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CITY OF EUGENE, OREGON <br /> <br />Notes to Basic Financial Statements <br /> <br />continued <br />(5) Other Information, continued <br /> <br /> (E) Other Post-Employment Benefits (OPEB) – Retirement Health Insurance Account (RHIA), continued <br /> <br />OPEB Assets, Liabilities, OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources <br />Related to OPEB, continued <br /> <br />The $494,750 reported as deferred outflows of resources related to OPEB resulting from City contributions <br />subsequent to the measurement date will be recognized as a reduction of the net OPEB liability (asset) in the year <br />ending June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources <br />related to OPEB will be recognized as OPEB expense (income) as follows: <br /> <br />Deferred outflows <br />Fiscal year and (inflows) <br />ending June 30 of resources <br />2019 $ (51,962) <br />2020 (51,961) <br />2021 (51,057) <br />2022 (48,947) <br />Actuarial Valuations <br /> <br />See actuarial valuations included in note 5 (C) Retirement Plan – Oregon PERS (OPERS) <br /> <br />GASB Statement No. 75 reporting requirements allows for the measurement date (June 30, 2017) to be 12 months <br />prior to the reporting date (June 30, 2018) and the actuarial valuation date (December 31, 2015) to be 30 months <br />prior to the reporting date. The new OPEB asset (liability) for the June 30, 2019 reporting data will be based on the <br />December 31, 2016 actuarial valuation date. <br /> <br />Discount Rate <br /> <br />The discount rate used to measure the total OPEB liability was 7.5%. The projection of cash flows used to determine <br />the discount rate assumed that contributions from plan members and those of the contributing employers are made at <br />the contractually required rates, as actuarially determined. Based on those assumptions, the RHIA plan’s fiduciary net <br />position was projected to be available to make all projected future benefit payments of current plan members. <br />Therefore, the long-term expected rate of return on OPEB plan investments for the RHIA plan was applied to all <br />periods of projected benefit payments to determine the total OPEB liability. <br /> <br />Long-Term Expected Rate of Return <br /> <br />See Long-Term Expected Rate of Return included in note 5 (C) Retirement Plan – Oregon PERS (OPERS) <br /> <br />Depletion Date Projection <br /> <br />GASB 75 generally requires that a blended discount rate be used to measure the Total OPEB Liability (the Actuarial <br />Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on <br />plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position is projected to <br />cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate <br />must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and <br />administrative expenses. Determining the discount rate under GASB 75 will often require that the actuary perform <br />complex projections of future benefit payments and OPEB plan investments. GASB 75 (paragraph 82) does allow for <br />alternative evaluations of projected solvency, if such evaluation can reliably be made. GASB does not contemplate a <br />specific method for making an alternative evaluation of sufficiency; it is left to professional judgment. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />78 <br />December 10, 2018, Meeting - Item 2D