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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2020 <br /> <br /> <br /> <br /> <br />Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial <br />experience studies. The most recent four-year experience study for GERF was completed in 2019. <br />The assumption changes were adopted by the Board and become effective with the July 1, 2020 <br />actuarial valuation. The most recent four-year experience study for PEPFF was completed in 2020. <br /> <br />The following changes in actuarial assumptions and plan provisions occurred in 2020: <br /> <br />General Employees Fund <br />Changes in Actuarial Assumptions: <br /> The price inflation assumption was decreased from 2.50% to 2.25%. <br /> The payroll growth assumption was decreased from 3.25% to 3.00%. <br /> As recommended in the June 30, 2019 experience study, assumed salary increase rates were <br />decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced <br />(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of <br />termination and disability were also changed. <br /> The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with <br />adjustments. <br /> The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. <br /> The assumed spouse age difference was changed from two years older for females to one year <br />older. <br /> The assumed number of married male new retirees electing the 100% Joint & Survivor option <br />changed from 35% to 45%. The assumed number of married female new retirees electing the <br />100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married <br />new retirees electing the Life annuity option was adjusted accordingly. <br />Changes in Plan Provisions: <br /> Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 <br />through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations <br />occurring after June 30, 2020. <br /> <br />Police and Fire Fund <br />Changes in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2018 to MP-2019. <br /> <br />69