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Other Post Employment Benefits Fiscal Year 2020 pdf file
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Town of Canton
Other Postemployment Benefits Plan
GASB 74 & GASB 75 Actuarial Valuation
With a Valuation Date of July 1, 2018
As of the Measurement Date:
June 30, 2020
For the Reporting Date:
June 30, 2020
Delivered August 3, 2020Source page 2
TABLE OF CONTENTS
PAGE
EXECUTIVE SUMMARY I
PRINCIPAL RESULTS OF THE VALUATION 1
EXHIBITS
A FINANCIAL STATEMENT DISCLOSURES 4
B REQUIRED SUPPLEMENTARY INFORMATION 16
APPENDIX
I LIABILITIES, ASSETS, & CASH FLOWS 22
II PLAN PROVISIONS 29
III ACTUARIAL METHODS & ASSUMPTIONS 31
IV PLAN DEMOGRAPHICS 38
V OVERVIEW OF GASB 74 & 75 40
GLOSSARY 42Source page 3
August 3, 2020 Personal and Confidential Mr. Randy Scollins Finance Director Town of Canton 801 Washington St Canton, MA 02021 Dear Mr. Scollins: We have performed an actuarial valuation of the Town of Canton Other Postemployment Benefits Plan for the Reporting Date & fiscal year ending June 30, 2020 with a Measurement Date of June 30, 2020 and a Valuation Date of July 1, 2018. The figures presented in this report reflect the adoption, by the Town of Canton, of Statement Nos. 74 and 75 of the Governmental Accounting Standards Board (“GASB 74/75”) effective for the fiscal years ending June 30, 2017 and June 30, 2018 respectively. The financial results of the actuarial valuation are summarized in the report. The Executive Summaries highlight the results of the valuation. Additional information summarizing census data, actuarial assumptions, claim rates and the methodology for developing them, as well as a glossary of selected terms used in this study, is also included in the report. All costs, liabilities and other factors under the plan were determined in accordance with generally accepted actuarial principles and procedures. In our opinion, the actuarial assumptions used are reasonable, reflecting the experience of the plan and reasonable expectations and, in combination, represent our best estimate of the anticipated experience under the plan. We will be pleased to answer any questions that you may have regarding this actuarial valuation report. Very truly yours, Parker E. Elmore, ASA, EA, FCA, MAAA President, CEO & Actuary
Source page 4
August 3, 2020
ACTUARIAL CERTIFICATION
This is to certify that Odyssey Advisors has conducted an actuarial valuation of certain benefit obligations of the Town of Canton other
postemployment benefit programs with a Valuation Date of July 1, 2018 with a Measurement Date of June 30, 2020 for the Reporting Date &
fiscal year ending June 30, 2020 in accordance with Government Account Standards Board Statement No. 74 & 75 and Actuarial Standards of
Practice as issued by the American Academy of Actuaries. The actuarial calculations presented in this report have been made on a basis
consistent with our understanding of GASB Statements Numbers 74 & 75 for the determination of the liability for postemployment benefits
other than pensions.
The actuarial data is based on the plan of benefits verified by the Town and on participant claims or premium data provided by the Town
and/or vendors employed by the Town.
The actuarial computations made are for purposes of fulfilling plan accounting requirements. Determinations for purposes other than
meeting financial accounting requirements may yield results significantly different than those reported here. As such, additional
determinations may be needed for other purposes including determining the benefit security at termination and/or adequacy of the funding
of an ongoing plan.
To the best of our knowledge, this report is complete and accurate and in our opinion represents the information necessary to comply with
GASB Statements Number 74 and 75 with respect to the benefit obligations addressed. The signing actuaries are members of the Society of
Actuaries, the American Academy of Actuaries and other professional actuarial organizations and meet their “General Qualification
Standards for Statements of Actuarial Opinion” to render the actuarial opinion contained herein. Further, in our opinion, the assumptions as
approved by the Town are reasonably related to the experience and expectations of the postemployment benefits programs.
Parker E. Elmore, ASA, EA, FCA, MAAA Sarah F. Rothenberg, ASA, MAAA
President, CEO & Actuary Consulting ActuarySource page 5
EXECUTIVE SUMMARY
How did plan liabilities change from FY 19 to FY 20?
For the year ending on the Measurement Date of June 30, 2020, the Plan saw an experience gain of $61,259 or 0.07% of the beginning
Total OPEB Liability ("TOL"). This was due to the repeal of the ACA excise tax. During the period there was an investment loss of
$269,918 due to asset performance below the expected rate of return.
Assumption Changes
Some key assumptions have changed since the prior valuation - their impact is detailed below.
✓ Due to the GASB 75 standards the discount rate has been changed from 5.75% to 6.00% decreasing the disclosed liability by $2.9
million.
✓ Assumption changes caused Service Cost to decrease by $140 thousand.
It is important to remember that actuarial assumptions or changes in such do not impact the actual cost of the Plan. Rather, they impact
the timing of the recognition of such costs.
Changes in Benefits Terms
✓ To the best of our knowledge there have been no material changes in benefit terms that would impact the figures shown in this
report.
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page ISource page 6
EXECUTIVE SUMMARY
Recognition Period
✓ Changes in assumptions & plan experience are amortized into the net OPEB expense over 5.45 years.
✓ Differences between projected & actual earnings on OPEB plan investments are amortized into the net OPEB expense over 5.00
years
✓ Changes in benefit terms are to be recognized in full immediately
Events Subsequent to the Measurement Date
To the best of our knowledge there were no material events subsequent to the Measurement Date that would impact the figures shown
in this report.
Discount Rate Determinants
✓ Employer Current and Future Benefit Payments
✓ Municipal Bond Rate – The municipal bond rate was 2.66% as of June 30, 2020.
✓ Current Asset Level – The Town had $6,380,381 of OPEB assets as of June 30, 2020.
✓ Funding Policy - The Town is expected to contribute $1 million in Fiscal 2021 & 2022 which will then increase by $100 thousand
per year until contributions reach $1.5 million per year beginning in Fiscal 2027.
✓ Investment Policy - The Town is expected to earn 7.00% on assets based on its investment policy.
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page IISource page 7
EXECUTIVE SUMMARY
Key Drivers of Plan Liabilities
Several key drivers of plan costs and liabilities are:
✓ Premiums for Post 65 (Medicare supplement) plans - represent 69.84% of the total plan liabilities
✓ Age at which plan participants retire
✓ Percentage of plan participants who elect coverage for themselves and/or a spouse
✓ Medical care cost inflation rate - We currently assume medical costs increase at 4.50% per year for Active plans and 4.50% per
year for Medicare supplement plans.
✓ Discount Rate (6.00%) – Higher discount rates yield lower liabilities and vice versa
✓ Cost Sharing - Under Massachusetts law you may charge retirees up to 50% of premiums for health insurance
Medicare Buy-In
Recently, some of our clients have seen substantial cost savings by “buying into” Medicare for retirees who would otherwise be
ineligible. To buy into Medicare the Town would need to pay the Medicare Part A premium and the Medicare Part A and B penalties.
While the cost to buy into Medicare is significant, it is likely still far less than the cost of the claims that the associated retirees are
expected to incur. Under Actuarial Standards of Practice for OPEB, we are required to reflect the projected higher healthcare costs that
occur as retirees age. The Town currently has 31 retirees or covered spouses who are over the age of 65 and are enrolled in Active
medical plans rather than Medicare Supplement (Senior) plans. You may wish to review their Medicare eligibility to see if they are
already eligible for Medicare or if a “buy-in” is appropriate as this could yield a reduction in your OPEB annual costs and disclosed
liabilities. If you are in this situation, we encourage you to talk to your healthcare consultant to see if this might be viable.
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page IIISource page 8
EXECUTIVE SUMMARY
Key Plan Metrics
While an actuarial valuation under GASB 74/75 can be very complex with many variables, we find it helpful to look at several key
metrics (shown below) to better allow you to manage your plan.
Representative Plan Statistics
Valuation Date July 1, 2018 July 1, 2018
Measurement Date & Period Ending June 30, 2020 June 30, 2019
Reporting Date/Fiscal Year End June 30, 2020 June 30, 2019
Total OPEB Liability 88,952,265 88,688,109
Per Eligible Active Plan Participant 63,596 64,185
Per Retiree/Spouse Plan Participant 77,745 76,627
Total Annual Service Cost (Annual Benefit Accrual) 2,011,440 2,040,579
Per Eligible Active Plan Participant 2,980 3,023
Expected Employer Share of Retiree Costs 3,875,429 3,723,578
Per Retiree/Spouse Plan Participant 6,546 6,290
Net OPEB Liability as a % of Covered Payroll 172.10% 179.10%
Average Annual Medical Premium
Individual Active Plan 10,468 10,017
2-Person Active Plan N/A N/A
Family Active Plan 26,245 25,115
Medicare Supplement Plan 3,926 3,757
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page IVSource page 9
EXECUTIVE SUMMARY
Liabilities & Benefit Payments in Today’s Dollars
With the growth of medical care costs over time, the nominal accrued liabilities (“TOL”) and benefit payments can appear daunting.
However, it is important to remember that a dollar paid in the future is worth less than a dollar paid today.
