KENTUCKY STATE UNIVERSITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Kentucky Employees' Retirement System - Defined Benefit Plan (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
At June 30, 2024, the University reported $2,380,100 as deferred outflows of resources related to pensions resulting from University contributions subsequent to the measurement date that will be recognized as pension expense in 2025. Deferred outflows and deferred inflows of resources at June 30, 2024, related to pensions will be recognized in pension expense as follows:
Year Ending June 30,NonhazardousHazardous
2025$ (944,023)$ (79,593)
2026(53,133)(8,525)
2027128,01213,540
2028(23,000)(4,348)
Total$ (892,144)$ (78,926)
Actuarial Assumptions
The total pension liability for KERS was determined by applying procedures to the actuarial valuation as of June 30, 2022, using the following actuarial assumptions applied to all periods included in the measurement.
Actuarial Cost MethodEntry Age Normal
Amortization MethodLevel Percent of Pay
Remaining Amortization Period30 Years, Closed
Asset Valuation Method20% of the Difference Between Market Value of Assets and the Expected Actuarial Value of Assets is Recognized
Inflation2.30%
Payroll Growth Rate0%
Salary Increases, Varies by Service:
Nonhazardous3.30 to 15.30%
Hazardous3.55 to 20.05%
Investment Rate of Return:
Nonhazardous5.25%
Hazardous6.25%
(40)