2021 City of Titusville General Employees' Pension Plan - Actuarial Valuations

CITY OF TITUSVILLE GENERAL EMPLOYEES' PENSION PLAN

ACTUARIAL VALUATION

AS OF OCTOBER 1, 2021

CONTRIBUTIONS APPLICABLE TO THE PLAN/FISCAL YEAR ENDING SEPTEMBER 30, 2023

GASB 67/68 DISCLOSURE INFORMATION AS OF SEPTEMBER 30, 2021

 

Foster & Foster Actuaries and Consultants Logo


 

Foster & Foster Actuaries and Consultants Logo

 


February 14, 2022

Board of Trustees City of Titusville

General Employees’ Pension Board

 

Re:       City of Titusville General Employees' Pension Plan Dear Board:

We are pleased to present to the Board this report of the annual actuarial valuation of the City of Titusville General Employees' 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 Chapter 112, 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.

 

The funding percentages and unfunded accrued liability as measured based on the actuarial value of assets will differ from similar measures based on the market value of assets. These measures, as provided, are appropriate for determining the adequacy of future contributions, but may not be appropriate for the purpose of settling a portion or all of its liabilities. 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.

 


 

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


 

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.

 

Additionally, we used third-party software to model (calculate) the underlying liabilities and costs. These results are reviewed in the aggregate and for individual sample lives. The output from the software is either used directly or input into internally developed models that apply the funding and accounting rules to generate the results. All internally developed models are reviewed as part of the valuation process. As a result of this review, we believe that the models have produced reasonable results. We do not believe there are any material inconsistencies among assumptions or unreasonable output produced due to the aggregation of assumptions.

 

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, 2020. The total pension liability was rolled-forward from the valuation date to the plan’s fiscal year ending September 30, 2021 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 General Employees' 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 #20-7778

 

 

 

 

By:                           /S/                                     Tyler A. Koftan, EA, MAAA

Enrolled Actuary #20-8685

 

 

DHL/lke Enclosures


 


 TABLE OF CONTENTS

  1. Introduction

    1. Summary of Report – Pg. 6

    2. Changes Since Prior Valuation – Pg. 7

    3. Comparative Summary of Principal Valuation Results – Pg. 8

  2. Valuation Information

    1. Reconciliation of Unfunded Actuarial Accrued Liabilities – Pg. 14

    2. Detailed Actuarial (Gain)/Loss) Analysis – Pg. 15

    3. History of Funding Progress – Pg. 16

    4. Actuarial Assumptions and Methods – Pg. 17

    5. Glossary – Pg. 21

    6. Discussion of Risk – Pg. 25

  3. Trust Fund – Pg. 28

  4. Member Statistics

    1. Statistical Data – Pg. 35

    2. Age and Service Distribution – Pg. 36

    3. Valuation Participant Reconciliation – Pg. 37

  5. Summary of Current Plan – Pg. 38

  6. Governmental Accounting Standards Board Statements No. 67 and No. 86 Disclosure Information – Pg. 42

City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 5


SUMMARY OF REPORT 

The regular annual actuarial valuation of the City of Titusville General Employees' Pension Plan, performed as of October 1, 2021, 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, 2023.

 

The contribution requirements, compared with those set forth in the October 1, 2020 actuarial valuation report, are as follows:

 

 

Valuation Date

10/1/2021

10/1/2020

Applicable to Fiscal Year Ending

9/30/2023

9/30/2022

Minimum Required Contribution

$1,859,820

$1,760,598

Member Contributions (Est.)

386,118

369,091

City Required Contribution

$1,473,702

$1,391,507

 

 

 

As you can see, the Minimum Required Contribution shows an increase when compared to the results determined in the October 1, 2020 actuarial valuation report. The increase is attributable to a Board- approved change of assumptions. The increase was offset in part by decreases caused by favorable experience and faster-than-expected amortization of the Unfunded Actuarial Accrued Liability (UAAL) due to the City’s contribution policy.

 

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 9.41% (Actuarial Asset Basis) which exceeded the 7.50% assumption. This gain was offset in part by a loss associated with inactive mortality experience.


 

 City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 6 


CHANGES SINCE PRIOR VALUATION 

Plan Changes

There have been no changes in benefits since the prior valuation.

 

Actuarial Assumption/Method Changes

Since the prior valuation, the assumed rate of investment return was reduced from 7.50% to 7.25%, net of investment-related expenses.


There were no method changes since the prior valuation.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 7 


COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS

 

 A. Particpant Data

ItemNew Assumptions
10/1/2021
Old Assumptions
10/1/2021
10/1/2020
Actives302302300
Service Retirees329329328
DROP Retirees131310
Beneficiaries373736
Disability Retirees112
Terminated Vested211211172
Total893893848
Total Payroll$14,370,340$14,370,340$13,849,082
Payroll Under Assumed Retirement Age14,162,32114,162,32113,563,920


Annual Rate of Payments to:New Assumptions
10/1/2021
Old Assumptions
10/1/2021
10/1/2020
Service Retirees4,324,6424,324,6424,306,135
DROP Retirees340,234340,234256,689
Beneficiaries263,358263,358248,970
Disability Retirees10,52410,52415,096
Terminated Vested413,012413,012385,929


 B. Assets

ItemNew Assumptions
10/1/2021
Old Assumptions
10/1/2021
10/1/2020
Actuarial Value (AVA) (Note 1)67,950,41367,950,41364,679,327
Market Value (MVA) (Note 1)73,155,07673,155,07661,693,517


 C. Liabilities

Present Value of BenefitsNew Assumptions
10/1/2021
Old Assumptions
10/1/2021
10/1/2020
Actives:NO DATANO DATANO DATA
Retirement Benefits
23,620,92922,685,31622,036,640
Disability Benefits
513,760524,040501,111
Death Benefits
116,510111,199110,491
Vested Benefits
650,631604,475624,050
Refund of Contributions
289,167287,490278,293
Service Retirees43,269,79142,420,75542,726,767
DROP Retirees (Note 1)4,246,9754,165,5383,032,863
Beneficiaries2,315,0082,272,8442,212,112
Disability Retirees80,63679,438110,806
Terminated Vested3,129,1173,031,4242,797,283


TotalNew Assumptions
10/1/2021
Old Assumptions
10/1/2021
10/1/2020
Total Amount:78,262,52476,182,51974,430,362


Note 1: The asset values and liabilities include accumulated DROP Plan Balances as of 9/30/2021 and 9/30/2020.

Note 2: Contributions developed as of 10/1/2021 displayed above have been adjusted to account for assumed salary increase and interest components.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 8


COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS

 

C. Liabilities (Continued)

ItemNew Assumptions
10/1/2021
Old Assumptions
10/1/2021
10/1/2020
Present Value of Future Salaries91,438,20090,333,95388,290,802
Present Value of Future Member Contributions2,285,9552,258,3492,201,270
Normal Cost (Retirement)
982,109933,511901301
Normal Cost (Disability)
30,18828,29925,662
Normal Cost (Death)
6,4066,0675,818
Normal Cost (Vesting)
46,65545,03046,744
Normal Cost (Refunds)
62,18762,04258,294
Total Normal Cost1,129,5451,075,6491,037,819
Present Value of Future Normal Costs6,644,1886,229,1246,091,111
Accrued Liability (Retirement)
17,729,12317,167,41416,644,000
Accrued Liability (Disability)
354,551345,091335,049
Accrued Liability (Death)
78,89476,12776,208
Accrued Liability (Refunds)
355,048335,518345,953
Accrued Liability (Inactives) (Note 1)
59,19359,24658,210
Total Actuarial Accrued Liability (EAN AL)53,041,52751,939,99950,879,831
Unfunded Actuarial Accrued Liability (UAAL)3,667,9232,002,9823,659,924
Funded Ratio (AVA / EAN AL)94.9%97.1%94.6%


Note 1: The asset values and liabilities include accumulated DROP Plan Balances as of 9/30/2021 and 9/30/2020.

