Page 96 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 8. Employee Pension Plan (Continued)
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2025, the City recognized pension expense of $11,206,430
principally paid by General Fund and the Electric Utility. At June 30, 2025, the City reported
deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date (1) $ 3,908,584 $ -
Differences Between Expected and Actual Experience 1,651,207 -
Net Difference Between Projected and Actual Earnings on
Pension Plan Investments 2,551,600 -
$ 8,111,391 $ -

(1) Contributions made after the measurement date will be recognized as a reduction of the net pension liability or
collective net pension liability in the following fiscal period, rather than in the current period.
Amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:

Fiscal Year Ending
June 30
2026 $ 1,002,061
2027 5,062,061
2028 (827,032)
2029 (1,034,283)
2030 -

As of June 30, 2025, the City did not have outstanding amount of contributions to the
pension plan required for the year ended June 30, 2025.

e. Amortization of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to changes in total pension liability and fiduciary net position are
recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss
occurs. The remaining amounts are categorized as deferred outflows and deferred inflows
of resources related to pensions and are to be recognized in future pension expenses.

The amortization period differs depending on the source of the gain or loss:

Net Difference between projected 5 year straight-line amortization
and actual earnings on pension plan
investments

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