CITY OF LAGUNA NIGUEL NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Pension Expense and Deferred Outflows and Inflows of Resources (Continued) $1,078,149 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Miscellaneous Fiscal Year Ending June 30, Plan 2025 $ 884,111 2026 715,284 2027 1,168,230 2028 34,219 Total $ 2,801,844 Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.90%) or 1-percentage-point higher (7.90%) than the current rate: 1% Decrease to Current Discount 1% Increase to Discount Rate Discount Rate Discount Rate (5.90%) (6.90%) (7.90%) Plan's Net Pension Liability (Asset) $ 13,892,108 $ 7,365,509 $ 1,993,558 Pension Plan Fiduciary Net Position Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS’ financial report and can be obtained from CalPERS’ website under Forms and Publications. Payable to the Pension Plan At June 30, 2024, the City had no outstanding amount of contributions to the miscellaneous cost-sharing pension plans required for the year ended June 30, 2024. (67)