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City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2024 <br />Note 4: Defined Benefit Pension Plans - Statewide (Continued) <br />Police and Fire Fund <br />Changes in Actuarial Assumptions <br />Changes in Plan Provisions <br />G. Discount Rate <br />H. Pension Liability Sensitivity <br />1 Percent 1 Percent <br />Decrease (6.0%)Current (7.0%)Increase (8.0%) <br />General Employees Fund 2,684,258$ 1,228,966$ 31,854$ <br />Police and Fire Fund 7,041,230 2,979,538 (355,961) <br />I. Pension Plan Fiduciary Net Position <br />- The State contribution of $9 million per year will continue until the earlier of 1) both the Police and Fire Plan and the <br />State Patrol Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of <br />assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90.0 percent funded <br />status for one year. <br />- The additional $9 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three <br />consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was <br />previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July <br />1, 2048 if earlier). <br />report that includes financial statements and required supplementary information. That report may be obtained on the <br />Internet at www.mnpera.org. <br />The discount rate used to measure the total pension liability in 2024 was 7.0 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 rates set <br />in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and <br />Fire Plans 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 />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 />- There were no changes in actuarial assumptions since the previous valuation. <br />79 106