Changes Since Measurement Date
There were no changes between the measurement date of the collective net pension liability and the employer's reporting date.
The discount rate used to measure the total pension liability was 5.25% (Nonhazardous) and 6.25% (Hazardous). The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at the actuarially determined contribution rate. Based on those assumptions, the pension plan's fiduciary net position and future contributions were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The projection of cash flows used to determine the single discount rate assumes that each participating employer contributes the actuarially determined contribution in all future years.
The University’s proportionate share of the net pension liability has been calculated using a discount rate of 5.25% (Nonhazardous) and a discount rate of 6.25% (Hazardous) for the June 30, 2021, actuarial valuation. The following presents the University’s proportionate share of the net pension liability calculated using a discount rate 1% higher and 1% lower than the current rate as of June 30, 2023:
Decrease Discount Increase
Nonhazardous: (4.25)% Rate (5.25%) (6.25)%
Proportionate Share of the Collective Net Pension Liability $ 36,552,545 $ 31,780,327 $ 27,850,843
Hazardous: (5.25)% Rate (6.25%) (7.25)%
Proportionate Share of the Collective Net Pension Liability $ 758,981 $ 574,396 $ 424,812
1% Current 1%
1% Current 1%
Decrease Discount Increase
(48)