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CITY OF ARDEN HILLS Notes to Required Supplementary Information December 31, 2018 -54- NOTE 1 – LEGAL COMPLIANCE – BUDGETS The General Fund and EDA Operating Fund budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level for these funds. Budgeted appropriations lapse at year-end. NOTE 2 – PERA – GENERAL EMPLOYEES RETIREMENT FUND 2018 CHANGES CHANGES IN ACTUARIAL ASSUMPTIONS: • The mortality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.00 percent per year through 2044, and 2.50 percent per year thereafter, to 1.25 percent per year. 2017 CHANGES CHANGES IN PLAN PROVISIONS: • The state’s special funding contribution increased from $6 million to $16 million. CHANGES IN ACTUARIAL ASSUMPTIONS: • The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for nonvested deferred member liability. • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years, to 1.00 percent per year through 2044, and 2.50 percent per year thereafter. 2016 CHANGES CHANGES IN ACTUARIAL ASSUMPTIONS: • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2035, and 2.50 percent per year thereafter, to 1.00 percent per year for all years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate was changed from 7.90 percent to 7.50 percent.