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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024
23
Note 8—Defined benefit pension plan (continued)
The Commission’s contractually required contribution rate for the year ended June 30, 2024 was 4.53% of covered
employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of
June 30, 2023.
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 $98,602 for the year ended June 30, 2024.
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, 2024. The total pension liability used to calculate the net pension liability (asset) was determined by an
actuarial valuation performed as of June 30, 2023, rolled forward to the measurement date of June 30, 2024.
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, 2022, 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, 2023:
Inflation
2.50% General
Employees – Salary increases, including inflation
3.50 – 5.35%
Public safety employees with hazardous duty benefits
– Salary increases, including inflation
3.50 – 4.75%
Investment rate of return, net of pension plan
investment expense, including inflation
6.75%
Mortality Rates: General Employees – Rates projected generationally with Modified MP-2020 Improvement Scale
that is 75% of the MP-2020 rates.
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial
experience study for the period from July 1, 2016 through June 30, 2020, except the change in the discount rate,
which was based on VRS Board action effective as of July 1, 2024. Changes to the actuarial assumptions as a
result of the experience study are as follows:
General Employees:
Mortality Rates (Preretirement, postretirement, healthy, and disabled) – Update to PUB2010 public sector
mortality tables. For future mortality improvements, replace load with a modified Mortality Improvement
Scale MP-2020Retirement
Retirement Rates – Adjusted rates to better fit experience for Plan 1; set separate rates based on
experience for Plan 2/Hybrid; changed final retirement age from 75 to 80 for all.
Withdrawal Rates – adjusted rates to better fit experience at each year age and service through nine
years of service
Disability Rates – No change
Line of Duty Disability – No change
Discount Rate – No change
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