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B APJS CBarnstabActuarial ValuaPostemploymeJune 30, 2012 iStatements NoCopyright © 2013 by Tble Counation and Revieent Benefits (Oin accordance o. 43 and No. 45The Segal Group, Incnty ew of Other PEB) as of with GASB 5 c., All rights reserved. 116 Huntington Avenue 8th Floor Boston, MA 02116-5744 T 617.424.7300 www.segalco.com August 27, 2013 Mr. E. Mark Zielinksi 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 this report on our actuarial valuation of postemployment welfare benefits as of June 30, 2012 under Governmental Accounting Standards Board (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, 2012 and July 1, 2013 and summarizes the actuarial data. The actuarial calculations were completed under the supervision of Kathleen A. Riley, FSA, MAAA, EA, Senior Vice President and Actuary and Daniel J. Rhodes, ASA, FCA, MAAA, Vice President and Consulting Actuary. 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 II and on the plan of benefits as summarized in Exhibit III. We look forward to discussing this with you at your convenience. Sincerely, Segal Consulting, a Member of The Segal Group, Inc. By: ____________________________ ____________________________ Kathleen A. Riley, FSA, MAAA, EA Daniel J. Rhodes, ASA, FCA, MAAA Senior Vice President and Actuary Vice President and Consulting Actuary 7853700v1/04446.018 SECTION 1 SECTION 2 SECTION 3 SECTION 4 INTRODUCTION VALUATION RESULTS SUPPORTING INFORMATION DEPARTMENT RESULTS Purpose ......................................... 1 Highlights of the Valuation .......... 1 Accounting Requirements ............ 4 Definitions of Terms ..................... 7 Actuarial Certification .................. 9Individual Employer Results Summary of Valuation Results . 1 Required Supplementary Information ............................... 2 Chart 1 - Schedule of Employer Contributions Chart 2 - Schedule of Funding Progress Chart 3 - Net OPEB Obligation (NOO) Chart 4 - Required Supplementary Information Summary of Participant Data .... 5 EXHIBIT I Actuarial Assumptions and Actuarial Cost Method .............. 14EXHIBIT II Summary of Plan ...................... 32 SECTION 1: Introduction for Barnstable County June 30, 2012 Measurement Under GASB 1 PURPOSE 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, 2012. The results are in accordance with the Governmental Accounting Standards, which prescribe an accrual methodology for accumulating the value of other postemployment benefits (OPEB) 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). HIGHLIGHTS OF THE VALUATION The GASB statements provide the method for selecting the investment return assumption (discount rate). If the benefits are fully 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 continues to be pay-as-you-go, the discount rate should be based on the expected yield on the assets of the employer. If the benefits are partially funded, a blended discount rate can be used that reflects the proportionate amounts of plan and employer assets expected to be used. For the purpose of this valuation, we have used 7.75% and 4.50%, respectively, for fully funded and pay-as-you-go, compared to 8.25% and 5.00% in the prior valuation. The Towns of Barnstable and Wellfleet have set up qualified trusts. Based on the long-term funding policies adopted by each Town, we are assuming a partially funded discount rate of 5.25% for the Town of Barnstable and 6.25% for the Town of Wellfleet. The projected contributions for the Town of Falmouth and Cape Cod Regional Technical School are not large enough to increase the discount rate. While other Towns have also set up qualified trusts, and some have made contributions to the trust, they have not adopted a funding policy that would allow for a partially funded discount rate. See chart below for details. Unit June 30, 2012 OPEB Balance Funding Policy Partially Funded Discount Rate Cape Cod Regional Tech School $176,000 $10,000 in fiscal year 2013 and each year thereafter N/A Dennis-Yarmouth Regional School District $32,371 N/A N/A Town of Barnstable $782,352 $200,000 in fiscal year 2013, increasing $50,000 per year thereafter 5.25% Town of