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51-2000
51-5000
51-6000
52-1000
52-2000
52-3000
52-4000
53-1000
53-1010
53-1020
53-2000
54-0000
54-1000
54-1100
54-3000
54-4000
54-5000
54-6000
55-1000
55-4000
66-4000
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
LINE ITEMS
Salaries
Special Pay
Fringe Benefits
FICA Taxes
Retirement Contributions
Life & Health Insurance
Worker's Compensation
Professional Serv-Act,Cust,Cons,Spe
Professional Sery - Legal
Professional Sery - Medical
Accounting/Auditing
Travel/Education
Communications & Related Services
Postage (Courier, Federal Express)
Utility Services
Rentals & Leases
Insurance
Repair/Maintenance/Cleaning Service
Office Supplies (Inc. Meeting Costs)
Books/Publications/Memberships
Equipment/Programs - New
2014/2015 2015/2016
493,566.00 418,905.00
40,000.00 30,598.00
44,692.00 26,950.00
37,758.00 34,108.00
61,800.00 29,017.00
74,381.00 55,125.00
1,900.00 1,900.00
703,000.00 715,325.00
202, 000.00 153,490.00
1,000.00 1,000.00
43,500.00 40,500.00
35,000.00 40,000.00
8,000.00 8,000.00
16,800.00 15,000.00
16,460.00 17,000.00
142, 550.00 142, 750.00
87,000.00 100,000.00
140,000.00 145,000.00
20,000.00 20,000.00
3,154.00 2,500.00
50,000.00 32,000.00
TOTALS: 2,222,561.00 2,029,168.00
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
October 1, 2014 Actuarial Report
(UPDATED FOR EXPENSE ASSUMPTION)
For the Fiscal and Plan Year
October 1, 2015
through
September 30, 2016
Prepared By:
The Nyhart Company, Inc.
2000 RiverEdge Parkway/ Suite 900
Atlanta, GA 30328
(770) 933-1933
July 10, 2015
July 10, 2015
Board of Trustees
City of Miami Fire Fighters' and
Police Officers' Retirement Trust
1895 SW 3 Avenue
Miami, FL 33129-1456
October 1, 2014 Actuarial Report
Dear Board Members:
Enclosed is our report on the actuarial valuation of the City of Miami Fire Fighters' and Police Officers'
Retirement Trust as of October 1, 2014, for the fiscal year beginning October 1, 2015.
The report is based upon the terms of Ordinance No. 10002 and the Amended Final Judgment in the matter of
Gates v. City of Miami, as well as Ordinance 13344.
The City contribution requirement for the 2015/2016 fiscal year is $43,964,153, compared to $43,995,049 for
the 2014/2015 fiscal year.
When expressed as a percentage of total payroll (for active members and members in forward DROP), the City
contribution rate decreased from 35.32% as of October 1, 2013 to 34.40% as of October 1, 2014. The
percentages of total payroll reflect the hypothetical impact on funding if there were no forward DROP, since
members who are presently in DROP could well be more likely to be retired and replaced with active
members. The ordinance and State law do not permit funding after members enter a forward DROP.
Respectfully submitted,
THE NYHART COMPANY, INC.
a
David D. Harris, ASA, FCA, MAAA, EA
Actuary
Randall L Stanley, FSA, MAAA,
Actuary
Enclosures: Electronic (dania(a,miamifipo org)
Bound (10 copies)
DDH/HWM/RLS/di
MIAM501801/701
2000 Rive rEdge Parkway
Suite 900
Atlanta, GA 30328
(p) 770-933-1933
(p) 800-428-7106
(f) 888-398-7366
www.nyhart.com
Heath W. Merlak, FSA, MAAA, EA
Actuary
An Alliance Benefit Group Licensee
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
OCTOBER 1, 2014 ACTUARIAL REPORT
Table of Contents
-Page-
SUMMARY OF RESULTS - Regular Fund 1-2
SUMMARY OF RESULTS COLA Fund 3
REVIEW OF COSTS 4-12
Summary Discussion 4
Comparison of Deposit Requirements 4
Table 1 Historical City Costs 4
Analysis of Cost Changes 5
Table 2 — Gain/Loss Analysis 5
Plan Assets 7
Table 3 — Actuarial vs. Market Value of Assets 7
Expected Ongoing Cost Levels 8
Sources of Benefit Funding 8
Table 4 — Funding Sources 8
Funding Progress 9
Table 5 — Actuarial Assets and Liabilities 9
Governmental Accounting Standards 10
Allocated Contribution Requirements 10
Florida SB 534 Disclosures 10
COLA Fund 11
Cumulative Experience Position 11
COLA Transfer Calculations 11
Enrolled Actuary's Statement 12
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
OCTOBER 1, 2014 ACTUARIAL REPORT
Table of Contents
(Continued)
EXHIBITS
-Page-
1 City Contribution Requirement for 2015/2016 Fiscal Year 13
2A Development of Actuarial Asset Value 15
2B Development of Actuarial Asset Value (3 Years for COLA Transfers) 16
2C Calculation of Excess Investment Return 17
3 Summary of Asset Transactions 18
4 Distribution of Assets 19
5 Summary of Accounting Information 21
6 Comparison of Funding Progress 22
7 Member Statistics 23
8 Summary of Principal System Provisions 26
9 Summary of Actuarial Basis 32
10 Infornation Under Florida Statutes 36
11 Information for Florida SB 534 and Hypothetical City Contribution 38
COLA Exhibits
12 COLA Fund Increases 45
13 COLA Fund - Assets and Liabilities 47
14 Cumulative Experience Position Net of Asset Transfers 49
15 Summary of Principal COLA Provisions 50
16 Summary of Actuarial Basis - COLA Fund 53
17 Disclosure Information 56
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Comparative Summary of Principal Valuation Results Regular Fund
A. Participant Data (Ex.7)
Active Members
Covered Payroll
Actuarial Valuation
Prepared as of
10/1/2014 10/1/2013
1,482 1,273
$93,705,765 $85,222,842
Members in Forward DROP 401 474
DROP Payroll $34,080,879 $39,340,208
Projected Total Payroll $127,786,644 $124,563,050
Retired Members and Beneficiaries
Total Annualized Benefits
Disabled Members
Total Annualized Benefits
2,098 2,119
$122,009,571 $122,124,656
149 161
$3,297,718 $3,438,990
Terminated Vested Members 12 13
Total Annualized Benefits $319,796 $391,669
B. Assets -$- -$-
Actuarial Value (Ex. 2A) 1,151,016,531 1,145,461,866
Market Value (Ex. 4) 1,136,462,242 1,121,166,552
C. Liabilities (Excl. COLA)
Present Value of Projected Benefits (Ex. 1)
Active Members - Retirement 406,475,370 355,226,122
Vesting 25,029,798 22,199,983
Disability 51,259,582 45,613,622
Death 7,307,646 6,437,282
Return of Contributions 2,235,295 1,777,650
Total 492,307,691 431,254,659
Inactive Members - Retired and Beneficiaries 1,338,709,196 1,344,589,383
Disabled 28,692,260 29,878,873
Terminated Vested 2,307,321 2,847,867
Total 1,369,708,777 1,377,316,123
Total 1,862,016,468 1,808,570,782
Actuarial Accrued Liability
Unfunded Actuarial Accrued Liability
N/A N/A
N/A N/A
1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Comparative Summary of Principal Valuation Results - Regular Fund
(Continued)
D. Present Value of Accrued Benefits
(Exhibit 5)
Vested Accrued Benefits
Inactive Members and Beneficiaries
Active Members
Total
Non -Vested Accrued Benefits
Total
E. Pension Cost (Exhibit 1)
Normal Cost
Payment to Amortize Unfunded Liability
Expected Plan Sponsor Contribution
As % of Covered Payroll
As % of Total Payroll
Expected Member Contribution
As % of Payroll
F. Past Contributions
Required Plan Sponsor Contribution
Required Member Contributions
Actual Contributions
Plan Sponsor
Members
G. Net Actuarial Gain (Loss)
H. Other Disclosures
Active Members:
Present Value Future Salaries
(at attained age)
Present Value Future Contributions
(at attained age)
Actuarial Valuation
Prepared as of
10/1/2014 10/1/2013
-$- -$-
1,369,708,777
208,780,651
1,578,489,428
11,128,196
1,589,617,624
52,045,324
N/A
43,964,153
46.92%
34.40%
8,081,171
8.62%
Year Ending
9/30/2014
-$-
42,057,691
9,462,569
42,057,691
9,462,569
N/A
1,377,316,123
172,853,328
1,550,169,451
6,592,056
1,556,761,507
52,517,333
N/A
43,995,049
51.62%
35.32%
8,522,284
10.00%
Year Ending
9/30/2013
-$-
40,977,546
9,427,186
40,977,546
9,417,186
N/A
1,441,538,742 1,271,916,984
112,603,159 85,481,072
2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Comparative Summary of Principal Valuation Results — COLA Fund
A. Participant Data
Retired Members and Beneficiaries
Total Annualized Benefits
Disabled Members
Total Annualized Benefits
Table
B. Assets
Actuarial Value (Ex. 13)
Market Value (Ex. 3)
C. Liabilities (COLA Only)
Present Value of Allocated Benefits (Ex. 13)
Active Members - Reserve for Current Actives
Reserve for Contribution Refunds
Reserve for Future Actives
Total (excl. 457 Service)
Inactive Members -
Total
Frozen COLA I Benefits
COLA II Benefits
Total
Actuarial Valuation
Prepared as of
10/1/2014 10/1/2013
2,098
$22,606,546
149
$3,135,330
$1,670
-$-
476,271,814
394,567,656
41,302,497
N/A
6,195,375
47,497,872
856,184
326,413,125
327,269,309
374,767,181
Comparative Summary of Total Assets - Combined
Market Value (Ex. 4) 1,531,029,898 1,499,906,129
2,118
$21,919,475
161
$3,290,932
$1,629
-$-
456,457,838
378,739,577
31,689,347
N/A
4,753,402
36,442,749
1,000,098
282,539,187
283,539,285
319,982,034
3
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
REVIEW OF COSTS
Summary Discussion
This is the actuarial report for the fiscal year beginning October 1, 2015 for the City of Miami Fire Fighters'
and Police Officers' Retirement Trust. This is the thirty-first annual actuarial report prepared by The Nyhart
Company. This report is intended to reflect the provisions and requirements of Ordinance No. 10002, as well
as Ordinance 13344.
Comparison of Deposit Requirements
The City contribution requirements, and the results calculated for the 2015/2016 fiscal year, are as follows:
2015/2016 2015/2016 2014/2015
(new assumptions) (prior assumptions)
Past Service Cost N/A N/A N/A
Normal Cost 43,964,153 43,085,410 43,995,049
Payment Tuning 0 0 0
Percentage of Covered Payroll
Percentage of Total Payroll
43,964,153 43,085,410 43,995,049
46.92% 45.98% 51.62%
34.40% 33.72% 35.32%
The 2015/2016 deposit amount of $43,964,153 is $30,896 less than the $43,995,049 for the prior year and
$878,743 more than the amount under the prior assumptions.
80
60
40
20
0
Table 1: Historical City Costs
Fiscal Year Beginning October 1
Dollars (Millions) —- Percent of Covered Payroll
80%
60%
40%
20%
0%
4
Analysis of Cost Changes
The Normal Cost element of FIPO costs is expected to remain level as a percentage of covered payroll, if the
actual Plan experience is the same as the actuarial assumptions and there are no Plan or assumption changes. In
the absence of Plan or assumption changes, an increase in the Normal Cost rate indicates that experience in the
previous year has been less favorable than assumed, while a decrease indicates more favorable experience.
Quantification of the reasons for the changes is as follows:
Table 2 — Gain/Loss Analysis of Cost Changes from October 1, 2013 to October 1, 2014 Valuations
2013/2014 Normal Cost (Valuation Report)
2014/2015 Normal Cost Expected
(for continuing participants)
Element of Experience
Normal Cost
43,995,049 51.62(1)
43,907,730 49.68(1)
Salary Increases (2,675,342) (5.66)
Turnover (67,954) (0.08)
Mortality (444,226) (0.50)
Retirement 263,230 0.30
New Participants 1,501,255 1.60
Disability (93,552) (0.11)
Investment Return 256,021 0.27
Other, Data 438,248 0.48
Assumption Change 878,743 0.94
Total 56,423 (2.76)
2014/2015 Normal Cost 43,964,153 46.92(1)
34.40(2)
Percentage of Covered Payroll
Percentage of Total Payroll
Projected Total Payroll of $127,786,644 is equal to 100% of Covered Payroll of $93,705,765 plus
$34,080,879 payroll for members in DROP.
