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) Proportionate Share of Net Pension Liability As of the fiscal year ended June 30, 2024, the City reported a net pension liability for its proportionate share of the collective net pension liability of the miscellaneous plan of $7,365,509. The City’s net pension liability for the miscellaneous plan is measured as the proportionate share of the net pension liability. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Safety Plan as of the measurement dates ended June 30, 2022 and 2023, were as follows: Miscellaneous Proportion - June 30, 2022 (MD) 0.24302 % Proportion - June 30, 2023 (MD) 0.14730 Change - Increase (Decrease) (0.09572)% Pension Expense and Deferred Outflows and Inflows of Resources For the year ended June 30, 2024, the City recognized pension expense in the amount of $2,540,356. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Changes in Assumptions $ 444,689 $ - Differences Between Expected and Actual Experience 376,270 58,369 Differences Between Expected and Actual Investment Earnings 1,192,542 - Differences between Employer's Contributions and Proportionate Share of Contributions 3,302,143 293,104 Change in Employer's Proportion 202,604 2,364,931 Pension Contributions Made Subsequent to Measurement Date 1,078,149 - Total $ 6,596,397 $ 2,716,404 (66)