Falmouth $20,000 $100,000 in fiscal year 2013 and each year thereafter N/A Town of Mashpee $250,000 N/A N/A Town of Provincetown $56,528 N/A N/A Town of Truro $50,000 N/A N/A Town of Wellfleet $161,790 $150,000 in fiscal year 2013 and each year thereafter 6.25% SECTION 1: Introduction for Barnstable County June 30, 2012 Measurement Under GASB 2 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 4.00% per year (previously, 4.50% per 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 fully 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, 2013. Assets set aside to fund OPEB liabilities must 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 plan are irrevocable, plan assets are dedicated to providing benefits to retirees and their spouses in accordance with the terms of the plan, and plan assets are legally protected from creditors of the employer. Chapter 68 of the Acts of 2011 permits municipalities, authorities and certain other government entities of the Commonwealth to establish a liability trust fund for funding retiree benefits (other than pension), also known as Other Post-Employment Benefits (OPEB). The legislation also ensures that these entities have access to the state’s investment trust, the State Retiree Benefits Trust Fund (SRBTF) for purposes of investment OPEB funds. 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 subsidies 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. This valuation does not include the potential impact of any future changes due to the Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act (HCERA) of 2010 other than the excise tax on high cost health plans beginning in 2018 (reflected in this valuation) and those previously adopted as of the valuation date. SECTION 1: Introduction for Barnstable County June 30, 2012 Measurement Under GASB 3 Pages 2 through 4 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. Actual contributions as shown in Chart 1 and Chart 3 are equal to projected benefit payments including the implicit rate subsidy. Additional funding, if any, is added to the contribution. This is the amount that should be used for disclosure and is not the same as premiums paid. We have included the additional funding amounts for fiscal years 2013 and 2014 for Cape Cod Regional Technical School, Towns of Barnstable, Falmouth and Wellfleet, based on the expected funding policies provided to us. If actual contributions are different from funding policies stated on page 1, amounts reported on Chart 1 and Chart 3 will change. SECTION 1: Introduction for Barnstable County June 30, 2012 Measurement Under GASB 4 Hypothetical Cost Curve$0$50$100$150$200$250$300$350$400$450$50040434649525558616467707376798285AgeCostProjected CostBlended CostACCOUNTING REQUIREMENTS The 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 Exhibit III of Section 4. 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. SECTION 1: Introduction for Barnstable County June 30, 2012 Measurement Under GASB 5 Normal Cost+30 Years Amortizationof Unfunded Actuarial Accrued LiabilityAnnual Required Contribution (ARC)GASB 43/45 MeasurementFuture Accounting Periods Present Valueof Future BenefitsNet 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. Normal Cost (Actives)Future Accruals (Actives)Actuarial Accrued Liability (Actives + Retirees)Current PeriodHistorical Accounting Periods SECTION 1: Introduction for Barnstable County June 30, 2012 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, 2012 Measurement Under GASB 7 DEFINITIONS OF TERMS 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. SECTION 1: Introduction for Barnstable County June 30, 2012 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 Barnstable County June 30, 2012 Measurement Under GASB 9 August 27, 2013 ACTUARIAL CERTIFICATION This is to certify that Segal Consulting, a Member of The Segal Group, Inc. 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, 2012, 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, premium data and claims experience provided by the employers or from vendors employed by the employers. Segal Consulting does not audit the data provided. The accuracy and comprehensiveness of the data is the responsibility of those supplying the data. Segal, however, does review the data for reasonableness and consistency. 