2021 Annual Comprehensive Financial Report

Discount rate The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.0 percent, as well as what the City’s proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.0 percent) or one percentage point higher (8.0 percent) than the current rate: 1% Discount 1% Decrease Rate Increase (6.0%) (7.0%) (8.0%) Pension plan fiduciary net position Detailed information about the pension plan’s fiduciary net position is available in the separately issued Annual Comprehensive Financial Report for the State of North Carolina. Law Enforcement Officers Special Separation Allowance (LEOSSA) Plan Description The City is the administrator of a single-employer, defined benefit, retirement system (Separation Allowance) established by the City to provide special separation benefits to its law enforcement officers, as required by state law. Qualified sworn City law enforcement officers are covered by the Separation Allowance. At December 31, 2019, the date of the latest actuarial valuation, the Separation Allowance’s membership consisted of: City's proportionate share of the net pension liability (asset) 176,551,340 $ 87,018,641 $ 12,610,671 $

Retirees currently receiving benefits Inactive plan members entitled to but not yet receiving benefits

151

-

Active plan members

659 810

Total

The Separation Allowance provides separation benefits to all full-time City law enforcement officers who meet the following requirements: (1) Have (i) completed 30 or more years of creditable service or, (ii) attained 55 years of age and completed 5 or more years of creditable service; and (2) Have not attained 62 years of age; and (3) Have completed at least 5 years of continuous service as a law enforcement officer immediately preceding a service retirement The qualified law enforcement officers are entitled to an annual retirement benefit of 0.85% of the annual equivalent of the base rate of compensation most recently applicable to the covered employee for each year of creditable service. The retirement

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