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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024
22
Note 7—Long-term obligations (continued)
IT Subscription Liability
The Commission recognizes a subscription liability at the commencement of the subscription term. The discount
rate used to measure the subscription liability was the Commission’s incremental borrowing rate, and the
subscription liability is measured at the present value of the subscription payments expected to be paid during the
subscription term. The Commission’s future minimum payments for the year ending June 30, 2025, are $31,972.
Note 8—Defined benefit pension plan
Plan Description – All full-time, salaried permanent employees of the Commission are automatically covered by
the VRS Retirement Plan upon employment. This multi-employer agent plan is administered by the VRS along
with plans for other employer groups in the Commonwealth of Virginia. Members earn one month of service credit
for each month they are employed and for which they and their employer pay contributions to VRS. Members are
eligible to purchase prior service, based on specific criteria as defined in the Code of Virginia, as amended. Eligible
prior service that may be purchased includes prior public service, active military service, certain periods of leave,
and previously refunded service.
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, 2023, actuarial valuation, the following employees were
covered by the benefit terms of the pension plan:
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.
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