Canton, Massachusetts · Saved source text
Other Post Employment Benefits FY17
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Source page 41
EXHIBIT B
Reconciliation of Plan Participation
(As of July 1, 2016)
ACTIVE EMPLOYEES
July 1, 2016 July 1, 2014
A. Average Age at Hire 34.23 34.30
B. Average Service 10.19 10.40
C. Average Current Age 44.42 44.70
RETIRED EMPLOYEES & DEPENDENTS
July 1, 2016 July 1, 2014
I. Retirees
A. Under Age 65 53 N/A
B. Age 65 & Over 349 N/A
C. Total Retirees 402 N/A
II. Dependents of Retirees
A. Under Age 65 44 N/A
B. Age 65 & Over 133 N/A
C. Total Retirees 177 N/A
III. Retirees & Dependents
A. Under Age 65 97 N/A
B. Age 65 & Over 482 N/A
C. Total Retirees 579 N/A
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 36Source page 42
EXHIBIT C
Projected Cash Flows (Open Group) – Partial Approach
Total Medical, Dental & Life Insurance - Partial - 5.25% discount rate
II. Plan Assets
as of VIII. IX. Excess
I. Total Actuarial Valuation III. Unfunded IV. V. OPEB Employer Employer X. Total
Accrued Liability Date with Accrued Actuarial Funded Obligation VII. Expected Share of Payments Employer
Fiscal Year ("AAL") as of Expected Liability ("UAAL") Ratio (Asset) as of VI. Normal Annual OPEB Premiums / (beyond Contribution
Ending Valuation Date Valuation Date 5.25% Return [I. - II.] [II. / I.] Fiscal year end Cost Expense Claims claims) [VIII. + IX.]
45,696,091
June 30, 2017 July 1, 2016 86,413,049 2,008,350 84,404,699 2.32% 50,707,387 2,515,861 8,795,176 3,013,880 770,000 3,783,880
June 30, 2018 July 1, 2017 90,505,696 2,980,372 87,525,324 3.29% 55,745,982 2,675,741 9,218,151 3,179,556 1,000,000 4,179,556
June 30, 2019 July 1, 2018 94,642,651 4,162,756 90,479,895 4.40% 61,007,480 2,828,953 9,635,890 3,374,392 1,000,000 4,374,392
June 30, 2020 July 1, 2019 99,037,238 5,407,215 93,630,023 5.46% 66,509,070 2,980,360 10,063,525 3,561,935 1,000,000 4,561,935
June 30, 2021 July 1, 2020 103,624,588 6,717,008 96,907,580 6.48% 72,250,694 3,144,976 10,516,975 3,775,351 1,000,000 4,775,351
June 30, 2022 July 1, 2021 108,401,291 8,095,565 100,305,726 7.47% 78,137,480 3,306,951 10,980,385 4,093,599 1,000,000 5,093,599
June 30, 2023 July 1, 2022 113,263,321 9,546,496 103,716,825 8.43% 84,251,371 3,471,562 11,454,052 4,340,161 1,000,000 5,340,161
June 30, 2024 July 1, 2023 118,294,843 11,073,601 107,221,242 9.36% 90,688,238 3,658,203 11,961,672 4,524,806 1,000,000 5,524,806
June 30, 2025 July 1, 2024 123,580,991 12,680,879 110,900,112 10.26% 97,368,904 3,840,067 12,481,472 4,800,805 1,000,000 5,800,805
June 30, 2026 July 1, 2025 129,035,614 14,372,539 114,663,075 11.14% 104,327,818 4,037,493 13,029,633 5,070,718 1,000,000 6,070,718
June 30, 2027 July 1, 2026 134,712,814 16,153,012 118,559,802 11.99% 111,585,090 4,242,428 13,599,910 5,342,638 1,000,000 6,342,638
June 30, 2028 July 1, 2027 140,606,768 18,026,959 122,579,809 12.82% 119,080,816 4,429,821 14,168,310 5,672,584 1,000,000 6,672,584
June 30, 2029 July 1, 2028 146,603,647 19,999,289 126,604,358 13.64% 126,844,695 4,639,045 14,771,060 6,007,180 1,000,000 7,007,180
June 30, 2030 July 1, 2029 152,763,724 22,075,166 130,688,558 14.45% 134,916,730 4,874,765 15,414,383 6,342,348 1,000,000 7,342,348
