ANNUAL FINANCIAL AUDIT JUNE 30, 2022 Magistrates Retirement Fund of Georgia A Component Unit of the State of Georgia Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer Greg S. Griffin | State Auditor Kristina A. Turner | Deputy State Auditor Greg S. Griffin State Auditor INDEPENDENT AUDITOR'S REPORT Members of the Board of Commissioners of the Magistrates Retirement Fund of Georgia and Mr. Homer Bryson, Secretary-Treasurer Magistrates Retirement Fund of Georgia Opinions We have audited the schedule of employer and nonemployer allocations of the Magistrates Retirement Fund of Georgia (Fund), a component unit of the State of Georgia, as of and for the year ended June 30, 2022, and the related notes. We have also audited the total for all entities of the columns titled net pension liability, total deferred outflows of resources, total deferred inflows of resources, and total employer pension expense (specified column totals) included in the accompanying schedule of pension amounts by employer and nonemployer of the Fund as of and for the year ended June 30, 2022, and the related notes. In our opinion, the Schedules referred to above present fairly, in all material respects, the employer and nonemployer allocations and net pension liability, total deferred outflows of resources, total deferred inflows of resources and total employer pension expense of the Fund as of and for the year ended June 30, 2022 in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Schedules section of our report. We are required to be independent of the Fund, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Schedules Management is responsible for the preparation and fair presentation of the schedule of employer and nonemployer allocations and the schedule of pension amounts by employer and nonemployer (collectively, the Schedules) in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the Schedules that are free from material misstatement, whether due to fraud or error. 270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 Auditor's Responsibilities for the Audit of the Schedules Our objectives are to obtain reasonable assurance about whether the Schedules are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the Schedules. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the Schedules, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the Schedules. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the Schedules. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Other Matter We have audited, in accordance with the auditing standards generally accepted in the United States of America, the financial statements of the Fund as of and for the year ended June 30, 2022. Our report thereon, dated June 16, 2023, expressed an unmodified opinion on those financial statements. Restriction on Use Our report is intended solely for the information and use of the Fund's management, the Board of Commissioners, the Fund employers, nonemployer contributing entities, and their auditors and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, Greg S. Griffin State Auditor June 16, 2023 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Schedule of Employer and Nonemployer Allocations For the year ended June 30, 2022 Employer State of Georgia - Nonemployer Contributing Entity State's Proportionate Share Associated with: Appling Baker Baldwin Banks Barrow Bartow Berrien Bibb Bleckley Brantley Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattooga Cherokee Clay Cobb Coffee Colquitt Columbia Coweta Crisp Dade Dawson Dekalb Dodge Dougherty Douglas Early Echols Effingham Elbert Emanuel Evans Fannin 3 Earnings Cap 42,781.22 42,781.22 50,456.02 42,781.22 60,705.70 64,854.89 42,781.22 69,380.55 42,781.22 42,781.22 50,456.02 60,705.70 44,519.08 44,519.08 42,781.22 56,551.77 42,781.22 64,854.89 56,551.77 42,781.22 82,089.54 44,519.08 82,089.54 42,781.22 97,976.05 50,456.02 50,456.02 69,380.55 64,854.89 44,519.08 42,781.22 44,519.08 97,976.05 42,781.22 60,705.70 64,854.89 42,781.22 42,781.22 56,551.77 42,781.22 44,519.08 42,781.22 44,519.08 Employer Allocation Percentage 0.64674% 0.64674% 0.76277% 0.64674% 0.91772% 0.98044% 0.64674% 1.04886% 0.64674% 0.64674% 0.76277% 0.91772% 0.67302% 0.67302% 0.64674% 0.85492% 0.64674% 0.98044% 0.85492% 0.64674% 1.24099% 0.67302% 1.24099% 0.64674% 1.48115% 0.76277% 0.76277% 1.04886% 0.98044% 0.67302% 0.64674% 0.67302% 1.48115% 0.64674% 0.91772% 0.98044% 0.64674% 0.64674% 0.85492% 0.64674% 0.67302% 0.64674% 0.67302% MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Schedule of Employer and Nonemployer Allocations For the year ended June 30, 2022 Employer State of Georgia - Nonemployer Contributing Entity State's Proportionate Share Associated with: Fayette Floyd Forsyth Franklin Fulton Gilmer Gordon Grady Greene Gwinnett