2021 Annual Comprehensive Financial Report

Net OPEB Liability of the City The components of the net OPEB liability of the City at June 30, 2021 were as follows:

Total OPEB liability

$

158,860,712 34,410,458 124,450,254

Plan fiduciary net position City's net OPEB liability

$

Plan fiduciary net position as a percentage of the total OPEB liability

21.66%

Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation as of June 30, 2020 using the following actuarial assumptions applied to periods included in the measurement, unless otherwise specified:

Inflation

2.50% 0.75% 3.25%

Real wage growth Wage inflation

Salary increases, including wage inflation General employees

3.25 - 8.41% 3.25% - 8.15% 3.25% - 7.90%

Firefighters

Law enforcement officers

Long-term investment rate of return (LIRR), net of OPEB plan investment expense, including price inflation

5.50%

Municipal bond index rate Prior measurement date

2.21% 2.16%

Measurement date

Year Fiduciary net position is projected to be depleted Prior measurement date

2033 2038

Measurement date

Single equivalent interest rate (SEIR), net of OPEB plan investment expense, including price inflation Prior measurement date

2.75% 3.00%

Measurement date

Health care cost trends

7.00% for 2020 decreasing to an ultimate rate of 4.50% by 2030

Pre-medicare

Mortality rates were based on the Pub-2010 mortality tables, with adjustments for LGERS experience and generational mortality improvements using Scale MP-2019. The demographic actuarial assumptions for retirement, disability incidence, withdrawal, and salary increases used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period January 1, 2015 - December 31, 2019, adopted by the LGERS Board.

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