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OPEB GASB 45- July, 2011_201401221339284479
Barnstable County Actuarial Valuation and Review of Other Postemployment Benefits (OPEB) as of June 30, 2010 In Accordance with GASB Statements Number 43 and 45 Copyright © 2011 THE SEGAL GROUP, INC., THE PARENT OF THE SEGAL COMPANY ALL RIGHTS RESERVED THE SEGAL COMPANY 116 Huntington Ave., 8th Floor Boston, MA 02116 T 617.424.7300 F 617.424.7390 www.segalco.com October 6, 2011 Mr. E. Mark Zielinski County Administrator and Director of Finance/Treasurer Barnstable County Superior Court House 3195 Main Street P.O. Box 427 Barnstable, MA 02630 Dear Mark: We are pleased to submit our third actuarial valuation report of postemployment welfare benefits for certain towns and districts in Barnstable County as of June 30, 2010 under GASB Statements Number 43 and 45. It establishes the liabilities of the postemployment welfare benefit plan in accordance with GASB Statements Number 43 and 45 for the fiscal years beginning July 1, 2011 and July 1, 2012 and summarizes the actuarial data. This report is based on information received from the employers and their vendors. The actuarial projections were based on the assumptions and methods described in Exhibit I and on the plan of benefits as summarized in Exhibit II. We look forward to discussing this material with you at your convenience. Sincerely, THE SEGAL COMPANY By: ____________________________ Kathleen A. Riley, FSA, MAAA Senior Vice President and Actuary 7487834v2/04446.015 INTRODUCTION VALUATION RESULTS SUPPORTING INFORMATION SUPPLEMENTAL INFORMATION BY DEPARTMENT Purpose.........................................2 Highlights of the Valuation ..........2 Accounting Requirements ............4 Definitions of Terms.....................7 Actuarial Certification..................9 Individual Employer Results Summary of Valuation Results.1 Funding Schedule.....................2 Projection of the Annual Required Contribution..............3 Required Supplementary Information...............................4 á Chart 1 - Schedule of Employer Contributions á Chart 2 - Schedule of Funding Progress á Chart 3 - Net OPEB Obligation (NOO) á Chart 4 - Required Supplementary Information Summary of Participant Data....6 EXHIBIT I Actuarial Assumptions and Actuarial Cost Method............16 EXHIBIT II Summary of Plan (for employers participating in Cape Cod Municipal Health Group)........35 EXHIBIT III Summary of Plan (for Town of Bourne)...................................47 EXHIBIT IV Summary of Plan (for Town of Nantucket) ..............................51 Department Results.....................54 SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 1: Introduction for Barnstable County June 30, 2010 Measurement under GAS 2 This report presents the results of our actuarial valuation of the postemployment welfare benefit program for certain towns, school districts and other member units in Barnstable County as of June 30, 2010. The results are in accordance with the Governmental Accounting Standards, which prescribe an accrual methodology for accumulating the value of postemployment welfare benefits over participants’ active working lifetimes. The accounting standard supplements cash accounting, under which the expense for postemployment benefits is equal to benefit and administrative costs paid on behalf of retirees and their dependents (i.e., a pay-as-you-go basis). The GASB statements provide the method for selecting the investment return assumption (discount rate). If the benefits are funded, the discount rate should be based on the estimated long-term investment yield on the investments expected to be used to finance the payment of benefits. If financing is on a pay-as-you-go basis, the discount rate should be based on the expected yield on the assets of the employer. For units that are not funding these benefits, we have used a 5.00% discount rate (referred to as the pay-as-you-go interest rate). For illustrative purposes, we have also shown what the obligations would be on a fully funded basis, assuming an interest rate of 8.25%. The Towns of Barnstable and Wellfleet have set up qualified trusts. As of June 30, 2010, the amount in the trust for Wellfleet was $50,196. Because Wellfleet has not adopted a long-term funding policy, we have used the pay-as-you-go discount rate of 5% to determine the obligations. The Town of Barnstable has and has adopted a long-term funding policy and made a contribution of $710,448 in fiscal 2011. For the Town of Barnstable we are assuming a partially funded discount rate of 5.25%. While a few other Towns have also set up qualified trusts, they have not adopted a funding policy or made any contributions that would allow for a partially funded discount rate. The GASB statements allow the use of one of six funding methods to determine the actuarial liabilities. We have used the same cost method as used in the prior valuation. To determine the amortization payment on the unfunded actuarial accrued liability (UAAL), an amortization period and amortization method must be selected. We have used a 30-year open amortization of the UAAL (the maximum permitted by the GASB statements), with payments increasing at 4.5% year. The GASB statements allow for either an open or closed amortization period. In open amortization, the period is reset to the initial value every year and the UAAL is reamortized, while under a closed amortization, the remaining period decreases and the UAAL is eventually “paid off.” To be considered a funded plan, the “contribution in relation to the ARC” must equal the ARC. For example, if the ARC is $345,000, and the employer pays benefits to retirees of $95,000, then an additional contribution of the difference, or approximately $250,000 will need to be added to an OPEB trust fund during the fiscal year ending June 30, 2011. Page 2 of each unit’s individual results shows a funding schedule using the 8.25% funding assumption and a 30-year closed amortization. This is an illustration of how each unit’s assets and liabilities would increase if the unit were to fund the “additional funding” amount shown on the schedule. PURPOSE PURPOSE HIGHLIGHTS OF THE VALUATION SECTION 1: Introduction for Barnstable County June 30, 2010 Measurement under GAS 3 Page 3 is a similar illustration of how the pay-as-you-go liabilities and the ARC will change over time. If the benefits are funded in the future, assets set aside to fund OPEB liabilities would have to be held in a trust or equivalent arrangement, through which assets are accumulated and benefits are paid as they come due. Employer contributions to the trust will be irrevocable, trust assets will be dedicated to providing benefits to retirees and their spouses in accordance with the terms of the plan, and trust assets will be legally protected from creditors of the employer. GASB guidelines prohibit the offset of OPEB obligations by the future value of Medicare Part D subsidies. Therefore, these calculations do not include an estimate for retiree prescription drug plan federal subsides that the Employer may be eligible to receive for plan years beginning in 2006. Employer decisions regarding plan design, cost sharing between the Employer and its retirees, actuarial cost method, amortization techniques, and integration with Medicare are just some of the decisions that affect the magnitude of OPEB obligations. We are available to assist you with any investigation of such options you may wish to undertake. The Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act (HCERA) of 2010 creates a temporary reinsurance program for eligible health care coverage for pre-Medicare retirees over age 55. The program will reimburse the plan sponsor for 80% of the retiree claims between $15,000 and $90,000. Due to the short nature of this program, the limited financing, and uncertainty of qualifying and receiving payment (the program will be on a first come first served basis until financing runs out), we have not reflected the value of this program in the valuation. Additional provisions of these Acts that may affect retiree health benefits in the future have not been reflected. Pages 4 and 5 of each unit’s individual results include the Required Supplemental Information for each unit’s financial statements. Please note that the historical information shown is from each unit’s financial statements, if available, or from a prior valuation report, if the financial statements were not provided. SECTION 1: Introduction for Barnstable County June 30, 2010 Measurement under GAS 4 Hypothetical Cost Curve$0$50$100$150$200$250$300$350$400$450$50040434649525558616467707376798285AgeCostProjected CostBlended CostThe Governmental Accounting Standards Board (GASB) issued Statement Number 43 -- Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and Statement Number 45 – Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. Under