Number of
Retirees, Present Value at 3.00% of
Spouses, & Present Value at 3.00% Employer Share of Employer Share of
For the Period Ending on Surviving of Total OPEB Premiums/Claims Premiums / Claims
the Measurement Date of: Spouses Total OPEB Liability Liability Including "Implicit Cost" Including "Implicit Cost"
June 30, 2020 592 88,952,265 88,952,265 3,875,429 3,875,429
June 30, 2025 637 104,725,340 90,336,998 5,104,776 4,403,425
June 30, 2030 664 122,865,052 91,423,138 6,341,443 4,718,629
June 30, 2035 690 141,755,955 90,987,753 8,076,291 5,183,864
June 30, 2040 683 165,288,199 91,516,068 8,780,398 4,861,493
June 30, 2045 680 196,865,103 94,023,870 10,229,034 4,885,444
June 30, 2050 682 238,682,000 98,333,824 11,879,169 4,894,060
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page VSource page 10
PRINCIPAL RESULTS OF THE VALUATION
Prior Year Comparison
Town of Canton
Assuming Funding - 6.00% discount rate
Comparison of Plan Liabilities to Prior Valuation
Valuation Date July 1, 2018 July 1, 2018
For the Measurement Period ending on the Measurement Date of: June 30, 2020 June 30, 2019
For the Reporting Period & Fiscal Year ending on: June 30, 2020 June 30, 2019
I. Total OPEB Liability
A. Actives 42,927,426 43,325,132
B. Retirees/Disabled 46,024,839 45,362,977
C. Total 88,952,265 88,688,109
II. Fiduciary Net Position [Plan Assets] 6,380,381 5,219,494
III. Net OPEB Liability (Asset) [I. - II.] 82,571,884 83,468,615
IV. Funded Ratio [II. / I.] 7.17% 5.89%
V. Number of Eligible Participants
A. Actives 675 675
B. Retirees/Disabled & Dependents 592 592
C. Total 1,267 1,267
VI. Service Cost 2,011,440 2,040,579
VII. Financial Statement Expense 4,409,946 5,369,556
VIII. Employer Contribution to the OPEB Trust (1,030,000) (800,000)
IX. Deferred Inflow of Resources (8,716,226) (8,110,445)
X. Deferred Outflow of Resources 250,135 45,602
XI. Money Weighted Rate of Return 2.35% 5.55%
XII. 20-year Municipal Bond Rate (SAPIHG) 2.66% 2.79%
XIII. Expected Long Term Rate of Return (Net of Expense) 7.00% 7.05%
XIV. Crossover Year 2062 2061
XV. Discount Rate 6.00% 5.75%
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 1Source page 11
PRINCIPAL RESULTS OF THE VALUATION
Town of Canton
Plan Liabilities as of the June 30, 2020 Measurement Date
Public Safety Food Service Water Enterprise Sewer Enterprise
Town Employees School Employees Employees and Employees and Employees and Employees and
and Retirees and Retirees Retirees Retirees Retirees Retirees Total
I. Total OPEB Liability
A. Actives 6,163,123 25,154,870 9,595,321 867,818 798,985 347,309 42,927,426
B. Retirees/Disabled 5,995,857 28,599,977 9,789,380 62,404 1,036,289 540,932 46,024,839
C. Total 12,158,980 53,754,847 19,384,701 930,222 1,835,274 888,241 88,952,265
II. Fiduciary Net Position [Plan Assets] 872,141 3,855,735 1,390,429 66,723 131,641 63,712 6,380,381
III. Net OPEB Liability (Asset) [I. - II.] 11,286,839 49,899,112 17,994,272 863,499 1,703,633 824,529 82,571,884
IV. Number of Eligible Participants
A. Actives 112 444 92 11 13 3 675
B. Retirees/Disabled 105 361 108 1 14 3 592
C. Total 217 805 200 12 27 6 1,267
For the Reporting Date and Fiscal Year Ending June 30, 2020
V. Service Cost 313,587 1,260,693 377,913 19,810 32,090 7,347 2,011,440
VI. Financial Statement Expense 245,866 2,986,738 1,001,730 50,311 90,570 34,731 4,409,946
VII. Employer Share of Costs (626,611) (2,429,068) (678,487) (18,493) (74,741) (48,029) (3,875,429)
VIII. Employer (Payments)/Withdrawals to/from OPEB Trust (135,833) (624,914) (226,816) (11,077) (21,299) (10,061) (1,030,000)
IX. Total Employer Contribution [VII. + VIII.] (762,444) (3,053,982) (905,303) (29,570) (96,040) (58,090) (4,905,429)
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 2Source page 12
PRINCIPAL RESULTS OF THE VALUATION
Totals by Demographic
Town of Canton
Assuming Funding - 6.00% discount rate
For the Period Ending on the June 30, 2020 Measurement Date
Actives Retirees/Disabled
Grand Total
Under Age 65 Age 65+ Actives Total Under Age 65 Age 65 + Retirees Total
Present Value of Future Benefits
A. Participants 14,368,291 17,183,887 31,552,178 4,181,728 28,506,949 32,688,677 64,240,855
B. Spouses 10,098,825 13,283,925 23,382,750 3,191,447 10,144,715 13,336,162 36,718,912
C. Total 24,467,116 30,467,812 54,934,928 7,373,175 38,651,664 46,024,839 100,959,767
Total OPEB Liability
A. Participants 11,427,067 13,235,391 24,662,458 4,181,728 28,506,949 32,688,677 57,351,135
B. Spouses 8,026,506 10,238,462 18,264,968 3,191,447 10,144,715 13,336,162 31,601,130
C. Total 19,453,573 23,473,853 42,927,426 7,373,175 38,651,664 46,024,839 88,952,265
Service Cost
A. Participants 483,303 677,455 1,160,758 0 0 0 1,160,758
B. Spouses 330,940 519,742 850,682 0 0 0 850,682
C. Total 814,243 1,197,197 2,011,440 0 0 0 2,011,440
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 3Source page 13
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
The GASB Standards for accounting and financial reporting for postemployment benefits other than pensions require the following
disclosures in the financial statements:
1. OPEB Expense Development
Components of the Town's OPEB Expenses for the Fiscal Year Ending June 30, 2020
Description Amount
I. Service Cost 2,011,440
II. Interest on Total OPEB Liability (Asset), Service Cost, and Benefit Payments 5,105,363
III. Deferred (Inflows)/Outflows from Plan Experience* (1,111,488)
IV. Deferred (Inflows)/Outflows from Changes of Assumptions* (1,252,008)
V. Projected Earnings on OPEB Plan Investments (400,805)
VI. Deferred (Inflows)/Outflows from Earnings on Plan Investments** 57,444
VII. Financial Statement Expense Prior to Plan Design Changes [I. + II.+ III. + IV. + V. + VI.] 4,409,946
VIII. Deferred (Inflows)/Outflows from Plan Design Changes*** 0
IX. Financial Statement Expense [VII. + VIII.] 4,409,946
* Amortized over 5.45 years
** Amortized over 5.00 years
*** Recognized Immediately
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 4Source page 14
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
NOL Change
2. Changes in Net OPEB Liability
Changes in Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
I. Balances for June 30, 2019 88,688,109 5,219,494 83,468,615
II. Prior Period Adjustment 0 0 0
III. Balances for June 30, 2019 with Adjustment [I. + II.] 88,688,109 5,219,494 83,468,615
Changes for the year:
IV. Service Cost 2,011,440 0 2,011,440
V. Interest on Total OPEB Liability, Service Cost, and Benefit Payments 5,105,363 0 5,105,363
VI. Changes in Benefit Terms * 0 0 0
VII. Change in Assumptions ** (2,915,959) 0 (2,915,959)
VIII. Differences Between Actual and Expected Experience ** (61,259) 0 (61,259)
IX. Net Investment Income 0 130,887 (130,887)
X. Employer Contributions to Trust 0 4,905,429 (4,905,429)
XI. Benefit Payments Withdrawn from Trust 0 (3,875,429) 3,875,429
XII. Benefit Payments Excluding Implicit Cost (2,998,522) 0 (2,998,522)
XIII. Implicit Cost Amount (876,907) 0 (876,907)
XIV. Total Benefit Payments Including Implicit Cost [XII. + XIII.] (3,875,429) 0 (3,875,429)
XV. Administrative Expense 0 0 0
XVI. Other Charges 0 0 0
XVII. Net Changes [IV.+V.+VI.+VII.+VIII.+IX.+X.+XI.+XIV.+XV.+XVI.] 264,156 1,160,887 (896,731)
XVIII. Balances at June 30, 2020 [III.+XVII.] 88,952,265 6,380,381 82,571,884
* Recognized Immediately
** Amortized over 5.45 years
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 5Source page 15
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
Deferred Inflows/Outflows
(As of the June 30, 2020 Measurement Date)
3. Changes in Net OPEB Expense
Deferred (Inflows)/Outflows in OPEB Expense Arising from the Recognition of the Effects of Differences Between Expected & Actual
Experience
Differences Between
Actual & Expected Recognition Remaining
Fiscal Experience Period (Years) Balance 2020 2021 2022 2023 2024 2025
2017
2018 0 5.79 0 0 0 0 0
2019 (5,996,352) 5.45 (3,795,856) (1,100,248) (1,100,248) (1,100,248) (1,100,248) (495,112)
2020 (61,259) 5.45 (50,019) (11,240) (11,240) (11,240) (11,240) (11,240) (5,059)
2021
2022
2023
2024
2025
2026
Total Remaining Balance (3,845,875)
Net increase (decrease) in OPEB Expense (1,111,488) (1,111,488) (1,111,488) (1,111,488) (506,352) (5,059)
Deferred (Inflows)/Outflows in OPEB Expense Arising from the Recognition of the Effects of Changes in Assumptions
Differences from
Changes in Actuarial Recognition Remaining
Fiscal Assumptions Period (years) Balance 2020 2021 2022 2023 2024 2025
2017
2018 0 5.79 0 0 0 0 0
2019 (3,907,488) 5.45 (2,473,548) (716,970) (716,970) (716,970) (716,970) (322,638)
2020 (2,915,959) 5.45 (2,380,921) (535,038) (535,038) (535,038) (535,038) (535,038) (240,769)
2021
2022
2023
2024
2025
2026
Total Remaining Balance (4,854,469)
Net increase (decrease) in OPEB Expense (1,252,008) (1,252,008) (1,252,008) (1,252,008) (857,676) (240,769)
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 6Source page 16
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
3. Changes in Net OPEB Expense (Continued)
Deferred (Inflows)/Outflows in OPEB Expense Arising from the Recognition of Differences Between Projected & Actual Earnings on
OPEB Plan Investments
Differences Between
Actual & Expected Recognition Remaining
Fiscal Earnings Period (years) Balance 2020 2021 2022 2023 2024 2025
2017
2018 (39,705) 5.00 (15,882) (7,941) (7,941) (7,941)
2019 57,003 5.00 34,201 11,401 11,401 11,401 11,399
2020 269,918 5.00 215,934 53,984 53,984 53,984 53,984 53,982
2021
2022
2023
2024
2025
2026
Total Remaining Balance 234,253
Net increase (decrease) in OPEB Expense 57,444 57,444 57,444 65,383 53,982 0
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 7Source page 17
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
3. Changes in Net OPEB Expense (Continued)
Statement of Outflows & Inflows Arising from Current & Prior Reporting Periods for the Measurement Period Ending on June 30, 2020 to be
Reported for the Fiscal Year Ending June 30, 2020
Deferred Deferred
Outflows of Inflows of
Resources Resources Total
I. Contributions made subsequent to the Measurement Date 0 0 0
II. Differences Between Actual & Expected Experience 0 (3,845,875) (3,845,875)
III. Changes of Assumptions 0 (4,854,469) (4,854,469)
IV. Net Difference Between Projected & Actual Earnings on OPEB Plan Investments 250,135 (15,882) 234,253
V. Total [I.+II.+III.+IV.] 250,135 (8,716,226) (8,466,091)
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 8Source page 18
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
3. Changes in Net OPEB Expense (Continued)
Annual Amortization of Deferred (Inflows)/Outflows
The balance of deferred (inflows)/outflows as of June 30, 2020 will be recognized in future years as shown below.
