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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2021 <br /> <br /> <br /> <br /> <br />D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY <br /> <br />The City’s total OPEB liability of $692,246 was measured as of December 31, 2020 and was <br />determined by an actuarial valuation as of January 1, 2021. Changes in the total OPEB liability during <br />2021 were: <br /> <br />Balance - beginning of year $614,487 <br />Changes for the year: <br />Service cost 62,011 <br />Interest 18,122 <br />Changes of benefit terms - <br />Differences between expected and actual experience 8,294 <br />Changes in assumptions 19,545 <br />Benefit payments (30,213) <br />Net changes 77,759 <br />Balance - end of year $692,246 <br /> Changes in assumptions reflect a change in the discount rate from 4.09% in 2020 to 2.74% in 2021. <br /> <br /> <br />E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS <br /> <br />The total OPEB liability in the January 1, 2021 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 3.25% <br />Salary increases 3.25% for Police and Fire after 25 years of service and <br />after 26 years of service for all other employees <br />Discount rate 2.12% <br />Investment rate of return NA <br />Healthcare cost trend rates 7.33% for 2021, decreasing each year to an <br />ultimate rate of 5% for 2028 and beyond <br />Retirees' share of benefit-related costs 100% <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, 2019, obtained from <br />the Bond Buyer 20-Bond G.O. index. <br /> <br />Mortality and retirement rates are the rates used in the PERA plan of which the employee, retiree or <br />beneficiary is a participant. <br /> <br />79