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7.1.A. - Page 92 , <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2014 <br /> NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <br /> For the fiscal year ended June 30, 2014, the Port's annual OPEB cost was $32,421; of this amount <br /> $1,539 was expensed and funded by reimbursements to current retirees and the remaining $30,882 net <br /> OPEB obligation was expensed and recorded as a liability. Combined with the $141,250 net OPEB <br /> obligation as of June 30, 2013, the total net OPEB obligation as of June 30, 2014 was $172,132. <br /> The annual required contribution was determined as part of the July 1, 2013 actuarial valuation using <br /> the Entry Age Actuarial Cost Method and assumptions consistent with the CaIPERS OPEB Assumptions <br /> Model. The actuarial assumptions included: (a) salary increases of 3.25% per year, (b) a discount rate of <br /> 7.61 %, (c) 100% of eligible employees assumed to elect coverage upon retirement and to remain <br /> covered for life, (d) retirement, withdrawal, and mortality rates based on CaIPERS Assumption model <br /> for the classification "public agency miscellaneous 2.7% at 55 ", and (e) medical premium inflation rates <br /> ranging from 9% to 6% over time. The actuarial present value of future benefits was calculated for each <br /> individual using the economic assumptions and specific member data, then aggregated. The <br /> amortization component of the unfunded actuarial accrued liability was based on a 30 year <br /> amortization period. <br /> The following table shows the components of the Port's annual OPEB costs for the year, the amount <br /> actually contributed to the plan, and changes in the Port's net OPEB obligation: <br /> Annual OPEB Costs and Net OPEB Obligation <br /> Normal cost 7,905 <br /> Amortization of unfunded actuarial accrued liability 23,150 <br /> Annual required contribution 31,055 <br /> Interest on beginning net OPEB obligation 10,470 <br /> Annual required contribution adjustment (9,104) <br /> Annual OPEB expense 32,421 <br /> Actual current year employer payment (1,539) <br /> Increase in OPEB obligation 30,882 <br /> Net OPEB obligation at June 30, 2013 141,250 <br /> Net OPEB obligation at June 30, 2014 172,132 <br /> OPEB Unfunded Actuarial Accrued Liabilities <br /> Actuarial accrued liabilities 349,824 <br /> Actuarial value of plan assets <br /> Unfunded actuarial accrued liabilities (UAAL) 349,824 <br /> Funded ratio 0% <br /> Covered payroll 636,746 <br /> UAAL as a % of covered payroll 54.94% <br /> 64 <br />