
VIIa through IXb provide information about the fund's assets and historical contributions. In particular,
Table VIIa provides an asset reconciliation between October 1, 2013 and October 1, 2014 and calculation
of the actuarial value of assets. Table VIIb provides a breakdown of the fund assets by investment type
and Tables VIIIa, VIIIb, IXa and 1Xb provide a historical record of the growth, expenses, revenues, annual
returns and contributions of the fund. Tables Xa through Xf provide a variety of useful information
concerning the participant population. Table Xg provides information to be included in the
Comprehensive Annual Financial Report.
Tables XI and XII provide a description of the actuarial assumptions and plan provisions reflected in the
valuation. Reflected in this valuation for the first time is one assumption change from the prior valuation.
The interest rate assumption was lowered from 7.80% to 7.70%. A phased -in interest assumption will be
utilized for future valuations, which lowers the assumed interest rate by 0.1 % for each valuation to an
ultimate rate of 7.60% which will be reflected in the October 1, 2015 valuation.
This actuarial valuation was prepared and completed by me or under my direct supervision and I
acknowledge responsibility for the results. To the best of my knowledge, the results are complete and
accurate and, in my 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 plan and/or paid from the plan's assets for which liabilities or current costs have not been
established or otherwise taken into account in the valuation. All known events or trends which may require
a material increase in plan costs or required contribution rates have been taken into account in the
valuation.
This is to certify that the independent consulting actuary is a member of the American Academy of
Actuaries and has experience in performing valuations for public retirement systems, that the valuation
was prepared in accordance with principles of practice prescribed by the Actuarial Standards Board, and
that the actuarial calculations were performed by qualified actuaries in accordance with accepted actuarial
procedures, based on the current provisions of the Retirement Trust and on actuarial assumptions that are
internally consistent and reasonably based on the actual experience of the Retirement Trust.
Future actuarial results may differ significantly from the current results presented in this report due to such
factors as the following: plan 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 or additional cost or contribution requirements based on the plan's funded status); and
changes in plan provisions or applicable law. Since the potential impact of such factors is outside the
scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
The undersigned is a member of the American Academy of Actuaries and meets the Qualification
Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.
Respectfully submitted,
Jose I. Fernandez, ASA, EA, FCA, MAAA
Principal and Consulting Actuary
Enrolled Actuary No. 14-4461
JIF/mrt
S:\Miami GESE\Valuation\IO-I-?014\Report\Miami GESE Valuation Report.Docx
Micki R. Taylor, ASA, EA, FCA, MAAA
Senior Actuary
Enrolled Actuary No. 14-5975
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
SUMMARY OF VALUATION RESULTS
TABLE I
As of
October 1, 2013
As of
October 1, 2014
1. Number of Members
a. Active Members 1,288 1,376
b. Inactive Members (duecontnbs. refund) 139 142
c. Deferred Vested Members 23 28
d. Retired Members:
i. Non -disabled 1,636 1,595
ii. Disabled 57 55
iii. Beneficiaries 380 381
iv. Sub -total 2,073 2,031
e. Total Members 3,523 3,577
2. Total Annual Compensation $64,437,132 $69,829,851
3. Total Covered Payroll $66,370,246 $71,924,747
4. Total Annual Benefit Payments $72,294,380 $71,994,749
5. Liabilities, Assets and Normal Cost
a. Present Value of Future Benefits $932,397,016 $947,565,101
b. Actuarial Value of Assets $556,570,561 $576,796,227
c. Actuarial Accrued Liability $865,911,262 $865,858,199
d. PV of Future Member Contributions $64,575,235 $69,159,078
e. PV of Future Normal Costs $1,910,519 $12,547,824
f. Present Value of Future Payroll $645,752,353 $691,590,784
g. Employer Normal Cost Rate 2.57% 2.60%
h. Individual Entry Age Employer Normal Cost $1,704,290 $1,872,272
6. Unfunded Liability
a. Actuarial Accrued Liability $865,911,262 $865,858,199
b. Actuarial Value of Assets $556,570,561 $576,796,227
c. Unfunded Liability $309,340,701 $289,061,972
(item 6.a. minus 6.b., not less than zero)
2014/2015 Fiscal 2015/2016 Fiscal
7. Total Required Minimum City Contribution Year Year
a. Normal Cost (with custodial expenses) $1,954,290 $2,122,272
b. Amortization of Unfunded Liability $31,082,028 $30,759,228
c. Minimum Required Contribution $33,036,318 $32,881,500
As a percentage of covered payroll 49.78% 45.72%
8. Total Recommended Contribution
Payable Quarterly $33,972,537 $33,801,748
Quarterly $8,493,134 $8,450,437
On October 1, 2014 October 1, 2015
Fiscal Year 2015 2016
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 4
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
GAIN AND LOSS ANALYSIS
TABLE II
1. Actual Unfunded Accrued Liability as of October 1, 2013 $309,340,701
2. Plan sponsor normal cost for this plan year $1,812,885
3. Interest on 1. and 2. $24,269,980
4. Plan sponsor contribution for this plan year (including amounts expected to be paid) ($30,710,096)
5. Interest on 4. ($1,197,694)
6. Changes due to a. + b. + c. + d.
a. assumptions $7,960,612
b. plan amendments $0
c. funding method $0
d actuarial (gain)/bss ($22,414,416)
7. Total current unfunded actuarial accrued liability 1. + 2. + 3. + 4. + 5. + 6.
8. Items Affecting Calculation of Accrued Liability
a. Plan provisions reflected in the unfunded accrued liability (see Table XIIa on page 48)
b. Plan amendments reflected in item 4.c. above (see Table XIIb on page 56)
c. Actuarial assumptions and methods used to determine actuarial accrued liability and
normal cost (see Table XIa on page 33)
d. Changes in actuarial assumptions and methods reflected in items 4.a. and 4.b. above
(see Table XIb on page 38)
($14,453,804)
$289,061,972
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 5
UNFUNDED LIABILITY BASES
TABLE III
Outstanding 2013/2014 Outstanding 2014/2015 fears
Date Original Balance as of Amortization Balance as of Amortization Remaining as of
Established Amount October 1, 2013 Payment October 1, 2014 Payment October 1, 2014
10/1/2002 Actuarial Loss $65,123,335 $33,660,539 $4,804,236 $31,481,826 $4,928,820 8
10/1/2002 Assumption Change ($8,586,760) ($6,404,110) ($651,979) ($6,251,652) ($667,578) 13
10/1/2003 Actuarial Loss 551,257,531 $30,395,032 $3,987,751 $28,778,093 54,089,505 9
10/1/2003 Assumption Change 521,280,291 $16,897,822 $1,638,521 $16,577,331 $1,677,103 14
10/1/2004 Actuarial Loss $23,177,230 $15,405,923 $1,876,402 $14,731,183 51,923,515 10
10/12005 Actuarial Loss $18,410,024 513,477,466 51,536,346 $12,992,362 51,574,305 11
10/12006 Actuarial Gain ($2,191,548) ($1,742,785) ($187,206) ($1,691,516) ($191,758) 12
10/1/2006 Assumption and Method Change ($35,017,429) ($32,231,680) ($2,765,116) ($31,980,635) ($2,827,190) 17
10/1/2007 Actuarial Gain ($636,143) ($543,487) ($55,330) ($530,549) ($56,654) 13
10/1/2008 Method Change' $404,497 $400,929 $32,189 $400,012 $32,889 19
10/1/2008 Method Change' (531,590,204) ($28,734,942) ($2,786,324) ($28,189,943) ($2,851,933) 14
10/1/2008 Actuarial Loss $49,292,225 $44,836,977 $4,347,681 $43,986,580 $4,450,054 14
10/1/2009 Assumption Change ($13,505,492) ($12,732,084) ($1,180,942) ($12,544,245) ($1208,309) 15
10/1/2009 Plan Amendment (567,211,205) (563,362,275) ($5,877,057) ($62,427,475) (56,013,250) 15
10/1/2009 Actuarial Loss $105,604,767 599,557,184 $9234,252 $98,088,392 $9,448,244 15
10/1/2010 Actuarial Loss $61,039,131 $59248,499 $5,276,439 558,593,443 $5,396,783 16
10/1/2011 Actuarial Loss $63,298,488 $62,907,639 55,396,769 $62,417,666 55,517,921 17
10/1/2011 Plan/Assumption Changes $3,784,141 $3,760,775 $322,632 $3,731,483 $329,875 17
10/1/2012 Actuarial Loss 549,256,529 $49,160,110 54,074,554 $48,920,045 $4,164,588 18
10/1/2012 Assumption Changes $7,834,245 $7,818,909 $648,057 $7,780,727 $662,377 18
10/1/2013 Actuarial Loss $9,605,158 $9,605,158 $771,154 59,583,207 $787,927 19
10/1/2013 Assumption Changes $7,959,102 $7,959,102 $638,999 $7,940,913 $652,899 19
10/1/2014 Actuarial Gain* ($21,285,888) $0 $0 ($21,285,888) ($1,694,697) 20
10/1/2014 Assumption Changes $7,960,612 $0 $0 $7,960,612 $633,792 20
S365,262,637 S309,340,701 S31,082,028 S289,061,972 S30,759,228
Date
Projected
Unfunded
Liability
October 1, 2014 $289,061,972
October 1, 2015 5280,560,514
October 1,2016 $270,379,604
October 1,2017 $258,388,926
October 1, 2034 $0
'Reflects actuarial gain due to correction in development of Actuarial Value of Assets and an actuarial loss due to update in valuation software.
RReflects method change of amortization of unfunded liability from level dollar to level percent of pay and change in asset smoothing method from 3 to 5 year smoothing.
*The total experience loss (gain) for the 2013/2014 plan year of $(22,414,416) is adjusted for contribution timing differences adjusted for interest equal to $1,128,528.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST
PAGE 6
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ACCOUNTING DISCLOSURES (GASB 25/27)
TABLE IV
1. Number of Plan Members as of 10/1:
a. Retirees and beneficiaries
receiving benefits
b. Terminated plan members entitled
to but not yet receiving benefits
c. Active plan members
d. Total
2. Development of Annual Required Contribution (ARC):
a. Valuation date
b Employer normal cost:
i Total normal cost
ii. Employee contributions
iii Employer normal cost
c. Amortization of UAAL:
i PV of future benefits
ii. PV of future employer normal costs
iii PV of future employee contributions
iv. Actuarial accrued liability (AAL)
v. Actuarial value of assets
vi. Unfunded AAL (UAAL)
vii. Amortization of UAAL (I)
d. Amortization of NPO
e. ARC (Item 2.b.iii. + Item 2.c.vii. + Item 2.d.)
