{
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        "text": 9
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    "items": [
        {
            "id": "p70.1",
            "order": 1,
            "type": "heading",
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            "text": "COUNTY OF ADAMS, PENNSYLVANIA\nNOTES TO FINANCIAL STATEMENTS (CONTINUED)\nDECEMBER 31, 2025",
            "attrs": {
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        {
            "id": "p70.2",
            "order": 2,
            "type": "heading",
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            },
            "text": "NOTE 7: DEFINED BENEFIT PENSION PLAN (CONTINUED)",
            "attrs": {
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            "level": 3
        },
        {
            "id": "p70.3",
            "order": 3,
            "type": "heading",
            "bbox": {
                "l": 141.84,
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                "b": 650.88
            },
            "text": "B. Net Pension Liability/(Asset) (Continued)",
            "attrs": {
                "block_label": "paragraph_title"
            },
            "level": 3
        },
        {
            "id": "p70.4",
            "order": 4,
            "type": "text",
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            "text": "Discount rate. While it is often common practice to establish an actuarial Discount Rate that is equal to the Long-Term Expected Rate of Return, PMRS is required by law (Act 15 of 1974) to establish a Discount Rate equal to the Regular Interest Rate (Regular Interest Rate / Discount Rate). The PMRS Board establishes the Regular Interest Rate / Discount Rate on the basis of expected stable and consistent earnings on investments to be applied to the accounts of the individual participating municipalities and includes the accounts of plan participants, municipalities, and plan retirees each year. As a starting point, the Board considers the following five quantitative factors in reviewing the Regular Interest Rate / Discount Rate:"
        },
        {
            "id": "p70.5",
            "order": 5,
            "type": "text",
            "bbox": {
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            "text": "1.) Retiree Plan liability as a percentage of total Plan liability."
        },
        {
            "id": "p70.6",
            "order": 6,
            "type": "text",
            "bbox": {
                "l": 141.12,
                "t": 505.68,
                "r": 460.56,
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            },
            "text": "2.) Active Plan participant liability as a percentage of total Plan liability."
        },
        {
            "id": "p70.7",
            "order": 7,
            "type": "text",
            "bbox": {
                "l": 141.12,
                "t": 493.68,
                "r": 541.44,
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            },
            "text": "3.) Smoothed Pension Benefit Guarantee Corporation (PBGC) annuity rates as a proxy for annuity purchase rates,"
        },
        {
            "id": "p70.8",
            "order": 8,
            "type": "text",
            "bbox": {
                "l": 140.64,
                "t": 469.92,
                "r": 414.96,
                "b": 457.68
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            "text": "4.) PMRS System Long-Term Expected Rate of Return and."
        },
        {
            "id": "p70.9",
            "order": 9,
            "type": "text",
            "bbox": {
                "l": 141.36,
                "t": 457.2,
                "r": 292.56,
                "b": 445.44
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            "text": "5.) PMRS investment expenses."
        },
        {
            "id": "p70.10",
            "order": 10,
            "type": "text",
            "bbox": {
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            },
            "text": "The Board then considers the Regular Interest Rate / Discount Rate derived from the above formula by a variety of qualitative factors such as the desire to minimize Regular Interest Rate / Discount Rate volatility, probability of achieving the Regular Interest Rate, varying levels of asset allocation and liquidity, trending of annuity rates, total PMRS actuarial and fair value funding ratios, feedback from existing PMRS municipalities, and recommendations from the System's investment and actuarial consultants. The Regular Interest Rate / Discount Rate adopted by the Board and used to measure the individual participating municipalities' total pension liability was 5.50% as of December 31, 2024."
        },
        {
            "id": "p70.11",
            "order": 11,
            "type": "text",
            "bbox": {
                "l": 140.88,
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                "r": 542.16,
                "b": 264.96
            },
            "text": "The Regular Interest Rate / Discount Rate will likely be less than the System Long-Term Expected Rate of Return. Should the System experience a prolonged period of investment returns in excess of the Regular Interest Rate / Discount Rate, the Board is authorized to allocate any applicable portion of any such excess in accordance with Board policies in the form of Excess Interest as provided for in the law."
        },
        {
            "id": "p70.12",
            "order": 12,
            "type": "text",
            "bbox": {
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                "r": 542.16,
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            "text": "The projection of cash flows for each underlying municipal plan, used to determine if any adjustment to the Regular Interest Rate / Discount Rate was required (“depletion testing”), used the following assumptions: 1.) member contributions will be made at the current contribution rate, 2.) participating plan sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate, and 3.) the System’s Long-Term Expected Rate of Return will be used in the depletion testing of projected cash flows. Based on those assumptions, the PMRS pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members."
        }
    ],
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        "first": [
            {
                "id": "p70.f1",
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                "text": "Page 65",
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