Page 95 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 8. Employee Pension Plan (Continued)
c. Changes in the Net Pension Liability

The changes in the Net Pension Liability over the measurement period are as follows:

Governmental
Activities Enterprise
Net Pension Net Pension
Total Pension Plan Fiduciary Net Pension Liability Liability
Miscellaneous Plan: Liability Net Position Liability (Asset) (Asset)
Balance at June 30, 2023 (Measurement Date) $ 270,687,477 $ 183,675,263 $ 87,012,214 $ 84,123,273 $ 2,888,941
Changes in the year:
Service Cost 4,769,622 - 4,769,622 4,557,851 211,771
Interest on the Total Pension Liability 18,456,957 - 18,456,957 17,637,468 819,489
Differences between Expected and Actual
Experience 1,422,588 - 1,422,588 1,359,425 63,163
Contributions - Employer - 10,551,435 (10,551,435) (10,082,951) (468,484)
Contributions - Employees - 2,308,151 (2,308,151) (2,205,669) (102,482)
Net Investment Income - 17,788,583 (17,788,583) (17,973,170) 184,587
Benefit Payments, including Refunds of
Employee Contributions (14,005,505) (14,005,505) - - -
Administrative Expense - (149,457) 149,457 142,821 6,636
Net Changes 10,643,662 16,493,207 (5,849,545) (6,564,225) 714,680
Balance at June 30, 2024 (Measurement Date) $ 281,331,139 $ 200,168,470 $ 81,162,669 $ 77,559,047 $ 3,603,622

Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City calculated using the discount
rate for the Miscellaneous Plan, as well as what the City’s net pension liability would be if
it were calculated using a discount rate that is one percentage point lower 5.90% or one
percentage point higher 7.90% than the current rate:

Current
1% Decrease Discount Rate 1% Increase
5.90% 6.90% 7.90%
Plan’s Net Pension Liability/(Asset) $ 117,875,449 $ 81,162,669 $ 50,790,094

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