3. Annual Pension Cost and Net Pension Obligation (NPO):
a. ARC
b. Interest on NPO
c. Adjustment to ARC
d. Annual Pension Cost
e. Contributions made
f. Increase(decrease) in NPO
g. NPO (beginning of year)
h. NPO (end of year)
For the Fiscal Year Ended
9/30/2014 9/30/2015
2014
2,031
170
1,376
3,577
10/01/2012
8,158,164 $
(6,439,120) "'
1,719,044
$ 922,216,357
(622,648)
(63,344,768)
$ 858,248,941
(560,966,742)
10/01/2013
8,591,315
(6,637,025) (3'
1,954,290
$ 932,397,016
(1,910,519)
(64,575,235)
$ 865,911,262
(556,570,561)
$ 297,282,199 $
28,991,052
0
$ 30,710,096 $
309,340,701
31,082,028
0
33,036,318
$ 30,710,096 $
0
0
33,036,318
0
0
$ 30,710,096 $
(30,710,096)
0
0
$ 0
(q As required by Florida Statutes, the unfunded actuarial accrued liability is amortized within a 30 fiscal year period.
('-' Expected employee contributions based on total annual compensation of $62,515,723 as of October 1, 2012.
(3) Expected employee contributions based on total annual compensation of $64,437,132 as of October 1, 2013.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST
33,036,318
PAGE 7
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ACCOUNTING DISCLOSURES (GASB 25/27)
TABLE IV
(CONTINUED)
4. Schedule of Employer Contributions
Annual
Year Ended
Required
Contribution
Percentage
(Excess)/
September30
Contribution
Made
Contributed
Deficiency
2010
24,037,093
24,037,093
100.00%
0
2011
20,232,513
20,232,513
100.00%
0
2012
25,973,331
25,973,331
100.00%
0
2013
25,568,193
25,568,193
100.00%
0
2014
30,710,096
30,710,096
100.00%
0
5. Schedule of Funding Progress
actuarial
UAAL
Actuarial
Actuarial
Accrued
Unfunded
as % of
Valuation
Value of
Liability'
AAL
Funded
Annual
Annual
Date
.Assets
(AAL)
(UAAL)
Ratio
Payroll
Payroll
(a)
(b)
(b) - (a)
(a)/(b)
(c)
!(b) - (a)]/(c)
10/1/2010
652,999,926
840,871,136
187,871,210
77.66%
68,762,827
273.22%
10/1/2011
600,678,610
845,125,040
244,446,430
71.08%
63,601,380
384.34%
10/1/2012
560,966,742
858,248,941
297,282,199
65.36%
62,515,723
475.53%
10/1/2013
556,570,561
865,911,262
309,340,701
64.28%
64,437,132
480.07%
10/1/2014
576,796,227
865,858,199
289,061,972
66.62%
69,829,851
413.95%
6. Additional Information
Valuation date to determine ARC FY 2015:
Actuarial cost method:
Amortization method:
Remaining amortization period:
Equivalent single amortization period:
Asset valuation method:
Actuarial assumptions:
Investment rate of return*
Projected salary increases*
Payroll Growth
*Includes inflation at
Cost of living adjustments
October 1, 2013
Modified Entry Age Normal
Level percent, closed
9 to 20 years
14 years
5-Year Smoothed Market
7.80%
4% to 8.75%
3.00%
3.50%
4% per year, with $54 per year minimum and $400 per
year maximum.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 8
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PRESENT VALUE OF ACCRUED BENEFITS (SB 1128)
TABLE Va
Shown below is the development of the Total Present Value of Accrued Benefits for the Plan. The calculations
were performed in accordance with Chapter 2011-216 Laws of Florida (SB 1128) which requires the calculation
of the present value of accrued benefits be calculated using the Florida Retirement System's assumed rate of return
of 7.75% in order to promote comparability of actuarial data between local plans.
1. Actuarial Present Value of Accrued Benefits*
As of As of
10/1/2013 10/1/2014
a. Vested Accrued Benefits:
i. Retired members, beneficiaries,
and deferred vested members $742,535,906 $732,424,447
ii. Active and inactive members* $66,506,675 $73,673,676
w. Sub -total $809,042,581 $806,098,123
b. Non -vested Accrued Benefits $10,545,072 $9.603,394
c. Total Benefits $819,587,653 $815,701,517
2. Statement of Changes in Total Actuarial Present Value of All Accrued Benefits
a. Actuarial Present Value as of October 1, 2013 $819,587,653
b. Increase (Decrease) During 2013/2014 Plan Year Attributable to:
i. Interest $60,659,413
a Benefits accumulated/experience $9,225,546
di. Benefits paid ($73,771,095)
iv. Plan amendments $0
v. Changes in actuarial assumptions or methods $0
vi. Net increase (decrease) ($3,886,136)
c. Actuarial Present Value as of October 1, 2014 $815,701,517
3. Items Affecting Calculation of Actuarial Present Value of Accrued Benefits
a. Plan provisions reflected in the accrued benefits (see Table XIIa on page 48)
b. Plan amendments reflected in item 2.b.iv. above (see Table XI1b on page 56)
c. Actuarial assumptions and methods used to determine present values
(see Table XIa on page 33)
d. Changes in actuarial assumptions and methods reflected in item 2.b.v. above
(see Table XIb on page 38)
* The actuarial present value of vested benefits for active and inactive members includes nonforfeitable accumulated
member contributions in the amount of $70, 317, 889 as of October 1, 2013 and $76,301,336 as of October 1, 2014.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 9
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PRESENT VALUE OF ACCRUED BENEFITS (PLAN ASSUMPTIONS)
TABLE Vb
Shown below is the development of the Total Present Value of Accrued Benefits for the Plan. The calculations
were performed using the Plan's discount rate of 7.7% which was adopted in May 2012 and first used in the
October 1, 2014 valuation.
1. Actuarial Present Value of Accrued Benefits*
As of As of
10/1/2013 10/1/2014
a. Vested Accrued Benefits:
i. Retired members, beneficiaries,
and deferred vested members $739,487,758 $735,433,118
ii. Active and inactive members* $65,970,939 $74,266,580
iii. Sub -total $805,458,697 $809,699,698
b. Non -vested Accrued Benefits $10,446,745 $9,682,660
c. Total Benefits $815,905,442 $819,382,358
2. Statement of Changes in Total Actuarial Present Value of All Accrued Benefits
a. Actuarial Present Value as of October I, 2013 (7.8% interest) $815,905,442
b. Increase (Decrease) During 2013/2014 Plan Year Attributable to:
i Interest $60,763,552
ii. Benefits accumulated/experience $9,153,783
iii. Benefits paid ($73,771,095)
iv. Plan amendments $0
v. Changes in actuarial assumptions or methods $7,330,676
vi. Net increase (decrease) $3,476,916
c. Actuarial Present Value as of October 1, 2014 (7.7% interest) $819.382,358
3. Items Affecting Calculation of Actuarial Present Value of Accrued Benefits
a. Plan provisions reflected in the accrued benefits (see Table XIIa on page 48)
b. Plan amendments reflected in item 2.b.iv. above (see Table XIIb on page 56)
c. Actuarial assumptions and methods used to determine present values
(see Table XIa on page 33)
d. Changes in actuarial assumptions and methods reflected in item 2.b.v. above
(see Table XIb on page 38)
* The actuarial present value of vested benefits for active and inactive members includes nonforfeitable accumulated
member contributions in the amount of $70,317, 889 as of October 1, 2013 and $76,301,336 as of October 1, 2014.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 10
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PROGRESS OF FUNDING TABLE VC
®
Year Interest Rate Present Value Market Value Funded
Ending 9/30 Assumption of Accrued Benefits* of Assets Ratio
2004 8.10% $605,934,834 $546,454,226 90.20%
2005 8.10% $647,824,031 $586,943,151 90.60%
2006 8.10% $650,607,217 $623,992,356 95.90%
2007 8.10% $683,690,757 $694,302,333 101.60%
2008 8.10% $714,893,783 $576,492,500 80.64%
2009 8.10% $742,076,105 $538,012,201 72.50%
2010 8.10% $800,285,084 $553,797,518 69.20%
2011 8.00% $805,349,932 $517,904,877 64.31%
2012 7.90% $813,986,821 $566,197,533 69.56%
2013 7.80% $815,905,442 $590,384,170 72.36%
2014 7.70% $819,382,358 $619,561,295 75.61%
*The cost method used for determining the Present Value of Accrued Benefits is Unit Credit. Calculations are based on current
service and the current salaries as of the valuation date. The Present Value of Accrued Benefits is defined by participants'
accumulated plan benefits as those future benefit payments that are attributable under the plan's provisions to employees' service
rendered to the benefit information date. Their measurement is primarily based on employees' history of pay and service and
other appropriate factors as of that date. Future salary changes are not considered. Future years of service are considered only
in determining employees' expected eligibility for particular types of benefits, for example, early retirement, death, and disability
benefits. To measure their actuarial present value, assumptions are used to adjust those accumulated plan benefits to reflect the
time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death,
disability, withdrawal, or retirement) between the benefit information date and the expected date of payment. An assumption of
an ongoing plan underlies those assumptions.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 11
Submitted into the public
Record for item(s) D3.1
on 02/26/2015. City Clerk
INFORMATION REQ. BY FLORIDA STATUTE (CHAPTER 112)
TABLE VI
After Assumption Change Actuarial Valuation prepared as of:
October 1, 2013 October 1, 2014
1. Participant Data
a. Active members:
i Number
il. Total annual payroll
iii. Estimated covered payroll
1,288 1,376
$64,437,132 $69,829,851
$66,370,246 $71,924,747
b. Retired members (other than disableds):
i Number 1,636 1,595
ii. Total annualized benefit $65,510,783 $64,943,492
c. Beneficiaries receiving benefits:
i. Number 380 381
ii. Total annualized benefit $5,393.877 $5,685,377
d. Disabled members receiving benefits:
i Number 57 55
ii. Total annualized benefit $1,389,720 $1,365,880
e. Terminated vested and inactive members:
i Number 162 170
ii. Total annualized benefit $613,566 $847,500
2. Assets
a. Actuarial value of assets $556,570,561 $576,796,227
b. Market value of assets $590,384,170 $619,561,295
3. Liabilities
a. Present value of all future expected benefit payments:
i Active and inactive members:
Retirement benefits $166,442,712 $184,285,311
Vesting benefits $15,386,588 $16,170,078
Disability benefits $1,489,431 $1,536,470
Death benefits $2,830,670 $3,140,060
Return of contributions $6,759,857 $7,000,064
Total $192,909,258 $212,131,983
ii. Terminated vested members $4,622,548 $5,630,453
