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 />E. Discount Rate <br />The discount rate used to measure the total pension liability in 2016 was 7.50%, a reduction <br />from the 7.9% used in 2015. The projection of cash flows used to determine the discount rate <br />assumed that contributions from plan members and employers will be made at rates set in <br />Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General <br />Employees Fund was projected to be available to make all projected future benefit payments <br />of current plan members. Therefore, the long-term expected rate of return on pension plan <br />investments was applied to all periods of projected benefit payments to determine the total <br />pension liability. <br />F. Pension Liability Sensitivity <br />The following presents the City's proportionate share of the net pension liability for all plans it <br />participates in, calculated using the discount rate disclosed in the preceding paragraph, as <br />well as what the City's proportionate share of the net pension liability would be if it were <br />calculated using a discount rate one percentage point lower or one percentage point higher <br />than the current discount rate: <br />General Employees Fund <br />1% Higher 6.50% $ 2,859,961 <br />Current Discount Rate 7.50% 2,013,637 <br />1 % Lower 8.50% 1,316,496 <br />G. Pension Plan Fiduciary Net Position <br />Detailed information about the pension plan's fiduciary net position is available in a separately - <br />issued PERA financial report that includes financial statements and required supplementary <br />information. That report may be obtained on the Internet at www.mnpera.org. <br />61 <br />