Comprehensive Annual Financial Report 12/31/2015

Home Search

CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 6 PENSION PLANS (CONTINUED) A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED BENEFIT PLANS (CONTINUED) PENSION COSTS (CONTINUED) 2. PEPFF Pension Costs (Continued) For the year ended December 31, 2015, the City recognized pension expense of $487,542 for its proportionate share of the PEPFF's pension expense. The City also recognized $22,410 for the year ended December 31, 2015, as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. At December 31, 2015, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Investment Earnings Changes in Proportion and Differences Between District Contributions and Proportionate Share of Contributions Deferred Outflows of Resources Deferred Inflows of Resources $ 458,807 492,945 - City Contributions Subsequent to the Measurement Date 213,017 Total $ 705,962 $ 458,807 A total of $213,017 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30 Pension Expenses Amount 2016 $ 31,475 2017 31,475 2018 31,475 2019 31,475 2020 (91,762) Thereafter - 55