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<br />46 <br />Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions. <br />For the year ended June 30, 2015, the City recognized negative pension expense of <br />$2,169,905. At June 30, 2015, the City reported deferred outflows of resources and deferred <br />inflows of resources related to pensions from the following sources: <br /> <br /> Deferred Outflows <br />of Resources <br />Deferred Inflows of <br />Resources <br />Pension contributions subsequent to measurement <br />date $8,746,787 –– <br />Differences between actual and expected <br />experience –– –– <br />Changes in assumptions –– –– <br />Change in employer’s proportion of differences <br />between the employer’s contributions and the <br />employers proportionate share of contributions 1,176,957 –– <br />Net differences between projected and actual <br />earnings on plan investments –– ($28,248,128) <br />Total $9,923,744 ($28,248,128) <br /> <br />The $8,746,787 reported as deferred outflows of resources related to contributions <br />subsequent to the measurement date will be recognized as a reduction of the net pension <br />liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of <br />resources and deferred inflows of resources related to pensions will be recognized as pension <br />expense as follows: <br /> <br />Year Ended <br />June 30 <br />Annual <br />Amortization <br />2015 ($6,641,690) <br />2016 (6,641,690) <br />2017 (6,725,759) <br />2018 (7,062,032) <br />Recent CalPERS Actions. At its April 17, 2013, meeting, CalPERS’ Board of <br />Administration (the “Board of Administration”) approved a recommendation to change the <br />CalPERS amortization and smoothing policies. Prior to this change, CalPERS employed an <br />amortization and smoothing policy that spread investment returns over a 15–year period with <br />experience gains and losses paid for over a rolling 30–year period. After this change, CalPERS <br />will employ an amortization and smoothing policy that will pay for all gains and losses over a <br />fixed 30–year period with the increases or decreases in the rate spread directly over a 5–year <br />period. The new amortization and smoothing policy was used for the first time in the June 30, <br />2013, actuarial valuations in setting employer contribution rates for Fiscal Year 2015–16. <br /> <br />On February 18, 2014, the CalPERS Board approved new demographic actuarial <br />assumptions based on a 2013 study of recent experience. The largest impact, applying to all <br />benefit groups, is a new 20–year mortality projection reflecting longer life expectancies and that <br />longevity will continue to increase. Because retirement benefits will be paid out for more years, <br />the cost of those benefits will increase as a result. The Board of Administration also assumed <br />earlier retirements for Police 3%@50, Fire 3%@55, and Miscellaneous 2.7%@55 and 3%@60, <br />which will increase costs for those groups. As a result of these changes, rates will increase <br />beginning in Fiscal Year 2016–17 (based on the June 30, 2014 valuation) with full impact in <br />fiscal year 2020–21. <br /> <br />On November 18, 2015, the CalPERS Board adopted a funding risk mitigation policy <br />intended to incrementally lower its discount rate – its assumed rate of investment return – in