CITY OF TITUSVILLE
POLICE OFFICERS' AND FIREFIGHTERS' PENSION PLAN
ACTUARIAL VALUATION AS OCTOBER 1, 2019

CONTRIBUTIONS APPLICABLE TO THE
PLAN/FISCAL YEAR ENDING SEPTEMBER 30, 2021
GASB 67/68 DISCLOSURE INFORMATION AS OF SEPTEMBER 30, 2019


Foster & Foster Actuaries & Consultants

 

Foster & Foster Actuaries & Consultants

January 31, 2020
 
Board of Trustees
City of Titusville
General Employees' Pension Board
 
Re: City of Titusville Police Officers' and Firefighters' Pension Plan

 
Dear Board:
 
We are pleased to present to the Board this report of the annual actuarial valuation of the City of Titusville Police Officers' and Firefighters' Pension Plan. Included are the related results for GASB Statements No. 67 and No. 68. The funding valuation was performed to determine whether the assets and contributions are sufficient to provide the prescribed benefits and to develop the appropriate funding requirements for the applicable plan year. The calculation of the liability for GASB results was performed for the purpose of satisfying the requirements of GASB Statements No. 67 and No. 68. Use of the results for other purposes may not be applicable and may produce significantly different results.

The valuations have been conducted in accordance with generally accepted actuarial principles and practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial Standards Board, and reflect laws and regulations issued to date pursuant to the provisions of Chapters 112, 175, and 185, Florida Statutes, as well as applicable federal laws and regulations. In our opinion, the assumptions used in the valuations, as adopted by the Board of Trustees, represent reasonable expectations of anticipated plan experience. Future actuarial measurements may differ significantly from the current measurements presented in this report for a variety of reasons including: changes in applicable laws, changes in plan provisions, changes in assumptions, or plan experience differing from expectations. Due to the limited scope of the valuations, we did not perform an analysis of the potential range of such future measurements.

In conducting the valuations, we have relied on personnel, plan design, and asset information supplied by the City of Titusville, financial reports prepared by the custodian bank, and the actuarial assumptions and methods described in the Actuarial Assumptions section of this report. While we cannot verify the accuracy of all this information, the supplied information was reviewed for consistency and reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the information and believe that it has produced appropriate results. This information, along with any adjustments or modifications, is summarized in various sections of this report.

 
 
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 · (239) 433-5500 · Fax (239) 481-0634 · www.foster-foster.com


 
The total pension liability, net pension liability, and certain sensitivity information shown in this report are based on an actuarial valuation performed as of October 1, 2018. The total pension liability was rolled-forward from the valuation date to the plan’s fiscal year ending September 30, 2019 using generally accepted actuarial principles. It is our opinion that the assumptions used for this purpose are internally consistent, reasonable, and comply with the requirements under GASB No. 67 and No. 68.

The undersigned are familiar with the immediate and long-term aspects of pension valuations, and meet the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein. All of the sections of this report are considered an integral part of the actuarial opinions.

To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the program has any direct financial interest or indirect material interest in the City of Titusville, nor does anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the Police Officers' and Firefighters' Pension Plan. Thus, there is no relationship existing that might affect our capacity to prepare and certify this actuarial report.

If there are any questions, concerns, or comments about any of the items contained in this report, please contact us at 239-433-5500.

 
Respectfully submitted,
Foster & Foster, Inc.
 
By:    _/s/___
Douglas H. Lozen, EA, MAAA
Enrolled Actuary #17-7778
 
By:    _/s/___
Tyler A. Koftan, EA, MAAA
Enrolled Actuary #17-8685
 
DHL/lke
Enclosures

 
 

TABLE OF CONTENTS

  1. Introduction​

    1. Summary of Report - Page 5

    2. Changes Since Prior Valuation - Page 7

    3. Comparative Summary of Principal Valuation Results - Page 8

  2. Valuation Information

    1. Reconciliation of Unfunded Actuarial Accrued Liabilities - Page 14

    2. Detailed Actuarial (Gain)/Loss Analysis - Page 16

    3. Actuarial Assumptions and Methods - Page 17

    4. Glossary - Page 20

    5. Discussion of Risk - Page 21

    6. Partial History of Premium Tax Refunds - Page 24

  3. Trust Fund - Page 27

  4. Member Statistics

    1. Statistical Data - Page 32

    2. Age and Service Distribution - 33

    3. Valuation Participant Reconciliation - 34

  5. Summary of Current Plan - Page 35

  6. Governmental Accounting Standards Board Statements No. 67 and No. 68 Disclosure Information - Page 39

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SUMMARY OF REPORT

The regular annual actuarial valuation of the City of Titusville General Employees' Pension Plan, performed as of October 1, 2019, has been completed and the results are presented in this Report. The contribution amounts set forth herein are applicable to the plan/fiscal year ending September 30, 2021.

The contribution requirements, compared with those set forth in the October 1, 2018 actuarial valuation report, are as follows:


 
Valuation Date 10/1/2019 10/1/2018
Applicable to Fiscal Year Ending 9/30/2021 9/30/2020
Minimum Required Contribution $2,075,846 $2,574,924
Member Contributions (Est.) 530,837 510,697
City and State Required Contribution 1,545009 2,064,227
State Contribution (Est.) 1 376,982 376,982
City Required Contribution 2 $1,168,027 $1,687,245

¹ Reflects 50% of amount received in Calendar 2019. Pursuant to Ordinance 6-2017, the annual Chapter 175 and 185 Premium Tax Monies will be equally shared between the Membership Share Plan and City funding credit once the funded ratio (actuarial value of assets divided by the actuarial accrued liability) reaches or exceeds 90% as of the most recent actuarial valuation; this sharing will occur in the year following attainment of the 90% ratio. As of October 1, 2019, the funded ratio for this purpose is 91.8%. Accordingly, this sharing will first apply to State Contributions for fiscal year 2020.

² Please note that the City has access to a prepaid contribution of $143,447.08 that is available to offset a portion of the above stated requirements for the fiscal year ending September 30, 2020.


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As you can see, the Minimum Required Contribution shows a decrease when compared to the results determined in the January 17, 2020 actuarial impact statement. The decrease is attributable to net favorable experience and the expiration of a charge component of the Unfunded Actuarial Accrued Liability.

Plan experience was favorable overall on the basis of the plan's actuarial assumptions. The primary source of actuarial gain was an investment return of 9.53% (Actuarial Asset Basis) which exceeded the 7.75% assumption. This gain was offset in part by losses associated with inactive mortality experience and active mortality experience.​


City oTitusville Police Officers' and Firefighters' Pension Plan                                 FOSTER & FOSTER | 6
 

CHANGES SINCE PRIOR VALUATION

Plan Changes

Chapter 2019-21, Laws of Florida was signed into effect granting certain disability and pre-retirement death benefits to firefighters participating in an employer-sponsored retirement plan:
  1. Effective July 1, 2019, an additional presumption was added to the death in the line of duty section. “A firefighter shall be considered to have died in the line of duty if he or she dies as a result of cancer or circumstances that arise out of the treatment of cancer.”
  2. Effective July 1, 2019, an additional presumption was added to the disability in-line-of-duty presumption. “Diagnosis of cancer or the circumstances that arise out of the treatment of cancer. A firefighter shall be considered totally and permanently disabled in the line of duty if he or she meets the Plan’s definition of total and permanently disabled due to the diagnosis of cancer or circumstances that arise out of the treatment of cancer.
Please note that the benefit changes only relate to the disability and death benefits for the Pension Fund and do not provide for other additional benefits that are provided for in Florida Statutes Section 112.1816.

The plan was also amended with respect to in-service distributions and to establish a “DROP II” program. These additional changes did not result in a change to the plan’s funding requirements.

Actuarial Assumption/Method Changes

There have been no changes of actuarial assumptions or methods since the prior valuation other than an increase in the expected percentage of disabilities and pre-retirement deaths that are in line-of-duty, as a result of the plan change described above.

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COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS

A. Participant Data

Participants 10/1/2019 10/1/2018
Actives 138 136
Service Retirees 99 93
DROP Retirees 0 0
Beneficiaries 22 21
Disability Retirees 9 9
Terminated Vested 45 51

Total
 
313 310
Total Annual Payroll $7,519,914 $7,243,616
Payroll Under Assumed Ret. Age 7,519,914 7,243,616
Annual Rate of Payments to
Service Retires
4,297,212 4,118,146
DROP Retirees 0 0
Beneficiaries 504,862 468,242
Disability Retirees 181,091 181,091
Terminated Vested 448,860 547,779

B. Assets

Asset 10/1/2019 10/1/2018
Actuarial Value (AVA)1 63,045,264 59,114,583
Market Value (MVA)1 62,470,577 62,247,918

C. Liabilities

Present Value of Benefits 10/1/2019 10/1/2018
Actives - Retirement Benefits 19,260,865 17,728,727
Actives -  Disability Benefits 1,153,170 1,119,192
Actives - Death Benefits 467,449 464,476
Actives - Vested Benefits 2,248,025 2,383,457
Actives - Refund of Contributions 343,169 326,963
Service Retirees 41,020,469 40,105,641
DROP Retirees1 0 0
Beneficiaries 5,198,042 4,858,805
Disability Retirees 1,980,222 1,997,168
Terminated Vested 3,300,659 3,742,579
Share Plan Balances 1 0 0
Total 74,972,070 72,727,008

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COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS (Cont'd)

C. Liabilities (Continued)

Liability 10/1/2019 10/1/2018
Present Value of Future Salaries 57,500,034 56,987,181
Present Value of Future Member Contributions 3,737,502 3,704,167
Normal Cost (Retirement) 569,017 560,279
Normal Cost (Disability) 83,385 82,694
Normal Cost (Death) 40,228 40,085
Normal Cost (Vesting) 175,092 176,137
Normal Cost (Refunds) 59,122 52,991
Total Normal Cost 926,844 912,186
Present Value of Future Normal Costs 6,276,743 6,347,433
Accrued Liability (Retirement) 15,181,154 13,622,808
Accrued Liability (Disability) 536,154 503,518
Accrued Liability (Death) 177,366 171,650
Accrued Liability (Vesting) 1,226,308 1,302,980
Accrued Liability (Refunds) 74,953 74,426
Accrued Liability (Inactives) 1 51,499,392 50.704.193
Share Plan Balances 1 0 0
Total Actuarial  Accrued Liability (EAN AL) 68,695,327 66,379,575
Unfunded Actuarial Accrued Liability (UAAL) 5,650,063 6,036,459
Funded Ratio (AVA / EAD AL) 91.8% 89.1%

City oTitusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 9
 

COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS (Cont'd)

D. Actuarial Present Value of Accrued Benefits

Vested Accrued Benefits 10/1/2019 10/1/2018
Inactives plus Share Plan Balances 1 51,499,392 50,704,193
Actives 6,743,235 6,181,198
Member Contributions 4,266,690 4,060,362
Total 62,509,317 60,945,753
 
Non-vested Accrued Interest 10/1/2019 10/1/2018
Total Present Value
Accrued Benefits (PVAB)
65,678,269 63,716,659
Funded Ratio (MVA / PVAB) 95.1% 97.7%
 
Increase (Decrease) in Present Value
of Accrued Benefits Attributable to:
10/1/2019
Plan Amendments 0
Assumption Changes 0
Plan Experience 1,584,888
Benefits Paid (4,391,162)
Interest 4,767,884
Other 0
Total 1,961,610

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COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS (Cont'd)

E. Pension Cost

Valuation Date 10/1/2019 10/1/2018
Applicable to Fiscal Year Ending 9/30/2021 9/30/2020
Normal Cost2 $1,006,565 $989,414
Administrative Expenses2 108,496 94,387
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 29 years
(as of 10/1/2019) 2
960,785 1,491,123
Minimum Required Contribution 2,075,846 2,574,924
Expected member Contribution2 530,837 510,697
Expected City Contribution 1,545,009 2,064,227

F. Past Contributions

Plan Years Ending: 9/30/2019
City and State Requirement 2,369,493
Actual Contributions Made - Members
(excluding buyback)
478,277
Actual Contributions Made - City 1,615,530
Actual Contributions Made - State 753,963
Actual Contributions Made - Total 2,847,770

G. Net Actuarial (Gain)/Loss

Net Actuarial (Gain)/Loss: (270,508)

¹ The asset values and liabilities include accumulated DROP and Share Plan Balances as of
9/30/2019 and 9/30/2018.


