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97 <br />City of Elk River <br />Notes to Basic Financial Statements <br />NOTE 13 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) <br />D.Actuarial Assumptions <br />The total OPEB liability was determined by an actuarial valuation measured as of January 1, 2024, <br />using the following actuarial assumptions , applied to all periods included in the measurement , unless <br />otherwise specified: <br />Discount rate 3.70% <br />Salary increases Service graded table <br />Inflation 2.50% <br />Medical trend rate <br />Mortality assumption <br />6.25% in 2024, grading to 5.00% over 5 <br />years and then to 4.00% over the next <br />48 years <br />Key Methods and Assumptions Used in Valuation of Total OPEB Liability <br />Pub-2010 Public Retirement Plans <br />Headcount-Weighted Mortality Tables <br />(General, Safety) with MP-2021 <br />Generational Improvement Scale <br />The actuarial assumptions used in the January 1, 2023, valuation were based on the results of an <br />actuarial experience study for the period January 1 , 2022, to December 31, 2022. <br />Changes in Actuarial Assumptions <br />•The discount rate was changed from 4.00% to 3.70% based on updated 20 -year municipal bond <br />rates. <br />E.Total OPEB Liability <br />The City's total OPEB liability of $872,152 was measured as of January 1, 2024, and was determined <br />by an actuarial valuation as of January 1, 2023. <br />Page 287 of 637