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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2021 <br /> <br /> <br /> <br /> <br /> <br />Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table. Mortality <br />rates for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables. The tables are <br />adjusted slightly to fit PERA’s experience. Cost of living benefit increases after retirement are <br />assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF. <br /> <br />Actuarial assumptions for GERF are reviewed every four years. The most recent four-year experience <br />study for GERF was completed in 2019. The assumption changes were adopted by the Board and <br />become effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study <br />for PEPFF was completed in 2020 and adopted by the Board and became effective with the July 1, <br />2021 actuarial valuation. <br /> <br />The following changes in actuarial assumptions and plan provisions occurred in 2021: <br /> <br />General Employees Fund <br />Changes in Actuarial Assumptions: <br /> The investment return and single discount rates were changed from 7.50% to 6.50% for financial <br />reporting purposes. <br /> The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. <br /> <br />Police and Fire Fund <br />Changes in Actuarial Assumptions: <br /> The investment return and single discount rates were changed from 7.50% to 6.50% for financial <br />reporting purposes. <br /> The inflation assumption was changed from 2.50% to 2.25%. <br /> The payroll growth assumption was changed from 3.25% to 3.00%. <br /> The base mortality tables for healthy annuitants, disabled annuitants and employees were changed <br />from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement <br />scale was changed from MP-2019 to MN-2020. <br /> Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020 <br />experience study. The changes result in a decrease in gross salary increase rates, slightly more <br />unreduced retirements and fewer assumed early retirements. <br /> Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. <br />The changes result in more assumed terminations. <br /> Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. <br />Overall, proposed rates result in more projected disabilities. <br /> Assumed percent married for active female members was changed from 60% to 70%. <br /> <br />71