EXHIBIT_2_-_Orlando_General_Valuation.pdf

City of Orlando General Employees’ Pension Fund Actuarial Valuation Report September 30, 2024

March 9, 2025

City of Orlando and Pension Advisory Committee City of Orlando General Employees’ Pension Fund Orlando, Florida

Dear Committee Members:

The results of the September 30, 2024 Annual Actuarial Valuation of the City of Orlando General Employees’ Pension Fund are presented in this report.

This report was prepared at the request of the Committee and is intended for use by the Pension Fund and those designated or approved by the Committee. This report may be provided to parties other than the Fund only in its entirety and only with the permission of the Committee. GRS is not responsible for unauthorized use of this report.

The purposes of the valuation are to measure the Fund’s funding progress and to determine the employer contribution rate for the fiscal year beginning October 1, 2025. Information required by Statement Nos.

67 and 68 of the Governmental Accounting Standards Board (GASB) are provided in separate reports. This report should not be relied on for any purpose other than the purposes described herein. Determinations of financial results, associated with the benefits described in this report, for purposes other than those identified above may be significantly different.

The contribution amount in this report is determined using the actuarial assumptions and methods disclosed in Section D of this report. This report includes risk metrics on page A-11 and A-12 but does not include a more robust assessment of the risks of future experience not meeting the actuarial assumptions.

Additional assessment of risks was outside the scope of this assignment.

This valuation assumed the continuing ability of the plan sponsor to make the contributions necessary to fund this plan. A determination regarding whether or not the plan sponsor is actually able to do so is outside our scope of expertise and was not performed.

The findings in this report are based on data and other information through September 30, 2024. The valuation was based upon information furnished by the City, concerning Pension Fund benefits, financial transactions, plan provisions and active members, terminated members, retirees and beneficiaries. We checked for internal reasonability and year-to-year consistency, but did not audit the data. We are not responsible for the accuracy or completeness of the information provided by the City.

City of Orlando and Pension Advisory Committee City of Orlando General Employees’ Pension Fund March 9, 2025

We have assessed that the contribution rate calculated under the current funding policy is a reasonable Actuarially Determined Employer Contribution (ADEC) and it is consistent with the plan accumulating adequate assets to make benefit payments when due.

This report was prepared using assumptions and methods adopted by the Committee. All actuarial assumptions and methods used in this report are reasonable for the purposes of this valuation. Additional information about the actuarial assumptions and methods is included in Section D of this report. The combined effect of the assumptions, excluding prescribed assumptions or methods set by law, is expected to have no significant bias (i.e., not significantly optimistic or pessimistic).

This report was prepared using our proprietary valuation model and related software which, in our professional judgment, has the capability to provide results that are consistent with the purposes of the valuation, and has no material limitations or known weaknesses. We performed tests to ensure that the model reasonably represents that which is intended to be modeled.

This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge, the information contained in this report is accurate and fairly presents the actuarial position of the City of Orlando General Employees’ Pension Fund as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices and with the Actuarial Standards of Practice issued by the Actuarial Standards Board.

Brad Lee Armstrong, Jeffrey T. Tebeau and Kevin T. Noelke are Members of the American Academy of Actuaries (MAAA). These actuaries meet the Academy’s Qualification Standards to render the actuarial opinions contained herein. Our statement by the Enrolled Actuary is contained in Section A.

The signing actuaries are independent of the plan sponsor. Gabriel, Roeder, Smith & Company will be pleased to review this valuation and report with the Pension Advisory Committee and to answer any questions pertaining to the valuation.

Respectfully submitted, Gabriel, Roeder, Smith & Company

Brad Lee Armstrong, ASA, EA, MAAA, FCA Jeffrey T. Tebeau, FSA, EA, MAAA, FCA

Kevin T. Noelke, ASA, MAAA, FCA

BLA/JTT/KTN:dj

City of Orlando General Employees’ Pension Fund

Outline of Contents Report of September 30, 2024 Actuarial Valuation

Page

Section A Valuation Highlights and Statement by Enrolled Actuary

Funding Objective Funding Progress Indicators Contribution Requirement Retiree Reconciliations and Historical Comparisons Funding Obligations and Sources of Funding Expected Development of Present Active Population Comments, Conclusion, and Statement by Enrolled Actuary Low-Default-Risk Obligation Measure Other Observations Risk Measures

Section B Detailed Valuation Results

Contribution Requirement Funding Progress Indicators Experience Gain (Loss) Contribution History Actuarial Balance Sheet Actuarial Present Value of Future Benefit Payments and Compensation Projection of City Contributions 6.50% Investment Return Assumption

Section C

Summary of Benefit Provisions and Valuation Data Submitted by Pension Fund

Benefit Provisions Accounting Information Submitted for Valuation Derivation of Actuarial Value of Assets Participant Data

Section D Actuarial Cost Method, Actuarial Assumptions and Definitions of Technical Terms

Actuarial Cost Method Actuarial Assumptions Miscellaneous and Technical Assumptions Definitions of Technical Terms

Section E Additional Disclosures

Section F Present Value of Accrued Benefits in State Format

SECTION A

VALUATION HIGHLIGHTS AND STATEMENT BY

ENROLLED ACTUARY

City of Orlando General Employees’ Pension Fund A-1

Actuarial Valuation Highlights

Funding Objective

The funding objective of the Pension Fund is to establish and receive contributions which, expressed as dollar amounts, will remain approximately level from generation to generation of Orlando citizens, during the lifetime of the Fund.

The annual actuarial valuation measures the relationship between Pension Fund obligations and assets and determines the contribution amount for the ensuing year.

