2019 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019

NOTE 14 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued)

At December 31, 2019, 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

Deferred Inflows of Resources

Outflows of Resources

Differences between expected and actual experience

$

98,286

$

-

Changes in actuarial assumptions

-

279,540

Net difference between projected and actual earnings on plan investments

-

368,175 24,963

Changes in proportion

49,879 175,009

Contributions to GERF subsequent to the measurement date

-

$

323,174

$

672,678

$175,009 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.

Pension Expense

Year Ending December 31, 2020

Amount

$

(156,933) (293,532) (79,741)

2021 2022 2023

5,693

Total

$

(524,513)

E. Actuarial Assumptions

The total pension liability in the June 30, 2019, actuarial valuation was determined using the entry age normal actuarial cost method and the following actuarial assumptions:

GERF

PEPFF

Inflation Active Member Payroll Growth 3.25% after 26 years of service 2.50% per year

2.50% per year

3.25% after 25 years of service

Investment Rate of Return

7.50%

7.50%

82