2019 & 2020-COH - DWS Financial Statements and Supplementary Information With Independent Auditor's Report

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County of Hawaii Department of Water Supply (A component unit of the County of Hawaii, State of Hawaii) NOTES TO FINANCIAL STATEMENTS June 30, 2020 and 2019 NOTE G - EMPLOYEE BENEFITS (Continued) At June 30, 2020, the Department reported $2,258,593 of deferred outflows of resources related to pensions resulting from the Department's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions at June 30, 2020 will be recognized in pension expense as follows: Net Deferred Fiscal Year Ending June 30, Outflows (Inflows) 2021 $ 1,458,414 2022 888,038 2023 306,430 2024 (81,909) 2025 (142,503) $ 2,428,470 Actuarial Assumptions - The total pension liability in the June 30, 2019 and 2018 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: 2019 2018 Inflation 2.50% 2.50% Investment rate of return, including inflation 7.00% 7.00% Salary increases, including inflation Police and fire employees 5.00% to 7.00% 5.00% to 7.00% General employees 3.50% to 6.50% 3.50% to 6.50% Teachers 3.75% to 5.75% 3.75% to 5.75% Mortality rates used in the actuarial valuation as of June 30, 2019 and 2018 were based on the following: Active members - Multiples of the RP 2014 mortality table for active employees based on the occupation of the member. Healthy retirees - 2019: The 2019 Public Retirees of Hawaii mortality table, generational projection using the BB projection table from the year 2019 and with multipliers based on plan and group experience. 2018: The 2016 Public Retirees of Hawaii mortality table, generational projecting using the BB projection table from the year 2016 and with multipliers based on plan and group experience. Disabled retirees - 2019: Base table for healthy retirees' occupation, set forward five years, generational projection using the BB projection table from the year 2019. Minimum mortality rate of 3.50% for males and 2.50% for females. 2018: Base table for healthy retirees' occupation, set forward five years, generational projection using the BB projection table from the year 2016. Minimum mortality rate of 3.50% for males and 2.50% for females. MET