6.4 SR 06-06-2022 - Laserfiche WebLink

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City of Elk River Notes to Required Supplementary Information Post Employment Health Care Plan 2021 Changes Changes in Actuarial Assumptions • The discount rate was changed from 2.90% to 2.00% based on updated 20-year municipal bond rates. • The inflation rate changed from 2.50% to 2.00%. • 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 Mortality Tables (Blue Collar for Public Safety, White Collar for Others) with MP-2018 Generational Improvement Scale to the Pub- 2010 Public Retirement Plans Headcount -Weighted Mortality Tables (General, Safety) with MP- 2020 Generational Improvement Scale. • The retirement and withdrawal rates for non-public safety employees were updated. • The salary increase rates were changed from a flat 3.00% per year for all employees to rates which vary by service and contract group. 2020 Changes Changes in Actuarial Assumptions • The discount rate was changed from 3.80% to 2.90% based on updated 20-year municipal bond rates. 2019 Changes Changes in Actuarial Assumptions • The discount rate was changed from 3.30% to 3.80% based on updated 20-year municipal bond rates. • 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). 2018 Changes Changes in Actuarial Assumptions • The discount rate was changed from 3.50% to 3.30% based on updated 20-year municipal bond rates. 116