these statements, all state and local governmental entities that provide other post employment benefits (OPEB) are required to report the cost of these benefits on their financial statements. The statements cover postemployment benefits of health, prescription drug, dental, vision and life insurance coverage for retirees; long-term care coverage, life insurance and death benefits that are not offered as part of a pension plan; and long-term disability insurance for employees. These benefits, referred to as OPEB, are typically financed on a pay-as-you-go basis. The new standard introduces an accrual-basis accounting requirement; thereby recognizing the employer cost of postemployment benefits over an employee’s career. The standards also introduce a consistent accounting requirement for both pension and non-pension benefits. The total cost of providing postemployment benefits is projected, taking into account assumptions about demographics, turnover, mortality, disability, retirement, health care trends, and other actuarial assumptions. This amount is then discounted to determine the actuarial present value of the total projected benefits (APB). The actuarial accrued liability (AAL) is the portion of the present value of the total projected benefits allocated to years of employment prior to the measurement date. The unfunded actuarial accrued liability (UAAL) is the difference between the AAL and actuarial value of assets in the Plan. Once the UAAL is determined, the Annual Required Contribution (ARC) is determined as the normal cost (the APB allocated to the current year of service) and the amortization of the UAAL. This ARC is compared to actual contributions made and any difference is reported as the net OPEB obligation (NOO). In addition, required supplementary information (RSI) must be reported, including historical information about the UAAL and the progress in funding the Plan. The benefits valued in this report are limited to those described in Exhibits II, III and IV of Section 3. The following graph illustrates why a significant accounting obligation may exist even though the retiree contributes most or all of the blended premium cost of the plan. The average cost for retirees is likely to exceed the average cost for the whole group, leading to an implicit subsidy for these retirees. The accounting standard requires the employer to identify and account for this implicit subsidy as well as any explicit subsidies the employer may provide. ACCOUNTING REQUIREMENTS SECTION 1: Introduction for Barnstable County June 30, 2010 Measurement under GASB 5 GASB 43/45 MeasurementPresent Valueof Future BenefitsNormal Cost+30 Years Amortizationof Unfunded Actuarial Accrued LiabilityAnnual Required Contribution (ARC)Future Accounting Periods Net OPEB Obligation = ARC1 + ARC2 + ARC3 + …… - Contribution1 - Contribution2 - Contribution3 - …... This graph shows how the actuarial present value of the total projected benefits (APB) is broken down and allocated to various accounting periods. The exact breakdown depends on the actuarial cost method and amortization methods selected by the employer.Current PeriodHistorical Accounting Periods Normal Cost (Actives)Future Accruals (Actives)Actuarial Accrued Liability (Actives + Retirees) SECTION 1: Introduction for Barnstable County June 30, 2010 Measurement under GASB 6 Actuarial computations under GASB statements are for purposes of fulfilling certain welfare plan accounting requirements. The calculations shown in this report have been made on a basis consistent with our understanding of GASB. Determinations for purposes other than meeting the financial accounting requirements of GASB may differ significantly from the results reported here. Calculations are based on the benefits provided under the terms of the substantive plan in effect at the time of the valuation and on the pattern of sharing costs between the employer and plan members. The projection of benefits does not incorporate the potential effect of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective, and the methods and assumptions use techniques designed to reduce short term volatility in accrued liabilities and the actuarial value of assets, if any. The calculation of an accounting obligation does not, in and of itself, imply that there is any legal liability to provide the benefits valued, nor is there any implication that the Employer is required to implement a funding policy to satisfy the projected expense. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and the actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. SECTION 1: Introduction for Barnstable County June 30, 2010 Measurement under GASB 7 The following list defines certain technical terms for the convenience of the reader: Assumptions or Actuarial Assumptions: The estimates on which the cost of the Plan is calculated including: (a) Investment return — the rate of investment yield that the Plan will earn over the long-term future; (b) Mortality rates — the death rates of employees and pensioners; life expectancy is based on these rates; (c) Retirement rates — the rate or probability of retirement at a given age; (d) Turnover rates — the rates at which employees of various ages are expected to leave employment for reasons other than death, disability, or retirement. Actuarial Present Value of Total Projected Benefits (APB): Present value of all future benefit payments for current retirees and active employees taking into account assumptions about demographics, turnover, mortality, disability, retirement, health care trends, and other actuarial assumptions. Normal Cost: The amount of contributions required to fund the benefit allocated to the current year of service. Actuarial Accrued Liability For Actives: The equivalent of the accumulated normal costs allocated to the years before the valuation date. Actuarial Accrued Liability For Retirees: The single sum value of lifetime benefits to existing retirees. This sum takes account of life expectancies appropriate to the ages of the retirees and of the interest which the sum is expected to earn before it is entirely paid out in benefits. Actuarial Value of Assets (AVA): The value of assets used by the actuary in the valuation. These may be at market value or some other method used to smooth variations in market value from one valuation to the next. Funded Ratio: The ratio AVA/AAL. DEFINITIONS OF TERMS SECTION 1: Introduction for Barnstable County June 30, 2010 Measurement under GASB 8 Unfunded Actuarial Accrued Liability (UAAL): The extent to which the actuarial accrued liability of the Plan exceeds the assets of the Plan. There is a wide range of approaches to paying off the unfunded actuarial accrued liability, from meeting the interest accrual only to amortizing it over a specific period of time. Amortization of the Unfunded Actuarial Accrued Liability: Payments made over a period of years equal in value to the Plan’s unfunded actuarial accrued liability. Investment Return (discount rate): The rate of earnings of the Plan from its investments, including interest, dividends and capital gain and loss adjustments, computed as a percentage of the average value of the fund. For actuarial purposes, the investment return often reflects a smoothing of the capital gains and losses to avoid significant swings in the value of assets from one year to the next. If the plan is funded on a pay-as-you-go basis, the discount rate is tied to the expected rate of return on day-to-day employer funds. Covered Payroll: Annual reported salaries for all active participants on the valuation date. ARC as a Percentage of Covered Payroll: The ratio of the annual required contribution to covered payroll. Health Care Cost Trend Rates: The annual rate of increase in net claims costs per individual benefiting from the Plan. Annual Required Contribution (ARC): The ARC is equal to the sum of the normal cost and the amortization of the unfunded actuarial accrued liability. Net OPEB Obligation (NOO): The NOO is the cumulative difference between the ARC and actual contributions made. If the plan is not funded, the actual contribution would be equal to the annual benefit payments less retiree contributions. There are additional adjustments in the NOO calculations to adjust for timing differences between cash and accrual accounting, and to prevent double counting of OPEB plan costs. SECTION 2: Valuation Results for the Barnstable County June 30, 2010 Measurement under GASB 9 October 6, 2011 This is to certify that The Segal Company has conducted an actuarial valuation of certain benefit obligations of the other postemployment benefit programs for certain towns, school districts and other member units in Barnstable County as of June 30, 2010, in accordance with generally accepted actuarial principles and practices. The actuarial calculations presented in this report have been made on a basis consistent with our understanding