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INDIAN RIVER COUNTY, FLORIDA <br />NOTES TO FINANCIAL STATEMENTS - CONTINUED <br />Year Ended September 30, 1992 <br />10. Defined Benefit Pension Plans - Continued,: <br />B. Firefighters Pension Plan - Continued <br />Fundinq Status and Proqress - The amount shown as the "pension benefit obliga- <br />tion" is a standardized disclosure measure of the present value of pension bene- <br />fits, adjusted for the effects of projected salary increases and step -rate bene- <br />fits, estimated to be payable in the future as a result of employee service to <br />date. The measure is intended to help users assess the funding status of the <br />PERS on a going -concern basis, assess progress made in accumulating sufficient <br />assets to pay benefits when due, and make comparisons among employers. The <br />measure is the actuarial present value of credited projected benefits and is <br />independent of the funding method used to determine contributions to the PERS. <br />The pension benefit obligations were computed as a part of actuarial valuations <br />performed as of October 1, 1992. Significant actuarial assumptions used in the <br />valuation include (a) a rate of return on the investment of present and future <br />assets compounded annually of 71, and (b) projected salary increases of 7% a <br />year compounded annually attributable to inflation. <br />Total unfunded pension benefit obligations are as follows: <br />October 1, <br />1992 <br />Pension Benefit Obligation: <br />Retirees and beneficiaries currently <br />receiving benefits and terminated <br />employees not yet receiving benefits <br />$1,370,968 <br />Current employees - <br />Accumulated employee contributions <br />including allocated investment earnings <br />281,068 <br />Employer -financed vested <br />1,792,853 <br />Employer -financed nonvested <br />24,536 <br />Total Pension Benefit Obligation <br />3,469,425 <br />Net Assets Available for Benefits, at cost <br />3,599,607 <br />Net Assets Over (Under) Pension Benefit <br />Obligation <br />S 130.182 <br />During the current year, the following changes were made in the actuarial <br />assumptions or benefit provisions that affected the pension benefit obliga- <br />tion: The actuarially assumed rate of investment earnings was increased from <br />6.5% to 7%, which reduced the pension benefit obligation by $174,592. <br />B-50 <br />