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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2019 <br /> <br /> <br /> <br /> <br /> <br />For the year ended December 31, 2019, the City recognized pension expense of $258,058 for its <br />proportionate share of the PEPFF’s pension expense. <br /> <br />At December 31, 2019, 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 $110,458 $382,930 <br />Changes in actuarial assumptions 2,117,336 2,923,327 <br />Net difference between projected <br /> and actual investment earnings - 549,414 <br />Changes in proportion 141,474 522,979 <br />Contributions paid to PERA <br /> subsequent to the measurement date 224,346 - <br />Total $2,593,614 $4,378,650 <br /> <br /> $224,346 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, 2020. Other amounts reported as deferred outflows and <br />inflows of resources related to pensions will be recognized in pension expense as follows: <br />Year Ended Pension <br />December 31 Expense <br />2020 ($276,665) <br />2021 (464,825) <br />2022 (1,140,846) <br />2023 (128,224) <br />2024 1,178 <br />Thereafter - <br /> <br />ACTUARIAL ASSUMPTIONS <br /> <br />The total pension liability in the June 30, 2019 actuarial valuation was determined using an individual <br />entry-age normal actuarial cost method and the following actuarial assumptions: <br /> <br />Inflation 2.50% per year <br />Active Member Payroll Growth 3.25% per year <br />Investment Rate of Return 7.50% <br /> <br />Salary increases were based on a service-related table. Mortality rates for active members, retirees, <br />survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as <br />appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after <br />retirement for retirees are assumed to be 1.25% per year for the General Employees Plan and 1.0% per <br />year for the Police and Fire Plan. <br /> <br />69