HomeMy WebLinkAbout2015-09-29 - Agendas - Archive City of Fayetteville, Arkansas
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Meeting Agenda - Final Agenda
Tuesday, September 29, 2015
5:30 PM
City Hall Room 219
City Council Special Meeting
Adella Gray Ward 1
Sarah Marsh Ward 1
Mark Kinion Ward 2
Matthew Petty Ward 2
Justin Tennant Ward 3
Martin W. Schoppmeyer, Jr. Ward 3
John S. La Tour Ward 4
Alan Long Ward 4
City Council Special Meeting Meeting Agenda-Final Agenda September 29,2015
Call To Order
Roll Call
Pledge of Allegiance
Mayor's Announcements, Proclamations and Recognitions
City Council Meeting Presentations, Reports and Discussion Items:
2015-0333
PRESENTATION- OLD FIREMEN'S PENSION PLAN
PRESENTATION BY PRB REPRESENTATIVES
Attachments: 2015 LOPFI Consolidation Report 061715
2014 Fire Pension Actuarial Valuation
2010 Agenda Special Fire Pension Meeting 101810
2010 Firemen's Pension Fund Special Report Osborn Carreiro &Associates 11
2010 Firemen's Pension Fund Special Actuarial Study 101810
2010 Firemen's Pension Fund Special Meeting Minutes 101810
Agenda Additions:
Announcements:
Adjournment
City of Fayetteville,Arkansas Page 2 Printed on 912412015
City Council Special Meeting Meeting Agenda-Final Agenda September 29,2015
NOTICE TO MEMBERS OF THE AUDIENCE
All interested persons may address the City Council on agenda items of New and
Old Business. Please wait for the Mayor to request public comment and then
come to the podium, give your name, address, and comments about the agenda
item. Please address only the Mayor. Questions are usually answered by the
Mayor,Aldermen, or Staff after the public comment period is over. Please keep
your comments brief and respectful. Each person is only allowed one turn at the
microphone for discussion of an agenda item.
All cell phones must be silenced and may not be used within the City Council
Chambers.
Below is a portion of the Rules of Order and Procedure of the Fayetteville City
Council pertaining to City Council meetings:
Agenda additions:A new item which is requested to be added to the agenda at a
City Council meeting should only be considered if it requires immediate City
Council consideration and if the normal agenda setting process is not practical.
The City Council may only place such new item on the City Council meeting's
agenda by suspending the rules by two-thirds vote. Such agenda addition shall be
heard prior to the Consent Agenda.
Consent Agenda:Consent Agenda items shall be read by the Mayor and voted
upon as a group without discussion by the City Council. If an Alderman wishes to
comment upon or discuss a Consent Agenda item that item shall be removed and
considered immediately after the Consent Agenda has been voted upon.
Old business and new business:
Presentations by staff and applicants:Agenda items shall be introduced by the
Mayor and, if an ordinance, read by the City Attorney. City staff shall then present
a report.An agenda applicant(city contractor, rezoning or development applicant,
etc.)may present its proposal only during this presentation period, but may be
recalled by an alderman later to answer questions. Staff and applicants may use
electronic visual aids in a City Council meeting as part of their presentation.
City of Fayetteville,Arkansas Page 3 Printed on 912412015
City Council Special Meeting Meeting Agenda-Final Agenda September 29,2015
All interested persons may address the City Council on agenda items of New and
Old Business. Please wait for the Mayor to request public comment and then
come to the podium, give your name, address, and comments about the agenda
item. Please address only the Mayor. Questions are usually answered by the
Mayor, Aldermen or Staff after the public comment period is over. Please keep
your comments brief and respectful. Each person is only allowed one turn at the
microphone for discussion of an agenda item.
All cell phones must be silenced and may not be used within the City Council
Chambers.
Below is a portion of the Rules of Order and Procedure of the Fayetteville City
Council pertaining to City Council meetings:
Agenda additions. A new item which is requested to be added to the agenda at a
City Council meeting should only be considered if it requires immediate City
Council consideration and if the normal agenda setting process is not practical.
The City Council may only place such new item on the City Council meeting's
agenda by suspending the rules by two-thirds vote. Such agenda addition shall be
heard prior to the Consent Agenda.
Consent Agenda. Consent Agenda items shall be read by the Mayor and voted
upon as a group without discussion by the City Council. If an Alderman wishes to
comment upon or discuss a Consent Agenda item, that item shall be removed and
considered immediately after the Consent Agenda has been voted upon.
Old business and new business.
Presentations by staff and applicants. Agenda items shall be introduced by the
Mayor and, if an ordinance, read by the City Attorney. City staff shall then present
a report. An agenda applicant(city contractor, rezoning or development applicant,
etc.)may present its proposal only during this presentation period, but may be
recalled by an alderman later to answer questions. Staff and applicants may use
electronic visual aids in a City Council meeting as part of their presentation.
Public comments. Public comment shall be allowed for all members of the
audience on all items of old and new business and subjects of public hearings. No
electronic visual aid presentations shall be allowed, but the public may submit
photos,petitions, etc. to be distributed to the City Council. If a member of the
public wishes for the City Clerk to distribute materials to the City Council before its
meeting, such materials should be supplied to the City Clerk office no later than
9:00 a.m. on the day of the City Council meeting.Any member of the public shall
first state his or her name and address, followed by a concise statement of the
person's position on the question under discussion. Repetitive comments should
be avoided,this applies to comments made previously either to the City Council or
to the Planning Commission when those Planning Commission minutes have been
provided to the Aldermen. All remarks shall be addressed to the Mayor or the City
Council as a whole and not to any particular member of the City Council. No
person other than the Aldermen and the person having the floor shall be permitted
to enter into any discussions without permission of the Mayor. No questions shall
be directed to an Alderman or city staff member except through the Mayor.
City of Fayetteville,Arkansas Page 4 Printed on 912412015
City Council Special Meeting Meeting Agenda-Final Agenda September 29,2015
Courtesy and respect.
All members of the public, all city staff and elected officials shall accord the utmost
courtesy and respect to each other at all times. All shall refrain from rude or
derogatory remarks, reflections as to integrity, abusive comments and statements
about motives or personalities. Any member of the public who violates these
standards shall be ruled out of order by the Mayor, must immediately cease
speaking and shall leave the podium.
Interpreters or TDD for hearing impaired are available for all City Council
meetings, a 72 hour advance notice is required. For further information or to
request an interpreter,please call 479-575-8330.
A copy of the complete City Council agenda is available at www.fayetteville-ar.gov
or in the office of the City Clerk, 113 W. Mountain, Fayetteville, Arkansas.
