Canton, Massachusetts · Saved source text
Other Post Employment Benefits Fiscal Year 2019 (PDF)
Saved text from 49 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 1
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, 2019
For the Reporting Date:
June 30, 2019
Delivered August 16, 2019Source 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 15
APPENDIX
I LIABILITIES, ASSETS, & CASH FLOWS 19
II PLAN PROVISIONS 27
III ACTUARIAL METHODS & ASSUMPTIONS 29
IV PLAN DEMOGRAPHICS 36
V OVERVIEW OF GASB 74 & 75 38
GLOSSARY 40Source page 3
August 16, 2019 Personal and Confidential Mr. James Murgia Finance Director Town of Canton 801 Washington St Canton, MA 02021 Dear Mr. Murgia: We have performed an actuarial valuation of the Town of Canton Other Postemployment Benefits Plan for the Reporting Date & fiscal year ending June 30, 2019 with a Measurement Date of June 30, 2019 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 16, 2019
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, 2019 for the Reporting Date &
fiscal year ending June 30, 2019 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
President, CEO & ActuarySource page 5
EXECUTIVE SUMMARY
What caused plan liabilities to change from FY 18 to FY 19?
For the year ending on the Measurement Date of June 30, 2019, the Plan saw an experience gain of $5,996,352 or 6.32% of the beginning
Total OPEB Liability (“TOL”). This was mainly due to premiums increasing less than the expected 10% increase.
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 5.25% to 5.75% decreasing the disclosed liability by $5.7
million.
✓ The expected long-term medical trend has been updated to 4.5% decreasing the disclosed liability by $7.3 million.
✓ The method for developing expected medical claims has been updated increasing the disclosed liability by $9 million.
✓ Assumption changes caused Service Cost to decrease by $400 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
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page ISource page 6
EXECUTIVE SUMMARY
Recognition Period
✓ Changes in assumptions & plan experience are amortized into the net OPEB expense over time until fully recognized
✓ 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 2.79% as of June 30, 2019.
✓ Current Asset Level – The Town had $5,219,494 of assets as of June 30, 2019.
✓ Funding Policy - The Town is expected to contribute $1,000,000 per year.
✓ Investment Policy - The Town is expected to earn 7.05% on assets based on its investment policy.
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 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 integrated) plans - represent 69.65% 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 non-Medicare integrated
plans and 4.50% per year for Medicare integrated plans.
✓ Discount Rate (5.75%) – 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.
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 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, 2016
Measurement Date & Period Ending June 30, 2019 July 1, 2017
Reporting Date/Fiscal Year End June 30, 2019 June 30, 2018
Total OPEB Liability 88,688,109 90,505,696
Per Eligible Active Plan Participant 64,185 68,986
Per Retiree/Spouse Plan Participant 76,627 72,196
Total Annual Service Cost (annual benefit accrual) 2,040,579 2,515,860
Per Eligible Active Plan Participant 3,023 3,564
Expected Employer Share of Retiree Costs 3,723,578 3,013,880
Per Retiree/Spouse Plan Participant 6,290 5,205
Net OPEB Liability as a % of Payroll 179.10% 198.20%
Average Annual Medical Plan Premium (Single Coverage) 7,379 7,746
Average Annual Medical Plan Premium (Family Coverage) 26,245 27,259
Projected 2022 Excise Tax Thresholds
Annual Medical Plan Premium (Single Coverage) 12,511
Annual Medical Plan Premium (Family Coverage) 32,676
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page IVSource page 9
PRINCIPAL RESULTS OF THE VALUATION
Prior Year Comparison
Town of Canton
Assuming Funding - 5.75% discount rate
Comparison of Plan Liabilities to Prior Valuation
Valuation Date July 1, 2018 July 1, 2016
For the Measurement Period ending on the Measurement Date of: June 30, 2019 July 1, 2017
For the Reporting Period & Fiscal Year ending on: June 30, 2019 June 30, 2018
I. Total OPEB Liability
A. Actives 43,325,132 48,704,012
B. Retirees/Disabled 45,362,977 41,801,684
C. Total 88,688,109 90,505,696
II. Fiduciary Net Position [Plan Assets] 5,219,494 2,980,372
III. Net OPEB Liability (Asset) [I. - II.] 83,468,615 87,525,324
IV. Funded Ratio [II. / I.] 5.89% 3.29%
V. Number of Eligible Participants
A. Actives 675 706
B. Retirees/Disabled & Dependents 592 579
C. Total 1,267 1,285
VI. Service Cost 2,040,579 2,515,860
VII. Financial Statement Expense 5,369,556 6,936,269
VIII. Employer Contribution to the OPEB Trust (800,000) (770,000)
IX. Deferred Inflow of Resources (8,110,445) (31,764)
X. Deferred Outflow of Resources 45,602 0
XI. Money Weighted Rate of Return 5.55% 8.23%
XII. 20-year Municipal Bond Rate (SAPIHG) 2.79% 3.13%
XIII. Expected Long Term Rate of Return (Net of Expense) 7.05% 6.80%
XIV. Crossover Year 2061 Immediate
XV. Discount Rate 5.75% 5.25%
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 1Source page 10
PRINCIPAL RESULTS OF THE VALUATION
Town of Canton
Plan Liabilities as of the June 30, 2019 Measurement Date
Assuming Funding - 5.75% discount rate
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 6,221,985 25,388,310 9,680,656 876,911 806,991 350,279 43,325,132
B. Retirees/Disabled 5,891,189 28,221,023 9,640,471 61,118 1,017,652 531,524 45,362,977
C. Total 12,113,174 53,609,333 19,321,127 938,029 1,824,643 881,803 88,688,109
II. Fiduciary Net Position [Plan Assets] 706,914 3,149,982 1,148,665 53,971 107,340 52,622 5,219,494
III. Net OPEB Liability (Asset) [I. - II.] 11,406,260 50,459,351 18,172,462 884,058 1,717,303 829,181 83,468,615
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, 2019
V. Service Cost 318,874 1,277,850 383,833 20,035 32,555 7,432 2,040,579
VI. Financial Statement Expense 773,527 3,290,687 1,109,486 55,889 100,589 39,378 5,369,556
VII. Employer Share of Costs (602,973) (2,333,262) (651,672) (17,760) (71,779) (46,132) (3,723,578)
VIII. Employer (Payments)/Withdrawals to/from OPEB Trust (108,777) (483,240) (175,178) (8,647) (16,413) (7,745) (800,000)
IX. Total Employer Contribution [VII. + VIII.] (711,750) (2,816,502) (826,850) (26,407) (88,192) (53,877) (4,523,578)
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 2Source page 11
PRINCIPAL RESULTS OF THE VALUATION
Totals by Demographic
Town of Canton
Assuming Funding - 5.75% discount rate
For the Period ending on the June 30, 2019 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 16,315,043 19,361,475 35,676,518 4,120,741 28,138,162 32,258,903 67,935,421
B. Spouses 11,378,513 14,967,168 26,345,681 3,135,924 9,968,150 13,104,074 39,449,755
C. Total 27,693,556 34,328,643 62,022,199 7,256,665 38,106,312 45,362,977 107,385,176
Total OPEB Liability
A. Participants 11,569,721 13,342,587 24,912,308 4,120,741 28,138,162 32,258,903 57,171,211
B. Spouses 8,091,470 10,321,354 18,412,824 3,135,924 9,968,150 13,104,074 31,516,898
C. Total 19,661,191 23,663,941 43,325,132 7,256,665 38,106,312 45,362,977 88,688,109
Service Cost
A. Participants 494,920 685,229 1,180,149 0 0 0 1,180,149
B. Spouses 334,732 525,698 860,430 0 0 0 860,430
C. Total 829,652 1,210,927 2,040,579 0 0 0 2,040,579
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 3Source page 12
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 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, 2019
Description Amount
I. Service Cost 2,040,579
II. Interest on Total OPEB Liability (Asset), Service Cost, and Benefit Payments 5,463,438
III. Deferred (Inflows)/Outflows from Plan Design Changes* 0
IV. Deferred (Inflows)/Outflows from Plan Experience** (1,100,248)
V. Deferred (Inflows)/Outflows from Changes of Assumptions** (716,970)
VI. Projected earnings on OPEB plan investments (320,703)
VII. Deferred (Inflows)/Outflows from Earnings on Plan Investments*** 3,460
VIII. Financial statement expense [I. + II.+ III. + IV. + V. + VI. + VII.] 5,369,556
* Recognized Immediately
