2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025

NOTE 14 – PENSION PLANS (CONTINUED)

Public Employees' Retirement Association (Continued)

H. Pension Liability Sensitivity

The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate:

1% Decrease in Discount Rate

Discount Rate 1% Increase in

Discount Rate

(6%)

(7%)

(8%)

City's proportionate share of the General Employees Fund net pension liability Commission's proportionate share of the General Employees Fund net pension liability

$

9,283,621

$

3,822,240

$

(608,169)

$

5,296,736

$

2,180,765

$

(346,989)

Discount Rate 1% Decrease in

Discount Rate 1% Increase in

Discount Rate

(6%)

(7%)

(8%)

and Fire Fund net pension liability City's proportionate share of the Police

$

16,410,439

$

6,263,020

$

(2,069,613)

I. Pension Plan Fiduciary Net Position

Detailed information about each pension plan’s fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org.

J. Public Employees Defined Contribution Plan (Defined Contribution Plan)

Four Council Members of the City are covered the Defined Contribution Plan, a multiple-employer deferred compensation plan administered by PERA. The Defined Contribution Plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.

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