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)

1%

Discount

1%

Decrease

Rate

Increase

1.12%

2.12%

3.12%

Total OPEB liability

$

117,330

$

100,074

$

86,120

Plan fiduciary net position

-

-

-

Net OPEB liability

$

117,330

$

100,074

$

86,120

Plan fiduciary net position as a percentage of the total OPEB liability

0.00%

0.00%

0.00%

Healthcare Trend The healthcare trend is the assumed dollar increase in dollar-related values in the future due to the increase in the cost of health care. The healthcare cost trend rate is the rate of change in per capita health claim costs over time as a result of factors such as medical inflation, utilization of healthcare services, plan design and technological developments. The sensitivity of net OPEB liability to changes in healthcare cost trend rates are as follows:

1%

Healthcare Trend Rates

1%

Decrease

Increase

Total OPEB liability

$

84,743

$

100,074

$

119,767

Plan fiduciary net position

-

-

-

Net OPEB liability

$

84,743

$

100,074

$

119,767

Plan fiduciary net position as a percentage of the total OPEB liability

0.00%

0.00%

0.00%

Actuarial Methods and Assumptions The total OPEB liability for the Plan was determined by an actuarial valuation as of January 1, 2021, using the following methods and assumptions applied to all periods included in the measurement:

42

115