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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2020 <br /> <br /> <br /> <br /> <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 100%. <br /> <br /> <br />C. CONTRIBUTIONS <br /> <br />The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as <br />specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed <br />$130,846 in fire state aid to the plan for the year ended December 31, 2020. 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, 2020 were $0. The City’s contributions <br />were equal to the required contributions as set by state statute, if applicable. <br /> <br /> <br />D. PENSION COSTS <br /> <br />At December 31, 2020, the City reported a net pension asset of $559,547 for the SVF plan. The net <br />pension asset was measured as of December 31, 2020. 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 /> <br />Plan Net <br />Total Fiduciary Pension <br />Pension Net Liability <br />Liability Position (Asset) <br />(a)(b)(a-b) <br />Beginning balance December 31, 2019 $270,650 $588,319 ($317,669) <br />Changes for the year: <br />Service cost 46,865 - 46,865 <br />Interest on pension liability 19,051 - 19,051 <br />Actuarial experience (gains) / losses (81,734) - (81 ,734) <br />Projected investment earnings - 35,299 (35,299) <br />Contributions - employer - - - <br />Contributions - State of MN - 130,846 (130,846) <br />Asset (gain) / loss - 60,661 (60,661) <br />Benefit payouts - - - <br />PERA administrative fee - (746)746 <br />Net changes (15,818) 226,060 (241,878) <br />Balance end of year December 31, 2020 $254,832 $814,379 ($559,547) <br /> There were no benefit provision changes during the measurement period. <br /> <br />For the year ended December 31, 2020, the City recognized pension expense of $2,592. <br /> <br />70