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CITY OF RAMSEY <br /> Notes to Required Supplementary Information <br /> General Employees Retirement Fund <br /> Year Ended December 31,2021 <br /> 2021 CHANGES IN ACTUARIAL ASSUMPTIONS <br /> • The investment return and single discount rates were changed from 7.50 percent to 6.50 <br /> percent,for financial reporting purposes. <br /> • The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. <br /> 2020 CHANGES IN ACTUARIAL ASSUMPTIONS <br /> • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. <br /> • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. <br /> • Assumed salary increase rates were changed as recommended in the June 30,2019 experience <br /> study. The net effect is assumed rates that average 0.25 percent less than previous rates. <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 Rule of <br /> 90 and early retirements. <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 than the previous rates for <br /> years 2-5 and slightly higher thereafter. <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 /> • The base mortality table for healthy annuitants and employees was changed from the RP-2014 <br /> table to the Pub-2020 General Mortality table,with adjustments. The base mortality table for <br /> disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the <br /> Pub-2010 General/Teacher disabled annuitant mortality table,with adjustments. <br /> • The mortality improvement scale was changed from Scale MP-2018 to MP-2019. <br /> • The assumed spouse age difference was changed from two years older for females to one year <br /> older. <br /> • The assumed number of married male new retirees electing the 100 percent Joint and Survivor <br /> option changed from 35 percent to 45 percent. The assumed number of married female new <br /> retirees electing the 100 percent Joint and Survivor option changed from 15 percent to 30 <br /> percent. The corresponding number of married new retirees electing the Life annuity option <br /> was adjusted accordingly. <br /> 102 <br />