iii Retired members and beneficiaries:
Retired (other than disabled) and beneficiaries $722,004,671 $717,393,470
Disabled members $12,860,539 _ $12,409,195
Total $734,865,210 $729,802,665
iv. Total present value of all future expected
benefit payments $932,397,016 $947,565,101
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 12
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
INFORMATION REQ. BY FLORIDA STATUTE (CHAPTER 112)
TABLE VI
(CONTINUED)
After Assumption Change Actuarial Valuation prepared as of:
October 1, 2013 October 1, 2014
b. Active actuarial liability $124,287,343 $128,392,029
c. Actuarial accrued liability $865,911,262 $865,858,199
d. Unfunded actuarial accrued liability $309,340,701 $289,061,972
(please reference Table III for details conceming the unfunded
liability bases and schedule of amortization payments)
4. Actuarial Present Value of Accrued Benefits $819,587,653 $815,701,517
(please reference Tables Va and Vb for details conceming the present value
of accrued benefits)
5. Pension Cost
a. Normal cost contnbuted by City $1,954,290 $2,122,272
b. Payment to amortize unfunded liability $31,082,028 $30,759,228
c. Subtotal (not less than zero) $33,036,318 $32,881,500
d. Normal cost contributed by members $6,637,025 $7,192,475
e. Total required contribution $39,673,343 $40,073,975
As a percentage of covered payroll: 59.78% 55.72%
f. Amount to be contributed by members $6,637,025 $7,192,475
As a percentage of covered payroll: 10.00% 10.00%
g. Amount to be contributed by City $33,036,318 $32,881,500
As a percentage of covered payroll: 49.78% 45.72%
Fiscal Year
6. Past Contributions 2012/2013 2013/2014
a. Required contribution $32,302,052 $37,941,331
b. Actual contribution made by:
i City $25,568,193 $30,710,096
ii. Members $6,733,859 $7,231,235
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 13
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
INFORMATION REQ. BY FLORIDA STATUTE (CHAPTER 112)
TABLE VI
(CONTINUED)
After Assumption Change Actuarial Valuation prepared as of
October 1, 2013 October 1, 2014
7. Other disclosures
a. Present value of active members':
i Future salaries:
at attained age $645,752,353 $691,590,784
at entry age N/A N/A
ii. Future contributions:
at attained age $64,575,235 $69,159,078
at entry age N/A N/A
b. Present value of future normal contributions from City
c. Present value of future expected benefit payments for
active members at entry age
d. Amount of active and inactive members'
accumulated contributions
$1,910,519 $12,547,824
N/A N/A
$70,317,889 $76,301,336
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 14
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
INFORMATION REQ. BY FLORIDA STATUTE (CHAPTER 112)
TABLE VI
Prior to Assumption Change Actuarial Valuation prepared as of:
October 1, 2013 October 1, 2014
1. Participant Data
a. Active members:
i Number
u. Total annual payroll
iii. Estimated covered payroll
1,288 1,376
$64,437,132 $69,829,851
$66,370,246 $71,924,747
b. Retired members (other than disableds):
i Number 1,636 1,595
d. Total annualized benefit $65,510,783 $64,943,492
c. Beneficiaries receiving benefits:
i Number 380 381
u. Total annualized benefit $5,393,877 $5,685,377
d. Disabled members receiving benefits:
i. Number 57 55
ii. Total annualized benefit $1,389,720 $1,365,880
e. Terminated vested and inactive members:
i Number 162 170
11. Total annualized benefit $613,566 $847,500
2. Assets
a. Actuarial value of assets $556,570,561 $576,796,227
b. Market value of assets $590,384,170 $619,561,295
3. Liabilities
a. Present value of all future expected benefit payments:
i. Active and inactive members:
Retirement benefits $163,140,800 $180,693,566
Vesting benefits $15,009,880 $15,774,276
Disability benefits $1,466,943 $1,513,047
Death benefits $2,774,021 $3,077,979
Return of contributions $6,737,554 $6,975,615
Total $189,129,198 $208,034,483
ii. Terminated vested members $4,557,969 $5,548,810
iii. Retired members and beneficiaries:
Retired (other than disabled) and beneficiaries $716,139,121 $711,570,830
Disabled members $12,765,695 $12,319,695
Total $728,904,816 $723,890,525
iv. Total present value of all future expected
benefit payments $922,591,983 $937,473,818
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 15
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
INFORMATION REQ. BY FLORIDA STATUTE (CHAPTER 112)
TABLE VI
Prior to Assumption Change
b. Active actuarial liability
c. Actuarial accrued liability
d. Unfunded actuarial accrued liability
(please reference Table III for details concerning the unfunded
liability bases and schedule of amortization paynents)
4. Actuarial Present Value of Accrued Benefits
(please reference Tables Va and Vb for details concerning the present value
of accrued benefits)
5. Pension Cost
a. Normal cost contributed by City
b. Payment to amortize unfunded liability
c. Subtotal (not less than zero)
d. Normal cost contributed by members
e. Total required contrbution
As a percentage of covered payroll:
f Amount to be contributed by members
As a percentage of covered payroll:
g. Amount to be contributed by City
As a percentage of covered payroll:
6. Past Contributions
a. Required contribution
b. Actual contribution made by:
i City
ii. Members
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST
(CONTINUED)
Actuarial Valuation prepared as of:
October 1, 2013 October 1, 2014
$122,353,214
$857,952,160
$301,381,599
$819,587,653
$1,791,833
$30,638,391
$32,430,224
$6,637,025
$39,067,249
58.86%
$6,637,025
10.00%
$32,430,224
48.86%
Fiscal
2012/2013
$32,302,052
$25,568,193
$6,733,859
$126,425,200
$857,897,587
$281,101,360
$815,701,517
$1,956,566
$30,305,542
$32,262,108
$7,192,475
$39,454,583
54.86%
$7,192,475
10.00%
$32,262,108
44.86%
Year
2013/2014
$37,941,331
$30,710,096
$7,231,235
PAGE 16
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
INFORMATION REQ. BY FLORIDA STATUTE (CHAPTER 112)
TABLE VI
(CONTINUED)
Prior to Assumption Change Actuarial Valuation prepared as of:
October 1, 2013 October 1, 2014
7. Other disclosures
a. Present value of active members':
i Future salaries:
at attained age $641,177,002 $686,692,153
at entry age N/A N/A
ii. Future contributions:
at attained age $64,117,700 $68,669,215
at entry age N/A N/A
b. Present value of future normal contributions from City
c. Present value of future expected benefit payments for
active members at entry age
d. Amount of active and inactive members'
accumulated contributions
$522,123 $10,907,016
N/A N/A
$70,317,889 $76,301,336
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 17
DEVELOPMENT OF ACTUARIAL VALUE OF ASSETS
TABLE Vila
1'aluatiuit date October I:
2013
2014
2015
21116
2017
2018
A. Actuarial Value Beginning of Year $ 560,966,742 $ 556,570,561 $ 0 $ 0 S
B. Market Value End of Year 590,384,170 619,561,295 0 0
C. Market Value Beginning of Year 566,197.533 590,384.170 0 0
D. Cash Flow
DI. Contributions $ 32,302,052 S 37,941,331 $ 0 $ 0 S
D2. Benefit Payments (72,431,710) (71,903,481) 0 0
D3. Refund Payments (1.779,420) (1,867,614)
D4. Other Expenses (252,895) (265,995) 0 0
D5. Investment Expenses (2,077,290) (1,913,700) 0 0 0
D6. Net (44,239.263) (38,009.459) 0 0 0
E. Investment Income
El. Market Total: B.-C.-D6. 68,425,900 67,186,584 0 0 0 0
E2. Assigned Rate 7.90% 7.80% 7.70% 7.60% 7.60% 7 ,,0
E3. Amount for Immediate Recognition 45,141,497 46,555.931 0 0 0 0
E4. Amount for Phased -In Recognition 23,284,403 20,630,653 0 0 0
Phased -In Recognition of Investment Income
FI. Current Year:0.20•E4. $ 4,656,881 $ 4,126,131 $ 0 $ 0 $ 0 $
F2, First Prior Year 9,501,812 4,656,881 4,126,131 0 0 0
F3. Second Prior Year (6.713,720) 9,501,812 4,656,881 4.126,131 0 0
F4. Third Prior Year 108,090 (6,713,720) 9,501,812 4,656,881 4,126,131 0
F5. Fourth Prior Year (12,851.478) 108,090 (6,713,720) 9.501,812 4,656,881 4,126,131
F6. Total Recognizedlnyeslmenl Cein S (5,298,415) f 11,679,194 $ 11,571,104 $ 18,284,824 S 8.783,012 $ 4,126,131
G. Preliminary Actuarial Value End of Year:
A.+1)6 +E3 +F6. $ 556,570,561 S 576,796,227 $ 0 S 0 $ 0 $ 0
H. Corridor
HI. 80%of Market Value $ 472,307,336 $ 495,649,036
H2. 120% of Market Value $ 708,461,004 $ 743,473,554
1. Actuarial Value End of Year
G. Not Less than HI. or Not Creaser Than H2. $ 556,570,561 $ 576,796,227
1. Difference Beleeen Markel & Actuarial Values S 33,813,609 S 42,765,068 $ 31.193,964 $ 12.909.140 S 4,126,128 $ 1,
A. Market Value Rate of Return 12.17% 11.40%
L. Actuarial Value Rate of Return 7.00% 10.46%
0 $
1
0
The Actuarial Valuation of Assets recognizes assumed investment income (line E3) fully each year. Differences between actual and assumed investment income (line E4) are phased in over a closed 4 year period.
During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than market value. During periods when investment performance is less than the assumed rate,
Actuarial Value of Assets will tend to be greater than market value. If assumed rates are exactly realized for 4 consecutive years, actuarial value will become equal to market value.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 18
Submitted into the public
Record for item(s) D3.1
on 02/26/2015. City Clerk
ASSETS OF THE FUND
TABLE VIIb
1. Market Value of Assets*
a. Cash equivalents (3.93%)
b. U.S. government & agency securities (14.36%)
c. Corporate bonds (8.91%)
d. Corporate stock (68.64%)
e. Real estate fund (3.69%)
f. Total invested assets (99.53%)
g. Cash (0.11%)
h. Fixed assets (0.23%)
i Receivable member contributions (0.03%)
j. Accrued interest and other receivable (0.59%)
k. Accounts payable (-0.11%)
1 Other payables (-0.38%)
m. Market value of assets (100%)
As of
October 1, 2013
$26,049,714
$91,542,543
$51,760,353
$398,834,785
$20,409,959
$588,597,354
$783,671
S975,259
$151,926
$3,903,445
($841,320)
($3,186,165)
$590,384,170
As of
October 1, 2014
$24,371,647
$88,962,240
$55,185,242
$425,263,998
$22,850,580
$616,633,707
$671,637
$1,453,758
$195,495
$3,659,994
($693,868)
($2,359,428)
$619,561,295
* The percentages in parentheses indicate the proportion of assets committed to each type of investment as of
October 1, 2014.
