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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 2016, as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year, starting in fiscal year 2014. At December 31, 2016, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experiences -$ 2,352,580$ Changes in acturial assumptions 11,286,075 - Differences between projected and actual investment earnings 3,129,562 - Changes in proportion 159,541 14,895 Contributions paid to PERA subsequent to the measurement date 412,816 - 14,987,994$ 2,367,475$ $412,816 reported as deferred outflows of resources related to pensions resulting from City c o n t r i b u t i o n s s u b s e q u e n t t o t h e m e a s u r e m e n t d a t e will be recognized as a reduction of the net p e n s ion liability in the year ended December 31, 2017. Other amounts reported as deferred o u t f l o w s and inflows of resources related to pensions will be recognized in pension expense a s f o l l o w s : Year Ended Pension Expense December 31, Amount 2017 2,622,832$ 2018 2,622,832 2019 2,622,841 2020 2,369,929 2021 1,969,269 Thereafter - Total 12,207,703$ E. Actuarial Assumptions The total pension liability in the June 30, 2016, actuarial valuation was determined using the entry age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50% Per Year Active Member Payroll Growth 3.25% Per Year Investment Rate of Return 7.50% 66 Item 8: Attachment D