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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 $2,002,030 for <br />the Safety (Fire) Plan. At June 30, 2022, the City reported deferred outflows of resources <br />and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred <br />Outflows of <br />Resources <br />Deferred <br />Inflows of <br />Resources <br />Pension contributions subsequent to measurement date 4,340,543$ -$ <br />Changes in assumptions - 20,652 <br />Differences between expected and actual experience 274,093 878,880 <br />- 8,913,265 <br />Total 4,614,636$ 9,812,797$ <br />Safety (Fire) <br />Net differences between projected and actual earnings <br />on plan investments <br /> <br /> <br />The $4,340,543 reported as deferred outflows of resources related to contributions <br />subsequent to the measurement date for the Safety (Fire) Plan (City of Pleasanton only) will <br />be recognized as a reduction of the net pension liability in the year ended <br />June 30, 2023. Other amounts reported as deferred outflows of resources and deferred <br />inflows of resources related to pensions will be recognized as pension expense as <br />follows: <br />Year Ending <br />June 30 <br />Annual <br />Amortization <br />2023 (2,336,492)$ <br />2024 (2,297,990) <br />2025 (2,340,300) <br />2026 (2,563,922) <br />Total (9,538,704)$ <br />Safety (Fire) <br /> <br /> <br />Actuarial assumptions and information regarding the discount rate are discussed in <br />Note 11e. <br />105