BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
Note 7.
PENSION PLANS (CONT’D.)
B. Police and Firemen’s Retirement System (PFRS) (cont’d):

The $1,075,134 is reflected above as deferred outflows of resources related to pensions resulting from Borough contributions subsequent to the measurement date. 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 ($1,071,901)
2022 (718,291)
2023 (273,928)
2024 (37,819)
2025 (85,575)
Total $(2,187,514)
Additional Information
Collective balances at June 30, 2020
Collective deferred outflows of resources $1,601,195,680
Collective deferred inflows of resources 4,191,274,402
Collective net pension liability – Local group 14,926,648,722
Borough’s Proportion 0.1034963449%

Collective pension expense for the Local Group for the measurement period ended June 30, 2020 is $949,220,570. The average of the expected remaining service lives of all plan members is 5.90, 5.92, 5.73, 5.59, 5.58, 5.53 and 6.17 years for 2020, 2019, 2018, 2017, 2016, 2015 and 2014 amounts, respectively.

State Contribution Payable Dates

Chapter 83, P.L. 2016 requires the State to make pension contributions on a quarterly basis: at least 25% by September 30, at least 50% by December 31, at least 75% by March 31, and at least 100% by June 30. As such, contributions are assumed to be made on a quarterly basis.

Local employer’s contributions are expected to be paid on April 1st, 21 months after the associated valuation date.

Receivable Contributions

The Fiduciary Net Position (FNP) includes Local employers’ contributions receivable as reported in the financial statements provided by the Division of Pensions and Benefits. In determining the discount rate, the FNP at the beginning of each year does not reflect receivable contributions as those amounts are not available at the beginning of the year to pay benefits. The receivable contributions for the year ended June 30, 2020 was $1,194,176,430.

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