Note 2: Contributions developed as of 10/1/2021 displayed above have been adjusted to account for assumed salary increase and interest components.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 9


COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS

D. Actuarial Present Value of Accrued Benefits

ItemNew Assumptions
10/1/2021
Old Assumptions
10/1/2021
10/1/2020
Vested Accrued BenefitsNO DATANO DATANO DATA
Inactives (Note 1)
53,041,52751,969,99950,879,831
Actives
8,681,8808,367,0558,640,617
Member Contributions
2,001,5012,001,5011,917,349
Total
63,724,90462,338,55561,437,797
Non-vested Accrued Benefits3,024,5212,912,7942,387,899
Total Present Value Accrued Benefits (PVAB)66,749,42965,251,34963,825,696
Funded Ration (MVA / PVAB)109.6%112.1%96.7%
Increase (Decrease) in Present Value of Accrued Benefits Attributable to:NO DATANO DATANO DATA
Plan Amendments
00NO DATA
Assumption Changes
1,498,0800NO DATA
Plan Experience
01,427,311NO DATA
Benefits Paid
0(4,615,504)NO DATA
Interest
04,613,846NO DATA
Other
00NO DATA
Total
1,498,0801,425,653NO DATA


Note 1: The asset values and liabilities include accumulated DROP Plan Balances as of 9/30/2021 and 9/30/2020.

Note 2: Contributions developed as of 10/1/2021 displayed above have been adjusted to account for assumed salary increase and interest components.

City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 10


COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS

E. Pension Cost

ItemNew Assumption
10/1/2021
Old Assumptions
10/1/2021
10/1/2020
Valuation Date Applicable to Fiscal Year Ending:9/30/20239/30/20239/30/2022
Normal Cost (Note 2)$1,231,825$1,174,463$1,131,866
Administrative Expenses (Note 2)110,923111,057121,160
Payment Required to Amortize Unfunded Actuarial Accrued Liability over 15 yeas (as of 10/1/2021) (Note 2)517,072331,154507,572
Maximum Required Contribution1,859,8201,616,6741,760,598
Expected Member Contributions (Note 2)386,118386,584369,091
Expected City Contribution1,473,7021,260,0901,391,507


 F. Past Contributions

Plan Years Ending9/30/2021
City Requirement1,678,737
Actual Contributions Made - City:1,678,995
Actual Contributions Made - Total1,678,995


 G. Net Actuarial (Gain)/Loss

Net Actuarial (Gain)/Loss(1,056,589)


Note 1: The asset values and liabilities include accumulated DROP Plan Balances as of 9/30/2021 and 9/30/2020.

Note 2: Contributions developed as of 10/1/2021 displayed above have been adjusted to account for assumed salary increase and interest components.

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COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS

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

YearProjected Unfunded Actuarial Accrued Liability
20213,667,923
20223,425,334
20233,165,157
20262,265,878
2030731,814
2033177,247
20360


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

Year EndedActualAssumed
9/30/20215.82%4.68%
9/30/20204.13%4.50%
9/30/20194.52%4.96%
9/30/20185.96%5.00%
9/30/20175.32%5.00%


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

Year EndedMarket ValueActuarial ValueAssumed
9/30/202123.39%9.41%7.50%
9/30/20203.49%7.28%7.75%
9/30/20192.66%9.16%7.75%
9/30/20189.29%8.44%8.00%
9/30/201714.08%9.34%8.00%


I.(iii) Average Annual Payroll Growth

  1. Payroll as of 10/1/2021 = $14,162,321 (Payroll as of 10/1/2011 = $9,795,424)
  2. Total Increase = 44.58%
  3. Number of Years = 10.00
  4. Average Annual Rate = 3.76%


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 12


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.

 

 

 

              /S/                   

Douglas H. Lozen, EA, MAAA Enrolled Actuary #20-7778


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


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 13


RECONCILIATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITIES


  1. Unfunded Actuarial Accrued Liability as of October 1, 2020 = $3,659,924
  2. Sponsor Normal Cost developed as of October 1, 2020 = 699,396
  3. Expected administrative expenses for the year ended September 30, 2021 = 111,093
  4. Expected interest on (1), (2) and (3) = 331,115
  5. Sponsor contributions to the System during the year ended September 30, 2021 = 1,678,995
  6. Expected interest on (5) = 62,962
  7. Expected Unfunded Actuarial Accrued Liability as of September 30, 2021 (1)+(2)+(3)+(4)-(5)-(6) = 3,059,571
  8. Change to UAAL due to Assumption Change = 1,664,941
  9. Change to UAAL due to Actuarial (Gain)/Loss = (1,056,589)
  10. Unfunded Actuarial Accrued Liability as of October 1, 2021 = 3,667,923
Type of BaseDate EstablishedYears Remaining10/1/2021
Amount
Amortization
Amount
Consolidation10/1/2020103,059,571410,873
Actuarial Gain10/1/202115(1,056,589)(109,880)
Assumption Change10/1/2021151,664,941173,146
TOTALNO DATANO DATA3,667,923474,139

 


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 14


DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS


(1) Unfunded Actuarial Accrued Liability (UAAL) as of October 1, 2020 = $3,659,924

(2) Expected UAAL as of October 1, 2021 = 3,059,571

(3) Summary of Actuarial (Gain)/Loss, by component:

ComponentAmount
Investment Return (Actuarial Asset Basis)(1,209,172
Salary Increases163,365
Active Decrements(179,389)
Inactive Mortality260,333
Other(91,726)
Increase in UAAL due to (Gain)/Loss(1,056,589)
Assumption Changes$3,667,923


(4) Actual UAAL as of October 1, 2021 = $3,667,923


 City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 15


HISTORY OF FUNDING PROGRESS


[Bar graph depicting the changes in funded ratios based on Actuarial Value of Assets divided by the EAN Actuarial Accrued Liability, with the x-axis representing the years 2012 through 2021, and the y-axis representing the percentages 0.00% through 100.00%. 2012 = approximately 69%; 2013 = approximately 73%; 2014 = approximately 80%; 2015 = approximately 85%; 2016 = approximately 86%; 2017 = approximately 91%; 2018 = approximately 91%; 2019 = approximately 94%; 2020 = approximately 95%; 2021 = approximately 95%.]


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 16
 


ACTUARIAL ASSUMPTIONS AND METHODS

Mortality Rate

Healthy Active Lives:

Female: PubG.H-2010 for Employees.

Male: PubG.H-2010 (Below Median) for Employees, set back one year.


Healthy Retiree Lives:

Female: PubG.H-2010 for Healthy Retirees.

Male: PubG.H-2010 (Below Median) for Healthy Retirees, set back one year.


Beneficiary Lives:

Female: PubG.H-2010 (Below Median) for Healthy Retirees.

Male: PubG.H-2010 for Healthy Retirees, set back one year.


Disabled Lives:

PubG.H-2010 for Disabled Retirees, set forward three years.


All rates are projected generationally with Mortality Improvement Scale MP-2018. We feel this assumption sufficiently accommodates future mortality improvements.


The previously described mortality 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, 2021 FRS valuation report for non-special-risk employees, with appropriate adjustments made based on plan demographics.


Interest Rate

7.25% (prior year 7.50%) 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.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 17


ACTUARIAL ASSUMPTIONS AND METHODS

Salary Increases

See table later in this section. This is based on the experience study dated August 20, 2018.


 For Members eligible for Normal Retirement as of August 26, 2013:

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

 

For Members not eligible for Normal Retirement as of August 26, 2013 with at least 10 years of service as of that date:

The projected frozen benefit as of August 26, 2013 includes a 25% load for the final year included in the averaging period.


For Members with less than 10 years of service as of August 26, 2013:

No load is assumed.


Payroll Growth

0.00% for purposes of amortizing the Unfunded Actuarial Accrued Liability. This assumption cannot exceed the ten-year average payroll growth, in compliance with Part VII of Chapter 112, Florida Statutes.


Administrative Expenses

$101,713 annually, based on the average of actual expenses incurred in the prior two fiscal years.


Amortization Method

New UAAL amortization bases are amortized over 15 years.


Retirement Age

See table later in this section. This assumption is based on the experience study dated August 20, 2018.


Early Retirement

See table later in this section. This assumption is based on the experience study dated August 20, 2018.


