Laserfiche WebLink
CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />At December 31, 2023, the City reported its proportionate share of the PEPFF’s deferred outflows of <br />resources and deferred inflows of resources related to pensions from the following sources: <br /> <br /> <br />Deferred <br />Outflows <br />Deferred <br />Inflows <br /> of Resources of Resources <br />Differences between expected and <br /> actual economic experience $1,087,774 $ - <br />Changes in actuarial assumptions 4,574,695 5,554,548 <br />Net difference between projected <br /> and actual investment earnings - 177,404 <br />Changes in proportion 12,736 129,133 <br />Contributions paid to PERA <br /> subsequent to the measurement date 269,671 - <br />Total $5,944,876 $5,861,085 <br /> The $269,671 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 pension <br />liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and <br />inflows of resources related to pensions will be recognized in pension expense as follows: <br /> <br />Year Ending Pension <br />December 31 Expense <br />2024 $139,763 <br />2025 16,414 <br />2026 938,268 <br />2027 (286,086) <br />2028 (994,239) <br />Thereafter 5 <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, 2023 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 7.00% <br /> <br />The long-term investment rate of return is based on a review of inflation and investment return assumptions <br />from a number of national investment consulting firms. The review provided a range of investment return <br />rates deemed to be reasonable by the actuary. An investment return of 7.00% was deemed to be within that <br />range of reasonableness for financial reporting purposes. <br /> <br />Benefit increases after retirement are assumed to be 1.25% for the GERF and 1.00% for the PEPFF. <br /> <br />69