Realized gains
and (losses)
Unrealized gains
and (losses)
Year Ending
October 1, 2013
$ 23,282,005
$ 34,038,681
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST
Year Ending
October 1, 2014
$ 35,134,894
$ 21,124,023
PAGE 19
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
HISTORICAL ASSET INFORMATION
TABLE Villa
800
700
600
500
400
300
200
100
0
Historical Market Value
Assets & Return
O O O O
N N N N
O O
N N
M
O
N
Plan Year (Assets as of October 1)
Market Assets t Market Retum
20%
15%
10%
5%
0% y
aX
-5%
-10%
-15%
-20%
Market Actuarial City and
Plan Value as of Value as of Benefit Other Member
Year October 1 October 1 Payments* Expenses Contributions
2003/2004 $516,813,945 $555,480,276 $42,022,021 $9,538 $18,607,233
2004/2005 $546,454,226 $564,591,815 $47,094,075 50 $26,861,717
2005/2006 $586,943,151 $588,495,706 $49,830,280 ($149,607) $30,039,931
2006/2007 $623,992,356 $618,482,563 $51,773,454 $28,646 $33,048,564
2007/2008 $694,302,333 $664,145,175 $52,653,558 $142,958 $32,279,954
2008/2009 S576,492,500 $691,791,000 S55,035,075 $53,221 S34,983,730
2009/2010 S538,012,201 S645,614,641 $63,947,313 $49,748 S36,765,804
2010/2011 $553,797,518 $652,999,926 $74,666,559 $94,187 $29,415,586
2011/2012 $517,904,877 $600,678,610 $73,572,275 S73,998 $34,560,894
2012/2013 $566,197,533 $560,966,742 $74,211,130 S252,895 $32,302,052
2013/2014 $590,384,170 $556,570,561 $73,771,095 $265,995 $37,941,331
2014/2015 $619,561,295 $576,796,227
*Including contribution refunds
Market Actuarial
Value Value
Return Return
10.51% 5.98%
11.32% 7.96%
9.82% 8.58%
14.49% 10.58%
(14.22)% 2.63%
(3.24)% (3.82)%
8.20% 5.48%
I.78% 7.00%
17.53% (0.11)%
12.17% 7.00%
11.40% 10.46%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 20
Submitted into the public
Record for item(s) D3.1
on 02/26/2015. City Clerk
REVENUES BY SOURCE AND EXPENSE BY TYPE TABLE VIM
REVENUES
Fiscal City Member Total Investment
Year Contributions Contributions Contributions Return Total
2003/2004 $10,669,846 $7,937,387 $18,607,233 $55,410,170 $74,017,403
2004/2005 $19,003,415 $7,858,302 $26,861,717 $63,303,292 $90,165,009
2005/2006 $22,018,443 $8,021,488 $30,039,931 $58,921,495 $88,961,426
2006/2007 $24,229,028 $8,819,536 $33,048,564 $91,851,585 $124,900,149
2007/2008 $22,762,902 $9,517,052 $32,279,954 ($94,751,747) ($62,471,793)
2008/2009 $23,191,828 $11,791,902 $34,983,730 ($16,473,559) $18,510,171
2009/2010 $24,037,093 $12,728,711 $36,765,804 $45,195,934 $81,961,738
2010/2011 $20,232,513 $9,183,073 $29,415,586 $11,660,396 $41,075,982
2011/2012 $25,973,331 $8,587,563 $34,560,894 $89,507,450 $124,068,344
2012/2013 $25,568,193 $6,733,859 $32,302,052 $68,425,900 $100,727,952
2013/2014 $30,710,096 $7,231,235 $37,941,331 $67,186,584 $105,127,915
EXPENSES
Fiscal Benefits Member Other Investment
Year Paid Refunds Expenses Expenses Total
2003/2004 $41,138,832 $883,189 $9,538 $2,345,563 $44,377,122
2004/2005 $45,926,417 $1,167,658 $0 $2,591,529 $49,685,604
2005/2006 $48,077,147 $1,753,133 ($149,607) $2,729,501 $52,410,174
2006/2007 $50,106,211 $1,667,243 $28,646 $2,788,072 $54,590,172
2007/2008 $51,631,847 $1,021,711 $142,958 $2,541,524 $55,338,040
2008/2009 $54,191,981 $843,094 $53,221 $1,902,174 $56,990,470
2009/2010 $62,162,717 $1,784,596 $49,748 $2,179,360 $66,176,421
2010/2011 $72,737,854 $1,928,705 $94,187 $2,207,877 $76,968,623
2011/2012 $72,186,394 $1,385,881 $73,998 $2,129,415 $75,775,688
2012/2013 $72,431,710 $1,779,420 $252,895 $2,077,290 $76,541,315
2013/2014 $71,903,481 $1,867,614 $265,995 $1,913,700 $75,950,790
The city contributions for fiscal year 2010/2011 include contributions of $4,712,259 (paid 10/1/2010), $13,779,647 (paid
12/3/2010) and receivable contributions of $1,740,607 (paid 11/1/2011).
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 21
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
CONTRIBUTIONS VS. FUND PAYOUTS
TABLE IXa
$85.0
$80.0
$75.0
$70.0
$65.0
$60.0
$55.0
$50.0
$45.0
$40.0
$35.0
$30.0
$25.0
$20.0
$15.0
$10.0
$5.0
$0.0
Historical Contributions Versus Benefit Payments &
Expenses
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Plan Year Beginning
Contributions tBenefit Payments & Expenses
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 22
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
HISTORICAL CONTRIBUTION RATE
TABLE IXb
70%
60%
50%
20%
10%
0%
1
•
I I I I I I I I I I
I I ii ii
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
• Required City Contribution Percentage ❑ Member Contribution Percentage
Required
Member City
Required
Member City
Fiscal Contribution Contribution Fiscal Contribution Contribution
Year Percentage Percentage Year Percentage Percentage
2007 10% 33.89% 2012 13% 36.32%
2008 10% 30.11% 2013 10% 38.53%
2009 10% 28.26% 2014 10% 47.69%
2010 12%' 25.65% 2015 10% 49.78%
2011 13% 21.66% 2016 10% 45.72%
'For the 2009/2010 fiscal year, the AFSCME bargaining unit members contributed 13% of payroll.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST
PAGE 23
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
SUMMARY OF MEMBER DATA
TABLE Xa
Total Number of Members as of October 1
3,800
/
3,700
—
I t
I
3,600
.0
3,400
.n. r
3,300
3,200
3,100
3,000
2004
2005
2006
2007
2008 2009 2010
— — Total Members
2011
2012
2013
2014
1. Active Members
2. Non -active, Non -Retired Members
a. Fully vested
b. Non -vested
c. Sub -total
3. Retired Members
a. Non -disabled
b. Disabled
c. Beneficiaries
As of
October 1, 2013
1,288
23
As of
October 1, 2014
1,376
28
139 142
162 170
1,636 1,595
57 55
380 381
d. Sub -total 2,073 2,031
4. Total Members
3,523 3,577
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 24
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
DATA RECONCILIATION
TABLE Xb
Active
Non -Active
Non -Retired
Retired
Total
1. Number of members as of October 1, 2013 1,288
162
2,073
3,523
2. Change in Status during the plan year:
a. Actives who became inactive (27)
27
0
0
b. Actives/Inactive who retired (13)
0
13
0
c. Active/Inactive who became disabled 0
0
0
0
d. Inactive who became active 4
(4)
0
0
e. Non Vested Terminations (45)
0
0
(45)
f. Retired but returned to work 1
0
(1)
0
3. No longer members due to:
a. Death (3)
0
(84)
(87)
b. Refund of contributions or Benefits Ended (I)
(15)
0
(16)
c. Correction in status 0
0
0
0
4. New members due to:
a. Initial membership 172
0
0
172
b. Death of another member 0
0
30
30
c. Omitted last year 0
0
0
0
d. QDRO 0
0
0
0
5. Number of members as of October 1, 2014 1,376
170
2,031
3,577
Retired group includes 212 and 34 DROP members as of October 1, 2013 and October 1, 2014
respectively.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 25
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ACTIVE DATA TABLE
TABLE XC
$56,000
$54,000
c $52,000
en $50,000
, $48,000
$46,000
$44,000
Historical Salary Rate
.cr in \ n oe C`, O ▪ N M
O O 0 0 0 0
O O ▪ O O O O O O O O O
20.0%
0.0%
5.0%
• Average Salary ■ Actual Salary Increase 111 Assumed Salary Increase
Actual Assumed
Average Salary Salary
Date Salary Increase Increase Date
10/1/05 48,334 4.42% 5.00% 10/1/10
10/1/06 48,006 5.22% 5.00% 10/1/11
10/1/07 50,933 9.28% 5.25% 10/1/12
10/1/08 53,420 9.20% 5.25% 10/1/13
10/1/09 54,179 6.51% 5.25% 10/1/14
Actual Assumed
Average Salary Salary
Salary Increase Increase
53,140 4.86% 5.25%
51,250 (1.92)% 5.25%
50,785 0.25% 0.00%
50,029 1.01% 4.55%
50,748 4.38% 4.66%
Active Members as of October 1, 2014
Number
Annual
Compensation
Males 718 $ 37,377,475
Females 658 $ 32,452,376
Total 1,376 $ 69,829,851
Average Annual Compensation
Average Entry Age
Average Years of Service
$ 50,748
35.41
9.21
The average pay shown is the average of the annual rate of pay excluding any overtime pay or
other special compensation.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 26
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
AGE -SERVICE -SALARY TABLE
TABLE Xd
Attained
Age
Under 1 1 to 4 5 to 9 10 to 14
Completed Years of Service
30 to 34 35 to 39 40 & Up Total
15 to 19 20 to 24 25 to 29
Under25
6
11
0
0
0
0
0
0
0
0
17
Avg Pay*
34,888
35,485
0
0
0
0
0
0
0
0
35,274
25 to 29
34
31
40
0
0
0
0
0
0
0
105
Avg Pay*
34,864
35,685
35,929
0
0
0
0
0
0
0
35,512
30 to 34
27
39
88
21
1
0
0
0
0
0
176
Avg Pay*
36,128
46,056
41,068
47,930
62,614
0
0
0
0
0
42,357
35 to 39
24
24
74
60
16
0
0
0
0
0
198
Avg Pay*
38,764
50,080
47,008
54,848
62,030
0
0
0
0
0
49,971
40to44
18
29
57
55
47
16
0
0
0
0
222
Avg Pay*
50,238
47,580
50,756
60,139
62,576
62,644
0
0
0
0
55,983
45 to 49
10
23
56
62
39
24
4
0
0
0
218
Avg Pay*
48,377
43,764
54,561
59,096
63,124
68,568
78,185
0
0
0
57,936
50 to 54
16
22
40
57
32
18
8
1
0
0
194
Avg Pay*
36,004
46,506
49,229
53,298
61,151
61,332
69,095
56,664
0
0
52,972
55 to 59
7
13
43
50
23
5
2
0
0
0
143
Avg Pay*
46,602
46,600
46,059
56,853
70,811
46,998
88,964
0
0
0
54,523
60 to 64
4
7
23
25
4
2
0
0
0
0
65
Avg Pay*
41,231
42,485
54,534
47,828
49,457
52,861
0
0
0
0
49,475
65 & Up
5
4
13
15
l
0
0
0
0
0
38
Avg Pay*
40,403
57,012
49,556
45,725
45,000
0
0
0
0
0
47,504
Total
151
203
434
345
163
65
14
1
0
0
1,376
Avg Pay•
39,455
44,510
46,835
55,163
63,106
62,964
74,530
56,664
0
0
50,748
*The average pay shown is the average ofthe annual rate of pay excluding any overtime pay or other special compensation.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 27
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
RETIREE DATA
TABLE Xe
Age At Retirement
Less than 30
30 - 39
40-44
45 - 49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Over 65
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400
Number of Retirees
• Non Disabled Retirees • Beneficiaries u Disabled Retirees
Average benefit being paid to non -disabled retirees is $3,393.08 per month.
