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NOTE 9 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) The State of Minnesota is not included as a non -employer contributing entity in the PEPFF allocation schedules for the $9 million in supplemental state aid. The City also recognized $22,023 for the year ended December 31, 2021 as revenue and an off -setting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the PEPFF. At December 31, 2021, the City reported its proportionate share of the PEPFF'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 experience $ 357,250 $ Changes in actuarial assumptions 2,776,077 933,206 Net collective difference between projected and actual investment earnings 3,605,326 Changes in proportion 265,997 13,051 Contributions paid to the PERA subsequent to the measurement date 277,310 Total $3,676 634 $4,551.583 A total of $277,310 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31: Pension Expense Amount 2022 $ (1,043,091) 2023 (191,613) 2024 (185,680) 2025 (350,596) 2026 618,721 Total $ (1,152,259) E. Long -Term Expected Return on Investments The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an analysis of the reasonableness on a regular basis of the long-teiui expected rate of return using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-teiui rate of return by weighting the expected future rates of return by the target assess allocation percentages. 84