Valuation Results – Funding Progress Indicators

With the Fund closed to new hires, costs have been computed using the aggregate cost method. The design of the aggregate cost method is to target that all benefits are fully funded over a period not to exceed 8 years. This is being accomplished through 8-year layered level-dollar amortization adopted during the most recent experience study. Under the aggregate cost method, the Present Value of Future Benefits (PVFB) is reduced by the actuarial value of assets and the present value of future member contributions, if any. The remainder is financed by City contributions as level dollar amounts. The method does not generate an actuarial accrued liability. The percentage of PVFB funded by the actuarial value of assets is shown below.

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Funded Ratio of Present Value of Future Benefits

AVA/PVFB

The funded ratio in 2023 was 82.5% compared to 81.7% in 2024. Funded ratios are located on pages B-5 and E-3.

Since investment return is the most significant remaining risk for the lifetime of the Pension Fund, we point out that a return one standard deviation from the assumed rate would create a gain or loss of approximately $27 million. This will create a first-year decrease or increase in the City’s contribution requirement of about $1.4 million (growing to $4.2 million by the 3rd year) each time this happens under the current asset valuation method and amortization policy. Investment decisions to reduce overall portfolio risk can lessen this effect.

City of Orlando General Employees’ Pension Fund A-2

Valuation Results - Funding Progress Indicators

The overall activities of the members during the year increased the unfunded obligations of the Fund approximately $6.22 million more than expected because certain individual assumptions deviated from expected:

2.30% actuarial value rate of return versus 6.50% expected.

4 retirements versus 12 expected.

35 retiree removals versus 26 expected and more benefits removed in aggregate versus expected.

(9.97)% increase in salary versus 3.90% expected.

The estimated market value rate of return, net of investment expenses, on assets was 19.0% versus a 6.50% long-term assumption. The asset valuation method recognizes a portion of this year’s gain and combines it with portions of gains and losses that occurred from 2022 and 2023. The result is a $9.6 million recognized investment loss for the year which results in the 2.30% actuarial value rate of return shown above.

Note that for funding purposes, deviations from assumed market value investment experience are smoothed over a 3-year period and the ratio of market value to actuarial value is restricted to an 85% to 115% corridor. The remaining unrecognized gains from the investment return this year will be phased in over the next two valuation cycles. Please refer to page C-6 for further details.

The net result of the participant and fiscal activities was unfavorable, generating a $6.22 million net experience loss, which represents 2.3% of the Present Value of Future Benefits at the beginning of the year.

(18) (16) (14) (12) (10) (8) (6) (4) (2) 0 2 4 6

Losses Gains

Experience Gains and Losses (Amounts in Millions)

Derivation of the current and prior years’ experience gain(loss) is located on page B-6.

City of Orlando General Employees’ Pension Fund A-3

Valuation Results - Contribution Requirement

The contribution requirements for the 2024-2025 and 2025-2026 fiscal years are:

4.88% of pay by active members;

$12,957,991 by the City for 2024-2025; and $8,530,146 by the City for 2025-2026.

If the City’s contribution is paid as a lump sum on the first day of the fiscal year (October 1), the contribution requirements for the 2024-2025 and 2025-2026 fiscal years are:

$12,556,334 by the City for 2024-2025; and $8,265,738 by the City for 2025-2026.

The 2025-2026 fiscal year contribution requirement reflects a decrease in the City’s dollar contribution requirement from the prior year.

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

$11,000,000

$12,000,000

$13,000,000

$14,000,000

Employer Contributions for FY Beginning

City $

Comparative contribution information is located on page B-7. Composition of the current City contribution amount is located on page B-1.

City of Orlando General Employees’ Pension Fund A-4

Retiree Reconciliation

Retiree Count Beneficiary Count Total Count Total Pension

Start of Year 657 86 743 20,995,325$

Added 13 5 18 722,032

Removed (30) (9) (39) (671,343)

End of Year 640 82 722 21,046,014$

$0

$5

$10

$15

$20

$25

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Pension Payments and Total Contributions (In Millions of Dollars)

Annual Pensions Contribution Dollars

0%

2%

4%

6%

8%

10%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Pension Payments and Total Contributions as a Percentage of the Actuarial Value of Assets

Annual Pensions Contribution Dollars

Historical Comparisons

Previous Year Last 5 Years Last 10 Years

Retirements, Deaths, and Terminations

Expected Retirements Actual Retirements Expected Terminations

Actual Terminations Expected Deaths Actual Deaths

DC transfers are included in the chart above as Retirements or Terminations as appropriate.

City of Orlando General Employees’ Pension Fund A-5

Fund Obligations and Sources of Funding

Present Assets, 81.7% Future

Employer Contributions, 18.2%

Future Member

Contributions, 0.1%

Present Resources and Expected Future Resources ($268 Million)

To Present Active

Members, 8.7%

To Retired Members and Beneficiaries, 90.8% To Vested

Terminated Members, 0.5%

Actuarial Present Value of Expected Future Benefit Payments and Reserves

($268 Million)

The actuarial balance sheet is located on page B-8.

City of Orlando General Employees’ Pension Fund A-6

Expected Development of Present Active Population

2024 2029 2034 2039

Closed Active Group Population Projection

Closed Group Population

The charts show the expected future development of the present population in simplified terms. The pension fund presently covers 30 active members. About 99% of the present population is expected to receive monthly retirement benefits by retiring directly from active service. The remaining 1% of the present population is expected to become eligible for vested terminated, refunds, disability, or death-in-service benefits. All remaining active members are expected to retire or terminate within the next five-to-seven years.

