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CITY OF LINO LAKES, MINNESOTA <br />REQUIRED SUPPLEMENTARY INFORMATION <br />NOTES TO RSI <br />December 31, 2023 <br /> <br /> <br /> <br />2019 Changes in the Plan Provisions: <br /> The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per <br />year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through <br />2031. <br /> <br />2018 Changes in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2015 to MP-2017. <br /> The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year thereafter to 1.25% <br />per year. <br /> <br />2017 Changes in Actuarial Assumptions: <br /> The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested and non- <br />vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15.0% for vested deferred <br />member liability and 3.0% for non-vested deferred member liability. <br /> The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to 1.0% per year <br />through 2044 and 2.5% per year thereafter. <br /> <br />2016 Changes in Actuarial Assumptions: <br /> The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year <br />thereafter to 1.0% per year for all future years. <br /> The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to <br />7.5%. <br /> Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary <br />increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. <br /> <br /> <br />PERA – Public Employees Police and Fire Fund <br /> <br />2023 Changes in Actuarial Assumptions: <br /> The investment return assumption was changed from 6.50% to 7.00%. <br /> The single discount rate changed from 5.40% to 7.00% <br /> <br />2023 Changes in Plan Provisions: <br /> An additional one-time direct state aid contribution of $19.4 million was contributed to the Plan on October 1, 2023. <br /> Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded <br />10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. <br /> A one-time, non-compounding benefit increase of 3.00% will be payable in a lump sum for calendar year 2024 by March <br />31, 2024. <br /> Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a <br />psychological condition relating to the member’s occupation. <br /> The total and permanent duty disability benefit was increased, effective July 1, 2023. <br /> <br />2022 Changes in Actuarial Assumptions: <br /> The single discount rate changed from 6.50% to 5.4%. <br /> The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. <br /> <br />2021 Changes in Actuarial Assumptions: <br /> The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes. <br /> The inflation assumption was changed from 2.50% to 2.25%. <br /> The payroll growth assumption was changed from 3.25% to 3.00%. <br /> The base mortality tables for healthy annuitants, disabled annuitants and employees were changed from RP-2014 tables <br />to Pub-2010 Public Safety Mortality tables. The mortality improvement scale was changed from MP-2019 to MN-2020. <br />98 <br />105