ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 97
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 5 - Pension Funds (Continued)
Significant Actuarial Assumptions
The following is a summary of actuarial methods and significant actuarial assumptions used in
the latest actuarial valuations:
Police
Funding method
Entry age normal
Amortization method
Level dollar, closed
Remaining amortization period 19 years
4-year average market value return
Actuarial asset method
Inflation
2.50% per year
Salary increases
6.0% per year
Investment rate of return
7.00% per year
Mortality
The same versions of Pub-2010
Headcount-Weighted Mortality Tables
as used by the FRS for Special Risk
Class members in their July 1, 2020
actuarial valuation(with mortality
improvements projected for healthy
to all future years after 2010, using
Scale MP-2018).FL Statutes Chapter
1112.63(1)(f) mandates this use
of mortality tables from one of the two
most recently published FRS actuarial
valuation reports.
Fire
Entry age normal
New UAAL amortization bases are amortized
over 15 years (as of 9/30/2021)
4-year average market value return
2.50% per year
Service based
7.55% per year
Pub- S.H - 2010 Mortality Table
for Annuitants, Projected
with Scale MP-2018
Investments Held
Investments are reported at Fair Market Value. Securities traded on a national or
international exchange are valued at current exchange rates at the last reported sales
price. Investments that do not have an established market are reported at estimated fair
value.
Authorized investments are governed by Florida Statutes and each Plan’s investment
policy. All plan investments are held by an outside third-party custodian who determines
what instruments to purchase based on the plan’s investment policy. Investments are
held, and the return earned is reviewed quarterly by the pension board of the respective
plan.
The remainder of the page was intentionally left blank.
87