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NOTE 8 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) 2. PEPFF Pension Costs At December 31, 2018, the City reported a liability of $2,303,404 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was deteiniined 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 from July 1, 2017, through June 30, 2018, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2018, the City of Ramsey's proportion was 0.2161% which was a decrease of 0.0029% from its proportionate share measured as of June 30, 2017. For the year ended December 31, 2018, the City recognized pension expense of $278,548 for its proportionate share of the PEPFF's expense. The City also recognized $19,449 for the year ended December 31, 2018, as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. At December 31, 2018, 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 $ 93,564 $544,638 Changes in actuarial assumptions 2,756,364 3,435,380 Difference between projected and actual investment earnings 514,076 Changes in proportion 312,300 38,309 Contributions paid to PERA subsequent to the measurement date 197,790 Total $3.360,018 $4.532,403 $197,790 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 ended December 31, 2019. 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 2019 $ (36,781) 2020 (140,220) 2021 (313,459) 2022 (865,595) 2023 (14,120) 83