4.1 ERMUSR 04-10-2018 - Laserfiche WebLink

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Elk River Municipal Utilities Elk River, Minnesota Notes to the Financial Statements December 31, 2017 Note 3: Defined Benefit Pension Plans - Statewide (Continued) D. Pension Costs GERF Pension Costs At December 31, 2017, the Utilities reported a liability of$3,447,324 for its proportionate share of the GERF's net pension liability. The Utilities net pension liability reflected a reduction due to the State of Minnesota's contribution of$6 million to the fund in 2017. The State of Minnesota is considered a non-employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the Utilities totaled $43,337. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Utilities proportion of the net pension liability was based on the Utilities contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2016 through June 30, 2017 relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2017, the Utilities proportionate share was 0.054 percent which was an increase of 0.0032 percent from its proportion measured as of June 30, 2016. For the year ended December 31, 2017, the Utilities recognized pension expense of$222,443 for its proportionate share of GERF's pension expense. In addition, the Utilities recognized an additional $3,240 as pension expense (and grant revenue)for its proportionate share of the State of Minnesota's contribution of$6 million to the GERF. At December 31, 2017, the Utilities reported its proportionate share of GERF's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between Expected and Actual Experience $ 114,606 $ 229,078 Changes in Actuarial Assumptions 579,000 345,595 Net Difference between Projected and Actual Earnings on Plan Investments - 148,182 Changes in Proportion 229,352 54,106 Contributions to GERF Subsequent to the Measurement Date 128,754 - Total $ 1,051,712 $ 776,961 Deferred outflows of resources totaling $128,754 related to pensions resulting from the Utility's contributions to GERF subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2018. Other amounts reported as deferred outflows and inflows of resources related to GERF pensions will be recognized in pension expense as follows: 2018 $ 28,974 2019 282,198 2020 (18,836) 2021 (146,339) 42 1DA