Page 102 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate. The following
presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.20%, as well as
what the City’s proportionate share of the net pension asset or net pension liability would be if it were calculated using a
discount rate that is one percentage point lower (6.20%) or one percentage point higher (8.20%) than the current rate:

1% Current 1%
Decrease Discount Rate Increase
(6.20%) (7.20%) (8.20%)
City’s proportionate share of the net pension liability (asset) $ 80,053,151 $ 26,666,405 $ (17,894,674)

Pension plan fiduciary net position. Detailed information about the pension plan’s duciary net position is available in the
separately issued Comprehensive Annual Financial Report (CAFR) for the State of North Carolina.

b. Winston-Salem Police O cers’ Retirement System
Summary of Signi cant Accounting Policies
Basis of Accounting. Pension trust fund nancial statements are prepared using the accrual basis of accounting. The
de ned bene t plan does not issue a stand-alone nancial report, and it is not included in the nancial report of another
entity. Member and employer contributions are recognized in the period in which the contributions are due. Bene ts and
refunds are recognized when due and payable in accordance with the terms of the plan.
Method Used to Value Investments. Investments are reported at fair market value. Short-term investments are reported at
cost, which approximates fair market value. Securities traded on a national exchange are valued at the last reported
sales price.

Plan Description
Plan Administration. Winston-Salem Police O cer’s Retirement System (WSPORS) is a single-employer, de ned bene t
plan with required membership for police o cers hired prior to January 1, 2014. It was established by the City in 1977. The
City established WSPORS, which is similar to the North Carolina Local Governmental Employees’ Retirement System for
Law Enforcement O cers, and authorizes bene t provisions and amendments, including post-retirement bene t
increases. The Commission is composed of a member of the City Council, three representatives elected by members of
WSPORS from employees or retirees participating in WSPORS, and an una liated citizen of Winston-Salem who serves as
Chairperson of the Commission. Two alternate representatives elected by the members of WSPORS from employees or
retirees participating in WSPORS. The Chief Financial O cer of the City serves as WSPORS Administrator and oversees both
bene ts administration and investments.
Plan Membership. At June 30, 2018, the Winston-Salem Police O cers’ Retirement System membership consisted of:

Inactive plan members or bene ciaries currently receiving bene ts 381
Inactive plan members entitled to but not receiving bene ts 48
Active plan members 390
Total 819
As of December 31, 2013, the plan is closed to new entrants.
Benefits Provided. Members may retire with unreduced bene ts after completing 30 years of creditable service or at age
55 with 5 years of creditable service. O cers retiring with unreduced bene ts are entitled to annual bene ts equal to
1.85% of average highest earnings for four consecutive years times the number of years of creditable service.

Contributions. Under the Code of the City of Winston-Salem, contribution requirements of plan members and the City are
established and may be amended. Members are required to contribute 6% of their salary and contributions by the City
are based upon annual actuarial studies. The City is responsible for the payment of administrative expenses of the plan as
additional contributions.
In 2008, the City entered into a trust agreement with U.S. Bank National Association to establish an irrevocable trust for
post-employment bene ts including the Winston-Salem Police O cers’ Retirement System.

96 2018 AN NUAL R E P O R T