contributed by the State. The State's contribution amount is based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. For fiscal year 2018, the State contributed an amount less than the actuarially determined amount. The Local employers' contribution amounts are based on an actuarially determined rate which includes the normal cost and unfunded accrued liability. Chapter 19, P.L. 2009 provided an option for local employers of PFRS to contribute 50% of the normal and accrued liability contribution amounts certified for payments due in State fiscal year 2009. Such employers will be credited with the full payment and any such amounts will not be included in their unfunded liability. The actuaries will determine the unfunded liability of those retirement systems, by employer, for the reduced normal and accrued liability 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, 2018, the Township's contractually required contributions to PFRS plan was $2,800,048.
The employee contributions for PFRS are 10.00% of employees' annual compensation, as defined.
Net Pension Liability and Pension Expense - At December 31, 2018 the Township’s proportionate share of the PFRS net pension liability was $38,755,556. The net pension liability was measured as of June 30, 2018. 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, 2017, to the measurement date of June 30, 2018. 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, 2018. The Township’s proportion measured as of June 30, 2018, was 0.2864067548%, which was an increase of 0.0005041302% from its proportion measured as of June 30, 2017.
Collective Balances at December 31, 2018 and December 31, 2017
| 12/31/2018 | 12/31/2017 |
|---|
| Actuarial valuation date (including roll forward) | June 30, 2018 | June 30, 2017 |
|---|
| Deferred Outflows of Resources | $ 4,763,241 | $ 8,132,992 |
|---|
| Deferred Inflows of Resources | 10,478,308 | 7,709,393 |
|---|
| Net Pension Liability | 38,755,556 | 44,137,838 |
|---|
| Township's portion of the Plan's total net pension Liability | 0.28641% | 0.28590% |
|---|
Pension Expense and Deferred Outflows/Inflows of Resources – At December 31, 2018, the Township’s proportionate share of the PFRS expense, calculated by the plan as of the June 30, 2018 measurement date was $3,556,702. 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 $2,800,048 to the plan in 2018.
54