5
Following is a more detailed description of the elements of experience:
Salary Increases - During the period October 1, 2013 through September 30, 2014, covered payroll for the
continuing actives increased less than expected. This resulted in a decrease of $2,675,342 in the Normal Cost.
Covered payroll for continuing active participants at September 30, 2014 increased 1.38% compared to an
expected 7.72% increase.
Mortality - For active members there were 2 deaths, as compared to 1 expected; for inactive members there
were 71 deaths, as compared to 52 expected. This decreased the normal cost by $444,226.
Disability - During the past year there were no disabilities, as compared to 5 expected. This decreased the
normal cost by $93,552.
Turnover - From October 1, 2013 to September 30, 2014, there were 31 employee terminations, as compared
to 19 predicted by the actuarial assumptions. This decreased the normal cost by $67,954.
Retirement - There were 16 retirements during the period, as compared to 1 expected. This large number of
retirements caused an increase in costs of $263,230.
Investment Return - The rate of return for the year ending September 30, 2014 was 7.18% on actuarial asset
value (Exhibit 2A).
As shown in Exhibit 2C, there is no COLA transfer as of January 1, 2015; there could be a transfer on January
1, 2016 of $34,111,625 only if there were a favorable cumulative experience position as of September 30,
2015. The city minimum COLA contributions without the transfer is $5,696,920 on January 1, 2015 and
$5,924,797 on January 1, 2016 to the COLA fund.
New Members - During the year there were 255 new members, who increased the City contribution by
$1,501,255. Last year, 99 new members increased the cost by $581,328.
Administrative Expense - The prior year's assumed administrative cost was $2,222,561. This decreased to
$2,029,168 for the current year, decreasing the City contribution (with interest) by $207,897.
Assumption Change - The interest rate was decreased to 7.42% from 7.50%. This increased the City
contribution by $878,743.
Plan Assets
Exhibits 3 and 4 show the asset transactions and investment results during the year. The rate of return on mean
market value for the period ending September 30, 2014 was 8.6%; net of investment expenses.
The asset valuation method results in an actuarial asset value of $1.151 billion as of October 1, 2014 (Exhibit
2A), 101 % of the market value of $1.136 billion, as compared to 102% in the previous year. The rate of return
on Actuarial Asset Value was 7.18%, as compared to the 7.5% assumption for the fiscal year ending
September 30, 2014 (Exhibit 2A).
Table 3 illustrates the effect of using the current asset smoothing methodology. The volatility of the market
value of assets can be seen in the columns, while the actuarial value is illustrated by the line. The actuarial
asset value line reflects the 20% Write -Up Method from September 30, 2005.
1,400
1,200
1,000
c 800
C
600
400
200
0
Table 3: Actuarial vs. Market Value of Assets
Year (as of October't
MARKET VALUE —0—ACTUARIAL ASSET VALUE
For COLA transfer purposes, the actuarial asset valuation method utilizes a 3-year moving average (Exhibit
2B). Under this method, the rate of return for the year ending September 30, 2014 was 13.39%. This would
result in a transfer of $34,111,625 from the Regular Fund to the COLA Fund on January 1, 2016 (Exhibit 2C),
if there were a favorable cumulative experience position. However, the cumulative experience position is
unfavorable — a cumulative net loss of $233 million as of October 1, 2014 (Exhibit 14).
7
Expected Ongoing Cost Levels
System costs have varied dramatically over the past several years, due to asset performance, payroll practices, and
benefit changes. Since the City's contribution requirement is the primary variable, it has been significantly
impacted.
Nevertheless, it is important to distinguish between individual annual costs (which may be somewhat erratic) and
expected ongoing annual costs. The following table compares the City contribution requirement as a percentage of
payroll to the theoretical entry age normal City contribution percentages:
Valuation Date Contribution % EAN %
10/1/2014 47 18
10/1/2013 52 18
10/1/2012 51 17
10/1/2011 56 16
10/1/2010 53 18
10/1/2009 54 21
10/1/2008 43 21
10/1/2007 36 22
10/1/2006 40 23
10/1/2005 (Revised AAV) 44 23
10/1/2005 (Prior AAV) 60 23
Sources of Benefit Funding
Table 4 compares the sources of benefit funding for the past 10 years. The present value of benefits is equal to
100% in the Table. The present value of benefits is provided by three sources; the actuarial value of assets, the
present value of member contributions, and the present value of future normal costs (city).
100%
80%
60%
40%
20%
Table 4: Funding Sources
®Assets ❑Member ®City
As seen in the table, the city portion of future benefit responsibility decreased as asset values climbed during the
late nineties. When asset values started to decline, the city portion increased. As of October 1, 2014, the actuarial
value of assets equals 62% of the present value of projected benefits, the present value of member contributions
equals 6%, and the present value of future City normal costs equal 32% of the present value of future benefits.
8
Funding Progress
The comparison of the present values of vested and accrued benefits to FIPO assets from one year to the next,
or over a period of time, is a measure of interim funding progress and the degree of benefit security.
Exhibit 6 contains the result of this comparison for the past three years. The market value of assets on October
1, 2014 is $1,136,462,242, as compared to the value of accrued benefits of $1,589,671,624 for a ratio of
71.5%. The ratio as of October 1, 2013 was 72.0%.
A ratio in excess of 80% typically is one indication of a well -funded program.
As of October 1, 2014 the entry age reserve is $1,597.8 million. This compares to an Actuarial Asset Value of
$1,151.0 million, for a funded ratio of 72%. Last year the funded ratio was also 72%. These amounts, together
with other disclosures, are contained in Exhibit 11 and illustrated in the following Table 5:
0
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Table 5: Actuarial Assets and Liabilities
Year
EAR DAAV
9
Governmental Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued Statement No. 67 to replace GASB
Statement No. 25 ("Financial Reporting for Pension Plans") and Statement No. 68 to replace Statement No. 27
("Financial Reporting for Pensions").
A separate report, dated December 22, 2014, provides the necessary disclosures under GASB 67 and 68 for the
plan year ending September 30, 2014.
As was the case for GASB 25 and GASB 27, the new standards are not meant to be used as a funding basis.
Allocated Contribution Requirements
The Division of Retirement is now requiring that plans covering both police and firefighters disclose the costs
separately for the two groups. Since assets have not been separately maintained, this necessitates a
hypothetical asset allocation. Exhibit 11 shows this allocation, based on the Entry Age Accrued Liabilities,
calculated separately for the two groups.
As shown in Exhibit 11, the asset and resulting Unfunded allocation approach based on the Actuarial Accrued
Liability results in allocated amounts for these two cost components that are equal to the total components.
Florida SB 534 Disclosures
The State of Florida now requires that plans report their funded ratio, recommended contribution, and asset
duration under a standard set of assumptions, using both the funding rate and a rate 200 basis points lower.
The required mortality table is RP 2000 with generational projection using Scale AA. Exhibit 10 provides
this information. For balance, we also have calculated and shown results using a rate 200 basis points higher
than the current funding rate.
COLA Fund
Calculations were made based on the information provided as of 10/1/2014. The calculations reflect the
approach adopted with the Amended Final Judgment in the matter of Gates vs. City of Miami.
Exhibit 12, parts I and II, illustrate the general impact of the COLA increases which have been provided thus
far (under the $1,629 table as of 1/1/2015), by duration since retirement and by age, respectively.
As discussed in earlier reports, there is probably no completely acceptable index for measuring the impact of
inflation on retirees' benefits. Although the CPI is the most widely used inflation index, it is generally
considered to distort inflation for retirees, since it includes components which are not typically germane to
them, such as home purchases. In the absence of a suitable alternative, a percentage of the CPI is often used as
a target. If the cumulative CPI were used as a target, the current COLA averages 58% of the target. A
comparison of COLA increases to the CPI is shown in Exhibit 12, part III. Historical data on the CPI is shown
in Exhibit 12, part IV.
Cumulative Experience Position
Ordinance Section 40-204(C) (4) provides that transfers of excess investment return from the Regular Fund to
the COLA Fund may be made only if the System remains in a net positive experience position on a cumulative
basis from October 1, 1982. This result is the same as that for the previous year - a potential transfer
eliminated due to the experience position. Since the aggregate cost method is used for determining funding
requirements, the determination of the experience position is measured under the entry age normal method.
The cumulative experience loss increased from $219,095,159 as of October 1, 2013, to a cumulative loss of
$232,905,953 as of October 1, 2014 (Exhibit 14).
COLA Transfer Calculations
Exhibit 2C shows the transfer calculations as of this valuation. As will be noted, the excess return transfer as
of January 1, 2015 is scheduled to be $0 and the excess return transfer as of January 1, 2016 is $0. Therefore, a
City contribution to the COLA fund of $5,696,920 was due as of January 1, 2015.
The excess return on the COLA Funds resulted in a $41 increase in the COLA Table, from $1,629 to $1,670
(Exhibit 13).
11
Enrolled Actuary's Statement
This report has been prepared in accordance with standards established by the American Academy of
Actuaries. To the best of our knowledge, it reflects the actuarial condition of the City of Miami Fire Fighters'
and Police Officers' Retirement Trust as of October 1, 2014 for the Retirement Fund and for the COLA Fund.
All costs and cost components are calculated on the basis of actuarial assumptions which reasonably reflect the
experience of the Trust.
This actuarial valuation and/or cost determination 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.
With respect to reporting standards for defined benefit retirement plans or systems contained in Section
112.664(1), F.S., the actuarial disclosures required under this section were 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, meet the requirements of Section 112.664 (1),
Florida Statutes, and Rule 60T-1.0035, Florida Administrative Code.
