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IV-43CITY OF ELK RIVER SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS-MUNICIPAL RETIREES HEALTH PLAN (CONTINUED) DECEMBER 31, 2019 Changes in Benefits and Assumptions 2019: 2018: Changes in Benefit Terms: • There were no significant changes in benefit terms. Changes in Assumptions • The discount rate was changed from 3.30% to 3.80%. • The health care trend rates were changed to better anticipate short term and long term medical increases. • The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP-2016 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel) to the RP-2014 White Collar Mortality Tables with MP-2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel). • The retirement and withdrawal tables for Police and Fire Personnel were updated. Changes in Benefit Terms: • There were no significant changes in benefit terms. Changes in Assumptions • The discount rate was changed from 3.50% to 3.30%. CITY OF ELK RIVER SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS -UTILITIES RETIREES HEALTH PLAN DECEMBER 31, 2019 Total OPEB Liability: Service Cost Interest Changes in Assumptions Differences Between Expected and Actual Experience Net Change in Total OPEB Liability Total OPEB Liability-Beginning Total OPEB Liability-Ending Total OPEB Liability Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability Covered Employee Payroll City's Total OPEB Liability as a Percentage of the Covered Employee Payroll $ ! $ $ 2019 12,750 $ 3,751 104,531 (3,832) 2018 11,084 3,526 4,509 117,200 19,119 100,572 81,453 ~ $ 100,572 217,772 $ 0.00% 3,547,495 $ 6.14% 100,572 0.00% 3,584,096 2.81% Note: The Utillties implemented GASB Statement No. 75 in fiscal year 2018. The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and Is Intended to show a ten-year trend. Additional years will be reported as they become available. Valuation Date: Measurement Date: January 1, 2019 Oecember 31, 2019 Methods and Assumptions Used to Detennine the Contibution Rates: Actuarial Cost Method Entry Age Amortization Method Level Percentage of Payroll, Closed Amortization Period Inflation: Healthcare cost trend rate Salary increases and Mortality Discount rate Average of expected remaining service on a closed basis for differences between expected and actual experience and assumption changes. 2.50% 6.40% as of January 1, 2019, gradually decreasing over several decades to an ulitmate rate of 4.00% in 2076 and later years. Mortality, withdrawal and salary scale updated to the rates used in the July 1, 2018 PERA of Minnesota Retirement Plan actuarial valuation to reflect recentiy-published tables. 3.71% • No assets were placed in a trust for the payment of OPEB. 191