² Contributions developed as of 10/1/2019 displayed above have been adjusted to
account for assumed salary increase and interest components.


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COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS (Cont'd)

H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Liability as of:

Year Projected Unfunded
Actuarial Accrued Liability
2019 5,650,063
2020 5,134,689
2021 4,953,133
2028 752,887
2049 0

I. (i) 5 Year Comparison of Actual Assumed Salary Increases

Year Ended Actual Assumed
9/30/2019 4.08% 4.03%
9/30/2018 4.63% 6.00%
9/30/2017 3.44% 6.00%
9/30/2016 4.25% 6.00%
9/30/2015 8.41% 6.00%

I. (ii) 5 Year Comparison of Investment Return on Market Value and Actuarial Value

Year Ended Market Value Actuarial Value Assumed
9/30/2019 3.06% 9.53% 7.75%
9/30/2018 9.55% 8.08% 8.00%
9/30/2017 14.17% 8.49% 8.00%
9/30/2016 11.65% 8.55% 8.00%
9/30/2015 -2.27% 10.50% 8.00%

I. (iii) Average Annual Payroll Growth

(a) Payroll as of: 10/1/2019 10/1/2009
Amount $7,519,914 $6,496,136

(b) Total Increase: 15.76%
(c) Number of Years: 10.00
(d) Average Annual Rate: 1.47%


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STATEMENT BY ENROLLED ACTUARY

This actuarial valuation was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. There is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities or current costs have not been established or otherwise taken into account in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation.

By:    _/s/___
Douglas H. Lozen, EA, MAAA 
Enrolled Actuary #17-7778

Please let us know when the report is approved by the Board and unless otherwise directed we will provide a copy of the report to the following office to comply with Chapter 112 Florida Statutes:

Mr. Keith Brinkman
Bureau of Local
Retirement Systems
Post Office Box 9000
Tallahassee, FL 32315-9000

Mr. Steve Bardin
Municipal Police and Fire
Pension Trust Funds
Division of Retirement
Post Office Box 3010
Tallahassee, FL 32315-3010


City oTitusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 12
 

RECONCILIATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITIES

  1. Unfunded Actuarial Accrued Liability as of October 1, 2018 = $7,234,992
  2. Sponsor Normal Cost developed as of October 1, 2018 = 441,351
  3. Expected administrative expenses for the year ended September 30, 2019 = 87,020
  4. Expected interest on (1), (2) and (3) = 598,289
  5. Sponsor contributions to the System during the year ended September 30, 2019 = 2,369,493
  6. Expected interest on (5) = 71,588
  7. Expected Unfunded Actuarial Accrued Liability as of September 30, 2019 (1)+(2)+(3)+(4)-(5)-(6) = 5,920,571
  8. Change to UAAL due to Assumption Change = 0
  9. Change to UAAL due to Actuarial (Gain)/Loss = (270,508)
  10. Unfunded Actuarial Accrued Liability as of October 1, 2019 = 5,650,063
Type of Base Date Established Years Remaining 10/1/2019 Amount Amortization Amount
NO DATA 10/1/1990 1 31,137 31,137
NO DATA 10/1/1993 4 108,737 30,299
NO DATA 10/1/1995 6 757,669 150,955
NO DATA 10/1/2001 12 186,075 22,619
method change 10/1/2002 13 1,920,428 222,409
prior losses 10/1/2002 9 1,615,409 237,506
benefit change 10/1/2002 13 112,710 13,053
actuarial loss 10/1/2003 9 1,110,359 163,251
actuarial loss 10/1/2004 9 1,350,301 198,528
actuarial loss 10/1/2005 9 801,958 117,908
benefit change 10/1/2005 16 24,426 2,727
actuarial loss 10/1/2006 9 1,407,705 206,968
benefit change 10/1/2006 17 1,906,608 190,763
actuarial loss 10/1/2007 9 11,871 1,745
method change 10/1/2008 9 (377,612) (55,518)
assumption change 10/1/2009 10 (1,806,605) (847,062)
actuarial loss 10/1/2010 1 315,738 315,738
assumption change 10/1/2010 11 624,529 80,208
actuarial loss 10/1/2011 2 130,121 67,488

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Type of Base Date Established Years Remaining 10/1/2018 Amount Amortization Amount
benefit change 10/1/2011 22 (3,785,937) (337,666)
actuarial gain 10/1/2012 3 (292,147) (104,735)
actuarial gain 10/1/2013 4 (574,161) (159,988)
actuarial gain 10/1/2014 5 (1,317,585) (304,247)
State reserve allocation 10/1/2015 26 (181,903) (15,277)
benefit change 10/1/2015 26 (5,530) (464)
actuarial gain 10/1/2015 6 598,527 119,249
assumption change 10/1/2016 17 1,609,467 161,033
actuarial gain 10/1/2016 7 (144,357) (25,513)
actuarial gain 10/1/2017 8 (320,701) (51,302)
actuarial loss 10/1/2018 9 94,469 13,889
assumption change 10/1/2018 19 1,220,027 115,789
benefit change 10/1/2018 29 (16,108) (1,309)
actuarial gain 10/1/2019 10 (270,508) (36,993)
TOTAL= NO DATA NO DATA 5,650,063 884,690

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DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS

  1. Unfunded Actuarial Accrued Liability (UAAL) as of October 1, 2018 = $7,234,992
  2. Expected UAAL as of October 1, 2019 = 4,533,206
  3. Summary of Actuarial (Gain)/Loss, by component:
  4. Actual UAAL as of October 1, 2019 = $5,650,063

City oTitusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 16
 

ACTUARIAL ASSUMPTIONS AND METHODS

Mortality Rates Healthy Active Lives:
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB
Male: RP2000 Generational, 10% Combined Healthy White Collar / 90% Blue Collar, Scale BB

Healthy Inactive Lives:
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB
Male: RP2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB

Disabled Lives:
Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale
Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale


The above assumption rates were mandated by Chapter 2015-157, Laws of Florida. This law mandates the use of the assumptions used in either of the two most recent valuations of the Florida Retirement System (FRS). The above rates are those outlined in Milliman’s July 1, 2018 FRS valuation report for special risk employees. We feel this assumption sufficiently accommodates future mortality improvements.

90% of active deaths are assumed to be service-incurred.
Interest Rate 7.75% per year compounded annually, net of investment related expenses. This is supported by the target asset allocation of the trust and the expected long-term return by asset class.
Salary Increases See table later in this section. This assumption was adopted as the result of the August 20, 2018 experience study. Assumptions for final salary loads are as follows:

For Members Eligible for Retirement on June 1, 2013:

Projected salary at retirement is increased 25% to account for non-regular compensation.

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Salary Increases (Cont'd) For Members not eligible for Normal Retirement on June 1, 2013 with at least 10 years of service as of that date:

The projected frozen benefit as of June 1, 2013 includes a 25% load for the final year included in the averaging period.

For Members with less than 10 years of service (and not eligible for Normal Retirement) as of June 1, 2013:

No final salary load is assumed.
Payroll Growth 0.00% for purposes of amortizing the Unfunded Actuarial Accrued Liability. Level dollar amortization of the UAAL was adopted as a result of the August 20, 2018 experience study.
Administrative Expenses $99,903 annually, based on the average of actual expenses incurred in the prior two fiscal years. Previously, the actual expense in the prior fiscal year was used. Using a two-year average results in a less volatile estimate than the prior method.
Amortization Method New UAAL amortization bases are established according to the following amortization periods:

Experience: 10 Years.
Assumption/Method Changes: 20 Years.
Benefit Changes: 30 Years.
Retirement Age (Normal and Early) See tables later in this section. This assumption was adopted as the result of the August 20, 2018 experience study.
Termination Rate See table later in this section. This assumption was adopted as the result of the August 20, 2018 experience study.
Disability Rate See table later in this section. This assumption was adopted as the result of the August 20, 2018 experience study. 90% of Disability retirements are assumed to be service-related.

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Asset Smoothing Methodology The Actuarial Value of Assets is brought forward using the historical four-year geometric average of Market Value Returns (net-of-fees). Over time, this may result in an immaterial bias that is above or below the Market Value of Assets.
Funding Method Entry Age Normal Actuarial Cost Method. The following loads are applied for determination of the Sponsor funding requirement:

Interest – A half year, based on the current 7.75% assumption.

Salary – A full year, based on the current 4.55% assumption.

ASSUMPTION TABLES

Table 1: % Terminating During the Year
Service Rate
0 to 1 14%
2 to 3 11%
4 to 9 6%
10+ 4%

Table 2: % Becoming Disabled During the Year
Age Rate
20 0.09%
25 0.10%
30 0.12%
35 0.16%
40 0.21%
45 0.38%
50 0.72%
55 1.09%
60 1.36%

Table 3: Salary Scale
Service Rate
0 7.00%
1 to 3 4.50%
4+ 4.00%

  Table 4: % Retiring During the Year (Less than 25 Years of Service)
Age Rate
50 to 54 15%
55 to 58 50%
59 + 100%

Table 5: % Retiring During the Year (Greater than or equal to 25 Years of Service)
Age Rate
25 to 28 50%
29 + 100%

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GLOSSARY

Total Annual Payroll is the projected annual rate of pay as of the valuation date for all covered
Members.

Present Value of Benefits is the single sum value on the valuation date of all future benefits to be paid to current Members, Retirees, Beneficiaries, Disability Retirees and Vested Terminations.
 
Total Required Contribution is equal to the Normal Cost plus an amount sufficient to amortize the Unfunded Accrued Liability over no more than 30 years. The required amount is adjusted for interest according to the timing of contributions during the year.
 
Entry Age Normal Cost Method - Under this method, the normal cost is the sum of the individual normal costs for all active participants. For an active participant, the normal cost is the participant’s normal cost accrual rate, multiplied by the participant’s current compensation.
  1. The normal cost accrual rate equals:
    1. the present value of future benefits for the participant, determined as of the participant’s entry age, divided by
    2. the present value of the compensation expected to be paid to the participant for each year of the participant’s anticipated future service, determined as of the participant’s entry age. 
  2. In calculating the present value of future compensation, the salary scale is applied both retrospectively and prospectively to estimate compensation in years prior to and subsequent to the valuation year based on the compensation used for the valuation. 
  3. The accrued liability is the sum of the individual accrued liabilities for all participants and beneficiaries. A participant’s accrued liability equals the present value, at the participant’s attained age, of future benefits less the present value at the participant’s attained age of the individual normal costs payable in the future. A beneficiary’s accrued liability equals the present value, at the beneficiary’s attained age, of future benefits. The unfunded accrued liability equals the total accrued liability less the actuarial value of assets. 
  4. Under this method, the entry age used for each active participant is the participant’s age at the time he or she would have commenced participation if the plan had always been in existence under current terms, or the age as of which he or she first earns service credits for purposes of benefit accrual under the current terms of the plan.​
 
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DISCUSSION OF RISK

ASOP No. 51, Assessment and Disclosure of Risk Associated with Measuring Pension Obligations and Determining Pension Plan Contributions, states that the actuary should identify risks that, in the actuary’s professional judgment, may reasonably be anticipated to significantly affect the plan’s future financial condition.

