Page 65 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
NOTE 11 OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

Employees covered by benefit terms RP-2014 Blue Collar Employee Mortality Table, set
Pre-retirement:
At June 30, 2017, the following employees were covered by the benefit terms:
forward two years for males and four years for
females, projected generationally using Scale MP-
Active participants in valuation: 2015
156
Number RP-2014 Blue Collar Employee Healthy Annuitant
Healthy annuitants:
45.2
Average age Mortality Table, set forward two years for males and
8.0
Average years of service* four years for females, projected generationally using
Total payroll* Scale MP-2015 $9,014,199
Disabled annuitants:
Average payroll RP-2014 Disabled Retiree Mortality Table,
$57,783
Retired participants: projected generationally using Scale MP-2015
The tables above, with adjustments as shown, reasonably reflect the mortality
Number with Life Insurance 16
experience of the Birmingham Retirement and Relief System as of the measurement
Average age 67.4
date. The mortality tables were then generationally projected using Scale MP-2015 to
Total Life Insurance In Force $663,500
reflect future mortality improvement.
Average Life Insurance Amount 41,169
Number Eligible for Health Insurance Reimbursement 6
Average age 62.7
Termination Rates Before Retirement:
*Estimated service of 8 years and salary of $57,800 applied to 46 participants.
Rate (%)
Mortality*
Age Male Female Disability**
Actuarial Accrued Liability: 0.06 0.02 0.08
20
25 0.06 0.02 0.11
The Authority’s actuarial accrued total OPEB liability of $1,706,576 was measured
0.06
0.03
30
0.14
as of June 30, 2017, and was determined by an actuarial valuation as of that date.
0.07
0.04
35
0.19
40 0.09 0.07 0.29
Actuarial assumptions and actuarial cost method 0.11 0.47
0.16
45
The accrued liability in the June 30, 2017 actuarial valuation was determined
0.17
50
0.27
0.79
using the following actuarial assumptions and other inputs, applied to all periods
0.44
55
included in the measurement, unless otherwise specified: 0.25 1.31
60 0.56 0.38 2.12
*Rates shown do not include generational projection.
** 50% of disability is assumed to be on the job disability.
Rationale for Assumptions: The information and analysis used in selecting each
assumption that has a significant effect on this
Termination Rates Before Retirement (continued):
actuarial valuation are shown in the Birmingham
Rate%
Retirement and Relief System Experience Study
Report for the five-year period ended June 30, 2015.
Years of Service Withdrawal
Based on the results of that study as well as
10.00
1
professional judgment, no additional demographic
2
9.00
changes are warranted at this time and will be
3
8.00
assessed again in the next five-year review. The
7.50
4
Birmingham Airport Authority participates in this
7.00
5
pension plan, and the demographic assumptions for
6
6.50 to the
“General Employees” of that plan apply
Birmingham Airport Authority 6.00
7
Discount Rates: 3.58% 8 5.50
Mortality Rates: 9 5.00
10 4.50 39
11 4.00
39