FY2016 CCDOA Financial Report as of 6302016.pdf - page 75

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
62
Contributions
The authority for establishing and amending the obligation to make contributions and member
contribution rates is set by statute. New hires in agencies which did not elect the Employer-Pay
Contribution ("EPC") plan prior to July 1, 1983, have the option of selecting one of two contribution
plans. Contributions are shared equally by employer and employee. Employees can take a
reduced salary and have contributions made by the EPC or can make contributions by a payroll
deduction matched by the employer.
The System’s basic funding policy provides for periodic contributions at a level pattern of cost as a
percentage of salary throughout an employee’s working lifetime in order to accumulate sufficient
assets to pay benefits when due.
The System receives an actuarial valuation on an annual basis indicating the contribution rates
required to fund the System on an actuarial reserve basis. Contributions actually made are in
accordance with the required rates established by the Nevada Legislature. These statutory rates are
increased/decreased pursuant to NRS §286.421 and §286.450.
The actuary funding method used is the Entry Age Normal Cost Method. It is intended to meet the
funding objective and result in a relatively level long-term contributions requirement as a
percentage of salary. For the fiscal year ended June 30, 2014 and June 30, 2015, the Statutory
Employer/employee matching rate was 13.25 percent for Regular and 20.75 percent for
Police/Fire. The EPC rate was 25.75 percent for Regular and 40.50 percent for Police/Fire.
Investment Policy
The System’s policies which determine the investment portfolio target asset allocation are
established by the Board. The asset allocation is reviewed annually and is designed to meet the
future risk and return needs of the System.
The following is the target asset allocation adopted by the Board as policy as of June 30, 2015:
1...,65,66,67,68,69,70,71,72,73,74 76,77,78,79,80,81,82,83,84,85,...169
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