b'Capital Region Airport Commission NOTES TO FINANCIAL STATEMENTS June 30, 2025 and 2024 Note 8.PENSION PLAN (continued) ContributionsThe contribution requirement for active employees is governed by 51.1-145 of the Code of Virginia, as amended, but may be impacted as a result of funding options provided to political subdivisions by the Virginia General Assembly. Employees are required to contribute 5.0% of their compensation toward their retirement.The Commissions contractually required employer contribution rate for the years ended June 30, 2025 and 2024, was 10.90% and 10.90%, respectively, of covered employee compensation. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30, 2023. This rate, when combined with employee contributions, was expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.Contributions to the pension plan from the Commission were $1,393,251 and $1,000,005 for the years ended June 30, 2025 and June 30, 2024, respectively. The defined contributions component of the Hybrid plan includes member and employer mandatory and voluntary contributions. The Hybrid plan member must contribute a mandatory rate of 1% of their covered payroll. The employer must also contribute a mandatory rate of 1% of this covered payroll, whichtotaled$55,355 fortheyearendedJune30,2025.Hybridplanmembers mayalso elect to contribute an additional voluntary rate of up to 4% of their covered payroll; which would require the employer a mandatory additional contribution rate of up to 2.5%. This additional employer mandatory contribution totaled $35,488 for the year ended June 30, 2025. The total Hybrid plan participant covered payroll totaled $5,535,484 for the year ended June 30, 2025. Net Pension Liability (Asset) The net pension liability (asset) (NPL(A)) is calculated separately for each employer and represents that particular employers total pension liability determined in accordance with GASB Statement No. 68, less that employers fiduciary net position.The Commissions net pension liability was measured as of June 30, 2024 and June 30, 2023.The total pension liability used to calculate the net pension liability was determined by actuarial valuations performed as of June 30, 2023 and June 30, 2022, rolled forward to the measurement date of June 30, 2024 and June 30, 2023. Actuarial AssumptionsGeneral EmployeesThe total pension liability for General Employees in the Commissions Retirement Plan was based on actuarial valuations as of June 30, 2023 and June 30, 2022, using the Entry Age Normal actuarial cost method and the following assumptions, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2024 and June 30, 2023. Inflation 2.50%Salary increases, including inflation 3.50%5.35%Investment rate of return6.75%, net of pension plan investmentexpenses, including inflation42'