2025 Annual Comprehensive Report

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 6.5 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 (5.50 percent) or one percentage point higher (7.5 percent) than the current rate:

1%

Discount

1%

Decrease

Rate

Increase

(5.5%)

(6.5%)

(7.5%)

City's proportionate share of the net pension liability (asset)

$

280,021,227

$

158,022,912

$

57,662,519

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.

2. 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, 2023 the date of the latest actuarial valuation, the Separation Allowance’s membership consisted of:

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

161

-

Active plan members

631 792

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 benefits are paid semi-monthly in equal installments. Payments to retired officers cease at their death or on

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