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. Further, in our opinion, the assumptions as approved by the employers are reasonably related to the experience and expectations of the postemployment benefit programs. Kathleen A. Riley, FSA, MAAA, EA Senior Vice President and Actuary Daniel J. Rhodes, ASA, FCA, MAAA Vice President and Consulting Actuary SECTION 2: Valuation Results for the June 30, 2012 Measurement under GASB Town of Nantucket 1 of 5 TOWN OF NANTUCKET Funded (7.75% interest rate) Pay-as-you-go (4.50% interest rate) Actuarial Accrued Liability by Participant Category 1. Current retirees, beneficiaries and dependents $32,206,746 $45,767,274 2. Current active members 23,649,551 42,791,842 3. Total as of July 1, 2012: (1) + (2) $55,856,297 $88,559,116 4. Actuarial value of assets as of July 1, 2012 0 0 5. Unfunded actuarial accrued liability (UAAL) as of July 1, 2012: (3) - (4) $55,856,297 $88,559,116 Annual Required Contribution for Fiscal Year Ending June 30, 2013 6. Normal cost as of July 1, 2012 $1,883,184 $3,681,009 7. Adjustment for timing 71,612 81,911 8. Normal cost adjusted for timing: (6) + (7) $1,954,796 $3,762,920 9. 30-year amortization of the unfunded actuarial accrued liability (UAAL) increasing at 4.0% per year $2,970,259 $3,161,846 10. Adjustment for timing 112,950 70,359 11. Amortization payment adjusted for timing: (9) + (10) $3,083,209 $3,232,205 12. Total Annual Required Contribution (ARC): (8) + (11) 5,038,005 6,995,125 13. Projected benefit payments for fiscal year ending June 30, 2013 $2,622,032 $2,622,032 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, 2012 Measurement under GASB Town of Nantucket 2 of 5 TOWN OF NANTUCKET Required Supplementary Information, Pay-As-You-Go Assumptions (4.50%) 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 5,905,000 2,200,000 37.3 2012 6,257,000 2,534,000 40.5 2013 7,201,187 2,622,032 36.4 2014 7,616,281 2,880,448 37.8 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)] 6/30/2006 $0 $104,980,000 $104,980,000 0.0% N/A N/A 6/30/2008 0 127,923,000 127,923,000 0.0 N/A N/A 6/30/2010 0 82,253,000 82,253,000 0.0 N/A N/A 6/30/2012 0 88,559,116 88,559,116 0.0 N/A N/A Note: Employer should provide covered payroll amount. SECTION 2: Valuation Results for the June 30, 2012 Measurement under GASB Town of Nantucket 3 of 5 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 5,680,000 840,000 (615,000) 5,905,000 2,200,000 3,705,000 20,513,000 2012 5,982,000 1,025,000 (750,000) 6,257,000 2,534,000 3,723,000 24,236,000 2013 6,995,125 1,090,620 (884,558) 7,201,187 2,622,032 4,579,155 28,815,155 2014 7,371,286 1,296,682 (1,051,687) 7,616,281 2,880,448 4,735,833 33,550,989 SECTION 2: Valuation Results for the June 30, 2012 Measurement under GASB Town of Nantucket 4 of 5 CHART 4 Required Supplementary Information Valuation date June 30, 2012 Actuarial cost method Projected Unit Credit Amortization method Amortization payments increasing at 4.0% Amortization period 30 years open Asset valuation method Market value Actuarial assumptions: Investment rate of return 4.5%, pay-as-you-go scenario Medical/drug cost trend rate 8.0% decreasing by 0.50% for 6 years to an ultimate level of 5.0% per year. Dental None Part B reimbursement and/or penalties 6% Inflation rate 4.0% Plan membership:* Current retirees, beneficiaries, and dependents 307 Current active members 463 Total 770 * Does not include retirees, if any, eligible for life insurance benefits only. TOWN OF NANTUCKET SECTION 2: Valuation Results for the June 30, 2012 Measurement under GASB Town of Nantucket 5 of 5 TOWN OF NANTUCKET Summary of Participant Data Active employees covered for medical benefits as of June 30, 2012 Number of employees Male 176 Female 287 Total 463 Average age 46.7 Average service 11.1 Retired employees, spouses and beneficiaries covered for medical benefits as of June 30, 2012* Number of individuals 307 Average age 66.8 * Does not include retirees, if any, eligible for life insurance benefits only. This exhibit summarizes the participant data used for the current valuation. