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<br />-40- <br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED) <br /> <br />D. Pension Costs <br /> <br />GERF Pension Costs <br /> <br />At December 31, 2017, the City reported a liability of $1,468,305 for its proportionate share of the <br />GERF’s net pension liability. The net pension liability was measured as of June 30, 2017, and the <br />total pension liability used to calculate the net pension liability was determined by an actuarial <br />valuation as of that date. The City’s proportion of the net pension lia bility was based on the City’s <br />contributions received by the PERA during the measurement period for employer payroll paid dates <br />from July 1, 2016 through June 30, 2017, relative to the total employer contributions received from <br />all of the PERA’s participating employers. The City’s proportionate share was 0.0230 percent at the <br />end of the measurement period and 0.0267 percent for the beginning of the period. <br /> <br />The City’s net pension liability reflected a reduction due to the state of Minnesota’s contribution o f <br />$6 million to the fund. The state of Minnesota is considered a nonemployer contributing entity and <br />the state’s contribution meets the definition of a special funding situation. The amount recognized by <br />the City as its proportionate share of the net pensi on liability, the direct aid, and total portion of the <br />net pension liability that was associated with the City were as follows: <br /> <br />City’s proportionate share of net pension liability 1,468,305$ <br />State’s proportionate share of the net pension liability <br /> associated with the City 18,435$ <br /> <br />For the year ended December 31, 2017, the City recognized pension expense of $109,723 for its <br />proportionate share of the GERF’s pension expense. In addition, the Cit y recognized an additional <br />$533 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s <br />contribution of $6 million to the GERF. <br /> <br />At December 31, 2017, the City reported its proportionate share of the GERF’s deferred o utflows of <br />resources and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />Differences between expected and actual economic experience 48,391$ 111,049$ <br />Changes in actuarial assumptions 282,985 147,198 <br />Difference between projected and actual investment earnings 55,039 – <br />Changes in proportion – 309,054 <br />Contributions paid to the PERA subsequent to the <br /> measurement date 54,523 – <br />Total 440,938$ 567,301$ <br /> <br />