City of Fayetteville,Arkansas Page 5 Printed on 912412015
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville,AR 72701
- - (479)575-8323
Text File
File Number: 2015-0333
Agenda Date: 9/29/2015 Version: 1 Status:Agenda Ready
In Control: City Council Special Meeting File Type: Presentation
Agenda Number:
PRESENTATION- OLD FIREMEN'S PENSION PLAN PRESENTATION BY PRB
REPRESENTATIVES
City of Fayetteville,Arkansas Page 1 Printed on 972412015
LOPFI
ARKANSAS LOCAL POLICE & FIRE RETIREMENT SYSTEM 620 W.3rd, Suite 200
Little Rock,Arkansas 72201-2223
June 11, 2015 Telephone:501.682.1745
Toll-Free:866.859.1745
Board of Trustees Fax:501.682.1751
Fayetteville Fire Pension Fund email: info@lopfi-prb.com
113 West Mountain, Suite 308 website:www.lopfi-prb.com
Fayetteville, AR 72701
Dear Trustees:
Enclosed is the consolidation report that lists revised employer contribution rates
to assign administration of the local fire pension fund to LOPFI. Pages four through
seven, for paid service, and page 17, for volunteer service,provide the employer
contribution rates for Local Plan and LOPFI benefits. The rates are:
Paid Service: Using a 15-year amortization results in 36.96%of payroll without
a Cost Of Living Adjustment(COLA) for the Local Plan or 42.94% of payroll with a
Local Plan COLA.
Using a 25-year amortization results in 33.37% of payroll without
a Local Plan COLA or 37.63% of payroll with a Local Plan COLA.
Volunteer Service*: Using a 15-year amortization results in a monthly dollar employer
contribution of$314.72 without a Local Plan COLA or $394.88 with a Local Plan
COLA.
Using a 25-year amortization results in a monthly dollar employer
contribution of$253.78 without a Local Plan COLA or$318.42 with a Local Plan
COLA.
If the Local Plan has its administration assigned to LOPFI this year the above
employer contribution rates will be used through the 2016 calendar year.
As stated earlier the valuation provides costs for a 15-year and 25-year
amortization period for the Local Plan liabilities. Once the amortization period is
properly completed(all actuarial assumptions met),the Local Plan portion of the
employer contribution rate will be satisfied. This will then leave the ongoing LOPFI
employer contribution costs. This report is valid until October 30, 2015, which means
LOPFI must receive all documents discussed in the next paragraph by October 30, 2015
in order to use these results.
*-Since Fayetteville Fire does not currently have any active LOPFI volunteer firefighters,the employer contribution
rates for volunteer service do not include a rate for LOPFI volunteer coverage. Should volunteer firefighters be
enrolled in LOPE,the applicable required employer contribution rate would be added to the volunteer rates in use at
that time. For reference purposes,the required employer contribution rate for LOPFI volunteer coverage is currently
$5.60 per member,per month.
Fayetteville Fire Pension Fund
June 11, 2015
Page 2 of 2
Should your Board and city officials wish to proceed with consolidation,please
execute the enclosed Resolution, Ordinance, and both originals of the Administrative
Services Agreement. Do not alter or replace the Agreements. Both originals must be
received by LOPFI. One will be returned to you after approval of the LOPFI Board of
Trustees. Lastly,please be certain the Ordinance stipulates which amortization period
was approved(15-year or 25-year)and if a COLA was approved for the Local Plan.
If you have questions,please feel free to contact me at your convenience.
Respectfully,
Dwkw-z
David B. Clark
Executive Director
Encl:
G� GabrielCJ Roeder Smith & Company One Towne Square 248.799.9000 phone
Consultants&Actuaries Suite 800 248.799.9020 fax
Southfield,MI 48076-3723 www.gabrielroedercom
June 10, 2015
Mr.David B. Clark
Executive Director
Arkansas Local Police and Fire Retirement System
620 W. 3rd, Suite 200
Little Rock,Arkansas 72201-2212
Re: Actuarial Analysis of Proposed Combined Contribution Rates for the
City of Fayetteville Paid and Volunteer Fire
Dear Mr. Clark:
As requested, enclosed are the results of actuarial valuations which determine the combined
employer contribution rates which would result from having the City of Fayetteville Paid and
Volunteer Firemen's "closed plan" (The Local Relief and Pension Fund for Employees Hired
Before January 1, 1983) administered by the Arkansas Local Police and Fire Retirement System
(LOPFI).
Please call if you have any questions or comments.
Respectfully submitted,
K �
David L. Hoffman
Heidi G. Barry,ASA,MAAA
DLH/HGB:sc
Enclosure
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
Requested By: Mr. David B.Clark,Executive Director
Arkansas Local Police and Fire Retirement System
Date: June 10,2015
Submitted By: David L.Hoffman and Heidi G. Barry,ASA,MAAA
Gabriel, Roeder, Smith&Company
Submitted in this report are the results of actuarial valuations which determine the combined employer
contribution rates which would result from having the City of Fayetteville Paid and Volunteer Firemen's
"closed plan" (The Local Relief and Pension Fund for Employees Hired Before January 1, 1983)
administered by the Arkansas Local Police and Fire Retirement System (LOPFI).
The date of the study was as of December 31, 2014. This supplemental valuation does not predict the
result of the December 31, 2015 valuation or of any other future actuarial valuation. (Future activities can
affect future valuation results in an unpredictable manner.) Rather, the supplemental valuation gives an
indication of the probable effect of the proposed changes on future valuations without comment on the
complete end result of the future valuations.
In accordance with LOPFI Board policy, the employer contribution rates established by this
valuation report are valid for purposes of joining the System until October 30,2015.
This report is intended to describe the financial effect of the proposed plan changes.No statement in this
report is intended to be interpreted as a recommendation in favor of the changes, or in opposition to them.
Heidi G. Barry is a Member of the American Academy of Actuaries (MAAA) and meets the Qualification
Standards of the American Academy of Actuaries required to render the actuarial opinion contained
herein.
The calculations are based upon assumptions regarding future events, which may or may not materialize.
They are also based upon present and proposed plan provisions that are outlined in the report. If you have
reason to believe that the assumptions that were used are unreasonable, that the plan provisions are
incorrectly described, that important plan provisions relevant to this proposal are not described, or that
conditions have changed since the calculations were made, you should contact the authors of this report
prior to relying on information in the report.
If you have reason to believe that the information provided in this report is inaccurate, or is in any way
incomplete, or if you need further information in order to make an informed decision on the subject matter
of this report,please contact the authors of the report prior to making such decision.
