CITY OF LAGUNA NIGUEL NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED) A. General Information about the Pension Plan (Continued) Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following the notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount o finance the costs of benefits earned by emplo necessary t yees during the year, with an mount to finance any unfunded accrued liability. The employer is required to additional a contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contributions for the fiscal year ended June 30, 2024 were $1,078,149. Actuarial Methods and Assumption Used to Determine Total Pension Liability For the measurement period ended June 30, 2023, the total pension liability was determined by an actuarial valuation as of June 30, 2022, with update procedure used to roll forward the total pension liability to June 30, 2023. The June 30, 2023 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Actuarial Cost Method Discount Rate 6.90% Inflation 2.30% Salary Increases Varies by entry age and service Mortality Rate Table (1) Post-Retirement Benefit Increase The lessor of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing r power applies, 2.30% thereafte (1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. (64)