** Amortized over 5.45 years
*** Amortized over 5 years
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 4Source page 13
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 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, 2018 90,505,696 2,980,372 87,525,324
II. Prior Period Adjustment 4,305,814 1,175,422 3,130,392
III. Balances for June 30, 2018 with Adjustment [I. + II.] 94,811,510 4,155,794 90,655,716
Changes for the year:
IV. Service Cost 2,040,579 0 2,040,579
V. Interest on Total OPEB Liability, Service Cost, and Benefit Payments 5,463,438 0 5,463,438
VI. Changes in Benefit terms * 0 0 0
VII. Change in assumptions ** (3,907,488) 0 (3,907,488)
VIII. Differences between actual and expected experience ** (5,996,352) 0 (5,996,352)
IX. Net investment income 0 263,700 (263,700)
X. Employer contributions to Trust 0 4,523,578 (4,523,578)
XI. Benefit payments withdrawn from Trust 0 (3,723,578) 3,723,578
XII. Benefit payments excluding Implicit Cost (2,867,284) 0 (2,867,284)
XIII. Implicit Cost amount (856,294) 0 (856,294)
XIV. Total Benefit payments including Implicit Cost [XII. + XIII.] (3,723,578) 0 (3,723,578)
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.] (6,123,401) 1,063,700 (7,187,101)
XVIII. Balances at June 30, 2019 [III.+XVII.] 88,688,109 5,219,494 83,468,615
* Recognized Immediately
** Amortized over 5.45 years
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 5Source page 14
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
Deferred Inflows/Outflows
(As of the June 30, 2019 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
experience
Fiscal Period (years) Balance 2019 2020 2021 2022 2023 2024
2017
2018 0 5.79 0 0 0 0 0 0
2019 (5,996,352) 5.45 (4,896,104) (1,100,248) (1,100,248) (1,100,248) (1,100,248) (1,100,248) (495,112)
2020
2021
2022
2023
2024
2025
2026
Total Remaining Balance (4,896,104)
Net increase (decrease) in OPEB expense (1,100,248) (1,100,248) (1,100,248) (1,100,248) (1,100,248) (495,112)
Deferred (Inflows)/Outflows in OPEB Expense arising from the recognition of the effects of changes in assumptions
Differences from
changes in Actuarial
Recognition Remaining
Assumptions
Fiscal Period (years) Balance 2019 2020 2021 2022 2023 2024
2017
2018 0 5.79 0 0 0 0 0 0
2019 (3,907,488) 5.45 (3,190,518) (716,970) (716,970) (716,970) (716,970) (716,970) (322,638)
2020
2021
2022
2023
2024
2025
2026
Total Remaining Balance (3,190,518)
Net increase (decrease) in OPEB expense (716,970) (716,970) (716,970) (716,970) (716,970) (322,638)
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 6Source page 15
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 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 2019 2020 2021 2022 2023 2024
2017
2018 (39,705) 5.00 (23,823) (7,941) (7,941) (7,941) (7,941)
2019 57,003 5.00 45,602 11,401 11,401 11,401 11,401 11,399
2020
2021
2022
2023
2024
2025
2026
Total Remaining Balance 21,779
Net increase (decrease) in OPEB expense 3,460 3,460 3,460 3,460 11,399 0
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 7Source page 16
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 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, 2019 to be reported for the fiscal year ending June 30, 2019
Deferred Deferred
Outflows of Inflows of
Resources Resources
I. Differences between actual & expected experience 0 (4,896,104)
II. Changes of assumptions 0 (3,190,518)
III. Net difference between projected & actual earnings on OPEB plan investments 45,602 (23,823)
IV. Total [I.+II.+III.] 45,602 (8,110,445)
Annual Amortization of Deferred (Inflows)/Outflows
The balance of deferred (inflows)/outflows as of June 30, 2019 will be recognized in future years as shown below.
Year ending June 30:
2020 (1,813,758)
2021 (1,813,758)
2022 (1,813,758)
2023 (1,805,819)
2024 (817,750)
Thereafter 0
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 8Source page 17
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 Measurement Date)
Investment Policy
4. 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, 2019 Measurement Date, total Town premiums plus implicit costs for the retiree medical
program were $3,723,578. The Town also made a contribution to an OPEB Trust of $800,000 for a total contribution during the
measurement period of $4,523,578 to be reported on the financial statement for the fiscal year ending June 30, 2019.
5. 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 4.00%
Domestic Equity - Small/Mid Cap 11.67% Domestic Equity - Small/Mid Cap 6.00%
International Equity - Developed Market 13.33% International Equity - Developed Market 4.50%
International Equity-Emerging Market 6.67% International Equity-Emerging Market 7.00%
Domestic Fixed Income 20.00% Domestic Fixed Income 2.00%
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* 4.55%
II. Inflation Assumption 2.75%
III. Total Nominal Return [I. + II.] 7.30%
IV. Investment Expense 0.25%
V. Net Investment Return [III.-IV.] 7.05%
*Geometric Mean
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 9Source page 18
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 Measurement Date)
6. Funded Status and Funding Progress
NOL as a % of
Measurement Fiduciary Net Total OPEB Net OPEB Funded Covered
Fiscal Year Date Position Liability Liability Ratio Covered Payroll Payroll
2016 7/1/2015 $1,190,793 $93,118,080 $91,927,287 1.3% N/A N/A
2017 7/1/2016 $2,008,350 $86,413,049 $84,404,699 2.3% $44,161,613 191.1%
2018 7/1/2017 $2,980,372 $90,505,696 $87,525,324 3.3% $44,161,613 198.2%
2019 6/30/2019 $5,219,494 $88,688,109 $83,468,615 5.9% $46,591,956 179.2%
2020 6/30/2020 (est.) $6,622,118 $92,079,929 $85,457,811 7.2% $47,989,715 178.1%
2021 6/30/2021 (est.) $8,123,627 $95,103,124 $86,979,497 8.5% $49,429,406 176.0%
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 10Source page 19
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 Measurement Date)
+/-1 % Sensitivity
7. Effect of 1% Change in Healthcare Trend
Impact of a 1% Change in the Healthcare Trend Rate as of the June 30, 2019 Measurement Date
1% Decrease Current Trend Rate 1% Increase
I. Total OPEB Liability 77,832,285 88,688,109 102,090,042
II. Fiduciary Net Position 5,219,494 5,219,494 5,219,494
III. Net OPEB Liability (Asset) [I.-II.] 72,612,791 83,468,615 96,870,548
IV. Service Cost 1,626,808 2,040,579 2,593,658
8. Effect of 1% Change in Discount Rates
Impact of a 1% Change in the Discount Rate as of the June 30, 2019 Measurement Date
1% Decrease Current Discount Rate 1% Increase
I. Total OPEB Liability 100,637,874 88,688,109 78,922,476
II. Fiduciary Net Position 5,219,494 5,219,494 5,219,494
III. Net OPEB Liability (Asset) [I.-II.] 95,418,380 83,468,615 73,702,982
IV. Service Cost 2,607,427 2,040,579 1,614,242
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 11Source page 20
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 Measurement Date)
Money ROR
9. Money Weighted Rate of Return
Plan
Investments / Periods Period
Net External Invested Weight
Cash Flows
I. Beginning value - June 30, 2018 4,155,794 12 1.0000
Monthly net external cash flows:
July 0 11 0.9167
August 0 10 0.8333
September 800,000 9 0.7500
October 0 8 0.6667
November 0 7 0.5833
December 0 6 0.5000
January 0 5 0.4167
February 0 4 0.3333
March 0 3 0.2500
April 0 2 0.1667
May 0 1 0.0833
June 0 0 0.0000
II. Total net external cash flow 800,000
III. Earnings and increase in fair value 263,700
IV. Ending value - June 30, 2019 [I.+II.+III.] 5,219,494
Money Weighted Rate of Return 5.55%
Asset Value - June 30, 2019 5,219,494
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 12Source page 21
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
NOL & Expense by Group
(As of the June 30, 2019 Measurement Date)
10. OPEB Liability, OPEB Expense
Fiscal Year Ending June 30, 2019
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, 2019 12,113,174 53,609,333 19,321,127 938,029 1,824,643 881,803 88,688,109
II. Fiduciary Net Position as of June 30, 2019 706,914 3,149,982 1,148,665 53,971 107,340 52,622 5,219,494
III. Net OPEB Liability (Asset) as of June 30, 2019 [I. - II.] 11,406,260 50,459,351 18,172,462 884,058 1,717,303 829,181 83,468,615
IV. Service Cost 318,874 1,277,850 383,833 20,035 32,555 7,432 2,040,579