Throughout this report, actuarial results are determined using various actuarial assumptions. These results are based on the premise that all future plan experience will align with the plan’s actuarial assumptions; however, there is no guarantee that actual plan experience will align with the plan’s assumptions. It is possible that actual plan experience will differ from anticipated experience in an unfavorable manner that will negatively impact the plan’s funded position.

Below are examples of ways in which plan experience can deviate from assumptions and the potential impact of that deviation. Typically, this results in an actuarial gain or loss representing the current-year financial impact on the plan’s unfunded liability of the experience differing from assumptions; this gain or loss is amortized over a period of time determined by the plan’s amortization method. When assumptions are selected that adequately reflect plan experience, gains and losses typically offset one another in the long term, resulting in a relatively low impact on the plan’s contribution requirements associated with plan experience. When assumptions are too optimistic, losses can accumulate over time and the plan’s amortization payment could potentially grow to an unmanageable level.

City of Titusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 21
 

DISCUSSION OF RISK (Cont'd)

Impact of Plan Maturity on Risk

For newer pension plans, most of the participants and associated liabilities are related to active members who have not yet reached retirement age. As pension plans continue in operation and active members reach retirement ages, liabilities begin to shift from being primarily related to active members to being shared amongst active and retired members. Plan maturity is a measure of the extent to which this shift has occurred. It is important to understand that plan maturity can have an impact on risk tolerance and the overall risk characteristics of the plan. For example, closed plans with a large amount of retired liability do not have as long of a time horizon to recover from losses (such as losses on investments due to lower than expected investment returns) as plans where the majority of the liability is attributable to active members. For this reason, less tolerance for investment risk may be warranted for highly mature closed plans with a substantial inactive liability. Similarly, mature closed plans paying substantial retirement benefits resulting in a small positive or net negative cash flow can be more sensitive to near term investment volatility, particularly if the size of the fund is shrinking, which can result in less assets being available for investment in the market.

To assist with determining the maturity of the plan, we have provided some relevant metrics in the table following titled “Plan Maturity Measures and Other Risk Metrics”. Highlights of this information are discussed below:
It is important to note that the actuary has identified the risks in this section as the most significant risks based on the characteristics of the plan and the nature of the project, however, it is not an exhaustive list of potential risks that could be considered. Additional advanced modeling, as well as the identification of additional risks, can be provided at the request of the audience addressed on page 2 of this report.​

City of Titusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 22
 

PLAN MATURITY MEASURES AND OTHER RISK METRICS

Support Ratio 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Total Actives 130 133 136 138
Total Inactives 1 157 155 157 162
Actives/Inactives 1 82.8% 85.8% 86.6% 85.2%
 
Asset Volatility Ratio 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Market Value of Assets (MVA) 53,173,633 58,443,173 62,247,918 62,470,577
Total Annual Payoff 6,748,203 7,040,280 7,243,616 7,519,914
MVA / Total Annual Payoff 788.0% 830.1% 859.3% 830.7%
 
Accrued Liability (AL) Ratio 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Inactive Accrued Liability 49,419,563 48,743,788 50,704,193 51,499,392
Total Accrued Liability (EAN) 62,646,927 63,455,365 66,379,575 68,695,327
Inactive AL / Total AL 78.9% 76.8% 76.4% 75.0%
 
Funded Ratio 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Actuarial Value of Assets (AVA) 53,979,489 56,343,242 59,144,583 63,045,264
Total Accrued Liability (EAN) 62,646,927 63,455,365 66,379,575 68,695,327
AVA / Total Accrued Liabillity (EAN) 86.2% 88.8% 89.1% 91.8%
 
Net Cash Flow Ratio 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Net Cash Flow 2 (1,012,599) (2,128,252) (1,685,505) (1,656,178)
Market Value of Assets (MVA) 53,173,633 58,443,173 62,247,918 62,470,577
Ratio -1.9% -3.6% -2.7% -2.7%

¹ Excludes terminated participants awaiting a refund of member contributions.
² Determined as total contributions minus benefit payments and administrative expenses.


City of Titusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 23
 

PARTIAL HISTORY OF PREMIUM TAX REFUNDS

Received During
Fiscal Year
Amount Increase from
Previous Year
1998 268,069.08 NO DATA
1999 292,120.75 9.0%
2000 284,295.61 -2.7%
2001 303,087.86 6.6%
2002 341,514.06 12.7%
2003 373,360.33 9.3%
2004 428,469.92 14.8%
2005 449,292.46 4.9%
2006 464,257.04 3.3%
2007 512,547.55 10.4%
2008 664,120.76 29.6%
2009 649,318.39 -2.2%
2010 578,165.27 -11.0%
2011 549,312.77 -5.0%
2012 598,656.96 9.0%
2013 671,213.47 12.1%
2014 724,287.49 7.9%
2015 670,200.87 -7.5%
2016 731,349.81 9.1%
2017 681,740.60 -6.8%
2018 724,199.93 6.2%
2019 753,963.14 4.1%

City of Titusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 24
 

SPECIAL ACTUARIAL ACCOUNT ACTIVITY
10/1/2018 to 10/1/2019

Growth Assuming 7.75% Return

(1)

Item Amount
10/1/2018 Beginning Balance 62,274,741
Contributions 2,847,770
Investment Earnings 4,762,116
Non-Investment Expenses 112,786
Investment Expenses 229,944
Distributions 4,391,162

(2)

09/30/2019 Ending Balance = 65,150,735

(3)

09/30/2019 Actuarial Assets = 63,045,264

(4)

Excess Earnings: (3) - (2) = (2,105,471)

(5)

09/30/2019 Actuarial Gain (Loss) = 270,508

* Share Account Allocation:
Lesser of [(4) or (5)]x50% = (1,473,830)

Share Account Activity:

Date Item Amount
10/1/2018 Account Balance (68,229,503)
NO DATE Interest @ 7.75% (5,287,786)
10/1/2019 Addition (1,473,830)
10/1/2019 Benefits "Purchase" (17,340)
10/1/2019 Account Balance (75,008,459)

10/1/2018 Adjusted Actuarial Assets

(6) 

Actuarial Assets (3), above = 63,045,264

(7)

10/1/2019 Account Balance = (74,008,459)

Adjusted Actuarial Assets
Lesser of: (6) or [(6) - (7)] = 63,045,264

*Per Ordinance No.26-1999


City of Titusville Police Officers' and Firefighters' Pension Plan                                    FOSTER & FOSTER | 25
 

SPECIAL ACTUARIAL ACCOUNT

History of Benefit "Purchases" and
Actuarial Gains and Losses​
Plan Year Ended Benefit "Purchases" Notes Net Actuarial
Gain (Loss)
9/30/1991 106,565 AIS dated 01/24/94 407,179
9/30/1992 0 NO DATA 481,200
9/30/1993 0 NO DATA (221,686)
9/30/1994 331,854 AIS dated 07/02/96 167,994
9/30/1995 251,762 AIS dated 02/28/97 (145,889)
9/30/1996 509,800 AIS dated 01/22/98 89,658
9/30/1997 0 NO DATA 678,279
9/30/1998 428,988 AIS dated 8/26/99 541,465
9/30/1999 716,239 AIS dated 05/04/00 967,544
9/30/2000 416,578 AIS dated 02/23/01 83,693
9/30/2001 0 NO DATA (618,344)
9/30/2002 0 NO DATA (2,039,277)
9/30/2003 0 NO DATA (1,740,552)
9/30/2004 0 NO DATA (1,869,013)
9/30/2005 0 NO DATA (1,108,361)
9/30/2006 0 NO DATA (2,471,326)
9/30/2007 0 NO DATA (18,699)
9/30/2008 0 NO DATA (1,581,383)
9/30/2009 0 NO DATA (2,884,794)
9/30/2010 0 NO DATA (2,634,658)
9/30/2011 0 NO DATA (590,967)
9/30/2017 0 NO DATA 913,451
9/30/2013 0 NO DATA 1,427,266
9/30/2014 0 NO DATA 2,668,236
9/30/2015 (6,509) AIS dated 02/10/17 990,972
9/30/2016 0 NO DATA 203,373
9/30/2017 0 NO DATA 407,936
9/30/2018 0 NO DATA (108,319)
9/30/2019 (17,340) AIS Dated 01/07/20 270,508
Total 2,737,940 NO DATA (7,315,815)


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 26
 

STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2019

ASSETS -
Cash or Equivalent
Cost Value Market Value
Short Term Investments 514,830.00 514,830.00
Cash 1.47 1.47
Total Cash and Equivalents 514,831.47 514,831.47
 
ASSETS  -
Receivables
Cost Value Market Value
From Broker for Investments Sold 316,523.77 316,523.77
Investment Income 86,056.82 86,056.82
Total Receivable 402,580,59 402,580,59
 
ASSETS -
Investments
Cost Value Market Value
Fixed Income 13,066,221.43 13,321,471.26
Equities 28,653,701.47 33,171,820.83
Pooled/Common/Commingled Funds:
Equity
5,848,101.51 6,975,684.28
Pooled/Common/Commingled Funds:
Real Estate
5,723,249.09 8,346,5603.59
     
TOTALS Cost Value Cost Value
Total Investments 53,291,273.50 61,815,536.96
Total Assets 54,208,685.56 62,732,949.02
 
LIABILITIES - 
Payables
COST VALUE MARKET VALUE
Refunds of Member Contributions 28,473.84 28,473.84
Administrative Expenses 4,619.85 4,619.85
To Broker for Investments Purchased 85,441.19 85,441.19
Prepaid Member Contribution 390.00 390.00
Prepaid City Contribution 143,447.08 143,447.08
Total Liabilities 262,371.96 262,371.96
 
NET
(Total Assets - Total Liabilities)
COST VALUE MARKET VALUE
NET POSITION RESTRICTED FOR PENSIONS 53,946,313.60 62,470,577.06


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 27
 

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2019

Market Value Basis

Additions:

Contributions Amount
Member 478,276.83
City 1,615,529.86
State 753,963.14
Total Contributions 2,847,769.83
 
Investment Income Amount
Net Realized Gain (Loss) 634,641.05
Unrealized Gain (Loss) (1,340,146.22)
Net Increase in Fair Value of Investments (705,505.14)
Interest & Dividends 2,814,287.09
Less Investment Expense Note 1 (229,943.92)
Net Investment Income 1,878,838.00
Total Additions = 4,726,607.83

Deductions:

Distributions to Members: Amount
Benefit Payments 4,222,725.78
Lump Sum DROP Distributions 0.00
Lump Sum PLOP Distributions 28,705.12
Refunds of Member Contributions 139,730.88
Total Distributions 4,391,161.78
Administrative Expense 112,786.49
Total Deductions 4,503,948.27
Net Increase in Net Position = 222,659.56

Net Position Restricted for Pensions

Beginning of the Year = 62,247,917.50
End of the Year = 62,470,577.06​


Note 1 Investment related expenses include investment advisory, custodial and performance monitoring fees.​

City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 28
 

ACTUARIAL ASSET VALUATION
SEPTEMBER 30, 2019

Actuarial Assets for funding purposes are developed by increasing the Actuarial Assets used
in the most recent actuarial valuation of the Fund by the average annual market value rate of
return (net of investment related expenses) for the past four years. Actuarial Assets shall not be
less than 80% nor greater than 120% of Market Value of Assets.​

Details of the derivation are set forth as follows:

Plan Year Rate of Return Note 1
09/30/2016 -11.65%
09/30/2017 14.17%
09/30/2018 9.55%
09/30/2019 3.06%
Annualized Rate of Return for prior four (4) years: 9.53%

(A)

10/01/2018 Actuarial Assets = $59,144,583.02

(I)

Net Investment Income: Amount
1. Interest and Dividends 2,814,287.09
2. Realized Gains (Losses) 634,641.05
3. Unrealized Gains (Losses) (1,340,146.22)
4. Change in Actuarial Value 3,678,021.50
5. Investment Related Expenses (229,943.92)
Total 5,556,859.50

(B)

10/01/2019 Actuarial Assets = $63,045,264.08

Actuarial Asset Rate of Return = 2I/(A+B-I): 9.53%

10/01/2018 Limited Actuarial Assets = $63,045,264.08

10/01/2018 Market Value of Assets = $62,470,577.06

Actuarial Gain/(Loss) due to Investment Return (Actuarial Asset Basis): $1,037,902.40

Note 1 Market Value Basis, net of investment related expenses.