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 14 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, 2012 through June 30, 2013. (The Blue Cross Blue Shield Medicare HMO Blue, Tufts Medicare Prime Supplement and Tufts Medicare Preferred renew on January 1, so the costs for these plans were based on an average of the calendar year 2012 and 2013 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 and Tufts Medicare Preferred HMO 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, 2012 through June 30, 2013. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 15 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 July 1, 2010 through June 30, 2012. Claims were separated by plan year and plan design, then adjusted as follows: actual large claims were replaced by the expected amount of large claims using the stop loss premiums to smooth out random fluctuations in experience. total claims were divided by the number of adult members to yield a per capita claim, the per capita claim was trended to the midpoint of the valuation year at assumed trend rates, and 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, 2013, trended to the midpoint of the valuation year at assumed trend rates. 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 June 1, 2011 through May 31, 2013. 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 Barnstable County June 30, 2012 Measurement Under GASB 16 Town of Nantucket and Nantucket Regional Transit Authority 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 November 1, 2010 through October 31, 2012. Claims were separated by plan year and plan design, then adjusted as follows: actual large claims were replaced by the expected amount of large claims using the stop loss premiums to smooth out random fluctuations in experience. total claims were divided by the number of adult members to yield a per capita claim, the per capita claim was trended to the midpoint of the valuation year at assumed trend rates, and 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 June 1, 2013. Premiums were trended to the midpoint of the valuation year at assumed trend rates. Actuarial factors were then applied to the premium to estimate individual retiree and spouse costs by age and by gender. 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, 2012. 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 Barnstable County June 30, 2012 Measurement Under GASB 17 Measurement Date: June 30, 2012 Discount Rate: 7.75% funding and 4.50% pay-as-you-go Preretirement Mortality Rates: Healthy Non-Teachers RP-2000 Employee Mortality Table projected 12 years with Scale AA Healthy Teachers RP-2000 Employee Mortality Table projected 15 years with Scale AA Postretirement Mortality Rates: Healthy Non-Teachers RP-2000 Healthy Annuitant Mortality Table projected 12 years with Scale AA Healthy Teachers RP-2000 Healthy Annuitant Mortality Table projected 15 years with Scale AA Disabled (Non-Teachers) RP-2000 Healthy Annuitant Mortality Table projected 12 years with Scale AA 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 The mortality tables were determined to contain provisions appropriate to reflect future monthly improvement. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 18 Termination Rates before Retirement: Groups 1 and 2 (excluding Teachers) - 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 0.09 0.15 50 0.17 0.14 0.19 55 0.24 0.23 0.24 60 0.40 0.37 0.28 Note: 55% of the rates shown represent accidental disability and death. Group 4 – 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 0.09 1.00 50 0.17 0.14 1.25 55 0.24 0.23 1.20 60 0.40 0.37 0.85 Note: 90% of the rates shown represent accidental disability and death. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 19 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 0.08 0.03 50 0.16 0.13 0.05 55 0.23 0.22 0.08 60 0.38 0.36 0.10 Notes: 35% of the disability rates shown represent accidental disability. 55% of the death rates shown represent accidental death. