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NOTE 9—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) <br /> 2. PEPFF: <br /> • The investment return and single discount rates were changed from 7.50% to 6.50%, for <br /> financial reporting purposes. <br /> • The inflation assumption rate was changed from 2.50%to 2.25%. <br /> • The payroll growth assumption was changed from 3.25%to 3.00%. <br /> • The base mortality table for healthy annuitants and employees was changed from the RP-2014 <br /> table to the Pub-2010 Public Safety Mortality table. The mortality improvement scale was <br /> changed from MP-2019 to MP-2020. <br /> • The base mortality table for disabled annuitants was changed from RP-2014 healthy annuitant <br /> mortality table (with future mortality improvement according to Scale MP-2019) to the Pub- <br /> 2010 Public Safety disabled annuitant mortality table (with future mortality improvement <br /> according to Scale MP-2020). <br /> • Assumed rates of salary increase were modified as recommended in the July 14, 2020 <br /> experience study. The overall impact is a decrease in gross salary increase rates. <br /> • Assumed rates of retirement were changed as recommended in the July 14, 2020 experience <br /> study. The changes result in slightly more unreduced retirements and fewer assumed early <br /> retirements. <br /> • Assumed rates of withdrawal were changed from select and ultimate rates to service-based <br /> rates. The changes result in more assumed terminations. <br /> • Assumed rates of disability were increased for ages 2544 and decreased for ages over 49. <br /> Overall,proposed rates result in more projected disabilities. <br /> • Assumed percent married for active female members was changed from 60% to 70%. Minor <br /> changes to form of payment assumptions were applied. <br /> G. Discount Rate <br /> The discount rate used to measure the total pension liability in 2021 was 6.5%. The projection of cash <br /> flows used to determine the discount rate assumed that contributions from plan members and employers <br /> will be made at rates set in Minnesota Statutes. Based on these assumptions,the fiduciary net positions of <br /> GERF and PEPFF were projected to be available to make all projected future benefit payments of current <br /> plan members. Therefore,the long-term expected rate of return on pension plan investments was applied <br /> to all periods of projected benefit payments to determine the total pension liability. <br /> 86 <br />