June 30, 2031 July 1, 2030 159,100,561 24,260,026 134,840,535 15.25% 143,178,840 5,111,559 16,074,961 6,812,851 1,000,000 7,812,851
June 30, 2032 July 1, 2031 165,388,790 26,559,592 138,829,198 16.06% 151,672,777 5,359,342 16,756,503 7,262,567 1,000,000 8,262,567
June 30, 2033 July 1, 2032 171,830,330 28,979,885 142,850,445 16.87% 160,580,696 5,625,333 17,468,426 7,560,507 1,000,000 8,560,507
June 30, 2034 July 1, 2033 178,652,831 31,527,243 147,125,588 17.65% 169,830,470 5,909,520 18,220,279 7,970,505 1,000,000 8,970,505
June 30, 2035 July 1, 2034 185,469,100 34,208,337 151,260,763 18.44% 179,502,617 6,196,990 18,993,363 8,321,215 1,000,000 9,321,215
June 30, 2036 July 1, 2035 192,738,591 37,030,189 155,708,402 19.21% 189,911,767 6,515,725 19,819,884 8,410,734 1,000,000 9,410,734
June 30, 2037 July 1, 2036 200,672,373 40,000,188 160,672,185 19.93% 200,938,214 6,838,635 20,689,275 8,662,827 1,000,000 9,662,827
June 30, 2038 July 1, 2037 208,898,940 43,126,112 165,772,828 20.64% 203,748,359 7,167,169 12,760,580 8,950,435 1,000,000 9,950,435
June 30, 2039 July 1, 2038 217,709,370 46,416,147 171,293,223 21.32% 206,780,250 7,527,665 13,268,608 9,236,717 1,000,000 10,236,717
June 30, 2040 July 1, 2039 226,988,034 49,878,909 177,109,125 21.97% 209,933,595 7,903,133 13,803,251 9,649,906 1,000,000 10,649,906
June 30, 2041 July 1, 2040 236,614,768 53,523,466 183,091,302 22.62% 213,272,219 8,310,167 14,375,834 10,037,211 1,000,000 11,037,211
June 30, 2042 July 1, 2041 246,808,085 57,359,362 189,448,723 23.24% 216,707,315 8,746,153 14,987,097 10,552,002 1,000,000 11,552,002
June 30, 2043 July 1, 2042 257,543,516 61,396,643 196,146,873 23.84% 220,397,905 9,203,498 15,624,786 10,934,196 1,000,000 11,934,196
June 30, 2044 July 1, 2043 268,819,506 65,645,881 203,173,625 24.42% 224,371,238 9,681,284 16,296,329 11,322,997 1,000,000 12,322,997
June 30, 2045 July 1, 2044 280,867,649 70,118,204 210,749,445 24.96% 228,537,332 10,198,462 17,022,106 11,856,013 1,000,000 12,856,013
June 30, 2046 July 1, 2045 293,554,586 74,825,324 218,729,262 25.49% 233,122,608 10,733,646 17,776,010 12,190,734 1,000,000 13,190,734
June 30, 2047 July 1, 2046 307,112,153 79,779,568 227,332,585 25.98% 243,007,745 11,310,442 23,549,379 12,664,241 1,000,000 13,664,241
June 30, 2048 July 1, 2047 321,636,305 84,993,910 236,642,395 26.43% 253,450,744 11,907,334 24,665,240 13,222,242 1,000,000 14,222,242
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 37Source page 43
EXHIBIT D
Projected Cash Flows (Open Group) – Funded Approach
Total Medical, Dental & Life Insurance - Funding over 30 years at 7.00% discount rate increasing at 0.00% per year
III. Unfunded
II. Plan Assets as Accrued VIII. IX. Excess
I. Total Actuarial of Valuation Actuarial IV. V. OPEB Employer Employer X. Total
Accrued Liability Date with Liability Funded Obligation VII. Expected Share of Payments Employer
Fiscal Year ("AAL") as of Expected 7.00% ("UAAL") Ratio (Asset) as of VI. Normal Annual OPEB Premiums / (beyond Contribution
Ending Valuation Date Valuation Date Return [I. - II.] [II. / I.] Fiscal year end Cost Expense Claims claims) [VIII. + IX.]
