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CITY OF ELK RIVER <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2019 <br />NOTE 12 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) <br />D. Changes in the Total OPEB Liability <br />Balance - December 31, 2018 <br />Changes for the Year: <br />Service Cost <br />Interest <br />Differences Between Expected and Actual Experience <br />Contributions - Employer <br />Net Investment Income <br />Benefit Payments <br />Changes in Assumptions <br />Net Changes <br />Balance - December 31, 2019 <br />Municipal <br />Utility <br />Retiree <br />Retiree <br />Health Plan <br />Health Plan <br />$ 916,510 <br />$ 100,572 <br />44,470 <br />12,750 <br />31,024 <br />3,751 <br />(87,455) <br />(3,832) <br />(42,048) <br />(27,862) <br />(81,871) <br />$ 834,639 <br />104,531 <br />117,200 <br />$ 217,772 <br />The following changes in assumptions and plan provisions occurred between the current <br />and prior valuations: <br />City - MRHP <br />• The discount rate was changed from 3.30% to 3.80%. <br />• The health care trend rates were changed to better anticipate short term and long <br />term medical increases. <br />• The mortality tables were updated from the RP-2014 White Collar Mortality <br />Tables with MP-2016 Generational Improvement Scale (with Blue Collar <br />adjustment for Police and Fire Personnel) to the RP-2014 White Collar Mortality <br />Tables with MP-2018 Generational Improvement Scale (with Blue Collar <br />adjustment for Police and Fire Personnel). <br />• The retirement and withdrawal tables for Police and Fire Personnel were <br />updated. <br />Utility - URHP <br />• The discount rate was changed from 3.31 % to 3.71 %. <br />• Mortality, withdrawal and salary scale updated to the rates used in the July 1, <br />2018 PERA of Minnesota Retirement Plan actuarial valuation to reflect recently - <br />published tables. <br />• Medical per capital claims costs were updated to reflect recent experience. <br />• The assumed retirement age was updated from 60 to 57 to reflect recent <br />experience. <br />• 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 <br />expectations. <br />• Health care trend rates were reset to reflect updated cost increase expectations, <br />including an adjustment to reflect the impact of the Affordable Care Act's Excise <br />Tax on high -cost health insurance plans. <br />(75) <br />