ACFR FY 2022 FINAL BOOK - Flipbook - Page 91
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 7 - Pension Plans (Continued)
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Discount Rate - The discount rate used to measure the total pension liability was 6�70%� The
pension plan’s fiduciary net position was projected to be available to make all projected future
benefit payments of currently active and inactive employees� Therefore, the discount rate for
calculating the total pension liability is equal to the long-term expected rate of return�
Sensitivity to the City’s Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate
The following represents the City’s proportionate share of the net pension liability calculated
using the total discount rate of 6�70%, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate that is one percentage point
lower, 5�70%, or one percentage point higher 7�70% than the current rate:
1 % Decrease
5.70%
City’s proportionate share of the net pension liability
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$
624,231 $
Current
Discount Rate
6.70%
360,946 $
1% Increase
7.70%
140,808
Pension Plan Fiduciary Net Position - Detailed information regarding the pension plan’s
fiduciary net position is available in the separately issued FRS pension plan and Other StateAdministered Systems Comprehensive Annual Financial Report�
HIS Plan
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Plan Description - The HIS plan is a cost-sharing multiple-employer defined benefit pension
plan established under Section 112�363, Florida Statutes, and may be amended by the Florida
legislature at any time� The benefit is a monthly payment to assist retirees of State-administered
retirement systems in paying their health insurance costs and is administered by the Florida
Department of management Services, Division of Retirement�
Benefits Provided - For the fiscal year ended September 30, 2022, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed
at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of
$150 per month� To be eligible to receive these benefits, a retiree under a State-administered
retirement system must provide proof of health insurance coverage, including medicare�
Contributions - The HIS plan is funded by required contributions from FRS participating employers
set by the Florida Legislature� Employer contributions are a percentage of gross compensation
for all active FRS members� For the fiscal year ended September 30, 2022, the HIS contribution
for October 1, 2021, through June 30, 2022, and from July 1,2021, through September 30, 2022,
was 0�00101% and 0�00145%, respectively� The City contributed 100% of its statutorily required
contributions for the current and preceding three years� HIS plan contribution is deposited in a
separate trust fund from which payments are authorized� HIS plan benefits are not guaranteed
and are subject to annual legislative appropriation� If legislative appropriation or available funds
fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled�
The City’s contributions to the HIS plan totaled $6,091 for the fiscal year ended September 30,
2022�
Annual Comprehensive Financial Report | September 30, 2022
91