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<br /> 94 <br />City of Elk River <br />Notes to Basic Financial Statements <br /> <br /> <br />NOTE 12 – PENSION PLANS (CONTINUED) <br /> <br />Defined Benefit Pension Plan – Volunteer Firefighter's Relief Association (Continued) <br /> <br />F. Changes in the Net Pension Liability <br /> <br />Total Plan Fiduciary Net <br />Pension Net Pension <br />Liability Position Liability <br />(a) (b)(a) - (b) <br />Balances at December 31, 2023 3,174,258$ 3,281,918$ (107,660)$ <br />Changes for the year <br />Service cost 218,430 - 218,430 <br />Interest cost 154,984 - 154,984 <br />Contributions - State and local - 308,775 (308,775) <br />Net investment income - 313,844 (313,844) <br />Benefit payments (586,017) (586,017) - <br />Administrative expense - (16,797) 16,797 <br />Net changes (212,603) 19,805 (232,408) <br />Balances at December 31, 2024 2,961,655$ 3,301,723$ (340,068)$ <br />Increase (Decrease) <br /> <br />Sensitivity of the net pension liability to changes in the discount rate. The following table on the <br />next page presents the net pension liability of the City , calculated using the discount rate of 5.0%, as <br />well as what the City's net pension liability would be if it were calculated using a discount rate that <br />is 1-percentage-point lower (4.0%) or 1-percentage-point higher (6.0%) than the current rate: <br /> <br />1%1% <br /> Decrease in <br />Discount Rate <br />Current <br />Discount <br />Increase in <br />Discount Rate <br />(4.0%)Rate (5.0%)(6.0%) <br />City's net pension liability (asset)(243,616)$ (340,068)$ (431,302)$ <br /> <br />Detailed information about the pension plan 's fiduciary net position is available in the separately <br />issued relief association financial report. <br />Page 284 of 637