Disability Rate

See table later in this section (1202 times 50%). This assumption is based on the experience study dated August 20, 2018.


Termination Rate

See table later in this section. This assumption is based on the experience study dated August 20, 2018.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 18


ACTUARIAL ASSUMPTIONS AND METHODS


Asset Valuation Method

Each year, the prior Actuarial Value of Assets is brought forward utilizing the historical geometric 4-year average Market Value return. It is possible that over time this technique will produce an insignificant bias above or below Market Value.

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 7.25% (prior year 7.50%) assumption.

 Salary – a full year based on the current 5.24% assumption.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 19


Assumption Tables 

Percentage Terminating During the Year

Service (Years)Rate
0 to 120.0%
2 to 412.0%
5 to 97.0%
10+4.0%


Percentage Becoming Disabled During the Year

AgeRate
200.03%
250.03%
300.03%
350.03%
400.06%
450.11%
500.21%
550.45%
600.81%


Salary Scale

Service (Years)Rate
09.00%
1 to 44.50%
5+4.00%


Percentage Retiring During the Year (at least 10 years of service as of August 26, 2013) (Note 1)

AgeRate
48 to 5710.0%
5850.0%
59 to 6120.0%
62 to 6640.0%
67+100%


Percentage Retiring During the Year (less than 10 years of service as of August 26, 2013) (Note 2)

AgeRate
52 to 6110.0%
62 to 6640.0%
67+100.0%

 


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 20


GLOSSARY

Actuarial Value of Assets is the asset value used in the valuation to determine contribution requirements. It represents the plan’s Market Value of Assets (see below), with adjustments according to the plan’s Actuarial Asset Method. These adjustments produce a “smoothed” value that is likely to be less volatile from year to year than the Market Value of Assets.

 

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.

Market Value of Assets is the fair market value of plan assets as of the valuation date. This amount may be adjusted to produce an Actuarial Value of Assets for plan funding purposes.

 

Normal (Current Year's) Cost is the current year's cost for benefits yet to be funded. Under the Entry Age Normal cost method, it is determined for each participant as the present value of future benefits, determined as of the Member’s entry age, amortized as a level percentage of compensation over the anticipated number of years of participation, determined as of the entry age.

 

Present Value of Benefits is the single sum value on the valuation date of all future benefits to be paid to current plan participants.

 

Total Annual Payroll is the projected annual rate of pay for the fiscal year beginning on the valuation date of all covered Members.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 21


GLOSSARY

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.

 

Unfunded Actuarial Accrued Liability (UAAL) is the difference between the actuarial accrued liability (described above) and the Actuarial Value of Assets. Under the Entry Age Normal Actuarial Cost Method, an actuarial gain or loss, based on actual versus expected UAAL, is determined in conjunction with each valuation of the plan.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 22


SPECIAL ACTUARIAL ACCOUNT ACTIVITY

10/1/2020 to 10/1/2021

Growth Assuming 7.50% Return

(1) 10/1/2020 Beginning Balance = 77,812,800

Contributions (Note 1)2,027,568
Investment Earnings5,908,311
Non-Investment Expenses98,206
Investment Expenses226,017
Distributions0

Note 1: Excludes Member Service Buyback


(2) 09/30/2021 Ending Balance = 85,424,456


(3) 09/30/2021 Actuarial Assets = 67,950,413


(4) Excess Earnings (3) - (2) = (17,474,043)


(5) 09/30/2021 Actuarial Gain (Loss) = 1,056,589

Share Account Allocation (per Ordinance #25-1999): Lesser of: [(4) or (5)] x 50% = (8,737,022)


Share Account Activity

10/1/2020 Account Balance = (138,012,258)

Interest at 7.50% = (10,350,919)

10/1/2021 Addition = (8,737,022)

10/1/2021 Benefits "Purchase" = 0

10/1/2021 Account Balance = (157,100,199)

10/1/2021 Adjusted Actuarial Assets

(6) Actuarial Assets (3), above = 67,950,413

(7) 10/1/2021 Account Balance = (157,100,199)

Adjusted Actuarial Assets, Lesser of: (6) or [(6) - (7)] = 67,950,413


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 23


SPECIAL ACTUARIAL ACCOUN

History of Benefit "Purchases" and Actuarial Gains and Losses

 


Plan Year EndedBenefit "Purchases"Notes
Net Actuarial Gain (Loss)
9/30/1990298,200 (1)(291,699)
9/30/1991769,309 (2)350,282 
9/30/1992
517,853 
9/30/1993
948,397 
9/30/1994151,939 (3)170,962 
9/30/1995676,000 (4)372,601 
9/30/19961,051,055 (5)845,165 
9/30/1997
1,623,510 
9/30/19981,181,867 (6)2,155,885 
9/30/19991,093,450 (7)1,997,227 
9/30/2000131,451 (8)83,693 
9/30/2001
(361,917)
9/30/2002
(1,374,030)
9/30/2003
(755,227)
9/30/2004
(2,509,682)
9/30/2005
(1,530,576)
9/30/2006
(92,489)
9/30/2007
1,050,783 
9/30/2008
(1,725,825)
9/30/2009
(3,318,088)
9/30/2010
(2,438,237)
9/30/2011
(2,073,660)
9/30/2020
483,166 
9/30/2013
813,750 
9/30/2014
2,668,364 
9/30/2015(88,773)(9)1,605,480 
9/30/2016
315,334 
9/30/2017
924,468 
9/30/2018
(40,985)
9/30/2019
462,347 
9/30/2020
(126,888)
9/30/2021
1,056,589 
TOTAL5,264,498

1,806,553


Notes:

  1. AIS dated 01/25/93 (revised 09/14/93)
  2. AIS dated 12/08/93
  3. AIS dated 06/28/96
  4. AIS dated 01/27/97
  5. AIS dated 01/26/98
  6. AIS dated 08/26/99
  7. AIS dated 05/04/00
  8. AIS dated 02/23/01
  9. AIS dated 01/06/17

City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 24  


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.

 

  • Investment Return: When the rate of return on the Actuarial Value of Assets falls short of the assumption, this produces a loss representing assumed investment earnings that were not realized. Further, it is unlikely that the plan will experience a scenario that matches the assumed return in each year as capital markets can be volatile from year to year. Therefore, contribution amounts can vary in the future.
  • Salary Increases: When a plan participant experiences a salary increase that was greater than assumed, this produces a loss representing the cost of an increase in anticipated plan benefits for the participant as compared to the previous year. The total gain or loss associated with salary increases for the plan is the sum of salary gains and losses for all active participants.
  • Demographic Assumptions: Actuarial results take into account various potential events that could happen to a plan participant, such as retirement, termination, disability, and death. Each of these potential events is assigned a liability based on the likelihood of the event and the financial consequence of the event for the plan. Accordingly, actuarial liabilities reflect a blend of financial consequences associated with various possible outcomes (such as retirement at one of various possible ages). Once the outcome is known (e.g. the participant retires) the liability is adjusted to reflect the known outcome. This adjustment produces a gain or loss depending on whether the outcome was more or less favorable than other outcomes that could have occurred.

City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 25


DISCUSSION OF RISK

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:

 

  • The Support Ratio, determined as the ratio of active to inactive members, has decreased from 73.7% on October 1, 2011 to 64.4% on October 1, 2021, indicating that the plan has been maturing during the period. 
  • The Accrued Liability Ratio, determined as the ratio of the Inactive Accrued Liability, which is the liability associated with members who are no longer employed but are due a benefit from the plan, to the Total Accrued Liability, is 74.1%. With a plan of this maturity, losses due to lower than expected investment returns or demographic factors may result in larger increases in contribution requirements than would be needed for a less mature plan. Please note Chapter 112, Florida Statutes, requires that the plan sponsor contributes the minimum required contribution; thus, there is minimal solvency risk to the plan.
  • The Funded Ratio, determined as the ratio of the Actuarial Value of Assets to the Total Accrued Liability, has increased from 67.1% on October 1, 2011 to 94.9% on October 1, 2021.
  • The Net Cash Flow Ratio, determined as the ratio of the Net Cash Flow (contributions minus benefit payments and administrative expenses) to the Market Value of Assets, decreased from -1.7% on October 1, 2011 to -3.7% on October 1, 2021. The current Net Cash Flow Ratio of-3.7%indicates that contributions are not currently covering the plan's benefit payments and administrative expenses.