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 20 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 Barnstable County June 30, 2012 Measurement Under GASB 21 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 SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 22 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 Barnstable County June 30, 2012 Measurement Under GASB 23 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 Barnstable County June 30, 2012 Measurement Under GASB 24 Per Capita Health Costs: 2012 – 2013 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 $7,081 $8,883 $4,392 $6,631 N/A N/A N/A N/A 50 8,405 9,573 5,871 7,687 N/A N/A N/A N/A 55 9,981 10,305 7,856 8,897 N/A N/A N/A N/A 60 11,854 11,108 10,516 10,319 N/A N/A N/A N/A 65 14,078 11,966 14,078 11,966 $4,459 $3,790 $4,459 $3,790 70 16,316 12,895 16,316 12,895 5,168 4,084 5,168 4,084 75 17,583 13,881 17,583 13,881 5,569 4,397 5,569 4,397 80 18,935 14,965 18,935 14,965 5,997 4,740 5,997 4,740 Bourne (Non-Teachers) Non-Medicare Plans Medicare Supplement Retiree Spouse Retiree Spouse Age Male Female Male Female Male Female Male Female45 $8,507 $10,672 $5,277 $7,966 N/A N/A N/A N/A 50 10,097 11,501 7,053 9,234 N/A N/A N/A N/A 55 11,991 12,380 9,437 10,689 N/A N/A N/A N/A 60 14,241 13,344 12,634 12,397 N/A N/A N/A N/A 65 16,913 14,376 16,913 14,376 $2,040 $1,734 $2,040 $1,734 70 19,602 15,492 19,602 15,492 2,364 1,869 2,364 1,869 75 21,124 16,676 21,124 16,676 2,548 2,011 2,548 2,011 80 22,748 17,979 22,748 17,979 2,744 2,169 2,744 2,169 SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 25 Nantucket (including Nantucket Regional Transit Authority) Non-Medicare Plans Medicare Supplement Retiree Spouse Retiree Spouse Age Male Female Male Female Male Female Male Female45 $7,836 $9,830 $4,861 $7,338 N/A N/A N/A N/A 50 9,301 10,594 6,496 8,506 N/A N/A N/A N/A 55 11,046 11,404 8,693 9,846 N/A N/A N/A N/A 60 13,118 12,292 11,638 11,419 N/A N/A N/A N/A 65 15,579 13,242 15,579 13,242 $3,780 $3,213 $3,780 $3,213 70 18,056 14,270 18,056 14,270 4,381 3,462 4,381 3,462 75 19,458 15,361 19,458 15,361 4,721 3,727 4,721 3,727 80 20,954 16,560 20,954 16,560 5,084 4,018 5,084 4,018 GIC Plans Retired on or before June 1, 1990 Retired after June 1, 1990 Non-Medicare Eligible Medicare EligibleNon-Medicare Eligible Medicare EligibleAge Retiree Spouse Retiree Spouse Retiree Spouse Retiree Spouse45 $7,148 $6,838 N/A N/A $6,830 $6,413 N/A N/A 50 8,409 8,044 N/A N/A 8,034 7,543 N/A N/A 55 9,890 9,461 N/A N/A 9,450 8,872 N/A N/A 60 11,804 11,292 N/A N/A 11,279 10,589 N/A N/A 65 14,525 13,902 $2,928 $2,928 13,887 13,049 $2,765 $2,765 70 16,765 16,051 3,377 3,377 16,034 15,072 3,188 3,188 75 18,892 18,092 3,804 3,804 18,074 16,997 3,592 3,592 80 20,677 19,810 4,160 4,160 19,792 18,623 3,927 3,927 Medicare Advantage: $3,043 Medicare Rx (Bourne): $1,668 SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 26 Annual Dental Cost: CCMHG $555 Bourne $409 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 Part B 2013 8.00% 5.00% 6.00% 2014 7.50% 5.00% 6.00% 2015 7.00% 5.00% 6.00% 2016 6.50% 5.00% 6.00% 2017 6.00% 5.00% 6.00% 2018 5.50% 5.00% 6.00% 2019 & later 5.00% 5.00% 6.00% 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 Barnstable County June 30, 2012 Measurement Under GASB 27 Barnstable Fire District, Bourne Recreation Authority, Bourne Water District, Buzzard’s Bay Water District, Cape Cod Regional Technical High School, Cape Cod Regional Transit Authority, COMM Fire District, Dennis Water District, Hyannis Fire District, Mashpee Water District, Monomoy Regional School District, Sandwich Water District, Town of Truro and Upper Cape Cod Regional School 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, Towns of Barnstable, Bourne, Eastham, Harwich, Mashpee, Orleans, Provincetown and Sandwich: 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. For Dennis-Yarmouth Regional School District and Town of Barnstable, for future retirees hired in 1986 or later, 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. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 28 Barnstable County, Towns of Chatham, Dennis, Falmouth, Nantucket 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. For Town of Chatham, for future retirees hired in 1986 or later, 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. Nauset Regional School District, Towns of Brewster and Yarmouth: For 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. For Town of Brewster, 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, 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. