COG Comprehensive Annual Financial Report

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, 2017, the City’s proportion was 2.57% which was a decrease of .01% from its proportion measured as of June 30, 2016. For the year ended June 30, 2018, the City recognized pension expense of $12,187,793. At June 30, 2018, 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

$

2,260,325 5,603,364

$

1,110,631

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

9,526,412

7,528

1,491,627

12,191,783 29,589,412

Total

$

$

2,602,258

$12,191,783 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, 2019. 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: 2019

$

1,562,667 10,873,617 5,377,159

2020 2021 2022

(3,018,072) $ 14,795,371

Actuarial Assumptions The total pension liability in the December 31, 2016 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation

3.0 percent

Salary Increases

3.50 to 8.10 percent, including inflation and productivity factor 7.20 percent, net of pension plan investment expense, including inflation

Investment rate of return

The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) 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, 2016 valuation were based on the results of an actuarial experience study for the period January 1, 2010 through December 31, 2014. Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the measurement.

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