July 10, 2015
David D. Harris Date
Enrolled Actuary No. 14-5609
Copies of this Report are to be furnished to the Division of Retirement within 60 days of receipt from the
actuary at the following addresses:
Ms. Sarah Carr
Benefits Administrator
Municipal Police Officers' &
Firefighters' Trust Funds
Division of Retirement
Post Office Box 3010
Tallahassee, FL 32315-3010
Mr. Keith Brinkman
Bureau & Chief
Local Retirement Systems
Division of Retirement
Department of Management Services
P. O. Box 9000
Tallahassee, FL 32315-9000
12
EXHIBIT 1
Page 1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
City Contribution Requirement for 2015/2016 Fiscal Year
2015/2016 2014/2015
-$- -$-
I. Unfunded Actuarial Accrued Liability N/A N/A
II. Normal Cost
A. Present Value of Future Benefits
1. Active Members
a. Retirement 406,475,370 355,226,122
b. Disability 51,259,582 45,613,622
c. Death 7,307,646 6,437,282
d. Turnover 25,029,798 22,199,983
e. Return of Contributions 2,235,295 1,777,650
f. Total 492,307,691 431,254,659
2. Retired Members and Beneficiaries
a. Service Retirements and
Beneficiaries 1,338,709,196 1,344,589,383
b. Disability Retirements 28,692,260 29,878,873
c. Terminated Vested Members 2,307,321 2,847,867
d. Total 1,369,708,777 1,377,316,123
3. Total
1,862,016,468 1,808,570,782
13
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
City Contribution Requirement for 2015/2016 Fiscal Year
II. Normal Cost (Cont'd)
A. Total Present Value of
Future Benefits
EXHIBIT 1
Page 2
2015/2016 2014/2015
1,862,016,468 1,808,570,782
B. Present Value of
Future Member Contributions 112,603,159 85,481,072
C. Actuarial Asset Value 1,151,016,531 1,145,461,866
D. Unfunded Actuarial Accrued Liability 0 0
E. Present Value of Future Normal Costs
(A-B-C-D) 598,396,778 577,627,844
F. Present Value of Future Payrolls 1,441,538,742 1,271,916,984
G. Administrative Expense 2,029,168 2,222,561
H. Current Payroll for those under
Expected Retirement Age 93,705,765 85,222,842
I. Interest Rate 7.42% 7.50%
J. Current Normal Cost - Payable 10/1/2014
([ (E)x(H) / (F) ] + (G)) (1+(I)) 43,964,153 43,995,049
K. Covered Payroll 93,705,765 85,222,842
L. Normal Cost as Percentage of Covered Payroll
(J)/ (K) 46.92% 51.62%
III. Quarterly City Contribution Schedule
A. Past Service Cost 0 0
B. Normal Cost 43,964,153 43,995,049
C. Payment Timing 0 0
D. Total 43,964,153 43,995,049
14
CITY OF MIANII
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Actuarial Asset Value — 20% Write Up Method
I. Determination of Actuarial Asset Value as of October 1, 2014
EXHIBIT 2A
-$-
A. Actuarial Value of Assets as of 10/01/2013 1,145,461,866
B. City Contributions 42,057,691
C. Member Contributions 9,462,569
D. Benefits Paid 125,502,361
E. Contributions Refunded 950,026
F. Expected Return (1) 84,125,364
G. Expected Actuarial Value of Assets (A+B+C-D-E+F) 1,154,655,103
H. Market Value of Assets at 9/30/2014 1,136,462,242
I. Present Value of 01/01/15 COLA Transfer 0
J. Present Value of 01/01/16 COLA Transfer 0
K. Difference (H-I-J-G) (18,192,861)
L. 20% of Difference (3,638,572)
M. Preliminary Actuarial Asset Value (G+L) 1,151,016,531
N. Maximum Actuarial Asset Value (120% of H-I-J) 1,363,754,690
O. Minimum Actuarial Asset Value (80% of H-I-J) 909,169,794
P. Actuarial Asset Value at 10/1/2014 1,151,016,531
Q. Contribution Surplus Account Balance 0
R. Final Actuarial Value at 10/01/2014 (P — Q) 1,151,016,531
II. Rate of Return on Actuarial Asset Value
-$-
A. Actuarial Asset Value at 10/01/2013 1,145,461,866
B. Contributions
1. City (Including amount from Contribution Surplus Account) 42,057,691
2. Members 9,462,569
3. Total 51,520,260
C. Benefits and Refunds 126,452,387
D. Contribution Surplus 0
E. Actuarial Asset Value at 10/01/2014 1,151,016,531
F. Net Return on Investment [E+D+C-B-A] 80,486,792
G. Rate of Return (II F/I F) (.075) 7.18%
(1) [1,145,461,866 + 9,462,569 (2.5/4) - (125,502,361 + 950,026) (13/24)] (.075) + $2,909,294
15
EXHIBIT 2B
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
I. Development of Actuarial Asset Value (3 Years, for COLA Transfer Purposes)
9/30/2014 9/30/2013 9/30/2012
-$- -$- -$-
A. Book Value 990,924,999 981,432,150 982,006,300
B. Market Value 1,136,462,242 1,121,166,552 1,075,059,845
C. B/A 1.1468701 1.1423781 1.0947586
D. 1/3 (C)
E. Adjusted Market Value at 9/30/2014
D x $990,924,999
F. Contribution Surplus at 9/30/2014
G. 1. 80% of (Market Value — (F))
2. 120% of (Market Value — (F))
H. Preliminary Actuarial
Asset Value (E — F)
I. Present Value of 1/1/2016
COLA Transfer, discounted at 7.50%
J. Actuarial Asset Value
II. Rate of Return on Actuarial Asset Value
1.1280023
1,117,765,678
0
909,169,794
1,363,754,690
1,117,765,678
0
1,117,765,678
-$-
A. Actuarial Asset Value at 10/01/2013 1,056,251,304
B. Contributions
1. City (Including amount from Contribution Surplus Account) 42,057,691
2. Members 9,462,569
3. Total 51,520,260
C. Benefits and Refunds 126,452,387
D. Present Value of 1/1/2016
COLA Transfer 0
E. Contribution Surplus 0
F. Actuarial Asset Value at 10/01/2014 1,117,765,678
G. Net Return on Investment [F+E+D+C-B-A] 136,446,501
H. Rate of Return [2 x G/ (A+F-G)] 13.39%
16
EXHIBIT 2C
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Calculation of Excess Investment Return
On Membership and Benefits Accounts for 2013/2014 Fiscal Year
2016 COLA Transfer
I. Net Actual Return on Actuarial Asset Value -$-
A. Preliminary Actuarial Asset Value as of 10/1/2014 1,117,765,678
B. Benefits Paid During Plan Year 125,502,361
C. Contributions Refunded During Plan Year 950,026
D. City Contributions During Plan Year (Required) 42,057,691
E. Member Contributions During Plan Year 9,462,569
F. Actuarial Asset Value as of 10/1/2013 1,056,251,304
G. Total Actual Return During Plan year
(A)+(B)+(C)-(D)-(E)-(F) 136,446,501
II. Net Expected Return on Actuarial Asset Value
A. Actuarial Asset Value as of 10/1/2013 1,056,251,304
B. Benefits Paid During Plan Year 125,502,361
C. Contributions Refunded During Plan Year 950,026
D. City Contributions During Plan Year (Required) 42,057,691
E. Member Contributions During Plan Year 9,462,569
F. Expected Rate of Return 7.50%
G. Expected Return During Plan Year 77,434,572 (1)
H. Base Amount for Expected Return (G)/.075 1,032,460,960
1. Excess Return on Assets (I(G) - II(G)) 59,011,929
J. Excess Return as % of II(H) 5.715657%(2)
III. Amount to be Transferred to COLA Fund
A. Excess Return COLA Transfer
% $ % -$-
First 2.5 25,811,524 75 19,358,643
Next 2.5 25,811,524 50 12,905,762
Next 2.5 7,388,881 25 1,847,220
B. Total Transfer Amount at 1/1/2016 34,111,625 (3)
(1)Assumes Uniform Quarterly Contributions and Monthly Benefits
[1,056,251,304 + (9,462,569) (2.5/4) - (125,502,361
+950,026) (13/24)](.075) + 2,909,294 = 77,434,572
(2) Before 1/1/2016 COLA Transfer
(3) Limited to favorable cumulative experience position
17
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Asset Transactions for Year Ending September 30, 2014 (1),
A. Market Value as of October 1, 2013
B. Book Value as of October 1, 2013
EXHIBIT 3
Membership and COLA I COLA II
Benefits Accounts Account Account
-$- -$- -$-
1,121,166,552 53,148,851 325,590,726
981,432,150 46,508,512 284,911,896
C. Income During Year
1. City Contributions 42,057,691 0 5,477,808
2. Member Contributions 9,462,569 0 0
3. Other Contributions 0 0 0
4. Interest 16,928,376 824,233 5,023,799
5. Dividends 9,581,173 461,789 2,776,954
6. Net Realized Gains (Losses) 63,534,335 3,052,730 18,365,703
7. Securities Lending Income 684,999 32,966 198,236
8. Rental and Other Income 226,132 10,897 65,315
9. Income Transfer 0 0 0
142,475,275 4,382,615 31,907,815
D. Disbursements during Years
1. Benefit Payments 125,502,361 185,354 22,003,055
2. Contribution Refunds 950,026 0 0
3. Custodial and Investment Expenses 4,188,007 201,417 1,211,047
4. Administrative Expense 2,131,915 0 0
5. Other Expense 38,918 1,889 11,359
6. Securities Lending Fees 139,449 6,782 40,292
7. Building Depreciation 31,750 1,603 9,373
132,982,426 397,045 23,275,126
E. Book Value as of September 30, 2014
(B)+(C)-(D) 990,924,999 50,494,082 293,544,585
F. Net Change in Unrealized Gains (Losses) 5,802,841 775,731 2,434,089
G. Unrealized Gains (Losses) 145,537,243 7,416,070 43,112,919
H. Market Value as of September 30, 2014
(A)+(C)-(D)+(F) 1,136,462,242 57,910,152 336,657,504
I. January 1, 2015 Allocation
to COLA II (discounted) 0 N/A 0
J. Net Market Value as of September 30, 2014 1,136,462,242 57,910,152 336,657,504
(1) Based on unaudited financial statements.
18
EXHIBIT 4
Page 1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Distribution of Assets as of September 30, 2014 (1)
Membership and Benefits and Cost -of -Living Adjustment Accounts
Description Market Book
Bills, Bonds, Notes 557,707,119 551,597,651
Domestic Stocks 440,474,162 314,336,011
International Stocks 240,748,408 208,671,851
Private Equity 89,928,665 81,676,149
Money Market Funds and Time Deposits 20,142,818 21,324,999
Mutual Funds 130,082,977 105,411,256
Real Estate (2) 1,914,461 1,914,461
Securities Lending Adjustment 0 0
A: Sub -Total 1,480,998,610 1,284,932,378
B: Cash
54,502,218 54,502,218
Receivables:
City Contributions 0 0
Accounts Receivable 5,768 5,768
Member Contributions 0 0
Accrued Interest 2,777,229 2,777,229
Accrued Dividends 1,031,602 1,031,602
Securities Sold 8,518,663 8,518,663
C: Sub -Total 12,333,262 12,333,262
Payables:
Budget Advance 0 0
Accrual Expense 131,123 131,123
Transfer 0 0
Tax Withheld 0 0
Accounts Payable 352,554 352,554
Securities Purchased 16,320,515 16,320,515
D: Sub -Total 16,804,192 16,804,192
E. Total (A+B+C-D) 1,531,029,898 1,334,963,666
Accounts:
COLA I Account 57,910,152 50,494,082
COLA II Account 336,657,504 293,544,585
COLA II Transfer (1/1/2015) 0 0
F: Membership & Benefits Account
1,136,462,242 990,924,999
(1) Based on unaudited financial statements.
(2) Reflects accumulated depreciation of $512,709.
19
EXHIBIT 4
Page 2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Investment Results
Yield on Mean Values for 12-Month Period Ending September 30, 2014(1)
Market Book
Membership and Benefits Accounts
Interest 16,928,376 1.6 1.8
Dividends 9,581,173 0.9 1.0
Rental and Other Income, less Depreciation 194,382 0.0 0.0
Realized Gains 63,534,335 5.9 6.7
Securities Lending (Net) 545,550 0.1 0.1
Increase in Unrealized Gains 5,802,841 0.5 --
Custodial and Investment Expenses (4,188,007) (0.4) (0.4)
92,398,650 8.6 9.2
COLA I Account
Interest 824,233 1.6 1.8
Dividends 461,789 0.9 1.0
Rental and Other Income, less Depreciation 9,294 0.0 0.0
Realized Gains 3,052,730 5.8 6.6
Securities Lending (Net) 26,184 0.0 0.1
Increase in Unrealized Gains 775,731 1.5 --
Custodial and Investment Expenses (201,417) (0.4) (0.4)
4,948,544 9.4 9.1
COLA II Account
Interest 5,023,799 1.6 1.8
Dividends 2,776,954 0.9 1.0
Rental and Other Income, less Depreciation 55,942 0.0 0.0
Realized Gains 18,365,703 5.8 6.6
Securities Lending (Net) 157,944 0.0 0.1
Increase in Unrealized Gains 2,434,089 0.8 --
Custodial and Investment Expenses (1,211,047) (0.4) (0.4)
27,603,384 8.7 9.1
(1) Before 1/1/2016 COLA transfer, if any
20
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Accounting Information
As of October 1
2014
-$-
I. Present Value of Vested Accrued Benefits
A. Service Retirements and Beneficiaries 1,338,709,196
B. Disability Retirements 28,692,260
C. Vested Terminated Members 2,307,321
D. Active Members 208,780,651
E. Total 1,578,489,428
II. Present Value of Non -Vested Accrued Benefits 11,128,196
III. Present Value of Accrued Benefits 1,589,617,624
IV. The values of accumulated plan benefits were determined in accordance with the
Academy of Actuaries Interpretations and ASC 960 (formerly FASB Statement
No. 35, Accounting and Reporting by Defined Benefit Pension Plans.)
