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City of Little Canada, Minnesota <br />Notes to the Financial Statements <br />December 31, 2024 <br />Note 4: Defined Benefit Pension Plans - Statewide (Continued) <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />Differences Between Expected and Actual Economic Experience 71,392$ -$ <br />Changes in Actuarial Assumptions 3,357 279,898 <br />Net Difference Between Projected and Actual Investment Earnings - 222,543 <br />Changes in Proportion 61,652 - <br />Contributions Paid to PERA Subsequent to the Measurement Date 66,852 - <br />Total 203,253$ 502,441$ <br />(181,904)$ <br />(30,615) <br />(93,744) <br />(59,777) <br />E. Long-term Expected Return on Investment <br />Domestic Equity 33.5 %5.10 % <br />International Equity 16.5 5.30 <br />Fixed Income 25.0 0.75 <br />Private Markets 25.0 5.90 <br />Total 100.0 % <br />2026 <br />At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to <br />pensions from the following sources: <br />The $66,852 reported as deferred outflows of resources related to pensions resulting from the City's contributions <br />subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended <br />December 31, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to <br />pensions will be recognized in pension expense as follows: <br />2025 <br />The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness <br />on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate <br />ranges of expected future rates of return are developed for each major asset class. These ranges are combined to <br />produce an expected long-term rate of return by weighting the expected future rates of return by the target asset <br />allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset <br />class are summarized in the following table: <br />Long-term <br />2027 <br />2028 <br />Target Expected Return <br />Asset Class Allocation on Investment <br />84