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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 C. PARTICIPANTS As of the December 31, 2021 actuarial valuation, participants of the plan consisted of: Active employees 54 Inactive employees or beneficiaries currently receiving benefits 5 Total 59 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $924,615 was measured as of December 31, 2022 and was determined by an actuarial valuation as of December 31, 2021. Changes in the total OPEB liability during the measurement period were: Balance - beginning of year $1,007,566 Changes for the year: Service cost 79,666 Interest 21,820 Changes of benefit terms - Differences between expected and actual experience 2,116 Changes in assumptions (130,573) Benefit payments (55,980) Net changes (82,951) Balance - end of year $924,615 Changes in assumptions reflect a change in the discount rate from 2.06% for the measurement date of December 31, 2021 to 4.05% for the measurement date of December 31, 2022. E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Discount rate 4.05% Investment rate of return NA Healthcare cost trend rates 6.2% for 2022, decreasing each year to an ultimate rate of 3.9% for 2075 and beyond Retirees' share of benefit-related costs 100% Since the plan is funded on a pay-as-you-go basis, the discount rate was based on the 20-year municipal bond index. Mortality, salary, and retirement rates are the rates used in the PERA plan of which the employee, retiree or beneficiary is a participant. 77