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<br />-40- <br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED) <br /> <br />Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality <br />Table. The table is adjusted slightly to fit the PERA’s experience. <br /> <br />Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent <br />four-year experience study for the General Employees Plan was completed in 2019. The assumption <br />changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. <br /> <br />The following changes in actuarial assumptions and plan provisions occurred in 2021: <br /> <br />GERF – CHANGES IN ACTUARIAL ASSUMPTIONS <br /> <br />• The investment return and single discount rates were changed from 7.50 percent to <br />6.50 percent, for financial reporting purposes. <br />• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. <br /> <br />G. Discount Rate <br /> <br />The discount rate used to measure the total pension liability in 2021 was 6.50 percent. The projection of <br />cash flows used to determine the discount rate assumed that contributions from plan members and <br />employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net <br />positions of the GERF were projected to be available to make all projected future benefit payments of <br />current plan members. Therefore, the long-term expected rate of return on pension plan investments was <br />applied to all periods of projected benefit payments to determine the total pension liability. <br /> <br />H. Pension Liability Sensitivity <br /> <br />The following table presents the City’s proportionate share of the net pension liability, calculated using <br />the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of <br />the net pension liability would be if it were calculated using a disc ount rate 1 percentage point lower or <br />1 percentage point higher than the current discount rate: <br /> <br />1% Decrease in 1% Increase in <br />Discount Rate Discount Rate Discount Rate <br />5.50%6.50%7.50% <br />City’s proportionate share of the <br /> GERF net pension liability 2,125,126$ 1,041,989$ 153,209$ <br /> <br />I. Pension Plan Fiduciary Net Position <br /> <br />Detailed information about the pension plan’s fiduciary net position is available in a separately-issued <br />PERA financial report that includes financial statements and required supplementary information. That <br />report may be obtained on the internet at www.mnpera.org. <br />