45,696,091
June 30, 2017 July 1, 2016 68,459,140 2,008,350 66,450,790 2.93% 49,560,921 1,610,983 7,648,710 3,013,880 770,000 3,783,880
June 30, 2018 July 1, 2017 71,750,194 2,980,372 68,769,822 4.15% 51,859,318 1,723,389 8,031,653 3,179,556 2,553,700 5,733,256
June 30, 2019 July 1, 2018 75,214,625 5,830,566 69,384,059 7.75% 54,230,337 1,829,959 8,299,111 3,374,392 2,553,700 5,928,092
June 30, 2020 July 1, 2019 78,827,065 8,880,273 69,946,792 11.27% 56,683,656 1,933,830 8,568,954 3,561,935 2,553,700 6,115,635
June 30, 2021 July 1, 2020 82,602,905 12,143,460 70,459,445 14.70% 59,207,686 2,046,224 8,853,081 3,775,351 2,553,700 6,329,051
June 30, 2022 July 1, 2021 86,534,881 15,635,070 70,899,811 18.07% 61,700,126 2,156,201 9,139,739 4,093,599 2,553,700 6,647,299
June 30, 2023 July 1, 2022 90,518,533 19,371,093 71,147,440 21.40% 64,231,313 2,267,040 9,425,048 4,340,161 2,553,700 6,893,861
June 30, 2024 July 1, 2023 94,636,203 23,368,637 71,267,566 24.69% 66,880,786 2,392,787 9,727,979 4,524,806 2,553,700 7,078,506
June 30, 2025 July 1, 2024 98,970,126 27,646,009 71,324,117 27.93% 69,561,352 2,514,416 10,035,071 4,800,805 2,553,700 7,354,505
June 30, 2026 July 1, 2025 103,434,885 32,222,797 71,212,088 31.15% 72,291,891 2,646,662 10,354,957 5,070,718 2,553,700 7,624,418
June 30, 2027 July 1, 2026 108,074,627 37,119,961 70,954,666 34.35% 75,078,706 2,783,721 10,683,153 5,342,638 2,553,700 7,896,338
June 30, 2028 July 1, 2027 112,886,010 42,359,926 70,526,084 37.52% 77,853,286 2,906,355 11,000,864 5,672,584 2,553,700 8,226,284
June 30, 2029 July 1, 2028 117,769,021 47,966,689 69,802,332 40.73% 80,624,515 3,043,379 11,332,109 6,007,180 2,553,700 8,560,880
June 30, 2030 July 1, 2029 122,761,311 53,965,925 68,795,386 43.96% 83,409,653 3,198,470 11,681,186 6,342,348 2,553,700 8,896,048
June 30, 2031 July 1, 2030 127,878,679 60,385,108 67,493,571 47.22% 86,074,963 3,354,185 12,031,861 6,812,851 2,553,700 9,366,551
June 30, 2032 July 1, 2031 132,919,528 67,253,633 65,665,895 50.60% 88,639,673 3,516,729 12,380,977 7,262,567 2,553,700 9,816,267
June 30, 2033 July 1, 2032 138,025,958 74,602,955 63,423,003 54.05% 91,260,233 3,690,991 12,734,767 7,560,507 2,553,700 10,114,207
June 30, 2034 July 1, 2033 143,419,653 82,466,730 60,952,923 57.50% 93,840,644 3,877,399 13,104,616 7,970,505 2,553,700 10,524,205
June 30, 2035 July 1, 2034 148,769,186 90,880,969 57,888,217 61.09% 96,438,806 4,065,233 13,473,077 8,321,215 2,553,700 10,874,915
June 30, 2036 July 1, 2035 154,451,396 99,884,205 54,567,191 64.67% 99,338,527 4,274,439 13,864,155 8,410,734 2,553,700 10,964,434
June 30, 2037 July 1, 2036 160,701,880 109,517,667 51,184,213 68.15% 102,400,718 4,486,021 14,278,718 8,662,827 2,553,700 11,216,527
June 30, 2038 July 1, 2037 167,198,443 119,825,472 47,372,971 71.67% 95,542,393 4,700,537 4,645,810 8,950,435 2,553,700 11,504,135
June 30, 2039 July 1, 2038 174,146,603 130,854,823 43,291,780 75.14% 88,152,922 4,935,756 4,400,946 9,236,717 2,553,700 11,790,417
June 30, 2040 July 1, 2039 181,473,301 142,656,228 38,817,073 78.61% 80,077,640 5,180,398 4,128,324 9,649,906 2,553,700 12,203,606
June 30, 2041 July 1, 2040 189,063,429 155,283,732 33,779,697 82.13% 71,315,336 5,445,951 3,828,607 10,037,211 2,553,700 12,590,911
June 30, 2042 July 1, 2041 197,081,158 168,795,161 28,285,997 85.65% 61,714,769 5,730,255 3,505,135 10,552,002 2,553,700 13,105,702
