05-22-2024 Council Packet - Laserfiche WebLink

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City of Little Canada, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) The following changes in actuarial assumptions and plan provisions occurred in 2023: General Employees Fund Changes in Actuarial Assumptions - The investment return assumption and single discount rate were changed from 6.5 percent to 7.0 percent. Changes in Plan Provisions - The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. G. Discount Rate H. Pension Liability Sensitivity 1 Percent 1 Percent Decrease (6.0%)Current (7.0%)Increase (8.0%) General Employees Fund 1,938,930$ 1,096,010$ 402,677$ I. Pension Plan Fiduciary Net Position - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The discount rate used to measure the total pension liability in 2023 was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees were 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 following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. - The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. - A one-time, non-compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 81