RFP 25-002-1 QA Addendum.pdf

TOWN OF PORTSMOUTH, RHODE ISLAND

REQUEST FOR PROPOSALS

Proposal #P25-002 Actuarial Services

Addendum #1 February 19, 2025

Please attach addenda to your bid.

1. Question: Who is the current actuary?

Response: GovInvest, Inc.

2. Question: How long has the current actuary provided these services?

Response: Evaluations for FYE 6/30/2022, FYE 6/30/2023 & FYE 6/30/2024

3. Question: What were the fees paid in the last two years? Please separate out by pension and OPEB?

Response: FYE 6/30/2022 Pension $31,500.00 OPEB $13,125.00 FYE 6/30/2023 Pension $33,075.00 OPEB $13,781.25

4. Question: Were there any special projects or out of scope work during the current contract term for either the pension or OPEB services?

Response: Recently, we requested GovInvest to consult on a scenario analysis for a disability pension question that was asked by our Pension Investment Advisory Committee.

5. Question: Please provide copies of the latest actuarial valuations for the pension and OPEB plans.

Response: Please see attachment to Addendum.

6. Question: In regards to “Minimum Requirements to Respond #1” which reads: “Five or more years’ experience providing pension services to Rhode Island municipal government entities.” Is this a RI Municipal government entity must-have? How strict is the Town on this requirement?

Response: Rhode Island experience requirements as stated are preferred but not mandatory.

7. Question: Please include the most recent Experience Study report.

Response: N/A

8. Question: Why is the Town going out to bid at this time?

Response: The Town has a contract ending with GovInvest after the GASB reporting of FYE 6/30/2024.

9. Question: If possible, please provide the current fees with the incumbent provider.

Response: Please see response to question 3, we have not received the bill associated with the FYE 6/30/2024 reporting.

10. Question: Are there any concerns with the current provider or something that a new provider might be able to improve upon?

Response: We request in the RFP, that the successful bidder produce required reports on or before October 1st to meet the states reporting requirements and to ensure that the Town’s financial statements are submitted no later than December 31st.

11. Question: With respect to “Minimum Requirements to Respond #3(b)” which reads: “With respect to the specific actuarial staff assigned to the Police and Fire Pension Plan: must have performed at least five actuarial valuations of a defined benefit pension plan sponsored by a governmental entity in Rhode Island;

and”.

a. Is this applicable to Police and Fire?

b. This appears to preclude firms from bidding, even if they otherwise qualify. Can this be amended or waived to state “the actuarial staff has performed 5 valuations of defined benefit pension plans sponsored by a governmental entity?”

Response:

a. Yes

b. Yes, we amend the language to read “the actuarial staff has performed 5 valuations of defined benefit pension plans sponsored by a governmental entity”.

12. Question: Will the Town consider proposals from firms that do not have a Fellow of the Society of Actuaries on staff, but do have actuaries that are Associates of the Society of Actuaries, Members of the American Academy of Actuaries, Fellows of the Conference of Consulting Actuaries, and Enrolled Actuaries with over 30 years’ experience managing actuarial services for public pension and OPEB plans?

Response: Yes.

Town of Portsmouth

GASB 68 Pension Valuation Report Measured as of June 30, 2024 for Disclosures for the Fiscal Year Ending June 30, 2024

December 9, 2024

11750 Atwood Road Auburn, California 95603 t: (415) 801‒5987 f: (415) 358‒8500 www.PrecisionActuarial.com

11750 Atwood Road Auburn, California 95603 www.PrecisionActuarial.com

(415) 801‒5987

December 9, 2024

Kayla Marsden

Finance Director

Town of Portsmouth

2200 East Main Road

Portsmouth, Rhode Island 02871

Re: Town of Portsmouth GASB 68 Retirement Plan Valuation Report Measured as of June 30, 2024

Dear Ms. Marsden:

At your request, we completed an actuarial valuation of the pension benefits valued as of June 30, 2024, and measured as of June 30, 2024, for the Town of Portsmouth. This is a full valuation. Please use the information in this report for your financial statements for the fiscal year ending June 30, 2024. This valuation is based on input from the Town, as well as our understanding of GASB Statement No. 68 “Accounting and Financial Reporting for Pensions” (GASB 68).

We greatly appreciate your business. If you have any questions, please feel free to call us at

(415) 801‒5987.

Best Regards, Roger T. Burton, FSA, MAAA, FCA

Corporate Solutions for the Modern World Healthcare • Pension • Valuations • Financial Reporting • Claim Liabilities

Self-Funded Plans • Actuarial Attestations • Creditable Coverage • Expert Witness DUNS: 079861610 CAGE: 7EC83 CA Supplier: 1798304

Executive Summary

Overview 1

Accounting Summary 3

Reconciliation of the Change in the Total Pension Liability 4

Accounting Information

Statement of Fiduciary Net Position 5

Statement of Changes to the Fiduciary Net Position 6

Changes in the Net Pension Liability 7

Gain/Loss Analysis 8

Development of Deferred Outflows and Inflows of Resources 9

Expense and Deferred Outflows and Inflows 11

Interest on the Liability and Earnings, and Investment Gain/Loss 12

Reconciliation of Expense 13

Impact on the Statement of Net Position 14

Sample Journal Entries 16 Amortization of the Net Pension Liability 17

Actuarially Determined Contribution (ADC) 18

Actuarially Determined Contribution (ADC) by Department 19

Low-Default-Risk Obligation Measure 20

Projection of Benefit Payments 21

Projection of Benefit Payments Chart 22

Projection of Contributions 23

Projection of Contributions Charts 24

Projection of Fiduciary Net Position 25

Depletion Date Projection 26

Depletion Date Projection Chart 27

Schedule of Deferred Outflows and Inflows of Resources 28

Schedule of Changes in the Net Pension Liability and Related Ratios 29

Schedule of Changes in the Net Pension Liability and Related Ratios Chart 30

Schedule of Investment Returns 31

Schedule of Contributions 32

Draft Notes to the Financial Statements 33

Basis of Valuation

Substantive Plan 38

Participant Summary 45

Participant Summary Charts 47

Actuarial Assumptions 48

Appendix

About GASB 68 50

Termination Rates 54

Retirement Rates 54

Disability Rates 55

Contents

Purpose of the Report

Valuation Date: June 30, 2024

Measurement Date: June 30, 2024

Report Date: June 30, 2024

Application to Financials

Changes Since the Prior Valuation

Statement on Future Measurements

Overview

Precision Actuarial prepared this report to meet employer financial accounting requirements under GASB Statement No. 68 “Accounting and Financial Reporting for Pensions” (GASB 68), issued in June 2012, as amended by GASB Statements Nos. 82 and 85. This report includes information with respect to the obligation to provide future pension benefits for the fiscal year ending June 30, 2024.

This report provides assets, liabilities, and expenses for use in the Town's 2024 financial reports.

The Town should use the liabilities, assets, and expense measured as of June 30, 2024, for its financial statements for the year ending June 30, 2024.

