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City of Orono, Minnesota
<br />Notes to the Financial Statements
<br />December 31, 2019
<br />Note 4: Defined Benefit Pension Plans - Statewide (Continued)
<br />At December 31, 2019, the City reported its proportionate share of the General Employees Plan’s deferred outflows of
<br />resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the
<br />following sources:
<br />Deferred Deferred
<br />Outflows Inflows
<br />of Resources of Resources
<br />Differences Between Expected and
<br />Actual Economic Experience 41,167$ 10,292$
<br />Changes in Actuarial Assumptions 4,593 116,811
<br />Net Difference Between Projected and
<br />Actual Earnings on Plan Investments - 136,980
<br />Changes in Proportion 57,779 7,622
<br />Contributions to PERA Subsequent
<br />to the Measurement Date 72,537 -
<br /> Total 176,076$ 271,705$
<br />The $72,537 reported as deferred outflows of resources related to pensions resulting from the City’s contributions
<br />subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
<br />December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
<br />recognized in pension expense as follows:
<br />(65,267)$
<br />(95,619)
<br />(9,660)
<br />2,380
<br />2020
<br />2021
<br />2022
<br />2023
<br />Police and Fire Fund Pension Costs
<br />At December 31, 2019, the City reported a liability of $2,402,804 for its proportionate share of the Police and Fire Fund’s
<br />net pension liability. The net pension liability was measured as of June 30, 2019, 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 proportionate share
<br />of the net pension liability was based on the City’s contributions received by PERA during the measurement period for
<br />employer payroll paid dates from July 1, 2018 through June 30, 2019 relative to the total employer contributions received
<br />from all of PERA’s participating employers. At June 30, 2019, the City’s proportionate share was 0.2257 percent which
<br />was an increase of 0.0087 from its proportionate share measured as of June 30, 2018.
<br />For the year ended December 31, 2019, the City recognized pension expense of $961,451 for its proportionate share of
<br />PEPFF’s pension expense. The City also recognized $30,470 for the year ended December 31, 2019 as revenue and an
<br />offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to
<br />the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to
<br />the Police and Fire Fund each year until the plan is 90 percent funded or until the State Patrol Plan (administered by the
<br />Minnesota State Retirement System) is 90 percent funded, whichever occurs later. In addition, the state will pay $4.5
<br />million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will
<br />pay $9 million until full funding is reached or July 1, 2048, whichever is earlier.
<br />176,076$$
<br />reported as deferred outflows of resources reported as deferred outflows of resources related to pensions resulting from the City’s contributions elated to pensions resulting from the City’s contributions
<br />subsequent to the measurement date will be recognized as a reduction of the net pensubsequent to the measurement date will be recognized as a reduction of the net pension liability in sion liability in
<br />Other amounts reported as deferred outflows and inflows of resources related to pensions will be Other amounts reported as deferred outflows and inflows of resources related to pensions will be
<br />recognized in pension expense as follows:recognized in pension expense as follows:
<br />79
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