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CITY OF PARIS, TEXAS <br />Notes to Financial Statements (Continued) <br />September 30, 2024 <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, 2023. <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 projection <br />years. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods <br />of projected benefit payments to determine the Total Pension Liability for the City. 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 (i.e. the employer normal cost). <br />Net Pension Liability and Changes in the Pension Liability <br />Balance at 12/31/2022 <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 12/31/2023 $ 73,141,216 <br />Pension Liability to Changes in the Discount Rate <br />Increase (Decrease) <br />65 <br />Liability <br />Total Pension <br />Plan Fiduciary <br />(Asset) <br />Liability (a) <br />Net Position (b) <br />(a) — (b) <br />$ 71,258,568 <br />$ 67,807,930 $ <br />3,450,638 <br />2,236,060 <br />- <br />2,236,060 <br />4,758,205 <br />- <br />4,758,205 <br />(244,728) <br />- <br />(244,728) <br />(557,537) <br />- <br />(557,537) <br />- <br />832,402 <br />(832,402) <br />- <br />1,269,458 <br />(1,269,458) <br />- <br />7,852,929 <br />(7,852,929) <br />(4,309,352) <br />(4,309,352) <br />- <br />- <br />(50,126) <br />50,126 <br />- <br />(350) <br />350 <br />1,882,648 <br />5,594,961 <br />(3,712,313) <br />$ 73,402,891 <br />$ (261,675) Sensitivity <br />of the Net <br />65 <br />