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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024
33
Note 10—Other postemployment benefits – VRS Group Life Insurance (GLI) Program (continued)
Discount Rate – The discount rate used to measure the GLI OPEB 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
guidance 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. Through the fiscal year ended June 30, 2023, the rate contributed by the employer for the OPEB
liabilities will be subject to the portion of the VRS board-certified rates that are funded by the Virginia General
Assembly. From July 1, 2023 forward, participating employers are assumed to contribute 100% of the actuarially
determined contribution rates. Based on those assumptions, the GLI OPEB’s fiduciary net position was projected
to be available to make all projected future benefit payments of eligible employees. Therefore, the long-term
expected rate of return was applied to all periods of projected benefit payments to determine the total OPEB
liability.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate – The following presents the net GLI OPEB
liability of the Commission using the discount rate of 6.75%, as well as what the Commission’s net OPEB 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 discount rate:
1%
1%
Decrease
Current
Increase
(5.75%)
(6.75%)
(7.75%)
Net OPEB liability
201,242
$
135,762
$
82,821
$
OPEB Plan Fiduciary Net Position – Information about the various VRS OPEB plan fiduciary net position is
available in the separately issued VRS 2023 Annual Report. A copy of the 2023 VRS Annual Report may be
downloaded from the VRS website at varetire.org/pdf/publications/2023-annual-report.pdf, or by writing to the
System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
Note 11—Leasing arrangements as lessor
The Commission leases portions of the Airport property to tenants. The leases are discounted at 1.5%. As the
lessor, the Commission recognizes lease revenue and interest revenue in a systematic and rational manner over
the terms of the underlying leases. Lease receivables are measured based on payments using the interest method
during the respective lease terms.
Future lease receipts as of June 30, 2024 were as follows:
Years Ending June 30,
Principal
Interest
2025
91,771
$
6,171
$
2026
93,532
4,840
2027
95,339
3,441
2028
97,183
1,969
2028
55,485
777
2029
24,398
85
457,708
$
17,283
$
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