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CITY OF PARIS, TEXAS Schedule 6 <br />Required Supplementary Information <br />City of Paris Retiree Health Care Plan - <br />Schedule of Changes in Total OPEB Liability and Related Ratios <br />Year Ended September 30, 2022 <br />Plan Year Ended December 31, <br />2021 2020 2019 2018 2017 <br />Total OPEB Liability <br />Service Cost <br />Interest <br />Changes in Benefit Teams <br />Differences Between Expected and Actual Experience <br />Changes in Assumptions <br />Benefit Payments, Including Refunds of Employee Contributions <br />Net Change in Total OPEB Liability <br />Total OPEB Liability - Beginning <br />Total OPEB Liability - Ending <br />Covered Payroll <br />City's Total OPEB Liability as a Percentage of Covered <br />Payroll <br />Notes to Schedule <br />$ 46,370 <br />$ <br />45,329 $ <br />34,501 $ <br />36,808 <br />$ 36,410 <br />Salary Increases <br />34,083 <br />Demographic Assumptions <br />44,410 <br />60,652 <br />55,250 <br />61,432 <br />Retirement Fund pension valuation report as of December 31, 2020. <br />1,923,344 <br />TMRS: For healthy retirees, the gender distinct 2019 Municipal Retirees of Texas mortality tables are used. The rates are <br />- <br />- <br />- <br />2019 to account for future mortality improvements. Firefighters: For healthy retirees, the Pub -2010 Public Safety Below <br />- <br />(250,340) <br />(10,649) <br />(174,952) <br />(10,869) <br />- <br />91,261 <br />95% of eligible TMRS employees and Firefighters <br />68,964 <br />120,032 <br />(36,122) <br />51,925 <br />(61,564) <br />(57,093) <br />(74,044) <br />(82,466) <br />(103,929) <br />benefits for the OPEB plan. <br />1,783,154 <br />90,961 <br />(33,811) <br />(37,399) <br />45,838 <br />1,711,750 <br />1,620,789 <br />1,654,600 <br />1,691,999 <br />1,646,161 <br />$ 3,494,904 <br />$ <br />1,711,750 $ <br />1,620,789 $ <br />1,654,600 <br />$ 1,691,999 <br />$ 3,826,545 <br />$ <br />3,522,249 $ <br />3,799,135 $ <br />4,814,704 <br />$ 5,284,495 <br />91.33% <br />48.60% <br />42.66% <br />34.37% <br />32.02% <br />Valuation Date December 31, 2021 <br />Methods and Assumptions used to Determine Contribution Rates: <br />Actuarial Cost Method <br />Individual Entry -Age Normal <br />Discount Rate <br />1.84% <br />Inflation <br />2.50% <br />Salary Increases <br />3.50% to 11.50% for TMRS and 4.10% to 6.00% for Firefighters, including inflation <br />Demographic Assumptions <br />TMRS: Based on the experience study covering the four-year period ending December 31, 2018 as conducted for the Texas <br />Municipal Retirement System (TMRS). Firefighters: Based on those disclosures in the Paris Firefighters' Relief and <br />Retirement Fund pension valuation report as of December 31, 2020. <br />Mortality <br />TMRS: For healthy retirees, the gender distinct 2019 Municipal Retirees of Texas mortality tables are used. The rates are <br />projected on a fully generational basis using the ultimate mortality improvement rates in the MP tables published through <br />2019 to account for future mortality improvements. Firefighters: For healthy retirees, the Pub -2010 Public Safety Below <br />Median Healthy Retiree mortality tables are used. The rates are projected on a fully generational basis using the ultimate <br />mortality improvement rates in the MP -2018 tables to account for future mortality improvements. <br />Health Care Trend Rates <br />Initial rate of 7.00% declining to an ultimate rate of 4.15% after 13 years; the City's subsidy is assumed to increase by 3.00% <br />per year. <br />Participation Rates <br />95% of eligible TMRS employees and Firefighters <br />Other Information <br />The discount rate changed from 2.00% as of December 31, 2020 to 1.84% as of December 31, 2021. Additionally, the <br />retirement rates for TMRS employees were updated to match those used in the December 31, 2021 TMRS pension <br />valuation for the City of Paris, and the methodology for determining service cost was changed such that the attribution <br />period for the accumulation of service costs is now based only on employment with the City of Paris. <br />There are no assets accumulated in a bust that meets the criteria of GASB Codification P22.101 or P52.1010 to pay related <br />benefits for the OPEB plan. <br />Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be displayed as it becomes available. <br />91 <br />