Average benefit being paid to beneficiaries is $1,243.52 per month.
Average benefit being paid to disabled retirees is $2,069.51 per month.
*Data to compute Age at Retirement Jor deceased retirees with benefit continuing to a survivor was not available.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 28
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PROJECTED BENEFIT PAYMENTS
TABLE Xf
Fis cal Proje cte d
Year Payments
2015 $ 72,476,830
2016 $ 71,993,665
2017 $ 71,612,615
2018 $ 71,254,241
2019 $ 70,868,363
2020 $ 70,714,703
2021 $ 70,800,400
2022 $ 71,543,969
2023 $ 72,367,500
2024 $ 73,117,794
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 29
COMPREHENSIVE ANNUAL FINANCIAL REPORT INFORMATION TABLE Xg
Schedule of Active Member Valuation Data
Annual Average % Increase
Valuation Date Number Annual Payroll Pay In Average Pay
October 1, 2010
October 1, 2011
October 1, 2012
October 1, 2013
October 1, 2014
1,294 68,762,827 53,140 (1.92)%
1,241 63,601,380 51,250 (3.56)%
1,231 62,515,723 50,785 (0.91)%
1,288 64,437,132 50,029 (1.49)%
1,376 69,829,851 50,748 1.44%
Schedule of Retirants and Beneficiaries Added to and Removed from Rolls
Added to Rolls Removed from Rolls Rolls — End of Year % Increase Average
Annual Annual Annual In Annual Annual
Year Ended Number Allowances Number Allowances Number Allowances Allowances Allowances
September 30, 2010 290 $14,222,231 65 $1,196,902 2,200 $72,147,210 22.03% $32,794
September 30, 2011 51 $1,812,048 89 $1,564,297 2,162 $72,394,961 0.34% $33,485
September 30, 2012 41 $1,483,981 78 $1,585,688 2,125 $72,293,254 (0.14)% $34,020
September 30, 2013 45 $2,050,826 97 $2,049,700 2,073 $72,294,380 0.00% $34,874
September 30, 2014 43 $1,559,877 85 $1,859,508 2,031 $71,994,749 (0.41)% $35,448
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 30
0
N
c�
?j
0
0
0
COMPREHENSIVE ANNUAL FINANCIAL REPORT INFORMATION TABLE Xg
(CONTINUED)
Solvency Test
Aggregate Accrued Liabilities for
(1) (2) (3)
Active Member Portion of Accrued Liabilities
Active Member Retirants and (Employer Reported Assets Covered by Reported Assets
Valuation Date Contributions Beneficiaries Financed Portion) Actuarial Value (1) (2) (3)
September 30, 2008 $78,833,075 $531,826,799 $197,958,309 $691,791,000 100% 100% 41%
September 30, 2009 $74,970,761 $592,395,005 $113,259,434 $645,614,641 100% 96% 0%
September 30, 2010 $51,512,855 $742,702,827 $46,655,454 $652,999,926 100% 81% 0%
September 30, 2011 $55,666,384 $745,868,657 $43,589,999 $600,678,610 100% 73% 0% o v)
o0 cr
September 30, 2012 $64,770,972 $741,277,894 $52,200,075 $560,966,742 100% 67% 0% N a a•
°\ 0-0 fD
N 2, 0-
September 30, 2013 $70,317,889 $739,487,758 $56,105,615 $556,570,561 100% 66% 0% �' B.
� � o
September 30, 2014 $76,301,336 $735,433,118 $54,123,745 $576,796,227 100% 68% 0%
nIW �
iD
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 31
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
COMPREHENSIVE ANNUAL FINANCIAL REPORT INFORMATION TABLE Xg
(CONTINUED)
Analysis of Financial Experience
Gains & Losses in Accrued Liabilities During Year Ending September 30
Resulting from Differences Between Assumed Experience & Actual Experience
$ Gain (or Loss) For Year Ending September 30 2014
Age & Service Retirements (935,708)
If members retire at older ages or with lower final average pay than assumed, there is a gain. If younger
ages or higher average pay, a Toss.
Disability Retirements 74,556
If disability claims are Tess than assumed, there is a gain. If more claims, a loss.
Death -In -Service Retirements (109,314)
If survivor claims are less than assumed, there is a gain. If more claims, a Toss.
Withdrawal From Employment (92,637)
If more liabilities are released by withdrawals than assumed, there is a gain. If smaller releases, a Toss.
Pay Increases and Data Adjustments 1,552,326
If there are smaller pay increases than assumed, there is a gain. If greater increases, a loss.
Contribution Income (1,732,012)
If more contributions are received than expected, there is a gain. If Tess, a loss.
Investment Income 14,316,656
If there is greater investment income than assumed, there is a gain. If less income, a loss.
Death After Retirement (2,076,490)
If retirants live longer than assumed, there is a loss. If not as long a gain.
New Members (770,396)
Othe r
Miscellaneous gains and losses resulting from timing of financial transactions, valuation methods,
increase in maximum benefit limits, etc. $11,058,907
Gain (or Loss) During Year From Financial Experience $21,285,888
Non -Recurring Items ($7,960,612)
Adjustments for plan amendments, assumption changes, etc.
Composite Gain (or Loss) During Year $13,325,276
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 32
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ACTUARIAL ASSUMPTIONS AND METHODS
TABLE XIa
1. Actuarial Cost Method
The modified individual entry age normal cost method. Under this method, normal costs are
determined on the individual entry age normal method. However, if the actuarial value of assets
exceeds the entry age accrued liability, the individual entry age normal cost rate for the Plan shall be
adjusted by the excess actuarial value of assets divided by the present value of future payroll, in
order for the unfunded accrued liability to not be less than zero.
As of October 1, 1997, the unfunded actuarial accrued liability is zero. Currently, changes in
actuarial assumptions and methods, plan amendments for actives and actuarial gains and losses are
amortized as a level percent of pay over 20 years. Plan amendments for retirees are amortized over
15 years.
2. Decrements
• Pre -Retirement Mortality
UP-1994, Projected to 2018 (using scale AA) for male and female, set forward 1 year.
• Post -Retirement Healthy Mortality
UP-1994, Projected to 2018 (using scale AA) for male and female, set forward 2 years.
• Post -Retirement Disabled Mortality
UP-1994, Projected to 2018 (using scale AA) for male and female, set forward 8 years.
• Disability
Representative values of the assumed annual rates of disability among members in active service
are set forth in the following table. 90% of disabilities are assumed to be ordinary (non -
occupational), and 10% are service incurred. Of the service incurred disabilities, 50% are assumed
to be accidental.
Rate
.age,`:',
Rate
;<Age ,
Rate
Age:'
Rate
� 2
0.02%
0.02%
.::
30
5
:''
0.05%
0.07%#5
40
0.09%
0.12%
50�:� `
0.18%
0.26%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 33
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ACTUARIAL ASSUMPTIONS AND METHODS
TABLE XIa
(CONTINUED)
• Permanent Withdrawal from Active Status
Representative values of the assumed annual rates of withdrawal among members in active
service are set forth in the following table.
Age Completed Years of Service
20
25
30
35
40
45
50
55
0 1 2 3 4
13.0% 12.0% 10.0% 8.0% 7.0%
13.0% 12.0% 10.0% 8.0°A) 7.0°A)
13.0% 12.0% 10.0% 8.0% 7.0%
12.5°A) 11.5% 9.5% 7.7% 7.0°A)
11.9% 10.9% 8.9°A° 7.1% 6.5%
11.3% 10.3% 8.3% 6.5% 5.7%
10.7% 9.7°A) 7.7% 5.9% 4.7%
10.4% 9.4% 7.4% 5.6% 4.4%
5 or more
5.8%
5.1
4.5%
3.9%
3.1%
2.5%
2.0%
1.5%
• Retirement (non -Backdrop)
Representative values of the assumed annual rates of retirement among members in active
service are set forth in the following table. The rates for ages 45 through 54 are the assumed
rates before the age of 55 under the rule of 70.
Age Rate Age' :;; Rate
Age Rate
Age Rate
Age Rate
45
10% -
15%
55 18%
60
18%
65
16%
46
10% I
15%
56 18°A)
61
18%
66
16%
47
10% 52
15%
57 18%
62
18%
67
16%
48
10%
15%
58 18%
63
18%
68
16%
49
10°A
15%
59 18%
64
18%
69
16%
70
100%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 34
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ACTUARIAL ASSUMPTIONS AND METHODS
TABLE X1a
(CONTINUED)
• Rates of Backdrop Elections
The valuation assumes members will elect a five-year Backdrop.
Years of Service
e 10-14
15-20
21
25
27
29
30
35
5t
15°A)
51'
15%
15%
52
15%
10%°
53
15%
10%
10%
54
15%
10%
10'
55
18%
10%
10%
10%°
25%
56
18%
10%
10%
10%
25%
57
18%
10%
10%
10%
10% 0
25%
58
18%
10%
10%
10%
10%
25%
59
18%
10%
10%
10%
10%
10%
25%
60'
18%
18%
18%
10%°
10%
10%
10%
25% '
25%
10%
10%
10%
10"/o '5
10%
10%
25%
25
25%
10%
10'%,
10%
0% ;;
10%
10%..
25%
25'
25%
63-y ;
10%
10%
10%
1:0'
10%
25%
25%
25°ro ''
25%
64
10%
10%
10%
10%
10%
25% '`
25%
25 /°
25%
65
10%
25%
25%
25%
25%
25%
25%
25" 0
25%
66
10%
25%
25%
25%0
25%
25'/0
25%
25%
25%
67,
10%
25%
25%
25%
25%
25%
25%
25%
16%
68
10%
25%
25%
25°/%
25%
25%
25%
25%
16%
69
10%
25%
25%
25%
25%
25%
25%
25%
16%
70
100%
100%
100%
100%
100%
100%
100%
100%
100%
3. Interest Rate'
For the October 1, 2014 valuation, a 7.70% per annum, compounded annually, including inflation,
interest rate assumption is utilized.
'A phased -in interest rate assumption will be utilized in accordance with the following table:
Valuation Year
Interest Rate Assumption
2011
8.00%
2012
7.90%
2013
7.80%
2014
7.70%
2015
7.60%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 35
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ACTUARIAL ASSUMPTIONS AND METHODS
TABLE XIa
(CONTINUED)
4. Salary Increases
Salaries are assumed to increase at a rate that varies based on years of credited service.
