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City of Little Canada, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide (Continued) C. Contributions General Employees Fund Contributions D. Pension Costs General Employees Fund Pension Costs City's Proportionate Share of the Net Pension Liability 779,937$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 20,168 Total 800,105$ Minnesota Statutes chapters 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the General Employees Fund for the years ending December 31, 2024, 2023 and 2022, were $134,101, $125,287 and $106,757, respectively. The City’s contributions were equal to the required contributions for each year as set by state statute. At December 31, 2024, the City reported a liability of $779,937 for its proportionate share of the General Employees Fund’s net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $20,168. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0211 percent at the end of the measurement period and 0.0196 percent for the beginning of the period. For the year ended December 31, 2024, the City recognized pension expense of $128,840 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $541 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees Fund. The State of Minnesota is not included as a non-employer contributing entity in the General Employees Plan pension allocation schedules for the $170.1 million in direct state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $35,884 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the General Employees Fund. 83