2024 Annual Comprehensive Report

termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by LGERS. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2024, the City reported a liability of $151,737,374 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. The total pension liability was then rolled forward to the measurement date of June 30, 2023 utilizing update procedures incorporating the actuarial assumptions. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2023 (measurement date), the City’s proportion was 2.29% which was a decrease of 0.05% from its proportion measured as of June 30, 2022. For the year ended June 30, 2024, the City recognized pension expense of $42,443,228. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows

Deferred Inflows

of Resources

of Resources

Differences between expected and actual experience

$

16,908,036 6,447,963

$

364,000

Changes of assumptions

Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between employer contributions and proportionate share of contributions City contributions subsequent to the measurement date

40,611,563

138,107

1,223,658

29,068,306 93,173,975

Total

$

$

1,587,658

$29,068,306 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, 2025. 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: 2025

$

22,495,531 11,415,751 26,889,459 1,717,270 62,518,011

2026 2027 2028

$

Actuarial Assumptions The total pension liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation

2.5 percent

Salary Increases

3.25 to 8.25 percent, including inflation and productivity factor 6.50 percent, net of pension plan investment expense, including inflation

Investment rate of return

39nn