02-11-1987
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BOARD OF TRUSTEES
OF THE CITY OF EDGEWATER
POLICE RETIREMENT PLAN
WEDNESDAY, FEBRUARY 11, 1987
2:00 P.M.
CONFERENCE ROOM
CITY HALL
MINUTES
Acting Chairman James Inman called to order a regular meeting
of the Board of Trustees of the City of Edgewater Police
Retirement Plan at 2:11 P.M., in the Conference Room of City
Hall.
ROLL CALL
James Inman
Wallace Trickey
Dan Grise11
Present
Present
Present
Larry Jarkovsky
Nancy Shoemaker
Present
Present
Also present were Jack Ascher1, Jack Roe of Principal Financial
Group, Connie Martinez, City Clerk/Administrator, Mary Ann
Vendrasco, and Beverly Kinney, Secretary.
ELECTION OF CHAIRMAN
Wallace Trickey nominated Larry Jarkovsky, Nancy Shoemaker seconded.
Larry Jarkovsky nominated Nancy Shoemaker, Dan Grisell seconded.
There were no other nominations. Larry Jarkovsky was elected Chairman
4-0. Nancy Shoemaker received a vote of 1-3.
EXPLANATION BY JACK ASCHREL OF THE POLICE RETIREMENT PLAN FOR THE
CITY OF EDGEWATER
Mr. Ascher1 explained the plan started in 1978. Mr. Ascher1 went
on to explain how the plan worked, vesting, plan provisions, retirement,
disability, death benefits, the report of the Actuarial Valuation for
1985, general investment fund for 1985 and itemized expense charges
for 1985. (Copy of 1985 Actuarial Valuation attached)
ELECTION OF SECRETARY
Dan Grisell nominated Nancy Shoemaker, James Inman seconded.
There were no other nominations. Nancy Shoemaker was elected
secretary 4-0.
APPROVAL OF MINUTES
The minutes of December 29, 1986, were presented to the Board for
approval. Only three (3) Board members were present from that
meeting so the minutes were tabled until a later date. The motion
to table the minutes was made by Nancy Shoemaker and seconded by
James Inman.
There being no further business to go before the Board, James Inman
moved to adjourn the meeting, seconded by Nancy Shoemaker. The meeting
adjourned at 3:27 P.M.
Minutes respectfully submitted by:
Beverly Kinney
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GP 9502-2
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Report
of the
ACTUARIAL
VALUATION
MAD E AS 0 F October 1, 1985
FOR City of Edgewater Florida, Police
GA 59448
TH E BAN KERS LI FE It]
BANKERS LIFE COMPANY DES MOINES. IOWA
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ANALYSIS OF THE ACTUARIAL REPORT FOR
City of Edgewater Florida, Police
GA 59448
This Actuarial Valuation Report is for the plan year beginning October 1, 1985.
The report provides the information you need to determine your current year
contribution to the plan.
The Retirement Equity Act of 1984 (REA) changes the eligibility requirements
for the pre-retirement death benefit. We have assumed that these changes will
not be made to your plan. Should you decide to amend your plan effective
October 1, 1985 to comply with this act, this valuation will have to be
revised.
A summary of the results of the actuarial valuation is as follows:
Total Normal Cost
Normal Cost as Percentage of Compensation
Minimum Employer Deposit to avoid Funding Deficiency
Normal Cost plus amount to fund the Unfunded
Frozen Initial Liability over 20 years
$14,668
6.5%
$ 0
$19,202
Normal Cost as a percentage of compensation has increased from 4.7% to 6.5%.
This is a result of the addition of six new plan participants.
You may deposit for the current plan year any amount in excess of the minimum
deposit, $0. If you wish to follow a schedule of funding, dollar amounts are
illustrated in paragraph lb, page 2 of the report which will fund the Normal
Cost and fund the Unfunded Frozen Initial Liability over a definite period of
years.
Inquiries concerning your actuarial valuation report should be referred to
your local Bankers Life Group Representative or your valuation analyst in
the home office, Rebecca A. Stoll. (The phone number in the home office is
515 247-6110.)
November 18. 1985
Pension Actuarial Services
THE BANKERS LIFE IiJ
BANKERS LIFE COMPANY DES MOINES, IOWA
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EMERGING RETIREMENT LIABILITY
The following is a listing by plan year of projected retirement benefits,
the expected increase to the "Retired Life Floor", and a cumulative total of
the retirement increases.
Plan Year Projected Monthly Expected Increase Cumulative
Beginning Pension 1 to Floor 2 Increases
10-1-85 $ 235 $ 26,303 $ 26,303
10-1-86 0 0 26,303
10-1-87 0 0 26,303
10-1-88 0 0 26,303
10-1-89 0 0 26,303
10-1-90 0 0 26,303
10-1-91 0 0 26,303
10-1-92 0 0 26,303
10-1-93 0 0 26,303
10-1-94 0 0 26,303
10-1-95 0 0 26,303
10-1-96 0 0 26,303
10-1-97 0 0 26,303
10-1-98 1,577 191,580 217,883
10-1-99 0 0 217,883
For the purposes of the above illustration:
1. The projected monthly pension was calculated using the salary scale, if
any, shown on page 7 of this report.
2. The expected increase to your "floor" is calculated using the purchase rates
in effect on the current anniversary for the normal form of annuity. This
increase represents the total purchase price.
