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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />The $12,000 reported as deferred outflows of resources related to pensions resulting from City <br />contributions subsequent to the measurement date will be recognized as an increase to the net pension asset <br />in the year ending December 31, 2024. Other amounts reported as deferred outflows and inflows of <br />resources related to pensions will be recognized in pension expense as follows: <br /> <br />Year Ending Pension <br />December <br />31 Expense <br />2024 ($16,487) <br />2025 (6,994) <br />2026 19,405 <br />2027 42,515 <br />2028 (8,656) <br />Thereafter (6,250) <br /> <br /> <br />E. ACTUARIAL ASSUMPTIONS <br /> <br />The total pension liability, which was measured as of December 31, 2022 was determined using the entry <br />age normal actuarial 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 />There were no changes in actuarial assumptions during 2022 <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 used <br />to determine the discount rate assumed that contributions to the SVF plan will be made as specified in <br />statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position <br />was projected to be available to make all projected future benefit payments of current active and inactive <br />members. Therefore, the long-term expected rate of return on pension plan investments was applied to all <br />periods of projected benefit payments to determine the total pension 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 /> <br />Net pension asset $372,333 $397,881 $421,379 <br /> <br />74