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Chapter 112.664 Compliance Report Police 2017 MIAMI SHORES VILLAGE POLICE OFFICERS’ RETIREMENT SYSTEM Chapter 112.664, F.S. Compliance Report In Connection with the October 1, 2017 Funding Actuarial Valuation Report And the Plan’s Financial Reporting for the Year Ending September 30, 2017 TABLE OF CONTENTS Title Page Ch. 112.664, F.S. Results Schedule of Changes in Net Pension Liability 1. Using financial reporting assumptions per GASB Statement No. 67 1 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 2 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 3 4. Using the mandated mortality and funding interest rate +2% 4 Asset Versus Benefit Payments Projections 1. Using assumptions from the Plan’s latest actuarial valuation 5 2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 6 3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 7 4. Using the mandated mortality and funding interest rate +2% 8 Actuarially Determined Contribution 9 CHAPTER 112.664, FLORIDA STATUTES RESULTS 1 Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 1 Schedule of Changes in the Employers' Net Pension Liability Using Financial Reporting Assumptions per GASB Statement No. 67 Fiscal year ending September 30,2017 1. Total pension liability a. Service Cost 660,242$ b. Interest 2,115,601 c. Benefit Changes - d. Difference between actual & expected experience & Other 171,819 e. Assumption Changes (303,810) f. Benefit Payments (950,094) g. Contribution Refunds - h. Net Change in Total Pension Liability 1,693,758 i. Total Pension Liability - Beginning 28,022,822 j. Total Pension Liability - Ending 29,716,580$ 2. Plan Fiduciary Net Position a. Contributions - Employer 1,105,854$ b. Contributions - Employer (from State)100,575 c. Contributions - Member 210,630 d. Net Investment Income 2,495,997 e. Benefit Payments (950,094) f. Contribution Refunds - g. Administrative Expense (62,709) h. Other - i. Net Change in Plan Fiduciary Net Position 2,900,253 j. Plan Fiduciary Net Position - Beginning 21,180,905 k. Plan Fiduciary Net Position - Ending 24,081,158$ 3. Net Pension Liability / (Asset)5,635,422 Certain Key Assumptions Valuation Date 10/01/2016 Measurement Date 09/30/2017 Investment Return Assumption 7.50% Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 2 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(a), F.S. Fiscal year ending September 30,2017 1. Total pension liability a. Service Cost 660,242$ b. Interest 2,115,601 c. Benefit Changes - d. Difference between actual & expected experience & Other 171,819 e. Assumption Changes (303,810) f. Benefit Payments (950,094) g. Contribution Refunds - h. Net Change in Total Pension Liability 1,693,758 i. Total Pension Liability - Beginning 28,022,822 j. Total Pension Liability - Ending 29,716,580$ 2. Plan Fiduciary Net Position a. Contributions - Employer 1,105,854$ b. Contributions - Employer (from State)100,575 c. Contributions - Member 210,630 d. Net Investment Income 2,495,997 e. Benefit Payments (950,094) f. Contribution Refunds - g. Administrative Expense (62,709) h. Other - i. Net Change in Plan Fiduciary Net Position 2,900,253 j. Plan Fiduciary Net Position - Beginning 21,180,905 k. Plan Fiduciary Net Position - Ending 24,081,158$ 3. Net Pension Liability / (Asset)5,635,422 Certain Key Assumptions Valuation Date 10/01/2016 Measurement Date 09/30/2017 Investment Return Assumption 7.50% Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 3 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions required under 112.664(1)(b), F.S. Fiscal year ending September 30,2017 1. Total pension liability a. Service Cost 1,027,298$ b. Interest 2,008,143 c. Benefit Changes - d. Difference between actual & expected experience & Other 70,382 e. Assumption Changes - f. Benefit Payments (950,094) g. Contribution Refunds - h. Net Change in Total Pension Liability 