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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 I. PENSION EXPENSE Pension expense recognized by the City for the year ended December 31, 2023 is as follows: GERF $297,637 PEPFF 928,412 Fire Relief 72,289 Total $1,298,338 Note 8 DEFINED BENEFIT PENSION PLAN – FIRE DEPARMENT A. PLAN DESCRIPTION The City’s Fire Department participates in the Statewide Volunteer Firefighter Retirement Plan (SVF), an agent multiple-employer lump-sum defined benefit pension plan administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting corporations that have elected to join the plan. As of December 31, 2022 (measurement date), the plan covered 23 active firefighters and 10 vested terminated firefighters whose pension benefits are deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter 353G. B. BENEFITS PROVIDED The SVF provides lump-sum retirement, death, and supplemental benefits to covered firefighters and survivors. Benefits are paid based on the number of years of service multiplied by a benefit level approved by the City. Members are eligible for a lump-sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting schedule that increases from 5 years at 40 percent through 20 years at 100 percent. C. CONTRIBUTIONS The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed $72,289 in fire state aid to the plan for the year ended December 31, 2023. Required employer contributions are calculated annually based on statutory provisions. The City was not statutorily required to make any contributions to the SVF plan for the year ended December 31, 2023. The City’s contributions were equal to the required contributions as set by state statute, if applicable. In addition, the City made voluntary contributions of $12,000 to the plan. D. PENSION COSTS At December 31, 2023, the City reported a net pension asset of $397,881 for the SVF plan. The total pension liability used to calculate the net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data certified by the fire department. The net pension asset was measured as of December 31, 2022. Previously, the City’s fiscal year-end and the measurement date were the same. However current year SVF plan information from PERA is not available. 72