Retirement & Investment Disclosures for Fiscal Year Ended June 30, 2020
MEMORANDUM #2021-02
TO: Local Government Finance Officials and Their Independent Auditors
FROM: Sharon Edmundson, Deputy Treasurer
SUBJECT: Retirement and Investment Disclosures for Fiscal Year Ended June 30, 2020
DATE: August 3, 2020
This information can be used in the preparation of financial statements for the fiscal year ended June 30, 2020.
Retirement Contribution Rates for Teachers’ and State Employees’ Retirement System (TSERS)
Below are the TSERS retirement funding rates for the fiscal year ended June 30, 2020. Employer contribution rates payable from July 1, 2019 to June 30, 2020 were
| Benefit | Rate |
|---|---|
| Retirement contribution | 12.97% |
| Retiree Health Reserve | 6.47% |
| Death Benefit | 0.16% |
| Disability | 0.10% |
| Total | 19.70% |
For the Firefighters’ and Rescue Squad Workers’ Pension Fund disclosure amounts see Memo # 2021-01.
GASB Statement Nos. 40, 43, 45 and 72 Investment Note Disclosure Information
(AGPIP) OPEB Investment Fund
The North Carolina Capital Management Trust (NCCMT), which consists of two SEC-registered mutual funds (the Government Portfolio and the Term Portfolio), is authorized by G.S. 159-30(c)(8). The Government Portfolio, which invests in treasuries and government agencies, is a money market mutual fund (2a7) and maintains an AAAm rating from S&P.
The Term Portfolio is a short-term bond fund investing in treasuries, government agencies, and money market instruments allowed under G.S. 159-30. The Term Portfolio has no rating and has a duration of 0.15 years. Both the Government Portfolio and the Term Portfolio are reported at fair value.
STIF investments are measured at fair value by the custodian using Level 2 inputs. The STIF is valued at $1 per share. The STIF portfolio is unrated and had a weighted average maturity at June 30, 2020 of 1.3 years
Bond Index Fund (BIF) does not have a credit rating, was valued at $1 per unit and had an average maturity of 7.97 years at June 30, 2020.
BlackRock’s MSCI ACWI EQ Index Lon-Lendable Class B Fund is a common trust fund considered to be commingled in nature. The Fund’s fair value is the number of shares times the net asset value as determined by a third party. At June 30, 2020 the fair value of the funds was $ 23.107392 per share. Fair value for this Blackrock fund is determined using Level 1 inputs.
The OPEB fund is broken into individual accounts with unique percentage allocations. Please refer to your individual account statements for information on your allocations.
If you have any questions, please contact SLGFD@nctreasurer.com or 919-814-4300.