2018 City of Shakopee Comprehensive Annual Financial Report

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

NOTE 13 – PENSION PLANS (CONTINUED) Defined Benefit Pension Plan – Volunteer Fire Fighter's Relief Association (Continued) F. Changes in the Net Pension Liability (Asset)

Increase (Decrease)

Total Pension Liability

Plan Fiduciary Net Position

Net Pension Liability (Asset)

(a)

(b)

(a) - (b)

Balances at January 1, 2017

4,257,029 $

5,636,103 $

(1,379,074) $

Changes for the year Service Cost

136,432 244,054 52,084

- - -

136,432 244,054 52,084 (252,336)

Interest

Change of Benefit Terms

Contributions- State and Local

- - -

252,336

Contributions- Donations and Other Local

95

(95)

Net Investment Income

789,234

(789,234)

Benefit Payments, including refunds of employee contributions

(298,088)

(298,088) (11,919)

-

Administrative Expense

-

11,919

Net Changes

134,482 $

731,658 $

$

(597,176)

Balances at December 31, 2017

4,391,511 $

6,367,761 $

(1,976,250) $

Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability (asset) of the City, calculated using the discount rate disclosed on the proceeding page, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1 percentage point higher than the current discount rate:

1% Decrease in Discount Rate

Current

1% Increase in Discount Rate

Discount Rate

(4.75%)

(5.75%)

(6.75%)

City's proportionate share of the Relief net pension asset

$

(1,858,880)

$

(1,976,250)

$

(2,086,478)

Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued relief association financial report. 87