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 General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 26


PLAN MATURITY MEASURES AND OTHER RISK METRICS

 

Item10/1/201110/1/201610/1/202010/1/2021

Support Ratio

Total Actives
250285300302
Total Inactives (Note 1)
339416461469
Actives / Inactives (Note 1)
73.70%68.50%65.10%64.40%

Asset Volatility Ratio

Market Value of Assets (MVA)
34,960,24553,281,16861,693,51773,155,076
Total Annual Payroll
9,795,42411,735,04713,849,08214,370,340
MVA / Total Annual Payroll
356.90%454.00%445.50%509.10%

Accrued Liability (AL) Ratio

Inactive Accrued Liability
39,260,56844,739,37950,879,83153,041,527
Total Accrued Liability (EAN)
55,228,78561,454,32068,339,25171,618,336
Inactive AL / Total AL
71.10%72.80%74.50%74.10%

Funded Ratio

Actuarial Value of Assets (AVA)
37,078,93153,430,78164,679,32767,950,413
Total Accrued Liability (EAN)
55,228,78561,454,32068,339,25171,618,336
AVA / Total Accrued Liability (EAN)
67.10%86.90%94.60%94.90%

Net Cash Flow Ratio

Net Cash Flow (Note 2)
(592,797)(2,319,762)(2,096,940)(2,686,142)
Market Value of Assets (MVA)
34,960,24553,281,16861,693,51773,155,076
Ratio
-1.70%-4.40%-3.40%-3.70%

 

Note 1: Excludes terminated participants awaiting a refund of member contributions.

Note 2: Determined as total contributions minus benefit payments and administrative expenses.

 
City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 27


STATEMENT OF FIDUCIARY NET POSITION

SEPTEMBER 30, 2021

ASSETS

Cash and Cash Equivalents:COST VALUEMARKET VALUE
Short Term Investments1,545,340.001,545,340,300
Cash276.78276.78
Total Cash and Equivalents1,545,616,781,545,616.78
Receivables:COST VALUEMARKET VALUE
Investment Income67,969.2667,969.26
Total Receivables67,969.2667,969.26
Investments:COST VALUEMARKET VALUE
Fixed Income14,369,827.6714,624,889.47
Equities29,912,646.6641,410,916.86
Pooled/Common/Commingled Funds:
Equity
2,200,000.008,359,557.55
Pooled/Common/Commingled Funds:
Real Estate
3,945,509.027,146,611.32
Total Investments50,427,983.3571,541,985.20
TOTAL ASSETS52,041,569.3973,155,571.24

LIABILITIES

Payables:COST VALUEMARKET VALUE
Administrative Expenses495.62495.62
Total Liabilities495.62495.62
NET POSITION RESTRICTED FOR
PENSIONS
52,041,073.7773.155.075.62


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 28
 


STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FOR THE YEAR ENDED SEPTEMBER 30, 2021

Market Value Basis

Additions

Contributions:Amount
Member348,573.03
City1,678,995.23
Total Contribution2,027,568.26
Investment Income:Amount
Net Realized Gain (Loss)6,053,355.98
Unrealized Gain (Loss)7,059,445.06
Net Increase in Fair Market Value of Investments13,112,801.04
Interest & Dividends1,260,916.27
Less Investment Expense (Note 1)(226,017.32)
Net Investment Income14,147,699.99

Total Additions = 16,175,268.25


Deductions

Distributions to Members:Amount
Benefit Payments4,576,061.39
Lump Sum DROP Distributions0.00
Lump Sum PLOP Distributions14,006.84
Refunds of Member Contributions25,436.04
Total Distributions4,615,504.27
Administrative Expense98,205.65

Total Deductions = 4,713,709.92


Net Increase in Net Position = 11,461,558.33


NET POSITION RESTRICTED FOR PENSIONSAmount
Beginning of the Year61,693,517.29
End of the Year73,155,075.62


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


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 29


ACTUARIAL ASSET VALUATION

SEPTEMBER 30, 2021

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 EndRate of Return (Note 1)
09/30/20189.29%
09/30/20192.66%
09/30/20203.49%
09/30/202123.39%

Annualized Rate of Return for prior four (4) years: = 9.41%


  • (A) 10/1/2020 Actuarial Assets = $64,349,326.72
  • (I) Net Investment Income:
    • 1. Interest Dividends = 1,260,916.27
    • 2. Realized Gain (Loss) = 6,053,355.98
    • 3. Unrealized Gain (Loss) = 7,059,445.06
    • 4. Change on Actuarial Value = (8,190,472.18)
    • 5. Investment Related Expenses = (226,017.32)
    • Total = 5,957,227.81
  • (B) 10/1/2021 Actuarial Assets = $67,950,412.87

Actuarial Rate of Return = 2I/(A+B-I): 9.41%

10/01/2021 Limited Actuarial Assets: $67,950,412.87

10/01/2021 Market Value of Assets: $73,155,075.62

Actuarial Gain (Loss) due to Investment Return (Actuarial Asset Basis) = $1,209,171.64

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


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 30


 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FOR THE YEAR ENDED SEPTEMBER 30, 2021

Actuarial Asset Basis

REVENUES

Contributions:Amount
Member348,573.03
City1,678,995.23
Total Contribution2,027,568.26
Earnings from Investments:Amount
Interest & Dividends1,260,916.27
Net Realized Gain (Loss)6,053,355.98
Unrealized Gain (Loss)7,059,445.06
Change in Actuarial Value(8,190,472.18)
Total Earnings and Investment Gains6,183,245.13


EXPENDITURES

Distributions to Members:Amount
Benefit Payments4,576,061.39
Lump Sum DROP Distributions0.00
Lump Sum PLOP Distributions14,006.84
Refunds of Member Contributions25,436.04
Total Distributions4,615,504.27
Expenses:Amount
Investment related (Note 1)226,017.32
Administrative98,205.65
Total Expenses324,222.97

Change in Net Assets for the Year = 3,271,086.15

Net Assets Beginning of the Year = 64,679,326.72

Net Assets End of the Year (Note 2) = 67,950,412.87


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 General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 31


DEFERRED RETIREMENT OPTION PLAN ACTIVITY

October 1, 2020 to September 30, 2021

DescriptionAmount

Beginning of the Year Balance

124,997.08

Plus Additions

277,578.30

Investment Return Earned

18,910.74

Less Distributions

0.00

End of the Year Balance

421,486.12

 


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 32


CITY CONTRIBUTIONS IN EXCESS OF MINIMUM REQUIREMENT

FOR THE FISCAL YEAR ENDED (FYE) SEPTEMBER 30, 2021

(1) Required City Contributions$1,678,737.00
(2) Less 2020 Prepaid Contribution0.00
(3) Less Actual City Contributions(1,678,995.23)
(4) City Contributions in Excess of Minimum Requirement Applied to Reduce Unfunded Actuarial Accrued Liability as of September 30, 2021

($258.23)


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 33


HISTORY OF ASSET VALUES AND INVESTMENT RETURNS

 

 [A line graph depicting the History of Asset Values (Market Value vs. Actuarial Value), with the horizontal axis representing the years 2012 through 2021; and the vertical axis representing the value in $10million increments starting at 0.

The Actuarial Value of Assets (green line) values are: 2012 = approximately 40 million; 2013 = approximately 43 million; 2014 = approximately 46 million; 2015 - approximately 50 million; 2016 = approximately 52 million; 2017 = approximately 56 million; 2018 = approximately 59 million; 2019 = 62 million; 2020 = 65 million; and 2021 = 68 million.

The Market Value of Assets (blue line) values are: 012 = approximately 41 million; 2013 = approximately 48 million; 2014 = approximately 51 million; 2015 - approximately 50 million; 2016 = approximately 52 million; 2017 = approximately 59 million; 2018 = approximately 61 million; 2019 = 61 million; 2020 = 60.5 million; and 2021 = 72 million.]


