2019 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019

NOTE 14 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued) D. Pension Costs (Continued)

For the year ended December 31, 2019, the City recognized pension expense of $842,889 for its proportionate share of General Employees Fund’s pension expense. In addition, the City recognized an additional $13,667 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2019, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, related to pensions from the sources as follows.

Deferred

Resources Inflows of Deferred

Resources Outflows of

$

288,996 - 282,289 163,118 12,719

Contributions to GERF subsequent to the measurement date Differences between expected and actual experience Changes in actuarial assumptions Net difference between projected and actual earnings on plan investments Changes in proportion

$

23,337 462,718 573,306 - -

747,122 Deferred outflows of resources totaling $288,996 related to pensions resulting from City contributions to General Employees Fund subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 1,059,361 $ $

Pension Expense

Year Ending December 31,

Amount

2020 2021 2022 2023 Total

$

(119,900) (403,994) (86,803) 9,462

$

(601,235)

79