2019 City of Shakopee Comprehensive Annual Financial Report

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

NOTE 14 – 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 (a)

Plan Fiduciary Net Position (b)

Net Pension Liability (Asset) (a) - (b)

Balances at January 1, 2019

4,391,511 $

6,367,761 $

(1,976,250) $

Changes for the year Service Cost Interest Difference Between Expected and Actual Experience

143,848 208,821 (44,100) 104,791 83,689 -

- -

143,848 208,821

(299,370) - - - 270,378 (1,807,369)

(44,100) 104,791 83,689 (270,378) 299,370

Administrative Expense Net Investment Income Employee Contributions Change of Benefit Terms Changes of Assumptions Contributions- State and Local

- (1,807,369) -

- 18,455

(18,455)

Net Changes

(1,310,320)

(1,854,816)

544,496

Balances at December 31, 2019

3,081,191 $

4,512,945 $

(1,431,754) $

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

1% Increase in Discount Rate

Discount Rate

(4.25%)

(5.25%)

(6.25%)

City's proportionate share of the Relief net pension asset

$

(1,283,515)

$

(1,431,754)

$

(1,572,399)

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.

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