City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 29
 

CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS SEPTEMBER 30, 2019

Actuarial Asset Basis​

Revenues

Contributions: Amount
Member 478,276.83
City 1,615,529.86
State 753,963.14
Total Contributions 2,847,769.83
 
Earnings from Investments: Amount
Interest & Dividends 2,814,287.09
Net Realized Gain (Loss) 634,641.05
Unrealized Gain (Loss) (1,340,146.22)
Change in Actuarial Value 3,678,021.50
Total Earnings and Investment Gains 5,786,803.42

Expenditures

Distributions to Members: Amount
Benefit Payments 4,222,725.78
Lump Sum DROP Distributions 0.00
Lump Sum PLOP Distributions 28,705.12
Refunds of Member Contributions 139,730.88
Total Distributions 4,391,161.78
 
Expenses: Amount
Investment related Note 1 229,943.92
Administrative 112,786.49
Total Expenses 342,730.41

Change in Net Assets for the Year = 3,900,681.06
Net Assets Beginning of the Year = 59,144,583.02
Net Assets End of the Year Note 2 = 63,045,264.08​


Note 1 Investment related expenses include investment advisory, custodial and performance monitoring fees.
Note 2 Net Assets may be limited for actuarial consideration.​


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 30
 

RECONCILIATION OF CITY'S SHORTFALL/(PREPAID) CONTRIBUTION
FOR THE FISCAL YEAR ENDED (FYE) SEPTEMBER 30, 2019

  1. Required City and State Contributions = $2,369,493.00
  2. Less Allowable State Contribution = (753,963.14)
  3. Required City Contribution for Fiscal 2019 = (1,615,529.86)
  4. Less 2018 Prepaid Contributions = (70,783.99)
  5. Less Actual City Contributions = (1,688,192.95)
  6. Equals City's Shortfall/(Prepaid) Contribution as of September 30, 2019 = ($143,447.08)
City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 31
 

STATISTICAL DATA

Actives

Data Point 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Number 130 133 136 138
Average Current Age 35.8 36.1 36.5 36.6
Average Age at Employment 27.7 27.6 27.8 27.6
Average Past Service 8.1 8.5 8.7 9.0
Average Annual Salary $51,909 $52,934 $53,262 $54,492

Service Retirees

Data Point 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Number 97 95 93 99
Average Current Age 63.7 64.0 64.2 64.6
Average Annual Benefit $39,886 $42,312 $44,281 $43,406

DROP Retirees

Data Point 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Number 3 1 0 0
Average Current Age 51.7 50.9 NOT APPLICABLE NOT APPLICABLE
Average Annual Benefit $62,114 $50,730 NOT APPLICABLE NOT APPLICABLE

Beneficiaries

Data Point 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Number 13 17 21 22
Average Current Age 63.7 66.0 67.7 67.2
Average Annual Benefit $24,423 $19,050 $22,297 $22,948

Disability Retirees

Data Point 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Number 9 9 9 9
Average Current Age 54.8 55.8 56.8 57.8
Average Annual Benefit $20,121 $20,121 $20,121 $20,121

Terminated Vested

Data Point 10/1/2016 10/1/2017 10/1/2018 10/1/2019
Number 36 42 51 45
Average Current
Age Note 1
42.5 44.5 45.2 45.0
Average Annual
Benefit Note 2
$13,218 $14,651 $16,111 $14,027

Note 1 The Average Current Age excludes participants awaiting a refund of contributions.
Note 2 The Average Annual Benefit excludes participants awaiting a refund of contributions.


City of Titusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 32
 

AGE AND SERVICE DISTRIBUTION

AGE 0 PAST SERVICE 1 PAST SERVICE 2 PAST SERVICE 3 PAST SERVICE 4 PAST SERVICE 5 TO 9 PAST SERVICE 10 TO 14 PAST SERVICE 15 TO 19 PAST SERVICE 20 TO 24 PAST SERVICE 25 TO 29 PAST SERVICE 30+ PAST SERVICE TOTAL
15 TO 19 0 0 0 0 0 0 0 0 0 0 0 0
20 TO 24 7 4 0 2 0 0 0 0 0 0 0 11
25 TO 29 3 4 4 1 2 7 0 0 0 0 0 21
30 TO 34 4 2 1 2 4 13 4 0 0 0 0 30
35 TO 39 2 1 2 0 0 9 8 4 0 0 0 26
40 TO 44 1 0 0 2 0 5 6 5 0 0 0 19
45 TO 49 0 2 0 0 0 0 7 5 10 0 0 24
50 TO 54 0 0 0 0 0 0 2 3 0 1 0 6
55 TO 59 0 0 0 0 0 0 0 1 0 0 0 1
60 TO 64 0 0 0 0 0 0 0 0 0 0 0 0
65+ 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL 17 13 7 5 6 34 27 18 10 1 0 138


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 33
 

VALUATION PARTICIPANT RECONCILIATION

  1. Active Lives
    1. Number in prior valuation 10/1/2018 = 136
    2. Terminations
      1. Vested (partial or full) with deferred benefits = (1)
      2. Vested in refund of member contributions only = (2)
      3. Refund of member contributions or full lump sum distribution received = (9)
    3. Deaths
      1. Beneficiary receiving benefits = (1)
      2. No future benefits payable = 0
    4. Disabled = 0
    5. Retired = (3)
    6. DROP = 0
    7. Continuing participants = 120
    8. New entrants = 18
    9. Total active life participants in valuation = 138
  2. Non-Active lives (including beneficiaries receiving benefits), see table below:
Category Service
Retirees,
Vested
Receiving Benefits
DROP Benefits Receiving Death Benefits Receiving Disability Benefits Vested (Deferred Annuity) Vested (Due Refund) Total
a. Number prior to valuation 93 0 21 9 34 17 174
Retired 6 0 0 0 (3) 0 3
DROP 0 0 0 0 0 0 0
Vested (Deferred Annuity) 0 0 0 0 1 0 1
Vested (Due Refund) 0 0 0 0 0 2 2
Death, With Survivor 0 0 1 0 0 0 1
Death, No Survivor (5) 0 0 (1) 0 0 0
Disabled 0 0 0 0 0 0 0
Refund of Contributions 0 0 0 0 0 (6) (6)
Rehires 0 0 0 0 0 0 0
Expired Annuities 0 0 0 0 0 0 0
Data Corrections 0 0 0 0 0 0 0
b. Number current valuation 9 0 22 9 32 13 175


City of Titusville Police Officers' and Firefighters' Pension Plan                                    FOSTER & FOSTER | 34
 

SUMMARY OF CURRENT PLAN
(Through Ordinance 43-2019)

Original Effective Date

December 30, 1966.

Credited Service

Years and fractional parts of years of service with the City as a Police Officer or Firefighter.

Salary

Before June 1, 2013 (and for Members eligible for Normal Retirement as of that date):
Gross earnings including overtime pay, and tax exempt, tax sheltered or tax deferred items of income.

After June 1, 2013:
Police Officers: Base pay, special duty
incentives paid, and educational incentive
pay (not to exceed $6,750 per year), excluding overtime and all other forms of compensation.

Firefighters: Base pay, certification and certain types
of incentive pay (not to exceed $6,750 per year). Excludes overtime and any other forms of compensation.

For purposes of determining the frozen accrued benefit as of June 1, 2013 Salary includes payment of accumulated leave that would have been included in salary if the Member retired prior to June 1, 2013, however the leave balance shall be reduced by leave used subsequent to June 1, 2013.

Average Final Compensation

Before June 1, 2013 (and for Members eligible for Normal Retirement as of that date): Average of Salary during the highest three (3) years out of the last ten (10) years.

After June 1, 2013: Average of Salary during the highest five (5) years out of the last ten (10) years.

Normal Retirement

Benefit for Service Prior to June 1, 2013:
Date First of the month coinciding with or following the earlier of age 55 and the completion of eight (8) years of Credited Service or the completion of 25 years of Credited Service regardless of age.



City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 35
 

Normal Retirement (Cont'd)

Benefit for Service Prior to June 1, 2013:
Benefit 3.0% of Average Final Compensation (Before June 1, 2013) times Credited Service.
Form of Benefit Ten Year Certain and Life Annuity (options available).

Benefit Accrued for Service After June 1, 2013:
Date Remains the same for those with at least ten (10) years of service as of this date.
For members with less than ten (10) years of service, is the earlier of age 55 and the completion of ten (10) years of Credited Service or age 52 with 25 years of Credited Service.
Benefit 2.5% of Average Final Compensation (5-Year) times Credited Service.
Form of Benefit Ten Year Certain and Life Annuity (options available).

Members eligible for retirement prior to June 1, 2013 will continue to follow the same
structure as before these amendments were adopted.

Early Retirement 

Eligibility With at least 10 years of Credited Service, age 50.
Benefit Same as for Normal Retirement but reduced 3% per year prior to age 55 to reflect early payment.

Vesting

Schedule Before June 1, 2013: 0% for first 7 years, 100% after 8 years.
After June 1, 2013: 100% for 10 years (All Members are 100% vested in their frozen accrued benefit as of June 1, 2013).
Benefit Before June 1, 2013: Frozen vested accrued benefit as of June 1, 2013 paid beginning at age 55.
After June 1, 2013: Vested Accrued benefit based on Service earned after June 1, 2013.
Terminated Vested Members may elect a refund of contributions or a monthly annuity payable upon reaching age 55.
Non-vested Members receive a refund of contributions.


City of Titusville Police Officers' and Firefighters' Pension Plan                                    FOSTER & FOSTER | 36
 


Disability

Eligibility Total and permanent (as determined by the Board). Members covered from date of hire (Service incurred) or after completion of 10 years of Credited Service (Non-Service incurred).
Benefit Accrued Benefit (determined as for Normal Retirement). Benefit shall not be less than 50% of Average Final Compensation for service incurred disability.
Form of Benefit Paid for life and ten years certain, or until recovery (as determined by the Board); optional forms of payment are available.
Maximum Total of Plan and Workers Compensation benefits shall not exceed 100% of Average Monthly Wage.


