Distrito Escolar del - Osceola County School District

The District’s last OPEB actuarial valuation as of June 30, 2012, used the entry age normal cost actuarial
method to estimate the unfunded actuarial liability and to determine the annual required contribution as of
June 30, 2012. Because the OPEB liability is currently unfunded, the actuarial assumptions included a 4
percent rate of return on invested assets, which is the District’s long-term expectation of investment returns
under its investment policy. The actuarial assumptions also included a payroll growth rate of 3.5 percent per
year, and an annual healthcare cost trend rate of 10.5 percent pre Medicare and 7.5 percent post Medicare
initially for the 2011-12 fiscal year, reduced to an ultimate rate of 5.5 percent for the fiscal year ending June
30, 2018. The unfunded actuarial accrued liability and gains/losses are being amortized as a level percentage
of projected payroll on a closed basis over 30 years. The remaining amortization period at June 30, 2012, is
25 years.
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