Laserfiche WebLink
89 <br />City of Elk River <br />Notes to Basic Financial Statements <br />NOTE 12 – PENSION PLANS (CONTINUED) <br />Public Employees' Retirement Association (Continued) <br />F.Actuarial Methods and Assumptions (Continued) <br />Actuarial assumptions for the General Employees Plan are reviewed every four years. The General <br />Employees Plan was last reviewed in 2022. The assumption changes were adopted by the Board and <br />became effective with the July 1, 2023, actuarial valuation. The Police and Fire Plan was reviewed in <br />2024. PERA anticipates the experience study will be approved by the Legislative Commission on <br />Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation. <br />The following changes in actuarial assumptions and plan provisions occurred in 2024: <br />General Employees Fund <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 />Police and Fire Fund <br />Changes in Plan Provisions <br />•The State contribution of $9.0 million per year will continue until the earlier of 1) both the <br />Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three <br />consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution <br />was previously due to expire after attaining a 90% funded status for one year. <br />•The additional $9.0 million contribution will continue until the Police and Fire Plan is fully <br />funded for a minimum of three consecutive years on an actuarial value of assets basis, or <br />July 1, 2048, whichever is earlier. This contribution was previously due to expire upon <br />attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, <br />2048 if earlier). <br />Page 279 of 637