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City of Orono, Minnesota
<br />Required Supplementary Information (Continued)
<br />For the Year Ended December 31, 2019
<br />Notes to the Required Supplementary Information - Police and Fire Fund (Continued)
<br />Changes in Plan Provisions
<br />2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million
<br />per year. The state’s special funding contribution was changed prospectively, requiring $16.0 million due per year through
<br />2031.
<br />2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019,
<br />resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00
<br />percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective
<br />January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
<br />provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to
<br />increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of
<br />Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements
<br />on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not
<br />apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect
<br />revised mortality and interest assumptions.
<br />2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018,
<br />and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
<br />changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed from
<br />$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
<br />2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed,
<br />from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.
<br />changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changedchanged from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed
<br />$16,000,000 to $6,000,000 in calendar years 2019 to 2031.$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
<br />retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed,
<br />from inflation up to 2.5 percent, to a fixed rate of 2.5 from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.percent.
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