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city_services_iconNet financial liabilities are fully funded.
Financial sustainability is a key objective of the City of Germantown. As a fiscally responsible city, sufficient assets are made available to meet current and future retirees’ demands on assets. The City maintains an adequate pension funding level where net pension liability and asset value will be 80% or greater. Pension liability is the difference between the total amount due to retirees and the actual amount of money the company has on hand to make those payments. Germantown is fully funded in all its pension liabilities, however, additional City funds will be required or asset investments will need to change in order to maintain this funding level if it falls below 80%.

Caution Fully funded annual pension liability

Description

The City maintains an adequate pension funding level where net pension liability and asset value is 80% or greater. Pension liability is the difference between the total amount due to retirees and the actual amount of money the City has on hand to make those payments. Germantown is fully funded in all its pension liabilities, however, the City will be responsible for increasing fund contributions or adjusting investment strategies if the funding level falls below 80%.

 

Analysis

As of July 1, 2017 the City achieved a funding status of 72.69% while reducing the assumed rate of return to 7.5% from 8%. This reduction in the assumed rate of return was to provide for a more realistic rate of return going forward and to ensure the City was contributing a sufficient amount of annual required contribution to reach the 80% benchmark in future years. The investment return for this period was 11.9% which offset the reduced rate of return impact.

 

Impact

The City has a high impact on this measure.
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WWW.GERMANTOWN-TN.GOV
1930 SOUTH GERMANTOWN ROAD
GERMANTOWN, TN 38138 | (901) 757-7200
 
©2016 THE CITY OF GERMANTOWN. ALL RIGHTS RESERVED.

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WWW.GERMANTOWN-TN.GOV
1930 SOUTH GERMANTOWN ROAD
GERMANTOWN, TN 38138 | (901) 757-7200
 
©2016 THE CITY OF GERMANTOWN. ALL RIGHTS RESERVED.