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NOTE 10 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) <br />At December 31, 2023, 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 $ 1,169,157 $ - <br />Changes in actuarial assumptions 5,070,248 5,843,862 <br />Net collective difference between projected and actual <br />investment earnings 89,561 <br />Changes in proportion 151,442 601,972 <br />Contributions paid to the PERA subsequent to the measurement <br />date 309,700 <br />Total $6,700,547 $6.535,395 <br />A total of $309,700 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, 2024. Other amounts reported as deferred outflows and <br />deferred inflows of resources related to pensions will be recognized in pension expense as follows: <br />Year ended December 31: Pension Expense Amount <br />2024 $ 229,801 <br />2025 64,885 <br />2026 1,034,202 <br />2027 (321,768) <br />2028 (1,151,668) <br />Total $ (144,548) <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 />The target allocation and best -estimates of geometric real rates of return for each major asset class are <br />summarized in the following table: <br />Asset Class Target Allocation <br />Domestic Equity 33.50% <br />International Equity 16.50% <br />Fixed Income 25.00% <br />Private Markets 25.00% <br />Total 100.00% <br />Long -Term Expected Real Rate <br />of Return <br />5.10% <br />5.30% <br />0.75% <br />5.90% <br />86 <br />