Page 52 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

NOTE 10 PENSION PLAN (CONTINUED)

Investments
Investment Policy
The following was the City’s adopted asset allocation policy as of June 30, 2017:

Target
Asset Class Allocation

Large cap domestic equity 35%
Small and mid-cap domestic equity 10%
International equity 20%
Core fixed income 10%
Short-term high yield fixed income 5%
REITs 5%
Hedge funds 15%
Total 100%

Concentrations
The Plan did not hold investments in any one organization that represented 5
percent or more of the Pension Plan’s fiduciary net position.

Rate of Return
For the year ended June 30, 2016 the annual investment rate of return on Plan
investments, net of pension plan investment expenses, was an assumed 7.50
percent. The annual investment rate of return expresses investment performance,
net of investment expenses, adjusted for the changing amounts actually invested.

Net Pension Liability of the Sponsor
The components of the net pension liability of the sponsor on June 30, 2017 were
as follows:

Total Pension Liability $ 1,745,211,041
Plan Fiduciary Net Position 1,038,084,945

City's Net Position Liability $ 707,126,096
Pension Fiduciary Net Position as a Percentage of
Total Pension Liability 59.48%

31