SCHEDULE OF CHANGES IN THE EMPLOYER’S
NET PENSION LIABILITY AND RELATED RATIOS
GASB Statement No. 67
BOTH GROUPS COMBINED
Fiscal year ending September 30,
Total Pension Liability
Service Cost
Interest
Benefit Changes
Difference between actual & expected experience
Assumption Changes
Benefit Payments
Refunds
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Member
Net Investment Income
Benefit Payments
Refunds
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
Covered Payroll
Net Pension Liability as a Percentage
of Covered Payroll
2015
2016
$
$
$
$
$
4
2,436,662 $
8,589,099
919,577
(4,765,856)
(90,700)
7,088,782
114,512,936
121,601,718
$
2014
2,362,103 $
8,226,687
(951,982)
(4,825,584)
(76,271)
4,734,953
109,777,983
114,512,936
$
2,382,827
7,757,589
339,410
(11,788)
(3,402,740)
(80,753)
6,984,545
102,793,438
109,777,983
3,579,564 $
855,750
8,256,527
(4,765,856)
(90,700)
(76,290)
7,758,995
90,669,463
98,428,458 $
3,587,473 $
841,210
1,129,441
(4,825,584)
(76,271)
(76,529)
579,740
90,089,723
90,669,463 $
3,135,003
843,795
7,818,201
(3,402,740)
(80,753)
(65,422)
8,248,084
81,841,639
90,089,723
23,173,260
23,843,473
19,688,260
80.94 %
20,342,498 $
79.18 %
19,872,181 $
82.07 %
20,095,813
113.92 %
119.98 %
97.97 %
SCHEDULE OF CHANGES IN THE EMPLOYER’S
NET PENSION LIABILITY AND RELATED RATIOS
GASB Statement No. 67
CITY EMPLOYEES
Fiscal year ending September 30,
2016
2015
2014
Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
$
$
66,783,944
71,976,057
$
$
64,022,520
66,783,944
$
$
59,949,133
64,022,520
Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
$
$
52,878,430
58,259,804
$
$
52,540,327
52,878,430
$
$
47,730,044
52,540,327
Net Pension Liability - Ending (a) - (b)
$
13,716,253
$
13,905,514
$
11,482,193
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
Covered Payroll
80.94 %
$
13,653,004
Net Pension Liability as a Percentage
of Covered Payroll
Allocation Determination:
Actuarial Determined Employer Contribution (City)
Total Actuarially Determined Employer Contribution
Allocation Percentage - City Employees
79.18 %
$
100.46 %
$
$
2,118,586
3,579,564
59.19 %
12,852,164
82.07 %
$
12,757,869
108.20 %
$
$
2,159,834
3,703,412
58.32 %
90.00 %
$
$
2,159,834
3,703,412
58.32 %
Note: The Total Pension Liability, the Plan Fiduciary Net Position, and the Net Pension Liability are
allocated by group based on the actuarially determined employer contributions for each group.
5
SCHEDULE OF CHANGES IN THE EMPLOYER’S
NET PENSION LIABILITY AND RELATED RATIOS
GASB Statement No. 67
TOHO EMPLOYEES
Fiscal year ending September 30,
2016
2015
2014
Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
$
$
47,728,992
49,625,661
$
$
45,755,463
47,728,992
$
$
42,844,305
45,755,463
Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
$
$
37,791,033
40,168,654
$
$
37,549,396
37,791,033
$
$
34,111,595
37,549,396
Net Pension Liability - Ending (a) - (b)
$
9,457,007
$
9,937,959
$
8,206,067
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
Covered Payroll
80.94 %
$
6,689,494
Net Pension Liability as a Percentage
of Covered Payroll
Allocation Determination:
Actuarial Determined Employer Contribution (Toho)
Total Actuarially Determined Employer Contribution
Allocation Percentage - Toho Employees
79.18 %
$
141.37 %
$
$
1,460,978
3,579,564
40.81 %
7,020,017
82.07 %
$
141.57 %
$
$
1,543,578
3,703,412
41.68 %
7,337,944
111.83 %
$
$
1,543,578
3,703,412
41.68 %
Note: The Total Pension Liability, the Plan Fiduciary Net Position, and the Net Pension Liability are
allocated by group based on the actuarially determined employer contributions for each group.
