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City of Elk River <br />Notes to Basic Financial Statements <br />NOTE 12 — POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) <br />C. Members <br />As of December 31, 2020, the following were covered by the benefit terms: <br />Active employees electing coverage <br />Retirees receiving payments <br />Spouses receiving payments <br />Total <br />126 <br />7 <br />2 <br />135 <br />E. Actuarial Assumptions <br />The total OPEB liability was determined by an actuarial valuation measured as of January 1, 2021, using <br />the following actuarial assumptions, applied to all periods included in the measurement, unless <br />otherwise specified: <br />Key Methods and Assumptions Used in Valuation of Total OPEB Liability <br />Discount rate <br />Salary increases <br />Inflation <br />Medical trend rate <br />Mortality assumption <br />2.00% <br />Service graded table <br />2.00% <br />6.50% as of January 1, 2021, grading to <br />5.00% over 6 years and then to 4.00% over <br />the next 48 years <br />Pub-2010 Public Retirement Plans <br />Headcount -Weighted Mortality Tables <br />(General, Safety) with MP-2020 <br />Generational Improvement Scale <br />The actuarial assumptions used in the December 31, 2021, valuation were based on the results of an <br />actuarial experience study for the period January 1, 2021 to December 31, 2021. <br />The discount rate used to measure the total OPEB liability was 2.00% based on 20-year municipal bond <br />rates. <br />F. Total OPEB Liability <br />The City's total OPEB liability of $870,444 was measured as of January 1, 2021, and was determined by <br />an actuarial valuation as of that date. <br />•e <br />