Cost-of-Living Adjustment

Eligibility Normal and Early Retirees (and Disability Retirees who otherwise meet the requirements for Normal or Early Retirement at the time of Disability Retirement) hired before June 1, 2013.
Benefit 1.277% automatic lifetime COLA, beginning the first October 1 following one full year of retirement. For Members not eligible for Normal Retirement as of June 1, 2013 shall only apply to credited service earned prior to June 1, 2013.


Death Benefits

Service Incurred Coverage from date of employment; beneficiary receives greater of accrued benefit or 50% of Average Final Compensation for life, with a maximum payment period of 25 years for non-spouse beneficiaries only.
Non-Service Incurred Coverage after 8 years of service; same benefit as Service Incurred.


Contributions

Members 6.50% of Salary.
State Tax on premiums for fire and casualty insurance issued to residents of the City as provided in Chapters 175 and 185, Florida Statutes.
City Remaining amount necessary to pay the Normal Cost and fund the accrued, past service liability over 30 years.


City of Titusville Police Officers' and Firefighters' Pension Plan                                    FOSTER & FOSTER | 37
 

 

Board of Trustees

Police Chief, Fire Chief, Commander designated by Police Chief, Division Chief designated by Fire Chief, Two elected Members from each Department, one citizen selected by a majority of other Members and appointed by the City Council as a ministerial duty.

Deferred Retirement Option Plan

Eligibility The original DROP is closed to any new participants after July 2, 2013. A subsequent program “DROP II” is available to participants effective December 10, 2019.
Participation Not more than 60 months.
Rate of Return The Account is credited with the actual net rate of investment return (total return net of investment management fees, brokerage commissions and transaction costs) minus 2% after each fiscal year end. The annual return is subject to a minimum of 0% and a maximum equal to the current valuation investment return assumption as adopted by the Board.
Form of Distribution Cash lump sum (options available) payable at termination of employment.
 

Share Plan

Funded Status Not currently funded. Once funded, the method of allocation will be established by a mutual agreement between the City and unions representing the Police Officers and Firefighters.

City of Titusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 38
 

GASB 67 STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2019

ASSETS -
Cash or Equivalent
Market Value
Short Term Investments 514,830
Cash 1
Total Cash and Equivalents 514,831
 
ASSETS  -
Receivables
Market Value
From Broker for Investments Sold 316,524
Investment Income 86,057
Total Receivable 402,581
 
ASSETS -
Investments
Market Value
Fixed Income 13,321,471
Equities 33,171,821
Pooled/Common/Commingled Funds:
Equity
6,975,684
Pooled/Common/Commingled Funds:
Real Estate
8,346,561
     
TOTALS Cost Value
Total Investments 61,815,537
Total Assets 92,732,949
 
LIABILITIES - 
Payables
MARKET VALUE
Refunds of Member Contributions 28,474
Administrative Expenses 4,620
To Broker for Investments Purchased 85,441
Total Liabilities 118,535
 
NET
(Total Assets - Total Liabilities)
MARKET VALUE
NET POSITION RESTRICTED FOR PENSIONS 62,614,414


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 39
 

GASB 67 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2019

Market Value Basis

Additions:

Contributions Amount
Member 478,472
City 1,688,193
State 753,963
Total Contributions 2,920,628
 
Investment Income Amount
Net Increase in Fair Value of Investments (705,505)
Interest & Dividends 2,814,287
Less Investment Expense Note 1 (229,944)
Net Investment Income 1,878,838
Total Additions = 4,799,466

Deductions:

Distributions to Members: Amount
Benefit Payments 4,222,726
Lump Sum DROP Distributions 0
Lump Sum PLOP Distributions 28,705
Refunds of Member Contributions 139,731
Total Distributions 4,391,162
Administrative Expense 112,786
Total Deductions 4,503,948
Net Increase in Net Position = 295,518

Net Position Restricted for Pensions

Beginning of the Year = 62,318,896
End of the Year = 62,614,414


Note 1 Investment related expenses include investment advisory, custodial and performance monitoring fees.​


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 40
 

GASB 67 NOTES TO THE FINANCIAL STATEMENTS
(FOR THE YEAR ENDED SEPTEMBER 30, 2019)

Plan Description

Plan Administration

The Plan is a single-employer defined benefit pension plan administered by the Plan's Board of Trustees comprised of:
  1. Four of whom are the Police Chief, Fire Chief, a Police Major Assistant Chief or other Police Officer designated by the Police Chief and the City Manager, and a Chief Officer or other Firefighter designated by the Fire Chief and the City Manager;
  2. Two of whom are full-time Firefighters and two of whom are full-time Police Officers who are elected by their respective departments by a majority of the members of the plan in those departments; and
  3. a Ninth Trustee who is chosen by a majority of the first eight Trustees.

Plan Membership as of October 1, 2018

Inactive Plan Members or Beneficiaries Currently Receiving Benefits = 123
Inactive Plan Members Entitled to But Not Yet Receiving Benefits = 51
Active Plan Members = 136
Total = 310

Benefits Provided

The Plan provides retirement, termination, disability and death benefits.​
A summary of the benefit provisions can be found in the October 1, 2018 Actuarial Valuation Report for the City of Aubundale Municipal Firefighters' Pension Trust Fund prepared by Foster & Foster Actuaries and Consultants.
Incorporated are the benefit changes for measurement date 09/30/2019 as noted under the Notes to Schedule of Changes in Net Pension Liability and Related Ratios.

Contributions

Members: 6.50% of Salary.
State: Tax on premiums for fire and casualty insurance issued to residents of the City as provided in Chapters 175 and 185, Florida Statutes.
City: Remaining amount necessary to pay the Normal Cost and fund the accrued, past service liability over 30 years.

Investments
Investment Policy

The following was the Board's adopted asset allocation policy as of September 30, 2019:
Asset Class Target Allocation
All Cap Value Equity 27.5%
Broad Growth Equity 27.5%
Foreign Equity Securities 10.0%
Broad Market Fixed Income 20.0%
Global Bond 5.0%
Real Estate 10.0%
Total 100.0%
Concentrations:
The Plan did not hold investments in any one organization that represent 5 percent or more of the Pension Plan's Fiduciary Net Position.

Rate of Return:

For the year ended September 30, 2019, the annual money-weighted rate of return on Pension Plan investments, net of Pension Plan investment expense, was 3.06 percent.

The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 41
 

Deferred Retirement Option Program

Eligibility: The DROP is closed to any new participants after July 2, 2013.
Participation: Not more than 60 Months.
Rate of Return: At the election of the member, the Account is credited with either: 1) the actual net rate of investment return (total return net of brokerage commissions and transaction costs), or 2) 6.5% per year. The income is credited each fiscal quarter and the Member may change the method of crediting income once during the DROP period.
The DROP balance as of September 30, 2019 is $0.



City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 42
 

GASB 67 NET PENSION LIABILITY OF THE SPONSOR

The components of the Net Pension Liability of the Sponsor on September 30, 2019 were as follows:

Total Pension Liability = $67,378,861
Plan Fiduciary Net Position = $(62,614,414)
Sponsor's Net Pension Liability = $4,764,447
Plan Fiduciary Net Position as a percentage of Total Pension Liability = 92.93%

Actuarial Assumptions:

The Total Pension Liability was determined by an actuarial valuation as of October 1, 2018 updated to September 30, 2019 using the following actuarial assumptions:

Inflation = 2.50%
Salary Increases = Service based
Discount Rate = 7.75%
Investment Rate of Return = 7.75%

Mortality Rate Healthy Active Lives:

Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB.
Male: RP2000 Generational, 10% Combined Healthy White Collar / 90% Combined Healthy Blue Collar, Scale BB.

Mortality Rate Healthy Inactive Lives:

Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB.
Male: RP2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB.

Mortality Rate Disabled Lives:

Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale.
Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale.
The above assumption rates were mandated by Chapter 2015-157, Laws of Florida. This law mandates the use of the assumptions used in either of the two most recent valuations of the Florida Retirement System (FRS). The above rates are those outlined in Milliman's July 1, 2018 FRS valuation report for special risk employees. We feel this assumption sufficiently accommodates future mortality improvements.

The most recent actuarial experience study used to review the other significant assumptions was dated August 17, 2018.

The Long-Term Expected Rate of Return on Pension Plan investments can be determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of Pension Plan investment expenses and inflation) are developed for each major asset class.
For 2019 the inflation rate assumption of the investment advisor was 2.50%.
These ranges are combined to produce the Long-Term Expected Rate of Return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

Best estimates of geometric real rates of return for each major asset class included in the Pension Plan's target asset allocation as of September 30, 2019 are summarized in the following table:

 
Asset Class Long Term Expected Real Estate Rate of Return
All Cap Value Equity 7.50%
Broad Growth Equity 7.50%
Foreign Equity Securities 8.50%
Broad Market Fixed Income 2.50%
Global Fixed Income 3.50%
Real Estate 4.50%


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 43
 

Discount Rate:

The Discount Rate used to measure the Total Pension Liability was 7.75 percent.

The projection of cash flows used to determine the Discount Rate assumed that Plan Member contributions will be made at the current contribution rate and that Sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the Member rate. Based on those assumptions, the Pension Plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the Long-Term Expected Rate of Return on Pension Plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability.

 
Item 1% Decrease
6.75%
Current
Discount Rate
7.75%
1% Increase
8.75%
Sponsor's Net Pension Liability $12,579,262 $4,764,447 $(1,751,316)


City of Titusville Police Officers' and Firefighters' Pension Plan                                  FOSTER & FOSTER | 44
 

GASB 67 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - Last 10 Fiscal Years

Total Pension Liability 09/30/2019 09/30/2018 09/30/2017
Service Cost 935,609 996,049 978,374
Interest 4,985,073 4,948,098 4,845,726
Changes in Excess State Money NO DATA NO DATA NO DATA
Changes of benefit terms (16,714) NO DATA NO DATA
Differences between Expected and Actual Experience 265,852 (140,006) 125,344
Changes of assumptions NO DATA 1,178,390 NO DATA
Contributions - Buy Back NO DATA NO DATA NO DATA
Benefit Payments, including Refunds of Employee Contributions (4,391,162) (4,474,998) (4,899,952)
Net Change in Total Pension Liability 1,778,658 2,507,533 1,049,492
Total Pension Liability - Beginning 65,600,203 63,092,670 62,043,178
Total Pension Liability - Ending (a) $ 67,378,861 $ 65,600,203 $ 63,092,670
 
Plan Fiduciary Net Position 09/30/2019 09/30/2018 09/30/2017
Contributions - Employer 1,688,193 1,681,919 1,662,032
Contributions - State 753,963 724,200 981,740
Contributions - Employee 478,472 463,439 475,109
Contributions - Buy Back NO DATA NO DATA NO DATA
Net Investment Income 1,878,838 5,490,249 7,397,792
Benefit Payments, including Refunds of Employee Contributions (4,391,162) (4,474,998) (4,899,952)
Administrative Expense (112,786) (87,020) (81,782)
Net Change in Plan Fiduciary Net Position (295,518) 3,797,789 5,234,939
Plan Fiduciary Net Position - Beginning 62,318,896 58,521,107 53,286,168
Plan Fiduciary Net Position - Ending (b) $ 62,614,414 $ 62,318,896 $ 58,521,107
 
Liability 09/30/2019 09/30/2018 09/30/2017
Net Pension Liability - Ending (a) - (b) $ 4,764,447 $ 3,281,307 $ 4,571,563
 
Net Position 09/30/2019 09/30/2018 09/30/2017
Plan Fiduciary Net Position as a percentage
of the Total Pension Liability
92.93% 95.00% 92.75%
 
Detail 09/30/2019 09/30/2018 09/30/2017
Covered Payroll Note 1 $ 7,319,880 $ 7,123,928 $ 6,666,701
Net Pension Liability as a percentage of Covered Payroll 65.09% 46.06% 68.57%

Notes to Schedule:

Note 1 The Covered Payroll numbers shown are in compliance with GASB 82.