Expected Terminations from Active Employment for Current Active Members

Vested Terminated

0.0%

Refunds 0.3% Disability or

Death

0.6%

Retirements 99.1%

City of Orlando General Employees’ Pension Fund A-7

Comments, Conclusion, and Statement by Enrolled Actuary

Plan Experience

The activities of the Pension Fund and its members generated an experience loss of $6.22 million on an aggregate basis during the plan year ended September 30, 2024. Losses were due to lower than expected recognized investment return, somewhat offset by higher than expected retiree mortality and lower than expected salary increases. On average, salaries decreased 10.0% versus an expected increase of 3.9% for the remaining actives. This was due to the inclusion of one-time lump sum payments in 2023 salaries.

The market value rate of return on plan assets this year was 19.0%. The actuarial value rate of return on assets used to determine the contribution requirements and funded ratio for this valuation was 2.30% versus 6.50% expected. Despite the aggregate experience loss, the City's contribution decreased in large part due to the last valuation fully amortizing the initial unfunded present value of employer normal cost from 2015. Please refer to pages C-5, C-6, C-7, C-13, D-3, D-4, and D-5 for additional experience information.

Plan Amendments

None.

Amortization Policy

Experience gains/losses and one-time events (e.g., assumption changes) are valued using the Entry Age Normal cost method and amortized with level-dollar payments over separate 8-year closed bases for most years beginning with the 2015 valuation (for fiscal year 2017). See page B-2 for additional information. We recommend that the Board review the funding policy and consider adopting a written funding policy.

Changes in Assumptions and Methods

The mortality assumption has been updated to the mortality tables used by the Florida Retirement System (FRS) within the timeframe required under Section 112.63 (1) (f), F.S., based upon the July 1, 2024 FRS Actuarial Valuation. This change resulted in an increase in liabilities of approximately $2.5 million and increased the required lump sum contribution by approximately $420 thousand.

Future Employer Contribution Requirements

Currently the Actuarial Value of Assets, which is used to determine the funded ratio and contribution requirements for the Fund, is less than the Market Value of Assets by 7.2%, or $17.1 million (see page C-6). A portion of this difference will be recognized in the 2025 report, which is expected to decrease the City’s contribution requirement in the absence of aggregate losses due to the Fund’s experience during the fiscal year ending September 30, 2025 or other changes in provisions, methods or assumptions.

City of Orlando General Employees’ Pension Fund A-8

Comments, Conclusion, and Statement by Enrolled Actuary

Conclusion

Pension Fund contribution requirements are expected to fluctuate from year-to-year as experience emerges and economic conditions change. The expectation inherent in the funding of a pension fund is that year to year fluctuations will tend to cancel over periods of 5 to 10 years and this speaks to why the PAC’s amortization policy remains at 8 years. The contribution requirements set forth in this report are sufficient to meet the Funding Objective stated on page A-1.

Over time, the funded ratio of a pension fund is expected to converge to 100%, but the basic trend may be interrupted by events such as changes in benefit provisions, or changes in actuarial cost methods and assumptions, or severe market downturns. Since the implementation of the aggregate actuarial cost method in 1998, the funded status has increased from 65.3% to 81.7%. This indicates the funding policies have been effective.

Statement by Enrolled Actuary

This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, of the Florida Statutes. There is no benefit or expense to be provided by the plan and/or paid from the plan’s assets for which liabilities or current costs have not been established or otherwise taken into account in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation.

Brad Lee Armstrong, ASA, EA, FCA, MAAA [23-5614]

March 9, 2025 Date

City of Orlando General Employees’ Pension Fund A-9

Low-Default-Risk Obligation Measure

Introduction

In December 2021, the Actuarial Standards Board (ASB) adopted a revision to Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions. The revised ASOP No. 4 requires the calculation and disclosure of a liability referred to by the ASOP as the “Low-Default-Risk Obligation Measure” (LDROM). The rationale that the ASB cited for the calculation and disclosure of the LDROM was included in the Transmittal Memorandum of ASOP No. 4 and is presented below (emphasis added):

“The ASB believes that the calculation and disclosure of this measure provides appropriate, useful information for the intended user regarding the funded status of a pension plan. The calculation and disclosure of this additional measure is not intended to suggest that this is the “right” liability measure for a pension plan. However, the ASB does believe that this additional disclosure provides a more complete assessment of a plan’s funded status and provides additional information regarding the security of benefits that members have earned as of the measurement date.”

Comparing the Accrued Liabilities and the LDROM

One of the fundamental financial objectives of the Pension Fund is to finance each member’s retirement benefits over the period from the member’s date of hire until the member’s projected date of retirement.

To fulfill this objective, the discount rate that is used to value the accrued liabilities of the Pension Fund is set equal to the expected return on the Fund’s diversified portfolio of assets (referred to sometimes as the investment return assumption). For the General Employees’ Pension Fund, the investment return assumption is 6.50%.

The LDROM is meant to approximately represent the lump sum cost to a plan to purchase low-default-risk fixed income securities whose resulting cash flows essentially replicate in timing and amount the benefits earned (or the costs accrued) as of the measurement date. The LDROM is very dependent upon market interest rates at the time of the LDROM measurement. The lower the market interest rates, the higher the LDROM, and vice versa. The LDROM results presented in this report are based on the entry age actuarial cost method and discount rates based upon the September 2024 Treasury Yield Curve Spot Rates (monthly average). The 1-, 5-, 10- and 30-year rates follow: 4.04%, 3.54%, 3.66% and 4.14%. This measure may not be appropriate for assessing the need for or amount of future contributions. This measure may not be appropriate for assessing the sufficiency of plan assets to cover the estimated cost of settling the plan’s benefit obligation.

