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Elk River Municipal Utilities
<br />Elk River, Minnesota
<br />Required Supplementary Information (Continued)
<br />For the Year Ended December 31, 2024
<br />Notes to the Required Supplementary Information - General Employees Fund (Continued)
<br />Chanaes in Actuarial Assumptions (Continued)
<br />2015 - The assumed post -retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5
<br />percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter.
<br />Changes in Plan Provisions
<br />2024 - The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated
<br />to reflect the changes in assumptions.
<br />2023 - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on
<br />October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service
<br />to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was
<br />eliminated. A one-time, non -compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be
<br />payable in a lump sum for calendar year 2024 by March 31, 2024.
<br />2022 - There were no changes in plan provisions since the previous valuation.
<br />2021 - There were no changes in plan provisions since the previous valuation.
<br />2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
<br />December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020.
<br />2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0
<br />million per year. The state's special funding contribution was changed prospectively, requiring $16.0 million due per year
<br />through 2031.
<br />2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019,
<br />resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00
<br />percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective
<br />January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
<br />provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to
<br />increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of
<br />Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements
<br />on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not
<br />apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect
<br />revised mortality and interest assumptions.
<br />2017 - The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018,
<br />and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
<br />changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state's contribution changed from
<br />$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
<br />2016 - There were no changes in plan provisions since the previous valuation.
<br />2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund,
<br />which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million.
<br />Upon consolidation, state and employer contributions were revised; the State's contribution of $6 million, which meets the
<br />special funding situation definition, was due September 2015.
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