2,155,729 i. Total Pension Liability - Beginning 35,959,440 j. Total Pension Liability - Ending 38,115,169$ 2. Plan Fiduciary Net Position a. Contributions - Employer 1,105,854$ b. Contributions - Employer (from State)100,575 c. Contributions - Member 210,630 d. Net Investment Income 2,495,997 e. Benefit Payments (950,094) f. Contribution Refunds - g. Administrative Expense (62,709) h. Other - i. Net Change in Plan Fiduciary Net Position 2,900,253 j. Plan Fiduciary Net Position - Beginning 21,180,905 k. Plan Fiduciary Net Position - Ending 24,081,158$ 3. Net Pension Liability / (Asset)14,034,011 Certain Key Assumptions Valuation Date 10/01/2016 Measurement Date 09/30/2017 Investment Return Assumption 5.50% Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 4 Schedule of Changes in the Employers' Net Pension Liability Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption Fiscal year ending September 30,2017 1. Total pension liability a. Service Cost 419,467$ b. Interest 2,123,207 c. Benefit Changes - d. Difference between actual & expected experience & Other 70,382 e. Assumption Changes - f. Benefit Payments (950,094) g. Contribution Refunds - h. Net Change in Total Pension Liability 1,662,962 i. Total Pension Liability - Beginning 22,405,125 j. Total Pension Liability - Ending 24,068,087$ 2. Plan Fiduciary Net Position a. Contributions - Employer 1,105,854$ b. Contributions - Employer (from State)100,575 c. Contributions - Member 210,630 d. Net Investment Income 2,495,997 e. Benefit Payments (950,094) f. Contribution Refunds - g. Administrative Expense (62,709) h. Other - i. Net Change in Plan Fiduciary Net Position 2,900,253 j. Plan Fiduciary Net Position - Beginning 21,180,905 k. Plan Fiduciary Net Position - Ending 24,081,158$ 3. Net Pension Liability / (Asset)(13,071) Certain Key Assumptions Valuation Date 10/01/2016 Measurement Date 09/30/2017 Investment Return Assumption 9.50% Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 5 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions From the Plan's Latest Actuarial Valuation FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2018 22,683,075 1,651,857 1,316,636 23,018,296 2019 23,018,296 1,671,254 1,469,826 23,219,724 2020 23,219,724 1,683,565 1,544,380 23,358,909 2021 23,358,909 1,693,415 1,560,088 23,492,236 2022 23,492,236 1,699,900 1,653,804 23,538,332 2023 23,538,332 1,702,615 1,673,586 23,567,361 2024 23,567,361 1,699,448 1,816,109 23,450,700 2025 23,450,700 1,688,845 1,865,526 23,274,019 2026 23,274,019 1,673,550 1,920,043 23,027,526 2027 23,027,526 1,653,472 1,962,461 22,718,537 2028 22,718,537 1,629,823 1,975,131 22,373,229 2029 22,373,229 1,603,896 1,975,905 22,001,220 2030 22,001,220 1,574,832 2,006,928 21,569,124 2031 21,569,124 1,540,146 2,067,684 21,041,586 2032 21,041,586 1,500,541 2,068,751 20,473,376 2033 20,473,376 1,456,170 2,115,541 19,814,005 2034 19,814,005 1,404,870 2,164,805 19,054,070 2035 19,054,070 1,347,919 2,163,638 18,238,351 2036 18,238,351 1,285,519 2,196,189 17,327,681 2037 17,327,681 1,216,857 2,205,851 16,338,687 2038 16,338,687 1,143,073 2,195,425 15,286,335 2039 15,286,335 1,064,658 2,181,790 14,169,203 2040 14,169,203 981,541 2,163,987 12,986,757 2041 12,986,757 893,157 2,155,982 11,723,932 2042 11,723,932 798,913 2,143,526 10,379,319 2043 10,379,319 699,092 2,116,197 8,962,214 2044 8,962,214 594,141 2,080,664 7,475,691 2045 7,475,691 483,908 2,047,175 5,912,424 2046 5,912,424 368,170 2,006,972 4,273,622 2047 4,273,622 246,798 1,965,954 2,554,466 2048 2,554,466 119,447 1,923,690 750,223 2049 750,223 - 1,878,420 - 31.33 Certain Key Assumptions Valuation Investment return assumption 7.50% Valuation Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Note: As required in Section 112.664(1)(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 6 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(a), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2018 