RVCC 2019 NECHE Self-Study

Mortality rates were based on the following:
Pre-retirement mortality rates – Healthy: RP-2014 employee mortality table projected
generationally for males and females with Scale MP-2015.
Postretirement mortality rates:
Healthy: RP-2014 healthy annuitant mortality table projected generationally for males and
females with Scale MP-2015.
Disabled: RP-2014 disabled annuitant mortality table projected generationally for males and
females with Scale MP-2015.
The following scale factors for each member classification are applied to all mortality tables:
Scale - Male
Scale - Female
Group I Group II - Police Group II -
Fire
116 %
99 %
100 %
124 %
106 %
101 %
The actuarial assumptions used in the June 30, 2017 and 2016 valuations were based on the results
of the most recent actuarial experience study, which was for the period of July 1, 2010 to June 30,
2015.
Effective January 1, 2019, the State implemented a Medicare Advantage plan which is anticipated
to reduce the overall plan liability in the year of implementation.
Discount Rate
Because the State OPEB Plan is not funded, the discount rate is based on the yield or index rate for
20-year, tax-exempt general obligation municipal bonds with an average rate of AA/Aa or higher as
shown in the Bond Buyer 20-Bond General Obligation Index.
Changes in Assumptions
The trend assumptions were revised from the 2016 measurements to the 2017 measurements to
reflect current and future expectations. In addition, the discount rate used to measure the total OPEB
liability was increased from 2.85% as of June 30, 2016 to 3.58% as of June 30, 2017.
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