Year ending June 30:
2021 (2,306,052)
2022 (2,306,052)
2023 (2,298,113)
2024 (1,310,046)
2025 (245,828)
Thereafter 0
4. Discount Rate
The discount rate used to measure the Total OPEB liability was 6.00% as of June 30, 2020 and 5.75% as of June 30, 2019. The
projection of cash flows used to determine the discount rate assumed that contributions will be made in accordance with the
Town’s funding policy. Based on these assumptions, the OPEB Plan’s Fiduciary Net Position is projected to be insufficient to
make all projected benefit payments to current plan members. Therefore, the long-term expected rate of return on the OPEB Plan
assets is applied to the projected benefits payments which the Fiduciary Net Position is expected to be sufficient to cover and the
Municipal Bond Rate is applied thereafter. The Municipal Bond Rate is based on the S&P Municipal Bond 20 – Year High Grade
Index ("SAPIHG"), which was 2.66% as of June 30, 2020. The S&P Municipal Bond 20 - Year High Grade Index is the index rate for
20 year, tax exempt general obligation municipal bonds with an average rate of AA/Aa or higher.
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 9Source page 19
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
Investment Policy
5. Funding Policy
The contribution requirements of plan members and the Town are established and may be amended through Town ordinances.
For the period ending on the June 30, 2020 Measurement Date, total Town premiums plus implicit costs for the retiree medical
program were $3,875,429. The Town also contributed $1,030,000 to an OPEB Trust for a total contribution during the measurement
period of $4,905,429 to be reported on the financial statement for the fiscal year ending June 30, 2020.
6. Investment Policy
The chart below shows how the long-term rate of return on assets is developed based on the Town's Investment Policy.
Investment Target Allocation & Expected Long-Term Real Rate of Return
Long-Term
Target Expected Real
Asset Class Allocation Asset Class Rate of Return*
Domestic Equity - Large Cap 23.33% Domestic Equity - Large Cap 4.80%
Domestic Equity - Small/Mid Cap 11.67% Domestic Equity - Small/Mid Cap 5.29%
International Equity - Developed Market 13.33% International Equity - Developed Market 5.45%
International Equity-Emerging Market 6.67% International Equity-Emerging Market 6.42%
Domestic Fixed Income 20.00% Domestic Fixed Income 2.05%
International Fixed Income 5.00% International Fixed Income 3.00%
Alternatives 20.00% Alternatives 6.50%
Real Estate 0.00% Real Estate 6.25%
Cash & Cash Equivalents 0.00% Cash & Cash Equivalents 0.00%
Total 100.00%
I. Real Rate of Return** 4.75%
II. Inflation Assumption 2.50%
III. Total Nominal Return [I. + II.] 7.25%
IV. Investment Expense 0.25%
V. Net Investment Return [III.-IV.] 7.00%
* Based on 2019 Horizon Survey of Capital Market Assumptions
** Geometric Mean
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 10Source page 20
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
7. Schedule of The Town's Contributions
Contributions in
Relation to the Contributions as a
Actuarial Actuarially Contribution Covered Percentage of
For the Fiscal Year Determined Determined Deficiency Employee Covered Employee
Ending Contribution Contribution (Excess) Payroll Payroll
June 30, 2020 7,670,645 (4,905,429) 2,765,216 47,989,715 10.22%
June 30, 2019 7,622,221 (4,523,578) 3,098,643 46,591,956 9.71%
June 30, 2018 8,240,517 (4,179,556) 4,060,961 45,486,461 9.19%
June 30, 2017 7,882,229 (3,783,880) 4,098,349 44,161,613 8.57%
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 11Source page 21
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
+/-1 % Sensitivity
8. Effect of 1% Change in Healthcare Trend
Impact of a 1% Change in the Healthcare Trend Rate as of the June 30, 2020 Measurement Date
1% Decrease Current Trend Rate 1% Increase
I. Total OPEB Liability 78,949,545 88,952,265 101,257,941
II. Fiduciary Net Position 6,380,381 6,380,381 6,380,381
III. Net OPEB Liability (Asset) [I.-II.] 72,569,164 82,571,884 94,877,560
IV. Service Cost 1,635,809 2,011,440 2,511,653
9. Effect of 1% Change in Discount Rates
Impact of a 1% Change in the Discount Rate as of the June 30, 2020 Measurement Date
1% Decrease Current Discount Rate 1% Increase
I. Total OPEB Liability 100,679,099 88,952,265 79,371,160
II. Fiduciary Net Position 6,380,381 6,380,381 6,380,381
III. Net OPEB Liability (Asset) [I.-II.] 94,298,718 82,571,884 72,990,779
IV. Service Cost 2,562,974 2,011,440 1,596,542
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 12Source page 22
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
Money ROR
10. Money Weighted Rate of Return
Plan
Investments / Periods Period
Net External Invested Weight
Cash Flows
I. Beginning value - June 30, 2019 5,219,494 12 1.0000
Monthly net external cash flows:
July 0 11 0.9167
August 0 10 0.8333
September 0 9 0.7500
October 0 8 0.6667
November 500,000 7 0.5833
December 0 6 0.5000
January 0 5 0.4167
February 0 4 0.3333
March 250,000 3 0.2500
April 0 2 0.1667
May 0 1 0.0833
June 280,000 0 0.0000
II. Total net external cash flow 1,030,000
III. Earnings and increase in fair value 130,887
IV. Ending value - June 30, 2020 [I.+II.+III.] 6,380,381
Money Weighted Rate of Return 2.35%
Asset Value - June 30, 2020 6,380,381
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 13Source page 23
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
NOL & Expense by Group
(As of the June 30, 2020 Measurement Date)
11. OPEB Liability, OPEB Expense
Fiscal Year Ending June 30, 2020
Public Safety Food Service Water Enterprise Sewer Enterprise
Town Employees School Employees Employees and Employees and Employees and Employees and
and Retirees and Retirees Retirees Retirees Retirees Retirees Total
I. Total OPEB Liability as of June 30, 2020 12,158,980 53,754,847 19,384,701 930,222 1,835,274 888,241 88,952,265
II. Fiduciary Net Position as of June 30, 2020 872,141 3,855,735 1,390,429 66,723 131,641 63,712 6,380,381
III. Net OPEB Liability (Asset) as of June 30, 2020 [I. - II.] 11,286,839 49,899,112 17,994,272 863,499 1,703,633 824,529 82,571,884
IV. Service Cost 313,587 1,260,693 377,913 19,810 32,090 7,347 2,011,440
V. Interest on Total OPEB Liability (Asset), Service Cost, and Benefit Payments 302,153 3,361,893 1,213,764 58,816 114,329 54,408 5,105,363
VI. Projected Earnings on OPEB Plan Investments (54,658) (242,275) (87,406) (4,199) (8,270) (3,997) (400,805)
VII. Net Recognition of Deferred (Inflows)/Outflows (315,216) (1,393,573) (502,541) (24,116) (47,579) (23,027) (2,306,052)
VIII. Expense Related to Change in Benefit Terms 0 0 0 0 0 0 0
IX. Financial Statement Expense [IV. + V. + VII. + VIII.] 245,866 2,986,738 1,001,730 50,311 90,570 34,731 4,409,946
X. Employer Share of Costs (626,611) (2,429,068) (678,487) (18,493) (74,741) (48,029) (3,875,429)
XI. Employer (Payments) Withdrawals to/from OPEB Trust (135,833) (624,914) (226,816) (11,077) (21,299) (10,061) (1,030,000)
XII. Total Employer Contribution [X. + XI.] (762,444) (3,053,982) (905,303) (29,570) (96,040) (58,090) (4,905,429)
XIII. Net OPEB Expense [IX. + XII.] (516,578) (67,244) 96,427 20,741 (5,470) (23,359) (495,483)
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 14Source page 24
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2020 Measurement Date)
12. OPEB Liability, OPEB Expense and Deferred Inflow/Outflow
Valuation Date July 1, 2018
For the Measurement Period ending on the Measurement Date of: June 30, 2020
For the Reporting Period & Fiscal Year ending on: June 30, 2020
Source of Deferred Inflow/Outflow
I. Deferred (Inflow)/Outflow from Actual vs. Expected Experience (3,845,875)
II. Deferred (Inflow)/Outflow from Investment Experience 234,253
III. Deferred (Inflow)/Outflow from Changes in Assumptions (4,854,469)
Change in Deferred Inflow/Outflow
I. Deferred Outflow at the beginning of the period 45,602
II. Deferred Outflow created during the period 269,918
III. Deferred Outflow recognized during the period 65,385
IV. Change in Deferred Outflow (II. - III. ) 204,533
V. Deferred Outflow at end of the period (I. + IV. ) 250,135
VI. Deferred Inflow at the beginning of the period (8,110,445)
VII. Deferred Inflow created during the period (2,977,218)
VIII. Deferred Inflow recognized during the period (2,371,437)
IX. Change in Deferred Inflow (VII. - VIII. ) (605,781)
X. Deferred Inflow at end of the period (VI. + IX. ) (8,716,226)
Net OPEB Liability