Changes in benefit terms:

For measurement date 09/30/2019, amounts reported as changes of benefit terms resulted from the provisions of Chapter 112.1816, Florida Statutes. The Statutes state that, effective July 1, 2019, a death or disability (under the Plan's definition of total and permanent disability) for a Firefighter due to the diagnosis of cancer or circumstances that arise out of the treatment of cancer will be treated as duty-related.

Changes of assumptions:

For measurement date 09/30/2018, amounts reported as changes of assumptions resulted from the August 20, 2018 experience study.

City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 45
 

GASB 67 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - Last 10 Fiscal Years

Total Pension Liability 09/30/2016 09/30/2015
Service Cost 937,776 879,893
Interest 4,597,357 4,548,755
Changes in Excess State Money (214,112) NO DATA
Changes of benefit terms (4,647) NO DATA
Differences between Expected and Actual Experience 156,069 (1,094,130)
Changes of assumptions 1,822,308 NO DATA
Contributions - Buy Back NO DATA 45,901
Benefit Payments, including Refunds of Employee Contributions (3,999,048) (3,656,202)
Net Change in Total Pension Liability 3,295,703 727,217
Total Pension Liability - Beginning 58,747,475 58,020,258
Total Pension Liability - Ending (a) $ 62,043,178 $ 58,747,475
 
Plan Fiduciary Net Position 09/30/2016 09/30/2015
Contributions - Employer 1,925,864 2,320,434
Contributions - State 731,350 670,201
Contributions - Employee 513,866 495,762
Contributions - Buy Back NO DATA 45,901
Net Investment Income 5,588,136 (1,138,997)
Benefit Payments, including Refunds of Employee Contributions (3,999,048) (3,656,202)
Administrative Expense (72,096) (75,162)
Net Change in Plan Fiduciary Net Position 4,688,072 (1,335,063)
Plan Fiduciary Net Position - Beginning 48,598,096 49,933,159
Plan Fiduciary Net Position - Ending (b) $ 53,286,168 $ 48,598,096
 
Liability 09/30/2016 09/30/2015
Net Pension Liability - Ending (a) - (b) $ 8,757,01 $ 10,149,379
 
Net Position 09/30/2016 09/30/2015
Plan Fiduciary Net Position as a percentage
of the Total Pension Liability
85.89% 82.72%
 
Detail 09/30/2016 09/30/2015
Covered Payroll Note 1 $ 6,423,341 $ 6,514,768
Net Pension Liability as a percentage of Covered Payroll 136.33% 155.79%

Notes to Schedule:

Note 1 The Covered Payroll numbers shown are in compliance with GASB 82, except for the 09/30/2015 measurement period which includes DROP payroll.

Changes of benefit terms:

For measurement date 09/30/2016, amounts reported as change of benefit terms resulted from an Actuarial Impact Statement dated February 10, 2017.

Changes of assumptions:

For measurement date 09/30/2016, as a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for special risk employees.
The inflation assumption rate was lowered from 3.00% to 2.50%, matching the long-term inflation assumption utilized by the Plan's investment consultant.​


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 46
 

GASB 67 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - Last 10 Fiscal Years

Total Pension Liability 09/30/2014 09/30/2013
Service Cost 844,189 781,656
Interest 4,489,984 4,427,655
Changes in Excess State Money NO DATA NO DATA
Changes of benefit terms NO DATA NO DATA
Differences between Expected and Actual Experience NO DATA NO DATA
Changes of assumptions NO DATA NO DATA
Contributions - Buy Back 33,664 NO DATA
Benefit Payments, including Refunds of Employee Contributions (5,682,176) (3,505,528)
Net Change in Total Pension Liability (314,429) 1,903,783
Total Pension Liability - Beginning 58,334,687 56,430,904
Total Pension Liability - Ending (a) $ 58,020,258 $ 58,334,687
 
Plan Fiduciary Net Position 09/30/2014 09/30/2013
Contributions - Employer 2,445,395 2,200,133
Contributions - State 724,287 671,213
Contributions - Employee 451,474 447,451
Contributions - Buy Back 33,664 NO DATA
Net Investment Income 5,183,029 5,960,691
Benefit Payments, including Refunds of Employee Contributions (5,682,176) (3,305,528)
Administrative Expense (64,150) (69,845)
Net Change in Plan Fiduciary Net Position 3,091,523 5,904,115
Plan Fiduciary Net Position - Beginning 46,841,636 40,937,521
Plan Fiduciary Net Position - Ending (b) $ 49,933,159 $ 46,841,636
 
Liability 09/30/2014 09/30/2013
Net Pension Liability - Ending (a) - (b) $ 8,087,099 $ 11,493,051
 
Net Position 09/30/2014 09/30/2013
Plan Fiduciary Net Position as a percentage
of the Total Pension Liability
86.06% 80.30%
 
Detail 09/30/2014 09/30/2013
Covered Payroll Note 1 $ 6,629,574 $ 5,990,707
Net Pension Liability as a percentage of Covered Payroll 121.99% 191.85%

Notes to Schedule:

Note 1 The Covered Payroll numbers shown are in compliance with GASB 82.

City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 47
 

GASB 67 SCHEDULE OF CONTRIBUTIONS
Last 10 Fiscal Years

Fiscal Year Ended Actuarially Determined Contribution Contributions in relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered
Payroll Note 1
Contributions as a percentage of Covered Payroll
09/30/2019 $ 2,369,493 $ 2,442,156 $ (72,633) $ 7,319,880 33.36%
09/30/2018 $ 2,413,269 $ 2,406,119 $ 7,150 $ 7,123,928 33.78%
09/30/2017 $ 2,378,374 $ 2,343,772 $ 34,602 $ 6,666,701 35.16%
09/30/2016 $ 2,544,678 $ 2,657,214 $ (112,536) $ 6,423,341 41.37%
09/30/2015 $ 2,990,635 $ 2,990,635 NO DATA $ 6,514,768 45.91%
09/30/2014 $ 3,169,682 $ 3,169,682 NO DATA $ 6,629,574 47.81%
09/30/2013 $ 2,871,346 $ 2,871,346 NO DATA $ 5,990,707 47.93%

Note 1 The Covered Payroll numbers shown are in compliance with GASB 82, except for the 09/30/2015 measurement period which includes DROP payroll.

Notes to Schedule

Valuation Date: 10/01/2017
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported.​

Methods and assumptions used to determine contribution rates:
Mortality Rate: Healthy Active Lives:
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB.
Male: RP2000 Generational, 10% Combined Healthy White Collar / 90% Combined Healthy Blue Collar, Scale BB.

Healthy Inactive Lives:
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB.
Male: RP2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB.

Disabled Lives:
Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale.
Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale.
The assumed rates of mortality were mandated by Chapter 2015-157, Laws of Florida. This law mandates the use of the assumptions used in either of the two most recent valuations of the Florida Retirement System (FRS). The above rates are those outlined in the July 1, 2016 FRS actuarial valuation report for special risk employees.
We feel this assumption sufficiently accommodates future mortality improvements.
Interest Rate: 8% per year compounded annually, net of investment related expenses. This assumption is supported by the Plan’s target asset allocation and expected long-term rate of return by asset class.
 

City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 48

 

Retirement Age: Those with at least 10 years of Service as of June 1, 2013: Earlier of age 55 and 8 years of service or 25 years of service, regardless of age. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year.Those with less than 10 years of service as of June 1, 2013:Earlier of age 55 and 10 years of service or age 52 with 25 years of service. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year.
We believe this assumption is reasonable based on the plan provisions.
Early Retirement: Commencing at eligibility for Early Retirement (age 50 with 10 years of service), Members are assumed to retire with an immediate benefit at the rate of 5% per year. The assumption is 2% per year for Members who have at least 10 years of service on June 1, 2013.
Payroll Growth: 1.5%
Disability Rates: See Table below (1205). 75% of Disability and Pre-Retirement Death retirements are assumed to be service-related.
Termination Rates: See Table below (modified T-5).
Salary Increases: 6.0% per year until the assumed retirement age.For Members Eligible for Retirement on June 1, 2013: Projected salary at retirement is increased 25% to account for non-regular compensation.For Members not eligible for Normal Retirement on June 1, 2013 with at least 10 years of service as of that date:The projected frozen benefit as of June 1, 2013 includes a 25% load for the final year included in the averaging period.For Members with less than 10 years of service (and not eligible for Normal Retirement) as of June 1, 2013: No final salary load is assumed.
Asset Smoothing Valuation Method: The Actuarial Value of Assets is brought forward using the historical four-year geometric average of Market Value Returns (net-of-fees). Over time, this may result in a deminis bias that is above or below the Market Value of Assets.
Funding Method: Entry Age Normal Actuarial Cost Method. The following loads are applied for determination of the Sponsor funding requirement:Interest – A half year, based on the current 8.0% assumption.Salary – A full year, based on the current 6.0% assumption.
Amortization Method: Level percentage of pay, closed.
Remaining Amortization Period: 28 Years (as of 10/01/2017).

Termination and Disability Rate Tables:

Age % Terminating During the Year % Becoming Disabled During the Year
20 9.4% 0.14%
30 8.7% 0.19%
40 6.7% 0.32%
50 4.1% 1.10%
52 3.4% 1.31%


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 49
 

GASB 67 SCHEDULE OF INVESTMENT RETURNS
Last 10 Fiscal Years

Fiscal Year Ended Annual Money-Weighted Rate of Return Net of Investment Expense
09/30/2019 3.06%
09/30/2018 9.55%
09/30/2017 14.17%
09/30/2016 11.65%
09/30/2015 -2.27%
09/30/2014 11.20%
09/30/2013 14.41%


City of Titusville Police Officers' and Firefighters' Pension Plan                                FOSTER & FOSTER | 50                    
 

GASB 68 NOTES TO THE FINANCIAL STATEMENTS
(For the Year Ended September 30, 2019)

General Information about the Pension Plan

Plan Description

The Plan is a single-employer defined benefit pension plan administered by the Plan's Board of Trustees comprised of:
  1. Four of whom are the Police Chief, Fire Chief, a Police Major Assistant Chief or other Police Officer designated by the Police Chief and the City Manager, and a Chief Officer or other Firefighter designated by the Fire Chief and the City Manager;
  2. Two of whom are full-time Firefighters and two of whom are full-time Police Officers who are elected by their respective departments by a majority of the members of the plan in those departments; and
  3. a Ninth Trustee who is chosen by a majority of the first eight Trustees.