V. Interest on Total OPEB Liability (Asset), Service Cost, and Benefit Payments 745,834 3,302,764 1,191,328 58,367 111,944 53,201 5,463,438
VI. Projected Earnings on OPEB Plan Investments (43,450) (193,561) (70,547) (3,329) (6,594) (3,222) (320,703)
VII. Net Recognition of Deferred (Inflows)/Outflows (247,731) (1,096,366) (395,128) (19,184) (37,316) (18,033) (1,813,758)
VIII. Expense Related to Change in Benefit Terms 0 0 0 0 0 0 0
IX. Financial Statement Expense [IV. + V. + VI. + VII. + VIII.] 773,527 3,290,687 1,109,486 55,889 100,589 39,378 5,369,556
X. Employer Share of Costs (602,973) (2,333,262) (651,672) (17,760) (71,779) (46,132) (3,723,578)
XI. Employer (Payments) Withdrawals to/from OPEB Trust (108,777) (483,240) (175,178) (8,647) (16,413) (7,745) (800,000)
XII. Total Employer Contribution [X. + XI.] (711,750) (2,816,502) (826,850) (26,407) (88,192) (53,877) (4,523,578)
XIII. Net OPEB Expense [IX. + XII.] 61,777 474,185 282,636 29,482 12,397 (14,499) 845,978
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 13Source page 22
EXHIBIT A
FINANCIAL STATEMENT DISCLOSURES
(As of the June 30, 2019 Measurement Date)
11. 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, 2019
For the Reporting Period & Fiscal Year ending on: June 30, 2019
Source of Deferred Inflow/Outflow
I. Deferred (Inflow)/Outflow from Actual vs. Expected Experience (4,896,104)
II. Deferred (Inflow)/Outflow from Investment Experience 21,779
III. Deferred (Inflow)/Outflow from Changes in Assumptions (3,190,518)
Change in Deferred Inflow/Outflow
I. Deferred Outflow at the beginning of the period 0
II. Deferred Outflow created during the period 57,003
III. Deferred Outflow recognized during the period 11,401
IV. Change in Deferred Outflow (II. - III. ) 45,602
V. Deferred Outflow at end of the period (I. + IV. ) 45,602
VI. Deferred Inflow at the beginning of the period (31,764)
VII. Deferred Inflow created during the period (9,903,840)
VIII. Deferred Inflow recognized during the period (1,825,159)
IX. Change in Deferred Inflow (VII. - VIII. ) (8,078,681)
X. Deferred Inflow at end of the period (VI. + IX. ) (8,110,445)
Net OPEB Liability
I. Net OPEB Liability at beginning of period 90,655,716
II. Service Cost 2,040,579
III. Interest on Total OPEB Liability, Service Cost, and Payments 5,463,438
IV. Projected Investment Income (320,703)
V. Total Employer Contributions (4,523,578)
VI. Expense Related to Change in Benefit Terms 0
VII. Net OPEB Expense - Before Recognition of Deferred (Inflow)/Outflow (II. + III. + IV. + V. + VI. ) 2,659,736
VIII. Deferred Outflow created during the period 57,003
IX. Deferred Inflow created during the period (9,903,840)
X. Net OPEB Liability at end of period (I. + VII. + VIII. + IX. ) 83,468,615
Net OPEB Expense
I. Service Cost 2,040,579
II. Interest on Total OPEB Liability, Service Cost, and Payments 5,463,438
III. Projected Investment Income (320,703)
IV. Recognition of Deferred (Inflow)/Outflow (1,813,758)
V. Expense Related to Change in Benefit Terms 0
VI. Financial Statement Expense (I. + II. + III. + IV. + V. ) 5,369,556
VII. Benefit Payments (3,723,578)
VIII. Contributions to Trust (800,000)
IX. Total Employer Payments (VII. + VIII. ) (4,523,578)
X. Total Net OPEB Expense under GASB 75 (VI. + IX. ) 845,978
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 14Source page 23
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2019 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, 2019 June 30, 2018 June 30, 2017
I. Service Cost 2,040,579 2,675,741 2,515,860
II. 30 year level dollar amortization of NOL 5,581,642 5,564,776 5,366,369
III. Actuarial Determined Contribution [I. + II.] 7,622,221 8,240,517 7,882,229
IV. Contributions in relation to the actuarially determined contribution (4,523,578) (4,179,556) (3,783,880)
V. Contribution deficiency / (excess) [III. + IV.] 3,098,643 4,060,961 4,098,349
Covered employee payroll 46,591,956 45,486,461 44,161,613
Contributions as a % of covered employee payroll 9.71% 9.19% 8.57%
Discount Rate 5.75% 5.25% 5.25%
Money Weighted Rate of Return 5.55% 5.05% 8.23%
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 15Source page 24
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2019 Measurement Date)
Schedule of Changes in the Town's Net OPEB Liability and Related Ratios
Valuation Date July 1, 2018 July 1, 2016 July 1, 2016
For the Reporting Period & Fiscal Year ending on: June 30, 2019 June 30, 2018 June 30, 2017
Total OPEB Liability 88,688,109 94,811,510 90,505,695
I. Service Cost 2,040,579 2,675,741 2,515,860
II. Interest on Total OPEB Liability, Service Cost, and Benefit Payments 5,463,438 4,809,630 4,590,666
III. Changes in Benefit terms 0 0 0
IV. Difference between Expected & Actual Plan Experience (5,996,352) 0 0
V. Changes of assumptions (3,907,488) 0 0
VI. Benefit Payments Excluding Implicit Cost (2,867,284) (2,839,350) N/A
VII. Implicit Cost Amount (856,294) (340,206) N/A
VIII. Total Benefit payments including Implicit Cost [VI.+VII.] (3,723,578) (3,179,556) (3,013,880)
IX. Net Change in OPEB liability [I.+II.+III.+IV.+V.+VIII.] (6,123,401) 4,305,815 4,092,646
X. Total OPEB liability - beginning of period 94,811,510 90,505,695 86,413,049
XI. Total OPEB liability - end of period [IX.+X.] 88,688,109 94,811,510 90,505,695
Plan Fiduciary Net Position 5,219,494 4,155,794 2,980,371
XII. Earning from Plan Investments 263,700 175,423 202,021
XIII. Employer Contribution to trust 4,523,578 4,179,556 3,783,880
XIV. Benefit payments from trust, including refunds of member contributions (3,723,578) (3,179,556) (3,013,880)
XV. Administrative expense 0 0 0
XVI. Other 0 0 0
XVII. Net change in plan fiduciary net position [XII.+XIII.+XIV.+XV.+XVI.] 1,063,700 1,175,423 972,021
XVIII. Plan fiduciary net position - beginning of period 4,155,794 2,980,371 2,008,350
XIX. Plan fiduciary net position - end of period [XVII.+XVIII.] 5,219,494 4,155,794 2,980,371
XX. Net OPEB Liability [XI.-XIX.] 83,468,615 90,655,716 87,525,324
XXI. Plan fiduciary net position as % of total OPEB liability [XIX. / XI.] 5.89% 4.38% 3.29%
XXII. Covered employee payroll 46,591,956 45,486,461 44,161,613
XXIII. Plan NOL as % of covered employee payroll [XX. / XXII.] 179.15% 199.30% 198.19%
Single Discount Rate to calculate Plan Liabilities 5.75% 5.25% 5.25%
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 16Source page 25
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2019 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, 2019.
Actuarial Assumptions:
Investment Rate of Return: 7.05%, net of OPEB plan investment expense, including inflation.
Municipal Bond Rate 2.79% as of June 30, 2019 (source: S&P Municipal Bond 20-Year High Grade Index –
SAPIHG)
Single Equivalent Discount Rate: 5.75%, net of OPEB plan investment expense, including inflation.
Inflation: 2.75% as of June 30, 2019 and for future periods
Salary Increases: 3.00% annually as of June 30, 2019 and for future periods
Cost of Living Adjustment: Not Applicable
Pre-Retirement Mortality: RP-2000 Employees Mortality Table projected generationally with scale BB and a base
year 2009 for males and females
Post-Retirement Mortality: RP-2000 Healthy Annuitant Mortality Table projected generationally with scale BB and
a base year 2009 for males and females
Disabled Mortality: 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
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 17Source page 26
EXHIBIT B
REQUIRED SUPPLEMENTARY INFORMATION
(As of the June 30, 2019 Measurement Date)
Notes to Required Supplementary Information (Continued):
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, 2018 to June 30, 2019
✓ Discount rate is 5.75% previously 5.25%
✓ The expected long-term medical trend has been updated to 4.50%
✓ The method for developing expected medical claims has been updated
Contributions:
The contribution requirements of plan members and the Town are established and may be amended through Town
ordinances. The Town contributed $800,000 beyond the pay-as-you-go cost for the period ending on the June 30, 2019
Measurement Date. For the year ending on the June 30, 2019 Measurement Date total Town premiums plus implicit costs for
the retiree medical program were $3,723,578. $856,294 of the $3,723,578 represents implicit cost.
