6.4 SR 06-16-2025 - Laserfiche WebLink

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City of Elk River Notes to Required Supplementary Information 119 Police and Fire Fund (Continued) 2018 Changes (Continued) Changes in Plan Provisions (Continued) •Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. •Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions •Assumed salary increases were changed as recommended in the June 30, 2016, experience study. The net effect is proposed rates that average 0.34% lower than the previous rates. •Assumed rates of retirement were changed, resulting in fewer retirements. •The CSA load was 30% for vested and non -vested deferred members. The CSA has been changed to 33% for vested members and 2% for non -vested members. •The base mortality table for healthy annuitants was changed from the RP -2000 fully generational table to the RP -2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. •Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. •Assumed percentage of married female members was decreased from 65% to 60%. •Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. •The assumed percentage of female members electing Joint and Survivor annuities was increased. •The assumed annual benefit increase rate was changed from 1% for all years to 1% per year through 2064 and 2.5% thereafter. •The single discount rate was changed from 5.6% per annum to 7.5% per annum. Changes in Plan Provisions •There have been no changes since the prior valuation. 2016 Changes Changes in Actuarial Assumptions •The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. •The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. •The single discount rate changed from 7.90% to 5.60%. •The assumed future salary increases, payroll growth, and inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions •There have been no changes since the prior valuation. Page 309 of 637