2023 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023

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

E. Net Pension Liability (Continued)

Target

Long-Term Expected Real Rate of Return

Asset Class

Allocation

Domestic Equity International Equity

0.0% 30.0% 15.0% 15.0% 40.0%

4.64% 1.05% 4.10% 3.54% -0.45%

Fixed Income

Real Estate and Alternatives

Cash and Equivalents

100.0%

Total

The discount rate used to measure the total pension liability was 4.5%. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected asset return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the municipal bond rate. The equivalent single rate is the discount rate. Discount rate

99