In the event that more than one plan change is being considered, it is very important to remember that the
results of separate actuarial valuations cannot generally be added together to produce a correct estimate of
the combined effect of all of the changes. The total can be considerably greater than the sum of the parts
due to the interaction of various plan provisions with each other, and with the assumptions that must be
used.
6/10/2015 Gabriel Roeder Smith& Company 1
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
The actuarial methods and assumptions were the same as those used in the regular valuation as of
December 31, 2014. In particular, the economic assumptions used in the supplemental actuarial
valuation were net investment return of 8.0%per year and wage inflation of 4.0% (price inflation of
3.0%) per year.
Member information is summarized in the following table:
Valuation Data
Avera es Average
Active Age Serv. Retired Monthly Age
Group Members Payroll Pa (Yrs.) (Yrs.) Members Benefit (Yrs.)
Paid
LOPFI 106 $ 6,079,826 $ 57,357 37.7 16.0 57 $ 87,753 49.3
LOPFI DROP 2 72,893 36,447 58.3 14.0 2 3,523 58.3
Local N/A N/A 45 112,259 68.4
Total 108 6,152,719 56,970 38.1 16.0 104 203,535 57.7
Volunteer
LOPFI N/A N/A N/A N/A - N/A N/A
Local N/A N/A N/A N/A 6 $ 683 82.8
Total N/A N/A N/A N/A 6 683 82.8
Major Local Fund Benefit Provisions:
Voluntary Retirement-Eligibility at 20 years of service regardless of age.
Paid: Annual benefit is equal to 90%of the highest year's pay. If the member has acquired more than 20
years of service credit,the benefit is increased by$240 annually for each additional year of service credit(to
a maximum annual addition of$1,200). If acquired more than 25 years of service credit,the benefit is
increased at age 60 by 1.25 %of highest year's pay for service over 25 years. (Maximum benefit is 100%of
final salary).
Volunteer: The minimum benefit for volunteer members is $1,200 per year. If the member has acquired
more than 20 years of service credit,the benefit is increased by$120 annually for each additional year of
service credit(to a maximum annual addition of$600).
Member Contributions—6.0%of salary for paid members. $12 per year for volunteer members. Member
contributions are refundable without interest if termination of employment occurs before monthly benefits
are payable.
Automatic post-retirement benefit increases—None.
6/10/2015 Gabriel Roeder Smith &Company -2-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
PAID FIRE RESULTS
Asset information:
Asset information or the Local Pension & Relief Fund was derived from the Fund's annual financial report
provided to us. The date of the report was December 31, 2014. The reported market value of assets,
$4,377,557, for the Local Fund, as of December 31, 2014 was used in computing the employer contribution
rates. For purposes of our calculations, we assumed that the $4,377,557 Local Fund balance was
$4,361,699 for paid members and $15,858 for volunteer members. The computed employer contribution
rates are sensitive to changes in overall asset value. The actual amount transferred to LOPFI will
depend on the market value of Local Fund assets when they are actually liquidated and may differ
substantially from the value as of December 31, 2014. This will likely impact the actual rate
computed in the next valuation of the combined plans.
Results:
No COLA 3% COLA
Actuarial Accrued Liabilities (AAL)
Active Members - -
Other Benefit Recipients $13,727,400 $17,960,748
Total AAL $13,727,400 $17,960,748
Assets
Available to Fund AAL $ 4,361,699 $ 4,361,699
Member DROP Balance - -
Total Assets $ 4,361,699 $ 4,361,699
Unfunded AAL $ 9,365,701 $13,599,049
6/10/2015 Gabriel Roeder Smith &Company -3-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
15-YEAR AMORTIZATION,0% COLA
ACTUARIAL STATEMENT
Proposed Provisions:
No post-retirement benefit increases for Local Plan members with unfunded liabilities amortized over a
15-year closed period.
Actuarial Information:
The following shows the computed employer contribution rate applicable to Local Plan unfunded liabilities:
FI'2015"&i 2DI6 Computed, -:
Employes Contriluttons .
as Pexcent of Payxoll
Contributions.for ' Lo'cslPlari=Onl
Normal Cost 0.00%
Unfunded Accrued Liabilities 12_46
Total 12.46%
Comment A— The computed employer contribution for LOPFI only for calendar years 2015 and 2016
is 24.50% of active member payroll. The combined annual employer contribution, if the Local Plan
comes under LOPFI administration,would be 36.96% for calendar years 2015 and 2016.
Comment B—The results shown above are based on the December 31, 2014 actuarial valuation. If the
fund comes under LOPFI administration in 2015, the December 31, 2015 valuation will determine the
calendar year 2017 employer rate. The 2017 employer rate and future employer rates are likely to differ
from rates above reflecting actual investment return and mortality experience.
Comment C — As noted earlier, these calculations are based on future events that may or may not
materialize. Readers of this report may have an expectation that the contribution shown above will be
paid for 15 years and the employer will be relieved of all liability at that time. That is not the case. As
long as benefits are payable there is a possibility that employer contributions will be needed.
6/10/2015 Gabriel Roeder Smith&Company 4_
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
25-YEAR AMORTIZATION, 0% COLA
ACTUARIAL STATEMENT
Proposed Provisions:
No post-retirement benefit increases for Local Plan members with unfunded liabilities amortized over a
25-year closed period.
Actuarial Information:
The following shows the computed employer contribution rate applicable to Local Plan unfunded liabilities:
FY'2015&2016 C, mputed.
Employer Contributions,,
as Percent of Payroll
Contribution§ Ior �I:
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
15-YEAR AMORTIZATION,3% COLA
ACTUARIAL STATEMENT
Proposed Provisions:
3% compounded post-retirement benefit increases for Local Plan members with unfunded liabilities
amortized over a 15-year closed period.
Actuarial Information:
The following shows the computed employer contribution rate applicable to Local Plan unfunded liabilities:
'F Y 2015°&2016 Computed, ;;
'EmliloyeX Contr►buhons
as Percent of Payroll
Contributions for. .'`, Local Plan Ou
Normal Cost 0.00%
Unfunded Accrued Liabilities 18_44
Total 18.44%
Comment A—The computed employer contribution for LOPFI only for calendar years 2015 and 2016
is 24.50% of active member payroll. The combined annual employer contribution, if the Local Plan
comes under LOPFI administration,would be 42.94%for calendar years 2015 and 2016.
Comment B—The results shown above are based on the December 31, 2014 actuarial valuation. If the
fund comes under LOPFI administration in 2015, the December 31, 2015 valuation will determine the
calendar year 2017 employer rate. The 2017 employer rate and future employer rates are likely to differ
from rates above reflecting actual investment return and mortality experience.