Rate of Increase
8.75%
8.00%
6.50%
5.50%
5.00%
5.00%
4.50%
4.50%
4.50%
4.50%
4.00%
5. Inflation
3.5% per annum.
6. Spouses
80% of active members are assumed to be married with the husband 3 years older than his wife.
7. Expenses
The City shall provide for the non -investment expenses of the Retirement Trust. However, there
may be some non -investment expenses during the Plan year which will be reimbursed by the City
after the end of the year. An allowance for other expenses is made in that the interest rate assumption
is net of investment expenses. The City's normal cost includes an allowance of $250,000 per year
for the payment of custodial/trustee expenses.
8. Assets
Actuarial value, as developed in Table VIIa. The actuarial value of assets recognizes a portion of
the difference between the market value of assets and the expected market value of assets, based on
the assumed valuation rate of return. The amount recognized each year is 20% of the difference
between market value and expected market value. The actuarial value of assets cannot be less than
80% or more than 120% of market value.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 36
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ACTUARIAL ASSUMPTIONS AND METHODS
TABLE XIa
(CONTINUED)
9. GASB Nos. 25 and 27
The determination of the GASB Nos. 25 and 27 accounting information has been made on the basis
of the same assumptions and methods except for the following. The actuarial cost method was the
entry age normal frozen actuarial accrued liability.
10. Funding Period (Pursuant to Chapter 112, Florida Statutes)
Prior to October 1, 1997, the Gates Agreement amortization payments were paid in accordance with
Schedule B of Attachment E of the Gates Agreement. As of October 1, 1997, the payment schedule
was replaced. The unfunded actuarial accrued liability as of October 1, 1997 was zero. Beginning
October 1, 2011, the following amortization periods apply all as level percent of pay amounts:
Benefit changes for actives
Benefit changes for retirees
Actuarial gain/loss
Change in assumptions and methods
11. Maximum Benefit
20 years
15 years
20 years
20 years
The valuation reflects the maximum benefit limits under Internal Revenue Code Section 415,
indexed in future years at the 3.5% per year assumed rate of inflation.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 37
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
The following assumptions have been changed during the last few plan years:
1. Effective October 1, 1990: Change in interest rate from 7.50% to 8.00%.
2. Effective October 1, 1991: Salary increase assumption was changed from graduated rates to a flat 6.50%
per year.
3. Effective October 1, 1993: Change in mortality rates.
4. Effective October 1, 1995:
• Change in interest rate from 8.00% to 8.10% per year.
• Change in salary increase assumption from 6.50% to 6.00% per year.
• Change in mortality rates.
• Addition of rates of retirement before the age of 55 under the rule of 70.
5. Effective October 1, 1997: Change in employee turnover rates.
Age
Assumed Annual Termination Rates for
Prior Rates
Revised Rates
20
4.8%
5.3%
25
4.2%
4.6%
30
3.6%
4.0%
35
3.0%
3.4%
40
2.4%
2.6%
45
1.8%
2.0%
50
1.2%
1.3%
55
0.9%
1.0%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 38
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
(CONTINUED)
6. Effective October 1, 1997: Changes in funding and asset methods.
Gates Settlement Schedule B Amortization Payments
Prior to October 1, 1997, the Gates Agreement amortization payments were paid in accordance with
Schedule B of Attachment E of the Gates Agreement. As of October 1, 1997, the payment schedule will
be replaced. The unfunded actuarial accrued liability as of October 1, 1997 is zero. Beginning October 1,
1998, the following amortization periods will apply all as level dollar amounts:
Benefit improvements for actives 30 years
Benefit improvements for retirees 15 years
Actuarial gain/loss 15 years
Change in assumptions 20 years
Asset Valuation Method
As of October 1, 1997, the actuarial value of assets shall be changed to moving market value averaged
over three years. Each year, the actuarial asset value will be projected forward at the valuation date based
on actual contributions and benefit payments at the assumed interest assumption. One third of the
difference between the projected actuarial value and the market value plus prior deferrals is added to the
projected actuarial value. The remaining two thirds is deferred to each of the next two years as future
adjustments to the actuarial value. The result cannot be greater than 120% of market value or less than
80% of market value.
As of October 1, 1997 the actuarial value is equal to the market value.
Valuation Cost Method
The modified aggregate entry age normal cost method will be applied for costs for the fiscal year beginning
October 1, 1998. (The City contribution for the fiscal year beginning October 1, 1998 is based on the
October 1, 1997 actuarial valuation.)
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 39
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
(CONTINUED)
7. Effective October 1, 1998: Change in employee retirement rates.
Ages
Assumed Annual Retirement Rates
Prior Rates
Revised Rates
45-49
5%
15%
50-54
5%
20%
55
20%
30%
56-61
10%
20%
62
20%
20%
63-64
15%
20%
65-69
20%
20%
70
100%
100%
8. Effective October 1, 1999 changes made to reflect Revenue Code Section 415(L)(1)(A) limitations on
the maximum annual benefits payable from the Plan.
9. Effective October 1, 2000:
• Change in salary increase assumption from 6.00% to 5.75% per year.
• Revised turnover rates for employees with less than 5 years of service as follows:
Ages
Completed Years of Service
0 1 2 3 4
20
12.5%
11.0%
9.0%
7.5%
6.5%
25
12.5%
11.0%
9.0%
7.5%
6.5%
30
12.5%
11.0%
9.0%
7.5%
6.5%
35
12.5%
11.0%
9.0%
7.5%
6.5%
40
11.4%
10.4%
8.4%
6.6%
6.0%
45
10.8%
9.8%
7.8%
6.0%
5.2%
50
10.2%
9.2%
7.2%
5.4%
4.2%
55
9.9%
8.9%
6.9%
5.1%
3.9%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 40
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
(CONTINUED)
• Change in employee retirement rates
Ages
Assumed Annual Retirement Rates
Prior Rates
Revised Rates
45-49
15%
10%
50-54
20%
15%
55
30%
30%
56-61
20%
20%
62
20%
20%
63-64
20%
20%
65-69
20%
20%
70
100%
100%
• Change in employee disability rates
Ages
Assumed Annual Disability Rates
Prior Rates
Revised Rates
20
0.03%
0.05%
25
0.03%
0.05%
30
0.04%
0.08%
35
0.05%
0.10%
40
0.07%
0.12%
45
0.10%
0.15%
50
0.18%
0.20%
55
0.26%
0.28%
• Change in mortality rates for active members by setting back ages 2 years in the 1983 Group
Annuity Mortality Table for males and females.
10. Effective October 1, 2002 change in salary increase assumption from 5.75% to 5.00% per year.
11. Effective October 1, 2003:
• Change in mortality rates for retired members by setting back ages 2 years in the 1983 Group
Annuity Mortality Table for males and females.
• Change in mortality rates for retired disabled members by setting forward ages 7 years in the
1983 Group Annuity Mortality Table for males and females.
• Revised turnover rates for employees with less than 5 years of service as follows:
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 41
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
(CONTINUED)
Completed Years of Service
Ages
0 1 2 3 4
20
12.5%
11.5%
9.5%
7.5%
6.5%
25
12.5%
11.5%
9.5%
7.5%
6.5%
30
12.5%
11.5%
9.5%
7.5%
6.5%
35
12.0%
11.0%
9.0%
7.2%
6.5%
40
11.4%
10.4%
8.4%
6.6%
6.0%
45
10.8%
9.8%
7.8%
6.0%
5.2%
50
10.2%
9.2%
7.2%
5.4%
4.2%
55
9.9%
8.9%
6.9%
5.1%
3.9%
• Change in employee retirement rates
Ages
Assumed Annual Retirement Rates
Prior Rates
Revised Rates
45-49
10%
10%
50-54
15%
15%
55
30%
26%
56-61
20%
18%
62
20%
18%
63-64
20%
18%
65-69
20%
16%
70
100%
100%
12. Effective October 1, 2006:
• Upgrade in actuarial valuation software.
• Change in salary increase assumption from 5.00% to 5.25% per year.
• Change in mortality rates for retired members by setting back ages 1 year in the 1983 Group
Annuity Mortality Table for males and females.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 42
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
(CONTINUED)
Revised turnover rates for employees with 5 or more years of service as follows:
Ages
Assumed Annual Termination Rates for
Prior Rates
Revised Rates
20
5.3%
5.8%
25
4.6%
5.1%
30
4.0%
4.5%
35
3.4%
3.9%
40
2.6%
3.1%
45
2.0%
2.5%
50
1.3%
2.0%
55
1.0%
1.5%
13. Effective October 1, 2008: Changes in asset methods and amortization of Unfunded Actuarial
Liability.
Asset Valuation Method
The new actuarial asset valuation method spreads asset gains and losses over five years, instead of the
three years under the prior method.
Under the new asset method, the expected return is determined each year based on the beginning of year
market value and actual cash flows during the year and an expected asset return of 8.1 %. Any difference
between the expected market value return and the actual market value return is recognized evenly over a
period of five years. The resulting actuarial value of assets cannot be less than 80% or more than 120%
of the market value of assets.
The new actuarial asset method will phase -in over a five-year period. The phase -in approach assumes 1-
year smoothing (20% recognition) of the asset loss for the year ended September 30, 2008. Next year the
asset method will include 2-year smoothing, followed by 3-year smoothing and so on, until the full 5-year
smoothing is completely phased -in.
Amortization of the Unfunded Actuarial Liability
The method to amortize the unfunded actuarial liability has been changed from level dollar to level percent
of pay. Under the level percentage of projected payroll amortization method, amortization payments are
calculated so that they are a constant percentage of the projected payroll of active plan members. The
dollar amount of the payments increases over time as payroll increases due to inflation. The dollar amount
of the payments, adjusted with inflation, can be expected to remain level as a percent of pay. For example,
if the amortization payment increases 3% per year and the payroll also increases 3% per year, then the
amortization payment is level as a percentage of pay.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 43
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
(CONTINUED)
The periods to amortize benefit changes for actives and changes in assumptions were changed to 15 years.
14. Effective October 1, 2009:
• Change in death -in-service rates for active members to utilize the
Mortality Table, projected to 2018 (using scale AA), set forward 1 y
• Change in mortality rates for retired members to utilize the UP-1994
Table, projected to 2018 (using scale AA), set forward 2 years.
• Change in mortality rates for disabled retirees to utilize the UP-1994
Table, projected to 2018 (using scale AA), set forward 8 years.
UP-1994 Group Annuity
ear.
