Agenda Packet 12-9-19 Meeting - Laserfiche WebLink

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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 3.38% 4.44% 5 1.94% 2.39% 10 0.99% 1.23% 15 0.43% 0.69% 20 0.14% 0.52% 25 0.02% 0.44% 30 + -0.04% 0.21% Healthcare cost trend rate: Mortality: Months. Disabled mortality: Female Adjustment: Blended 50% blue collar/50% white collar, no set back. Basic table: RP 2014, Disabled Retiree, sex distinct, generational, no collar adjustment, no set back. Improvement Scale: Unisex Social Security Data Scale (60 year average). Male Adjustment: Blended 50% blue collar/50% white collar, setback 12 Actuarial assumptions June 30, 2019 to 6.0% for those years ending beyond June 30, 2029. 4.00% per year, based on all years discounted at municipal bound rate. 3.5% 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 7.0% from the year ended 50% of active employees currently enrolled in City medical plan are assumed to remain enrolled at retirement until Medicare eligibility. July 1, 2018 June 30, 2018 Entry Age Normal Basic table: RP 2014, Employee/Healthy Annuitant, sex distinct, generational. Improvement Scale: Unisex Social Security Data Scale (60 year average). 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, 2018) to be 12 months prior to the reporting date (June 30, 2019) and the actuarial valuation date (July 1, 2018) to be 30 months prior to the reporting date. 78 December 9, 2019, Meeting - Item 2CCC Agenda - Page 122