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 18Source page 27
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
CURRENT FUNDING POLICY (OPEN GROUP)
Current Funding Policy
Funding - 5.75% discount rate
II. Fiduciary Net VII. Excess
Position as of VI. Employer Employer VIII. Total
For the Period Ending on I. Total OPEB Measurement Date III. Net OPEB IV. Funded Share of Payments Employer
Fiscal the Measurement Liability ("TOL") as with an expected Liability (Asset) Ratio V. Service Premiums / (beyond Payments
Year Date of: of Measurement Date 7.05% return [I. - II.] [II. / I.] Cost Claims claims) [VI. + VII.]
2019 June 30, 2019 88,688,109 5,219,494 83,468,615 5.89% 2,040,579 3,723,578 800,000 4,523,578
2020 June 30, 2020 92,079,929 6,622,118 85,457,811 7.19% 2,153,706 3,875,429 1,000,000 4,875,429
2021 June 30, 2021 95,103,124 8,123,627 86,979,497 8.54% 2,264,389 4,119,198 1,000,000 5,119,198
2022 June 30, 2022 98,303,202 9,730,992 88,572,210 9.90% 2,376,534 4,456,435 1,000,000 5,456,435
2023 June 30, 2023 101,561,171 11,451,677 90,109,494 11.28% 2,490,004 4,698,295 1,000,000 5,698,295
2024 June 30, 2024 104,986,029 13,293,670 91,692,359 12.66% 2,614,122 4,837,460 1,000,000 5,837,460
2025 June 30, 2025 108,468,722 15,265,523 93,203,199 14.07% 2,738,268 5,105,321 1,000,000 6,105,321
2026 June 30, 2026 112,030,054 17,376,392 94,653,662 15.51% 2,869,198 5,362,221 1,000,000 6,362,221
2027 June 30, 2027 115,735,096 19,636,077 96,099,019 16.97% 2,999,935 5,552,777 1,000,000 6,552,777
2028 June 30, 2028 119,481,236 22,055,070 97,426,166 18.46% 3,130,431 5,816,727 1,000,000 6,816,727
2029 June 30, 2029 123,341,013 24,644,602 98,696,411 19.98% 3,274,720 6,090,862 1,000,000 7,090,862
2030 June 30, 2030 127,271,494 27,416,696 99,854,798 21.54% 3,415,700 6,352,627 1,000,000 7,352,627
2031 June 30, 2031 131,043,991 30,384,223 100,659,768 23.19% 3,570,373 6,767,156 1,000,000 7,767,156
2032 June 30, 2032 134,880,221 33,560,960 101,319,261 24.88% 3,725,376 7,145,548 1,000,000 8,145,548
2033 June 30, 2033 138,945,715 36,961,657 101,984,058 26.60% 3,888,367 7,405,843 1,000,000 8,405,843
2034 June 30, 2034 142,781,873 40,602,104 102,179,769 28.44% 4,064,956 7,788,949 1,000,000 8,788,949
2035 June 30, 2035 146,813,940 44,499,202 102,314,738 30.31% 4,236,753 8,096,407 1,000,000 9,096,407
2036 June 30, 2036 151,148,829 48,671,045 102,477,784 32.20% 4,429,909 8,172,973 1,000,000 9,172,973
2037 June 30, 2037 155,638,579 53,137,003 102,501,576 34.14% 4,622,863 8,410,055 1,000,000 9,410,055
2038 June 30, 2038 160,516,078 57,917,811 102,598,267 36.08% 4,825,115 8,556,511 1,000,000 9,556,511
2039 June 30, 2039 165,710,483 63,035,666 102,674,817 38.04% 5,041,424 8,640,202 1,000,000 9,640,202
2040 June 30, 2040 171,145,976 68,514,330 102,631,646 40.03% 5,257,145 8,803,438 1,000,000 9,803,438
2041 June 30, 2041 176,994,203 74,379,240 102,614,963 42.02% 5,490,170 8,999,894 1,000,000 9,999,894
2042 June 30, 2042 183,234,912 80,657,626 102,577,286 44.02% 5,743,740 9,293,438 1,000,000 10,293,438
2043 June 30, 2043 189,713,777 87,378,638 102,335,139 46.06% 6,007,845 9,538,843 1,000,000 10,538,843
2044 June 30, 2044 196,540,458 94,573,482 101,966,976 48.12% 6,277,719 9,891,599 1,000,000 10,891,599
2045 June 30, 2045 203,706,534 102,275,562 101,430,972 50.21% 6,576,873 10,281,096 1,000,000 11,281,096
2046 June 30, 2046 211,339,296 110,520,639 100,818,657 52.30% 6,882,589 10,540,202 1,000,000 11,540,202
2047 June 30, 2047 219,484,616 119,346,994 100,137,622 54.38% 7,210,339 10,955,572 1,000,000 11,955,572
2048 June 30, 2048 227,927,974 128,795,607 99,132,367 56.51% 7,550,616 11,346,859 1,000,000 12,346,859
2049 June 30, 2049 237,102,122 138,910,347 98,191,775 58.59% 7,906,111 11,595,243 1,000,000 12,595,243
2050 June 30, 2050 246,757,479 149,738,176 97,019,303 60.68% 8,279,058 11,925,127 1,000,000 12,925,127
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 19Source page 28
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
ALTERNATIVE FUNDING SCENARIO (OPEN GROUP)
7.00% discount rate and increasing at 3.00% per year
II. Fiduciary Net
Position as of III. Net OPEB VI. Employer VIII. Total
For the Period Ending on I. Total OPEB Measurement Date Liability (Asset) IV Funded Share of VII. Annual Employer
Fiscal the Measurement Liability ("TOL") as with expected ("NOL") Ratio V. Service Premiums / Funding / Payments
Year Date of: of Measurement Date 7.05% return [I. - II.] [II. / I.] Cost Claims (Payments) [VI. + VII.]
2019 June 30, 2019 73,762,377 5,219,494 68,542,883 7.08% 1,508,274 3,723,578 800,000 4,523,578
2020 June 30, 2020 76,555,368 7,037,615 69,517,753 9.19% 1,601,577 3,875,429 1,401,582 5,277,011
2021 June 30, 2021 79,481,221 9,027,417 70,453,804 11.36% 1,691,005 4,119,198 1,443,629 5,562,827
2022 June 30, 2022 82,446,736 11,157,500 71,289,236 13.53% 1,780,789 4,456,435 1,486,938 5,943,373
2023 June 30, 2023 85,355,067 13,482,564 71,872,503 15.80% 1,870,786 4,698,295 1,531,546 6,229,841
2024 June 30, 2024 88,304,487 16,017,698 72,286,789 18.14% 1,969,259 4,837,460 1,577,492 6,414,952
2025 June 30, 2025 91,413,139 18,779,097 72,634,042 20.54% 2,067,277 5,105,321 1,624,817 6,730,138
2026 June 30, 2026 94,559,255 21,784,140 72,775,115 23.04% 2,170,445 5,362,221 1,673,562 7,035,783
2027 June 30, 2027 97,762,421 25,051,472 72,710,949 25.62% 2,272,826 5,552,777 1,723,769 7,276,546
2028 June 30, 2028 101,095,270 28,601,098 72,494,172 28.29% 2,373,667 5,816,727 1,775,482 7,592,209
2029 June 30, 2029 104,453,191 32,454,477 71,998,714 31.07% 2,485,659 6,090,862 1,828,746 7,919,608
2030 June 30, 2030 107,893,722 36,634,629 71,259,093 33.95% 2,594,679 6,352,627 1,883,608 8,236,235
2031 June 30, 2031 111,384,660 41,166,245 70,218,415 36.96% 2,714,736 6,767,156 1,940,116 8,707,272
2032 June 30, 2032 114,695,776 46,075,806 68,619,970 40.17% 2,834,376 7,145,548 1,998,319 9,143,867
2033 June 30, 2033 118,013,923 51,391,710 66,622,213 43.55% 2,959,586 7,405,843 2,058,269 9,464,112
2034 June 30, 2034 121,502,879 57,144,413 64,358,466 47.03% 3,095,570 7,788,949 2,120,017 9,908,966
2035 June 30, 2035 124,744,189 63,366,569 61,377,620 50.80% 3,226,939 8,096,407 2,183,618 10,280,025
2036 June 30, 2036 128,112,376 70,093,192 58,019,184 54.71% 3,375,215 8,172,973 2,249,127 10,422,100
