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City of Elk River <br />Notes to Required Supplementary Information <br />Police and Fire Fund <br />2022 Changes <br />Changes in Actuarial Assumptions <br />• The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. <br />• The single discount rate was changed from 6.5% to 5.4%. <br />Changes in Plan Provisions <br />There have been no changes since the prior valuation. <br />2021 Changes <br />Changes in Actuarial Assumptions <br />• The investment return and single discount rates were changed from 7.5% to 6.5% for financial <br />reporting purposes. <br />• The inflation assumption was changed from 2.5% to 2.25%. <br />• The payroll growth assumption was changed from 3.25% to 3.0%. <br />• The base mortality table for healthy annuitants and employees was changed from the RP-2014 <br />table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was <br />changed from MP-2019 to MP-2020. <br />• The base mortality table for disabled annuitants was changed from the RP-2014 healthy <br />annuitant mortality table (with future mortality improvement according to scale MP-2019) to the <br />Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement <br />according to scale MP-2020). <br />• Assumed rates of salary increase were modified as recommended in the July 14, 2020, <br />experience study. The overall impact is a decrease in gross salary increase rates. <br />• Assumed rates of retirement were changed as recommended in the July 14, 2020, experience <br />study. The changes resulted in slightly more unreduced retirements and fewer assumed early <br />retirements. <br />• Assumed rates of withdrawal were changed from select and ultimate rates to service -based rates. <br />The changes resulted in more assumed terminations. <br />• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. <br />Overall, proposed rates resulted in more projected disabilities. <br />• Assumed percent married for active female members was changed from 60% to 70%. Minor <br />changes to form of payment assumptions were applied. <br />Changes in Plan Provisions <br />• There have been no changes since the prior valuation. <br />2020 Changes <br />Changes in Actuarial Assumptions <br />• The mortality projection scale was changed from MP-2018 to MP-2019. <br />Changes in Plan Provisions <br />• There have been no changes since the prior valuation. <br />110 <br />