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HomeMy WebLinkAboutPension Service Company Augusta Richmond GA DOCUMENT NAME: 17err,jiDnSer- y \-c.e Lo'rrl Fnj '. DOCUMENT TYPE: '\kfD Y 1- YEAR: 'Z-CfJO ~.. BOX NUMBERg ',I FILE NUMBER: ) L--}- ,'''2-3 NUMBER OF PAGES: ' 1'1 I I I I I I I I I I I I I I I I I I j P -J/:: / iJ 7 ::2-- 3, ) . - I - .jSc I I I I I I I .. I I I I I I I. I I ~ / ~,:L :J$, , tJ 7 ;2 3. Pensibn. Serv.ite I' Comm~ny APPROVED APR 4 2000 (A~.ill!ST~~.oli'L~OIlNTY COMMISSIONl March 7, 2000 Mr. Lon Morrey County 1945 County Commission 530 Greene Street, Room 207 Augusta, Georgia 30911 Dear Mr. Morrey: We are pleased to enclose the January 1, 1999 actuarial valuation report of Augusta- Richmond County's three funded pension plans. Augusta-Richmond County is required have actuarial valuations performed at least bi- annually on these plans to determine required funding levels, These results will be used to establish the annual ARC funding requirement for the 2000 plan year, as well as the 2001 plan year (unless subsequent valuations are performed prior to December 31, 2000 and December 3 1, 2001, respectively. The reports also document the annual pension cost and historical funding schedules required by Governmental Accounting Standards Board Statement No. 27. Please call if you have any questions regarding these reports, Sincerely, fJJ~ Paul Roberts Chief Actuary Enclosure 1100 Circi<: 7S Parkway, Suite 300, Atlanta, Georgia 30339, 770,952,5225, 770,563,9356Jo-" 800,736,7166, e-mail: pensionservice@mindspring.com A I 1 a n I a Au s t i 11 B 0 s t () 11 Columbus Santa Barbara A Di\';sion oj The Benefit ,l1arketinB Group, Inc. I I. I I I I I I I I- I I I I I' I I. . . AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN ACTUARIAL V ALUA TION AS OF JANUARY 1, 1999 CBIZ/PENSION SERVICE COMPANY 1100 Circle 75 Parkway Suite 300 Atlanta, Georgia 30339 (770) 952-5225 I IPC I I I I I I I I- I I I I I I I. I I. March 7, 2000 Augusta-Richmond County Pension Committee Ladies and Gentlemen: Re: January 1, 1999 Actuarial Valuation for the Augusta-Richmond County 'County 1945 Plan' (the Plan) This report presents the results of the actuarial valuation of the plan for the 1999 plan year, based on census information as of January 1,1999, The primary function of the actu~al valuation report is to document the minimum required employer contribution to the plan, as well other actuarial calculations and the basis of the actuarial valuation. The results of this actuarial valuation will also serve as the basis for the calculation of the annual pension cost and pension obligations required by the Governmental Accounting Standards Board, The required contribution for the 1999 plan year is $0. This amount represents 0.0% of covered payroll. The required contribution rate determined in the prior valuation was 0.0% of participant payroll. Georgia law (pL 47-20) sets trurumum funding standards for state and 'local government-sponsored defined benefit pension plans in Georgia, The results of this valuation can be used to establish the funding requirement for the 2000 and 2001 calendar years, The pension plan and the employer are subject to the reporting requirements of Statements 25 and 27, respectively, of the Governmental Accounting Standards Board (GASB), GASB 25 defines the financial reporting standards for the pension plan, A separate report that contains the required GASB 25 current and historical plan obligations, funding levels, and contribution amounts will be provided at a later date, 1100 Circle 75 Parkway, Suite 300, Atlanta, Georgia 30339, 770,952,5225. 770,563,9356Jax, 800,736,7166, e.mail: pensionservice@mindspring.com A I I cl n I cl All S t; n B () s ton Columbus Santa Barbara A Division oj The Benefit Marketing Group, Inc. I I. I I I I I I I .- I I I I I I .. I I Augusta-Richmond County March 7, 2000 Page 2 GASB 27, which is effective for periods beginning after June 15, 1997, defines the standards of accounting and financial reporting for pension plan costs and obligations in the county's financial reports. All required GASB 27 information is provided in this report. Based on the results of this valuation, the annual pension cost that must be recognized in the county's financial report equals $0, The annual pension cost will not equal the State required contribution in all years. I believe the methods and assumptions used to determine the annual contribution to the plan are, in the aggregate, reasonable, considering the historical experience of the plan and reasonable expectations for the future. CBIZ/Pension Service Company relied on the following information in preparing the actuarial valuation results presented in this report: (a) Active and inactive participant census data as of January 1, 1999 provided by Augusta-Richmond County. Page 3 contains a statistical summary of the census data. (b) Plan provisions as of J ailuary 1, 1999 as contained in the plan document provided to the actuary by Augusta-Richmond County (summary begins on page 9 of this report). (c) The value of plan assets as of January 1, 1999 was furnished by the Augusta- Richmond County Sta,ff and is shown on page 2 of this report. The assets used for valuation purposes include any contribution receivables due for prior plan years. A summary of the actuarial methods and assumptions used in this actuarial valuation begins on page 8 of this report. I I. I I I I I I I .e I I I I I I .. I I Augusta-Richmond County March 7,2000 Page 3 CBIZ/Pension Service Company is available to answer any questions regarding this report. Sincerely, (1J'~ Paul Roberts, EA Chief Actuary I I,. I I I I I I I .. I I I I I I .. AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN TABLE OF CONTENTS Development of Annual Contribution Page 1 Reconciliation of Plan Assets Page 2 Active and Inactive Participant Statistical Information Page 3 Information for Financial Statements Page 4 GASB 27 Notes to Financial Statements Page 5 GASB 27 Required Supplementary Information: Schedule of Funding Progress Page 7 Summary of Actuarial Methods and Assumptions Page 8 Summary of Main Plan Provisions for Valuation Purposes Page 9 . . - . - - I I.. I I I I I I I .3. I I I I I I I I - 5. Employer Contribution as a Percentage of Payroll . I I AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN DEVELOPMENT OF ANNUAL CONTRIBUTION FOR THE PLAN YEAR ENDING DECEMBER 31, 1999 1. Participant Counts as of January 1, 1999 a. Active Participants b. Retirees and Disableds c. Deferred Vested (former employees) 2. Present Value of Future Benefits as of January 1, 1999 a. Active Participants b. Retirees and Disableds c. Deferred Vested (former employees) Total Actuarial Value of Assets as of January 1, 1999 a, Fund Balance as of the Beginning of the Plan Year b. Net Contributions Receivable as of the Beginning of the Plan Year Total 4. Dl~rivation of Required Employer Contribution a. Present Value of Future Benefit Payments b. Actuarial Value of Plan Assets c, Present Value of Future Employee Contributions d.' Present Value of Future Employer Contributions = [(a) - (b) - (c)], but not less than $0 e, Present Value of Future Payroll f Employer's Normal Cost Percentage = [Cd / (e)]. g. Current Active Participants' Payroll h, Required Employer Contribution = [(f) x (g)] 1 4 44 o $ 1,250,930 11,605,253 o $12,856,183 $13,760,620 o $13,760,620 $12,856,183 13,760,620 74,052 0 $ 1,539,100 0,0% $ 165,910 $ 0 0.0% I I.