June 30, 2043 July 1, 2042 205,482,321 183,252,390 22,229,931 89.18% 51,401,363 6,028,304 3,174,490 10,934,196 2,553,700 13,487,896
June 30, 2044 July 1, 2043 214,309,490 198,721,625 15,587,865 92.73% 40,334,540 6,339,536 2,809,874 11,322,997 2,553,700 13,876,697
June 30, 2045 July 1, 2044 223,741,023 215,273,707 8,467,316 96.22% 28,340,441 6,676,333 2,415,614 11,856,013 2,553,700 14,409,713
June 30, 2046 July 1, 2045 233,649,139 232,984,434 664,705 99.72% 17,452,649 7,024,755 1,967,647 12,190,734 664,705 12,855,439
June 30, 2047 July 1, 2046 244,254,563 249,980,921 (5,726,358) 102.34% 19,356,088 7,400,217 8,841,322 12,664,241 (5,726,358) 6,937,883
June 30, 2048 July 1, 2047 255,605,107 261,556,195 (5,951,088) 102.33% 21,467,386 7,788,431 9,382,452 13,222,242 (5,951,088) 7,271,154
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 38Source page 44
EXHIBIT D
Projected Cash Flows (Open Group) – Funded Approach
Total Medical, Dental & Life Insurance - Funding over 30 years at 7.00% discount rate increasing at 2.75% per year
III. Unfunded
II. Plan Assets as Accrued VIII. IX. Excess
I. Total Actuarial of Valuation Actuarial IV. V. OPEB Employer Employer X. Total
Accrued Liability Date with Liability Funded Obligation VII. Expected Share of Payments Employer
Fiscal Year Valuation ("AAL") as of Expected 7.00% ("UAAL") Ratio (Asset) as of VI. Normal Annual OPEB Premiums / (beyond Contribution
Ending Date Valuation Date Return [I. - II.] [II. / I.] Fiscal year end Cost Expense Claims claims) [VIII. + IX.]
45,696,091
June 30, 2017 July 1, 2016 68,459,140 2,008,350 66,450,790 2.93% 49,560,921 1,610,983 7,648,710 3,013,880 770,000 3,783,880
June 30, 2018 July 1, 2017 71,750,194 2,980,372 68,769,822 4.15% 52,485,418 1,723,389 8,031,653 3,179,556 1,927,600 5,107,156
June 30, 2019 July 1, 2018 75,214,625 5,182,923 70,031,702 6.89% 55,429,528 1,829,959 8,299,111 3,374,392 1,980,609 5,355,001
June 30, 2020 July 1, 2019 78,827,065 7,594,485 71,232,580 9.63% 58,401,471 1,933,830 8,568,954 3,561,935 2,035,076 5,597,011
June 30, 2021 July 1, 2020 82,602,905 10,231,198 72,371,707 12.39% 61,388,160 2,046,224 8,853,081 3,775,351 2,091,041 5,866,392
June 30, 2022 July 1, 2021 86,534,881 13,110,371 73,424,510 15.15% 64,285,755 2,156,201 9,139,739 4,093,599 2,148,545 6,242,144
June 30, 2023 July 1, 2022 90,518,533 16,250,569 74,267,964 17.95% 67,163,012 2,267,040 9,425,048 4,340,161 2,207,630 6,547,791
June 30, 2024 July 1, 2023 94,636,203 19,671,699 74,964,504 20.79% 70,097,845 2,392,787 9,727,979 4,524,806 2,268,340 6,793,146
June 30, 2025 July 1, 2024 98,970,126 23,395,107 75,575,019 23.64% 73,001,392 2,514,416 10,035,071 4,800,805 2,330,719 7,131,524
June 30, 2026 July 1, 2025 103,434,885 27,443,679 75,991,206 26.53% 75,890,817 2,646,662 10,354,957 5,070,718 2,394,814 7,465,532
June 30, 2027 July 1, 2026 108,074,627 31,841,951 76,232,676 29.46% 78,770,661 2,783,721 10,683,153 5,342,638 2,460,671 7,803,309
June 30, 2028 July 1, 2027 112,886,010 36,616,225 76,269,785 32.44% 81,570,602 2,906,355 11,000,864 5,672,584 2,528,339 8,200,923
June 30, 2029 July 1, 2028 117,769,021 41,794,695 75,974,326 35.49% 84,297,663 3,043,379 11,332,109 6,007,180 2,597,868 8,605,048
June 30, 2030 July 1, 2029 122,761,311 47,407,579 75,353,732 38.62% 86,967,192 3,198,470 11,681,186 6,342,348 2,669,309 9,011,657
June 30, 2031 July 1, 2030 127,878,679 53,487,264 74,391,415 41.83% 89,443,487 3,354,185 12,031,861 6,812,851 2,742,715 9,555,566