6
SCHEDULE OF THE EMPLOYER’S NET PENSION LIABILITY
GASB Statement No. 67
BOTH GROUPS COMBINED
FY Ending
September 30,
Total
Pension
Liability
Plan Net
Position
2014
2015
2016
$109,777,983
114,512,936
121,601,718
$90,089,723
90,669,463
98,428,458
Net Pension
Liability
Plan Net Position
as a % of Total
Pension Liability
Covered
Payroll
$19,688,260
23,843,473
23,173,260
82.07%
79.18%
80.94%
$20,095,813
19,872,181
20,342,498
7
Net Pension Liability
as a % of
Covered Payroll
97.97%
119.98%
113.92%
SCHEDULE OF THE EMPLOYER’S NET PENSION LIABILITY
GASB Statement No. 67
CITY EMPLOYEES
FY Ending
September 30,
Total
Pension
Liability
Plan Net
Position
Net Pension
Liability
Plan Net Position
as a % of Total
Pension Liability
Covered
Payroll
2014
2015
2016
$64,022,520
66,783,944
71,976,057
$52,540,327
52,878,430
58,259,804
$11,482,193
13,905,514
13,716,253
82.07%
79.18%
80.94%
$12,757,869
12,852,164
13,653,004
Net Pension Liability
as a % of
Covered Payroll
90.00%
108.20%
100.46%
Note: The Total Pension Liability, the Plan Fiduciary Net Position, and the Net Pension Liability are
allocated by group based on the actuarially determined employer contributions for each group.
8
SCHEDULE OF THE EMPLOYER’S NET PENSION LIABILITY
GASB Statement No. 67
TOHO EMPLOYEES
FY Ending
September 30,
Total
Pension
Liability
Plan Net
Position
Net Pension
Liability
Plan Net Position
as a % of Total
Pension Liability
Covered
Payroll
2014
2015
2016
$45,755,463
47,728,992
49,625,661
$37,549,396
37,791,033
40,168,654
$8,206,067
9,937,959
9,457,007
82.07%
79.18%
80.94%
$7,337,944
7,020,017
6,689,494
Net Pension Liability
as a % of
Covered Payroll
111.83%
141.57%
141.37%
Note: The Total Pension Liability, the Plan Fiduciary Net Position, and the Net Pension Liability are
allocated by group based on the actuarially determined employer contributions for each group.
9
NOTES TO SCHEDULE OF THE EMPLOYER’S NET PENSION LIABILITY
GASB Statement No. 67
BOTH GROUPS COMBINED
Valuation Date:
Measurement Date:
October 1, 2015
September 30, 2016
Methods and Assumptions Used to Determine Net Pension Liability:
Entry Age Normal
Actuarial Cost Method
3.00%
Inflation
4.00% to 6.50% depending on service, including inflation
Salary Increases
7.50%
Investment Rate of Return
Retirement Age
Experience-based table of rates that are specific to the type of eligibility
condition.
Mortality
RP-2000 Combined Healthy Participant Mortality Table for males and
females with mortality improvement projected to all future years after
2000 using Scale AA.
Other Information:
Notes
See Discussion of Valuation Results from October 1, 2015 Actuarial
Valuation Report.
10
SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
BOTH GROUPS COMBINED
FY Ending
September 30,
2014
2015*
2016
Actuarially
Determined
Contribution
Actual
Contribution
$ 3,126,851
3,703,412
3,579,564
$ 3,135,003
3,587,473
3,579,564
Contribution
Deficiency
(Excess)
$
(8,152)
115,939
-
Covered
Payroll
$ 20,095,813
19,872,181
20,342,498
Actual Contribution
as a % of
Covered Payroll
15.60%
18.05%
17.60%
* The prepaid contributions from the fiscal years ended September 30, 2013 and September 30, 2014
(which totaled $115,939) were applied to meet the remainder of the actuarially determined contribution
for the fiscal year ended September 30, 2015.
