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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 />2. Firefighters' Relief and Retirement Fund (Continued) <br />Service Retirement Disability and Death Benefits <br />A member is eligible for service retirement upon the earlier of (a) the completion of 20 years of service and <br />attainment of age 55 or (b) the date as of which the sum of the member's age and service equals 80 <br />provided the member has completed 20 years of service. A member who retires under the service <br />retirement provisions of the fund will receive a monthly benefit equal to $94 multiplied by his/her years <br />of service at retirement. The minimum service retirement benefit is $500 per month. Service retirement <br />benefits are payable for the member's lifetime. In the event the member's death precedes that of his/her <br />spouse, two-thirds of the member's pension will be continued to the spouse for his/her lifetime. In <br />lieu of the normal form of benefit, a member may elect at the time of his/her retirement to receive a <br />modified monthly amount payable under one of several optional forms of payment. An active member will <br />qualify for a disability benefit if he/she becomes disabled for either physical or mental reasons. If a member <br />dies while in active service, his/her widow(er) will receive an immediate monthly benefit, payable for <br />his/her lifetime. <br />Actuarial Methods and Assumptions <br />The actuarial valuation date used to determine the total pension liability for the year ended September 30, <br />2021, and the most current available information required for disclosure under GASB Statement No. 67 is <br />based on an actuarial valuation as of December 31, 2020. The actuarial cost method used in the December <br />31, 2020, valuation is the entry age service actuarial cost method. This method is also referred to as the <br />entry age actuarial cost method under the terminology developed by the Joint Committee on Pension <br />Terminology. There has been no change in the actuarial cost method since the last actuarial valuation. <br />The assumed rate of return was developed using both the plan's historical rates of return and expected <br />future rates of return. Rate of return experience studies have been performed in connection with the plan's <br />valuations. <br />The demographic assumptions were chosen based on expected future rates of retirement, mortality, <br />disability, and termination. Mortality was taken from published studies and was updated to reflect expected <br />future improvement. Retirement and salary increase rates were developed based on the plan's own <br />experience. Disability and termination rates were based on published rates, adjusted as necessary, to <br />conform to the plan's own experience. <br />Both economic and demographic assumptions were further tested through the calculation of the plan's <br />aggregate experience with respect to both demographic decrements and economic assumptions. <br />49 <br />