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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: Differences between expected and actual economic experiences Changes m acturial assumptions Differences between projected and actual mvestment earnings Deferred Outflows of Resources $ - 11,286,075 3,129,562 Deferred Inflows of Resources $ 2,352,580 Changes in proportion 159,541 14,895 Contrbutions paid to PERA subseguent to the measurement date 412,816 - $ 14,987,994 $ 2,367,475 $412,816 reported as deferred outflows of resources related to pensions resulting froin City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 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 Therea$er - 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 Active Member Payroll Growth Investment Rate of Return •• 2.50% Per Year 3.25% Per Year 7.50%