ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 99
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 5 - Pension Funds (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.00% and 7.55% for
the Police Officers’ and the Firefighters’ plans, respectively. The projection of cash
flows used to determine the discount rate assumed that plan member contributions
would be made at the current contribution rate and that sponsor contribution 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
Police Officers' Plan
Sponsor's Net Pension Liability
Firefighters' Plan
Sponsor's Net Pension Liability
1% Decrease
6.00%
$8,661,566
Rate Assumption
7.00%
$ 4,518,697
1% Increase
8.00%
$ 1,132,956
1% Decrease
6.55%
$ 2,325,170
Rate
7.55%
$ 401,451
1% Increase
8.55%
$(1,185,845)
Summary of Defined Pension Plans
As of September 30, 2021
Net Pension
Liability
FRS and HIS
Governmental
Business Type
FRS - Total
Police Pension Plan
Firefighters' Pension Plan
Total
$
Deferred
Inflows
Deferred
Outflows
Pension
Expense
271,867
19,573
291,440
244,583
319,779
564,362
103,891
29,545
133,436
41,239
77,119
118,358
4,518,697
401,451
1,466,004
1,294,151
271,759
423,026
788,583
229,197
4,920,148
89
$
2,760,155
$
694,785
$
1,017,780