2022 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022

2. Police and Fire Fund Pension (PEPFF) Costs (Continued) Public Employees' Retirement Association (Continued) NOTE 13 – PENSION PLANS (CONTINUED) D. Pension Costs (Continued)

Pension Expense

Amount

Year Ending December 31,

2024 2025 2023 2022

$

2,822,254 2,445,990 2,783,374 4,400,677 1,805,607

$ 3. Component Unit’s General Employees Fund Pension Costs Total 2026

14,257,902

At December 31, 2022, the Commission reported a liability of $5,290,582 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 $155,198. The net pension liability was measured as of June 30, 2022, 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, 2021, through June 30, 2022, relative to the total employer contributions received from all of PERA's participating employers. The Commission's proportion share was 0.0668 percent at the end of the measurement period and 0.0634 percent for the beginning of the period.

Commissions' proportionate share of the net pension liability

$

5,290,582 155,198

State of Minnesota's proportionate share of the net pension liability associated with the Commission

Total

$

5,445,780

At December 31, 2022, 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 on the following page. For the year ended December 31, 2022, the Commission recognized pension expense of $729,766 for its proportionate share of General Employees Fund's pension expense.

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