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City of Elk River <br />Notes to Basic Financial Statements <br />NOTE 12 — PENSION PLANS (CONTINUED) <br />Defined Benefit Pension Plan — Volunteer Firefighter's Relief Association (Continued) <br />F. Changes in the Net Pension Liability <br />Increase (Decrease) <br />Total <br />Plan Fiduciary <br />Net <br />Pension <br />Net <br />Pension <br />Liability <br />Position <br />Liability <br />(a) <br />(b) <br />(a) - (b) <br />Balances at December 31, 2021 $ <br />3,085,088 <br />$ 4,079,511 <br />$ (994,423) <br />Changes for the year <br />Service cost <br />141,264 <br />- <br />141,264 <br />Interest cost <br />153,908 <br />- <br />153,908 <br />Differences between expected and actual experience <br />19,130 <br />- <br />19,130 <br />Changes of benefit terms <br />725,544 <br />- <br />725,544 <br />Contributions - State and local <br />- <br />250,909 <br />(250,909) <br />Net investment income <br />- <br />377,358 <br />(377,358) <br />Benefit payments <br />(296,383) <br />(296,383) <br />- <br />Administrative expense <br />- <br />(17,309) <br />17,309 <br />Net changes <br />743,463 <br />314,575 <br />428,888 <br />Balances at December 31, 2022 $ <br />3,828,551 <br />$ 4,394,086 <br />$ (565,535) <br />Sensitivity of the net pension liability to changes in the discount rate. The following table on the next <br />page presents the net pension liability of the City, calculated using the discount rate of 5.00%, as well as <br />what the City's net pension liability would be if it were calculated using a discount rate that is 1- <br />percentage-point lower (4.00%) or 1-percentage-point higher (6.00%) than the current rate: <br />City's proportionate share of <br />the Plan net pension liability (asset) <br />1% Decrease in Current 1% Increase in <br />Discount Rate Discount Rate Discount Rate <br />(4.00%) (5.00%) (6.00%) <br />$ (475,922) $ (565,535) $ (651,834) <br />Detailed information about the pension plan's fiduciary net position is available in the separately issued <br />relief association financial report. <br />.o <br />