ACFR FY 2022 FINAL BOOK - Flipbook - Page 90
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 7 - Pension Plans (Continued)
●
Actuarial Assumptions - The total pension liability on June 30, 2022, actuarial valuation was
determined using the following actuarial assumption, applied to all periods included in the
measurement:
Inflation
Salary increases
Investment rate of return
2�40 %
3�25 %, average, including inflation 2�40%
6�70% net of pension plan investment expense, including
inflation
mortality rates were based on the Generational pUb-2010 with projection Scale mp-2018 tables�
The most recent actuarial assumptions experience study, the FRS pension plan, was completed
in 2022; valuation was based on the results of an actuarial experience study from July 1, 2013,
through June 30, 2018�
The long-term expected rate of return on pension plan investments was not based on historical
returns but based on a forward-looking capital market economic model� The allocation policy’s
description of each asset class was used to map the target allocation to the asset classes shown
below� Each asset class assumption is based on a consistent set of underlying assumptions and
includes an adjustment for the inflation assumption� The target allocation and best estimates of
arithmetic and actual geometric rates of return for each major asset class are summarized in the
following table:
Target
Allocation *
1�00%
19�80%
54�00%
10�30%
11�10%
3�80%
100.00%
Asset Class
Cash
Fixed Income
Global Equity
Real Estate (property)
private Equity
Strategic Investments
Total
Annual
Arithmetic
Return
2�60%
4�40%
8�80%
7�40%
12�00%
6�20%
38.60%
(*) As outlined in the pension plan’s investment policy
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Annual Comprehensive Financial Report | September 30, 2022