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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />G. PENSION LIABILITY SENSITIVITY <br /> <br />The following presents the City’s proportionate share of the net pension liability, calculated using the discount rate disclosed <br />in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were <br />calculated using a discount rate one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current <br />discount rate: <br /> <br />1% Decrease in Current 1% Increase in <br />Discount Rate Discount Rate Discount Rate <br />Proportionate share of the <br /> GERF net pension liability $4,995,712 $2,823,903 $1,037,508 <br />Proportionate share of the <br /> PEPFF net pension liability $7,890,806 $3,976,982 $759,294 <br /> <br /> <br />H. PENSION PLAN FIDUCIARY NET POSITION <br /> <br />Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial <br />report that includes financial statements and required supplementary information. That report may be obtained at <br />www.mnpera.org. <br /> <br /> <br />I. PENSION EXPENSE <br /> <br />Pension expense recognized by the City for the year ended December 31, 2023 is as follows: <br /> <br />GERF $590,787 <br />PEPFF 1,022,694 <br />Fire Pension Plan (Note 8) 147,297 <br />Total $1,760,778 <br /> <br /> <br />Note 8 DEFINED BENEFIT PENSION PLAN – FIRE DIVISION <br /> <br />A. PLAN DESCRIPTION <br /> <br />The Lino Lakes Public Safety Department – Fire Division participates in the Statewide Volunteer Firefighter Retirement Plan <br />(accounted for in the Volunteer Firefighter Fund), an agent multiple-employer lump-sum defined benefit pension plan <br />administered by the Public Employees Retirement Association of Minnesota (PERA). The Volunteer Firefighter Plan covers <br />volunteer firefighters of municipal fire departments or independent nonprofit firefighting corporations that have elected to <br />join the plan. As of December 31, 2022 (measurement date), the plan covered 19 active firefighters and two vested <br />terminated fire fighters whose pension benefits are deferred. The plan is established and administered in accordance with <br />Minnesota Statutes, Chapter 353G. <br /> <br /> <br />B. BENEFITS PROVIDED <br /> <br />The Volunteer Firefighter Plan 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 approved by the City. Members are <br />eligible for a lump-sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro-rated <br />vesting schedule that increases from 5 years at 40% through 20 years at 100%. <br />69 <br />76