Laserfiche WebLink
Methods and Assumptions <br />Methods <br />Actuarial Cost Method <br />Projected unit credit <br />Amortization of Unfunded <br />Level dollar amount on a closed basis <br />Actuarial Accrued Liability (UAL) <br />Actuarial Assets <br />None <br />Economic Assumptions <br />Discount Rate <br />4.50% (net of investment expenses) <br />Salary Increases <br />NA <br />Inflation Rate <br />2.50% <br />Medical Trend Rate <br />8.00% in 2012 grading to 5.00% over 6 years <br />Dental Trend Rate <br />NA <br />Other Assumptions <br />Mortality <br />RP 2000 Combined Healthy Table (with Blue Collar <br />Disability <br />Withdrawal <br />Retirement <br />Expenses <br />Percent Married <br />Age Difference <br />Retiree Plan Participation <br />Percent of Married Retirees <br />Electing Spouse Coverage <br />adjustment for Police & Fire) <br />None <br />See sample rates (differs for Police & Fire Personnel) <br />See sample rates (differs for Police & Fire Personnel) <br />Assumed paid outside of Plan <br />Males 85 %, Females 65% <br />Males assumed to be 3 years older than females <br />Future Retirees Electing Coverage: <br />Pre -65 subsidy available 100% <br />Pre -65 subsidy not available 5% <br />Percent electing pre -65 spouse coverage: <br />Spouse subsidy available 5% <br />Spouse subsidy not available 5% <br />Changes from prior valuation <br />• The health care trend rates were changed to better anticipate short term and long term <br />medical increases. <br />City of Pequot Lakes <br />Page 14 <br />