Agenda - Council - 06/12/2018 - Laserfiche WebLink

Home

NOTE 8 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) At December 31, 2017, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience $ 68,059 $751,859 Changes in actuarial assumptions 3,675,152 4,197,866 Difference between projected and actual investment earnings - 7,566 Changes in proportion 394,875 7,576 Contributions paid to PERA subsequent to the measurement date 183.780 - Total $4.321.866 $4.964.867 $183,780 reported as deferred outflows of resources related to pensions resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31: Pension Expense Amount 2018 $ 76,431 2019 76,431 2020 (27,008) 2021 (200,247) 2022 (752,388) E. Actuarial Assumptions The total pension liability in the June 30, 2017, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors and disabilitants were based on RP-2014 tables for all plans for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases for retirees are assumed to be: one percent per year for GERF through 2044 and PEPFF through 2064 and then 2.5 percent thereafter for both plans. Actuarial assumptions used in the June 30, 2017, valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF was completed in 2015. The most recent five-year experience study for PEPFF was completed in 2016. 85