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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2021 <br />Pre -retirement mortality rates were based on the RP-2014 Total Dataset Mortality with Improvement <br />Scale MP-2020. Post -retirement, disability retirement, and survivor retirement mortality rates were <br />based on the RP-2014 White Collar Mortality with Improvement Scale MP-2020. <br />Based on past experience of the plan, 50% of future retirees are assumed to continue medical coverage <br />until age 65. 15% of future pre -Medicare retirees are assumed to select spousal coverage. No spousal <br />coverage is assumed for other future retirees. 25% of police/fire employees are assumed to retire at age <br />60, the balance at age 65. 20% of other City employees are assumed to retire at age 62, the balance at <br />age 65. <br />F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT <br />RATE <br />The following presents the total OPEB liability of the City, as well as what the City's total OPEB <br />liability would be if it were calculated using a discount rate that is 1% lower (1%) or 1% higher (3%) <br />than the current discount rate: <br />1% Decrease Discount Rate 1% Increase <br />1.25% 2.25% 3.25% <br />Total OPEB liability $541,746 $502,243 $463,971 <br />G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE <br />COST TREND RATES <br />The following presents the total OPEB liability of the City, as well as what the City's total OPEB <br />liability would be if it were calculated using healthcare cost trend rates that are 1 % lower (5.25% <br />decreasing to 4%) or 1 % higher (7.25% decreasing to 6%) than the current healthcare cost trend rates: <br />Healthcare Cost <br />1% Decrease Trend Rates 1% Increase <br />(5.25% decreasing to 4%) (6.25% decreasing to 5%) <br />Total OPEB liability $430,547 $502,243 <br />(7.25% decreasing to 6%) <br />$589,592 <br />H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES <br />RELATED TO OPEB <br />For the year ended December 31, 2021, the City recognized $36,604 of OPEB expense. At December <br />31, 2021, the City reported deferred outflows and inflows of resources related to OPEB from the <br />following sources: <br />Deferred Outflows Deferred Inflows <br />of Resources of Resources <br />Differences between expected <br />and actual experience $92,843 $450,486 <br />Differences between expected and actual experience relate almost exclusively to the public safety <br />function, and therefore, have been allocated entirely to governmental activities. <br />74 <br />