[A bar graph depicting the History of Investment Returns (Market Value vs. Actuarial Value), with horizontal axis representing the years 2012 through 2021; and the vertical axis representing the percentages in increments of 5%, starting at -5.00%.

The Return on Actuarial Value of Assets (green bar) values are: 2012 = approximately 5%; 2013 = approximately 11%; 2014 = approximately 15%; 2015 = approximately 13%; 2016 = approximately 9%; 2017 = approximately 8%; 2018 = approximately 7%; 2019 = 8%; 2020 = 4%; and 2021 = 8%.


The Return on Market Value of Assets (blue bar) values are: 2012 = approximately 20%; 2013 = approximately 15%; 2014 = approximately 13%; 2015 = NO DATA; 2016 = approximately 11%; 2017 = approximately 13%; 2018 = approximately 8%; 2019 = 3%; 2020 = 4%; and 2021 = 23%.  


The Assumed Returns (purple bar) values are: 2012 = NO DATA; 2013 = approximately 8%; 2014 = approximately 7%; 2015 = approximately 7%; 2016 = approximately 7%; 2017 = approximately 7%; 2018 = approximately 7%; 2019 = 7%; 2020 = 7%; and 2021 = 7%. ]


 City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 34


STATISTICAL DATA

Activities

Description10/1/201810/1/201910/1/202010/1/2021
Number289293300302
Average Current Age47.546.746.046.1
Average Age at Employment39.038.638.438.5
Average Past Service8.58.17.67.6
Average Annual Salary$45,156$45,623$46,164$47,584


Service Retirees

Description10/1/201810/1/201910/1/202010/1/2021
Number321329328329
Average Current Age67.768.268.669.2
Average Annual Benefit$12,633$13,148$13,128$13,145


DROP Retirees

Description10/1/201810/1/201910/1/202010/1/2021
Number001013
Average Current AgeNot ApplicableNot Applicable60.462.1
Average Annual BenefitNot ApplicableNot Applicable$25,669$26,172


Beneficiaries

Description10/1/201810/1/201910/1/202010/1/2021
Number35363637
Average Current Age65.066.165.466.6
Average Annual Benefit$6,161$6,086$6,916$7,118


Disability Retirees

Description10/1/201810/1/201910/1/202010/1/2021
Number3221
Average Current Age69.769.570.567.0
Average Annual Benefit$13,052$7,548$7,548$10,524


Terminated Vested

Description10/1/201810/1/201910/1/202010/1/2021
Number (Note 1)132146161203
Average Current Age (Note 2)
51.9

52.6

53.3

53.5
Average Annual Benefit (Note 2)
$5,291

$5,124

$5,215

$5,228


Note 1: Members entitled to both a deferred annuity and a refund are counted only once in this category.

Note 2: The Average Current Age and Average Annual Benefit exclude participants awaiting a refund of contributions.



City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 35


AGE AND SERVICE DISTRIBUTION

 


PAST SERVICE
AGE012345 to 910 to 1415 to 1920 to 2425 to 2930+Total
15 - 192NO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATA2
20 - 24741NO DATANO DATA1NO DATANO DATANO DATANO DATANO DATA13
25 - 299534NO DATA2NO DATANO DATANO DATANO DATANO DATA23
30 - 3476414631NO DATANO DATANO DATA32
35 - 3944311822NO DATANO DATANO DATA25
40 - 44663219453NO DATANO DATA39
45 - 4925114646NO DATA1NO DATA30
50 - 5453NO DATA61145651NO DATA46
55 - 5944311163741246
60 - 64NO DATA1NO DATA24910321NO DATA32
65+NO DATA1NO DATANO DATA28NO DATA2NO DATA1NO DATA14
Total46391818187931321452302

 


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 36


VALUATION PARTICIPANT RECONCILIATION

 

  1. Active lives
    1. Number in prior valuation 10/1/2020 = 300
    2. Terminations
      1. Vested (partial or full) with deferred annuity = (7)
      2. Vested in refund of member contributions only = (26)
      3. Refund of member contributions or full lump sum distribution received = (7)
    3. Deaths
      1. Beneficiary receiving benefits = 0
      2. No future benefits payable = 0
    4. Disabled = 0
    5. Retired = (2)
    6. DROP = (3)
    7. Continuing participants = 255
    8. New entrants = 47
    9. Total active life participants in valuation = 302
  2. Non-Active lives (including beneficiaries receiving benefits)
CategoryService Retirees, Vested Receiving BenefitsDROP BenefitsReceiving Death BenefitsReceiving Disability BenefitsVested (Deferred Annuity)Vested (Due Refund)Total
a. Number prior valuations328103627795548
Retired8000(6)02
DROP0300003
Vested (Deferred Annuity)0000808
Vested (Due Refund)000002828
Hired/Terminated in Same Year000001313
Death, With Survivor(1)010000
Death, No Survivor(6)00(1)00(7)
Disabled0000000
Refund of Contributions00000(4)(4)
Rehires0000000
Expired Annuities0000000
Data Corrections0000000
b. Number current valuation3291337179132591

 

Note 1: Members entitled to both a deferred annuity and a refund are included in both categories. 

 

 


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 37 


SUMMARY OF CURRENT PLAN

(Through Ordinance 41-2019)

 

Original Effective Date 

December 30, 1966.

 

Credited Service           

Years and fractional parts of years of service with the City as a General Employee. City Manager, City Attorney or Assistant City Attorney may opt out within the first year of employment.

 

Salary   

Prior to August 26, 2013 (and for Members eligible for Retirement as of that date):

Total compensation reportable on Form W-2, plus all tax deferred, tax sheltered, and tax exempt items of income. Expense reimbursements or payments of expense allowances are excluded.

 

For the calculation of the frozen accrued benefit as of August 26, 2013:

Salary shall include any payments of accrued leave that would have been included in Salary if the Member retired prior to August 26, 2013. However, the accrued leave balance shall be reduced by the amount of vacation or sick leave used subsequent to August 26, 2013 and the frozen accrued benefit shall be adjusted accordingly.

 

On and After August 26, 2013:

Base pay, excluding overtime and all other forms of compensation.

 

Average Final Compensation     

For computing benefits based on Credited Service on and after August 26, 2013:

Average of Salary during the five highest years of the last ten, but in no event less than the highest three- year average of the effective date.

 

For computing the frozen benefit or for Members eligible for Retirement or who terminate employment prior to August 26, 2013:

The Average Final Compensation is the average of the five highest years of the last ten years as of August 26, 2013.

 

For Members eligible for Normal Retirement as of August 26, 2013:

The average of the highest 5 years of Salary of the last 10 years.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 38 


SUMMARY OF CURRENT PLAN

(Through Ordinance 41-2019)

Normal Retirement

For the frozen accrued benefit for all Members and for all benefits for Members with at least 10 Years of Service as of August 26, 2013:

 

Date: First of the month coinciding with or following the earlier of: 1) age 58 and the completion of

7.50 years of Credited Service, or 2) the completion of 28 years of Credited Service, regardless of age.

 

Benefit: 2.482% of Average Final Compensation as of August 26, 2013 times Credited Service through August 26, 2013 (Members who are eligible for Normal Retirement as of August 26, 2013 continue to accrue benefits under the old benefit structure).

 

Form of Benefit: Life Annuity (options available).


For the benefits accrued on and after August 26, 2013:

 

Date: First of the month coinciding with or following the earlier of: 1) age 58 and the completion of

7.50 years of Credited Service, or 2) the completion of 28 years of Credited Service, regardless of age.

 

Benefit: 2.00% of Average Final Compensation times Credited Service on and after August 26, 2013.

 

Form of Benefit: Life Annuity (options available).


For the benefits accrued on and after August 26, 2013 for Members with less than 10 Years of Service as of that date:

 

Date: First of the month coinciding with or following the earlier of: 1) age 62 and the completion of 10 years of Credited Service, or 2) the completion of 30 years of Credited Service, regardless of age.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 39


SUMMARY OF CURRENT PLAN

(Through Ordinance 41-2019)

Early Retirement 

For the frozen accrued benefit for all Members and for all benefits for Members with at least 10 Years of Service as of August 26, 2013:

 

Date: Later of age 48 and the completion of 7.50 years of Credited Service.