The report also provides the actuarially determined contributions (ADCs) for funding purposes for reporting for the fiscal years ending June 30, 2025, 2026, and 2027. The ADC for the fiscal year ending June 30, 2027 is an estimate and we recommend that the Town have a roll-forward report produced for the fiscal year ending June 30, 2025, that updates this estimate.

This valuation is a full valuation. We updated:

• Census

Future actuarial measurements may differ significantly from the current measurements presented in this report due to factors such as the following: plan experience differing from that anticipated by the economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan's funded status); and changes in plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements.

• Benefit payments

• Contributions

• Assets

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Actuarial Certification

Roger T. Burton, FSA, MAAA, FCA E. Scott Lanham, FSA, MAAA, FCA, EA Chief Actuary Senior Consulting Actuary

On the basis of the foregoing, we hereby certify that, to the best of our knowledge and belief, the report is complete and accurate and that we prepared it in accordance with generally recognized and accepted actuarial principles and practices which are consistent with the applicable "Actuarial Standards of Practice" and "Actuarial Compliance Guidelines" as promulgated by the American Academy of Actuaries.

The undersigneds are members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.

Overview

Our determinations reflect the provisions and methods prescribed by GASB 68. In preparing this report, we relied on assets, employee census, plan design, and administrative fees provided directly or indirectly by the plan sponsor, and demographic assumptions provided by CalPERS.

We based the results in this report on this information, along with the actuarial assumptions and methods used herein. In our opinion, the assumptions used represent reasonable expectations of anticipated plan experience.

We reviewed the census information for reasonableness, but we did not audit it.

Actuarial computations under GASB 68 fulfill employer accounting and financial reporting requirements. The calculations are consistent with our understanding of GASB 68. Determinations for purposes other than meeting employer financial accounting requirements may be significantly different from the results in our report.

Accordingly, additional determinations may be necessary for other purposes, such as judging benefit security at termination.

No third-party recipient of Precision Actuarial's work product should rely solely on Precision Actuarial's work product. Any third-party recipient should engage qualified professionals for advice appropriate to their own needs.

There is no relationship between Precision Actuarial, its owners, subcontractors, or staff; GovInvest; or the Town of Portsmouth beyond the contractual services that we perform for the Town of Portsmouth.

It is our professional judgment that the combined effect of the assumptions and methods applied in developing this report, other than those prescribed, set by law, or that we did not select and are unable to assess for reasonableness for the purpose of the measurement, is expected to have no significant bias on the results.

We measured the plan's benefit obligations in this valuation using the appropriate methods prescribed by GASB and Actuarial Standards of Practice. We measured the plan's assets using the market value. The funded status measure reflects the comparison of plan assets to obligations. The funded status measure is appropriate for assessing the sufficiency of the plan's assets to cover the estimated cost of settling the plan's benefit obligations. The funded status measure shows what percentage of the plan's benefit obligations are covered by the plan's assets. The measure is also appropriate for assessing the need for, or amount of, future contributions, as those amounts are recalculated periodically to reflect updates in the obligations and assets.

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A summary of the key valuation results follows. Prior Report Current Report

Valuation Date: June 30, 2023 June 30, 2024

Measurement Date: June 30, 2023 June 30, 2024

Report Date: June 30, 2023 June 30, 2024

Present Value of Future Benefits (PVFB)

Active Employees 32,077,329$ 28,225,252$ Retirees + 87,464,341 92,864,901

Total Present Value of Future Benefits = 119,541,670 121,090,153 Present Value of Future Normal Costs (PVFNC) − 5,491,292 4,668,532

Total Pension Liability (TPL) = 114,050,378$ 116,421,621$

Pension Liability

Active Employees 26,586,037$ 23,556,720$ Retirees + 87,464,341 92,864,901

Total Pension Liability (TPL) = 114,050,378 116,421,621 Fiduciary Net Position (FNP) − 65,241,964 71,404,967

Net Pension Liability (NPL) = 48,808,414$ 45,016,654$

Plan FNP as a Percentage of the TPL 57.20% 61.33% Plan FNP as a Percentage of the PVFB 54.58% 58.97%

Covered-Employee Payroll 5,466,812$ 5,002,646$ Net Pension Liability as a Percentage of Covered-Employee Payroll 892.81% 899.86%

Measurement Period: 2022–2023 2023–2024 Reporting Period: 2022–2023 2023–2024

Expense 4,530,936$ 5,070,654$

Actuarially Determined Contribution (ADC) 4,385,799 4,750,530

Accounting Summary

Net Position Chart (NPL not shown if 0)

FNP

$65,241,964

FNP

$71,404,967

NPL

$48,808,414

NPL

$45,016,654

TPL

$114,050,378

TPL

$116,421,621

2023 2024

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Total Pension Liability as of Measurement Date June 30, 2023 / Report Date June 30, 2023 114,050,378$

Service Cost 1,026,471

Interest Cost 7,557,172

Differences Between Expected and Actual Experience

Change in Census 25,117

Total Differences Between Expected and Actual Experience 25,117

Benefit Payments, Including Refunds of Employee Contributions (6,237,517)

Total Pension Liability as of Measurement Date June 30, 2024 / Report Date June 30, 2024 116,421,621$

Reconciliation of the Change in the Total Pension Liability

Reconciliation of the Change in the Total Pension Liability

A detailed reconciliation of the changes to the Total Pension Liability since the prior valuation report follows.

($6,237,517) $1,026,471

$7,557,172 $25,117

$114,050,378 $116,421,621

$20.0 M

$40.0 M

$60.0 M

$80.0 M

$100.0 M

$120.0 M

$140.0 M

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Accounting Information

Measurement Date: June 30, 2024

Report Date: June 30, 2024

Assets

Cash and Deposits -$

Securities Lending Cash Collateral -

Total Cash -

Receivables:

Contributions -

Due from Broker for Investments Sold -

Investment Income (Interest on Investments) -

Other -

Total Receivables -

Investments:

Domestic Fixed Income Securities 12,752,927

Domestic Equities 30,454,218

Investment Funds -

International Equities 23,585,061

Real Estate 4,612,761

Total Investments 71,404,967

Total Assets 71,404,967$

Liabilities

Payables:

Investment Management Fees -$

Due to Broker for Investments Purchased -

Collateral Payable for Securities Lending -

Other -

Total Liabilities -$

Net Position Restricted for Pensions 71,404,967$

Statement of Fiduciary Net Position

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Prior Report Current Report

Measurement Date: June 30, 2023 June 30, 2024

Report Date: June 30, 2023 June 30, 2024

Additions

Investment Income:

Net Appreciation in the Fair Value of Investments 6,414,653$ 7,424,068$

Interest and Dividends - -

Less Investment Expense, Other than from Securities Lending − - -

Net Income from Investing, Other than from Securities Lending 6,414,653 7,424,068