Comment C — As noted earlier, these calculations are based on future events that may or may not
materialize. Readers of this report may have an expectation that the contribution shown above will be
paid for 15 years and the employer will be relieved of all liability at that time. That is not the case. As
long as benefits are payable there is a possibility that employer contributions will be needed.
Comment D—The reader should note that the cash flow projection on page 10 shows the group running
out of money and therefore borrowing from LOPFI for a number of years. The financial reporting for this
group will be affected significantly as a result.
6/10/2015 Gabriel Roeder Smith&Company -6-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEV ILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
25-YEAR AMORTIZATION, 3% COLA
ACTUARIAL STATEMENT
Proposed Provisions:
3% compounded post-retirement benefit increases for Local Plan members with unfunded liabilities
amortized over a 25-year closed period.
Actuarial Information:
The following shows the computed employer contribution rate applicable to Local Plan unfunded liabilities:
FY 2015&2016 Computed
Employer Contributtons .
Us, e,
Contributions'for , LocalPlan Onl
Normal Cost 0.00%
Unfunded Accrued Liabilities 13_13
Total 13.13%
Comment A—The computed employer contribution for LOPFI only for calendar years 2015 and 2016
is 24.50% of active member payroll. The combined annual employer contribution, if the Local Plan
comes under LOPFI administration,would be 37.63%for calendar years 2015 and 2016.
Comment B —The results shown above are based on the December 31, 2014 actuarial valuation. If the
fund comes under LOPFI administration in 2015, the December 31, 2015 valuation will determine the
calendar year 2017 employer rate. The 2017 employer rate and future employer rates are likely to differ
from rates above reflecting actual investment return and mortality experience.
Comment C — As noted earlier, these calculations are based on future events that may or may not
materialize. Readers of this report may have an expectation that the contribution shown above will be
paid for 15 years and the employer will be relieved of all liability at that time. That is not the case. As
long as benefits are payable there is a possibility that employer contributions will be needed.
6/10/2015 Gabriel Roeder Smith& Company -7.
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
0% COLA, 15-YEAR AMORTIZATION OF UAL IN LOPFI
PAID FIRE PROJECTED CASH FLOW
Pwieeted(s in thousands
Year Ended Investment
December3l Payroll Benefits Contributions Eamin s Assets(Mv
2014 $ 4,362
2015 $ 6,399 $ 1,343 $ 765 $ 326 4,110
2016 6,655 1,334 829 309 3,914
2017 6,921 1,323 862 295 3,747
2018 7,198 1,311 897 284 3,617
2019 7,486 1,297 932 275 3,527
2020 7,785 1,282 970 270 3,485
2021 8,097 1,265 1,008 269 3,497
2022 8,420 1,246 1,049 272 3,571
2023 8,757 1,226 1,091 280 3,716
2024 9,108 1,205 1,134 295 3,940
2025 9,472 1,182 1,180 315 4,253
2026 9,851 1,157 1,227 343 4,665
2027 10,245 1,131 1,276 379 5,189
2028 10,655 1,104 1,327 424 5,836
2029 11,081 1,074 1,380 479 6,621
2030 11,524 1,043 1,435 545 7,559
2031 11,985 - 1,010 - 565 7,114
2032 12,464 975 - 531 6,669
2033 12,963 939 - 497 6,227
2034 13,481 901 - 463 5,789
2035 14,021 861 - 429 5,357
2036 14,581 819 - 396 4,934
2037 15,165 777 - 364 4,522
2038 15,771 733 - 333 4,122
2039 16,402 688 - 303 3,737
2040 17,058 642 - 274 3,369
2041 17,741 596 - 246 3,019
2042 18,450 551 - 220 2,688
2043 19,188 505 - 195 2,378
2044 19,956 460 - 172 2,090
2045 20,754 417 - 151 1,824
2046 21,584 375 - 131 1,581
2047 22,447 334 - 113 1,360
2048 23,345 296 - 97 1,161
2049 24,279 260 - 83 984
2050 25,250 226 - 70 828
2051 26,260 196 - 59 691
2052 27,311 168 - 49 572
2053 28,403 143 - 40 469
205429,539 120 33 381
6/10/2015 Gabriel Roeder Smith& Company "8-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
0% COLA, 15-YEAR AMORTIZATION OF UAL IN LOPFI
PAID FIRE PROJECTED CASH FLOW
(CONCLUDED)
Pro cted $in thousands
Year Ended Investment -
December3l Payroll, Benefits Contributions Earnings Assets(MV)'
2055 $ 30,721 $ 101 $ - $ 27 $ 307
2056 31,950 83 - 21 245
2057 33,228 68 - 17 194
2058 34,557 56 - 13 151
2059 35,939 45 - 10 117
2060 37,377 35 - 8 90
2061 38,872 28 - 6 68
2062 40,427 22 - 5 51
2063 42,044 17 - 3 38
2064 43,725 13 - 3 28
2065 45,474 10 - 2 20
2066 47,293 7 - 1 14
2067 49,185 5 - 1 10
2068 51,153 4 - 1 7
2069 53,199 3 - 0 5
2070 55,327 2 - 0 3
2071 57,540 1 - 0 2
2072 59,841 1 - 0 1
2073 62,235 1 - 0 1
2074 64,724 0 - 0 1
2075 67,313 0 - 0 0
2076 70,006 0 - 0 0
2077 72,806 0 - 0 0
2078 75,718 0 - 0 0
2079 78,747 0 - 0 0
2080 81,897 0 - 0 0
2081 85,173 0 - 0 0
2082 88,580 0 - 0
2083 92,123
1. LOPFI Acttve member count is assumed to stay level in future years.
2. Local plan contributions only; 12.46% of pay in 2015 and thereafter in addition to the LOPFI rate. The first year
contribution assumes that the City will be under LOPFI administration for the last six months of 2015. The last year
contribution based on a 15 year amortization schedule would be applied to calendar year 2030.
3. Reported market value of assets. Assets are projected at the assumed rate of return of 8%per year.
Note: The actual future contributions for this group are affected by investment return,number of active members and life
expectancy.This projection does not show the effect on future employer contributions of differences between actual
and assumed future experience.These differences can have a significant effect on these results.
