HomeMy WebLinkAboutDania Beach Police & Fire Chapter 112.664 Compliance Report 2023
DANIA BEACH POLICE AND
FIREFIGHTERS RETIREMENT SYSTEM
Chapter 112.664, F.S. Compliance Report
In Connection with the October 1, 2023 Funding Actuarial Valuation Report
And the Plan’s Financial Reporting for the Year Ending September 30, 2023
June 18, 2024
Board of Trustees
Dania Beach Police and Firefighters Retirement System
Dania Beach, Florida
Dear Board Members:
Gabriel, Roeder, Smith & Company (GRS) has been engaged by the Dania Beach Police and
Firefighters Retirement System (Plan) to prepare a disclosure report to satisfy the requirements set
forth in Ch. 112.664, F.S. and as further required pursuant to Ch. 60T-1.0035, F.A.C.
This report was prepared at the request of the Board and is intended for use by the Retirement
Board and those designated or approved by the Board. This report may be provided to parties other
than the System only in its entirety and only with the permission of the Board.
The purpose of the report is to provide the required information specified in Ch. 112.664, F.S. as well
as supplement this information with additional exhibits. This report should not be relied on for any
purpose other than the purpose described above.
The findings in this report are based on data or other information through September 30, 2023.
Future actuarial measurements may differ significantly from the current measurements presented in
this report due to such factors as the following: plan experience differing from that anticipated by
the economic or demographic assumptions; changes in economic or demographic assumptions;
increases or decreases expected as part of the natural operation of the methodology used for these
measurements (such as the end of an amortization period or additional cost or contribution
requirements based on the plan’s funded status); and changes in plan provisions or applicable law.
The scope of this engagement does not include an analysis of the potential range of such
measurements.
This report was based upon information furnished by the Plan Administrator concerning Plan
benefits, financial transactions, plan provisions and active members, terminated members, retirees
and beneficiaries. We checked for internal and year-to-year consistency, but did not audit the data.
We are not responsible for the accuracy or completeness of the information provided by the Plan
Administrator.
This report complements the October 1, 2023 actuarial valuation report, dated April 12, 2024, and
the GASB No. 67 actuarial disclosure report, dated January 31, 2024, and should be considered in
conjunction with those reports. Except as otherwise indicated as required for the disclosures
contained herein, this report was prepared using certain assumptions selected by the Board as
described in our October 1, 2023 actuarial valuation report. This report is also based on the Plan
Provisions, census data, and financial information as summarized in our October 1, 2023 actuarial
valuation report. Please refer to the October 1, 2023 actuarial valuation report and the GASB No. 67
actuarial disclosure report for summaries and descriptions of this information and for all relevant
actuarial disclosures.
Board of Trustees
Dania Beach Police and Firefighters Retirement System
June 18, 2024
Page ii
The use of an investment return assumption that is 2% higher than the investment return
assumption used to determine the funding requirements does not represent an estimate of future
Plan experience nor does it reflect an observation of future return estimates inherent in financial
market data. The use of this investment return assumption is provided as a counterpart to the
Chapter 112.664, Florida Statutes requirement to utilize an investment return assumption that is 2%
lower than the assumption used to determine the funding requirements. The inclusion of the
additional exhibits showing the effect of using a 2% higher investment return assumption shows a
more complete assessment of the range of possible results as opposed to showing a one-sided range
as required by Florida Statutes.
This report was prepared using our proprietary valuation model and related software which in our
professional judgment has the capability to provide results that are consistent with the purposes of
the valuation and has no material limitations or known weaknesses. We performed tests to ensure
that the model reasonably represents that which is intended to be modeled.
Dina Lerner and Israel Bichachi are members of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinions
contained herein. The signing actuaries are independent of the plan sponsor.
This report has been prepared by actuaries who have substantial experience valuing public
employee retirement systems. To the best of our knowledge the information contained in this
report is accurate and fairly presents the actuarial position of the Retirement Plan as of the
valuation date. All calculations have been made in conformity with generally accepted actuarial
principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards
Board and with applicable statutes.
With respect to the reporting standards for defined benefit retirement plans or systems contained in
Section 112.664(1) F.S., the actuarial disclosures required under this section were prepared and
completed by us or under our direct supervision, and we acknowledge responsibility for the results.
To the best of our knowledge, the results are complete and accurate, and in our opinion, meet the
requirements of Section 112.664(1), F.S. and Section 60T-1.0035, F.A.C.
