06-13-2022 City Council Packet - Laserfiche WebLink

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 covered 20 active firefighters and one vested terminated fire fighter whose pension benefits are deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter 353G. B. BENEFITS PROVIDED The SVF provides 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. 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% through 20 years at 100%. C. CONTRIBUTIONS The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota Statutes, and voluntary City contributions. The State of Minnesota contributed $137,872 in fire state aid to the plan for the year ended December 31, 2021. 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, 2021 were $0. The City's contributions were equal to the required contributions as set by state statute, if applicable. D. PENSION COSTS At December 31, 2021, the City reported a net pension asset of $533,340 for the SVF plan. The net pension asset was measured as of December 31, 2021. 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 department. The following table presents the changes in net pension liability during the year. Beginning balance December 31, 2020 Changes for the year: Service cost Interest on pension liability Actuarial experience (gains) / losses Projected investment earnings Changes in benefit level Contributions - employer Contributions - State of MN Asset (gain) / loss Benefit payouts PERA administrative fee Net changes Balance end of year December 31, 2021 Total Pension Liability (a) $254,832 Plan Fiduciary Net Position (b) $814,379 Net Pension Liability (Asset) (a-b) ($559,547) 67,890 - 67,890 19,363 - 19,363 59,354 - 59,354 - 48,864 (48,864) 100,057 100,057 - 137,872 (137,872) - 34,428 (34,428) - (707) 707 246,664 220,457 26,207 $501,496 $1,034,836 ($533,340) During 2021, the benefit level per year of service increased from $5,000 to $7,000.