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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2022 <br /> <br /> <br /> <br /> <br />At December 31, 2022, 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 $623,754 $ - <br />Changes in actuarial assumptions 6,014,612 60,922 <br />Net difference between projected <br /> and actual investment earnings 136,118 - <br />Changes in proportion 3,004 250,467 <br />Contributions paid to PERA <br /> subsequent to the measurement date 269,448 - <br />Total $7,046,936 $311,389 <br /> The $269,448 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, 2023. Other amounts reported as deferred <br />outflows and inflows of resources related to pensions will be recognized in pension expense as <br />follows: <br /> <br />Year Ended Pension <br />December 31 Expense <br />2022 $1,088,341 <br />2023 1,279,502 <br />2024 1,148,913 <br />2025 2,103,011 <br />2026 846,332 <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, 2022 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 />Benefit increases after retirement are assumed to be 1.25% for the GERF. The PEPFF benefit increase <br />is fixed at 1.00% per year and that increase was used in the valuation. <br /> <br />70