Respectfully submitted,
GABRIEL, ROEDER, SMITH & COMPANY
By By
Dina Lerner, FSA, MAAA, FCA Israel Bichachi, ASA, MAAA
Enrolled Actuary No. 23-08236 Consultant & Actuary
Consultant & Actuary
TABLE OF CONTENTS
Title Page
Ch. 112.664, F.S. Results
Schedule of Changes in Net Pension Liability
1. Using financial reporting assumptions per GASB Statement No. 67 1
2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 2
3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 3
4. Using the mandated mortality and funding interest rate +2% 4
Assets Versus Benefit Payments Projections
1. Using assumptions from the Plan’s latest actuarial valuation 5
2. Using assumptions prescribed in Section 112.664(1)(a), F.S. 6
3. Using assumptions prescribed in Section 112.664(1)(b), F.S. 7
4. Using the mandated mortality and funding interest rate +2% 8
Actuarially Determined Contribution 9
CHAPTER 112.664, FLORIDA STATUTES
RESULTS
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
1
Schedule of Changes in the Employers' Net Pension Liability
Using Financial Reporting Assumptions per GASB Statement No. 67
Fiscal year ending September 30,2023
1. Total pension liability
a. Service Cost 477,044$
b. Interest 5,016,533
c. Benefit Changes -
d. Difference between actual & expected experience & Other 1,198,231
e. Assumption Changes -
f. Benefit Payments (6,344,258)
g. Contribution Refunds -
h. Net Change in Total Pension Liability 347,550
i. Total Pension Liability - Beginning 89,939,142
j. Total Pension Liability - Ending 90,286,692$
2. Plan Fiduciary Net Position
a. Contributions - Employer 611,910$
b. Contributions - Employer (from State)696,022
c. Contributions - Member 204,137
d. Net Investment Income 4,858,945
e. Benefit Payments (6,344,258)
f. Contribution Refunds -
g. Administrative Expense (202,148)
h. Other 298,103
i. Net Change in Plan Fiduciary Net Position 122,711
j. Plan Fiduciary Net Position - Beginning 74,818,018
k. Plan Fiduciary Net Position - Ending 74,940,729$
3. Net Pension Liability / (Asset)15,345,963
Certain Key Assumptions
Valuation Date 10/01/2022
Measurement Date 09/30/2023
Investment Return Assumption 5.75%
Mortality Table
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
2
Schedule of Changes in the Employers' Net Pension Liability
Using Assumptions required under 112.664(1)(a), F.S.
Fiscal year ending September 30,2023
1. Total pension liability
a. Service Cost 477,044$
b. Interest 5,016,533
c. Benefit Changes -
d. Difference between actual & expected experience & Other 1,198,231
e. Assumption Changes -
f. Benefit Payments (6,344,258)
g. Contribution Refunds -
h. Net Change in Total Pension Liability 347,550
i. Total Pension Liability - Beginning 89,939,142
j. Total Pension Liability - Ending 90,286,692$
2. Plan Fiduciary Net Position
a. Contributions - Employer 611,910$
b. Contributions - Employer (from State)696,022
c. Contributions - Member 204,137
d. Net Investment Income 4,858,945
e. Benefit Payments (6,344,258)
f. Contribution Refunds -
g. Administrative Expense (202,148)
h. Other 298,103
i. Net Change in Plan Fiduciary Net Position 122,711
j. Plan Fiduciary Net Position - Beginning 74,818,018
k. Plan Fiduciary Net Position - Ending 74,940,729$
3. Net Pension Liability / (Asset)15,345,963
Certain Key Assumptions
Valuation Date 10/01/2022
Measurement Date 09/30/2023
Investment Return Assumption 5.75%
Mortality Table
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
3
Schedule of Changes in the Employers' Net Pension Liability
Using Assumptions required under 112.664(1)(b), F.S.
