ACFR FY 2023 Final - Flipbook - Page 95
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 June 30, 2023, actuarial valuation was
determined using the following actuarial assumption, applied to all periods included in the
measurement:
Inflation
Salary increases
Investment rate of return
2ÿ40 %
3ÿ25 %, average, including inflation 2ÿ40%
6ÿ70% net of pension plan investment expense, including
inflation
mortality rates were based on the Generational pUb-2010 with projection Scale mp-2018 tablesÿ
The most recent actuarial assumptions experience study for the FRS pension plan was completed
in 2023; valuation was based on the results of an actuarial experience study from July 1, 2013,
through June 30, 2018ÿ
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 modelÿ The allocation policy9s
description of each asset class was used to map the target allocation to the asset classes shown
belowÿ Each asset class assumption is based on a consistent set of underlying assumptions and
includes an adjustment for the inflation assumptionÿ 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 *
1ÿ00%
19ÿ80%
54ÿ00%
10ÿ30%
11ÿ10%
3ÿ80%
100.00%
Asset Class
Cash
Fixed Income
Global Equity
Real Estate (property)
private Equity
Strategic Investments
Total
Annual
Arithmetic
Return
2ÿ90%
4ÿ50%
8ÿ70%
7ÿ60%
11ÿ90%
6ÿ30%
41.90%
(*) As outlined in the pension plan9s investment policy
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Annual Comprehensive Financial Report | September 30, 2023
95
