2023d ABC Board Minutes - Laserfiche WebLink

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ORANGE COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD (a component unit of Orange County Government) NOTES TO FINANCIAL STATEMENTS June 30,2023 and 2022 3. DETAIL NOTES ON ALL FUNDS[cont'df Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions[cont'd] Discount Rate. The discount rate used to measure the total pension liability was 6.50%.The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions,the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of the 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. Sensitivity of the ABC Board's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the ABC Board's proportionate share of the net pension asset calculated using the discount rate of 6.50%,as well as what the ABC Board's proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%),or one percentage point higher(7.50%),than the current rate: 1%Decrease Discount Rate I%Increase (5.50%) (6.50%) (7.50%) ABC Board's proportionate share of the net pension liability (asset) $ 2,551,622 $ 1,413,742 $ 476,063 Pension Plan Fiduciary Net Position. Detailed information about the pension plan's fiduciary net position is available in the separately issued CAFR for the State of North Carolina. Death Benefits The ABC Board has also elected to provide death benefits to employees through the LGERS Death Benefit Plan("the Death Benefit Plan") and is a multiple-employer, state-administered, cost-sharing plan funded on a one year term cost basis. The beneficiaries of those die employees who i p y e in active service after one year of contributing membership in LGERS, or who die within one hundred and eighty(180) days after retirement or termination of service and have at least one year of contributing membership service in LGERS at the time of death, are eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employee's twelve (12) highest months of salary in a row during the twenty-four (24) months prior to the employee's death,but the benefit may not exceed$50,000,or be less than$25,000.All death benefit payments are made from the Death Benefit Plan. The ABC Board has no liability beyond the payment of monthly contributions. The contributions to the Death Benefit Plan cannot be separated between the post-employment benefit amount and the other benefit amount.The ABC Board considers these contributions to be immaterial. The ABC Board also provides additional group-term life insurance coverage in the amount of$20,000 to its full-time employees. I 25 i