2021 Annual Comprehensive Financial Report

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

Defined Benefit Pension Plan – Volunteer Fire Fighter's Relief Association (Continued) NOTE 14 – PENSION PLANS (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, 2021

3,244,088 $

5,218,495 $

(1,974,407) $

Changes for the year Service Cost Interest Difference Between Expected and Actual Experience

- - - -

109,548 - 15,993 62,996 172,427 179,367

179,367 172,427

15,993

Change of Benefit Terms Changes of Assumptions Contributions- State and Local

109,548 62,996 (287,106) (459,053)

- 287,106 459,053 (16,808)

- -

Net Investment Income Administrative Expense

16,808

(189,020)

540,331

729,351

Net Changes

Balances at December 31, 2021

3,784,419 $

5,947,846 $

(2,163,427) $

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:

1% Decrease in Discount Rate

1% Increase in Discount Rate

Discount Rate

(3.75%)

(4.75%)

(5.75%)

the Relief net pension asset City's proportionate share of

$

(1,977,609)

$

(2,163,427)

$

(2,339,168)

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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