Plan Membership as of October 1, 2018

Inactive Plan Members or Beneficiaries Currently Receiving Benefits = 123
Inactive Plan Members Entitled to But Not Yet Receiving Benefits = 51
Active Plan Members = 136
Total = 310

Benefits Provided

The Plan provides retirement, termination, disability and death benefits.​
A summary of the benefit provisions can be found in the October 1, 2018 Actuarial Valuation Report for the City of Aubundale Municipal Firefighters' Pension Trust Fund prepared by Foster & Foster Actuaries and Consultants.
Incorporated are the benefit changes for measurement date 09/30/2019 as noted under the Notes to Schedule of Changes in Net Pension Liability and Related Ratios.

Contributions

Members: 6.50% of Salary.
State: Tax on premiums for fire and casualty insurance issued to residents of the City as provided in Chapters 175 and 185, Florida Statutes.
City: Remaining amount necessary to pay the Normal Cost and fund the accrued, past service liability over 30 years.

Net Pension Liability

The measurement date is September 30, 2019.
The measurement period for the pension expense was October 1, 2018 to September 30, 2019.
The reporting period is October 1, 2018 through September 30, 2019.
The Sponsor's Net Pension Liability was measured as of September 30, 2019.
The Total Pension Liability used to calculate the Net Pension Liability was determined as of that date.​

Actuarial Assumptions:

The Total Pension Liability was determined by an actuarial valuation as of October 1, 2018 updated to September 30, 2019 using the following actuarial assumptions:

Inflation = 2.50%
Salary Increases = Service Based
Discount Rate = 7.75%
Investment Rate of Return = 7.75%



City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 51
 

Mortality Rate:

Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB.
Male: RP2000 Generational, 10% Combined Healthy White Collar / 90% Combined Healthy Blue Collar, Scale BB.
Mortality Rate Healthy Inactive Lives:
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB.
Male: RP2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB.
Mortality Rate Disabled Lives:
Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale.
Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale.

The above assumption rates were mandated by Chapter 2015-157, Laws of Florida. This law mandates the use of the assumptions used in either of the two most recent valuations of the Florida Retirement System (FRS). The above rates are those outlined in Milliman's July 1, 2018 FRS valuation report for special risk employees. We feel this assumption sufficiently accommodates future mortality improvements.

The most recent actuarial experience study used to review the other significant assumptions was dated August 17, 2018.

The Long-Term Expected Rate of Return on Pension Plan investments can be determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of Pension Plan investment expenses and inflation) are developed for each major asset class.

For 2019 the inflation rate assumption of the investment advisor was 2.50%.

These ranges are combined to produce the Long-Term Expected Rate of Return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

Best estimates of geometric real rates of return for each major asset class included in the Pension Plan's target asset allocation as of September 30, 2019 are summarized in the following table:

 
Asset Class Target Allocation Long Term Expected Real Estate Rate of Return
All Cap Value Equity 27.5% 7.50%
Broad Growth Equity 27.5% 7.50%
Foreign Equity Securities 10.0% 8.50%
Broad Market Fixed Income 20.0% 2.50%
Global Fixed Income 5.0% 3.50%
Real Estate 10.0% 4.50%
Total 100.0% NO DATA

Discount Rate:
The Discount Rate used to measure the Total Pension Liability was 7.75 percent.
The projection of cash flows used to determine the Discount Rate assumed that Plan Member contributions will be made at the current contribution rate and that Sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the Member rate. Based on those assumptions, the Pension Plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the Long-Term Expected Rate of Return on Pension Plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability.


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 52
 

GASB 68 CHANGES IN NET PENSION LIABILITY

Increase (Decrease in parenthesis)

Changes in Net Pension Liability Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (a)-(b)
Balances at September 30, 2018 $65,600,203 $62,318,896 $3,281,307
Changes for a Year: Service Cost 935,609 NO DATA 935,609
Changes for a Year: Interest 4,985,073 NO DATA 4,985,073
Changes for a Year: Differences between Expected and Actual Experience 265,852 NO DATA 265,852
Changes for a Year: Changes of Assumptions NO DATA NO DATA NO DATA
Changes for a Year: Changes of benefit terms (16,714) NO DATA (16,714)
Changes for a Year: Contributions - Employer NO DATA 1,688,193 (1,688,193)
Changes for a Year: Contributions - State NO DATA 753,963 (753,963)
Changes for a Year: Contributions - Employee NO DATA 478,472 (478,472)
Changes for a Year: Net Investment Income NO DATA 1,878,838 (1,878,838)
Changes for a Year: Benefit Payments, including Refunds of Employee Contributions (4,391,162) (4,391,162) NO DATA
Administrative Expense NO DATA (112,786) 112,786
Net Changes 1,778,658 295,518 1,483,140
Balances at September 30, 2019 $67,378,861 $62,614,414 $4,764,447
 

Sponsor's Net Pension Liability.

Liability 1% Decrease
6.75%
Current Discount Rate
7.75%
1% Increase
8.75%
Sponsor's Net Pension Liability $ 12,579,262 $ 4,764,447 $ (1,751,316)

Pension Plan Fiduciary Net Position.

Detailed information about the pension Plan's Fiduciary Net Position is available in a separately issued Plan financial report.​

City of Titusville Police Officers' and Firefighters' Pension Plan                                    FOSTER & FOSTER | 53
 

GASB 68 PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS

For the year ended September 30, 2019, the Sponsor will recognize a Pension Expense of $1,992,971.
On September 30, 2019, the Sponsor reported Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions from the following sources:

 
Item Deferred Outflows of Resources Deferred Inflows of Resources
Differences between Expected and Actual Experience 244,016 84,003
Changes of assumptions 707,034 NO DATA
Net difference between Projected and Actual Earnings on Pension Plan investments 150,040 NO DATA
Total $1,101,090 $84,003

Amounts reported as Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions will be recognized in Pension Expense as follows:
Year ended September 30: Pension Expense
2020 $(296,705)
2021 $19,217
2022 $663,500
2023 $631,075
2023 NO DATA
Thereafter NO DATA


City of Titusville Police Officers' and Firefighters' Pension Plan                                     FOSTER & FOSTER | 54
 

GASB 68 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - Last 10 Fiscal Years

Total Pension Liability 09/30/2019 09/30/2018 09/30/2017
Service Cost 935,609 996,049 978,374
Interest 4,985,073 4,948,098 4,845,726
Changes in Excess State Money NO DATA NO DATA NO DATA
Changes of benefit terms (16,714) NO DATA NO DATA
Differences between Expected and Actual Experience 265,852 (140,006) 125,344
Changes of assumptions NO DATA 1,178,390 NO DATA
Contributions - Buy Back NO DATA NO DATA NO DATA
Benefit Payments, including Refunds of Employee Contributions (4,391,162) (4,474,998) (4,899,952)
Net Change in Total Pension Liability 1,778,658 2,507,533 1,049,492
Total Pension Liability - Beginning 65,600,203 63,092,670 62,043,178
Total Pension Liability - Ending (a) $ 67,378,861 $ 65,600,203 $ 63,092,670
 
Plan Fiduciary Net Position 09/30/2019 09/30/2018 09/30/2017
Contributions - Employer 1,688,193 1,681,919 1,662,032
Contributions - State 753,963 724,200 981,740
Contributions - Employee 478,472 463,439 475,109
Contributions - Buy Back NO DATA NO DATA NO DATA
Net Investment Income 1,878,838 5,490,249 7,397,792
Benefit Payments, including Refunds of Employee Contributions (4,391,162) (4,474,998) (4,899,952)
Administrative Expense (112,786) (87,020) (81,782)
Net Change in Plan Fiduciary Net Position (295,518) 3,797,789 5,234,939
Plan Fiduciary Net Position - Beginning 62,318,896 58,521,107 53,286,168
Plan Fiduciary Net Position - Ending (b) $ 62,614,414 $ 62,318,896 $ 58,521,107
 
Liability 09/30/2019 09/30/2018 09/30/2017
Net Pension Liability - Ending (a) - (b) $ 4,764,447 $ 3,281,307 $ 4,571,563
 
Net Position 09/30/2019 09/30/2018 09/30/2017
Plan Fiduciary Net Position as a percentage
of the Total Pension Liability
92.93% 95.00% 92.75%
 
Detail 09/30/2019 09/30/2018 09/30/2017
Covered Payroll Note 1 $ 7,319,880 $ 7,123,928 $ 6,666,701
Net Pension Liability as a percentage of Covered Payroll 65.09% 46.06% 68.57%

Notes to Schedule:

Note 1 The Covered Payroll numbers shown are in compliance with GASB 82.

Changes in benefit terms:

For measurement date 09/30/2019, amounts reported as changes of benefit terms resulted from the provisions of Chapter 112.1816, Florida Statutes. The Statutes state that, effective July 1, 2019, a death or disability (under the Plan's definition of total and permanent disability) for a Firefighter due to the diagnosis of cancer or circumstances that arise out of the treatment of cancer will be treated as duty-related.

Changes of assumptions:

For measurement date 09/30/2018, amounts reported as changes of assumptions resulted from the August 20, 2018 experience study.

City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 55
 

GASB 68 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - Last 10 Fiscal Years

Total Pension Liability 09/30/2016 09/30/2015
Service Cost 937,776 879,893
Interest 4,597,357 4,548,755
Changes in Excess State Money (214,112) NO DATA
Changes of benefit terms (4,647) NO DATA
Differences between Expected and Actual Experience 156,069 (1,094,130)
Changes of assumptions 1,822,308 NO DATA
Contributions - Buy Back NO DATA 45,901
Benefit Payments, including Refunds of Employee Contributions (3,999,048) (3,656,202)
Net Change in Total Pension Liability 3,295,703 727,217
Total Pension Liability - Beginning 58,747,475 58,020,258
Total Pension Liability - Ending (a) $ 62,043,178 $ 58,747,475
 
Plan Fiduciary Net Position 09/30/2016 09/30/2015
Contributions - Employer 1,925,864 2,320,434
Contributions - State 731,350 670,201
Contributions - Employee 513,866 495,762
Contributions - Buy Back NO DATA 45,901
Net Investment Income 5,588,136 (1,138,997)
Benefit Payments, including Refunds of Employee Contributions (3,999,048) (3,656,202)
Administrative Expense (72,096) (75,162)
Net Change in Plan Fiduciary Net Position 4,688,072 (1,335,063)
Plan Fiduciary Net Position - Beginning 48,598,096 49,933,159
Plan Fiduciary Net Position - Ending (b) $ 53,286,168 $ 48,598,096
 
Liability 09/30/2016 09/30/2015
Net Pension Liability - Ending (a) - (b) $ 8,757,01 $ 10,149,379
 
Net Position 09/30/2016 09/30/2015
Plan Fiduciary Net Position as a percentage
of the Total Pension Liability
85.89% 82.72%
 
Detail 09/30/2016 09/30/2015
Covered Payroll Note 1 $ 6,423,341 $ 6,514,768
Net Pension Liability as a percentage of Covered Payroll 136.33% 155.79%

Notes to Schedule:

Note 1 The Covered Payroll numbers shown are in compliance with GASB 82, except for the 09/30/2015 measurement period which includes DROP payroll.

Changes of benefit terms:

For measurement date 09/30/2016, amounts reported as change of benefit terms resulted from an Actuarial Impact Statement dated February 10, 2017.

