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CITY OF LAKE ELMO, MINNESOTA <br />NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION <br />DECEMBER 31, 2023 <br /> <br /> <br />82 <br />NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND (Continued) <br /> <br />• The total and permanent duty disability benefit was increased, effective July 1, 2023. <br /> <br />2022 Changes <br /> <br />Changes in Actuarial Assumptions <br />• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. <br />• The single discount rate changed from 6.50 percent to 5.40 percent. <br /> <br />Changes in Plan Provisions <br />• There have been no changes in plan provisions since the previous valuation. <br /> <br />2021 Changes <br /> <br />Changes in Actuarial Assumptions <br />• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting <br />purposes. <br />• The inflation assumption was changed from 2.50 percent to 2.25 percent. <br />• The payroll growth assumption was changed from 3.25 percent to 3.00 percent. <br />• The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 <br />Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to MN-2020. <br />• The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with <br />future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality <br />table (with future mortality improvement according to Scale MP-2020). <br />• Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall <br />impact is a decrease in gross salary increase rates. <br />• Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result <br />in slightly more unreduced retirements and fewer assumed early retirements. <br />• Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result <br />in more assumed terminations. <br />• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates <br />result in more projected disabilities. <br />• Assumed percent married for active female members was changed from 60.00 percent to 70.00 percent. Minor changes <br />to form of payment assumptions were applied. <br /> <br />Changes in Plan Provisions <br />• There have been no changes in plan provisions since the previous valuation. <br /> <br />2020 Changes <br /> <br />Changes in Actuarial Assumptions <br />• The mortality projection scale was changed from MP-2018 to MP-2019. <br /> <br />Changes in Plan Provisions <br />• There have been no changes in plan provisions since the previous valuation. <br /> <br />2019 Changes <br /> <br />Changes in Actuarial Assumptions <br />• The mortality projection scale was changed from MP-2017 to MP-2018.