Page 68 - BAA CAFR 2017

BIRMINGHAM AIRPORT AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS

NOTE 11 OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)

Sensitivity of the actuarial accrued liability to changes in the discount rate and
healthcare cost trend rates
The following presents the actuarial accrued liability of the Authority if it were
calculated using a discount rate that is 1-percentage-point lower (2.58 percent) or
1-percentage point higher (4.58 percent) than the current discount rate:

1% Decrease Discount Rate 1% Increase
(2.58%) (3.58%) (4.58%)
Actuarial accrued $2,157,526 $1,706,576 $1,486,736
liability

Sensitivity of the actuarial accrued liability to changes in the healthcare cost trend
rates
The following presents the actuarial accrued liability of the Authority if it were
calculated using healthcare cost trend rates that are 1-percentage-point lower (8.5
percent decreasing to 3.5 percent) or 1-percentage-point higher (9.5 percent
decreasing to 5.5 percent) than the current healthcare cost trend rates:

1% Decrease Healthcare Cost 1% Increase
(7.5% Trend Rate (9.5%
decreasing to (8.5% decreasing to
3.5%) decreasing to 5.5%)
4.5%)
Actuarial accrued $1,612,632 $1,706,576 $1,819,871
liability

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