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CITY OF LINO LAKES, MINNESOTA <br />REQUIRED SUPPLEMENTARY INFORMATION <br />NOTES TO RSI <br />December 31, 2019 <br /> <br /> <br /> <br /> <br />Note A LEGAL COMPLIANCE – BUDGETS <br /> <br />The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted <br />in the United States of America. The legal level of budgetary control is at the department level for the General <br />Fund. <br /> <br /> <br />Note B OPEB INFORMATION <br /> <br />No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay <br />related benefits. The previous actuarial valuation included a liability for benefits provided to the beneficiary of <br />a deceased employee. As of the most recent actuarial valuation date, the beneficiary was not enrolled in the <br />City’s plan, but has been assigned a 20% probability of returning to the plan. <br /> <br /> <br />Note C PENSION INFORMATION <br /> <br />PERA – General Employees Retirement Fund <br /> <br />2019 Changes in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2017 to MP-2018 <br />2019 Changes in the 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 in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2015 to MP-2017. <br /> <br /> The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year <br />thereafter to 1.25% per year. <br /> <br />2017 Changes in Actuarial Assumptions: <br /> The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and <br />60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for <br />active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested <br />deferred member liability. <br /> <br /> The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years <br />to 1.0% per year through 2044 and 2.5% per year thereafter. <br /> <br />2016 Changes in Actuarial Assumptions: <br /> The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 <br />and 2.5% per year thereafter to 1.0% per year for all future years. <br /> <br /> The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was <br />changed from 7.9% to 7.5%. <br /> <br />99