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CITY OF LINO LAKES, MINNESOTA <br />REQUIRED SUPPLEMENTARY INFORMATION <br />NOTES TO RSI <br />December 31, 2024 <br /> <br /> <br /> <br />Note A LEGAL COMPLIANCE – BUDGETS <br /> <br />The General Fund and the Rookery Activity Center special revenue fund budgets are legally adopted on a basis <br />consistent with accounting principles generally accepted in the United States of America. The legal level of <br />budgetary control is at the department level for the General Fund and the fund level for the Rookery Activity Center <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 related <br />benefits. <br /> <br /> <br />Note C PENSION INFORMATION <br /> <br />PERA – General Employees Retirement Fund <br /> <br />2024 Changes in Actuarial Assumptions: <br />The following changes in assumptions are effective with the July 1, 2024 valuation, as recommended in the <br />most recent experience study (dated June 29, 2023): <br /> Rates of merit and seniority were adjusted, resulting in slightly higher rates. <br /> Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced <br />retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement <br />rates for Tier 1 and Tier 2 members. <br /> Minor increase in assumed withdrawals for males and females. <br /> Lower rates of disability. <br /> Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the <br />most recent experience study. <br /> Minor changes to form of payment assumptions for male and female retirees. <br /> Minor changes to assumptions made with respect to missing participant data. <br /> <br />2024 Changes in Plan Provisions: <br /> The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent <br />factors updated to reflect the changes in assumptions. <br /> <br />2023 Changes in Actuarial Assumptions: <br /> The investment return assumption and single discount rate were changed from 6.50% to 7.00%. <br /> <br />2023 Changes in Plan Provisions: <br /> An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on <br />October 1, 2023. <br /> The vesting period of those hired after June 30, 2010, was changed from five years of allowable <br />service to three years of allowable service. <br /> The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. <br /> A one-time, non-compounding benefit increase of 2.50% minus the actual 2024 adjustment will be <br />payable in a lump sum for calendar year 2024 by March 31, 2024. <br /> <br />2022 Changes in Actuarial Assumptions: <br /> The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. <br /> <br />103 <br />Page 139 of 353