FY2021 Adopted Budget

FY2021 Adopted Budget Fund Budgets

Other Post Employment Benefits Trust

Other Post Employment Benefits Trust The County's Other Post-Employment Benefit (OPEB) cost (expense) is calculated based on the actuarial determined contribution (ADC), in accordance with the parameters of GASB. The ADC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, investment earnings and the healthcare cost trends. Amounts determined regarding the funded status of the plan and the ADC of the employer are subject to bi-annual revision as actual results are compared with past expectations and new estimates are made about the future. Presented for informational purposes only and is not adopted by the County Council.

Budget Highlights The following budget adjustments are reflected in FY21:

The Actuarially Determined Contribution (ADC) is fully funded in the FY21 budget. When determining the ADC, there was one assumption change updating the mortality tables and no changes in methodology. Besides reflecting this change, the ADC decreased significantly for FY21 due to favorable claims and removing the Cadillac Tax provision that is no longer applicable. In turn, this decreases the benefit cost in other funds/divisions that have eligible personnel.

Funded Ratio

FY2018 Actual FY2021 Projection 62.3% 65.0% 88.5% N/A FY2019 Actual FY2020 Projection

Note: The funded ratio is affected by different factors and can fluctuate from one year to the next even with funding ADC at 100% and with no substantive changes to the plan.

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