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NOTE 8 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) <br />F. Discount Rate <br />The discount rate used to measure the total pension liability in 2017 was 7.5%. The projection of cash <br />flows used to determine the discount rate assumed that employee and employer contributions will be made <br />at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of GERF and <br />PEPFF was projected to be available to make all projected future benefit payments of current plan members. <br />Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of <br />projected benefit payments to determine the total pension liability. <br />G. Pension Liability Sensitivity <br />The following presents the City's proportionate share of the net pension liability for all plans it participates <br />in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's <br />proportionate share of the net pension liability would be if it were calculated using a discount rate 1 <br />percentage point lower or 1 percentage point higher than the current discount rate: <br />The City's Proportionate <br />Share of the GERF Net <br />Pension Liability: <br />The City's Proportionate <br />Share of the PEPFF Net <br />Pension Liability: <br />1% Decrease in <br />Discount Rate <br />(6.5%) <br />$5,455,978 <br />$5,568,443 <br />H. Pension Plan Fiduciary Net Position <br />Discount Rate <br />(7.5%) <br />1% Increase in <br />Discount Rate <br />(8.5%) <br />$3,517,550 $1,930,590 <br />$2,956,761 $800,673 <br />Detailed information about each pension plan's fiduciary net position is available in a separately -issued <br />PERA financial report that includes financial statements and required supplementary information. That <br />report may be obtained on the PERA website at www.mnpera.orn . <br />NOTE 9 — DEFINED CONTRIBUTION PLAN — STATE-WIDE <br />All City Council members of the City are covered by the Public Employees Defined Contribution Plan <br />(PEDCP), a multiple -employer deferred compensation plan administered by PERA. The PEDCP is a tax <br />qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of <br />employees are tax deferred until time of withdrawal. <br />87 <br />