Title
General Employees' Pension Plan Actuarial Valuation Report (B)
Explanation
The City of Gainesville receives periodic actuarial valuation reports on its General Employees' Pension Plan (General Plan). The actuarial valuation is the process by which the fiscal status of the Plan is measured on a recurring basis and it, therefore, establishes the required employer (City) contribution rate for the ensuing two (2) fiscal years.
Fiscal Note
Based on the results of the September 30, 2004 valuation, the recommended employer (City) contribution rate to the General Plan effective October 1, 2005 is 3.51% of covered payroll. Utilizing projected covered payroll figures, the employer contribution for FY2006 is estimated to be $2,376,500.
Subsequent to the issuance of the Series 2003 Taxable Pension Obligation Bonds, incorporated in each actuarial valuation report is an analysis comparing the required City contribution rate to that which would have been required absent the issuance of the bonds. The September 30, 2004 valuation indicates that the City contribution rate effective October 1, 2005 (assuming the bonds were not issued) would have been 8.45%. After considering the required FY06 debt service payment on the Pension Obligation Bonds, this translates to a savings of $2.2 million to the General Fund.
Recommendation
The City Commission accept the September 30, 2004 actuarial valuation report for the General Plan and approve the recommended employer (City) contribution rate of 3.51% effective October 1, 2005.