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CITY OF PLEASANTON
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />FOR THE YEAR ENDED JUNE 30, 2022
<br />Note 11: Defined Benefit Pension Plan (Continued)
<br />Changes in the Net Pension Liability – The changes in the Net Pension Liability for the
<br />Miscellaneous Plan are as follows:
<br />Total Pension
<br />Liability
<br />Plan Fiduciary
<br />Net Position
<br />Net Position
<br />Liability/(Asset)
<br />Balance at June 30, 2020 Measurement Date 308,284,562$ 202,816,187$ 105,468,375$
<br />Changes in the year:
<br />Service cost 5,876,564 - 5,876,564
<br />Interest on the total pension liability 21,730,715 - 21,730,715
<br />Differences between actual and expected experience 702,330 - 702,330
<br />Contribution - employer - 10,488,757 (10,488,757)
<br />Contribution - employee - 2,341,839 (2,341,839)
<br />Net investment income - 45,976,982 (45,976,982)
<br />Benefit payments, including refunds of employee contributions - (15,998,179) -
<br />Administrative expense - (202,601) 202,601
<br />Net income 12,311,430 42,606,798 (30,295,368)
<br />Balance at June 30, 2021 Measurement Date 320,595,992$ 245,422,985$ 75,173,007$
<br />Miscellaneous
<br />Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following
<br />presents the net pension liability of the City for the Miscellaneous Plan, calculated using
<br />the discount rate for the Plan, as well as what the City’s net pension liability would be
<br />if it were calculated using a discount rate that is 1- percentage point lower or 1- percentage
<br />point higher than the current rate:
<br />Miscellaneous
<br />6.15%
<br />115,926,089$
<br />7.15%
<br />75,173,007$
<br />8.15%
<br />41,268,121$ Net Pension Liability
<br />1% Decrease
<br />Net Pension Liability
<br />Current Discount Rate
<br />Net Pension Liability
<br />1% Increase
<br />Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension –
<br />Gains and losses related to changes in total pension liability and fiduciary net position
<br />are recognized in pension expense systematically over time.
<br />The first amortized amounts are recognized in pension expense for the year the gain or
<br />loss occurs. The remaining amounts are categorized as deferred outflows and deferred
<br />inflows of resources related to pensions and are to be recognized in future pension expense.
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