FY2016 CCDOA Financial Report as of 6302016.pdf - page 137

Clark County Department Of Aviation
Clark County, Nevada
Notes to Required Supplementary Information – Pension Plan Schedules
For the Fiscal Years Ended June 30, 2016 and 2015
124
Methods and Assumptions Used in Calculations of Actuarially Determined Contributions
The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, 2015.
The following actuarial methods and assumptions were used to determine contribution rates reported in that
schedule.
Actuarial cost method
Entry age normal.
Amortization method
The unfunded actuarial accrued liability ("UAAL") as of
June 30, 2011, shall continue to be amortized over
separate 30-year period amortization layers based on the
valuations during which each separate layer was
previously established.
Any new UAAL as a result of actuarial gains or losses
identified in the annual valuation as of June 30 will be
amortized over a period of equal to the truncated
average remaining amortization period of all prior UAAL
layers. This would occur until the average remaining
amortization period is less than 20 years. At that point,
amortization periods of 20 years would be used for
actuarial gains and losses.
Any new UAAL as a result of change in actuarial
assumptions or methods will be amortized over a period
equal to the truncated average remaining amortization
period of all prior UAAL layers. This would occur until the
average remaining amortization period is less than 20
years would be used for assumption or method changes.
UAAL layers shall be amortized over "closed" amortization
periods so that the amortization period for each layer
decreases by one year with each actuarial valuation.
UAAL layers shall be amortized as a lever of percentage
of payroll.
Asset valuation method
5-year smoothed market.
Assumed inflation rate
3.5%
Payroll growth assumption for future
years
5.0% per year for regular employees.
Assumed investment rate of return
8.0% (including 3.5% for inflation).
Mortality rates:
Healthy: Regular
RP-2000 Combined Healthy Mortality Table projected to
2013 with Scale AA, set back one year for females (no
age for males).
Disabled: Regular
RP-2000 Disabled Retiree Mortality Table projected to 2013
with Scale AA, set forward three years.
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