KENTUCKY STATE UNIVERSITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLANS (OPEB) (CONTINUED)
Kentucky Employees Retirement System (KERS) OPEB Plan (Continued)
Contributions (Continued)
Members Whose Participation Began On or After January 1, 2014
Nonhazardous contributions equal to 6% and Hazardous contributions equal 9% of all creditable compensation, with 5% (Nonhazardous) and 8% (Hazardous) being credited to the member's account and 1% deposited to the KRS 401(h) Account. Interest paid on the members' accounts will be set at 2.5%. Member is entitled to a full refund of contributions and interest in their individual account, however, the 1% contributed to the insurance fund is nonrefundable.
Total OPEB Liability
The total other postemployment benefits (OPEB) liability was determined by an actuarial valuation as of June 30, 2021. The financial reporting actuarial valuation as of June 30, 2022, used the following actuarial methods and assumptions, applied to all periods included in the measurement:
Valuation Date
June 30, 2022
June 30, 2023
Measurement Date
Inflation 2.30%
Payroll Growth Rate 0.00% for KERS Nonhazardous and Hazardous
Salary Increases
3.30 to 15.30%, Varies by Service for Nonhazardous, and 3.55% to 20.05%, Varies by Service for Hazardous
Investment Rate of Return
6.25%
Healthcare Trend Rates Pre-65
Initial Trend Starting at 6.30% at January 1, 2023, Decreasing to an Ultimate Trend Rate of 4.05% over 13 Years
Post-65
Initial Trend Starting at 6.30% at January 1, 2023, Decreasing to an Ultimate Trend Rate of 4.05% over 13 Years
The mortality table used are System-specific based on mortality experience from 2013 – 2018, projected with the ultimate rates from MP-2014 mortality improvement scale using a base year of 2019.
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