Laserfiche WebLink
CITY OF HUGO, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS (CONTINUED) <br />4. Other Information (Continued) <br />C. Pension Plans (Continued) <br />1. Public Employees Retirement Association (PERA) - Defined Benefit (Continued) <br />C. Pension Costs (Continued) <br />Other amounts reported as deferred outflows and deferred inflows of resources related to <br />pensions will be recognized in pension expense as follows: <br />Pension Expense <br />Year ending June 30: Amount <br />2017 $ 137,878 <br />2018 137,878 <br />2019 197,970 <br />2020 72,736 <br />D. Actuarial Assumptions <br />The total pension liability in the June 30, 2016 actuarial valuation was determined using the <br />following actuarial assumptions: <br />Inflation 2.50% per year <br />Active Member Payroll Growth 3.25% per year <br />Investment Rate of Return 7.50% <br />Salary increases were based on a service -related table. Mortality rates for active members, <br />retirees, survivors and disabilitants were based on RP 2014 tables for males or females, as <br />appropriate, with slight adjustments. Cost of living benefit increases for retirees are assumed <br />to be 1 % per year for all future years. <br />Actuarial assumptions used in the June 30, 2016 valuation were based on the results of <br />actuarial experience studies. The most recent four-year experience study in the General <br />Employees Plan was completed in 2015. <br />59 <br />