2021 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021

NOTE 14 – PENSION PLANS (CONTINUED)

Component Unit’s General Employees Fund Pension Costs Public Employees' Retirement Association (Continued) D. Pension Costs (Continued)

For the year ended December 31, 2021, the Commission recognized pension expense of $587 for its proportionate share of General Employees Fund's pension expense. At December 31, 2021, the Commission reported a liability of $2,707,464 for its proportionate share of the General Employees Fund's net pension liability. The Commission's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non- employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the Commission totaled $82,761. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Commission's proportion of the net pension liability was based on the Commission's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2020, through June 30, 2021, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2021, the Commission's proportion share was 0.0634 percent, which was a decrease of 0.0044 percent from its proportion measured as of June 30, 2020. At December 31, 2021, the Commission reported its proportionate share of General Employees Fund's deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, from the following sources are below. Deferred

Deferred Outflows of Resources

Inflows of Resources

Differences between expected and actual experience

$

16,635

$

82,857 59,891

Changes in actuarial assumptions

1,653,121

Net difference between projected and actual earnings on plan

investments

-

2,344,778 210,046

Changes in proportion

124,225 178,266

Contributions to GERF subsequent to the measurement date

-

1,972,247 $

2,697,572 $

82