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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 /> Other assumptions were changed pursuant to the experience study dated June 30, 2015. The <br />assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% <br />for payroll growth and 2.50% for inflation. <br /> <br /> <br />PERA – Public Employees Police and Fire Fund <br /> <br />2019 Changes in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2017 to MP-2018 <br /> <br />2018 Changes in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2016 to MP-2017. <br /> <br />2017 Changes in Actuarial Assumptions: <br /> The single discount rate was changed from 5.6% to 7.5%. <br /> <br /> Assumed salary increases were changed as recommended in the June 30, 2016 experience study. <br />The net effect is proposed rates that average 0.34 percent lower than the previous rates. <br /> <br /> Assumed rates of retirement were changed, resulting in fewer retirements. <br /> <br /> The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred <br />members. The CSA has been changed to 33 percent for vested members and 2 percent for non- <br />vested members. <br /> <br /> The base mortality table for healthy annuitants was changed from the RP-2000 fully generational <br />table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted <br />by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP- <br />2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled <br />mortality table to the mortality tables assumed for healthy retirees. <br /> <br /> Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond <br />the select period of three years were adjusted, resulting in more expected terminations overall. <br /> <br /> Assumed percentage of married female members was decreased from 65% to 60%. <br /> <br /> Assumed age difference was changed from separate assumptions for male members (wives <br />assumed to be three years younger) and female members (husbands assumed to be four years <br />older) to the assumption that males are two years older than females. <br /> <br /> The assumed percentage of female members electing Joint and Survivor annuities was increased. <br /> <br /> The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00% <br />per year through 2064 and 2.50% thereafter. <br /> <br />2016 Changes in Actuarial Assumptions: <br /> The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 <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 <br />changed from 7.9% to 5.6%. <br /> <br />100