HomeMy WebLinkAboutCity of Roanoke Pension Plan - Public Financial Report1
Message to Our Readers:
We are pleased to present the Popular Annual Financial Report (PAFR) for The
City of Roanoke Pension Plan’s ϐiscal year ended June 30, 2021. The Plan’s PAFR
provides insight into the Plan’s ϐinancial condition. Derived from the Plan’s
Annual Comprehensive Financial Report (ACFR), the PAFR is written for those
who do not have a background in ϐinance. The document relies on graphics and
other visual elements to compliment the ϐinancial message, and is not technical in
nature.
The information provided in this report is a
summary of the Pension Plan’s audited ϐinancial
statements and a snapshot of the Plan, services,
ϐinancial results, and investments, all of which are
reported in more detail in the Plan’s ACFR for the
ϐiscal year ending June 30, 2021. The complete
audited ϐinancial statements and pertinent notes to
the ϐinancial statements can be found in Pension
Plan’s 2021 ACFR. The PAFR only provides
summary ϐinancial information and does not conform to Generally Accepted
Accounting Principles (GAAP); the ACFR conforms to GAAP and provides a
comprehensive overview of the Plan’s ϐinancial and operating results.
What’s Inside:
Page 2: Financial Statements
Page 3: Income & Expenses and Funded
Status
Page 4: Investments
Page5: Plan Membership and Beneϐits
Page 6: PAFR Certiϐicate
Popular
Annual
Financial
Report
For more in-depth information, you may obtain a copy of the City of Roanoke Pension Plan ACFR on the city’s website at
www.roanokeva.gov/392/Retirement
City of Roanoke, VA
Pension Plan
For Fiscal Year 2021
2
Financial Statements
Summary of Changes in Fiduciary Net Position
As of June 30
Summary of Fiduciary Net Position
As of June 30
Fiduciary Net Position for the Past Five Years
As of June 30
The Plan’s Fiduciary Net Position increased
$108.4 million or 25.6% as result of activities
for the ϐiscal year ended June 30, 2021. Net
Position Held in Trust for Pension Beneϐits
totaled $532.1 million at June 30, 2021
compared to $423.7 million at June 30, 2020.
Total Contributions decreased 2.1% or $351
thousand when compared to the ϐiscal year
ended June 30, 2020 due to a decrease in total
covered payroll.
Employer contributions decreased from $12.6
million to $12.4 million for the ϐiscal years
ending June 30, 2020 and 2021, respectively.
For the ϐiscal year ended June 30, 2021, the
Plan had a 32.4%, net of fees, investment
return, which resulted in Net Investment Gain
of $121.7 million. Investments totaled $531.2
million at June 30, 2021 compared to $422.5
million at June, 30, 2020.
Beneϐit payments increased 3.0% or $1.2
million to $41.1 million for the ϐiscal year
ended June 30, 2021 when compared to $39.9
million for the ϐiscal year ended June 30, 2020.
2021 2020 2019
Additons/(Reductions)
Employer Contributions 12,367,130$ 12,590,804$ 12,510,402$
Employee Contributions 3,685,892 3,813,475 3,690,921
Net Investment Income 133,908,113 16,792,025 20,672,578
Total Additions 149,961,135$ 33,196,304$ 36,873,901$
Deductions
Pension Benefits 41,085,353$ 39,882,146$ 38,525,270$
Administrative Expense 530,354 516,616 535,657
Total Deductions 41,615,707$ 40,398,762$ 39,060,927$
Net Increase/(Decrease)108,345,428$ (7,202,458)$ (2,187,026)$
Net Position Restricted for Pensions
Beginning of Year 423,720,974$ 430,923,432$ 433,110,458$
End of Year 532,066,402$ 423,720,974$ 430,923,432$
2021 2020 2019
Assets:
Cash and Investments $ 531,778,897 $ 423,045,441 $ 430,361,156
Receivables 1,139,908 1,107,279 1,103,532
Receivable for Securities Transactions 76,206 126,510 62,198
Total Assets $ 532,995,011 $ 424,279,230 $ 431,526,886
Liabilities:
Accounts Payable $ 220,540 $ 220,876 $ 246,266
Payable for Securities Transactions 708,069 337,380 357,188
Total Liabilities $ 928,609 $ 558,256 $ 603,454
Net Position Restricted for Pension $ 532,066,402 $ 423,720,974 $ 430,923,432
$408,039,654
$433,110,458
$430,923,432
$423,720,974
$532,066,402
2021 2020 2019 2018 2017
3
Income & Expenses and Funded Status
Administrative Expenses Income by Source
Funded Status
Actuarial Accrued Liability and Value of Assets
Funded status measures the progress of accumulating the funds necessary to meet future obligations. Historically, periods of diminished funded
status were made up as market conditions improved. Similarly, years of enhanced funded status are eroded when market conditions are poor. The
Plan continues to maintain this necessary balance by constantly monitoring and adapting to market conditions. The financing objective of the Plan is
to fully fund all current costs based on the normal contribution rate payable by the participating employers and employees and to eliminate any
unfunded accrued liability based on accrued liability contributions payable over a closed amortization period of 30 years.
