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)

F. Changes in the Net Pension Liability (Asset)

Increase (Decrease)

Total Pension

Plan Fiduciary Net Position (b)

Net Pension

Liability

Liability (Asset)

(a)

(a) - (b)

Balances at January 1, 2023

$ 4,363,394

$ 6,783,807

$ (2,420,413)

Service Cost Interest Changes for the year

21,950 164,861 24,098 - 226,558 212,308

- - - - -

212,308 226,558 21,950 164,861 24,098 (350,310) 840,784

Difference Between Expected and Actual Experience

Change of Benefit Terms Changes of Assumptions

Contributions- State and Local Net Investment Income Benefit Payments, including refunds of

(18,422) (240,611) (840,784) 350,310

-

Administrative Expense Employee Contributions

(240,611)

-

-

18,422

Net Changes

409,164

(749,507)

1,158,671

Balances at December 31, 2023

$ 4,772,558

$ 6,034,300

$ (1,261,742)

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% Increase in Discount Rate

1% Decrease in Discount Rate

Discount Rate

(3.5%)

(4.5%)

(5.5%)

City's proportionate share of the Relief net

pension asset

$

(1,052,122)

$

(1,261,742)

$

(1,462,440)

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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