City of Coral Springs, Florida

Notes to Financial Statements

Note 15. Employee Retirement Plans (Continued) Investment Rate of Return General Employees’ Retirement Plan

For the year ended September 30, 2022, the annual money-weighted rate of return (loss) on pension plan investments, net of pension plan investment expense was -16.3%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate

The following table illustrates the impact of interest rate sensitivity on the net pension liability (asset) as of September 30, 2022:

The following table summarizes net pension asset, net pension liability, deferred inflow and outflow of resources and pension expense (credit) as previously disclosed in Note 13 for each defined benefit pension plan:

City of Coral Springs, Florida

Notes to Financial Statements

Note 15. Employee Retirement Plans (Continued)

Pension and Other Post-Employment Benefit (OPEB) Plans That Do Not Issue Stand-Alone Financial Statements

The following are the employee pension plans that do not issue stand-alone financial statements:

Note 15. Employee Retirement Plans (Continued)

General Employees’ and Management Defined Contribution Pension Plans

The City has contracted with the MissionSquare on behalf of its general employees for three defined contribution pension plans and a qualified domestic relations order (QDRO) plan The City also contracts with the MissionSquare for three defined contribution pension plans for all general employees categorized as directors and managers and a separate plan for the City Manager and City Attorney All eight plans are established under the provisions of Section 401(a) of the Internal Revenue Code as Money Purchase Plans and Trusts The City Commission has the authority for establishing or amending the plans’ provisions The assets of the plans are owned by the employee; however, the City has a custodial responsibility to properly administer the plans In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings

The General Employees’ 401(a) Plan provisions require the City to contribute 7% of each participant’s salary for the first seven years of service and 9% of the participant’s salary thereafter. Participants are required to contribute 6%, 8% or 10% of earnings (depending on plan selection) for the plan year. Employees are eligible to participate from the date of employment. The City’s contributions for each employee (and interest allocated to the employee’s account) are fully vested after five years of continuous service. City contributions for, and interest forfeited by employees who leave employment before five years of service, are refunded to the City by the trustee after a minimum holding period of three years On September 30, 2022, there were 88 plan members in the 6% plan, 120 in the 8% plan, and 184 in the 10% plan

For the year ended September 30, 2022, the City’s and employees’ contributions to the three defined contribution plans were $1,793,649 and $1,927,243, respectively

The Management 401(a) Plan provisions require the City to contribute 11% of each participant’s salary for the first seven years of service and 13% of the participant’s salary thereafter Participants contribute 0%, 5% or 10% of salary (depending on plan selection) for the plan year Employees are eligible to participate in the plan from the date of employment The City’s contributions for each employee (and interest allocated to the employee’s account) are fully vested at the time of the contribution.

The City’s contributions were calculated using the covered payroll amount of approximately $8.6 million for the fiscal year ended September 30, 2022. The City’s and employees’ contributions for the fiscal year ended September 30, 2022 were $61,261 and $0 for the Management 401(a) Plan – 0%; $214,727 and $87,510 for the Management 401(a) Plan – 5%; $725,233 and $583,425 for the Management 401(a) Plan – 10%; and $138,980 and $0 for the City Manager 401(a) Plan, respectively On September 30, 2022, there were 4 plan members in the 0% plan, 13 plan members in the 5% plan and 44 members in the 10% plan.

The City Manager’s 401(a) Plan requires the City to contribute 20% of the City Manager’s and the City Attorney’s salary for each plan year The City Manager and City Attorney may contribute up to 10% of their salary for each plan year The City’s contribution and those of the City Manager and City Attorney (and interest allocated to their account) are fully vested at the time of the contribution.