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CITY OF LAKE ELMO, MINNESOTA <br />NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION <br />DECEMBER 31, 2024 <br /> <br /> <br />88 <br />NOTE 4 OTHER POSTEMPLOYMENT BENEFIT PLAN (Continued) <br /> <br />2020 Changes <br /> <br />Changes in Actuarial Assumptions <br />• The discount rate was changed from 3.71 percent to 2.75 percent based on updated 20-year municipal bond rates. <br />• Healthcare trend rates were reset to reflect updated cost increase expectations, including the repeal of the Affordable <br />Care Act’s Excise Tax on high-cost health insurance plans. In addition, the medical trend rate adjustments to reflect <br />the projected effect of the Affordable Care Act’s Excise Tax on high-cost health insurance plans was removed because <br />the tax was repealed. <br />• Medical per capita claims costs were updated to reflect recent experience. <br />• Salary increase rates were updated from the rates used in the July 1, 2017 PERA General Employees Plan valuation <br />to the rates used in the July 1, 2019 valuation. <br />• Mortality rates were updated from the RP-2014 tables to the rates used in the July 1, 2019 PERA General Employees <br />Plan actuarial valuation. <br />• The inflation assumption was changed from 2.75 percent to 2.50 percent based on an updated historical analysis of <br />inflation rates and forward-looking market expectations. <br /> <br />Changes in Plan Provisions <br />• There were no changes in plan provisions since the previous valuation. <br /> <br />2019 Changes <br /> <br />Changes in Actuarial Assumptions <br />• The discount rate was changed from 3.31 percent to 3.71 percent. <br /> <br />Changes in Plan Provisions <br />• There were no changes in plan provisions since the previous valuation. <br />