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IV-33CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 9 DEFINED BENEFIT PENSION PLANS-STATE-WIDE (CONTINUED) D. Pension Costs (Continued) 1. GERF Pension Costs (Continued) At December 31, 2019, the HRA reported its proportionate share of the GERF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources -Differences Between Expected and Actual Economic Experience $ 1,538 $ Changes In Actuarial Assumptions 4,363 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 5,626 Changes in Proportion and Differences Between City Contributions and Proportionete Share of Contributions 1,241 1,770 HRA Contributions Subsequent to the Measurement Date 2,754 Total $ 5,533 ""i_ ___ 1_1,759 A total of $2,754 reported as deferred outflows of resources related to pensions resulting from HRA contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending December 31 2020 2021 2022 2023 2. PEPFF Pension Costs Pension Expense Amount $ (2,907) (5,201) (960) 88 At December 31, 2019, the City reported a liability of $3,380,110 for its proportionate share of the Police and Fire Fund's net pension liability. 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's 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's proportion was 0.3175% which was an increase of 0.0130% to its proportion measured as of June 30, 2018. The City also recognized $42,862 for the year ended December 31, 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: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences Between Expected and Actual Economic Experience $ 143,516 $ 514,489 Changes in Actuarial Assumptions 2,804,954 3,794,824 Net Difference Between Projected and Actual Earnings on Pension Plan Investments 703,997 Changes in Proportion and Differences Between City Contributions and Proportionate Share of Contributions 478,419 116,281 City Contributions Subsequent to the Measurement Date 312,468 Total l 3,739,357 $ 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: Year Ending December 31 2020 2021 2022 2023 2024 Pension Expense Amount $ (82,109) (344,552) (1,314,793) 4,837 33,915 181
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