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CITY OF ELK RIVER, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMENTS <br />DECEMBER 31, 2018 <br />NOTE 9: DEFINED BENEFIT PENSION PLANS — STATE-WIDE - CONTINUED <br />D. Pension Costs (Continued) <br />1. GERF Pension Costs <br />At December 31, 2018, 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 />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 CERF subsequent <br />to the measurement date <br />Total <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />1,372 $ 1,512 <br />4,952 5,824 <br />- 5,297 <br />1,480 2,953 <br />2,436 <br />$ 10,240 $ 15,586 <br />A total of $2,436 reported as deferred outflows of resources related to pensions resulting from HRA contributions <br />subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended <br />December 31, 2019. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions <br />will be recognized in pension expense as follows: <br />Pension Expense <br />Year Ending December 31, Amount <br />2019 <br />$ 1,230 <br />2020 <br />(2,894) <br />2021 <br />(5,036) <br />2022 <br />(1,082) <br />2. PEPFF Pension Costs <br />At December 31, 2018, the City reported a liability of $3,245,656 for its proportionate share of the PEPFF's net pension <br />liability. The net pension liability was measured as of June 30, 2018, 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, 2017 through June 30, 2018 relative to the total employer contributions received from all of <br />PERA's participating employers. At June 30, 2018, the City's proportionate share was .3045%, an increase of .0095% <br />from its proportion measured as of June 30, 2017. The City also recognized $27,405 for the year ended December 31, <br />2018 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. <br />60 <br />