2037 June 30, 2037 131,762,005 77,361,821 54,400,184 58.71% 3,523,093 8,410,055 2,316,601 10,726,656
2038 June 30, 2038 135,529,594 85,212,700 50,316,894 62.87% 3,677,995 8,556,511 2,386,099 10,942,610
2039 June 30, 2039 139,624,974 93,688,972 45,936,002 67.10% 3,843,439 8,640,202 2,457,682 11,097,884
2040 June 30, 2040 144,020,154 102,836,884 41,183,270 71.40% 4,007,486 8,803,438 2,531,412 11,334,850
2041 June 30, 2041 148,640,635 112,706,009 35,934,626 75.82% 4,184,874 8,999,894 2,607,354 11,607,248
2042 June 30, 2042 153,608,869 123,349,481 30,259,388 80.30% 4,377,775 9,293,438 2,685,575 11,979,013
2043 June 30, 2043 158,896,434 134,824,249 24,072,185 84.85% 4,578,673 9,538,843 2,766,142 12,304,985
2044 June 30, 2044 164,400,633 147,191,347 17,209,286 89.53% 4,783,894 9,891,599 2,849,126 12,740,725
2045 June 30, 2045 170,177,338 160,516,184 9,661,154 94.32% 5,011,387 10,281,096 2,934,600 13,215,696
2046 June 30, 2046 176,220,360 174,868,858 1,351,502 99.23% 5,243,870 10,540,202 3,022,638 13,562,840
2047 June 30, 2047 182,655,476 190,324,484 (7,669,008) 104.20% 5,493,021 10,955,572 1,351,502 12,307,074
2048 June 30, 2048 189,488,804 205,140,691 (15,651,887) 108.26% 5,751,255 11,346,859 0 11,346,859
2049 June 30, 2049 196,573,684 219,603,110 (23,029,426) 111.72% 6,020,729 11,595,243 0 11,595,243
2050 June 30, 2050 204,273,292 235,085,129 (30,811,837) 115.08% 6,303,163 11,925,127 0 11,925,127
2051 June 30, 2051 212,424,475 251,658,631 (39,234,156) 118.47% 6,598,279 12,283,747 0 12,283,747
2052 June 30, 2052 221,141,338 269,400,564 (48,259,226) 121.82% 6,915,815 12,647,246 0 12,647,246
2053 June 30, 2053 230,491,461 288,393,304 (57,901,843) 125.12% 7,240,533 13,141,243 0 13,141,243
2054 June 30, 2054 240,394,296 308,725,032 (68,330,736) 128.42% 7,584,988 13,614,417 0 13,614,417
2055 June 30, 2055 250,898,685 330,490,147 (79,591,462) 131.72% 7,944,135 14,131,527 0 14,131,527
2056 June 30, 2056 262,023,617 353,789,702 (91,766,085) 135.02% 8,322,644 14,675,664 0 14,675,664
2057 June 30, 2057 273,616,279 378,731,876 (105,115,597) 138.42% 8,712,707 15,283,683 0 15,283,683
2058 June 30, 2058 285,872,838 405,432,473 (119,559,635) 141.82% 9,124,199 15,867,304 0 15,867,304
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 20Source page 29
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
CONTRIBUTION PROJECTION DISCLOSURES
Projection of Contributions using a July 1, 2018 Valuation Date
V. Employer
For the Period Ending I. Payroll for III. Total IV. Contributions Payments for VI. Employer VII. Total
on the Measurement current II. Payroll for employee payroll from current current plan Payments for Payments
Date employees future employees [I.+II.] employees members future employees [IV.+V.+VI.]
June 30, 2019 46,591,956 0 46,591,956 0 3,723,578 0 3,723,578
June 30, 2020 44,869,152 3,120,563 47,989,715 0 3,875,429 0 3,875,429
June 30, 2021 43,788,891 5,640,515 49,429,406 0 4,119,198 0 4,119,198
June 30, 2022 42,990,526 7,921,762 50,912,288 0 4,456,435 0 4,456,435
June 30, 2023 42,315,735 10,123,922 52,439,657 0 4,698,295 0 4,698,295
June 30, 2024 41,728,842 12,284,005 54,012,847 0 4,837,460 0 4,837,460
June 30, 2025 41,214,676 14,418,556 55,633,232 0 5,105,321 0 5,105,321
June 30, 2026 40,691,921 16,610,308 57,302,229 0 5,362,221 0 5,362,221
June 30, 2027 40,051,719 18,969,577 59,021,296 0 5,552,777 0 5,552,777
June 30, 2028 39,198,277 21,593,658 60,791,935 0 5,816,727 0 5,816,727
June 30, 2029 38,317,617 24,298,076 62,615,693 0 6,090,862 0 6,090,862
June 30, 2030 37,429,419 27,064,745 64,494,164 0 6,318,330 34,297 6,352,627
June 30, 2031 36,465,271 29,963,718 66,428,989 0 6,673,598 93,558 6,767,156
June 30, 2032 35,323,571 33,098,288 68,421,859 0 6,967,136 178,412 7,145,548
June 30, 2033 34,068,916 36,405,599 70,474,515 0 7,113,126 292,717 7,405,843
June 30, 2034 32,867,103 39,721,647 72,588,750 0 7,356,768 432,181 7,788,949
June 30, 2035 31,595,617 43,170,796 74,766,413 0 7,560,669 535,738 8,096,407
June 30, 2036 30,423,519 46,585,886 77,009,405 0 7,518,018 654,955 8,172,973
June 30, 2037 29,136,098 50,183,589 79,319,687 0 7,620,239 789,816 8,410,055
June 30, 2038 27,768,024 53,931,254 81,699,278 0 7,657,282 899,229 8,556,511
June 30, 2039 26,440,563 57,709,693 84,150,256 0 7,618,165 1,022,037 8,640,202
June 30, 2040 25,064,414 61,610,350 86,674,764 0 7,610,116 1,193,322 8,803,438
June 30, 2041 23,514,411 65,760,596 89,275,007 0 7,573,379 1,426,515 8,999,894
June 30, 2042 22,213,780 69,739,477 91,953,257 0 7,578,181 1,715,257 9,293,438
June 30, 2043 20,983,016 73,728,839 94,711,855 0 7,470,033 2,068,810 9,538,843
June 30, 2044 19,488,103 78,065,108 97,553,211 0 7,412,909 2,478,690 9,891,599
June 30, 2045 18,229,197 82,250,610 100,479,807 0 7,455,026 2,826,070 10,281,096
June 30, 2046 16,788,103 86,706,098 103,494,201 0 7,329,062 3,211,140 10,540,202
June 30, 2047 15,360,061 91,238,966 106,599,027 0 7,324,632 3,630,940 10,955,572
June 30, 2048 13,935,189 95,861,809 109,796,998 0 7,343,130 4,003,729 11,346,859
June 30, 2049 12,470,214 100,620,694 113,090,908 0 7,188,921 4,406,322 11,595,243
June 30, 2050 11,188,288 105,295,347 116,483,635 0 7,063,412 4,861,715 11,925,127
June 30, 2051 9,856,975 110,121,169 119,978,144 0 6,921,904 5,361,843 12,283,747
June 30, 2052 8,756,277 114,821,211 123,577,488 0 6,741,721 5,905,525 12,647,246
June 30, 2053 7,571,509 119,713,304 127,284,813 0 6,642,038 6,499,205 13,141,243
June 30, 2054 6,469,579 124,633,778 131,103,357 0 6,474,348 7,140,069 13,614,417
June 30, 2055 5,374,370 129,662,088 135,036,458 0 6,347,462 7,784,065 14,131,527
June 30, 2056 4,554,266 134,533,286 139,087,552 0 6,208,524 8,467,140 14,675,664
June 30, 2057 3,630,683 139,629,496 143,260,179 0 6,093,556 9,190,127 15,283,683
June 30, 2058 2,893,744 144,664,240 147,557,984 0 5,934,824 9,932,480 15,867,304
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 21Source page 30
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
CONTRIBUTION PROJECTION DISCLOSURES (CONTINUED)
Projection of Contributions using a July 1, 2018 Valuation Date
V. Employer
For the Period Ending I. Payroll for III. Total IV. Contributions Payments for VI. Employer VII. Total
on the Measurement current II. Payroll for employee payroll from current current plan Payments for Payments
Date employees future employees [I.+II.] employees members future employees [IV.+V.+VI.]
