4.1 ERMUSR 05-14-2024 - Laserfiche WebLink

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Elk River Municipal Utilities Elk River, Minnesota Notes to the Financial Statements December 31, 2023 Note 3: Defined Benefit Pension Plans -Statewide (Continued) D. Pension Costs General Employees Fund Pension Costs At December 31, 2023, the Utilities reported a liability of $3,220,927 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 $88,808. The net pension liability was measured as of June 30, 2023, 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, 2022 through June 30, 2023 relative to the total employer contributions received from all of PERA's participating employers. The Utilities' proportionate share was 0.0576 percent at the end of the measurement period and 0.057 percent for the beginning of the period. Utilities' Proportionate Share of the Net Pension Liability $ 3,220,927 State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the Utilities 88,808 Total $ 3,309,735 For the year ended December 31, 2023, the Utilities recognized pension expense of $570,201 for its proportionate share of the General Employees Plan's pension expense. In addition, the Utilities recognized $399 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, 2023, 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: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience $ 105,512 $ 21,187 Changes in actuarial assumptions 498,609 882,829 Net difference between projected and actual investment earnings - 86,104 Changes in proportion 45,112 - Contributions paid to PERA subsequent to the measurement date 167,136 - Total $ 816,369 $ 990,120 The $167,136 reported as deferred outflows of resources related to pensions resulting from the Utilities' contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2024 $ 107,250 2025 (449,168) 2026 70,904 2027 (69,873) 45 110