Laserfiche WebLink
CITY OF ROSEVILLE, MINNESOTA <br /> NOTES TO FINANCIAL STATEMENTS <br /> December 31, 2016 <br /> <br /> <br /> <br /> <br />Salary increases were based on a service-related table. Mortality rates for active members, <br />retirees, survivors, and disabilitants were based on RP-2000 tables for males or females, as <br />appropriate, with slight adjustments. Benefit increases for retirees are assumed to be 1% <br />effective every January 1st through 2026 and 2.5% thereafter. <br /> <br />Actuarial assumptions used in the June 30, 2016 valuation were based on the results of <br />actuarial experience studies. The most recent four-year experience study in the General <br />Employees Plan was completed in 2015. The experience study for Police and Fire Plan was <br />for the period July 1, 2004 through June 30, 2009. <br /> <br /> The following changes in actuarial assumptions occurred in 2016: <br /> <br />General Employees Fund <br /> The assumed post-retirement benefit increase rate was changed from 1.0% per year through <br />2035 and 2.5% per year thereafter to 1.0% per year for all future years. <br /> The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was <br />changed from 7.9% to 7.5%. <br /> Other assumptions were changed pursuant to the experience study dated June 30, 2015. The <br />assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to <br />3.25% for payroll growth and 2.50% for inflation. <br /> <br />Police and Fire Fund <br /> The assumed post-retirement benefit increase rate was changed from 1.0% per year through <br />2037 and 2.5% thereafter to 1.0% per year for all future years. <br /> The assumed investment return was changed from 7.9% to 7.5%. The single discount rate <br />changed from 7.9% to 5.6%. <br /> The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% <br />to 3.25% for payroll growth and 2.50% for inflation. <br /> <br />The State Board of Investment, which manages the investments of PERA, prepares an analysis of <br />the reasonableness on a regular basis of the long-term expected rate of return using a building- <br />block method in which best-estimate ranges of expected future rates of return are developed for <br />each major asset class. These ranges are combined to produce an expected long-term rate of <br />return by weighting the expected future rates of return by the target asset allocation percentages. <br /> <br /> T h e t a r g e t a l l o c a t i o n a n d b e s t e s t i m a t e s o f g e o m e t r i c r e a l rates of return for each major asset class <br /> a r e s u m m a r i z e d i n t h e f o l l o w ing table: <br /> <br /> <br />67 <br />Item 8: Attachment D