June 30, 2059 2,218,387 149,766,337 151,984,724 0 5,724,597 10,712,647 16,437,244
June 30, 2060 1,660,608 154,883,658 156,544,266 0 5,553,737 11,543,275 17,097,012
June 30, 2061 1,142,426 160,098,168 161,240,594 0 5,411,344 12,419,443 17,830,787
June 30, 2062 820,499 165,257,313 166,077,812 0 5,204,985 13,348,870 18,553,855
June 30, 2063 486,602 170,573,544 171,060,146 0 5,002,495 14,334,493 19,336,988
June 30, 2064 304,234 175,887,716 176,191,950 0 4,848,441 15,373,011 20,221,452
June 30, 2065 131,937 181,345,772 181,477,709 0 4,665,650 16,448,412 21,114,062
June 30, 2066 63,219 186,858,821 186,922,040 0 4,479,788 17,576,278 22,056,066
June 30, 2067 4,626 192,525,075 192,529,701 0 4,303,332 18,754,931 23,058,263
June 30, 2068 0 198,305,592 198,305,592 0 4,121,153 19,976,180 24,097,333
June 30, 2069 0 204,254,760 204,254,760 0 3,935,031 21,248,977 25,184,008
June 30, 2070 0 210,382,403 210,382,403 0 3,746,630 22,572,995 26,319,625
June 30, 2071 0 216,693,875 216,693,875 0 3,556,539 23,953,804 27,510,343
June 30, 2072 0 223,194,691 223,194,691 0 3,365,986 25,392,284 28,758,270
June 30, 2073 0 229,890,532 229,890,532 0 3,175,549 26,889,849 30,065,398
June 30, 2074 0 236,787,248 236,787,248 0 2,985,931 28,450,925 31,436,856
June 30, 2075 0 243,890,865 243,890,865 0 2,797,975 30,077,945 32,875,920
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
June 30, 2095 0 440,494,034 440,494,034 0 222,615 81,584,214 81,806,829
June 30, 2096 0 453,708,855 453,708,855 0 178,726 85,516,750 85,695,476
June 30, 2097 0 467,320,121 467,320,121 0 142,181 89,628,363 89,770,544
June 30, 2098 0 481,339,725 481,339,725 0 111,938 93,927,455 94,039,393
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 22Source page 31
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
FIDUCIARY NET POSITION PROJECTION DISCLOSURES
Projection of OPEB Plan's Fiduciary Net Position using a July 1, 2018 Valuation Date
For the Period Ending I. Beginning Fiduciary II. Portion of Employer III. Total IV. V. Total VI. Contributions to VII. VIII. Ending Fiduciary
on the Measurement Net Position for Contributions for Current Benefit Administrative Contributions to Trust for Current Investment Net Position for
Date Current Plan Members Plan Members Payments Expense Trust Plan Members Earnings Current Plan Members
June 30, 2019 4,155,794 3,723,578 3,723,578 0 800,000 800,000 263,700 5,219,494
June 30, 2020 5,219,494 3,875,429 3,875,429 0 1,000,000 934,974 376,443 6,530,911
June 30, 2021 6,530,911 4,119,198 4,119,198 0 1,000,000 885,887 491,125 7,907,923
June 30, 2022 7,907,923 4,456,435 4,456,435 0 1,000,000 844,404 586,767 9,339,094
June 30, 2023 9,339,094 4,698,295 4,698,295 0 1,000,000 806,941 686,366 10,832,401
June 30, 2024 10,832,401 4,837,460 4,837,460 0 1,000,000 772,573 790,454 12,395,428
June 30, 2025 12,395,428 5,105,321 5,105,321 0 1,000,000 740,828 899,547 14,035,803
June 30, 2026 14,035,803 5,362,221 5,362,221 0 1,000,000 710,128 1,014,130 15,760,061
June 30, 2027 15,760,061 5,552,777 5,552,777 0 1,000,000 678,598 1,134,598 17,573,257
June 30, 2028 17,573,257 5,816,727 5,816,727 0 1,000,000 644,794 1,261,257 19,479,308
June 30, 2029 19,479,308 6,090,862 6,090,862 0 1,000,000 611,949 1,394,495 21,485,752
June 30, 2030 21,485,752 6,318,330 6,352,627 0 1,000,000 580,354 1,534,855 23,566,664
June 30, 2031 23,566,664 6,673,598 6,767,156 0 1,000,000 548,936 1,680,470 25,702,512
June 30, 2032 25,702,512 6,967,136 7,145,548 0 1,000,000 516,261 1,829,915 27,870,276
June 30, 2033 27,870,276 7,113,126 7,405,843 0 1,000,000 483,422 1,981,605 30,042,586
June 30, 2034 30,042,586 7,356,768 7,788,949 0 1,000,000 452,785 2,133,691 32,196,881
June 30, 2035 32,196,881 7,560,669 8,096,407 0 1,000,000 422,591 2,284,523 34,368,257
June 30, 2036 34,368,257 7,518,018 8,172,973 0 1,000,000 395,062 2,436,651 36,545,015
June 30, 2037 36,545,015 7,620,239 8,410,055 0 1,000,000 367,325 2,589,151 38,711,675
June 30, 2038 38,711,675 7,657,282 8,556,511 0 1,000,000 339,881 2,740,950 40,893,277
June 30, 2039 40,893,277 7,618,165 8,640,202 0 1,000,000 314,207 2,893,863 43,079,310
June 30, 2040 43,079,310 7,610,116 8,803,438 0 1,000,000 289,178 3,047,111 45,222,277
June 30, 2041 45,222,277 7,573,379 8,999,894 0 1,000,000 263,393 3,197,297 47,256,452
June 30, 2042 47,256,452 7,578,181 9,293,438 0 1,000,000 241,577 3,339,950 49,122,722
June 30, 2043 49,122,722 7,470,033 9,538,843 0 1,000,000 221,546 3,470,828 50,746,286
June 30, 2044 50,746,286 7,412,909 9,891,599 0 1,000,000 199,769 3,584,535 52,051,900
June 30, 2045 52,051,900 7,455,026 10,281,096 0 1,000,000 181,421 3,675,945 53,083,196
June 30, 2046 53,083,196 7,329,062 10,540,202 0 1,000,000 162,213 3,747,986 53,782,255
June 30, 2047 53,782,255 7,324,632 10,955,572 0 1,000,000 144,092 3,796,642 54,092,049
June 30, 2048 54,092,049 7,343,130 11,346,859 0 1,000,000 126,918 3,817,887 54,033,125
June 30, 2049 54,033,125 7,188,921 11,595,243 0 1,000,000 110,267 3,813,156 53,550,226
June 30, 2050 53,550,226 7,063,412 11,925,127 0 1,000,000 96,050 3,778,619 52,563,180
June 30, 2051 52,563,180 6,921,904 12,283,747 0 1,000,000 82,156 3,708,551 50,992,044
June 30, 2052 50,992,044 6,741,721 12,647,246 0 1,000,000 70,857 3,597,394 48,754,770
June 30, 2053 48,754,770 6,642,038 13,141,243 0 1,000,000 59,485 3,439,272 45,754,322
June 30, 2054 45,754,322 6,474,348 13,614,417 0 1,000,000 49,347 3,227,390 41,890,990
June 30, 2055 41,890,990 6,347,462 14,131,527 0 1,000,000 39,799 2,954,694 37,101,418
June 30, 2056 37,101,418 6,208,524 14,675,664 0 1,000,000 32,744 2,616,785 31,283,807
June 30, 2057 31,283,807 6,093,556 15,283,683 0 1,000,000 25,343 2,206,387 24,325,410
June 30, 2058 24,325,410 5,934,824 15,867,304 0 1,000,000 19,611 1,715,621 16,128,162
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 23Source page 32
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
FIDUCIARY POSITION PROJECTION DISCLOSURES (CONTINUED)
Projection of OPEB Plan's Fiduciary Net Position using a July 1, 2018 Valuation Date
For the Period Ending I. Beginning Fiduciary II. Portion of Employer III. Total IV. V. Total VI. Contributions to VII. VIII. Ending Fiduciary
on the Measurement Net Position for Contributions for Current Benefit Administrative Contributions to Trust for Current Investment Net Position for
Date Current Plan Members Plan Members Payments Expense Trust Plan Members Earnings Current Plan Members
June 30, 2059 16,128,162 5,724,597 16,437,244 0 1,000,000 14,596 1,137,541 6,567,652
June 30, 2060 6,567,652 5,553,737 17,097,012 0 1,000,000 10,608 463,387 473,995
June 30, 2061 473,995 5,411,344 17,830,787 0 1,000,000 7,085 33,662 40,747
June 30, 2062 40,747 5,204,985 18,553,855 0 1,000,000 4,940 3,044 7,984
June 30, 2063 7,984 5,002,495 19,336,988 0 1,000,000 2,845 661 3,506
June 30, 2064 3,506 4,848,441 20,221,452 0 1,000,000 1,727 307 2,034
June 30, 2065 2,034 4,665,650 21,114,062 0 1,000,000 727 169 896
