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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2017
<br />B. BENEFITS PROVIDED
<br />The SVF provides lump-sum retirement, death, and supplemental benefits to covered firefighters and
<br />survivors. Benefits are paid based on the number of years of service multiplied by a benefit level per
<br />year of service approved by the City of Lino Lakes. Members are eligible for a lump-sum retirement
<br />benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting
<br />schedule that increases from 5 years at 40% through 20 years at I 00%.
<br />C. CONTRIBUTIONS
<br />The SVF is funded by fire state aid, investment earnings and, ifnecessary, employer contributions as
<br />specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed
<br />$113,797 in fire state aid to the plan for the year ended December 31, 2017. Required employer
<br />contributions are calculated annually based on statutory provisions. The City's statutorily-required
<br />contributions to the SVF plan for the year ended December 31, 2017 were $0. The City's contributions
<br />were equal to the required contributions as set by state statute, if applicable. In addition, the City made
<br />voluntary contributions of$58,800 to the plan.
<br />CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2017
<br />D. PENSION COSTS
<br />At December 31, 2017, the City reported a net pension asset of$127,994 for the SVF plan. The net
<br />pension asset was measured as of December 31, 2017. The total pension liability used to calculate the
<br />net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula
<br />to specific census data certified by the fire department. The following table presents the changes in net
<br />pension liability during the year.
<br />Plan Net
<br />Total Fiduciary Pension
<br />Pension Net Liability
<br />Liability Position (Asset)
<br />.\!!L_ (b) (a-b)
<br />Beginning balance December 31, 2016 $55,240 $44,527 $10,713
<br />Changes for the year:
<br />Service cost 47,952 47,952
<br />Interest on pension liability 6,191 6,191
<br />Actuarial experience (gains)/ losses (11,672) (11,672)
<br />Projected investment earnings 2,672 (2,672)
<br />Contributions -employer 58,800 (58,800)
<br />Contributions -State of MN 113,797 (113,797)
<br />Asset (gain) / loss 6,481 (6,481)
<br />Benefit payouts
<br />PERA administrative fee (572) 572
<br />Net changes 42,471 181,178 (138,707)
<br />Balance end of year December 31, 2017 $97,711 $225,705 ($127,994)
<br />There were no benefit provision changes during the measurement period
<br />For the year ended December 31, 2017, the City recognized pension expense of$45,088.
<br />At December 31, 2017, the City reported deferred inflows of resources from the following sources:
<br />Difference between projected and
<br />actual investment earnings
<br />Differences between expected and
<br />actual economic experience
<br />Total
<br />Deferred Outflows
<br />of Resources
<br />$
<br />$0
<br />Deferred Inflows
<br />of Resources
<br />$5,264
<br />17,495
<br />$22,759 IV-32
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