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Elk River MunicipalUtilities <br />Elk River, Minnesota <br />Notes to the Financial Statements <br />December 31, 2019 <br />Note3:Defined Benefit Pension Plans - Statewide (Continued) <br />The $141,730reported as deferred outflows of resources related to pensions resulting from the Utilities’contributions <br />subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended <br />December 31, 2020.Other amounts reported as deferred outflows and inflows of resources related to pensions will be <br />recognized in pension expense as follows: <br />2020$(139,977) <br />2021(272,612) <br />2022(57,555) <br />20234,633 <br />E.Actuarial Assumptions <br />The total pension liability in the June 30, 2019actuarial valuation was determined usingan individual entry-age normal <br />actuarial cost method andthe following actuarial assumptions: <br />Inflation2.50% per year <br />Active Member Payroll Growth3.25% per year <br />Investment Rate of Return7.50% <br />Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and <br />disabilitants were based on RP-2014tablesfor males or females, as appropriate, with slight adjustments to fit PERA’s <br />experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per yearfor <br />General Employees Plan. <br />Actuarial assumptions usedin the June 30, 2019valuation were based on the results of actuarial experience studies. The <br />most recent four-year experience study in theGeneral Employees Plan was completed in 2019. Economic assumptions <br />were updated in 2018 based on a review of inflation and investment return assumptions. <br />The following changes in actuarial assumptions and plan provisions occurred in 2019: <br />General Employees Fund <br />Changes in Actuarial Assumptions <br />The mortality projection scale was changed from MP-2017 to MP-2018. <br />Changes in Plan Provisions <br />The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 <br />million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million <br />due per year through 2031. <br />43 <br />133 <br />