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CITY OF LAKE ELMO, MINNESOTA <br />NOTES TO THE BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2024 <br /> <br /> <br />67 <br />NOTE 4 DEFINED BENEFIT PENSION PLAN – FIREFIGHTERS RELIEF ASSOCIATION (Continued) <br /> <br />Amounts reported as deferred outflows and inflows of resources related to the pension will be recognized in pension expense <br />as follows: <br /> <br />Year ended <br />December 31, Pension Expense <br />2025 (2,109)$ <br />2026 9,793$ <br />2027 22,692$ <br />2028 (17,603)$ <br />2029 (17,449)$ <br />2030 (17,448)$ <br />Actuarial Assumptions <br /> <br />The total pension asset measured at December 31, 2023 was determined using the entry age normal actuarial cost method and <br />the following actuarial assumptions: <br /> <br /> Assumptions Rates <br /> Investment Rate of Return (Discount) 5.75% <br /> Expected Long-Term Rate of Return 5.75% <br /> Salary Increases <br />Interest on Deferred Amounts <br /> 2.50% <br />0.00% <br /> <br />The following changes in actuarial assumptions and plan provisions occurred in 2024: <br /> <br />Changes in Plan Provisions: <br />• There were no changes to plan provisions since the prior valuation. <br /> <br />Changes in Actuarial Assumptions: <br />• There were no changes to actuarial assumptions since the prior valuation. <br /> <br />Pension Liability Sensitivity <br /> <br />The following presents the City’s net pension asset for the Fire fighters Relief Association’s plan, calculated using the discount <br />rate disclosed in the preceding paragraph, as well as what the City’s net pension asset would be if it were calculated using a <br />discount rate one percent lower or one percent higher than the current discount rate: <br /> <br />1% Decrease in 1% Increase in <br />Discount Rate (4.75%)Discount Rate (5.75%)Discount Rate (6.75%) <br />Net Pension Asset (626,641)$ (656,675)$ (683,882)$ <br />