(b) Total OPEB Liability (TOL) The Authority’s OPEB liability was measured as of June 30, 2020, and the total OPEB Liability was determined by an actuarial valuation as of July 1, 2019. Actuarial Assumptions The total OPEB liability in the July 1, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation Salary increases, including inflation Discount rate* Age related claims cost** Healthcare trend costs Mortality Rates • Pre-retirement • Post-retirement • Post-disablement 2.5% 2.5% - 5.35% 3.50% as of June 30, 2019 2.21% as of June 30, 2020 6.3% for fiscal 2020, 4.9% for fiscal 2021, 5.3% for fiscal 2022, then grading to an ultimate rate of 4.0% for 2074. RP-2014 Employee Rates to age 80, Healthy Annuitant at ages 81 and older projected with scale BB to 2020; males setback 1 year, 85% of rates; females setback 1 year; 25% of deaths are assumed to be service-related. RP-2014 Employee Rates to age 49, Healthy Annuitant Rates at ages 50 and older projected with Scale BB to 2020; males set forward 1 year; females setback 1 year with 1.5% increase compounded from ages 70 to 85. RP-2014 Disabled Mortality Rates projected with Scale BB to 2020; males 115% of rates; females 130% of rates. * Discount rates used to measure TOL were based on the municipal bond market conditions as of the respective measurement dates. ** Age-related claims cost assumptions for medical and dental were developed using the plan’s premiums. Manual age-related morbidity factors from the Actuary’s Health Cost Guidelines were applied to the premiums to produce the claims costs. The actuarial assumptions used in the July 1, 2019 valuation were based on the results of an experience study for the period July 1, 2012 through June 30, 2016. (c) Changes in the Total OPEB Liability Total OPEB Liability $ 13,448,690 Balance at June 30, 2019 Changes for the Year: Service cost Interest Effect of economic/demographic gains or losses Effect of assumption changes or other inputs Benefit payments Net changes Balance at June 30, 2020 609,660 476,771 611,750 203,685 (880,214) 1,021,652 $ 14,470,342 NOTES TO FINANCIAL STATEMENTS FINANCIAL SECTION 63
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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