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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2018 <br /> <br /> <br /> <br /> <br />At December 31, 2018, the City reported its proportionate share of the PEPFF’s deferred outflows of <br />resources and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred Outflows Deferred Inflows <br />of Resources of Resources <br />Differences between expected and <br /> actual economic experience $104,225 $607,881 <br />Changes in actuarial assumptions 3,140,665 3,806,731 <br />Difference between projected and <br /> actual investment earnings - 574,479 <br />Changes in proportion 213,915 694,801 <br />Contributions paid to PERA <br /> subsequent to the measurement date 210,707 - <br />Total $3,669,512 $5,683,892 <br /> <br /> $210,707 reported as deferred outflows of resources related to pensions resulting from City <br />contributions subsequent to the measurement date will be recognized as a reduction of the net pension <br />liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and <br />inflows of resources related to pensions will be recognized in pension expense as follows: <br /> <br />Pension <br />Year Ended Expense <br />December 31, Amount <br />2019 ($181,516) <br />2020 (286,044) <br />2021 (471,963) <br />2022 (1,140,239) <br />2023 (145,325) <br />Thereafter - <br /> <br />ACTUARIAL ASSUMPTIONS <br /> <br />The total pension liability in the June 30, 2018 actuarial valuation was determined using the following <br />actuarial assumptions: <br /> <br />GERF PEPFF <br />Inflation 2.50% per year 2.50% per year <br />Salary Growth 3.25% per year after 26 years of service 3.25% per year after 25 years of service <br />Investment Rate of Return 7.50%7.50% <br /> <br />The total pension liability for each of the defined benefit cost-sharing plans was determined by an <br />actuarial valuation as of June 30, 2018, using the entry age normal actuarial cost method. Inflation is <br />assumed to be 2.50% for the General Employees and Police and Fire Plans. Salary growth <br />assumptions in the General Employees Plan decrease in annual increments from 11.25% after one <br />year of service, to 3.25% after 26 years of service. In the Police and Fire Plan, salary growth <br />assumptions decrease from 12.25% after one year of service to 3.25% after 25 years of service. <br /> <br />70