Laserfiche WebLink
CITY OF HUGO, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS (CONTINUED) <br />4. Other Information (Continued) <br />C. Pension Plans (Continued) <br />Public Employees Retirement Association (PERA) - Defined Benefit (Continued) <br />C. Pension Costs (Continued) <br />$57,006 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, 2016. Other amounts reported as deferred <br />outflows and inflows of resources related to pensions will be recognized in pension expense <br />as follows: <br />Pension Expense <br />Year ending June 30: Amount <br />2016 $ (30,042) <br />2017 (30,042) <br />2018 (30,044) <br />2019 30,049 <br />D. Actuarial Assumptions <br />The total pension liability in the June 30, 2015 actuarial valuation was determined using the <br />following actuarial assumptions: <br />Inflation 2.75% per year <br />Active Member Payroll Growth 3.50% per year <br />Investment Rate of Return 7.90% <br />Salary increases were based on a service -related table. Mortality rates for active members, <br />retirees, survivors and disabilitants were based on RP -2000 tables for males or females, as <br />appropriate, with slight adjustments. Benefit increases for retirees are assumed to be 1% <br />effective every January 1 st through 2026 and 2.5% thereafter. <br />Actuarial assumptions used in the June 30, 2015 valuation were based on the results of <br />actuarial experience studies. The experience study in the GERF was for the period from July <br />1, 2004 through June 30, 2008, with an update of economic assumptions in 2014. There were <br />no changes in actuarial assumptions in 2015. <br />