COG Comprehensive Annual Financial Report

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 of 4% was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s net pension liability to changes in the discount rate The following presents the City’s net pension liability calculated using the discount rate of 4.00 percent, as well as what the City’s share of net pension liability would be if it were calculated using a discount rate that is one percentage point lower (3.00 percent) or one percentage point higher (5.00 percent) than the current rate: 1% Discount 1% Decrease Rate Increase (3.00%) (4.00%) (5.00%)

Net Pension Liability

$ 27,440,728

$ 25,045,923

$ 22,857,604

Changes in the Net Pension Liability

Net Pension Liability (a) - (b)

Plan Net Position (b)

Total Pension Liability (a)

$

31,326,515

$

6,317,260

$ 25,009,255

Balance as of December 31, 2016

Changes for the year:

957,868 1,239,173

Service Cost Interest Difference between expected and actual experience Contributions - employer Net investment income Benefits paid Plan administrative expenses Net changes Balance as of December 31, 2017

957,868 1,239,173

871,112 (2,551,831) (482,845)

871,112

2,551,831 482,845 (2,610,122) (3,191) 421,363 6,738,623

(2,610,122)

3,191 36,668 $ 25,045,923

458,031

$

31,784,546

$

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, 2018 were calculated using a covered payroll (base salary) in the amount of $35,113,960. The City’s total payroll was $167,247,623. Total contributions were $3,703,893, which consisted of $1,755,698 from the City and $1,948,195 from the law enforcement officers. The City’s required contributions and the officer’s voluntary contributions represented 5.0% and 5.5% of the covered payroll amount, respectively. The Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR 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. 38yy