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<br />-42- <br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED) <br /> <br />The City’s net pension liability reflected a reduction, due to the state of Minnesota’s contribution of <br />$16 million to the fund. The state of Minnesota is considered a nonemployer contributing entity and <br />the state’s contribution meets the definition of a special funding situation. The amount recognized by <br />the City as its proportionate share of the net pension liability, the direct aid, and total portion of the <br />net pension liability that was associated with the City were as follows: <br /> <br />City’s proportionate share of the net pension liability 1,209,375$ <br />State’s proportionate share of the net pension liability <br /> associated with the City 39,819$ <br />For the year ended December 31, 2018, the City recognized pension expense of $4,272 for its <br />proportionate share of the GERF’s pension expense. In addition, the City recognized an additional <br />$9,245 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s <br />contribution of $16 million to the GERF. <br /> <br />At December 31, 2018, the City reported its proportionate share of the GERF’s deferred outflows of <br />resources and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />Differences between expected and actual economic experience 33,694$ 43,200$ <br />Changes in actuarial assumptions 141,491 141,007 <br />Difference between projected and actual investment earnings – 96,620 <br />Changes in proportion – 228,396 <br />Contributions paid to the PERA subsequent to the <br /> measurement date 56,053 – <br />Total 231,238$ 509,223$ <br />Deferred outflows of resources reported $56,053 related to pensions resulting from city contributions <br />subsequent to the measurement date that will be recognized as a reduction of the net pension liability <br />in the year ending December 31, 2019. Other amounts reported as deferred outflows and deferred <br />inflows of resources related to pensions will be recognized in pension expense as follows: <br /> <br />Pension <br />Year Ending Expense <br />December 31, Amount <br />2019 (37,994)$ <br />2020 (150,266)$ <br />2021 (120,534)$ <br />2022 (25,244)$