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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2022 <br /> <br /> <br /> <br /> <br />C. PARTICIPANTS <br /> <br />As of the January 1, 2022 actuarial valuation, participants of the plan consisted of: <br /> <br />Active employees 54 <br />Inactive employees or beneficiaries <br />currently receiving benefits 5 <br />Total 59 <br /> <br />D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY <br /> <br />The City’s total OPEB liability of $1,007,566 was measured as of December 31, 2021 and was <br />determined by an actuarial valuation as of January 1, 2022. Changes in the total OPEB liability during <br />2022 were: <br /> <br />Balance - beginning of year $692,246 <br />Changes for the year: <br />Service cost 72,464 <br />Interest 15,890 <br />Changes of benefit terms - <br />Differences between expected and actual experience 479,711 <br />Changes in assumptions (222,336) <br />Benefit payments (30,409) <br />Net changes 315,320 <br />Balance - end of year $1,007,566 <br /> <br />Changes in assumptions reflect a change in the discount rate from 2.74% in 2021 to 2.06% in 2022. <br /> <br /> <br />E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS <br /> <br />The total OPEB liability in the January 1, 2022 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 2.50% <br />Discount rate 2.06% <br />Investment rate of return NA <br />Healthcare cost trend rates 6.2% for 2022, decreasing each year to an <br />ultimate rate of 3.9% for 2075 and beyond <br />Retirees' share of benefit-related costs 100% <br /> <br />Since the plan is funded on a pay-as-you-go basis, the discount rate was based on the 20-year municipal <br />bond index. <br /> <br />Mortality, salary, and retirement rates are the rates used in the PERA plan of which the employee, <br />retiree or beneficiary is a participant. <br />78