Benefit and contribution rates are established by state statute. Per Kentucky Revised Statute 61.565(3) contribution requirements of the active employees and the participating organizations are established and may be amended by the KRS Board. KERS participants hired with an effective date prior to September 1, 2008 contribute 5 percent of their covered compensation; the University contributes 38.77 percent. KERS participants hired with an effective date on or after September 1, 2008 contribute 6 percent of their covered compensation; the University contributes 38.77 percent. These amounts were actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the University were $1,953,418 and $1,411,407 for the year ended June 30, 2015 and 2014.
At June 30, 2015, the University reported a liability of $28,555,000 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The University's proportion of the net pension liability was based on a projection of the University's long-term share of contributions to the pension plan relative to the projected contributions of all participating universities, actuarially determined. At June 30, 2015, the University's proportion was 0.32 percent.
For the year ended June 30, 2015, the University recognized pension expense of $2,158,000. At June 30, 2015, the University reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Of Resources Deferred Inflows Of Resources
Differences between expected and actual experience --
Changes of assumptions - -
Net difference between projected and actual earnings on pension plan investments - 367,000
Changes in proportion and differences between University contributions and proportionate share of contributions - -
University contributions subsequent to the measurement date (contributions to KERS for the year ended June 30, 2015) 1,953,418 -
Total 1,953,418 367,000