2020 Comprehensive Annual Financial Report

Deferred Outflows

Deferred Inflows

of Resources

of Resources

Differences between expected and actual experience Changes of assumptions and other inputs (1) Net difference between projected and actual earnings on pension plan investments (2) City contributions subsequent to the measurement date

$ 2,063,039

$

2,357,684

191,218

1,650,401

Total

$ 3,713,440

$ 2,548,902

(1) Amortized over the average remaining service life of active and inactive plan members at the beginning of the fiscal year, or 5.48 years. (2) Amortized over a fixed five-year period.

$1,650,401 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year-ended June 30, 2021. Other amounts reported as deferred inflows and deferred outflows of resources related to pensions will be recognized in pension expense as follows:

Year ended June 30: 2021

$

(258,262) (192,323) (94,511) (52,640) 111,873 (485,863)

2022 2023 2024 2025

$

Actuarial Assumptions The entry age normal actuarial cost method, amortized on a level dollar closed period was used in the December 31, 2018 actuarial valuation. The total pension liability rolled forward to December 31, 2019 was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation

2.5 percent

Salary Increases

3.50 to 7.35 percent, including inflation 5.50 percent, net of pension plan investment expense, including inflation

Investment rate of return

Since the prior measurement date, the discount rate was changed from 4.00% to 5.50%. The plan currently uses mortality tables that vary by age, and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements. The actuarial assumptions used in the December 31, 2018 valuation were based on the results of an actuarial experience study for the period January 1, 2011 through December 31, 2015. The rates of mortality for the period after service retirement are according to the RP-2014 Healthy Annuitant base rates projected to the valuation date using MP-2015, projected forward generationally from the valuation date using MP-2015. Rates are adjusted by 104% for males and 100% for females.

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