2021 Annual Comprehensive Financial Report

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

NOTE 14 – PENSION PLANS (CONTINUED)

G. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the City recognized pension expense of $263,481. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Defined Benefit Pension Plan – Volunteer Fire Fighter's Relief Association (Continued)

Deferred

Deferred Inflows of Resources

Outflows of Resources

Difference between expected and actual liability Contributions paid subsequent to the measurement date

$

171,269 14,390 306,082

$

-

63,999

Changes in assumptions

-

Net difference between projected and actual earnings on

pension plan investments

-

287,981

$

491,741

$

351,980

$306,082 reported as deferred outflows of resources related to pensions resulting from State contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Pension Expense

Year Ending December 31, 2022 2023

Amount

$

(96,152)

(765)

2024 2025 2026

58,418 16,484 (24,321) (119,985)

Thereafter

Total

$

(166,321)

H. Payable to the Pension Plan

At December 31, 2021, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended December 31, 2021.

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