Page 109 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

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 $ 24,096,912 $ 22,535,005 $ 21,108,149
Plan net position (10,254,316) (10,254,316) (10,254,316)
Net pension liability $ 13,842,596 $ 12,280,689 $ 10,853,833
Ratio of plan net position to total pension liability 42.6% 45.5% 48.6%

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 $2,061,941. 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 $ 3,506,513 $ -
Changes of assumptions 783,267 -
Net di erence between projected and actual earnings on pension plan investments - 294,494
Total $ 4,289,780 $ 294,494

Other amounts reported as deferred out ows of resources and deferred in ows of resources related to pensions will be recognized
in pension expense as follows:
Year Ended June 30
2019 $ 624,977
2020 568,996
2021 446,972
2022 590,009
2023 631,362
Thereafter 1,132,970

W I N S T O N S AL E M , N O R T H C AR O L I N A 103