6/10/2015 Gabriel Roeder Smith&Company -9-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 315 2014
0% COLA, 25-YEAR AMORTIZATION OF UAL IN LOPFI
PAID FIRE PROJECTED CASH FLOW
Projected(S in thousands
Year Ended Investment
s
December3l Payroll Benefits Contributions' Eamin s Assets(MV)
2014 $ 4,362
2015 $ 6,399 $ 1,343 $ 707 $ 324 4,050
2016 6,655 1,334 590 295 3,602
2017 6,921 1,323 614 260 3,153
2018 7,198 1,311 639 226 2,706
2019 7,486 1,297 664 192 2,265
2020 7,785 1,282 691 158 1,832
2021 8,097 1,265 718 125 1,410
2022 8,420 1,246 747 93 1,004
2023 8,757 1,226 777 63 617
2024 9,108 1,205 808 34 254
2025 9,472 1,182 840 7 (81)
2026 9,851 1,157 874 (18) (382)
2027 10,245 1,131 909 (39) (643)
2028 10,655 1,104 945 (58) (859)
2029 11,081 1,074 983 (72) (1,023)
2030 11,524 1,043 1,022 (83) (1,126)
2031 11,985 1,010 1,063 (88) (1,160)
2032 12,464 975 1,106 (88) (1,118)
2033 12,963 939 1,150 (81) (988)
2034 13,481 901 1,196 (67) (760)
2035 14,021 861 1,244 (46) (423)
2036 14,581 819 1,294 (15) 36
2037 15,165 777 1,345 25 630
2038 15,771 733 1,399 77 1,373
2039 16,402 688 1,455 140 2,281
2040 17,058 642 1,513 217 3,369
2041 17,741 596 - 246 3,019
2042 18,450 551 - 220 2,688
2043 19,188 505 - 195 2,378
2044 19,956 460 - 172 2,090
2045 20,754 417 - 151 1,824
2046 21,584 375 - 131 1,581
2047 22,447 334 - 113 1,360
2048 23,345 296 - 97 1,161
2049 24,279 260 - 83 984
2050 25,250 226 - 70 828
2051 26,260 196 - 59 691
2052 27,311 168 - 49 572
2053 28,403 143 - 40 469
2054 29,539 120 33 381
6/10/2015 Gabriel Roeder Smith &Company -10-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
0% COLA, 25-YEAR AMORTIZATION OF UAL IN LOPFI
PAID FIRE PROJECTED CASH FLOW
(CONCLUDED)
Projected $in thousands
Year Ended Investment
s
December3l Payroll` Benefits ContribufionsZ Eamin s Assets(MV)
2055 $ 30,721 $ 101 - $ 27 $ 307
2056 31,950 83 - 21 245
2057 33,228 68 - 17 194
2058 34,557 56 - 13 151
2059 35,939 45 - 10 117
2060 37,377 35 - 8 90
2061 38,872 28 - 6 68
2062 40,427 22 - 5 51
2063 42,044 17 - 3 38
2064 43,725 13 - 3 28
2065 45,474 10 - 2 20
2066 47,293 7 - 1 14
2067 49,185 5 - 1 10
2068 51,153 4 - 1 7
2069 53,199 3 - 0 5
2070 55,327 2 - 0 3
2071 57,540 1 - 0 2
2072 59,841 1 - 0 1
2073 62,235 1 - 0 1
2074 64,724 0 - 0 1
2075 67,313 0 - 0 0
2076 70,006 0 - 0 0
2077 72,806 0 - 0 0
2078 75,718 0 - 0 0
2079 78,747 0 - 0 0
2080 81,897 0 - 0 0
2081 85,173 0 - 0 0
2082 88,580 0 - 0
2083 92,123 - - -
1. LOPH Active member count is assumed to stay level in future years.
2. Local plan contributions only; 8.87% of pay in 2015 and thereafter in addition to the LOPH rate. The first year
contribution assumes that the City will be under LOPH administration for the last six months of 2015. The last year
contribution based on a 25 year amortization schedule would be applied to calendar year 2040.
3. Reported market value of assets. Assets are projected at the assumed rate of return of 8%per year.
Note: The actual future contributions for this group are affected by investment return,number of active members and life
expectancy.This projection does not show the effect on future employer contributions of differences between actual
and assumed future experience.These differences can have a significant effect on these results.
6/10/2015 Gabriel Roeder Smith&Company -11-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 31,2014
3% COLA, I5-YEAR AMORTIZATION OF UAL IN LOPFI
PAID FIRE PROJECTED CASH FLOW
Pro ected $in thousands
Year Ended Investment
December31 Payrolh Benefits Contributions Eamin s Assets(M V)
s
2014 - $ 4,362
2015 $ 6,399 $ 1,343 $ 860 $ 330 4,209
2016 6,655 1,374 1,227 331 4,393
2017 6,921 1,404 1,276 346 4,612
2018 7,198 1,433 1,327 365 4,871
2019 7,486 1,460 1,380 387 5,177
2020 7,785 1,486 1,435 412 5,539
2021 8,097 1,510 1,493 442 5,963
2022 8,420 1,533 1,552 478 6,461
2023 8,757 1,554 1,614 519 7,041
2024 9,108 1,572 1,679 567 7,715
2025 9,472 1,589 1,746 623 8,496
2026 9,851 1,602 1,816 688 9,398
2027 10,245 1,613 1,889 763 10,436
2028 10,655 1,621 1,964 848 11,628
2029 11,081 1,625 2,043 947 12,993
2030 11,524 1,625 2,125 1,059 14,552
2031 11,985 1,621 - 1,101 14,031
2032 12,464 1,612 - 1,059 13,478
2033 12,963 1,599 - 1,016 12,895
2034 13,481 1,580 - 970 12,285
2035 14,021 1,555 - 922 11,652
2036 14,581 1,525 - 872 11,000
2037 15,165 1,488 - 822 10,334
2038 15,771 1,446 - 770 9,658
2039 16,402 1,398 - 718 8,977
2040 17,058 1,344 - 665 8,298
2041 17,741 1,286 - 613 7,626
2042 18,450 1,223 - 562 6,965
2043 19,188 1,156 - 512 6,321
2044 19,956 1,085 - 463 5,699
2045 20,754 1,012 - 416 5,104
2046 21,584 937 - 372 4,539
2047 22,447 860 - 329 4,007
2048 23,345 784 - 290 3,513
2049 24,279 709 - 253 3,057
2050 25,250 637 - 220 2,639
2051 26,260 567 - 189 2,261
2052 27,311 501 - 161 1,921
2053 28,403 439 - 136 1,619
2054 29,539 382 115 1,352
6/10/2015 Gabriel Roeder Smith&Company -12-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
3% COLA, 15-YEAR AMORTIZATION OF UAL IN LOPFI
PAID FIRE PROJECTED CASH FLOW
(CONCLUDED)
