CITY COUNCIL WORKSHOP SUPPLEMENTAL

September 5, 2024 15 ACTUARIAL ASSUMPTION HIGHLIGHTS June 30, 2021 Valuation June 30, 2023 Valuation  Valuation Date  June 30, 2021  Fiscal Years 22/23 & 23/24  June 30, 2023  Fiscal Years 24/25 & 25/26  Discount Rate  6.25%, Pre-funded through CERBT Strategy #1  Same  Payroll Increases  Aggregate increase –2.75%  Merit Increases – CalPERS 2000-19 Experience Study  Same  General Inflation  2.50%  Same  Retirement, Mortality, Disability, Termination  CalPERS 2000-2019 Experience Study  Mortality improvement projection Scale MP-2021  Same September 5, 2024 16 ACTUARIAL ASSUMPTION HIGHLIGHTS June 30, 2021 Valuation June 30, 2023 Valuation  Medical Healthcare Trend Increase from Prior Year Year Non- Medicare Medicare Kaiser Other 2021 Actual Premiums/Claims 2022 Actual Premiums/Claims 2023 6.50% 4.60% 5.65% 2024 6.25% 4.45% 5.45% 2025 6.00% 4.35% 5.25% 2026 5.75% 4.25% 5.05% 2027 5.55% 4.20% 4.90% 2028 5.35% 4.15% 4.75% 2029 5.15% 4.10% 4.60% 2030 4.95% 4.05% 4.45% 2031-35 4.80% 4.00% 4.35% 2036-45 4.65% 3.95% 4.25% 2046-55 4.50% 3.90% 4.20% 2056-65 4.35% 3.85% 4.15% 2066-75 4.05% 3.80% 3.95% 2076+ 3.75% 3.75% 3.75% Increase from Prior Year Year Non- Medicare Medicare Kaiser Other 2021 n/a 2022 n/a 2023 Actual Premiums/Claims 2024 Actual Premiums/Claims 2025 8.50% 6.25% 7.50% 2026 7.90% 5.65% 6.90% 2027 7.35% 5.45% 6.50% 2028 6.75% 5.25% 6.10% 2029 6.20% 5.05% 5.70% 2030 5.60% 4.85% 5.25% 2031 5.05% 4.65% 4.85% 2032-38 4.45% 4.45% 4.45% 2039-40 4.35% 4.35% 4.35% 2041 4.30% 4.30% 4.30% ↓ ↓ ↓ ↓ 2076+ 3.45% 3.45% 3.45%