of GASB Statements Number 43 and 45 for the determination of the liability for postemployment benefits other than pensions. The actuarial valuation is based on the plan of benefits verified by the employers and on participant, claims, premium and expense data provided by the employers or from vendors employed by the employers. The actuarial computations made are for purposes of fulfilling plan accounting requirements. Determinations for purposes other than meeting financial accounting requirements may be significantly different from the results reported here. Accordingly, additional determinations may be needed for other purposes, such as judging benefit security at termination or adequacy of funding an ongoing plan. To the best of our knowledge, this report is complete and accurate and in our opinion presents the information necessary to comply with GASB Statements Number 43 and 45 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 collectively meet their “General Qualification Standards for Statements of Actuarial Opinion” to render the actuarial opinion contained herein. Kathleen A. Riley, FSA, MAAA Senior Vice President and Actuary Howard Atkinson, Jr., ASA, MAAA, FCA Vice President and Health Actuary ACTUARIAL CERTIFICATION SECTION 2: Valuation Results for the June 30, 2010 Measurement under GASB Town of Nantucket 1 of 6 TOWN OF NANTUCKET Funded (8.25% interest rate) Pay-as-you-go (5.00% interest rate) Actuarial Accrued Liability by Participant Category 1. Current retirees, beneficiaries and dependents $26,416,366 $36,908,491 2. Current active members 25,231,112 45,344,877 3. Total as of July 1, 2010: (1) + (2) $51,647,478 $82,253,368 4. Actuarial value of assets as of July 1, 2010 0 0 5. Unfunded actuarial accrued liability (UAAL) as of July 1, 2010: (3) - (4) $51,647,478 $82,253,368 Annual Required Contribution for Fiscal Year Ending June 30, 2011 6. Normal cost as of July 1, 2010 $1,263,624 $2,607,257 7. Adjustment for timing 51,092 64,386 8. Normal cost adjusted for timing: (6) + (7) $1,314,716 $2,671,643 9. 30-year amortization of the unfunded actuarial accrued liability (UAAL) increasing at 4.50% per year 2,741,010 2,935,759 10. Adjustment for timing 110,826 72,499 11. Amortization payment adjusted for timing: (9) + (10) $2,851,836 $3,008,258 12. Total Annual Required Contribution (ARC): (8) + (11) 4,166,552 5,679,901 13. Projected benefit payments for fiscal year ending June 30, 2011 $2,200,575 $2,200,575 Note: Adjustment for timing assumes payment in the middle of the year. SUMMARY OF VALUATION RESULTS The key results and significant assumptions for the current year are shown on a funded basis and a pay-as-you-go basis. SECTION 2: Valuation Results for the June 30, 2010 Measurement under GASB Town of Nantucket 2 of 6 TOWN OF NANTUCKET (1) (2) (5) (6) (9)Fiscal Year Projected (3) (4) Total Funding Additional (7) (8) UAAL atEnding Benefit Normal Cost Amortization Requirement: Funding: Assets at AAL at End of Year:June 30 Payments with Interest of UAAL (3) + (4) (5) - (2) End of Year End of Year (8) - (7)2011 $2,200,575 $1,314,716 $2,851,836 $4,166,552 $1,965,977 $2,045,467 $54,986,717 $52,941,2502012 2,534,070 1,380,451 2,980,169 4,360,620 1,826,550 4,114,620 58,322,859 54,208,239 2013 2,865,067 1,449,474 3,114,276 4,563,750 1,698,683 6,221,441 61,661,666 55,440,225 2014 3,130,152 1,521,948 3,254,419 4,776,367 1,646,215 8,447,486 65,075,525 56,628,039 2015 3,470,551 1,598,045 3,400,867 4,998,912 1,528,361 10,734,560 68,496,039 57,761,479 2016 3,781,432 1,677,947 3,553,907 5,231,854 1,450,422 13,129,227 71,958,428 58,829,201 2017 4,081,418 1,761,845 3,713,832 5,475,677 1,394,259 15,663,021 75,481,639 59,818,618 2018 4,312,083 1,849,937 3,880,955 5,730,892 1,418,809 18,431,396 79,147,177 60,715,781 2019 4,503,354 1,942,434 4,055,598 5,998,032 1,494,678 21,507,097 83,012,354 61,505,257 2020 4,858,230 2,039,555 4,238,100 6,277,655 1,419,425 24,758,249 86,928,232 62,169,983 2021 5,076,398 2,141,533 4,428,814 6,570,347 1,493,949 28,355,158 91,046,282 62,691,124 2022 5,330,218 2,248,610 4,628,111 6,876,721 1,546,503 32,303,490 95,351,394 63,047,904 2023 5,596,729 2,361,040 4,836,376 7,197,416 1,600,687 36,633,935 99,851,368 63,217,433 2024 5,876,565 2,479,092 5,054,013 7,533,105 1,656,540 41,379,753 104,554,264 63,174,511 2025 6,170,393 2,603,047 5,281,443 7,884,490 1,714,097 46,576,985 109,468,407 62,891,422 2026 6,478,913 2,733,199 5,519,108 8,252,307 1,773,394 52,264,683 114,602,388 62,337,705 2027 6,802,859 2,869,859 5,767,468 8,637,327 1,834,468 58,485,160 119,965,064 61,479,904 2028 7,143,002 3,013,352 6,027,004 9,040,356 1,897,354 65,284,255 125,565,559 60,281,304 2029 7,500,152 3,164,020 6,298,219 9,462,239 1,962,087 72,711,625 131,413,265 58,701,640 2030 7,875,159 3,322,221 6,581,639 9,903,860 2,028,701 80,821,061 137,517,833 56,696,772 2032 8,682,363 3,662,748 7,187,314 10,850,062 2,167,699 99,324,010 150,537,463 51,213,453 2033 9,116,481 3,845,886 7,510,744 11,356,630 2,240,149 109,848,965 157,473,104 47,624,139 2034 9,572,306 4,038,180 7,848,727 11,886,907 2,314,601 121,319,691 164,706,750 43,387,059 2035 10,050,921 4,240,089 8,201,920 12,442,009 2,391,088 133,816,332 172,249,278 38,432,946 2036 10,553,467 4,452,093 8,571,006 13,023,099 2,469,632 147,425,665 180,111,776 32,686,111 2037 11,081,140 4,674,698 8,956,701 13,631,399 2,550,259 162,241,655 188,305,526 26,063,871 2038 11,635,197 4,908,433 9,359,753 14,268,186 2,632,989 178,366,039 196,841,987 18,475,948 2039 12,216,957 5,153,855 9,780,942 14,934,797 2,717,840 195,908,966 205,732,769 9,823,803 2040 12,827,805 5,411,547 10,221,084 15,632,631 2,804,826 214,989,688 214,989,688 - Note: Adjustment for timing assumes payment in the middle of the year. FUNDING SCHEDULE 30-Years Closed (8.25% interest rate, amortization payments increasing at 4.50%) SECTION 2: Valuation Results for the June 30, 2010 Measurement under GASB Town of Nantucket 3 of 6 TOWN OF NANTUCKET (1) (2)(9)Fiscal Year Projected (3) (4) (5) (6) (7) (8) UAAL atEnding Benefit Normal Cost Amortization ARC: Additional Assets at AAL at End of Year:June 30 Payments with Interest of UAAL (3) + (4) Funding End of Year End of Year (8) - (7)2011 $2,200,575 $2,671,643 $3,008,258 $5,679,901 $0 $0 $86,848,737 $86,848,7372012 2,534,070 2,805,225 3,176,325 5,981,550 - - 91,469,025 91,469,025 2013 2,865,067 2,945,486 3,345,303 6,290,789 - - 96,124,881 96,124,881 2014 3,130,152 3,092,760 3,515,582 6,608,342 - - 100,892,810 100,892,810 2015 3,470,551 3,247,398 3,689,960 6,937,358 - - 105,708,787 105,708,787 2016 3,781,432 3,409,768 3,866,095 7,275,863 - - 110,613,385 110,613,385 2017 4,081,418 3,580,257 4,045,471 7,625,728 - - 115,630,516 115,630,516 2018 4,312,083 3,759,269 4,228,963 7,988,232 - - 120,845,577 120,845,577 2019 4,503,354 3,947,233 4,419,694 8,366,927 - - 126,318,001 126,318,001 2020 4,858,230 4,144,595 4,619,837 8,764,432 - - 131,902,642 131,902,642 2021 5,076,398 4,351,824 4,824,085 9,175,909 - - 137,755,307 137,755,307 2022 5,330,218 4,569,416 5,038,135 9,607,551 - - 143,863,482 143,863,482 2023 5,596,729 4,797,886 5,261,529 10,059,415 - - 150,238,086 150,238,086 2024 5,876,565 5,037,781 5,494,668 10,532,449 - - 156,890,492 156,890,492 2025 6,170,393 5,289,670 5,737,967 11,027,637 - - 163,832,544 163,832,544 2026 6,478,913 5,554,153 5,991,859 11,546,012 - - 171,076,574 171,076,574 2027 6,802,859 5,831,861 6,256,796 12,088,657 - - 178,635,425 178,635,425 2028 7,143,002 6,123,454 6,533,246 12,656,700 - - 186,522,471 186,522,471 2029 7,500,152 6,429,627 6,821,700 13,251,327 - - 194,751,632 194,751,632 2030 7,875,159 6,751,108 7,122,665 13,873,773 - - 203,337,404 203,337,404 2031 8,268,917 7,088,663 7,436,673 14,525,336 - - 212,294,873 212,294,873 2032 8,682,363 7,443,096 7,764,276 15,207,372 - - 221,639,746 221,639,746 2033 9,116,481 7,815,251 8,106,046 15,921,297 - - 231,388,369 231,388,369 2034 9,572,306 8,206,014 8,462,583 16,668,597 - - 241,557,755 241,557,755 2035 10,050,921 8,616,314 8,834,509 17,450,823 - - 252,165,609 252,165,609 2036 10,553,467 9,047,130 9,222,471 18,269,601 - - 263,230,354 263,230,354 2037 11,081,140 9,499,487 9,627,142 19,126,629 - - 274,771,159 274,771,159 2038 11,635,197 9,974,461 10,049,225 20,023,686 - - 286,807,969 286,807,969 2039 12,216,957 10,473,184 10,489,448 20,962,632 - - 299,361,531 299,361,531 2040 12,827,805 10,996,843 10,948,571 21,945,414 - - 312,453,431 312,453,431 Note: Adjustment for timing assumes payment in the middle of the year. PROJECTION OF THE ANNUAL REQUIRED CONTRIBUTION 30-Years Open (5% interest rate, amortization payments increasing at 4.50%) SECTION 2: Valuation Results for the June 30, 2010 Measurement under GASB Town of Nantucket 4 of 6 TOWN OF NANTUCKET Required Supplementary Information, Pay-As-You-Go Assumptions (5.00%) CHART 1 Schedule of Employer Contributions Fiscal Year Ended June 30, Annual OPEB Cost Actual Contributions Percentage Contributed 2009 $10,745,000 $2,534,000 23.6% 2010 11,184,000 2,587,000 