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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />The State of Minnesota contributed $18 million to PEPFF during the plan fiscal year ended June 30, 2023. The <br />contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 <br />million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct <br />state aid was paid on October 1, 2022. Thereafter, by October 1 of each year, the state will pay $9 million to the PEPFF <br />until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue <br />until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is <br />90% funded, whichever occurs later. The State of Minnesota’s proportionate share of the net pension liability associated <br />with the City totaled $160,211. <br /> <br />City's proportionate share of the net pension liability $3,976,982 <br />State of Minnesota’s proportionate share of the net <br /> pension liability associated with the City 160,211 <br />Total $4,137,193 <br /> <br />The State of Minnesota is included as a non-employer contributing entity in the PEPFF Schedule of Employer <br />Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation <br />schedules) for the $9 million in direct state aid. PEPFF employers need to recognize their proportionate share of the <br />State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation accounting and <br />financial reporting requirements. For the year ended December 31, 2023, the City recognized pension expense of <br />$1,032,343 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized an additional <br />($9,649) as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 <br />million to the PEPFF. <br /> <br />The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension <br />allocation schedules for the $9 million in supplemental state aid. The City recognized $20,727 for the year ended <br />December 31, 2023 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State <br />of Minnesota’s on-behalf contributions to the Police and Fire Fund. <br /> <br />At December 31, 2023, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and <br />deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred Outflows Deferred Inflows <br />of Resources of Resources <br />Differences between expected and <br /> actual economic experience $1,095,382 $ - <br />Changes in actuarial assumptions 4,604,074 5,591,498 <br />Net collective between projected and <br /> actual investment earnings - 174,893 <br />Changes in proportion 102,425 211,203 <br />Contributions paid to PERA <br /> subsequent to the measurement date 263,096 - <br />Total $6,064,977 $5,977,594 <br /> <br />66 <br />73