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CITY OF RAMSEY <br />Notes to Required Supplementary Information <br />Public Employees Police and Fire Fund <br />Year Ended December 31, 2025 <br />2025 CHANGES IN ACTUARIAL ASSUMPTIONS <br />• Assumed rates of salary increases were reduced slightly. <br />• Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) <br />retirements and an overall increase in reduced (early) retirements. <br />• Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, <br />especially in the first few years of employment. <br />• Assumed rates of disabled retirement were significantly increased, especially for ages of age <br />30. <br />• Continued use of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit <br />observed experience. <br />• Percent married assumption for female retirees lowered from 70% to 65%. <br />• Minor changes were made to form of payment assumptions for retirees. <br />• Minor changes were made to assumptions made with respect to missing participant data. <br />• The combined service annuity load changed from 33% to 13% for vested, terminated members <br />and from 2% to 38% for non -vested, terminated members. <br />2025 CHANGES IN PLAN PROVISIONS <br />• The period of time needed for benefit recipients to receive their first benefit increase was <br />reduced by one year (from 36 months to 24 months for a full increase). <br />• The January 1, 2026 benefit increase changed from 1% to 3%; subsequent January 1 increases <br />will be 1%. <br />• The threshold to end the $9 million annual state aid contribution changed from the earlier of <br />July 1, 2048 or 90% funded for both PERA PEPFF and MSRS State Patrol for three consecutive <br />years to 100% funded for both PERA PEPFF and MSRS State Patrol for three consecutive <br />years (on an actuarial value of assets basis). <br />• The threshold to end the additional $9 million annual state aid contribution changed from the <br />earlier of July 1, 2048 or 100% funded for a minimum of three consecutive years to 110% <br />funded for a minimum of three consecutive years (on an actuarial value of assets basis). <br />• An additional $17.7 million in direct state aid will be paid annually each October 1 beginning <br />October 1, 2025 through June 30, 2048. <br />• Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. <br />106 <br />