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CITY OF SAN LEANDRO <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />For The Year Ended June 30, 2024 <br /> <br /> <br />NOTE 16 – OTHER POST EMPLOYMENT BENEFITS (Continued) <br /> <br />Amendments to benefit provisions are negotiated by various bargaining units at the City and must be <br />approved by Council. In fiscal year 2008-09, the City established an irrevocable exclusive agent multi- <br />employer benefit trust which is administered by Public Agency Retirement Services (PARS). The trust <br />will be used to accumulate and invest assets necessary to reimburse retirees. No separate financial reports <br />are issued by PARS for the OPEB plan. <br /> <br />Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the <br />measurement date of June 30, 2024: <br /> <br />Active employees 325 <br />Inactives currently receiving benefit payments 297 <br />Inactive entitled to but not yet <br />receiving benefit payments 221 <br />Total 843 <br /> <br /> <br />B. Net OPEB Liability <br /> <br />Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2024 <br />and the total OPEB liability used to calculate the net OPEB liability was determined on actuarial valuation <br />date that was rolled forward using standard update procedures to determine the total OPEB liability as of the <br />measurement date, based on the following actuarial methods and assumptions: <br /> <br />Actuarial Assumptions June 30, 2024 Measurement Date <br />Valuation Date • June 30, 2023 <br />Actuarial Cost Method • Entry Age Normal Level Percentage of Payroll <br />Funding Policy • City contributes full Actuarial Determined Contribution <br />Discount Rate • 4.50% <br />General Inflation • 2.30% annually <br />Mortality, Retirement, <br />Disability, Termination • CalPERS 2020 Experience Study <br />Salary Increases • 2.80% <br />• Additional merit-based on CalPERS merit 2021 Experience Study <br />Healthcare Cost Trend • Non-Medicare -7.40% for 2024, decreasing to an ultimate rate of 4.14% in 2076 <br />• Medicare -4.2% for 2024, decreasing to an ultimate rate of 4.14% in 2076 <br />Mortality Improvement • Mortality projected fully generational with Scale MP-2020. <br />PEMHCA Minimum Increases • 4.00% Annually. <br /> <br /> <br />86