VILLAGE OF GRAFTON NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE IV - OTHER INFORMATION (cont.) A. EMPLOYEES' RETIREMENT SYSTEM (cont.) Contributions. Required contributions are determined by an annual actuarial valuation in accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially determined contribution rate for General category employees and Executives and Elected Officials. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. During the reporting period, the WRS recognized $376,925 in contributions from the village. Contribution rates as of December 31, 2016 are: Employee Category Employee Employer General 6.6% 6.6% Executives & Elected Officials 6.6% 6.6% Protective with Social Security 6.6% 9.4% Protective without Social Security 6.6% 13.2% Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2016, the village reported a liability of $636,640 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2014 rolled forward to December 31, 2015. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The village’s proportion of the net pension liability was based on the village’s share of contributions to the pension plan relative to the contributions of all participating employers. At December 31, 2015, the village’s proportion was 0.03917829%, which was a decrease of 0.00046505% from its proportion measured as of December 31, 2014. For the year ended December 31, 2016, the village recognized pension expense of $763,883. 81