~ I I I I I I I .e4. I I I I I I I - . I I AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN RECONCILIA nON OF PLAN ASSETS 1. M[arket Value of Plan Assets as of January 1, 1998 $13,711,309 2. Changes in Assets During the Year a. Employer Contributions b. Employee Contributions c, Net Investment Income o 8,604 1,103,426 ( 932,192) ( 130,527) $ 49,311 d. Benefits Paid Administrative Fees Paid Total Changes e. f 3. Market Value of Plan Assets as of January 1, 1999 $13,760,620 Contributions Receivable from the County $ 0 5. Actuarial Value of Assets as of January 1, 1999: (3) + (4) $13,760,620 2 I I. I I I I I I I . I I I I I I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION Pt,AN ACTIVE AND INACTIVE PARTICIPANT STATISTICAL INFORMATION AS OF JANUARY 1, 1999 Active Participants a. Number b. Average Age c. Average Service d. Total Covered Earnings 4 48.5 28.0 $ 165,910 Inactive Participants 1. Retirees (and Beneficiaries) a. Number b. Total Annual Benefits c. Average Annual Benefit 44 $ 815,879 $ 18,543 2. Participants with Vested Deferred Benefits a. Number b" Total Annual Benefits c. Average Annual Benefit o $ 0 $ 0 3. Diisabled Participants Receiving Benefits a. Number b. Total Annual Benefits c. Average Annual Benefit o $ 0 $ 0 3 I I. I I I I I I I ,- . I 3. I I I I I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN INFORMA TION FOR FINANCIAL STATEMENTS AS OF JANUARY 1, 1999 1. Actuarial Present Value of Accumulated .Plan Benefits a. Vested 1. 11. 111. Retirees (and others in pay status) Deferred Vested (former employees) Vested Active Participants Total $11,605,253 o 714,619 $12,319,872 b. Nonvested 14,343 Total $12,334,215 , 2. EITect of Future Salary Increases $ 201,670 Total Actuarial Accrued Liability (Projected Unit Credit) $12,535,885 4. Net Assets Available for Benefits (including receivables) $13,760,620 5. Net Assets in Excess of Actuarial Present Value of Accumulated Plan Benefits $1,426,405 6. PJrincipal Actuarial Assumptions a, Investment Return b. Rate of Future Salary Increase~ (not applicable to Accumulated Plan Benefits calculations) 8,0% 5.0% 4 I .. I. I I I I I I' I -'. I I I I I' I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN GASB 27 NOTES TO FINANCIAL STATEMENTS FOR THE, YEAR BEGINNING JANUARY 1, 1999 Note X. Pension Plan The ernployersponsors County 1945 Plan (The Plan), which is a single-employer defined benefit pension plan. The Plan provides retirement, disability, and death benefits to plan participants and beneficiaries, as well as automatic cost-of-living adjustments. The plan was closed to new participants effective September 30, 1975. The Plan was initially established by Richmond County, prior to its consolidation with the City of Augusta, The Plan can be amended by the Augusta-Richmond County Commission by passage of a resolution by its memb{:rs. The Plan is administered by CBIZlPension Service Company, FundilllK Policy: The employer is required to contribute an actuarially determined amount annually to The , , Plan's trust. The contribution amount is determined using actuarial methods and assumptions approved by The Plan's trustees and must satisfy the minimum contribution requirement contained in State of Georgia statutes. Annual Pension Cost: The employer's annual pension cost and net pension obligation for the pension plan for the current year were determined as follows: January 1. 1999 Derivation of Annual Pension Cost Annual Required Contribution Interest on Net Pension Obligation Amortization of Net Pension Obligation Annual Pension Cost $ o o o o $ Derivation of Net Pension Oblieation Annual'Pension Cost for Prior Year Actual Contributions to Plan for Prior Year Increase in Net Pension Obligation Net Pension Obligation as of January 1, 1998 Net Pension Obligation as of January 1, 1999 $ o o o o o $ $ $ 5 I I. I I I I I I I .- I I I I I I -. AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN GASB 27 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR BEGINNING JANUARY 1, 1999 Basis of Valuation: Current Valuation Date: Annual Return on Invested Plan Assets Projected Annual Salary Increases Expected Annual Inflation Actuarial Value of Assets Actuarial Funding Method The current funding method does not determine an actuarial liability; there was no unfunded~ C:1~ as of January 1, 1999 Trend Information for The Plan Fiscal Annual Actual Percentage Net Year Pension County of APC Pension Beginning Cost (APC) Contribution Contributed Obligation 01/01/1999 $ 0 N/A N/A $ 0 01/01/1998 0 0 0,0% 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 6 -. . - - !!! !!! I I I I .- I I I I I I I -I I )- C:~ C~ C CJ~ .~ ). , ,~ q =. ~: C) ';i! d ("~ o ~. ~~ -j ><: ~ o ~ ~ - 'D ~ Ut "tf tI1 Z ~ - o Z "tf t"" ~ ~ > rJl = N ...... ~~ =,0 tI1S g~ ~O O~ ~~ ~'"CI ~~ _3: Ztl1 ~~ ~~ 00< c:1- ~~ rJlO rJl~ ~ - o Z L 3: ~....- """""'....- CD ...... ...... ...... ...... ~ ~ ~ ~:::::: '0 tIl ........ ........ l-oI....... Q) ~ ~~~~ C;s VI 0\ 00 \0 C1l ::s ... ~ ............... ~ \O-WW .....> ~~~~ >.......0 ~~~~ ",e.2'--- p' ~......~.._ .0 ~ ~ g ~ S '~ '~Rj' '" ~ e: NOVlO "tf .., > ~ ..9, t""' 0 ::.= g;' 2' \O\O'DN "'a:~ ~.. ~VI ~.. ~VI 8. So: ;J . ..O\WW C~e.c;:: ~O ~O\ .; VI ___ > '-" ...... W ...... 00 2. ~ 0 -\0000 ... 0 ......O-VI Qt""'2 ~'-"8. ... r-.. ...-... ...-... ...-... ~ -..- '2 c: .. ~\O ~VI ~N c;:: ~ > ~ \o......ON , > VI_W.. ~ ..... ~~~~ '-".....,Q. w..N...... ~ 0 o VI ...... W c::a. VlO..VI '-"" '-"" '-"" '-' ON~O Ii'~~ VlO......\o ......~::s N a.. ~ 00 c:r::t, Q. ~~~~ ,-,,08. ~ "tf(J VlO\__ ~o \ONO\O\ '::l~'O ~oo ~\O ~O ~VI 0'" '-" ......000\0 ==0 \Owoo- c::a. VI.. 000 (J"tf ------------ ........~C1lc: w~...... C;::Q~> oo-\Ow,o::s> NW\OOO ~c::a......... .... '-"-~' ........ON "'Otl~ ~~~~ ......~C1l'" ~..e..,~~ ~~O~ o ' ==..... '" -l ::r::r o C1l ~ el '" C1l ... '" 8- - ~ ... ~. '" '" ::r o ~ g- o <: C1l .., C1l o a "0 g ~ '" '" g. '" ~ c::a. - ~ ... ~. '" Q. ~ ~. 8. ~ '" "0 ~ o ..... Er C1l ~ 2 g. e. <: e. t: ~ g. "t:l ~ I g Er C1l Q. ~ C1l Q.-l C1l ::r fD C1li3 ~ S' 2' 8. g, t: ~ '" - S. 0 Otl ~ Er'" C1l 3 ~g. ~'8. S4,Q. 8.