Projected $in thousands
Year Ended Investment
Deeember3l Payroll' Benefits Contributions 2 Eamin s Assets(MW
2055 S 30,721 $ 329 - $ 95 $ 1,118
2056 31,950 280 - 78 916
2057 33,228 237 - 64 743
2058 34,557 198 - 52 597
2059 35,939 164 - 41 475
2060 37,377 134 - 33 374
2061 38,872 108 - 26 292
2062 40,427 87 - 20 225
2063 42,044 69 - 15 172
2064 43,725 54 - 12 129
2065 45,474 42 - 9 96
2066 47,293 32 - 6 70
2067 49,185 24 - 5 51
2068 51,153 18 - 3 36
2069 53,199 13 - 2 25
2070 55,327 10 - 2 17
2071 57,540 7 - 1 12
2072 59,841 5 - 1 8
2073 62,235 3 - 0 5
2074 64,724 2 - 0 3
2075 67,313 1 - 0 2
2076 70,006 1 - 0 1
2077 72,806 1 - 0 1
2078 75,718 0 - 0 0
2079 78,747 0 - 0 0
2080 81,897 0 - 0 0
2081 85,173 0 - 0 0
2082 88,580 0 - 0 0
2083 92,123 0 - 0 0
2084 95,808 0 - 0 0
2085 99,640 0 - 0 -
2086 103,626 - - - -
1. LOPFI Active member count is assumed to stay level in future years.
2. Local plan contributions only; 18.44% of pay in 2015 and thereafter in addition to the LOPFI rate. The first year
contribution assumes that the City will be under LOPFI administration for the last six months of 2015. The last year
contribution based on a IS year amortization schedule would be applied to calendar year 2030.
3. Reported market value of assets. Assets are projected at the assumed rate of return of 8%per year.
Note: The actual future contributions for this group are affected by investment return,number of active members and life
expectancy.This projection does not show the effect on future employer contributions of differences between actual
and assumed future experience.These differences can have a significant effect on these results.
6/10/2015 Gabriel Roeder Smith &Company -13-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
3% COLA, 25-YEAR AMORTIZATION OF UAL IN LOPFI
PAID FIRE PROJECTED CASH FLOW
Projected $in thousands
Year-Ended Investment
3
December3l Payrolh Benefits Contributions' Eamin s Assets(MV)
2014 $ 4,362
2015 $ 6,399 $ 1,343 $ 776 $ 327 4,121
2016 6,655 1,374 874 310 3,931
2017 6,921 1,404 909 295 3,731
2018 7,198 1,433 945 279 3,523
2019 7,486 1,460 983 263 3,309
2020 7,785 1,486 1,022 247 3,092
2021 8,097 1,510 1,063 230 2,875
2022 8,420 1,533 1,106 213 2,661
2023 8,757 1,554 1,150 197 2,454
2024 9,108 1,572 1,196 182 2,259
2025 9,472 1,589 1,244 167 2,082
2026 9,851 1,602 1,294 154 1,928
2027 10,245 1,613 1,345 144 1,804
2028 10,655 1,621 1,399 136 1,718
2029 11,081 1,625 1,455 131 1,679
2030 11,524 1,625 1,513 130 1,698
2031 11,985 1,621 1,574 134 1,785
2032 12,464 1,612 1,637 144 1,953
2033 12,963 1,599 1,702 160 2,217
2034 13,481 1,580 1,770 185 2,592
2035 14,021 1,555 1,841 219 3,097
2036 14,581 1,525 1,915 263 3,751
2037 15,165 1,488 1,991 320 4,574
2038 15,771 1,446 2,071 390 5,589
2039 16,402 1,398 2,154 477 6,822
2040 17,058 1,344 2,240 581 8,298
2041 17,741 1,286 - 613 7,626
2042 18,450 1,223 - 562 6,965
2043 19,188 1,156 - 512 6,321
2044 19,956 1,085 - 463 5,699
2045 20,754 1,012 - 416 5,104
2046 21,584 937 - 372 4,539
2047 22,447 860 - 329 4,007
2048 23,345 784 - 290 3,513
2049 24,279 709 - 253 3,057
2050 25,250 637 - 220 2,639
2051 26,260 567 - 189 2,261
2052 27,311 501 - 161 1,921
2053 28,403 439 - 136 1,619
2054 29,539 382 - 115 1,352
6/10/2015 Gabriel Roeder Smith&Company -14-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAH) AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
3% COLA, 25-YEAR AMORTIZATION OF UAL IN LOPFI
PAID FIRE PROJECTED CASH FLOW
(CONCLUDED)
Projected(S in thousands
Year Ended Investment
3
December3l Payroll' Benefits Contributions' Eamin s Assets(MV)
2055 $ 30,721 $ 329 - $ 95 $ 1,118
2056 31,950 280 - 78 916
2057 33,228 237 - 64 743
2058 34,557 198 - 52 597
2059 35,939 164 - 41 475
2060 37,377 134 - 33 374
2061 38,872 108 - 26 292
2062 40,427 87 - 20 225
2063 42,044 69 - 15 172
2064 43,725 54 - 12 129
2065 45,474 42 - 9 96
2066 47,293 32 - 6 70
2067 49,185 24 - 5 51
2068 51,153 18 - 3 36
2069 53,199 13 - 2 25
2070 55,327 10 - 2 17
2071 57,540 7 - 1 12
2072 59,841 5 - 1 8
2073 62,235 3 - 0 5
2074 64,724 2 - 0 3
2075 67,313 1 - 0 2
2076 70,006 1 - 0 1
2077 72,806 1 - 0 1
2078 75,718 0 - 0 0
2079 78,747 0 - 0 0
2080 81,897 0 - 0 0
2081 85,173 0 - 0 0
2082 88,580 0 - 0 0
2083 92,123 0 - 0 0
2084 95,808 0 - 0 0
2085 99,640 0 - 0
2086 103,626 - - - -
1. LOPFI Active member count is assumed to stay level in future years.
2. Local plan contributions only; 13.13% of pay in 2015 and thereafter in addition to the LOPFI rate. The first year
contribution assumes that the City will be under LOPFI administration for the last six months q(2015. The last year
contribution based on a 25 year amortization schedule would be applied to calendar year 2040.
3. Reported market value of assets. Assets are projected at the assumed rate of return of 8%per year.
Note: The actual future contributions for this group are affected by investment return,number of active members and life
expectancy.This projection does not show the effect on future employer contributions of differences between actual
and assumed future experience.These differences can have a significant effect on these results.
