2022 CAFR - Laserfiche WebLink

Home

NOTE 13 — OTHER POST -EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) G. Changes in the Total OPEB Liability Beginning Balance Changes for the year Service cost Interest Differences between expected and actual experience Changes of assuinp tions Benefit pay nients Total OPEB Liability $ 563,334 81,145 13,589 510,595 (365,412) (6,965) Total net changes 232,952 Ending Balance $ 796,286 Assumption changes since the prior measurement date include the following: • The discount rate was changed from 2.12 percent to 2.06 percent. • The healthcare trend rates and plan experience assumptions were updated for changes in recent studies and inflationary adjustments. H. Total OPEB Liability Sensitivity to Discount and Health -Care Cost Trend Rate Changes The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Discount Rate OPEB discount rate 1.06% Discount 1% Increase in Rate Discount Rate 2,06% 3.06% Total OPEB liability $ 847,318 $ 796,286 $ 743,8E-1 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates: OPEB healthcare trend rate 1% Decrease in Healthcare Cost Trend Rate Healthcare Cost Trend 1% Increase in Rate Healthcare Cost Trend Rate 5.204/0 grading to 2.9% 6.20°% grading to 3.9% over several decades over several decades 7.20% grading to 4.9% over several decades Total OPEB liability $ 683,233 $ 796,286 $ 932,073 92