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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2022 <br /> <br /> <br /> <br /> <br />after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal <br />retirement. <br /> <br />2. PEPFF Benefits <br /> <br />Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014 vest on a <br />prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for <br />PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50% after ten years up <br />to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for <br />each year of service. For PEPFF members who were first hired prior to July 1, 1989, a full annuity <br />is available when age plus years of service equal at least 90. <br /> <br />Benefit increases are provided to benefit recipients each January. The postretirement increase is <br />fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of <br />the June 30 before the effective date of the increase will receive the full increase. For recipients <br />receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 <br />before the effective date of the increase will receive a reduced prorated increase. <br /> <br /> <br />C. CONTRIBUTIONS <br /> <br />Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution <br />rates can only be modified by the state legislature. <br /> <br />1. GERF Contributions <br /> <br />Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal <br />year 2022 and the City was required to contribute 7.5% for Coordinated Plan members. The City’s <br />contributions to the GERF for the year ended December 31, 2022 were $272,865. The City’s <br />contributions were equal to the required contributions as set by state statute. <br /> <br />2. PEPFF Contributions <br /> <br />Police and Fire Plan members were required to contribute 11.80% of their annual covered salary in <br />fiscal year 2022 and the City was required to contribute 17.70% for Police and Fire Plan members. <br />The City’s contributions to the PEPFF for the year ended December 31, 2022 were $524,594. The <br />City’s contributions were equal to the required contributions as set by state statute. <br /> <br /> <br />D. PENSION COSTS <br /> <br />1. GERF Pension Costs <br /> <br />At December 31, 2022, the City reported a liability of $3,389,774 for its proportionate share of <br />GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State <br />of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer <br />contributing entity and the state’s contribution meets the definition of a special funding situation. <br />The State of Minnesota’s proportionate share of the net pension liability associated with the City <br />totaled $99,480. <br /> <br />66