Laserfiche WebLink
NOTE 9—DEFINED BENEFIT PENSION PLANS—STATE-WIDE (CONTINUED) <br /> The State of Minnesota is not included as a non-employer contributing entity in the PEPFF <br /> allocation schedules for the$9 million in supplemental state aid. The City also recognized$22,023 <br /> for the year ended December 31, 2021 as revenue and an off-setting reduction of net pension <br /> liability for its proportionate share of the State of Minnesota's on-behalf contributions to the <br /> PEPFF. <br /> At December 31, 2021,the City reported its proportionate share of the PEPFF's deferred outflows <br /> of resources and deferred inflows of resources related to pensions from the following sources: <br /> Deferred Deferred <br /> Outflows of Inflows of <br /> Resources Resources <br /> Differences between expected and actual economic experience $ 357,250 $ - <br /> Changes in actuarial assumptions 21776,077 933,206 <br /> Net collective difference between projected and actual <br /> investment earnings - 316051326 <br /> Changes in proportion 265,997 13,051 <br /> Contributions paid to the PERA subsequent to the measurement <br /> date 277,310 - <br /> Total S3fi76fi34 $49551,583 <br /> A total of$277,310 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, 2022. Other amounts reported as deferred outflows and <br /> inflows of resources related to pensions will be recognized in pension expense as follows: <br /> Year ended December 31: Pension Expense Amount <br /> 2022 $ (1,043,091) <br /> 2023 (191 fil3) <br /> 2024 (185,680) <br /> 2025 (350,596) <br /> 2026 618,721 <br /> Total (L1521259) <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 <br /> for each major asset class. These ranges are combined to produce an expected long-term rate of return <br /> by weighting the expected future rates of return by the target assess allocation percentages. <br /> 84 <br />