V. Statement of Changes in Accrued Benefits
A. Present Value of Accrued
Benefits at Beginning of Year
B. Increase (Decrease) During the Year Attributable to:
1. Benefits Accumulated
2. Benefits Paid and Contributions Refunded
3. Plan Amendment
4. Assumption/Method Changes
5. Increase Due to Decrease in Discount Period
6. Net Increase
EXHIBIT 5
2013
-$-
1,344,589,383
29,878,873
2,847,867
172,853,328
1,550,169,451
6,592,056
1,556,761,507
1,556,761,507
34,913,897
(126,452,387)
0
12,379,458
112,015,149
32,856,117
C. Present Value of Accrued Benefits at End of Year 1,589,617,624
21
EXHIBIT 6
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
I. Assets
A. Book Value
B. Market Value
II. Liabilities (1)
Comparison of Funding Progress
($000)
10/1/2014 10/1/2013 10/1/2012
-$- -$- -$-
990,925 981,516 982,006
1,136,462 1,121,167 1,075,060
A. Retired and
Vested 1,369,709 1,377,316 1,381,464
B. Active
Employee
Contributions 87,602 79,175 72,203
Other Vested 121,179 93,679 79,288
Non -Vested
Accrued 11,128 6,592 6,222
C. Total Accrued 1,589,618 1,556,762 1,539,177
III. Ratios
IA/IIC 62.3 63.0 63.8
IB/IIC 71.5 72.0 69.8
(1) Item II amounts are present values of accrued benefits.
22
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Member Statistics
I. Active Members
EXHIBIT 7
Page 1
10/1/2014 10/1/2013 10/1/2012
Number of
Males 1,280 1,097 1,064
Females 202 176 172
Total 1,482 1,273 1,236
Averages
Current Age 36.0 36.8 36.6
Past Service 9.1 9.8 9.6
Credited Past Service 9.1 9.8 9.6
Annual Earnings $63,229 $66,946 $66,510
II. Inactive Members
A. Retirees and Beneficiaries
Number 2,098 2,119 2,101
Average Annual Benefit $58,155 $57,633 $57,617
Average Age 63.9 63.5 62.8
B. Disabled
Number 149 161 170
Average Annual Benefit $22,132 $21,360 $20,958
Average Age 69.8 69.7 69.2
C. Vested Terminated
Number 12 13 14
Average Deferred Benefit $26,650 $30,128 $28,460
Average Age 41.7 42.7 43.2
23
EXHIBIT 7
Page 2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Age -Service Distribution
Completed Years of Service Earnings
Age <1 11-44 55-99 10-14 15-19 20-24 25-29 30-34 35+ Total Total Average
-$- -$-
15-24 73 31 2 0 0 0 0 0 0 106 4,440,340 41,890
25-29 72 126 86 2 0 0 0 0 0 286 14,167,010 49,535
30-34 40 53 182 47 0 0 0 0 0 322 18,321,800 56,900
35-39 4 21 98 86 59 0 0 0 0 268 18,433,040 68,780
40-44 2 11 57 52 103 48 1 0 0 274 20,405,794 74,473
45-49 4 3 33 26 64 39 7 0 0 176 13,636,128 77,478
50-54 0 2 5 7 9 15 2 1 0 41 3,570,690 87,090
55-59 0 0 1 2 1 3 1 0 0 8 653,376 81,672
60-64 0 0 0 0 0 1 0 0 0 1 77,587 77,587
65+ 0 0 0 0 0 0 0 0 0 0 0 0
Total 195 247 464 222 236 106 11 1 0 1482 93,705,765 63,229
Average Age: 36.0 Average Service: 9.1
24
EXHIBIT 7
Page 3
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Reconciliation of Participant Counts
Retirees & Vested
Actives Beneficiaries Disableds Terminated
10/1/2013 1,273 2,119 161 13
Changes due to:
Retirement -16 +18 -2
Terminated
Non -Vested -12
Cash Out -17 -1
Vested -2 +2
Terminated -2 +2
Disability
Death -2 -59 -12
New Beneficiary +19
New Hires +258
Data Changes +1
10/1/2014 1,482 2,098 149 12
25
EXHIBIT 8
Page 1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Principal System Provisions
(Based on Ordinance No. 10002, as Amended)
Effective Date: January 1, 1940, as restated effective May 23, 1985, and
amended through September 30, 2014.
Fiscal Year: October 1 September 30.
Membership: Police officers and fire fighters.
Covered Compensation: An employee's base salary, including pick-up contributions, for
all straight time hours worked, plus assignment pay and
payments received for vacation and sick leave taken, jury duty,
and death -in -family leave taken. Earnable compensation shall
not include overtime pay; payments for accrued sick leave,
accrued vacation leave, or accrued compensatory leave; holiday
pay; premium pay for holidays worked; the value of any
employment benefits or non -monetary entitlements; or any other
form of remuneration.
Contributions: For Police Officers: 10%
Creditable Service:
For Fire Fighters hired prior to October 1, 2014:
Effective 10/1/2012: 10%
Effective 9/30/2014: 7%
For Fire Fighters hired on or after October 1, 2014, 10%
City: Balance, as actuarially determined.
Service credited under Retirement System; military service
(maximum of four years) during wartime for which Member
makes contributions; maternity leave (maximum of 180 days for
each leave) for which Member makes contributions; up to 5
years, without member contributions, if member was an
employee before period of military service.
26
EXHIBIT 8
Page 2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Principal System Provisions
(continued)
Average Final
Compensation: For members who retire or terminate employment with ten or
more years of creditable service prior to October 1, 2010, the
annual eamable compensation of a member during either the last
one year or the highest year of membership service, whichever
is greater. Effective September 30, 2010, for members who
retire on or after October 1, 2010, average final compensation
shall mean the average of the highest 5 years of service, to be
phased in over the next 4 years as follows: for members who
retire on or after October 1, 2010 and on or before September
30, 2011, the average of the highest 2 years of membership
service; for members who retire on or after October 1, 2011 and
on or before September 30, 2012, the average of the highest 3
years of membership service; for members who retire on or after
October 1, 2012 and on or before September 30, 2013, the
average of the highest 4 years of membership service; and for
members who retire on or after October 1, 2013, the average of
the highest 5 years of membership service. Provided, in no
event shall the average final compensation of any member who
was employed as a police officer or firefighter on September 30,
2010 and retires on or after October 1, 2010, be less than the
highest year of membership service prior to September 30, 2010.
Normal Service Age: Age 50
27
Service Retirement:
EXHIBIT 8
Page 3
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Principal System Provisions
(Continued)
For Police Officers who have reached Rule of 64 by September
30, 2010, for Fire Fighters who had reached Rule of 64 by
September 30, 2009, and for Fire Fighters who have reached
Rule of 68 by September 30, 2010: 3% of Average Final
Compensation for each of the first fifteen years of Creditable
Service plus 3.5% of Average Final Compensation for each year
of Creditable Service after the fifteenth year; maximum of 100%
of Average Final Compensation.
For all others, for service prior to October 1, 2010: 3% of
Average Final Compensation for each of the first fifteen years of
Creditable Service plus 3.5% of Average Final Compensation
for each of Creditable Service after the fifteenth year; for service
after September 30, 2010: 3% of Average Final Compensation
for each year of Creditable Service; The combined percentage
for service before October 1, 2010 and service after September
30, 2010 may not exceed 100% of Average Final Compensation.
The final benefit may not exceed the larger of the September 30,
2010 accrued benefit and $100,000.
Early Service
Retirement: After 20 years of Creditable Service. Benefits are based on
Average Final Compensation and Creditable Service at
retirement date. Actuarial equivalence for early commencement.
Rule of 64 Retirement: Service retirement on the basis of combined age and Creditable
Service equaling 64 or more. Rule of 64 applies to Fire Fighters
who had obtained 64 points by September 30, 2009 and Police
Officers who had 64 points by September 30, 2010. Rule of 64
also applies to the accrued benefit as of September 30, 2010 of
Police Officers who were active members as of September 29,
2010.
Rule of 68 Retirement:
Service retirement on the basis of combined age and Creditable
Service equaling 68 or more. Rule of 68 applies to Fire Fighters
who had not attained 64 points by September 30, 2009 and had
attained 68 points by September 30, 2010. Rule of 68 also
applies to the accrued benefit as of September 30, 2010 of Fire
Fighters who were active members as of September 29, 2010.
28
EXHIBIT 8
Page 4
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Rule of 70 Retirement:
Disability:
Deferred Retirement
Option Plan:
Summary of Principal System Provisions
(Continued)
Service retirement on the basis of combined age and Creditable
Service equaling 70 or more, after attainment of age 50 and
completion of 10 years of Creditable Service, Rule of 70 applies
to all new members hired on or after October 1, 2010, as well as
to all benefits accrued after September 30, 2010 by Fire Fighters
who had not attained 68 points on September 30, 2010 and
Police Officers who had not attained 64 points on September 30,
2010.
Ordinary Disability: After 10 or more years of Creditable
Service, and not eligible for service retirement. Not incurred as
accident in performance of duties. 90% of benefit rate times
Average Final Compensation times Creditable Service, with a
minimum benefit of 30% of Average Final Compensation; 10
years' certain and life normal form.
Accidental Disability: Incurred as accident in performance of
duties. 66 2/3% of Average Final Compensation, or 66 2/3% of
Final Compensation, whichever is greater. 40% joint & survivor
normal form, with a minimum of 10 years' certain and life.
Effective January 1, 2013, members may elect the BackDROP
option (maximum of 7 years), to receive:
(a) monthly benefit based on earlier retirement date
(b) lump sum of past payments compounded at 3%/year
Election must be made within 10 years after eligibility for
normal retirement. Members eligible for forward DROP as of
January 1, 2013 or vested as of January 1, 2010 remain eligible
for forward DROP.
29
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Principal System Provisions
(Continued)
Death:
Employment Termination:
Optional Allowances:
EXHIBIT 8
Page 5
Ordinary Death: (a) Between 3 and 10 years of Creditable Service,
and death not accidentally incurred in performance of duties:
Lump sum benefit equal to 50% of Compensation received in year
preceding death. (b) After 10 years of Creditable Service and
before eligibility for Early Service or Rule of 64 Retirement,
accrued benefit, deferred to earlier of member's 50th birthday or
Rule of 64 eligibility, payable for 10 years. Beneficiary does not
have to survive deferred period or 10 years' certain period. (c) If
eligible for Service, Early Service, or Rule of 64 retirement,
considered to have retired on the date of death. Surviving spouse
would receive 40% of the member's monthly retirement allowance.
Accidental Death: Incurred in performance of duties. (a) Pension of
50% of Average Final compensation to spouse until death or
remarriage. If there is no spouse, or if spouse dies or remarries
before youngest child is 18, payable until attainment of age 18. If
no spouse or no children under 18, benefit is payable to dependent
parents. (b) After 10 years of Creditable Service. Beneficiary does
not have to survive deferral period or 10 years' certain period.
After 10 years of Creditable Service, based on Creditable Service
and Average Final Compensation at termination date. If Member
contributions are withdrawn, benefit is forfeited. Benefits are
deferred to Normal Retirement Age.
Normal Form: For Police Officers who have reached Rule of 64
by September 30, 2010, for Fire Fighters who had reached Rule of
64 by September 30, 2009, and for Fire Fighters who have
reached Rule of 68 by September 30, 2010: Normal Form is joint
and 40% contingent survivor, with a minimum of 10 years'
certain and life.
30
EXHIBIT 8
Page 6
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Optional Allowances:
(Continued)
Transfer of Compensated
Leave Balances:
Transfer of 457 Balances:
Summary of Principal System Provisions
(Continued)
For all others, for benefits based on service prior to
October 1, 2010: Normal Form is joint and 40%
contingent survivor, with a minimum of 10 years'
certain and life; for benefits based on service after
September 30, 2010, Normal Form is 10 years' certain
and life.
Option 1 is cash refund annuity, based on present value
at retirement. Option 2 is joint and 100% survivor.
Option 3 is joint and 50% contingent survivor. Option
4 is open option. Option 5 is determined by Board due
to incapacity of Member. Option 6 is withdrawal of
member contributions with credited interest; monthly
benefit is of normal level.
Accumulated leave balances may be transferred into
system immediately prior to retirement to purchase
additional Creditable Service, on an actuarially
equivalent basis.
457 balances of Firefighters may be transferred into
System at retirement to purchase additional Service for
multiplier purposes.
Changes Since Prior
Valuation: Police Officers hired prior to October 1, 2012 will
continue to contribute 10%.
31
Valuation Date:
Valuation Method:
Asset Valuation Method:
Actuarial Assumptions:
Interest Discount/
Investment Return:
Inflation:
Mortality:
EXHIBIT 9
Page 1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Actuarial Basis
October 1, 2014 for Fiscal Year beginning October 1, 2015.