11
SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
CITY EMPLOYEES
FY Ending
September 30,
2014
2015*
2016
Actuarially
Determined
Contribution
Actual
Contribution
$ 1,979,916
2,159,834
2,118,586
$ 1,983,855
2,087,687
2,118,586
Contribution
Deficiency
(Excess)
$
(3,939)
72,147
-
Covered
Payroll
$ 12,757,869
12,852,164
13,653,004
Actual Contribution
as a % of
Covered Payroll
15.55%
16.24%
15.52%
* The prepaid contributions from the fiscal years ended September 30, 2013 and September 30, 2014
(which totaled $72,147) were applied to meet the remainder of the actuarially determined contribution
for the fiscal year ended September 30, 2015.
12
SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
TOHO EMPLOYEES
FY Ending
September 30,
2014
2015*
2016
Actuarially
Determined
Contribution
Actual
Contribution
$ 1,146,935
1,543,578
1,460,978
$ 1,151,148
1,499,786
1,460,978
Contribution
Deficiency
(Excess)
$
(4,213)
43,792
-
Covered
Payroll
$ 7,337,944
7,020,017
6,689,494
Actual Contribution
as a % of
Covered Payroll
15.69%
21.36%
21.84%
* The prepaid contributions from the fiscal years ended September 30, 2013 and September 30, 2014
(which totaled $43,792) were applied to meet the remainder of the actuarially determined contribution
for the fiscal year ended September 30, 2015.
13
NOTES TO SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
BOTH GROUPS COMBINED
Valuation Date:
Notes
October 1, 2014
Actuarially determined contributions are calculated as of October 1, which
is 15 months prior to the expected contribution date. Contributions are
recognized in the fiscal year in which they are received.
Methods and Assumptions Used to Determine Contribution Rates:
City of Kissimmee Employees: Entry Age Normal
Actuarial Cost Method
Toho Employees: Aggregate
City of Kissimmee Employees: Level Dollar, Closed
Amortization Method
Toho Employees: Not applicable
Remaining Amortization Period City of Kissimmee Employees: 15 years (single equivalent period)
Toho Employees: Not applicable
Asset Valuation Method
The asset valuation method recognizes 20% of the difference between the
market value of assets and the expected actuarial asset value.
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Other Information:
Notes
3.00%
4.00% to 6.50% depending on service, including inflation
7.50%
Experience-based table of rates that are specific to the type of eligibility
condition.
RP-2000 Combined Healthy Participant Mortality Table for males and
females with mortality improvement projected to all future years after
2000 using Scale AA.
See Discussion of Valuation Results from October 1, 2014 Actuarial
Valuation Report.
14
NOTES TO SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
CITY EMPLOYEES
Valuation Date:
Notes
October 1, 2014
Actuarially determined contributions are calculated as of October 1, which
is 15 months prior to the expected contribution date. Contributions are
recognized in the fiscal year in which they are received.
Methods and Assumptions Used to Determine Contribution Rates:
Entry Age Normal
Actuarial Cost Method
Level Dollar, Closed
Amortization Method
Remaining Amortization Period 15 years (single equivalent period)
The asset valuation method recognizes 20% of the difference between the
Asset Valuation Method
market value of assets and the expected actuarial asset value.
3.00%
Inflation
4.00% to 6.50% depending on service, including inflation
Salary Increases
7.50%
Investment Rate of Return
Retirement Age
Experience-based table of rates that are specific to the type of eligibility
condition.
Mortality
RP-2000 Combined Healthy Participant Mortality Table for males and
females with mortality improvement projected to all future years after
2000 using Scale AA.
Other Information:
Notes
See Discussion of Valuation Results from October 1, 2014 Actuarial
Valuation Report.