23.1 2011 5,905,581 2,200,575 37.3 2012 6,256,976 2,534,070 40.5 CHART 2 Schedule of Funding Progress Actuarial Valuation Date Actuarial Value of Assets* (a) Actuarial Accrued Liability(AAL) (b) Unfunded AAL (UAAL) (b) – (a) Funded Ratio (a) / (b) Covered Payroll (c) UAAL as a Percentage of Covered Payroll [(b) – (a) / (c)] 6/30/2007 $0 $104,980,000 $104,980,000 0.0% N/A N/A 6/30/2009 0 127,923,000 127,923,000 0.0 N/A N/A 6/30/2010 0 82,253,368 82,253,368 0.0 N/A N/A Note: Employer should provide covered payroll amount. CHART 3 Net OPEB Obligation (NOO) Fiscal Year Ended June 30, Annual Required Contribution (a) Interest on Existing NOO (b) ARC Adjustment (c) Annual OPEB Cost (a) + (b) + (c) (d) Actual Contribution Amount (e) Net Increase in NOO (d) - (e) (f) NOO as of Following Date(g) 2009 $10,745,000 $0 $0 $10,745,000 $2,534,000 $8,211,000 $8,211,000 2010 10,647,000 537,000 0 11,184,000 2,587,000 8,597,000 16,808,000 2011 5,679,901 840,400 (614,720) 5,905,581 2,200,575 3,705,006 20,513,006 2012 5,981,550 1,025,650 (750,224) 6,256,976 2,534,070 3,722,906 24,235,912 SECTION 2: Valuation Results for the June 30, 2010 Measurement under GASB Town of Nantucket 5 of 6 TOWN OF NANTUCKET CHART 4 Required Supplementary Information Valuation date June 30, 2010 Actuarial cost method Projected Unit Credit Amortization method Amortization payments increasing at 4.5% Amortization period 30 years open Asset valuation method Market value Actuarial assumptions: Investment rate of return 5.00%, pay-as-you-go scenario Medical/drug cost trend rate 10.0% decreasing by 0.75% for 6 years and by 0.50% for 1 year to an ultimate level of 5.00% per year. Dental None Part B reimbursement and/or penalties 6% Inflation rate 4.50% Plan membership: Current retirees, beneficiaries, and dependents 213 Current active members 474 Total 687 SECTION 2: Valuation Results for the June 30, 2010 Measurement under GASB Town of Nantucket 6 of 6 TOWN OF NANTUCKET Summary of Participant Data Active employees covered for medical benefits as of June 30, 2010 Number of employees Male 181 Female 293 Total 474 Average age 45.4 Average service 10.0 Retired employees, spouses and beneficiaries covered for medical benefits as of June 30, 2010 Number of individuals 213 Average age 67.8 This exhibit summarizes the participant data used for the current valuation. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 16 EXHIBIT I Actuarial Assumptions and Actuarial Cost Method Data: Detailed census data, claims experience, premium rates, and summary plan descriptions for postemployment welfare benefits were provided by the employers. Actuarial Cost Method: Projected Unit Credit or Entry Age Normal Per Capita Cost Development: CCMHG Retirees Medical and Drug Costs Per capita claims costs were based on the approved funding rates (for self-funded plans) or insured premium rates (for fully insured plans) charged by the Cape Cod Municipal Health Group to the member units for the period July 1, 2011 through June 30, 2012. (The Blue Cross Blue Shield Medicare HMO Blue plan renews on January 1, so the costs for this plan were based on the calendar year 2011 premium rates). Premiums were combined by taking a weighted average based on the number of participants in each plan, and were then trended to the midpoint of the valuation year at assumed trend rates. For experience-rated plans (i.e., all plans except for Medicare Advantage plans), actuarial factors were then applied to the premium to estimate individual retiree and spouse costs by age and by gender. The Medicare Advantage plans (Blue Cross Blue Shield Medicare HMO Blue, Tufts Medicare Preferred HMO and Tufts Medicare Preferred Supplement Prime plans) are community rated and thus were not adjusted to reflect the age and gender of the enrolled population. Dental Per capita claims costs were based on the Delta Dental funding rates charged by the CCMHG to the member units for the period July 1, 2011 through June 30, 2012. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 17 Town of Bourne (Non-Teachers) Medical and Prescription Drug Per capita claims costs were based on actual paid claim experience furnished by the Town and its carrier, Blue Cross Blue Shield of Massachusetts, for the period January 1, 2009 through December 31, 2010. Claims were separated by plan year and plan design, then adjusted as follows: á actual large claims were replaced by the expected amount of large claims using the stop loss premiums to smooth out random fluctuations in experience. á total claims were divided by the number of adult members to yield a per capita claim, á the per capita claim was trended to the midpoint of the valuation year at assumed trend rates, and á the per capita claim was adjusted for the effect of any plan changes. Per capita claims for each plan year and a manual rate based on national data were then combined by taking a weighted average. The weights used in this average account for a number of factors including each plan year’s volatility of claims experience and distance to the valuation year. Actuarial factors were then applied to the weighted average cost to estimate individual retiree and spouse costs by age and by gender. Per capita claims costs for the Town’s Blue MedicareRx Prescription Drug Plan for Medicare-eligible retirees were based on the average premium rates for the plan as of January 1, 2010 and January 1, 2011. Dental Per capita costs were based on actual paid claim experience furnished by the Town and its carrier, Blue Cross Blue Shield of Massachusetts, for the period January 1, 2009 through December 31, 2010. Claims were separated by plan year and adjusted as described above to yield a weighted average per capita claims cost. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 18 Town of Nantucket Medical and Prescription Drug Per capita claims costs were based on actual paid claim experience furnished by the Town and its carrier, Blue Cross Blue Shield of Massachusetts, for the period January 1, 2009 through December 31, 2010. Claims were separated by plan year and plan design, then adjusted as follows: á actual large claims were replaced by the expected amount of large claims using the stop loss premiums to smooth out random fluctuations in experience. á total claims were divided by the number of adult members to yield a per capita claim, á the per capita claim was trended to the midpoint of the valuation year at assumed trend rates, and á the per capita claim was adjusted for the effect of any plan changes. Per capita claims for each plan year and a manual rate based on national data were then combined by taking a weighted average. The weights used in this average account for a number of factors including each plan year’s volatility of claims experience and distance to the valuation year. Actuarial factors were then applied to the weighted average cost to estimate individual retiree and spouse costs by age and by gender. Per capita claims costs for the Town’s Medex III for Medicare-eligible retirees were based on the premium rate for the plan as of July 1, 2010. Retired GIC Teachers from the Towns of Barnstable, Bourne, Eastham and Upper Cape Cod RTS Medical and Prescription Drug Per capita claims costs for retired teachers participating in the Group Insurance Commission’s (GIC) Retired Municipal Teachers plans were taken from the Commonwealth of Massachusetts Postemployment Benefits Other than Pensions Actuarial Valuation as of January 1, 2009. The costs shown in the valuation report were trended to the midpoint of the valuation year at assumed trend rates. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 19 Measurement Date: June 30, 2010 Discount Rate: 8.25% funding and 5.00% pay-as-you-go Preretirement Mortality Rates: Healthy (Excluding-Falmouth) RP-2000 Employee Mortality Table projected 10 years with Scale AA (gender distinct) Healthy (Falmouth) RP-2000 Employee Mortality Table (gender distinct) Postretirement Mortality Rates: Healthy (Excluding Falmouth) RP-2000 Healthy Annuitant Mortality Table projected 10 years with Scale AA (gender distinct) Healthy (Falmouth) RP-2000 Healthy Annuitant Mortality Table (gender distinct) Disabled (Non-Teachers) RP-2000 Healthy Annuitant Mortality Table projected 10 years with Scale AA (gender distinct) set forward 2 years Disabled (Teachers) RP-2000 Healthy Annuitant Mortality Table set forward 3 years for males Disabled (Falmouth) RP-2000 Healthy Annuitant Mortality Table set forward 2 years (gender distinct) SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 20 Termination Rates before Retirement: Groups 1 and 2 (excluding Teachers and Falmouth) - Rate per year (%) Mortality Disability Age Male Female 20 0.03 0.02 0.01 25 0.03 0.02 0.02 30 0.04 0.02 0.03 35 0.07 0.04 0.06 40 0.10 0.06 0.10 45 0.13 0.10 0.15 50 0.18 0.14 0.19 55 0.25 0.23 0.24 60 0.42 0.37 0.28 Note: 55% of the rates shown represent accidental disability and death. Group 4 (excluding Teachers and Falmouth) – Rate per year (%) Mortality Disability Age Male Female 20 0.03 0.02 0.10 25 0.03 0.02 0.20 30 0.04 0.02 0.30 35 0.07 0.04 0.30 40 0.10 0.06 0.30 45 0.13 0.10 1.00 50 0.18 0.14 1.25 55 0.25 0.23 1.20 60 0.42 0.37 0.85 Note: 90% of the rates shown represent accidental disability and death. . SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 21 Termination Rates before Retirement (continued): Teachers - Rate (%) Mortality Disability Age Male Female 20 0.03 0.02 0.00 25 0.03 0.02 0.01 30 0.04 0.02 0.01 35 0.07 0,04 0.01 40 0.10 0.06 0.01 45 0.13 0.10 0.03 50 0.18 0.14 0.05 55 0.25 0.23 0.08 60 0.42 0.37 0.10 Notes: 35% of the disability rates shown represent accidental disability. 