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CITY OF ST. ANTHONY, MINNESOTA <br />REQUIRED SUPPLEMENTARY INFORMATION <br />NOTES TO RSI <br />December 31, 2022 <br /> <br /> <br /> <br />2021 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 scale <br />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. The <br />changes result in more assumed terminations. <br /> Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, <br />proposed rates result in more projected disabilities. <br /> Assumed percent married for active female members was changed from 60% to 70%. <br /> <br />2020 Changes in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2018 to MP-2019. <br /> <br />2019 Changes in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2017 to MP-2018. <br /> <br />2018 Changes in Actuarial Assumptions: <br /> The mortality projection scale was changed from MP-2016 to MP-2017. <br /> <br />2017 Changes in Actuarial Assumptions: <br /> The single discount rate was changed from 5.6% to 7.5%. <br /> Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The <br />net effect is proposed rates that average 0.34% lower than the previous rates. <br /> Assumed rates of retirement were changed, resulting in fewer retirements. <br /> The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members. <br />The CSA has been changed to 33% for vested members and 2 percent for non-vested members. <br /> The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table <br />to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor <br />of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base <br />mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the <br />mortality tables assumed for healthy retirees. <br /> Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond the <br />select period of three years were adjusted, resulting in more expected terminations overall. <br /> Assumed percentage of married female members was decreased from 65% to 60%. <br /> Assumed age difference was changed from separate assumptions for male members (wives assumed to <br />be three years younger) and female members (husbands assumed to be four years older) to the <br />assumption that males are two years older than females. <br /> The assumed percentage of female members electing Joint and Survivor annuities was increased. <br /> The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00% per <br />year through 2064 and 2.50% thereafter. <br /> <br />105