6/10/2015 Gabriel Roeder Smith &Company -15-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
VOLUNTEER FIRE RESULTS
Asset information:
Asset information or the Local Pension& Relief Fund was derived from the Fund's annual financial report
provided to us. The date of the report was December 31, 2014. The reported market value of assets,
$4,377,557, for the Local Fund, as of December 31, 2014 was used in computing the employer contribution
rates. For purposes of our calculations, we assumed that the $4,377,557 Local Fund balance was
$4,361,699 for paid members and $15,858 for volunteer members. The computed employer contribution
rates are sensitive to changes in overall asset value. The actual amount transferred to LOPFI will
depend on the market value of Local Fund assets when they are actually liquidated and may differ
substantially from the value as of December 31, 2014. This will likely impact the actual rate
computed in the next valuation of the combined plans.
Results:
No COLA 3% COLA
Actuarial Accrued Liabilities (AAL)
Active Members - -
Other Benefit Recipients $ 49,908 $ 58,068
Total AAL $ 49,908 $ 58,068
Assets
Available to Fund AAL $ 15,858 $ 15,858
Member DROP Balance - -
Tota lAssets $ 15,858 $ 15,858
Unfunded AAL $ 34,050 $ 42,210
6/10/2015 Gabriel Roeder Smith&Company -16-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
VOLUNTEER FIRE RESULTS
If the Local Fund becomes administered by LOPFI, the per month employer contribution* for calendar year
2015 and thereafter would be as follows:
4 . ;o
0.000/0 $ 314.72 $ 253.78
3.00% 394.88 318.42
These contributions are in addition to the contribution determined for LOPFI members only. As of
December 31, 2014 there are no LOPFI Volunteer Firemen. These are the estimated contributions needed
to pay off the unfunded accrued liability associated with Closed Plan benefits and would be deposited in
the Local Fund Employer Accumulation Account.
Readers of this report may have an expectation that the contribution shown above will be paid for 15 or
25 years and the employer will be relieved of all liability at that time. That is not the case, as long as
benefits are payable there is a possibility that employer contributions will be needed.
*Contributions were calculated on a dollars per month basis since there are no active volunteers in LOPH and the Local
Plan to calculate aper member per month rate.
6/10/2015 Gabriel Roeder Smith &Company -17-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
0% COLA, 15-YEAR AMORTIZATION OF UAL IN LOPFI
VOLUNTEER FIRE PROJECTED CASH FLOW
Pm ected
Year Euded LOPHActive Investment
December3l Count Benefits Contributioos3 Eanfl2e Assets(MV)'
2014 15,858
2015 NA 7,956 3,001 1,074 11,977
2016 NA 7,464 3,777 813 9,103
2017 NA 6,972 3,777 603 6,511
2018 NA 6,468 3,777 415 4,234
2019 NA 5,964 3,777 253 2,300
2020 NA 5,484 3,777 117 710
2021 NA 5,004 3,777 9 (509
2022 NA 4,560 3,777 (71) (1,364
2023 NA 4,128 3,777 (123) (1,838)
2024 NA 3,732 3,777 (145) (1,939
2025 NA 3,348 3,777 (138) (1,649)
2026 NA 2,976 3,777 (100) (948
2027 NA 2,652 3,777 (32) 144
2028 NA 2,340 3,777 68 1,649
2029 NA 2,040 3,777 200 3,586
2030 NA 1,764 3,777 366 5,964
2031 NA 1,512 - 418 4,870
2032 NA 1,284 - 339 3,925
2033 NA 1,068 - 272 3,129
2034 NA 876 - 216 2,469
2035 NA 720 - 169 1,918
2036 NA 576 - 131 1,473
2037 NA 456 - 100 1,117
2038 NA 348 - 76 845
2039 NA 276 - 57 626
2040 NA 204 - 42 464
2041 NA 168 - 31 326
2042 NA 108 - 22 240
2043 NA 84 - 16 172
2044 NA 60 - 11 124
2045 NA 48 - 8 84
2046 NA 36 - 5 53
2047 NA 24 - 3 32
2048 NA 12 - 2 22
2049 NA 12 - 1 12
2050 NA 12 - 0 0
2051 NA - 0 0
1. As of December 31,2014 there were no Active LOPH Volunteer Firemen.
2. Local plan contributions only; $314.72 per month in 2015 and thereafter in addition to the LOPH rate. The first year
contribution assumes that the City will be under LOPH administration for the last six months q(2015. The last year
contribution based on a 15 year amortization schedule would be applied to calendar year 2030.
3. Reported market value of assets. Assets are projected at the assumed rate of return of 8%per year.
Note: The actual future contributions for this group are affected by investment return,number of active members and life
expectancy.This projection does not show the effect on future employer contributions of differences between actual
and assumed future experience.These differences can have a significant effect on these results.
6/10/2015 Gabriel Roeder Smith& Company -18-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
0% COLA,25-YEAR AMORTIZATION OF UAL IN LOPFI
VOLUNTEER FIRE PROJECTED CASH FLOW
Pmjected
Year Ended LOP67Active Investment
December3l Count' Benefits Conttibutiom2 Earnings Assets(MV)s
2014 15,858.00
2015 NA 7,956 2,818 1,067 11,787
2016 NA 7,464 3,045 770 8,138
2017 NA 6,972 3,045 497 4,708
2018 NA 6,468 3,045 242 1,528
2019 NA 5,964 3,045 8 (1,383)
2020 NA 5,484 3,045 (206) (4,028)
2021 NA 5,004 3,045 (399) (6,385
2022 NA 4,560 3,045 (570) (8,470
2023 NA 4,128 3,045 (720) (10,273)
2024 NA 3,732 3,045 (849) (11,808)
2025 NA 3,348 3,045 (957) (13,068)
2026 NA 2,976 3,045 (1,043) (14,041)
2027 NA 2,652 3,045 (1,108) (14,755)
2028 NA 2,340 3,045 (1,153) (15,203)
2029 NA 2,040 3,045 (1,177) (15,374)
2030 NA 1,764 3,045 (1,180) (15,272)
2031 NA 1,512 3,045 (1,162) (14,901
2032 NA 1,284 3,045 (1,123) (14,262)
2033 NA 1,068 3,045 (1,063) (13,348)
2034 NA 876 3,045 (983) (12,162)
2035 NA 720 3,045 (882) (10,718)
2036 NA 576 3,045 (761) (9,009
2037 NA 456 3,045 (619) (7,039
2038 NA 348 3,045 (457) (4,799)
2039 NA 276 3,045 (275) (2,305)
2040 NA 204 3,045 (73) 464
2041 NA 168 - 31 326
2042 NA 108 - 22 240
2043 NA 84 - 16 172
2044 NA 60 - 11 124
2045 NA 48 - 8 84
2046 NA 36 - 5 53
2047 NA 24 - 3 32
2048 NA 12 - 2 22
2049 NA 12 - 1 12
2050 NA 12 - 0 0
2051 NA 0 0
1. As of December 31,2014 there were no Active LOPH Volunteer Firemen.
2. Local plan contributions only; $253.78 per month in 2015 and thereafter in addition to the LOPH rate. The first year
contribution assumes that the City will be under LOPH administration for the last six months of 2015. The last year
contribution based on a 25 year amortization schedule would be applied to calendar year 2040.
