2021 Annual Comprehensive Financial Report

Changes in the Net Pension Liability

Total Pension

Plan Net Position

Net Pension

Liability

Liability (a) - (b)

(a)

(b)

Balance as of December 31, 2019

$

29,760,903

$

7,350,209

22,410,694 $

Changes for the year: Service Cost

776,071

776,071 1,556,425

Interest

1,556,425

Difference between expected and actual experience Change of assumptions or other inputs

906,019

906,019 5,349,297 (2,892,187) (930,797)

5,349,297

Contributions - employer Net investment income

2,892,187 930,797 (2,924,536)

Benefits paid

(2,924,536)

Plan administrative expenses

(4,405)

4,405

Net changes

5,663,276 35,424,179

894,043

4,769,233

Balance as of December 31, 2020

$

$

8,244,252

27,179,927 $

3. Supplemental Retirement Income Plan For Law Enforcement Officers All law enforcement officers employed by the City participate in the State of North Carolina Supplemental Retirement Income Plan, a 401(k) defined contribution pension plan, administered by the Department of State Treasurer and a Board of Trustees. Participation begins on the first day of the quarter upon reaching sworn status. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Article 5 of G. S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Article 12E of G. S. Chapter 143 requires that the City contribute each month an amount equal to 5% of each officer’s salary, and all amounts contributed are vested immediately. Also, the law enforcement officers may make voluntary contributions to the plan. The City’s contributions for the year ended June 30, 2021 were calculated using a covered payroll (base salary) in the amount of $38,138,080. The City’s total payroll was $179,774,921. Total contributions were $3,863,718, which consisted of $1,906,904 from the City and $1,956,814 from the law enforcement officers. The City’s required contributions and the officer’s voluntary contributions represented 5.0% and 5.13% of the covered payroll amount, respectively. The Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Annual Comprehensive Financial Report for the State of North Carolina. The State’s Annual Comprehensive Financial Report includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.

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