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IV-34CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 L PENSION EXPENSE Pension expense recognized by the City for the year ended December 31, 2018 is as follows: GERF PEPFF Fire Pension Plan (Note 8) Total $185,471 261,970 57,541 $504,982 Note 8 DEFINED BENEFIT PENSION PLAN -FIRE DIVISION A, PLAN DESCRIPTION The Lino Lakes Public Safety Deparbnent -Fire Division participates in the Statewide Volunteer Firefighter Retirement Plan (SVF), an agent multiple-employer lump-sum defined benefit pension plan administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan covers volunteer firefighters of municipal fire deparbnents or independent nonprofit firefighting corporations that have elected to join the plan. At December 31, 2018 (measurement date), the plan covered 24 active firefighters and zero vested terminated fire fighters whose pension benefits are deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter 3530. B. BENEFITS PROVIDED The SVF provides lump-sum retirement, death, and supplemental benefits to covered firefighters and survivors. Benefits are paid based on the number of years of service multiplied by a benefit level per year of service approved by the City of Lino Lakes. Members are eligible for a lump-sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting schedule that increases from 5 years at 40"/o through 20 years at I 00%. C. CONTRIBUTIONS The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes, and vohmtary City contributions. The State of Minnesota contributed $118,144 in fire state aid to the plan for the year ended December 31, 2018. Required employer contributions are calculated annually based on statutory provisions. The City's statutorily-required contributions to the SVF plan for the year ended December 31, 2018 were $0. The City's contributions were equal to the required contributions as set by state statute, if applicable. In addition, the City made voluntary contributions of $64,869 to the plan. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 D. PENSION COSTS At December 31, 2018, the City reported a net pension asset of $164,913 for the SVF plan. The net pension asset was measured as of December 31, 2018. The total pension liability used to calculate the net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data certified by the fire deparbnent. The following table presents the changes in net pension liability during the year. Plan Not Total Fiducial}' Pension Pension Net Liability Liability Position (Asset) &_ ~ _J!:!!l Beginning balance December 31, 2017 $97,711 $225,705 ($127,994) Changes for the year: Service cost 48,182 48,182 Inrerest on pension liability 8,754 8,754 Actuarial experience (gains) I losses 69,760 69,760 Projected investment earnings 13,542 (13,542) Contributions -employer 64,869 (64,869) Contributions -State of MN 118,144 (118,144) Asset (gain) / loss (32,238) 32,238 Benefit payouts PERA administrative fee (7021 702 Not changes 126,696 163 615 (36,919l Balance end of year December 31, 2018 $224407 $389,320 ($164,913l There were no benefit provision changes during the measurement period. For the year ended December 31, 2018, the City recognized pension expense of $57,541. At December 31, 2018, the City reported deferred inflows of resources from the following sources: Difference between projected and actual investment earnings Differences between expected and actual economic experience Total Deferred Outflows of Resources $21,849 55,808 $77,657 Deferred Inflows of Resources $ 11,863 $11,863
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