4.1c ERMUSR 04-11-2023 - Laserfiche WebLink

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Elk River Municipal Utilities Elk River, Minnesota Notes to the Financial Statements December 31, 2022 Note 3: Defined Benefit Pension Plans - Statewide (Continued) D. Pension Costs General Employees Fund Pension Costs At December 31, 2022, the Utilities reported a liability of $4,514,419 for its proportionate share of the General Employees Fund's net pension liability. The Utilities' net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non -employer 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 Utilities totaled $132,415. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Utilities' proportionate share of the net pension liability was based on the Utilities' contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2021 through June 30, 2022 relative to the total employer contributions received from all of PERA's participating employers. The Utilities' proportionate share was 0.0570 percent which was an increase of 0.0020 percent from its proportion measured as of June 30, 2021. Utilities' Proportionate Share of the Net Pension Liability State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the Utilities Total $ 4,514,419 132,415 $ 4,646,834 For the year ended December 31, 2022, the Utilities recognized pension expense of $689,009 for its proportionate share of the General Employees Plan's pension expense. In addition, the Utilities recognized an additional $19,786 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2022, the Utilities reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Differences between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference between Projected and Actual Earnings on Plan Investments Changes in Proportion Contributions paid to PERA subsequent to the Measurement Date Total Deferred Deferred Outflows Inflows of Resources of Resources $ 37,708 986,929 129,693 88,713 $ 46,457 17,395 $ 1,414,144 $ 63,852 43 126