The difference between the two measures (Valuation and LDROM) is one illustration of the savings the sponsor anticipates by taking on risk in a diversified portfolio. The calculations below are based on the entry-age actuarial cost method:

Valuation Accrued Liabilities LDROM

$266,378,294 $340,230,629

City of Orlando General Employees’ Pension Fund A-10

Other Observations

Limitations of Funded Status Measurements

Unless otherwise indicated, a funded status measurement presented in this report is based upon the Present Value of Future Benefits (PVFB) and the Actuarial Value of Assets (AVA). Unless otherwise indicated, with regard to any funded status measurements presented in this report:

1) The measurement is inappropriate for assessing the sufficiency of plan assets to cover the estimated cost of settling the plan’s benefit obligations; in other words, of transferring the obligations to an unrelated third party in an arm’s length market value type transaction.

2) The measurement is dependent upon the actuarial cost method which, in combination with the plan’s amortization policy, affects the timing and amounts of future contributions. A funded status measurement in this report of 100% is not synonymous with no required future contributions.

Future gains and losses would result in the funded ratio changing from 100%.

The computed contribution shown on page B-1 may be considered as a minimum contribution rate that complies with the Board’s funding policy. The timely receipt of the actuarially determined contributions is critical to support the financial health of the plan. Users of this report should be aware that contributions made at the actuarially determined rate do not necessarily guarantee benefit security.

Limitations of Project Scope

Actuarial standards do not require the actuary to evaluate the ability of the plan sponsors or other contributing entities to make required contributions to the plan when due. Such an evaluation was not within the scope of this project and is not within the actuary’s domain of expertise. Consequently, the actuary performed no such evaluation.

Risks to Future Employer Contribution Requirements

There are ongoing risks to future employer contribution requirements to which the Pension Fund is exposed, such as:

• Actual and Assumed Investment Rate of Return

• Actual and Assumed Mortality Rates

• Amortization Policy/Actuarial Cost Method

City of Orlando General Employees’ Pension Fund A-11

Risk Measures − Risks Associated with Measuring the Accrued Liability and Actuarially Determined Contribution

The determination of the actuarial liability and the actuarially determined contribution requires the use of assumptions regarding future economic and demographic experience. Risk measures, as illustrated in this report, are intended to aid in the understanding of the effects of future experience differing from the assumptions used in the course of the actuarial valuation. Risk measures may also help with illustrating the potential volatility in the actuarial liability and the actuarially determined contribution that result from the differences between actual experience and the actuarial assumptions.

Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions due to changing conditions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period, or additional cost or contribution requirements based on the System’s funded status); and changes in plan provisions or applicable law. The scope of an actuarial valuation does not include an analysis of the potential range of such future measurements.

Examples of risk that may reasonably be anticipated to significantly affect the plan’s future financial condition include:

1. Investment Risk – actual investment returns may differ from the expected returns;

2. Asset/Liability Mismatch – changes in asset values may not match changes in liabilities, thereby altering the gap between the actuarial liability and assets and consequently altering the funded status and contribution requirements;

3. Contribution Risk – actual contributions may differ from expected future contributions. For example, actual contributions may not be made in accordance with the plan’s funding policy or material changes may occur in the anticipated number of covered employees, covered payroll, or other relevant contribution base. The continuing ability of the plan sponsor to make the contributions necessary to fund the plan is outside our scope of expertise and was not performed by GRS;

4. Salary and Payroll Risk – actual salaries and total payroll may differ from expected, resulting in actual future actuarial liability and contributions differing from expected;

5. Longevity Risk – members may live longer or shorter than expected and receive pensions for a period of time other than assumed; and

6. Other Demographic Risks – members may terminate, retire or become disabled at times or with benefits other than assumed resulting in actual future actuarial liability and contributions differing from expected.

The effects of certain trends in experience can generally be anticipated. For example, if the investment return since the most recent actuarial valuation is less (or more) than the assumed rate, the cost of the plan can be expected to increase (or decrease). Likewise, if longevity is improving (or worsening), increases (or decreases) in cost can be anticipated.

City of Orlando General Employees’ Pension Fund A-12

Risk Measures ($ in Thousands)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

Actuarial

Value of

Present Value of Future

Benefits

Unfunded

PVFB

(UPVFB)

Funded

Ratio

Retiree

Liabilities

RetLiab /

PVFB

PVFB /

Payroll

Assets /

Payroll

UPVFB /

Payroll

Non-

Invest.

Cash Flow

NICF /

Assets

Market

Rate of

5-year

Trailing

Assets (PVFB) (2) - (1) Payroll (1) / (2) (RetLiab) (6)/(2) (2) / (4) (1) / (4) (3) / (4) (NICF) (11)/(1) Return Average

2020 * 231,810$ 268,835$ 37,025$ 4,578$ 86.2% 228,252$ 84.9% 5,872.4% 5,063.6% 808.8% (10,247)$ (4.4)% 8.5% 8.0%

2021 * 242,780 277,683 34,903 3,864 87.4% 241,644 87.0% 7,185.7% 6,282.5% 903.2% (10,831) (4.5)% 15.5% 9.3%

2022 233,259 272,080 38,821 3,211 85.7% 241,485 88.8% 8,474.4% 7,265.3% 1,209.2% (10,937) (4.7)% (16.7)% 3.3%

2023 224,795 272,577 47,782 3,100 82.5% 243,818 89.4% 8,794.1% 7,252.5% 1,541.6% (12,817) (5.7)% 9.3% 3.8%

2024 * 218,719 267,569 48,850 2,459 81.7% 242,872 90.8% 10,882.9% 8,896.0% 1,986.9% (11,091) (5.1)% 19.0% 6.3%

Actuarial

Valuation

(9/30)

* Revised actuarial assumptions.

(5). The funded ratio is the most widely known measure of a plan's financial strength, but the trend in the funded ratio is much more important than the absolute ratio. The funded ratio should trend to 100%. As it approaches 100%, it is important to re-evaluate the level of investment risk in the portfolio and potentially to re-evaluate the assumed rate of return.

