ACFR FY 2022 FINAL BOOK - Flipbook - Page 93
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 7 - Pension Plans (Continued)
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Actuarial Assumptions – The total pension liability on July 1, 2021, updated to July 1, 2022, actuarial valuation was determined using the following actuarial assumptions, applied to all periods
included in the measurement:
Inflation
Salary increases
municipal bond rate
2�40 %
3�25 %, average, including inflation 2�40%
3�54%
mortality rates were based on the Generational pUb-2010 with projection Scale mp- 2018 tables�
The most recent actuarial assumptions experience study, the HIS 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�
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Discount Rate - The discount rate used to measure the total pension liability was 3�54%� The
discount rate for calculating the total pension liability equals the single rate equivalent to
discounting at the long-term expected rate of return for benefit payments before the projected
depletion date� because the HIS benefit is funded on a pay-as-you-go basis, the depletion date
is considered immediate� The single equivalent discount rate equals the municipal bond rate
selected by the HIS plan sponsor� The bond buyer General Obligation 20-bond municipal bond
Index was adopted as the applicable municipal bond index�
Sensitivity of 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 discount rate of 3�54%, 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 2�54% or one percentage point higher 4�54% than the current rate:
City’s proportionate Share of the Net pension Liability
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1% Decrease
Discount Rate
1% Increase
2.54%
3.54%
4.54%
$
121,956 $
106,597 $
93,888
Pension Plan Fiduciary Net Position - Detailed information regarding the HIS plan’s fiduciary
net position is available in the separately issued FRS pension plan and Other State-Administered
Systems Comprehensive Annual Financial Report�
Annual Comprehensive Financial Report | September 30, 2022
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