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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2020 <br /> <br /> <br /> <br /> <br />C. PARTICIPANTS <br /> <br />As of the January 1, 2019 actuarial valuation, participants of the plan consisted of: <br /> <br />Active employees 42 <br />Inactive employees or beneficiaries <br />currently receiving benefits 4 <br />Total 46 <br /> <br />D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY <br /> <br />The City’s total OPEB liability of $613,474 was measured as of December 31, 2020 and was <br />determined by an actuarial valuation as of January 1, 2019. Changes in the total OPEB liability during <br />2020 were: <br /> <br />Balance - beginning of year $560,631 <br />Changes for the year: <br />Service cost 63,577 <br />Interest 12,256 <br />Changes of benefit terms - <br />Differences between expected and actual experience - <br />Changes in assumptions - <br />Benefit payments (22,990) <br />Net changes 52,843 <br />Balance - end of year $613,474 <br /> The OPEB liability will be liquidated by the general, water and sewer funds. <br /> <br /> <br />E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS <br /> <br />The total OPEB liability in the January 1, 2019 actuarial valuation was determined using the following <br />actuarial assumptions and other inputs, applied to all periods included in the measurement, unless <br />otherwise specified: <br /> <br />Inflation 3.00% <br />Salary increases 3.00% <br />Discount rate 2.00% <br />Investment rate of return 2.00% <br />Healthcare cost trend rates 7% for 2020, decreasing 1% per year <br /> to an ultimate rate of 3% for 2024 and beyond <br />Retirees' share of benefit-related costs 100% <br /> <br />The previous actuarial valuation included a liability for benefits provided to the beneficiary of a deceased <br />employee. As of the most recent actuarial valuation date, the beneficiary was not enrolled in the City’s <br />plan, but has been assigned a 20% probability of returning to the plan. <br />74