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CITY OF SUNNY ISLES BEACH, FLORIDA <br />NOTES TO FINANCIAL STATEMENTS <br />FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 <br />NOTE 8 - OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) <br />FUNDED STATUS AND FUNDING PROGRESS <br />The actuarial valuation for the calculation of OPEB involves estimates of the value of <br />reported amounts and assumptions about the probability of events in the future. Amounts <br />determined regarding the funded status of the plan and the annual required contributions of <br />the employer are subject to continual revision, as actual results are compared to past <br />expectations and new estimates are made about the future. The required schedule of funding <br />progress presented as required supplementary information is designed to provide multi-year <br />trend information to show whether the actuarial value of plan assets is increasing or <br />decreasing over time relative to the actuarial accrued liability for benefits. However, the <br />City has not contributed assets to the plan at this time. <br />ACTUARIAL METHODS AND ASSUMPTIONS <br />Projections of benefits are based on the substantive plan (the plan as understood by the <br />employer and plan members) and include the types of benefits in force at the valuation date <br />and the pattern of sharing benefit costs between the City and the plan members to that <br />point. Actuarial calculations reflect a long-term perspective and employ methods and <br />assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities <br />and the actuarial value of assets. Significant methods and assumptions were as follows: <br />Actuarial valuation date <br />October 1, 2021 <br />Inflation rate <br />2.50% <br />Salary increase rate <br />3.00% <br />Discount rate <br />4.77% <br />Initial trend rate <br />7.50% <br />Ultimate trend rate <br />4.00% <br />Years to ultimate <br />53 <br />All mortality rates were based on the PUB -2010 mortality tables. All mortality rates are <br />those outlined in the July 1, 2019 FRS valuation reports. All tables include fully <br />generational adjustments for mortality improvements using gender -specific improvement <br />scale MP -2018. <br />64 <br />