2023 Annual Comprehensive Financial Report

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

D. Pension Costs (Continued) Public Employees' Retirement Association (Continued) NOTE 14 – PENSION PLANS (CONTINUED) 3. Component Unit’s General Employees Fund Pension Costs

At December 31, 2023, the Commission reported a liability of $4,003,792 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 $110,260. The net pension liability was measured as of June 30, 2023, 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, 2022, through June 30, 2023, relative to the total employer contributions received from all of PERA's participating employers. The Commission's proportion share was 0.0716 percent at the end of the measurement period and 0.0668 percent for the beginning of the period.

Commissions' proportionate share of the net pension liability

$

4,003,792 110,260

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

Total

$

4,114,052

For the year ended December 31, 2023, the Commission recognized pension expense of $716,045 for its proportionate share of General Employees Fund's pension expense. At December 31, 2023, 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.

Deferred Outflows of Resources

Resources Inflows of Deferred

Differences between expected and actual experience

$

131,486 648,158

$

27,582

Changes in actuarial assumptions

1,097,406

Net difference between projected and actual earnings on plan

149,728 66,903

investments

-

Changes in proportion

311,998 210,386

Contributions to GERF subsequent to the measurement date

-

$ 1,302,028

$ 1,341,619

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