ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 79
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 5 - Pension Plans (Continued)
■
Discount Rate - The discount rate used to measure the total pension liability was
7.00%. The Pension Plan’s fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees.
Therefore, the discount rate for calculation the total pension liability is equal to the
long-term expected rate of return.
■
Sensitivity to the City’s Proportionate Share of the Net Position 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 6.8%, 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, 5.8%, or
one percentage point higher 7.8% than the current rate:
FRS net pension Liability (Asset)
Current
1% Decrease
Discount Rate
1% Increase
5.80%
6.80%
7.80%
City's proportionate share of
the net pension liability
$ 1,182,461
$
739,837
$ 371,380
■
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 State-Administered Systems Comprehensive Annual Financial Report.
■
Payables to the Pension Plan - At September 30, 2020, the City reported a payable
in the amount of $5,469 for outstanding contributions to the Pension Plan required
for the fiscal year ended September 30, 2020.
HIS Plan
■ 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, 2020, 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, which may include Medicare.
62
