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<br /> 89 <br />City of Elk River <br />Notes to Basic Financial Statements <br /> <br /> <br />NOTE 12 – PENSION PLANS (CONTINUED) <br /> <br />Public Employees' Retirement Association (Continued) <br /> <br />F. Actuarial Methods and Assumptions (Continued) <br />Actuarial assumptions for the General Employees Plan are reviewed every four years. The most <br />recent four-year experience study for the General Employees Plan was completed in 2022. The <br />assumption changes were adopted by the Board and became effective with the July 1, 2023, <br />actuarial valuation. The most recent four-year experience study for the Police and Fire Plan was <br />completed in 2020 and was adopted by the Board and became effective with the July 1, 2021, <br />actuarial valuation. <br /> <br />The following changes in actuarial assumptions and plan provisions occurred in 2023: <br /> <br />General Employees Fund <br /> <br />Changes in Actuarial Assumptions <br /> The investment return assumption and single discount rate were changed from 6.5% to 7.0%. <br />Changes in Plan Provisions <br /> An additional one-time direct state aid contribution of $170.1 million will be contributed to <br />the Plan on October 1, 2023. <br /> The vesting period of those hired after June 30, 2010, was changed from five years of <br />allowable service to three years of allowable service. <br /> The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. <br /> A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will <br />be payable in a lump sum for calendar year 2024 by March 31, 2024. <br /> <br />Police and Fire Fund <br /> <br />Changes in Actuarial Assumptions <br /> The investment return assumption and single discount rate were changed from 6.5% to 7.0%. <br /> The single discount rate changed from 5.4% to 7.0%. <br />Changes in Plan Provisions <br /> Additional one-time direct state aid contribution of 19.4 million will be contributed to the <br />Plan on October 1, 2023. <br /> Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year <br />vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, <br />increasing incrementally to 100% after 10 years. <br /> A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for <br />calendar year 2024 by March 31, 2024. <br /> Psychological treatment is required effective July 1, 2023, prior to approval for a duty <br />disability benefit for a psychological condition relating to the member's occupation. <br /> The total and permanent duty disability benefit was increased, effective July 1, 2023. <br /> <br />Page 210 of 464