(6) and (7). The ratio of retiree liabilities to total PVFB gives an indication of the maturity of the system. As the ratio increases, cash flow needs increase, and the liquidity needs of the portfolio change. A ratio on the order of 50% indicates a maturing system.

(8) and (9). The ratio of liabilities and assets to payroll gives an indication of both maturity and volatility. Many systems have ratios between 500% and 700%. Ratios significantly above that range may indicate difficulty in supporting the benefit level as a level % of payroll.

(10). The ratio of unfunded PVFB to payroll gives an indication of the plan sponsor's ability to actually pay off the unfunded PVFB. A ratio above approximately 300% or 400% may indicate difficulty in discharging the unfunded PVFB within a reasonable time frame.

(11) and (12). A positive net cash flow means contributions exceed benefits and expenses. A negative cash flow means benefits and expenses exceed contributions, and existing funds may be used to make payments. A certain amount of negative net cash flow is generally expected to occur when benefits are prefunded through a qualified trust. Large negative net cash flows as a percent of assets may indicate a super-mature plan or a need for additional contributions.

(13) and (14). Investment return is probably the largest single risk that most systems face. The year-by-year return and the five-year geometric average both give an indication of the reasonableness of the system’s assumed return. Of course, past performance is not a guarantee of future results. Market rate shown is based on an actuarial estimation method and will differ modestly from figures reported by the investment consultant.

SECTION B

DETAILED VALUATION RESULTS

City of Orlando General Employees’ Pension Fund B-1

Contributions to Finance Benefits of the Pension Fund for the Plan Year Beginning October 1 to be Contributed During the Fiscal Year

2026 2025

Development of Normal Cost

a) Present value of future benefit payments $ 267,569,498 $ 272,577,017

b) Present value of future member contributions (231,914) (337,420)

c) Actuarial value of assets (218,719,471) (224,794,746)

d) Unfunded present value of future benefit payments 48,618,113 47,444,851

e) Interest on item d) for one year 3,160,177 3,083,915

f) City contribution expected from prior valuation (12,556,334) (9,988,552)

g) Interest on item f) for 12 months (816,162) (649,256)

h) Total City present value of future normal cost 38,405,794 39,890,959

i) Implicit Closed level dollar amortization factor* 4.63007753 3.13782006

j) Item h) divided by item i) 8,294,849 12,712,953

Administrative Expenses 235,297 245,038

Total City Normal Cost and Administrative Expenses

Dollar Amount* $ 8,530,146 $ 12,957,991

Percent-of-Payroll 689.84% 720.61%

Fiscal Year Ending September 30

Contribution Development for

* See page B-2 for details and D-1 for a description of the amortization method.

FS 112.64 requires City contributions to be deposited not less frequently than quarterly. Member contributions, which are in addition to the City contributions, must be deposited not less frequently than monthly.

Procedures for determining dollar contribution amounts are shown on page B-3.

Comparative contribution amounts for prior fiscal years are shown on page B-7.

City of Orlando General Employees’ Pension Fund B-2

Sources and Financing of Present Value of Future Employer Normal Cost

Contribution

Amort.

Factor Dollar

Changes from experience deviations (based on Entry Age Normal cost method)

9/30/2017 1,625,712$ 8 yrs. 266,594$ 1 yr. 0.96916329 275,076$

9/30/2018 1,398,187 8 yrs. 443,818 2 yrs. 1.87917578 236,177

9/30/2019 (427,228) 8 yrs. (196,920) 3 yrs. 2.73364759 (72,036)

9/30/2020 (3,007) 8 yrs. (1,789) 4 yrs. 3.53596855 (506)

9/30/2021 (5,137,920) 8 yrs. (3,701,265) 5 yrs. 4.28932156 (862,902)

9/30/2022 11,802,182 8 yrs. 9,906,651 6 yrs. 4.99669527 1,982,641

9/30/2023 14,923,401 8 yrs. 14,194,210 7 yrs. 5.66089594 2,507,414

9/30/2024 6,247,687 8 yrs. 6,653,787 8 yrs. 6.28455855 1,058,752

Changes from actuarial assumption and actuarial cost method revisions (based on Entry Age Normal cost method)

9/30/2017 6,249,688$ 8 yrs. 1,024,860$ 1 yr. 0.96916329 1,057,469$

9/30/2020 699,723 8 yrs. 416,196 4 yrs. 3.53596855 117,704

9/30/2021 9,365,744 8 yrs. 6,746,912 5 yrs. 4.28932156 1,572,956

9/30/2024 2,490,836 8 yrs. 2,652,740 8 yrs. 6.28455855 422,104

Totals 38,405,794$ $8,294,849

Amount Fin. Per. Amount* 9/30/2024

Remaining

Financing

Initial Current Period

* This unfunded amount is projected to the applicable fiscal year with interest less the intervening City contribution expected from the prior valuation.

City of Orlando General Employees’ Pension Fund B-3

Determining Dollar Contributions

For any period of time, the percent-of-payroll contribution rate needs to be converted to dollar amounts.

We recommend one of the following procedures.

Procedure 1. Contribute the annual amounts of $8,530,146 for City normal cost and administrative expenses during the fiscal year beginning October 1, 2025 on at least a quarterly schedule to comply with FS112.64. The above dollar amount is based on base salary for the next year and is assumed to be contributed, on average, halfway through the fiscal year. Alternatively, if a monthly schedule is followed, the average City contribution would be $710,846 for fiscal year 2025-2026. If contributions are made on a later schedule, interest should be added at the rate of 0.526% (0.00526) for each month of delay.

Procedure 2. The City contributes an amount of $8,265,738 for City normal cost and administrative expenses, paid as a lump sum on October 1, 2025. This amount represents 668.5% of payroll.

