Page 105 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

Changes in the Net Pension Liability

Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 6/30/17 $ 176,344,903 $ 149,251,738 $ 27,093,165
Changes for the year:
Service cost 2,800,881 - 2,800,881
Interest 13,818,009 - 13,818,009
Di erences between expected and actual experience 4,119,005 - 4,119,005
Changes of assumptions 4,612,557 - 4,612,557
Contributions – employer - 4,034,558 (4,034,558)
Contributions – member - 1,571,265 (1,571,265)
Net investment income - 15,285,822 (15,285,822)
Bene t payments, including refunds of member contributions (10,937,034) (10,937,034) -
Adminstrative expense - (104,951) 104,951
Net changes 14,413,418 9,849,660 4,563,758
Balances at 6/30/18 $ 190,758,321 $ 159,101,398 $ 31,656,923

Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the City,
calculated using the discount rate of 7.25%, as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is 1.00% lower or 1.00% higher than the current rate:

1% Current 1%
Decrease Discount Rate Increase
6.25% 7.25% 8.25%
Total pension liability $ 213,052,423 $ 190,758,321 $ 172,108,315
Plan net position (159,101,398) (159,101,398) (159,101,398)
Net pension liability $ 53,951,025 $ 31,656,923 $ 13,006,917
Ratio of plan net position to total pension liability 74.7% 83.4% 92.4%

Pension Expense, and Deferred Out ows of Resources and Deferred In ows of Resources Related to Pensions
For the year ended June 30, 2018, the City recognized pension expense of $7,578,719. At June 30, 2018, the City reported deferred
out ows of resources and deferred in ows of resources related to pensions from the following sources:

Deferred Deferred
Out ows of In ows of
Resources Resources
Di erences between expected and actual experience $ 6,219,865 $ -
Changes of assumptions 3,707,395 -
Net di erence between projected and actual earnings on pension plan investments - 5,999,395
Total $ 9,927,260 $ 5,999,395

W I N S T O N S AL E M , N O R T H C AR O L I N A 99