Securities Lending Income - -

Less Securities Lending Expense − - -

Net Income from Securities Lending - -

Other Income/(Expense) (31,678) (32,995)

Net Investment Income (a) 6,382,975 7,391,073

Contributions:

Employer Contributions 4,424,009 4,763,142

Employee Contributions 327,498 353,796

Total Contributions (b) 4,751,507 5,116,938

Total Additions (c) = (a) + (b) 11,134,482 12,508,011

Deductions

Benefit Payments, Including Refunds of Employee Contributions 6,011,159 6,237,517

Administrative Expense 137,952 107,491

Total Deductions (d) 6,149,111 6,345,008

Net Increase in Net Position = (c) − (d) 4,985,371 6,163,003

Net Position Restricted for Pensions

Beginning of Year 60,256,593 65,241,964

Net Increase in Net Position 4,985,371 6,163,003

End of Year 65,241,964$ 71,404,967$

Statement of Changes to the Fiduciary Net Position

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Total Pension Liability

Plan Fiduciary Net Position

Net Pension Liability

(a) (b) (c) = (a) ‒ (b)

Balance as of:

Measurement Date June 30, 2023 / Report Date June 30, 2023 114,050,378$ 65,241,964$ 48,808,414$

Changes for the year:

Service Cost 1,026,471 1,026,471

Interest 7,557,172 7,557,172

Changes of Benefit Terms - -

Differences Between Expected and Actual Experience 25,117 25,117

Changes of Assumptions - -

Net Investment Income 7,424,068 (7,424,068)

Employer Contributions 4,763,142 (4,763,142)

Employee Contributions 353,796 (353,796)

Benefit Payments, Including Refunds of Employee Contributions (6,237,517) (6,237,517) -

Administrative Expense (107,491) 107,491

Other Changes - (32,995) 32,995

Net Change 2,371,243 6,163,003 (3,791,760)

Balance as of:

Measurement Date June 30, 2024 / Report Date June 30, 2024 116,421,621$ 71,404,967$ 45,016,654$

The funded status of the Plan as of the fiscal year-end, as well as other required disclosure information, follows.

Increase / (Decrease)

Changes in the Net Pension Liability

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Losses Gains Net Loss(Gain)

Differences Between Expected and Actual Experience

Change in Census 25,117$ -$ Total Differences Between Expected and Actual Experience 25,117 - 25,117

Changes of Assumptions

Change in Mortality Tables - - Change in Payroll Growth Rate - - Change in Discount Rate from 6.75% to 6.75% - - Other Assumption Changes - -

Total Changes of Assumptions -$ -$ -$

Differences Between Projected and Actual Earnings on Investments -$ 3,063,909$ (3,063,909)$

Gain/Loss Analysis

A detailed breakdown of the gains and losses due to actual experience being different from expected.

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Balances as of Measurement Date June 30, 2024 / Report Date June 30, 2024

Deferred Outflows and Inflows of Resources Arising from Differences Between Expected and Actual Experience

Measurement Date — June 30:

Experience Losses (a)

Experience Gains (b)

Amounts Recognized in Expense Through Measurement Date June 30, 2024

(c)

Deferred Outflows of Resources

(a) − (c)

Deferred Inflows of Resources

(b) − (c)

2015 1,229,633$ -$ 1,229,633$ -$ -$

2016 1,024,895 - 1,024,895 - -

2017 - - - - -

2018 1,978,473 - 1,978,473 - -

2019 1,525,148 - 1,525,148 - -

2020 682,436 - 682,436 - -

2021 - (1,568,488) (1,568,488) - -

2022 1,125,231 - 964,485 160,746 -

2023 688,109 - 688,109 - -

2024 25,117 - 14,775 10,342 -

Total 171,088$ -$

Deferred Outflows and Inflows of Resources Arising from Changes in Assumptions

Measurement Date — June 30:

Increase in Total Liability

(a)

Decrease in Total Liability

(b)

Amounts Recognized in Expense Through Measurement Date June 30, 2024

(c)

Deferred Outflows of Resources

(a) − (c)

Deferred Inflows of Resources

(b) − (c)

2015 2,343,849$ -$ 2,343,849$ -$ -$

2016 - - - - -

2017 - - - - -

2018 487,587 - 487,587 - -

2019 2,358,787 - 2,358,787 - -

2020 5,424,302 - 5,424,302 - -

2021 - (5,924,255) (5,924,255) - -

2022 - (2,068,774) (1,773,237) - (295,537)

2023 966,096 - 966,096 - -

2024 - - - - -

Total -$ (295,537)$

Development of Deferred Outflows and Inflows of Resources

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Balances as of Measurement Date June 30, 2024 / Report Date June 30, 2024

Deferred Outflows and Inflows of Resources Arising from Differences Between Projected and Actual Earnings on Investments

Measurement Date — June 30:

Investment Earnings Less Than Projected

(a)

Investment Earnings Greater Than

Projected (b)

Amounts Recognized in Expense Through Measurement Date

June 30, 2024 (c)

Deferred Outflows of Resources

(d) = (a) − (c)

Deferred Inflows of Resources

(e) = (b) − (c) Net

(f) = (d) + (e)

2018 -$ (329,198)$ (329,198)$ -$ -$

2019 2,085,544 - 2,085,544 - -

2020 4,615,302 - 4,615,302 - -

2021 - (12,392,423) (9,913,936) - (2,478,487)

2022 15,678,602 - 9,407,163 6,271,439 -

2023 - (2,396,641) (958,658) - (1,437,983)

2024 - (3,063,909) (612,782) - (2,451,127)

Total 6,271,439$ (6,367,597)$ (96,158)$

Development of Deferred Outflows and Inflows of Resources

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Measurement Period: 2023–2024 Reporting Period: 2023–2024

Expense

Service Cost 1,026,471$

Interest on Total Pension Liability 7,557,172

Changes of Benefit Terms -

Recognized Differences Between Expected and Actual Experience 680,324

Recognized Changes of Assumptions (108,031)

Employee Contributions (353,796)

Projected Earnings on Pension Plan Investments (4,360,159)

Recognized Differences Between Projected and Actual Earnings 488,187

Administrative Expense 107,491

Other Miscellaneous (Income)/Expense 32,995

Total Expense 5,070,654$

Deferred Outflows and Inflows of Resources

Deferred Outflows of

Resources

(Deferred Inflows of

Resources)

Differences Between Expected and Actual Experience 171,088$ -$

Changes of Assumptions - (295,537)

Net Difference Between Projected and Actual Earnings on Plan Investments - (96,158)

Total 171,088$ (391,695)$

Report Year Ending June 30:

Deferred

Outflows/(Inflows)

2025 (559,324)$

2026 2,043,607

2027 (1,092,107)

2028 (612,781)

2029 -

Remaining -

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in the pension expense as follows:

Expense and Deferred Outflows and Inflows

Report Year Ending June 30, 2024

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For the report year ending June 30, 2024

Interest on Total Pension Liability

Amount for

Period

(a)