The covered payroll is anticipated to decline sharply in the next few years since the active group is closed to new entrants. This has been addressed with the level dollar amortization in determining the employer contribution amount instead of relying on a rate of payroll. We recommend continuation of requiring the City to contribute dollar amounts instead of using rates.

City of Orlando General Employees’ Pension Fund B-4

Funding Progress Indicators

There is no single all-encompassing indicator that measures a pension fund’s funding progress and current funded status.

Three reliable indicators of funding progress and funded status are described below and shown on page B-5.

Indicator (1) The actuarial present value of gains or losses realized in the operation of the Pension Fund

- an experience indicator. Gains and losses are expected to cancel each other over a period of years (in the absence of double-digit inflation) and sizable year to year fluctuations are common. Further details on the derivation of the gain (loss) are shown on page B-6.

Indicator (2) The ratio of the actuarial value of assets to the present value of future benefits - a funding level indicator. The ratio is expected to converge to 100% as the active membership in the plan is eliminated, but the basic trend may be interrupted by certain events such as benefit improvements, changes in actuarial cost methods or changes in actuarial assumptions. Information concerning the funded ratio both before and after this change in method are provided to allow the reader to draw more appropriate conclusions concerning the funded status trend of the plan.

Indicator (3) The ratio of the unfunded present value of future benefits to active member payroll - an inflation adjusted indicator. In a soundly financed pension fund, the amount of the unfunded present value of future benefits will be controlled and prevented from increasing in the absence of benefit improvements. However, in an inflationary environment it is seldom practical to impose this control on dollar amounts which are depreciating in value. The ratio is a relative index of condition where inflation is present in both items. The ratio is expected to decrease over time but the basic trend may be interrupted by certain events such as benefit improvements, changes in actuarial cost methods or changes in actuarial assumptions.

City of Orlando General Employees’ Pension Fund B-5

Funding Progress Indicators − Historical Comparison ($ Amounts in Millions)

Active

Unfunded Member

PVFB* Payroll

2006 (2.12)$ $ 168.45 $ 200.89 83.9 % $ 32.44 $19.63 165.3 %

2007 0.81 179.93 208.69 86.2 28.76 19.14 150.3

2008 (11.81) 176.36 214.26 82.3 37.90 18.36 206.4

2009 (14.76) 172.35 221.17 77.9 48.82 16.60 294.1

2010 (a) (8.43) 173.70 229.78 75.6 56.08 13.61 412.2

2011 (10.09) 168.61 229.27 73.5 60.66 12.72 476.7

2012 0.63 175.35 229.54 76.4 54.19 11.83 457.9

2013 1.62 186.76 232.48 80.3 45.72 10.49 436.0

2014 3.12 199.60 235.91 84.6 36.31 9.80 370.4

2015 (0.56) 208.68 260.97 80.0 52.29 8.15 641.5

2016 (a) (2.57) 212.87 262.90 81.0 50.03 7.54 663.7

2017 (a) (1.49) 216.19 269.63 80.2 53.44 6.55 815.7

2018 (1.70) 218.72 268.95 81.3 50.23 6.19 811.1

2019 0.57 225.06 268.28 83.9 43.22 4.99 866.4

2020 (a) (0.16) 231.81 268.84 86.2 37.03 4.58 808.9

2021 (a) 4.91 242.78 277.68 87.4 34.90 3.86 903.1

2022 (11.86) 233.26 272.08 85.7 38.82 3.21 1,209.1

2023 (15.26) 224.79 272.58 82.5 47.79 3.10 1,541.8

2024 (a) (6.22) 218.72 267.57 81.7 48.85 2.46 1,986.9

Payroll

Percent-of-

Indicator (3) of Assets

Actuarial Value

Present Value of

Indicator (2)

FundedFuture Benefits

Ratio*(PVFB)*(Loss)

Gain

Indicator (1)

Valuation Date

September 30

(a) After changes in benefit provisions and/or actuarial assumptions and/or actuarial cost methods.

* Prior to the September 30, 1998 valuation, the entry-age normal cost method was used. The amounts shown were based on the actuarial accrued liability under that method. Beginning with the September 30, 1998 valuation, the aggregate method was used, which does not produce an unfunded accrued liability.

As of September 30, 2024, the unfunded PVFB with respect to the Market Value of Assets (MVA) is $31.8 million and the ratio of MVA to PVFB is 88.1%.

City of Orlando General Employees’ Pension Fund B-6

Derivation of Experience Gain (Loss)

Based on Unfunded Present Value of Future Benefits (UPVFB)

2024 2023

(1) UPVFB at start of year 47,782,271$ 38,820,964$

(2) Employer and Employee contributions 10,126,560 8,291,400

(3) Interest accrual 2,452,106 1,989,809

(4) Expected UPVFB before changes:

(1) - (2) + (3) 40,107,817 32,519,373

(5) Change from Voluntary Separation Plan 0 0

(6) Change from revised actuarial assumptions 2,525,046 0

(7) Expected UPVFB after changes:

(4) + (5) + (6) 42,632,863 32,519,373

(8) Actual UPVFB at end of year 48,850,027 47,782,271

(9) Gain (loss): (7) - (8) (6,217,164) (15,262,898)

(10) Gain (loss) as percent of present value of future benefits at start of year (2.28)% (5.61)%

Year Ended September 30

Based on Unfunded Entry Age Actuarial Accrued Liability (UAAL)

2024 2023

(1) UAAL at start of year 46,073,000$ 36,773,938$

(2) Total Normal Cost 612,936 784,802

(3) Employer and Employee contributions 10,126,560 8,291,400

(4) Interest accrual 2,360,924 1,882,259

Expected UAAL before changes:

(5) (1) + (2) - (3) + (4) 38,920,300 31,149,599

(6) Change from Voluntary Separation Plan 0 0

(7) Change from revised actuarial assumptions 2,490,836 0

Expected UAAL after changes:

