Laserfiche WebLink
CITY OF ELK RIVER, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMENTS <br />DECEMBER 31, 2015 <br />Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED <br />At December 31, 2015, the City reported its proportionate share of PEPFF's deferred outflows of resources and deferred inflows <br />of resources, and its contributions subsequent to the measurement date, from the following sources: <br />Differences between expected and <br />actual experience <br />Changes in actuarial assumptions <br />Net difference between projected and <br />actual earnings on plan investments <br />Changes in proportion <br />Contributions to PEPFF subsequent <br />to the measurement date <br />Total <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />3,614 $ 560,150 <br />656,588 - <br />613,248 <br />55,896 <br />267,388 <br />$ 983,486 $ 1,173,398 <br />Deferred outflows of resources totaling $267,388 related to pensions resulting from the City's contributions to PEPFF subsequent <br />to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other <br />amounts reported as deferred outflows and inflows of resources related to GERF pensions will be recognized in pension expense <br />as follows: <br />2016 $ 190,370 <br />2017 190,370 <br />2018 190,370 <br />2019 (214,657) <br />2020 100,847 <br />E. Actuarial assumptions <br />The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial assumptions: <br />Inflation <br />Active member payroll growth <br />Investment rate of return <br />2.75% per year <br />3.50% per year <br />7.90% <br />Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors and disabilitants <br />were based on RP -2000 tables for males or females, as appropriate, with slight adjustments. Cost of living benefit increases for <br />retirees are assumed to be: 1 percent effective every January I't until 2034, then 2.5 percent for GERF and PEPFF. <br />Actuarial assumptions used in the June 30, 2015 valuation were based on the results of actuarial experience studies. The <br />experience study in the GERF was for the period July 1, 2004 through June 30, 2008, with an update of economic assumptions in <br />2014. The experience study for PEPFF was for the period July 1, 2004, through June 30, 2009. Experience studies have not been <br />prepared for PERA's other plans, but assumptions are reviewed annually. <br />There were no changes in actuarial assumptions in 2015. <br />-77- <br />