Aggregate Cost Method.
20% Write -Up Method: Expected value is based on the Interest
Discount/Investment Return rate applied to the actuarial asset value
as of previous valuation date and cash flow during the year. 20% of
the difference between the Expected Value and the Market Value
(net of pending transfers to the COLA Fund) is added to the
Expected Value.
The result cannot be greater than 120% of market value or less than
80% of market value (net of pending COLA transfers).
7.42%, compounded annually.
3.25%, compounded annually.
RP 2000 Mortality Table, Employees and Annuitants Combined,
projected by scale AA to 2020, producing following specimen rates:
Age
20
30
40
50
60
70
80
Male
.0235%
.0402%
.0919%
.1487%
.4887%
1.6413%
5.2647%
Female
.0138%
.0216%
.0522%
.1189%
.4573%
1.5145%
3.9866%
Disabled Mortality: RP 2000 Disabled Mortality Table projected by scale AA to 2020,
producing following specimen rates:
Age
20
30
40
50
60
70
80
Male
1.5696%
2.0418%
1.9221%
2.0149%
3.0450%
4.6257%
8.9456%
Female
.5287%
.6093%
.5507%
.8186%
1.9756%
3.4045%
6.2834%
32
EXHIBIT 9
Page 2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Actuarial Basis
(Continued)
Age Disability Turnover
<5 5+
25 .00130 .0240 .0192
30 .00180 .0240 .0192
35 .00285 .0240 .0192
40 .00390 .0180 .0144
45 .00800 .0120 .0096
50 .01210 .0000 .0000
55 .01620 ,0000 .0000
60 .00000 .0000 .0000
Retirement: Fire Fighters who had attained 64 points by September 30, 2009 and Police Officers
who had attained 64 points by September 30, 2010 are subject to the Rule of 64; Fire Fighters who
had attained 68 points by September 30, 2010 are subject to the Rule of 68; all others are subject to
the Rule of 70. If eligible for Retirement, the following decrements apply, based on service:
Years of Service Police % Fire %
<20 0 0
20 10 10
21-24 3 3
25-29 40 5
30-34 50 25
35 100 25
36 25
37 100
All Members retire in accordance with the probabilities above. All Members are assumed to elect a
five-year BackDROP when they reach five years following first retirement eligibility.
33
Salary Merit Scale:
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS°
RETIREMENT TRUST
Summary of Actuarial Basis
(Continued)
Service Police Fire
0 .0500 .0500
1 .0500 .0500
2 .0500 .0500
3 .0500 .0500
4 .0500 .0500
5 .0500 .0500
6 .0500 .0500
7 .0250 .0500
8 .0500 .0500
9 .0500 .0500
10 .0100 .0000
11 .0100 .0000
12 .0100 .0000
13 .0100 .0000
14 .0100 .0000
15 .0125 .0250
16 .0125 .0250
17 .0100 .0100
18 .0100 .0100
19 .0100 .0100
20 .0100 .0100
21 .0100 .0100
22 + .0000 .0000
EXHIBIT 9
Page 3
Salary Merit Scale is combined with 3.25% inflation and 1.5% for promotions and other increases.
There is no additional increase at retirement.
Projected Total Payroll: Covered Payroll plus $34,080,879 in payroll for members in forward
DROP during 2013/2014 year.
34
Type of Disability:
Recovery:
Type of Death:
Remarriage:
Spouse's Ages:
Marital Status:
Investment Expenses:
Administration Expenses:
Withdrawal of Employee
Contributions:
Compensated Absence
Balance Transfers:
Adjustments from
Valuation Date:
Sources of Data:
EXHIBIT 9
Page 4
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Summary of Actuarial Basis
(Continued)
100% of the disabilities are expected to be accidental disabilities.
No probabilities of recovery are used.
100% of the assumed deaths are expected to be ordinary deaths.
No probabilities of remarriage are used.
Female spouses are assumed to be 3 years younger than male spouses.
All employees are assumed to be married. For Members currently
receiving benefits, actual spouse's information is provided.
The investment return assumption of 7.42% is net of investment
expenses.
Budget for fiscal year ending 9/30/16 ($2,029,168) as provided by plan
administrator.
It is assumed that employees do not withdraw their contribution
balances upon employment termination or retirement.
No liabilities or costs are included for the provision to transfer
compensated absence balances into FIPO to purchase additional
creditable service, based on our understanding that assets will be
transferred immediately prior to retirement to cover 100% of the liability
for the additional service.
One year's interest is added to the calculated deposit to reflect ordinance
provision. For purposes of minimum City contributions as specified by
State Division of Retirement (Exhibit 18), additional interest discount is
included to reflect monthly contributions.
Asset data is from unaudited financial statements and includes an
appraised value for the real estate to be used for Market Value.
Membership data was furnished by Administrator. Member
compensation used is final bi-weekly pay in the year, annualized, with
estimated reductions for each active member as of October 1, 2012
based on approach summarized in Tables 2 and 3 in September 24, 2012
Actuarial Impact Statement.
Changes Since Prior
Valuation: Interest discount decreased to 7.42% from 7.50%. Administration
expenses have been decreased to $2,029,168 from $2,222,561.
35
EXHIBIT 10
Page 1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Information Under Florida Statutes
I. Comparison of Salary Increases
Year Ending Actual Assumed
-%- % o-
9/30/14 1.38 7.72
9/30/13 3.64 7.77
9/30/12 (0.75) 7.92
9/30/11 7.14 7.48
9/30/10 (9.33)(1) 7.51
9/30/09 6.35 7.26
9/30/08 18.20 7.17
9/30/07 18.19(1) 5.81
9/30/06 2.84 5.79
9/30/05 8.15 5.77
(1) Including impact of change in valuation pay definition.
II. Comparison of Investment Returns
Year Ending Actual MV Actual AAV(2) Assumed
-%- -%- -%- -%-
9/30/14 8.6 7.18 7.50
9/30/13 11.2 6.95 7.50
9/30/12 17.4 5.98 7.50
9/30/11 3.6 3.98 7.50
9/30/10 9.8 4.48 7.75
9/30/09 (0.3) (1.31) 7.75
9/30/08 (14.3) 3.65 7.75
9/30/07 14.2 8.27 7.75
9/30/06 9.1 7.57 7.75
9/30/05 (Revised) 15.6 7.83 7.75
9/30/05 (Prior) 15.6 8.43 7.75
(2) Based on mean actuarial asset values for periods ending 9/30.
36
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Information Under Florida Statutes
(Continued)
III. Comparison of Payroll Growth
EXHIBIT 10
Page 2
Year Ending Actual Assumed
-%- -%-
9/30/14 10.0 N.A.
9/30/13 3.7 N.A.
9/30/12 0.1 N.A.
9/30/11 2.5 N.A.
9/30/10 (34.4) N.A.
9/30/09 (5.5) N.A.
9/30/08 24.8 N.A.
9/30/07 14.7 N.A.
9/30/06 (1.3) N.A.
9/30/05 2.6 N.A.
Average (10 years) 1.7 N.A.
37
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Information to Comply with Florida SB 534 (as interpreted)
I. Total Pension Liability
Service Cost
Interest
Benefit changes
Difference between expected and
actuarial experience
Changes in assumptions
Benefit payments
Contribution refunds
Net change in pension liability
Total pension liability - beginning of year
Total pension liability - end of year
II. Plan fiduciary net position
Contributions - Employer
Contributions - State
Contributions Member
Net investment income
Benefit payments
Contribution refunds
Administrative expense
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning of year
Plan fiduciary net position - end of year
III. Net Pension Liability
IV. Funded Ratio
V. Years that Assets support expected
benefit payments
VI. Estimated City Contribution
- Annual Dollar Value
- Percentage of Payroll
Valuation(1)
7.42%
17,233,272
155,338,970
0
(6,638,755)
11,080,277
(138,869,919)
(990,357)
37,153,488
2,123,883,136
2,161,036,624
47,535,499
0
9,462,569
133,426,360
(138,869,919)
(990,357)
(2,086,240)
259,616
48,737,528
1,699,958,806
1,748,696,334
(412,340,290)
80.92%
16
43,964,153
46.92%
- 200 bp(2)
5.42%
17,233,272
155,338,970
0
(6,638,755)
499,297,941
(138,869,919)
(990,357)
525,371,152
2,123,883,136
2,649,254,288
47,535,499
0
9,462,569
133,426,360
(138,869,919)
(990,357)
(2,086,240)
259,616
48,737,528
1,699,958,806
1,748,696,334
(900,557,954)
66.01%
13
69,695,411
74.38%
EXHIBIT 11
Page 1
Funding Rate(2)
7.42%
17,233,272
155,338,970
0
(6,638,755)
31,635,033
(138,869,919)
(990,357)
57,708,244
2,123,883,136
2,181,591,380
47,535,499
0
9,462,569
133,426,360
(138,869,919)
(990,357)
(2,086,240)
259,616
48,737,528
1,699,958,806
1,748,696,334
(432,895,046)
80.16%
16
+ 200 bp(2)
9.42%
17,233,272
155;338,970
0
(6,638,755)
(300,067,490)
(138,869,919)
(990,357)
(273,994,279)
2,123,883,136
1,849,888,857
47,535,499
0
9,462,569
133,426,360
(138,869,919)
(990,357)
(2,086,240)
259,616
48,737,528
1,699,958,806
1,748,696,334
(101,192,523)
94.53%
21
45,390,616 23,729,232
48.44% 25.32%
(1) This information is based on the assumptions noted in Exhibit 8.
(2) This information is based on the assumptions noted in Exhibit 8 except for the interest rate as noted above and the
mortality table of RP 2000 with generational projection using Scale AA.
