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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2023
22
Note 9—Defined benefit pension plan (continued)
The VRS administers three different benefit structures for covered employees – Plan 1, Plan 2, and Hybrid. Each
of these benefit structures has different eligibility criteria. The specific information for each plan and the eligibility
for covered groups within each plan is available at:
•
https://www.varetire.org/members/benefits/defined-benefit/plan1.asp,
•
https://www.varetire.org/members/benefits/defined-benefit/plan2.asp,
•
https://www.varetirement.org/hybrid.html.
Employees Covered by Benefit Terms – As of the June 30, 2022, actuarial valuation, the following employees were
covered by the benefit terms of the pension plan:
Inactive members or their beneficiaries currently
receiving benefits
43
Inactive members:
Vested inactive members
11
Nonvested inactive members
26
Inactive members active elsewhere in VRS
19
Total inactive members
56
Active members
49
Total covered employees
148
Contributions – The contribution requirement for active employees is governed by Section 51.1-145 of the Code of
Virginia, as amended, but may be impacted as a result of funding options provided to political subdivisions by the
Virginia General Assembly. Employees are required to contribute 5.00% of their compensation toward their retirement.
The Commission’s contractually required contribution rate for the year ended June 30, 2023 was 5.60% of covered
employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of
June 30, 2022.
This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the
pension plan from the Commission were $120,790 for the year ended June 30, 2023.
Net Pension Liability (Asset) – The net pension liability (asset) is calculated separately for each employer and
represents that particular employer’s total pension liability determined in accordance with U.S. GAAP, less that
employer’s fiduciary net position. For political subdivisions, the net pension liability (asset) was measured as of
June 30, 2023. The total pension liability used to calculate the net pension liability (asset) was determined by an
actuarial valuation performed as of June 30, 2022, rolled forward to the measurement date of June 30, 2023.
Actuarial Assumptions – The total pension liability for General Employees in the Political Subdivision’s Retirement
Plan was based on an actuarial valuation as of June 30, 2021, using the Entry Age Normal actuarial cost method and
the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement
date of June 30, 2022:
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