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CITY OF RAMSEY <br />Notes to Required Supplementary Information <br />General Employees Retirement Fund <br />Year Ended December 31, 2025 <br />2025 CHANGES IN ACTUARIAL ASSUMPTIONS <br />• The combined service annuity loading factors increased from 15% to 19% for vested terminated <br />members and from 3% to 44% for non -vested, terminated members. <br />• The assumed post -retirement benefit increase changed from 1.25% to 1.5%. <br />2025 CHANGES IN PLAN PROVISIONS <br />• The post -retirement benefit increase formula changed to 100% of the Social Security annual <br />increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market <br />value of assets basis) is less than 85% for the last two consecutive annual valuations or is less <br />than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, <br />the benefit increase was 50.00% of the Social Security annual increase, between 1% and 1.5%. <br />• The 1% additional employer contribution is eliminated when the plan reaches 98% funded <br />status (on an actuarial value of assets basis); this contribution was previously scheduled to stop <br />when the plan reached 100% funded status. <br />2024 CHANGES IN ACTUARIAL ASSUMPTIONS <br />• Rates of merit and seniority were adjusted, resulting in slightly higher rates. <br />• Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced <br />retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early <br />retirement rates for Tier 1 and Tier 2 members. <br />• Minor increase in assumed withdrawals for males and females. <br />• Lower rates of disability. <br />• Continued use of Pub-2010 general mortality table with slight rate adjustments as <br />recommended in the most recent experience study. <br />• Minor changes to form of payment assumptions for male and female retirees. <br />• Minor changes to assumptions made with respect to missing participant data. <br />2024 CHANGES IN PLAN PROVISIONS <br />• The workers' compensation offset for disability benefits was eliminated. The actuarial <br />equivalent factors updated to reflect the changes in assumptions. <br />2023 CHANGES IN ACTUARIAL ASSUMPTIONS <br />• The investment return assumption and single discount rate were changed from 6.50 percent to <br />7.00 percent. <br />102 <br />