ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 90
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 5 - Pension Funds (Continued)
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Actuarial Assumptions – The total pension liability on July 1, 2020, updated to July
1, 2021, actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation
2.40 %
Salary increases
3.25 %, average, including inflation
Municipal bond rate
2.16%
Mortality rates were based on the Generational PUB-2010 with Projection Scale MP2018 tables.
The actuarial assumptions used on July 1, 2020, updated to July 1, 2021, valuation
was based on 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
2.16%. 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-asyou-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.
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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 2.16%, 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 1.16% or one
percentage point higher 3.16% than the current rate:
HIS Net Pension Liability (Asset)
1% Decrease
1.16%
City's proportionate share of
the net pension liability
$ 206,266
Discount Rate
2.16%
$
178,416
1% Increase
3.16%
$ 155,599
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.
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