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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2020
<br />IV. Detailed Notes on All Activities and Funds (Continued)
<br />F. Employee Retirement Systems and Plans (Continued)
<br />1. Texas Municipal Retirement System (Continued)
<br />Discount Rate
<br />The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows
<br />used to determine the discount rate assumed that employee and employer contributions will be made at the
<br />rates specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was
<br />projected to be available to make all projected future benefit payments of current active and inactive
<br />employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all
<br />periods of projected benefit payments to determine the Total Pension Liability.
<br />Net Pension Liability and Changes in the Pension Liability
<br />Sensitivity of the Net Pension Liability to Changes in the Discount Rate
<br />The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
<br />well as what the City's net pension liability (asset) would have been if it were calculated using a discount
<br />rate that is 1 -percentage -point lower (5.75%) or 1 -percentage -point higher (7.75%) than the current rate:
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<br />Increase (Decrease)
<br />Plan
<br />Net Pension
<br />Total Pension
<br />Fiduciary
<br />Liability
<br />Liability
<br />Net Position
<br />(Asset)
<br />(a)
<br />(b)
<br />(a) — (b)
<br />Balance at 12/31/2018
<br />$ 63,657,022
<br />$58,216,474
<br />$ 5,440,548
<br />Changes for the year:
<br />Service Cost
<br />1,233,792
<br />-
<br />1,233,792
<br />Interest
<br />4,233,112
<br />-
<br />4,233,112
<br />Change of Benefit Terms
<br />-
<br />-
<br />-
<br />Difference Between Expected and Actual Experience
<br />(260,390)
<br />-
<br />(260,390)
<br />Changes of Assumptions
<br />(110,977)
<br />-
<br />(110,977)
<br />Contributions — Employer
<br />-
<br />845,646
<br />(845,646)
<br />Contributions — Employee
<br />-
<br />730,054
<br />(730,054)
<br />Net Investment Income
<br />-
<br />8,988,070
<br />(8,988,070)
<br />Benefit Payments, Including Refunds of Employee
<br />Contributions
<br />(3,122,282)
<br />(3,122,282)
<br />-
<br />Administrative Expense
<br />-
<br />(50,855)
<br />50,855
<br />Other Changes
<br />-
<br />(1,527)
<br />1,527
<br />Net Changes
<br />1,973,255
<br />7,389,106
<br />(5,415,851)
<br />Balance at 12/31/2019
<br />$ 65,630,277
<br />$65,605,580
<br />$ 24,697
<br />Sensitivity of the Net Pension Liability to Changes in the Discount Rate
<br />The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
<br />well as what the City's net pension liability (asset) would have been if it were calculated using a discount
<br />rate that is 1 -percentage -point lower (5.75%) or 1 -percentage -point higher (7.75%) than the current rate:
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