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<br /> 90 <br />City of Elk River <br />Notes to Basic Financial Statements <br /> <br /> <br />NOTE 12 – PENSION PLANS (CONTINUED) <br /> <br />Public Employees' Retirement Association (Continued) <br /> <br />G. Discount Rate <br />The discount rate used to measure the total pension liability in 2023 was 7.0%. The projection of <br />cash flows used to determine the discount rate assumed that contributions from Plan members and <br />employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary <br />net positions of the General Employees and Police and Fire Plans were projected to be available to <br />make all projected future benefit payments of current Plan members. Therefore, the long-term <br />expected rate of return on pension plan investments was applied to all periods of projected benefit <br />payments to determine the total pension liability. <br /> <br />H. Pension Liability Sensitivity <br />The following presents the City and HRA's proportionate shares of the net pension liability for all <br />plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as <br />well as what the City's proportionate share of the net pension liability would be if it were calculated <br />using a discount rate 1 percentage point lower or 1 percentage point higher than the current <br />discount rate: <br /> <br />Primary Government <br /> <br />1% Decrease in Current 1% Increase in <br />City's proportionate share of <br /> the General Employees Fund <br /> net pension liability 15,981,095$ 9,033,562$ 3,318,950$ <br />1% Decrease in Current 1% Increase in <br />City's proportionate share of <br /> the Police and Fire Fund <br /> net pension liability (asset) 10,895,685$ 5,491,447$ 1,048,440$ <br />Discount Rate <br />(6.0%) <br />Discount Rate <br />(7.0%) <br />Discount Rate <br />(8.0%) <br />Discount Rate <br />(6.0%) <br />Discount Rate <br />(7.0%) <br />Discount Rate <br />(8.0%) <br /> Discretely Presented Component Unit <br /> <br />1% Decrease in Current 1% Increase in <br />HRA's proportionate share of <br /> the General Employees Fund <br /> net pension liability 94,215$ 53,256$ 19,567$ <br />Discount Rate <br />(6.0%) <br />Discount Rate <br />(7.0%) <br />Discount Rate <br />(8.0%) <br /> <br />I. Pension Plan Fiduciary Net Position <br />Detailed information about each pension plan's fiduciary net position is available in a separately <br />issued PERA financial report that includes financial statements and required supplementary <br />information. That report may be obtained on the Internet at www.mnpera.org. <br />Page 211 of 464