Page 55 - BAA CAFR 2017
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BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
NOTE 10 PENSION PLAN (CONTINUED)
Investments Measured at Fair Value
Retirement & Relief System Fair Value Measurements Using
Weighted
Avg. Quoted Prices in Active Significant Other Significant
Maturity Markets for Identical Observable Inputs Unobservable
Investment Type Fair Value (Years) Assets (Level 1) (Level 2) Inputs (Level 3)
U.S. Government
Agency Obligation $ 33,880,239 4.15 $ - $ 33,880,239 $ -
U.S. Treasuries 58,154,609 8.63 58,154,609 - -
U.S. Corporate Debt 127,282,198 7.04 - 127,282,198 -
U.S. Corporate Stock 710,989,384 710,989,384 - -
Alternative Investments 78,563,027 - - 78,563,027
Total Fair Value $ 1,008,869,457 $ 769,143,993 $ 161,162,437 $ 78,563,027
The valuation method for investments measured at the net asset value (NAV) per
share (or its equivalent) is presented on the following table.
Investments Measured at the NAV
Mesirow Financial-Multi-manager/Multi-strategy Fund of hedge funds
Redemption
Fund Fair Value Frequency (if Redemption Notice
Currently Eligible) Period
Retirement & Relief $78,563,027 Quarterly 95 days
Discount Rate
The blended discount rate used to measure the total pension liability is 5.43%. The
projection of cash flows used to determine the discount rate assumed contributions
will continue to be made at 7.00% of compensation from plan members and 7.00%
of compensation from the City through June 30, 2017, with City contributions
increasing 7.25% beginning July 1, 2017, 8.50% beginning July 1, 2018, and 9.00%
effective July 1, 2020. For this purpose, only employer contributions that are
intended to fund benefits of current plan members and their beneficiaries are
included.
Projected employer contributions that are intended to fund the service costs of
future plan members and their beneficiaries are excluded, as are projected employee
contributions from future plan members. Based on these assumptions, the System’s
fiduciary net position was not projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate
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