2020 Comprehensive Annual Financial Report

CITY OF SHAKOPEE SCHEDULE OF CHANGES IN THE CITY'S OPEB LIABILITY AND RELATED RATIOS

2018

2019

2018

2018

2017

Total OPEB Liability Service cost Interest

$

164,694 77,453

$

162,381 89,919

$

-

$

-

$

143,652 79,747

-

-

Differenced between expected and actual experience

- - - - -

- - - - -

- 81,560

- (69,528)

(87,621) 464,973 135,664 164,630

Changes of assumptions

Benefit payments

(72,637)

(85,589) 87,030 2,218,083

Total OPEB liability- beginning Net change in total OPEB liability

232,322 1,985,761

2,305,113

Total OPEB liability- ending

$

-

$

-

$

2,218,083

$

2,305,113

$

2,770,086

$

-

$

12,533,653

Covered Employee Payroll

$

-

$

12,472,516

$

12,982,682

City's Total OPEB Liability as a Percentage of Covered Employee Payroll

#DIV/0!

#DIV/0!

17.70%

18.48%

21.34%

Assumption changes:

In 2020, the following benefit changes occurred:

The discount rate was changed from 3.71% as of 12/31/2018 to 2.75% as of 12/31/2019 based on updated 20-year municipal bond rates as of each measurement date. In 2019, the following benefit changes occurred: The discount rate was changed from 3.31% as of 12/31/2017 to 3.71% as of 12/31/2018 based

on updated 20-year municipal bond rates as of each measurement date.

In 2018, the following benefit changes occurred:

an adjustment to reflect the impact of the Affodarble Care Act's Excise Tas on high-cost health insurance plans. Medical per capita claims costs were updated to reflect recent experience and new plan offerings. Withdrawal, retirement, mortality and salary increase rates were updated from the rates used in the 7/1/2018 PERA General and Police & Fire Employees Retirement Plan to the The discount rate was changed from 3.81% as of 12/31/2016 to 3.31% as of 12/31/2017 based on updated 20-year municipal bond rates as of each measurement date. Since the most recent GASB 45 valuation, the following changes have been made: The discount rate was changed from 3.71% to 2.75% based on updated measurement dates and GASB 75 requirements. Healthcare trend rates were reset to reflect updated const increase expectations, including rates used in the 7/1/2019 valuation. The percent of future regular retirees assumed to elect coverage at retirement changed from 50% to 30% to reflect recent plan experience. The inflation assumption remained at 2.50% based on an updated historical analysis of inflation rates and forward looking market expectations.

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