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NOTE 8 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED)
<br />2. PEPFF Pension Costs
<br />At December 31, 2019, the City reported a liability of $2,481,585 for its proportionate share of the PEPFF's
<br />net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension
<br />liability used to calculate the net pension liability was deteiniined by an actuarial valuation as of that date.
<br />The City's proportionate share of the net pension liability was based on the City's contributions received
<br />by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June
<br />30, 2019, relative to the total employer contributions received from all of PERA's participating employers.
<br />At June 30, 2019, the City of Ramsey's proportion was 0.2331% which was an increase of 0.0170% from
<br />its proportionate share measured as of June 30, 2018.
<br />For the year ended December 31, 2019, the City recognized pension expense of $407,121 for its
<br />proportionate share of the PEPFF's expense. The City also recognized $31,468 for the year ended
<br />December 31, 2019, as revenue and an offsetting reduction of net pension liability for its proportionate
<br />share of the State of Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required
<br />the State of Minnesota to begin contributing $9 million to the PEPFF each year until the plan is 90% funded
<br />or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded,
<br />whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019
<br />in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is
<br />reached or July 1, 2048, whichever is earlier.
<br />At December 31, 2019, the City reported its proportionate share of the PEPFF's deferred outflows of
<br />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 $ 100,278 $ 337,417
<br />Changes in actuarial assumptions 1,837,576 2,619,043
<br />Difference between projected and actual investment earnings 492,379
<br />Changes in proportion 380,727 29,890
<br />Contributions paid to PERA subsequent to the measurement
<br />date 224,155
<br />Total $2.542,736 $3.478,729
<br />$224,155 reported as deferred outflows of resources related to pensions resulting from City contributions
<br />subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
<br />ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related
<br />to pensions will be recognized in pension expense as follows:
<br />Year ended December 31: Pension Expense Amount
<br />2020 $ (103,934)
<br />2021 (277,173)
<br />2022 (829,307)
<br />2023 22,166
<br />2024 28,100
<br />Total $(1.160.148)
<br />83
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