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City of Orono, Minnesota
<br />Required Supplementary Information (Continued)
<br />For the Year Ended December 31, 2023
<br />Notes to the Required Supplementary Information - General Employees Fund (Continued)
<br />Changes in Plan Provisions
<br />2023 - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1,
<br />2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three
<br />years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. A
<br />one-time, non-compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a lump
<br />sum for calendar year 2024 by March 31, 2024.
<br />2022 - There were no changes in plan provisions since the previous valuation.
<br />2021 - There were no changes in plan provisions since the previous valuation.
<br />2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through
<br />December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020.
<br />2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0
<br />through 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provisions were repealed.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 -
<br />and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
<br />changed from $21,000,000 to $
<br />$16,000,000 to $6,000,000 in calendar years 2019 to 2031.
<br />2016 - There were no changes in plan provisions since the previous valuation.
<br />2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund,
<br />which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million.
<br />Upon consolidation, state and employer contributions were revised.
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<br />The augmentation adjustment in early retirement factors is eliminated over a fiveThe augmentation adjustment in early retirement factors is eliminated over a five--year period starting July 1, 2019, year period starting July 1, 2019,
<br />resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00 resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.00
<br />percent to 3.0percent to 3.00 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.00 percent, effective 0 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 January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer
<br />provisions were repealed. Postretirement provisions were repealed. Postretirement benefit increases were changed from 1.00 percent per year with a provision to 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 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 moreLiving Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. For retirements 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 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 survapply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect ivors. Actuarial equivalent factors were updated to reflect
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