Changes in the Net Pension Liability - Board of Public Works
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balances, beginning of year $ $1,033,623 $ (43,638,120) $ 7,395,503
Changes for the year:
Service cost 1,194,402 - 1,194,402
Interest 3,546,569 - 3,546,569
Contributions - employer - (907,292) (907,292)
Contributions - employee - (907,292) (907,292)
Net investment income - (11,103,338) (11,103,338)
Differences between expected and
actual experience (933,080) - (933,080)
Changes of assumptions 1,910,247 - 1,910,247
Benefit payments, including refunds of
employee contributions (3,179,286) 3,179,286 -
Administrative expense - 61,626 61,626
Net changes 2,538,852 (9,677,010) (7,138, 158)
Balances, end of year $ 53,572,475 $ (53,315,130) = § 257,345
Actuarial Assumptions and Other Inputs
The total pension liability in the July 1, 2020 actuarial valuation was determined using the
following actuarial assumptions:
Actuarial cost method Entry Age Normal
Salary increases Inflation of 3.00% annually, plus merit increases ranging from
2.00% to 0.00%, based on age
Investment rate of return 7.00%, per annum compounded annually, net of investment
expenses
Actuarial valuation of the ongoing System involves estimates of the reported amounts and
assumptions about probability of occurrence of events far into the future. Examples include
assumptions about future employment mortality and future salary increases. Amounts
determined regarding the net pension liability are subject to continual revision as actual
results are compared with past expectations and new estimates are made about the future.
The actuarial assumptions used in the valuation were based on the results of a limited scope
experience study for the period July 1, 2005 through June 30, 2014 completed in
conjunction with the July 1, 2014 actuarial valuation.
Mortality rates in the July 1, 2020 valuation for non-disabled individuals reflects the Pub-
2010 Public Retirement Plans Amount-Weighted Mortality Tables, projected to the
valuation date with Scale MP-2019 (previously was the RP-2014 Mortality Table, adjusted
to 2006 Blue Collar Mortality Table, projected to the valuation date with Scale MP-2018).
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