Habersham Hall Hancock Haralson Harris Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson Johnson Jones Lanier Laurens Lee Liberty Lincoln Long Lumpkin Macon Marion Mcduffie Mcintosh Meriwether Miller Mitchell Montgomery Morgan Murray 4 Earnings Cap 64,854.89 60,705.70 82,089.54 44,519.08 97,976.05 47,485.71 56,551.77 44,519.08 42,781.22 97,976.05 50,456.02 75,621.49 42,781.22 47,485.71 47,485.71 42,781.22 75,621.49 69,380.55 42,781.22 60,705.70 42,781.22 42,781.22 42,781.22 42,781.22 44,519.08 42,781.22 50,456.02 47,485.71 56,551.77 42,781.22 42,781.22 47,485.71 42,781.22 42,781.22 44,519.08 42,781.22 44,519.08 42,781.22 44,519.08 42,781.22 44,519.08 50,456.02 Employer Allocation Percentage 0.98044% 0.91772% 1.24099% 0.67302% 1.48115% 0.71786% 0.85492% 0.67302% 0.64674% 1.48115% 0.76277% 1.14321% 0.64674% 0.71786% 0.71786% 0.64674% 1.14321% 1.04886% 0.64674% 0.91772% 0.64674% 0.64674% 0.64674% 0.64674% 0.67302% 0.64674% 0.76277% 0.71786% 0.85492% 0.64674% 0.64674% 0.71786% 0.64674% 0.64674% 0.67302% 0.64674% 0.67302% 0.64674% 0.67302% 0.64674% 0.67302% 0.76277% MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Schedule of Employer and Nonemployer Allocations For the year ended June 30, 2022 Employer State of Georgia - Nonemployer Contributing Entity State's Proportionate Share Associated with: Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Randolph Rockdale Schley Screven Secretary/Treasurer Spalding Stephens Taliaferro Tattnall Taylor Terrell Thomas Tift Toombs Towns Troup Twiggs Union Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes 5 Earnings Cap 50,456.02 42,781.22 69,380.55 44,519.08 47,485.71 42,781.22 42,781.22 50,456.02 42,781.22 44,519.08 42,781.22 42,781.22 60,705.70 42,781.22 42,781.22 97,976.05 56,551.77 44,519.08 42,781.22 44,519.08 42,781.22 42,781.22 50,456.02 50,456.02 44,519.08 42,781.22 56,551.77 42,781.22 44,519.08 44,519.08 56,551.77 60,705.70 47,485.71 42,781.22 42,781.22 47,485.71 42,781.22 42,781.22 44,519.08 64,854.89 42,781.22 42,781.22 Employer Allocation Percentage 0.76277% 0.64674% 1.04886% 0.67302% 0.71786% 0.64674% 0.64674% 0.76277% 0.64674% 0.67302% 0.64674% 0.64674% 0.91772% 0.64674% 0.64674% 1.48120% 0.85492% 0.67302% 0.64674% 0.67302% 0.64674% 0.64674% 0.76277% 0.76277% 0.67302% 0.64674% 0.85492% 0.64674% 0.67302% 0.67302% 0.85492% 0.91772% 0.71786% 0.64674% 0.64674% 0.71786% 0.64674% 0.64674% 0.67302% 0.98044% 0.64674% 0.64674% MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Schedule of Employer and Nonemployer Allocations For the year ended June 30, 2022 Employer State of Georgia - Nonemployer Contributing Entity State's Proportionate Share Associated with: Wilkinson Worth Total Each Employer of Plan Members - Employer Share Earnings Cap 42,781.22 44,519.08 $ 6,614,861.63 Employer Allocation Percentage 0.64674% 0.67302% 100.0000% 0.000000% 6 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Schedule of Pension Amounts by Employer and Nonemployer For the year ended June 30, 2022 Employer Net Pension Asset Deferred Outflows of Resources Changes in Assumptions Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments Total Deferred Outflows of Resources State of Georgia - Nonemployer Contributing Entity State's Proportionate Share Associated with: Appling $ Baker Baldwin Banks Barrow Bartow Berrien Bibb Bleckley Brantley Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattooga Cherokee Clay Cobb Coffee Colquitt Columbia Coweta Crisp Dade Dawson Dekalb Dodge Dougherty (71,606) (71,606) (84,452) (71,606) (101,608) (108,552) (71,606) (116,127) (71,606) (71,606) (84,452) (101,608) (74,515) (74,515) (71,606) (94,655) (71,606) (108,552) (94,655) (71,606) (137,400) (74,515) (137,400) (71,606) (163,990) (84,452) (84,454) (116,127) (108,552) (74,515) (71,606) (74,515) (163,990) (71,606) (101,608) Deferred Inflows of Resources Changes in Assumptions Differences Between Expected and Actual Experience Total Deferred Inflows of Resources Total Employer Pension Expense $ 5,474 5,474 6,456 5,474 7,768 8,299 5,474 8,878 5,474 5,474 6,456 7,768 5,697 5,697 5,474 7,236 5,474 8,299 7,236 5,474 10,505 5,697 10,505 5,474 12,538 6,456 6,456 8,878 8,299 5,697 5,474 5,697 12,538 5,474 7,768 7 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Schedule of Pension Amounts by Employer and Nonemployer For the year ended June 30, 2022 Employer State of Georgia - Nonemployer Contributing Entity State's Proportionate Share Associated with: Douglas Early Echols Effingham Elbert Emanuel Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Gordon Grady Greene Gwinnett Habersham Hall Hancock Haralson Harris Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson Johnson Jones Lanier Laurens Net Pension Asset Deferred Outflows of Resources Changes in Assumptions Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments