6.3. SR 06-15-2020 - Laserfiche WebLink

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CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 12 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) C. Total OPEB Liability The City's (MRHP) total OPEB liability was measured as of January 1, 2019, and the Utilities total OPEB liability was measured as of December 31, 2019. The total OPEB liability in the January 1, 2019 actuarial valuations of the City and the Utilities were determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Valuation Date: Measurement Date: Methods and Assumptions Used to Determine the Contibution Rates: Actuarial Cost Method Amortization Method Amortization Period Inflation Healthcare cost trend rate Salary increases Discount rate Mortality City of Elk River Elk River Municipal Utilities January 1, 2019 January 1, 2019 January 1, 2019 December 31, 2019 Entry Age Level Percentage of Payroll, Closed Average of expected remaining service on a closed basis for differences between expected and actual experience and assumption changes. 2.50% 6.50% as of January 1, 2019 grading to 5.00% over 6 years. 3.00% 3.80% RP-2014 White Collar Mortality Tables with MP-2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel) Entry Age Level Percentage of Payroll, Closed Average of expected remaining service on a closed basis for differences between expected and actual experience and assumption changes. 2.50% 6.40% for 2019, grading to 4.00% in 2076 and later years . Salary scale updated to the rates used in the July 1, 2018 PERAof Minnesota Retirement Plan actuarial valuation to reflect recently -published tables. 3.71 % RP-2014 Mortality Tables with projected mortality improvements based on scale MP-2017, and other adjustments. The discount rates used to measure the total OPEB liability of the City and Utilities were 3.80% and 3.71 %, respectively. The actuarial assumption used in the January 1, 2019 valuations were based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. No assets were placed in a trust for the payment of OPEB. (74)