55% of the death rates shown represent accidental death. Groups 1 and 2 (Falmouth) – Rate (%) Mortality Disability Age Male Female 20 0.03 0.02 0.02 25 0.04 0.02 0.02 30 0.04 0.03 0.03 35 0.08 0.05 0.06 40 0.11 0.07 0.10 45 0.15 0.11 0.15 50 0.21 0.17 0.19 55 0.30 0.25 0.24 60 0.49 0.39 0.28 Note: 55% of the disability rates shown represent accidental disability and death. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 22 Group 4 (Falmouth) – Rate (%) Mortality Disability Age Male Female 20 0.03 0.02 0.00 25 0.04 0.02 0.20 30 0.04 0.03 0.30 35 0.08 0.05 0.30 40 0.11 0.07 0.30 45 0.15 0.11 1.00 50 0.21 0.17 1.25 55 0.30 0.25 1.20 60 0.49 0.39 0.85 Note: 90% of the Group 4 disability rates represent accidental disability and death. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 23 Withdrawal Rates: Rate per year (%) Years of Service Groups 1 and 2 (excluding Teachers) Years of Service Group 4 0 15.0 0 – 10 1.5 1 12.0 11+ 0.0 2 10.0 3 9.0 4 8.0 5 7.6 6 7.5 7 6.7 8 6.3 9 5.9 10 5.4 11 5.0 12 4.6 13 4.1 14 3.7 15 3.3 16 – 20 2.0 21 – 29 1.0 30+ 0.0 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 24 Teachers – Withdrawal Rate (%) 0 – 4 Years of Service 5 – 9 Years of Service 10+ Years of Service Age Male Female Male Female Male Female 20 12.0 10.0 4.5 9.0 1.0 5.0 30 11.4 12.0 4.5 9.0 1.0 5.0 40 9.7 11.0 5.4 6.5 1.7 2.9 50 10.0 8.2 4.8 4.2 2.2 2.1 Previous assumption: Teachers – Rate (%) 0 – 4 Years of Service 5 – 9 Years of Service 10+ Years of Service Age Male Female Male Female Male Female 20 9.0 6.0 4.0 9.0 1.0 4.0 30 10.8 11.6 4.3 9.0 1.0 4.0 40 9.3 11.4 4.9 7.0 1.5 3.1 50 5.9 6.8 4.2 4.5 1.9 1.9 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 25 Retirement Rates: All Groups (excluding Teachers) – Rate per year (%) Age Groups 1 and 2 Group 4 Male Female 45 - 49 - - - - 1.0 50 – 51 1.0 1.5 2.0 52 1.0 2.0 2.0 53 1.0 2.5 5.0 54 2.0 2.5 7.5 55 2.0 5.5 15.0 56 – 57 2.5 6.5 10.0 58 5.0 6.5 10.0 59 6.5 6.5 15.0 60 12.0 5.0 20.0 61 20.0 13.0 20.0 62 30.0 15.0 25.0 63 25.0 12.5 25.0 64 22.0 18.0 30.0 65 40.0 15.0 100.0 66 - 67 25.0 20.0 - - 68 30.0 25.0 - - 69 30.0 20.0 - - 70 100.0 100.0 - - SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 26 Teachers - Rate per year (%) Years of Service Less than 20 20 – 29 30 or more Age Male Female Male Female Male Female 50 – 53 0.0 0.0 1.0 1.5 2.0 2.0 54 0.0 0.0 1.0 1.5 2.0 2.0 55 3.0 2.0 3.0 3.0 6.0 6.0 56 8.0 2.0 5.0 3.0 20.0 15.0 57 15.0 8.0 8.0 7.0 35.0 30.0 58 15.0 10.0 10.0 7.0 50.0 35.0 59 20.0 15.0 20.0 11.0 50.0 35.0 60 15.0 20.0 20.0 16.0 50.0 35.0 61 30.0 20.0 25.0 20.0 50.0 35.0 62 20.0 25.0 30.0 30.0 40.0 35.0 63 30.0 24.0 30.0 30.0 40.0 40.0 64 40.0 20.0 30.0 30.0 50.0 30.0 65 40.0 30.0 40.0 30.0 50.0 35.0 66 40.0 30.0 30.0 30.0 50.0 35.0 67 40.0 30.0 30.0 30.0 50.0 35.0 68 40.0 30.0 30.0 30.0 50.0 30.0 69 40.0 30.0 30.0 30.0 50.0 30.0 70 100.0 100.0 100.0 100.0 100.0 100.0 Dependents: Demographic data was available for spouses of current retirees. For future retirees, husbands were assumed to be three years older than their wives. For future retirees who elect to continue their health coverage at retirement, 65% were assumed to have an eligible spouse who also opts for health coverage at that time. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 27 Per Capita Health Costs: 2010 – 2011 medical and prescription drug claims costs are shown in the table below for retirees and for spouses at selected ages. These costs are net of deductibles and other benefit plan cost sharing provisions. CCMHG Non-Medicare Plans Medicare Supplement Retiree Spouse Retiree Spouse Age Male Female Male Female Male Female Male Female45 $7,798 $9,782 $4,836 7,301 N/A N/A N/A N/A 50 9,255 10,541 6,464 8,464 N/A N/A N/A N/A 55 10,991 11,347 8,650 9,797 N/A N/A N/A N/A 60 13,053 12,231 11,580 11,362 N/A N/A N/A N/A 65 15,502 13,176 15,502 13,176 $4,353 $3,700 $4,353 $3,700 70 17,967 14,200 17,967 14,200 5,045 3,987 5,045 3,987 75 19,362 15,285 19,362 15,285 5,437 4,292 5,437 4,292 80 20,850 16,478 20,850 16,478 5,855 4,627 5,855 4,627 Bourne (Non-Teachers) Non-Medicare Plans Medicare Supplement Retiree Spouse Retiree Spouse Age Male Female Male Female Male Female Male Female45 $7,022 $8,809 $4,356 $6,576 N/A N/A N/A N/A 50 8,335 9,493 5,822 7,623 N/A N/A N/A N/A 55 9,898 10,219 7,790 8,823 N/A N/A N/A N/A 60 11,755 11,015 10,429 10,233 N/A N/A N/A N/A 65 13,961 11,867 13,961 11,867 $1,929 $1,640 $1,929 $1,640 70 16,181 12,788 16,181 12,788 2,236 1,767 2,236 1,767 75 17,437 13,766 17,437 13,766 2,409 1,902 2,409 1,902 80 18,778 14,841 18,778 14,841 2,595 2,051 2,595 2,051 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 28 Nantucket Non-Medicare Plans Medicare Supplement Retiree Spouse Retiree Spouse Age Male Female Male Female Male Female Male Female45 $7,834 $9,827 $4,859 $7,335 N/A N/A N/A N/A 50 9,298 10,590 6,494 8,503 N/A N/A N/A N/A 55 11,042 11,400 8,690 9,843 N/A N/A N/A N/A 60 13,113 12,288 11,634 11,416 N/A N/A N/A N/A 65 15,574 13,238 15,574 13,238 $3,133 $2,663 $3,133 $2,663 70 18,050 14,266 18,050 14,266 3,631 2,870 3,631 2,870 75 19,452 15,356 19,452 15,356 3,913 3,089 3,913 3,089 80 20,947 16,555 20,947 16,555 4,214 3,330 4,214 3,330 GIC Plans Retired on or before June 1, 1990 Indemnity HMO Non-Medicare Eligible Medicare EligibleNon-Medicare Eligible Medicare EligibleAge Retiree Spouse Retiree Spouse Retiree Spouse Retiree Spouse45 $7,114 $6,829 N/A N/A $4,504 $4,338 N/A N/A 50 8,368 8,033 N/A N/A 5,298 5,103 N/A N/A 55 9,843 9,449 N/A N/A 6,233 6,003 N/A N/A 60 11,747 11,276 N/A N/A 7,438 7,163 N/A N/A 65 14,451 13,881 $2,837 $2,837 9,147 8,814 $2,221 $2,221 70 16,681 16,026 3,274 3,274 10,556 10,174 2,563 2,563 75 18,794 18,062 3,685 3,685 11,888 11,461 2,884 2,884 80 20,567 19,775 4,030 4,030 13,005 12,543 3,152 3,152 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 29 Retired after June 1, 1990 Indemnity HMO Non-Medicare Eligible Medicare EligibleNon-Medicare Eligible Medicare EligibleAge Retiree Spouse Retiree Spouse Retiree Spouse Retiree Spouse45 $6,823 $6,441 N/A N/A $4,331 $4,081 N/A N/A 50 8,026 7,576 N/A N/A 5,095 4,800 N/A N/A 55 9,440 8,911 N/A N/A 5,993 5,647 N/A N/A 60 11,265 10,634 N/A N/A 7,151 6,739 N/A N/A 65 13,868 13,101 $2,676 $2,676 8,798 8,300 $2,087 $2,087 70 16,013 15,131 3,087 3,087 10,156 9,584 2,409 2,409 75 18,047 17,059 3,476 3,476 11,441 10,801 2,711 2,711 80 19,758 18,687 3,801 3,801 12,521 11,827 2,963 2,963 Medicare Advantage: $2,983 Medicare Rx (Bourne): $2,490 Annual Dental Cost: CCMHG $544 Bourne $363 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 30 Health Care Cost Trend Rates: Health care trend measures the anticipated overall rate at which health plan costs are expected to increase in future years. The rates shown below are “net” and are applied to the net per capita costs shown above. The trend shown for a particular plan year is the rate that must be applied to that year’s cost to yield the next year’s projected cost. Year EndingJune 30 Medical/Drug Dental 2011 10.00% 5.00% 2012 9.25% 5.00% 2013 8.50% 5.00% 2014 7.75% 5.00% 2015 7.00% 5.00% 2016 6.25% 5.00% 2017 5.50% 5.00% 2018 & later 5.00% 5.00% Retiree Contribution Increase Rate: Retiree contributions for medical and prescription drug coverage are expected to increase with medical trend. Retiree contributions for dental are assumed to increase with dental trend. Participation and Coverage Election: 100% of active employees with coverage are assumed to elect retiree coverage. 100% of retirees over age 65 are assumed to remain in their current medical plan for life and continue dental and life insurance coverage, if elected. 50% of future retirees with medical coverage are assumed to have life insurance coverage, and 90% are assumed to have dental benefits if the retirees are eligible for those benefits according to unit. