Laserfiche WebLink
CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2018 <br /> <br /> <br /> <br /> <br />2. PEPFF Pension Costs <br /> <br />At December 31, 2018, the City reported a liability of $2,585,866 for its proportionate share of the <br />PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2018 and the <br />total pension liability used to calculate the net pension liability was determined by an actuarial <br />valuation as of that date. The City’s proportion of the net pension liability was based on the City’s <br />contributions received by PERA during the measurement period for employer payroll paid dates <br />from July 1, 2017 through June 30, 2018, relative to the total employer contributions received from <br />all of PERA’s participating employers. At June 30, 2018, the City’s proportion was 0.2426%, <br />which was a decrease of 0.0144% from its proportion measured as of June 30, 2017. The City also <br />recognized $21,834 for the year ended December 31, 2018 as revenue (and an offsetting reduction <br />of net pension liability) for its proportionate share of the State of Minnesota’s on-behalf <br />contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin <br />contributing $9 million to the PEPFF each year, starting in fiscal year 2014. <br /> <br />Beginning in January 1, 2019, the COLA will be fixed at 1 percent. Under funding measurements <br />from 2017, the 2.5 percent COLA trigger was never expected to occur and was subsequently <br />removed from law. <br /> <br />For the year ended December 31, 2018, the City recognized pension expense of $261,970 for its <br />proportionate share of the PEPFF’s pension expense. <br /> <br />At December 31, 2018, the City reported its proportionate share of the PEPFF’s deferred outflows <br />of resources and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred Outflows Deferred Inflows <br />of Resources of Resources <br />Differences between expected and <br /> actual economic experience $104,225 $620,175 <br />Changes in actuarial assumptions 3,167,169 3,806,731 <br />Difference between projected and <br /> actual investment earnings - 560,207 <br />Changes in proportion 307,549 439,714 <br />Contributions paid to PERA <br /> subsequent to the measurement date 227,348 - <br />Total $3,806,291 $5,426,827 <br /> <br />A total of $227,348 reported as deferred outflows of resources related to pensions resulting from <br />City contributions subsequent to the measurement date will be recognized as a reduction of the net <br />pension liability during 2019. Other amounts reported as deferred outflows and inflows of <br />resources related to pensions will be recognized in pension expense as outflows: <br /> <br />70