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Police Retirement Pension Board- 2022 Actuarial Fact Sheet2022 Florida Local Government Retirement Systems Actuarial Fact Sheet City/District Name:Miami Shores Village Employee group(s) covered:Police Current actuarial valuation date:10/1/2021 Market Value of Plan Assets (MVA):$34,910,081 Unfunded Accrued Liability (UAL):$3,485,884 Number of plan participants:64 10.70% Assumed 7.00% Funding requirement as percentage of payroll:46.16% Percentage of payroll contributed by employee:9.00% Benefit Formula Description:2.91% X AFC X SC, SC capped at 25 years MVA Funded Ratio (5-year history): Rate of Return: 11.04% 6.96% 54.60% 6.46% Employees covered by Social Security?Yes *Adjusted by excluding plans from average whose Funded Ratios were not within two standard deviations from the mean Actuarial Value of Plan Assets (AVA):$31,468,320 AFC Averaging Period (years):3 1/19/2023Date prepared: Actuarial Accrued Liability (AAL):$34,954,204 Actuarial Value, Actual (2021 Plan Year) Averages for all plans with 2021 current actuarial valuation date 99.87% 86.52% 84.97% 87.89% 85.08% 100.64%* 89.72%* 86.46%* 88.93%* 85.90%* Market Value, Actual 21.70%19.89% ** ** **Excludes plans with zero payroll Current valuation 1 year prior 2 years prior 3 years prior 4 years prior Florida Statute Chapter Discount Rate Pension Liability Market Value of Plan Assets Net Pension Liability Years assets sustain benefit payments Total Dollar Contribution Total % of Pay Contribution 34,767,849 35,168,683 -400,834 999.99 1,577,824 49.44 44,895,084 35,168,683 9,726,401 29.17 2,935,258 91.98 999.99 1,577,824 49.44 112.664(1)(a) 112.664(1)(b) 7.00% Valuation Basis 5.00% 7.00% Additional actuarial disclosures required by section 112.664, Florida Statutes: N/A N/A N/A Link to annual financial statements: (For explanation of terms, see glossary on page 2) 34,767,849 35,168,683 -400,834 GASB 67 Reporting 7.00% https://frs.fl.gov/forms/LOC5340488PDF10012021N1.pdf Discount Rate Total Pension Liability Net Pension Liability Market Value of Plan Assets GASB 67 Funded Ratio 101.15% Plan Status:Active Funding requirement as dollar amount:1,473,160 N/A Florida Department of Management Services | Page 1 Market Value of Plan Assets (MVA):The fair market value of assets, including DROP accounts. Unfunded Accrued Liability (UAL):The difference between the actuarial accrued liability and the actuarial value of assets accumulated to finance the obligation. MVA Funded Ratio:Market Value of Plan Assets divided by Actuarial Accrued Liability (GASB) Rate of Return (Assumed):Assumed long-term rate of return on the pension fund assets. Funding requirement as percentage of payroll: Total Required Contribution (employer and employee) divided by total payroll of active participants. No interest adjustment is included. AFC:Average Final Compensation or some variant of compensation (e.g., AME [Average Monthly Earnings], FAC [Final Average Compensation], FMC [Final Monthly Compensation] etc.) Actuarial Value of Plan Assets (AVA):Assets calculated under an asset valuation method smoothing the effects of volatility in market value of assets. Used to determine employer contribution. Actuarial Accrued Liability (AAL):Portion of Present Value of Fully Projected Benefits attributable to service credit earned as of the current actuarial valuation date. SC:Service Credit Years assets sustain benefit payments:Assuming no future contributions from any source, the number of years the market value of assets will sustain payment of expected retirement benefits. The number of years will vary based on the Florida Statute Chapter assumption. Florida Statute Chapter:112.664(1)(a) – uses mortality tables used in either of the two most recently published FRS valuation reports, with projection scale for mortality improvement 112.664(1)(b) – uses same mortality assumption as 112.664(1)(a) but using an assumed discount rate equal to 200 basis points (2.00%) less than plan’s assumed rate of return. Valuation Basis – uses all the assumptions in the plan's valuation as of the current actuarial valuation date. Discount Rate:Rate used to discount the liabilities. Typically the same as assumed rate of return on assets. Total Pension Liability:Actuarial Accrued Liability measured using the appropriate assumptions as specified above and the Traditional Individual Entry Age Normal Cost method. Total Dollar Contribution:Required contribution from all sources (i.e., employee and sponsor). Contribution will vary based on the Florida Statute Chapter assumption. Total % of Pay Contribution:Total Dollar Contribution divided by total payroll of active participants Net Pension Liability:Total Pension Liability minus Market Value of Plan Assets. Section 112.664 – Glossary of Terms Actuarial Summary Fact Sheet – Glossary of Terms Annual financial statements:A report issued which covers a local government retirement system or plan to satisfy the financial reporting requirements of section 112.664(1), F.S. Funding requirement as dollar amount:Total Required Contribution (employer and employee). No interest adjustment is included. Plan Status:Active, Closed (closed to new entrants) and Frozen (closed to new entrants and no further benefit accruals) Florida Department of Management Services | Page 2