6.3. SR 06-15-2020 - Laserfiche WebLink

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CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 9 DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) C. Contributions (Continued) 2. PEPFF Contributions Police and Fire member's contribution rates increased from 10.8% of pay to 11.3% and employer rates increased from 16.2% to 16.95% on January 1, 2019. The City's contributions to the Police and Fire Fund for the year ended December 31, 2019, were $631,494. The City's contributions were equal to the required contributions as set by state statute. D. Pension Costs 1. GERF Pension Costs At December 31, 2019, the City and HRA reported liabilities of $7,977,792 and $55,520, respectively, for their proportionate shares of the GERF's net pension liability. The City and HRA net pension liabilities reflected a reduction due to the state of Minnesota's contribution of $16 million to the fund during PERA's fiscal year ending June 30, 2019. The state of Minnesota is considered a nonemployer 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 City and HRA totaled $247,930 and $1,725, respectively. The net pension liability was measured as of June 30, 2019 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City and HRA proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018 through June 30, 2019 relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019 the City and HRA's combined proportion share was 0.1453%, which was the same as its combined proportion measured as of June 30, 2018. Description City's Proportionate Share of the GERF Net Pension Liability HRA's Proportionate Share of the GERF Net Pension Liability State's Proportionate Share of the GERF Net Pension Liability Associated with the City and HRA Total Amount $ 7,977,792 55,520 249,655 $ 8,282,967 For the year ended December 31, 2019, the City and HRA recognized pension expense of $997,895 and $6,381, respectively, for their proportionate shares of the GERF's pension expense. In addition, the City and HRA recognized an additional $18,568 and $129, respectively, as pension expense (and grant revenue) for their proportionate share of the state of Minnesota's contribution of $16 million to the General Employees Fund during the City's fiscal year ended December 31, 2019. HE