2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

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

D. Pension Costs (Continued)

3. Component Unit’s General Employees Fund Pension Costs

At December 31, 2024, the Commission reported a liability of $2,502,508 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 $64,710. The net pension liability was measured as of June 30, 2024, 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, 2023, through June 30, 2024, relative to the total employer contributions received from all of PERA's participating employers. The Commission's proportion share was 0.0677 percent at the end of the measurement period and 0.0716 percent for the beginning of the period.

Commissions' proportionate share of the net pension liability

$

2,502,508

64,710

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

Total

$

2,567,218

At December 31, 2024, 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 below. For the year ended December 31, 2024, the Commission recognized pension expense of $212,399 for its proportionate share of General Employees Fund's pension expense.

Deferred Outflows of Resources

Resources Inflows of Deferred

Differences between expected and actual experience

$

235,302

$

-

Changes in actuarial assumptions

12,218

947,158

Net difference between projected and actual earnings on plan

investments

-

726,708 184,186

Changes in proportion

192,243 218,803

Contributions to GERF subsequent to the measurement date

-

$

658,566

$ 1,858,052

91