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<br />-39- <br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED) <br /> <br />The City’s proportion of the net pension liability was based on the City’s contributions received by <br />the PERA during the measurement period for employer payroll paid dates from July 1, 2018 through <br />June 30, 2019, relative to the total employer contributions received from all of the PERA’s <br />participating employers. The City’s proportionate share was 0.0218 percent at the end of the <br />measurement period and 0.0218 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 of <br />$16 million to the fund in 2019. The state of Minnesota is considered a nonemployer contributing <br />entity and the state’s contribution meets the definition of a special funding situation. The amount <br />recognized by the City as its proportionate share of the net pension liability, the direct aid, and total <br />portion of the net pension liability that was associated with the City were as follows: <br /> <br />City’s proportionate share of the net pension liability 1,205,274$ <br />State’s proportionate share of the net pension liability <br /> associated with the City 37,332$ <br />For the year ended December 31, 2019, the City recognized pension expense of $68,478 for its <br />proportionate share of the GERF’s pension expense. In addition, the City recognized an additional <br />$2,808 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s <br />contribution of $16 million to the GERF. <br /> <br />At December 31, 2019, the City reported its proportionate share of the GERF’s deferred outflows of <br />resources and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />Differences between expected and actual economic experience 34,243$ –$ <br />Changes in actuarial assumptions – 97,296 <br />Difference between projected and actual investment earnings – 114,301 <br />Changes in proportion – 113,408 <br />Contributions paid to the PERA subsequent to the <br /> measurement date 61,566 – <br />Total 95,809$ 325,005$ <br />A total of $61,566 reported as deferred outflows of resources related to pensions resulting from city <br />contributions subsequent to the measurement date will be recognized as a reduction of the net pension <br />liability in the year ending December 31, 2020. Other amounts reported as deferred outflows and <br />deferred inflows of resources related to pensions will be recognized in pension expense as follows: <br /> <br />Pension <br />Year Ending Expense <br />December 31,Amount <br />2020 (149,153)$ <br />2021 (119,421)$ <br />2022 (24,129)$ <br />2023 1,941$