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CITY OF LAKE ELMO, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2023 59 NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued) Pension Costs General Employees Fund Pension Costs At December 31, 2023, the City reported a liability of $1,185,480 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the State’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $32,703. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2022 through June 30, 2023, relative to the total employer contributions received from all of PERA's participating employers. The City’s proportionate share was 0.0212 percent at the end of the measurement period and 0.0232 percent for the beginning of the period. City’s proportionate share of the net pension liability: $1,185,480 State of Minnesota’s proportionate share of the net pension liability associated with the City 32,703 Total $1,218,183 For the year ended December 31, 2023, the City recognized pension expense of negative $8,377 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $147 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2023, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $70,700 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual economic experience 39,814$ 7,781$ Changes in actuarial assumptions 183,941 324,930 Difference between projected and actual investment earnings 17,369 - Changes in proportionate share 64,057 125,720 Contributions paid to PERA subsequent to the measurement date 70,700 - Total Deferred Outflows/Inflows 375,881$ 458,431$