I. Net OPEB Liability at beginning of period 83,468,615
II. Service Cost 2,011,440
III. Interest on Total OPEB Liability, Service Cost, and Payments 5,105,363
IV. Projected Investment Income (400,805)
V. Total Employer Contributions (4,905,429)
VI. Expense Related to Change in Benefit Terms 0
VII. Net OPEB Expense - Before Recognition of Deferred (Inflow)/Outflow (II. + III. + IV. + V. + VI. ) 1,810,569
VIII. Deferred Outflow created during the period 269,918
IX. Deferred Inflow created during the period (2,977,218)
X. Net OPEB Liability at end of period (I. + VII. + VIII. + IX. ) 82,571,884
Net OPEB Expense
I. Service Cost 2,011,440
II. Interest on Total OPEB Liability, Service Cost, and Payments 5,105,363
III. Projected Investment Income (400,805)
IV. Recognition of Deferred (Inflow)/Outflow (2,306,052)
V. Expense Related to Change in Benefit Terms 0
VI. Financial Statement Expense (I. + II. + III. + IV. + V. ) 4,409,946
VII. Benefit Payments (3,875,429)
VIII. Contributions to Trust (1,030,000)
IX. Total Employer Payments (VII. + VIII. ) (4,905,429)
X. Total Net OPEB Expense under GASB 75 (VI. + IX. ) (495,483)
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 15Source page 25
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2020 Measurement Date)
The Town’s Actuarially Determined Contribution (ADC) is an amount actuarially determined in accordance with the parameters of
GASB Statement No. 74/75 which is composed of the service cost and an amortization of the unfunded liability. We have used a 30 year
flat dollar amortization of the Town’s unfunded liability for the purpose of calculating ADC. The following table shows the
components of the Town’s annual ADC and the amount actually contributed to the plan:
Actuarially Determined Contribution - Deficiency / (Excess)
For the Fiscal Year Ending:
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
I. Service Cost 2,011,440 2,040,579 2,675,741 2,515,860
II. 30 Year Level Dollar Amortization of NOL 5,659,205 5,581,642 5,564,776 5,366,369
III. Actuarial Determined Contribution [I. + II.] 7,670,645 7,622,221 8,240,517 7,882,229
IV. Contributions in Relation to the Actuarially Determined Contribution (4,905,429) (4,523,578) (4,179,556) (3,783,880)
V. Contribution Deficiency / (Excess) [III. + IV.] 2,765,216 3,098,643 4,060,961 4,098,349
Covered Employee Payroll 47,989,715 46,591,956 45,486,461 44,161,613
Contributions as a % of Covered Employee Payroll 10.22% 9.71% 9.19% 8.57%
Discount Rate 6.00% 5.75% 5.25% 5.25%
Money Weighted Rate of Return 2.35% 5.55% 5.05% 8.23%
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 16Source page 26
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2020 Measurement Date)
Schedule of Changes in the Town's Net OPEB Liability and Related Ratios
Valuation Date July 1, 2018 July 1, 2018 July 1, 2016 July 1, 2016
GASB 75 Measurement Date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
For the Reporting Period & Fiscal Year Ending on: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Total OPEB Liability 88,952,265 88,688,109 94,811,510 90,505,695
I. Service Cost 2,011,440 2,040,579 2,675,741 2,515,860
II. Interest on Total OPEB Liability, Service Cost, and Benefit Payments 5,105,363 5,463,438 4,809,630 4,590,666
III. Changes in Benefit Terms 0 0 0 0
IV. Difference Between Expected & Actual Plan Experience (61,259) (5,996,352) 0 0
V. Changes of Assumptions (2,915,959) (3,907,488) 0 0
VI. Benefit Payments Excluding Implicit Cost (2,998,522) (2,867,284) (2,839,350) N/A
VII. Implicit Cost Amount (876,907) (856,294) (340,206) N/A
VIII. Total Benefit Payments Including Implicit Cost [VI.+VII.] (3,875,429) (3,723,578) (3,179,556) (3,013,880)
IX. Net Change in OPEB Liability [I.+II.+III.+IV.+V.+VIII.] 264,156 (6,123,401) 4,305,815 4,092,646
X. Total OPEB Liability - Beginning of Period 88,688,109 94,811,510 90,505,695 86,413,049
XI. Prior Period Adjustment 0 0 0 0
XII. Total OPEB Liability - Beginning of Period with Adjustment 88,688,109 94,811,510 90,505,695 86,413,049
XIII. Total OPEB Liability - End of Period [IX.+XII.] 88,952,265 88,688,109 94,811,510 90,505,695
Plan Fiduciary Net Position 6,380,381 5,219,494 4,155,794 2,980,371
XIV. Earning from Plan Investments 130,887 263,700 175,423 202,021
XV. Employer Contribution to Trust 4,905,429 4,523,578 4,179,556 3,783,880
XVI. Benefit Payments from Trust, Including Refunds of Member Contributions (3,875,429) (3,723,578) (3,179,556) (3,013,880)
XVII. Administrative Expense 0 0 0 0
XVIII. Other 0 0 0 0
XIX. Net Change in Plan Fiduciary Net Position [XIV.+XV.+XVI.+XVII.+XVIII.] 1,160,887 1,063,700 1,175,423 972,021
XX. Plan Fiduciary Net Position - Beginning of Period 5,219,494 4,155,794 2,980,371 2,008,350
XXI. Prior Period Adjustment 0 0 0 0
XXII. Plan Fiduciary Net Position - Beginning of Period with Adjustment 5,219,494 4,155,794 2,980,371 2,008,350
XXIII. Plan Fiduciary Net Position - End of Period [XIX.+XXII.] 6,380,381 5,219,494 4,155,794 2,980,371
XXIV. Net OPEB Liability [XIII.-XXIII.] 82,571,884 83,468,615 90,655,716 87,525,324
XXV. Plan Fiduciary Net Position as % of Total OPEB Liability [XXIII. / XIII.] 7.17% 5.89% 4.38% 3.29%
XXVI. Covered Employee Payroll 47,989,715 46,591,956 45,486,461 44,161,613
XXVII. Plan NOL as % of Covered Employee Payroll [XXIV. / XXVI.] 172.06% 179.15% 199.30% 198.19%
Single Discount Rate to calculate Plan Liabilities 6.00% 5.75% 5.25% 5.25%
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 17Source page 27
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2020 Measurement Date)
Notes to Required Supplementary Information:
Valuation Date: Actuarially Determined Contribution was calculated as of July 1, 2018.
Actuarial Cost Method: Individual Entry Age Normal
Asset-Valuation Method: Market Value of Assets as of the Measurement Date, June 30, 2020.
Actuarial Assumptions:
Investment Rate of Return: 7.00%, net of OPEB plan investment expense, including inflation.
Municipal Bond Rate 2.66% as of June 30, 2020 (source: S&P Municipal Bond 20-Year High Grade Index –
SAPIHG)
Single Equivalent Discount Rate: 6.00%, net of OPEB plan investment expense, including inflation.
Inflation: 2.50% as of June 30, 2020 and for future periods
Salary Increases: 3.00% annually as of June 30, 2020 and for future periods
Cost of Living Adjustment: Not Applicable
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 18Source page 28
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2020 Measurement Date)
Pre-Retirement Mortality: General: RP-2000 Employees Mortality Table projected generationally with scale BB and
a base year 2009 for males and females
Teacher: RP-2000 Employees Mortality Table projected generationally with scale BB and
a base year 2009 for males and females
Post-Retirement Mortality: General: RP-2000 Healthy Annuitant Mortality Table projected generationally with scale
BB and a base year 2009 for males and females
Teachers: RP-2000 Healthy Annuitant Mortality Table projected generationally with
scale BB and a base year 2009 for males and females
Disabled Mortality: General: RP-2000 Healthy Annuitant Mortality Table projected generationally with
Scale BB and a base year 2012 for males and females
Teachers: RP-2000 Healthy Annuitant Mortality Table projected generationally with
Scale BB and a base year 2012 for males and females
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 19Source page 29
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2020 Measurement Date)
Plan Membership
At July 1, 2018, OPEB plan membership consisted of the following:
Inactive employees or beneficiaries currently receiving benefits: 592
Active Employees: 675
Total: 1,267
Events Subsequent to the Measurement Date
To the best of our knowledge there were no material events subsequent to the Measurement Date that would impact the
figures shown in this report.
Changes in Assumptions: From June 30, 2019 to June 30, 2020
✓ Due to the GASB 75 standards the discount rate has been changed from 5.75% to 6.00%
Contributions:
The contribution requirements of plan members and the Town are established and may be amended through Town
ordinances. The Town contributed $1,030,000 beyond the pay-as-you-go cost for the period ending on the June 30, 2020
Measurement Date. For the year ending on the June 30, 2020 Measurement Date total Town premiums plus implicit costs for
the retiree medical program were $3,875,429. $876,907 of the $3,875,429 represents implicit cost.