22,683,075 1,651,857 1,316,636 23,018,296 2019 23,018,296 1,671,254 1,469,826 23,219,724 2020 23,219,724 1,683,565 1,544,380 23,358,909 2021 23,358,909 1,693,415 1,560,088 23,492,236 2022 23,492,236 1,699,900 1,653,804 23,538,332 2023 23,538,332 1,702,615 1,673,586 23,567,361 2024 23,567,361 1,699,448 1,816,109 23,450,700 2025 23,450,700 1,688,845 1,865,526 23,274,019 2026 23,274,019 1,673,550 1,920,043 23,027,526 2027 23,027,526 1,653,472 1,962,461 22,718,537 2028 22,718,537 1,629,823 1,975,131 22,373,229 2029 22,373,229 1,603,896 1,975,905 22,001,220 2030 22,001,220 1,574,832 2,006,928 21,569,124 2031 21,569,124 1,540,146 2,067,684 21,041,586 2032 21,041,586 1,500,541 2,068,751 20,473,376 2033 20,473,376 1,456,170 2,115,541 19,814,005 2034 19,814,005 1,404,870 2,164,805 19,054,070 2035 19,054,070 1,347,919 2,163,638 18,238,351 2036 18,238,351 1,285,519 2,196,189 17,327,681 2037 17,327,681 1,216,857 2,205,851 16,338,687 2038 16,338,687 1,143,073 2,195,425 15,286,335 2039 15,286,335 1,064,658 2,181,790 14,169,203 2040 14,169,203 981,541 2,163,987 12,986,757 2041 12,986,757 893,157 2,155,982 11,723,932 2042 11,723,932 798,913 2,143,526 10,379,319 2043 10,379,319 699,092 2,116,197 8,962,214 2044 8,962,214 594,141 2,080,664 7,475,691 2045 7,475,691 483,908 2,047,175 5,912,424 2046 5,912,424 368,170 2,006,972 4,273,622 2047 4,273,622 246,798 1,965,954 2,554,466 2048 2,554,466 119,447 1,923,690 750,223 2049 750,223 - 1,878,420 - 31.33 Certain Key Assumptions Valuation Investment return assumption 7.50% Valuation Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Note: As required in Section 112.664(1)(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions . For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 7 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions required under 112.664(1)(b), F.S. FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2018 22,683,075 1,211,362 1,316,636 22,577,801 2019 22,577,801 1,201,359 1,469,826 22,309,334 2020 22,309,334 1,184,543 1,544,380 21,949,497 2021 21,949,497 1,164,320 1,560,088 21,553,729 2022 21,553,729 1,139,975 1,653,804 21,039,900 2023 21,039,900 1,111,171 1,673,586 20,477,485 2024 20,477,485 1,076,319 1,816,109 19,737,695 2025 19,737,695 1,034,271 1,865,526 18,906,440 2026 18,906,440 987,053 1,920,043 17,973,450 2027 17,973,450 934,572 1,962,461 16,945,561 2028 16,945,561 877,690 1,975,131 15,848,120 2029 15,848,120 817,309 1,975,905 14,689,524 2030 14,689,524 752,733 2,006,928 13,435,329 2031 13,435,329 682,082 2,067,684 12,049,727 2032 12,049,727 605,844 2,068,751 10,586,820 2033 10,586,820 524,098 2,115,541 8,995,377 2034 8,995,377 435,214 2,164,805 7,265,786 2035 7,265,786 340,118 2,163,638 5,442,266 2036 5,442,266 238,929 2,196,189 3,485,006 2037 3,485,006 131,014 2,205,851 1,410,169 2038 1,410,169 17,185 2,195,425 - 2039 - - 2,181,790 - 2040 - - 2,163,987 - 2041 - - 2,155,982 - 2042 - - 2,143,526 - 2043 - - 2,116,197 - 20.58 Certain Key Assumptions Valuation Investment return assumption 5.50% Valuation Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Note: As required in Section 112.664(1)(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions . For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 8 Asset and Benefit Payment Projection Not Reflecting Any Contributions from the Employer, State or Employee Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption FYE Market Value of Assets (BOY) Expected Investment Return Projected Benefit Payments Market Value of Assets (EOY) 2018 22,683,075 2,092,352 1,316,636 23,458,791 2019 23,458,791 2,158,768 1,469,826 24,147,733 2020 24,147,733 2,220,677 1,544,380 24,824,030 2021 24,824,030 2,284,179 1,560,088 25,548,121 2022 25,548,121 2,348,516 1,653,804 26,242,833 2023 26,242,833 2,413,574 1,673,586 26,982,821 2024 26,982,821 2,477,103 1,816,109 27,643,815 2025 27,643,815 2,537,550 1,865,526 28,315,839 