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Elk River Municipal Utilities <br />Elk River, Minnesota <br />Required Supplementary Information (Continued) <br />For the Year Ended December 31, 2019 <br />Schedule of Changes in the Employer's OPEB Liability and Related Ratios <br />20192018 <br />Total OPEB Liability <br />Service cost$12,750$11,084 <br />Interest3,7513,526 <br />Differences between expected and actual experience(3,832)- <br />Changes in assumptions104,5314,509 <br />Net Change in Total OPEB Liability117,20019,119 <br />Total OPEB Liability - Beginning100,57281,453 <br />Total OPEB Liability - Ending$217,772$100,572 <br />Covered - employee payroll$3,547,495$3,584,096 <br />Utilities' total OPEB liability as a percentage of <br />covered employee payroll %6.14 %2.81 <br />Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. <br />Changes in Plan Provisions <br />2019 - No changes identified <br />2018 - No changes identified <br />Changes in Actuarial Assumptions <br />2019 - The discount rate was changed from 3.31% to 3.71%. Mortality, withdrawal and salary scale updated to the rates <br />used in the July 1, 2018 PERA of Minnesota Retirement Plan actuarial valuation to reflect recently-published tables. <br />Medical per capita claims costs were updated to reflect recent experience. The assumed retirement age was updated <br />from 60 to 57 to reflect recent experience. The inflation assumption was changed from 2.75% to 2.50% based on an <br />updated historical analysis of inflation rates and forward-looking market expectations. Health care trend rates were reset <br />to reflect updated cost increase expectations, including an adjustment to reflect the impact of the Affordable Care Act's <br />Excise Tax on high-cost health insurance plans. <br />2018 - The discount rate was changed from 3.81% to 3.31%. Health care trend rates were reset to reflect updated cost <br />increase expectations, including an adjustment to reflect the impact of the Affordable Care Act's Excise Tax on high-cost <br />health insurance plans. Medical per capita claims costs were updated to reflect recent experience. Withdrawal rates were <br />updated from the Small Plan age-based table in the 2003 SOA Turnover, adjusted by 50% to the rate used in the <br />7/1/2017 PERA General Employees Retirement Plan valuation. The salary scale assumption was changed from a flat rate <br />of 3.25% to the rates used in the7/1/2017 PERA General Employees Retirement Plan valuation. <br />52 <br />142 <br />