Page 64 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

NOTE 11 OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

Employees covered by benefit terms
At June 30, 2017, the following employees were covered by the benefit terms:

Active participants in valuation:
Number 156
Average age 45.2
Average years of service* 8.0
Total payroll* $9,014,199
Average payroll $57,783
Retired participants:
Number with Life Insurance 16
Average age 67.4
Total Life Insurance In Force $663,500
Average Life Insurance Amount 41,169
Number Eligible for Health Insurance Reimbursement 6
Average age 62.7
*Estimated service of 8 years and salary of $57,800 applied to 46 participants.

Actuarial Accrued Liability:

The Authority’s actuarial accrued total OPEB liability of $1,706,576 was measured
as of June 30, 2017, and was determined by an actuarial valuation as of that date.

Actuarial assumptions and actuarial cost method
The accrued liability in the June 30, 2017 actuarial valuation was determined using
the following actuarial assumptions and other inputs, applied to all periods included
in the measurement, unless otherwise specified:

Rationale for Assumptions: The information and analysis used in selecting each
assumption that has a significant effect on this
actuarial valuation are shown in the Birmingham
Retirement and Relief System Experience Study
Report for the five-year period ended June 30, 2015.
Based on the results of that study as well as
professional judgment, no additional demographic
changes are warranted at this time and will be
assessed again in the next five-year review. The
Birmingham Airport Authority participates in this
pension plan, and the demographic assumptions for
“General Employees” of that plan apply to the
Birmingham Airport Authority
Discount Rates: 3.58%
Mortality Rates:

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