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NOTE 11— OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) F. Actuarial Methods and Assumptions The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount rate 4.00% 20-year municipal bond yield 4.00% Inflation rate 2.50% Healthcare cost trend rate 6.25%, grading to 5.00% over 5 year and then to 4.00% over the next 48 years The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities for Minnesota city employees. The state pension plans base their assumptions on periodic experience studies. Economic assumptions are based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information, as well as for consistency with the other economic assumptions. Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond yield rate of 4.00 percent, which was set by considering published rate information for 20-year high -quality, tax-exempt, general obligation municipal bonds as of the measurement date. Mortality rates were based on the Pub-2010 Public Retirement Plans Headcount -Weighted Mortality Tables (General, Safety) with MP-2021 Generational Improvement Scale. G. Changes in the Total OPEB Liability Total OPEB liability — beginning balance Total OPEB Liability 744,500 Service cost 43,933 Interest 15,138 Difference between expected and actual experience 323,476 Changes in assumptions (135,166) Benefit payments (63,392) Total net changes 183,989 Total OPEB liability — ending balance $ 928,489 Assumption changes since the prior measurement date include the following: • The discount rate was changed from 2.00 percent 4.00 percent. • The inflation rate was changed from 2.00 percent to 2.50 percent. C.112