Group Annuity Mortality
Group Annuity Mortality
• Revised turnover rates for employees with less than 5 years of service as follows:
Completed Years of Service
Ages
0 1 2 3 4
20
13.0%
12.0%
10.0%
8.0%
7.0%
25
13.0%
12.0%
10.0%
8.0%
7.0%
30
13.0%
12.0%
10.0%
8.0%
7.0%
35
12.5%
11.5%
9.5%
7.7%
7.0%
40
11.9%
10.9%
8.9%
7.1%
6.5%
45
11.3%
10.3%
8.3%
6.5%
5.7%
50
10.7%
9.7%
7.7%
5.9%
4.7%
55
10.4%
9.4%
7.4%
5.6%
4.4%
• Revised turnover rates for disabled retirements as follows:
Rate
Rate
Rate
Rate
.f.,
0.03%
0.03%
;
0.06%
0.08%
45`..::
0.10%
0.13%
a
0.18%
0.26%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 44
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
(CONTINUED)
14. Effective October 1, 2009 (continued):
• Change in the age 55 retirement rate assumption from 26% to 18%.
• Salary Assumption modifications in accordance with table below, applicable to Fiscal Year
2010/2011. Salary increase rates remain unchanged from current assumption of 5.25% for
future years after Fiscal Year 2011.
Salary Range
Percent Reduction
Less than $39,999.99
0%
$40,000.00 - $54,999.99
5%
$55,000.00 - $74,999.99
7%
$75,000.00 - $119,999.99
9%
$120,000 +
12%
15. Effective October 1, 2011:
• Change in the assumed interest rate from 8.10% to 8.00% per year. A phased -in interest rate
assumption will be utilized in accordance with the following table:
Valuation Year
Interest Rate Assumption
2011
8.00%
2012
7.90%
2013
7.80%
2014
7.70%
2015
7.60%
• Change in the assumed salary increase rates from 5.25% to rates varying by years of credited
service as shown below:
Rate of Increase
8.75%
8.00%
6.50%
5.50%
5.00%
5.00%
4.50%
4.50%
4.50%
4.50%
4.00%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 45
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE XIb
(CONTINUED)
The assumed pay increases for the year beginning October 1, 2011 is 0%.
• To reflect the new Backdrop, rates of retirement have been decreased at earlier ages and
increased at later ages when the member is eligible to Backdrop. We have assumed members
will elect a five year Backdrop.
• The City's normal cost includes an allowance of $250,000 per year for the payment of
custodial/trustee expenses.
• Funding Period (Pursuant to Chapter 112, Florida Statutes)
The following amortization periods apply all as level percent of pay amounts:
Benefit changes for actives
Benefit changes for retirees
Actuarial gain/loss*
Change in assumptions and methods
20 years
15 years
20 years
20 years
*Unfunded liability bases established prior to October 1, 2011 were amortized using the remaining periods as of October
1, 2011, with an additional 5 years applied to each period. The original amortization period plus the five additional years
do not exceed 30 years.
16. Effective October 1, 2012:
• Change in the assumed interest rate from 8.00% to 7.90% per year. A phased -in interest rate
assumption will be utilized in accordance with the following table:
Valuation Year
Interest Rate Assumption
2011
8.00%
2012
7.90%
2013
7.80%
2014
7.70%
2015
7.60%
Change in employee disability rates
Ages
Assumed Annual Disability Rates
Prior Rates
Revised Rates
20
0.03%
0.02%
25
0.03%
0.02%
30
0.06%
0.05%
35
0.08%
0.07%
40
0.10%
0.09%
45
0.13%
0.12%
50
0.18%
0.18%
55
0.26%
0.26%
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 46
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
ASSUMPTION AND METHOD CHANGES
TABLE X1b
(CONTINUED)
17. Effective October 1, 2013:
• Change in the assumed interest rate from 7.90% to 7.80% per year. A phased -in interest rate
assumption will be utilized in accordance with the following table:
Valuation Year
Interest Rate Assumption
2011
8.00%
2012
7.90%
2013
7.80%
2014
7.70%
2015
7.60%
18. Effective October 1, 2014:
• Change in the assumed interest rate from 7.80% to 7.70% per year. A phased -in interest rate
assumption will be utilized in accordance with the following table:
Valuation Year
Interest Rate Assumption
2011
8.00%
2012
7.90
2013
7.80%
2014
7.70%
2015
7.60%
*Note: Assumption changes that have first been reflected in this valuation are shown in bold print.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 47
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN PROVISIONS TABLE XIIa
1. Plan Effective Date
The original plan effective date is July 1, 1956, including all amendments through September 30, 2010.
2. Membership
An employee becomes a member upon employment unless he is a member of any other pension or
retirement system supported wholly or in part by the City. An employee ceases to be a member if (i) he
is absent from service for more than three years of any five consecutive year period, (ii) he withdraws his
contributions, (iii). he becomes a member of any other City sponsored retirement plan, or (iv) he becomes
a beneficiary or dies.
3. Membership Service
Service as an employee for which contributions were made.
4. Creditable Service
Sum of Membership Service, Prior Service, and Military Service.
5. Compensation
Employee's base salary, including pick-up contributions. Compensation for pension purposes does not
include the cash payment at retirement for accumulated unused leaves, such as, vacation and sick leave.
6. Member Contributions
10% of compensation.
7. Average Final Compensation
Members Eligible for Retirement (meet Rule of 70 or age 55 and 10 years of service) as of September
30, 2010
Average annual compensation during highest two years of membership service. For members employed
before May 24, 1984, Average Final Compensation is average annual compensation during highest one
year of membership service.
All Other Members
Average annual compensation during the highest five years of the last 10 years of service. Members
retiring between October 1, 2010 and on or before September 30, 2011 will be based on the average of the
highest three years of membership service; for members who retire on or after October 1, 2011 and or
before September 20, 2012, it will be based on the average highest four years of membership service; and
for members who retire on or after October 1, 2012, the average of the highest five years of the last 10
years of service. In no event shall the average final compensation of any member who is employed on
September 20, 2010 and retires on or after October 1, 2010 be less than the members final average
compensation as of September 30, 2010.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 48
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN PROVISIONS TABLE XIIa
(CONTINUED)
8. Service Retirement Benefit
Members Eligible for Retirement as of September 30, 2010
3% of Average Final Compensation multiplied by Creditable Service.
All Other Members
3% of Average Final Compensation multiplied by Creditable Service as of September 30, 2010. For
service after September 30, 2010, 2.25% of Average Final Compensation multiplied by Creditable Service
up to 15 years; for Creditable Service in excess of 15 years but less than 20 years, 2.5% of Average Final
Compensation multiplied by Creditable Service; for Creditable Service in excess of 20, 2.75% of Average
Final Compensation multiplied by Creditable Service. The service retirement benefit shall be based on a
member's total Creditable Service and the benefit multiplier in effect at the time the service is earned,
multiplied by average final compensation in effect at the time of retirement or separation from employment.
9. Normal Retirement
Members Eligible for Retirement as of September 30, 2010
• Age and Service
Age 55 and 10 years of continuous Creditable Service.
• Rule of70
Age plus Service equaling 70 points
• Benefit Amount
The basic retirement benefit.
• Forms of Payment
Normal Forms of Payment
Option 6a: Lump sum payment of member's accumulated contributions plus a
monthly service retirement benefit equal to 50% of the amount to which he would
have been otherwise entitled;
Option 6b: Monthly service retirement benefit for member's lifetime equal to 105%
of the amount to which he would have been otherwise entitled;
Option 6c: Monthly service retirement benefit for member's lifetime equal to the
amount to which he was entitled, provided that, upon his death, 40% of that
amount would continue to be paid to his surviving spouse for the lifetime of such
spouse.
Actuarially Reduced Forms of Payment
Option 2 — Equal Payment Survivor Annuity: Reduced joint and 100% survivor annuity;
Option 3 — One -Half Payment Survivor Annuity: Reduced joint and 50% survivor annuity
All Other Members
• Age and Service
Age 55 and 30 years of continuous Creditable Service, or
Age 60 and 10 years of continuous Creditable Service
• Rule of 80
Age plus Service equaling 80 points
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 49
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN PROVISIONS
TABLE XIIa
(CONTINUED)
• Benefit Amount
The basic retirement benefit payable as a life annuity.
• Forms of Payment
Actuarially Reduced Forms of Payment
Option 2 — Equal Payment Survivor Annuity: Reduced joint and 100% survivor annuity;
Option 3 — One -Half Payment Survivor Annuity: Reduced joint and 50% survivor annuity
Option 6a: Lump sum payment of member's accumulated contributions plus a
monthly service retirement benefit equal to 50% of the amount to which he would
have been otherwise entitled;
Option 6c: Monthly service retirement benefit for member's lifetime equal to the
amount to which he was entitled, provided that, upon his death, 40% of that
amount would continue to be paid to his surviving spouse for the lifetime of such
spouse.
10. Early Retirement
• Age
Any age with at least 20 years of Creditable Service.
• Amount
Actuarial equivalent of the basic service retirement benefit that otherwise would have commenced
at age 55. For members not eligible for retirement on October 1, 2010 the amount is the actuarial
equivalent of the basic service retirement benefit payable at the earliest of the retirement eligibility
dates under 9. above.
• Form of Payment
Same as for Normal Retirement.
11. Deferred Vested Retirement
• Eligibility
Completion of 10 years of Creditable Service and provided the member does not withdraw his
accumulated contributions.
• Amount
The basic retirement benefit.
• Form of Payment
Same as for Normal Retirement.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 50
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN PROVISIONS
TABLE XIIa
(CONTINUED)
12. Ordinary Disability Retirement
• Eligibility
Completion of 10 years of Creditable Service.
• Condition
The member must have become totally incapacitated from the further performance of duty not as a
result of an accident in the performance of duty.
• Amount
The greater of 90 percent of the product of the benefit multiplier in effect at the time the service is
earned multiplied by the number of years of credited service; or 30 percent of the member's final
average compensation.
• Form of Payment
Life annuity.
13. Accidental Service Incurred Disability Retirement
• Eligibility
Any member.
• Condition
The Member must have become totally and permanently incapacitated for duty as a result of an
accident occurring while in the performance of his duty.
• Amount
66 2/3% of the greater of Average Final Compensation or final compensation.
• Form of Payment
Life annuity provided that, upon the member's death, 40% of the benefit would continue to be paid
to surviving spouse for the lifetime of such spouse.
14. Service Incurred Disability Retirement
• Eligibility
Any member.
• Condition
The member must have become totally and permanently incapacitated for duty as a result of
tuberculosis, hypertension, or heart disease (which was not an existing condition at the time of
employment).
• Amount
• The greater of 90 percent of the product of the benefit multiplier in effect at the time the service is
earned multiplied by the number of years of credited service; or 40 percent of the member's final
average compensation.
• Form of Payment
Life annuity.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 51
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN PROVISIONS TABLE XIIa
(CONTINUED)
15. Ordinary Death Benefit
• Eligibility
Completion of 3 years of Creditable Service.
• Condition
The member must have died for a reason other than while in the actual performance of duty.
• Amount
Lump sum payment of accumulated contributions plus 50% of compensation during the year
immediately preceding death.
