2022 ACFR - Laserfiche WebLink

Home Browse Search

CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended Pension December 31 Expense 2023 ($16,487) 2024 (6,994) 2025 19,405 2026 42,515 2027 (8,656) Thereafter (6,250) E. ACTUARIAL ASSUMPTIONS The total pension liability at December 31, 2022, was determined using the entry age normal actuarial cost method and the following actuarial assumptions:  Retirement eligibility at the later of age 50 or 20 years of service  Investment rate of return of 6.0%  Inflation rate of 3.0% F. DISCOUNT RATE The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows used to determine the discount rate assumed that contributions to the SVF plan will be made as specified in statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. PENSION LIABILITY SENSITIVITY The following presents the City’s net pension asset for the SVF plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net pension asset would be if it were calculated using a discount rate 1% lower or 1% higher than the current discount rate: Current 1% Decrease Discount Rate 1% Increase (5.0%) (6.0%) (7.0%) Net pension liability (asset) ($372,333) ($397,881) ($421,379) 75