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NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) <br />At December 31, 2023, 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 />Differences between expected and actual economic experience <br />Changes in actuarial assumptions <br />Net collective difference between projected and actual <br />investment earnings <br />Changes in proportion <br />Contributions paid to the PERA subsequent to the <br />measurement date <br />Total <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />$ 45,439 $ 9,399 <br />220,484 386,238 <br />— 78,977 <br />117,357 23,487 <br />76,740 — <br />$ 460,020 $ 498,101 <br />A total of $76,740 reported as deferred outflows of resources related to pensions resulting from city <br />contributions subsequent to the measurement date will be recognized as a reduction of the net pension <br />liability in the year ending December 31, 2024. Other amounts reported as deferred outflows and <br />deferred inflows of resources related to pensions will be recognized in pension expense as follows: <br />Pension <br />Year Ending Expense <br />December 31, Amount <br />2024 <br />$ <br />50,457 <br />2025 <br />$ <br />(191,622) <br />2026 <br />$ <br />56,912 <br />2027 <br />$ <br />(30,568) <br />E. Long -Term Expected Return on Investments <br />The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an <br />analysis of the reasonableness on a regular basis of the long-term expected rate of return using a <br />building-block method in which best -estimate ranges of expected future rates of return are developed for <br />each major asset class. These ranges are combined to produce an expected long-term rate of return by <br />weighting the expected future rates of return by the target asset allocation percentages. The target <br />allocation and best -estimates of geometric real rates of return for each major asset class are summarized <br />in the following table: <br />Target <br />Long -Term Expected <br />Asset Class <br />Allocation <br />Real Rate of Return <br />Domestic equity <br />33.50 % <br />5.10 % <br />International equity <br />16.50 <br />5.30 % <br />Fixed income <br />25.00 <br />0.75 % <br />Private markets <br />25.00 <br />5.90 % <br />Total <br />100.00 % <br />Cil2 <br />