2020 Comprehensive Annual Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020

NOTE 14 – PENSION PLANS (CONTINUED)

Public Employees' Retirement Association (Continued)

D. Pension Costs (Continued)

At December 31, 2020, 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

Inflows of Resources Deferred

Differences between expected and actual experience

$

34,943

$

15,379 146,195

Changes in actuarial assumptions

-

Net difference between projected and actual earnings on plan

investments

86,038 163,314 180,040

-

Changes in proportion

16,642

Contributions to GERF subsequent to the measurement date

-

$

464,335

$

178,216

$180,040 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, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense below.

Pension Expense

Amount

Year Ending December 31, 2021

$

(168,382)

2024 2023 2022

98,210 130,842 45,409

Total

$

106,079

E. Actuarial Assumptions

The total pension liability in the June 30, 2020, 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

7.50%

7.50%

Investment Rate of Return

84