ACFR FY 2023 Final - Flipbook - Page 98
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 7 - Pension Plans (Continued)
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Actuarial Assumptions 3 The total pension liability on July 1, 2022, updated to July 1, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods
included in the measurement:
Inflation
Salary increases
municipal bond rate
2ÿ40 %
3ÿ25 %, average, including inflation 2ÿ40%
3ÿ65%
mortality rates were based on the Generational pUb-2010 with projection Scale mp- 2018 tablesÿ
The most recent actuarial assumptions experience study, the HIS 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
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Discount Rate - The discount rate used to measure the total pension liability was 3ÿ65%ÿ 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 beneot payments before the projected
depletion date. Because the HIS beneot is funded on a pay-as-you-go basis, the depletion date
is considered immediateÿ The single equivalent discount rate equals the municipal bond rate
selected by the HIS plan sponsorÿ The bond buyer General Obligation 20-bond municipal bond
Index was adopted as the applicable municipal bond indexÿ
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Sensitivity of the City9s Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate - The following represents the City9s proportionate share of the net pension liability
calculated using the discount rate of 3ÿ65%, as well as what the City9s proportionate share of the
net pension liability would be if it were calculated using a discount rate that is one percentage
point lower 2ÿ65% or one percentage point higher 4ÿ65% than the current rate:
1% Decrease
Discount Rate
1% Increase
2.65%
3.65%
4.65%
City9s proportionate Share of the Net pension Liability $
159,212 $
139,556 $
123,263
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Pension Plan Fiduciary Net Position - Detailed information regarding the HIS Plan9s oduciary
net position is available in the separately issued FRS pension plan and Other State-Administered
Systems Comprehensive Annual Financial Reportÿ
Annual Comprehensive Financial Report | September 30, 2023
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