The Plan’s funded status:
79.1% as of June 30, 2021
Pension Benefit Expense by Retirement Type
4
Investments
The Plan’s increase in Net Position Restricted for Pensions is due to the exceptional investment returns
experienced as of June 30, 2021. The Plan experienced an investment return of 32.4%, net of fees, for the ϐiscal
year ended June 30, 2021, with the Domestic and International Equities and Convertible Securities allocations
producing the greatest absolute returns. The Plan’s long-term annualized returns ranked near the top of the
investment advisor’s comparative universe of all retirement plans.
Our outlook for the U.S. economy remains cautiously optimistic given positive economic indicators and
investment performance experienced since the end of the ϐiscal year. We believe the well diversiϐied portfolio
remains well positioned in light of potential volatility due to the on-going COVID-19 pandemic and any changes
in ϐiscal and monetary policy.
The Board of Trustees have formally adopted the Statement of Investment Policy that states the long-term
capital growth objective of the plan and attempts to mitigate the short-term impact of market volatility through
diversiϐication of investments. The Trustees believe the portfolio allocation remains appropriately diversiϐied in
anticipation of continued market volatility and overall concerns over the economy.
Asset Allocation Mix Investment Summary
Annualized Returns
5
Plan Membership and Benefits
The Plan covers all full‐time regular employees of the City,
the Roanoke Regional Airport Commission, and the
Roanoke Valley Detention Commission, certain employees
of the Western Virginia Water Authority, and certain non‐
professional City of Roanoke School Board employees.
Employees of the City of Roanoke Sheriff’s Of ice are not
covered by the Plan.
Plan Membership
Active Membership by Employer
Years of Service at Retirement
Benefits and Services Provided
Members are vested after ϐive years of service and are eligible for beneϐits at the early or normal service retirement date. Normal service retirement and early service retirement beneϐits are available for members who attain the age and service requirements. Occupational disability beneϐits are eligible immediately upon becoming a member in the Plan. Non-occupational disability beneϐits are provided after the attainment of ϐive years of membership. Beneϐit Statements are provided to all active members on an annual basis. Counseling is provided to all plan participants. Presentations to introduce the City of Roanoke Pension Plan are conducted during new employee orientations.
* ConsƟtutes closed group, no new employees admiƩed to membership
6
PAFR Certificate
The Government Finance Ofϐicers Association of the United States and Canada (GFOA) has given an
Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Roanoke
Pension Plan for its Popular Annual Financial Report for the ϐiscal year ended June 30, 2020. The Award
for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local government
ϐinancial reports. In order to receive an Award for Outstanding Achievement in Popular Financial
Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform
to program standards of creativity, presentation, understandability and reader appeal. An Award for
Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only.
We believe our current report continues to conform to the Popular Annual Financial Reporting
requirements, and we are submitting it to GFOA.
City of Roanoke Pension Plan 2021 PAFR offers a summary of information presented in the 2021 ACFR. The 2021 ACFR provides detailed information regarding the Pension Plan investment performance and funding as well as detailed demographic information for Plan members and employers.
Please visit the city’s website at www.roanokeva.gov to view the 2021 ACFR for the City of Roanoke Pension Plan.
Comments, questions, or concerns? Please contact our ofϐice . We welcome all feedback.
Contacting the Retirement Ofϐice
Address: 215 Church Ave. Room 465 Roanoke, VA 24012;
Ofϐice Hours: 8AM - 5 PM Monday - Friday;
Phone: 540-853-2062; Fax: 540-853-6142
Prepared by Department of Finance Retirement Plans Administration