Portion of

Period

(b)

Interest Rate

(c)

Interest on the Total

Pension Liability

(d) = (a) × (b) × (c)

Beginning Total Pension Liability 114,050,378$ 100% 6.75% 7,698,401$

Service Cost 1,026,471 100% 6.75% 69,287

Benefit Payments, Including Refunds of Employee Contributions (6,237,517) 50% 6.75% (210,516)

Total Interest on Total Pension Liability 7,557,172$

Projected Earnings on Pension Plan Investments

Amount for

Period

(a)

Portion of

Period

(b)

Projected Rate of Return

(c)

Projected Earnings

(d) = (a) × (b) × (c)

Beginning Plan Fiduciary Net Position Excluding Receivables 65,241,964$ 100% 6.75% 4,403,833$

Employer Contributions 4,763,142 50% 6.75% 160,756

Employee Contributions 353,796 50% 6.75% 11,941

Benefit Payments from Trust, Including Refunds of Employee Contributions (6,237,517) 50% 6.75% (210,516)

Administrative Expense (107,491) 50% 6.75% (3,628)

Other Miscellaneous Income/(Expense) (32,995) 100% 6.75% (2,227)

Total Projected Earnings 4,360,159 (Investment Expense) -

Net Projected Earnings 4,360,159$

Investment Gain / Loss Amount

Net Projected Earnings 4,360,159$ Actual Net Earnings − 7,424,068

Investment (Gain) / Loss (3,063,909)$

Interest on the Liability and Earnings, and Investment Gain/Loss

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Asset / (Liability) Deferred Outflows / (Inflows) Expense / (Credit) Asset / (Liability)

Total Pension Liability

Plan Fiduciary Net Position

Net Pension Liability

Differences Between

Expected and Actual

Experience Changes in

Assumptions

Differences Between

Projected and Actual Earnings on Investments Net Deferrals Expense

Impact on the Statement of Net

Position

(a) (b) (c) = (a) + (b) (d) (e) (f) (g) = ∑[(d):(f)] (h) (i) = (c) + (g) − (h)

Balance as of:

Measurement Date June 30, 2023 / Report Date June 30, 2023 (114,050,378)$ 65,241,964$ (48,808,414)$ 826,295$ (403,568)$ 3,455,938$ 3,878,665$ (44,929,749)$

Service Cost (1,026,471) (1,026,471) 1,026,471$

Interest on Total Pension Liability (7,557,172) (7,557,172) 7,557,172

Changes of Benefit Terms - - -

Differences Between Expected and Actual Experience (25,117) (25,117) 25,117 25,117 -

Changes in Assumptions - - - - -

Differences Between Projected and Actual Earnings on Investments 3,063,909 3,063,909 (3,063,909) (3,063,909) -

Projected Earnings on Pension Plan Investments 4,360,159 4,360,159 (4,360,159)

Employer Contributions 4,763,142 4,763,142 4,763,142

Employee Contributions 353,796 353,796 (353,796)

Benefit Payments 6,237,517 (6,237,517) - -

Administrative Expense (107,491) (107,491) 107,491

Other Income/(Expense) (32,995) (32,995) 32,995

Recognition of Differences Between Expected and Actual Experience (680,324) (680,324) 680,324

Recognition of Changes in Assumptions 108,031 108,031 (108,031)

Recognition of Differences Between Projected and Actual Earnings on Investments (488,187) (488,187) 488,187

Annual Expense 5,070,654$ (5,070,654)

Net Change (2,371,243) 6,163,003 3,791,760 (655,207) 108,031 (3,552,096) (4,099,272) (307,512)

Balance as of:

Measurement Date June 30, 2024 / Report Date June 30, 2024 (116,421,621)$ 71,404,967$ (45,016,654)$ 171,088$ (295,537)$ $ (96,158) $ (220,607) $ (45,237,261)

Reconciliation of Expense

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Impact on the Statement of Net Position

Measurement Date: June 30, 2023 June 30, 2024

Report Date: June 30, 2023 June 30, 2024

Total Pension Liability / (Asset) 114,050,378$ 116,421,621$ 2,371,243$

(Fiduciary Net Position) (65,241,964) (71,404,967) (6,163,003)

Net Pension Liability / (Asset) 48,808,414 45,016,654 (3,791,760)

Deferred Amounts

Deferred Inflows 886,616 391,695 (494,921)

(Deferred Outflows) (4,765,281) (171,088) 4,594,193

Net Deferred Inflows / (Outflows) (3,878,665) 220,607 4,099,272

Impact on the Statement of Net Position 44,929,749 45,237,261 307,512

Change in Net Position During the Report Year

Measurement Date: June 30, 2024

Report Date: June 30, 2024

Impact on the Statement of Net Position, Report Year Ending June 30, 2023 44,929,749

Pension Expense / (Income) 5,070,654

(Employer Contributions Reported for the Year) (4,763,142)

(Adjustment to Employer Contributions Reported in the Prior Year) -

Impact on the Statement of Net Position for the Report Year Ending June 30, 2024 45,237,261

Pension Expense

Measurement Date: June 30, 2024

Report Date: June 30, 2024

Deterioration / (Improvement) in Net Position 307,512

Employer Contributions Reported for the Year 4,763,142

Adjustment to Employer Contributions Reported in the Prior Year -

Pension Expense / (Income) for the Report Year Ending June 30, 2024 5,070,654

Impact on the Statement of Net Position

Change During Period

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Impact on the Statement of Net Position

Measurement Date: June 30, 2024

Report Date: June 30, 2024

Allocation by Department School Fire Police Public Works Town Total

Total Pension Liability / (Asset) 15,494,667$ 39,228,836$ 45,838,296$ 4,282,073$ 11,577,749$ 116,421,621$

(Fiduciary Net Position)* (9,503,357) (24,060,254) (28,114,039) (2,626,327) (7,100,990) (71,404,967)

Net Pension Liability / (Asset) 5,991,310 15,168,582 17,724,257 1,655,746 4,476,759 45,016,654

Deferred Amounts

Deferred Inflows* 52,131 131,984 154,220 14,407 38,953 391,695

(Deferred Outflows)* (22,770) (57,649) (67,362) (6,293) (17,014) (171,088)

Net Deferred Inflows / (Outflows) 29,361 74,335 86,858 8,114 21,939 220,607

Impact on the Statement of Net Position 6,020,671 15,242,917 17,811,115 1,663,860 4,498,698 45,237,261

Allocation by Reporting Group

Total Pension Liability / (Asset) 11,577,749$ 85,067,132$ 4,282,073$ 15,494,667$ 116,421,621$

(Fiduciary Net Position)* (7,100,990) (52,174,293) (2,626,327) (9,503,357) (71,404,967)

Net Pension Liability / (Asset) 4,476,759 32,892,839 1,655,746 5,991,310 45,016,654

Deferred Amounts

Deferred Inflows* 38,953 286,204 14,407 52,131 391,695

(Deferred Outflows)* (17,014) (125,011) (6,293) (22,770) (171,088)

Net Deferred Inflows / (Outflows) 21,939 161,193 8,114 29,361 220,607

Impact on the Statement of Net Position 4,498,698 33,054,032 1,663,860 6,020,671 45,237,261

*Allocated by the percentage of the total liability by department or reporting group of the total liability.

