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NOTE 12 — OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) <br />F. Actuarial Methods and Assumptions <br />The total OPEB liability was deteinlined by an actuarial valuation as of January 1, 2020, using the entry <br />age noinial level percent of pay method. The following actuarial assumptions applied to all periods <br />included in the measurement, unless otherwise specified: <br />Discount rate 2.12% <br />20-year municipal bond yield 2.12% <br />Inflation rate 2.00% <br />Salary increases 3.25% <br />Healthcare cost trend rate 7.33% grading to 5.00% over 10 years <br />Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond <br />yield. <br />Mortality rates were based on the RP-2014 mortality tables used in the PERA plan of which the employee, <br />retiree, or beneficiary is a participant. <br />G. Changes in the Total OPEB Liability <br />Total OPEB <br />Liability <br />Beginning Balance $ 461,540 <br />Changes for the year <br />Service cost 69,584 <br />Interest 14,428 <br />Differences between expected and actual experience 6,307 <br />Changes of assumptions 20,586 <br />Benefit payments (9,111) <br />Total net changes 101,794 <br />Ending Balance $ 563,334 <br />Assumption changes since the prior measurement date include the following: <br />• The discount rate was changed from 2.74 percent to 2.12 percent. <br />• The healthcare trend rates were updated for changes in recent studies and inflationary adjustments. <br />90 <br />