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City of Elk River <br />Notes to Basic Financial Statements <br />NOTE 11 — PENSION PLANS (CONTINUED) <br />Public Employees' Retirement Association (Continued) <br />B. Benefits Provided (Continued) <br />Police and Fire Plan Benefits (Continued) <br />Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at <br />1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 <br />before the effective date of the increase will receive the full increase. Recipients receiving the annuity or <br />benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the <br />increase will receive a reduced prorated increase. <br />C. Contributions <br />Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution <br />rates can only be modified by the state Legislature. <br />General Employees Fund Contributions <br />Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year <br />2021 and the City was required to contribute 7.5% for Coordinated Plan members. The City and HRA <br />contributions to the General Employees Fund for the year ended December 31, 2021, were $574,317 and <br />$3,678, respectively. The contributions were equal to the required contributions as set by state statute. <br />Police and Fire Fund Contributions <br />Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal <br />year 2021 and the City was required to contribute 17.7% for Police and Fire Plan members. The City's <br />contributions to the Police and Fire Fund for the year ended December 31, 2021, were $690,006. The <br />City's contributions were equal to the required contributions as set by state statute. <br />D. Pension Costs <br />General Employees Fund Pension Costs <br />At December 31, 2021, the City and HRA reported liabilities of $6,610,551 and $25,725, respectively, <br />for their proportionate shares of the General Employees Fund's net pension liability. The City and HRA <br />net pension liabilities reflected a reduction due to the State of Minnesota's contribution of $16 million. <br />The State of Minnesota is considered a non -employer contributing entity and the State's contribution <br />meets the definition of a special funding situation. The State of Minnesota's proportionate share of the <br />net pension liability associated with the City and HRA totaled $202,474. <br />FIX <br />