01-22-2024 CC Agenda Packet - Laserfiche WebLink

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City of Orono, Minnesota Notes to the Financial Statements December 31, 2022 Note 5: Postemployment Benefits Other Than Pensions (Continued) D.Changes in the Total OPEB Liability Total OPEB Liability (a) Balances at December 31, 2021 1,056,791$ Changes for the Year: Service cost 118,604 Interest 24,704 Differences between expected and actual experience 405,645 Changes in assumptions or other inputs (344,599) Benefit payments (20,145) Net Changes 184,209 Balances at December 31, 2022 1,241,000$ Since the prior measurement date, the following assumptions changed: •The discount rate was changed from 2.12% to 2.06%%. •Medical trend was updated based on recently published trend model and trend surveys to better reflect anticipated experience •Medical per capita tables were updated based on recent experience and demographics •Future retiree participation rates were updated from 75% to 60% based on analysis of past plan experience •Future retiree spouse participation rates were updated from 30% for PERA Coordinated and 45% for PERA Police and Fire to 60% for all participants based on analysis of past plan experience •Assumed retirement age was updated from the 2017 PERA assumptions to 63 for PERA Coordinated and 56 for Police and Fire •Mortality, Termination, Salary Scale and Disability assumptions were updated to those included in the recently published PERA actuarial valuations. E.Sensitivity of the Total OPEB Liability The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (1.06 percent) or 1-percentage-point higher (3.06 percent) than the current discount rate: 1 Percent 1 Percent Decrease (1.06%)Current (2.06%)Increase (3.06%) 1,335,045$ 1,241,000$ 1,150,739$ 81 127