City of Maitland
FL

Discussion Item
Approved
Mar 14, 2018

Foster & Foster, Patrick Donlan, Actuary

Information

Department:Police Officers & Firefighters Pension Trust Fund BoardSponsors:
Category:Discussion

Attachments

  1. Printout
  2. Valuation Report - Maitland P&F - 2017

Financial Impact

Ord and Res Only

<Erase and Leave Blank>

Meeting History

Mar 14, 2018  Police Officers & Firefighters Pension Trust Fund Board Regular
draft Draft

i. Presentation of the October 1, 2017, Valuation Report.

1. Patrick Donlan introduced himself and informed the board that Christine O’Neal could not attend due to the recent birth of her daughter.

2. Patrick commented that experience had been less favorable than expected primarily due to less employee turnover than anticipated and average increases in pensionable compensation that were above the assumed rate. The losses were partially offset by the effect of greater than expected inactive mortality and an 8.17% investment return that exceeded the 7.75% assumption. Patrick also noted that funding requirements reflected a mandated change to the assumed rates of mortality and reduction of the investment return assumption to 7.50%.

3. The City’s funding requirement increased from $1,044,311 (20.0%) to $1,281,950 (21.9%) for fiscal 2019.

4. Patrick reviewed gains/losses and the five year smoothing. Since the plan showed no gains for the next few years and had a lower investment return rate, the plan should experience a smooth ride for a while.

5. Patrick Donlan reviewed the UAAL stating it had increased, but due to gains, losses, and assumption changes, the increase wasn’t as severe and the numbers had remained fairly neutral.

6. Jerry Gray asked if an assumption change to the actives number was needed since the City hadn’t experienced turnover as expected. Patrick stated this could be looked at going forward and adjusted if the experience was a permanent thing. Patrick commented an experience study could be done to true up the numbers and since the last study was done in May 2013, it was time for a new look at the assumptions. The board decided to discuss having an experience study done prior to the October 1, 2019, valuation report. Phillip Senderowitz asked Toni Lozen to include this topic for discussion/approval at the 2019 first quarterly meeting.

RESULT:APPROVED [UNANIMOUS]
MOVER:Phillip Senderowitz, Trustee
SECONDER:Jerry Gray, Trustee
AYES:Charles Van Camp, Kimberly Neisler, Jerry Gray, Jeff Harris, Ray Link, Phillip Senderowitz, David Manuel

Discussion