(8) (4) + (5) + (6) 41,411,136 31,149,599

(9) Actual UAAL at end of year 47,658,823 46,073,000

(10) Gain (loss): (7) - (8) (6,247,687) (14,923,401)

(11) Gain (loss) as percent of Actuarial Accrued

Liability at start of year (2.31)% (5.53)%

Gain (loss) due to investments (3.53)% (3.95)%

Gain (loss) due to liabilities 1.22% (1.58)%

City of Orlando General Employees’ Pension Fund B-7

City Contributions: Historical Comparison ($ Amounts in Millions)

Applicable Computed % of

Fiscal Active Member

Year Covered Payroll Projected Actual

2001 01-02 8.63 % $ 2.22 $ 2.22

2002 02-03 11.09 2.88 2.88

2003 03-04 13.06 3.12 3.12

2004 (a) 04-05 15.42 3.42 3.42

2005 (a) 05-06 19.72 4.12 4.12

2006 06-07 21.74 4.27 4.27

2007 07-08 20.31 3.85 3.85

2008 08-09 31.12 5.61 5.61

2008 09-10 53.44 6.63 9.29

2009 10-11 59.15 9.31 8.95 &

2010 (a) 11-12 79.13* 10.05 9.67 &

2011 12-13 92.58 10.59 10.19 &

2012 13-14 90.39 9.41 9.06 &

2013 14-15 100.18 9.06 8.72 &

2014 15-16 100.58 8.17 7.86 &

2015 16-17 117.47 7.68 7.41 &

2016 (a) 17-18 138.59 8.17 7.88 &

2017 (a) 18-19 192.26 9.47 9.14 &

2018 19-20 219.41 9.69 9.35 &

2019 20-21 278.37 9.59 9.26 &

2020 (a) 21-22 333.10 9.74 9.41 &

2021 (a) 22-23 315.23 8.39 8.13 &

2022 23-24 494.07 10.31 9.99 &

2023 24-25 720.61 12.96

2024 (a) 25-26 689.84 8.53

Dollar Contribution

September 30

Valuation

(a) After changes in benefit provisions and/or actuarial assumptions and/or actuarial cost methods.

* Contributions for the fiscal year ended 9/30/10 include $2,905,589 for the Voluntary Separation

Program.

& The City’s contributions were made in a lump sum on October 1 in accordance with Procedure

2 on page B-3 of the corresponding valuation report. The actual dollar contribution under this procedure was equivalent to the projected dollar contribution.

City of Orlando General Employees’ Pension Fund B-8

Actuarial Balance Sheet

Present Resources and Expected Future Resources at September 30

2024 2023

A. Actuarial value of assets

1. Net assets from plan financial statements (market value) $235,807,248 $208,355,939

2. Actuarial value adjustment (17,087,777) 16,438,807

3. Actuarial value of assets 218,719,471 224,794,746

B. Actuarial present value of expected future employer contributions 48,618,113 47,444,851

C. Actuarial present value of expected future member contributions 231,914 337,420

D. Total present and expected future resources $267,569,498 $272,577,017

Actuarial Present Value of Expected Future Benefit Payments and Reserves

A. To retired members and beneficiaries $242,872,200 $243,817,612

B. To vested terminated members 1,212,648 1,516,347

C. To present active members 23,484,650 27,243,058

D. Total actuarial present value of expected future benefit payments $267,569,498 $272,577,017

City of Orlando General Employees’ Pension Fund B-9

Actuarial Present Value of Future Benefit Payments and Compensation

Actuarial Present Value of Future Benefit Payments 2024 2023

For present active members

Service pensions $ 23,358,881 $ 27,043,457

Pre-retirement survivor pensions 119,492 190,272

Termination benefits

Deferred service pensions 0 0

Refunds of member contributions 6,277 9,329

Total 23,484,650 27,243,058

For vested terminated members

Regular 1,012,525 1,324,843

LTD 200,123 191,504

Total 1,212,648 1,516,347

For pension recipients

Service retirees 230,651,240 232,174,140

Disabled retirees 1,373,166 1,501,245

Beneficiaries 10,847,794 10,142,227

Total 242,872,200 243,817,612

Total actuarial present value of future benefit payments $267,569,498 $272,577,017

Actuarial present value of future compensation $ 4,752,341 $ 6,914,340

September 30

City of Orlando General Employees’ Pension Fund B-10

Projection of City Contributions as of September 30, 2024 6.50% Investment Return Assumption

* Based upon the Fund’s current actuarial assumptions being met each year in the future and includes administrative expenses of $250,000 per year for projected years after the current valuation date. The amounts shown after the first few years are cash flows as if the City were making contributions throughout the year. For the purpose of this projection, the UPVB is projected to be $0 ahead of schedule by the 2030 valuation date due to recognition of scheduled investment gains/(losses) known as of the valuation date. We note that administrative expenses were $245,038 during the fiscal year ending September 30, 2023, and $235,297 for during the fiscal year ending September 30, 2024. If administrative expenses from 2024 are likely to persist, employer contributions after the current valuation date can be adjusted to account for this.

With a relatively short amortization period, there can be a great deal of volatility in annual contribution requirements as actual experience unfolds.

