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CITY OF LINO LAKES, MINNESOTA <br />REQUIRED SUPPLEMENTARY INFORMATION <br />NOTES TO RSI <br />December 31, 2017 <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. There are no factors that affect trends in the amounts reported, such as changes of benefit <br />terms or assumptions. <br /> <br /> <br />Note C PENSION INFORMATION <br /> <br />PERA – General Employees Retirement Fund <br /> <br /> <br />2017 Changes <br />Changes in Actuarial Assumptions: <br /> The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members <br />and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 <br />percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 <br />percent for non-vested deferred member liability. <br /> <br /> The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all <br />years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. <br /> <br />2016 Changes <br />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 /> 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 />PERA – Public Employees Police and Fire Fund <br /> <br />2017 Changes <br />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 />99