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)
3. Component Unit’s General Employees Fund Pension Costs (Continued)
$218,803 reported as deferred outflows of resources related to pensions resulting from Commission 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 below.
December 31, Year Ending
Pension Expense
Amount
2026 2027 2025 2028
$
(733,453) (125,026) (191,802) (368,008)
Total
$
(1,418,289)
E. Long-Term Expected Rate of Investment
The table State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized on the following page.
Target
Long-Term Expected Real Rate of Return
Asset Class
Allocation
Domestic Equity International Equity
25.0% 25.0% 16.5% 33.5%
0.75% 5.90% 5.30% 5.10%
Fixed Income Private Markets
Total
100.0%
92
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