Laserfiche WebLink
City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2022 <br />Note 4: Defined Benefit Pension Plans - Statewide (Continued) <br />Police and Fire Fund Contributions <br />Police and Fire member’s contribution rates increased from 11.30 percent of pay to 11.80 percent and employer rates <br />increased from 16.95 percent to 17.70 percent on January 1, 2022. The City’s contributions to the Police and Fire Fund for <br />the years ending December 31, 2022, 2021 and 2020 were $460,205, $462,202 and $455,708, respectively. The City’s <br />contributions were equal to the required contributions for each year as set by state statute. <br />D.Pension Costs <br />General Employees Fund Pension Costs <br />At December 31, 2022, the City reported a liability of $2,399,770 for its proportionate share of the General Employees <br />Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s <br />contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the State’s <br />contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net <br />pension liability associated with the City totaled $70,380. The net pension liability was measured as of June 30, 2022, and <br />the total pension liability used to calculate the net pension liability was determined by an actuar ial valuation as of that <br />date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA <br />during the measurement period for employer payroll paid dates from July 1, 2021 through June 30, 2022 relative to the <br />total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was <br />0.0303 at the end of the measurement period and .0266 percent for the beginning of the period. <br />City's Proportionate Share of the Net Pension Liability 2,399,770$ <br />State of Minnesota's Proportionate Share of the Net Pension <br />Liability Associated with the City 70,380 <br />Total 2,470,150$ <br />For the year ended December 31, 2022, the City recognized pension expense $420,872 for its proportionate share of the <br />General Employees Plan’s pension expense. In addition, the City recognized an additional $10,516 as pension expense <br />(and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General <br />Employees Fund. <br />75 121