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 29 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: This valuation does not include the potential impact of any future changes due to the Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act (HCERA) of 2010 other than the excise tax on high cost health plans beginning in 2018 (reflected with this valuation) and those previously adopted as of the valuation date. The addition of the excise tax in this valuation increased the actuarial accrued liability and normal cost as shown below for employers participating in the following groups: Actuarial Accrued Liability Normal Cost GIC* 3.64% 5.00% CCMHG 0.78% 1.57% Bourne 0.50% 1.14% Nantucket 3.41% 2.72% * The GIC assumption comes from the January 1, 2012 OPEB Actuarial Valuation for the Commonwealth of Massachusetts, prepared by Aon Hewitt and dated October 18, 2012. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 30 Assumption Changes Since Prior Valuation: Per capita health care costs and administrative expenses for CCMHG and Towns of Bourne and Nantucket 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, 2012. Medical/drug trend assumption was changed from 8.50% in 2013 decreasing by 0.75% per year to 5.50% in 2017 and by 0.50% to 5.00% by 2018 to 8.00% in 2013 decreasing by 0.50% per year to 5.00% by 2019. The plan election assumption upon reaching age 65 was revised for Barnstable County, Bourne Recreation Authority, Cape Cod Regional Technical High School, Dennis Water District, Dennis-Yarmouth RSD, Hyannis Fire Department, Mashpee Water District, Nantucket Regional Transit Authority, Nauset RSD, Sandwich Water District, Towns of Barnstable, Bourne, Chatham, Eastham, Harwich, Provincetown, Sandwich, Truro and Yarmouth and Upper Cape Cod RTS, as noted in the coverage descriptions. The excise tax on high cost health plans beginning in 2018 was included in this valuation. The pay-as-you-go discount rate was changed from 5.00% to 4.50%. The funding discount rate was changed from 8.25% to 7.75%. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 31 The mortality assumption was updated as follows: Previous Current Preretirement: FalmouthRP 2000 Employee Mortality Table RP 2000 Employee Mortality Table projected 12 years with Scale AA Non-TeachersRP 2000 Employee Mortality Table projected 10 years with Scale AA RP 2000 Employee Mortality Table projected 12 years with Scale AA TeachersRP 2000 Employee Mortality Table projected 10 years with Scale AA RP 2000 Employee Mortality Table projected 15 years with Scale AA Postretirement: FalmouthRP 2000 Healthy Annuitant Mortality Table RP 2000 Healthy Annuitant Mortality Table projected 12 years with Scale AA Non-TeachersRP 2000 Healthy Annuitant Mortality Table projected 10 years with Scale AA RP 2000 Healthy Annuitant Mortality Table projected 12 years with Scale AA TeachersRP 2000 Healthy Annuitant Mortality Table projected 10 years with Scale AA RP 2000 Healthy Annuitant Mortality Table projected 15 years with Scale AA Disabled: Non-TeachersRP 2000 Healthy Annuitant Mortality Table projected 10 years with Scale AA set forward 2 years RP 2000 Healthy Annuitant Mortality Table projected 12 years with Scale AA set forward 2 years SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 32 EXHIBIT II Summary of Plan 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: Members hired before April 2, 2012 Group 1 and Group 2 (including Teachers): Retirees with at least 10 years of creditable service are eligible at age 55; Retirees with at least 20 years of creditable service are eligible at any age. Group 4 Retirees are eligible at age 55; Retirees with at least 20 years of creditable service are eligible at any age. Members hired on or after April 2, 2012 Group 1 (including Teachers): Retirees with at least 10 years of creditable service are eligible at age 60. Group 2 Retirees with at least 10 years of creditable service are eligible at age 