Laserfiche WebLink
CITY OF ELK RIVER, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMENTS <br />DECEMBER 31, 2017 <br />60 <br />NOTE 9: DEFINED BENEFIT PENSION PLANS – STATE-WIDE - CONTINUED <br />D.Pension Costs (Continued) <br />1. GERF Pension Costs <br />At December 31, 2017, the HRA reported its proportionate share of the GERF’s deferred outflows of resources and <br />deferred inflows of resources related to pensions from the following sources: <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />Differences between expected and <br />actual experience 3,101$ 6,106$ <br />Changes in actuarial assumptions 15,640 9,405 <br />Net difference between projected and <br />actual earnings on plan investments - 4,048 <br />Changes in proportion 4,354 2,841 <br />Contributions to GERF subsequent <br />to the measurement date 3,576 - <br />Total 26,671$ 22,400$ <br />A total of $3,576 reported as deferred outflows of resources related to pensions resulting from HRA contributions <br />subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended <br />December 31, 2018. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions <br />will be recognized in pension expense as follows: <br />Pension Expense <br />Year Ending December 31,Amount <br />2018 (1,209)$ <br />2019 6,502 <br />2020 (616) <br />2021 (3,982) <br />2.PEPFF Pension Costs <br />At December 31, 2017, the City reported a liability of $4,239,374 for its proportionate share of the PEPFF’s net pension <br />liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the <br />net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension <br />liability was based on the City’s contributions received by PERA during the measurement period for employer payroll <br />paid dates from July 1, 2016 through June 30, 2017 relative to the total employer contributions received from all of <br />PERA’s participating employers. At June 30, 2017, the City’s proportionate share was .3140%, an increase of .0080% <br />from its proportion measured as of June 30, 2016. The City also recognized $28,260 for the year ended December 31, <br />2017 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s <br />on-behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing <br />$9 million to the PEPFF each year, starting in fiscal year 2014.