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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2025
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 ended June 30, 2025, are as follows:
Years Ending June 30:
2026
$ 35,623
2027
26,223
$ 61,846
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:
RETIREMENT PLAN PROVISIONS
PLAN 1
PLAN 2
HYBRID RETIREMENT PLAN
About Plan 1
Plan 1 is a defined benefit plan. The
retirement benefit is based on a
member's age, service credit and
average final compensation at
retirement using a formula.
About Plan 2
Same as Plan 1.
About the Hybrid Retirement Plan
The Hybrid Retirement Plan combines the
features of a defined benefit plan and a
defined contribution plan.
•
The defined benefit is based on
a member's age, service credit
and average final
compensation at retirement
using a formula.
•
The benefit from the defined
contribution component of the
plan depends on the member
and employer contributions made
to the plan and the investment
performance of those
contributions.
•
In addition to the monthly benefit
payment payable from the
defined benefit plan at retirement,
a member may start receiving
distributions from the balance in
the defined contribution account,
reflecting the contributions,
investment gains or losses, and
any required fees.
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