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NOTE 10 — DEFINED BENEFIT PENSION PLANS — STATE-WIDE (CONTINUED) <br />D. Pension Costs <br />1. GERF Pension Costs <br />At December 31, 2024, the City reported a liability of $2,471,091 for its proportionate share of the <br />GERF's net pension liability. The City's net pension liability reflected a reduction due to the State of <br />Minnesota's contribution of $16 million. The State of Minnesota is considered a non -employer <br />contributing entity and the state's contribution meets the definition of a special funding situation. The <br />State of Minnesota's proportionate share of the net pension liability associated with the City totaled <br />$63,897. <br />City's proportionate share of the net pension liability $2,471,091 <br />State of Minnesota's proportionate share of the net pension <br />liability associated with the City 63,897 <br />Total $2,534,988 <br />The net pension liability was measured as of June 30, 2024, and the total pension liability used to <br />calculate the net pension liability was determined by an actuarial valuation as of that date. The City's <br />proportion of the net pension liability was based on the City's contributions received by PERA during <br />the measurement period for employer payroll paid dates from July 1, 2023, through June 30, 2024, <br />relative to the total employer contributions received from all of the PERA's participating employers. <br />The City's proportionate share was 0.0668% at the end of the measurement period and 0.0620% for the <br />beginning of the period. <br />For the year ended December 31, 2024, the City recognized pension expense of $354,218 for its <br />proportionate share of the GERF's pension expense. In addition, the City recognized an additional <br />$1,713 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's <br />contribution of $16 million to the GERF. <br />During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the <br />GERF. The State of Minnesota is not included as a non -employer contributing entity in the GERF <br />pension allocation schedules for the $170.1 million in direct state aid because this contribution was not <br />considered to meet the definition of a special funding situation. The City recognized $113,693 for the <br />year ended December 31, 2024, as revenue and an offsetting reduction of net pension liability for its <br />proportionate share of the State of Minnesota's on -behalf contributions to the GERF. <br />84 <br />