2020 Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020

NOTE 14 – PENSION PLANS (CONTINUED)

Defined Benefit Pension Plan – Volunteer Fire Fighter's Relief Association (Continued)

F. Changes in the Net Pension Liability (Asset)

Increase (Decrease)

Total Pension Liability

Plan Fiduciary Net Position (b)

Net Pension

Liability (Asset) (a) - (b)

(a)

Balances at January 1, 2020

3,081,191 $

4,512,945 $

(1,431,754) $

Changes for the year Service Cost Interest

163,476 96,150 162,011

- - -

(710,614) (269,203) 162,011 163,476 96,150

Change of Benefit Terms Contributions- State and Local

- -

269,203 710,614

Net Investment Income Benefit Payments, including refunds of

Employee Contributions Administrative Expense Other Additions

(258,740) - -

(258,740) (17,491) 1,964

-

17,491 (1,964)

Net Changes

162,897

705,550

(542,653)

Balances at December 31, 2020

3,244,088 $

5,218,495 $

(1,974,407) $

Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability (asset) of the City, calculated using the discount rate disclosed on the proceeding page, as well as what the City's net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate:

Discount Rate 1% Decrease in

Discount Rate 1% Increase in

Discount Rate

(4.25%)

(5.25%)

(6.25%)

City's proportionate share of the Relief net pension asset

$

(2,117,112)

$

(1,824,459)

$

(1,974,407)

Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued relief association financial report.

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