comprehensive annual financial report - Orlando International Airport

GREATER ORLANDO AVIATION AUTHORITY
NOTES TO FINANCIAL STATEMENTS
Years Ended September 30, 2009 and 2008
12. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (continued)
Actuarial Methods and Assumptions: Projections of benefits are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits in force at the valuation date and
the pattern of sharing benefit costs between the Authority and the GOAAHP members to that point. Actuarial
calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce
short-term volatility in actuarial accrued liabilities and the actuarial value of assets. During the year ended
September 30, 2009 the assumption for the investment rate of return was changed from 6% for prior years to 4%
for the current year. Significant methods and assumptions were as follows:
Actuarial Valuation Date October 1, 2009
Actuarial Cost Method
Amortization Method
Projected Unit Credit
Level Dollar amounts
Amortization Period 30
Asset Valuation Method
N/A
Investment Rate of Return 4.0%
Projected Salary Increase
N/A
Healthcare Inflation Rate:
Year Medical Rate Dental Rate Vision Rate
2010 9.00% 0.00% (4.00%)
2011 7.50% 5.00% 5.00%
2012 7.00% 5.00% 5.00%
2013 6.50% 5.00% 5.00%
2014+ 6.00% 5.00% 5.00%
The required schedule of funding progress presented as required supplementary information immediately
following the notes to the financial statements presents multi year trend information about whether the actuarial
value of plan assets is increasing or decreasing over time, relative to the actuarial accrued liability for benefits.
47