FY2016 CCDOA Financial Report as of 6302016.pdf - page 77

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
64
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the PERS CAFR,
available on the PERS website.
Actuarial Assumptions
The System’s net pension liability was measured as of June 30, 2015 and 2014, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of that
date. The total pension liability was determined using the following actuarial assumptions, applied to
all periods included in the measurement:
Inflation rate:
3.50%
Payroll growth:
5.00%, including inflation
Investment rate of return:
8.00%
Productivity pay increase:
0.75%
Projected salary increases
Regular:
4.60% to 9.75%, depending on service
Police/Fire:
5.25% to 14.5%, depending on service
Rates include inflation and productivity increases
Consumer Price Index:
3.50%
Other assumptions: Same as those used in the June 30, 2015 and 2014 funding actuarial
valuations
Actuarial assumptions used in the valuations of June 30, 2015 and 2014, were based on the results of
the experience review completed in 2013.
The discount rate used to measure the total pension liability was 8.00 percent as of June 30, 2015
and 2014. The projection of cash flows used to determine the discount rate assumed that employee
and employer contributions will be made at the rate specified in the statute. Based on that
assumption, the pension plan’s fiduciary net position at June 30, 2015 and 2014, was projected to be
available to make all projected future benefit payments of current active and inactive employees.
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 as of June 30, 2015
and 2014.
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