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City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2022 <br />Note 4: Defined Benefit Pension Plans - Statewide (Continued) <br />As a result, the State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan <br />Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension <br />allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need to recognize their <br />proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding <br />situation accounting and financial reporting requirements For the year ended December 31, 2022, City recognized pension <br />expense of $786,500 for its proportionate share of the Police and Fire Fund’s pension expense. In addition, the City <br />recognized an additional $82,358 as pension expense (and grant revenue) for its proportionate share of the State of <br />Minnesota’s contribution of $9 million to the Police and Fire Fund. <br />At December 31, 2022, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of <br />resources and deferred inflows of resources from the following sources: <br />Deferred Deferred <br />Outflows Inflows <br />of Resources of Resources <br />Differences Between Expected and <br />Actual Economic Experience 585,047$ 8,782$ <br />Changes in Actuarial Assumptions 5,657,646 84,684 <br />Net Difference Between Projected and <br />Actual Earnings on Plan Investments 241,555 - <br />Changes in Proportion 111,894 95,619 <br />Contributions to PEPFP Subsequent <br />to the Measurement Date 239,927 - <br /> Total 6,836,069$ 189,085$ <br />The $239,927 reported as deferred outflows of resources related to pensions resulting from the City’s contributions <br />subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended <br />December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be <br />recognized in pension expense as follows: <br />1,251,723$ <br />1,250,517 <br />1,103,908 <br />1,992,064 <br />808,845 <br />2023 <br />2024 <br />2025 <br />2026 <br />2027 <br />77 123