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City of Elk River <br />Notes to Required Supplementary Information <br />113 <br />General Employees Fund <br />2024 Changes <br />Changes in Actuarial Assumptions <br />•Rates of merit and seniority were adjusted, resulting in slightly higher rates. <br />•Assumed rates of retirement were adjusted as follows: increase the rate of assumed <br />unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight <br />adjustments to early retirement rates for Tier 1 and Tier 2 members. <br />•Minor increase in assumed withdrawals for males and females. <br />•Lower rates of disability. <br />•Continued use of Pub-2010 general mortality table with slight rate adjustments as <br />recommended in the most recent experience study. <br />•Minor changes to form of payment assumptions for male and female retirees. <br />•Minor changes to assumptions made with respect to missing participant data. <br />Changes in Plan Provisions <br />•The workers' compensation offset for disability benefits was eliminated. The actuarial <br />equivalent factors updated to reflect the changes in assumptions. <br />2023 Changes <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 was contributed to the <br />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 />2022 Changes <br />Changes in Actuarial Assumptions <br />•The mortality improvement scale was changed from scale MP -2020 to scale MP-2021. <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 mortality improvement scale was changed from scale MP -2019 to scale MP-2020. <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 price inflation assumption was decreased from 2.5% to 2.25%. <br />•The payroll growth assumption was decreased from 3.25% to 3.0%. <br />Page 303 of 637