06-24-2024 CC Agenda Packet - Laserfiche WebLink

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City of Orono, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) Changes in Plan Provisions - The total and permanent duty disability benefit was increased, effective July 1, 2023. G. Discount Rate H. Pension Liability Sensitivity 1 Percent 1 Percent Decrease (6.0%)Current (7.0%)Increase (8.0%) General Employees Fund 3,185,385$ 1,800,588$ 661,540$ Police and Fire Fund 7,524,190 3,792,207 724,017 I. Pension Plan Fiduciary Net Position pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. The discount rate used to measure the total pension liability in 2023 was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and Fire Funds were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. - Psychological treatment is required effective July 1, 2023 prior to approval for a duty disability benefit for a - The vesting requirement for new hires after June 30, 2014 was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50 percent vesting after five years increasing incrementally to 100 percent after 10 years. - A one-time, non-compounding benefit increase of 3.0 percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. - An additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023. 77 H. Pension Liability SensitivityH. Pension Liability Sensitivity in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and Fire Funds were projected to be available to make all projected future benefit payments of current plan members. Fire Funds were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.benefit payments to determine the total pension liability. 112