June 30, 2066 896 4,479,788 22,056,066 0 1,000,000 338 75 413
June 30, 2067 413 4,303,332 23,058,263 0 1,000,000 24 30 54
June 30, 2068 54 4,121,153 24,097,333 0 1,000,000 0 4 4
June 30, 2069 4 3,935,031 25,184,008 0 1,000,000 0 0 0
June 30, 2070 0 3,746,630 26,319,625 0 1,000,000 0 0 0
June 30, 2071 0 3,556,539 27,510,343 0 1,000,000 0 0 0
June 30, 2072 0 3,365,986 28,758,270 0 1,000,000 0 0 0
June 30, 2073 0 3,175,549 30,065,398 0 1,000,000 0 0 0
June 30, 2074 0 2,985,931 31,436,856 0 1,000,000 0 0 0
June 30, 2075 0 2,797,975 32,875,920 0 1,000,000 0 0 0
June 30, 2076 0 2,612,045 34,383,445 0 1,000,000 0 0 0
June 30, 2077 0 2,429,304 35,959,552 0 1,000,000 0 0 0
June 30, 2078 0 2,249,823 37,614,289 0 1,000,000 0 0 0
June 30, 2079 0 2,074,311 39,344,120 0 1,000,000 0 0 0
June 30, 2080 0 1,903,348 41,152,006 0 1,000,000 0 0 0
June 30, 2081 0 1,737,069 43,047,427 0 1,000,000 0 0 0
June 30, 2082 0 1,576,377 45,034,883 0 1,000,000 0 0 0
June 30, 2083 0 1,422,014 47,118,321 0 1,000,000 0 0 0
June 30, 2084 0 1,274,608 49,305,250 0 1,000,000 0 0 0
June 30, 2085 0 1,134,734 51,602,776 0 1,000,000 0 0 0
June 30, 2086 0 1,003,123 54,012,027 0 1,000,000 0 0 0
June 30, 2087 0 880,031 56,540,056 0 1,000,000 0 0 0
June 30, 2088 0 766,196 59,196,330 0 1,000,000 0 0 0
June 30, 2089 0 661,455 61,981,202 0 1,000,000 0 0 0
June 30, 2090 0 566,129 64,902,480 0 1,000,000 0 0 0
June 30, 2091 0 479,675 67,968,089 0 1,000,000 0 0 0
June 30, 2092 0 402,456 71,184,580 0 1,000,000 0 0 0
June 30, 2093 0 334,035 74,557,835 0 1,000,000 0 0 0
June 30, 2094 0 274,320 78,096,455 0 1,000,000 0 0 0
June 30, 2095 0 222,615 81,806,829 0 1,000,000 0 0 0
June 30, 2096 0 178,726 85,695,476 0 1,000,000 0 0 0
June 30, 2097 0 142,181 89,770,544 0 1,000,000 0 0 0
June 30, 2098 0 111,938 94,039,393 0 1,000,000 0 0 0
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 24Source page 33
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
BENEFIT PAYMENT PROJECTION DISCLOSURES
Actuarial Present Values of Projected Benefit Payments using a July 1, 2018 Valuation Date
VII. Present Value of
For the Period Ending I. Beginning Fiduciary III. Funded IV. Unfunded V. Present Value of VI. Present Value of Benefit Payments using
on the Measurement Net Position for Current II. Benefit Portion of Benefit Portion of Benefit Funded Benefit Unfunded Benefit Single Equivalent Discount
Date Plan Members Payments Payments Payments Payments Payments Rate
June 30, 2019 4,155,794 3,723,578 3,723,578 0 3,723,578 0 3,723,578
June 30, 2020 5,219,494 3,875,429 3,875,429 0 3,620,205 0 3,664,796
June 30, 2021 6,530,911 4,119,198 4,119,198 0 3,594,507 0 3,683,602
June 30, 2022 7,907,923 4,456,435 4,456,435 0 3,632,684 0 3,768,579
June 30, 2023 9,339,094 4,698,295 4,698,295 0 3,577,615 0 3,757,166
June 30, 2024 10,832,401 4,837,460 4,837,460 0 3,440,995 0 3,658,201
June 30, 2025 12,395,428 5,105,321 5,105,321 0 3,392,369 0 3,650,928
June 30, 2026 14,035,803 5,362,221 5,362,221 0 3,328,419 0 3,626,226
June 30, 2027 15,760,061 5,552,777 5,552,777 0 3,219,711 0 3,550,998
June 30, 2028 17,573,257 5,816,727 5,816,727 0 3,150,639 0 3,517,620
June 30, 2029 19,479,308 6,090,862 6,090,862 0 3,081,854 0 3,483,205
June 30, 2030 21,485,752 6,318,330 6,318,330 0 2,986,406 0 3,416,903
June 30, 2031 23,566,664 6,673,598 6,673,598 0 2,946,592 0 3,412,875
June 30, 2032 25,702,512 6,967,136 6,967,136 0 2,873,608 0 3,369,338
June 30, 2033 27,870,276 7,113,126 7,113,126 0 2,740,609 0 3,252,976
June 30, 2034 30,042,586 7,356,768 7,356,768 0 2,647,811 0 3,181,541
June 30, 2035 32,196,881 7,560,669 7,560,669 0 2,541,988 0 3,092,008
June 30, 2036 34,368,257 7,518,018 7,518,018 0 2,361,185 0 2,907,460
June 30, 2037 36,545,015 7,620,239 7,620,239 0 2,235,674 0 2,786,821
June 30, 2038 38,711,675 7,657,282 7,657,282 0 2,098,591 0 2,648,166
June 30, 2039 40,893,277 7,618,165 7,618,165 0 1,950,370 0 2,491,443
June 30, 2040 43,079,310 7,610,116 7,610,116 0 1,819,999 0 2,353,541
June 30, 2041 45,222,277 7,573,379 7,573,379 0 1,691,932 0 2,214,880
June 30, 2042 47,256,452 7,578,181 7,578,181 0 1,581,508 0 2,095,828
June 30, 2043 49,122,722 7,470,033 7,470,033 0 1,456,272 0 1,953,634
June 30, 2044 50,746,286 7,412,909 7,412,909 0 1,349,963 0 1,833,324
June 30, 2045 52,051,900 7,455,026 7,455,026 0 1,268,223 0 1,743,532
June 30, 2046 53,083,196 7,329,062 7,329,062 0 1,164,684 0 1,620,911
June 30, 2047 53,782,255 7,324,632 7,324,632 0 1,087,324 0 1,531,886
June 30, 2048 54,092,049 7,343,130 7,343,130 0 1,018,281 0 1,452,285
June 30, 2049 54,033,125 7,188,921 7,188,921 0 931,244 0 1,344,511
June 30, 2050 53,550,226 7,063,412 7,063,412 0 854,728 0 1,249,238
June 30, 2051 52,563,180 6,921,904 6,921,904 0 782,442 0 1,157,674
June 30, 2052 50,992,044 6,741,721 6,741,721 0 711,886 0 1,066,256
June 30, 2053 48,754,770 6,642,038 6,642,038 0 655,171 0 993,396
June 30, 2054 45,754,322 6,474,348 6,474,348 0 596,572 0 915,687
June 30, 2055 41,890,990 6,347,462 6,347,462 0 546,361 0 848,948
June 30, 2056 37,101,418 6,208,524 6,208,524 0 499,208 0 785,234
June 30, 2057 31,283,807 6,093,556 6,093,556 0 457,696 0 728,806
June 30, 2058 24,325,410 5,934,824 5,934,824 0 416,416 0 671,242
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 25Source page 34
APPENDIX I – LIABILITIES, ASSETS, & CASH FLOWS
BENEFIT PAYMENT PROJECTION DISCLOSURES (CONTINUED)
Actuarial Present Values of Projected Benefit Payments using a July 1, 2018 Valuation Date
VII. Present Value of
For the Period Ending I. Beginning Fiduciary III. Funded IV. Unfunded V. Present Value of VI. Present Value of Benefit Payments using
on the Measurement Net Position for Current II. Benefit Portion of Benefit Portion of Benefit Funded Benefit Unfunded Benefit Single Equivalent Discount
Date Plan Members Payments Payments Payments Payments Payments Rate
June 30, 2059 16,128,162 5,724,597 5,724,597 0 375,213 0 612,274
June 30, 2060 6,567,652 5,553,737 5,553,737 0 340,041 0 561,715
June 30, 2061 473,995 5,411,344 473,995 4,937,349 27,110 1,552,005 517,567
June 30, 2062 40,747 5,204,985 40,747 5,164,238 2,177 1,579,207 470,772
June 30, 2063 7,984 5,002,495 7,984 4,994,511 398 1,485,795 427,866
June 30, 2064 3,506 4,848,441 3,506 4,844,935 163 1,402,127 392,151
June 30, 2065 2,034 4,665,650 2,034 4,663,616 89 1,312,972 356,856
June 30, 2066 896 4,479,788 896 4,478,892 36 1,226,695 324,018
June 30, 2067 413 4,303,332 413 4,302,919 16 1,146,469 294,338
June 30, 2068 54 4,121,153 54 4,121,099 2 1,068,183 266,557
June 30, 2069 4 3,935,031 4 3,935,027 0 992,233 240,685
June 30, 2070 0 3,746,630 0 3,746,630 0 919,052 216,707
June 30, 2071 0 3,556,539 0 3,556,539 0 848,712 194,531
June 30, 2072 0 3,365,986 0 3,365,986 0 781,409 174,102
June 30, 2073 0 3,175,549 0 3,175,549 0 717,163 155,325
June 30, 2074 0 2,985,931 0 2,985,931 0 656,013 138,112
June 30, 2075 0 2,797,975 0 2,797,975 0 598,012 122,384