Allocation of the Impact on the Statement of Net Position

General

Government Public Safety Public Works Education Total

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Beginning Balance Debit (Outflow) Credit (Inflow)

-$ 48,808,414$

826,295 -

483,048 886,616

3,455,938 -

44,929,749 -

Ending Balance Debit (Outflow) Credit (Inflow)

-$ 45,016,654$

171,088 -

- 295,537

- 96,158

45,237,261 -

Pension-Expense Journal Entries Debit Credit

Net Pension Liability/Asset 3,791,760$ -$ Deferred Outflows - 655,207 Deferred Inflows - - Deferred Outflows - 483,048 Deferred Inflows 591,079 - Deferred Outflows - 3,455,938 Deferred Inflows - 96,158

Pension Expense/Credit 307,512 -

Total 4,690,351 4,690,351

Sample Journal Entries

Suggested Journal Entries for the Report Year ending June 30, 2024

Differences between Expected and Actual Experience

Changes of Assumptions

Differences between Projected and Actual Investment Earnings

Change to the Impact on the Statement of Net Position

Impact on Statement of Net Position

Differences between Projected and Actual Investment Earnings Changes of Assumptions

Differences between Expected and Actual Experience

Net Pension Liability/Asset

Net Pension Liability/Asset

Differences between Expected and Actual Experience

Changes of Assumptions Differences between Projected and Actual Investment Earnings

Impact on Statement of Net Position

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16 years

Estimated

Measurement Period: 2024–2025 2025–2026 2026–2027

Report Date (June 30): 2025 2026 2027

Total Pension Liability 116,129,441$ 118,133,111$ 119,723,659$

Fiduciary Net Position − 68,058,746 74,054,550 77,612,891

Net Pension Liability = 48,070,695$ 44,078,561$ 42,110,768$

All values measured at the beginning of the measurement period.

Amortization Type Closed Closed Closed

Interest Rate Used to Determine Amortization 6.75% 6.75% 6.75%

Assumed Rate of Payroll Growth 3.50% N/A N/A

Amortization Period 16 years 15 years 14 years

Amount Recognized, Beginning of Year 3,750,291$ 4,462,249$ 4,443,294$

It is the policy of the Town to allow negative amortizations.

A summary of the information used to establish the amortization amount for the current year and the following year, with respect to the Net Pension Liability, follows. If the Net Pension Liability is negative, it is an asset.

Amortization of the Net Pension Liability

The Town is amortizing the Net Pension Liability using a level-percent-of-pay method on a closed basis. Remaining years of amortization as of the report date of June 30, 2024:

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Estimated

Measurement Period: 2024–2025 2025–2026 2026–2027

Report Date (June 30): 2025 2026 2027

Service Cost 1,095,758$ 950,778$ 1,014,956$

Amortization of the Net Pension Liability 3,750,291 4,462,249 4,443,294

Administrative Expense - 112,932 115,755

Interest 327,109 350,505 355,725

(Expected Employee Contributions) (326,225) (333,298) (303,996)

RADC* 4,846,933$ 5,543,166$ 5,625,734$

Discount Rate for ADC Calculation 6.75% 6.75% 6.75%

ADC Components

Town's Contribution to the Trust Fund 4,846,933$ 5,543,166$ 5,625,734$

Credit for Benefit Payments Outside of the Trust - - -

ADC 4,846,933$ 5,543,166$ 5,625,734$

ADC as a Percentage of Payroll 93.71% 117.58% 130.84%

Town's Funding Policy the service cost, amortization, and the administrative expense, with interest to the end of the year, if appropriate for the timing of the contribution, meets the definition of an RADC as defined in Actuarial Standards of Practice No. 4. The RADC may differ from the ADC, which is calculated using the plan's funding policy.

The Town's funding policy is to contribute 100% of the ADC each year until the plan is fully funded, and then contribute the greater of the service cost plus the administrative expense (with interest on both), or if benfit paymetns are paid outside of the trust, the benefit payments.

The ADC is the sum of the service cost, the amortization of the net pension liability, and the administrative expense, plus interest (if applicable), less expected employee contributions. For payment of the ADC, however, it comprises two parts: the benefit payments paid outside ofTown the Trust Fund and the contribution to the Trust Fund. If the total of the service cost, amortization, and the administrative expense (plus interest, if applicable, and less employee contributions) is less than the total of the benefit payments (if benefit payments are paid outside of the Trust Fund), the contribution to the Trust Fund will be negative and is typically set to zero.

Actuarially Determined Contribution (ADC)

The calculation of the Actuarially Determined Contribution (ADC) follows. The ADC is based on the Town's funding policy. The ADC is calculated as of the end of the year.

The plan's funding policy will produce high contrbiution amounts until the unfunded amount is fully amortized in 2041, and then will reduce to an amount to cover the service cost, with interest, going forward.

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School Fire Police Public Works Town Total

Demographics

Active Employees 26 22 8 15 3 74

Deferred Employees 8 1 1 0 1 11

Retirees and Beneficiaries In Pay Status 72 45 55 16 23 211

Total 106 68 64 31 27 296

Covered-Employee Payroll 1,301,218$ 1,848,249$ 732,330$ 1,008,088$ 282,651$ 5,172,536$

Total Pension Liability 15,494,667$ 39,228,836$ 45,838,296$ 4,282,073$ 11,577,749$ 116,421,621$

Fiduciary Net Position 9,503,357 24,060,254 28,114,039 2,626,327 7,100,990 71,404,967

Net Pension Liability 5,991,310 15,168,582 17,724,257 1,655,746 4,476,759 45,016,654

Original ADC for Measurement Year Ending June 30, 2025* 672,349$ 1,588,849$ 1,924,426$ 188,793$ 472,516$ 4,846,933$

Service Cost (Net of Employee Contributions) 108,402 165,834 198,041 26,061 14,744 513,082 Amortization of Net Pension Liability 482,096 1,220,554 1,426,199 133,231 360,227 3,622,307

Interest to End of Year 39,859 93,581 109,636 10,752 25,311 279,139

Recalculated ADC for Measurement Year Ending June 30, 2025 to Project 2026 and 2027 630,357$ 1,479,969$ 1,733,876$ 170,044$ 400,282$ 4,414,528$

ADC by Department as a % of the Total ADC 14.28% 33.52% 39.28% 3.85% 9.07% 100.00%

ADC by Department by Measurement Year School Fire Police Public Works Town Total

Measurement Year Ending June 30, 2025* 672,349$ 1,588,849$ 1,924,426$ 188,793$ 472,516$ 4,846,933$

Measurement Year Ending June 30, 2026 791,517 1,858,345 2,177,166 213,518 502,620 5,543,166

Measurement Year Ending June 30, 2027 803,307 1,886,025 2,209,596 216,699 510,107 5,625,734

*Calculated in the prior report.

