BOROUGH OF SOMERVILLE

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2021 AND 2020

Note 7. PENSION PLANS (CONT’D.)
A. Public Employees' Retirement System (PERS) (Cont’d.)

Components of Net Pension Liability – The components of the collective net pension liability for PERS, including the State of New Jersey, at June 30, 2020 is as follows:

State Local Total
Total Pension Liability $28,272,160,382 $39,432,792,871 $67,704,953,253
Plan Fid. Net Position 6,048,192,857 22,997,176,445 29,045,369,302
Net PERS Pension Liability $22,223,967,525 $16,435,616,426 $38,659,583,951

At December 31, 2020, the Borough’s deferred outflow of resources and deferred inflow of resources related to PERS were from the following sources, if GASB 68 was recognized:

Deferred Outflows
Of Resources
Deferred Inflows
Of Resources
Difference between expected and actual experience $85,462 $16,599
Change in assumptions 152,265 1,965,248
Net difference between projected and actual earnings
On pension plan investments
160,430
Changes in proportion and differences between Borough
Contributions and proportionate share of contributions
639,608 382,092
Borough contributions subsequent to the
measurement date
279,544 -
Total $1,317,309 $2,363,939

The $279,544 is reflected above as deferred outflows of resources related to pensions resulting from Borough contributions subsequent to the measurement date. Other amounts reported as deferred outflows of resources and deferred inflows of resources (excluding employer specific amounts) related to pensions would be recognized in pension expense as follows if GASB 68 was recognized:

Year ending Amount
2021 ($482,827)
2022 (476,159)
2023 (302,823)
2024 (50,924)
2025 (13,441)
Total ($1,326,174)

Additional Information

Collective balances at June 30, 2020
Collective deferred outflows of resources $2,347,583,337
Collective deferred inflows of resources 7,849,949,467
Collective net pension liability – Local group 16,435,616,426
Borough’s Proportion 0.0287819485%
50