June 30, 2076 0 2,612,045 0 2,612,045 0 543,100 108,042
June 30, 2077 0 2,429,304 0 2,429,304 0 491,376 95,022
June 30, 2078 0 2,249,823 0 2,249,823 0 442,705 83,219
June 30, 2079 0 2,074,311 0 2,074,311 0 397,075 72,556
June 30, 2080 0 1,903,348 0 1,903,348 0 354,446 62,958
June 30, 2081 0 1,737,069 0 1,737,069 0 314,690 54,335
June 30, 2082 0 1,576,377 0 1,576,377 0 277,817 46,629
June 30, 2083 0 1,422,014 0 1,422,014 0 243,801 39,776
June 30, 2084 0 1,274,608 0 1,274,608 0 212,590 33,715
June 30, 2085 0 1,134,734 0 1,134,734 0 184,117 28,384
June 30, 2086 0 1,003,123 0 1,003,123 0 158,338 23,728
June 30, 2087 0 880,031 0 880,031 0 135,134 19,685
June 30, 2088 0 766,196 0 766,196 0 114,456 16,207
June 30, 2089 0 661,455 0 661,455 0 96,124 13,231
June 30, 2090 0 566,129 0 566,129 0 80,035 10,709
June 30, 2091 0 479,675 0 479,675 0 65,970 8,580
June 30, 2092 0 402,456 0 402,456 0 53,846 6,808
June 30, 2093 0 334,035 0 334,035 0 43,477 5,343
June 30, 2094 0 274,320 0 274,320 0 34,734 4,150
June 30, 2095 0 222,615 0 222,615 0 27,421 3,184
June 30, 2096 0 178,726 0 178,726 0 21,417 2,418
June 30, 2097 0 142,181 0 142,181 0 16,574 1,819
June 30, 2098 0 111,938 0 111,938 0 12,694 1,354
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 26Source page 35
APPENDIX II – PLAN PROVISIONS
Effective Date GASB 45 was adopted January 1, 2009
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.
Excise Tax Under the Patient Protection and Affordable Care Act (“PPACA”), a 40% tax will be
imposed on the cost of medical benefits in excess of a specified threshold.
Medicare Part B The Town does not reimburse Medicare Part B.
The Town does not reimburse Medicare Part B Penalties.
Surviving Spouse Coverage Spousal benefits do not change after the death of a plan participant.
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 27Source page 36
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 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
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 28Source page 37
APPENDIX III – ACTUARIAL METHODS & ASSUMPTIONS
Pre-Retirement Mortality RP-2000 Employees Mortality Table projected generationally with scale BB and a base
year 2009 for males and females
Post-Retirement Mortality RP-2000 Healthy Annuitant Mortality Table projected generationally with scale BB and
a base year 2009 for males and females
Disabled Mortality RP-2000 Healthy Annuitant Mortality Table projected generationally with Scale BB and
a base year 2012 for males and females
Mortality 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 5.75% per annum (previously 5.25%)
Net Long Term Rate of Return 7.05% (based on investment policy)
Municipal Bond Rate 2.79% as of June 30, 2019 (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, 2019
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 29Source page 38
APPENDIX III – ACTUARIAL METHODS & ASSUMPTIONS
Excise Tax The PPACA Excise tax is expected to take effect for tax years beginning after December
31, 2021. The projected 2022 threshold amounts are $12,511 for single coverage and
$32,676 for family coverage. For qualified retirees and those engaged in high risk
professions, a "kicker" amount of $1,650 for single coverage and $3,450 for family
coverage is expected to be added to the above thresholds.
Employee Termination It was assumed that employees would terminate employment in accordance with the
sample rates shown in the following table:
Non-Public Safety Employees
0-4 Years of 0-4 Years of 5-9 Years of 5-9 Years of 10+ Years of 10+ Years of
Service Service Service Service Service Service
Age (Males) (Females) (Males) (Females) (Males) (Females)
20 27.00% 27.00% 12.00% 12.00% 6.00% 6.00%
30 23.00% 23.00% 10.00% 10.00% 5.50% 5.50%
40 16.00% 16.00% 8.00% 8.00% 3.50% 3.50%
50 18.00% 18.00% 6.00% 6.00% 3.00% 3.00%
60 18.00% 18.00% 5.00% 5.00% 3.50% 3.50%
Public Safety Employees
Public Public
Safety Safety
Service Male Female
0 9.00% 9.00%
5 6.00% 6.00%
10 3.50% 3.50%
15 2.00% 2.00%
20 1.50% 1.50%
25 1.50% 1.50%
30 1.50% 1.50%
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 30Source page 39
APPENDIX III – ACTUARIAL METHODS & ASSUMPTIONS
Retirement Rates for Eligible Employees
Standard Standard Male Female Public
Age Male Female Teachers Teachers Safety
45 - 49 0.00% 0.00% 0.00% 0.00% 1.00%
50 - 51 1.00% 1.50% 2.00% 1.50% 2.00%
52 1.00% 2.50% 2.00% 1.50% 2.00%
53 1.00% 2.50% 2.00% 1.50% 5.00%
54 2.00% 2.50% 2.00% 2.00% 7.50%
55 2.00% 5.50% 6.00% 5.00% 15.00%
56 2.50% 6.50% 20.00% 15.00% 10.00%
57 2.50% 6.50% 40.00% 35.00% 10.00%
58 5.00% 6.50% 50.00% 35.00% 10.00%
59 6.50% 6.50% 50.00% 35.00% 15.00%
60 12.00% 5.00% 40.00% 35.00% 20.00%
61 20.00% 13.00% 40.00% 35.00% 20.00%
62 30.00% 15.00% 35.00% 35.00% 25.00%
63 25.00% 12.50% 35.00% 35.00% 25.00%
64 22.00% 18.00% 35.00% 35.00% 30.00%
65 40.00% 15.00% 35.00% 35.00% 100.00%
66 25.00% 20.00% 40.00% 35.00% 100.00%
67 25.00% 20.00% 40.00% 30.00% 100.00%
68 30.00% 25.00% 40.00% 30.00% 100.00%
69 30.00% 20.00% 40.00% 30.00% 100.00%
70 100.00% 100.00% 100.00% 100.00% 100.00%
71 100.00% 100.00% 100.00% 100.00% 100.00%
72 100.00% 100.00% 100.00% 100.00% 100.00%
In the absence of census data specifying which employees are teachers it was assumed that two thirds of school employees are
teachers. If available, actual census data was used.
Permanent Disability Rates
Age Standard Teachers Public
20 0.01% 0.05% 0.20%
30 0.01% 0.07% 0.21%
40 0.07% 0.21% 0.71%
50 0.13% 0.42% 1.10%
60 0.12% 0.50% 0.80%
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 31Source page 40
APPENDIX III – ACTUARIAL METHODS & ASSUMPTIONS
Trend Rate Medicare Supplement Plans: Initial Trend of 4.50% for 2019 grading down 0.00% per
year for an ultimate trend rate of 4.50%.
Non-Medicare Plans: Initial Trend of 4.50% for 2019 grading down 0.00% per year for
an ultimate trend rate of 4.50%.
Dental Plans: Initial Trend of 4.50% for 2019 grading down 0.00% per year for an
ultimate trend rate of 4.50%.
Participation Rate It was assumed that 80% of employees eligible to receive retirement benefits would
enroll in the retiree medical and dental plans upon retirement. For life insurance plans, it
was assumed that 80% of eligible employees would elect coverage upon retirement.
Spouse Participation Rate It was assumed that 80% of male employees and 70% of female employees who elect
retiree healthcare coverage for themselves would also elect coverage for a spouse upon
retirement.
Spouse Demographics It was assumed that a male spouse is three years older than a female spouse and same
sex spouses were assumed to be the same age. For current retirees, the actual census
information was used, if available.
Compensation Increases 3.00% per year.
Inflation Rate 2.75% per year.
Town of Canton Other Postemployment Benefits Plan
Valuation as of July 1, 2018 | Delivered August 16, 2019 Page 32