City of Coral Springs, Florida

Notes to Financial Statements

Note 15. Employee Retirement Plans (Continued)

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources

For the year ended September 30, 2022, a pension expense or a credit to pension expense was recognized by the City as follows:

On September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The deferred outflows of resources related to the General Plan totaling $800,000, the Police Plan totaling $11,238,201 and the Fire Plan totaling $6,484,092 resulting from City contributions made to the Plan subsequent to the measurement date, will be recognized as a reduction of the pension liability for the fiscal year ending September 30, 2023. Other amounts reported as deferred outflows (inflows) of resources related to pensions will be recognized in pension expense as follows:

City of Coral Springs, Florida

Notes to Financial Statements

Note 15. Employee Retirement Plans (Continued)

The schedule of changes in the net pension liability and related ratios and the schedule of contributions are presented as Required Supplementary Information (RSI) following the notes to the financial statements and provides additional information about the net pension liability, plan assets and contributions

Actuarial Methods and Assumptions

The total pension liability (asset) was determined using the following actuarial assumptions applied to all prior periods included in the measurement: General Employees Police Officers’

Mortality Table

PUB-2010 Headcount

Weighted Mortality Tables with mortality improvements projected to all future years after 2010 using Scale MP2018.

Sex distinct PUB 2010 safety employees headcount weighted mortality table with generational mortality improvement scale MP-2018

As mandated by Chapter 2015-157, Laws of Florida, the assumed rates of mortality are the rates used in Milliman's July 1, 2020 FRS valuation for special risk employees, updated with appropriate adjustments made based on plan demographics.

Note 15. Employee Retirement Plans (Continued) Change in Assumptions

General Employees’ Retirement Plan

For the measurement date of September 30, 2021, the following assumptions were changed:

• Annual assumed rate of investment return was lowered from 6 50% to 6 00%, net of investment related expenses.

• The single discount rate and investment rate of return was lowered from 6 50% to 6 00%, net of investment related expenses.

• The mortality table was changed from RP-2000 with blue collar adjustments and generational projection using Scale BB to PUB-2010 Headcount weighted mortality tables with mortality improvements projected to all future years after 2010 using Scale MP-2018.

Firefighters’ Retirement Plan

For the measurement date of September 30, 2021, the following assumptions were changed:

• As mandated by Chapter 2015-157, Laws of Florida, the assumed rates of mortality are the rates used in Milliman's July 1, 2020 FRS valuation for special risk employees, updated with appropriate adjustments made based on plan demographics.

Discount Rate

The projection of cash flows used to determine the discount rate assumes plan members will contribute at the current contribution rate and the City will continue to make future contributions at the actuarially determined contribution rate. 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 plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan

Long-Term Rate of Return

The long-term expected rate of return on pension plan investments are developed for each major asset class by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation Best estimates of real rates of return for each major asset class included in each pension plan’s target asset allocation as of September 30, 2021, are summarized in the following table: