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CITY OF PLEASANTON <br /> <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />FOR THE YEAR ENDED JUNE 30, 2022 <br /> <br />  <br />Note 11: Defined Benefit Pension Plan (Continued) <br /> <br />The amortization period differs depending on the source of the gain or loss: <br /> <br />Difference between projected and actual earnings on investments – 5 year straight-line <br />amortization. <br /> <br />All other amounts – Straight-line amortization over the average expected remaining <br />services lives of all members that are provided with benefits (active, inactive, and <br />retired) as of the beginning of the measurement period. <br /> <br />The expected average remaining service lifetime (EARSL) is calculated by dividing the <br />total future service years by the total number of plan participants (active, inactive, and <br />retired). Inactive employees and retirees have remaining service lifetimes equal to 0. <br />Total future service is based on the members’ probability of decrementing due to an <br />event other than receiving a cash refund. <br /> <br />For the year ended June 30, 2022, the City recognized pension expense of $5,985,777 for <br />the Miscellaneous Plan. At June 30, 2022, the City reported deferred outflows of <br />resources and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred <br />Outflows of <br />Resources <br />Deferred Inflows <br />of Resources <br />11,363,532$ -$ <br />Changes in assumptions - - <br />1,617,732 - <br />- 22,930,718 <br />Total 12,981,264$ 22,930,718$ <br />Pension contributions subsequent to measurement date <br />Differences between assumptions expected and actual <br />Net differences between projected and actual earnings on <br />plan investments <br /> <br /> <br />The $11,363,532 reported as deferred outflows of resources related to contributions <br />subsequent to the measurement date for the Miscellaneous Plan will be recognized as a <br />reduction of the net pension liability in the year ended June 30, 2023. Other amounts <br />reported as deferred outflows of resources and deferred inflows of resources related to <br />pensions will be recognized as pension expense as follows: <br /> <br />Year Ending <br />June 30 <br />Annual <br />Amortization <br />2023 (4,522,911)$ <br />2024 (5,014,743) <br />2025 (5,454,670) <br />2026 (6,320,662) <br />Total (21,312,986)$ <br /> <br />Actuarial assumptions and information regarding the discount rate are discussed in <br />Note 11e. <br />99