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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />At December 31, 2023, the City reported deferred outflows and inflows of resources related to pensions from the following <br />sources: <br /> <br />Deferred Outflows Deferred Inflows <br />of Resources of Resources <br />Difference between projected and <br /> actual investment earnings $114,606 $ - <br />Differences between expected and <br /> actual economic experience 35,612 46,762 <br />Total $150,218 $46,762 <br /> <br />Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as <br />follows: <br /> <br />Year Ended Pension <br />December 31, Expense <br />2024 $1,263 <br />2025 16,740 <br />2026 45,219 <br />2027 40,234 <br />2028 - <br />Thereafter - <br /> <br />E. ACTUARIAL ASSUMPTIONS <br /> <br />The total pension liability at December 31, 2022 was determined using the entry age normal actuarial cost method and the <br />following actuarial assumptions: <br /> <br /> Retirement eligibility at the later of age 50 or 20 years of service <br /> Investment rate of return of 6.0% <br /> Inflation rate of 3.0% <br /> <br />There were no changes in actuarial assumptions in 2022. <br /> <br /> <br />F. DISCOUNT RATE <br /> <br />The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows used to determine the <br />discount rate assumed that contributions to the Volunteer Firefighter Fund will be made as specified in statute. Based on that <br />assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make all <br />projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return <br />on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. <br /> <br /> <br />71 <br />78