~ c:'" 2, g ... ... (JQ. .., C1l ~~ "Tj S' 5 C1l ~~ Otl ~ ~S4, C1l t: Er g. 8.e. . ~ o o [ - ;. [ ~. 'Tj g "0 .a o '" C1l '" o ..... &: '" ... g- JD' g- ~ 2 g. e. ~ g [ - ~ - ~. ~ ~ '" I I. I I I I I I I .- I I I I . . - .~ -. AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS Investment Return: 8.0% per annum. Salary Increases: Mortality: Termination: Disability: Retirement: COLA Increases: Asset Method: Funding Method: 5.0% per annum. 1983 Group Annuity Mortality Table, sex-distinct male and female rates. An experience-based, age-related set of rates; sample rates as follows: Probability Probability Age of Termination Age of Termination 20 31.4% 40 5.1% 25 16.1% 45 3.1% 30 9.6% 50 0.8% 35 7.0% 55 0,6% Rates of disability are based on published studies conducted by the Social Security Administration; sample rates as follows: Male Probability Female Probability Age of Disabilitv ' A~e of Disabilitv 20 0.04% 20 0.02% 30 0,10% 30 0,07% 40 0,23% 40 0.18% 50 0.64% 50 0.50% 60 2.24% 60 1.41% All participants are assumed to retire at age 60, or current age if later. CPI is assumed to increase 5.0% per annum, The actuarial value of assets has been set equal to market value, The aggregate cost method, Under this method, the excess of the present value of projected future benefits over the actuarial value of assets is spread over the average future working lifetime of the participants as a level percentage of payroll. 8 I I. I I I I I I I .- I I I . . - ~ . AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN SUMMARY OF PLAN PROVISIONS Effec::tive Date: March 1, 1945. Eligible Emplovees: Service: Eamin~s: Employee Contributions: Hicl1est Eamin~s: Accrued Benefit: Nomlal Retirement: Eligibility Benefit Early Retirement: Eligibility Benefit Regular, full-time County employees hired prior to age 35 and before age 60, excluding all employees hired after 9/30/75 and employees of the Department of Family and Children's Services, the Department of Health, and the Department of Public Welfare, The plan also excludes any employee covered by any o~er retirement program to which the County contributes, including Social Security. The period of continuous service from date of hire to termination date during which the participant made any required employee contributions. Total compensation paid to an employee. AfteHax contribution of 5.0% of total compensation. Employee contributions will be accumulated with interest at a rate of 5.0% per annum. The highest monthly earnings received within the 72-month period immediately preceding termination of employment. 2.0% of highest earnings times service, but not greater than 60% of highest earnings. Attainment of age 60. The accrued benefit as of the date of termination, The later of attainment of age 50 and completion of 15 years of service. (a) A deferred benefit commencing at normal retirement equal to the accrued benefit at termination, or (b) an inunediate benefit equal to the accrued benefit at termination, reduced by 5/12% for each month that payments commence prior to normal retirement. 9 I I. I I I I I I I .- I I I I . . I . I...... -. . . . . AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN Disability SuMMARy OF PLAN PROVISIONS Pre-retirement Death Post-retirement Death Vesting Schedule: Termination: If the employee has completed at least one year of service and suffers an employment- related total and permanent disability, benefit equals 50% of highest earnings minus any Workers' Compensation payments. If the employee's disability is total and permanent, but is not employment-related, the employee will receive a return of their contributions with interest, less any payments received from this plan. If the employee's disability is temporary, and they have completed 12 years of service and been disabled for 4 weeks, the benefit equals their accrued benefit, reduced by any Workers' Compensation payments. Temporary disability is defined as an inability to , perform job duties. If death was employment-related, benefit equals 25% of monthly earnings at the time of death, commencing immediately after Workers' Compensation payments cease. Benefit is payable until the surviving spouse dies or is remarried or until unmarried children attain age 18. If death was not work-related, benefit equals the employee's contributions to the plan with interest, less any payments received from the plan. Benefit equals 60% of the participant's retirement benefit, payable until the death or remarriage of the surviving spouse. Completed Years of Service Vesting Percentage 0% 50% 60% 70% 80% 90% 100% <10 10 11 12 13 14 15 or more ,If the parti'cipant has not completed 10 years of service, benefit equals the employee's contributions with interest. If the participant has completed at least 10 years of service, a deferred benefit equal to their accrued. benefit at termination times their vesting percentage, with benefits commencing at normal retirement. 10 I I. I I I I I I I .- I I I I I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1945 PENSION PLAN SUMMARY OF PLAN PROVISIONS Cost-of-Living: Annual cost-of-living adjustments are provided, effective each March 1st, equal to the change in the Coilsumer Price Index during the preceding calendar year, but not to exceed 5.0% in any year. 11 I I,. I I I I I I I .- I I I I AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN ACTUARIAL V ALUA nON AS OF JANUARY 1, 1999 - - I .,. CBIZ/PENSION SERVICE COMPANY 1100 Circle 75 Parkway Suite 300 Atlanta, Georgia 30339 (770) 952-5225 - . . - - I 1_ rPS c I I I I I I I I- I I I I I I I. I I March 7,2000 Augusta-Richmond County Pension Committee Ladies and Gentlemen: Re: January 1, 1999 Actuarial Valuation for the Augusta-Richmond County 'City 1949 Plan' (the Plan) This report presents the results of the actuarial valuation of the plan for the 1999 plan year, based on census information as of January 1,1999. The primary function of the actuarial valuation report is to document the minimum required employer contribution to the plan, as well other actuarial calculations and the basis of the actuarial valuation. The results of this actuarial valuation will also serve as the basis for the calculation of the annual pension cost and pension obligations required by the Governmental Accounting Standards Board, The required contribution for the 1999 plan year is $0. This amount represents 0.0% of covered payroll. The required contribution rate determined in the prior valuation was 0.0% of participant payroll. Georgia law (pL 47-20) sets nurumum funding standards for state and local government-sponsored defined benefit pension plans in Georgia, The results of this valuation satisfy the State's funding requirement and can be used to establish the funding requirement for the 2000 and 2001 calendar years, The