Laserfiche WebLink
City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2022 <br />Note 4: Defined Benefit Pension Plans - Statewide (Continued) <br />The following changes in actuarial assumptions and plan provisions occurred in 2022: <br />General Employees Fund <br />Changes in Actuarial Assumptions <br />•The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. <br />Changes in Plan Provisions <br />•There were no changes in plan provisions since the previous valuation. <br />Police and Fire Fund <br />Changes in Actuarial Assumptions <br />•The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021 <br />•The single discount rate changed from 6.50 percent to 5.40 percent. <br />Changes in Plan Provisions <br />•There have been no changes since the prior valuation. <br />G.Discount Rate <br />The discount rate used to measure the total pension liability in 2022 was 6.50 percent. The projection of cash flows used <br />to determine the discount rate assumed that contributions from plan members and employers will be made at r ates set in <br />Minnesota statutes. Based on these assumptions, the fiduciary net position of the G eneral Employees Fund and the Police <br />and Fire Fund were projected to be available to make all projected future benefit payments of current plan members. <br />Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected <br />benefit payments to determine the total pension liability. <br />H.Pension Liability Sensitivity <br />The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculat ed <br />using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net <br />pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point <br />higher than the current discount rate: <br />1 Percent 1 Percent <br />Decrease (5.50%) Current (6.50%) Increase (7.50%) <br />General Employees Fund 3,790,562$ 2,399,770$ 1,259,106$ <br />1 Percent 1 Percent <br />Decrease (4.40%) Current (5.40%) Increase (6.40%) <br />Police and Fire Fund 14,712,221 9,721,486 5,686,774 <br />City Proportionate Share of NPL <br />79 125