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 20Source page 30
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2020 Measurement Date)
Census Data Manipulation:
In the absence of data, the following was assumed:
Spouse Sex: Male participants had female spouses and vice versa.
Spouse Age: Male spouses were three years older than female spouses and same sex spouses were
the same age.
Hire Age: Participants who were not on the previous valuation were hired halfway between last
valuation and the current valuation. If we did not have census data related to the last
valuation, the participants were assumed to have been hired at age forty.
Retiree Age: Retirees had the same birth date as they had the prior valuation. If we did not have
census data related to the last valuation, retirees who were enrolled in Active plans
were assumed to be age sixty-two and retirees who were enrolled in Medicare
Supplement plans were assumed to be age seventy-two. Those not enrolled in a
medical plan were assumed to be sixty-seven.
School Demographics: Two thirds of school participants were teachers.
Other Material Changes: No other data changes were deemed to be material.
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 21Source page 31
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
CURRENT FUNDING POLICY (OPEN GROUP)
Current Funding Policy
Funding - 6.00% discount rate
II. Fiduciary Net IX. Benefit X. Administrative
Position as of VI. Employer VII. Trust VIII. Gross Payments & Investment XI. Total Employer
For the Period Ending on the I. Total OPEB Measurement Date III. Net OPEB IV. Funded Share of Benefit Contributions Trust Reimbursed Expenses Payments Less
Fiscal Measurement Date Liability ("TOL") as with an expected Liability (Asset) Ratio V. Service Payments (With Beyond Pay-as- Contributions from the Reimbursed from Reimbursements
Year of: of Measurement Date 7.00% return [I. - II.] [II. / I.] Cost Implicit Cost) you-go [VI. + VII.] Trust the Trust [VIII. - IX. - X.]
2020 June 30, 2020 88,952,265 6,380,381 82,571,884 7.17% 2,011,440 3,875,429 1,030,000 4,905,429 3,875,429 0 1,030,000
2021 June 30, 2021 91,851,053 7,793,145 84,057,908 8.48% 2,115,184 4,119,198 934,000 5,053,198 4,119,198 0 934,000
2022 June 30, 2022 94,933,638 9,373,073 85,560,565 9.87% 2,220,276 4,456,435 1,000,000 5,456,435 4,456,435 0 1,000,000
2023 June 30, 2023 98,071,648 11,167,037 86,904,611 11.39% 2,326,595 4,698,295 1,100,000 5,798,295 4,698,295 0 1,100,000
2024 June 30, 2024 101,370,568 13,190,019 88,180,549 13.01% 2,442,874 4,837,460 1,200,000 6,037,460 4,837,460 0 1,200,000
2025 June 30, 2025 104,725,340 15,458,051 89,267,289 14.76% 2,559,175 5,104,776 1,300,000 6,404,776 5,104,776 0 1,300,000
2026 June 30, 2026 108,156,944 17,988,286 90,168,658 16.63% 2,681,808 5,360,262 1,400,000 6,760,262 5,360,262 0 1,400,000
2027 June 30, 2027 111,729,576 20,799,078 90,930,498 18.62% 2,804,246 5,548,248 1,500,000 7,048,248 5,548,248 0 1,500,000
2028 June 30, 2028 115,343,568 23,806,626 91,536,942 20.64% 2,926,446 5,810,012 1,500,000 7,310,012 5,810,012 0 1,500,000
2029 June 30, 2029 119,069,267 27,024,702 92,044,565 22.70% 3,061,544 6,081,849 1,500,000 7,581,849 6,081,849 0 1,500,000
2030 June 30, 2030 122,865,052 30,468,043 92,397,009 24.80% 3,193,541 6,341,443 1,500,000 7,841,443 6,341,443 0 1,500,000
2031 June 30, 2031 126,509,430 34,152,418 92,357,012 27.00% 3,338,345 6,753,927 1,500,000 8,253,927 6,753,927 0 1,500,000
2032 June 30, 2032 130,217,149 38,094,699 92,122,450 29.25% 3,483,445 7,130,224 1,500,000 8,630,224 7,130,224 0 1,500,000
2033 June 30, 2033 134,146,843 42,312,940 91,833,903 31.54% 3,636,015 7,390,020 1,500,000 8,890,020 7,390,020 0 1,500,000
2034 June 30, 2034 137,855,860 46,826,458 91,029,402 33.97% 3,801,302 7,771,053 1,500,000 9,271,053 7,771,053 0 1,500,000
2035 June 30, 2035 141,755,955 51,655,922 90,100,033 36.44% 3,962,100 8,076,291 1,500,000 9,576,291 8,076,291 0 1,500,000
2036 June 30, 2036 145,948,290 56,823,449 89,124,841 38.93% 4,142,880 8,152,859 1,500,000 9,652,859 8,152,859 0 1,500,000
2037 June 30, 2037 150,291,066 62,352,702 87,938,364 41.49% 4,323,473 8,388,574 1,500,000 9,888,574 8,388,574 0 1,500,000
2038 June 30, 2038 155,008,480 68,269,003 86,739,477 44.04% 4,512,768 8,534,835 1,500,000 10,034,835 8,534,835 0 1,500,000
2039 June 30, 2039 160,031,678 74,599,445 85,432,233 46.62% 4,715,220 8,618,328 1,500,000 10,118,328 8,618,328 0 1,500,000
2040 June 30, 2040 165,288,199 81,373,018 83,915,181 49.23% 4,917,130 8,780,398 1,500,000 10,280,398 8,780,398 0 1,500,000
2041 June 30, 2041 170,951,335 88,620,741 82,330,594 51.84% 5,135,243 8,968,509 1,500,000 10,468,509 8,968,509 0 1,500,000
2042 June 30, 2042 177,000,503 96,375,805 80,624,698 54.45% 5,372,592 9,254,477 1,500,000 10,754,477 9,254,477 0 1,500,000
2043 June 30, 2043 183,283,905 104,673,723 78,610,182 57.11% 5,619,820 9,496,967 1,500,000 10,996,967 9,496,967 0 1,500,000
2044 June 30, 2044 189,907,732 113,552,496 76,355,236 59.79% 5,872,463 9,845,636 1,500,000 11,345,636 9,845,636 0 1,500,000
2045 June 30, 2045 196,865,103 123,052,783 73,812,320 62.51% 6,152,526 10,229,034 1,500,000 11,729,034 10,229,034 0 1,500,000
2046 June 30, 2046 204,274,880 133,218,090 71,056,790 65.22% 6,438,757 10,490,086 1,500,000 11,990,086 10,490,086 0 1,500,000
2047 June 30, 2047 212,189,634 144,094,968 68,094,666 67.91% 6,745,633 10,899,398 1,500,000 12,399,398 10,899,398 0 1,500,000
2048 June 30, 2048 220,395,871 155,733,228 64,662,643 70.66% 7,064,243 11,290,410 1,500,000 12,790,410 11,290,410 0 1,500,000
2049 June 30, 2049 229,308,319 168,186,166 61,122,153 73.34% 7,397,100 11,542,262 1,500,000 13,042,262 11,542,262 0 1,500,000
2050 June 30, 2050 238,682,000 181,510,810 57,171,190 76.05% 7,746,288 11,879,169 1,500,000 13,379,169 11,879,169 0 1,500,000
2051 June 30, 2051 248,734,434 195,768,179 52,966,255 78.71% 8,111,459 12,239,304 1,500,000 13,739,304 12,239,304 0 1,500,000
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 22Source page 32
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
CONTRIBUTION PROJECTION DISCLOSURES
Table 1: Projection of Contributions using a July 1, 2018 Valuation Date
V. Employer
For the Period Ending I. Payroll for IV. Contributions Payments for VI. Employer VII. Total
on the Measurement current II. Payroll for III. Total from current current plan Payments for Payments
Date employees future employees Payroll [I.+II.] employees members future employees [IV.+V.+VI.]