38
EXHIBIT 11
Page 2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Sustainment of Expected Benefit Payments
Mortality: Valuation
Interest: 7.42%
Market Value Investment Benefit
Year of Assets Return Payments
-$- -$- -$-
1 1,748,696,3340) 116,976,685 350,656,2770)
2 1,515,016,742 106,912,712 150,990,770
3 1,470,93 8,684 103,609,156 151,895,483
4 1,422,652,357 100,003,778 152,513,894
5 1,370,142,241 96,092,318 152,931,325
6 1,313,303,234 91,809,385 154,728,392
7 1,250,384,227 87,078,426 156,440,114
8 1,181,022,539 81,840,121 158,955,947
9 1,103,906,713 76,003,048 162,114,330
10 1,017,795,431 , 69,501,850 165,181,063
11 922,116,218 62,319,294 167,463,378
12 816,972,134 54,350,063 172,061,561
13 699,260,636 45,512,187 174,907,143
14 569,865,680 35,824,350 177,287,513
15 428,402,517 25,171,828 181,567,747
16 272,006,598 13,458,837 184,543,189
17 100,922,246 188,105,149
(1) Benefit Payments Include the DROP balance at 9/30/2014
39
EXHIBIT 11
Page 3
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Sustainment of Expected Benefit Payments
Mortality: SB534
Interest: 5.42%
Market Value Investment Benefit
Year of Assets Return Payments
-$- -$- -$-
1 1,748,696,334(1) 85,403,292 350,605,850(1)
2 1,483,493,776 76,371,639 150,836,128
3 1,409,029,287 72,313,731 151,656,296
4 1,329,686,722 67,998,510 152,211,738
5 1,245,473,494 63,424,062 152,589,061
6 1,156,308,495 58,543,720 154,368,998
7 1,060,483,217 53,304,000 156,088,737
8 957,698,480 47,664,894 158,637,984
9 846,725,390 41,564,091 161,856,155
10 726,433,326 34,959,916 165,010,110
11 596,3 83,132 27,847,055 167,408,587
12 456,821,600 20,155,965 172,152,176
13 304,825,389 11,836,957 175,174,091
14 141,488,255 177,762,553
(1) Benefit Payments Include the DROP balance at 9/30/2014
40
EXHIBIT 11
Page 4
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Sustainment of Expected Benefit Payments
Mortality: SB534
Interest: 7,42%
Market Value Investment Benefit
Year of Assets Return Payments
-$- -$- -$-
1 1,748,696,334(1) 116,978,523 350,605,8500)
2 1,515,069,007 106,922,225 150,836,128
3 1,471,155,104 103,633,929 151,656,296
4 1,423,132,737 100,050,432 152,211,738
5 1,370,971,431 96,166,314 152,589,061
6 1,314,548,684 91,914,892 154,368,998
7 1,252,094,578 87,218,137 156,088,737
8 1,183,223,978 82,015,054 158,637,984
9 1,106,601,048 76,212,374 161,856,155
10 1,020,957,267 69,742,688 165,010,110
11 925,689,845 62,586,453 167,408,587
12 820,867,711 54,635,813 172,152,176
13 703,351,348 45,805,992 175,174,091
14 573,983,249 36,112,565 177,762,553
15 432,333,261 25,437,281 182,287,020
16 275,483,522 13,680,423 185,542,244
17 103,621,701 189,423,934
(1) Benefit Payments Include the DROP balance at 9/30/2014
41
EXHIBIT 11
Page 5
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Sustainment of Expected Benefit Payments
Mortality: SB534
Interest: 9.42%
Market Value Investment Benefit
Year of Assets Return Payments
-$- -$- -$-
1 1,748,696,334(1) 148,585,248 350,605,850(1)
2 1,546,675,732 138,752,336 150,836,128
3 1,534,591,940 137,576,282 151,656,296
4 1,520,511,926 136,224,372 152,211,738
5 1,504,524,560 134,700,990 152,589,061
6 1,486,636,489 132,933,985 154,368,998
7 1,465,201,476 130,835,630 156,088,737
8 1,439,948,369 128,339,419 158,637,984
9 1,409,649,804 125,337,130 161,856,155
10 1,373,130,779 121,751,829 165,010,110
11 1,329,872,498 117,566,472 167,408,587
12 1,280,030,383 112,652,950 172,152,176
13 1,220,531,157 106,908,993 175,174,091
14 1,152,266,059 100,3 59,248 177,762,553
15 1,074,862,754 92,859,549 182,287,020
16 985,435,283 84,285,611 185,542,244
17 884,178,650 74,568,522 189,423,934
18 769,323,238 63,556,605 193,605,879
19 639,273,964 51,250,893 194,802,016
20 495,722,841 37,567,515 198,295,979
21 334,994,377 22,255,177 202,025,696
22 155,223,858 203,984,458
(1) Benefit Payments Include the DROP balance at 9/30/2014
42
EXHIBIT 11
Page 6
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Hypothetical City Contribution Requirement for 2015/2016 Fiscal Year
I. Unfunded Actuarial Accrued Liability
3. Normal Cost
3. Present Value of Future Benefits
1. Active Members
a. Retirement
b. Disability
c. Death
d. Turnover
e. Return of Contributions
f. Total
2. Retired Members and Beneficiaries
3. Service Retirements +
Beneficiaries
b. Disability Retirements
c. Terminated Vested Members
d. Total
3. Total
Entry Age Reserve
1. Active
2. Inactive
3. Total
Actuarial Asset Value(1)
(1) Allocated based on Entry Age Reserve
2014/2015
Total
-$-
N/A
Police
-$-
N/A
406,475,370 230,859,495
51,259,582 29,306,289
7,307,646 3,636,175
25,029,798 13,174,743
2,235,295 1,330,921
492,307,691 278,307,623
1,338,709,196
28,692,260
2,307,321
1,369,708,777
1,862,016,468
228,069,868
1,369,708,777
1,597,778,645
1,151,016,531
733,883,135
24,912,273
2,006,817
760,802,225
1,039,109,848
126,530,973
760,802,225
887,333,198
639,221,949
Fire
-$-
N/A
175,615,875
21,953,293
3,671,471
11,855,055
904,374
214,000,068
604,826,061
3,779,987
300,504
608,906,552
822,906,620
101,538,895
608,906,552
710,445,447
511,794,582
43
EXHIBIT 11
Page 7
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Hypothetical City Contribution Requirement for 2015/2016 Fiscal Year
2014/2015
Total
-$-
Police
-$-
Fire
-$-
II. Normal Cost (Cont'd)
A. Total Present Value of
Future Benefits 1,862,016,468 1,039,109,848 822,906,620
B. Present Value of
Future Member Contributions 112,603,159 67,956,109 44,647,050
C. Actuarial Asset Valued) 1,151,016,531 639,221,949 511,794,582
D. Unfunded Actuarial Accrued Liability 0 0 0
E. Present Value of Future Normal Costs
(A-B-C-D) 598,396,778 331,931,790 266,464,988
F. Present Value of Future Payrolls 1,441,538,742 747,887,187 693,651,555
G. Administrative Expense(1) 2,029,168 1,127,000 902,168
H. Current Payroll for those under
Expected Retirement Age 93,705,765 50,725,581 42,980,183
I. Interest Rate 7.42% 7.42% 7.42%
J. Current Normal Cost - Payable 10/1/2013
([ (E)x(H) / (F) ] + (G)) (1+(I)) 43,964,153 25,394,445 18,704,967
K. Covered Payroll 93,705,765 50,725,581 42,980,184
L. Normal Cost as Percentage of Covered Payroll
(J)/ (K) 46.92% 50.06% 43.52%
III. Quarterly City Contribution Schedule
A. Past Service Cost 0 0 0
B. Normal Cost 43,964,153 25,394,445 18,704,967
C. Payment Timing 0 0 0
D. Total 43,964,153(2) 25,394,445 18,704,967
(1) Allocated based on Entry Age Reserve
(2) Hypothetical Total: $44,099,412
44
EXHIBIT 12
Page 1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
(COLA Fund)
I. COLA Increases by Duration Since Retirement
Years FIPO COLA
Retired No. Benefits Benefits
0 5 722 5,210,262 0 0.0
5 -10 343 1,946,817 112,715 5.8
10-15 218 953,897 149,055 15.6
15-20 269 987,698 284,673 28.8
20-25 208 689,545 330,741 48.0
25-30 149 332,275 273,783 82.4
30-35 126 168,700 258,871 153.5
35-40 157 122,166 317,173 259.6
40-45 48 27,739 106,339 383.4
45-50 6 2,805 18,771 669.2
50+ 1 370 3,445 931.1
Total 2,247 10,442,274 1,855,566 17.8
II. COLA Increases by Attained Age (2014 Table)
FIPO COLA
Age No. Benefits Benefits
-$- -$- %
<45 17 76,213 736 1.0
45-50 156 916,016 1,603 0.2
50-54 398 2,596,149 30,788 1.2
55-59 411 2,614,647 94,012 3.6
60-64 321 1,719,847 187,060 10.9
65-69 269 1,074,860 277,180 25.8
70-74 215 694,018 305,741 44.1
75-79 154 351,235 264,849 75.4
80-84 152 243,229 338,940 139.4
85-89 116 126,867 264,496 208.5
>90 38 29,193 90,161 308.8
Total 2,247 10,442,274 1,855,566 17.8
45
EXHIBIT 12
Page 2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
(COLA Fund)
III. COLA Increases vs. CPI
Years
Retired No. COLA CPI COLA/CPI
0 - 5 722 0.0 8.4 0.0
5 -10 343 5.8 21.3 27.2
10-15 218 15.6 33.7 46.4
15-20 269 28.8 50.5 57.1
20-25 208 48.0 70.6 68.0
25-30 149 82.4 105.6 78.0
30-35 126 153.5 146.3 104.9
35-40 157 259.6 262.3 99.0
40-45 48 383.4 406.1 94.4
45-50 6 669.2 640.5 104.5
50+ 1 931.1 652.6 142.8
Total 2,247 17.8 30.7 57.8
IV. Consumer Price Index (CPI-U)
December
Year Index Annual
%o
2006 201.800 2.5
2007 210.036 4.1
2008 210.228 0.1
2009 215.949 2.7
2010 219.179 1.5
2011 225.672 3.0
2012 229.601 1.7
2013 233.049 1.5
2014 234.812 0.8
46
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
(COLA Fund)
I. Summary of Assets Available for Benefits at October 1, 2014
A. COLA Accounts (Exhibit 4)
1. COLA I Account at 9/30/2014
2. COLA II Account at 9/30/2014
B. Transfers of Excess Investment Income
1. $0 due on 1/1/2015
2. $0 due on 1/1/2016
C. Minimum City Contributions (1)
$6,161,789 beginning 1/1/2017 permanent, discounted
D. City Contribution
1. Contribution of $5,696,920 due on 1/1/2015, discounted
2. Contribution of $5,924,797 due on 1/1/2016, discounted
E. Assets Available for COLA Benefits
II. COLA Fund Liabilities for Benefits at October 1, 2014 (2)
A. Present Value of Existing COLA Benefits for Inactives
1. Frozen COLA I benefits
2. COLA II benefits
3. Total inactive COLA benefits
B. Present Value of Projected COLA Benefits for Actives
1. Reserve for current actives
2. Reserve for future actives (15% of B(1))
3. Total
C. Total Liability Allocated (A(3) + (B3))
D. Contingency Reserve [20% of I(E)-I(B)(2)]
E. Contingency Reserve [19.3276% of I(E)-I(B)(2)]
F. Unallocated Reserve(3)
C. Total Liability for COLA Benefits
Revised
Assumptions
57,910,152
336,657,504
0
0
70,690,546
5,595,886
5,417,726
476,271,814
856,184
326,413,125
327,269,309
41,302,497
6,195,375
47,497,872
374,767,181
92,051,789
9,452,844
476,271,814
Notes: (1) Revised: (1/1.0742) c.12.25 x (aa) = 11.4724061
Prior: (1/1.0750) " 2.25x (a.,) = 11.3310379
(2) Service for COLA excludes 457 buyback service.
(3) For $1,629 Table, II(D)+II(E) = $101,504,633 (Revised) or $104,435,531 (Prior)
EXHIBIT 13
Page 1
Prior
Assumptions
-$-
57,910,152
336,657,504
0
0
69,819,465
5,594,844
5,412,687
475,394,652
853,165
323,718,347
324,571,512
40,337,051
6,050,558
46,387,609
370,959,121
95,078,930
9,356,601
475,394,652
47
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
(COLA Fund)
III. Derivation of Increase in Table as of January 1, 2015
A. Liability based on current $1,629 table
1. Inactive COLA II Benefits
2. Present Value of Projected COLA
benefits for current actives
3. Reserve for future actives [15% of (2)]
4. Total
B. Assets available to increase table
1. Total assets available for COLA Benefits
2. Total Liability Allocated
(current $1,629 table)
3. Contingency Reserve II(D)
4. Available. Assets [(1)-(2)-(3)]
5. $0 due on 1/1/2016, discounted
6. Net Available Assets [(4)-(5)]
7. Increase ratio [(B6)/ (A4)]
8. Potential table increase [$1,629x (7)]
9. Potential table amount [$1,629+ (8)]
10. Actual new table amount
Revised
Assumptions
-$-
EXHIBIT 13
Page 2
Prior
Assumptions
-$-
326,413,125 323,718,347
41,302,497 40,337,051
6,195,375 6,050,558
373,910,997 370,105,956
476,271,814
374,767,181
92,051,789
9,452,844
0
9,452,844
0.025281
41
1,670
1,670
475,394,652
370,959,121
95,078,930
9,356,601
0
9,356,601
0.025281
41
1,670
1,670
48
A.
B.
C.
D.
E.
F.
G.
H.
EXHIBIT 14
CITY OF MMAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
(COLA Fund)
Cumulative Experience Position Net of Asset Transfers
I. Calculation of Expected Unfunded Actuarial Accrued Liability at 10/1/2014
Revised
Assumptions
Expected Unfunded Actuarial Liability at 10/1/2013 222,4-98,240
Entry Age Normal Cost for 2012/2014 Year
Paid or Payable by Employer
Interest on (A) and (B) at 7.50%
Contributions for 2013/2014Year
Paid or Payable by Employer (Required)
Interest on (D) at 7.50%
Expected Unfunded Actuarial Liability at 9/30/2014
Additional Unfunded Actuarial Liability due to
1. Assumption Changes
2. Plan Amendment
Final Expected Unfunded Actuarial Liability at 9/30/2014
II. Determination of Net Cumulative Experience Position at 10/1/2014
A. Expected Unfunded Actuarial Liability at 9/30/2014
B. Entry Age Reserve
1. Actives
2. Inactives
2. Total
C. Actuarial Asset Value
D. Actual Unfunded Actuarial Liability (B)-(C)
E. Cumulative Experience Gain (Loss) (A)-(D)
III. Future Transfers of Excess Investment Income at 10/1/2014
A. $0 due on 1/1/2015, discounted
B. $34,111,625 due on 1/1/2016, discounted (1)
C. Total Future Transfers at 10/1/2014 (A)+(B)
7,225,630
17,229,290
42,057,691
2,909,294
201,986,175
11,869,986
0
213,856,161
213,856,161
228,069,868
1,369,708,777
1,597,778,645
1,151,016,531
446,762,114
(232,905,953)
0
0
0
Prior
Assumptions
222,4-98,240
7,225,630
17,229,290
42,057,691
2,909,294
201,986,175
0
0
201,986,175
201,986,175
225,611,274
1,360,297,385
1,585,908,659
1,151,016,531
434, 892,128
(232,905,953)
0
0
(1) No transfer permitted unless cumulative experience is positive at the valuation date preceding transfer
0
49
EXHIBIT 15
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
(COLA Fund)
Summary of Principal COLA Provisions
Effective Date: January 1, 1994, amended January 1, 1995.
