ACFR City of Paris 9-30-2024 with Continuing Disclosure Tables-searchable

Home Browse Search

CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2024 IV. Detailed Notes on All Activities and Funds (Continued) F. Employee Retirement Systems and Plans (Continued) 2. Firefighters' Relief and Retirement Fund (Continued) Employees Covered by Benefit Terms At December 31, 2022, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 46 Inactive employees entitled to but not yet receiving benefits 8 Active employees 47 Total 101 Service Retirement Disability and Death Benefits A member is eligible for service retirement upon the earlier of (a) the completion of 20 years of service and attainment of age 55 or (b) the date as of which the sum of the member's age and service equals 80 provided the member has completed 20 years of service. A member who retires under the service retirement provisions of the fund will receive a monthly benefit equal to $94 multiplied by his/her years of service at retirement. The minimum service retirement benefit is $500 per month. Service retirement benefits are payable for the member's lifetime. In the event the member's death precedes that of his/her spouse, two-thirds of the member's pension will be continued to the spouse for his/her lifetime. In lieu of the normal form of benefit, a member may elect at the time of his/her retirement to receive a modified monthly amount payable under one of several optional forms of payment. An active member will qualify for a disability benefit if he/she becomes disabled for either physical or mental reasons. If a member dies while in active service, his/her widow(er) will receive an immediate monthly benefit, payable for his/her lifetime. Actuarial Methods and Assumptions The actuarial valuation date used to determine the total pension liability for the year ended September 30, 2024, and the most current available information required for disclosure under GASB Statement No. 67 is based on an actuarial valuation as of December 31, 2022. The measurement was completed using a rollforward of the December 31, 2022 actuarial valuation which was based upon member census data as of the same date. The measurements were also based on audited December 31, 2023 financial information. The actuarial cost method used in the December 31, 2022 valuation is the Normal to Pure Unit Credit Actuarial Cost Method. The long-term expected real rate of return was developed using the annual money -weighted internal rate of return, net of pension plan investment expense. Inputs to the money -weighted internal rate of return calculation are determined at least monthly. The demographic assumptions were chosen based on expected future rates of retirement, mortality, disability, and termination. Mortality was taken from published studies and was updated to reflect expected future improvement. Retirement and salary increase rates were developed based on the plan's own experience. 69