Changes of assumptions:

For measurement date 09/30/2016, as a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for special risk employees.
The inflation assumption rate was lowered from 3.00% to 2.50%, matching the long-term inflation assumption utilized by the Plan's investment consultant.​


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 56
 

GASB 68 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - Last 10 Fiscal Years

Total Pension Liability 09/30/2014 09/30/2013
Service Cost 844,189 781,656
Interest 4,489,984 4,427,655
Changes in Excess State Money NO DATA NO DATA
Changes of benefit terms NO DATA NO DATA
Differences between Expected and Actual Experience NO DATA NO DATA
Changes of assumptions NO DATA NO DATA
Contributions - Buy Back 33,664 NO DATA
Benefit Payments, including Refunds of Employee Contributions (5,682,176) (3,505,528)
Net Change in Total Pension Liability (314,429) 1,903,783
Total Pension Liability - Beginning 58,334,687 56,430,904
Total Pension Liability - Ending (a) $ 58,020,258 $ 58,334,687
 
Plan Fiduciary Net Position 09/30/2014 09/30/2013
Contributions - Employer 2,445,395 2,200,133
Contributions - State 724,287 671,213
Contributions - Employee 451,474 447,451
Contributions - Buy Back 33,664 NO DATA
Net Investment Income 5,183,029 5,960,691
Benefit Payments, including Refunds of Employee Contributions (5,682,176) (3,305,528)
Administrative Expense (64,150) (69,845)
Net Change in Plan Fiduciary Net Position 3,091,523 5,904,115
Plan Fiduciary Net Position - Beginning 46,841,636 40,937,521
Plan Fiduciary Net Position - Ending (b) $ 49,933,159 $ 46,841,636
 
Liability 09/30/2014 09/30/2013
Net Pension Liability - Ending (a) - (b) $ 8,087,099 $ 11,493,051
 
Net Position 09/30/2014 09/30/2013
Plan Fiduciary Net Position as a percentage
of the Total Pension Liability
86.06% 80.30%
 
Detail 09/30/2014 09/30/2013
Covered Payroll Note 1 $ 6,629,574 $ 5,990,707
Net Pension Liability as a percentage of Covered Payroll 121.99% 191.85%

Notes to Schedule:

Note 1 The Covered Payroll numbers shown are in compliance with GASB 82.

City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 57
 

EXPENSE DEVELOPMENT AND AMORTIZATION SCHEDULES

The following information is not required to be disclosed but is provided for informational purposes.

City of Titusville Police Officers' and Firefighters' Pension Plan                                    FOSTER & FOSTER | 58
 

GASB 68 SCHEDULE OF CONTRIBUTIONS
Last 10 Fiscal Years

Fiscal Year Ended Actuarially Determined Contribution Contributions in relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered
Payroll Note 1
Contributions as a percentage of Covered Payroll
09/30/2019 $ 2,369,493 $ 2,442,156 $ (72,633) $ 7,319,880 33.36%
09/30/2018 $ 2,413,269 $ 2,406,119 $ 7,150 $ 7,123,928 33.78%
09/30/2017 $ 2,378,374 $ 2,343,772 $ 34,602 $ 6,666,701 35.16%
09/30/2016 $ 2,544,678 $ 2,657,214 $ (112,536) $ 6,423,341 41.37%
09/30/2015 $ 2,990,635 $ 2,990,635 NO DATA $ 6,514,768 45.91%
09/30/2014 $ 3,169,682 $ 3,169,682 NO DATA $ 6,629,574 47.81%
09/30/2013 $ 2,871,346 $ 2,871,346 NO DATA $ 5,990,707 47.93%

Note 1 The Covered Payroll numbers shown are in compliance with GASB 82, except for the 09/30/2015 measurement period which includes DROP payroll.

Notes to Schedule

Valuation Date: 10/01/2017
Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported.​

Methods and assumptions used to determine contribution rates:
Mortality Rate: Healthy Active Lives:
Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB.
Male: RP2000 Generational, 10% Combined Healthy White Collar / 90% Combined Healthy Blue Collar, Scale BB.

Healthy Inactive Lives:
Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB.
Male: RP2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB.

Disabled Lives:
Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale.
Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale.
The assumed rates of mortality were mandated by Chapter 2015-157, Laws of Florida. This law mandates the use of the assumptions used in either of the two most recent valuations of the Florida Retirement System (FRS). The above rates are those outlined in the July 1, 2016 FRS actuarial valuation report for special risk employees.
We feel this assumption sufficiently accommodates future mortality improvements.
Interest Rate: 8% per year compounded annually, net of investment related expenses. This assumption is supported by the Plan’s target asset allocation and expected long-term rate of return by asset class.
 

City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 59

 

Retirement Age: Those with at least 10 years of Service as of June 1, 2013: Earlier of age 55 and 8 years of service or 25 years of service, regardless of age. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year.Those with less than 10 years of service as of June 1, 2013:Earlier of age 55 and 10 years of service or age 52 with 25 years of service. Also, any Member who has reached Normal Retirement is assumed to continue employment for one additional year.
We believe this assumption is reasonable based on the plan provisions.
Early Retirement: Commencing at eligibility for Early Retirement (age 50 with 10 years of service), Members are assumed to retire with an immediate benefit at the rate of 5% per year. The assumption is 2% per year for Members who have at least 10 years of service on June 1, 2013.
Payroll Growth: 1.5%
Disability Rates: See Table below (1205). 75% of Disability and Pre-Retirement Death retirements are assumed to be service-related.
Termination Rates: See Table below (modified T-5).
Salary Increases: 6.0% per year until the assumed retirement age.For Members Eligible for Retirement on June 1, 2013: Projected salary at retirement is increased 25% to account for non-regular compensation.For Members not eligible for Normal Retirement on June 1, 2013 with at least 10 years of service as of that date:The projected frozen benefit as of June 1, 2013 includes a 25% load for the final year included in the averaging period.For Members with less than 10 years of service (and not eligible for Normal Retirement) as of June 1, 2013: No final salary load is assumed.
Asset Smoothing Valuation Method: The Actuarial Value of Assets is brought forward using the historical four-year geometric average of Market Value Returns (net-of-fees). Over time, this may result in a deminis bias that is above or below the Market Value of Assets.
Funding Method: Entry Age Normal Actuarial Cost Method. The following loads are applied for determination of the Sponsor funding requirement:Interest – A half year, based on the current 8.0% assumption.Salary – A full year, based on the current 6.0% assumption.
Amortization Method: Level percentage of pay, closed.
Remaining Amortization Period: 28 Years (as of 10/01/2017).

Termination and Disability Rate Tables:

Age % Terminating During the Year % Becoming Disabled During the Year
20 9.40% 0.14%
30 8.70% 0.19%
40 6.70% 0.32%
50 4.10% 1.10%
52 3.40% 1.31%


City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 60
 

GASB 68 COMPONENTS OF PENSION EXPENSE
FISCAL YEAR SEPTEMBER 30, 2019

Component Net Pension Liability Deferred Inflows Deferred Outflows Pension Expense
Beginning balance $ 3,281,307 $ 3,440,377 $ 2,525,139 NO DATA
 
Total Pension Liability Factors: Net Pension Liability Deferred Inflows Deferred Outflows Pension Expense
Service Cost 935,609 NO DATA NO DATA 935,609
Interest 4,985,073 NO DATA NO DATA 4,985,073
Changes in benefit terms (16,714) NO DATA NO DATA (16,714)
Differences between Expected and Actual Experience with regard to economic or demographic assumptions 265,852 NO DATA 265,852 NO DATA
Current year amortization of experience difference NO DATA (28,001) (123,525) 95,524
Change in assumptions about future economic or demographic factors or other inputs NO DATA NO DATA NO DATA NO DATA
Current year amortization of change in assumptions NO DATA NO DATA (691,255) 691,255
Benefit Payments, including Refunds of Employee Contributions (4,391,162) NO DATA NO DATA NO DATA
Net change 1,778,658 (28,001) (548,928) 6,690,747
 
Plan Fiduciary Net Position: Net Pension Liability Deferred Inflows Deferred Outflows Pension Expense
Contributions - Employer 1,688,193 NO DATA NO DATA NO DATA
Contributions - State 753,963 NO DATA NO DATA NO DATA
Contributions - Employee 478,472 NO DATA NO DATA (478,472)
Projected Net Investment Income 4,768,361 NO DATA NO DATA (4,768,361)
Difference between projected and actual earnings on Pension Plan investments (2,889,523) NO DATA 2,889,523 NO DATA
Current year amortization NO DATA (1,166,793) (1,603,064) 436,271
Benefits Payments, inlcuding Refunds of Employee Contributions (4,391,162) NO DATA NO DATA NO DATA
Administrative Expenses (112,786) NO DATA NO DATA 112,786
Net change 295,518 (1,166,793) 1,286,459 (4,697,776)
 
Item Net Pension Liability Deferred Inflows Deferred Outflows Pension Expense
Ending Balance $ 4,764,447 $ 2,245,583 $ 3,262,670 $ 1,992,971


City of Titusville Police Officers' and Firefighters' Pension Plan                                     FOSTER & FOSTER | 61
 

GASB 68 AMORTIZATION SCHEDULE - INVESTMENTS

Increase (Decrease) in Pension Expense Arising from the Recognition of the of Differences Between Projected and Actual Earnings on Pension​

Plan Investments
Plan Year Ending Differences Between Projected and Actual Earnings Recognition Period (Years) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
2019 $2,889,523 5 $ 577,903 $ 577,903 $ 577,903 $ 577,903 $ 577,903 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
2018 $ (876,259) 5 $ (175,252) $ (175,252) $ (175,252) $ (175,252) NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
2017 $ (3,221,413) 5 $ (644,283) $ (644,283) $ (644,283)  NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
2016 $ (1,736,291) 5 $ (347,258) $ (347,258) NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
2015 $ 5,125,807 5 $ 1,025,161 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
 
Details 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Net Increase (Decrease) in Pension Expense $ 436,271 $ (588,888) $ (241,630) $ 402,653 $ 577,905 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA


City of Titusville Police Officers' and Firefighters' Pension Plan                                     FOSTER & FOSTER | 62
 

GASB 68 AMORTIZATION SCHEDULE - CHANGES OF ASSUMPTIONS

Increase (Decrease) in Pension Expense Arising from the Recognition of the Effects of Changes of Assumptions​
Plan Year Ending Changes of Assumptions Recognition Period (Years) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
2018 $ 1,178,390 5 $ 235,678 $ 235,678 $ 235,678 $ 235,678 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
2016 1,822,308 4 455,577 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
 
Details 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2028
Net Increase (Decrease) in Pension Expense $ 691,255 $ 235,678 $ 235,678 $ 235,678 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA



City of Titusville Police Officers' and Firefighters' Pension Plan                                     FOSTER & FOSTER | 63
 

GASB 68 AMORTIZATION SCHEDULE - EXPERIENCE

Increase (Decrease) in Pension Expense Arising from the Recognition of the Effects of Differences between Expected and Actual Experience​
Plan Year Ending Changes of Assumptions Recognition Period (Years) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
2019 $ 265,852 5 $ 53,172 $ 53,170 $ 53,170 $ 53,170 $ 53,170 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
2018 (140,006) 5 $ (28,001) $ (28,001) $ (28,001) $ (28,001) NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
2017 $ 125,344 4 $ 31,336 $ 31,336 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
2017 $ 156,069 4 $ 39,017 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA
 
Details 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Net Increase (Decrease) in Pension Expense $ 95,524 $ 56,505 $ 25,169 $ 25,169 $ 53,170 NO DATA NO DATA NO DATA NO DATA NO DATA NO DATA




City of Titusville Police Officers' and Firefighters' Pension Plan                                   FOSTER & FOSTER | 64