 

Benefit: Same as for Normal Retirement but reduced 3.00% for each year that Early Retirement precedes Normal Retirement.

 

For benefits accrued on and after August 26, 2013 for Members with less than 10 Years of service as of that date:

 

Date: Later of age 52 and the completion of 10 years of Credited Service.

 

Benefit: Same as for Normal Retirement but actuarially reduced for Early Retirement.

 

Vesting

 Schedule: 0% for less than 10 years, 100% after 10 years.

 

Members are 100% vested in their frozen accrued benefit as of August 26, 2013.

 

Benefit: Vested accrued benefit (determined as for Normal Retirement) paid beginning at the otherwise Normal Retirement Date.

 

Disability

Eligibility: Total and permanent (as determined by the Board) after completion of 10 years of Credited Service.

 

Benefit: Accrued Benefit (determined as for Normal Retirement).

 

Form of Benefit: Paid until earlier of death, recovery, Normal Retirement Date, or election by Member to receive Early Retirement benefit.

 

Maximum: Total of Plan, Workers Compensation, and Social Security benefits shall not exceed 100% of Average Final Compensation.



City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 40


SUMMARY OF CURRENT PLAN

(Through Ordinance 41-2019)

Death Benefits

Prior to Vesting

None.

 

Vested

Beneficiary receives a monthly benefit which is the actuarial equivalent of 50% of the Member's accrued benefit at the date of death.

 

Post-Retirement

According to option selected, if any.

 

Contributions

Members

2.50% of Salary.

 

City

Remaining amount necessary to pay the Normal Cost and fund the accrued, past service liability over 30 years.

 

Board of Trustees

Three full-time General Employees of the System elected by the membership, one General Employee appointed by the Board and confirmed by the City Manager, one citizen selected by the Board 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 August 26, 2013. A subsequent program “DROP II” is available to participants effective November 26, 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.


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 41


GASB 67

STATEMENT OF FIDUCIARY NET POSITION

SEPTEMBER 30, 2021

ASSETS

Cash and Cash Equivalents:MARKET VALUE
Short Term Investments1,545,340
Cash277
Total Cash and Equivalents1,545,617
Receivables:MARKET VALUE
Investment Income67,969
Total Receivable67,969
Investments:MARKET VALUE
Fixed Income14,624,900
Equities41,410,917
Pooled/Common/Commingled Funds - Equity8,359,558
Pooled/Common/Commingled Funds - Real Estate7,146,611
Total Investments71,541,986

TOTAL ASSETS = 73,155,572

LIABILITIES

Payables:MARKET VALUE
Administrative Expenses496
Total Liabilities496

NET POSITION RESTRICTED FOR PENSIONS = 73,155,076


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 42 


GASB 67

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FOR THE YEAR ENDED SEPTEMBER 30, 2021

Market Value Basis

Additions

Contributions:Amount
Member348,573
City1,678,995
Total Contribution2,027,568
Investment Income:Amount
Net Increase in Fair Market Value of Investments13,112,802
Interest & Dividends1,260,916
Less Investment Expense (Note 1)(226,017)
Net Investment Income14,147,701

Total Additions = 16,175,269


Deductions

Distributions to Members:Amount
Benefit Payments4,576,061
Lump Sum DROP Distributions0
Lump Sum PLOP Distributions14,007
Refunds of Member Contributions25,436
Total Distributions4,615,504
Administrative Expense98,206

Total Deductions = 4,713,710


Net Increase in Net Position = 11,461,559


NET POSITION RESTRICTED FOR PENSIONSAmount
Beginning of the Year61,693,517
End of the Year73,155,076


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


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 43 


GASB 67

NOTES TO THE FINANCIAL STATEMENTS

(For the Year Ended September 30, 2021)

 

Plan Administration

The Plan is a single-employer defined benefit pension plan administered by the Plan's Board of Trustees comprised of: three full-time General Employees of the System elected by the Membership, one General Employee appointed by the Board and confirmed by the City Manager, one citizen selected by the Board and appointed by the City Council as a ministerial duty.

Plan Membership as of October 1, 2020:

Inactive plan Members of Beneficiaries Currently Receiving Benefits376
Inactive Plan Member Entitled to But Not Yet Receiving Benefits172
Active Plan Members300
Total
848

 

Benefits Provided

The Plan provides retirement, termination, disability and death benefits.
A summary of the benefit provisions can be found in the October 1, 2020 Actuarial Valuation Report for the City of Titusville General Employees' Pension Plan prepared by Foster & Foster Actuaries and Consultants.

Contributions

Members: 2.50% of Salary.

City: Remaining amount necessary tp pay the Normal Cost and fund the accrued, past service liability over 30 years.

Invested Policy:

The following was the Board's adopted asset allocation policy as of September 30, 2021:

Asset ClassTarget 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, 2021, the annual money-weighted rate of return on Pension Plan investments, net of Pension Plan investment expense, was 23.39 percent.

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


Deferred Retirement Option Program

Eligibility: The original DROP is closed to any new participants after August 26, 2013. A subsequent program “DROP II” is available to participants effective November 26, 2019.

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.

Participation: Not more than 60 months.

The DROP balance as September 30, 2021 is $421,486. 


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 44


GASB 67

NET PENSION LIABILITY OF THE SPONSOR

 The components of the Net Pension Liability of the Sponsor on September 30, 2021 were as follows:

Total Pension Liability$70,734,476
Plan Fiduciary Net Position$(73,155,076)
Sponsor's Net Pension Liability$(2,420,600)
Plan Fiduciary Net Position as a percentage of Total Pension Liability103.42%

 

Actuarial Assumptions:

The Total Pension Liability was determined by an actuarial valuation as of October 1, 2020 updated to September 30, 2021 using the following actuarial assumptions:

Inflation = 2.5%

Salary Increases = Service based

Discount Rate = 7.25%

Investment Rate of Return = 7.25%

Mortality Rate Healthy Active Lives:

Female:

PubG.H-2010 for Employees.

Male:

PubG.H-2010 (Below Median) for Employees, set back one year.

Mortality Rate Healthy Retiree Lives:

Female:

PubG.H-2010 for Healthy Retirees.

Male:

PubG.H-2010 (Below Median) for Healthy Retirees, set back one year.

Mortality Rate Beneficiary Lives:

Female:

PubG.H-2010 (Below Median) for Healthy Retirees. 

Male:

PubG.H-2010 for Healthy Retirees, set back one year.

Mortality Rate Disabled Lives:

PubG.H-2010 for Disabled Retirees, set forward three years.

All rates are projected generationally with Mortality Improvement Scale MP-2018. We feel this assumption sufficiently accommodates future mortality improvements.

The previously described mortality 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, 2020 FRS valuation report for non-special-risk employees, with appropriate adjustments made based on plan demographics.

The most recent actuarial experience study used to review the other significant assumptions was dated August 20, 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 2021 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. 

 City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 45


 GASB 67

Best estimates of arithmetic real rates of return for each major asset class included in the Pension Plan's target asset allocation as of September 30, 2021 are summarized in the following table:

Asset ClassLong Term Expected Real Rate of Return (Note1)
All Cap Value Equity7.50%
Broad Growth Equity7.50%
Foreign Equity Securities8.50%
Broad Market Fixed Income2.50%
Global Bond3.50%
Real Estate4.50%

(Note 1) Source: AndCo Consulting

Discount Rate:

The Discount Rate used to measure the Total Pension Liability was 7.25 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.

