VLAWMO Annual Financial Report 2018

Home Search

VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2018 NOTE 4 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED) Pension Costs General Employees Fund Pension Costs At December 31, 2018, the Organization reported a liability of $238,546 for its proportionate share of the General Employees Fund's net pension liability. The Organization's net pension liability reflected a reduction due to the state of Minnesota's contribution of $16 million to the fund in 2018. The state of Minnesota is considered a nonemployer 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 Organization totaled $7,929. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Organization proportion of the net pension liability was based on the Organization contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2018, the Organization's proportion was 0.0045% which was an increase of 0.0002% as its proportion measured as of June 30, 2017. For the year ended December 31, 2018, the Organization recognized pension expense of $31,748 for its proportionate share of GERF's pension expense. In addition, the Organization recognized an additional $1,839 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. At December 31, 2018, the Organization reported its proportionate share of General Employees Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences Between Expected and Actual Experience $ 6,314 $ 6,957 Changes in Actuarial Assumption 22,787 26,803 Net Difference Between Projected and Actual Earnings on Plan Investments 24,376 Changes in Proportion 19,769 22,962 Contributions to GERF Subsequent to the Measurement Date 10,516 Total $ 59,386 $ 81,098 (36)