Page 74 - 2019-20 CAFR

Rogue Community College

Notes to Basic Financial Statements
Year ended June 30, 2020

9. Post‐Employment Health Care Costs (continued)

Plan Description (RHIA)

Oregon Revised Statute 238.420 established the Retirement Health Insurance Account (RHIA) and

authorizes a payment of up to $60 from RHIA toward the monthly cost of health insurance for eligible
PERS members. Authority to establish and amend the benefit provisions of RHIA reside with the
Oregon Legislature. The plan is closed to new entrants on or after August 29, 2003.
To be eligible to receive this monthly payment toward the premium cost, the member must: (1) have

eight years or more of qualifying service in PERS at the time of retirement or receive a disability

allowance as if the member had eight years or more of creditable service in PERS, (2) receive both
Medicare Parts A and B coverage, and (3) enroll in a PERS‐sponsored health plan.
Funding Policy (RHIA)

Contributions of employers are recognized on the accrual basis of accounting. Employer contributions
to PERS are calculated based on creditable compensation for active members reported by employers.

Employer contributions are accrued when due pursuant to legal requirements. These are amounts

normally included in the employer statements cut off as of the fifth of the following month.
For the year ended June 30, 2019, PERS employers contributed 0.07 percent of PERS‐covered salaries
for Tier One and Tier Two members to fund the normal cost portion of RHIA benefits. PERS employers

contributed 0.43 percent of all PERS‐covered salaries to amortize the unfunded actuarial accrued

liability over a fixed period with new unfunded actuarial accrued liabilities being amortized over 20
years. These rates were based on the December 31, 2017 actuarial valuation.
Actuarial Methods and Assumptions Related to RHIA

The actuarial valuation calculations are based on the benefits provided under the terms of the plan in

effect at the time of each valuation and on the pattern of sharing of costs between the employer and
plan members as of the December 31, 2017 valuation rolled forward to June 30, 2019.
The methods and assumptions shown below are based on the 2016 Experience Study, which reviewed
experience for the four‐year period ended on December 31, 2016. Experience studies are performed

as of December 31 of even numbered years. Key actuarial methods and assumptions used to measure
the total OPEB asset are illustrated in the table on the following page.

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