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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2021 <br /> <br /> <br /> <br /> <br />Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized <br />in pension expense as follows: <br /> <br />Year ended Pension <br />December 31 Expense <br />2022 ($45,197) <br />2023 (67,501) <br />2024 (58,008) <br />2025 (31,609) <br />2026 (8,498) <br />Thereafter (14,906) <br /> <br /> <br />E. ACTUARIAL ASSUMPTIONS <br /> <br />The total pension liability at December 31, 2021, was determined using the entry age normal actuarial <br />cost method and the following actuarial assumptions: <br /> <br /> Retirement eligibility at the later of age 50 or 20 years of service <br /> Investment rate of return of 6.0% <br /> Inflation rate of 3.0% <br /> <br />The expected investment rate of return for 2021 is 6.0%, a .75% increase from 2020. The inflation rate <br />assumption is 3.0% for 2021, a .50% increase from 2020. <br /> <br /> <br />F. DISCOUNT RATE <br /> <br />The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows <br />used to determine the discount rate assumed that contributions to the SVF plan will be made as <br />specified in statute. Based on that assumption and considering the funding ratio of the plan, the <br />fiduciary net position was projected to be available to make all projected future benefit payments of <br />current active and inactive members. Therefore, the long-term expected rate of return on pension plan <br />investments was applied to all periods of projected benefit payments to determine the total pension <br />liability. <br /> <br /> <br />G. PENSION LIABILITY SENSITIVITY <br /> <br />The following presents the City’s net pension asset for the SVF plan, calculated using the discount rate <br />disclosed in the preceding paragraph, as well as what the City’s net pension asset would be if it were <br />calculated using a discount rate 1% lower or 1% higher than the current discount rate: <br /> <br />Current <br />1% Decrease Discount Rate 1% Increase <br />(5.0%)(6.0%)(7.0%) <br />Net pension liability (asset) ($560,562) ($586,421) ($610,148) <br />75