55. Group 4 Retirees are eligible at age 55; Retirees with at least 10 years of creditable service are eligible at age 50. Disability: Accidental (job-related) Disability has no age or service requirement. Ordinary (non-job related) Disability has no age requirement but requires 10 years of creditable service. SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 33 Pre-Retirement Death: Surviving spouses of members who die in active service on Accidental (job-related) Death are eligible at any age. Surviving spouses of members who die in active service on Ordinary (non-job related) Death are eligible after two years of service. Post-Retirement Death: Surviving spouse is eligible. Cape Code Municipal Health Group 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 Barnstable County June 30, 2012 Measurement Under GASB 34 (CCMHG continued) Contribution rates: CCMHG current premium rates and employer contribution percentages are summarized below: Active Retired TotalMonthly Cost (eff. 7/1/2012)Non-Medicare PlansBCBS Master Health PlusIndividual 32 34 669$1,024.002-person 0 0 00$2,052.00Family 26 18 440$2,560.00BCBS Blue Care Elect PreferredIndividual 521 292 81344$717.002-person 41 5 460$1,439.00Family 939 213 115214$1,795.00BCBS Network Blue HMOIndividual 609 59 66810$564.002-person 55 4 590$1,131.00Family 1067 62 11292$1,510.00Harvard Pilgrim HMOIndividual 399 57 45610$573.00Family 792 61 8532$1,532.00Harvard Pilgrim PPOIndividual 266 52 31811$628.00Family 454 47 5013$1,662.00Totals 5,201 904 6,105105SubscribersRetirees Age 65 and SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 35 (CCMHG continued) Medicare Plans(eff. 7/1/2012)Tufts Medicare Preferred Supplement** N/A 16 16 $333.00BCBS Medex 3 Enhanced N/A 1619 1619$409.00Harvard Pilgrim Medicare Enhanced N/A 311 311 $323.00BCBS Managed Blue for Seniors N/A 11 11$402.79Totals 0 1,957 1,9570Medicare Advantage Plans(eff. 1/1/2013)BCBS Medicare HMO Blue 0 5 56$303.82Tufts Medicare Preferred HMO 0 22 2221$240.00Totals 0272727Dental Blue Premier(eff. 7/1/2012)Individual$34.00Family$96.00* 105 of 2,089 over-65 retirees are in a non-Medicare plan** Premium rate is as of January 1, 2013 SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 36 (CCMHG continued) 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% $5,000Cape Cod Regional Technical School 65% 65% 65% 65% 65% 99% $10,000Cape Cod Regional Transit Authority 0% 0% 0% 0% 0% None None C.O.M.M. Fire District 70%-90% 80% 70%-90% 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% $5,000Monomoy Regional School District 70% 70% 70% 70% 70% 70% $5,000Nauset Regional School District 50% 50% 50% 50% 0% 50% $2,000Sandwich Water District 90% 90% 90% 90% 90% 90% $2,000Upper Cape Cod Regional Technical School 70% 70% 70% 70% None 50% $10,000Town 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% 50% 50% 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% $5,000RetireeLife InsuranceBenefitInsuranceEmployer Contribution PercentageMedicalSurvivng SpousesRetirees and Spouses SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 37 Town of Bourne 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. Contribution rates: Current premium rates are summarized below: Active Retired TotalMonthly Cost (eff. 7/1/2013)Non-Medicare PlansBCBS Blue Care Elect Preferred PPOIndividual 56 21 771$829.50Family 156 22 1781$1,991.85BCBS Network Blue HMOIndividual 64 1 650$707.70Family 117 3 1200$1,695.75Totals 393 47 4402Medicare PlansBCBS Medex II/Blue Medicare Rx 1 88 88 $349.60Dental BlueIndividual$33.80Family$90.60* 2 of 90 over-65 retirees are in a non-Medicare planSubscribersRetirees Age 65 and over* SECTION 3: Supporting Information for Barnstable County June 30, 2012 Measurement Under GASB 38 Town of Nantucket (including Nantucket Regional Transit Authority) 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. Contribution rates: Current premium rates are summarized below: Active Retired TotalMonthly Cost (eff. 6/1/2013)Non-Medicare PlansBCBS Blue Care Elect Preferred PPOIndividual 67 1 680$741.00Family 190 1 1910$1,579.00BCBS Master MedicalIndividual 78 39 11714$1,060.00Family 130 61 1919$2,300.00Totals 465 102 56723Medicare Plans(eff. 6/1/2013)BCBS Medex 3 N/A 76 70 $358.64Totals 0 76 70* 23 of 99 over-65 retirees are in a non-Medicare planSubscribersRetirees Age 65 SECTION 3: Supporting Information for the Barnstable County June 30, 2012 Measurement under GASB 39 Employers Participating in the Group Insurance Commission (GIC) for Retired Teachers Benefit Types: Medical and prescription drug benefits are provided to all eligible retirees through a variety of plans provided through the Commonwealth of Massachusetts GIC. 