Laserfiche WebLink
CITY OF ARDEN HILLS <br /> <br />Notes to Required Supplementary Information <br />December 31, 2020 <br /> <br /> <br /> <br />-50- <br />NOTE 1 – LEGAL COMPLIANCE – BUDGETS <br /> <br />The General Fund budget is legally adopted on a basis consistent with accounting principles generally <br />accepted in the United States of America. The legal level of budgetary control is at the fund level. <br />Budgeted appropriations lapse at year-end. <br /> <br /> <br />NOTE 2 – PERA – GENERAL EMPLOYEES RETIREMENT FUND <br /> <br />2020 CHANGES IN ACTUARIAL ASSUMPTIONS <br /> <br />• The price inflation assumption was decreased from 2.50 percent to 2.25 percent. <br /> <br />• The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. <br /> <br />• Assumed salary increase rates were changed as recommended in the June 30, 2019 <br />experience study. The net effect is assumed rates that average 0.25 percent less than previous <br />rates. <br /> <br />• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience <br />study. The changes result in more unreduced (normal) retirements and slightly fewer <br />Rule of 90 and early retirements. <br /> <br />• Assumed rates of termination were changed as recommended in the June 30, 2019 experience <br />study. The new rates are based on service and are generally lower tha n the previous rates for <br />years two through five, and slightly higher thereafter. <br /> <br />• Assumed rates of disability were changed as recommended in the June 30, 2019 experience <br />study. The change results in fewer predicted disability retirements for males and females. <br /> <br />• The base mortality table for healthy annuitants and employees was changed from the <br />RP-2014 Table to the Pub-2010 General Mortality Table, with adjustments. The base <br />mortality table for disabled annuitants was changed from the RP-2014 Disabled Annuitant <br />Mortality Table to the Pub-2010 General/Teacher Disabled Annuitant Mortality Table, with <br />adjustments. <br /> <br />• The mortality improvement scale was changed from MP-2018 to MP-2019. <br /> <br />• The assumed spouse age difference was changed from two years older for females to one year <br />older. <br /> <br />• The assumed number of married male new retirees electing the 100.00 percent joint and <br />survivor option changed from 35.00 percent to 45.00 percent. The assumed number of <br />married female new retirees electing the 100.00 percent joint and survivor option changed <br />from 15.00 percent to 30.00 percent. The corresponding number of married new retirees <br />electing the life annuity option was adjusted accordingly.