Page 66 - 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 12 3.50
At June 30, 2017, the following employees were covered by the benefit terms:
3.00
13
14 2.50
Active participants in valuation: 15 2.00
Number 16 1.50
156
Average age 17-20 1.00
45.2
8.0
Average years of service* 20-30 1.00
Total payroll* $9,014,199
Average payroll $57,783
Retirement Rates:
Retired participants:
Employees are assumed to retire, after meeting the service requirements, in
Number with Life Insurance 16
accordance with the following rates:
Average age Age Rate% 67.4
Total Life Insurance In Force 0.0 $663,500
Under 50
50-54
Average Life Insurance Amount 35.0 41,169
Number Eligible for Health Insurance Reimbursement 20.0 6
55-60
Average age 61 25.0 62.7
*Estimated service of 8 years and salary of $57,800 applied to 46 participants.
62
40.0
63-64 25.0
65-73 35.0
Actuarial Accrued Liability: 100.0
74 & Over
The Authority’s actuarial accrued total OPEB liability of $1,706,576 was measured
Salary Scale:
as of June 30, 2017, and was determined by an actuarial valuation as of that date.
Rate%
Age
20 7.00
Actuarial assumptions and actuarial cost method 6.25
25
The accrued liability in the June 30, 2017 actuarial valuation was determined
30
5.50
using the following actuarial assumptions and other inputs, applied to all periods
35
4.75
included in the measurement, unless otherwise specified: 4.00
40
45 3.50
50 3.00
Rationale for Assumptions: The information and analysis used in selecting each
2.75
55 assumption that has a significant effect on this
2.50
60 actuarial valuation are shown in the Birmingham
65 Retirement and Relief System Experience Study
2.50
70 & over Report for the five-year period ended June 30, 2015.
2.50
Based on the results of that study as well as
The salary scale assumption includes an allowance for inflation of 2.50% per year. The
professional judgment, no additional demographic
assumption is based on the City’s pay plan, along with analysis completed in conjunction
changes are warranted at this time and will be
with an Experience Study Report for the five-year period ended June 30, 2015.
assessed again in the next five-year review. The
Birmingham Airport Authority participates in this
Per Capita Cost Development:
Per capita costs were based on the active
Medical and Drug pension plan, and the demographic assumptions for
“General Employees” of that plan apply to the
premium rates for 2017.
Birmingham Airport Authority
Discount Rates: 3.58% Administrative expenses are included in
Administrative Expenses
Mortality Rates: the premium rates.
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