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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2020 At December 31, 2020, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $137,221 $138,598 Changes in actuarial assumptions 978,053 1,912,814 Net difference between projected and actual investment earnings 104,328 - Changes in proportion 183,105 579,067 Contributions paid to PERA subsequent to the measurement date 250,113 - Total $1,652,820 $2,630,479 The $250,113 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as outflows: Year Ended Pension December 31 Expense 2021 ($337,795) 2022 (953,543) 2023 (48,682) 2024 122,888 2025 (10,640) Thereafter - The net pension liability will be liquidated by the Employee Benefit Internal Service Fund. E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2020 actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF. 68