Summary of Significant Accounting Policies
The accounting policies of the System as reflected in the accompanying financial
statements for the year ended June 30, 2021 conform to generally accepted accounting
principles for public employee retirement systems (PERS). The more significant
accounting policies of the System are summarized below.
Basis of Accounting
Contributory retirement system financial statements are prepared using the accrual basis of
accounting. Plan member contributions are recognized as revenue in the period in which the
members provide services to the employer. Employer contributions are recognized when due
and the employer has made a formal commitment to provide the contributions. Benefits
and refunds are recognized when due and payable in accordance with the terms of the plan.
Investment Policy
Investments are reported at fair value in accordance with requirements. System assets are
managed on a total return basis with a long-term objective of achieving and maintaining a
fully funded status for the benefits provided through the pension plan.
Rate of Return
For the year ended June 30, 2021, the annual money-weighted rate of return on pension
plan investments, net of pension plan investment expenses, was 25.65%. The money-
weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amounts actually invested.
Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about
the fiduciary net position of the System and additions to/deductions from System’s
fiduciary net position have been determined on the same basis as they are reported by
System. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with benefit terms. Investments are
reported at fair value.
Net Pension Liability of the City
The components of the net pension liability of the City on June 30, 2021 were as follows:
Total pension liability $ $3,572,475
Plan fiduciary net position (53,315,130)
Employers’ net pension liability $ 257,345
Plan fiduciary net position as a
percentage of total pension liability 99.52%
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