2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

NOTE 14 – PENSION PLANS (CONTINUED)

Public Employees' Retirement Association (Continued)

D. Pension Costs (Continued)

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

At December 31, 2024, 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: 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, 2024 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.

Deferred

Resources Inflows of Deferred

Resources Outflows of

Differences between expected and actual experience

$ 2,697,601

$

237,936

Changes in actuarial assumptions

7,385,212

9,738,823

Net difference between projected and actual earnings on plan

investments

-

2,040,500

Changes in proportion

705,473 66,898

691,593

Contributions to PEPFF subsequent to the measurement date

-

$ 10,855,184

$ 12,708,852

The $705,473 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, 2025. 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

2027 2028 2029 2026 2025

$

(2,428,515) (1,119,218) 1,400,656 (554,031)

141,967

Total

$

(2,559,141)

90