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) D. Pension Costs (Continued) 2. PEPFF Pension Costs (Continued) 2019 as revenue and an offsetting reduction of net pension liability for its proportionate share of the state of Minnesota's on -behalf contributions to the Police and Fire Fund. Legislation passed in 2013 required the state of Minnesota to begin contributing $9 million to the Police and Fire Fund each year until the plan is 90% funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. For the year ended December 31, 2019, the City recognized pension expense of $802,612 for its proportionate share of the Police and Fire Plan's pension expense. At December 31, 2019, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Changes in Proportion and Differences Between City Contributions and Proportionate Share of Contributions City Contributions Subsequent to the Measurement Date Total Deferred Deferred Outflows of Inflows of Resources Resources 143,516 2,804,954 478,419 312,468 $ 3,739,357 $ 514,489 3,794,824 703,997 116,281 $ 5,129,591 A total of $312,468 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Expense Year Endinq December 31, Amount 2020 $ (82,109) 2021 (344,552) 2022 (1,314,793) 2023 4,837 2024 33,915 (64)