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 31 Barnstable Fire District, Bourne Water District, Buzzard’s Bay Water District, Cape Cod Regional Transit Authority, COMM Fire District and Cotuit Fire District For future retirees and current retirees under age 65, 100% are assumed to enroll in a Medicare Supplement plan upon reaching age 65. Dennis-Yarmouth Regional School District, Upper Cape Cod Regional School District, Towns of Mashpee and Orleans: For future retirees hired prior to 1986 and current retirees under age 65, 95% are assumed to be eligible for Medicare and are assumed to enroll in the Medicare Supplement Plan upon reaching age 65, 5% are assumed to be ineligible and to remain enrolled in a non-Medicare plan. For future retirees hired in 1986 or later, 100% are assumed to enroll in a Medicare Supplement plan upon reaching age 65. Barnstable County, Towns of Bourne, Dennis, Eastham, Falmouth, Harwich, Sandwich and Wellfleet: For future retirees hired prior to 1986 and current retirees under age 65, 90% are assumed to be eligible for Medicare and are assumed to enroll in a Medicare Supplement plan upon reaching age 65, and 10% are assumed to be ineligible for, or elect out of, Medicare and remain enrolled in a non-Medicare plan. For future retirees hired in 1986 or later, 100% are assumed to enroll in a Medicare Supplement plan upon reaching age 65. Towns of Barnstable and Chatham: For future retirees hired prior to 1986 and current retirees under age 65, 80% are assumed to be eligible for Medicare and are assumed to enroll in a Medicare Supplement Plan upon reaching age 65, 5% are assumed to be eligible for Medicare and enroll in a Medicare Advantage Plan and 15% are assumed to be ineligible for or elect out of Medicare and remain enrolled in a non-Medicare plan. For future retirees hired in 1986 or later, for Town of Barnstable, 95% are assumed to enroll in a Medicare Supplement plan and 5% are assumed to enroll in a Medicare Advantage plan upon reaching age 65. For future retirees hired in 1986 or later for Town of Chatham, same percentages as shown above. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 32 Hyannis Fire District, Towns of Provincetown and Truro: For all future retirees and current retirees under age 65, 50% are assumed to be eligible for Medicare and are assumed to enroll in a Medicare Supplement plan upon reaching age 65, and 50% are assumed to be ineligible for or elect out of Medicare and remain enrolled in a non-Medicare plan. Town of Nantucket: For future retirees hired prior to 1986 and current retirees under age 65, 70% are assumed to be eligible for Medicare and are assumed to enroll in a Medicare Supplement plan upon reaching age 65, and 30% are assumed to be ineligible for or elect out of Medicare and remain enrolled in a non-Medicare plan. For future retirees hired in 1986 or later, 100% are assumed to enroll in a Medicare Supplement plan upon reaching age 65. Nauset Regional School District, Towns of Brewster and Yarmouth: For all future retirees and current retirees under age 65, 95% are assumed to enroll in a Medicare Supplement plan upon reaching age 65 and 5% are assumed to enroll in a Medicare Advantage plan. Bourne Recreation Authority and Sandwich Water District: For future retirees and current retirees under age 65, 100% are assumed to be ineligible for or opt out of Medicare and are assumed to enroll in a non-Medicare plan upon reaching age 65. Dennis Water District, Mashpee Water District: For future retirees hired prior to 1986 and current retirees under age 65, 50% are assumed to be eligible for Medicare and are assumed to enroll in a Medicare Supplement plan upon reaching age 65, and 50% are assumed to be ineligible for or elect out of Medicare and remain enrolled in a non-Medicare plan. For future retirees hired in 1986 or later, 100% are assumed to enroll in a Medicare Supplement plan upon reaching age 65. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 33 Towns of Barnstable, Bourne, and Eastham and Upper Cape Cod RTS (retired teachers): All future and current retired teachers under 65 are assumed to elect a GIC indemnity plan upon retirement. For future retirees hired prior to 1986 and current retirees under the age of 65 (excluding Upper Cape Cod RTS), 90% are assumed to be eligible for Medicare and 10% are assumed to be ineligible and remain in a non-Medicare GIC indemnity plan upon reaching age 65. For future retirees hired in 1986 or later(excluding Upper Care Cod RTS), 100% are assumed to be eligible for Medicare and enroll in a GIC indemnity plan on reaching age 65. For all future and current retirees for Upper Cape Cod RTS, 100% are assumed to be eligible for Medicare and enroll in a GIC indemnity plan on reaching age 65. Plan Design: Development of plan liabilities was based on the substantive plan of benefits in effect as described in Exhibit II. Administrative Expenses: Administrative expenses for self-insured plans were assumed to increase at 3.5%. Administrative expenses for insured plans were assumed to be included in the fully insured premium rates. Annual Maximum Benefits: No increase in the annual maximum benefit levels was assumed. Lifetime Maximum Benefits: No information was available regarding accumulations toward lifetime maximum benefits and no such accumulations were assumed. Missing Participant Data: A missing census item for a given participant was assumed to equal the average value of that item over all other participants of the same status for whom the item is known. Health Care Reform Assumption: The Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act (HCERA) of 2010 creates a temporary reinsurance program for eligible health care coverage for pre-Medicare retirees over age 55. The program will reimburse the plan sponsor for 80% of the retiree claims between $15,000 and $90,000. Due to the short nature of this program, the limited financing, and uncertainty of qualifying and receiving payment (the program will be on a first come first served basis until financing runs out), we have not reflected the value of this program in the valuation. Additional provisions of these Acts that may affect retiree health benefits in the future have not been reflected. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 34 Assumption Changes Since Prior Valuation: Per capita health care costs and administrative expenses for CCMHG and Town of Bourne were recalculated based on more recent data. Per capita health costs for GIC retirees were updated based on the Commonwealth of Massachusetts Postemployment Benefits Other than Pensions Actuarial Valuation as of January 1, 2009. Medical/drug trend assumption was changed from 9.00% in 2009 decreasing by 0.75% per year to 5.25% in 2014 and by 0.25% to 5.00% by 2015 to 10.00% in 2011 decreasing by 0.75% per year to 5.50% in 2017 and by 0.50% to 5.00% by 2018. The plan election assumption upon reaching age 65 was revised for Barnstable County, Barnstable Fire District, Bourne Water District, Dennis Water District, Dennis-Yarmouth RDS, Mashpee Water District, Nauset RSD, Upper Cape Cod RTS, and Towns of Barnstable, Chatham, Dennis, Mashpee, Orleans, Sandwich, Wellfleet and Yarmouth as described above. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 35 EXHIBIT II Summary of Plan (for employers participating in Cape Cod Municipal Health Group) This exhibit summarizes the major benefit provisions as included in the valuation. To the best of our knowledge, the summary represents the substantive plans as of the measurement date. It is not intended to be, nor should it be interpreted as, a complete statement of all benefit provisions. Eligibility: The following groups of retirees receiving a pension from the Barnstable County Retirement System, the Falmouth Retirement System, or the Massachusetts Teachers Retirement System are eligible for postretirement medical benefits: Group 1 (including Teachers): á Retirees with at least 10 years of creditable service are eligible at age 55; á Retirees with at least 20 years of creditable service are eligible at any age. Group 4: á Retirees with at least 10 years of creditable service are eligible at age 45; á Retirees with at least 20 years of creditable service are eligible at any age. Disability: Retirees on Ordinary (non-job-related) or Accidental (job-related) Disability Retirement are eligible at any age. Ordinary disability retirement requires 10 years of creditable service. Pre-Retirement Death: Surviving spouse is eligible. Post-Retirement Death: Surviving spouse is eligible. Benefit Types: Medical and prescription drug benefits are provided to all eligible retirees through a variety of plans offered through the Cape Cod Municipal Health Group (CCMHG) provided by Blue Cross Blue Shield of Massachusetts, Harvard Pilgrim Health Plan and Tufts Health Plan. The CCMHG also provides contributory and voluntary dental coverage through Delta Dental. Duration of Coverage: Lifetime. Dependent Benefits: Medical, prescription drug, and dental. Dependent Coverage: Benefits are payable to a spouse for their lifetime, regardless of when the retiree dies. