TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017

Note 9. Pension Obligations (continued)

A. Public Employees' Retirement System (PERS) (continued)

contributions provided under this law. This unfunded liability will be paid by the employer in level annual payments over a period of 15 years beginning with the payments due in the fiscal year ended June 30, 2012 and will be adjusted by the rate of return on the actuarial value of assets. For the year ended December 31, 2017, the Township’s contractually required contribution to PERS plan was $923,465.

Components of Net Pension Liability - At December 31, 2017, the Township’s proportionate share of the PERS net pension liability was $23,204,822. The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of July 1, 2016, which was rolled forward to June 30, 2017. The Township’s proportion of the net pension liability was based on the Township’s actual contributions to the plan relative to the total of all participating employers’ contributions for the year ended June 30, 2017. The Township’s proportion measured as of June 30, 2017, was 0.0996839138% which was an increase of 0.0033482812% from its proportion measured as of June 30, 2016.

Collective Balances at December 31, 2017 and December 31, 2016

12/31/201712/30/2016
Actuarial valuation date (including roll forward)June 30, 2017June 30, 2016
Deferred Outflows of Resources$ 6,485,889$ 8,192,632
Deferred Inflows of Resources4,853,096275,289
Net Pension Liability23,204,82228,531,851
Township's portion of the Plan's total net pension Liability0.09968%0.09634%

Pension Expense and Deferred Outflows/Inflows of Resources - At December 31, 2017, the Township’s proportionate share of the PERS expense, calculated by the plan as of the June 30, 2017 measurement date is $1,889,787. This expense is not recognized by the Township because of the regulatory basis of accounting as described in Note 1, but as previously mentioned the Township contributed $923,465 to the plan in 2017.

At December 31, 2017, the Township reported deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:

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