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CITY OF LAKE ELMO, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 60 NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued) General Employees Fund Contributions General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 7.50 percent for General Plan members. The City’s contributions to the General Employees Fund for the year ended December 31, 2024 were $164,366. The City’s contributions were equal to the required contributions as set by State Statute. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2024 were $123,614. The City’s contributions were equal to the required contributions as set by State Statute. Pension Costs General Employees Fund Pension Costs At December 31, 2024, the City reported a liability of $858,774 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 $22,206. City’s proportionate share of the net pension liability: $858,774 State of Minnesota’s proportionate share of the net pension liability associated with the City 22,206 Total $880,980 The net pension liability was measured as of June 30, 2024, 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 wa s based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA's participating employers. The City’s proportionate share was 0.0232 percent at the end of the measurement period and 0.0212 percent for the beginning of the period. For the year ended December 31, 2024, the City recognized pension expense of $72,275 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $595 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 . During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees Fund. The State of Minnesota is not included as a non-employer contributing entity in the General Employees Plan pension allocation schedules for the $170.1 million in direct state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $39,513 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on -behalf contributions to the General Employees Fund.