3. Reported market value of assets. Assets are projected at the assumed rate of return of 8%per year.
Note: The actual future contributions for this group are affected by investment return,number of active members and life
expectancy.This projection does not show the effect on future employer contributions of differences between actual
and assumed future experience.These differences can have a significant effect on these results.
6/10/2015 Gabriel Roeder Smith&Company 19-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 31, 2014
3% COLA, 15-YEAR AMORTIZATION OF UAL IN LOPFI
VOLUNTEER FIRE PROJECTED CASH FLOW
Pm' Med
Year Ended LOPHAcave luveshwit
Decen*er3l CouMe Benefits Contributiow2 Earnim Assets(MV)'
2014 $15,858
2015 NA $7,956 $3,241 $1,084 12,227
2016 NA 7,692 4,739 862 10,136
2017 NA 7,392 4,739 707 8,189
2018 NA 7,068 4,739 564 6,423
2019 NA 6,720 4,739 436 4,878
2020 NA 6,348 4,739 327 3,596
2021 NA 5,988 4,739 239 2,585
2022 NA 5,604 4,739 173 1,892
2023 NA 5,232 4,739 132 1,531
2024 NA 4,860 4,739 118 1,527
2025 NA 4,488 4,739 132 1,910
2026 NA 4,128 4,739 177 2,697
2027 NA 3,780 4,739 253 3,909
2028 NA 3,432 4,739 364 5,579
2029 NA 3,084 4,739 511 7,745
2030 NA 2,760 4,739 697 10,421
2031 NA 2,424 - 739 8,735
2032 NA 2,112 - 616 7,239
2033 NA 1,824 - 508 5,923
2034 NA 1,548 - 413 4,788
2035 NA 1,296 - 332 3,824
2036 NA 1,068 - 264 3,020
2037 NA 864 - 208 2,364
2038 NA 696 - 162 1,830
2039- NA 552 - 125 1,403
2040 NA 444 - 95 1,053
2041 NA 336 - 71 788
2042 NA 264 - 53 577
2043 NA 204 - 38 411
2044 NA 144 - 27 295
2045 NA 108 - 19 206
2046 NA 84 - 13 135
2047 NA 60 - 8 84
2048 NA 36 - 5 53
2049 NA 24 - 3 32
2050 NA 12 - 2 22
2051 NA 12 - 1 12
2052 NA 12 - 0 -
2053 NA
I. As of December 31, 2014 there were no Active LOPFI Volunteer Firemen.
2. Local plan contributions only; $394.88 per month in 2015 and thereafter in addition to the LOPFI rate. The first year
contribution assumes that the City will be under LOPFI administration for the last six months of 2015. The last year
contribution based on a 15-year amortization schedule would be applied to calendar year 2030.
3. Reported market value of assets. Assets are projected at the assumed rate of return of 8%per year.
Note: The actual future contributions for this group are affected by investment return,number of active members and life
expectancy.This projection does not show the effect on future employer contributions of differences between actual
and assumed future experience.These differences can have a significant effect on these results.
6/10/2015 Gabriel Roeder Smith&Company -20-
ARKANSAS LOCAL POLICE AND FIRE RETIREMENT SYSTEM
CITY OF FAYETTEVILLE PAID AND VOLUNTEER FIRE
ACTUARIAL VALUATION OF PROPOSALS UNDER CONSIDERATION
AS OF DECEMBER 319 2014
3% COLA, 25-YEAR AMORTIZATION OF UAL IN LOPFI
VOLUNTEER FIRE PROJECTED CASH FLOW
Fm' cted
r2014
Ended IAPFIActive Investment
ber3l Come Benefits Cmruits ionsr FA s Assets(MW
$15,858
15 NA $7,956 $3,012 $1,075 11,988
16 NA 7,692 3,821 807 8,925
17 NA 7,392 3,821 574 5,928
18 NA 7,068 3,821 347 3,028
19 NA 6,720 3,821 128 257
2020 NA 6,348 3,821 (79) (2,348)
2021 NA 5,988 3,821 (273) (4,788)
2022 NA 5,604 3,821 (453) (7,024)
2023 NA 5,232 3,821 (617) (9,052)
2024 NA 4,860 3,821 (765) (10,856)
2025 NA 4,488 3,821 (895) (12,418)
2026 NA 4,128 3,821 (11005) (13,730)
2027 NA 3,780 3,821 (1,097) (14,786)
2028 NA 3,432 3,821 (1,168) (15,565)
2029 NA 3,084 3,821 (1,216) (16,044)
2030 NA 2,760 3,821 (1,242) (16,225)
2031 NA 2,424 3,821 (1,243) (16,071)
2032 NA 2,112 3,821 (1,219) (15,580)
2033 NA 1,824 3,821 (1,168) (14,751)
2034 NA 1,548 3,821 (1,091) (13,569)
2035 NA 1,296 3,821 (986) (12,031)
2036 NA 1,068 3,821 (854) (10,132)
2037 NA 864 3,821 (695) (7,870)
2038 NA 696 3,821 (507) (5,251)
2039 NA 552 3,821 (292) (2,274)
2040 NA 444 3,821 (49) 1,053
2041 NA 336 - 71 788
2042 NA 264 - 53 577
2043 NA 204 - 38 411
2044 NA 144 - 27 295
2045 NA 108 - 19 206
2046 NA 84 - 13 135
2047 NA 60 - 8 84
2048 NA 36 - 5 53
2049 NA 24 - 3 32
2050 NA 12 - 2 22
2051 NA 12 - 1 12
2052 NA 12 - 0 -
2053 NA
1. As of December 31,2014 there were no Active LOPFI Volunteer Firemen.
2. Local plan contributions only;8318.42 per month in 2015 and thereafter in addition to the LOPFI rate. The first year
contribution assumes that the City will be under LOPFI administration for the last six months of 2015. The last year
contribution based on a 25 year amortization schedule would be applied to calendar year 2040.
3. Reported market value of assets. Assets are projected at the assumed rate of return of 8%per year.
Note: The actual future contributions for this group are affected by investment return,number of active members and life
expectancy.Ibis projection does not show the effect on future employer contributions of differences between actual
and assumed future experience.These differences can have a significant effect on these results.
6/10/2015 Gabriel Roeder Smith& Company -21-