ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 90
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 7.25% and 7.80 for
the police officers’ plan and the firefighters’ plan, respectively. The projection of cash
flows used to determine the discount rate assumed that plan member contributions will
be made at the current contribution rate and that sponsor contributions will be made
at rates equal to the difference between actuarially determined contribution rates and
the member rate. Based on those assumptions, the pension plan’s fiduciary net
position was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension
plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
The following presents the sensitivity of the net pension liability of the City to a
change in the discount rate:
Current Single
Discount
1% Decrease Rate Assumption 1% Increase
Police Officers' Plan
6.25%
7.25%
8.25%
Sponsor's Net Pension Liability
$11,753,767
$ 7,530,553
$ 4,099,360
Firefighters' Plan
Sponsor's Net Pension Liability
6.80%
$ 3,391,417
7.80%
$ 1,613,728
8.80%
$ 145,498
COMPONENTS OF PENSION EXPENSE
FISCAL YEAR SEPTEMBER 30, 2020
Summary of Defined Pension Plans
Net Pension
Liability
As of September 30, 2020
FRS and HIS
Governmental
Business Type
FRS - Total
Police Pension Plan
Firefighters' Pension Plan
Total
$
Deferred
Inflows
Deferred
Outflows
Pension
Expense
499,699
445,624
945,323
102,162
53,449
155,611
148,063
112,147
260,210
17,623
26,189
43,812
7,530,553
1,613,728
707,830
389,005
2,139,930
212,611
1,372,120
519,544
10,089,604
73
$
1,252,446
$
2,612,751
$
1,935,476