pension plan and the employer are subject to the reporting requirements of Statements 25 and 27, respectively, of the Governmental Accounting Standards Board (GASB), GASB 25 defines the financial reporting standards for the pension plan. A separate report that contains the required GASB 25 current and historical plan obligations, funding levels, and contribution amounts will be provided at a later date. 1100 Circle 75 Parkway, Suite 300, Atlanta, Georgia 30339, 770,952,5225, 770,563,9356Jax, 800,736,7166, e-mail: pensionservice@mindspring.com A I 1(/ n I a Au s tin B O.'i ton Columbus Santa Barbara A Division of The Benefit Marketin8 Group, Inc. I I,. I I I I I I I I- I I I I I I 1-. I I Augusta-Richmond County March 7,2000 Page 2 GASB 27, which is effective for periods beginning after June 15, 1997, defines the standards of accounting and financial reporting for pension plan costs and obligations in the county's financial reports. All required GASB 27 information is provided in this report. Based on the results of this valuation, the annual pension cost that must be recognized in the county's financial report equals $0. The annual pension cost will not equal the State required contribution in all years, I believe the methods and assumptions used to determine the annual contribution to the plan are, in the aggregate, reasonable, considering the historical experience of the plan and reasonable expectations for the future, CBIZ/Pension Service Company relied on the following information in preparing the actuarial valuation results presented in this report: (a) Active and inactive participant census data as of January 1, 1999 provided by Augusta-Richmond County, Page 3 contains a statistical summary of the census data. (b) Plan provisions as of January 1, 1999 as contained in the plan document provided to the actuary by Augusta-:Richmond County (summary begins on page 9 of this report). ( c) The value of plan assets as of January 1, 1999 was furnished by the Augusta- Richmond County Staff and is shown on page 2 of this report, The assets used ,for valuation purposes include any contribution receivables due for prior plan years, A summary of the actuarial !TIethods and assumptions used in this actuarial valuation begins on: page 8 of this report. I I,. I I I I I I I .- I I I I I I .,. I I Augusta-Richmond County March 7, 2000 Page 3 CBIZ/Pension Service Company is available to answer any questions regarding this report. Sincerely, rlJ~ Paul Roberts, EA Chief Actuary I I. I I I I I I I .. I I I I I I .. I I AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN TABLE OF CONTENTS Development of Annual Contribution Page 1 Reconciliation of Plan Assets Page 2 Active and Inactive Participant Statistical Information Page 3 Information for Financial Statements Page 4 GASB 27 Notes to Financial Statements Page 5 GASB 27 Required Supplementary Information: Schedule of Funding Progress Page 7 Summary of Actuarial Methods and Assumptions Page 8 Summary of Main Plan Provisions for Valuation Purposes Page 9 I I. I I I I I I I .3. I I I I I I I I. 5. I I AUGUSTA-RICHMOND COUNTY trty 1949 PENSION PLAN DEVELOPMENT OF ANNUAL CONTRIBUTION FOR THE PLAN YEAR ENDING DECEMBER 31, 1999 1. P~lrticipant Counts as of January 1, 1999 a. Active Participants b. Retirees and Disableds . 175 160 4 c. Deferred Vested (former employees) 2. Present Value of Future Benefits as of January 1, 1999 a. Active Participants b, Retirees and Disableds c. Deferred Vested (former employees) Total $26,960,376 34,582,659 3,120 $61,546,155 Market Value of Assets as of January 1, 1999 a. Fund Balance as of the Beginning of the Plan Year b. Net Contributions Receivable as of the Beginning of the Plan Year Total $71,138,815 o $71,138,815 4. Derivation of Required Employer Contribution a. Present Value of Future Benefit Payments b, Actuarial Value of Plan Assets $61,546,155 66,295,617 3,671,019 c. Present Value of Future Employee Contributions Present Value of Future Employer Contributions = [(a) - (b) - (c)], but not less than $0 Present Value of Future Payroll Employer's Normal Cost Percentage = [Cd / (e)] Current Active Participants' Payroll Required Employer Contribution = [(t) x (g)] $ 5,794,554 $ 0 d. e. o $57,813,100 0.0% f g, h; Employer Contribution as a Per:c~nta.ge of Payroll 0,0% 1 I I. I I I I I I I '.4. I I I I I I I. I . I AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN RECONCILIA nON OF PLAN ASSETS 1. :Market Value of Plan Assets as of January 1, 1998 $66,391,882 2. Changes in Assets Duringthe Yea:r a. Employer Contributions b.' Employee Contributions c. Net Investment Income o 380,871 7,966,537 ( 3,128,560) ( 471,915) $ 4,746,933 d. Benefits Paid Administrative Fees Paid Total Changes e. f 3.' l\1[arket Value of Plan Assets as of January 1, 1999 $71,138,815 Contributions Receivable from the County $ 0 5. Market Value of Assets as of January 1, 1999: (3) + (4) $71,138,815 6. Expected Actuarial Value of Assets as of December 31, 1998 $ 65,084,818 7. Actuarial Value of Assets as of January 1, 1999: (6) + 20% x [(5) - (6)] $ 66,295,617 2 I I. I I I I I I I .. I I I I I I .. I I AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN ACTIVE AND INACTIVE PARTICIPANT STATISTICAL INFORMATION AS OF JANUARY 1, 1999 Active Participants a. Number b. Average Age c. Average Service' d. Total Covered Earnings 175 43.8 18.8 $5,794,554 Inacti've Participants 1. Retirees (and Beneficiaries) a, Number b. Total Annual Benefits c, Average Annual Benefit 126 $2,443,936 $ 19,396 2. Pllrticipants with Vested Deferred Benefits a. Number b. Total Annual Benefits c. Average Annual Benefit 4 $ 78,575 $ 19,644 3. Disabled Participants Receiving Benefits a, Number b, Total Annual Benefits c, Average Annual Benefit 34 $ 525,036 $ 15,442 3 I I. I . '. I I I I I ..3. I I I I I I .. . . - AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN INFORMATION FOR FINANCIAL STATEMENTS AS OF JANUARY 1, 1999 1. Aduarial Present Value of Accumulated Plan Benefits a. Vested I. 11. 111. Retirees (and others in pay status) Deferred Vested (former employees) Vested Active PartiCipants Total $34,582,659 3,120 7,678,776 $42,264,555 b. Nonvested 2,513,705 Total , $44,778,260 2. Effect of Future Salary Increases $6,609,814 Total Actuarial Accrued Liability (Projected Unit Credit) $51,388,074 4. Nd Assets Available for Benefits (including receivables) $71,138,815 5. N .