RVCC 2019 NECHE Self-Study

Amounts reported as deferred outflows related to pensions resulting from CCSNH contributions
subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in
the year ending June 30, 2019. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Actuarial Assumptions
Year ending June 30,
2019 $ (6,179,518)
2020 (6,179,518)
2021 (6,179,518)
2022 (6,179,518)
2023 (6,178,723)
2024 183,043
$ (30,713,752)
The collective total OPEB liability was determined by a roll forward of the actuarial valuation as of
December 31, 2016, using the following actuarial assumptions, which apply to 2017
measurements:
Actuarial cost method
Projected unit credit
Amortization method
Level percent of pay,
open Remaining amortization period 30 years
Investment rate of return not applicable as there are no invested assets
Salary rate increase - Group I 13.25% decreasing over 9 years to an ultimate level of
3.75% Discount rate 3.58% as of June 30, 2017 and 2.85% as of June 30, 2016
Inflation
3.25% per year
Healthcare trend rates are based on the following:
Medical:
Under 65: 7.4% for one year then 4.5% per year.
Over 65: 1.4% for one year then 4.5% per year.
Prescription Drug:
Under 65: 12.8% for one year then 9% decreasing by .5% each year to an ultimate level of 4.5%
per year.
Over 65: (6.1%) for one year then 9% decreasing by .5% each year to an ultimate level of 4.5%
per year.
Contributions – Retiree contributions are expected to increase with a blended medical and
prescription drug trend.
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