TH E BAN KERS LI FE E
-4-
BANKERS LIFE COMPANY DES MOINES, IOWA
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CENSUS DATA AND ASSET DISPLAY
I. CENSUS DATA - based on data supplied by the employer
Ac ti ve Participants Inactive Participants
Age Projected
Group Number Monthly Pension* Number Monthly Pension
Under 25 2 $ 7,763/
25 - 29 4 13,147
30 - 34 2 7,830
35 - 39 2 4,444 1 $226
40 - 44 3 4,915
45 - 49 3 2,232/"" 1 194
50 - 54
55 - 59
60 - 64
65 & over 1 235
Totals 17 $40,566 2 $420
* Projected monthly pension was calculated on the assumption that employees
would experience annual compensation increases of 6.0%.
II. The following assets were used in calculating Normal Cost and deposit levels
shown in this report.
Contractholder Fund
$159,119.06
This valuation does not include retired lives since it is assumed that the
retired life liability is offset by the retired life "floor." Total plan
assets, including the retired life "floor" are $186,475.84.
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lH E BAN KERS LI FE r;J
BANKERS LIFE COMPANY DES MOINES, IOWA
GP 14666 A.2
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SUMMARY OF PLAN PROVISIONS
1. Plan Eligibility
Age:
/'
./
Attained age 18 but not attained any age within five
years of retirement.
Service:
Three months of service.
Class:
Police person.
2. Normal Retirement Benefit
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Eligibility:
Attained age 60 and ~years of service but no later than
age 65.
Form:
Monthly annuity payable for life (optional forms
may be elected in advance of retirement).
Amount
(Accrued Benefit):
2% of Average Compensation multiplied by Benefit
Accrual Service.
3. Early Retirement Benefit
Age:
Service:
Attained age 50.
~ ~ years of service.
Same as Normal Retirement Benefit.
Form:
Amount:
Accrued Benefit on Early Retirement Date reduced by
6 2/3% for each year up to five and 3 1/3% for each
year between five and ten that the Early Retirement
Date precedes Normal Retirement Date.
4. Late Retirement Benefit
Age:
No maximum age.
Form:
Same as Normal Retirement Benefit.
Amoun t :
Accrued Benefit as of Normal Retirement Date increased
to recognize that the annuity commences subsequent to
Normal Retirement Date.
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lHE BANKERS LIFE rtJ
BANKERS LIFE COMPANY DES MOINES, IOWA
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5. Termination Benefit
.
Vesting Percentage:
100% subsequent to 5 years of plan participation.
Form:
Same as Normal Retirement Benefit with income
deferred until Normal Retirement Date.
Amount:
Accrued Benefit on date of termination multiplied
by the Vesting Percentage.
6. Disability Benefit
Form:
Monthly income payable until Normal Retirement, death,
or recovery and a deferred annuity payable at the
Normal Retirement Date.
Amount:
The greater of (a) or (b):
(a) Accrued Benefit on date of disability.
(b) 25% of Average Compensation.
7. Death Benefit
Age:
Attained age 50.
Service:
/
~ ~years of plan participation.
Monthly Annuity payable to eligible spouse.
Form:
Amount:
One-half of the ampunt that would have been payable
had the participant elected a qualified joint and
survivor form and early retired on the date of his
death.
8. Definitions
!
Average
Compensation:
The monthly average of total pay received for the
ten compensation years prior to Normal Retirement
Date.
Benefit Accrual
Service:
The number of years and fractional parts of a year of
service from date of employment.
This is intended as an outline of plan prov~s~ons and does not alter the intent
or meanings of the provisions contained in the contract and/or plan document.
TI-I E BAN KERS LI FE It]
-6a- BANKERS LIFE COMPANY DES MOINES, IOWA
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ACTUARIAL VALUATION ASSUMPTIONS
AND METHODS
Since the benefits which
certain assumptions must
allocates estimated plan
your employees will receive are payable in the future,
be made regarding future plan experience. The cost method
costs to plan years in a rational manner.
Actuarial Assumptions
.
Interest
8.0% per annum, compounded annually.
Mortality
1971 Group Annuity Table (Male) with
projection, Bankers Life modification
(setback 0 for males, 6 for females).
Expenses
5.0% of estimated plan costs.
Retirement Age
Normal Retirement Age as defined on page 6.
Salary Scale
6.0% increase each year until retirement.
Disability
Rates of disablement based on Period 4
(Benefit 4) and disabled life reserves
based on Benefit 4 of the 1952 Inter-
company Disability Study~
Assets
Fixed income assets are valued on a contract
basis. Long-term Equity Investments are
adjusted by spreading unrealized appreciation
and depreciation over four years. Short-term
Investments, Real Estate, and Bonds are
valued at market.
Social Security
Benefit expected to be available at retirement
based on a 6.0% increase in the Social Security
average earnings and a 5.5% increase in the
Consumer Price Index.
Withdrawal
Table 6 from the Actuary's Pension Handbook.
Selected rates of withdrawal are shown below.
Rate of Rate of
Age ~.Ji thdrawal Age Withdrawal
20 7.94% 40 6.11%
25 7.72 45 5.16
30 7.40 50 3.62
35 6.86 55 1. 37
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TH E BAN KERS LI FE Ii]
BANKERS LIFE COMPANY DES MOINES, IOWA
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