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<br />NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) <br /> <br />1. GERF (Continued) <br /> <br />x A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will <br />be payable in lump sum for calendar year 2024 by March 31, 2024. <br /> <br />2. PEPFF <br />x Additional one-time direct state aid contribution of $19.4 million will be contributed to the <br />Plan on October 1, 2023. <br /> <br />x Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year <br />vesting schedule to a graded 10-year vesting schedule, with 50.0% vesting after five years, <br />increasing incrementally to 100.0% after 10 years. <br /> <br />x A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for <br />calendar year 2024 by March 31, 2024. <br /> <br />x Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability <br />benefit for psychological condition relating to the member’s occupation. <br /> <br />x The total and permanent duty disability benefit was increased, effective July 1, 2023. <br /> <br />G. Discount Rate <br /> <br />The discount rate used to measure the total pension liability in 2023 was 7.0%. 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 />the GERF and the PEPFF were projected to be available to make all projected future benefit payments of <br />current plan members. Therefore, the long-term expected rate of return on pension plan investments was <br />applied to all periods of projected benefit payments to determine the total pension liability. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />88