6.2 SR 06-03-2024 - Laserfiche WebLink

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82 City of Elk River Notes to Basic Financial Statements NOTE 12 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) C. Contributions Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Employees Fund Contributions Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year 2023 and the City and HRA were required to contribute 7.5% for Coordinated Plan members. The City and HRA contributions to the General Employees Fund for the year ended December 31, 2023, were $972,578 and $5,799, respectively. The contributions were equal to the required contributions as set by state statute. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal year 2023, and the City was required to contribute 17.7% for Police and Fire Plan members. The City's contributions to the Police and Fire Fund for the year ended December 31, 2023, were $779,420. The City's contributions were equal to the required contributions as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2023, the City and HRA reported liabilities of $9,033,562 and $53,256, respectively, for their proportionate shares of the General Employees Fund's net pension liability. The City and HRA net pension liabilities 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 City and HRA totaled $249,055 and $1,468, respectively. Page 203 of 464