ANNUAL AUDIT REPORT - Laserfiche WebLink

Browse Search

-Mai I WN Il 111,111"IM Notes to the Financial Statements June 30, 2020 E. Retirement Enhancement Pension Plan (continued) Assumption changes The mortality, withdrawal, and retirement tables was updated to reflect the 2017 CalPERS studies. The discount rate was changed to 6.25% to reflect the long-term rate of return on assets. There have been no other assumption changes since the last measurement date. Sensitivity of the net pension liability to changes in the discount rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.25%, as well as what the net pension liability would be if it were calculated using a discount rate that is I percentage -point lower (5.25%) or 1 percentage -point higher (7.25%) than the current rate: Discount rate - Current discount Discount rate + 1% (5.25%)— rate - (6.25%) 1%(7.25%) Plan's Net Pension Liability $ (207,250) $ 74,989 $ 400,327 Subsequent events There were no subsequent events that would materially affect the results presented in this disclosure. Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss: Difference between 5 year straight-line amortization projected and actual earnings All other amounts Straight-line amortization over the average future working lifetime, averages over all actives and retirees (retirees assumed to have no future working year)(4.307). 54