Net financial liabilities are fully funded

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Net 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%.

No Information 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

At this time, the City has not received the annual pension report for 2024. This measure will be updated when the report is received from the actuary.

Impact

The City has a high impact on this measure.