Acton-Boxborough Regional School District Notes to Required Supplementary Information Year Ended June 30, 2024
NOTE B – PENSION PLAN
A. Schedule of the District’s Proportionate Share of the Net Pension Liability
The Schedule of the District’s Proportionate Share of the Net Pension Liability details the allocated percentage of the net pension liability (asset), the proportionate share of the net pension liability, and the covered employee payroll. It also demonstrates the net position as a percentage of the pension liability and the net pension liability as a percentage of covered payroll.
B. Schedule of District’s Contributions
Governmental employers are required to pay an annual appropriation as established by PERAC. The appropriation includes the amounts to pay the pension portion of each member’s retirement allowance, an amount to amortize the actuarially determined unfunded liability to zero in accordance with the system’s funding schedule, and additional appropriations in accordance with adopted early retirement incentive programs. The appropriations are payable on July 1 and January 1. The District may choose to pay the entire appropriation in July at a discounted rate. Accordingly, actual contributions may be less than the “total appropriation”. The pension fund appropriation is allocated to the District based on covered payroll.
C. Schedule of the Special Funding Amounts of the Net Pension Liabilities
The Commonwealth of Massachusetts is a nonemployer contributor and is required by statute to make all actuarially determined employer contributions on behalf of the member employers which creates a special funding situation. Since the District does not contribute directly to MTRS, there is no net pension liability to recognize. This schedule discloses the Commonwealth’s 100% share of the collective net pension liability that is associated with the District; the portion of the collective pension expense as both a revenue and pension expense recognized by the District; and the Plan's fiduciary net position as a percentage of the total liability. Changes in Assumptions • None. Changes in Plan Provisions • Effective December 31, 2023, pursuant to chapter 269 of the Acts of 2022, the Board approved a onetime increase in the COLA from 3% to 5% effective July 1, 2022.
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