Actuarially Determined Contribution (ADC) by Department

The allocation of the Actuarially Determined Contribution (ADC) by Department follows.

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Valuation Results LDROM Results $ Increase % Increase

Discount Rate 6.75% 3.97%

Present Value of Future Benefits

Active Employees 28,225,252$ 47,823,719$ 19,598,467$ 69.44%

Retirees + 92,864,901 129,132,242 36,267,341 39.05%

Total Present Value of Future Benefits = 121,090,153 176,955,961 55,865,808 46.14%

Total Present Value of Future Normal Costs − 4,668,532 10,394,056 5,725,524 122.64%

Pension Liability

Active Employees 23,556,720$ 37,429,663$ 13,872,943$ 58.89%

Retirees + 92,864,901 129,132,242 36,267,341 39.05%

Total Pension Liability (TPL) = 116,421,621 166,561,905 50,140,284 43.07%

Fiduciary Net Position (FNP) − 71,404,967 71,404,967 - 0.00%

Net Pension Liability (NPL) = 45,016,654$ 95,156,938$ 50,140,284$ 111.38%

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability

61.33% 42.87%

Contributions for the Upcoming Measurement Year

Actuarially Determined Contribution (According to Policy) 4,846,933$ 9,178,171 4,331,238$ 89.36% Reasonable Actuarially Determined Contribution (RADC) 4,846,933 9,178,171 4,331,238 89.36%

Low-Default-Risk Obligation Measure

The low-default-risk obligation measure (LDROM) is a measure of the benefits earned as of the measurement date using an immediate-gain actuarial cost method and a discount rate derived from low-default-risk fixed-income securities whose cash flows are reasonably consistent with the pattern of benefits expected to be paid in the future.

The Valuation Results derive from using a discount rate that assumes a higher rate of return on assets held in trust for the plan, but the risk of not realizing those returns is higher than if a discount rate based on low-risk obligations were used. The LDROM Results show that if the plan's liabilities were measured using securities that are a low default risk, in this case a high-quality 20-year tax-exempt general obligation municipal bond yield rate, the liability is expectedly higher, as is the required contribution. The funded status is conversely lower.

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Current Retirees Future Retirees Total

2025 6,698,237$ 167,782$ 6,866,019$

2026 6,750,109 406,740 7,156,849

2027 6,796,076 635,263 7,431,339

2028 6,856,085 833,734 7,689,819

2029 6,946,823 1,080,589 8,027,412

2030 6,972,375 1,328,169 8,300,544

2031 7,025,258 1,496,296 8,521,554

2032 7,037,566 1,648,231 8,685,797

2033 7,037,372 1,815,329 8,852,701

2034 7,027,626 1,985,149 9,012,775

2035 7,029,416 2,163,933 9,193,349

2036 7,000,234 2,315,362 9,315,596

2037 6,961,071 2,466,969 9,428,040

2038 6,932,875 2,575,992 9,508,867

2039 6,874,056 2,659,015 9,533,071

2040 6,804,965 2,733,715 9,538,680

2041 6,761,828 2,797,381 9,559,209

2042 6,671,943 2,797,381 9,544,016

2043 6,570,943 2,872,073 9,499,473

2044 6,458,406 2,928,530 9,426,097

2045 6,333,895 2,967,691 9,341,499

2046 6,197,039 3,007,604 9,236,834

2047 6,047,575 3,039,795 9,116,319

2048 5,885,527 3,068,744 8,986,688

2049 5,711,308 3,101,161 8,829,668

2050 5,525,493 3,118,360 8,664,953

Measurement Period

Ending June 30:

Projected Retiree Benefit Payments

Projection of Benefit Payments Projected benefit payments for current participants follow. "Future Retirees" are employees currently working, but projected to retire and receive benefits. The projections do not include benefits for employees hired in the future.

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$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

Projected Benefit Payments for Current Participants

Current Retirees Benefit Payments Future Retirees Benefit Payments

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Employer Employee

(a) (b) (c) (d) = (g) − (e) − (f) (e) = (b) × 7.07% (f) = (b) × 0.00%** 28.07%

2025 5,002,646$ -$ 5,002,646$ 4,846,933$ 353,687$ -$ 5,200,620$

2026 4,559,417 - 4,559,417 5,543,166 322,351 - 5,865,517

2027 4,158,573 - 4,158,573 5,625,734 294,011 - 5,919,745

2028 3,880,686 - 3,880,686 5,532,603 274,364 - 5,806,967

2029 3,608,242 - 3,608,242 5,456,128 255,103 - 5,711,231

2030 3,104,986 - 3,104,986 5,314,863 219,522 - 5,534,385

2031 2,859,925 - 2,859,925 5,246,075 202,197 - 5,448,272

2032 2,694,289 - 2,694,289 5,199,581 190,486 - 5,390,067

2033 2,482,370 - 2,482,370 5,140,095 175,504 - 5,315,599

2034 2,234,832 - 2,234,832 5,070,611 158,003 - 5,228,614

2035 1,654,323 - 1,654,323 4,907,663 116,961 - 5,024,624

2036 1,375,990 - 1,375,990 4,829,534 97,283 - 4,926,817

2037 1,145,562 - 1,145,562 4,764,853 80,991 - 4,845,844

2038 943,889 - 943,889 4,708,244 66,733 - 4,774,977

2039 808,004 - 808,004 4,670,101 57,126 - 4,727,227

2040 696,852 - 696,852 4,638,900 49,267 - 4,688,167

2041 602,653 - 602,653 169,165 42,608 - 211,773

2042 547,775 - 547,775 153,760 38,728 - 192,488

2043 464,687 - 464,687 130,438 32,853 - 163,291

2044 392,380 - 392,380 110,141 27,741 - 137,882

2045 351,264 - 351,264 98,600 24,834 - 123,434

2046 323,481 - 323,481 90,801 22,870 - 113,671

2047 318,090 - 318,090 89,288 22,489 - 111,777

2048 313,239 - 313,239 87,926 22,146 - 110,072

*The contributions for the first three years are calculated separately. Contributions for subsequent years use the percentages shown.

