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)

At December 31, 2018, the Commission reported its proportionate share of General Employees Fund's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources are below.

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience

$

94,568 329,088

$

100,477 401,623

Changes in actuarial assumptions

Net difference between projected and actual earnings on plan investments

-

383,439

Changes in proportion

115,005 166,710

- -

Contributions to GERF subsequent to the measurement date

Total

$

705,371

$

885,539

$166,710 reported as deferred outflows of resources related to pensions resulting from Commission contributions 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 inflows of resources related to pensions will be recognized in pension expense below.

Year Ending December 31,

Pension Expense

Amount

2019 2020 2021 2022 2023

$

168,153

(151,874) (288,473) (74,684)

-

Total

$

(346,878)

E. Actuarial Assumptions The total pension liability in the June 30, 2018, actuarial valuation was determined using the entry age normal actuarial cost method and the following actuarial assumptions:

GERF

PEPFF

Inflation 2.50% per year Active Member Payroll Growth 3.25% after 26 years of service 3.25% after 25 years of service Investment Rate of Return 7.50% 7.50% 2.50% per year

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