CAFR 2016

38ss

the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the

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.

Sensitivity of the City’s proportionate share of the net pension asset to changes in the discount rate

The following presents the City’s proportionate share of the net pension asset calculated using the discount rate of 7.25

percent, as well as what the City’s proportionate share of the net pension asset or net pension liability would be if it were

calculated using a discount rate that is one percentage point lower (6.25 percent) or one percentage point higher (8.25

percent) than the current rate:

Discount

Decrease

Rate

Increase

(6.25%)

(7.25%)

(8.25%)

City's proportionate share of the net

pension liability (asset)

84,665,579

12,141,673

(48,958,112)

Pension plan fiduciary net position

Detailed information about the pension plan’s fiduciary net position is available in the separately issued Comprehensive

Annual Financial Report (CAFR) for the State of North Carolina.

2. Law Enforcement Officers Special Separation Allowance

Plan Description

The City is the administrator of a single-employer, defined benefit, retirement system (Separation Allowance) established by

the City to provide special separation benefits to its law enforcement officers, as required by state law. The payroll for

employees covered by the System for the Fiscal Year ended June 30, 2016 was $37,308,704. The City’s total payroll was

$157,237,942.

All full-time City law enforcement officers are covered by the Separation Allowance. At December 31, 2015, the date of the

latest actuarial valuation, the Separation Allowance’s membership consisted of:

Retirees currently receiving benefits

136

Active plan members

690

Total

826

The Separation Allowance provides separation benefits to all full-time City law enforcement officers who meet the

following requirements:

(1)

Have (i) completed 30 or more years of creditable service or, (ii) attained 55 years of age and completed 5 or

more years of creditable service; and

(2)

Have not attained 62 years of age; and

(3)

Have completed at least 5 years of continuous service as a law enforcement officer immediately preceding a

service retirement

The qualified law enforcement officers are entitled to an annual retirement benefit of 0.85% of the annual equivalent of the

base rate of compensation most recently applicable to the covered employee for each year of creditable service. The

retirement benefits are paid semi-monthly in equal installments. Payments to retired officers cease at their death or on the

last day of the month in which the officer attains 62 years of age or upon the first day of reemployment by any State

department, agency, or institution.

Article 12D of G. S. Chapter 143 assigns the authority to establish and amend benefit provisions to the North Carolina

General Assembly.