~t Assets in Excess of Actuarial Present Value of A(~cumulated Plan Benefits $26,360,555 6. Principal Actuarial Assumptions a. Investment Return b. Rate of Future Salary Increases (not applicable to Accumulated Plan, Benefits calculations) 8,0% 5.5% 4 I I. I I I I I I I ,. I I I I I I I. I I AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN GASB 27 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR BEGINNING JANUARY 1, 1999 Note X. Pension Plan The employer sponsors City 1949 Plan (The Plan), which is a single-employer defined benefit pension plan. The Plan provides retirement, disability, and death benefits to plan participants and beneficiaries, as well as automatic cost-of-living adjustments. The plan was closed to new participants effective December 31, 1997. The Plan was initially established by the City of Augusta, prior to its consolidation with Richmond County, The Plan can be amended by the Augusta-Richmond County Commission by passage of a resolution by its membc~rs. The Plan is administered by CBIZ/Pension Service Company. Funding Policy: The employer is required to contribute an actuarially determined amount annually to The Plan's trust. The contribution amount is determined using actuarial methods and assumptions approved by The Plan's trustees and must satisfy the minimum contribution requirement contained in State of Georgia statute:s. Annual Pension Cost: The employer's annual pension cost and net pension obligation for the pension plan for the current year were determined as follows: January 1. 1999 Deriv~lltion of Annual Pension Cost Annual Required Contribution Interest on Net Pension Obligation Amortization of Net Pension Obligation Annual Pension Cost $ o o o o $ Deriv~l1tion of Net Pension Obli2ation Annual Pension Cost for Prior Year Actual Contributions to Plan for Prior Year Increase in Net Pension Obligation Net Pension Obligation as of January 1, 1998 Net Pension Obligation as of January 1, 1999 $ o o o o o $ $ $ 5 I I. I I I I I I I .. I I I I I I .. . . I AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN GASB 27 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR BEGINNING JANUARY 1, 1999 Basis of Valuation: Current Valuation Date: Annual Return on Invested Plan Assets Projected Annual Salary Increases Expected Annual Inflation Actuarial Funding Method January 1, 1999 8.0% 5.5% 5.0% Aggregate Method The Actuarial Value of Assets equals the expected actuarial value of plan assets (projected from the most recent actuarial valuation) plus 20% of the difference between the market value of assets and the expected actuarial value of assets. The current funding method does not determine an actuarial liability; there was no unfunded actuarial liability as of January 1, 1999 Trend Information for The Plan Fiscal Annual Actual Percentage Net Year Pension County of APC Pension Beginning Cost (APC) Contribution Contributed Obligation 01/01/1999 $ 0 N/A N/A $ 0 01/01/1998 0 0 0.0% 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 6 - - - - - -. I I - . I I I I _I I I I I I I I -I I ). c:" c;"~ c:~ (I) ...~ ). I ~~ (""~ =: ~, ... C) :t' t;:, (""l C) c:' :ti -I ><: ~ - ~ 0< - \C ~ \C "'tl tfj :2 ~ - o :2 '"l:1 t"" ~ C'} > ~ = N -...J ~~ &Lo tfjS o~ ~o o~ ~~ ~"'tl ~~ _3: :2~ C'}~ ;g~ 00< C1- ~~ ~o ~~ ..., - o :2 L $: ...... ...... ...... 0 ....... ....... ....... ~ ...... ...... ...... OVl ....... ....... ....... ~ e; ...... ...... ...... \0 \0 \0 .... 0 \0 \0 \0 o S 0"1 -..J \0 0 0 .... ~ Vl Vl -..J ><> 0"1 \0 ...... vo .v~ v...... ~ (") 0...... W Vl - C ..-..... en c: ~ ~ ~ W 00 o 0 '-' vo ~ voo liS 0 . W -..J...... .....,e!. WO"lVl ~ l'~ ~ ~ Vl ;. 2 ...... tv...... g~ vVl ':....J Vw 00 ...... 00 q' e: CT -..J tv 00 ->'-' v-..J Vtv Vo ~g ......~-..J Vl 0 ~ -S~ - ,-... ,-... ~ ...... ...... ...... '-"'C e ~O"I\O -~ v-..J v-..J .c;r~~~ ...... 0 Vl 0"1 ...... 0 Vw Vtv V-..J ~t""'l'o. ...... w ~ '-',-, 8.. 00 0"1 ...... '-' '-' '-' ...... ...... ...... -~'Tj w w w ~. 5 ~\Ooo ........... ~;.....~ a- _. 0. ~~~ ,-,08.. ~ 0\ V. Vl '"On Vw "..- V-..J ~~- ~O"I\O ("tI (") Vl Vl .~ o .., '-' '0 "..- VVl =8.. -..J -..J Vl WN~ n'"O --- ,......., ~ 0 e tv W W CT~R~ tv tv ~ :--J~~ ~8..al' tv W \0 ::: ;;' ~ ~ ?!.?!.?!. (") ~ ("tI en '-' '-' '-' ....... 0 ~ ~~ en -1 ::l"::l" o 0 ~ e\ . en o .... en 8- ...... ~ .... n' en ~ ~ ~ 0- o <: ("tI iil ~ a "0 ~ ~ en en o liS ~ 0. ...... ~ .... n' en 0. ("tI ~ s' 8.. ~ en "0 ~ o ....., & o ~ (") = ~. e!. <: ~ i:' ~ .... g' 't:l ("tI S> ~ g & ("tI 0. ~ 0.-1 ~ ::l" ("tI 0 S ~ S' = 8.. ~. c: ~ en ...... ~'g' g-S: "'t:l(TQ .., S 8.0 o & (") 0 (to. 0. eg- o 0 _. en nO .., 0 o .... 0..0. _. 0 .... .... ....,0 5 ~. s:o (TQ ~ 3:~ ("tI (") &= 8. ~. . e!. ~ (") (") 2 8.. ...... ;. [ ~. 'Tl Sl "0 .a o en o en o ....., & in. .... ~ a- ver g- ~ (") 2 ~. e!. ~ g 2 8.. ...... ;. [ q' ~ en I I. I I I I I I I I- I I I . . - . - I .. .. . . - - . AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS Investment Return: Salary Increases: Mortalitv: Healthy Lives Disabled Lives Temlination: Disabilitv: Retirement: COLA Increases: Asset Method: Funding Method: 8.0% per annum. 5.5% per annum. 1983 Group Annuity Mortality Table, sex-distinct male and female rates. 1965 Railroad Board Ultimate Mortality Table An experience-based, age-related set of rates; sample rates as follows: Probability Probability Age of Termination Age of Termination 20 6.64% 40 4.04% 25 5.35% 45 3.57% 30 4.93% 50 2.17% 35 4.61% 55 1.38% Rates of disability are based on published studies cond'.lcted by the Social Security Administration; sample rates as follows: Male Probability Female Probability Age of Disabilitv Age of Disability 20 0:13% 20 0.04% 30 0.21% 30 0.16% 40 0.44% 40 0.39% 50 1.09% 50 0.94% 60 2.90% 60 1.93% All participants are assumed to retire at normal retirement, or current age if later. CPI is assumed to increase 4.0% per annum. The actuarial value of assets has been set equal to the expected actuarial value of assets plus 20% of the difference between the expected actuarial value and the actual market value of assets. The aggregate cost methOd. Under this method, the excess of the present value of projected future benefits over the actuarial value of assets is spread over the average future working lifetime of the participants as a level percentage of payroll. 8 I I. I I I I I I I .- I I - !!! . . -- . - . . . I- . . . - - . AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN SUMMARY OF PLAN PROVISIONS Effective Date: March 1, 1949. Eligible Emplovees: Service: Employee Contributions: Average Earnings: Accrued Benefit: Normal Retirement: Eligibility Benefit Early Retirement: Eligibility Benefit Regular, full-time City employees llired after 1949 and before 1987, excluding all employees of University Hospital, Sinking Fund Commission, the recorder, the assistant recorder, and elected officials. The period of continuous County service from date of llire to termination date during wllich the participant made any required employee contributions. After-tax contribution of 8.0% of total compensation (5.0% ifllired prior to 7/1/80). The average annual pay rate during the last three years of employment. 