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Other Post -Employment Benefit Programs of the City of "" <br />Actuarial Valuation as of July 1, 2015 <br />Executive Summary <br />(Concluded) <br />The liabilities shown in the report reflect assumptions regarding continued future <br />employment, rates of retirement and survival, and elections by future retirees to retain <br />coverage for themselves and their dependents. Please note that this valuation has been <br />prepared on a closed group basis; no provision is generally made for new employees until <br />the valuation date following their employment. <br />The results of this valuation reflect, for the first time, an Implicit subsidy (lability for retirees <br />prior to qualifying for Medicare. An exhibit comparing current valuation results to those from <br />the prior valuation is provided on page 6, followed by a descriptid'ri of changes impacting the <br />results. An actuarial valuation is, by its nature, a projection iand to the extent that actual <br />experience is not what we assumed, future results will be different. Some possible sources <br />of future differences may include: <br />• A significant change in the number of covere4or,eligible plan members; <br />• A significant increase or decrease in the future' medical premium rates or in the <br />subsidy provided by the City toward retiree,tnedical premiums; <br />• Longer life expectancies of retiree <br />• Significant changes in expecte< <br />healthcare claims for active empto <br />• Higher or lower returns on planus <br />• Implementation of GASB 75, the <br />are similar to those adopted in GP <br />Including a shift in reporting the <br />balance sheet <br />claims, by age, relative to <br />than`were assumed; and <br />';OPEB accounting standard. Many provisions <br />')9 -fpr def! ried,benefit retirement plan liabilities, <br />unded .OPEB liability from a footnote to the <br />Details of our valuation process and the various disclosures required by GASB 45 are <br />provided on the succeeding: pages. The next valuation is scheduled to be prepared as of <br />July 1, 2017 as required for'cantinued"participation in CERBT. If there are any significant <br />changes in the employee data, behe'fits provided or the funding policy, please contact us to <br />discuss whether an earlier valuation is appropriate. <br />Important Notices <br />This report is intended to be used only to present the actuarial information relating to other <br />postemployment benefitsfor the City's financial statements and to provide the annual <br />contribution information with respect to the City's current OPEB funding policy. The results <br />of this report may not be appropriate for other purposes, where other assumptions, <br />methodology and/or actuarial standards of practice may be required or more suitable. We <br />note that various issues in this report may involve legal analysis of applicable law or <br />regulations. The City should consult counsel on these matters; Bickmore does not practice <br />law and does not intend anything in this report to constitute legal advice. In addition, we <br />recommend the City consult with their internal accounting staff or external auditor or <br />accounting firm about the accounting treatment of OPEB liabilities. <br />BICkmo e <br />