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CABARRUS COUNTY, NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended June 30, 2021 Contributions. Contribution provisions are established by General Statute 128‐30 and may be amended only by the North Carolina General Assembly. Cabarrus County employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. Cabarrus County’s contractually required contribution rate for the year ended June 30, 2021 was 10.90% of compensation for law enforcement officers and 10.15% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Cabarrus County were $6,153,223 for the year ended June 30, 2021. Refunds of Contributions – County employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60‐day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions, or any other benefit provided by LGERS. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2021, the County reported a liability of $29,568,671 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2019. The total pension liability was then rolled forward to the measurement date of June 30, 2020 utilizing update procedures incorporating the actuarial assumptions. The County’s proportion of the net pension liability was based on a projection of the County’s long‐term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2021 the County’s proportion was 0.827% (measured as of June 30, 2020), which was an increase of 0.032% from its proportion as of June 30, 2020 (measured as of June 30, 2019). For the year ended June 30, 2021, the County recognized pension expense of $10,265,476. At June 30, 2021, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of ResourcesDeferred Inflows of ResourcesDifferences between expected and actual experience 3,734,004$ ‐$ Changes of assumptions2,200,489 ‐ Net difference between projected and actual earnings on pension plan investments4,160,998 ‐ Changes in proportion and differences between County contributions and proportionate share of contributions353,398 74,105 County contributions subsequent to the measurement date6,153,223 ‐ Total16,602,112$ 74,105$ 69
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