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 36 Contribution rates: CCMHG current premium rates and employer contribution percentages are summarized below: Active Retired TotalMonthly Cost (eff. 7/1/2011)Non-Medicare PlansBCBS Blue Care Elect Preferred PPOIndividual 565 324 88996$792.002-person 27 1 280$1,584.00Family 922 242 116433$1,985.00BCBS Master Health PlusIndividual 125 60 18525$1,135.002-person 2 0 20$2,268.00Family 152 31 18310$2,844.00BCBS Master Health/Master MedicalIndividual 27 36 6313$1,070.002-person 1 0 10$2,137.00Family 23 17 405$2,709.00BCBS Network Blue HMOIndividual 638 72 71023$664.002-person 57 1 580$1,328.00Family 1071 66 11377$1,780.00Harvard Pilgrim EPOIndividual 490 92 58229$614.002-person 30 1 310$1,644.00Family 958 79 103712$1,644.00Harvard Pilgrim PPOIndividual 72 23 953$675.002-person 3 0 30$1,790.00Family 123 12 1352$1,790.00BCBS Blue Care Elect Preferred Rate SaverIndividual 2 3 50$673.002-person 0 1 10$1,346.00Family 7 5 120$1,687.00BCBS Network Blue HMO Rate SaverIndividual 6 0 60$564.002-person 0 0 00$1,128.00Family 6 1 70$1,513.00SubscribersRetirees Age 65 and over* SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 37 Active Retired TotalMonthly Cost (eff. 7/1/2011)Non-Medicare Plans (continued)Harvard Pilgrim EPO Rate SaverIndividual 9 2 110$522.00Family 13 4 170$1,397.00Harvard Pilgrim PPO Rate SaverIndividual 2 0 20$580.00Family 4150$1,520.00Totals 5,335 1,074 6,409258Medicare Plans(eff. 7/1/2011)BCBS Carveout A** 0 3 33N/ABCBS Managed Blue for Seniors*** 0 16 1616$395.00BCBS Medex 3 Standard 0 55 5555$388.00BCBS Medex 3 Enhanced 1 1272 12731272$440.00Harvard Pilgrim Medicare Enhance 1 202 203202$460.75Tufts Medicare Preferred Supp*** 0 4 44$309.00Totals 2 1,552 1,5541,552Medicare Advantage Plans(eff. 7/1/2010)BCBS Medicare HMO Blue**** 0 6 66$357.89Tufts Medicare Preferred 0 21 2121$207.00Totals 0 27 2727Dental Blue Premier(eff. 7/1/2011)Individual$34.00Family$96.00* 258 of 1,826 over-65 retirees (or 8%) are in a non-Medicare plan** Enrollment in plan is frozen*** Premium rate is as of July 1, 2010**** Premium rate is as of January 1, 2011SubscribersRetirees Age 65 and over* SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 38 Life Unit Under Age 65 Age 65 and Over Under Age 65 Age 65 and Over DentalBarnstable County 75% 75% 75% 75% 75% 75% $10,000Barnstable Fire District 80% 80% 80% 80% 80% 80% $10,000Bourne Recreation Autority 75% 75% 0% 0% 75% 75% $5,000Bourne Water District 75% 75% 50% 50% 75% 75% $5,000Buzzards Bay Water District 75% 75% 75% 75% 75% 75% $5,000CC Regional Transit Authority 0% 0% 0% 0% 0% None None C.O.M.M. Fire District 70% 80% 70% 80% 80% 80% $1,000Cotuit Fire District 75% 75% 0% 0% 75% 75% $2,000Dennis Water District 75% 75% 50% 50% 75% 75% $5,000Dennis-Yarmouth Regional School District 60% 60% 0% 0% 60% 60% $1,000Hyannis Fire District 95% 95% 95% 95% 95% 95% $5,000Mashpee Water District 75% 75% 75% 75% 75% 50% $5,000Nauset Regional School District 50% 50% 50% 50% 0% 0% $2,000Sandwich Water District 90% 90% 90% 90% 90% 90% $2,000Town of Barnstable 50% 50% 0% 0% None 50% $2,000Town of Bourne 75% 75% 0% 0% 75% 50% $5,000Town of Brewster 50% 50% 50% 50% 0% 50% $1,000Town of Chatham 50% 50% 50% 50% 50% 50% $5,000Town of Dennis 60% 60% 50% 50% 60% 60% $2,000Town of Eastham 65% 65% 65% 65% 65% 50% $5,000Town of Falmouth 65% 50% 65% 50% 0% 50% $1,000Town of Harwich 75% 75% 75% 75% 0% 75% $2,000Town of Mashpee 75% 75% 75% 75% 0% 75% $4,000Town of Nantucket 80%-90% 90% 80%-90% 90% 0% None None Town of Orleans 75% 75% 0% 0% 0% 75% $2,000Town of Provincetown 80% 80% 0% 0% None 50% $1,000Town of Sandwich 75% 75% 50% 50% 75% 75% $2,000Town of Truro 65% 65% 0% 0% 0% 65% $1,000Town of Wellfleet 50% 50% 50% 50% 0% 50% $5,000Town of Yarmouth 50% 50% 50% 50% 0% 50% $5,000Upper Cape Cod Regional Technical School 70% 70% 70% 70% None 50% $10,000Employer Contribution PercentageMedicalSurvivng SpousesRetirees and SpousesRetireeLife InsuranceBenefitInsurance SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 39 Benefit Descriptions: BCBS Blue Care Elect Preferred PPO Legacy Plan RateSaver Plan Medical In-Network Out-of-Network In-Network Out-of-Network Annual Deductible* None $250/$500 None $250/$500 Coinsurance 100% 80% 100% 80% Physicians Office Visit $10 copay Coinsurance & deductible $20 copay Coinsurance & deductible Emergency Room $50 copay $50 copay $75 copay $75 copay Coinsurance Maximum None $1,000/$2,000 None $1,000/$2,000 Prescription Drugs Retail Copay** $5/$15/$30 $15/$30/$50 Mail Copay** $5/$15/$30 $30/$60/$100 BCBS Master Health Plus Medical Annual Deductible None Coinsurance 100% Physicians Office Visit $10 copay Emergency Room $25 copay Maximum Out-Of-Pocket Expense None Prescription Drugs Retail Copay $5/$15/$30 Mail Copay $5/$15/$30 * Deductibles and coinsurance or copay maximums are listed as individual/family. ** Prescription drug copays are listed as generic/brand or generic/preferred brand/non-preferred brand. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 40 BCBS Master Health/Master Medical Medical Annual Deductible $50 per member Coinsurance 100% for most services Physicians Office Visit 80% coinsurance Emergency Room Copay Covered in full Maximum Out-Of-Pocket Expense None Prescription Drugs Retail Copay 80% coinsurance Mail Copay $5/$15/$30 BCBS Network Blue HMO Legacy Plan RateSaver Plan Medical Annual Deductible None None Coinsurance 100% 100% Physicians Office Visit $10 copay $20 copay Emergency Room $25 copay $75 copay Maximum Out-Of-Pocket Expense None None Prescription Drugs Retail Copay $5/$15/$30 $15/$30/$50 Mail Copay $5/$15/$30 $30/$60/$100 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 41 Harvard Pilgrim EPO Legacy Plan RateSaver Plan Medical Annual Deductible None None Coinsurance 100% 100% Physicians Office Visit $10 copay $20 copay ($40 for specialists) Emergency Room $30 copay $75 copay Maximum Out-Of-Pocket Expense None None Prescription Drugs Retail Copay $5/$10/$25 $15/$30/$50 Mail Copay $10/$20/$75 $30/$60/$150 Harvard Pilgrim PPO Legacy Plan RateSaver Plan Medical In-Network Out-of-Network In-Network Out-of-Network Annual Deductible None $250/$500 None $250/$500 Coinsurance 100% 80% 100% 80% Physicians Office Visit $10 copay Coinsurance & deductible $20 copay ($40 for specialists) Coinsurance & deductible Emergency Room $30 copay $30 copay $100 copay $100 copay Coinsurance Maximum None $1,500/$3,000 None $1,500/$3,000 Prescription Drugs Retail Copay $5/$10/$25 $15/$30/$50 Mail Copay $10/$20/$75 $30/$60/$150 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 42 BCBS Master Medical Carveout A (frozen enrollment) Medical Annual Deductible $50 per member Coinsurance 100% for most services Physicians Office Visit 80% coinsurance Emergency Room Covered in full Maximum Out-Of-Pocket Expense None Prescription Drugs Retail Copay 80% coinsurance Mail Copay $5/$15/$30 BCBS Managed Blue for Seniors Medical Hospital Inpatient Covered in full Office Visits $10 copay Emergency Room $50 copay Prescription Drugs Retail Copay 25%/50%/75% for a 60-day supply Mail Copay $5/$30/$50 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 43 BCBS Medex 3 Standard Medical Hospital Inpatient Covered in full Office Visits Not covered Emergency Room Covered in full Prescription Drugs Retail Copay Full coverage/20% copayment after a $50 calendar year deductible Mail Copay $2/$15 BCBS Medex 3 Enhanced Medical Hospital Inpatient Covered in full Office Visits Covered in full Emergency Room Covered in full Prescription Drugs Retail Copay Full coverage/20% copayment after a $50 calendar year deductible Mail Copay $2/$15 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 44 Harvard Pilgrim Medicare Enhance Medical Hospital Inpatient Covered in full Office Visits $5 copay Emergency Room $30 copay Prescription Drugs Retail Copay $5/$10/$25 Mail Copay $10/$20/$75 BCBS Medicare HMO Blue Medical Hospital Inpatient $150 copay per day up to $750 per calendar year Office Visits $15 copay Emergency Room $50 copay Prescription Drugs Retail Copay $10/$25/$45 Mail Copay $20/$50/$90 Catastrophic Coverage The greater of 5% of $2.50 generic/$6.30 brand after $4,550 in out-of-pocket drug expenses SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 45 Tufts Medicare Preferred PFFS Medical Hospital Inpatient Covered in full after $300 deductible Office Visits $10 copay to PCP/$15 copay to specialist Emergency Room $50 copay Prescription Drugs Retail Copay $10/$25/$50 Mail Copay $20/$50/$100 Catastrophic Coverage The greater of 5% or $2.50 generic/$6.30 brand after $4,550 in out-of-pocket drug expenses Tufts Medicare Prime Supplement Plan Medical Hospital Inpatient Covered in full after $300 deductible Office Visits $15 copay Emergency Room $50 copay Prescription Drugs Retail Copay $10/$20/$35 Mail Copay $20/$40/$70 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 46 Delta Dental Premier Coverage Benefit Maximum Preventative Benefits No deductible Diagnostic/Preventative Covered in full Basic and Major Benefits $50/$100 deductible Restorative/Periodontics/Endodontics 80% coverage Prosthodontics/Major