Category1% Decrease
6.25%
Current Discount Rate
7.25%
1% Increase
8.25%
Sponsor's Net Pension Liability$4,846,497$ (2,420,600)$ (8,562,834)



City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 46


GASB 67

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

Last 2 Fiscal Years

Total Pension Liability

Category09/30/202109/30/2020
Service Cost1,120,5391,055,101
Interest4,990,2994,970,974
Changes of benefit termsNO DATANO DATA
Differences between Expected and Actual Experience(111,383)276,775
Changes of assumptions1,625,991640,200
Contributions - Buy BackNO DATA21,909
Benefit Payments, including Refunds of Employee Contributions(4,615,504)(4,653,848)
Net Change in Total Pension Liability3,009,9422,311,111
Total Pension Liability - Beginning67,724,53465,413,423
Total Pension Liability - Ending (a)70,734,47667,724,534

Plan Fiduciary Net Position

Category09/30/202109/30/2020
Contributions - Employer1,678,9952,295,879
Contributions - Employee348,573344,340
Contributions - Buy BackNO DATA21,909
Net Investment Income14,147,7012,119,258
Benefit Payments, including Refunds of Employee Contributions(4,615,504)(4,653,848)
Administrative Expense(98,206)(105,220)
Net Change in Plan Fiduciary Net Position11,461,55923,318
Plan Fiduciary Net Position - Beginning61,693,51761,671,199
Plan Fiduciary Net Position - Ending (b)$73,155,076$6,693,517
Net Pension Liability - Ending (a) - (b)$ (2,420,600)$6,031,017
Plan Fiduciary Net Position as a percentage of the Total Pension Liability103.42%91.09%
Covered Payroll$13,942,943$13,785,792
Net Liability as a percentage of Covered Payroll
-17.36%

43.75%


Notes to Schedule:

Changes of Assumptions:

For measurement date 09/30/2021, the investment rate of return was lowered from 7.50% to 7.25% per year, net of investment related expenses.

For measurement date 09/30/2020, as mandated by Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the rates used in Milliman’s July 1, 2019 FRS valuation report for non-special-risk employees, with appropriate adjustments made based on plan demographics.

Additionally, the assumed investment rate of return was reduced from 7.75% to 7.50%, net of investment related expenses.

 City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 47


 GASB 67

SCHEDULE OF CONTRIBUTIONS

Last 2 Fiscal Years

 

Fiscal Year EndedActuarially Determined ContributionContributions in relation to the Actuarially Determined ContributionsContribution Deficiency (Excess)Covered PayrollContributions as a percentage of Covered Payroll
09/30/2021$1,678,737$1,678,995$ (258)$13,942,94312.04%
09/30/2020$2,295,879$2,295,879NO DATA$13,785,79216.65%


Notes to Schedule:

Valuation Date: 10/01/2019

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 can be found in the October 1, 2019 Actuarial Valuation for the City of Titusville General Employees' Pension Plan prepared by Foster & Foster Actuaries and Consultants.



City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 48


 

GASB 67

SCHEDULE OF INVESTMENT RETURNS

Last 2 Fiscal Years

Fiscal Year EndedAnnual Money-Weighted Rate of Return Net of Investment Expense
09/30/202123.39%
09/30/20203.49%

 

City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 49


 

GASB 68

NOTES TO THE FINANCIAL STATEMENTS

(For the Year Ended September 30, 2021)

 

Plan Administration

The Plan is a single-employer defined benefit pension plan administered by the Plan's Board of Trustees comprised of: three full-time General Employees of the System elected by the Membership, one General Employee appointed by the Board and confirmed by the City Manager, one citizen selected by the Board and appointed by the City Council as a ministerial duty.

Each person employed by the City as a full-time General Employee becomes a member of the Plan as a condition of his employment. All General Employees are therefore eligible for all plan benefits, as provided for in the plan document and by applicable law, except that the City Manager, City Attorney or Asst. City Attorney may notify the Board and the City, within the first 12 months of his employment as City Manager, City Attorney or Asst. City Attorney, of his election to not be a member of the system. In the event of such election, he shall be barred from future membership in the system.

Plan Membership as of October 1, 2020:

Inactive plan Members of Beneficiaries Currently Receiving Benefits376
Inactive Plan Member Entitled to But Not Yet Receiving Benefits172
Active Plan Members300
Total
848

 

Benefits Provided

The Plan provides retirement, termination, disability and death benefits.
A summary of the benefit provisions can be found in the October 1, 2020 Actuarial Valuation Report for the City of Titusville General Employees' Pension Plan prepared by Foster & Foster Actuaries and Consultants.

Contributions

Members: 2.50% of Salary.

City: Remaining amount necessary tp pay the Normal Cost and fund the accrued, past service liability over 30 years.

Net Pension Liability

The measurement date is September 30, 2021.

The measurement period for the pension expense was October 1, 2020 to September 30, 2021.

The reporting period is October 1, 2020 through September 30, 2021.

The Sponsor's Net Pension Liability was measured as of September 30, 2021.

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, 2020 updated to September 30, 2021 using the following actuarial assumptions:

Inflation = 2.50%

Salary Increases = Service based

Discount Rate = 7.25%

Investment Rate of Return = 7.25%

 

 City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 50


 GASB 68

Mortality Rate Healthy Active Lives:

Female:

PubG.H-2010 for Employees.

Male:

PubG.H-2010 (Below Median) for Employees, set back one year.

Mortality Rate Healthy Retiree Lives:

Female:

PubG.H-2010 for Healthy Retirees.

Male:

PubG.H-2010 (Below Median) for Healthy Retirees, set back one year.

Mortality Rate Beneficiary Lives:

Female:

PubG.H-2010 (Below Median) for Healthy Retirees. 

Male:

PubG.H-2010 for Healthy Retirees, set back one year.

Mortality Rate Disabled Lives:

PubG.H-2010 for Disabled Retirees, set forward three years.

All rates are projected generationally with Mortality Improvement Scale MP-2018. We feel this assumption sufficiently accommodates future mortality improvements.

The previously described mortality 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, 2020 FRS valuation report for non-special-risk employees, with appropriate adjustments made based on plan demographics.

The most recent actuarial experience study used to review the other significant assumptions was dated August 20, 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 2021 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 arithmetic real rates of return for each major asset class included in the Pension Plan's target asset allocation as of September 30, 2021 are summarized in the following table:

Asset ClassTarget AllocationLong Term Expected Real Rate of Return (Note1)
All Cap Value Equity27.5%7.50%
Broad Growth Equity27.5%7.50%
Foreign Equity Securities10.0%8.50%
Broad Market Fixed Income20.0%2.50%
Global Bond5.0%3.50%
Real Estate10.0%4.50%
Total100.0%NO DATA

(Note 1) Source: AndCo Consulting

Discount Rate:

The Discount Rate used to measure the Total Pension Liability was 7.25 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 General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 51


GASB 68

CHANGES IN NET PENSION LIABILITY

 

 

CategoryIncrease (Decrease)
Total Pension Liability
(a)
Increase (Decrease) Plan Fiduciary Net Position
(b)
Increase (Decrease) Net Pension Liability
(a) - (b)
Balances as of September 30, 2020$67,724,534$61,693,517$6,031,017

Changes for a Year:

CategoryIncrease (Decrease)
Total Pension Liability
(a)
Increase (Decrease) Plan Fiduciary Net Position
(b)
Increase (Decrease) Net Pension Liability
(a) - (b)
Service Cost
1,120,539NO DATA1,120,539
Interest
4,990,299
NO DATA4,990,299
Differences between Expected and Actual Experience

(111,383)

NO DATA

(111.383)
Changes of assumptions
1,625,991NO DATA1,625,991
Changes of benefit terms
NO DATANO DATANO DATA
Contributions - Employer
NO DATA1,678,995(1,678,995)
Contributions - Employee
NO DATA348,573(348,573)
Net Investment Income
NO DATA14,147,701(14,147,701)
Benefit Payments, including Refunds of Employee Contributions


(4,615,504)


(4,615,504)


NO DATA
Administrative Expense
NO DATA(98,206)98,206
Net Changes3,009,94211,461,559(8,451,617)
Balances at September 30, 2021$70,734,476$73,155,076$ (2,420,600)

Sensitivity of the Net Pension Liability to changes in the Discount Rate.

Category1% Decrease
6.25%
Current Discount Rate
7.25%
1% Increase
8.25%
Sponsor's Net Pension Liability$4,846,497$ (2,420,600)$ (8,562,834)

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 General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 52



 

GASB 68

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

For the year ended September 30, 2021, the Sponsor will recognize a Pension Expense of $699,471.

