Agenda Packets - 2026/05/11 - Laserfiche WebLink

Home Browse Search

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 4.20% 20-year municipal bond yield 4.20% Inflation rate 2.50% Healthcare cost trend rate 6.25%,grading to 5.00%over 5 years 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 4.20 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 General Headcount-Weighted Mortality Tables with MP-2021 Generational Improvement Scale. G. Changes in the Total OPEB Liability Total OPEB Liability Total OPEB liability—beginning balance $ 1,592,510 Service cost 39,438 Interest 58,104 Changes in actuarial assumptions (47,238) Benefit payments (124,291) Total net changes (73,987) Total OPEB liability—ending balance $ 1,518,523 Assumption changes since the prior measurement date include the following: • The discount rate was changed from 3.70 percent to 4.20 percent. -61-