6.3 SR 06-05-2023 - Laserfiche WebLink

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City of Elk River Notes to Basic Financial Statements NOTE 12 — PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) G. Discount Rate (Continued) In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2060. Beginning in the fiscal year ended June 30, 2061, projected benefit payments exceed the fund's projected fiduciary net position. Benefit payments projected after were discounted at the municipal bond rate of 3.69% (based on the weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO AA Index"). The resulting equivalent single discount rate of 5.4% for the Police and Fire Fund was determined to give approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected benefits using 6.5% applied to all years of projected benefits through the point of asset depletion and 3.69% thereafter. H. Pension Liability Sensitivity The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate (5.5%) (6.5%) (7.5%) City's proportionate share of the General Employees Fund net pension liability $ 20,191,313 $ 12,782,933 $ 6,706,918 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate (4.4%) (5.4%) (6.4%) City's proportionate share of the Police and Fire Fund net pension liability (asset) $ 21,580,998 $ 14,260,210 $ 8,341,790 I. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. :.