2026 28,315,839 2,598,803 1,920,043 28,994,599 2027 28,994,599 2,661,270 1,962,461 29,693,408 2028 29,693,408 2,727,055 1,975,131 30,445,332 2029 30,445,332 2,798,451 1,975,905 31,267,878 2030 31,267,878 2,875,119 2,006,928 32,136,069 2031 32,136,069 2,954,712 2,067,684 33,023,097 2032 33,023,097 3,038,929 2,068,751 33,993,275 2033 33,993,275 3,128,873 2,115,541 35,006,607 2034 35,006,607 3,222,799 2,164,805 36,064,601 2035 36,064,601 3,323,364 2,163,638 37,224,327 2036 37,224,327 3,431,992 2,196,189 38,460,130 2037 38,460,130 3,548,934 2,205,851 39,803,213 2038 39,803,213 3,677,023 2,195,425 41,284,811 2039 41,284,811 3,818,422 2,181,790 42,921,443 2040 42,921,443 3,974,748 2,163,987 44,732,204 2041 44,732,204 4,147,150 2,155,982 46,723,372 2042 46,723,372 4,336,903 2,143,526 48,916,749 2043 48,916,749 4,546,572 2,116,197 51,347,124 All future years Certain Key Assumptions Valuation Investment return assumption 9.50% Valuation Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation Note: As required in Section 112.664(1)(c) of the Florida Statutes, the projection of the Fund assets do not include contributions from the Employer, Employee or State, which is contrary to Florida Statutes and Plan provisions . For this reason, these projections should not be viewed as a representation of the amount of time the Fund can sustain benefit payments. Under the GASB standards which DO include contributions from the employer, employee and State, the Fund is expected to be able to sustain the benefit payment demands in the near-term and long-term future. Number of years for which current market value of assets are adequate to sustain the payment of expected retirement benefits, reflecting no contributions from the Employer, Employee or State, contrary to Florida Statutes and Plan provisions: Miami Shores Village Police Officers’ Retirement System Chapter 112.664, F.S. Compliance Report 9 A.Valuation Date B.Actuarially Determined Contribution (ADC) to Be Paid During Fiscal Year Ending 9/30/2019 9/30/2019 9/30/2019 9/30/2019 C.Assumed Dates of Employer Contributions 12/31/2018 12/31/2018 12/31/2018 12/31/2018 D.Annual Payment to Amortize Unfunded Actuarial Liability $518,095 $518,095 $1,114,301 $0 E.Employer Normal Cost 529,219 529,219 941,369 289,883 F.Employer ADC if Paid on Valuation Date: D + E 1,047,314 1,047,314 2,055,670 289,883 G.Employer ADC Adjusted for Frequency of Payments 1,146,404 1,146,404 2,197,955 324,706 H.Employer ADC Adjusted for Frequency of Payments as % of Covered Payroll 45.27 %45.27 %86.79 %12.82 % I.Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 %0.00 %0.00 %0.00 % J.Covered Payroll for Contribution Year 2,532,481 2,532,481 2,532,481 2,532,481 K.Employer ADC for Contribution Year: H x J 1,146,404 1,146,404 2,197,955 324,706 L.Estimated State Revenue in Contribution Year 30,193 30,193 30,193 30,193 M.Net Employer ADC in Contribution Year 1,116,211 1,116,211 2,167,762 294,513 N.Net Employer ADC as % of Covered Payroll in Contribution Year: M ÷ J 44.08 %44.08 %85.60 %11.63 % O. Expected Member Contributions 227,923 227,923 227,923 227,923 P. Total Contribution (including Members) in Contributing Year 1,374,327 1,374,327 2,425,878 552,629 Q. Total Contribution as a % of covered payroll in Contribution Year: P ÷ J 54.27 %54.27 %95.79 %21.82 % R. Certain Key Assumptions Investment return assumptionInvestment Return Assumption 7.50%7.50%5.50%9.50% Mortality Table Mortality Table FRS Mortality Rates from 7/1/16 FRS Valuation FRS Mortality Rates from 7/1/16 FRS Valuation FRS Mortality Rates from 7/1/16 FRS Valuation FRS Mortality Rates from 7/1/16 FRS Valuation October 1, 2017 ACTUARIALLY DETERMINED CONTRIBUTION (ADC) October 1, 2017 October 1, 2017October 1, 2017 112.664(1)(b) F.S. except 2% higher investment return assumption 112.664(1)(b) F.S. Assumptions 112.664(1)(a) F.S. Assumptions Plans Latest Actuarial Valuation