Restorative 50% coverage $1,000 per calendar year Orthodontic Benefits Covered at 50% $1,000 per lifetime SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 47 EXHIBIT III Summary of Plan (for Town of Bourne) This exhibit summarizes the major benefit provisions as included in the valuation. To the best of our knowledge, the summary represents the substantive plans as of the measurement date. It is not intended to be, nor should it be interpreted as, a complete statement of all benefit provisions. Eligibility: The following groups of retirees receiving a pension from the Barnstable County Retirement System, or the Massachusetts Teachers Retirement System are eligible for postretirement medical benefits: Group 1 (including Teachers): á Retirees with at least 10 years of creditable service are eligible at age 55; á Retirees with at least 20 years of creditable service are eligible at any age. Group 4: á Retirees with at least 10 years of creditable service are eligible at age 45; á Retirees with at least 20 years of creditable service are eligible at any age. Disability: Retirees on Ordinary (non-job-related) or Accidental (job-related) Disability Retirement are eligible at any age. Ordinary disability retirement requires 10 years of creditable service. Pre-Retirement Death: Surviving spouse is eligible. Post-Retirement Death: Surviving spouse is eligible. Benefit Types: Medical, prescription drug and dental benefits are provided to all eligible retirees through a variety of plans provided by Blue Cross Blue Shield of Massachusetts. Duration of Coverage: Lifetime. Dependent Benefits: Medical, prescription drug, and dental. Dependent Coverage: Benefits are payable to a spouse for their lifetime, regardless of when the retiree dies. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 48 Contribution rates: Current premium rates are summarized below: Active Retired TotalMonthly Cost (eff. 7/1/2011)Non-Medicare PlansBCBS Blue Care Elect Preferred PPOIndividual 68 28 961$748.00Family 167 22 1895$1,796.00BCBS Master Health PlusIndividual 2 0 20$897.00Family 4 0 40$2,157.00BCBS Network Blue HMOIndividual 52 1 530$639.00Family 98 0 980$1,533.00Totals 391 51 4426Medicare PlansBCBS Medex II/Blue Medicare Rx 1 78 7878$379.90Totals 1 78 7878Dental BlueIndividual$32.20Family$86.25* 6 of 81 over-65 retirees (or 4%) are in a non-Medicare planSubscribersRetirees Age 65 and over* SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 49 Benefit Descriptions (Town of Bourne): BCBS Blue Care Elect Preferred PPO In-Network Out-of-Network Medical Annual Deductible None $250/$500 Coinsurance 100% 80% Physicians Office Visit $10 copay Coinsurance & deductible Emergency Room $75 copay $75 copay Coinsurance Maximum None $1,000/$2,000 Prescription Drugs Retail Copay $10/$20/$35 Not covered Mail Copay $10/$20/$35 Not covered BCBS Network Blue New England Medical Annual Deductible None Coinsurance 100% Physicians Office Visit $10 copay Emergency Room $75 copay Maximum Out-Of-Pocket Expense None Prescription Drugs Retail Copay $10/$20/$35 Mail Copay $10/$20/$35 SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 50 BCBS Medex 2/Blue MedicareRx Medical Hospital Inpatient Covered in full Office Visits Covered in full Emergency Room Covered in full Prescription Drugs Retail Copay $5/$10/$25 Mail Copay $10/$20/$50 Catastrophic Coverage The greater of 5% or $2.50 generic/$6.30 brand after $4,550 in out-of-pocket drug expenses Dental Blue Coverage Benefit Maximum Preventative Benefits No deductible Diagnostic/Preventative Covered in full Basic and Major Benefits $50/$150 deductible Restorative/Periodontics/Endodontics 55% coverage Prosthodontics/Major Restorative 50% coverage $1,500 calendar year maximum Orthodontic Benefits Covered at 50% $1,000 per lifetime SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 51 EXHIBIT IV Summary of Plan (for Town of Nantucket) This exhibit summarizes the major benefit provisions as included in the valuation. To the best of our knowledge, the summary represents the substantive plans as of the measurement date. It is not intended to be, nor should it be interpreted as, a complete statement of all benefit provisions. Eligibility: The following groups of retirees receiving a pension from the Barnstable County Retirement System, or the Massachusetts Teachers Retirement System are eligible for postretirement medical benefits: Group 1 (including Teachers): á Retirees with at least 10 years of creditable service are eligible at age 55; á Retirees with at least 20 years of creditable service are eligible at any age. Group 4: á Retirees with at least 10 years of creditable service are eligible at age 45; á Retirees with at least 20 years of creditable service are eligible at any age. Disability: Retirees on Ordinary (non-job-related) or Accidental (job-related) Disability Retirement are eligible at any age. Ordinary disability retirement requires 10 years of creditable service. Pre-Retirement Death: Surviving spouse is eligible. Post-Retirement Death: Surviving spouse is eligible. Benefit Types: Medical and prescription drug benefits are provided to all eligible retirees through a variety of plans provided by Blue Cross Blue Shield of Massachusetts. Duration of Coverage: Lifetime. Dependent Benefits: Medical and prescription drug. Dependent Coverage: Benefits are payable to a spouse for their lifetime, regardless of when the retiree dies. SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 52 Contribution rates: Current premium rates are summarized below: Active Retired TotalMonthly Cost (eff. 7/1/2011)Non-Medicare PlansBCBS Blue Care Elect Preferred PPOIndividual 68 9 772$610.20Family 139 8 1473$1,298.70BCBS Master MedicalIndividual 96 62 15831$780.00Family 171 41 21210$1,698.00Totals 474 120 59446Medicare PlansBCBS Medex 3 1 70 7070$515.16Totals 1 70 7070* 46 of 92 over-65 retirees (or 25%) are in a non-Medicare planSubscribersRetirees Age 65 and over* SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 53 Benefit Descriptions (Town of Nantucket): BCBS Blue Care Elect Preferred PPO In-Network Out-of-Network Medical Annual Deductible None $250/$500 Coinsurance 100% 80% Physicians Office Visit $15 copay Coinsurance & deductible Emergency Room $25 copay $25 copay Coinsurance Maximum None $1,000/$2,000 Prescription Drugs Retail Copay $10/$20/$35 Mail Copay $10/$20/$35 BCBS Master Medical Medical Annual Deductible $50/$100 Coinsurance 80% Physicians Office Visit Coinsurance & deductible Emergency Room None Maximum Out-Of-Pocket Expense None Prescription Drugs Retail Copay 20% copay up to coinsurance maximum of $200/$400, then covered in full Mail Copay Not covered SECTION 3: Supporting Information for the Barnstable County June 30, 2010 Measurement under GASB 54 BCBS Medex 3 Medical Hospital Inpatient Covered in full Office Visits Covered in full Emergency Room Covered in full Prescription Drugs Retail Copay Full coverage/20% copayment after a $50 calendar year deductible Mail Copay $2/$15 7487834v2/04446.015 SECTION 4: Supplemental Information by Department for the June 30, 2010 Measurement under GASB 63 Airport County Our Island Home Sewer Town Water Total Actuarial Accrued Liability by Participant Category 1. Current retirees, beneficiaries and dependents $2,774,642 $37,404 $3,429,549 $647,796 $28,886,931 $1,132,169 $36,908,491 2. Current active members 3,408,858 45,954 4,213,461 795,866 35,489,783 1,390,955 45,344,877 3. Total as of July 1, 2010: (1) + (2) $6,183,500 $83,358 $7,643,010 $1,443,662 $64,376,714 $2,523,124 $82,253,368 4. Actuarial value of assets as of July 1, 2010 0 0 0 0 0 0 0 5. Unfunded actuarial accrued liability (UAAL) as of July 1, 2010: (3) - (4) $6,183,500 $83,358 $7,643,010 $1,443,662 $64,376,714 $2,523,124 $82,253,368 Annual Required Contribution for Fiscal Year Ending June 30, 2011 6. Normal cost as of July 1, 2010 $171,536 $10,020 $231,866 $66,948 $2,107,037 $19,850 $2,607,257 7. Adjustment for timing 4,236 247 5,726 1,653 52,034 490 64,386 8. Normal cost adjusted for timing: (6) + (7) $175,772 $10,267 $237,592 $68,601 $2,159,071 $20,340 $2,671,643 9. 30-year amortization of the unfunded actuarial accrued liability (UAAL) increasing at 4.5% per year 220,699 2,975 272,792 51,527 2,297,712 90,054 2,935,759 10. Adjustment for timing 5,450 73 6,737 1,272 56,743 2,224 72,499 11. Amortization payment adjusted for timing: (9) + (10) $226,149 $3,048 $279,529 $52,799 $2,354,455 $92,278 $3,008,258 12. Total Annual Required Contribution (ARC): (8) + (11) 401,921 13,315 517,121 121,400 4,513,526 112,618 5,679,901 13. Projected benefit payments for fiscal year ending June 30, 2011 $169,052 $2,056 $211,389 $36,797 $1,699,502 $81,779 $2,200,575 Notes: Adjustment for timing assumes payment in the middle of the fiscal year. Retiree obligation allocated in proportion to active obligation. DEPARTMENT RESULTS – TOWN OF NANTUCKETPROJECTED UNIT CREDIT, PAY-AS-YOU-GO ASSUMPTIONS (5.00%)