June 30, 2020 47,989,715 0 47,989,715 0 3,875,429 0 3,875,429
June 30, 2021 44,869,151 4,560,255 49,429,406 0 4,119,198 0 4,119,198
June 30, 2022 42,513,486 8,398,802 50,912,288 0 4,456,435 0 4,456,435
June 30, 2023 40,522,694 11,916,963 52,439,657 0 4,698,295 0 4,698,295
June 30, 2024 38,724,892 15,287,955 54,012,847 0 4,837,460 0 4,837,460
June 30, 2025 37,075,536 18,557,696 55,633,232 0 5,104,776 0 5,104,776
June 30, 2026 35,552,142 21,750,087 57,302,229 0 5,360,262 0 5,360,262
June 30, 2027 34,078,843 24,942,453 59,021,296 0 5,548,248 0 5,548,248
June 30, 2028 32,565,713 28,226,222 60,791,935 0 5,810,012 0 5,810,012
June 30, 2029 30,943,482 31,672,211 62,615,693 0 6,081,849 0 6,081,849
June 30, 2030 29,367,263 35,126,901 64,494,164 0 6,307,146 34,297 6,341,443
June 30, 2031 27,851,003 38,577,986 66,428,989 0 6,660,369 93,558 6,753,927
June 30, 2032 26,343,288 42,078,571 68,421,859 0 6,951,812 178,412 7,130,224
June 30, 2033 24,775,242 45,699,273 70,474,515 0 7,097,303 292,717 7,390,020
June 30, 2034 23,199,274 49,389,476 72,588,750 0 7,338,872 432,181 7,771,053
June 30, 2035 21,729,027 53,037,386 74,766,413 0 7,540,553 535,738 8,076,291
June 30, 2036 20,280,024 56,729,381 77,009,405 0 7,497,904 654,955 8,152,859
June 30, 2037 18,958,931 60,360,756 79,319,687 0 7,598,758 789,816 8,388,574
June 30, 2038 17,627,819 64,071,459 81,699,278 0 7,635,606 899,229 8,534,835
June 30, 2039 16,310,787 67,839,469 84,150,256 0 7,596,291 1,022,037 8,618,328
June 30, 2040 15,078,684 71,596,080 86,674,764 0 7,587,076 1,193,322 8,780,398
June 30, 2041 13,877,558 75,397,449 89,275,007 0 7,541,994 1,426,515 8,968,509
June 30, 2042 12,640,154 79,313,103 91,953,257 0 7,539,220 1,715,257 9,254,477
June 30, 2043 11,593,205 83,118,650 94,711,855 0 7,428,203 2,068,764 9,496,967
June 30, 2044 10,631,921 86,921,290 97,553,211 0 7,367,994 2,477,642 9,845,636
June 30, 2045 9,586,855 90,892,952 100,479,807 0 7,402,964 2,826,070 10,229,034
June 30, 2046 8,706,366 94,787,835 103,494,201 0 7,278,946 3,211,140 10,490,086
June 30, 2047 7,784,555 98,814,472 106,599,027 0 7,268,458 3,630,940 10,899,398
June 30, 2048 6,914,931 102,882,067 109,796,998 0 7,286,681 4,003,729 11,290,410
June 30, 2049 6,090,747 107,000,161 113,090,908 0 7,135,940 4,406,322 11,542,262
June 30, 2050 5,291,690 111,191,945 116,483,635 0 7,017,774 4,861,395 11,879,169
June 30, 2051 4,609,426 115,368,718 119,978,144 0 6,878,685 5,360,619 12,239,304
June 30, 2052 3,942,663 119,634,825 123,577,488 0 6,702,366 5,902,719 12,605,085
June 30, 2053 3,400,386 123,884,427 127,284,813 0 6,600,147 6,494,400 13,094,547
June 30, 2054 2,854,657 128,248,700 131,103,357 0 6,437,373 7,132,734 13,570,107
June 30, 2055 2,368,156 132,668,302 135,036,458 0 6,314,524 7,778,650 14,093,174
June 30, 2056 1,909,962 137,177,590 139,087,552 0 6,184,312 8,463,321 14,647,633
June 30, 2057 1,571,370 141,688,809 143,260,179 0 6,069,438 9,187,706 15,257,144
June 30, 2058 1,216,217 146,341,767 147,557,984 0 5,915,464 9,931,252 15,846,716
June 30, 2059 941,121 151,043,603 151,984,724 0 5,708,242 10,712,178 16,420,420
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 23Source page 33
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
CONTRIBUTION PROJECTION DISCLOSURES (CONTINUED)
Table 1: Projection of Contributions using a July 1, 2018 Valuation Date
V. Employer
For the Period Ending I. Payroll for IV. Contributions Payments for VI. Employer VII. Total
on the Measurement current II. Payroll for III. Total from current current plan Payments for Payments
Date employees future employees Payroll [I.+II.] employees members future employees [IV.+V.+VI.]
June 30, 2060 700,464 155,843,802 156,544,266 0 5,544,607 11,542,997 17,087,604
June 30, 2061 509,071 160,731,523 161,240,594 0 5,402,590 12,418,078 17,820,668
June 30, 2062 340,018 165,737,794 166,077,812 0 5,202,282 13,345,761 18,548,043
June 30, 2063 237,091 170,823,055 171,060,146 0 5,002,287 14,329,159 19,331,446
June 30, 2064 136,513 176,055,437 176,191,950 0 4,848,304 15,364,998 20,213,302
June 30, 2065 82,865 181,394,844 181,477,709 0 4,665,561 16,441,308 21,106,869
June 30, 2066 34,889 186,887,151 186,922,040 0 4,479,731 17,569,977 22,049,708
June 30, 2067 16,231 192,513,470 192,529,701 0 4,303,296 18,749,398 23,052,694
June 30, 2068 1,153 198,304,439 198,305,592 0 4,121,130 19,971,454 24,092,584
June 30, 2069 0 204,254,760 204,254,760 0 3,935,017 21,245,095 25,180,112
June 30, 2070 0 210,382,403 210,382,403 0 3,746,621 22,569,920 26,316,541
June 30, 2071 0 216,693,875 216,693,875 0 3,556,534 23,951,506 27,508,040
June 30, 2072 0 223,194,691 223,194,691 0 3,365,983 25,390,744 28,756,727
June 30, 2073 0 229,890,532 229,890,532 0 3,175,549 26,888,910 30,064,459
June 30, 2074 0 236,787,248 236,787,248 0 2,985,931 28,450,507 31,436,438
June 30, 2075 0 243,890,865 243,890,865 0 2,797,975 30,077,873 32,875,848
June 30, 2076 0 251,207,591 251,207,591 0 2,612,045 31,771,400 34,383,445
June 30, 2077 0 258,743,819 258,743,819 0 2,429,304 33,530,248 35,959,552
June 30, 2078 0 266,506,134 266,506,134 0 2,249,823 35,364,466 37,614,289
June 30, 2079 0 274,501,318 274,501,318 0 2,074,311 37,269,809 39,344,120
June 30, 2080 0 282,736,358 282,736,358 0 1,903,348 39,248,658 41,152,006
June 30, 2081 0 291,218,449 291,218,449 0 1,737,069 41,310,358 43,047,427
June 30, 2082 0 299,955,002 299,955,002 0 1,576,377 43,458,506 45,034,883
June 30, 2083 0 308,953,652 308,953,652 0 1,422,014 45,696,307 47,118,321
June 30, 2084 0 318,222,262 318,222,262 0 1,274,608 48,030,642 49,305,250
June 30, 2085 0 327,768,930 327,768,930 0 1,134,734 50,468,042 51,602,776
June 30, 2086 0 337,601,998 337,601,998 0 1,003,123 53,008,904 54,012,027
June 30, 2087 0 347,730,058 347,730,058 0 880,031 55,660,025 56,540,056
June 30, 2088 0 358,161,960 358,161,960 0 766,196 58,430,134 59,196,330
June 30, 2089 0 368,906,819 368,906,819 0 661,455 61,319,747 61,981,202
June 30, 2090 0 379,974,024 379,974,024 0 566,129 64,336,351 64,902,480
June 30, 2091 0 391,373,245 391,373,245 0 479,675 67,488,414 67,968,089
June 30, 2092 0 403,114,442 403,114,442 0 402,456 70,782,124 71,184,580
June 30, 2093 0 415,207,875 415,207,875 0 334,035 74,223,800 74,557,835
June 30, 2094 0 427,664,111 427,664,111 0 274,320 77,822,135 78,096,455
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 24Source page 34
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
FIDUCIARY NET POSITION PROJECTION DISCLOSURES
Table 2: Projection of OPEB Plan's Fiduciary Net Position using a July 1, 2018 Valuation Date
III. Contributions to IV. Gross VII. Trust
II. Employer Share of Trust for Current Contributions to V. Administrative VI. Benefit Payments Withdrawals for IX. Ending
For the Period Ending I. Beginning Fiduciary Benefit Payments for Plan Members Trust for Current Expenses Withdrawn Withdrawn from the Current Plan Fiduciary Net
on the Measurement Net Position for Current Current Plan beyond Pay-as-you- Plan Members from the Trust for Trust for Current Plan Members VIII. Investment Position for Current
Date Plan Members Members go [II. + III.] Current Plan Members Members [V. +VI.] Earnings Plan Members
June 30, 2020 5,219,494 3,875,429 1,030,000 4,905,429 0 3,875,429 3,875,429 130,887 6,380,381
June 30, 2021 6,380,381 4,119,198 847,831 4,967,029 0 4,119,198 4,119,198 434,594 7,662,806
June 30, 2022 7,662,806 4,456,435 835,034 5,291,469 0 4,456,435 4,456,435 565,128 9,062,968
June 30, 2023 9,062,968 4,698,295 850,024 5,548,319 0 4,698,295 4,698,295 663,655 10,576,647
June 30, 2024 10,576,647 4,837,460 860,348 5,697,808 0 4,837,460 4,837,460 769,968 12,206,963
June 30, 2025 12,206,963 5,104,776 866,356 5,971,132 0 5,104,776 5,104,776 884,297 13,957,616
June 30, 2026 13,957,616 5,360,262 868,605 6,228,867 0 5,360,262 5,360,262 1,006,920 15,833,141
