Agenda - Council - 06/14/2022 - Laserfiche WebLink

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NOTE 9—DEFINED BENEFIT PENSION PLANS—STATE-WIDE (CONTINUED) 2. PEPFF Pension Costs At December 31, 2021,the City reported a liability of$1,8 8 8,825 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates July 1,2020,through June 3 0,2021,relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.2447% at the end of the measurement period and 0.23 97%for the beginning of the period. The State of Minnesota also contributed $18 million to the PEPFF in the plan fiscal year ended June 30, 2021. The contribution consisted of$9.0 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in supplemental state aid that does not meet the definition of a special funding situation. The $9.0 million of direct state was paid on October 1,2020. Thereafter,by October 1 of each year,the state will pay$9 million to the PEPFF until full funding is reached by July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan(administered by the Minnesota Retirement System)is 90%funded,whichever occurs later. Strong asset returns for the fiscal year ended 2021 will accelerate the phasing out of these state contributions, although we do not anticipate them to be phased out during the fiscal year ending 2022. The State of Minnesota is included as a non-employer contributing entity in the PEPFF Schedule of Employer Allocations and Schedule of Pension Amounts by Employer,Current Reporting Period Only(pension allocation schedules)for the$9.0 million in direct state aid. PEPFF employers need to recognize their proportionate share of the State of Minnesota's pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2021, the City recognized negative pension expense of $(21,426) for its proportionate share of the PEPFF's pension expense. The City recognized$15,465 as grant revenue for its proportionate share of the State of Minnesota's pension expense for the contribution of$9.0 million to the PEPFF. The amount recognized by the City as its proportionate share of the net pension liability, the direct aid and total portion of the net pension liability that was associated with the City were as follows: City's proportionate share of the net pension liability $118881825 State of Minnesota's proportionate share of the net pension liability associated with the City 84,916 Total L9731)741 83