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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2020 <br />NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued <br />D. Actuarial Methods and Assumptions - Continued <br />Healthcare Cost Trend Rates <br />Based on the Getzen Model, with trend <br />starting at 6.5% and gradually decreasing to <br />an ultimate trend rate of 4.24%. <br />Aging Factors Based on the 2013 SOA Study "Health Care <br />Costs - From Birth to Death". <br />Expenses <br />Other Information: <br />Notes <br />E. Discount Rate <br />Calculation of the Single Discount Rate <br />Investment expenses are net of the investment <br />returns; Administrative expenses are included in the <br />per capita health costs. <br />There were no benefit changes during the year. <br />GASB Statement No. 74 includes a specific requirement for the discount rate that is used <br />for the purpose of the measurement of the Total OPEB Liability. This rate considers the <br />ability of the fund to meet benefit obligations in the future. To make this determination, <br />employer contributions, employee contributions, benefit payments, expenses and <br />investment returns are projected into the future. The Plan Net Position (assets) in future <br />years can then be determined and compared to its obligation to make benefit payments in <br />those years. As long as assets are projected to be on hand in a future year, the assumed <br />valuation discount rate is used. In years where assets are not projected to be sufficient to <br />meet benefit payments, the use of a municipal bond rate is required, as described in the <br />following paragraph. <br />100 <br />