Total Deferred Outflows of Resources (108,552) (71,606) (71,606) (94,655) (71,606) (74,515) (71,606) (74,515) (108,552) (101,608) (137,400) (74,515) (163,990) (79,480) (94,655) (74,515) (71,606) (163,990) (84,452) (126,574) (71,606) (79,480) (79,480) (71,606) (126,574) (116,127) (71,606) (101,608) (71,606) (71,606) (71,606) (71,606) (74,515) (71,606) (84,452) Deferred Inflows of Resources Changes in Assumptions Differences Between Expected and Actual Experience Total Deferred Inflows of Resources Total Employer Pension Expense 8,299 5,474 5,474 7,236 5,474 5,697 5,474 5,697 8,299 7,768 10,505 5,697 12,538 6,076 7,236 5,697 5,474 12,538 6,456 9,678 5,474 6,076 6,076 5,474 9,678 8,878 5,474 7,768 5,474 5,474 5,474 5,474 5,697 5,474 6,456 8 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Schedule of Pension Amounts by Employer and Nonemployer For the year ended June 30, 2022 Employer State of Georgia - Nonemployer Contributing Entity State's Proportionate Share Associated with: Lee Liberty Lincoln Long Lumpkin Macon Marion Mcduffie Mcintosh Meriwether Miller Mitchell Montgomery Morgan Murray Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Randolph Rockdale Schley Screven Secretary/Treasurer Spalding Stephens Taliaferro Tattnall Taylor Terrell Thomas Net Pension Asset Deferred Outflows of Resources Changes in Assumptions Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments Total Deferred Outflows of Resources (79,480) (94,655) (71,606) (71,606) (79,480) (71,606) (71,606) (74,515) (71,606) (74,515) (71,606) (74,515) (71,606) (74,515) (84,452) (84,452) (71,606) (116,127) (74,515) (79,480) (71,606) (71,606) (84,452) (71,606) (74,515) (71,606) (71,606) (101,608) (71,606) (71,606) (163,990) (94,655) (74,515) (71,606) (74,515) (71,606) (71,606) (84,452) Deferred Inflows of Resources Changes in Assumptions Differences Between Expected and Actual Experience Total Deferred Inflows of Resources Total Employer Pension Expense 6,076 7,236 5,474 5,474 6,076 5,474 5,474 5,697 5,474 5,697 5,474 5,697 5,474 5,697 6,456 6,456 5,474 8,878 5,697 6,076 5,474 5,474 6,456 5,474 5,697 5,474 5,474 7,768 5,474 5,474 12,540 7,236 5,697 5,474 5,697 5,474 5,474 6,456 9 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Schedule of Pension Amounts by Employer and Nonemployer For the year ended June 30, 2022 Employer Net Pension Asset Deferred Outflows of Resources Changes in Assumptions Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments Total Deferred Outflows of Resources State of Georgia - Nonemployer Contributing Entity State's Proportionate Share Associated with: Tift Toombs Towns Troup Twiggs Union Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson Worth (84,452) (74,515) (71,606) (94,655) (71,606) (74,515) (74,515) (94,655) (101,608) (79,480) (71,606) (71,606) (79,480) (71,606) (71,606) (74,515) (108,552) (71,606) (71,606) (71,606) (74,515) TOTAL STATE OF GEORGIA (Nonemployer Contributing Entity) $ (11,071,785) 115,185 3,487,680 3,602,865 Each Employer of Plan Members - Employer Share 0 0 0 0 Total for All Entities $ (11,071,785) 115,185 3,487,680 3,602,865 Deferred Inflows of Resources Changes in Assumptions Differences Between Expected and Actual Experience Total Deferred Inflows of Resources 1,969,951 2,613,001 4,582,952 0 1,969,951 0 2,613,001 0 4,582,952 Total Employer Pension Expense 6,456 5,697 5,474 7,236 5,474 5,697 5,697 7,236 7,768 6,076 5,474 5,474 6,076 5,474 5,474 5,697 8,299 5,474 5,474 5,474 5,697 846,436 0 846,436 10 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Notes to Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer June 30, 2022 Note 1: Plan Description The Magistrates Retirement Fund of Georgia (the Retirement Fund) was created July 1, 2006, by the General Assembly of Georgia for the purpose of paying retirement benefits to chief magistrates of the magistrate courts of the State of Georgia. The Retirement Fund administers a cost-sharing, multiple-employer defined benefit pension plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 67, Financial Reporting for Pension Plans an amendment of GASB Statement No. 25. Employees of magistrate courts, including the chief magistrate, are employees of the county in which the court is located. The counties, as the employers of the members of the Retirement Fund, do not make contributions to the Retirement Fund. The State of Georgia provides nonemployer contributions to the Retirement Fund through the collection of court filing fees. These nonemployer contributions are recognized as revenue by the Retirement Fund when collected from the courts. Note 2: Basis of Presentation The Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer (the schedules) are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. Note 3: Components of Collective Net