June 30, 2027 15,833,141 5,548,248 866,099 6,414,347 0 5,548,248 5,548,248 1,138,121 17,837,361
June 30, 2028 17,837,361 5,810,012 803,537 6,613,549 0 5,810,012 5,810,012 1,276,263 19,917,161
June 30, 2029 19,917,161 6,081,849 741,271 6,823,120 0 6,081,849 6,081,849 1,419,707 22,078,139
June 30, 2030 22,078,139 6,307,146 683,021 6,990,167 0 6,307,146 6,307,146 1,568,971 24,295,834
June 30, 2031 24,295,834 6,660,369 628,890 7,289,259 0 6,660,369 6,660,369 1,722,347 26,553,513
June 30, 2032 26,553,513 6,951,812 577,519 7,529,331 0 6,951,812 6,951,812 1,878,617 28,831,237
June 30, 2033 28,831,237 7,097,303 527,323 7,624,626 0 7,097,303 7,097,303 2,036,331 31,102,174
June 30, 2034 31,102,174 7,338,872 479,398 7,818,270 0 7,338,872 7,338,872 2,193,647 33,343,038
June 30, 2035 33,343,038 7,540,553 435,938 7,976,491 0 7,540,553 7,540,553 2,349,012 35,592,250
June 30, 2036 35,592,250 7,497,904 395,017 7,892,921 0 7,497,904 7,497,904 2,505,049 37,837,361
June 30, 2037 37,837,361 7,598,758 358,529 7,957,287 0 7,598,758 7,598,758 2,660,952 40,067,026
June 30, 2038 40,067,026 7,635,606 323,647 7,959,253 0 7,635,606 7,635,606 2,815,828 42,307,272
June 30, 2039 42,307,272 7,596,291 290,744 7,887,035 0 7,596,291 7,596,291 2,971,513 44,547,492
June 30, 2040 44,547,492 7,587,076 260,953 7,848,029 0 7,587,076 7,587,076 3,127,303 46,742,426
June 30, 2041 46,742,426 7,541,994 233,171 7,775,165 0 7,541,994 7,541,994 3,279,993 48,829,075
June 30, 2042 48,829,075 7,539,220 206,194 7,745,414 0 7,539,220 7,539,220 3,425,130 50,745,142
June 30, 2043 50,745,142 7,428,203 183,608 7,611,811 0 7,428,203 7,428,203 3,558,478 52,418,464
June 30, 2044 52,418,464 7,367,994 163,479 7,531,473 0 7,367,994 7,367,994 3,674,917 53,779,218
June 30, 2045 53,779,218 7,402,964 143,116 7,546,080 0 7,402,964 7,402,964 3,769,470 54,865,734
June 30, 2046 54,865,734 7,278,946 126,186 7,405,132 0 7,278,946 7,278,946 3,844,943 55,625,723
June 30, 2047 55,625,723 7,268,458 109,540 7,377,998 0 7,268,458 7,268,458 3,897,570 56,001,893
June 30, 2048 56,001,893 7,286,681 94,469 7,381,150 0 7,286,681 7,286,681 3,923,383 56,016,016
June 30, 2049 56,016,016 7,135,940 80,786 7,216,726 0 7,135,940 7,135,940 3,923,901 55,614,381
June 30, 2050 55,614,381 7,017,774 68,143 7,085,917 0 7,017,774 7,017,774 3,895,351 54,716,480
June 30, 2051 54,716,480 6,878,685 57,628 6,936,313 0 6,878,685 6,878,685 3,832,136 53,245,625
June 30, 2052 53,245,625 6,702,366 47,857 6,750,223 0 6,702,366 6,702,366 3,728,840 51,119,603
June 30, 2053 51,119,603 6,600,147 40,072 6,640,219 0 6,600,147 6,600,147 3,579,751 48,245,026
June 30, 2054 48,245,026 6,437,373 32,661 6,470,034 0 6,437,373 6,437,373 3,378,276 44,523,229
June 30, 2055 44,523,229 6,314,524 26,306 6,340,830 0 6,314,524 6,314,524 3,117,531 39,888,416
June 30, 2056 39,888,416 6,184,312 20,598 6,204,910 0 6,184,312 6,184,312 2,792,898 34,238,591
June 30, 2057 34,238,591 6,069,438 16,453 6,085,891 0 6,069,438 6,069,438 2,397,267 27,464,605
June 30, 2058 27,464,605 5,915,464 12,363 5,927,827 0 5,915,464 5,915,464 1,922,948 19,468,664
June 30, 2059 19,468,664 5,708,242 9,288 5,717,530 0 5,708,242 5,708,242 1,363,126 10,128,900
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 25Source page 35
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
FIDUCIARY POSITION PROJECTION DISCLOSURES (CONTINUED)
Table 2: Projection of OPEB Plan's Fiduciary Net Position using a July 1, 2018 Valuation Date
III. Contributions to IV. Gross VII. Trust
II. Employer Share of Trust for Current Contributions to V. Administrative VI. Benefit Payments Withdrawals for IX. Ending
For the Period Ending I. Beginning Fiduciary Benefit Payments for Plan Members Trust for Current Expenses Withdrawn Withdrawn from the Current Plan Fiduciary Net
on the Measurement Net Position for Current Current Plan beyond Pay-as-you- Plan Members from the Trust for Trust for Current Plan Members VIII. Investment Position for Current
Date Plan Members Members go [II. + III.] Current Plan Members Members [V. +VI.] Earnings Plan Members
June 30, 2060 10,128,900 5,544,607 6,712 5,551,319 0 5,544,607 5,544,607 709,254 4,587,467
June 30, 2061 4,587,467 5,402,590 4,736 5,407,326 0 5,402,590 5,402,590 321,286 326,022
June 30, 2062 326,022 5,202,282 3,071 5,205,353 0 5,202,282 5,202,282 22,927 25,998
June 30, 2063 25,998 5,002,287 2,079 5,004,366 0 5,002,287 5,002,287 1,891 3,970
June 30, 2064 3,970 4,848,304 1,162 4,849,466 0 4,848,304 4,848,304 318 1,480
June 30, 2065 1,480 4,665,561 685 4,666,246 0 4,665,561 4,665,561 127 812
June 30, 2066 812 4,479,731 280 4,480,011 0 4,479,731 4,479,731 66 346
June 30, 2067 346 4,303,296 126 4,303,422 0 4,303,296 4,303,296 29 155
June 30, 2068 155 4,121,130 9 4,121,139 0 4,121,130 4,121,130 11 20
June 30, 2069 20 3,935,017 0 3,935,017 0 3,935,017 3,935,017 1 1
June 30, 2070 1 3,746,621 0 3,746,621 0 3,746,621 3,746,621 0 0
June 30, 2071 0 3,556,534 0 3,556,534 0 3,556,534 3,556,534 0 0
June 30, 2072 0 3,365,983 0 3,365,983 0 3,365,983 3,365,983 0 0
June 30, 2073 0 3,175,549 0 3,175,549 0 3,175,549 3,175,549 0 0
June 30, 2074 0 2,985,931 0 2,985,931 0 2,985,931 2,985,931 0 0
June 30, 2075 0 2,797,975 0 2,797,975 0 2,797,975 2,797,975 0 0
June 30, 2076 0 2,612,045 0 2,612,045 0 2,612,045 2,612,045 0 0
June 30, 2077 0 2,429,304 0 2,429,304 0 2,429,304 2,429,304 0 0
June 30, 2078 0 2,249,823 0 2,249,823 0 2,249,823 2,249,823 0 0
June 30, 2079 0 2,074,311 0 2,074,311 0 2,074,311 2,074,311 0 0
June 30, 2080 0 1,903,348 0 1,903,348 0 1,903,348 1,903,348 0 0
June 30, 2081 0 1,737,069 0 1,737,069 0 1,737,069 1,737,069 0 0
June 30, 2082 0 1,576,377 0 1,576,377 0 1,576,377 1,576,377 0 0
June 30, 2083 0 1,422,014 0 1,422,014 0 1,422,014 1,422,014 0 0
June 30, 2084 0 1,274,608 0 1,274,608 0 1,274,608 1,274,608 0 0
June 30, 2085 0 1,134,734 0 1,134,734 0 1,134,734 1,134,734 0 0
June 30, 2086 0 1,003,123 0 1,003,123 0 1,003,123 1,003,123 0 0
June 30, 2087 0 880,031 0 880,031 0 880,031 880,031 0 0
June 30, 2088 0 766,196 0 766,196 0 766,196 766,196 0 0
June 30, 2089 0 661,455 0 661,455 0 661,455 661,455 0 0
June 30, 2090 0 566,129 0 566,129 0 566,129 566,129 0 0
June 30, 2091 0 479,675 0 479,675 0 479,675 479,675 0 0
June 30, 2092 0 402,456 0 402,456 0 402,456 402,456 0 0
June 30, 2093 0 334,035 0 334,035 0 334,035 334,035 0 0
June 30, 2094 0 274,320 0 274,320 0 274,320 274,320 0 0
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 26Source page 36
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
BENEFIT PAYMENT PROJECTION DISCLOSURES
Table 3: Actuarial Present Values of Projected Benefit Payments using a July 1, 2018 Valuation Date
V. Present Value of VI. Present Value of
II. Benefit IV. Unfunded Funded Benefit Unfunded Benefit VII. Present Value of
For the Period Ending I. Beginning Fiduciary Payments for III. Funded Portion of Benefit Payments using the Payments using the Benefit Payments using
on the Measurement Net Position for Current Current Plan Portion of Benefit Payments Long-Term Rate of Municipal Bond Rate the Single Equivalent
Date Plan Members Members Payments [II. - III.] Return [7.00%] [2.66%] Discount Rate [5.99%]
June 30, 2020 5,219,494 3,875,429 3,875,429 0 3,875,429 0 3,875,429 Sum of Column V.
June 30, 2021 6,380,381 4,119,198 4,119,198 0 3,849,718 0 3,886,336 85,981,473
June 30, 2022 7,662,806 4,456,435 4,456,435 0 3,892,423 0 3,966,824
June 30, 2023 9,062,968 4,698,295 4,698,295 0 3,835,208 0 3,945,693 Sum of Column VI.
June 30, 2024 10,576,647 4,837,460 4,837,460 0 3,690,475 0 3,832,905 15,396,300
June 30, 2025 12,206,963 5,104,776 5,104,776 0 3,639,635 0 3,816,059
June 30, 2026 13,957,616 5,360,262 5,360,262 0 3,571,769 0 3,780,525 Sum of Column VII.
June 30, 2027 15,833,141 5,548,248 5,548,248 0 3,455,170 0 3,691,897 [V. + VI.]