2.15% of average earnings times service (maximum of 30 years), plus 1.5% of average earnings times service in excess of 30 years. For police and fire employees, the later of attainment of age 55 and completion of 25 years of service. For all other employees, the later of attainment of age 60 and completion of 25 years of service. If an employee is permanently separated involuntarily by the City, without fault on the employee's part, normal retirement is the date of termination if they have completed at least 20 years of service. The accrued benefit as of the date of termination. Any date no more than five years prior to normal retirement, after completing at least 20 years of service. (a) A deferred benefit commencing at normal retirement equal to the accrued benefit at termination, or (b) an immediate benefit equal to the accrued benefit at termination, reduced by 0.5% for each month that payments commence prior to normal retirement. 9 I I,., I I I I I I I I- - . . - - - - - . . . . . AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN Disabilitv SuMMARy OF PLAN PROVISIONS Pre-fl~tirement Death Vesting Schedule: Termination: If the employee's disability occurs after completion of ten years of service, the benefit equals the accrued benefit minus any Workers' Compensation payments. If the employee suffers an employment-related disability, the ten year service requirement is waived and the benefit paid will not be less than 50% of average earnings minus any Workers' Compensation payments not specifically awarded for medical expenses. Benefit commences immediately after Board approval of disability. If death occurs prior to eligibility for plan benefits, benefit is a refund of employee contributions. If death occurs after meeting eligibility for benefits but prior to attaining age 55 and completing ten years of service, benefit equals survivor's portion of a joint and survivor annuity that is equivalent to the participant's accrued benefit, if elected by the employee. If the employee "attains age 55 and completes ten years of service prior to death, the survivor's portion of a 100% joint and survivor annuity, calculated as though he had retired under that annuity option immediately prior to death. Attained Age 45 with at Least Service of < 15 15 16 17 18 J9 20 or more Vesting Percentage 0% 50% 60% 70% 80% 90% 100% If the participant has not completed 10 years of service, benefit equals the employee's contributions. If the participant has completed at least 10 years of service, a deferred benefit equal to their accrued benefit at termination times their vesting percentage, with benefits commencing at normal retirement. 10 I I. I I I I' I I I ... -~'- ... - AUGUSTA-RICHMOND COUNTY CITY 1949 PENSION PLAN SUMMARY OF PLAN PROVISIONS Normal Form: Straight life annuity to the participant. Cost.-of-Living: Annual cost-of-living adjustments are provided, effective each April 1st for all benefits in payment status for at least one year, equal to the change in the Consumer Price Index during the preceding calendar year, but not to exceed 5.0% in any year without Council approval. No change will be made if the CPI change is an increase of less than 2.0% or a decrease of less than 5.0%, though the change will be aggregated with the CPI increase in future years. II I I. I I I I I I I I- I I I I I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN ACTUARIAL VALUATION AS OF JANUARY 1, 1999 CBIZIPENSION SERVICE COMPANY . 1100 Circle 75 Parkway Suite 300 Atlanta, Georgia 30339 (770) 952-5225 I I15C I I I I I I I Ie I I I I I I I. I I March 7, 2000 Augusta-Richmond County Pension Committee Ladies and Gentlemen: Re: January 1, 1999 Actuarial Valuation for the Augusta-Richmond County 'County 1977 Plan' (the Plan) This report presents the results of the actuarial valuation of the plan for the 1999 plan year, based on census information as of January 1, 1999. The primary function of the actuarial valuation report is to document the minimum required employer contribution to the plan, as well other actuarial calculations and the basis of the actuarial valuation. The results of this actuarial valuation will also serve as the basis for the calculation of the annual pension cost and pension obligations required by the Governmental Accounting Standards Board. The required contribution for the 1999 plan year is $1,124,928. This amount represents 4.6% of covered payroll. The required contribution rate determined in the prior valuation was 3.5% of participant payroll. Georgia law (PL 47-20) sets minimum funding standards for state and .local government-sponsored defined benefit pension plans in Georgia. The results of this valuation satisfies the State's funding requirement and can be used to establish the funding requirement for the 2000 and 2001 calendar years. The pension plan and the employer are subject to the reporting requirements of Statements 25 and 27, respectively, of the Governmental Accounting Standards Board (GASB). GASB 25 defines the financial reporting standards for the pension plan. A separate report that contains the required GASB 25 current and historical plan obligations, funding levels, and contribution amounts will be provided at a later date. 1100 Circle 75 Parkway, Suite 300, Atlanta. Georgia 30339, 770.952.5225, 770.563.9356Jox, 800.736.7166, e-mail: pensionservice@minclspring.com A t I (1 n t (1 Au s tin B 0 .\' t- () II Columbus San t a Barbara A Dil'ision oj The Benefit Marketing Group. Inc. I. I. I I I I I I I I. I I I I I I I. I I Augusta-Richmond County Marclt 7, 2000 Page 2 GASB 27, which is effective for periods beginning after June 15, 1997, defines the standards of accounting and financial reporting for pension plan costs and obligations in the county's financial reports. All required GASB 27 inforlnation is provided in this report. Based on the results of this valuation, the annual pension cost that must be recognized in the county's financial report equals $1,124,928. The annual pension cost will not equal the State required contribution in all years. I believe the methods and assumptions used to determine the annual contribution to the plan are, in the aggregate, reasonable, considering the historical experience of the plan and reasonable expectations for the future. CBIZ/Pension Service Company relied on the following information in preparing the actuarial valuation results presented in this report: (a) Active and inactive participant census data as of January 1, 1999 provided by Augusta-Richmond County. Page 3 contains a statistical summary of the census data. (b) Plan provisions as of January 1, 1999 as contained in the plan document provided to the actuary by Augusta-Richmond County (summary begins on page 9 of this report). (c) The value of plan assets as of January 1, 1999 was furnished by the