Eligibility: All inactive members in Miami Fire Fighters' and Police Officers'
Retirement Trust.
Prior COLA: Benefits granted through 1993 continue to be paid, in addition to benefits to
be granted in the future.
Available Assets: Existing COLA assets as of January 1, 1995; beginning with the 1991/92
fiscal year, a percentage of excess investment return on FIPO assets (75%
of first 2.5%, 50% of next 2.5%, 25% of next 2.5%), subject to a minimum
City contribution of $2.5 million, increasing 4% annually.
Allocated Assets: Current COLA assets as of September 30, 2014, plus present value of $2.5
million minimum guarantee. The 4% future annual increases is not pre -
allocated. A contingency reserve of 20% has been established for adverse
experience.
COLA Benefits: In addition to prior COLA, benefits are based on attached table, with $1,670
monthly benefit for 25 years of creditable service and 22 completed years
of retirement (after age 46). The $1,670 amount is reduced by 5% for each
year of retirement less than 22 and each year of creditable service less than
25 and increased similarly for years of retirement greater than 22 and years
of creditable service greater than 25.
Benefits are based on the FIPO option elected. Tabular amounts are
adjusted, based on the FIPO adjustments at the time of FIPO benefit
commencement, for options other than Option 8 (Joint & 40%). Surviving
spouses receive the percentage of the table amount determined under the
FIPO election.
Service -incurred and accidental disabilities and deaths receive benefits
based on the greater of 25 years or actual creditable service.
Changes from Prior
Year Valuation: The radix of the COLA table was increased from $1,629 to $1,670.
50
Miami Firefighters' and Police Officers' Retirement Trust
2015 Monthly Retirement Supplements ($1670 Table)
Completed Years of Retirement (after age 46)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
10 0 0 0 42 63 84 104 125 146 167 188 209 230 251 271 292 313 334 355 376 397 418 438 459 480
11 0 0 0 50 75 100 125 150 175 200 225 251 276 301 326 351 376 401 426 451 476 501 526 551 576
12 0 0 0 58 88 117 146 175 205 234 263 292 321 351 380 409 438 468 497 526 555 585 614 643 672
13 0 0 0 67 100 134 167 200 234 267 301 334 367 401 434 468 501 534 568 601 635 668 701 735 768
14 0 0 0 75 113 150 188 225 263 301 338 376 413 451 488 526 564 601 639 676 714 752 789 827 864
15 0 0 0 84 125 167 209 251 292 334 376 418 459 501 543 585 626 668 710 752 793 835 877 919 960
16 0 0 0 92 138 184 230 276 321 367 413 459 505 551 597 643 689 735 781 827 873 919 964 1010 1056
17 0 0 0 100 150 200 251 301 351 401 451 501 551 601 651 701 752 802 852 902 952 1002 1052 1102 1152
• 18 0 0 0 109 163 217 271 326 380 434 488 543 597 651 706 760 814 868 923 977 1031 1086 1140 1194 1248
e 19 0 0 0 117 175 234 292 351 409 468 526 585 643 701 760 818 877 935 994 1052 1111 1169 1227 1286 1344
a 20 0 0 0 125 188 251 313 376 438 501 564 626 689 752 814 877 939 1002 1065 1127 1190 1253 1315 1378 1440
r 21 0 0 0 134 200 267 334 401 468 534 601 668 735 802 868 935 1002 1069 1136 1202 1269 1336 1403 1470 1536
s 22 0 0 0 142 213 284 355 426 497 568 639 710 781 852 923 994 1065 1136 1207 1278 1349 1420 1490 1561 1632
23 0 0 0 150 225 301 376 451 526 601 676 752 827 902 977 1052 1127 1202 1278 1353 1428 1503 1578 1653 1728
O 24 0 0 0 159 238 317 397 476 555 635 714 793 873 952 1031 1111 1190 1269 1349 1428 1507 1587 1666 1745 1824
f 25 0 0 0 167 251 334 418 501 585 668 752 835 919 1002 1086 1169 1253 1336 1420 1503 1587 1670 1754 1837 1921
26 0 0 0 175 263 351 438 526 614 701 789 877 964 1052 1140 1227 1315 1403 1490 1578 1666 1754 1841 1929 2017
C 27 0 0 0 184 276 367 459 551 643 735 827 919 1010 1102 1194 1286 1378 1470 1561 1653 1745 1837 1929 2021 2113
✓ 28 0 0 0 192 288 384 480 576 672 768 864 960 1056 1152 1248 1344 1440 1536 1632 1728 1824 1921 2017 2113 2209
e 29 0 0 0 200 301 401 501 601 701 802 902 1002 1102 1202 1303 1403 1503 1603 1703 1804 1904 2004 2104 2204 2305
d 30 0 0 0 209 313 418 522 626 731 835 939 1044 1148 1253 1357 1461 1566 1670 1774 1879 1983 2088 2192 2296 2401
i 31 0 0 0 217 326 434 543 651 760 868 977 1086 1194 1303 1411 1520 1628 1737 1845 1954 2062 2171 2280 2388 2497
t 32 0 0 0 225 338 451 564 676 789 902 1015 1127 1240 1353 1465 1578 1691 1804 1916 2029 2142 2255 2367 2480 2593
e 33 0 0 0 234 351 468 584 701 818 935 1052 1169 1286 1403 1520 1637 1754 1870 1987 2104 2221 2338 2455 2572 2689
d 34 0 0 0 242 363 484 605 726 848 969 1090 1211 1332 1453 1574 1695 1816 1937 2058 2179 2300 2422 2543 2664 2785
35 0 0 0 251 376 501 626 752 877 1002 1127 1253 1378 1503 1628 1754 1879 2004 2129 2255 2380 2505 2630 2756 2881
5 36 0 0 0 259 388 518 647 777 906 1035 1165 1294 1424 1553 1683 1812 1941 2071 2200 2330 2459 2589 2718 2847 2977
e 37 0 0 0 267 401 534 668 802 935 1069 1202 1336 1470 1603 1737 1870 2004 2138 2271 2405 2538 2672 2806 2939 3073
r 38 0 0 0 276 413 551 689 827 964 1102 1240 1378 1516 1653 1791 1929 2067 2204 2342 2480 2618 2756 2893 3031 3169
✓ 39 0 0 0 284 426 568 710 852 994 1136 1278 1420 1561 1703 1845 1987 2129 2271 2413 2555 2697 2839 2981 3123 3265
i 40 0 0 0 292 438 585 731 877 1023 1169 1315 1461 1607 1754 1900 2046 2192 2338 2484 2630 2776 2923 3069 3215 3361
c 41 0 0 0 301 451 601 751 902 1052 1202 1353 1503 1653 1804 1954 2104 2255 2405 2555 2705 2856 3006 3156 3307 3457
e 42 0 0 0 309 463 618 772 927 1081 1236 1390 1545 1699 1854 2008 2163 2317 2472 2626 2781 2935 3090 3244 3398 3553
43 0 0 0 317 476 635 793 952 1111 1269 1428 1587 1745 1904 2062 2221 2380 2538 2697 2856 3014 3173 3332 3490 3649
44 0 0 0 326 488 651 814 977 1140 1303 1465 1628 1791 1954 2117 2280 2442 2605 2768 2931 3094 3257 3419 3582 3745
45 0 0 0 334 501 668 835 1002 1169 1336 1503 1670 1837 2004 2171 2338 2505 2672 2839 3006 3173 3340 3507 3674 3841
46 0 0 0 342 514 685 856 1027 1198 1369 1541 1712 1883 2054 2225 2396 2568 2739 2910 3081 3252 3424 3595 3766 3937
47 0 0 0 351 526 701 877 1052 1227 1403 1578 1754 1929 2104 2280 2455 2630 2806 2981 3156 3332 3507 3682 3858 4033
48 0 0 0 359 539 718 898 1077 1257 1436 1616 1795 1975 2154 2334 2513 2693 2872 3052 3231 3411 3591 3770 3950 4129
49 0 0 0 367 551 735 919 1102 1286 1470 1653 1837 2021 2204 2388 2572 2756 2939 3123 3307 3490 3674 3858 4041 4225
50 0 0 0 376 564 752 939 1127 1315 1503 1691 1879 2067 2255 2442 2630 2818 3006 3194 3382 3570 3758 3945 4133 4321
51
Miami Firefighters' and Police Officers' Retirement Trust
2015 Monthly Retirement Supplements ($1670 Table)
Completed Years of Retirement (after age 46)
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
10 501 522 543 564 585 605 626 647 668 689 710 731 752 772 793 814 835 856 877 898 919 939 960 981 1002
11 601 626 651 676 701 726 752 777 802 827 852 877 902 927 952 977 1002 1027 1052 1077 1102 1127 1152 1177 1202
12 701 731 760 789 818 848 877 906 935 964 994 1023 1052 1081 1111 1140 1169 1198 1227 1257 1286 1315 1344 1374 1403
13 802 835 868 902 935 969 1002 1035 1069 1102 1136 1169 1202 1236 1269 1303 1336 1369 1403 1436 1470 1503 1536 1570 1603
14 902 939 977 1015 1052 1090 1127 1165 1202 1240 1278 1315 1353 1390 1428 1465 1503 1541 1578 1616 1653 1691 1728 1766 1804
15 1002 1044 1086 1127 1169 1211 1253 1294 1336 1378 1420 1461 1503 1545 1587 1628 1670 1712 1754 1795 1837 1879 1921 1962 2004
16 1102 1148 1194 1240 1286 1332 1378 1424 1470 1516 1561 1607 1653 1699 1745 1791 1837 1883 1929 1975 2021 2067 2113 2158 2204
17 1202 1253 1303 1353 1403 1453 1503 1553 1603 1653 1703 1754 1804 1854 1904 1954 2004 2054 2104 2154 2204 2255 2305 2355 2405
• 18 1303 1357 1411 1465 1520 1574 1628 1683 1737 1791 1845 1900 1954 2008 2062 2117 2171 2225 2280 2334 2388 2442 2497 2551 2605
e 19 1403 1461 1520 1578 1637 1695 1754 1812 1870 1929 1987 2046 2104 2163 2221 2280 2338 2396 2455 2513 2572 2630 2689 2747 2806
a 20 1503 1566 1628 1691 1754 1816 1879 1941 2004 2067 2129 2192 2255 2317 2380 2442 2505 2568 2630 2693 2756 2818 2881 2943 3006
r 21 1603 1670 1737 1804 1870 1937 2004 2071 2138 2204 2271 2338 2405 2472 2538 2605 2672 2739 2806 2872 2939 3006 3073 3140 3206
s 22 1703 1774 1845 1916 1987 2058 2129 2200 2271 2342 2413 2484 2555 2626 2697 2768 2839 2910 2981 3052 3123 3194 3265 3336 3407
23 1804 1879 1954 2029 2104 2179 2255 2330 2405 2480 2555 2630 2705 2781 2856 2931 3006 3081 3156 3231 3307 3382 3457 3532 3607
O 24 1904 1983 2062 2142 2221 2300 2380 2459 2538 2618 2697 2776 2856 2935 3014 3094 3173 3252 3332 3411 3490 3570 3649 3728 3808
f 25 2004 2088 2171 2255 2338 2422 2505 2589 2672 2756 2839 2923 3006 3090 3173 3257 3340 3424 3507 3591 3674 3758 3841 3925 4008
26 2104 2192 2280 2367 2455 2543 2630 2718 2806 2893 2981 3069 3156 3244 3332 3419 3507 3595 3682 3770 3858 3945 4033 4121 4208
• 27 2204 2296 2388 2480 2572 2664 2756 2847 2939 3031 3123 3215 3307 3398 3490 3582 3674 3766 3858 3950 4041 4133 4225 4317 4409
✓ 28 2305 2401 2497 2593 2689 2785 2881 2977 3073 3169 3265 3361 3457 3553 3649 3745 3841 3937 4033 4129 4225 4321 4417 4513 4609
e 29 2405 2505 2605 2705 2806 2906 3006 3106 3206 3307 3407 3507 3607 3707 3808 3908 4008 4108 4208 4309 4409 4509 4609 4709 4810
d 30 2505 2609 2714 2818 2923 3027 3131 3236 3340 3444 3549 3653 3758 3862 3966 4071 4175 4279 4384 4488 4593 4697 4801 4906 5010