On September 30, 2021, the Sponsor reported Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions from the following sources:

SourcesDeferred Outflows of ResourcesDeferred Inflows of Resources
Differences between Expected and Actual Experience92,25874,256
Changes of assumptions1,297,394NO DATA
Net difference between Projected and Actual Earnings on Pension Plan investments

NO DATA


5,061,142
Total$1,389,652$5,135,398


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:Amount
2022$ (128,873)
2023$ (284,106)
2024$ (1,408,483)
2025$ (1,924,284)
2026NO DATA
ThereafterNO DATA


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 53


 GASB 68

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

Last 2 Fiscal Years

Total Pension Liability

Category09/30/202109/30/2020
Service Cost1,120,5391,055,101
Interest4,990,2994,970,974
Changes of benefit termsNO DATANO DATA
Differences between Expected and Actual Experience(111,383)276,775
Changes of assumptions1,625,991640,200
Contributions - Buy BackNO DATA21,909
Benefit Payments, including Refunds of Employee Contributions(4,615,504)(4,653,848)
Net Change in Total Pension Liability3,009,9422,311,111
Total Pension Liability - Beginning67,724,53465,413,423
Total Pension Liability - Ending (a)70,734,47667,724,534

Plan Fiduciary Net Position

Category09/30/202109/30/2020
Contributions - Employer1,678,9952,295,879
Contributions - Employee348,573344,340
Contributions - Buy BackNO DATA21,909
Net Investment Income14,147,7012,119,258
Benefit Payments, including Refunds of Employee Contributions(4,615,504)(4,653,848)
Administrative Expense(98,206)(105,220)
Net Change in Plan Fiduciary Net Position11,461,55923,318
Plan Fiduciary Net Position - Beginning61,693,51761,671,199
Plan Fiduciary Net Position - Ending (b)$73,155,076$6,693,517
Net Pension Liability - Ending (a) - (b)$ (2,420,600)$6,031,017
Plan Fiduciary Net Position as a percentage of the Total Pension Liability103.42%91.09%
Covered Payroll$13,942,943$13,785,792
Net Liability as a percentage of Covered Payroll
-17.36%

43.75%


Notes to Schedule:

Changes of Assumptions:

For measurement date 09/30/2021, the investment rate of return was lowered from 7.50% to 7.25% per year, net of investment related expenses.

For measurement date 09/30/2020, as mandated by Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the rates used in Milliman’s July 1, 2019 FRS valuation report for non-special-risk employees, with appropriate adjustments made based on plan demographics.

Additionally, the assumed investment rate of return was reduced from 7.75% to 7.50%, net of investment related expenses.

 
City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 54


 

GASB 68

SCHEDULE OF CONTRIBUTIONS

Last 2 Fiscal Years

 

Fiscal Year EndedActuarially Determined ContributionContributions in relation to the Actuarially Determined ContributionsContribution Deficiency (Excess)Covered PayrollContributions as a percentage of Covered Payroll
09/30/2021$1,678,737$1,678,995$ (258)$13,942,94312.04%
09/30/2020$2,295,879$2,295,879NO DATA$13,785,79216.65%


Notes to Schedule:

Valuation Date: 10/01/2019

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 can be found in the October 1, 2019 Actuarial Valuation for the City of Titusville General Employees' Pension Plan prepared by Foster & Foster Actuaries and Consultants.

 

 City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 55


EXPENSE DEVELOPMENT AND AMORTIZATION SCHEDULES

 

 

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


 

City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 56


GASB 68

COMPONENTS OF PENSION EXPENSE

FISCAL YEAR SEPTEMBER 30, 2021

  

CategoryNet Pension LiabilityDeferred InflowsDeferred OutflowsPension Expense
Beginning balance$6,031,017$939,816$4,666,163NO DATA

Total Pension Liability

CategoryNet Pension LiabilityDeferred InflowsDeferred OutflowsPension Expense
Service Cost
1,120,539NO DATANO DATA1,120,539
Interest
4,990,299NO DATANO DATA
Changes of benefit terms
NO DATANO DATANO DATANO DATA
Differences between Expected and Actual Experience with regard to economic or demographic assumptions

(111,383)

111,383

NO DATA

NO DATA
Current year amortization of experience difference
NO DATA(37,127)640,200
Change in assumptions about future economic or demographic factors or other inputs

1,625,991

NO DATA

1,625,991

NO DATA
Current year amortization of change in assumptions
NO DATANO DATA(755,397)755,397
Benefit Payments, including Refunds of Employee Contributions
(4,615,504)NO DATANO DATANO DATA
Net Change3,009,94274,256645,2177,054,485

Plan Fiduciary Net Position

CategoryNet Pension LiabilityDeferred InflowsDeferred OutflowsPension Expense
Contributions - Employer1,678,995NO DATANO DATANO DATA
Contributions - Employee348,573NO DATANO DATA(348,573)
Projected Net Investment Income4,526,283NO DATANO DATA(4,526,283)
Differences between projected and actual earnings on Pension Plan investments
9,621,418

9,621,418

NO DATA

NO DATA
Current year amortizationNO DATA(2,713,673)(1,135,309)(1,578,364)
Benefit Payments, including Refunds of Employee Contributions
(4,615,504)

NO DATA

NO DATA

NO DATA
Administrative Expenses(98,206)NO DATANO DATA98,206
Net Change11,461,5596,907,745(1,135,309)(6,355,014)
Ending Balance$ (2,420,600)$7,921,817$4,176,071$699,471


   


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 57 


GASB 68

AMORTIZATION SCHEDULE - INVESTMENTS

Increase (Decrease) in Pension Experience Arising from the Recognition of the Differences Between Projected and Actual Earnings on Pension Plan Investments

Plan Year EndingDifferences Between Projected and Actual EarningsRecognition Period (Years)2021202220232024202520262027202820292030
2021$(9,621,418)5$(1,924,282)$(1,924,284)$(1,924,282)$(1,924,284)$(1,924,284)NO DATANO DATANO DATANO DATANO DATA
2020$2,579,0035$515,801$515,801$515,801$515,801NO DATANO DATANO DATANO DATANO DATANO DATA
2019$3,097,5395$619,508$619,508$619,508NO DATANO DATANO DATANO DATANO DATANO DATANO DATA
2018$ (752,126)5$ (150,425)$ (150,425)NO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATA
2017$(3,194,832)5$ (638,966)NO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATA
Net Increase (Decrease) in Pension ExpenseNO DATANO DATA$(1,578,364)$(939,400)$(788,975)$(1,408,483)$(1,924,284)NO DATANO DATANO DATANO DATANO DATA




City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 58


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 EndingChanges of AssumptionsRecognition Period (Years)2021202220232024202520262027202820292030
2021$1,625,9913$541,997$541,997$541,997NO DATA

NO DATA

NO DATANO DATANO DATANO DATANO DATA
2020$640,2003$213,400$213,400NO DATA

NO DATA

NO DATANO DATANO DATANO DATANO DATANO DATA
Net Increase (Decrease) in Pension ExpenseNO DATANO DATA$755,397$755,397$541,997NO DATA

NO DATA

NO DATANO DATANO DATANO DATANO DATA





City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 59


GASB 68

AMORTIZATION SCHEDULE - EXPERIENCE

Increase (Decrease) in Pension Experience Arising from the Recognition of the Differences Between Projected and Actual Earnings on Pension Plan Investments

Plan Year EndingDifferences Between Projected and Actual ExperienceRecognition Period (Years)2021202220232024202520262027202820292030
2021$(111,383)3$(37,127)$(37,127)$(37,127)NO DATANO DATANO DATANO DATANO DATANO DATANO DATA
2020$276,7753$92,258$92,258 NO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATA
2019$399,3573$133,119NO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATANO DATA
Net Increase (Decrease) in Pension ExpenseNO DATANO DATA$188,250$55,130$(37,127)NO DATANO DATANO DATANO DATANO DATANO DATANO DATA


City of Titusville General Employees' Pension Plan                                            FOSTER & FOSTER Pg. 60