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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2019 <br /> <br /> <br /> <br /> <br />E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS <br /> <br />The total OPEB liability in the January 1, 2018 actuarial valuation was determined using the following <br />actuarial assumptions and other inputs, applied to all periods included in the measurement, unless <br />otherwise specified: <br /> <br />Inflation 3.50% <br />Salary increases 3.5% for Police and Fire after 25 years of service and <br />after 26 years of service for all other employees <br />Discount rate 4.09% <br />Investment rate of return NA <br />Healthcare cost trend rates 8% for 2018, decreasing each year to an <br />ultimate rate of 5% for 2028 and beyond <br />Retirees' share of benefit-related costs 100% <br /> <br />Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of <br />return was based on the 20 year AA rated municipal bond rate as of December 31, 2018, obtained from <br />the Bond Buyer 20-Bond G.O. index. <br /> <br />Mortality rates are the rates used in the PERA plan of which the employee, retiree or beneficiary is a <br />participant. <br /> <br />Coordinated <br /> <br /> Healthy Pre-Retirement <br />RP-2014 Employee Mortality Table, adjusted for white collar and mortality <br />improvements using projection scale MP-2015, from a base year of 2014. Rates are set <br />forward one year for males and set back one year for females. <br /> <br /> Healthy Post-Retirement <br />RP-2014 Healthy Annuitant Mortality Table, adjusted for white collar and mortality <br />improvements using projection scale MP-2015, from a base year of 2014. Rates are set <br />forward two years for males. Female rates are multiplied by a factor of 0.90. <br /> <br /> Disabled <br />RP-2014 Disabled Mortality Table, adjusted for mortality improvements using projection <br />scale MP-2015, from a base year of 2014. Rates are set forward one year for males and <br />set forward six years for females. <br /> <br />Police & Fire <br /> <br /> Healthy Pre-Retirement <br />RP-2014 employee generational mortality table projected with mortality improvement <br />scale MP- 2016, from a base year of 2006. <br /> <br /> Healthy Post-Retirement <br />RP-2014 annuitant generational mortality table projected with mortality improvement <br />scale MP-2016 from a base year of 2006. Male rates are adjusted by a factor of 0.96. <br /> <br />79