June 30, 2032 July 1, 2031 132,919,528 60,068,459 72,851,069 45.19% 91,743,757 3,516,729 12,380,977 7,262,567 2,818,140 10,080,707
June 30, 2033 July 1, 2032 138,025,958 67,188,358 70,837,600 48.68% 94,022,378 3,690,991 12,734,767 7,560,507 2,895,639 10,456,146
June 30, 2034 July 1, 2033 143,419,653 74,886,815 68,532,838 52.22% 96,181,220 3,877,399 13,104,616 7,970,505 2,975,269 10,945,774
June 30, 2035 July 1, 2034 148,769,186 83,206,534 65,562,652 55.93% 98,275,993 4,065,233 13,473,077 8,321,215 3,057,089 11,378,304
June 30, 2036 July 1, 2035 154,451,396 92,193,269 62,258,127 59.69% 100,588,255 4,274,439 13,864,155 8,410,734 3,141,159 11,551,893
June 30, 2037 July 1, 2036 160,701,880 101,896,038 58,805,842 63.41% 102,976,605 4,486,021 14,278,718 8,662,827 3,227,541 11,890,368
June 30, 2038 July 1, 2037 167,198,443 112,367,355 54,831,088 67.21% 95,355,682 4,700,537 4,645,810 8,950,435 3,316,298 12,266,733
June 30, 2039 July 1, 2038 174,146,603 123,663,475 50,483,128 71.01% 87,112,415 4,935,756 4,400,946 9,236,717 3,407,496 12,644,213
June 30, 2040 July 1, 2039 181,473,301 135,844,660 45,628,641 74.86% 78,089,631 5,180,398 4,128,324 9,649,906 3,501,202 13,151,108
June 30, 2041 July 1, 2040 189,063,429 148,975,458 40,087,971 78.80% 68,283,542 5,445,951 3,828,607 10,037,211 3,597,485 13,634,696
June 30, 2042 July 1, 2041 197,081,158 163,125,007 33,956,151 82.77% 57,540,259 5,730,255 3,505,135 10,552,002 3,696,416 14,248,418
June 30, 2043 July 1, 2042 205,482,321 178,367,360 27,114,961 86.80% 45,982,486 6,028,304 3,174,490 10,934,196 3,798,067 14,732,263
June 30, 2044 July 1, 2043 214,309,490 194,781,826 19,527,664 90.89% 33,566,849 6,339,536 2,809,874 11,322,997 3,902,514 15,225,511
June 30, 2045 July 1, 2044 223,741,023 212,453,346 11,287,677 94.96% 20,116,617 6,676,333 2,415,614 11,856,013 4,009,833 15,865,846
June 30, 2046 July 1, 2045 233,649,139 231,472,884 2,176,255 99.07% 7,717,275 7,024,755 1,967,647 12,190,734 2,176,255 14,366,989
June 30, 2047 July 1, 2046 244,254,563 249,927,122 (5,672,559) 102.32% 9,566,915 7,400,217 8,841,322 12,664,241 (5,672,559) 6,991,682
June 30, 2048 July 1, 2047 255,605,107 261,554,280 (5,949,173) 102.33% 11,676,298 7,788,431 9,382,452 13,222,242 (5,949,173) 7,273,069
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 39Source page 45
EXHIBIT D
Projected Cash Flows (Open Group) – Funded Approach
Total Medical, Dental & Life Insurance - Funding Annual Normal Cost - 5.25% discount rate
VI. Present VII. Present XI. Present
III. Employer Value at 2.75% Value at VIII. Present X. Unfunded Value at 2.75%
Share of of Employer 2.75% of Value at IX. Plan Assets Accrued of Unfunded
Premiums / IV. Funding Share of Funding 2.75% of at Beginning Actuarial Accrued
I. Total Actuarial Claims Normal Cost V. Total Premiums / Normal Cost Total Funding of Year with Liability Actuarial
Accrued Liability including beyond Funding Costs Claims including beyond Costs Expected ("UAAL") Liability
Fiscal Year ("AAL") II. Normal Cost "implicit cost" claims [III. + IV.] "implicit cost" claims [VI. + VII.] 5.25% Return [I. - IX.] ("UAAL")
2017 86,413,049 2,515,861 3,013,880 (498,019) 2,515,861 3,013,880 (498,019) 2,515,861 2,008,350 84,404,699 84,404,699
2018 90,505,696 2,675,741 3,179,556 (503,815) 2,675,741 3,094,458 (490,331) 2,604,127 1,615,769 88,889,927 86,510,878
