Laserfiche WebLink
6.A. - Page 102 of 191 <br />CITY OF REDWOOD CITY <br />NOTES TO THE BASIC FINANCIAL STATEMENTS <br />For the Fiscal Year Ended June 30, 2019 <br />NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <br />B. Post Employment Benefits, Continued <br />Contributions <br />The OPEB Plan and its contribution requirements are established by Memoranda of Understanding with the <br />applicable employee bargaining units and may be amended by agreements between the Authority and the <br />bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal <br />year ended June 30, 2019, the City's cash contributions were $4,568,901 in payments to the trust plus <br />$3,241,475 cash benefit payments and the estimated implied subsidy was $724,000 resulting in total <br />payments of $8,553,676. <br />Net OPEB Liability <br />The City's net OPEB liability was measured as of June 30, 2018 and the total OPEB liability used to <br />calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2017, based on the <br />following actuarial methods and assumptions: <br />Actuarial Assumption <br />Discount Rate <br />6.75% <br />Inflation <br />2.75% per annum <br />Salary Increases <br />Aggregate -3% <br />Investment Rate of Return <br />6.75% <br />Mortality Rate <br />(1) Derived using CalPERS' Membership <br />Data for all funds <br />Pre -Retirement Turnover <br />(2) Derived using CalPERS' Membership <br />Data for all funds <br />Healthcare Trend Rate <br />Non -Medicare - 6.25% for 2018, <br />decreasing to an ultimate rate of 4.75% <br />in 2021 and later years <br />Medicare - 6.45% for 2018, decreasing <br />to an ultimate rate of 4.75% in 2021 and <br />later years <br />Notes: <br />(1) Pre -retirement mortality information was derived from data collected during 1997 to 2011 CalPERS <br />Experience Study dated January 2014 and post-retirement mortality information was derived fromthe <br />2007 to 2011 CalPERS Experience Study. The Experience Study Reports may be accessed on the <br />CalPERS website www.calpers.ca.gov under Forms and Publications. <br />(2) The pre -retirement turnover information was developed based on CalPERS' specific data. For <br />more details, please refer to the 2007 to 2011 Experience Study Report. The Experience Study Report <br />may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. <br />74 109 <br />