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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2021 <br /> <br /> <br /> <br /> <br />covered 20 active firefighters and one vested terminated fire fighter whose pension benefits are <br />deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter <br />353G. <br /> <br />B. BENEFITS PROVIDED <br /> <br />The SVF provides retirement, death, and supplemental benefits to covered firefighters and survivors. <br />Benefits are paid based on the number of years of service multiplied by a benefit level per year of <br />service approved by the City. Members are eligible for a lump-sum retirement benefit at 50 years of age <br />with five years of service. Plan provisions include a pro-rated vesting schedule that increases from 5 <br />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 />$137,872 in fire state aid to the plan for the year ended December 31, 2021. 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, 2021 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, 2021, the City reported a net pension asset of $533,340 for the SVF plan. The net <br />pension asset was measured as of December 31, 2021. 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 />Plan Net <br />Total Fiduciary Pension <br />Pension Net Liability <br />Liability Position (Asset) <br />(a)(b)(a-b) <br />Beginning balance December 31, 2020 $254,832 $814,379 ($559,547) <br />Changes for the year: <br />Service cost 67,890 - 67,890 <br />Interest on pension liability 19,363 - 19,363 <br />Actuarial experience (gains) / losses 59,354 - 59,354 <br />Projected investment earnings - 48,864 (48,864) <br />Changes in benefit level 100,057 100,057 <br />Contributions - employer - - - <br />Contributions - State of MN - 137,872 (137,872) <br />Asset (gain) / loss - 34,428 (34,428) <br />Benefit payouts - - - <br />PERA administrative fee - (707)707 <br />Net changes 246,664 220,457 26,207 <br />Balance end of year December 31, 2021 $501,496 $1,034,836 ($533,340) <br /> During 2021, the benefit level per year of service increased from $5,000 to $7,000. <br />69