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CITY OF RAMSEY Notes to Required Supplementary Information Public Employees Police and Fire Fund Year Ended December 31, 2023 2023 CHANGES IN ACTUARIAL ASSUMPTIONS •The investment return assumption was changed from 6.50 percent to 7.00 percent. •The single discount rate changed from 5.40 percent to 7.00 percent. 2023 CHANGES IN PLAN PROVISIONS •Additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023. •Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50.00 percent vesting after five years, increasing incrementally to 100.00 percent after 10 years. •A one-time, non-compounding benefit increase of 3.00 percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. •Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member’s occupation. •The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 CHANGES IN ACTUARIAL ASSUMPTIONS •The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. •The single discount rate was changed from 6.50 percent to 5.40 percent. 2021 CHANGES IN ACTUARIAL ASSUMPTIONS •The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. •The inflation assumption was changed from 2.50 percent to 2.25 percent. •The payroll growth assumption was changed from 3.25 percent to 3.00 percent. •The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 Public Safety Mortality Table. The mortality improvement scale was changed from MP-2019 to MP-2020. •The base mortality table for disabled annuitants was changed from the RP-2014 Healthy Annuitant Mortality Table (with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety Disabled Annuitant Mortality Table (with future mortality improvement according to Scale MP-2020). •Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates. •Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. •Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes would result in more assumed terminations. •Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. 106