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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2021
<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 />A single discount rate of 6.75% was used to measure the Total Pension Liability as of December 31, 2020.
<br />This single discount rate was based on the expected rate of return on pension plan investments of 6.75%.
<br />Based on the stated assumptions and the projection of cash flows the city's fiduciary net position and future
<br />contributions were sufficient to finance the future benefit payments of current plan members for all
<br />projection years. Therefore, the long-term expected rate of return on pension plan investments was applied
<br />to all periods of projected benefit payments to determine the Total Pension Liability. The projection of cash
<br />flows used to determine the single discount rate for the city assumed that the funding policy adopted by the
<br />TMRS Board will remain in effect for all future years. Under this funding policy, the city will finance the
<br />unfunded actuarial accrued liability over the years remaining for the closed period existing for each base in
<br />addition to the employer portion of all future benefit accruals.
<br />Net Pension Liability and Changes in the Pension Liability
<br />Balance at 12/31/2019
<br />Changes for the year:
<br />Service Cost
<br />Interest
<br />Change of Benefit Terms
<br />Difference Between Expected and Actual Experience
<br />Changes of Assumptions
<br />Contributions – Employer
<br />Contributions – Employee
<br />Net Investment Income
<br />Benefit Payments, Including Refunds of Employee
<br />Contributions
<br />Administrative Expense
<br />Other Changes
<br />Net Changes
<br />Balance at 12/31/2020
<br />Increase (Decrease)
<br />852,067
<br />712,034
<br />4,972,797
<br />(3,731,229) (3,731,229)
<br />(32,223)
<br />- (1,257)
<br />1,475,391 2,772,189
<br />$ 67,105,668
<br />Sensitivity of the Net Pension Liability to Changes in the Discount Rate
<br />(852,067)
<br />(712,034)
<br />(4,972,797)
<br />32,223
<br />1,257
<br />(1,296,798)
<br />S (1,272,101)
<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 I -percentage-point lower (5.75%) or I -percentage-point higher (7.75%) than the current rate:
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<br />Plan
<br />Net Pension
<br />Total Pension
<br />Fiduciary
<br />Liability
<br />Liability
<br />Net Position
<br />(Asset)
<br />- (a)
<br />(b) —(a)
<br />– (b)
<br />65,630,277
<br />$652605,580
<br />$ 24,697
<br />1,184,350
<br />-
<br />1,184,350
<br />4,344,087
<br />4,344,087
<br />(321,817)
<br />(321,817)
<br />852,067
<br />712,034
<br />4,972,797
<br />(3,731,229) (3,731,229)
<br />(32,223)
<br />- (1,257)
<br />1,475,391 2,772,189
<br />$ 67,105,668
<br />Sensitivity of the Net Pension Liability to Changes in the Discount Rate
<br />(852,067)
<br />(712,034)
<br />(4,972,797)
<br />32,223
<br />1,257
<br />(1,296,798)
<br />S (1,272,101)
<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 I -percentage-point lower (5.75%) or I -percentage-point higher (7.75%) than the current rate:
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