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CITY OF PLEASANTON
<br />
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />FOR THE YEAR ENDED JUNE 30, 2022
<br />
<br />
<br />Note 11: Defined Benefit Pension Plan (Continued)
<br />
<br />Net Pension Liability – The City’s net pension liability for the Safety (Fire) Plan is
<br />measured as the total pension liability, less the pension plan’s fiduciary net position.
<br />The net pension liability of each plan is measured as of June 30, 2021, using an annual
<br />actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using standard
<br />update procedures.
<br />
<br />Changes in the Net Pension Liability – The changes in the Net Pension Liability for the
<br />Safety (Fire) Plan (City of Pleasanton only) is as follows:
<br />
<br />Total Pension
<br />Liability
<br />Plan Fiduciary Net
<br />Position
<br />Net Position
<br />Liability/(Asset)
<br />Balance at June 30, 2020 Measurement Date 120,331,499$ 78,364,082$ 41,967,417$
<br />Changes in the year:
<br />Service cost 2,299,227 - 2,299,227
<br />Interest on the total pension liability 8,398,822 - 8,398,822
<br />Differences between actual and expected experience (826,742) - (826,742)
<br />Contribution - employer - 4,208,908 (4,208,908)
<br />Contribution - employee - 1,037,801 (1,037,801)
<br />Net investment income - 17,836,256 (17,836,256)
<br />Benefit payments, including refunds of employee contributions (6,376,662) (6,376,662) -
<br />Administrative expense - (78,281) 78,281
<br />Net income 3,494,645 16,628,022 (13,133,377)
<br />Balance at June 30, 2021 Measurement Date 123,826,144$ 94,992,104$ 28,834,040$
<br />Safety (Fire)
<br />
<br />
<br />Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following
<br />presents the net pension liability of the City of Pleasanton for the Safety (Fire) Plan,
<br />calculated using the discount rate for the Plans, as well as what the City’s net pension
<br />liability would be if it were calculated using a discount rate that is 1-percentage point lower
<br />or 1-percentage point higher than the current rate:
<br />
<br />6.15%
<br />43,864,117$
<br />7.15%
<br />28,834,040$
<br />8.15%
<br />16,244,966$ Net Pension Liability
<br />1% Decrease
<br />Net Pension Liability
<br />Current Discount Rate
<br />Net Pension Liability
<br />1% Increase
<br />
<br />
<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 />
<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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<br />104
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