|
IV-32CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 2018, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July I, 2017 through June 30, 2018, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2018, the City's proportionate share was 0.0381 %, which was a decrease of0.0033% from its proportionate share measured as of June 30, 2017. Post-retirement benefit increases were changed from 1.0% per year with a provision to increase to 2.5% upon attainment of 900/o funding ratio to 500/o of the Social Secwity Cost of Living Adjustment, not less than 1.0% and not more than 1.5%, beginning January I, 2019. For the year ended December 31, 2018, the City recognized pension expense of $169,283 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $16,188 as pension expense {and grant revenue) for its proportionate share of the State of Minnesota's contribution of$16 million to the GERF. At December 31, 2018, the City reported its proportionate share of the GERF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $55,944 $58,978 Changes in actuarial assumptions 193,160 237,489 Difference between projected and actual investment earnings 225,376 Changes in proportion 128,974 222,223 Contributions paid to PERA subsequent to the measurement date 105,563 Total $483M!._ $744,066 $105,563 reported as deferred outflows ofresources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability during 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended December 31, 2019 2020 2021 2022 2023 Thereafter Pension Ex.eense $32,999 (118,211) (236,660) (44,116) CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 2. PEPFF Pension Costs At December 31, 2018, the City reported a liability of $2,585,866 for its proportionate share of the PEPFF's net pension liability. 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 City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July I, 2017 through June 30, 2018, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2018, the City's proportion was 0.2426%, which was a decrease of O.oI 44% from its proportion measured as of June 30, 2017. The City also recognized $21,834 for the year ended December 31, 2018 as revenue {and an offsetting reduction ofnet pension liability) for its proportionate share of the State of Minnesota's on-behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contnlmting $9 million to the PEPFF each year, starting in fiscal year 2014. Beginning in January I, 2019, the COLA will be fixed at I percent. Under funding measurements from 2017, the 2.5 percent COLA trigger was never expected to occur and was subsequently removed from law. For the year ended December 31, 2018, the City recognized pension expense of$261,970 for its proportionate share of the PEPFF's pension expense. At December 31, 2018, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience Changes in actuarial assumptions Difference between projected and actual investment earnings Changes in proportion Contributions paid to PERA subsequent to the measurement date Total Deferred Outflows of Resources $104,225 3,167,169 307,549 227,348 $3,806,291 Deferred Inflows of Resources $620,175 3,806,731 560,207 439,714 $5,426,827 A total of $227,348 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability during 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as outflows:
|