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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024
25
Note 8—Defined benefit pension plan (continued)
Discount Rate – The discount rate used to measure the total pension liability was 6.75%. The projection of cash
flows used to determine the discount rate assumed that VRS member contributions will be made per the VRS
statutes and the employer contributions will be made in accordance with the VRS funding policy at rates equal to
the difference between actuarially determined contribution rates adopted by the VRS Board of Trustees and the
member rate. Consistent with the phased-in funding provided by the General Assembly for state and teacher
employer contributions, political subdivisions were also provided with an opportunity to use an alternate
employer-contribution rate. For the year ended June 30, 2024, the alternate rate was the employer contribution
rate used in FY 2012 or 100% of the actuarially determined employer-contribution rate from the June 30, 2021,
actuarial valuations, whichever was greater. From July 1, 2021, on, participating employers are assumed to
continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the
pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments
of current active and inactive employees. Therefore, the long-term expected rate of return was applied to all
periods of projected benefit payments to determine the total pension liability.
Changes in Net Pension Liability (Asset)
Total
Plan Fiduciary
Net
Pension Liability
Net Position
Pension Liability
(a)
(b)
(a) – (b)
Balances at June 30, 2023
8,747,953
$
9,510,166
$
(762,213)
$
Changes for the year:
Service cost
221,162
-
221,162
Interest
589,989
-
589,989
Differences between expected and
actual experience
444,571
-
444,571
Contributions – employer
-
97,277
(97,277)
Contributions – employee
-
120,882
(120,882)
Net investment income
-
609,260
(609,260)
Benefit payments, including refunds of
employee contributions
(457,079)
(457,079)
-
Administrative expenses
-
(6,146)
6,146
Other changes
-
245
(245)
Net changes
798,643
364,439
434,204
Balances at June 30, 2024
9,546,596
$
9,874,605
$
(328,009)
$
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate – The following presents the net
pension liability of the Commission using the discount rate of 6.75%, as well as what the Commission’s net pension
liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or
one percentage point higher (7.75%) than the current rate:
1%
Current
1%
Decrease
Discount Rate
Increase
(5.75%)
(6.75%)
(7.75%)
Net pension asset
820,065
$
(328,009)
$
(1,437,506)
$
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