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Contributions and Reserves
The Plan was established by the Board on July 1, 1983 and amended as of January 1, 1997. Pursuant to the Plan Agreement, no contribution shall be required or permitted from any member. Board contributions shall be sufficient to meet the annual pension cost of the Plan and to amortize the unfunded actuarial accrued liability within 30 years based on an actuary study. There are no long-term contracts to the Plan. Periodic employer contributions to the Plan are determined on an actuarial basis using the Entry Age Normal Cost Method. Annual pension cost is funded on a current basis. Pursuant to Section 112.64, Florida Statutes, the unfunded actuarial accrued liability is funded over a 30-year period for participants prior to July 1, 1997 and funded over a 40-year period for the revised plan. Periodic contributions for both normal cost and the amortization of the unfunded actuarial liability are based on the level percentage of payroll method.
Significant actuarial assumptions used to compute annual required contributions are the same as those used to determine the actuarial accrued liability. There have been no contributions to the Plan since fiscal year 2018-2019.
As of June 30, 2021, the actuarial accrued liability for benefits was $16,306,448. The computation of the annual required contribution for the 2020-2021 fiscal year was based on the same: (a) actuarial assumptions, (b) benefit provisions, (c) actuarial funding method and (d) other significant factors used to determine the required annual contributions for the previous fiscal years.
Benefits and refunds are recognized when due and payable in accordance with terms of the Plan. All of the assets in the District’s Pension Trust Fund are legally required reserves. None of the assets have been designated by the Board for any other specific purpose. Costs of administering the Plan are financed through the Plan’s resources (employer contributions and investment earnings).