Laserfiche WebLink
INDIAN RIVER COUNTY, FLORIDA <br />NOTES TO FINANCIAL STATEMENTS - CONTINUED <br />Year Ended September 30, 1990 <br />7. Defined Benefit Pension Plans - Continued: <br />B. Firefighters Pension Plan - Continued <br />The pension benefit obligations were computed as a part of actuarial valuations <br />performed as of October 1, 1990. Significant actuarial assumptions used in the <br />valuation include (a) a rate of return on the investment of present and future <br />assets compounded annually of 6 1/2%, and (b) projected salary increases of 7• a <br />year compounded annually attributable to inflation. <br />Total unfunded pension benefit obligations are as follows: <br />October 1, <br />1990 <br />Pension Benefit Obligation: <br />Retirees and beneficiaries currently <br />receiving benefits and terminated <br />employees not yet receiving benefits $1,255,433 <br />Current employees - <br />Accumulated employee contributions <br />including allocated investment earnings 252,647 <br />Employer -financed vested 1,489,879 <br />Employer -financed nonvested 28,239 <br />Total Pension Benefit Obligation 3,026,198 <br />Net Assets Available for Benefits, at cost 3,0 72,965 <br />Net Assets Over (Under) Pension Benefit <br />Obligation S 46,767 <br />There were no current year changes in actuarial assumptions or benefit pro- <br />visions that would affect the pension benefit obligation. <br />Actuarially Determined Contribution Requirements and Contributions Made - The <br />County's funding policy provides for actuarially determined periodic contribu- <br />tions to the plans. The required contributions are actuarially determined and <br />include normal costs (after deducting expected employee contributions) and the <br />amount of the additional unfunded obligations created due to increases in plan <br />benefits over a period of 40 years. Employer contribution rates are determined <br />using the frozen entry age actuarial funding method. The Firemen's PERS uses <br />the aggregate actuarial cost method which does not produce a past service <br />liability that is amortized over a fixed number of years. Instead, the value of <br />all projected benefit in excess of current asset is paid off over the future <br />working years of the covered employee. Therefore, this method automatically <br />funds the remaining value of benefits while there are still active members. <br />43 <br />