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City of Elk River <br />Notes to Required Supplementary Information <br /> <br /> <br /> 114 <br />General Employees Fund (Continued) <br /> <br />2020 Changes (Continued) <br />Changes in Actuarial Assumptions (Continued) <br />• Assumed salary increase rates were changed as recommended in the June 30, 2019, <br />experience study. The net effect is assumed rates that average 0.25% less than previous <br />rates. <br />• Assumed rates of retirement were changed as recommended in the June 30, 2019, experience <br />study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of <br />90 and early retirements. <br />• Assumed rates of termination were changes as recommended in the June 30, 2019, <br />experience study. The new rates are based on service and are generally lower than the <br />previous rates for years 2-5 and slightly higher thereafter. <br />• Assumed rates of disability were changed as recommended in the June 30, 2019, experience <br />study. The change results in fewer predicted disability retirements for males and females. <br />• The base mortality table for healthy annuitants and employees was changed from the RP -2014 <br />table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for <br />disabled annuitants was changed from the RP -2014 disabled annuitant mortality table to the <br />Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments. <br />• The mortality improvement scale was changed from Scale MP -2018 to Scale MP-2019. <br />• The assumed spouse age difference was changed from two years older for females to one year <br />older. <br />• The assumed number of married male new retirees electing the 100% Joint and Survivor <br />option changed from 35% to 45%. The assumed number of married female new retires electing <br />the 100% Joint and Survivor option changed from 15% to 30%. The corresponding number of <br />married new retirees electing the Life annuity option was adjusted accordingly. <br />Changes in Plan Provisions <br />• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 <br />through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for <br />privatizations occurring after June 30, 2020. <br /> <br />2019 Changes <br />Changes in Actuarial Assumptions <br />• The mortality projection scale was changed from MP-2017 to MP-2018. <br />Changes in Plan Provisions <br />• The employer supplemental contribution was changed prospectively, decreasing from $31.0 <br />million to $21.0 million per year. The State's special funding contribution was changed <br />prospectively, requiring $16.0 million due per year through 2031. <br /> <br />2018 Changes <br />Changes in Actuarial Assumptions <br />• The mortality projection scale was changed from MP-2015 to MP-2017. <br />• The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per <br />year thereafter to 1.25% per year. <br />Changes in Plan Provisions <br />• The augmentation adjustment in early retirement factors is eliminated over a five -year period <br />starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. <br />• Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, <br />2018. <br /> <br />Page 304 of 637