**The block is closed so there are no expected future employees.

Projection of Contributions

Measurement

Period Ending

June 30:

Payroll Projected Contributions*

Related to Payroll of Future Employees

28.07% + Amortization of NOL for 16 Total

Future Employees**

Current Employees

Current Participants

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Projection of Contributions Charts

Projected Payroll for Current and Future Employees

Projected Employer Contributions for Current and Future Plan Participants

1000000

2000000

3000000

4000000

5000000

6000000

Projected Payroll

Current Employees Future Employees

1000000

2000000

3000000

4000000

5000000

6000000

Projected Employer Contributions

Current Participants — Employer Future Plan Members

$1.0 M

$2.0 M

$3.0 M

$4.0 M

$5.0 M

$6.0 M

Projected Payroll

Current Employees

$1.0 M

$2.0 M

$3.0 M

$4.0 M

$5.0 M

$6.0 M

$7.0 M

Projected Employer Contributions

Current Participants — Employer Current Participants — Employee

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Measurement

Period Ending

June 30:

Investment

Rate of

Return

(a)

Projected

Beginning

Fiduciary Net

Position

(b)

Employer

Contributions for

Current Participants

(c)

Projected Benefit

Payments

(d)

Projected

Administrative

Expense

(e)

Projected

Investment

Earnings

(f)

Projected Ending

Fiduciary Net

Position

(g) = [(b) : (f)]

2025 6.75% 71,404,967$ 4,846,933$ (6,866,019)$ (110,178)$ 4,747,973$ 74,023,676$

2026 6.75% 74,023,676 5,543,166 (7,156,849) (112,932) 4,938,325 77,235,386

2027 6.75% 77,235,386 5,625,734 (7,431,339) (115,755) 5,148,543 80,462,569

2028 6.75% 80,462,569 5,532,603 (7,689,819) (118,649) 5,354,413 83,541,117

2029 6.75% 83,541,117 5,456,128 (8,027,412) (121,615) 5,548,140 86,396,358

2030 6.75% 86,396,358 5,314,863 (8,300,544) (124,655) 5,726,780 89,012,802

2031 6.75% 89,012,802 5,246,075 (8,521,554) (127,771) 5,893,504 91,503,056

2032 6.75% 91,503,056 5,199,581 (8,685,797) (130,965) 6,054,376 93,940,251

2033 6.75% 93,940,251 5,140,095 (8,852,701) (134,239) 6,211,136 96,304,542

2034 6.75% 96,304,542 5,070,611 (9,012,775) (137,595) 6,362,865 98,587,648

2035 6.75% 98,587,648 4,907,663 (9,193,349) (141,035) 6,505,264 100,666,191

2036 6.75% 100,666,191 4,829,534 (9,315,596) (144,561) 6,638,684 102,674,252

2037 6.75% 102,674,252 4,764,853 (9,428,040) (148,175) 6,768,129 104,631,019

2038 6.75% 104,631,019 4,708,244 (9,508,867) (151,879) 6,895,447 106,573,964

2039 6.75% 106,573,964 4,670,101 (9,533,071) (155,676) 7,024,363 108,579,681

2040 6.75% 108,579,681 4,638,900 (9,538,680) (159,568) 7,158,375 110,678,708

2041 6.75% 110,678,708 169,165 (9,559,209) (163,557) 7,148,379 108,273,486

2042 6.75% 108,273,486 153,760 (9,544,016) (167,646) 6,985,881 105,701,465

2043 6.75% 105,701,465 130,438 (9,499,473) (171,837) 6,812,844 102,973,437

2044 6.75% 102,973,437 110,141 (9,426,097) (176,133) 6,630,349 100,111,697

2045 6.75% 100,111,697 98,600 (9,341,499) (180,536) 6,439,499 97,127,761

2046 6.75% 97,127,761 90,801 (9,236,834) (185,049) 6,241,200 94,037,879

2047 6.75% 94,037,879 89,288 (9,116,319) (189,675) 6,036,493 90,857,666

2048 6.75% 90,857,666 87,926 (8,986,688) (194,417) 5,825,998 87,590,485

2049 6.75% 87,590,485 86,645 (8,829,668) (199,277) 5,610,555 84,258,740

Projection of Fiduciary Net Position Current Participants Only

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The investment earnings are determined using an investment rate of return of 6.75%.

Measurement

Period Ending

June 30:

Projected

Beginning

Fiduciary Net

Position

Total Projected

Benefit Payments

Funded Portion of Benefit

Payments

Unfunded Portion of Benefit

Payments

Present Value of

Funded Benefit

Payments at the

Investment Rate of Return

Present Value of

Unfunded Benefit

Payments at

3.97%

Present Value of

Benefit Payments at an Equivalent

Single Discount

Rate of 6.75%

2025 71,404,967$ 6,866,019$ 6,866,019$ -$ 6,645,399$ -$ 6,645,399$

2026 74,023,676 7,156,849 7,156,849 - 6,488,884 - 6,488,884

2027 77,235,386 7,431,339 7,431,339 - 6,311,715 - 6,311,715

2028 80,462,569 7,689,819 7,689,819 - 6,118,268 - 6,118,268

2029 83,541,117 8,027,412 8,027,412 - 5,983,015 - 5,983,015

2030 86,396,358 8,300,544 8,300,544 - 5,795,397 - 5,795,397

2031 89,012,802 8,521,554 8,521,554 - 5,573,494 - 5,573,494

2032 91,503,056 8,685,797 8,685,797 - 5,321,702 - 5,321,702

2033 93,940,251 8,852,701 8,852,701 - 5,080,995 - 5,080,995

2034 96,304,542 9,012,775 9,012,775 - 4,845,779 - 4,845,779

2035 98,587,648 9,193,349 9,193,349 - 4,630,320 - 4,630,320

2036 100,666,191 9,315,596 9,315,596 - 4,395,214 - 4,395,214

2037 102,674,252 9,428,040 9,428,040 - 4,166,994 - 4,166,994

2038 104,631,019 9,508,867 9,508,867 - 3,936,972 - 3,936,972

2039 106,573,964 9,533,071 9,533,071 - 3,697,418 - 3,697,418

2040 108,579,681 9,538,680 9,538,680 - 3,465,661 - 3,465,661

2041 110,678,708 9,559,209 9,559,209 - 3,253,508 - 3,253,508

2042 108,273,486 9,544,016 9,544,016 - 3,042,939 - 3,042,939

2043 105,701,465 9,499,473 9,499,473 - 2,837,224 - 2,837,224

2044 102,973,437 9,426,097 9,426,097 - 2,637,292 - 2,637,292

2045 100,111,697 9,341,499 9,341,499 - 2,448,358 - 2,448,358

2046 97,127,761 9,236,834 9,236,834 - 2,267,846 - 2,267,846

2047 94,037,879 9,116,319 9,116,319 - 2,096,728 - 2,096,728

Depletion Date Projection Current Participants Only

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$20.0 M

$40.0 M

$60.0 M

$80.0 M

$100.0 M

$120.0 M

Depletion Date Projection

Funded Portion of Benefit Payments Projected Beginning Fiduciary Net Position

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Schedule of Deferred Outflows and Inflows of Resources