Augusta- Richmond County Staff and is shown on page 2 of this report. The assets used for valuation purposes include any contribution receivables due for prior plan years. A summary of the actuarial methods and assumptions used in this actuarial valuation begins on page 8 of this report. I Ie, I I I I I I I I- I I I I I I I. I I Augusta-Richmond County March 7, 2000 Page 3 CBIZ/Pension Service Company is available to answer any questions regarding this report. . Sincerely, ,;;~~ Paul Roberts, EA Chief Actuary I I- I I I I I I I I- I I I I I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN TABLE OF CONTENTS Development of Annual Contribution Reconciliation of Plan Assets Active and Inactive Participant Statistical Infonnation Infonnation for Financial Statements GASB 27 Notes to Financial Statements GASB 27 Required Supplementary Infonnation: Schedule of Funding Progress Summary of Actuarial Methods and Assumptions Summary of Main Plan Provisions for Valuation Purposes Page 1 Page 2 Page 3 Page 4 Page 5 Page 7 Page 8 Page 9 I I. I I I I I I I I- I I I I I I I 5. . I I AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN DEVELOPMENT OF.ANNUAL CONTRIBUTION FOR THE PLAN YEAR ENDING DECEMBER 31, 1999 1. Participant Counts as of January 1, 1999 a. Active Participants b. Retirees and Disableds c. Deferred Vested (former employees) 2. Present Value of Future Benefits as of January 1, 1999 a. Active Participants b. Retirees and Disableds c. Deferred Vested (former employees) Total 3. Aduarial Value of Assets as of January 1, 1999 a. Fund Balance as of the Beginning of the Plan Year b. Net Contributions Receivable as of the Beginning of the Plan Year Total 4. Derivation of Required Employer Contribution .a. Present Value of Future Benefit Payments b. Actuarial Value of Plan Assets c. Present Value of Future Employee Contributions d. Present Value of Future Employer Contributions = [(a) - (b) - (c)], but not less than $0 e. Present Value of Future Payroll f Employer's Normal Cost Percentage = [(d I (e)] g. . Current Active Participants' Payroll h. Required Employer Contribution = [(f) x (g)] Employer Contribution as a Percentage of Payroll 1 987 51 10 $24,505,256 5,981,173 1,928 $30,488,357 $9,976,793 o $9,976,793 $30,488,357 9,976,793 9,619,015 10,892,549 $238,008,952 4.6% $24,454,857 $ 1,124,928 4.6% I I- I I I I I I I I_ 4. I I I I I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN RECONCILIATION OF PLAN ASSETS 1. l\1[arket Value of Plan Assets as of January 1, 1998 $ 8,236,242 2. Changes in Assets During the Year a. Employer Contributions b. Employee Contributions c. Net Investment Income 897,930 1,057,428 485,952 ( 636,954) ( 63,805) $ 1,740,551 d. Benefits Paid Administrative Fees Paid. Total Changes e. f 3. l\1[arket Value of Plan Assets as of January 1, 1999 $9,976,793 Contributions Receivable from the County $ 0 5. Actuarial Value of Assets as of January 1, .1999: (3) + (4) $ 9,976,793 2 I I. I I I I I I I I- I I I I . AUGUSTA-RICHMOND COUNTY COuNTY 1977 PENSION pLAN ACTIVE AND INACTIVE PARTICIPANT STATISTICAL INFORMATION AS OF JANUARY 1, 1999 I . I . .. . . - . . Active: Participants a. Number b. Average Age c. Average Service d. Total Covered Earnings Inactive Participants 1. Rdirees (and Beneficiaries) a. Number b. Total Annual Benefits c. Average Annual Benefit 2. Participants with Vested Deferred Benefits a. Number b. Total Annual Benefits c. Average Annual Benefit 3. Disabled Participants Receiving Benefits a. b. Number Total Annual Benefits Average Annual Benefit c. 3 987 39.2 4.1 $24,454,857 51 $ 391,064 $ 7,668 10 $ 32,648 $ 3,265 $ $ o o o I I. I I I I I I I I_ 3. I I I I I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN INFORMA TION FOR FINANCIAL STATEMENTS AS OF JANUARY 1, 1999 1. Actuarial Present Value of Accumulated Plan Benefits a. Vested I. 11. Ill. Retirees (and others in pay status) Deferred Vested (former employees) Vested Active Participants Total $5,981,173 1,928 5,959,577 $11,942,678 b. Nonvested 391,923 Total $12,334,601 2. Effect of Future Salary Increases $1,803,111 Total Actuarial Accrued Liability (Projected Unit Credit) $14,137,712 4. NI~t Assets Available for Benefits (including receivables) $9,976,793 5. Net Assets in Excess of Actuarial Present Value of Accumulated Plan Benefits ($2,3579808) 6. Pl'incipal Actuarial Assumptions a. Investment Return b. Rate of Future Salary Increases. (not applicable to Accumulated Plan Benefits calculations) 8.0% 5.0% 4 I Ie I I I I I I I Ie I I I I I I I --- I I '\ AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN GASB 27 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR BEGINNING JANUARY 1, 1999 Note X. Pension Plan The employer sponsors County 1977 ~lan (The Plan), which is a single-employer defined benefit pension plan. The Plan provides retirement, disability, and death benefits to plan participants and beneficiaries, as well as automatic cost-of-living adjustments. The plan was closed to new participants effective December 31, 1997. The Plan was initially established by the Richmond County Commission, prior to its consolidation with the City of Augusta. The Plan can be amended by the Augusta-Richmond County Commission by passage of a resolution by its members. The Plan is administered by CBIZ/Pension Service Company. Fundi,ng Policy: The employer is required to contribute an actuarially determined amount annually to The Plan's trust. The contribution amount is determined using actuarial methods and assumptions approved by The Plan's trustees and must satisfy the minimum contribution requirement contained in State of Georgia statutes. Annual Pension Cost: The employer's annual pension cost and net pension obligation for the pension plan for the current year were determined as follows: January 1. 1999 Deriv2lltion of Annual Pension Cost" Annual Required Contribution Interest on Net Pension Obligation Amortization of Net Pension Obligation Annual. Pension Cost $ 1,124,928 o o $ 1,124,928 Derivaltion of Net Pension Obli2ation Annual Pension Cost for Prior Year Actual Contributions to Plan for Prior Year Increase in Net Pension Obligation Net Pension Obligation as of January 1, 1998 Net Pension Obligation as of January 1,1999 $ 897,930 897,930 $ 0 $ 0 $ 0 5 I I. I I. I I I I- I I- I I I I I I I- I. Ii AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN GASB 27 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR BEGINNING JANUARY 1, 1999 Basis of Valuation: Current Valuation Date: Annual Return on Invested Plan Assets Projected Annual Salary Increases Expected Annual Inflation Actuarial Value of Assets Actuarial Funding Method January 1, 1999 8.0% 5.0% 5.0% Market Value Aggregate Method The current funding method does not determine an actuarial liability; there was no unfunded actuarial liability as of January 1, 1999 Trend Information for The Plan Fiscal Annual Actual Percentage Net Year Pension County of APC Pension Beginning Cost (APC) Contribution Contributed Obligation 01/01/1999 $ 1,124,928 N/A N/A $ 0 01/01/1998 897,930 897,930 100.0% 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 6 I I -I I I I I I I _I I I I I I I I -I I > C~ ~ C CI':l .