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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 1. GERF Contributions Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2018; the City was required to contribute 7.50% for Coordinated Plan members. The City’s contributions to the GERF for the year ended December 31, 2018, were $175,748. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Legislation increased both employee and employer contribution rates in the Police and Fire Plan. Employee rates increased from 10.80% of pay to 11.30% and employer rates increase from 16.20% to 16.95% on January 1, 2019. On January 1, 2020 employee rates increase from 11.80% and employer rates increase to 17.70%. The City’s contributions to the PEPFF for the year ended December 31, 2018, were $419,242. The City’s contributions were equal to the required contributions as set by state statute. PENSION COSTS 1. GERF Pension Costs At December 31, 2018, the City reported a liability of $1,913,919 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2018. 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 $62,724. The net pension liability was measured as of June 30, 2018, 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 proportion 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, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2018, the City’s proportion was .0345% which was an increase of .0007% from its proportion measured as of June 30, 2017. Post-retirement benefit increases were changed from 1.0% per year with a provision to increase to 2.5% upon attainment of 90% funding ratio to 50% of the Social Security Cost of Living Adjustment, not less than 1.0% and not more than 1.5%, beginning January 1, 2019. For the year ended December 31, 2018, the City recognized pension expense of $164,657 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $14,627 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. At December 31, 2018, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 68