2018 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018

NOTE 13 –PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued)

City's proportionate share of the net pension liability

5,797,232 $

State of Minnesota's proportionate share of the net penison liability associated with the City

190,111

Total

5,987,343 $

For the year ended December 31, 2018, the City recognized pension expense of $729,895 for its proportionate share of General Employees Fund's pension expense. In addition, the City recognized an additional $44,333 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, 2018, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, related to pensions from the sources as follows.

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience

$

154,188 562,140

$

188,381 651,381 605,202 69,118

Changes in actuarial assumptions

Net difference between projected and actual earnings on plan investments

-

Changes in proportion

378,897 274,064

Contributions to GERF subsequent to the measurement date

-

Total

$

1,369,289

1,514,082 $

Deferred outflows of resources totaling $274,064 related to pensions resulting from City contributions to General Employees Fund subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending December 31,

Pension Expense

Amount

2019 2020 2021 2022

$

280,571 (147,166) (431,262) (121,000)

Total

$

(418,857)

78