Pension Liability The components of the collective net pension liability of the participating employers and nonemployers at June 30, 2022 were as follows: Total pension liability Plan fiduciary net position Net pension liability (asset) $ 26,359,901 (37,431,686) $ (11,071,785) Plan fiduciary net position as a percentage of total pension liability 142.00% 11 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Notes to Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer June 30, 2022 Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The roll forward calculation adds the normal cost (also called service costs), subtracts the actual benefit payments and refunds for the plan year, and then applies the discount rate for the year. This actuarial valuation used the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return 2.5% N/A 6.50%, net of pension plan investment expense, including inflation Mortality rates were based on the PubG-2010 (Amount Weighted General Employees) Mortality Table with generational mortality projection using the Society of Actuaries MP-2021 scale for healthy lives and the PubG-2010 (Amount Weighted Contingent Survivor) mortality table with generational mortality projection using the Society of Actuaries MP-2021 scale for current and future beneficiaries of deceased participants, and the PubG-2010 (Amount Weighted General Employees) Disabled Mortality Table with generational mortality projection using the Society of Actuaries MP-2021 scale. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. 12 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Notes to Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer June 30, 2022 Discount Rate The discount rate used to measure the total pension liability was 6.50%. The projection of cash flows used to determine the discount rate assumes revenues will remain level. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The target asset allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset class U.S. Equity International Equity Core Fixed Income Core Real Estate Private Equity Target allocation 32.0 % 22.0 36.0 5.0 5.0 100.0 % Long term expected real rate of return 5.33 % 5.63 1.18 4.27 6.65 *Rates shown are net of the 2.25% assumed rate of inflation Sensitivity of the Collective Net Pension Liability (Asset) to Changes in the Discount Rate The following table presents the collective net pension liability of the Retirement Fund, calculated using the discount rate of 6.50%, as well as what the Retirement Fund's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.50%) or 1percentage-point higher (7.50%) than the current rate: Collective net pension asset 1% Decrease (5.50%) $ (8,264,732) Current discount rate (6.50%) (11,071,785) 1% Increase (7.50%) (13,468,484) 13 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Notes to Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer June 30, 2022 Note 4: Special Funding Situation The State of Georgia, although not the employer of the Retirement Fund's members, makes contributions to the Retirement Fund through the collection of court filing fees as specified by O.C.G.A. 47-25-60. The State makes all these contributions to the Retirement Fund on behalf of the employers. Therefore, these employers are considered to be in a special funding situation as defined by GASB Statement No. 68, Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27. Since the employers of the Retirement Fund's members do not contribute directly to the Retirement Fund, there is no net pension liability to recognize for each employer. However, the notes to each employer's financial statements must disclose the portion of the nonemployer contributing entity's share of the collective net pension liability that is associated with that employer. In addition, each employer must recognize its portion of the collective pension expense of the State as well as recognize revenue contributions from the State in an equal amount. Note 5: Allocation Methodology GASB Statement No. 68 requires participating employers and nonemployer contributing entities to recognize their proportionate share of collective net pension liability and pension expense. These schedules are prepared to provide employers and nonemployer contributing entities with their calculated proportionate share. As discussed in Note 4, the counties, as employers of the Retirement Fund's members, do not make contributions to the Retirement Fund; therefore, the proportionate share allocation for each employer is 0%. The proportionate share attributable to the State of Georgia, as the nonemployer contributing entity, is therefore 100%. 