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Public Employees Retirement Association of MN <br />City of Lake Elmo Volunteer Fire Department <br />July 15, 2024 <br />Page 2 <br /> <br />Actuarial assumptions, including discount rates, and others identified in this report, are prescribed by <br />Minnesota Statutes Section 353G.08, the Legislative Commission on Pensions and Retirement (LCPR), and <br />the Trustees. These parties are responsible for selecting the plan’s funding policy, actuarial valuation <br />methods, asset valuation methods and assumptions. The policies, methods and assumptions used in this <br />valuation are those that have been so prescribed and are described in the Methods and Assumptions <br />section of this report. PERA is solely responsible for communicating to GRS any changes required thereto. <br /> <br />All actuarial assumptions used in this report are reasonable for the purposes of this valuation. The <br />combined effect of the assumptions is expected to have no significant bias (i.e. not significantly optimistic <br />or pessimistic). All actuarial assumptions and methods used in the valuation follow the guidance in the <br />applicable Actuarial Standards of Practice. Additional information about the actuarial assumptions is <br />included in the section of this report entitled Methods and Assumptions. We have assessed that the <br />contribution allocation procedure calculated under the current funding policy is a reasonable Actuarially <br />Determined Employer Contribution (ADEC) and is not significantly inconsistent with the plan accumulating <br />adequate assets to make benefit payments when due. <br /> <br />This report was prepared using our proprietary valuation model and related software which, in our <br />professional judgment, has the capability to provide results that are consistent with the purposes of the <br />valuation and has no material limitations or known weaknesses. We performed tests to ensure that the <br />model reasonably represents that which is intended to be modeled. <br /> <br />This report has been prepared by actuaries who have substantial experience valuing public employee <br />retirement systems. To the best of our knowledge, the information contained in this report is accurate and <br />fairly presents the actuarial position of the Plan as of the valuation date and was performed in accordance <br />with the requirements of Minnesota Statutes Section 353G.08, and the requirements of the Standards for <br />Actuarial Work established by the LCPR. All calculations have been made in conformity with generally <br />accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial <br />Standards Board, and with applicable statutes. <br /> <br />Bonita J. Wurst and Sheryl L. Christensen are Members of the American Academy of Actuaries (MAAA) and <br />meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions <br />contained herein. In addition, GRS meets the requirements of “approved actuary” under Minnesota <br />Statutes Section 356.215, Subdivision 1, Paragraph (c). <br /> <br />The signing actuaries are independent of the plan sponsor. <br /> <br />Respectfully submitted, <br />Gabriel, Roeder, Smith & Company <br /> <br />Bonita J. Wurst, ASA, EA, FCA, MAAA Sheryl L. Christensen, FSA, EA, FCA, MAAA <br /> <br />