Recognized Deferred

2024 2025 2026 2027 2028 2029

2024 2025 2026 2027 2028 2029

2014–2015 1,229,633$ 1,229,633$ 4.0 0.0 -$ -$ -$ -$ -$ -$ -$

2015–2016 1,024,895 1,024,895 4.0 0.0 - - - - - - -

2016–2017 - - 4.0 0.0 - - - - - - -

2017–2018 1,978,473 1,978,473 4 - - - - - - - -

2018–2019 1,525,148 1,525,148 4.0 0.0 - - - - - - -

2019–2020 682,436 682,436 3.0 0.0 - - - - - - -

2020–2021 (1,568,488) (1,568,488) 3.0 0.0 - - - - - - -

2021–2022 1,125,231 642,990 3.5 1.5 321,495 160,746 - - - - -

2022–2023 688,109 344,055 2.0 1.0 344,054 - - - - - -

2023–2024 25,117 - 1.7 1.7 14,775 10,342 - - - - -

2014–2015 2,343,849 2,343,849 4.0 0.0 - - - - - - -

2015–2016 - - 4.0 0.0 - - - - - - -

2016–2017 - - 4.0 0.0 - - - - - - -

2017–2018 487,587 487,587 4.0 0.0 - - - - - - -

2018–2019 2,358,787 2,358,787 4.0 0.0 - - - - - - -

2019–2020 5,424,302 5,424,302 3.0 0.0 - - - - - - -

2020–2021 (5,924,255) (5,924,255) 3.0 0.0 - - - - - - -

2021–2022 (2,068,774) (1,182,158) 3.5 1.5 (591,079) (295,537) - - - - -

2022–2023 966,096 483,048 2.0 1.0 483,048 - - - - - -

2023–2024 - - 1.7 1.7 - - - - - - -

2017–2018 (329,198) (329,198) 5.0 0.0

2018–2019 2,085,544 2,085,544 5.0 0.0

2019–2020 4,615,302 3,692,242 5.0 1.0 923,060

2020–2021 (12,392,423) (7,435,453) 5.0 2.0 (2,478,485) (2,478,485)

2021–2022 15,678,602 6,271,442 5.0 3.0 3,135,721 3,135,721 3,135,718

2022–2023 (2,396,641) (479,329) 5.0 4.0 (479,329) (479,329) (479,329) (479,325)

2023–2024 (3,063,909) - 5.0 5.0 (612,782) (612,782) (612,782) (612,782) (612,781)

Summary of Deferred Outflows and Inflows of Resources

Measurement Period: July 1, 2023 — June 30, 2024

Fiscal Reporting Period: July 1, 2023 — June 30, 2024

Measurement/Report Years Ending June 30: 2024 2025 2026 2027 2028 2029

Differences Between Expected and Actual Experience 680,324$ 171,088$ -$ -$ -$ -$ -$

Changes of Assumptions (108,031) (295,537) - - - - -

Differences Between Projected and Actual Earnings 488,185 (434,875) 2,043,607 (1,092,107) (612,781) - -

Total 1,060,478$ (559,324)$ 2,043,607$ (1,092,107)$ (612,781)$ -$ -$

Remaining

Remaining

Schedule of Deferred Outflows and Inflows of Resources

Increase/(Decrease) in Expense: Measurement / Report Years Ending June 30:

Measurement Period Base Amount

Recognition Period

Remaining Period

Changes of Assumptions

Differences Between Projected and Actual Earnings

Differences Between Expected and Actual Experience

Amount Previously

Recognized

Precision Actuarial Inc. / GovInvest inc. 12/9/2024 Page | 28

GASB 68 requires a disclosure of the changes in the Net Pension Liability for the last ten fiscal years, or for as many years as are available.

Measurement Date (June 30): 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Report Date (June 30): 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Total Pension Liability

Service Cost 1,240,913$ 1,252,788$ 1,316,275$ 1,354,501$ 1,153,715$ 1,091,474$ 1,217,126$ 898,771$ 908,903$ 1,026,471$

Interest 5,245,240 5,652,355 5,988,522 6,194,141 6,507,380 6,903,374 7,108,648 7,167,954 7,234,775 7,557,172

Changes of Benefit Terms - 1,122,120 - (15,093) - - 373,382 - 985,123 -

Differences Between Expected and Actual Experience 1,229,633 1,024,895 - 1,978,473 1,525,148 682,436 (1,568,488) 1,125,231 688,109 25,117

Changes of Assumptions 2,343,849 - - 487,587 2,358,787 5,424,302 (5,924,255) (2,068,774) 966,096 -

Benefit Payments, Including Refunds of Employee Contributions (3,727,333) (4,353,001) (3,917,789) (4,675,839) (5,640,660) (5,591,756) (5,261,905) (6,275,605) (6,011,159) (6,237,517)

Net Change in Total Pension Liability 6,332,302 4,699,157 3,387,008 5,323,770 5,904,370 8,509,830 (4,055,492) 847,577 4,771,847 2,371,243

Total Pension Liability — Beginning 78,330,009 84,662,311 89,361,468 92,748,476 98,072,246 103,976,616 112,486,446 108,430,954 109,278,531 114,050,378

Total Pension Liability — Ending (a) 84,662,311$ 89,361,468$ 92,748,476$ 98,072,246$ 103,976,616$ 112,486,446$ 108,430,954$ 109,278,531$ 114,050,378$ 116,421,621$

Plan Fiduciary Net Position

Net Investment Income 277,740$ (395,702)$ 5,647,914$ 3,897,741$ 1,706,305$ (773,812)$ 15,952,848$ (10,864,814)$ 6,414,653$ 7,424,068$

Employer Contributions 4,054,721 3,623,290 3,955,207 4,322,591 4,324,436 4,484,385 4,918,997 5,939,829 4,424,009 4,763,142

Employee Contributions 348,380 347,245 334,211 301,399 271,175 246,659 230,102 191,351 327,498 353,796

Benefit Payments, Including Refunds of Employee Contributions

(3,727,333) (4,353,001) (3,917,789) (4,675,839) (5,640,660) (5,591,756) (5,261,905) (6,275,605) (6,011,159) (6,237,517)

Administrative Expense (30,000) (45,000) (33,000) (46,104) (36,000) - (37,500) (243,510) (137,952) (107,491)

Other Miscellaneous Income/(Expense) - - - - - - - - (31,678) (32,995)

Net Change in Plan Fiduciary Net Position 923,508 (823,168) 5,986,543 3,799,788 625,256 (1,634,524) 15,802,542 (11,252,749) 4,985,371 6,163,003

Plan Fiduciary Net Position — Beginning 46,829,397 47,752,905 46,929,737 52,916,280 56,716,068 57,341,324 55,706,800 71,509,342 60,256,593 65,241,964

Plan Fiduciary Net Position — Ending

(b) 47,752,905$ 46,929,737$ 52,916,280$ 56,716,068$ 57,341,324$ 55,706,800$ 71,509,342$ 60,256,593$ 65,241,964$ 71,404,967$

Net Pension Liability -

Town's Net Pension Liability — Ending = (a) ‒ (b) 36,909,406$ 42,431,731$ 39,832,196$ 41,356,178$ 46,635,292$ 56,779,646$ 36,921,612$ 49,021,938$ 48,808,414$ 45,016,654$