Page 49 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

NOTE 10 PENSION PLAN (CONTINUED)

information is presented in the City's, June 30, 2017, comprehensive annual
financial report.

Summary of Significant Accounting Policies
The activities and the financial statements of the Plan are accounted for on the
accrual basis of accounting. Plan member contributions are recognized in the
period in which the contributions are due. The City's contributions are recognized
when due and a formal commitment to provide the contributions has been made.
Benefits and refunds are recognized when due and payable in accordance with the
terms of the Plan. The Plan's cash assets are invested in equity and fixed-income
securities and are reported at fair value. Investments are traded on the national
exchange.

The Authority's payroll for employees covered by the pension plan was $6,982,795
and $6,507,267 and the total payroll was $7,792,011 and $7,197,329 for the years
ended June 30, 2017 and 2016, respectively.

The following are disclosure requirements of that all-inclusive actuarial assumption
valuation, as of the last actuarial study of June 30, 2016, for the Plan.

Benefits Provided
Plan Year
July 1 through June 30

Normal Pension Early Retirement Pension

Eligibility A participant may retire at An Authority participant
(a) age 60 if he has may retire at age 55 if he
completed 5 years of has completed 25 years of
credited service, or (b) any credited service.
age if he has completed 30
years of credited service.

Amount 2.50% of final average 1.85% of final average
salary for each year of salary for each year of
credited service. This credited service.
amount cannot be greater
than 75.0% of the final
average salary nor less
than $400 per month.

Service credit used to determine the benefit amount may be increased by credit
granted for unused sick leave (on a percent of possible total basis).

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