Laserfiche WebLink
CITY OF ARDEN HILLS <br /> <br />Notes to Required Supplementary Information <br />December 31, 2017 <br /> <br /> <br /> <br />-52- <br />NOTE 1 – LEGAL COMPLIANCE – BUDGETS <br /> <br />The General Fund and EDA Operating Fund budgets are legally adopted on a basis consistent with <br />accounting principles generally accepted in the United States of America. The legal level of budgetary <br />control is at the fund level for these funds. Budgeted appropriations lapse at year -end. <br /> <br /> <br />NOTE 2 – PERA – GENERAL EMPLOYEES RETIREMENT FUND <br /> <br />2017 CHANGES <br /> <br />CHANGES IN ACTUARIAL ASSUMPTIONS: <br /> <br />• The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and <br />60 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent <br />for active member liability, 15.0 percent for vested deferred member lia bility, and 3.0 percent for <br />nonvested deferred member liability. <br /> <br />• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all <br />years, to 1.0 percent per year through 2044, and 2.5 percent per year thereafter. <br /> <br /> <br />2016 CHANGES <br /> <br />CHANGES IN ACTUARIAL ASSUMPTIONS: <br /> <br />• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through <br />2035, and 2.5 percent per year thereafter, to 1.0 percent per year for all years. <br /> <br />• The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate <br />was changed from 7.9 percent to 7.5 percent. <br /> <br />• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed <br />future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent <br />for payroll growth, and 2.50 percent for inflation. <br />