i 31 2605 2714 2822 2931 3039 3148 3257 3365 3474 3582 3691 3799 3908 4016 4125 4233 4342 4451 4559 4668 4776 4885 4993 5102 5210
t 32 2705 2818 2931 3044 3156 3269 3382 3494 3607 3720 3833 3945 4058 4171 4284 4396 4509 4622 4734 4847 4960 5073 5185 5298 5411
e 33 2806 2923 3039 3156 3273 3390 3507 3624 3741 3858 3975 4092 4208 4325 4442 4559 4676 4793 4910 5027 5144 5261 5377 5494 5611
d 34 2906 3027 3148 3269 3390 3511 3632 3753 3874 3995 4117 4238 4359 4480 4601 4722 4843 4964 5085 5206 5327 5448 5569 5691 5812
35 3006 3131 3257 3382 3507 3632 3758 3883 4008 4133 4259 4384 4509 4634 4760 4885 5010 5135 5261 5386 5511 5636 5762 5887 6012
S 36 3106 3236 3365 3494 3624 3753 3883 4012 4142 4271 4400 4530 4659 4789 4918 5048 5177 5306 5436 5565 5695 5824 5954 6083 6212
e 37 3206 3340 3474 3607 3741 3874 4008 4142 4275 4409 4542 4676 4810 4943 5077 5210 5344 5478 5611 5745 5878 6012 6146 6279 6413
r 38 3307 3444 3582 3720 3858 3995 4133 4271 4409 4547 4684 4822 4960 5098 5235 5373 5511 5649 5787 5924 6062 6200 6338 6475 6613
✓ 39 3407 3549 3691 3833 3975 4117 4259 4400 4542 4684 4826 4968 5110 5252 5394 5536 5678 5820 5962 6104 6246 6388 6530 6672 6814
40 3507 3653 3799 3945 4092 4238 4384 4530 4676 4822 4968 5114 5261 5407 5553 5699 5845 5991 6137 6283 6430 6576 6722 6868 7014
c 41 3607 3758 3908 4058 4208 4359 4509 4659 4810 4960 5110 5261 5411 5561 5711 5862 6012 6162 6313 6463 6613 6764 6914 7064 7214
e 42 3707 3862 4016 4171 4325 4480 4634 4789 4943 5098 5252 5407 5561 5716 5870 6025 6179 6333 6488 6642 6797 6951 7106 7260 7415
43 3808 3966 4125 4284 4442 4601 4760 4918 5077 5235 5394 5553 5711 5870 6029 6187 6346 6505 6663 6822 6981 7139 7298 7457 7615
44 3908 4071 4233 4396 4559 4722 4885 5048 5210 5373 5536 5699 5862 6025 6187 6350 6513 6676 6839 7001 7164 7327 7490 7653 7816
45 4008 4175 4342 4509 4676 4843 5010 5177 5344 5511 5678 5845 6012 6179 6346 6513 6680 6847 7014 7181 7348 7515 7682 7849 8016
46 4108 4279 4451 4622 4793 4964 5135 5306 5478 5649 5820 5991 6162 6333 6505 6676 6847 7018 7189 7361 7532 7703 7874 8045 8216
47 4208 4384 4559 4734 4910 5085 5261 5436 5611 5787 5962 6137 6313 6488 6663 6839 7014 7189 7365 7540 7715 7891 8066 8241 8417
48 4309 4488 4668 4847 5027 5206 5386 5565 5745 5924 6104 6283 6463 6642 6822 7001 7181 7361 7540 7720 7899 8079 8258 8438 8617
49 4409 4593 4776 4960 5144 5327 5511 5695 5878 6062 6246 6430 6613 6797 6981 7164 7348 7532 7715 7899 8083 8267 8450 8634 8818
50 4509 4697 4885 5073 5261 5448 5636 5824 6012 6200 6388 6576 6764 6951 7139 7327 7515 7703 7891 8079 8267 8454 8642 8830 9018
52
EXHIBIT 16
Page 1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Valuation Date:
Valuation Method:
Asset Valuation Method:
Actuarial Assumptions:
Interest Discount/
Investment Return:
Mortality:
(COLA Fund)
Summary of Actuarial Basis
January 1, 2015.
Accrued Benefit Cost Method, based on benefits granted to date.
Market Value, plus present value of future minimum City
contributions.
7.42%, compounded annually.
RP 2000 Mortality Table, Employees and Annuitants Combined,
projected by scale AA to 2020, producing following specimen rates:
Age
20
30
40
50
60
70
80
Male
.0235%
.0402%
.0919%
.1487%
.4887%
1.6413%
5.2647%
Female
.0138%
.0216%
.0522%
.1189%
.4573%
1.5145%
3.9866%
Disabled Mortality: RP 2000 Disabled Mortality Table projected by scale AA to 2020,
producing following specimen rates:
Age
20
30
40
50
60
70
80
Male
1.5696%
2.0418%
1.9221%
2.0149%
3.0450%
4.6257%
8.9456%
Female
.5287%
.6093%
.5507%
.8186%
1.9756%
3.4045%
6.2834%
53
EXHIBIT 16
Page 2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
(COLA Fund)
Summary of Actuarial Basis
(Continued)
Age Disability Turnover
<5 5+
20 .00085 .0240 .0192
25 .00130 .0240 .0192
30 .00180 ,0240 .0192
35 .00285 .0240 .0192
40 .00390 .0180 .0144
45 .00800 .0120 .0096
50 .01210 .0000 .0000
55 .01620 .0000 .0000
60 .00000 .0000 .0000
Retirement: Fire Fighters who had attained 64 points by September 30, 2009 and Police Officers
who had attained 64 points by September 30, 2010 are subject to the Rule of 64; Fire Fighters who
had attained 68 points by September 30, 2010 are subject to the Rule of 68; all others are subject to
the Rule of 70. If eligible for Retirement, the following decrements apply, based on service.
Years of Service
Police % Fire %
<20 0 0
20 10 10
21-24 3 3
25-29 40 5
30-34 50 25
35 100 25
36 25
37 100
There is no explicit assumption on the percentage of retirements expected to enter the DROP. No
distinction is necessary, since funding is calculated to expected retirement or expected DROP entry.
54
EXHIBIT 16
Page 3
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Type of Disability:
Recovery:
Type of Death:
Remarriage:
Spouse's Ages:
Martial Status:
Investment Expenses:
Withdrawal of Employee
Contributions:
Adjustments from
Valuation Date:
Sources of Data::
Changes from Prior
Year Valuation:
(COLA Fund)
Summary of Actuarial Basis
(Continued)
100% of the disabilities are expected to be accidental disabilities.
No probabilities of recovery are used.
100% of the assumed deaths are expected to be ordinary deaths.
No probabilities of remarriage are used.
Female spouses are assumed to be 3 years younger than male
spouses.
All employees are assumed to be married.
Not provided for.
It is assumed that employees do not withdraw their contribution
balances upon employment termination or retirement.
Liabilities are discounted for 3 months at the Investment Return
assumption.
Asset data is from unaudited financial statements. Membership
data was furnished by Administrator.
Interest discount decreased to 7.42% from 7.50%.
55
EXHIBIT 17
Page 1
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Disclosure Information Under GASB 5
(COLA Fund)
I. Funding Status and Progress as of September 30, 2014 and 2013
Pension benefit obligation: $(Millions)
2014 2013
($1,629 Table) ($1,427 Table)
- Retirees and beneficiaries currently
receiving prior COLA benefits
Retirees and beneficiaries receiving
COLA tabular benefits (beginning
January 1) and terminated employees
not yet receiving tabular benefits
0.9 1.0
323.7 282.5
Current Employees
Accumulated employee contributions
including interest 0.2 0.2
Employer - financed vested
Employer - financed non -vested
Total pension benefit obligation
0.0
46.2
0.0
36.3
371.0 320.0
Net assets available for benefits 394.6 378.7
Unfunded pension benefit
(obligation)/asset 23.6 58.7
The pension benefit obligations were determined as part of actuarial valuations at January 1, 2015 and
January 1, 2014, based on data and asset information at September 30, 2014 and September 30, 2013.
Significant actuarial assumptions used include (a) a rate of return on the investment of present and future
assets of 7.50% per year compounded annually, (b) post retirement COLA benefits based on the table in
effect at January 1, 2014 and January 1, 2013.
EXHIBIT 17
Page 2
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Disclosure Information Under GASB 5
(COLA Fund)
(Based on 01/01/2014 $1,629 Table)
II.Contributions Required and Contributions Made
The funding policy provides for annual employer contributions from January 1, 1994. The amount of the
contribution was $2.5 million, beginning January 1, 1994, increasing 4% per year each year thereafter, and
reduced (but not below zero) by any excess investment income transfer due on the same date.
The excess investment income transfer consists of a portion of gains due to investment return exceeding the
7.50 percent assumption.
III. Analysis of funding Progress ($ Millions)
(1) (2) (3) (4) (5)
Net Assets
Available Pension Unfunded Annual
Fiscal for Benefit Percent PBO Covered
Year Benefits' Obligation(2) Funded (2)-(1) Payroll (4)/(5)
($) ($) (%) ($) ($) (%)
2005 231.6 195.0 119 (36.6) 91.5 (40)
2006 249.0 216.8 115 (32.2) 90.4 (36)
2007 300.2 242.9 124 (57.3) 103.6 (55)
2008 305.8 279.4 109 (26.4) 129.4 (20)
2009 296.3 290.0 102 (6.3) 122.2 (5)
2010 311.8 315.6 99 3.8 80.2 5
2011 310.0 303.6 102 (6.4) 82.2 (8)
2012 350.3 312.6 112 (37.7) 82.2 (46)
2013 378.7 320.0 118 (58.7) 85.2 (69)
2014 394.6 370.1 107 (24.5) 93.7 (26)
(1) Excluding future City minimum contributions.
(2) Excluding new increment and contingency reserves
57
CITY OF MIAMI
FIRE FIGHTERS' AND POLICE OFFICERS°
RETIREMENT TRUST
Disclosure Information Under GASB 5
(COLA Fund)
IV. Revenues and Expenses
Revenues by Source
EXHIBIT 17
Page 3
Fiscal Employee Employer Investment
Year Contributions Contributions Income Total
($) ($) ($) ($)
2005 0 3,848,635 12,516,741 16,365,377
2006 0 0 25,340,983 25,340,983
2007 0 0 47,781,293 47,781,293
2008 0 0 44,539,016 44,539,016
2009 0 0 44,696,486 44,696,486
2010 0 4,682,453 18,493,888 23,176,341
2011 0 4,869,751 25,484,227 30,353,978
2012 0 5,064,541 21,399,142 26,463,683
2013 0 5,267,123 27,293,996 32,561,119
2014 0 5,477,808 30,812,622 36,290,430
Expenses by Type
Fiscal Administrative
Year Benefits Expenses Refunds Total
($) ($) ($) ($)
2005 10,614,510 672,938 1,182 11,288,630
2006 11,760,071 807,594 1,934 12,569,599
2007 13,304,749 944,477 388 14,249,614
2008 15,666,175 1,053,599 14,154 16,733,928
2009 16,925,422 867,083 0 17,795,505
2010 17,236,918 1,164,379 0 18,401,297
2011 17,363,841 1,321,324 0 18,685,165
2012 17,747,481 1,456,098 421 19,204,000
2013 19,522,271 1,604,698 0 21,126,969
2014 22,188,409 1,483,762 0 23,672,171
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