June 30, 2028 17,837,361 5,810,012 5,810,012 0 3,381,480 0 3,647,527 101,377,773
June 30, 2029 19,917,161 6,081,849 6,081,849 0 3,308,123 0 3,602,340
June 30, 2030 22,078,139 6,307,146 6,307,146 0 3,206,233 0 3,524,599
June 30, 2031 24,295,834 6,660,369 6,660,369 0 3,164,293 0 3,511,581
June 30, 2032 26,553,513 6,951,812 6,951,812 0 3,086,688 0 3,458,041
June 30, 2033 28,831,237 7,097,303 7,097,303 0 2,945,128 0 3,330,835
June 30, 2034 31,102,174 7,338,872 7,338,872 0 2,846,141 0 3,249,502
June 30, 2035 33,343,038 7,540,553 7,540,553 0 2,733,043 0 3,150,057
June 30, 2036 35,592,250 7,497,904 7,497,904 0 2,539,799 0 2,955,172
June 30, 2037 37,837,361 7,598,758 7,598,758 0 2,405,572 0 2,825,616
June 30, 2038 40,067,026 7,635,606 7,635,606 0 2,259,100 0 2,678,809
June 30, 2039 42,307,272 7,596,291 7,596,291 0 2,100,438 0 2,514,360
June 30, 2040 44,547,492 7,587,076 7,587,076 0 1,960,645 0 2,369,343
June 30, 2041 46,742,426 7,541,994 7,541,994 0 1,821,490 0 2,222,120
June 30, 2042 48,829,075 7,539,220 7,539,220 0 1,701,701 0 2,095,730
June 30, 2043 50,745,142 7,428,203 7,428,203 0 1,566,956 0 1,948,141
June 30, 2044 52,418,464 7,367,994 7,367,994 0 1,452,575 0 1,823,113
June 30, 2045 53,779,218 7,402,964 7,402,964 0 1,363,990 0 1,728,214
June 30, 2046 54,865,734 7,278,946 7,278,946 0 1,253,402 0 1,603,202
June 30, 2047 55,625,723 7,268,458 7,268,458 0 1,169,716 0 1,510,392
June 30, 2048 56,001,893 7,286,681 7,286,681 0 1,095,933 0 1,428,581
June 30, 2049 56,016,016 7,135,940 7,135,940 0 1,003,048 0 1,319,939
June 30, 2050 55,614,381 7,017,774 7,017,774 0 921,905 0 1,224,700
June 30, 2051 54,716,480 6,878,685 6,878,685 0 844,517 0 1,132,566
June 30, 2052 53,245,625 6,702,366 6,702,366 0 769,037 0 1,041,151
June 30, 2053 51,119,603 6,600,147 6,600,147 0 707,765 0 967,313
June 30, 2054 48,245,026 6,437,373 6,437,373 0 645,149 0 890,122
June 30, 2055 44,523,229 6,314,524 6,314,524 0 591,437 0 823,776
June 30, 2056 39,888,416 6,184,312 6,184,312 0 541,347 0 761,181
June 30, 2057 34,238,591 6,069,438 6,069,438 0 496,534 0 704,811
June 30, 2058 27,464,605 5,915,464 5,915,464 0 452,278 0 648,098
June 30, 2059 19,468,664 5,708,242 5,708,242 0 407,882 0 590,041
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 27Source page 37
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
BENEFIT PAYMENT PROJECTION DISCLOSURES (CONTINUED)
Table 3: Actuarial Present Values of Projected Benefit Payments using a July 1, 2018 Valuation Date
V. Present Value of VI. Present Value of
II. Benefit IV. Unfunded Funded Benefit Unfunded Benefit VII. Present Value of
For the Period Ending I. Beginning Fiduciary Payments for III. Funded Portion of Benefit Payments using the Payments using the Benefit Payments using
on the Measurement Net Position for Current Current Plan Portion of Benefit Payments Long-Term Rate of Municipal Bond Rate the Single Equivalent
Date Plan Members Members Payments [II. - III.] Return [7.00%] [2.66%] Discount Rate [5.99%]
June 30, 2060 10,128,900 5,544,607 5,544,607 0 370,271 0 540,727
June 30, 2061 4,587,467 5,402,590 5,402,590 0 337,184 0 497,092
June 30, 2062 326,022 5,202,282 1,735,029 3,467,253 101,202 1,151,039 451,603
June 30, 2063 25,998 5,002,287 1,364,479 3,637,808 74,381 1,176,365 409,693
June 30, 2064 3,970 4,848,304 1,296,489 3,551,815 66,051 1,118,795 374,634
June 30, 2065 1,480 4,665,561 1,236,658 3,428,903 58,882 1,052,090 340,133
June 30, 2066 812 4,479,731 1,179,705 3,300,026 52,495 986,309 308,124
June 30, 2067 346 4,303,296 1,128,684 3,174,612 46,939 924,238 279,256
June 30, 2068 155 4,121,130 1,075,555 3,045,575 41,803 863,695 252,316
June 30, 2069 20 3,935,017 1,021,942 2,913,075 37,121 804,712 227,302
June 30, 2070 1 3,746,621 968,198 2,778,423 32,868 747,627 204,185
June 30, 2071 0 3,556,534 914,700 2,641,834 29,021 692,452 182,868
June 30, 2072 0 3,365,983 861,765 2,504,218 25,552 639,373 163,287
June 30, 2073 0 3,175,549 809,365 2,366,184 22,429 588,475 145,340
June 30, 2074 0 2,985,931 757,931 2,228,000 19,629 539,750 128,936
June 30, 2075 0 2,797,975 707,560 2,090,415 17,126 493,296 113,990
June 30, 2076 0 2,612,045 658,153 1,953,892 14,888 449,131 100,399
June 30, 2077 0 2,429,304 609,818 1,819,486 12,892 407,398 88,097
June 30, 2078 0 2,249,823 562,911 1,686,912 11,122 367,926 76,976
June 30, 2079 0 2,074,311 517,234 1,557,077 9,551 330,808 66,959
June 30, 2080 0 1,903,348 472,932 1,430,416 8,162 296,023 57,967
June 30, 2081 0 1,737,069 430,236 1,306,833 6,939 263,440 49,912
June 30, 2082 0 1,576,377 389,310 1,187,067 5,868 233,096 42,734
June 30, 2083 0 1,422,014 350,253 1,071,761 4,934 205,001 36,370
June 30, 2084 0 1,274,608 313,260 961,348 4,124 179,116 30,757
June 30, 2085 0 1,134,734 278,422 856,312 3,426 155,412 25,834
June 30, 2086 0 1,003,123 245,791 757,332 2,826 133,886 21,547
June 30, 2087 0 880,031 215,406 664,625 2,315 114,452 17,834
June 30, 2088 0 766,196 187,450 578,746 1,883 97,081 14,649
June 30, 2089 0 661,455 161,775 499,680 1,519 81,646 11,932
June 30, 2090 0 566,129 138,457 427,672 1,215 68,069 9,635
June 30, 2091 0 479,675 117,347 362,328 962 56,175 7,702
June 30, 2092 0 402,456 98,512 303,944 755 45,902 6,097
June 30, 2093 0 334,035 81,825 252,210 586 37,102 4,774
June 30, 2094 0 274,320 67,263 207,057 450 29,670 3,699
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 28Source page 38
APPENDIX II – PLAN PROVISIONS
Effective Date GASB 74 was adopted for the fiscal year ending June 30, 2017
GASB 75 was adopted for the fiscal year ending June 30, 2018
Plan Year July 1 through June 30.
Premium Effective Date Medicare Supplement Plans: effective January 1, 2019
Non-Medicare Plans: effective July 1, 2019
Dental Plans: effective July 1, 2019
Creditable Service Elapsed time from date of hire to termination of service date.
Benefits Offered Comprehensive Medical Insurance offered through Blue Cross Blue Shield of
Massachusetts as well as Dental and $5,000 of group term Life Insurance.
Medicare Part B Medicare Part B Premium reimbursements by the Town were not reflected in this
valuation.
Medicare Part B Penalty reimbursements by the Town were not reflected in this
valuation.
Surviving Spouse Coverage Spousal benefits do not change after the death of a plan participant.
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 29Source page 39
APPENDIX II – PLAN PROVISIONS
Eligibility
Hire Date Eligibility
•Age 55 with 10 years of creditable service
Before April 2, 2012
•20 years of service regardless of age
•Age 60 with 10 years of creditable service
On or after April 2, 2012
Town Contributions
Group Individual Two-Person / Family
Medical The Town pays 75% of premiums The Town pays 75% of premiums
The Town pays 75% of the basic plan The Town pays 75% of the basic plan
Dental
premiums premiums
Life The Town pays 75% of premiums N/A
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 30Source page 40
APPENDIX III – ACTUARIAL METHODS & ASSUMPTIONS
Pre-Retirement Mortality General: RP-2000 Employees Mortality Table projected generationally with scale BB and
a base year 2009 for males and females
Teacher: RP-2000 Employees Mortality Table projected generationally with scale BB and
a base year 2009 for males and females
Post-Retirement Mortality General: RP-2000 Healthy Annuitant Mortality Table projected generationally with scale
BB and a base year 2009 for males and females
Teachers: RP-2000 Healthy Annuitant Mortality Table projected generationally with
scale BB and a base year 2009 for males and females
Disabled Mortality General: RP-2000 Healthy Annuitant Mortality Table projected generationally with
Scale BB and a base year 2012 for males and females
Teachers: RP-2000 Healthy Annuitant Mortality Table projected generationally with
Scale BB and a base year 2012 for males and females
Assumption Experience Study The mortality assumptions reflect recent experience analysis published in 2014 (based
on the years 2006-2011), updated to reflect data through January 1, 2015 for post-
retirement mortality, and professional judgement. As such, mortality assumptions
reflect observed current mortality as well as expected mortality improvements.
Discount Rate 6.00% per annum (previously 5.75%, used in the calculation of the Interest Cost)
Net Long Term Rate of Return 7.00% (based on investment policy)
Municipal Bond Rate 2.66% as of June 30, 2020 (source: S&P Municipal Bond 20-Year High Grade Index –
SAPIHG)
Actuarial Cost Method Individual Entry Age Normal
Asset-Valuation Method Market Value of Assets as of the Measurement Date, June 30, 2020
Town of Canton Other Postemployment Benefits Plan
For the Fiscal Year ending June 30, 2020 | Delivered August 3, 2020 Page 31