Page 59 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

NOTE 10 PENSION PLAN (CONTINUED)

2017
Net
Pay in July Amortization
1, 2016 Proportion Proportionate Proportionate of Deferred Total
Actuarial of Net Share of Net Share of Amounts from Employer
Valuation Pension Pension Pension Changes in Pension
Data Liability Liability Expense Proportion Expense
City of Birmingham

(without Authority) $193,643,689 96.72% $ 683,932,360 $ 94,302,643 $ (302,999) $93,999,644

Authority 6,561,793 3.28% 23,193,736 3,198,022 302,999 3,501,021

Total $200,205,482 100.00% $ 707,126,096 $ 97,500,665 $ - $97,500,665

Net Pension Liability
The Authority has allocated a proportional share of 3.28% of the net pension
liability of the City of Birmingham Retirement and Relief System, with the
allocation based on July 1, 2016 valuation pay. This basis is intended to measure
the proportion of each employer's long-term funding requirements. The Authority's
allocated share of the net pension liability is $23,193,736.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the Authority's proportional share of the net pension
liability of the Birmingham Retirement and Relief System, calculated using the
discount rate of 5.43%, as well as what the proportional share of the net pension
liability would be if it were calculated using a discount rate that is one
percentage-point lower (4.43%) or one percentage-point higher (6.43%) than the
current rate:
Current
1% Decrease Discount 1% Increase
(4.43%) (5.43%) (6.43%)
City of Birmingham's proportional share
of net pension liability $ 30,663,995 $ 23,193,736 $ 16,982,169

For the year ended June 30, 2017, the Authority's recognized pension expense is
$3,501,021. At June 30, 2017, the Authority reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following
sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 617,934 $ 852,411
Changes of assumptions 9,843,092 8,336,237
Change in proportionate share 1,230,801 -
Net difference between projected and actual earnings on
pension plan investments 750,044 -
Total $ 12,441,871 $ 9,188,648

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