Laserfiche WebLink
CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2021 <br /> <br /> <br /> <br /> <br />At December 31, 2021, the City reported its proportionate share of the PEPFF’s deferred outflows <br />of 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 $350,633 $ - <br />Changes in actuarial assumptions 2,686,453 986,317 <br />Net difference between projected <br /> and actual investment earnings - 3,491,388 <br />Changes in proportion 81,407 397,042 <br />Contributions paid to PERA <br /> subsequent to the measurement date 253,037 - <br />Total $3,371,530 $4,874,747 <br /> The $253,037 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 <br />pension liability in the year ended December 31, 2021. Other amounts reported as deferred <br />outflows and inflows of resources related to pensions will be recognized in pension expense as <br />outflows: <br /> <br />Year Ended Pension <br />December 31 Expense <br />2022 ($1,316,020) <br />2023 (413,142) <br />2024 (240,803) <br />2025 (374,224) <br />2026 587,935 <br />Thereafter - <br /> <br />The net pension liability will be liquidated by the Employee Benefit Internal Service Fund. <br /> <br /> <br />E. ACTUARIAL ASSUMPTIONS <br /> <br />The total pension liability in the June 30, 2021 actuarial valuation was determined using an individual <br />entry-age normal actuarial cost method and the following actuarial assumptions: <br /> <br />Inflation 2.25% per year <br />Investment Rate of Return 6.50% <br /> <br />The long-term investment rate of return is based on a review of inflation and investment return <br />assumptions from a number of national investment consulting firms. The review provided a range of <br />investment return rates deemed to be reasonable by the actuary. An investment return of 6.50% was <br />deemed to be within that range of reasonableness for financial reporting purposes. <br /> <br />Salary growth assumptions in the GERF range in annual increments from 10.25% after one year of <br />service to 3.0% after 29 years of service and 6.0% per year thereafter. In the PEPFF, salary growth <br />assumptions range from 11.75% after one year of service to 3.0% after 24 years of service. <br />70