14 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Notes to Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer June 30, 2022 Effective July 1, 2014, O.C.G.A. 47-25-81 was amended so that benefits and member contributions are based on the member's compensation, subject to a limit that is based on the population of the member's county. This law allows the Retirement Fund's Board of Commissioners to increase the population-based salary limits. The amounts attributable to the State of Georgia, as the nonemployer contributing entity, have been allocated to each employer participating in the Retirement Fund based on the maximum salary used to calculate benefits as of June 30, 2022. These maximum salaries are shown in the following table: Annual Salary Monthly Salary Population of County Maximum Maximum 0 to 19,999 $ 42,781.22 $ 3,565.10 20,000 to 28,999 44,519.08 3,709.92 29,000 to 38,999 47,785.71 3,982.14 39,000 to 49,999 50,456.02 4,204.67 50,000 to 74,999 56,551.77 4,712.65 75,000 to 99,999 60,705.70 5,058.81 100,000 to 149,999 64,854.89 5,404.57 150,000 to 199,999 69,380.55 5,781.71 200,000 to 249,999 75,621.49 6,301.79 250,000 to 299,999 82,089.54 6,840.80 300,000 to 399,999 90,617.73 7,551.48 400,000 to 499,999 94,296.90 7,858.08 500,000 or more 97,976.05 8,164.67 15 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Notes to Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer June 30, 2022 Note 6: Collective Deferred Outflows of Resources and Deferred Inflows of Resources The following table presents a summary of changes in the collective deferred outflows of resources and deferred inflows of resources for the year ended June 30, 2022: Deferred outflows of resources Changes in assumptions Differences between expected and actual experience Year of deferral 2014 2016 2021 2022 2015 Amortization period 8.5 years 7.6 years 7.7 years 7.3 years Beginning of year balance $ 40,388 87,879 11,254 Current Year Additions 84,191 Deductions 40,388 54,926 1,680 11,533 End of year balance 32,953 9,574 72,658 7.9 years 12,958 12,958 - Differences between projected and 2018 5 years actual investment earnings 2019 5 years 2020 5 years 2021 5 years 2022 5 years 26,946 (262,992) 843,506 (4,253,319) 7,808,535 26,946 (131,496) 281,169 (1,063,330) 1,561,707 (131,496) 562,337 (3,189,989) 6,246,828 Net difference between projected and actual investment earnings (1) (3,645,859) 7,808,535 674,996 3,487,680 Total deferred outflows of resources Deferred inflows of resources Changes in assumptions 2019 2020 $ (3,493,380) 6.8 years 8.1 years $ 25,379 2,333,850 7,892,726 796,481 6,679 382,599 3,602,865 18,700 1,951,251 Differences between expected and actual experience Total deferred inflows of resources 2014 8.5 years 2016 7.6 years 2017 7 years 2018 7.5 years 2019 6.8 years 2020 8.1 years 2021 7.7 years 2022 7.3 years 10,203 101,045 137,555 47,069 184,428 456,099 1,353,728 931,397 10,203 63,154 68,777 13,448 48,533 74,770 202,049 127,589 37,891 68,778 33,621 135,895 381,329 1,151,679 803,808 $ 4,649,356 931,397 997,801 4,582,952 (1) In accordance with paragraph 71b of GASB Statement No. 68, collective deferred outflows of resources and deferred inflows of resources arising from differences between projected and actual pension plan investment earnings in different measurement periods have been aggregated and included as a net collective deferred outflows of resources related to pensions. 16 MAGISTRATES RETIREMENT FUND OF GEORGIA (A Component Unit of the State of Georgia) Notes to Schedule of Employer and Nonemployer Allocations and Schedule of Pension Amounts by Employer and Nonemployer June 30, 2022 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30, 2023 $ 2024 2025 2026 2027 Thereafter Total $ (268,120) (62,909) (326,312) 787,913 (773,794) (336,865) (980,087) Changes in Proportion The amounts shown in the two preceding tables do not include employer- or nonemployer-specific deferred outflows of resources and deferred inflows of resources related to changes in proportion. Based on the allocation methodology discussed in Note 5, there were no changes in proportion for the year ended June 30, 2022. Note 7: Collective Pension Expense The components of collective pension expense for the year ended June 30, 2022, are shown in the following table: Service cost $ 1,424,202 Interest on the total pension liability and net cash flow 1,636,263 Projected earnings on plan investments (2,741,679) Current period effect of benefit changes 797,446 Current period difference between expected and actual experience (127,589) Current period effect of changes in assumptions 11,533 Current period difference between projected and actual investment earnings 1,561,707 Member contributions (193,007) Administrative Expenses 124,531 Current period recognition of prior years' deferred outflows of resources 418,067 Current period recognition of prior years' deferred inflows of resources (2,065,038) Collective pension expense $ 846,436 17