Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the Authority's Total OPEB Liability, calculated using the current discount rate. It also presents what the Authority's Total OPEB Liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current rate. 1% Decrease (1.21%) Total OPEB liability $ 15,537,333 Current Discount Rate (2.21%) $ 14,470,342 1% Increase (3.21%) $ 13,457,150 Sensitivity of the total OPEB liability to changes in the healthcare cost trend rate The following presents the Authority's Total OPEB Liability, calculated using the current healthcare trend rates. It also presents what the Authority's Total OPEB Liability would be if it were calculated using healthcare trend rates that are one percentage point lower or one percentage point higher than the current rate. 1% Decrease (5.30%) Total OPEB liability $ 12,836,786 Current Trend Rate (6.30%) $ 14,470,342 1% Increase (7.30%) $ 16,424,095 (d) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2020, the Authority recognized OPEB expense of $1,206,539. At June 30, 2020, the Authority reported deferred inflows and deferred outflows of resources related to OPEB from the following sources: Deferred Outflows Differences between expected and actual experience Changes of assumptions or inputs Total $ of Resources 527,949 $ 428,214 956,163 Deferred Inflows of Resources $ $ – 211,955 211,955 Amounts reported as deferred inflows and outflows of resources related to OPEB will be recognized in OPEB expenses as follows: Years Ending June 30, 2021 2022 2023 2024 2025 Thereafter Total Amount $ 120,108 120,108 120,108 120,108 118,559 145,217 $ 744,208 III. Other Postemployment Benefits (OPEB) – Group Life Insurance (GLI) (a) Plan Description The Authority provides all full-time salaried permanent employees automatic coverage by VRS Group Life Insurance Program upon employment. The Group Life Insurance Program is a multiple employer, cost-sharing defined benefit plan that provides a basic group life insurance benefit for employees and participating employers. The Authority pays 100% of the monthly premiums, with no contributions made by the employees. None of the assets in the Plan are accumulated in a trust therefore do not meet trust accounting requirements per paragraph 4 of GASB Statement No. 75. 64 FINANCIAL SECTION NOTES TO FINANCIAL STATEMENTS
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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