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CITY OF LITTLE CANADA, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2019 <br /> <br /> <br /> <br /> <br /> <br />NOTE 7 DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) <br />C. Contributions <br />Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. <br />Contribution rates can only be modified by the state legislature. <br /> <br />1. General Employees Fund Contributions <br />Coordinated Plan members were required to contribute 6.50 percent of their annual covered <br />salary in fiscal year 2019 and the City was required to contribute 7.50 percent for Coordinated <br />Plan members. The City’s contributions to the General Employees Fund for the year ended <br />December 31, 2019, were $85,748. The City’s contributions were equal to the required <br />contributions as set by state statute. <br />D. Pension Costs <br />1. General Employees Fund Pension Costs <br />At December 31, 2019, the City reported a liability of $873,546 for its proportionate share of <br />the General Employees Fund’s net pension liability. The City’s net pension liability reflected <br />a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2019. The <br />State of Minnesota is considered a non-employer contributing entity and the state’s contribution <br />meets the definition of a special funding situation. The State of Minnesota’s proportionate share <br />of the net pension liability associated with the City totaled $27,165. The net pension liability <br />was measured as of June 30, 2019, and the total pension liability used to calculate the net <br />pension liability was determined by an actuarial valuation as of that date. The City’s <br />proportionate share of the net pension liability was based on the City’s contributions received <br />by PERA during the measurement period for employer payroll paid dates from July 1, 2018 <br />through June 30, 2019, relative to the total employer contributions received from all of PERA’s <br />participating employers. At June 30, 2019, the City’s proportionate share was .0158% percent <br />which was a decrease of .0014% percent from its proportionate share measured as of June 30, <br />2018. <br /> <br />City’s proportionate share of the net pension liability $873,546 <br /> <br />State of Minnesota’s proportionate share of the net pension <br /> liability associated with the City $27,165 <br /> Total $900,711 <br /> <br /> <br />67