2023 Annual Comprehensive Financial Report

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

NOTE 14 – PENSION PLANS (CONTINUED) Public Employees' Retirement Association (Continued)

D. Pension Costs (Continued)

2. Police and Fire Fund Pension (PEPFF) Costs (Continued)

The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in fire state aid. The City recognized $42,741 for the year ended December 31, 2023 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund. At December 31, 2023, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources, from the following sources:

Deferred

Deferred Inflows of Resources

Outflows of Resources 10,116,215 $ 2,575,840

Net difference between projected and actual earnings on plan Changes in actuarial assumptions Differences between expected and actual experience

$

315,670

12,158,092

371,838 885,472

investments

-

Changes in proportion

189,740 556,710

Contributions to PEPFF subsequent to the measurement date

-

$ 13,438,505

$ 13,731,072

The $556,710 reported as deferred outflows of resources related to pensions resulting from City contributions 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 inflows of resources related to pensions will be recognized in pension expense on the following page.

December 31, Year Ending

Pension Expense

Amount

2025 2026 2027 2024 2028

$

231,177

1,809,601 (145,086) (710,273) (2,034,696)

Total

$

(849,277)

91