2023 Annual Comprehensive Financial Report

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

Public Employees' Retirement Association (Continued) NOTE 14 – PENSION PLANS (CONTINUED) D. Pension Costs (Continued) 1. General Employees Fund Pension Costs (Continued)

For the year ended December 31, 2023, the City recognized pension expense of $999,350 for its proportionate share of General Employees Fund’s pension expense. In addition, the City recognized an additional $785 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2023, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following

Deferred

Inflows of Resources Deferred

Outflows of Resources

Differences between expected and actual experience

$

344,627 1,086,810

$

125,767 1,817,200

Changes in actuarial assumptions

Net difference between projected and actual earnings on plan investments Changes in proportion Contributions to GERF subsequent to the measurement date

- 60,853 355,190

260,327 261,360

-

$ 1,847,480

$ 2,464,654

The $355,190 reported as deferred outflows of resources related to pensions resulting from City contributions to General Employees Fund subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

December 31, Year Ending

Pension Expense

Amount

$

79,900

2024 2025 2026 2027

(1,059,214) 144,391 (137,441)

$

(972,364)

Total

89