~ ).. I 2: (") == ~ C:~ ~ ('1 C:~ c" ~~ ~~ .... ... ~ o ~ 0< - \C -...J -...J "'tl tfj :2 ~ - o :2 "'tl t"" ~ C'} ~ = N -J ~~ =,0 tfjS O~ ~~ O~ ~sa ~"'l:l ~~ _3: :2tfj C1~ ;g~ 0><: C1- ~~ ~O ~~ ..., - o :2 L $: ...... ...... ...... 0 ............ ....... ~ ...... -...... I:) Vl ....... ....... ....... ~ e; - -- \0 \0 \0 .... 0 \0 \0 \0 o 3 0"1 -..J \0 0 0 .... ~ Vl 0"1 \0 ><> v~ Iv v\o ~ (") ~OO-..J ~ a- i: c;' O"IVlO"l o 0 ~ '-' "w v-..J v-..J liS 0 ~. oow\O ....., ...... ON W "'t:l .., > ~ ..2. l' n ...... ~ ;. 2 ~ Vo ~ .... 0- ~ Vw "'Vl ....~ 8..::.; . q' ~- W - W C -a- NO -..J 2->'-' vo vVl V-..J . ~ (") N 00 - .... (") ~VlN Q1'2 8.. '-' 8.. _. .... --~ - ~ C e ...~ -......J......... ~~~~ _-..JO"I ~VlO Vw v...... V\O ~t""'t""'o. Vl~- '-',-, 8.. O"I-..J\O '-' '-' - - -~'Tj N...... -..J ~ 5 Vl ~ 0 ~;""'a-. ;;: r;t. 0. ?!.~~ ,-,08.. ~ ...... N 00 ...... ~ "'t:ln V\O VVl v~ ~~- VlOVl o (") N \0 ~ 0"''-' Iv V\O Voo ==8.. N -..J Vl ~.~ -..J ~"'t:l ,-... ,-... ,.......,~("tIC ...... ...... CT~R~ NO"I-..J ~8..al' ~~o '-' "'t:l ~ ....... (TQ el ~~~ ~ 0 '-' '-' ~~ 0 ~ ~....., en -1 ::l"::l" o ("tI ~ el . en ("tI liS [ ...... ~ ;:+. n' en en ::l" ~ ~ 0- ~ o .., o ::::l a '2. ~ ~ en en ~ 8- ...... ~ .... n' en 0. ~ ~. 8.. el "0 ~ o ....., & ("tI .~ (") a- ~. e!. <: e!. c: ~ .... ~r 't:l ("tI ~ ~ g g- o. r:; ("tI ~ -1 ~ ::l" en 0 o.~ o (") (t a- S ~. _. ~ o - o o.g' ~. 0. S'S' (TQ(TQ &S ("tI 0 "'t:l& .9.&. ("tI c: (") en .... 0 8..0. co. ::3 ~ _. en n~ .., 0 8.~ .... ("tI .... .... 'Tj("tl 8. ~. S. 0 (TQ ~ 3:~ ("tI (") &a- &. ~. !:!.. ~ (") (") 2 8.. - ~ ~. 'Tj o .., "0 .a o en o en o ....., ~ en .... ~ a- ver & o ~ (") a- ~. e!. ~ [ ...... ~ q' I I. I I I I I I I I- I I I I I I I. I I AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN SUMMARY OF ACTUARIAL ASSUMPTIONS AND METHODS Investment Return: 8.0% per annum. Salaxv Increases: Mortalitv: Temunation: Disabilitv: Retirement: COLA Increases: Asset Method: Funding Method: 5.0% per annum. 1983 Group Annuity Mortality Table, sex-distinct male and female rates. An experience-based, age-related set of rates; sample rates as follows: Probability Probability Age of Termination Age of Termination 20 31.4% 40 5.1% 25 16.1% 45 3.1% 30 9.6% 50 0.8% 35 7.0% 55 0.6% Rates of disability are based on published studies conducted by the Social Security Administration; sample rates as follows: Male Probability Female Probability Age of Disabilitv Age of Disabilitv 20 0.04% 20 0.02% 30 0.10% 30 0.07% 40 0.23% 40 0.18% 50 0.64% 50 0.50% 60 2.24% 60 1.41% All participants are assumed io retire at the earlier of (1) age 65, (2) the later of attainment of age 62 and the completion of 25 years of service. CPI is assumed to increase 5.0% per annwn. The actUarial value of assets has been set equal to market value. The aggregate cost method. Under this method, the excess of the present value of projected future benefits over the actuarial value of assets is spread over the average future working lifetime of the participants as a level percentage of payroll. 8 I I- I I I I I I I I- I I I I I I I- I I AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN SUMMARY OF PLAN PROVISIONS Effe:tive Date: January 1, 1977. Eligible Employees: Service: Earnings: Emoloyee Contributions: Average Earnings: Accrued Benefit: Normal Retirement: Eligibility Benefit Early Retirement: Eligibility Benefit Regular, full-time County employees, including employees of the Richmond County Water and Sewer System, but excluding employees of the Department of Health, the Department of Family and Children's Services (except those eligible for coverage under the County Merit System), and any employees covered by the County 1945 Pension Plan. Years and complete months of County service from the later of January 1, 1977 or the employee's County employment date, excluding any periods during wllich the employee did not make any required contributions to the plan. The first three months of County service are excluded for employees llired after December 31, 1992. Total compensation paid to an employee, including pre-tax employee contributions to the plan. Pre-tax contribution of 4.0% of total compensation. Employee contributions will be accumulated with interest at a rate of 5.0% per annum. The average of earnings during the five consecutive calendar years immediately preceding termination of employment. 1.0% of average earnings times service. The earlier of (1) attainment of age 65 and (2) the later of attainment of age 62 and the completion of 25 years of service. The accrued benefit as of the date of termination. The later of attainment of age 50 and completion of 15 years of service. (a) A deferred benefit commencing at normal retirement equal to the accrued benefit at termination, or (b) an i mmedJ ate benefit equal to the accrued benefit at termination, reduced by 5/12% for each month that payments commence prior to normal retirement. 9 - - - AUGUSTA-RICHMOND COUNTY COUNTY 1977 PENSION PLAN Disabilitv SuMMARY OF PLAN PRovisIONS Pre-retirement Death Vesting Percentage: Termination: Normal Form: Cost--of-Livinl!.: If the employee suffers an employment-related disability, benefit equals 25% of average earr1ings minus any Workers' Compensation payments, payable upon approval of disability. .If the employee's diSability is not employment-related, benefit equals their vested accrued benefit at time of disability less any Workers' Compensation payments, payable upon - , If death was employment-related, benefit equals 25% of average earr1ings at the time of death, commencing immediately after Workers' Compensation payments cease. Benefit is payable until the surviving spouse dies or remarries, or until unmarried children attain age 18. If death was not work-related, benefit equals the employee's contributions to the plan with interest. 0% if less than 5. years of service are completed: otherwise, 100%. If the participant has not completed 5 years of service, benefit equals the employee's contributions with interest. If the participant has completed at least 5 years of service, a deferred benefit equal to their accrued benefit at termination, with benefits commencing at normal retirement. Straight life annuity to the participant. Annual cost-of-living adjustments are provided, effective each March 1st, equal to the change in the Consumer Price Index during the preceding calendar year, but not to exceed 5.0% in any year. 10