Unfunded

Present Value of

Benefits (UPVB)

Contribution for

Fiscal Year

Beginning

Employer

Contribution*

9/30/2022 38,425,572$ 10/1/2023 10,308,070$

9/30/2023 47,444,851 10/1/2024 12,957,991

9/30/2024 48,618,113 10/1/2025 8,530,147

9/30/2025 29,973,129 10/1/2026 6,151,828

9/30/2026 15,383,143 10/1/2027 4,094,550

9/30/2027 10,289,390 10/1/2028 4,167,490

9/30/2028 6,988,688 10/1/2029 4,051,067

9/30/2029 3,398,135 10/1/2030 3,340,990

9/30/2030 - 10/1/2031 250,000

9/30/2031 - 10/1/2032 250,000

9/30/2032 - 10/1/2033 250,000

9/30/2033 - 10/1/2034 250,000

9/30/2034 - 10/1/2035 250,000

9/30/2035 - 10/1/2036 250,000

SECTION C

SUMMARY OF BENEFIT PROVISIONS AND VALUATION

DATA SUBMITTED BY PENSION FUND

City of Orlando General Employees’ Pension Fund C-1

Summary of Benefit Provisions Considered for Actuarial Valuation

(September 30, 2024)

Participation

All persons regularly employed by the City, for more than 20 hours a week and more than 5 months a year except:

i) Police Officers

ii) Firefighters

iii) Employees of the Orlando Utilities Commission

iv) Employees of the Greater Orlando Aviation Authority

v) Prior members who have elected to transfer to the Defined Contribution Plan

This plan closed to new hires effective October 1, 1998.

Final Average Earnings

One-third (1/3) of the member’s basic salary or wages for the 3 highest years during the last 10 years of credited service. Lump sum payments for unused accumulated leave time paid at termination/retirement are excluded for pension purposes.

Service (Normal) Retirement

Eligibility. Members are eligible to retire with 25 or more years of service or at age 65 or older with 5 or more years of credited service.

Pension Amount. Two and one-half percent (2.5%) of final average earnings multiplied by credited service, to a maximum pension of 75% of final average earnings. The normal form of pension is payable for life. Optional forms are available on an actuarial equivalent basis.

Service (Early) Retirement

Eligibility. Age 55 or older with 10 or more years of credited service.

Pension Amount. Two and one-half percent (2.5%) of final average earnings multiplied by credited service, to a maximum pension of 75% of final average earnings, reduced by 1/6 of 1% of the preceding amount for each month retirement precedes age 65.

City of Orlando General Employees’ Pension Fund C-2

(September 30, 2024)

Vested Termination of Employment

Eligibility. Termination of employment with 5 or more years of credited service (2 or more years if an elected or appointed official prior to December 12, 1988).

Pension Amount. Computed in same manner as a normal or early service retirement pension, based on pension fund benefit provisions, final average earnings and credited service at time of termination.

Forfeiture. Terminated member may request refund of employee contributions with interest and forfeit entitlement to the deferred pension.

Disability Retirement

Benefits are funded and provided through a self-insured long-term disability plan. Vested termination of employment benefits are available to qualifying individuals.

Post-Retirement Survivor Benefits

Any excess of member contributions, with interest to date of retirement, over aggregate amount of pension paid is paid to beneficiary in a lump sum.

Other optional forms of payment are available on an actuarial equivalent basis.

Pre-Retirement Survivor Benefits

Eligibility Condition 1. Death after attaining age 40 with 10 or more years of credited service prior to termination of employment.

Eligibility Condition 2. Death after attaining 25 or more years of credited service prior to termination of employment.

Pension Amount under Condition 1. Fifty percent (50%) of the deceased member’s actuarially reduced accrued normal service retirement pension will be paid to the surviving spouse if the marriage was of at least 1 year’s duration at time of death.

City of Orlando General Employees’ Pension Fund C-3

(September 30, 2024)

Pension Amount under Condition 2. One hundred percent (100%) of the deceased member’s actuarially reduced accrued normal service retirement pension will be paid to the surviving spouse.

Conversion to the DC Retirement Plan. In the event of the death of a member with 10 or more years of service, as of October, 1, 1998, or of a member who was hired before October 1, 1998 and died prior to October 1, 2001, the present value of his accrued benefit in the DB Plan may be transferred to the DC Plan by the member’s designated beneficiary, or executor or administrator of the member’s estate, provided such election is made within 6 months of the date of death.

Cost-of-Living Adjustment (COLA)

The monthly amount of pension shall be increased annually by 2% of the monthly amount paid during the prior year. Increases occur on the anniversary of the member’s pension commencement date. Increases begin at the later of:

(a) one full year of retirement; or

(b) the earlier of:

(1) the attainment of age 64; or

(2) the completion of 4 full years of retirement.

Such cost-of-living adjustments shall apply in like manner to benefits payable to surviving spouses and to surviving pension beneficiaries.

Cost-of-living adjustments are payable to employees that retired on or after October 1, 1998. Terminated vested members are not eligible for the COLA.

City of Orlando General Employees’ Pension Fund C-4

(September 30, 2024)

Transfers to Defined Contribution Plan

Effective October 1, 1998, members may elect to transfer to the DC Retirement Plan with the present value of their accrued benefit as of the date of transfer. Transferred participants revoke their rights to benefits under this plan. The window for transferring is unlimited except for members with less than 10 years of service as of October 1, 1998, who may only elect to transfer prior to October 1, 2001. In all cases, the amount of the transfer is calculated using actuarial equivalence factors which are cost neutral to the Fund.

Member Contributions

Member contributions: 4.88%.

City Contributions

Amounts determined actuarially in accordance with Chapter 112, Florida Statutes.

Changes Since Prior Valuation

None.

City of Orlando General Employees’ Pension Fund C-5

Accounting Information Submitted for Valuation

Statements of Change in Plan Net Assets

City Contributions 9,988,552$ 8,125,622$

Member Contributions:

Basic 137,544 165,664

Buybacks 464 114

Total Contributions 10,126,560$ 8,291,400$

Investment Income

Interest and Dividends 3,010,624$ 2,066,058$

Realized Appreciation in Fair Value of Assets - -

Net Increase (Decrease) in…