WS - C - City of Tiffin 2024 - Auditor's Report - Final

City of Tiffin Notes to Basic Financial Statements NOTE 4 – PENSION PLAN (CONTINUED) E. Net Pension Liability, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions At June 30, 2024, the City reported a liability of $525,220 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions to IPERS relative to the contributions of all IPERS participating employers. At June 30, 2023, the City's proportion was 0.011488%, which was an increase of 0.001315% from its proportion measured as of June 30, 2022. At June 30, 2023, for the Protection Plan, the City's proportion was 0.006314%, which was an increase of 0.006314% from its proportion measured as of June 30, 2022. For the year ended June 30, 2024, the City's pension expense, deferred outflows of resources and collective deferred inflows of resources totaled $46,477, $229,919, and $3,473, respectively. There were no non-employer contributing entities to IPERS. F. Actuarial Assumptions The total pension liability (asset) in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions applied to all periods included in the measurement: Rate of inflation 2.60% per annum. (effective June 30, 2017) Rates of salary increase 3.25 to 16.25% average, including inflation. (effective June 30, 2017) Rates vary by membership goup. Long-term investment rate of return 7.00% compounded annually, net of investment (effective June 30, 2017) expense, including inflation. Wage growth 3.25 % per annum, based on 2.6% inflation (effective June 30, 2017) and 0.65% real wage inflation. The actuarial assumptions used in the June 30, 2023, valuation were based on the results of a quadrennial experience study dated July 1, 2017, through June 30, 2021. Mortality rates used in the 2023 valuation were based on the PubG-2010 mortality tables with future mortality improvements modeled using Scale MP-2021. 25