2019 94,642,651 2,828,953 3,374,392 (545,439) 2,828,953 3,196,185 (516,633) 2,679,552 1,196,782 93,445,869 88,510,837
2020 99,037,238 2,980,360 3,561,935 (581,575) 2,980,360 3,283,526 (536,118) 2,747,408 714,174 98,323,064 90,637,916
2021 103,624,588 3,144,976 3,775,351 (630,375) 3,144,976 3,387,116 (565,551) 2,821,565 170,093 103,454,495 92,815,828
2022 108,401,291 3,306,951 4,093,599 (786,648) 3,306,951 3,574,342 (686,865) 2,887,477 (451,352) 108,852,643 95,045,121
2023 113,263,321 3,471,562 4,340,161 (868,599) 3,471,562 3,688,203 (738,122) 2,950,081 (1,261,696) 114,525,017 97,321,632
2024 118,294,843 3,658,203 4,524,806 (866,603) 3,658,203 3,742,201 (716,716) 3,025,485 (2,196,534) 120,491,377 99,651,342
2025 123,580,991 3,840,067 4,800,805 (960,738) 3,840,067 3,864,198 (773,304) 3,090,894 (3,178,455) 126,759,446 102,029,483
2026 129,035,614 4,037,493 5,070,718 (1,033,225) 4,037,493 3,972,217 (809,391) 3,162,826 (4,306,062) 133,341,676 104,455,048
2027 134,712,814 4,242,428 5,342,638 (1,100,210) 4,242,428 4,073,216 (838,798) 3,234,418 (5,565,355) 140,278,169 106,947,782
2028 140,606,768 4,429,821 5,672,584 (1,242,763) 4,429,821 4,209,018 (922,122) 3,286,896 (6,957,746) 147,564,514 109,491,851
2029 146,603,647 4,639,045 6,007,180 (1,368,135) 4,639,045 4,337,991 (987,977) 3,350,014 (8,565,791) 155,169,438 112,053,189
2030 152,763,724 4,874,765 6,342,348 (1,467,583) 4,874,765 4,457,448 (1,031,428) 3,426,020 (10,383,630) 163,147,354 114,661,135
2031 159,100,561 5,111,559 6,812,851 (1,701,292) 5,111,559 4,659,972 (1,163,679) 3,496,293 (12,396,354) 171,496,915 117,303,423
2032 165,388,790 5,359,342 7,262,567 (1,903,225) 5,359,342 4,834,624 (1,266,959) 3,567,665 (14,748,455) 180,137,245 119,915,703
2033 171,830,330 5,625,333 7,560,507 (1,935,174) 5,625,333 4,898,258 (1,253,749) 3,644,509 (17,425,974) 189,256,304 122,614,284
2034 178,652,831 5,909,520 7,970,505 (2,060,985) 5,909,520 5,025,679 (1,299,522) 3,726,157 (20,276,012) 198,928,843 125,431,506
2035 185,469,100 6,196,990 8,321,215 (2,124,225) 6,196,990 5,106,388 (1,303,550) 3,802,838 (23,401,488) 208,870,588 128,175,299
2036 192,738,591 6,515,725 8,410,734 (1,895,009) 6,515,725 5,023,184 (1,131,766) 3,891,418 (26,754,291) 219,492,882 131,088,822
2037 200,672,373 6,838,635 8,662,827 (1,824,192) 6,838,635 5,035,273 (1,060,313) 3,974,960 (30,053,900) 230,726,273 134,109,777
2038 208,898,940 7,167,169 8,950,435 (1,783,266) 7,167,169 5,063,207 (1,008,783) 4,054,424 (33,455,922) 242,354,862 137,098,687
2039 217,709,370 7,527,665 9,236,717 (1,709,052) 7,527,665 5,085,309 (940,925) 4,144,384 (36,995,624) 254,704,994 140,228,791
2040 226,988,034 7,903,133 9,649,906 (1,746,773) 7,903,133 5,170,600 (935,954) 4,234,646 (40,646,946) 267,634,980 143,403,837
2041 236,614,768 8,310,167 10,037,211 (1,727,044) 8,310,167 5,234,186 (900,616) 4,333,570 (44,527,684) 281,142,452 146,609,629
2042 246,808,085 8,746,153 10,552,002 (1,805,849) 8,746,153 5,355,365 (916,507) 4,438,858 (48,592,431) 295,400,516 149,922,041
2043 257,543,516 9,203,498 10,934,196 (1,730,698) 9,203,498 5,400,814 (854,857) 4,545,957 (52,949,383) 310,492,899 153,364,230
2044 268,819,506 9,681,284 11,322,997 (1,641,713) 9,681,284 5,443,171 (789,201) 4,653,970 (57,459,924) 326,279,430 156,848,464
2045 280,867,649 10,198,462 11,856,013 (1,657,551) 10,198,462 5,546,863 (775,489) 4,771,374 (62,118,283) 342,985,932 160,466,748
2046 293,554,586 10,733,646 12,190,734 (1,457,088) 10,733,646 5,550,815 (663,457) 4,887,358 (67,037,044) 360,591,630 164,188,432