Fiscal year ending September 30,2023
1. Total pension liability
a. Service Cost 757,814$
b. Interest 4,144,499
c. Benefit Changes -
d. Difference between actual & expected experience & Other 802,180
e. Assumption Changes -
f. Benefit Payments (6,344,258)
g. Contribution Refunds -
h. Net Change in Total Pension Liability (639,765)
i. Total Pension Liability - Beginning 112,934,279
j. Total Pension Liability - Ending 112,294,514$
2. Plan Fiduciary Net Position
a. Contributions - Employer 611,910$
b. Contributions - Employer (from State)696,022
c. Contributions - Member 204,137
d. Net Investment Income 4,858,945
e. Benefit Payments (6,344,258)
f. Contribution Refunds -
g. Administrative Expense (202,148)
h. Other 298,103
i. Net Change in Plan Fiduciary Net Position 122,711
j. Plan Fiduciary Net Position - Beginning 74,818,018
k. Plan Fiduciary Net Position - Ending 74,940,729$
3. Net Pension Liability / (Asset)37,353,785
Certain Key Assumptions
Valuation Date 10/01/2022
Measurement Date 09/30/2023
Investment Return Assumption 3.75%
Mortality Table
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
4
Schedule of Changes in the Employers' Net Pension Liability
Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption
Fiscal year ending September 30,2023
1. Total pension liability
a. Service Cost 313,898$
b. Interest 5,570,769
c. Benefit Changes -
d. Difference between actual & expected experience & Other 802,180
e. Assumption Changes -
f. Benefit Payments (6,344,258)
g. Contribution Refunds -
h. Net Change in Total Pension Liability 342,589
i. Total Pension Liability - Beginning 74,739,122
j. Total Pension Liability - Ending 75,081,711$
2. Plan Fiduciary Net Position
a. Contributions - Employer 611,910$
b. Contributions - Employer (from State)696,022
c. Contributions - Member 204,137
d. Net Investment Income 4,858,945
e. Benefit Payments (6,344,258)
f. Contribution Refunds -
g. Administrative Expense (202,148)
h. Other 298,103
i. Net Change in Plan Fiduciary Net Position 122,711
j. Plan Fiduciary Net Position - Beginning 74,818,018
k. Plan Fiduciary Net Position - Ending 74,940,729$
3. Net Pension Liability / (Asset)140,982
Certain Key Assumptions
Valuation Date 10/01/2022
Measurement Date 09/30/2023
Investment Return Assumption 7.75%
Mortality Table
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
5
Asset and Benefit Payment Projection
Not Reflecting Any Contributions from the Employer, State or Employee
Using Assumptions from the Latest Actuarial Valuation
FYE
Market Value of
Assets (BOY)
Expected
Investment Return
Projected Benefit
Payments
Market Value of
Assets (EOY)
Certain Key Assumptions
Note: As required in Section 112.664(1)(c) of the Florida Statutes, the projection of the Fund
assets do not include contributions from the Employer, Employee or State, which is contrary to
Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as
a representation of the amount of time the Fund can sustain benefit payments. Under the
GASB standards which DO include contributions from the employer, employee and State, the
Fund is expected to be able to sustain the benefit payment demands in the near-term and long-
term future.
reflecting no
contributions from the Employer, Employee or State, contrary to Florida
Statutes and Plan provisions
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
6
Asset and Benefit Payment Projection
Not Reflecting Any Contributions from the Employer, State or Employee
Using Assumptions required under 112.664(1)(a), F.S.
FYE
Market Value of
Assets (BOY)
Expected
Investment Return
Projected Benefit
Payments
Market Value of
Assets (EOY)
Certain Key Assumptions
Note: As required in Section 112.664(1)(c) of the Florida Statutes, the projection of the Fund
assets do not include contributions from the Employer, Employee or State, which is contrary to
Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as
a representation of the amount of time the Fund can sustain benefit payments. Under the
GASB standards which DO include contributions from the employer, employee and State, the
Fund is expected to be able to sustain the benefit payment demands in the near-term and long-
term future.
reflecting no
contributions from the Employer, Employee or State, contrary to Florida
Statutes and Plan provisions
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
7
Asset and Benefit Payment Projection
Not Reflecting Any Contributions from the Employer, State or Employee
Using Assumptions required under 112.664(1)(b), F.S.
FYE
Market Value of
Assets (BOY)
Expected
Investment Return
Projected Benefit
Payments
Market Value of
Assets (EOY)
Certain Key Assumptions
Note: As required in Section 112.664(1)(c) of the Florida Statutes, the projection of the Fund
assets do not include contributions from the Employer, Employee or State, which is contrary to
Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as
a representation of the amount of time the Fund can sustain benefit payments. Under the
GASB standards which DO include contributions from the employer, employee and State, the
Fund is expected to be able to sustain the benefit payment demands in the near-term and long-
term future.
reflecting no
contributions from the Employer, Employee or State, contrary to Florida
Statutes and Plan provisions
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
8
Asset and Benefit Payment Projection
Not Reflecting Any Contributions from the Employer, State or Employee
Using Assumptions under 112.664(1)(b), F.S. except 2% higher investment return assumption
FYE
Market Value of
Assets (BOY)
Expected
Investment Return
Projected Benefit
Payments
Market Value of
Assets (EOY)
Certain Key Assumptions
Note: As required in Section 112.664(1)(c) of the Florida Statutes, the projection of the Fund
assets do not include contributions from the Employer, Employee or State, which is contrary to
Florida Statutes and Plan provisions. For this reason, these projections should not be viewed as
a representation of the amount of time the Fund can sustain benefit payments. Under the
GASB standards which DO include contributions from the employer, employee and State, the
Fund is expected to be able to sustain the benefit payment demands in the near-term and long-
term future.
reflecting no
contributions from the Employer, Employee or State, contrary to Florida
Statutes and Plan provisions
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
9
ACTUARIALLY DETERMINED CONTRIBUTION - POLICE AND FIRE COMBINED
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
10
ACTUARIALLY DETERMINED CONTRIBUTION - POLICE
Dania Beach Police and Firefighters Retirement System
Chapter 112.664, F.S. Compliance Report
11
ACTUARIALLY DETERMINED CONTRIBUTION - FIRE