CAFR 2017

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2017, the City reported a liability of $54,381,226 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2015. The total pension liability was then rolled forward to the measurement date of June 30, 2016 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, 2016, the City’s proportion was 2.56% which was a decrease of .14% from its proportion measured as of June 30, 2015. For the year ended June 30, 2017, the City recognized pension expense of $14,104,924. At June 30, 2017, 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

$

1,021,729 3,724,629

$

1,905,579

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

30,065,971

15,132

1,552,982

10,760,050 45,587,511

Total

$

$

3,458,561

$10,760,050 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, 2018. 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: 2018

$

4,565,162 4,569,298 13,859,032 8,375,408 31,368,900

2019 2020 2021

$

Actuarial Assumptions The total pension liability in the December 31, 2015 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 7.75 percent, including inflation and productivity factor 7.25 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

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