ACFR FY 2022 FINAL BOOK - Flipbook - Page 100
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 7 - Pension Plans (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6�90% and 7�55% for the police
Officers’ and the Firefighters’ plans, respectively� The projection of cash flows used to determine the
discount rate assumed that plan member contributions would be made at the current contribution
rate and that sponsor contribution will be made at rates equal to the difference between actuarially
determined contribution rates and the member rate� based on those assumptions, the pension plan’s
fiduciary net position was projected to be available to make all projected future benefit payments of
current plan members� Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability�
The following presents the sensitivity of the net pension liability of the City to a change in the
discount rate:
Current Single Discount
Police Officers’ Plan
Sponsor’s Net pension Liability
Firefighters’ Plan
Sponsor’s Net pension Liability
$
1% Decrease
Rate Assumption
5.90%
6.90%
15,006,135 $
10,557,123 $
1% Increase
7.90%
6,933,221
$
1% Decrease
6.55%
5,832,768 $
1% Increase
8.55%
2,207,773
Rate
7.55%
3,848,418 $
Summary of Defined Pension Plans
Net Pension
Liability
As of September 30, 2022
FRS and HIS
Governmental
business Type
FRS - Total
police pension plan
Firefighters’ pension plan
Total
100
Deferred
Inflows
307,464
159,411
466,875
$
189,308
102,641
291,949
10,557,123
3,848,418
14,405,541 $
633,249
122,324
755,573 $
Deferred
Outflows
98,599
8,759
107,358
4,787,578
2,495,952
7,283,530 $
Pension
Expense
14,386
56,514
70,900
1,883,231
954,968
2,838,199
Annual Comprehensive Financial Report | September 30, 2022