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6.C. - Page 104 of 196
<br />CITY OF REDWOOD CITY
<br />NOTES TO THE BASIC FINANCIAL STATEMENTS
<br />For the Fiscal Year Ended June 30, 2020
<br />NOTE 9 — EMPLOYEE BENEFITS (CONTINUED)
<br />A. Pension Plan, Continued
<br />Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions:
<br />For the fiscal year ended June 30, 2020, the City recognized pension expense of $15,803,395 for the
<br />Miscellaneous Plan and $20,170,288 for the Safety Plan, with a total of $35,973,683. At June 30, 2020, the
<br />City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
<br />following sources:
<br />Miscellaneous Plan Safety Plan Total
<br />Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows
<br />of Resources of Resources of Resources of Resources of Resources of Resources
<br />Pension contributions subsequent to
<br />measurement date
<br />Changes of Assumptions
<br />Differences between Expected and Actual
<br />Net differences between projected and actual
<br />earnings on plan investments
<br />Total
<br />$ 13,379,346 $ - $ 16,716,096 $ - $ 30,095,442 $
<br />- (844,917) 4,512,158 (696,881) 4,512,158 (1,541,798)
<br />1,870,115 2,886,080 4,756,195
<br />(1,523,636) (1,638,210) (3,161,846)
<br />$ 15,249,461 $ (2,368,553) $ 24,114,334 $ (2,335,091) $ 39,363,795 $ (4,703,644)
<br />$30,095,442 reported as deferred outflows of resources related to contributions subsequent to the measurement
<br />date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2021. Other
<br />amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will
<br />be recognized as pension expenses as follows:
<br />Fiscal Year Ending June 30:
<br />2021 $
<br />2022
<br />2023
<br />2024
<br />Total
<br />Ca1PERS Pension Contribution Rates
<br />Annual Amortization
<br />Miscellaneous Plan Safety Plan
<br />1,117,104 $ 6,568,016
<br />(1,443,532) (1,480,532)
<br />(399,062) (279,335)
<br />227,052 254,998
<br />$ (498,438) $ 5,063,147
<br />The Ca1PERS Board of Administration has adopted a new amortization policy effective with the June 30,
<br />2019 actuarial valuation. The new policy shortens the period over which actuarial gains and losses are
<br />amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition,
<br />the new policy removes the 5 -year ramp -up and ramp -down on UAL bases attributable to assumption
<br />changes and non -investment gains/losses. The new policy removes the 5 -year ramp -down on investment
<br />gains/losses. These changes will apply only to new UAL bases established on or after June 30, 2019. As a
<br />result of these changes, the City's contribution rates for the fiscal year ended June 30, 2021 are expected to
<br />increase over the fiscal year 2020 contribution rates.
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