Page 124 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

City of Winston-Salem, North Carolina

Schedule of Contributions
Winston-Salem Police O cers’ Retirement System

Last Ten Fiscal Years

Fiscal Year
2018 2017 2016 2015 2014
Actuarially determined contribution $ 3,746,180 $ 3,421,184 $ 3,370,392 $ 3,326,051 $ 6,216,781
Contributions in relation to the
actuarially determined contribution 4,034,558 4,034,169 4,035,399 4,205,640 34,382,951
Contribution de ciency (excess) $ (288,378) $ (612,985) $ (665,007) $ (879,589) $ (28,166,170)
Covered payroll $ 24,217,617 $ 23,336,940 $ 23,733,206 $ 25,206,604 $ 24,880,178
Contributions as a percentage of
covered payroll 16.7% 17.3% 17.0% 16.7% 138.2%

Notes to Schedule
Valuation date:
Actuarially determined contribution rates are calculated as of June 30, one year prior to the end
of the scal year in which contributions are reported.
The City’s actuarial contribution is determined as a percentage of payroll, as shown in the annual
funding valuation. The percentage is then applied to actual payroll.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed
Remaining amortization period 21
Asset valuation method 7-year smoothed market
In ation 3.0%
Salary increases 3% in 2018, then 5% thereafter
Investment rate of return 7.25%, net of pension plan investment expense and including in ation
Interest on contributions 4.00% per year
Mortality Mortality rates were based on the IRS-2017 Combined Healthy
Annuitant Mortality Tables for small plans.

118 2018 AN NUAL R E P O R T