2047 307,112,153 11,310,442 12,664,241 (1,353,799) 11,310,442 5,612,085 (599,928) 5,012,157 (72,013,577) 379,125,730 168,007,374
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 40Source page 46
EXHIBIT D
Projected Cash Flows (Open Group) – Funded Approach
Total Medical, Dental & Life Insurance - Partial
Number of Present Value at
Retirees, Present Value at Employer Share of 2.75% of Employer
Spouses & Total Actuarial 2.75% of Total Premiums / Claims Share of Premiums /
Surviving Accrued Liability Actuarial Accrued including "implicit Claims including
Fiscal Year Spouses ("AAL") Liability ("AAL") cost" "implicit cost"
2017 579 86,413,049 86,413,049 3,013,880 3,013,880
2018 591 90,505,696 88,083,402 3,179,556 3,094,458
2019 596 94,642,651 89,644,415 3,374,392 3,196,185
2020 602 99,037,238 91,296,269 3,561,935 3,283,526
2021 608 103,624,588 92,968,430 3,775,351 3,387,116
2022 612 108,401,291 94,651,021 4,093,599 3,574,342
2023 618 113,263,321 96,249,461 4,340,161 3,688,203
2024 624 118,294,843 97,834,718 4,524,806 3,742,201
2025 628 123,580,991 99,471,125 4,800,805 3,864,198
2026 632 129,035,614 101,081,835 5,070,718 3,972,217
2027 635 134,712,814 102,704,767 5,342,638 4,073,216
2028 642 140,606,768 104,329,251 5,672,584 4,209,018
2029 651 146,603,647 105,867,537 6,007,180 4,337,991
2030 659 152,763,724 107,363,445 6,342,348 4,457,448
2031 666 159,100,561 108,824,350 6,812,851 4,659,972
2032 673 165,388,790 110,097,793 7,262,567 4,834,624
2033 680 171,830,330 111,324,444 7,560,507 4,898,258
2034 686 178,652,831 112,646,780 7,970,505 5,025,679
2035 690 185,469,100 113,814,767 8,321,215 5,106,388
2036 692 192,738,591 115,110,224 8,410,734 5,023,184
2037 692 200,672,373 116,640,930 8,662,827 5,035,273
2038 691 208,898,940 118,172,873 8,950,435 5,063,207
2039 690 217,709,370 119,860,711 9,236,717 5,085,309
2040 690 226,988,034 121,624,442 9,649,906 5,170,600
2041 690 236,614,768 123,389,417 10,037,211 5,234,186
2042 691 246,808,085 125,260,349 10,552,002 5,355,365
2043 691 257,543,516 127,210,519 10,934,196 5,400,814
2044 692 268,819,506 129,226,432 11,322,997 5,443,171
2045 693 280,867,649 131,404,568 11,856,013 5,546,863
2046 694 293,554,586 133,664,409 12,190,734 5,550,815
2047 696 307,112,153 136,094,974 12,664,241 5,612,085
2048 697 321,636,305 138,716,562 13,222,242 5,702,540
2049 698 336,844,650 141,387,520 13,665,118 5,735,811
2050 700 353,173,043 144,273,690 14,179,765 5,792,534
2051 701 370,551,579 147,321,601 14,773,903 5,873,717
2052 703 389,065,362 150,542,283 15,383,158 5,952,254
2053 704 408,770,314 153,933,608 16,053,148 6,045,251
2054 705 429,661,992 157,470,500 16,697,785 6,119,714
2055 707 452,027,506 161,233,507 17,488,639 6,238,016
2056 708 475,850,877 165,188,376 18,327,349 6,362,214
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 41Source page 47
EXHIBIT E
GLOSSARY
AAL – Actuarial Accrued Liability. That portion, as determined by a particular
Actuarial Cost Method, of the Actuarial Present Value of pension plan benefits and
expenses which is not provided for by future Normal Costs.
Accrual Accounting - A system of accounting in which revenues are recorded when
earned and outlays are recorded when goods are received or services performed, even
though the actual receipt of revenues and payment for goods or services may occur, in
whole or in part, at a different time.
