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City of Raleigh

Financial Section

are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their 

last day of service and who also have either completed 20 years of creditable service regardless of age, or have 

completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service 

as a LEO and have reached age 55, or have completed 15 years of creditable service as a LEO if killed in the line of 

duty.  Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the 

member’s contributions. 

Contributions.

Contribution provisions are established by General Statute 128‐30 and may be amended only by 

the North Carolina General Assembly.  City of Raleigh employees are required to contribute 6% of their 

compensation.  Employer contributions are actuarially determined and set annually by the LGERS Board of 

Trustees.  The City of Raleigh’s contractually required contribution rate for the year ended June 30, 2016, was 

7.15% of compensation for law enforcement officers and 6.67% for general employees and firefighters, actuarially 

determined as an amount that, when combined with employee contributions, is expected to finance the costs of 

benefits earned by employees during the year.  Contributions to the pension plan from the City of Raleigh were 

$14,237,418 for the year ended June 30, 2016. 

Refunds of Contributions. 

City employees who have terminated service as a contributing member of LGERS, 

may file an application for a refund of their contributions.  By state law, refunds to members with at least five 

years of service include 4% interest.  State law requires a 60 day waiting period after service termination before the 

refund may be paid.  The acceptance of a refund payment cancels the individual’s right to employer contributions 

or any other benefit provided by LGERS. 

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of 

Resources Related to Pensions.

At June 30, 2016, the City reported a liability of $16,858,632 for its proportionate 

share of the net pension liability.  The net pension liability was measured as of June 30, 2015.  The total pension 

liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 

2014.  The total pension liability was then rolled forward to the measurement date of June 30, 2015 utilizing update 

procedures incorporating the actuarial assumptions.  The City’s proportion of the net pension liability was based 

on a projection of the City’s long‐term share of future payroll covered by the pension plan, relative to the projected 

future payroll covered by the pension plan of all participating LGERS employers, actuarially determined.  At June 

30, 2015, the City’s proportion was 3.76%, which was an increase of 0.05% from its proportion measured as of June 

30, 2014. 

For the year ended June 30, 2016, the City recognized pension expense of $7,406,406.  At June 30, 2016, the City 

reported deferred outflows of resources and deferred inflows of resources related to pensions from the following 

sources: 

Deferred Outflows

of Resources

Deferred Inflows

of Resources

Differences between expected and actual experience

-

$

3,962,728

$

-

4,799,587

-

945,015

City contributions subsequent to the measurement date

14,237,417

-

Total

14,237,417

$

9,707,330

$

Net difference between projected and actual earnings on

pension plan investments

Changes in proportion and differences between City

contributions and proportionate share of contributions

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