15
NOTES TO SCHEDULE OF CONTRIBUTIONS
GASB Statement No. 67
TOHO EMPLOYEES
Valuation Date:
Notes
October 1, 2014
Actuarially determined contributions are calculated as of October 1, which
is 15 months prior to the expected contribution date. Contributions are
recognized in the fiscal year in which they are received.
Methods and Assumptions Used to Determine Contribution Rates:
Aggregate
Actuarial Cost Method
Not applicable
Amortization Method
Remaining Amortization Period Not applicable
The asset valuation method recognizes 20% of the difference between the
Asset Valuation Method
market value of assets and the expected actuarial asset value.
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Other Information:
Notes
3.00%
4.00% to 6.50% depending on service, including inflation
7.50%
Experience-based table of rates that are specific to the type of eligibility
condition.
RP-2000 Combined Healthy Participant Mortality Table for males and
females with mortality improvement projected to all future years after
2000 using Scale AA.
See Discussion of Valuation Results from October 1, 2014 Actuarial
Valuation Report.
16
SINGLE DISCOUNT RATE
GASB Statement No. 67
BOTH GROUPS COMBINED
A single discount rate of 7.50% was used to measure the total pension liability. This single discount rate
was based on the expected rate of return on pension plan investments of 7.50%. The projection of cash
flows used to determine this single discount rate assumed that plan member contributions will be made at
the current contribution rate and that employer contributions will be made at rates equal to the difference
between the total actuarially determined contribution rates and the member rate. Based on these
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 (7.50%) was applied to all periods of projected benefit payments to determine
the total pension liability.
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following
presents the plan’s net pension liability, calculated using a single discount rate of 7.50%, as well as what
the plan’s net pension liability would be if it were calculated using a single discount rate that is 1percentage-point lower or 1-percentage-point higher:
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
BOTH GROUPS COMBINED
$
1% Decrease
6.50%
37,746,063
Current Single Discount
Rate Assumption
$
7.50%
23,173,260
17
$
1% Increase
8.50%
10,917,544
SINGLE DISCOUNT RATE
GASB Statement No. 67
CITY EMPLOYEES
A single discount rate of 7.50% was used to measure the total pension liability. This single discount rate
was based on the expected rate of return on pension plan investments of 7.50%. The projection of cash
flows used to determine this single discount rate assumed that plan member contributions will be made at
the current contribution rate and that employer contributions will be made at rates equal to the difference
between the total actuarially determined contribution rates and the member rate. Based on these
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 (7.50%) was applied to all periods of projected benefit payments to determine
the total pension liability.
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following
presents the plan’s net pension liability, calculated using a single discount rate of 7.50%, as well as what
the plan’s net pension liability would be if it were calculated using a single discount rate that is 1percentage-point lower or 1-percentage-point higher:
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
CITY EMPLOYEES
$
1% Decrease
6.50%
22,341,895
Current Single Discount
Rate Assumption
$
7.50%
13,716,253
18
$
1% Increase
8.50%
6,462,094
SINGLE DISCOUNT RATE
GASB Statement No. 67
TOHO EMPLOYEES
A single discount rate of 7.50% was used to measure the total pension liability. This single discount rate
was based on the expected rate of return on pension plan investments of 7.50%. The projection of cash
flows used to determine this single discount rate assumed that plan member contributions will be made at
the current contribution rate and that employer contributions will be made at rates equal to the difference
between the total actuarially determined contribution rates and the member rate. Based on these
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 (7.50%) was applied to all periods of projected benefit payments to determine
the total pension liability.
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following
presents the plan’s net pension liability, calculated using a single discount rate of 7.50%, as well as what
the plan’s net pension liability would be if it were calculated using a single discount rate that is 1percentage-point lower or 1-percentage-point higher:
Sensitivity of the Net Pension Liability to the Single Discount Rate Assumption
TOHO EMPLOYEES
$
1% Decrease
6.50%
15,404,168
Current Single Discount
Rate Assumption
$
7.50%
9,457,007
19
$
1% Increase
8.50%
4,455,450