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. Contribution rates: Current premium rates are summarized below: 7853700v1/04446.018 Retired TotalNon-Medicare PlansNeighborhood Health PlanIndividual 0 00$45.56 $68.34Family 1 10$120.74 $181.11Unicare/Comm Indemnity/CICIndividual 105 10525$114.66 $154.78Family 55 555$277.53 $373.85Totals 161 16130Medicare PlansHP Medicare Enhance 4 4 $39.32 $58.98Unicare/Comm Indemnity OME/CIC 338 338265$42.88 $60.31Totals 342 342265* 30 of 372 over-65 retirees are in a non-Medicare plan** Enrollment in plan is frozenRetirees Age 65 and over*SubscribersMonthly Cost (eff. 7/1/2013)Retired on or before July 1, 1990 Retired after July 1, 1990 SECTION 4: Supplemental Information by Department for the June 30, 2012 Measurement under GASB Airport County Our Island Home School Sewer Actuarial Accrued Liability by Participant Category 1. Current retirees, beneficiaries and dependents $2,673,291 $203,159 $3,472,389 $17,622,983 $0 2. Current active members 2,442,221 69,443 4,328,030 15,113,947 391,763 3. Total as of July 1, 2012: (1) + (2) $5,115,512 $272,602 $7,800,419 $32,736,930 $391,763 4. Actuarial value of assets as of July 1, 2012 0 0 0 0 0 5. Unfunded actuarial accrued liability (UAAL) as of July 1, 2012: (3) - (4) $5,115,512 $272,602 $7,800,419 $32,736,930 $391,763 Annual Required Contribution for Fiscal Year Ending June 30, 2013 6. Normal cost as of July 1, 2012 $185,711 $13,814 $346,641 $1,159,817 $57,132 7. Adjustment for timing 4,133 307 7,714 25,809 1,271 8. Normal cost adjusted for timing: (6) + (7) $189,844 $14,121 $354,355 $1,185,626 $58,403 9. 30-year amortization of the unfunded actuarial accrued liability (UAAL) increasing at 4.00% per year 182,640 9,733 278,500 1,168,814 13,987 10. Adjustment for timing 4,064 217 6,197 26,009 311 11. Amortization payment adjusted for timing: (9) + (10) $186,704 $9,950 $284,697 $1,194,823 $14,298 12. Total Annual Required Contribution (ARC): (8) + (11) 376,548 24,071 639,052 2,380,449 72,701 13. Projected benefit payments for fiscal year ending June 30, 2013 $132,849 $9,789 $204,106 $1,060,008 $64 Note: Adjustment for timing assumes payment in the middle of the fiscal year. DEPARTMENT RESULTS – TOWN OF NANTUCKETPROJECTED UNIT CREDIT, PAY-AS-YOU-GO ASSUMPTIONS (4.50%) SECTION 4: Supplemental Information by Department for the June 30, 2012 Measurement under GASB Siasconset Water Town Wannacomet Water Total Actuarial Accrued Liability by Participant Category 1. Current retirees, beneficiaries and dependents $965,198 $20,616,294 $213,960 $45,767,274 2. Current active members 0 19,426,317 1,020,121 42,791,842 3. Total as of July 1, 2012: (1) + (2) $965,198 $40,042,611 $1,234,081 $88,559,116 4. Actuarial value of assets as of July 1, 2012 0 0 0 0 5. Unfunded actuarial accrued liability (UAAL) as of July 1, 2012: (3) - (4) $965,198 $40,042,611 $1,234,081 $88,559,116 Annual Required Contribution for Fiscal Year Ending June 30, 2013 6. Normal cost as of July 1, 2012 $0 $1,872,551 $45,343 $3,681,009 7. Adjustment for timing 0 41,668 1,009 81,911 8. Normal cost adjusted for timing: (6) + (7) $0 $1,914,219 $46,352 $3,762,920 9. 30-year amortization of the unfunded actuarial accrued liability (UAAL) increasing at 4.00% per year 34,461 1,429,650 44,061 3,161,846 10. Adjustment for timing 767 31,814 980 70,359 11. Amortization payment adjusted for timing: (9) + (10) $35,228 $1,461,464 $45,041 $3,232,205 12. Total Annual Required Contribution (ARC): (8) + (11) 35,228 3,375,683 91,393 6,995,125 13. Projected benefit payments for fiscal year ending June 30, 2013 $41,001 $1,151,353 $22,862 $2,622,032 Note: Adjustment for timing assumes payment in the middle of the fiscal year.