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 (Continued) General Employees Fund Pension Costs (Continued) $10,516 reported as deferred outflows of resources related to pensions resulting from the Organization's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending December 31, Amount 2019 $ 10,432 2020 (10,672) 2021 (27,010) 2022 (4,978) Actuarial Assumptions The total pension liability in the June 30, 2018 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% Per Year Active Member Payroll Growth 3.25% Per Year Investment Rate of Return 7.50% Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors, and disabilitants were based on RP-2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Benefit increases for retirees are assumed to be 1 % per year for all future years for the General Employees Plan through 2044 and then 2.5% thereafter. Actuarial assumptions used in the June 30, 2018 valuation were based on the results of actuarial experience studies. The most recent six -year experience study in the General Employees Plan was completed in 2015. The following changes in actuarial assumptions occurred in 2018: General Employees Fund • The mortality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year thereafter to 1.25% per year. (37)