7998-R1_ML&P_Hollis_2020-2021_AnnualReport_Web

TOWN OF HOLLIS, MAINE NOTES TO FINANCIAL STATEMENTS JUNE 30, 2021

NOTE 12 - OTHER POST EMPLOYMENT BENEFIT (OPEB) PLAN (CONTINUED)

MMEHT

Deferred Outflows Deferred Inflows of Resources of Resources

Differences between expected and actual experience Net difference between projected and actual earnings on OPEB plan investments Changes of assumptions

$

3,624 18,136

$

19,273 4,704

-

-

Contributions subsequent to the measurement date

763

-

Total

$

22,523

$

23,977

$308 were reported as deferred outflows of resources related to OPEB resulting from Town contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

MMEHT

Plan year ended December 31: 2021

$

(293) (293) (287)

2022 2023 2024 2025

(1,491)

(321)

Thereafter

468

Discount Rate The discount rate is the assumed interest rate used for converting projected dollar related values to a present value as of the valuation date of January 1, 2021. The discount rate determination is based on the high-quality AA/Aa or higher bond yields in effect for 20-year, tax-exempt general obligation municipal bonds using the Bond Buyer 20-Bond GO Index. The rate of 2.12% per annum for June 30, 2021 was based upon a measurement date of December 31, 2020. The sensitivity of net OPEB liability to changes in discount rate are as follows:

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