2022 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022

Public Employees' Retirement Association (Continued) D. Pension Costs (Continued) NOTE 13 – PENSION PLANS (CONTINUED)

3. Component Unit’s General Employees Fund Pension Costs (Continued)

Resources Inflows of Deferred

Deferred Outflows of Resources

Differences between expected and actual experience

$

44,191

$

21,518 56,516

1,197,355

Changes in actuarial assumptions

Net difference between projected and actual earnings on plan

investments

203,900 204,250 91,770

-

Changes in proportion

133,808

-

Contributions to GERF subsequent to the measurement date

$ 1,741,466

$

211,842

$204,250 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, 2023. 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, 2023

Amount

$

504,875 463,380 (121,337) 478,456

2026 2025 2024

$

1,325,374

Total

E. Long-Term Expected Rate of Investment

The table State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized on the following

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