Actuarial Value of Assets – The value of cash, investments, other assets and property
belonging to an OPEB trust, pension fund or similar entity, as used by the actuary for
the purpose of actuarial valuation. Some funds may be restricted for other purposes,
and “smoothing” of investment gains and losses often make the actuarial value of
assets different from the market value of assets.
Annual Required Contribution – Normal Cost plus an amortization of the funding
shortfall over a period of no more than 30 years.
Cash Basis Accounting - A system of accounting in which revenues are recorded when
actually received and outlays are recorded when payment is made.
Discount Rate – The interest rate used to calculate present value of a series of future
cash flows. Under GASB 45, the rate should be “long term expected yield on the
investments that are expected to be used to pay benefits as they come due. These would
be plan investments for a funded plan, the employer’s investments for a pay as you go
plan [e.g. short term county investment pool], or a weighted average of expected plan
and employer investments for a plan that is partially funded”.
FASB – Financial Accounting Standards Board. “Since 1973, the Financial Accounting
Standards Board (FASB) has been the designated organization in the private sector for
establishing standards of financial accounting and reporting”.
GASB - Government Accounting Standards Board. “The Governmental Accounting
Standards Board (GASB) was organized in 1984 by the Financial Accounting Foundation
(FAF) to establish standards of financial accounting and reporting for state and local
governmental entities. Its standards guide the preparation of external financial reports
of those entities.”
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 42Source page 48
EXHIBIT E
GLOSSARY
(continued)
GFOA – Government Finance Officers Association. “GFOA is the professional
association of state/provincial and local finance officers in the United States and Canada,
and has served the public finance profession since 1906. Approximately 16,000 GFOA
members are dedicated to the sound management of government financial resources.”
Implicit Subsidy – “The difference between a premium rate charged to retirees for a
particular benefit and the estimated rate that would have be applicable to those retirees
if that benefit was acquired for them as a separate group.”
Irrevocable Contribution – “Irrevocably transferred assets to a qualifying trust, or
equivalent arrangement, in which plan assets are dedicated to providing benefits to
retirees and their beneficiaries in accordance with the terms of the plan and are legally
protected from creditors of the employer(s) or plan administrator. The preceding
criteria preclude counting as [irrevocable] contributions (a) designations of net assets of
a governmental or proprietary fund to be used for OPEB or (b) internal transfers of
assets to a separate governmental or proprietary fund for the same purpose. Rather,
such actions should be regarded as earmarking of employer assets.”
Level Dollar Amortization – Funding a shortfall in OPEB assets with equal dollar
payments over a designated number of years (no more than 30 years). The present
value of the level payments equals the present value of unfunded liabilities, the UAAL.
Level Percent of Payroll Amortization – Funding a shortfall in OPEB assets as a level
percent of payroll over a designated number of years (no more than 30 years). The
present value of the payments equals the present value of unfunded liabilities, the
UAAL. Level percent of payroll typically has lower payments in the early years than
level dollar amortization. When using level payroll amortization, employee count is
assumed to be constant, and the payroll differences arise from overall wage trends.
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 43Source page 49
EXHIBIT E
GLOSSARY
(continued)
Normal Cost - The actuarially determined present value contribution needed to fund
benefits which are earned for employee service rendered during the current year.
Normal cost depends on many factors, including the interest rate used to discount
future cashflows, and expected inflation.
NOA – Net OPEB Asset. The amount recognized by an employer for contributions to
an OPEB plan greater than OPEB expenses.
NOO – Net OPEB Obligation. The cumulative difference since the effective date of
GASB Statement number 45 between annual OPEB cost and the employer’s
contributions to the plan, including the OPEB liability (asset) at transition, if any, and
excluding (a) short-term differences and (b) unpaid contributions that have been
converted to OPEB-related debt.
OPEB – Other Post Employment Benefits
OPEB Trust – An entity other than a pension or retirement system which manages
OPEB assets. In many respects it is similar to a pension fund for OPEB. For reasons
detailed in GASB 45, contributions to an OPEB trust should be irrevocable in order to
obtain the most favorable accounting treatment.
Pay-as-you-go funding – Paying benefits (such as pensions or OPEB) on a cash basis,
with no money set aside for future liabilities which are already incurred.
POB – Pension Obligation Bond. Generally yielding taxable interest, POBs are issued to
help fund a previously unfunded or underfunded pension liability.
UAAL – Unfunded Accrued Actuarial Liability. Actuarial Accrued Liability minus the
Actuarial Value of Assets.
Town of Canton Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2016
August 2017
Page 44