Laserfiche WebLink
CITY OF LAKE ELMO, MINNESOTA <br />NOTES TO THE BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2023 <br /> <br /> <br />68 <br />NOTE 5 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) <br /> <br />Changes in the Net OPEB Liability <br /> <br />The following table summarizes changes in the net OPEB liability for the year ended December 31, 2023: <br /> <br /> <br /> <br />Actuarial Assumptions <br /> <br />The following is a summary of pertinent actuarial assumptions and methods utilized, applied to all periods included in the <br />measurement, unless otherwise specified: <br /> <br /> Key Methods and Assumptions Used in Valuation of Total OPEB Liability <br /> <br /> Actuarial Information: <br /> Valuation Date December 31, 2021 <br /> Measurement Date December 31, 2022 <br /> Actuarial Cost Method Entry Age Normal level percentage of pay <br /> Actuarial Assets None <br /> <br /> Actuarial Assumptions: <br /> Discount Rate 4.05% <br /> Inflation 2.50% <br /> Bond Yield 2.50% <br /> Medical Trend Rate 6.80% for 2022, gradually decreasing to an ultimate rate of <br />3.90% by 2075 and later years <br /> Dental Trend Rate None <br /> <br />Mortality rates were based on the Pub-2010 General mortality tables with projected mortality improvements based on scale <br />MP-2021, and other adjustments. <br /> <br />Changes in Plan Provisions: <br />• There were no changes in plan provisions since the prior valuation. <br /> <br />Changes in Actuarial Assumptions: <br />• The discount rate was changed from 1.84 percent to 4.05 percent based on updated 20-year municipal bonds rates. <br /> <br /> <br />Changes in Total OPEB Liability (TOL) <br />Balance at January 1st 96,581$ <br />Service Cost 14,941 <br />Interest Cost 1,987 <br />Changes in Assumptions (17,298) <br />Benefit Payments (7,086) <br />Balance at December 31st 89,125$