Title
2010 Actuarial Valuation Report for the City of Gainesville Disability Pension Plan (B)
This item involves the Disability Pension Plan actuarial valuation as of October 1, 2010.
Explanation
The City of Gainesville 2010 Disability Pension Plan Actuarial Valuation Report presents a statement of the financial position of the City's Disability Pension Plan (the Plan). The actuarial valuation process assesses the fiscal status of the Plan, and is used to determine the annual contribution to the Plan which is expressed as a percentage of the covered payroll of Plan members.
The 2010 Actuarial Valuation Report indicates that the Plan was 214% funded as of October 1, 2010, with an actuarial value of assets of $5,459,769 and an actuarial accrued liability of $2,549,573. The 2010 valuation recommends that the Plan's investment return assumption rate be lowered from 9.25% to 8.5%, and that the required employer contribution rate for the Plan should be .34% of payroll for fiscal year 2012, down from .60% for fiscal year 2011.
Fiscal Note
The 2012 Fiscal Year Disability Pension Plan contribution rates presented in the 2010 Actuarial Valuation Report have been included in the 2012 Fiscal Year Budget. At .34% of payroll, Fiscal Year 2012 City contributions are projected to be approximately $287,547.
Recommendation
Recommended Motion: The City Commission: 1) accept the 2010 Actuarial Valuation Report for the City of Gainesville Disability Pension Plan; 2) approve the Plan's investment return assumption rate change from 9.25% to 8.5%; 3) approve the 2012 Fiscal Year Disability Pension Plan City contribution rate of .34% presented in the 2010 Actuarial Valuation Report.