Agenda Packet 12-10-18 Meeting - REVISED

Home Browse Search

CITY OF EUGENE, OREGON Notes to Basic Financial Statements continued (5) Other Information, continued (F) Other Post-Employment Benefits (OPEB) – Retiree Health and Life Insurance Plan (RHLI), continued Actuarial Assumptions The total OPEB liability in the July 1, 2016 actuarial valuation was determined using the following: Valuation Date: Measurement Date: Actuarial cost method Inflation rate: 2.50% Discount Rate: Projected salary increases: Participation: Salary Merit Scale: General Police & Duration Service Fire 0 3.95% 5.17% 5 2.24% 2.71% 10 1.22% 1.41% 15 0.71% 0.90% 20 0.52% 0.81% 25 0.45% 0.76% 30 0.29% 0.39% 31 + 0.00% 0.00% Healthcare cost trend rate: Mortality: Male: Female: Disabled mortality: Actuarial assumptions July 1, 2016 June 30, 2017 Entry Age Normal June 30, 2017 to 5.0% for those years ending beyond June 30, 2031. RP-2000 male table, combined active/healthy annuitant, blended 25% blue 3.75% per year, based on all years discounted at municipal bound rate. 2.5% per year plus the Salary Merit Scale below. 100% of active employees eligible for post-employment life insurance benefits. Total payroll increase is overall payroll growth plus merit table below. Healthcare rates decrease 0.1% annually from 6.5% from the year ended 50% of active employees currently enrolled in City medical plan are assumed to remain enrolled at retirement until Medicare eligibility. Scale BB. Mortality rates for active male and female participants are 75% and 65% of the collar, 75% white collar, set back 12 months, and projected generationally with collar, 75% white collar, set back 12 months, and projected generationally with Scale BB. RP-2000 female table, combined active/healthy annuitant, blended 25% blue above rates, respectively. RP-2000 male/female tables, disabled annuitant, no collar, and projected generationally with Scale BB. For ages below 85, mortality rates for active male and female participants are 70% and 95% of the above rates, respectively. Actuarial valuations of an ongoing plan involve estimates of the value of projected benefits and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. GASB Statement No. 75 reporting requirements allows for the measurement date (June 30, 2017) to be 12 months prior to the reporting date (June 30, 2018) and the actuarial valuation date (July 1, 2016) to be 30 months prior to the reporting date. 82 December 10, 2018, Meeting - Item 2D