16. Surviving Spouse Benefit
• Eligibility
Any member who is eligible for Normal, Early, or Rule of 70 Retirement who dies prior to actual
retirement and whose spouse elects not to receive a payment of the member's accumulated
contributions.
• Amount
If the member is eligible for retirement on September 30, 2010, 40% of the sum of the member's
basic retirement benefit calculated as if the member had attained age 55 and retired on date of death.
In addition, the surviving spouse will receive 50% of the member's compensation during the year
immediately preceding death. If the member is not eligible for retirement on September 30, 2010,
the spousal benefit will be based on the optional form of payment elected by the member. If the
member has not elected an optional allowance, the spouse will receive the 40% survivor benefit
actuarially reduced.
• Form of Payment
Life annuity.
17. Accidental Death Benefit
• Eligibility
Membership in the Plan.
• Condition
The member must have died accidentally while in the actual performance of duty.
• Amount
50% of Average Final Compensation plus a lump sum payment equal to accumulated contributions.
• Form of Payment
Life annuity.
18. Minimum Retired Death Benefit
A retired member who dies prior to having received 12 monthly retirement payments and prior to
having an optional allowance becoming effective will have a lump sum equal to the excess, if
any, of 12 times the monthly payments over the actual payments received paid to his designated
beneficiary.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 52
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN PROVISIONS
TABLE XIIa
19. Return of Contributions
(CONTINUED)
A member who terminates employment and is not eligible for any other benefit shall receive a refund of
his accumulated contributions. If a member dies in active service, his beneficiary shall receive a refund of
his accumulated contributions except as otherwise noted in this section.
20. Cost -of -Living Adjustment
Effective October 1, 1998, the annual cost -of -living benefit will be 4% of the total benefit with
minimum increases of $54 per year and maximum increases of $400 per year.
21. Limitation on Benefits
Effective September 30, 2012, for members not eligible to retire on that date, member retirement
allowances shall not exceed the lesser of 100 percent of the member's average final compensation or an
annual retirement allowance of $80,000 as of the retirement or DROP entry based on the normal form of
benefit in effect on the date of retirement. In no event shall the benefit limitation be less than the member's
accrued benefit on September 30, 2012 based on the normal form of benefit in effect on that date.
22. Deferred retirement option program ("DROP"):
Any employee who is eligible for a service or Rule of 70 retirement is eligible to participate in the
DROP. Upon election of participation, a member's creditable service, accrued benefits, and
compensation calculation are frozen and the DROP payment is based on the member's average final
compensation. The member's contribution and the City contribution to the retirement plan for that
member ceases as no further service credit is earned. The member does not acquire additional pension
credit for the purposes of the pension plan but may continue City employment for up to a maximum
of 48 months. Once the maximum participation has been achieved, the participant must terminate
employment.
There are two DROP programs, the Forward Drop and the BACDROP. A member can participate in
both programs simultaneously. The Forward DROP is a DROP benefit equal to the regular retirement
benefit the member would have received had the member separated from service and commenced the
receipt of benefits from the plan. The BACDROP is a DROP benefit actuarially calculated. A member
may elect to BACDROP to a date, no further back than the date of the member's retirement eligibility
date. The BACDROP period must be in 12 month increments, beginning at the start of a pay period,
not to exceed 48 months. The benefits for the BACDROP will then be actuarially calculated to be the
equivalent to the benefit earned at the date of retirement.
An individual account is created for each participant. The Board of Trustees of the retirement plan has
established, by administrative rule, a series of investment vehicles which may be chosen by the
participant. Any losses incurred on account of the option selected by the participant will not be made
up by the City or the GESE Trust, and will be borne by the participant only. All interest will be credited
to the member's account
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 53
Submitted into the public
Record for item(s) D3.1
on 02/26/2015. City Clerk
PLAN PROVISIONS
TABLE XIla
(CONTINUED)
22. Deferred retirement option program ("DROP") continued:
Upon termination of employment, a participant may receive payment from the DROP account in a lump
sum distribution; or periodic payments. A participant may elect to rollover the balance to another qualified
retirement plan, individual retirement account, an Internal Revenue Code Section 457 Plan, or an annuity.
A participant may defer payment until the latest date authorized by Section 401(a)(9) of the Internal
Revenue Code. DROP participation will not affect any other death or disability benefit provided under
law or applicable collective bargaining agreement. If a participant dies before the account balances are
paid out in full, the beneficiary will receive the remaining balance.
23. Backdrop option
A Backdrop benefit option shall be implemented on January 1, 2013. The Backdrop option shall replace
the existing DROP program. Employees who have not attained normal retirement eligibility as of January
1, 2013 or were not vested by October 1, 2010, and all employees hired on or after January 1, 2013, will
be eligible for the Backdrop option but will not be eligible for the DROP. Anyone eligible for the forward
DROP as of January 1, 2013 remains eligible for the forward DROP as it presently exists and anyone
eligible for the forward DROP as of January 1, 2013 or vested prior to October 1, 2010, who chooses not
to enter the forward DROP, remains eligible for the Backdrop.
Under the Backdrop option a member can receive a lump sum payment in addition to a monthly pension
annuity. The employee chooses to take a Backdrop at the end of his employment with the City as long as he
or she Backdrops to any date after he/she reaches the Normal Retirement date. If the member elects the
Backdrop option, the monthly benefit payable on the member's actual retirement date (when the member leaves
City employment) is based on the benefit the member would have received had he or she left employment and
retired on an earlier Normal Retirement (NR) date, referred to as the Backdrop date. In addition, the member
will receive a lump sum payment equal to the accumulation of annuity payments he or she would have received
during the Backdrop period had he or she elected to receive immediate pension annuity payments starting as of
the Backdrop date. Annuity payments would be accumulated at the rate of 3% per year, compounded annually.
The member's Backdrop date can be any date after his or her Normal Retirement Date and the Backdrop period
can be as little as one year and as long as 7 years (see below for the eligibility rules). If the member does not
elect a Backdrop benefit option, his or her monthly retirement benefit will be calculated using his or her final
average final compensation and creditable service as of the member's actual employment termination date.
Eligibility
All members are eligible to elect Backdrop after completing one year of service after eligibility for Normal
Retirement. A Backdrop election must be made within 10 years after becoming eligible for Normal Retirement.
The maximum Backdrop period is 7 years. Members who wish to elect the Backdrop option
must provide at least 8 months notice to separate, or a lesser period could apply if approved by the City Manager
(due to special circumstances).
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 54
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN PROVISIONS
TABLE XIIa
(CONTINUED)
Distribution Options
The lump sum portion of this Backdrop benefit option is payable as follows:
Cash Option
Rollover to another tax deferred account (e.g. IRA) Option
Combination Cash and Rollover Option
The annuity portion (as well as the Backdrop annuity accumulation) of this Backdrop benefit option is payable
according to the annuity form elected (e.g. Joint and 100% Survivor annuity).
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 55
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN AMENDMENTS
TABLE XIIb
The following plan amendments have been adopted within the past few years*:
1. Effective October 1, 1991:
a) Basic retirement benefit increased from 2.00% to 2.25%.
b) Rule of 75 retirement was changed to Rule of 70.
c) Cost of COLA was added.
2. Effective October 1, 1995: Early Retirement Incentive Program was implemented.
3. Effective October 1, 1997: No Changes
4. Effective October 1, 1998:
a) Basic retirement benefit multiplier is increased from 2.25% to 3.00%.
b) The Longevity Supplement ceases to be available.
c) The COLA percentage increased from 2% to 4% and the maximum COLA benefit increase of
$200 per year is increased to $400 per year. In addition, the maximum cumulative COLA
benefit on a quarterly basis is eliminated.
5. Effective October 1, 2007: Benefit reduction factors used for optional forms of benefit payment were
updated.
6. Effective October 1, 2008:
a) The AFSCME bargaining unit members contribute 13% of payroll for fiscal year 2009/2010.
7. Effective September 30, 2010. The benefit changes do not apply to members eligible to retire (that is, meet
Rule of 70 or age 55 and 10 years of creditable service) on that date:
a) Normal Retirement Date: Earlier of age 60 with 10 years of service, age 55 with 30 years
of service or Rule of 80.
b) Benefit Formula: 2.25% per year — first 15 years; 2.5% per year -- 16 to 20 years; and
2.75% per year — over 20 years. The new benefit formula applies to all future service.
Members as of September 30, 2010 retain the 3% benefit percentage earned up to that
date, and earn the new percentage (based on years of service) for each year of service after
that date.
Example: current member with 20 years of service (but not eligible for normal retirement)
would retain 60% multiplier earned prior to plan change, and earn 2.75% for each year of
service after the plan change.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 56
Submitted into the public
Record for item(s) D3.1
on 02/26/2015, City Clerk
PLAN AMENDMENTS
TABLE XIIb
(CONTINUED)
c) Maximum Benefit: Maximum annual benefit at retirement is lesser of 100% of average
final compensation benefit and $100,000 per year. Any member who has accrued a
benefit in excess of the maximum benefit as of September 30, 2010 will retain that benefit
but will not accrue any additional benefit.
d) Normal Benefit Form: Life annuity. Members may elect actuarially reduced survivor
options.
e) Average final compensation: average of highest five consecutive years of the last 10 years
of service, to be phased in over three years as follows: average final compensation for
members who retire between October 1, 2010 and September 30, 2011 will be based on
highest 3 consecutive year average; average final compensation for members who retire
between October 1, 2011 and September 30, 2012 will be based on highest 4 consecutive
year average; and average final compensation for members who retire after September 30,
2013 will be based on the highest 5 consecutive year average of the last 10 years of
service. Provided, in no event will the average final compensation of any member be less
than the member's average final compensation as of the date of the plan change.
f) Contribution rate of 13% of pay for all members effective October 1, 2010. The 13%
contribution rate applies to all members whether or not eligible to retire on September 30,
2010.
8. Effective October 1, 2011:
a) Maximum Benefit: Effective September 30, 2012, the maximum annual benefit at
retirement is $80,000 per year. Any member who has accrued a benefit in excess of the
maximum benefit as of September 30, 2012 will retain that benefit but will not accrue any
additional benefit.
b) Contribution rate of 10% of pay for all members effective October 1, 2012. The 10%
contribution rate applies to all members whether or not eligible to retire on September 30,
2010.
c) BACKDROP option. A Backdrop benefit option shall be implemented on January 1, 2013. The
Backdrop option shall replace the existing DROP program. Employees who have not attained
normal retirement eligibility as ofJanuary 1, 2013 or were not vested by October 1, 2010, and all
employees hired on or after January 1, 2013, will be eligible for the Backdrop option but will not
be eligible for the DROP. Anyone eligible for the forward DROP as of January 1, 2013 remains
eligible for the forward DROP as it presently exists and anyone eligible for the forward DROP as
ofJanuary 1, 2013 or vested prior to October 1, 2010, who chooses not to enter the forward DROP,
remains eligible for the Backdrop.
* Note: Amendments that have first been reflected in this valuation are indicated in bold print.
CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST PAGE 57