06-13-2022 City Council Packet - Laserfiche WebLink

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 C. PARTICIPANTS As of the January 1, 2021 actuarial valuation, participants of the plan consisted of: Active employees 60 Inactive employees or beneficiaries currently receiving benefits 3 Total 63 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City's total OPEB liability of $502,243 was measured as of December 31, 2021 and was determined by an actuarial valuation as of January 1, 2021. Changes in the total OPEB liability during 2021 were: Balance -beginning of year $613,474 Changes for the year: Service cost 65,484 Interest 13,256 Changes of benefit terms - Differences between expected and actual experience (250,908) Changes in assumptions 93,391 Benefit payments (32,454) Net changes (111,231) Balance - end of year $502,243 The OPEB liability will be liquidated by the general, water and sewer funds. E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the January 1, 2021 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation Salary increases Discount rate Investment rate of return Healthcare cost trend rates Retirees'share of benefit -related costs 3.00% 3.00% 2.25% N/A 6.25% for 2021, decreasing 0.25% per year to an ultimate rate of 5% for 2026 and beyond 100% Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return was based on the 20-year AA rated municipal bond rate as of December 31, 2021, obtained from https://www.spglobal.com/spdj i/en/indices/fixed-income/sp-municipal-bond-20-year-high-grade-rate- index/#overview. 73